Financial Regulations Volume I (1986)

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Questions and Answers

What year was the last edition of 'Financial Regulations', Volume 1, issued before the revised edition?

1952

What date has been set as the cut-off for incorporating changes in the revised edition?

31st December 1985

What does the table of concordance provide?

Corresponding rules in the superseded edition (correct)

A list of amendments

A summary of financial rules

A list of financial expenditures

The regulations in the revised edition supersede those in the 1952 edition.

True Signup and view all the answers

Who should errors or omissions be reported to?

Regulations Directorate, AG's Branch, GHQ, Rawalpindi Signup and view all the answers

When was the revised edition published?

20 April 1986 Signup and view all the answers

What is included in Chapter 1 of the document?

Definitions and powers of the President Signup and view all the answers

The 'Financial Regulations' are issued for the Army and _____ force.

Air Signup and view all the answers

What is the title of Chapter 2?

Losses, Wastages and Damages to Public Property - Procedure and Powers to Write Off Signup and view all the answers

What is the primary purpose of attachment orders in civil courts?

To secure a claim by seizing a debtor's property. Signup and view all the answers

What is meant by time barred claims?

Claims that cannot be enforced in court due to the expiration of the legal time limit. Signup and view all the answers

How are pay and allowances determined for civil service employees?

They are based on established government regulations and policies. Signup and view all the answers

What considerations are taken into account when calculating standing security deposits?

Factors like the nature of the contract and the associated risks are considered. Signup and view all the answers

What is the significance of erroneous payments in the audit process?

They indicate discrepancies that could lead to financial loss or legal issues. Signup and view all the answers

What is a last pay certificate and why is it important?

A document that records the final payments due to an employee, critical for verifying their entitlements. Signup and view all the answers

What are the powers of audit officers regarding financial reviews?

They have the authority to review financial records and assess compliance with regulations. Signup and view all the answers

What forms can standing security deposits take?

They can be in cash, bank guarantees, or bonds. Signup and view all the answers

What are the general rules regarding contracts mentioned in the document?

They provide guidelines for forming, modifying, and enforcing contracts. Signup and view all the answers

What is the purpose of estimating requirements in contract management?

To determine the necessary resources and costs for executing a contract. Signup and view all the answers

What does the term 'standing security deposit' refer to?

It refers to a deposit held to ensure compliance or performance by a contractor. Signup and view all the answers

Why might irregular concessions to contractors be a concern?

They could lead to unfair advantages or diminish the integrity of the bidding process. Signup and view all the answers

What is the significance of advertisements in the context of contract arrangements?

They serve to inform potential bidders about upcoming contracts and encourage participation. Signup and view all the answers

What steps are involved in the process of opening tenders?

Tenders are submitted, reviewed for compliance, and then publicly opened to ensure fairness. Signup and view all the answers

What occurs if there is a non-receipt of tenders?

It may require re-advertising the contract opportunity or extending the submission deadline. Signup and view all the answers

What are fidelity bonds and their relevance in contract management?

Fidelity bonds provide insurance against employee dishonesty, protecting against losses. Signup and view all the answers

What is the main responsibility of the Financial Adviser attached to the Service Chief?

To advise the Service Chief on all financial matters. Signup and view all the answers

Who retains administrative control over the Financial Adviser?

The Ministry of Finance. Signup and view all the answers

Explain the role of the Financial Adviser regarding budget estimates.

They examine and tender advice on budget estimates before submission to the Service Chief. Signup and view all the answers

What can the Service Chief do if they disagree with the Financial Adviser's advice?

They may overrule the Financial Adviser for reasons that must be recorded. Signup and view all the answers

In what circumstances should differences of opinion between the Financial Adviser and Service Chief be referred?

When determining if a case falls within the authority delegated to the Service Chief. Signup and view all the answers

How should Finance Officers be involved in policy-making, according to the outlined procedure?

They should be nominated as members of policy and priority Committees at the Service Chief's discretion. Signup and view all the answers

What specific aspect of proposals does the Financial Adviser's advice focus on?

The financial propriety of the proposals. Signup and view all the answers

Who is responsible for scrutinizing all new measures alongside the Financial Adviser?

The Financial Adviser assists in this scrutiny. Signup and view all the answers

What is the general rule regarding cheques drawn in payment of personal dues?

They shall be crossed. Signup and view all the answers

Under what circumstances may an uncrossed cheque be issued?

When requested in writing by the payee. Signup and view all the answers

How should amounts in military cheques be expressed?

In figures and words. Signup and view all the answers

What specific words should be used when crossing cheques for Government officers?

'A/C payee only not negotiable'. Signup and view all the answers

What is required when sending cheques in favor of private individuals by post?

They must be sent by registered post with acknowledgment due. Signup and view all the answers

What happens to cheques for amounts due to units or formations?

They are crossed and marked 'A/C payee only'. Signup and view all the answers

Who must obtain a written declaration from the payee when sending private cheques by post?

The sender of the cheque. Signup and view all the answers

What is the purpose of marking a cheque 'not negotiable'?

It prevents the cheque from being transferred to another party. Signup and view all the answers

What action should be taken when a defect of system is discovered in an investigation into loss?

A report should be made to the Government and the Controller of Accounts, along with a recommendation to rectify the defect. Signup and view all the answers

Are petty thefts required to be reported during investigations of loss?

No, petty defalcations or petty thefts need not be reported. Signup and view all the answers

Can a case of loss be subdivided to fall within the financial powers of an authority?

No, it is not permissible to subdivide a case of loss for this purpose. Signup and view all the answers

Who is responsible for reporting loss of stores in base and station supply depots?

The storekeeper concerned is personally responsible for making an immediate report. Signup and view all the answers

What must the officer commanding do upon receiving a report of lost or damaged stores?

The officer commanding must investigate the cause and report the occurrence to the station commander. Signup and view all the answers

What classification is used for losses of stores?

Losses are classified as either in base and station supply depots or in all other cases. Signup and view all the answers

What is the monetary limit of sanction in relation to cases of loss?

The specified monetary limits refer to each separate case of loss and cannot be subdivided. Signup and view all the answers

What should be done by the audit authorities before regularizing any losses?

The value of such losses shall be checked by the audit authorities. Signup and view all the answers

Study Notes

Preface

The 1986 edition of "Financial Regulations" for Army and Air Force supersedes the 1952 edition.
Incorporates all changes up to December 31, 1985.
A table of concordance is included to help trace corresponding rules from the 1952 edition.

Contents Overview

The document includes a record of amendments, table of contents, lists of annexes, and abbreviations.

General Provisions

Short title and commencement defined in Chapter 1, Rule 6.
Key definitions provided in Rule 7, for clarity on regulations.
Establishes the powers of the President in managing financial matters (Rule 8).
Joint service instructions have validity as outlined in Rule 9.

Financial Management

Sanctioning of defense expenditure is governed by Rule 10.
Rule 11 emphasizes adherence to financial canons.
Details on the exercise of financial powers are provided (Rule 12).
Specifies acceptable objects for sanctioned expenditure (Rule 13).

Financial Authorities

Services Chiefs hold specific financial powers outlined in Rule 14.
Rule 15 discusses Expenditure Equalisation Deposit Accounts.
Additional powers for Chief of Army Staff and Chief of Air Staff are specified in Rule 16.
Financial authorities for other levels are detailed in Rule 17.

Officer Responsibilities

Each hierarchy of officers, including heads of missions abroad and MGO services, holds defined financial powers (Rules 19 and 20).
Personal powers of officers are addressed in Rule 23.

Expenditure Guidelines

Procedures for sanctioning expenditure in instalments and authorization of other officers are outlined in Rules 19 and 25.
Guidelines around losses, wastages, and damages to public property are included (Rule 42).
Expenditure against an allotment and operational expenditure estimates are covered under Rules 30 and 32.

Special Provisions

Fees, honoraria, and cheque issuing procedures discussed in Rules 40 and 41.
General rules regarding losses of stores and writing off damages emphasized (Rules 37 and 38).

Summary of Amendments

Rules aim at maintaining a structured approach to financial management within the military, ensuring accountability and clarity in expenditure.

Civil Courts and Claims

Attachment Orders: In civil courts, attachment orders are legal directives allowing the seizure of a debtor's property to secure payment of a claim.
Limitation of Claims: Specific time limits exist for filing claims, which vary based on the nature of the claim.
Claims Governed by Civil Service Regulations: Certain claims must adhere to established civil service regulations, ensuring structured processing.
Pension Claims: Procedures and regulations exist specifically for handling claims related to pensions, crucial for retirees.
Time Barred Claims: Claims that exceed the limitation period may be dismissed, highlighting the importance of timely filings.

Vocabulary and Payment Issue Rates

Vocabulary Rates: Defined terms related to claims and payments are established to ensure clarity in legal documents.
Payment Issue Rates: These refer to standard rates applied to payments, impacting financial operations significantly.
Claims Against Carrying Agencies: Agencies responsible for transport may face claims for losses due to mishandling or negligence during transport.

Pay and Allowances

Pay and Allowances: Systems are in place for calculating and issuing pay and allowances, vital for employee remuneration.
Last Pay Certificate: A critical document affirming the final salary paid to an employee, particularly upon resignation or retirement.

Audit and Objections

General Rules: Basic principles governing audits and objections to ensure financial integrity and accountability.
Erroneous Payments: Procedures established for rectifying payments made in error, aiming to recover funds efficiently.
Remission of Disallowances: Accounts may be adjusted through the remission of prior disallowances under explicit conditions.
Powers of Audit Officers: Audit officers possess significant authority to investigate financial discrepancies and enforce compliance.
Objection Statements and Appeals: Formal methods exist for raising objections and appealing decisions made during audits.

Standing Security Deposits

Calculation Methods: Detailed guidelines are provided for calculating standing security deposits, ensuring standardization.
Forms of Deposits: Various formats for securing deposits are available, offering flexibility for compliance.
Refund Procedures: Clear protocols for refunding deposits following the conclusion of contracts or services undertaken.
Lapsed Deposits: Guidelines address procedures for handling deposits that are unclaimed or lapsed over time.
Bank and Contract Securities: Specifications for utilizing bank securities and contract securities are outlined to safeguard institutional interests.

Contracts

General Rules for Contracts: Definitions and guidelines set expectations for contractual obligations and standards.
Supplies and Services: Regulations governing the procurement of supplies and services to maintain efficiency and transparency.
Contract Arrangements: Provisions dictate how contracts should be arranged and the necessary approvals required.
Tenders: Guidelines and procedures for the advertisement, submission, and evaluation of tenders are crucial for fair competition.

Financial Advisers and Their Roles

Appointment of Financial Advisers: Careful selection of financial advisers ensures expertise in managing financial matters within services.
Procedural Compliance: Financial advisers assist in budgeting processes and ensure compliance with established procedures.
Authority of Service Chiefs: Service Chiefs may overrule financial advisers under certain circumstances, necessitating clear communication and documentation.
Cheques and Payments: Strict regulations govern the issuance and handling of cheques, emphasizing the necessity for security and appropriate procedural adherence.

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Description

This quiz covers the updated Financial Regulations for the Army and Air Force, as outlined in Volume I published in 1986. It includes revisions made since the previous edition from 1952 and incorporates all changes effective until December 31, 1985.