Financial Management Reporting Chapter V

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Questions and Answers

What is the maximum mobilization advance that can be granted to contractors?

5% of the contract value

15% of the contract value

20% of the contract value

10% of the contract value (correct)

Under what condition can legal expenses be reimbursed to a Railway servant?

For any suit filed in a Court of Law

If the suit is related to official duties and prior approval is granted (correct)

Only if the Railway servant takes personal leave

If the suit is in favor of the Railway Administration

What is the maximum daily fee allowed for engaging counsel in the Supreme Court without prior approval?

Rs.1,050/- per day (correct)

Rs.1,200/- per day

Rs.900/- per day

Rs.1,000/- per day

What is the maximum amount that can be written off due to irrecoverable dues to the Railways?

Rs.2 lakh Signup and view all the answers

Which of the following advances can exceed the set limit in special circumstances?

Advances for accelerating progress of work Signup and view all the answers

Who is responsible for watching the progress of expenditure and keeping aggregate charges within the amount of the Grant or Appropriation?

The Railway Board Signup and view all the answers

What is required when several officers are authorized to incur expenditure against a lump sum allotment?

The higher authority must supervise the overall expenditure. Signup and view all the answers

What does the authority to incur expenditure carry with it?

Responsibility for control of expenditure within limits Signup and view all the answers

What factor can lead to modifications in detailed estimates of revenue expenditure?

Allotments sanctioned by the Railway Board Signup and view all the answers

Which statement is correct regarding the powers delegated by the Railway Board?

Delegated authorities must follow various codes, rules, and regulations. Signup and view all the answers

What is the relationship between the General Manager and the Railway Board regarding budget estimates?

The General Manager submits revised and budget estimates based on detailed estimates from heads of departments. Signup and view all the answers

What must accompany the exercise of authority for incurrence of expenditure?

Responsibility for overseeing financial propriety Signup and view all the answers

What does the term 'adjustments' refer to in the context of Railway Administration?

Transactions among multiple accounting units and administrations Signup and view all the answers

In the context of staff expenditures, which components are directly accounted for as cash outgo?

Net amounts payable to the staff after recoveries Signup and view all the answers

What should financial statements of the railway be prepared in accordance with?

The Indian Railway Code for the Accounts Department Signup and view all the answers

How must the assessment of cash and adjustment portions of expenditures be conducted?

In accordance with established guidelines Signup and view all the answers

What is included in the Analysis of Working section?

Statements of Rolling Stock and Revenue Signup and view all the answers

What is a critical step for verifying the reasonableness of expenditure bifurcation?

Comparing with previous year figures Signup and view all the answers

What information should be noted regarding exceptional events?

Damages caused by natural disasters and coping measures Signup and view all the answers

In terms of fuel expenditures, when is Exchequer Control primarily applied?

At the stage of fuel purchases Signup and view all the answers

What powers do General Managers of Indian Railways possess?

To sanction expenditure and delegate powers Signup and view all the answers

What type of expenditures do staff payments represent in the Railway's revenue accounting?

Easily ascertainable commitments Signup and view all the answers

What type of statements are included in the Appendices section?

Statements of accidents and staff costs Signup and view all the answers

What recent change was made to the Railway Rates Tribunal?

It was merged with the Railway Claims Tribunal Signup and view all the answers

Which aspect of staff expenditure is shown as adjustments?

Recoveries made through payrolls Signup and view all the answers

Which aspect of railway working is primarily used for compiling statistics?

Detailed Statements of Operating Statistics Signup and view all the answers

What does cash outgo for fuel encompass at the final heads?

Tax payments and handling charges Signup and view all the answers

What measures are often taken to improve comfort for lower class passengers?

Upgrading existing facilities and services Signup and view all the answers

What could potentially affect the estimation of cash payments for staff expenditures?

Past actual payments and relevant factors Signup and view all the answers

Why is it important to note fluctuations in operating results?

To identify causes of revenue changes Signup and view all the answers

What type of statistical statements are included in Section III?

Operating Statistics and Revenue Statements Signup and view all the answers

What is the maximum honorarium that a Gazetted Railway servant can accept for acting as an arbitrator in a dispute involving the Railway Administration?

Rs. 20,000 Signup and view all the answers

What is the annual honorarium limit for Non-gazetted Railway employees?

Rs. 15,000 Signup and view all the answers

What is the maximum reward amount that can be granted to persons other than Railway employees for exemplary work in accident prevention?

Rs. 50,000 Signup and view all the answers

What is the maximum amount that can be sanctioned for training courses outside India for Zonal Railways in one year?

Rs. 1 crore Signup and view all the answers

What is the maximum value of expenditure on deputation training for Production Units in a year?

Rs. 8 lakh Signup and view all the answers

What is the maximum individual reward that can be granted in other cases not involving Railway employees?

Rs. 25,000 Signup and view all the answers

Who must concur for the grant of honorarium to Non-gazetted Railway employees?

The Chief Financial Adviser Signup and view all the answers

For what specific type of case is there no limit on the honorarium received by a Railway servant?

Disciplinary enquiries against Railway Officers Signup and view all the answers

What additional requisite is noted for granting rewards above Rs. 50,000?

Must have been re-delegated to DRMs Signup and view all the answers

What is the significance of the Board’s Letter in terms of honorarium limits?

It sets specific limits and regulations for different categories. Signup and view all the answers

What is the main purpose of maintaining a continuous watch on revenue realization as discussed in the Railway Budget?

To track actual revenues against budgeted expectations Signup and view all the answers

How is the monthly statement of approximate gross revenue prepared by the Railways primarily structured?

On the basis of estimated apportionment between various Zonal Railways Signup and view all the answers

What is the significance of the budgetary control mentioned for the Railways expenditure?

To confirm expenditure aligns with Parliamentary approval Signup and view all the answers

Which factor is essential for comparing gross revenue figures presented in the Railways' monthly statements?

The proportionate budgeted revenue for the same period Signup and view all the answers

What is the primary concern when there is a shortfall in revenue from any traffic segment as outlined in the budgetary approach?

To promptly inform the concerned departments for rectification Signup and view all the answers

In the context of Railway Budget management, which statement correctly reflects the governance of capital expenditure?

It is regulated by strict compliance with the Demands for Grants Signup and view all the answers

What tool is primarily used to compare revenue performance between expected projections and actual collections for the Railways?

Monthly financial reviews on an apportioned basis Signup and view all the answers

Who is primarily responsible for the consolidation of Monthly Financial Reviews?

Chief Accounts Officer Signup and view all the answers

What must occur before liability can be incurred if provision for it does not exist?

Funds should be re-appropriated or newly allotted. Signup and view all the answers

What action should the Accounts Officer take regarding potential savings?

Withdraw funds from the sub-head immediately. Signup and view all the answers

Which funds are mentioned for separate allotments to railway administrations?

Capital Fund, Safety Fund, Development Fund Signup and view all the answers

When re-appropriations are needed, what should the Accounts Officer ensure?

They are carried out promptly and effectively. Signup and view all the answers

What is required when there is a change in expenditure progress under a head?

Immediate steps must be taken to arrange for additional appropriation. Signup and view all the answers

What is the nature of allotments given to railway administrations?

They are issued in lump sum for various funds. Signup and view all the answers

In what situation can provisional liquidation of liabilities occur?

When prior funds are assured by the spending authority. Signup and view all the answers

What type of programmes detail the distribution of funds over works for which they are intended?

Works, Machinery and Rolling Stock Programmes Signup and view all the answers

What is required prior to creating a permanent or temporary post in the railway system?

Previous sanction from a higher authority Signup and view all the answers

Which scenario may allow Medical Officers to receive fees while holding positions that normally prohibit private practice?

Upon approval from the Railway Board Signup and view all the answers

What is the maximum cap for grants of rewards to non-gazetted Railway employees for exemplary work to avert accidents?

Rs. 30,000 Signup and view all the answers

Which of the following actions requires prior sanction from a higher authority before it can be executed?

Permitting a Railway employee to undertake work for outside companies Signup and view all the answers

What is the maximum individual reward that can be granted for inventions to Railway employees who transfer patent rights to Indian Railways?

Rs. 50,000 Signup and view all the answers

What should be included in the financial statements of the railway?

Both capital and revenue transactions Signup and view all the answers

Which aspect is primarily analyzed in the 'Analysis of Working' section?

Statistical statements related to railway operations Signup and view all the answers

What measures are typically taken to enhance comfort for lower class passengers?

Ensuring better sanitation and hygiene facilities Signup and view all the answers

What type of exceptional events must be documented in the financial statements?

Damages caused by natural disasters Signup and view all the answers

What is a crucial step in preparing the Appendices section of railway accounts?

Providing statements on staff numbers and accident costs Signup and view all the answers

What was a significant change made by the Finance Act 2017 regarding tribunals?

Merger of Railway Rates Tribunal with Railway Claims Tribunal Signup and view all the answers

Which powers are specifically granted to the General Managers of Indian Railways regarding expenditure?

Sanctioning expenditures with prior approval of the Principal Financial Adviser Signup and view all the answers

In which section would you find detailed statements of revenue, earnings, and operating statistics?

Section III - Analysis of Working Signup and view all the answers

What information is essential to capture regarding fluctuations in operating results?

Causes contributing to the fluctuations Signup and view all the answers

What should the financial statements reflect about the previous year's performance?

Variations in gross receipts and expenditures Signup and view all the answers

What should the quarterly reviews for ending June, September, and December include in terms of explanations?

Meaningful reasons for variations and remarks on progress Signup and view all the answers

Which form should be used for preparing the review of expenditure by works?

Form F. 526 Signup and view all the answers

In the budget expenditure review, what should be indicated in column 12?

Meaningful remarks on the progress of expenditure Signup and view all the answers

What should 'commitments' refer to in the context of the expenditure review?

Expenditure that has not yet been paid or included Signup and view all the answers

What does the term 'probable outlay' imply in the expenditure context?

Estimated future expenses necessary to complete a project Signup and view all the answers

What type of information is expected to be recorded in column 7 of the expenditure review?

Total commitments to be paid in the following year Signup and view all the answers

Which section of the expenditure review reflects the balance of budget allocation?

Column 11 Signup and view all the answers

What kind of remarks should be recorded in consultation with spending authorities?

Brief remarks on the rate of progress of expenditure Signup and view all the answers

What does the 'balance of commitments' indicate in the review form?

The total expenditures planned but not yet incurred Signup and view all the answers

Which of the following must be done at the end of each quarter regarding the budget?

Send detailed accounts to the Board as per guidelines Signup and view all the answers

Study Notes

Chapter V: Budgetary and Expenditure Control Financial/Management Reporting

Budget is a crucial instrument for Parliamentary financial control and expenditure control.
Gross revenue figures are tracked continuously and monthly.
Monthly statements of approximate gross revenue are sent to the Railway Board.
Revenue and capital expenditure are reviewed.
Expenditure is monitored against allocated grants.
Exchequer control is crucial for budgetary management.
Implementation and limitations of Exchequer Control are examined.
Assessment of cash outgo is part of the financial control.
Reports on Railway's performance are prepared annually.
Budgetary and expenditure control, financial management reporting systems and related documents are outlined.
Annexures provide further detail on railway-related entities and regulatory bodies.
Financial reports are prepared for monitoring expenditure against allocated funds.
The review of expenditure is compiled monthly.
Review of capital expenditure and suspense grants are key components of the budgetary procedure.

Budgetary and Expenditure Control

Budgetary control is a crucial aspect of the management and administration of the Railway.
Parliamentary approval is necessary for most expenditures.
Monthly reports are compiled to compare actual expenditure with budget allocations.
Any shortfall in revenue is immediately addressed.

Revenue and Capital Expenditure

Monthly statement of approximate receipt and expenditure is prepared.
Review of revenue and capital expenditure is part of the financial reporting process.
Financial statements detail the distribution of resources.
Revenue allocation registers track allocated funds to different departments
Proper management of revenue and capital expenditure is critical for effective financial reporting.

Exchequer Control

Exchequer control is vital for tracking and limiting spending to approved amounts.
Financial reports are crucial to maintaining budgetary control.
Detailed analyses of expenditure by various heads are regularly reviewed.

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Description

Explore the essentials of budgetary and expenditure control in financial management reporting. This quiz covers tracking revenue, monitoring expenditures, and the implications of Exchequer control, specifically in the context of railway financial management. Dive into key concepts and related documents to enhance your understanding.