Audit of Railway Finance and Appropriation Accounts

184 Pages·2014·3.78 MB·English

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

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
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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
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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
3. and Budget from General Budget of Govt. of India 1
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
Session 2 Accounting System of Railways and Structure of
4. 20
Railway Accounts.
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 Accounts Office
5. 41
(Open line, Construction, Stores, Workshop &
Traffic).
Instructor’s Guide 42
Participants’ Note 43-61
Print outs of PowerPoint slides 62-65
Participants’ exercises 66-70
Session 4 Compilation of various Important Accounts by the
6. 72
Accounts Office.
Instructor’s Guide 73
Participants’ Note 74-81
Print outs of PowerPoint slides 82-86
Participants’ exercises 87-89
Session 5 Railway Budget and Appropriation Accounts
7. 90
Instructor’s Guide 91
Participants’ Note 92-103
Print outs of PowerPoint slides 104-108
Participants’ exercises 109-113
Session 6 Audit of Railway Finance And Appropriation
8. 115
Accounts
Instructor’s Guide 116-117
Participants’ Note 118-166
Print outs of PowerPoint slides 167-170
Participants’ exercises 171-175

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Training Manual on Audit of Railway Finance and Appropriation Accounts
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List of Abbreviations and Acronyms

Sl. Abbreviated Full Form Sl. Abbreviated Full Form
No. Form No. Form
Research, Designs Department
1 RDSO and Standards Railway Code for
Organisation Accounts
12 A
2 GM General Manager Department (Part I
Divisional Railway & II)
3 DRM
Manager Railway Code for
13 S
Financial Advisor Stores Department
4 FA&CAO and Chief Accounts Railway Code for

Officer 14 Mechanical
W
Principal Director Department
5 PDA
of Audit Indian Railway
Depreciation 15 F Financial Code,
6 DRF
Reserved Fund (Vol. I & II)
7 DF Development Fund Workshop
CF Capital Fund 16 WMS Manufacturing
Open-Line Works Suspense Account
8 OLWR
(Revenue) Workshop General
17 WGR
Railway Safety Register
9 RSF
Fund 18 SS Stores Suspense
Railway Audit 19 DP Demands Payable
10 RAM
Manual
Railway Code for
11 E
the Engineering

Training Manual on Audit of Railway Finance and Appropriation Accounts iv
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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 Need for separation of Railway Finance and
1 150 mins
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
Afternoon of Railway Accounts.
2 150 mins
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-

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Training Manual on Audit of Railway Finance and Appropriation Accounts
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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
Railway Budget and Appropriation Accounts.
Forenoon
5 150 mins
Session
-do-
Afternoon -do-
5 150 mins
Session
-do-
Day 5
Session Time Required Topic
Audit of Railway Finance Accounts including
various Railway books & Accounts, Accounts
Forenoon
6 150 mins Current of Open line, Construction, Stores,
Session
Workshop & Traffic.
-do-
-do-
Audit of Railway Budget & Appropriation
Afternoon
6 150 mins Accounts with different schedules/ Annexures
Session
/Statements etc., different kinds of Audit
objections noticed and discussion of cases
studies.
Day 6
Session Time Required Topic
-do-
Forenoon
6 150 mins
Session
-do-
Test
Afternoon
150 mins
Session
Valediction

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Training Manual on Audit of Railway Finance and Appropriation Accounts
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Training Manual on Audit of Railway Finance and Appropriation Accounts
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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.

Training Manual on Audit of Railway Finance and Appropriation Accounts 1