Internal Check in Railway Finance

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Questions and Answers

What should be done in instances of gross carelessness in the preparation of bills?

Report it to the employees involved only

Bring it to the notice of the head of the office concerned (correct)

Ignore the issue until it resolves itself

Wait for the next meeting to discuss

What is the threshold for a Financial Adviser or Chief Accounts Officer to waive objections for irregular expenditure?

Rs. 100/- for individuals and Rs. 50/- for others

Rs. 100/- in individual cases and Rs. 25/- for other Accounts Officers (correct)

Rs. 150/- in individual cases

No thresholds are established

Under what circumstances can the Financial Adviser waive objections regarding justifiable expenditures?

If the expenditure is recurring

If it is covered by sufficient sanction

If the expenditure does not exceed Rs. 500/- (correct)

If full proof of incurred expenditure is available

What should be done if irregular expenditure is likely to recur?

The Drawing Officer should be informed that the expenditure was irregular Signup and view all the answers

What is the limit for an Accounts Officer in charge of a sub-accounts office to admit expenditure without sufficient sanction?

Rs. 50/- per case Signup and view all the answers

What is required for all receipts related to railway transactions?

They must be classified and apportioned among railways as necessary. Signup and view all the answers

Which of the following is allowed to be paid before a pre-check by the Accounts officer?

Payments from imprest. Signup and view all the answers

Under what circumstances can the Financial Adviser permit prior payments of pay bills?

When a post-check is necessary to avoid work overload. Signup and view all the answers

Which category of payments requires that checks are made after payment is issued?

Station earnings when rules permit. Signup and view all the answers

What is a primary reason for implementing a post-check system according to the guidelines?

Reducing the staff workload during peak periods. Signup and view all the answers

Which of the following is NOT permitted to be checked post-payment under the guidelines?

Salary payments for executive staff. Signup and view all the answers

What should happen to all claims against the railway before payment is made?

They should be checked by the Accounts officer. Signup and view all the answers

Under what condition can a claim be disallowed?

There is prima facie evidence that it is incorrect. Signup and view all the answers

What must happen if a claim is found to be technically objectionable but prima facie correct?

It can be admitted if the railway is liable. Signup and view all the answers

What role does the Financial Adviser and Chief Accounts Officer play in objectionable claims?

They can admit claims to avoid undue delays. Signup and view all the answers

Which authority can override the Accounts Officer's decision on irregular claims?

General Manager or delegated authority. Signup and view all the answers

What happens if payments are made before scrutiny and found irregular?

They must be placed under objection. Signup and view all the answers

What is the consequence of failure in the correct preparation of bills by Departmental Officers?

It requires more staff and delays payments. Signup and view all the answers

If a claim is deemed to be irregular by the Accounts Officer, what is usually required?

Provision for provisional passage until regular completion. Signup and view all the answers

What does 'prima facie' mean in the context of claims?

Claims that seem correct at first glance. Signup and view all the answers

When can claims open to substantial objection still be admitted?

If they do not affect the title of the payee. Signup and view all the answers

What is a common consequence of improperly prepared bills?

Delays in payments and higher staffing needs. Signup and view all the answers

What should the Finger Print Examiner do during surprise checks?

Witness payments and compare thumb impressions Signup and view all the answers

What should the Accounts Office check in relation to repayments?

The payment against the original receipt Signup and view all the answers

In terms of deposits, what is essential for moneys received to be held?

General or special orders from the General Manager Signup and view all the answers

What must the Accounts Office ensure regarding refunds of deposits?

Refunds do not exceed the amounts originally credited Signup and view all the answers

What is the purpose of internal checks on Provident Funds?

To ensure compliance with governing rules and regulations Signup and view all the answers

Subscriptions to a Provident Fund can be received from whom?

Only those required or permitted by the Fund's rules Signup and view all the answers

What actions should be taken for unclaimed deposits exceeding a prescribed period?

Credit as receipts of the railway Signup and view all the answers

What is a critical evaluation performed by the Accounts Office during the internal checks of Debt and Remittance Transactions?

Verifying compliance with expenditure rules Signup and view all the answers

Which of the following is incorrect regarding the holding of moneys as deposits?

Can be credited as revenue receipts Signup and view all the answers

What is the initial action taken by the Fuel Accounts Branch for coal/coke wagons received in sheds and shops?

Debits are raised against Purchases. Signup and view all the answers

How are the payments for coal/coke wagons linked to the wagons received by the sheds, workshops, and transhipment points?

Using a centralized computer linking procedure. Signup and view all the answers

What happens to the value of missing coal wagons that have remained unlinked after three years?

They are transferred to Abstract-K with approval. Signup and view all the answers

When a wagon paid for is found to have been received on another railway, what action is taken?

Debits are raised against the other railway by the Fuel Accounts Branch. Signup and view all the answers

What is referred to when coal wagons cannot be linked as received at any of the sheds or workshops?

Missing wagons. Signup and view all the answers

In what situation can claims be preferred against the Chief Claims Officer?

For wagons that are unlinked as received claims. Signup and view all the answers

How is the debits cleared for wagons that are confirmed as received on the same railway?

By debiting Purchases and linking electronically. Signup and view all the answers

What role do the Wagon Disposal Statements play in the payment process?

They track the payments made for each wagon. Signup and view all the answers

What occurs if the wagons remain unlinked after the prescribed period?

They are processed for manual tracing. Signup and view all the answers

Which authority is responsible for finding tracing particulars of wagons?

Chief Claims Officer. Signup and view all the answers

What should be done if a General Manager disagrees with the Financial Adviser and Chief Accounts Officer regarding the sanction of an expenditure?

The matter should be addressed as per specified guidelines. Signup and view all the answers

Why is it important to periodically review sanctions with a long period of currency?

To assess any changing needs for administrative authority. Signup and view all the answers

What is the primary responsibility of the Accounts Officer concerning the accepted delegations of financial authority?

To ensure they are properly scrutinized and accepted formally. Signup and view all the answers

What should happen regarding sanctions effective from a specified date different from the order date?

They should be executed from their specified date. Signup and view all the answers

What is necessary for the Accounts Officer when reviewing the scrutiny of receipts?

They are to confirm the amounts due to the railway are correct. Signup and view all the answers

How should the internal check of expenditure be conducted once a sanction has been accepted?

It only requires checking compliance with the provisions of the sanction. Signup and view all the answers

Who is responsible for any re-delegation of financial powers?

The General Manager prior to consulting the Financial Adviser. Signup and view all the answers

What is done with the value of coal wagons that are classified as missing and have remained under Purchases for over three years?

They are transferred to Abstract-K with approval. Signup and view all the answers

How does a Railway clear the debits for coal wagons received and paid for on the same Railway?

By referencing the Suspense Register maintained in the Fuel Accounts Branch. Signup and view all the answers

What action is taken when coal wagons remain unlinked on the computer after the designated period?

They are manually traced and adjusted. Signup and view all the answers

What should happen to claims for wagons that have been paid for but are still not linked as received?

They are preferred against the Chief Claims Officer of the respective Railroad. Signup and view all the answers

What occurs when a wagon paid for is confirmed to have been received on another railway?

Debit actions are raised against the railway where the wagon was received. Signup and view all the answers

What is the primary purpose of estimating the quantity of stores to be ordered?

To ensure compliance with past consumption data. Signup and view all the answers

Why is competitive tendering important in the purchasing process of stores?

It promotes cost-effective procurement by selecting the lowest tenderer. Signup and view all the answers

What condition must be met in the case of advance payment for materials?

The appropriate contract documents must accompany the bill. Signup and view all the answers

What is the significance of certificates of quality and quantity before payment is made?

They ensure that only satisfactory materials are accepted for payment. Signup and view all the answers

What should Accounts pay attention to regarding uneconomical purchases of stores?

They should highlight losses attributed to defective stores. Signup and view all the answers

What is a critical action for maintaining records of store receipts and issues?

Accountal of receipts and issues should be accurately maintained. Signup and view all the answers

How should the scale for issuing stores be managed?

It must be reviewed periodically, preferably annually. Signup and view all the answers

What is the consequence of exceeding the prescribed balance limit of stores?

It may lead to unnecessary capital locking. Signup and view all the answers

What action should be taken regarding the movement of stores?

It must be regularly reviewed to regulate further purchases. Signup and view all the answers

What should be ensured regarding the language used in claims and bills?

They must be in English or Hindi or have a translation provided in these languages. Signup and view all the answers

What is the requirement for totals in claims and bills?

They need to be indicated in both words and figures, with no erasures. Signup and view all the answers

Under what condition must a certificate from a departmental officer be obtained?

When the claim needs confirmation of service rendered. Signup and view all the answers

What should happen if proof of the correctness of a claim is not submitted?

A certificate must be provided stating the claim's correctness based on checks. Signup and view all the answers

What is required regarding the certification of bills for tools or equipment?

A departmental officer's certification is necessary that entries were made in the stock account. Signup and view all the answers

Which of the following is not a step when a paid voucher is received?

Sending all paid vouchers to the Accounts Officer for approval. Signup and view all the answers

What action should be taken if a review reveals outstanding bills with a cashier?

Call for these bills to ensure compliance with prescribed time limits. Signup and view all the answers

What ensures that alterations in totals are properly documented in claims?

Each alteration must be attested as many times as it is made. Signup and view all the answers

What should be checked regarding Fund and Income-tax deductions?

They must be correctly made where applicable. Signup and view all the answers

Which verification is NOT required for thumb impressions according to the Finger Print Check System?

Cross-checking thumb impressions on wage sheets Signup and view all the answers

What must be ensured if payments are made to a representative of the payee according to the guidelines?

Proper authority must be established for the payment Signup and view all the answers

Which of the following statements about the acknowledgment of payments is true?

Acknowledgments must be unqualified to prevent second claims Signup and view all the answers

What is essential for all paid vouchers that are stamped?

They should have a visible receipt stamp punched or defaced Signup and view all the answers

Which of the following is a requirement when verifying thumb impressions on paid vouchers?

Impressions must match exactly Signup and view all the answers

Which of the following is NOT a stipulated requirement for the payment process?

All receipts need to be graded by the quality control team Signup and view all the answers

What kind of impression verification is required after payments on gratuity bills?

Verification against Service Records before and after payment Signup and view all the answers

Which aspect must be certified if wages are not acknowledged by the payees?

The Departmental Officer must certify the payment was made Signup and view all the answers

What is the primary purpose of canceling each voucher efficiently and prominently?

To prevent any chances of duplicate claims against the railway Signup and view all the answers

Study Notes

Internal Check

Internal check is the examination of financial transactions by the Accounts Officer on behalf of the Railway Administration.
It differs from audit, which is conducted by the Chief Auditor.
Internal checks are guided by rules and orders issued by the President, Railway Board, General Managers, and other authorized authorities.
Instructions from Indian Railway Codes and Railway Board are also considered.
Recognized standards of financial propriety (paragraph 116 of Financial Code) are essential.
All transactions (receipts/expenditure) should be checked 100% unless exceptions are permitted.
Test Check: Financial Adviser and Chief Accounts Officer prescribe minimum test checks for section work by subordinate supervisory staff and Accounts Officers. Checks should focus on procedures, methods, and potential improvements before being accepted.
Internal Check of Sanctions and Orders: Reviews sanctions and orders regarding authority, sufficiency, and consistency with guidelines.
Time-limited Sanctions: The effectiveness of sanctions with long periods of currency should be reviewed regularly to accommodate any changes.

Results of Internal Check

Irregular Payments and Objections: Irregular payments are identified, objections are raised, and erroneous payments are corrected. Different sections of objection management and follow-up are handled.
Correct Bill Preparation and Objection Waiving: Ensuring correctness in preparing bills, handling objections, and waiving them where appropriate. This includes different treatment for erroneous payments, objection lists and books of objections.
Serious Irregularities Register: This register tracks significant irregularities.
Regularization of Objections: This section handles processes for regularizing issues.
Reports to Railway Board: Reports are made to Railway Board on issues and rectification of mistakes.
Exhibition of Losses: The Government Accounts exhibit losses.
Check of Paid Vouchers: Paid vouchers and bills are processed and checked regarding date of return.

Scope and Method of Internal Check

Check of Sanctions and Orders: Scrutiny of sanctions and orders issued by different entities ensuring authority, clarity, and compliance with appropriate guidelines.
Date of Effect: Sanctions' effective dates are confirmed to be correct.
Delegation of Financial Authority: Scrutiny of delegations to ensure proper authority.
Receipts and Expenditure: Scrutiny focuses on receipts and expenditures ensuring accuracy, completeness, and consistency.
Internal Check of Receipts: Scrutiny ensures amounts due to the railway are correctly and promptly assessed and collected. Receipts are classified and transactions are accurately accounted for.
Bills, Paid Vouchers and Finger Print Check: Detailed checks for bills, paid vouchers, and usage of finger print systems are in place.
Remittance Transactions, Deposits and Provident Funds: Processes related to Provident Funds, pensions, and remittance transactions are addressed.
Workshop Accounts, Stores, Catering and Grants: Processes related to transactions affecting Workshop Accounts, stores, catering accounts, and grants are scrutinized.
Departmental Manuals and Records: Checks on Departmental manuals, documentation process, and unsubmitted records.

Test Check

Prescribed by Financial Adviser and Chief Accounts Officer
Examines procedures, methods, adequacy, and potential improvements
Should cover items not passed through the checking officer
Results should be documented and periodically reviewed

Internal Check of Sanctions and Orders

Rules and orders need to be reviewed for authority, sufficiency, and accordance to other policies.
Sanctions and orders must be reviewed to verify competence, definiteness, and non-contravention of other guidelines and instructions.
Financial scrutiny of proposals submitted to the General Manager for expenses needs confirmation and approval from the Finance Branch before sanction.

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Description

This quiz tests your understanding of the internal check process in Railway financial transactions. It covers the roles of accounts officers, guidelines, and standards set by various railway authorities. Explore the significance of test checks and the identification of irregular payments.