KEY FINANCIAL PERFORMANCE –
1.PERFORMANCE EFFICIENCY INDEX-
Gross Earnings[Rs in Crores]
Net Working Expenditure [Rs in Crores]
Performance Efficiency Index %
[Rs in lakhs]
About Financial Matters
Staff of All Departments
(Major areas of concern)
(Compiled by Sr. DFM’s Office , C. Rly. Solapur)
1)MAJOR CHANGES IN GCC – SEPT’2019
GCC is revised three times from2014 and an effort is being made to identify major areas of changes and present so that the errors in daily working of Accounts and Field Staff can be avoided. To make the things easier, tabular format is chosen for comparison purpose.
Evaluation of Technical Eligibility Criteria:
(a) The tenderer must have successfully completed any of the following during last 07 (seven) years, ending last day of month previous to the one in which tender is invited:
Criteria as per GCC 2014
Criteria as per GCC 2018
Criteria as per GCC 2019
One similar single work costing not less than the amount equal to 35% of advertised value of the tender.
Three similar works each costing not less than the amount equal to 40% of advertised value of the tender, or
Three similar works each costing not less than the amount equal to 30% of advertised value of the tender, or
Two similar works each costing not less than the amount equal to 50% of advertised value of the tender, or
Two similar works each costing not less than the amount equal to 40% of advertised value of the tender, or
One similar work each costing not less than the amount equal to 80% of advertised value of the tender.
One similar work each costing not less than the amount equal to 60% of advertised value of the tender.
(b) (i) In case of composite works (e.g. works involving more than one distinct component, such as Civil Engineering works, S&T works, Electrical works, OHE works etc. and in the case of major bridges – substructure, superstructure etc.), similar Criteria as (a) above will be considered.
Note: Separate completed works of minimum required values for each component shall also be considered for fulfilment of technical eligibility criteria.
Following additions have been made in GCC-2019, for Eligibility Criteria –
(b) (ii) In such cases, what constitutes a component in a composite work shall be clearly predefined with estimated tender cost of it, as part of the tender documents without any ambiguity. Any work or set of works shall be considered to be a separate component, only when cost of the component is more than Rs. 2 crore each.
Note for Item 1:
Work experience certificate from private individual shall not be considered. However, in addition to work experience certificates issued by any Govt. Organisation, work experience certificate issued by Public listed company having average annual turnover of Rs 500 crore and above in last 3 financial years excluding the current financial year, listed on National Stock Exchange or Bombay Stock Exchange, incorporated/registered atleast 5 years prior to the date of opening of tender, shall also be considered provided the work experience certificate has been issued by a person authorized by the Public listed company to issue such certificates.
In case tenderer submits work experience certificate issued by public listed company, the tenderer shall also submit along with work experience certificate, the relevant copy of work order, bill of quantities, bill wise details of payment received duly certified by Chartered Accountant, TDS certificates for all payments received and copy of final/last bill paid by company in support of above work experience certificate.
ØVariation to quantities of Minor Value Item:
GCC 2019 states “The limit for varying quantities for minor value items shall be 100% (as against 25% prescribed for other items). A minor value item for this purpose is defined as an item whose original agreement value is less than 1 % of the total original agreement value.
vQuantities operated upto and including 100% of the agreement quantity of the concerned minor value item, shall be paid at the rate awarded for that item in that particular tender;
vQuantities operated in excess of 100% but upto 200% of the agreement quantity of the concerned minor value item, shall be paid at 98% of the rate awarded for that item in that particular tender;
vVariation in quantities of individual minor value item beyond 200% will be avoided and would be permitted only in exceptional unavoidable circumstances and shall be paid at 96% of the rate awarded for that item in that particular tender.”
Earlier, the limit was the same, and there was no reduction in rate, which has been introduced in GCC-2019. Sufficient care must be taken at the time of passing of bills with variation in minor value items.
Following addition has been made to this Clause in GCC-2019 -
“The tenderer who has offered lower total cost as compared to tender value by more than 10 %, shall be required to submit additional Performance Guarantee of value equal to percentage of tender value by which offer is lower than 10%.” Sufficient care must be taken at the time of issuing LOA and signing of contract agreement.
ØPrice Variation Clause (PVC):
Price Variation Clause in Works Contract is dealt with in accordance with Provisions of Clause 46[A] of GCC July-2014. In order to simplify and enhance the pace of works, it has been decided to remove Price Variation Clause for all works contract tenders having value less than Rs. 5 Crore, as per Railway Board’s letter No. 2017/Trans/01/Policy, dated 08.02.2018. Earlier, PVC was applicable for the works costing more than Rs. 50 lakh.
Further, following change in the definition of Base Month is observed in GCC-18 as compared to GCC-14 -
“The Base Month for ‘Price Variation Clause’ shall be taken as month 28 days prior to opening of tender including extensions, if any, unless otherwise stated elsewhere. The quarter for applicability of PVC shall commence from the month following the month of opening of tender. The Price Variation shall be based on the average Price Index of the quarter under consideration, “, whereas as per the GCC-2014, the month of tender opening was considered as the Base Month. This must be verified at the time of PVC bill passing.
As per GCC’18”The percentages of labour component, material component, fuel component etc. in various types of Engineering contracts shall be as under:”
Plant Machinery &
Fuel & Lubricants
* It shall not be considered for any price variation.
Earlier (in GCC 14) percentages were as under –
Ballast & Quarry Products Contracts
Fuel & Lubricants
5 & 15
Labor component has been rationalised compared to GCC 2014. Changes in GCC has to be carefully seen at the time of preparing PVC bills.
2)INLAND LC (INDIAN RAILWAYS) PROCESS FOR RAILWAY’S ACCONTING UNIT (RAU)
Letter of credit is a letter issued by bank to serve as a guarantee for payment made to specified person under specified condition. Purpose to introduce LC is helping small and medium enterprises dealing with Railways and thereby boost economic activities. Railway floats tenders online in IRESPS portal (Indian Railways Portal). Vendor/beneficiary applies online for tenders in IREPS Portal with option of mode of payment through LC. Once opted mode of payment cannot be changed for the contract.
Once the tender are accepted by Railways, the respective Railway Accounting Unit (RAU) of respective Railway zone will receive letter from Executive to issue and Inland LC for that Vendor/Beneficiary.
The RAU has to process the request for issuance of inland LC through eTrade SBI Portal, to SBI, New Delhi Main Branch(NDMB), E Trade portal has Maker & Checker concepts means Maker will do data entry of LC request and the Checker (Supervisor) will authorize the request in e Trade portal.
The LC shall be opened initially for 180 to 365 as in consultation wth contractor .It can be extended further as per progress of work (as per RB no.2018/CE-I/CT/9 dated 04/06/2018).
The request letter will indicate the stage wise payment expected and stages needs to carefully decided by executive in consultation with contractor. It should be based on realistic assessment of progress of contract. It shall be verified by Finance at the time of forwarding the same to SBI. The SBI will raise LC opening charges on Railways accordingly. The concerned Executives Department officers are expected to exercise full due diligence while setting the amount of Letter of Credit. This amount will be amended as the contract/supply progresses. Since the ultimate charges are to be borne by contractor/vendor, consultation as necessary may be recorded.
SBI, NDMB will forward such request to SBI,TFCPC, New Delhi for processing the Inland LC for respective RAU in Enterprise Exim(EE).Advising Branch (i.e.) Linked SBI branches has to recover the Inland LC issuance charges. On receipt of the payment, the bank will open LC and send a PDF thereof to the beneficiary bank on SFMS and Account Officer who made request at his official email. SBI is charging LC charges @ 0.023% P.A. and Railway will recover incidental charges@ 0.15 % P.A.. Thus difference of 0.127% will be earning for Railways. There shall be provision for closing/terminating LC, once the contract is over/terminated.
Documents authorization will be as under:-
The LCDAshall be system generated from IPAS and digitally signed. Apart from electronic LCDA, a hard copy of LCDA duly signed and stamped by authorized signatory shall also be sent to the bank branch.
One copy of LCDA shall be posted on IREPS also for download by the party for submission of their claim to their banker (negotiating bank) for further processing. The claim shall comprise LCDA, Bill of Exchange and Invoice.
The negotiating bank shall forward the claim to Railway’s banker (SBI branch which issued LC) for arranging payment.
SBI on receipt of the claim shall assign and internal bill no. to the claim and process for the payment after due verification of the claim with LCDA received electronically from Railways.
The bank (SBI) shall release the payment to beneficiary bank against the claim after due internal checks. The bank shall ensure that only one payment is made against one LCDA after verification.
After payment, the paying branch of SBI shall send the original LCDA and other documents to the respective Railway Accounts Authorities. These payments will be reflected separately in the debit scroll (daily scroll).
The settlement of the transaction will thereafter be done as per Focal Point Bank Branch system of reporting and reconciliation of Government payments.
Common mistakes identified by Inspection teams during 2019-20
During the inspection it is observed that muster is marked by designation and not by name which is a wrong practice (As was done in ADMO/KWV unit). Muster should be invariably maintained by name of employee.
No scratching should be there on muster without attestation. Muster should be kept in the custody of officer/depot in-charge. The in-charge should attest the muster daily in token of verification of the attendance. It is observed that attendance of erstwhile Group “D” staff is marked as “P” which can later be converted ‘A’, if objection is raised. No such overwriting should happen on muster as this is one of the basic document for preparing pay sheet.
2)Leave Account(Para 523,524 of Indian Railway Estt.Code-Vol.I):-
Every employee is eligible for different kinds of leave such as LAP and HLAP which are recorded in leave account. The leave accounts maintained at depots should be reconciled with leave account maintained in SRkept in divisional office since the leave salary is paid to employee based on the records available in SR. The leave account should be attested by Gaz. officer periodically, i.e. Half yearly. It is observed during inspection that many a times the leave accounts are not updated. While carrying forward the balances of leave to next sheet (page) due care should be taken (e.g.32 becomes 132 as the case was noticed by audit since the payment of leave salary was made for 100 days excess). A separate leave account for child care leave should be maintained. Due care should be taken since this has financial implications.
3)Passes & PTOs:-
Every employee is eligible for privilege passes. Depending on the length of services and the level working in, the number of passes are decided. As per Pass rules 1986 (1993 Edition) The family members i.e. wife, husband, unmarried daughter, son upto the age of 21 years (unless schooling) and widow mother can be included. For a son aged more than 21 years a bonafide certificate should be obtained. The family particulars for inclusion in passes must be obtained from every employee with sufficient details every year. While issuing passes for widow mother as dependant, the income criteria should invariably be checked. It was observed that widow mother was included in the privilege passes without obtaining income certificate.
Recently 15 cases were pointed out at CCOR Daund unit resulted in recovery of Rs.1.07 Lakhfrom the concerned employees.
In some cases it is noticed that the passes are issued without mentioning break journeys. This may lead to misuse of passes. Break journey needs to be mentioned in case of alternate routes are available. Passes and PTO’s are numbered books having money value. Hence, a certification by issuing authority is to be made at the back of counterfoil of last page of new Pass/PTO book brought in use that ‘All foils checked and found correct’. The pass signing authority should put an initial on the counterfoil of next pass by which he will satisfy himself that the previous pass was issued by him. This will facilitate to trace the missing pass foil, if any.
Service Registers of the employees are required to be maintained as the same is the basis for promotions, increments, fixations , arrears of pay etc. It is noticed that the entries regarding fixations duly verified by Accounts, increments, promotion entries, arrears of pay, punishments and penalties are not updated thereby giving undue benefit to the employee. Leave accounts are not updated leaving scope for excess payments. The entries are not attested by the controlling officers.
Non-compliance of these points leads to delay and difficulties in finalisation of settlement cases and dealing with employee claims.
5)Child Care Leave (CCL) :-
As per extant rules, a women railway servant having minor Children below the age of 18 Years.(an offspring of any age in case of disabled children) may be granted for the maximum period of two years i.e. 730 days. During the period of child Care Leave, she shall be paid leave salary equal to the pay drawn immediately before proceeding on Leave. During the period of CCL, a female Railway Servant and a single male Railway Servant shall be paid one hundred percent of salary for the first three hundred and sixty five days, and at eighty percent of the salary for the next three hundred sixty five days. ( Rly Bd. L.No :- E( P& A) I-2019/CPC/LE-2 DATED 23/04/2019). It is observed during the field inspections that this rule is not followed in certain cases and recoveries are affected.
This allowance shall not be admissible to those employees who have been provided with the facility of Government transport. The allowance will not be admissible for the calendar months wholly covered by leaves. The Paysheet preparing staff need to pay attention and ensure no payment of TPTA made during such leave period.During the field inspections it is observed that this rule is being violated in many cases. Further, this allowance will not be admissible during the period of deputation aboard.
If an employee is absent from the Hq/place of posting for the full calendar months due to tour , he/she will not be entitled to Transport Allowance. The allowance may be granted during such training, if no transport facility /Travelling allowance /Daily allowance is provided for attending the training institute. During official tour in the training course, the allowance will not be admissible when the period of the tour covers the whole calendar month. However, if the absence does not cover any calendar months in full, Transport allowance will be admissible for the full month.
As a Government employee under suspension is not required to attend office, he/she is not entitled to Transport allowance.(Rly Bd. L.NO:- PC-V/2017/A/TA/1 DATED 3/08/2017)
7)Travelling Allowance :-
The time limit for submission of claims for Travelling Allowance has been revised. Consequent upon the issuance of General Finance Rule( GFR) 2017, vide Rule 290 of GFR, time limit for submission of claim for TA has been changed from one year to 60 days succeeding the date of completion of the journey. It has been decided with the approval of competent authority that the claim of a Railway Servant to TA /Daily allowance on tour /Transfer/Training/ Journey on retirement , is Forfeited or deemed to have been relinquished if the claim for it is not preferred within 60 days succeeding the date of completion of the journey. (R.B.L.NO:-F(E) I/2018/AL-28/29 DATED 23/03/2018
8)Night Duty Allowance( NDA):-
The hourly rate of NDA would be admissible to eligible categories of non –Gazetted staff under chapter XIV of the Railway Act, read with the railway servants (Hours of work and period of rest) Rules, 2005 for work put in during the period from 2200 hrs to 0600 hrs (R.B.L.NO:-E(P& A )II-2017/HW-1 DATED 08/03/2018) However during the inspection of SSE(P/Way)JH, it is noticed that the hours are considered from 18.00 hrs to 22.00 hrs i.e. 4 hours extra payment. Amount of Rs.37398/- is recovered from 9 employees. This should be avoided.
The overtime allowance voucher submitted to DRM/P/SUR through CMS and it is forwarded to this office without checking for verification through IPAS. The concerned staff at Divisional Office has to ensure correctness as per CMS data. During the scrutiny of investigation proposal submitted to this office for arrears of pay in f/o Shri. Abdul Samad/CTNC/SUR & three others for the period from 01.10.2017 to 03.03.2018, it is noticed that the excess hours shown for OT than as shown in OT vouchers. As a result of this an excess payment of Rs.14888/- is detected. This should be avoided.
10)Imprest Bills :-
Following Points may be complied before forwarding Imprest Bills to Accounts.
Cash Imprest- An introduction:-
Imprest is termed in the following manner.
An imprest is a standing advance of a fixed sum of money placed at the disposal of an individual to meet the following types of expenditure.
(1) Petty Office expenses.
(2) Cost of raw materials for the diet of indoor patients of hospitals.
(3) Emergent charges which cannot be foreseen.
(4) Other petty expenses upto an amount of Rs.5,000/ - in each case.
Points to be noted:-
vThe imprest bill is to be maintained in duplicate and submitted to Accounts along with Original Vouchers only.
vThe balances should be brought forward correctly i.e. opening balance of present period imprest should be tallied with closing balance of earlier period.
vThe various charges/expenses which are subject to pre-check by Accounts should not be included in the Imprest bill.
vThe rates charged in the vouchers are not extravagant.
vThe special charges/expenses which requires sanction of higher authority or are regulated by a scale the requisite sanction, may be included after obtaining specific sanction only.
vThe expenditure vouchers, should not be a quotation/estimate etc. and only cash memo should be submitted alongwith Imprest bill.
vAny repairs bill if included in the imprest, it should be certified by the concerned branch i.e. Mechanical, Electrical, Engineering, that such repairs cannot be undertaken departmentally etc. further, the voucher should be certified by the Imprest holder as per SOPGEN provisions for the concerned expenditure.
vAll the bills/voucher should be signed by the Gazetted officer as well as Imprest holder.
vVoucher should contain all the details in printed format, such as Name of Firm/shop, address, bill number, date of bill, Taxation number (GSTNo. Etc.), and the other details such as rate, quantity, amount and total amount etc. should be tallied, and the bill should also be signed by the seller/shop owner invariably.
11)Streamlining Scrap disposal procedure
vScrap lot has to be formed as per the JPO i.e. 1) Material has to be stacked systematically as otherwise it is not possible to verify the quantity in numbers and length (in case of rail) easily. 2) Material of lots found spreaded over 3-4 kms in section, yard and it is very difficult to identify the lot. Very recently one lot of PSC sleepers of SSE (PWay)KWV Lot No. 54/07/ 19/05/113, 5250 PSC sleepers were withdrawn from auction catalogue as the lot was spread over 58 kms from Km 355 to 413 between section BLNI-MKPT section. These type of situations can be avoided by forming lots as per JPO.
v Except Rail lots, delivery of the scrap material is normally given on actual weight basis but in Railways it is a fact that stockholders are not having weighment facilities. And quantity of lot is assessed on approximate basis. Railway permitted 10% excess/shortage in deliveries of lot quantity where mode of delivery is on actual weight basis. But when this limit exceeds at the time of delivery it becomes very problematic to complete the delivery. If the major stockholders are provided with weight machines, at least 1 ton capacity, this problem can be curtailed.
v It is observed that lot material is not staked at suitable location where from easy loading in possible. Sometimes material has to be loaded by crossing 2-3 running lines and it is not safe. Such staking should be avoided by the stockholder.
12) Common mistakes committed in execution of parking contracts:
The following aspects of Security Deposit have to be seen while entering into the parking contract by commercial department and same needs to be verified by accounts. As per the original policy letter no C/180/FD/Parking policy/16 dated 11/05/2016
“Contractor should furnish to Railway S.D for amount in the form of BGB, FDR, DD/Cash without which license will not commence his work. SD should be valid for the term of the license and upto a period extending 6 months beyond the term of license. SD shall be released only after the successful completion of the contract duly ensuring that the railway premise is handed over by the contractor after proper cleaning.”
The following change is inserted in Security deposit clause in 2017.
SECURITY DEPOSIT (SD)
5.1: Security deposit for an amount equal to yearly license fee for three years within 21 days time on receipt of LOA
SECURITY DEPOSIT ( SD)
5.1: “Security deposit for an amount equal to 25% of the annual license fee within 21 days time on receipt of LOA.
“ It has to be ensured before entering contract agreement.
Further during field inspections it is observed that timely payment of license fee is not being paid by parking contractors. It has to be strictly ensured by CCI and SM of concerned station. The following are the clauses pertaining to payment of license fee in parking contracts
9.1LICENSE FEE PAYMENT:
To be paid on half yearly basis in advance.
1.1LICENSE FEE PAYMENT :
To be paid on quarterly basis ensuring recovery of the same 10 days in advance of the starting of the quarter. During the inspection it is verified that contractors of Kalaburgi, Shahbad and Daund have not paid their license fee in advance as per contract agreement. Chief commercial inspectors and SM should ensure such instances are not repeated.
13) Fixation License Fee/Reserve Price for New Static Catering Unit
As per Railway Board’s Commercial Circular No.20/2017 License /Reserve price shall be fixed as 12% of the annual sales turnover of static units.
1)Annual sales turnover shall be based on the following factors: -
vCategory of station
vType of license
vNumber of originating passengers
vNumber of trains stopping(day & night)
vDuration of stoppages.
vLocation of the unit at the station
vApproximate license of similar type of unit at similar category of station
vNotified Circle rates.
2)License fee is decided on the points allotted for the above mentioned factors. For example for “A” category station points allotted is 20 and for “B” category stations it is 10 points and so on.
3)Maximum points allotted are 200. Based on these points License fee of unit shall be decided.
4)Minimum license fee/ reserve price should be the highestof the following and in no case should be less than the last accepted rate.
vLicense fee worked out as per above SAG formula.
v12% of the estimated annual sales turnover.
vLicense fees of a similar type of unit at a similar category of station in proximity.
14) Fixation of License fee for existing Catering stalls
vAnnual sales assessment of static units shall be done in Lean period as well as in Peak period for three days in each period for arriving average sales amount for fixation of annual license fee.
vAnnual License fee should be fixed @ 12% of amount arrived on average sales assessment done.
vLicense fees should be issued and collected on half yearly basis in advance
vRecently sales assessment of Solapur station for all Licensees has been done in Lean as well as Peak period for three days in the month of September 2019 and December 2019, for which report has already been submitted to Sr.DCM/SUR’s office. It is anticipated that by sales assessment nearly 20% license fee of catering stalls will be revised.