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{{R rS qwr 25190 aa sqTfrq)
1992 Edition - .----.*,
[Incorporating amendments upto C.S. No. 25190]

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Issued by the authority of the
CONTROLLER GENERAL OF DEFENCE ACCOUNTS
 4
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*=FEI{CE ACCOIJNTS DEPARTMENT

rffit MET qPsil

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:: - #HFENCE, ATJDIT CODE
VOt. I

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PREFACE

* This Code embraces the broad and general principles

on which audit by
i the Defence Accounts Department is cond'ucted oner
d oirence services receipts
,it and expenditure and the special points to be observed
E in the
t items of such receipts and expenditure. ^"dit;i;articular
2' All officers and rnembers of the establishment should make themselves
fully conversant with the contents of this. Code.-- Ignorance
of its provisions will
not be accepted as an excuse for any departure frJm these
provisions or failure
to comply with them.

3' This code is a departmental publication. The instructions

therein are supplementary to the rules in the Civil contained
Codes,
Financial -Regulations, pav and Allowance-"";;ril;;;;.*";u
i.*i;rt*,:^tffi service
Regulations etc- dealing with work in the offiJe and'in'coii.rporrd.n..
1.
with other offices Yh.l the Depaitment, the relevant-paras of this Code should
-in
invariablv be cited._ No change, which involves il;;ir"i'I*'"*re from
I these instructions, should be eflected without "
the previous approvui oitrr. con-
I'
troller General of Defence Accounts.
i.
li-
i
t
t 4' The Controller of Defence Accounts, Southern Command, pune
responsible for keeping this book corrected uptodate. will be
i For this;;;;;;, he will
J

f propose Corrections whenever necessary and

I send the draft amendrnents to the
I
I controller General of Defence Accounis in duplicate for
approval, quoting the
orders on which the corrections proposed .aie based.

5. This supersedes the rg72 Edition of Defence Aucrit code.

NEW DELHI
Dated : 29-4-1992
SANJIB MUKHERJI
Controller General of Defence Accounts

(ii)
.r:.5,qir.6Asy handling, this'Defence Audit Code has been printed in two g6-{rtrnes

i':a.-
:,r:::: VAlfme I

,.ti:]:. t.VOlUme il

(lls
-T.,.
itri\

CONTENTS

VOLUME I

Para Pege

Chapter 1-Introductory 7'

1
Chapter 2-General principles and rules of audit l5 3
Chapter 3-Audit against provision of funds 83 18
Chapter 4-Audit of receipts and reeoveries 99 20
l*
Cfuapter 5-Pay accounts of Army Officers l4t 21
Chapter 6-Pay accounls of J.unior Commissioned Officers" other ranks and non-combatants
(enrolled) 168 3CI
- :!::::i:
Chapter 7-Pay and aliowances of Civilian Government Servants
* Chapter 8-Travelling allowance and other Conveyance Charges
181
23L
34
39
Chapter 9-Unit allowances, contingent and miscellaneous expenditure 265 45
Chapter l0-Contracts. expenditure on supplies and hired land Transport 292 50 n

VOLUME II .,{
:l
:
Chapter Enginecr Scr" i'ces cxpenditure
ll-Military 326
Chapter l2-Miscellaneous accounts 'and payments- n

-Fund Accounts 342

-Field Cashiers Accounts 341
-Imprest }ioiders Accounls 359
-Accounls of Remount Depots 364
-R.ecruiting Officers dccounts 369
-Military Trcasure Chest Accounts 317
Chapter 13- Pe nsions 3E3
Chapter 14-Imported stores 399
Chapter l5-Air Force Accounts-
Section I -Public Fund Accounts 4r6
Section II --Audit of I.R.L.As of Air Force Personnel 432
Section III -Pay accounting of AF Personncl Serving Abroad and on courses of
-i
Instructions, Temporary Duty and Study Leave 444
section IV
-Audit of elaims preferred by M/s HAL on account of work done for .i
:i
Air Force 447
Section V -Mig Complex Work relating lo 457-A
section vI -Audit of claims preferred by M/s HAL on account of work done
for Indian Navy 458
Chapter l6-Navy Accounts-
Section I
-Cash Accounts Navy 46A
Section II
-Pay Accounts Navy 412
Section III -Check of IJ.K. Stores
Invoices with Packing Accounts and Maintenances of Invoices
Register 493
Chapter 17-Results of audit and financial irregularities sq6
-i8-Appropriation
?-
Chapter Accounts of the Defence Services s32
Chapter l9-B-eport of the Comptroller and Auditor General
(Defence Services)
583

T {ppendices
Appendix l-Insl.ructions for the maintenance of records of service of Regular Officers of the
Ind.ian Army (inchiding Nursing Officers) by the C.D.A. (officers) and Civil
- Accounts Officers paying military officers in civil employ
Appendix 2-Leave Procedure
Appendix 3-Powers of the Controller. General of Defence Accbunts
Appendix 4-Annual Revicw of Military Engineer Seivices Expenditure
Appendix S-Powers of Controllcr of Defence Accourits

(iv)

F\*',-
 +tETIq' I {<r s-dfm--eq
PARA 5 LTNE_NINE
TsrFr r Qqi 5{fffi*qm
CHAPTER I PARA 5 LINE-TEN htiq.r fqd{q, {sTI tqq * eqrE qt
: gT< "gq' '* c€* qr€ "Rq{s" emf{-< mt t : DIRECTOR OF AUDIT DEFENCE SERVICES
INSERT THE WO&D "DI.RECTOR'" AFTER wfts.Tr xr€rftkrs ie,l qsrq cfqq
THE WORDS "ASSISTED BY'" DIRECTOR GENERAL OF AUDIT DEFENCE
SERVICES.

C}IAPTER 1

INTRODUCTORY

Para
In trorlucto ry I
Statutory Audit by the Director of Audit, Defence Services . 5
A.Jdrc.ssing of correspondence on queslions ol interpretation of Rulcs. Ptoceclule. higher audit alcl
G, Frnaucial Advice I
Introductory viccsi.s carried oul or.l be hall ol tJre Contptroller ancl

1. This cotle embraces (i) the broacl ancl general Auditol General hy an organisation dircctly under
principles on which audit by the Defence Accounts his adminislrative control head €t rhis
Departurent is conducted over Defence Services organisatiorr is the Dilec dit Defence Ser-
(ii) thc special points to
i-eceipts and orpencliture and vicelJwho is assisted
bc ohservecl in the audit of particulal itern ol such tors.- The statutory audit of Delence Services
reccipts arrd expendifure. expenditure is only a test audit. which is conducted
by these of{icers to such extent and in such uranner
2. No attcurpt lras been uracle to inclucte in this as may be directecl by the Cornptroller. ancl
Cotlc tlrc detailed procedure which is to be followed Auditor General.
by the scveral audit sections of a Controllerk oftlce in <..

lhe conduct of its business. This will be for,rncl in *Cd1tt. Director of Audit. Delence Services, auclils
thc rclevant Oflice Manuals. This Code tloe^s not all sanctions of the Government of India in the
also incluele instruction^s rvith regalcl to the local Ministry of f)efence and the Ministry of Defence
autlit aucl inspcction ol Store and Public Funil (Finance). He scrutinises all Codes and Regulations
Accounts, etg,.by the Local Audit Officers of the issued for the use and guidance of the Defence
Dcferrce Aicounts l)epar,trnent. These instnlctions Accounts l)epartrnent and preparcs annually it
arc contained in the 'Arnry I ocal Auclit Manual Parts Report oll the _Appropdatiorr Accounts of the
t ancl II. N.L.A.O's Mzrnual ancl ,Air Force Local Defence ServicesJ Audit in the Contr-ollers Olficcs is
Audit Manual'. conducted concurrcntly ancl it is seen that the
accounts of the f)efence Serwices. as included irr thc
3. In trpplyitr.g the mles in this Code. it is to be Cornbined Finance and Revenue-Accounts are a cor-
borrre in mincl that except in its relation to the recl prcsentation oI lacts ancl rcpl.esenl r.nolley lhal
statutory audit concluctecl by the Director of Audit. has really been spent in the nranner in which it is
f)efence Serwices. and his staff, the word 'auclit' as shown to have been spent
used herein refers solely to the firrrcfions of.internal
auclit exerciscd by the Defencc Accounls Department 7. Audit of Cantonnr.ent Funds Accounts coucluc-
on behalf of Secretary (Defence,/Finance) and Finan- teelby the Defence Account.s Department is not suh-
cial Aclviser Ministry of Defence (Finance) who ject to Test Arrdit by the Director of Auclit (Defence
functions iri. tte dual capacity of principal represen- Services). Can'tonment Boards pay auclit fees to thr-.=='.-^- ,
tative of the Ministry of Finance in the field of Defence Accounts Department.
Defence cxpe-nditure anrl as the Chief Accounting
Officcl lor Defence Serwices. 8. Blank
1 4. Blank Addrcssing of correspoRdence on questions of
intcrpretation of rulcs. procedurc, higher audit antl
Statutory Audit hy thc Director oli Audit, Dcfencc financial advice
Scrviccs
9. Controllers should not address Services Head- !

5. As- unlike the Civil Accounts ancl Auclit C)ffices quarters or the Ministry of Defence (Finance) direct
the offices of the Defence Accounts Department are on questidns of interpletation of rules. proceclure. l

not aclministratively. subordinate to the Complr-oller higher audit and financial advice. Such questions ;
I

and Audit'or Genoral of India,,statutory audit,of the should always be referrerl hy thcm to thc Controllcr l

accounts ancl financial transactions of Defence Ser- Gcncral of Defence Accounts. I'
lr

,t

:-:f,.:._,_;i
|

N
 CHAPTER 2

GENERAL PRINCIPLES AND RULES OF ATJDIT

Para
Introductory
l5
Audit responsibility of Controllers 2t
Audit and scrutiny of sanctions and orders 23
Audit of sanctions to expenditur-e JJ
Audit against propriety -
.18
Extent of audit of expenditure
42
Audit of expenditure 43
Main objects of audir of expenditure 4',l
Provisional payments
53
Audit of bills and vouchers 62
Specirnen signatures
66
Amendment and interpretation of Rules
68
Financial advice 72
Introductory 18. In the course of scrutiny of accounts and tran-
15. The primary function of audit is to verify the sactions of the Defence Services, audit is entitled to
accuracy and completeness of accounts to secure that make relevant queries and observations and to call
all receipts are brought to account under the proper for such vouchers, statements. returns and explana-
head, that all expenditure and disbursements are tion in relation to them as it rnay consider necessary
authorised, vouched and correctly classilied and that in the interest of proper discharge of its duties. All
the final' account represents a complete and true queries and observations should be couched in
statement of the financial transactions it purports language whichis courteous and impersonal.
to exhibit. 19. In auditing Defence Serr"ices Accounts, audit
16. Serrrices and the Defe.nce Accounts Depart- should not make independent enquiries frorn the per-
ment in the discharge of Audit Duties the clear dis- sonnel of the Defence Services, etc. as such action
tinction between Auditorial and Administrative would amount to an encioachrnent on the functions
Functions shorild always be borne in mind. It is of the administrative authorities. Audit should con-
function of the Government tq make Financial Rules frne itself to calling upon the administrative
and Ordeis for the Defence Services, and of the authorities to furnish any information that may be
Offieers of the Defence Services and the Defence required and, in cases of difficulty, it should confer
Accourits Department responsible for making with these authorities to the best means of obtaining
payments, to apply these rules and orders. It is the the evidence which it requires.
function of audit to verify that these rules and orders
20. Blank
are properly applied. It is not the function of audit
to prescribe what such rules and orders shall be or to Audit Responsibility of Controllers
interfere with their administrative application. 21. A Controller of Defence Accounts is respon-
1?. Audit by the Defence Accounts Department is sible through the Controller General of Defince
conducted with reference to the rules laid down in Accounts to the Secretary (Defence/Finance) and
this Code. Financial and other Regulations for the Financial Adviser. Minister of Defence (Finarice)
Defence Services and oJher orders issued by Govern-
for the audit of the portion of the receipts and
expenditure of Defence Services that is entrusted to
ment anid other compeient financial authorities from him. Without the sanction of the Controller
time to time. General of Defence Accounts he will not take up the
The: standards of financial propriety enunciated. in audit of any accounts which do not fall within the
para 39 of this code are the basic rules on which all sphere of his duties of audit except the audit of
Regimental Funds of units and formations as pro-
audit is conducted as regards propriety of expen-
y.a-"-a_il para 834 of regulations for the Army
diture. 1962 Edition.

l-.
 Cnar,. 2l GENERAI PRINCIPLES AND RTILES OF AIIDIT [22-26
22. Blank expenditure or for an appointrnent or- regularisation
Audit and Scrutiny of Sanctions and Orders of loss. with a definite monetary implication or
limit.
23. Sanctions anri orders which are applicable to
De lence Serviccs issued by the Goverument of Inclia 24. The audit oi Governmerrt of India sanctions is
and,- variou.s Defence Organisations with the con- conducted fficli-u Ddt8ffirSer-
currence of the Ministry of Defence (Finance) are vice,s. A re gul ar aildir*m6utn*T6fi;tio fiT*Tffiffi t.
communicated by thern direct to the Controllers of .tfitri€fore. be carried out by the Controllers.
Defcnce Accounts. Such .sanctions .should indicate All Codes. regulations and standing orcler-s issued
that the orcler/meurorandum/letter issues with the by the Governrnent of India are scrutinisecl by the
corlcurtence ol Ministry of Defence (Finance) vide Director of Audit. I)elence Serrrices and the Con-
their LJ.O. no......-..-...Dared.................Similar sanctions troller General ol Deferrce Accouuts ancl need no
aird brtlers issued by authorities lower than the further scrutiny by Controllers of Defence
Gover-nr.ne nt ol irrdia are comntunicatecl <iirect to the
Accounts.
(lontrollers. by tire such authorities except
25. of all sanctions ancl orclers aflecting
Staff.
issue<l by authorities lower than the
,""\t[TI[ z iaas*f,fa f{ EqoiT
I,INE-FIVE llndia the Comptroller and Auditor
cii+pr-nn f NorE UNDER PARA 23
b Controller General of Defence
: "<!irT *er fctia's.i" t TqIa q{ iives on controllers of Defence
FOR : '.C'S'D'A'" 1'ned and such audit rnust be carried
: ''(s[ +er q€ifiriild" cGq it is condr.rcted on the tran.sactions
READ : "C.G.D'A." ch sanctions and olders.
0ne . )t that the sanctions accorclecj hy the
authorities at Armed Forces
-^-t^-.. .,ie financial powers vested in them
theautholities who' have been delegated under the rules in Financial Regulations and other
powcrs to srgn on liis behalf. rules and regulations or orders may have been con-
Note : Sirnction accorclecl hy the Ministry of-J curred in by the financial authorities at ,those Head-
Dclencc in thcil ctpacity as local Governnrerrt undeL I quaiters does not relieve the Controllers of their
thc C.S.R. (vide serial Nc. 30 of appenrlix I to C.S.R.) | responsibility for the audit of these sanctions, as
or urrclcr thc powers delegated fo thenr by Govt. wiJl/ financial concurrence does not conncte an au<lit of
be courrnunicatc<l rlilcct to the€#hy the MinisJ the sanctions. Accordingly. all sanctions accorded
ol Dcfcncc. by he Defe n ce. H,q rs s h g u ld*-6E affijiil[tiy -f-o n -
-
try Such sancri,f,6J*'ili be viewed a( r
-
sanctions i.ssueil by authpr-ities lorver ihan the Govt. 'tfollers with i'efereirce to the orders governing the
ot on- Miicaion. even though the sanctions inJicate that the
trollcls. Scc bffi.-?5'Re'6w:.-*e-i -- ''4@ same wete concurred in hy the Ministry of Defence
-r'".F\' (Finance) these sanctions not having been accorderj
Copies o[ Governrnent sarnctions which are inten-
dcd lor courmunication to the Controllers of Deicnce by tire government of India are not auditable by the
Accounts. who have to act upoll the sanction will be Director of Audit. Defence Services.
*I
signeil in ink by the sanctionirrg authority. Copies 26. A1l expenditure ol Pubiic money. which is not
endorsed to olher Controllers may bear cyclostyled authorised by the Reguiations or other orders
signaturcs. These instructiorrs are applicabie to requires the sanction of the Govt. of India. Accor-
sanctions is.sucd with the concur.rence of financial dingly, all orders which convey sanctions. either
aulhorilics as well as those issued under the power directly or indirectly, to such expenditure should
vested in lhc various competenl [lnancial and issue in tire fonn of a Government ietter or Army/Air
adn'.inistrativc authorities. These clo not apply ro Force,t}.{avy Instrrrction. The Conti.ol.lers of Defence
sanctions of a gencral rlalure including those involv- Accounis should not act on any letter issued by.the
ing rlelegation of powers which may continue to be branches of Armed Forces Headquarters u'hieh
issued uncler cyciostyled signatures. These are to be should have been appropriately issued in the form of
ioilowcd only iir cases df sanetions which are in the a Government letter or ArmylAir ForceA.{avy
cature olconveying sanctions for a particular item of Instruction.
 "_
*:@*+iar::+=;r,,

Cnnr. 2l GENERAI PI{INCTPLES AND RL]1.8S OF AI.IDIT

[22-26
22. Blank expenditure or for an appointrnent or regularisation
Audit and Scrutiny of Sanctions and Orders of loss. with a clefinite monetary implication or
23. Sanctions and orders which are applicable to linrit.
Delence Selviccs is.sued by the Gorrernment of India 24. The audit of Govemmelt of India sanctions is
and various Defence Organisations with the con_ conducted ffi di-,. DdfeTfte* S er-
currence of the Ministry of Defence (Finance) are vices A regular affifrAi-TeilZttoi-JffilTi6t.
courntunicatecl by them direct to the Controllers of "tt6r€?ore, be carried out by the Contr.ollers.
Delence Accounts. Such sanctions shoulcl indicate
thert the orrler/ntemoran<lum/letter issues with the All Codes. regulations and standing orclers issued
collcul'rence oI Ministry of Defence (Finance) vide by the Government of India are scrutinised by the
lheir ILO. no......--.-...DatccI...,.............SimiIat sanction.s Director of Audit. Delence Serwices and the Con_
antl 'oltlers issuecl by authorities lower than the troller General ol De{ence Accouuts ancl neecl no
Govenrurcut ol india al.e cornntunicale<l riir.ecl to the further scrutiny by Controllers of Defence
Accounts-
Controllers. by the such authorities except
(i) those issued by the Chief of Army Staff. 25. The auclit of all sanctions ancl or.clers aflecting
whose sanction.s and orcler are com- f)efence Services issue<l by authorities lower than the
urunicated by the respective branches of Government of India the Comptroller ancl Auclitor
Army I{qrs. General or the Controller General of I)efence
Account.s devolves on controllers of Defence
lhosc i.ssucd by the Chief of Naval Staff. Accounts. concerned and such audit must be carriecl
rvhose sanctions aud or<ler.s a re corr't- out before audit i.s con<luctecl on the transactions
murricated by tlie a!rthorities empowerecl to ari.sing from such sanctions and orders.
sigir on his behalf.
Note : l-ire fact that the sanctions accorcier] hy f he
lho,sc i.ssued by the Chief of Air Stafl whose aclministralive authodties at Armed Fories
sanctioits ancl olders are colllltllnicatecl by
thc autholilies who have bcen delegatecl Hqrs. LJnder the financial powers vested in them
under the rules in Financial Regulations and other
porvers to sign on his behalf.
mles iind regulations or orders may have been con_
Note : Sarrction accordecl by the Ministrv of-J curred in by the financial authoritie.s at ihose Head_
Dclencc in thcir.capacity as local Governnreur ,r,ra". I quaiters does not relieve the Controllers of their
thc C.S.R. (vide serial Nc. 30 of appendix I to C.S.R.) responsibility for the audit of these sanctions, as
/
ol rrrrdcl thc power.s delegatecl to lhenr by Govt. will/ financial concurrence does not connote an audit of
.' tl're sanctions" Accoidingly. all sanctions accorded
I Ti';]]: l:l': i J.fffr?#'fJ * :#:ruJ
: :::'
sanctions issued by authorjties lorver than the Govt.
b v,,t lr.e De
-rrollers wlth
n
P :e= _!
q I
=-hE
rL s.h o u ct -.CiJ
a ftr-iiilr-{y

relel.ence to the orders governirrg the

or-riirrTi*Tfiif'trirffii6jffi o n_ Saiifn-on. even though the sanctions injicate that the
lll-t:.*-S-r.gijara"B'tl'66fr =*-**a***-** sane were concumed in by the Ministry of Defence
Copies of Governnrent sanctions which are inten_ (Finance) these sanctiorls not having been accorcled
tlcd lor comurunication to the Controllers of Defence by the government of India are not auditable by the
l
Accounts. who have to act upo1l the sanction will be Director of Audit. Defence Services.
t I
signccl in ink by tire sanctioning authority. Copies
26. AII expenditure of public money. which is not
enrlor.sed to other Controllers rnay bear cyclostylecl authorised by the Regulations or other order.s
signaturcs. These instructious ar.e applicabie to requires the sanction of the Govt. of In<lia. Accor-
sanctions issucd rvith the concurrence of financial
dingly, all orders which convey sanctions. either
authoritics as wcll as those issued under lhe power
directly or indirectly, to such expenditure should
vested in thc various competent linancial and issue in the form of a Governrnent letter or Army/Air
atln.inistralive authorities., Tiese clo not apply fo Fotce/Nav-v Instnrctiorr. The Contiollers of Defence
sanctions of a geucral nature including those involv-
Accounis should not act on any letter issued by.the
ing rlelegation of powers which may continue to be branches of Armed Forces Headquarters u,hieh
is"suecl uncler cyciostyled signature.s. These are
to be should have been appropriately issued in the form of
ioilowcd only iit cases df sanctions which are in the a Government letter or Army/Air Force/Navy
nalut'c olconveying sanctions for a particular item of
Instruction.
 re:.tr

CI{AP. 2i GENERAI- PRINLTPLES ANI' RTII-ES O.F AUDIT

i27*3s
27. The sanctions and srders cffecting financial (iii) if it is vested 'sdth powexs which are
transactions may be broadly divided into three expressed in precise telaas, ttre Audit offrcer
cases:- is borrnd to ascerrain that the order clefining
its powers is obeyed exactly in every instance,
(1) Rules and general orders; anci
(2) Grants and appropriations; and (iv) in all eases, if the Controller has reason tcj
(3) Sanctions to expenditure. . think tl':.at undue advarrtage is takea of the
prcvisions of any crders whereunder the rulc
28" All such rules and orders should be scrutinised is issued he sho'tlld bring the case to the
tn see:- notice of the proper superior authorit'.
Cases of disregard of standards of iinancial
(li that ihey are consistent rvith the essentia! proprieff should be deait with under
requirernentsof audii and accouftts; paragraph 4S.

(2) that they do not conflicr with the orders of, or

3tr. Blank
rules made b.v any higher auth$rity &
(3) that, in they have not been separately
c,ase
32. Blank
approved by competent higher authoriry; the
issuing authority possesses the necessary rule Audit of Sanctions to Expenditare
mnking power. 33. O::e of the irrportant functions cf eudit in
relation to the audit of expenditure is to see rhat each
?9" In applying the first of these checks the Con- item of expenditure is coverei by the sancticn of the
trollers should be guided by any su'nsidiary insrruc- authority competenr tc sanetiori it. Here, audit has
tio*s whictr rnay be issued.by the Cornptroller ar:d not anly to see that the expenditure is c*-,rered by a
Auciiter General or the Controller General of sanction. either general or speciai, but it has als to
Defence Accounts from time to tinne. sati.sfy itself {i) that rhe authoriry sancri$ning ir is
competent to do s* by virtue of the powers in
veste<3
3S. In applying the second of these checks the it 'ov the provisions of apprcpriate orders or
guiding prineiples enunciated trclow should be Regulations and {ii} ther tfoe sanction i.s definite and
obsenrd: thus needs no rcfererrce either is the sanctioning
authcity iiself or to any higher ar;thorify.
{i) il ihe sanctioning authority is veste,J pith frr$
rpowers in respect of the particular class
of . When a sanetioa to expenditure leeeired by the
expencliture, sanetion acccrded undei these Audit Of{icer has been exainined and adnnitted as
powers can be challenged by audit oniy replar and c*rr*cf, the au.Cit of exErenditure against
under the standards cf financial praprie!.u the audited sanction bec*mes a simple mattfr as
(see para i9.1. audit tras rrerel;* ta s€e that the expenditure conforms
to the prortsions of the sanetion.
(ii) if it is vasted with porvers u&ich may be exer-
cised prnvided d'ce regard.,is pirid to certain 3.{. ft is irnperai:ve t:tai utrr,osl car* an,l attention
1..
criteria' which are exFf,essed in a general shor:ld i:e_ devoteel to the -work connected n"ith the
form, sancti.ons accorded un<ier these powers audit of s*nctioris te exglendit"rte fis oncs a sanction
can he ehallenged by audit:- has been accepted in audit dxpeaditure may have to
be passed against it fo,r a iength of time.
{a) if the disregard of the criteria is con-
si<lered to be ss serious as to r:nake the 35. In thc audit *f saaciciirs to expenditure, the
sanction perl?rse, 0I guiding principles enunciated below should be obser-
ved in additional to the requirement mentioner! in
&) if tne facts of the case are such as to para JJ:
.rrake rhe audit authority confident that
Gne or Elote of the criteria have :s enErnerated in paragraph 30
been disregarded; (i), (iil & (iii) & paragraph 40 are obsened.

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Crnn. 2l GENF,RAI- pRINcIpLES AND RULEs or ltibrr [3s-3e

(ii) For the puryose of financial sanction, a 39. No precise rules.can be laid down for regulat_
group of works which forms irart of one and ing the course of audit against propriety. Its object
the same project shall be considered as one is to suppod a reasonabty high standard of public
woi'k and the necessity for obtaining the financial moralify; of sound financial administration
sanction of a higher authority to a project is .and devotion to tlre financial interests of
not avoided by reasons of the fact that the Government. In fact he asks every question that
cost of each particular work in the project is might be expected from an intelligent t'axpayer bent
within the powers of the lower authorify. In on getting the best value for his money., Audit
.short. a measur-e as a whole requir.ing the ofticers in the performance of their duties should, in
sanction of the higher authority siroulcl not be any case. apfly the following general principles
.sanctioned in instalments by a lower which have for long been recognised as standards (or
authority. This criterion would also urutatis canons) of financial propriety:
mutandis be applicable to expenditure
sarrctionecl orr the employment of personnel, (1) Every public officer should exercise the same
purchase of stores. etc. vigilance in respect of expenditure incurred
fiom public moneys as a person of ordinary
Notc : A prelirninary enquiry. survey or experiment pr,rdence would exercise in respect of expen-
which rhust necessarily precede the prepara- diture of his own money.
tion of any project or scheme. need not be
considered, for the purpose of this rule, as (2) The expenditure should not be prima facie
lomring palt of that project or scheme, more' than the occasion demands.
as a whole.
(3) No authority should exercise its powers of
(iii) If any one item of a scheme requires the
n
sanctioning expendiarre to pass an order
I sanction of a higher authority that item which will be. directly or indirectly to its
I should not be given effect to before sanction
own advantage.
to it is obtained.
I (a) The amount of allowances. such as travelling
36. Except unr{er the orders of the Corrtroller. no
allowances granted to nleet expenditure of a
order of sanction shall be acceptecl in audit unless it
particular type, should be so regulated that
has been received from or through the sanctioning
an allowance is not on the whole a source of
aui.hor:ity (see para 23 Et. Seq). When an orcler
plofit to the recipients.
sanctioning expenditure contains no indication of
the amourrt or limit of sanction. the Controller
(5) Public money should not be utilised for the
should address the authority sanctioning it.
benefit of a particular person or section of
I

37. Blank the cornmuniiy unless:

Audit against Propriety (i) the amounr of expenditrrre involved is

insignifica ut. or
38" It is an essential function of audit to bring to. (ii) a claim for the amount could be enfor-
light not only cases of clear irregularity but also every
matter which, in its judgenent, appears to involve
ce<l in a cou.rt ol law. or
improper expenditure or waste of public money or (iii) the expenrliture is in pursuance of a
stores, even though the accounts themselves rnay be recognised policy or custom.
in order and no obvious irregularity has occurred. It
is thus not sufficient to see that sundry rules or orders The proper ciischarge of duties by an Audit Officer
of competent authority have been observed. in this field is a very delicate matter and requires
much discretion and tact. A challenge against
It is of equal irnportance to see that the broad prin- expenditure should not be expressed as based on
ciples of orthodox finance are borrre in mind not 'canons of linancial propriety' but as transgressing a
only by disbrrrsing officers but also by universally accepted standard of official conduct or
sanctioniirg authorities. financial a dministratiorr.

@, : -..=:: -.:: .".--is:-:::::--

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CHAP. 2l GENERqL PITINCTPL,RS D .RLq.Es OF.ALjDT'T IAt-44

40. Whcn lhe Colltr{iilei considerr that any mle or The sgsretn of n;gintaining the pa,y accounts of
order has infringcrl any one of the canons of finan- Civiiians i.s diffcr-erit irom thrt of service person-
ciai propriety, ire slioulJ convc;+ his opiirion trl the nei. In rhe case of the lonner, the gazette.l ;ff"r;t
administrative authorify concerned for ruch acticn as have tlie optioa to ilraw tiiclr salaries. eirher in castr
that authority'may think'{it to take and reqlrest it to or b1'cl'.eque. {)ptio:rs ci ail t6e officers iho,i4 hc
intiniate, itt due coursc. thc acticn taken by ol;tarntd ir: Ntarclr cver.y yenr. Thc option oncc
it. Thereafier, if he considers it neccssary, hc nr,ly
exerciserl i,, MaJ', nut,lr'g""ri n,t'ii*;;;i;; finan-
report to lhe uexr higlier authcrity. Whii; s..ldress-
cial year i:nd no change.luting,ft" oiit*
ing corr"espcndence'to services Headquarters or tltc "our*wishecl ro,.r,
is allowed. In cases ivlreic thc crfficers be
Govcrnmientof Indin.the pror''isicnsof pare g Ft,Seq.
paid in cash. thc heads,:f oi]lces rlraw thelr sairries.
d iraybills nnd rer:eler nronthly to
!r pre-audit and paymcrlr While
oeS:*"'/,i&i opt to drav; lheir salarie.s h]' lhe-
rybills fhe msclves nronthly to thc
!t*si : (fri ffir -
dFcr &cErssz rffi or pre-audit arld payment. The
.AMENDlVIENT
; DETENCE AUDIT coDE Vol- rqbi.Edn.i Fetied establishnrent are prepared
liic.es and renderc*l monthly to tire
lrsltt r ttt z hr prc-audit and paym*nr"
CHAPTER I PARA 2
le side, however. the pay acciluqtt
{Bnrr a fci +: frq icr rs non industrial civiliar-, ernployer:s)
CIIAPTER II PARA 42 AND PARA 43 iv the adm inisirarive authy, on
ot' :icrvics personnrl a nil subjer:lc.i
: Eq Scr s,fi* itErcttsn f{qs gwr Tr{r I a}{ II t :ire D.A.D.
trqtil qt
FOR : ARMY LOCAL AUDIT MANUAL PART I & u or ihe auilit of pav bills of civilian
: ryq *ql €qrffq icrcEls{T f+ar gnrr $TFr-l, feae I,II *T lishment rvill be fourrd in the rclc-
,corle"
IE esr wtII cl6q r
ilhis
READ : ARMY I,Oq_er AUDrT MANUAL PARTS I, rnnel nf Ordnalrce l)e.,Fots- E,M-E.
VOLs. I, II AND IIr ANDPAR.TTT nr1 Farnrs. MES etc. nre pairl hy
Il: a \juuart rlEi {gJrrLJ te t!rc4 stssr. rv-lr s:-r--r ifhqritie$. on chec& rollslindustrla,l
a matter which concerns his own.office or his subcr- perscnrrel biils subject to post-audit' iri;, Lcrciil Arrdit
dirrate offices,'he should invariably refe+ the case"$ to Officers;Region-af Arrdir Officem {MFS).
C.G.D.A. for obtaining prior coni:uu.ence'.
Irr ee:fain excepticnirl cases such as Hospitals-
Audit t{ Fxpenrilture Supply DepoLq, MiscellaneolSr foirrlattorrs hawever.
a|, tfia au'Oit . af an *xpenditure deliuble rc the pay and alicwanccs of industrial pcr.c*nnEt:€r*
Defenee Services estimares is condr:,eted by the Con- also clainiecl anri dishursed in the sailre itranner as
trollers of Defence Accounrs cither centraily io tit*it non-irrdu strial personnel"
own o{fiees or locally through ihe agency of lhe The pay bills of non inriustria! personnei are
Locai Audit Ofiicers. Crawn by the headcf cffice and are prc-audited hy
The detaiied instruction.t with regard ic thc Locai thr C.D.A. On the Air Force sirie. paymenrs to nsn
Audit and inspection of store un,t PuUti" iunei ir:ciustrial civilian eraployees are r:iade- out of public
accounts, etc. by the Locar Audit OlHcers arc ccn- tlnd accnunts. olr acquil{arrce r.olls-cunr.pay hills
tainecl in ihe Army l-ocal Arrriit Manual Parts t & II. an;! are post auditccl hy thc C.D.A. (A.F).
N.L.AO's Manual and Air Force Locai Auriit The industr,ial personnel cf the N:ri,1' are paid in
Manual. t:ie folio\1iii3€:'trlenaer : :. :

44.i The pay af;counts of the seneit-c persorlnel cf (a) pa;i'aeseqnts, ale mainrained by the wages
the llefen€s 'services arc sraintained on LR.L.As section <;f the C.D.A.(Na--t) in parrs I & iiol
which are sub3ected to review.rFost audit as the ca.sc the Rcgrster ol trVages {NSO -}40 ancl NSO
may bc. Thc' prcccdure !,or the maintenance .and .141 ) in rfl$pes!. cf th.cse unricr the a,{miuistra-
revieWpust-uu<iit of t.R.L.As !s rlescriberi irr ihe res- tive ci:rntro! of the Aii-rnirai Supu'rinlindent-
pective chapters cf this ccrje. Navel Doekyard. Boml',ai.
 Crnr. 2l GENEILT PI{INCTPT,ES D RLTI,ES {iI; AUIit'I] [4A-44
40. trVhen the Co:rtroilei considers that. arry rule or Ti-re system of rn;rintairring the pay accounts of
order l.r.as inlringeil any sne of tire canons of iinan* Civiiians is diffelerrt irom tkat of service person-
ciai plopriety, he siiould convcy his opirricln to liie n€1. In the case of'the li:nirer. the gazetteil tifi...n
administrativc authoriiy concernerl for ruch itclion as l:ave illc opticn to rliflw tirc;r salariel. cirher i' cash
that authority rnay t!:ink fit to take anC rcqucsl it to {}r by cheque Opiions oi':rll tfic r,ificcr-s shouirl hc
intirtate, irr due coursc. the acticn taken by r:i:tain-*ii ir': l"{arclr cvery yeai. The option nncc
it. Thereafter, il lie considers it necessary, h" n.oy exir"crsed irr Mai'cli holJs'gno.i L,r'tro *,"ilr.'ti"-,r-
report io the nexi higlier autliority. Whii* adclress- cial year *nel no ciraege rluring the course of the year
ing correspcndettce to serwices Headquaiters or tlle is alloued. In cases w!:eic the nfficers wishecl tc be
Covernti:ettt of Inclia. the p:ovisicns olpare 9 Ft.Seq. paid in cash, thc he*rls r"rf affices riraw tleir siil-rries.
shouid ire kept in n:ind. through consolidated paybil!s clrd rentier montirly to
41. Blank C.D.A. concerned fl,:r pre-audii and payniint. lVhile
thtlse t-;ffii:ers ivhr: oilt to clraw their salarie.s i'ry- lhe-
Extent af Autlit of Expernditurc
42. rhe extenr to wirich rhe vadous classes or bius lfit::T:-tl.,,H
t;ltli:-tm;:"1* -;l:
and accounls urill be au<iiteci is shcrvn in lhe.Anncr- ;:?:i::1
u-ttil- oi non-gazeued esr.ablish'rent u.r, frrpur*.i
ure to this chaptcr. The qunriruu nl e:udir. niny.. ;;'rfu Hcads of Oi-ilccs -";r;,.,;;;,U'*",,,,,,i,
horvsver, be suitably increased under thc pelsoniil Cb* conce.necl fo, pr*_"*.t;
l. rir.
;;J;;;;
orclers of dre eontrr:ller to tlie extent he rnav olctei: at
his rliscretigl rvhere the state cf acec*rrts is urtsetis- Or: the Ajr Fbrce side. hou'evcr. thc irai acc{}unlr
factory anci p'arrants mcre detaileci au<iit. Bilis alC of givilians (exeept non industrial civilia-ii ernployecs)
aceGunts not enurnerated in that annexure wiji be ere rnaintairied b-v the adtrinisiraii.:e authy oft
audited in full. The exteni of audit irr iespect of I.R.L'As lihe those of scr!'ice persot:nrl trrrrl subjer-:icil
store arrd Public funel aceounts is pr.escribe6jn-the-,* to post-rudit by tire D.A.D'
'Arrnv Local A.:clit }v{anual Parm i \e&tr #ffilA*S'he proce.lurc lor the aud!t of pav L,ii)s of civiiian
Manual and Air Force Y ncai Auctit wianual. The"l 'Tfficers ancl estflblishment will be foun6 in rhe rele-
extent of audit in re.qpect of ildES Accounts is prrrJ t*ni""irop,.rs of this cocie.
cribed in the 'M"F"s' Acco*nt' manual' anc thE-
In<iustriar perscnner ol o'qJnaice i)epsts. E.h{.p.
M'E's' 'Loc*! Audit M;rnual"'
trvorkshops, Ivfilitary Farms. Iv{ES etc. i:re paiel by
1If a Controller desires to relax audit teurpc'r'arily in
ailininistr-ative althcrities on check 1r:lls/igdustri.el
a mattcr which concerns his own cffrce or his suD*r* :lersoilnel biils subject ro post-audir l_ry Loc;il Auriit
t"."T offices, he should invariably refer the casrs io
C.G.D.A. for obtairring pior c:otrlcun:enci"'
()fficers/Regional Aydil Offi"*ru {Mf-S).
Irl eerlaitr exccJrtienirl cases such es Hospitals-
Auilit rif Expcnditure Supply Dcpots" Miscellaheorrs formations hcwever.
43. The audit ,:f ali *xpeneliture debirable ia the pay *nd allowanccs of industrial personn*l *rc
Defence $ervices estimates is cor:ducterl by the Con- also clairued anri distursed in the satne mann*r as
trollcrs of Deience Accounts eitirer ceirtrally in their non-irrdustriai persrlnne!.
own o!fiees or locaily through the ageney of tlie The pay biils *i ncn in,lustrial personnel a5g
I-ocai Audit Ofhcers. drawn by ttre head o{ office and are ire-au,Jited by
The detailed instructions with regard ro ths Locai tfue C'D"A' On the Air Fcrrce side, payments t* norl
G
Audit and inspectian of store an,J pr:blic funti inclustrial civilian e*:pioyee s are i:rtlrle. out of pui:lic
accfunts, etc, 'o31 the Locai Audit Oliicar. ur* rn,r- l'{.:nd aLc+untr. oil acquittat:ce rolls-cum-i'ray hills
taine<l in the Army l-ocal Aurtit Manual paris I lt II. anri are post auditcrl hy tire C.D.A. {A.Fi.
N'L.A.O's Manual and Air Force Locai Au<lit The in,lristrial personire! ol ;hc Nirry are paicl iir
Manual. tjie lolloq"ing lnaflner:
44.'The pa)' i:csounts cf tlie ser";lce persannel cf (ai pay acsounts i-r;e maintaiiled by the wages
tfte Defence Services are maintained cn LR.tr,.As section *f the C.D.A. (Nav=a) in parrs I & i{ of
r*'hich are subjected to reviewr,post audit as the case the Register af trVages il.Isfi -140 anil NSO
n:ay bc. The p*.cedure f*r the rnaintenance antl 341) in re$pect r:f tllose irlr,l*.r the aCminjstra-
reviewlp*st-audit of I.R.l-.As !s tlescriheii in ilre res- tive control uf the Aiirnir*l Supcrintendent.
peetiv€ chapi*rs c,f this ccde. i'Javal Doekyard. Bornbal'.

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 CnAp. 2l GENERAL PRINCIPLES AND RT'LES OF ATJDIT
144-47
(b) in respect of industrial personnel of I.N. paid by the C.D.A ro whose establishment they per-
Establishments in Bombay other than (a) tain, after prelirninary scrutiny, and post audited by
above and also INS 'shivaji' pay bills are the C.D.A. to whom the work has been allotted (see
prepared by the ClsC concerned and are pre- Annexure 'A' to Chapter II of Office Manual part II,
audited by the CDA (N). ''vol
I) other bills perAining to Controllers offices are
(c) in respect of industrial personnel of I.N. also similarly post-audited.
Establishments locared outside Bombay pay 45. Blank
bills/muster rolls are prepared by the Heads
46. Blank
of Establishments, which after payment frorn
the cash assignment are subjectecl to post- Main objects of Audit of expcnditure
audit by CDA(N). 47. The main object of audit of expencliture are to
Unit ensure
allowances .and misceilaneous personal :

claims are normally pre.audited by the Controllers. (a) that there is provision of funds for the expen_
In some cases, however administrative authorities diture duly authorised by corupetent
have been eurpowered to pay certain rypes of mis- authority;
cellaneous charges and claims from the imprest sub-
ject to post-audit by the Controllers. Lists of such
(b) that the expenditure is in accordance with a
sanction properly accor<led and is incurred
I
items are given in the 'Pamphlet of Recognised by an officer competent to encur it;
l
claims'.
i (c) that the claims are made in accordance ryith
.l
4: Similarly, cash assignrnents at civil treasuries or rules and in proper form;
the branches of State Bank and/or its subsidiaries are (d) that all prescribed preliminaries to expendi-
t placed at the disposal of certain administrative and
t ture are observed srrch as proper estimates
executive officers (such as Oflicers Commanding
i framed and approved by competent authority
i
Remount Depots; Commandant'EeUINE, Breedin!
for u'orks expenditure, a health certificate
Studs and Area Remount Officers; Deputy Directori
obtained where necessary before disburse-
Military Farms; Recruiting Officers and Assistant rnent of pay to a governmegi servant erc;
Recruiting Officers for Gorkhas; Garrison Engineers,
For meeting expenditure on special purposes (e) that the expenditure sanctioneci for a limited
"1")rules in Financial
vide and other Regr{ations. AII period is not adrnitted in audit beyond that
such payments are subject to post-audit by Con- period without furth.er sanction;
trollers. (0 that payment is made to the proper person
and that it is so acknowledged and recorded
Exeept where payment of specified items of expendi-
that a second claim against Government on
ture is specifically authorised under rules to be made
the same account is impossible:
by officers of the Defence Services subject to post
audit, all payments are made by Controllers of (e) that the charge is correctly classified and that
Defence Accounts after pre-audit on submission of if a charge is debitable to the personal
bills, claims etc, by the parries concerned. These account of a r:ontlactor, employee or other
payments.may be made either to the parties direct, or individual or is recoverable from him under
credited in the I.R.L.As or the disbursing officers may any rule or order, it i.s recorded as such in a
be authorised to disburse the arnounts through cash prescribed account and the recovery is jii
accounts, imprests etc. watched; i'
(h) in cases of purchase of stores, that they have i.
Note 1 : in urgent cases wherein the opinion of [;]
Controllers such a course is necessary to ulri,id d"lay been accounted for in the prescribed store
ii
in paymen! they may at their discretion authorise the accounts and that the rates are the same as
ii
contracted for or are certified as correct by I]
payment without pre audit, of claims which are nor_
mally required to be pre audited. All such paymenrs proper authority;
i.l
will be subjected to post audit subsequently. (i) in respect of bills of contractors of the
l,.
Military Engineei Services, that the terrns of lrl
Note 2:
establishment bills of the office of a the contract or other agreement have been tri
C.DA are audited by another C.D.A. The bilts are adhered to;
t

ii;
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CrrAP. 2l C;:NERAL PRTNCIPLES AND RTJLES OF AT]DIT

[47-*ss
6) that rates entered in the biils for transport for 51. Blank
th.e movement o{' troops and stores, when
such transport is not providcd for by ttrre 52. Elank
Army Service Corps, agree with tlie contract Provisiona! Payments
or tariff rates and that the warrants, *redit 53. Payrnents nrade in exeeptional circumstances
notes or passage orrl*rs h.ave been signeci by irr anticipation of the receipt oli the sanciion af the
the oifi.cer authorised to sign thenr. and that apprapriate authoity *r of additional allcrments ci
tliey hav-e been propcrly issued under the funds io cover the expenditure are knou,n as
ruIes, and 'Pror"isional' Paynrents.
(k) thae the expenditure does nor involve a 54. Cases inflv aris<: whc,;e sane ticn of the
breach of any of the standards of financial appropdaie authorify c.xists arrd iunds are avai!able
propriety (see paragraph -19 & 40). -lei a final ilayn.rent cannot be ;::a<!e ic the parties
ccncerned" ulhether Governmcnt ernplcl;ees r:r third
48. Recurring charges which are payable cn the parties, on account of lack of rlocuurentation. cr lack
lulfiirnent of certain conditions ai until rhe of tirne for verifici:tion of the particulars or for the
occurrence cl a certiiin event sh*ulci be adrniltei! ln
cr:rnpletioa oi neces-saty audit. requirernents.
audit on reeeipt of a certificate frcm the of,f?cer. con-
'cerned In such cases, lhe amount *"hich is clearly pa_vabie
ao the effect that the neeessary conditi*ns
have been duly fulfrlled or the evenf has not yet may be paid to the parties after satisf.v;"g ilror ,ro
occurrerl, as the case rnay l:*. overpayrneng or Lrreach of rules w"oulr.i be i;rvcjr.eci
thereb;;. 'fhc payments so rnede are also ta .!:e
49- Whilsr il is desirablc rhat audirors and orirers treated as'provisionai' i]ft],"fi{:nls.
emplol'ertr on audit duties slrould nc,t ire at
libedv to
make any relaxaticns in audit of their own moticn, it Nrrte: The finalisaticn cf all provisional
is of c*-nsi.lerable irnportance that t&e prescriberl paymenqs will be vratchecl thrcugh the me <iiurn of a
checks should be observeri in .spirir and naiin the ier,- register and cases rvhere such payrcents remain
ter aS oppose<l to the spirit. unadjusteel or not linalised lbi long perii:ds
"should
50. It is irregr-rlar to continue niakrng payments in be'nrought to notice of higher a.iministratir,*
ccntravention *f definite -
Gor,t. orderu. It ihotrld .pe authcrities for imme.q{iate aetion.. ?he r?gistex ;ll
errsureC : be subject ro review by {J.D.A.$? C.D.A In the
sarne firar:ner as rcgisters sub_cidiary to rhe ..Reli_e*,
(i) that where Government crders sar{etionins
cl Balauces".
pay and allowances definitely ,"t;i" ;;--;
speeilie class of persoanel, only suctr persoa- 55. Pror"isional paymenis wiil be made only
. nel should be adrnitted rhe auth*risi,i pay uncler tfue personal r:rder an<j discre tion of the Con*
and allowances ansl the concessian sirouli holler nf Delence Accouiits, rvho, l:efore autliorising
on no account be extende<! try ot!:er cirsses such. gril-vments wifl'sarisly himsell with a C..re sense
mere.ly on the basis of anaiogy cr v,ith a rliev;
to ar"oiding an anornaly; *f his *w: re.spon.tibiiiry rhat his a-,:riroiisarion is jru-
tiirable. The Contr*llcr ol l)eiini:e A!:cc)!.ints m&y"
(ii) that where it is consid*re{i thfit the crders at his discretir:rr delegate the pcueis tc malce pro_
rg-gartlile a certain elern**t cf pay are visionai pa-y*rnents tc, Joint Controlier and/or IDAS
aliegedly iRcorrect or ir:v,:hle e*iitradictir,,r Officers functioning as Croup ()liicers urr the ciear
in their *pplication in that r-rti-.:r ele r:renrs aie
un<lersfanr!i$g rhat this wil n*t absc!".;e the C.D.A. *f
{e-ated di{ferentiy, crders sirould be given the ultiriate sg-eponsibiiity for the provisional
ef,fect to as th.ey stand arasl {-}n Ro
shoutrd payrnent be made beyond the "*Jo*ru 3er:nenr.
scorie
of such orders: and Similarly, tire Cjiief Conrroller cf Accounts (F-ac-
iiii) that if a ref'erence is r *cir. ac hirher €orles) :nay alsc at his discretion, delegate the po.*ers
auth.oritie$ for clarifisati*n, :tr:" -ljiCe iiei:r tc authorise pror.isional paynnents cl lucal purchase
(ii.}, abcve the *orrect corrFs? i$ tc act ,;ce*rd- bilis, when requestei by the tjenerai Manager _ of
i1g to the crders as the:r st*r:C petding a Oreinance Factaies. Ctricf eualiry Assurance
decision aad nci aceording t* the r,piilion *fficers" Cliief Quaiity Assura:rce Establi-shment a*c!
heid in tlre controlier's *fdce r:*r to'*lake tr]irectors of R. & 1) Establishrrcnts end Oifieer
any payments in anticipr,i.;;f-; A"""lni,l* incharge hoicling independenr chalge of Br;rnch
decision on the referencc. A,:eouE:.ts Clilices.

ii
,,,i
,;>
?s *il
 CHAI. 2l C}ENERAL PRINCIPI,ES.AND RULES OF ALTDIT
Is6-62
56. Controllers will not authorise any provisional 60. Blank
paynents where there is no authority. iu.", of
lack
of powels or lack of authority shoulcJ be dealt with in 61. Blank
the nonnal lritnner by the aclministrative autho- Audit of Bills and Vouchers
rities. Only when some clear evidence is available
that the necessity for the expendifure has been accep_ 62, The cletailecl auclit of bills and vouchers is
ted and that the sanction of the applopriate authority conducted to see :
has eithcr actually been accorclecl or will be tbrtir
coning, the Controllers will use their discretion in
(a) that the bills and vouchers are in the pres-
the timing of the payrnent to avoicl hardship. In the
cribed form and original:
nralter of pay and allowances of persons who are (b) that they are duly receipted by payees
and
kept on in service or in a particular estabishnent that a hrief absrracr is given in Engtish under
beyond the clate of expiry of the sanction. a greater the signature of the drawing officer on all
latitudc ntay be shown by the Controllers on the purely vernacular vouchers and that ver-
rurclit of each case. nacular signafutes are transliterated (signa-
ture in Hindi. and in case of State Glvts
57. In ca.ses of lack of buclget provision, if there is signature in other authorised regional
evidence that some action has been taken for obtain_ languages need not however be tran_
ing additional allotrnents. the Controllers may use sliterated), also that the sub vouchers contain
their discretion for the release of amounts to the par- of
notes dates of paynent:
ties concernccl where third parties are inv,olvecl e.g.
(c) that the cletails work up to the total and the
Contractors. anrl there is a clefinite legal liability to
pay, payment shoulel not ordinarily be with helcl totals are in words as well as in figures:
but
each case should be decidecl orr its merits ancl on the (d) that there are no el.asures. and that any
strength of the legal aspects of the clairn. legal alterations in tlie totals are attested by the
advisers being consulted in cloubtful cases. officer concerned as many times as they
are made:
58. In no circurrstances will a pr.ovisional pay-
ment be made on an undertaking by the individual (e) thart no voucher. or order has been signed by
colrcerrred that hc will refuncl the amount if requirecl the subordinate ,for' an officer;
to do so. shoul<l however. an LpC of an inclivirlual (0 that rhe bills are signed in ink no bill or
transferred fronr anoth.er establishment not he . voucher signed with a stamp being
forthcorning the Auclit Officer.. nray on being fur- accepted:
nished by the individual concernecl with a certifica.te
s?ti,ng the date upto which he wzs last paicl. the rates Note : Bills affixe d with facsimile .signature of the
of his pay and allowances an<I ifr" clemancls authori.sed officer presentecl by the po.cts and
outstancling againqt him. authori.se pay being clis_ telegraphs deparhneut for telegram arrd
bursed and provisionally admirted pending the trunk call charges. by the Municipalities &
receipt of an L.P.C. Such paynlents witrl not be con_ Corporations for water aiid electricitv
tinued indcfinitely. charges'and by the Air India international on
account of their dues against government (for
59. In some isoiatecl cases specific directions are passage fares, cargo and excess luggage
given by the Defence Ministry (or by branches charges forning sub vouchers of the con_
at Ser-
vices l{eadeuarters with the of Ministry tingent bills). may be acceptecl for payment.
of Defence (Finance) when the"orr"rrr.re,-,""
Defence Mini*t,y t as
empowered them to sanction the expenditure) cattin!
if otherw-ise in orrler.
on the Controllers to make a payrnent, wniin froni (g) that copies of sanctions are certified by the
the direction cannot be regarclecl- as final. In such sanctiorring of{icer or by a gazetted officer
cases the ultimare ,e_rpo.riibility for watching authorised to sign for him:
the
final adjustment and thi settlernent otpay*"rrts rests
with the Ministry Defence or the brancles at Services Note 1 : Incase of charges forwhich special sanc_
Ilcadquarlers. The finalisation of these paynents tipn is necessary under rule, no separate
will also be watcherl through the register mentioned sanction need be insisted on if the Uill o.
in the note uncler paia 54 i; the nanner voucher is countersigned by the authority
inrlicatccl therein.
competent to sanction the expenditure.

10

a
 AND.RULES.f.,F ATIDTT
[6]'*'rg
'o'nl.::l..l.qjo'-f'.''o1]''."?.*^of,tenrpo,a,y:a,i';;
Z
- {T\ etcj iigainst an,r:fiicer or thar an
bserd,.ptions.
'ras-inadvertently under claimetl an
\y amounr
euthoiised alci due to-hirn. tiie nccessary
q.E{ttt z ffi oz (q) {ftil {5.
dn,q,pTBn g bXRA oz6j l,INn-Two lent mav be carrie.d or.rt. Detaiis or
:i tents 'sird*ld be communicated f{} the
: ,,e._
!0/_,'* eqm qq 1: .:Befc.re a,nV11ch alleratians i* a pay biti
FOR :'"Rs. 20/-" macle- the,specific orders bv tire.Gfficcr in
1of , the audil - seclion cc.ncerne,l' must be
tl9{",*80,-"
irX; ':^, ,.^.^^=. - - ---:.-r
Iroi, honFver. r
-p.ernissiirle to enhance tl-re
(xrfuan : rrrr{ T{6t{, f+.t -ia*o1 lx^tTn**.t :::':"'l:t!*: his pav uniirv
g+ rfi,tt6r.sT. ricur: qu,}!1.641.9-::q1.d.) ortn of pav and "l
aliow'rinces 'aJ;ri"-
to which ire is
-rnitirry
ffiiq; 3rrr{, MtN. oF-ryI- rnly speiifietl rir."**o*"r*
: GovT. oF INDIA, in certain
i{ANCur^- pFog.,oF REvENUE o.M. No' 'ulfilmenr t,i ceriain rlefiniie ;;;;;;;r:'-""J
n.5tk+igz-sr Dr. 31 MAY e4). I

lank.
v:fr\q 2 c'rr oz (a) rfm-q*
-_'_-_ si8natu.le :', ',
CHAPTER rr PARA 62(k) LINE-ONE 1
1

fefore admitiing a claim. an audit officer

: "19 {flt"* tqn gt [isly hir:.lseif thar .rhe signature it bears is
FOR : "12 MONTHS" i To cnaL,le hinr to cio so he wi!} obtain a
' n copi, of the signature of every nfiicer **iro is
: " 24 g$ft" vGg j.to prefet his,owx paybill or fhat of
READ : "24 MONTHS" rhc
imelr se-".ying,unrler him: or who is elieible
(crlu{* : frwtq ft{qnfr Elrq-r, fq€ r, r claims to the C:b.A. Or who is auhoised
1993 iF',t
retluisitions for cash or to holcl anc! ren,:ler
{fa wfr dqqr: rzlYIIIls+
jrfiTcm fr"f
(AUTHY : C.S. No. t2lVtllg4 TO FR cash public fund etc. aecourits: o-r who is
't
t
Pt. I,
' YOL. I, 1983 Edrl.) ed io counler.qign or certify the various ,
I

, I:, ...-,..{*g1.ei,p,ayrnent of tl}c next cfiaI'ge,.Inr;rci!L!r1ts ' nccounts; ete. Tlte specirnen-eopv o['signa:
i

. .:1,..0.:,atsti'..1'trr{:Sb.. and''da[e 'of. the vouchei. (ai fure will be-recorded in ttrc pjrsonal fiie ;;n;;,
givcn Uy ri,c unit). thc auroul.lf irivotve.l and or other reievant file/register. "/t'f,"
' the nron{h :,to wliich . the chargc pertains 67. Blank.
urrde1..tile. initials, 6f,,ld1c,. auditir and rhe
So(A)/AAo Amendment antt irrterpretation of rules
63. A regisrer oi biils will he rneirrraineil in each
sebtr:on' io rratch fhe prornpt <lisposal of all bills 68. The following procedure should tre observed
recerv€$,,for p*yruert. hy a'Contruller: whea he,is of opjniqn1hat an amencl_,
- 64. AIi:EilIs paid:must be stamped .paid' and the ment to a rulc in an authorised code. etc. is requirecl.
date of payllJ,ent:rnu;{.be giyen, it inutibe notecl on or that necessity exists for tire authoritative'intbr_
thcm whclhcr they are paid in cash or cheque the pretation of a rule :
date oi thc cherluc in the case oi individual (l) when any defective rule come to the norice of
and,t$e-no. &<late of cireque in the c"s* of o*nibm "i..ru.o a Controller in the course of his audit duties
e-*reques,-being.quoted. They must further bear the
he .riiill, first see whe.ther the rule, ab it stands.
pay ordcr o!'tlie clisbursing olficer. and the anlount : I admit*,.,of,:.:*..definitq; audit decision being
pai{"ttillt'dgree wit}i ilre amounl passed.' Ordinarily grven one way or another. if ,", fr"l *ifi
no paymear will be made in ex.ess th-;;;i ordinarily decide the a-rrdit point accordt"g;;
arnount elaimed in a bill. Arithmeticat"firru."uro"i",
thc. nrle.as it starids. .'Ihen uod in all.oiirer
and obvious mistakes in a pay bill nray, however. be
case.s he should refer the matter to tt Cnn-
ccrrected;:fn' the,ia-sel of a#"eo*' pay rriil* rrh";;'i, ;
trollir ".General of Defence Accourrts." , . :

1l
Cue=p. 2l GENERAiJ PRINCIPLES .{ND RULES C}F AIJDIT
[62-68
This docs not apply to the case of tenrpoiary- quite clear titat excess credits ltave been afforde<J irr a
estaitlishntents the safic{ion cf rvhich sl:.ould pay bill on :tccol!:rt ol public clainrs (eg. Income iax.
alrr:ays . be calleri tor iind note<l in the fund subscriptie;ns. etc.; against an cfficer or that an
Aqdit Regibter:" offieer has inadl'ertently under clairned an amount
Note 2:, The icrni 'v.oucirer' should be iaken to ciearly autlioii:ied anrJ due tc hinr, the necessary
amelrtlrnenf may be cairieC out. Detai!-s ol
irrc:luile'sub voucher'for :: all
' pirrposes rrl ar:leiidments slroilld be comrnunicated tn the
audit. :

(h) that stamp-l ere'affixeJ_lo all ctraimant' 'Before any 'such alterations i* a pay bill
voucl:icrs for.^
:tHj:"'m-;::,,*P*:,:::::;::*$r'$di,':;o;-*;"-d:"::ilf'::::,'*"j"i1T';:
'otitttted'
at the iimc of audir:
(i) ie af!,,case in which it is pre.scribed that 1i is not, hcrl,ever p*rnissii:le lo enhance the
aglee(])eilt shr:uld L'c efflectcd beiwcen ir..ro alnount <iue to an *fficer ol his pay bill by aridition
dlfferent docuinenis. dre facl r:f the agree- of any lorrri of pa;- arrd allor.v.lrices tc which irc is
ment.shoukl lre noted on both the docurnenis eligihle oniy iir certain spe;ified circurnsrances anJ
arrrl initiriilccl by'thr audito. rvho nrrkes cn thc fulfilment t.r!' cettain <ie finite condi:icns.
the agreeurcn!l
(ji- tha1 fund *nd.iReorne tax deductions have
65. Blank.
bcerr corie-ci.lv nraclel Specinrcn sign**l:r*
{k) that claiurs preierred'oft*.(D#rhs are ncr
proccc(led ,uitlr o. wirirorrr l#sancrio,r of thr 66. Befor"e admitting a claim. an audit officer a
t
cou'lpetelrt authcri4' as pirsc-r'ile<l in Finan- rnust satis himseli that the signature it bears is
cial Regulatirlns: genuine. To enable him to <io sc hc wilt obtain a
(1) necessary entlies should be made in the pres- specirnen copy of the signafure of every offic.er wiro is
cr{bsd.Audii Registers an<l in cases where required to prefer his own payhill or that of thi:
audit is conducted u,ith reference tc previous establishnreut serving under hirnl or who is eligible
bills. the biils shr:ul<t be Iinked rcgether. to render claims to tbe C.D.A. Or who is auhorised
itatcs beiilg n:arde in cach uncler the auditar's to sign rerluisitions firr c*sh.or to :l-rold and render
initials. A s.ritable entry shr:uitl prorninen-' imprest cash public fund etc. accouitts: nr who is
lly b.e n:acle in thc last charge. regar<iing the authorised to countcrsign or certifv the various
lactof pay'rncnt of the next char.ge. indic*ting r-:lairns. accounfs: etc. The specir:ten copy of signa-
also thc No. aud clatc of the vouchcr' (as t'-rre will Lre recorded in thc personal fiie of the officer
givcu by thc unit). thc anrourtt invclved and or other reievant Iileiregist*r.
thc nronlh to wliich rhe chargc pcr-taius 67. Blank.
uncl:r' the initials of the auditor and the
So(A1/,au46. Amendment and interpretation of rules
63- A registcr oi biils will he rnaiiitainer! in ercir
section io watch the prornpt rlisposal of all bills 68. The fallowing procedure should he observecl
received fcrl payllent. hy a Co*troller when he is of opinien that,an amend-
menL tc a rule iir an authodsed cocje. etc, is requirecl.
6"1. Ali-hili.s pair! rnust be stam.pecl 'paid'ancl the
date of pzr,v..nle$t rnu.st be given. it urust be noted on
ol that necessity exists lor the auihoritative intbr-
prclalion of a rule :
thcm rlhelhcr tliey arc paid in ca.sh or cheque th.c
date oi the chetluc in the case oi individual chequer; il) when arry defective.rule.come to the notice of
and the no. & date of cireque in the crse of, omnibus a (lontroller in thc course of his audit duties
eheques, being quotecl. They rnust further bear the lie w-ili first see wheriter the rule. as it stands.
piiy.order cl- the ciisbursing ofiicer. and the arrount admits of a. definire; audit decision being
paid rn,i,rt agrei with the amount passed. Ordinarily gruen one way or another. if so, he rvill
rro payrrrent will be made in excess of th'e actual ordinarily decide the audit point according,to
alnount claiured in a biil. Arithnteticai inaccuracies thc rr:le as it stands. 'fhen and in all other
and obvious mistakes in a pay bill uray, however, be cases he should refer the matter to the Con-
corrected, ln the base of officers' pay bilis rvhere it is troller General of Defence Accounts.

1i
 CET5A11 PRI.\{CIPLES AND RL:I-ES OF AUDIT
{68-74
. - . : - :f..- ;.rpe
nJirure irivolved is 73. The R.egional Controllers are ex officio thian_
, '--. -::::i ::t.l:oitance. the Controller cial advisers to the General Officers Commarrding in
'-., ..:: "l Jc-rirable to deler an audit Chief of Cornmands as well as to the area ancl
-::.1 :r: u,.-.ltt.i of doubt have been Independent Sub Area Commanders in their respec-
-i ,:i:ii. rhc rule ntay be so question- tive audit areas in respect of the expenditure
-. .:i:. lr uitir reference to a discre- sanctioned by therrr. Sirlilarly. the CDA (Air Force)
:..::-]:trcn elsewhcre in the codes or ircts as Financial Adviser to tlie Air Officer Com_
:.. :hat the Contloller trray feel him- rnanding We.stern/East.ern,/C'entral/South West Air
-.: l-- "ir-e a satisfactory audit mling Cornmands i"A.F. and N{aiutenance/Training Coni-
r: ii:e other on the regulatiotts as mand IAF and rhe CDA (Narry) to the Flag Officers
I' ir all such cases- the question Commanding in Chief Western l.Javal Comrnand.
rl : : :-'-:iriid to the Controiler General Bornbay, Eastern Naval Cr:mmand, Vishakhapat_
I
:: -\ccounts if the poirrt in cloubt nam, C'ommodore Commanding Southem Naval
'-.1 rhe subject of corrcsponderlce Area. Cochin and Admiral Superintenrlent Naval
I : Qontrr>ller and a General Officer Dockyard, Bonibay.
rl :g in Chiel or a General Officer
il ' :-:s or the Head of a Department 74. Financial advice tendered 10 the abnve
-:,:,:iding authorities in the case ol authorities can be cli,*ide d into two portions
' j ii:c Ail Force), a namely: (i) respontiing financial advice rvhich ccn-
li copy of the letter
::= rhe .r'icws of thc letter should sists : (a) aclvice on ilefinite poin{s referrecl to Cr:n-
-:.:-.'! the refe rence . trollers and (b) advice as the result of investigations
', r! I .-. ,-coulntendation by an adrninistra- into facts which are nornally acceptecl on the state_
: l- l ',: :.rceptional treatinent, ment of comrnancling and administrative officers:
orrtside the
iJdressed to thc higher adnrirristra- and (ii) original financial advice. which consisrs of
.r::ccrttecl. througb the Cclntroller. and advising the administration of any methocl by u,hich
:trollcr. equal efficiency can be obtained rvith less exf,en_
\ :,tr l ::'.aking references to the C.G.D.A. the diture. Audit will not cnly see that the authority for
rara 9 et. Seq should be kept in expenditure is quoted but will also on legitimate
. occ;tsions investigate the nece.ssity for it. It will
3-::: k.
examine whether the indir,idual items were in
furthere nce of the scherne for which the burlget pro_
vided whether the sarne results cculd have been
I. ohtained otherwise with greater economy; rvhether
: ltir .:rl sdrice the rate and scale were justified in the circumstances;
-- ,;J:iion to their noruai functiclns of inter- in fact they will ask every question that might be
- , . : D.-i-cnce Services receipts and expendi- expected from an intelligent tax payer bent on gctting
-:: [::.r:ollers of Defence Accounts act as the best value for his money. For this purpose com_
'- :- -::s.ntatives of the Secretary (Defencel parison of expenditure olcash and certain important
-- . .1 F.iilncial Advisel. Ministry oi Defence kinds ol stores selected in each unit will tre necessarv
-- .: :::: spot. Lt this capacity they have to in respect of
: I :.it lorward proposals, on their own
: : r:ilucrion of l)efence Expentliture (1) the same unit as betwee n dilferent quarters of
. : - i - -:: :erluction appears practicable. For the year and
:- i ' :. ,-.rcuDtstances under which a conces-
. '.i.tnce has been granted change subse- (2)
- - ,il:::]nt modification or withdrawal of units of saDle type during a particular period.
- :::{ : :r if the working ofa rule or Investigations for financial advice will coverthe
a system
:.-:: r::rtravagance, the controllers should whole field of Defence Expenditure but par_
: ticular attention will be paid to those items
-' :-::::: 10 the C.G.D.A.
\_.v.v.n. Who
,Y llu will.
wIlI,
.::; rhr. natter to the notice of Ministry
lIif
where extravagance is more likely e.g. working
- I, "- --.
:. --, of hospitals by comparison between the cost of
--l

t2

I
 GENERAL PRIhICIPLES ,C,ND RI,'I-ES SF AIJDIT I t4- t t
Cn*. 2l

diets, extias, etc. Tire railing or back raiXing Note 2 : Foints of higher aurtrit raised ciurirrg the
of stores; u:ie of Government transport; the scrutiny of contracts apart frorn the routine o}:ser-
ccst of MES maintenance and reFairs; work- vations leading to iowerirrg of rates raised dur"ing the
ing af contracts; both A.S'C. and M'F'S" scrutiny i:rf comparatil'e $tatement cf tenders *f
(Controllers should keep under constant A.S.C. Supplies, neeci only be inc-luded in ttrre report
teview the various fields oi Deience Expendi- rendered to the C.G.D.A.
ture in oreier io suggest to the admiaistrative
a-tlthorities way.s and rleans of avoiding
?5. If Cq:ntrollers feel ihat ihe interverrtion of the
linancial or administrative authorities at Defence
extravagance arrd achieving econony in a speciiit case or ia'ilei'i a
ireaclquarters is necessary
especially in vicw of the rising Defence
question of policy is involved, they may refer such.
Expenditure ancl particular attention shoukl
cases to the Controitrer General of Defence Accounts
be bestowecl by Controllers oil this item of with tlie
r#ork). The resuit of Controller's investiga- dilect. Such references shouid be rsade
Fersonal cognisance of' tire Con'trcller.
tion orr ali inclividuai pciints of h'igher audit
and financial arlvice and ihe conclusioris he
76. To ensure that financial advice of the nafule
I
has formecl thereon will be preseuted by him
mentioned in para 74{ii) aL,ove is carried (}rnt s.vs-
to the Local"fu{ilitary authorities concerned, i{'
he consi<iers that the results justify such a tematically. a special seciiolr called the "Finarrcial
coulse. No item of financial arivice will, Aelvice Section/Technical Contrci Seetion" exists in
l howevei', be pressed rvithout the fuli Controlier's Cffice. F.A/'[C Sectinn witrtr <;rr{inaril-v
-vrlrk' ns riis-
knowledge ancl gocdwill of the Commancl or cal'rJ out only otiginai flnanciai advice
t Area staff with whom the proposition shoulci tinct from rvhat rnay be termed'responding fin*ncial
be fuliy discussed. Controliers should pro- or audit advice'" tl-raf is. advice on specific qltesiions
minently bring to tire notice of the C"G'D'A' referred to Controtrlers by the aetrministrative
Cases in which suggesiions made by tirern authorities. Ttrre laiter lcind of work rr:ill b,e deait
coulcl'uot be impiernented due to the r'mhelp- with by the audit sections coricerned, invoking the
fui attitude of the local adrninistrative assistar:.ce of the 'Financial advieelTechnical Ccntoi'
authorities oi their disinclination to taking
Sectioir in cases of special importance. '"T'ire Finan-
up the 111atter with financial and aclministra-
cial AdvicelTecirnicai Control Section" v*'itrl ire fe<tr by
tive authorities at Defence Headquarters
rvhile reporting such cases it should be the autiit sections an<l 'n-u". the tr-ocallRegioria! Audit
ensurecl that a self containecl report giving Ofiicers rvho will furnisi: tci it such usefui points as
fuil rletails of tire aclvice tendered,'the views come to their notice in their day to ci*'y audit arid
of the administrative authorities and alscr wtrrictrr urerit investigaiion for financial adr"ice pur-
further rernarks of ttrre Coniroller thereon is poses. Anothsr scrurce nf goc'3 p':rints nf financial
alsc submittcd to thc C'G.D.A. a.dvice iviil be found in the tour notes of the Con-
Audit officers wili also wiltcir the rnanner in rvirich trolier and other ofhcers"
the various executive ofFicets tlie undertaking their
riiore inrportant financiai iesponsibilities' 77. No ohjecticn shnuld ever tre issued by ttre t

llt!
'Financial A,lvice/Tecliniciri Coptrol' Seclion nor
Note 1 : Controllers shculcl in particul*r examine
ii
tl

u'herher the stocks of defence stoi"es' which are being shr:ulcl they enter into any correspondence "*'ith I

declare<l sutplus to the ilisposal arganisation car:not Officers Corntnanding and oihers. A11 necessafy i

*'ith arivantage be utiliseti against iteurs in current enquiries must be made verhaXly from the audit sec-
I

denr.and with any cliarges or repairs of lowerirlg o[ tions concerried. {f in any case correspondence
I
I
specilications. etc. if necessary' On conipletion ,of
sliould beccne irrclispensal:le, sucil correspondeuce
the investigaiions. Controllers stroulcl send to the '

CGDA any sugge stions, wtrrich tirey may come.acl'oss shoutrd take the form of pelscnal letters wrilten o'rer
and which, if impiemented' wotllcl check extra- the Controller's signat*re" Controllers witrl ensure
\.agar1ce, secure econoniy and lead to.savings either that the visits paid to units and t'onnaticrns for'finan-
clil:ectly in cash expenCituie or irrdircctly, in the cial adlice are not confused in ihe miqlcs of any one
:i utiiisaiion of stoles- to errabie the C.G.D.A. to take concerned, witir tile ordina'ry audit and iris-
these up with the administratir"e arrd financial
pec1ion.
autiroi-ities at Deferlce Headquariels.
l3

i- r/r'r;narNlr;er
 CHAP. 2l
S OF AUDIT
ll. of their o," oiland the 1s ,
n::f "*:,::::i:":i.,
ffii:fffr:J,T,.{,:Fl'":,i.:ilu#
trnuous examination
and review t :{if ;Hi'.fi:lffHlffi
ff advice.
llT*f;,"3::.'.^o:tt
submitting ror the ccba{
* i,'"""L.,,0"r*on.oil, ciai
schemes of audit oj "o#;"rrt"jfffil*,1 80. Brank.
rvhich, rhey are safisfied,:ur! ".; ;;.;xpenditure
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AUDIT AGAINST PROVISION OF'FTJNDS.

Para
General
83
Appropriation aldit
90
Gencral Note: All charges paid at ports or elsewhere in
83. The procedure relating to the preparation of .India in connection with stores ohtained fronr
the budget estimates, appropriation and re- England should be tre ated as expenditure in
appropriation of funds and budget matters generally, India.
is laid down in Financial Regulations,-Defence 88. A grant or a supplementary grant may be pro_
Accounts Code and other financial rules issued by vided in respect of expenditure under a Major Head
the- Ministry of Defence (Finance). or under one or more sections of a Major HLad. For
M. After the 'Demands for Grants' have been purposes of financial control. the provisii:n under a
voted by the Parliament, a bill is introduced to pro- Major ltread of account is divid-ed inro units of
vide for the appropriation out of the Consolidated appropriation each of which may be sub divided, as
Fund of India of all moneys required to meet those. may be necessary.
$ants. No money can be withdrawn from the Con- 89. Blank
solidated fund until this bill is passed. The bill when
passed, becomes the Appropriation Act. Appropriatiern .Audit
9{i. The Controllers of Defence Accounts ai€
. 85.. Each _grant authorised in the Appropriation. requifed to exercise appropriation audit, as described
Act is intended to cover all the charges including the
liabilities of past years to be.paid auring a finaicial
in the succeeding paragraphs only in respect of the
year or to be adjusted in the accounts of that year. It
expenditure compilable to locally controlled heads
(see Defence Account Code). No such audit is
is operative until the close of that year. Any unspent
balance at the end ofthe year lapsls and is not avail-
required to be conducted by the Defence Accounts
De-partrnent on the expenditure pertaining to cen-
able for utilisation in the following year.
trally controlled heads
Note: The linancial year closes on 3lst March. gl.."Appropriation audit is conducted
After that date all actual transactions are treated as stages
in two
:
pertaining to the following year hut for bonafide
hanpfer entries or book adjustments of transactions (i) sanction audit i. e audit ol orclers of allot-
pertaining to the accounts of the year closecl which ment of funds and re*appropriations and
are permissible or may be made for some months (ii) expendirure audir i. e. audit of expenditure
after 31st March until the accounts for thb year are against allotments
finally closed. See also riote.below para 25, befence 92. The audit of orders of allotrnent and rc_
Accounts Code. appropriatiorrs consists in seeing:
e. {o appropriation is needed in respecr of (a) that the order has not the effect of increasing
;i rccorcries of expenditure which are treated as the amount of the appropriation at the disl
receipts, both initially and Iinally, and are not posai of the controlling authority, without the
required by any rule in an authoris;d aecount code sanction of the eompetent authority:
to be taken in reducticn of eharges against (b) that the amount appropriated is available
gxants for expenditure. under the unit from which it is allotted;
87. Seperate provision is made in the budget for (c) that the order- is issued by the competent
expenditure in India and in England" the proisions atthority and is a legitimate charge against
for expenditure in England being intended to cover the allotment and
the charges in_curred in England by the High Corn- (d) that the re-approprizition has been authorised
missioner for India in the U.f (i)-on the slpply of only within the appropriation of that year.
such stores the cost of which is finally aCiustllli in All re-appropriations within the appropria-
his accounts, and (ii) for other payment! made in tion for a year can be authorised at-anyiime
pngland, which are not chargiabte to Debt before, but not after the expiry of the hn"n_
Heads of account cial year.

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CHAP. 3l AUDIT AGAINST PROVISION OF FUNDS

Ie3-e8
In conducting the audit of expenditure against required for the rest of the financial 1rar. pro_
--93"
allotnnents, the following points shculd be carefully visional payments in excess of allotment .will be
observed by Controllers: made only under the personal orders of the C.D.A (or
(a) if any specific appropriation has been made the bfficer to whorn the powem have been deleghted
for a particular object of expenditure, all by him. See p.ara 55 Deience Audit Code) who mav.
expenditure on it will be aridited againsr such at his discretion, authorise such payments whe-never
appropriation: and he considers such a course to be in the be.st interests
of the state. The detaiied procedure for watching
O) if a lump suq appropriation is made for a progress of expenditure against budget allotment-*
group of items of expenditure, the total is
described in chapter 16 of Difence Account
expenditure thereon will be audited against Code.
the lump sum appropriation;
95. The authority administering an appropriation
9{. It is not strfficient to exercise merely a close and not the Defence Account nepadent, is
watch overprders of allotment an{ re-appropriation; ultimatell responsible for keeping the expenditure
the progress of expenditure against ttre grant Or within the appropriation.
appropdation as a whole and sdb divisions thereof
96..The Controllers of Defence Accounts afs res-
should also receive special attcntion. The bobked
ponsible for watching that the expenditure does not
expenditure should be scmtinised intelligently'and
exceed the allotments as modified by orders of re_
the case in which the expenditure seems to be abnor_
appropriation passed by competent authority from
mally hearry or unusually loq should be brought to
time to tipe. They are also responsible.for warching
the notice of the disbursing oJficers anil controlling
that re-appropriation of funds to meet uny .*o"ii
alfgritiel b: tahing prompt acrisn for obtainiiri expenditure over allotments are duly sanctioned.
additional allotrnent when excisses appear to be
likely and when savings can be foreseen surrender 97. Blank.
such portions of the allirtment as are not likely to be
98. Blank

l9
a'

CHAPTER 4
A[-'DIT OF RECEIFTS AND RECOVERIIS

General Para
Investmen.ts and loans to public Sector undertaking I
Recoveries of advances made in India 103
105
AdvancestoseryicepersonnelbyIndianRepresentativesAbroad
Recoveries of income tax ll3
Recoveries of value of horses purchased by high officiars llB
contributions to'wards leave allowances and pens-ions of om""r* 129
and others lent to foreign sertice'
and passage contributions of such officers
Adjustnnent of leave salary contribution of officers and olhers l3i
on deputation to another government
or department of the central Government
_ 133
Recoveries for stores issued on payment and for service$ rendered
Recoveries of hospital stoppages 136
Recoveries of licence fees 137

lt Gcneral
138

(a) the amou{ts are correct and properly

F{ 99. The audit of receipts consists in seeing that all vouched; and
sums due to Government are promptly credlited and (b) thiire has been no delay in crediting the
b,rought to account. As a geneial *ie, ,.o debt due to amounts.
Government should be left outstanding on the books
without due and suflicient reason. The audit office 102. Where recoveries are effected through thb
should exercise constant and watchful care over such I.R.L.As, a no&e of all the demands outstinding
outstandings and should fully review tlem at least against individuals will be kept in those ledgei-
once a year. Whenever any itern appears to be irccounts.
irrecoverable, orders for its La3'rrst-"rri should be In other. cases, a record of all sums due to
dernanded. Unless permitted by any rirle in an Governmeirt wilt be maintained by means of demand
authorised code, no sums may be ireditid to Govern-
or .other appropriate re-gisters (Lg payment -i*;;
T9-nt by debt to axy suspense heads; credit rnust registers, contractor's. -ledgers, reveirue Gdgers, pen,'
follow, and not precede, ictual realisation. sion audit registers for -warciing
100. When any financial rule recovery of -registers/cards,
Ieave salary & peniion contributions ii
or oreler applicable re_spectof Govt servants lent to foreign serwice. etc).
to the .case prescribes the scale or perioaicity oi
The action taken from time to tinie towards the
II
il
recoveries, it will be the duty of Audit io
"rrrrr..ih"i
there is no deviation ri.ithr:ut proper- authority recovery will be shown therein. When credit has
tt such scale or periodicity.
from been afforded for a particular item, a brief note to
Ir
II that effect will be made in the register against the
tl
il 101. The amounts due to Government are recover- item concerned.
il|' lble (1) through pay bills/I.R.t.As in the case of
Government employees except where recovery is In the case of advances compiled under a debt
il : Inder,rules required to be
"effected
in cash' eg he-ad, e.g. Advances for the puichase of motor or
damages, (2) recovery of licence iee froi other conveyances, the payments made and the
9?Tqct recoveries effected will also be recorded in the
II .Civilian Govt. Servants, retaining Govt. Accommoda-
lr tion beyond the date of retiremlnt will be made in appropriate advanee registers.
tr cash by the Head of Oflice and in respect of
Iilt unauthorised period of occupation, by the'station Investments and loans to public sector undertekings
iJ: Commander, (3) thrcugh work o, s,rppiy bills in the
103. Expenditure on account of investments (share
case of contractors ( ) bV rernittanci of cash into a
capital) a4d loans to.public sector unaertatings is
treasury or the bank on the authority of a Military
debited to sub head 'D' Major Head 130 Defince
Receivable Order and (5) bV adjustmenr throuth
papital Qtutlay and to head ?'loans and advances
Defence exchange account and the settlemJnt by the Central Government loans to local funds,
accounts. In dealing with the credits it
lvtll be seen Private Parties etc. Regimental and other loans
that- (Defence) respectively. The recoveries on account
of
 F
i

=
= CHAP.4l OF RECEIPTS AND RECOVERIES
+- [103-110
g*i dividends due on investments in public sector under-
takings etc. should be watched in the manner pres-
107. AII debt head advances will be nored in the
appropriate registers for watching recovery. If an
=: cribed from time to time, and compiled to sub head
#5 individual or unit to whom such an advancl is gran-
=f 'G'Main Head iv Sub Major Head I of Major Head ted is transferred to the payment of another Lon-
=t troller, a debit will be raised in the Defence exchange
LXII Defence Services Estirnates. The realisation of
* interest as and when it falls due will be watched and tccount for the unrecovered advance. FuIl con-
E- credited to Government as per the orders issued by ditions and particulars of the advance will be stated
FI
F the Government from time to time and compiled to both in the Last Pay Certificate and the
Exchange Accounts.
=i
Head xvi interest Regimental and other loans
EI (Defence).
F- 108. In the case of advances debited through
Defence Exchange Account, the Audit Officer receiv-
r 104. Blank ing the account will adjust the amounts in his
i account for the month in which the advances were
i
I
Recoyeries of advances made in India made, if that account is open. otherwise in the
I

l, 105. Pay and aiiowances advanced under proper account for the month then open, debiting the
amount to the appropriate head concerned by credit
sanction are audited in the same way as pay and
Ir allowances issued on due date. Such advances will to the defence exchange acbount. He will also note
the advance in the demand registers etc; or I.R.L.A as
ttl be adjusted as final charges against the relevant ser-
the case may require.
lt
ti
vice heads, unless the parties concerned are proceed-
ing to another circle of audit, in which case they will Note : Advances of pay outstanding against the
tl
li
be reported to the audit officers concerned through
last pay certificates and adjusted in accordance with
individual at the time of his death will be dealt with
in accordance with the rules governing the pay and
I the rules in para ll3 Defence Account Code. In the allowances of the individual concerned.
Ti case of advances made to individuals in his own pay-
t ment, the audit officer will have the items entered in 109. Where the advance or any portion of it can-
II the demand etc. Register or the Individual Running rlot be recovered because of the transfer of the
f,
I
lE Ledger Account concerned and will watch their individual concerned to an appointment under the
I'
r recovery therefrom. State Govt. the amount of advance outstanding
against him is retained in the books of Defenqe
I' When advances are paid by Field Cashiers or Accounts Departmenl The balance of advance will,
Imprest Holders, the Controller of Defence Accounts however, be communicated !o the civil accounts
J
with whom the Field Cashier or the Imprest Holder officer concerned (through the last pay certificate)
I and he will be requested to pass on the credits on
I -r- is in direct account will, if the advances are recover-
I accounts of recoveries effected to the Def. Accounts
lL able in his circle of audit, have the advance entered
Department through the settlement accounts in res-
liIr in the audit or demand register or in the Individual
Running Ledger Accounl for watching recovery
pect of P & T, Railways and Department of Supply in
I the Ministry of Supplies and Rehabilitation and by
t
therefrom. If the advances are paid to individuals in payment by cheque or draft in respect of those serv-
I another audit.circle the advances will be debited, ing with or from the Departments/OfIicers of other
i through the Defence Exchange Accounts, to the Central Minisffies and the Departments/offices of
Audit officer concerned for further recovery action. State Governments and Centrally Controlled
I'll
i

li
106. Advances for the purchase of motor or other
Union Territories.

li conveyancbs and other interest bearing advances to 110. The same proced\rre is to be followed in'the
iil individuals or units are adjusted under "sub head (1) caseof an individual transferred from State Govt. to
Defence with an outstanding balance of advance
l'
I
l,
Ii
under Major liead P-loans and advances by the
Central Government". Advances not bearing granted to him. The amount recovered by C.D.A.
I
ti
I interest, e. g. Advances for the purchase of oflicers'
will be passed on to the State Gow. department
through the settlement accounts in respect of P&T,
tr
I
Major Head
mess equipment are also adjusted under
Railways and Department of Supply in the Ministry
P-Loans and advances by the Central Government of Supplies and Rehabilitation and by payment by
but under sub head(2) Minor Head (Regimental and cheque or draft in respect of those serving with or
other Loans Defence) thereof. The detailed rules from the Deparments/offices of other Central Minis-
regarding Debt Head advances are contained in tries and the Departments,/oflices of the State Govt.
Defence Account Code. and Centrally Controlled Union Territories-

27

4-tlc(iDA/ND/92

e
 :1:*i:,-;==

AUDIT OF RECEIPTS AND RECOVERIES [111-117

CUAP.4l
mairitained in India. The payments made to them by
111. Blank.
iii. ffigft Commissionet aie accounted for by him as
112. Blank, in (a) ii), (ii) above. In order to enable necessary
,"ti"it teing'taten in respect of pay and allowances
maintained in
Advances to service personnel by Indian
representatives ;hi;i;rtu""-to be adjusted in I'R'L'As'
abroad PaYment & recoverY of ila;;irr" --ttt
Higrt Commissioner will send copies.o^f ihe
to the C'D'A' (officers)/(Other
(i) In the United Kingdom
;A;;i:-tht Naval Pav office' and A'F' Central
""q"i',t""".
R""orrrrt. Office as and when the advances are made'
113. (a) Service personnel attached to or serving
on
in U' K: C"pi". .f i"timations regarding p-ayment of advances
tfre staff of tn* Higtt Commissioner for India ;" i;;il Naty and Air-Force officers andthemen will
ufto U. t"n, by the High Commissioner to C'D'A'
(i) The pay accounts of such ofhcels and rnen
'-"r. will
*uirrtuined by High Commissioner' All -in c.o.n. (Aii force)' These Controllers
Ci;;t u"a required to be
payments made to such individuals other ;;;";; auclit tliat all payments
int.R.L.As.are duly adjusted therein' The
than those which are compilable to Debt ""tio"ea
;;;;;;;.. will be courpiled to the appropriate heads
Heads, are comPiled bY the High Com- of account.
missioner finally under the pay heads in his
monthly account of disbursements on behalf (ii) In countries other than the United Kingdom-
of the Government of India' The expendi-
ture is brought to account in the Indian 114. (a) The pay accounts of Service officers serv-
books ty the C'D'A' Central command i"g in cluntries-other than the United Kingdom con-
Meerut in the manner laid down in para 13? iiti". to:u. maintained in India' The advance made
Defence Account Code' The advances of i"^-tft"* by the Indian High- C-ommissioners/
PaY are treated in the
same manner' Ambassadori ure adjusted by thg latter in their
u""o""tt with Controller General of Accounts other
who
(ii) The advances on account of purchase of rru..", on debits to the C'D.A concerned' In all
motor cars and other debt head advances are i..p"",t, the procedure in para 113(b) will generally
debited to India through Inward London be followed-
Account Current of Defence Services and the
monetary settlement of these transactions is (b) After advances paid ou-tside India have been
got effected centrally by the C'D'A' C'C' tufi." o"tt by Controllers on their boots' they will be
tdeerut with the D'A'G' Maharashtra' Tran- J.utt *ittt, in all respects' in the same manner as the
sactions pertaining to other Controllers are advance paid in India.
passed ott ty the C'D'A' C'C'^Meerut to the
C.D.A' through Defence 115. The I.R.L.As.of J.C'Os/ORs etc' will continue
"ool.,o"a "xCilung"
account for compilation to the appropriate
to b. -uintained by the P.A'O' but nominally' Os
debt Heads. The recovgries effected are
ifr"it pttii"g to the staff of the Military Attache/
nJ"irot. abioad other than United I(ingdom; pay
similarly passed to India for final adjustment slips will be issued by the P.A.O9 to-the Embassy/
bY the Controllers concerned' iiigrt ci*mission' it e monthlv debits forCom-^ the
(iii) Any portion of advances, whether of pay or ori-.ttt made by the Embassies/High
of those pertaining to Debt Heads of Li'tti"". to the Militiry personnel on the authority of
puv riipt are received by the C-D'$r (ORS) through
accounts, remaining' outstanding against the botrt.ott"t General of Accounts duly supported-by
individuals on their transfer to India will be ih.-- otiginal salary bills of the individuals' The
noted on the last pay certificates' The debits iuitt U" centrally adjusted by charging the
amounts will be converted at the official rate amounts to the relevant Service heads' The par-
of exchange and noted in the appropriate ticulars contained in the salary bills will be com-
registersl n.l'as' The recoveries' as and -""i""t"a to the P.A.Os. for audit and incorporation
when effectecl in authorised instalments' will of the details in the nominal accounts of the person-
be compilecl to the appropriate heads of *ui"tuined in the P.A.ds. As regards air men and
accou nt.
".f
sailors, see chapter 15 and 16 respectively'

(b) Service olficers and men proceeding to the U'K' 116. Blank.
on'courses of instruction and temporary duty-The
p^V-u""o""ts of such individuals continue to be 117. Blank.

22
 Cuar,. 4l AUDIT OF RECEIPTS AND RECOVERIES
[1 18- 128
Recoverics of Incorne Tax salaries, etc. drawn by them during the year, the
118. Recoveries of income tax are made with amount of income tax and super tax recove:ed from
rcference to act 43 of 1961 and orders issued by the them should also be rendered to the income tax
Government of India from time to time. For a-syn- authority concerned, as well as the assessee, within
opsis of such orders see fncome Tax Rules 1962 thirty days from the 3lst day of March each year.
publishecl by the Central Board of Revenue, Gor,t. of
India. New Delhi. 122. A statement showing the details of payments
made to the contractors and other non of{icials will
119. In determining the rate at which income tax be sent quarterly by Controllers lo the Commissioner
is to be levied, it is necessary to ascertain an of Income Tax concerned as notified from time to
individual's total income from salary upto date. The
time in the proforma pr.escribcd for the purpose with
rate at which the tax has been deducted, is probably
a view to enable him to be in possession of informa-
total income from salary upto the end of the linancial
tion regarding the amounts received by the contractor
year and the rate of tax appropriate to such total
and other non officials.
incorne. When an individual reverts from a higher
ra(e of salary to a lower rate or where on account of 123. A list ol disbursing of{icers with rheir
absence on leave ex India the rate of tax applicable designations and stations where their offices are
to the total salary likely to be drawn in India during located under the audit jurisdiction of the Controller
the whole year is lou'er than would have been the of Defence Accounts should be sent to the 'com-
case had the salary been drawn in India through out missioner o.f Income Tax concerned with advice to
the year, the tax should be deducted at the rate Government of India, Ministry of Defence ancl
appropriate to the probable total annual income in Ministry of Finance (Revenue Division). Changes
India having regard to the total drawn upto date and in the first list should be rendered to all concerned af
the rate al which salary is likely to be drawn for the the end of June every year.
rest of the year. Any excess deduction in previous
124. When deductions of income tax from salaries
months due to the fall in rate should be adjusted in is made at source, an annual consolidated receipt will
the first pay bill in which rax is deductei at the
be issued to the person from whose salary income tax
towest rate, provided this is done in the same finan-
cial year. Similarly, if an individual is promoted to
.
is deducted ar source.
a higher salary and the result is that the rate appro- 125. When oflicers are transferred from one audit
priate to his probable total income is increased not circle to another, the total salary drawn up to date in
only will tax at the higher ratebe deducted in subse- that financial year and the total amount of income
quent pay bills but any deficiency in previous deduc- tax deducted thereon should be noted in the last pay
tions due to the rise in rate will also be made goocl in certificate, which should be accompanied by detailecl
'recoveries
the first pay bill drawn after his promotion. Any statement of the made monthlv and the
necessary final adjustments may be made in the last rebates allowed.
month of the hnancial year. No cash refund of
126. Rebates of income tax will be allowed on tife
incorne tax excess recovered during any year, can
Insurance premia paid and contributions made to
howevet be made by the Defence Accounts Depart-
any Provident Fund to which the provident Fund
ment without the authority of the income tax
Act 1925 applies, with reference to the orders issued
officer concerned.
from time to time. in the authority of declaration ren-
120. An annual staternent showing figures on dered annually by the individual (asiessee) con-
account of income tax and super tax compiled in cerned, and original premium receipts issued by the
Defence Services Accounts ro end of March (Final) companies will not ordinarily be looked for in
will be rendered by the JT. C.D.A (Funds) Meerut to audit. While finally assessing the income tax, the
the Central Board of Revenue before the close of income tax officer will call for the premium receipts,
July. Any further figures relating to belated if considered necessary, from the officers direct.
adjustments rna.re after the close of the account for Similarly standard deduttion ,r pr..".iU"J from time
March (Final) will be intimated separately. to time at source while calculating income tax
payable.
121. An annuar statement, showing the names and
addresses as known of individuals under the audit 127. Blank.
control of a Controller of Defence Accounts, the 128. Blank.

23
CHAP.4l AUDIT OF RECEIPTS AND RECOVERIES 1129-t32

Recovcries of value of horses purchased by high 132. The following procedlre will be observed for
officials the settlement of claims on accounts of leave and
pension contribution in respect of Defence Services
129. Recoveries of the value of horses purchased
Officers and others lent to foreign service. In such
by the President, Govemors of States, Chief of the
Army Siaff and other officials referred to in para 958 cases the Controllers will make standing arrange-
Regulations, for the Army Revised edition 1962 will ments with the foreign employers to ensure the
be iffected by means of valuation statements at the payments on due dates. of the cotrect amount of con-
sale price given in clause (d) thereof. .In the case of tributions monthly in each case. without the submis-
horses supplied to the President's stable, a statement sion to them by Control.lers of monthly or periodical
showing the valire of the horses together with the claims. Under this arrangements, the primary res-
rolls received from the reamount depots will be sent ponsibility for communicating to the foreign
to the Military Secretary to the President at the end employers concerned the correct rates of contribution
of each calendar year and on acceptance of the payable by them monthly and for intimating to them
figures by him, a Military receivable order will be the periodical changes in such rates will rest entirely
sent to him to pay the amount into the treasury. In
with the Controller responsible for watching and
the case of other o{ficials similar statements and
receivable orders will be sent'to them direct.
auditing the recoveries. The Controllers will also
enter in the register in IAF (CDA) 164, the period for
130. Blank. which each standing arrangement with the foreign
Contributions towards leave allowances and pensions of employer is intended to last and rate which will be
officers and others lent to foreign service and op'erative dqring that period, and check the credit
passage contributions of such officers received monthly with reference to the amounts due,
as shown in the register. These credits will be noted
131. A register in IAF (CDA) 764 af officers and in the register which will be inspected every month
others who have beeu lent to Foreign service from the by the section officer (A)/AAO.
audit area of a Controller of Defence Accounts
should be maintained by him. to enable a check to be (i) Foreign Service in India.-The first intima-
exercised over the recovery of contributions. This tion for or the periodical changes in con-
register will be posted on receipt of the orders of tribution towards leave and pension will be
sent by C.D.A. Concerned direct to the
competent authority sanctioning the transfer and the employer concerned requesting him to remit
entries will be examined as 1o their correctness and the amount due on these accounts either by
initialled by the Gazetted Officer in Charge. A cer- 'cheques or demand drafts which would
tificate of the date of nr.aking over charge. and of invariably be crossed. The amount due on
receiving charge of the new appointment (and in the account of leave and pension contribution
case of Government servant for whom service books should noq on any account, be credited in
are maintained, the service books) should be called cash in the nearest treasury. On receipt of
for, necessary notes in respect of the order sanction- the cheque or demand draft, the C.D.A. Con-
ing the transfef, the effect of transfer in regard to cerned will take necessary action to realise
leave admissibie during the foreign serviqe and any the amount and credit the same to govern--
other particulars that may be considered necessary ment accounts.
will be made in the service books under the signature Note : In all cases of transfer to foreign service in
of a Gazetted Officer, and the service book retur- which the liability for making contributions
ned. On receipt of the certificates the fact should be on pension/contributory provident fund and
noted. in the register. All orders subsequently leave salary rests on the transferee, it shall be
received regarding such officers etc on foreign service necessary to secure a lettbr from the
should be recorded in the register, as well as orders transferee addressed to the foreign employer
issued by the CDA for recovery of interest or of con-
to pay the Government qf India, from his
salary a specific rnonthly sum which would
tributions in arrears. also the cause of the con- be based on foreign service contributions,
tributions ceasing to be realised owing to retransfer' which the employee himself has to pay. ' The
death, dismissal or any other cause. ln cases of re- issue of such a letter would enable the
transfer to GovL Service the fact will be recorded in foreign employer to lawfully effect the
the service book which should be called for where necessary deductions from the Government
service books ate maintained, and the service books, servant's salary and remit to the Government
returned to the office to which the individual has of India, as provided for above.
been posted.
24
 Cuar. 4l
AUDIT OF RECEIPTS ANI)
RECOVERIES
(ii) Fo_leigl se.ice out of
lnaiu .*".oiffi
firsr srarement of or irr*"irrioai"ur (iv) The Controller of Defence
[132-13s
Y.[-Itl:
changes in contribu tions ponsible for seeir ng that A;;;;G
*i,i'u.' rJ# iTl"fJ ,q shown
chn.,,- i- all contribution due,
C.D.A. Concerned direct
io-ifr."'fo..ign as in +L-
rhe rigister. in-,"r'fi"Ii
lri,
employer.' In case- trre roi.igi a19 naid on due daies.and
rhat officers and
an account with the ContrJller"*olon!, rru, foreign -r..*;.
;i;lii."'o'.1*o,
d."i.rr of
Acc_ounts he win b. ."q;;;;;Jirii""jn".a l_,H:.I .
rnumatron when rheir
ci'edits for the amounts due
contribuion.
arrears and that they are flfii"r.
with the Controller C.n.*i ,i in il ;";;;r: penalties to which ttriy
i"fo.*"a?^tfr.
a""""" fZl to non?ayment. rn.-co"t.oit".liffi lrvirrg
uecome
to specify in his. accounts the *iri
"ii. i"
C:PA, in whose uooks-the particular the resister the date t_v *rri"n-iir";;;l;i",
llll:"pt" "..ii,i'*il u.
(3) _to ;l;,.-'il;'",,io'ntr,,, contriburions in .ugi, ""o*#urr,
31ct
accounts with the. Contrott". expected in his officeq* ;;;
Accounrs in which ;l;;'"^ C"rrrr"ot of employers.
from tt. for.ig.,
appear. Th6 credits-zrppearing "Jiiii'" .il
;r, it }o..ign (v) Interesr *l,l^?.:
9"^*l accounrs *ilr ;; ;;;;'"j'",
C.c.Aj_ ro trre C.D.A. C"nJ;;",r;
" 'uli
jrr. ,n" sion and Ieave :lulg.gd
on all. overdue pen_
contlbutions-in accordance
ter will watch the concerned "ii ,"u yilh lrpplemenrirry R;i;'3;i as amended
receipt of information calleJ credits oll vide C.S. No. 921.. wh;; ""r.aii r";"il;;;
f". U, i,j*'", t:l
above. In case the loretgn employer and pension contributions i.s
has through th,e_ exchang";;r'd.;."r adjustecl
account with the C.G.A. -
The 'a.ii;.
"to,r-no
acqounts.
will. while sencling rrur"*"nr'ofion- rhe dare frorn whic"h l;;;;;:;
payrnenrs is-- chargeable beratect
"q1neg
tributions. to hirn, reqrreit
him--to-'p"ay'the should",b. e;r".
amounts into the nearest treasury mined as follows:l
ders an accourir to the C.G;. *hirh r"n_
name of the treasurv and.
J"i'rr"r"'rrr" It will be assumed that payment
has beerf
the ;;;h irrl"ii.r, made on the due dates if i#"i.ai, due for a
the amounts t u.,r. u..n-ol;iiil'o;i;L," monrh (say for.the-Monih
"i l"rrrrvi.i.
that treasury. If this melhod
i, not'poi.iUf., aflorded through rh;-;;l;g"
th e foreign ern pto yer
il
*it i ;,
lor-credits for the amounts ;";";"";,r';;r"
settlement fo, tfr"- t-fri#
account/..
U.i"g pu.."? to
India through the Indian r*ui.ii"r",iiigr.,
,account
March), if nor, interesJ rvifi'U. "r;,h G.
.
against the borrowirrg Corr.-_ent charged
comrnissioners abroad
arnounrs.by means of bank"r-i;"*;;;il"lr,"
t6th of the third _;,h-i;.^Irom from the
araits. ;ili;l";". March in the ab-gve i*L),".1,io the l6th
rs suitable. the end of
Notc l: Transactions with the Government ls T"1,Jlpreceding ir.rr, i-#rri.h
11.actually -^^-'r rhe
'.e vrLutt
credir
of ADEN received.
are settled rhrough the a.C.
Mahu;l;;, (vi) If a Governmenr aAn,o-r :^ .,--
Bombay, See paia 156,
Code.
tef";;; Accounts ilqwillilb9 ,esponsitl"
ro rei gn
concerned
:??ffi ,'h :':nT,':?i,":?
Note 2: Tiansactions in resp_ect of Australian Govt. lor obtaining
from him. ar tlre rime Jitri;f;;,;
will be.sertled centrally ov trr" declaration
Command bv acruat-ie;;; d.di. Central
showing that he Iru, .."J-una
rules which are to regulate
orfr..rtooa th"
Commissioner for Australia, Eo? ,n. Higt his leave.
para 157 Defence Account in"inaiu. See The liability of leave salary
(iii\ Foreign Service with the.
C;"' of officers and others on
deputation to another c;".n;;;;
U.K. Government, the Central Government * i"o".,rent of
Jtatements for
- pension
recoverable from,the U.K. "orrtr.ibtltiorx
Govt.
of alt oflicers and ,".; l;";;'il,ui ir, ..rp"", 133. The liabilirv for^leave
co,o.rn_ futt by the department frgm 1alary will be borne in
ment will be *lrl"'ir,rrrl'bi*.
,tAFZ-200a and^.preparea i" ,Lt,rii" lg42 in proceeds on reave, *l^.ll:-l -b; ,..rrrn,
renderea' in' tl,iir"llers ment or a borrowins department
i, il; p#nt Jepart-
the C.D.A. Central c"__r'na"Jrrrrlrurry to *ith;h;", fr. i, oo
recovering the amounts".through -it. fo, depuration. In thJ case
gf Cort.- ieLrrts wtro
avail of leave on termination-Ji'rfr"ji'aeputation
Commissioner for Inrtia. -Sr?L_"n,Uigt,
I

for period, rhe.liabilitv ro. I"are

leave r"d sal"o *iii't" borne by
lulu.y
recoverable *iiit
_;;;r;e."'1;;ll.iuu,ron
from the--U.K.
the departmrnt *.hirh rrn.rionJ^in;;"r.
c"ovt. b.
ulso
1e1d1ed by Controll.r. to tt. C.t.a. C..r_
rral
134. BIank
Command annuallv for. .i.iiilr action. 135. Blank.

25 I
I

-l
i-.

tt
rl

it
I
.t f
I

rt'
'enep.4l AUDIT OF RECEIFTS AND RICOVERIES
\ [136*t40
Recoveries for stores issued on payment and for ser-
vices rendered.
Recoveries of Licence Fees

138. The rules for the recoveries oflicence fee, fur-

. lil6- The rules regarding
issued on payment
the recoveries for storqs niture, electricity, water, conservancy, etc. are con_
and services rendered are
Store Accounting Instrucdohrl -
tained in
con_
- taiqed in "'Regulations foi the MES- and in
''rQuartets and'Rents" read withh.ules for Supply of
Recoveries of Hospital stop[ages Water and Electricity".

,137, The r.ules regarding the recoveries of hospital 139. Blank.

Itopp_ages are laid down in Financial Regulaiion.
Part-II. 140, Blank.

26
 :::rj=-Eli::=..'

CHAPTER 5

PAY ACCOUNTS OF ARMY OFFICERS

Para
Maintenance of
I"R.L.As
Audit of LR.L.AS 141
Scalc Auclit 149
I-eave procedure 154
Records of service 757
Audit of Army List 158
Pay accounts of Indian Army Officers 1s9
serrring ex India
I 161
Maintcnance of IRLAs 144. All Part II Orders will be adjusted without
any delay. Before adjusting a partII Order it will be
.141. The Pay accounts of Army Offrcers serving set!n:
with Army units and formations and the pa;
accounts of all Civilian Gazetted Officers ,.*irr! (a) in the case of actihg promotirons
with Army units and formations located in field areai (i) that the officer's rank, name and
are maintained centrally by the C.D.A. (O) on the
appointment tally with those shotvn in
LRL.A. system. en f.n.f-e. is op"n"a
of!::I coming into payment of the^C.D.A. for each
(O) and
,. the relevant IRLA maintained.
(ii) rhat the appointmenr is provided for in
exhibits a complete record of credits and debiis relat-
the authorised establishment and
ing to his accounts. (iii) that the promotions, where made, are in
accordance with the promotion rules;
- -142. AII events in the service of an officer affecting
(b) in the case of
his promotion, pay and allowances etc. are notifiecl
CDA (O) by the administrative authorities concerned
ti leave
that the title to leave as appearing in part II Orders
through the following:
lglifnng the grant of leave is audited in
full.
(1) Daily Part II Orders published by the O.C. of
the unit/formation on the strength of which .The changes in entitlements to pay and allowances
the concerned oflicer is borne with reference to the data, furnisi;e ilit;;
will be au thorised on .Authorisation .lip.;aDA(bJ;
";;;;
(2) G azette notihcations. 243. The authorisation slips will Ue airiy embossed
with the 'Payment Authority' seal.
detailed for drawing the pay and Note: Gazette notilications will be dealt with in the
,-The -p_rocedure
allowances of officers in I.R.LAs on tte basis tf the same way as Part II Orders so far as promotion
data furnished in the above rnentioned documents is
is concerned. Substantive promotion is not to be
-
described in the Office Manual part IX (Controller of notified in Part II Order. The CDA(O) may at his
Accouhts (Offic_ers)). Broadly speaking the discretion, act upon any communications if ire con_
_Defenge
procedure ls as stated in the succeeding para_ srders that otherwise over palmrent is likely to
graphs. occur. See also note under -Rule 104 FR part II
r968.
Thq I.R.L,A.s ,Ledger
-143. 1e mgintained by
of the office of thc C.D.A_(OIIicers).
Wing, 145. Personal allowances" etc, for which claims are
i"ag"i Wing i1 required to,!9 preferred liy the oflicers t" th"eij,;
grit-.t into Leitger Wing L"a -f"tg", Wi;; (O$.ge1s)_will, elgeqting travelling alowance,
.{:. T\: accounts proper aie maintained 6y I,eage?
also be
credited in the I.R.L.AS after audit. The recoveries
S1e ^U Yhi!" Ledget Wing I maintains skeleton !o-_pj,y and allowa_nces required to Ue-effecteaty
officers-paid byLidger Wing II. Ledger
I;l:Lt..of
wmg I is.responsible for fixing the entitlements-of FgSD,A. (Ollicers)'e.g. Income Tax, Surchargl,
orrrcers wrth relbrence to the events in their career
DSOP fund subscription, p.L.I., eCif, -CGFfi:
affecting pay and allowances and intimating these
TAGIF, HBA/interest, MC 'advances/in;r*q
ld.ygnc-e of pay drawn on.IAFA 1034 etc, wil b;
by
means of authorisation slips C.D.A(O) f ZqS io debited in the IRLAs. The ledger accounts will
Ledger Wing II for credit in the l.R.I,_As: be
closed monthly. Concurrentlv ivittr tfr" ctosing oi
 CHAP. 5l PAY ACCOIINTS OF ARMY OFFICERS
[14s-1s4
I.R,L.As, the salary bills (IAl' (CDA) 653) and state: p-ayment authority seal and that th€-rates
menl of. a.ccounts ($FF l0l5 revised) will be pre- of pay and
allowances entered therein are expr"ss.d in
pared,.Sjving of each item appearlrrg on
the debit and.particulars
credit sides of I.R.L.As.'
words also. ,
laf: 4 copy of the statement of accounts, will be 151. The following items in IRLAS maintained by
supplied.to each officer and the excess credits over Ledger \Ming II will be audited:
debits shown on the salary bill remitted to his ban-
kers as nominated by him. If for any leasons an (a) The arithmetical calculations in IRLAS
ofhcer's I.R.L.A closes with a debit balance, no resulting from_Authorisation Slips issued by
further remittance will be made till the Debtor kdger Wing I and all the credlit entries in
Balance has been liquidated by credits accruing in the IRLA irrespective of the nature, and
the accounts of thi subsequent months, except *f,er" arnount of credit.
the liquidation of Debtor Balance is authonsed (b) Recovery of advances drawn from the High
under rules to be either deferrecl or effected in Commission of India in the United fingdo;-
instalments. through the medium of a register maintiined
Note: When deliberate.overdrawals of advances of centrally by Ledger Wing lL
officers on IAFF 1034 in the field or in other areas (c) Recovery of lice-nce fee bills, hospital stop-
where such advances. are admissible come to the page rolls, work orders' etc, thiough- tf;e
notice of the C.D.A (Oflicers) action will be taken medium of lists prepared by the Dimand
immediately with administrative authorities for res_ Section.
tricting further drawals of advances by the (d) Miscellaneous Disbursement Vouchers.
officers concern L
147. Blank Note: The remittances reflected in the paid
vouchers at item (d) above will
linkedinto
be
148. Blank the IRLAs to the extent of l0%. The selec-
AUdit Of IRI,AS tion of vouchers for this purpose will be
made with reference to the vbuiher numbers
149. The I.R.L.As of Army Oflicers maintained by
the.C.D.f (Oflicers) are subject to an internal posi allotted in the D.p. Sheek.
audit to the bxtent of 10 percent check o. u qrruj"rly (e) Payment/recovery of authorisation demands
basis in respect of issued by 'T' wing with reference to the
original T.A. Bills etc.
Entitlement and
(ii) Disbursements as mentioned in the.succeed- Note: Ten percent of the cases where pay adjust_
ing paragraphs.
ment has been done in the non effective mI,Ai tV
Archive Se6tion is also carried out.
In addition, a review of certain selected itbms of
pay and allowances in issue or a check of the 152. Blank.
application in actual practice of any selected Govern_
ment Order etc. will be conducted as and when direc- 153. Blank.
t9d b.V the C.D.A. (O) and a'special audit report
showing the resulti of review will be submitted to Scale .Audit
him. The intention of such a review is to detect any
errors which may have remained unnoticed. 154. The scale audit is.conducted to see that the
gffectiv.e (paid) strength of Army Oin".r. in a uniV
150. Entitlement audit will be conducted solely formation as shown in the nominal roll is within the
with reference to Authorisation Slips issued includ_ number authorised in the relative peace/war/interim
ing those issued for separation allowance/special ad establishment and that the numbei of oilicer paid
hoc__allowance by and recorded in feager Wi"g in
different ranks in each unit agrees witfr tfre ,iunUii
L The entries therein will be audited with referencf shown in the nominal roll. Iimay be conducted on
to current Rules on the subject and the connected the basis of the total number of officers in the ranks
Peace Establishments/War Establishments, nominal of 2nd Lieutenant to Major (Lt Col. in the case of
rolls and. Part II Orders. It will be verified that. the AMC) in each unit/formation without regard to thi
necessary'entries made in the IRLAS maintained by actual ranks authorised 'in the unit's- establish-
Ledger Wing II are as notified in the Authorisation ments. This will not however, affect the normal
Slips and _that they have been duly attested by the audit of a.cting promctions where the existence, of a
Accounts Oflicer in Charge. It will also be veiified, vacancy in the unit in the rank concerned will
that the Authorisation Slips are duly enfaced with the be the criterion.

28
 CHAP. 5l ,PAY ACCOTINTS OF ARMY OFFICERS
{rs4-L67
Note: The scale check of units/formations where officers of the Nursing Services, Territorial Army and
the appointments are generally military but certain of National Cadet Corps), as also cases ,"garding
which are classified as tenahle either by military ass€ssment of previous pensionable service ol
officers of a certain rank or civilian Gazetted Officeri Army Officers.
of a corresponding status will also be done by the
C.D.A.(O). To facilitate rhis check the Regional 160. Blank.
Cs.D.A. will render monthly numerical returns of
C.G.Os appointed against vacancies tenable by Pay Accounts of Indian Army Officers serving ex-
rnilitary officers or C.G.Os. in the prescribed India
proforma.

155. The detailed procedure for conducting scale 161. The pay accounts of Officers attached to or
audit is required to be carried out as described in serving on the establishment of the High Com-
para 166 of the O.M. Part IX (Controller of Defence missioner for India in the U K are maintainid by the
Accounts (Officers)). High Commissioner and last pay certificated in res-
pegt of such Officers will be issued by the
156. Blank C.D.A (Officers).

Leave Procedure L62. ln respect ofofficers attached to or serving on

the establishment of Indian Embassies, High Com-
157. The instructions regarding the leave pro- missioners etc, abroad other than in the' U.K.
cedrrre are given in Appendix 2 to this code. - 'Nominal' I.R.L.As, are maintained by the C.D.A.
(Officers). The pay and allowances due to those
Record of Servicc Officers are paid by the respective Embassies, High
Commissioner etc, with relerence to the 'pay Slips.'
158. Information regarding pension serrrice of CDA (O) F 247 issued by the C.D.A. (Officers). The
oflicers (including officers of Nursing services) eli- original salary bills received in support of the debits
gible for pension under the Army Regulations is through the Controller of Accounts, Ministry of
available from the gradation pages of the Army List, External Affairs will be checked with reference to the
wherever, the publication indicates that the entries enfitlements and. items of disbursements recorded in
therein have been audited for purposes of assessment the'Nominal' I.R.L.As.
of pension. Records of service will however, be
maintained by the C.D.A. (Officers) for such officers 163._ The pay accounts of Officers proceeding
-
on IAF (CDA) 313 in accordance with ihe instruc- abroad on courses of instructions, study le"t urrd
tions contained in Appendix I to this code. Any temporary duty are maintained by rhe C.D.A.(O).
additions or corrections affecting pension service,
including cases of overstayal of leave involving forfei- 164. The detailed procedure regarding the main-
ture of service, should be reported promptly to the tenance of I.R.L.As of Indian Army Officers abroad
Controller General of Defence Accounts by the and the method of payment of their pay and allov,an-
C.D.A. (Officers). ces is contained in the Office Manual part IX Con-
troller of Defence Accounts (Officers).
Audit of Armed Forces List
159. The Audit of Armed Forces List is conducted 165. Blank.
in the office of the CDA(O). The CDA(O) is also
responsible for the audit of draft Gazette Notification 166. Blank.
relating to appointments, substantive promotions,
relinquishrnentl etc, of Army Oflicers (including 167. Blank.

29

.)-llc(;DA/N t)/91
 j
{
1
'l

.l
,:
1

:.!

ij

.t

:li
I

' I , str-qt i#i€frittA:"5 3

r€ ffi *,
qt lqtm zr feEr6 25
(srffirr 4.iiiruro-yl) .. _ *,o. AT/r/
: qer +qT iaqn'.
qr{'
i:''' iG,
"ffi*;rr'lu^TB},
".T13.1fl' "?"i liJ,i"#rnljetter N ,i
il
rii

ri
i:1

iirr rzz dtu -i

EIGI{TI
j^1rr fiqr fr{ffi (q=q is) sm ira # qn qt
FGR : c.D_A.'(o_Rs) iqdCrFi ti;Eiih:'
j_T +cr ffi, eEils Gq
READ : C.D.A. r_UCrWOd
 . l'.
.,
CHAPTER 6

PAY ACCOUNTS OF .IUNIOR COMMISSIONED OFFICERS, OTH'IR RANKS

AND NON COMBATANTS (ENROLLED)

Para
Maintenance of LR.L.As
168
Special points to be seen in conducting review of I.R.L.As
169
Scale of audit of civilians employed in lieu of combatants in A.M.C. t'71
Maintenance of IRI-As (5) Statements of acr:ounts are issued regu-
larly.
168. The Pay accounts of Junior Commissioned
Officers, Other Ran*s and Non Corrbatants (6) Recovenes of subsr:riptions to Armed Forces
(enrolled) and Non Gazetted Civilians in operational
Personnel Provident Firnd and postal Life
area are maintained on IRLA systern by the pay
Insurance Premia are effected at the
Accounts Officers attached to RegimentaL or Corpi
Centres. A concurrent review of all I.R.L.As and rates and agree rvith the schedules."o..""i
Such
connected documents e.g Acquittance Rolls, Family recoveries are not effected from men whose
allotment Money Orders etc, is conducted by thl accounts exhibit heavy de;btor balances.
review group of the P.AO. to the extent shown in the
Annexure to this Chapter. (7) The pay slips in respect of J.C.O./ORS
etc. on the staff of military attaches to
Special Points to be sech in conducting review of Indian Embassies Abroad are preaudited in
I;R.L.As full before transrnission to the authorities
abroad.
169. The following special points should be seen
in conducting the review of I.R.L.As: 170. Blank.
(l) The authoriry for the ofrning of I.R.L.As is
quoted therein and LRf-.As. (including con- Scale sudit of civilians employed in lieu of cornbatants
tinuation sheets) are y'uly authenticated. in A.M.C.
(2) Inconie tax is regul#i] ,."ou.red when the 171. When civilians are employed in lieu of com_
taxablc income exceeds the minimum limit batants, the scale audit .wilt be done by the C.D.A.lq.kn.tO
prescribed from time to tirne. (OISFIe$tb-M€€mt. For this purpose, paying Con_
(3) Family allorment is isqued only in the case of trollers will submit returps to the CDA (bRs) North
personnel authorised to do so and it is res_ Meerut, quarterly, for the, quarters ending 3lst March,
tricted or stopped, as the case may be, in the 30th June, 30th Septembr:r and 3lst December show_
case of personnel heavily in debt. ing particulars of the inctrividuals employed in lieu of
combatants irr AMC establishments. CDA (ORs)
(4) Advances of pay are regularly being debited North Meerut, will also ensure that the number of
and they are within the limits of respective Civilian Dental Hygenisrts employed in lieu of corn_
entitlements. If there is any appreciable batants is within the ar,rthorised limits.
time lag since the last advance debited, the
matter is promptly investigated so as to 172. As Combatants Sanitary Assistants can be
ensure that the individual is really effective posted against Civilian Sanitary AssistantsAnspec-
and has not drawn advances other than those tors, C.DA. (ORs) North, Meeru1 will submit quar-
already debited. If heavy advances, not terly returns to the C.D.A. Concerned showinj the
authorised by rules are drawn, the matter has number of Combatants Sanitary Assistants p?id by
bden promptly raken up vith the paying him during the quarters ending 31st Mar, :Oth June,
officer with a view to restricting future advan- 30th Sep and 31st Deceurber, indicating the name of
ces or with higher authorities in case the pay- the unit/formation to which the individuals are
ing officer fails to respond promprly. If attached; to ensure that the total strength of Sanitary
leave advances are drawn, they are limited to Assistants S3nctioned for the unit/formation is
the extent authorised and shown*separately. not exceeded.
 CE{p.q
'...:".'!:
pAy AccouNrs oF tr.iNIoR gg-lgg1;-lg1rE1_o_lTgpp orrrEn RAI{Ics Alw No\I lrr31*.*
i r. .-., | .
-,. ,.'

.a., :

3l

\_
Cuar.6l pAy AccotrNTS oF JUNIQR COMMISSIONED OFFICERS, OTHER RANKS AND NON [Annex.
COMBATANTS (ENROLLED.)

ANNE)flJRE TO CHAPTER 6
5. Remittances on account of final settlement:
(Referred to in para 168) Totals of M.O. lists and
posfings therefrom into
Extent of review of IRLAS (IAFF-1019) of J.C.Os
I.R.LAs'2%.
ORS and NCs(E) and Non-Gazetted civilians in
operatlonal erea and other connected documents. 6. Misceilaneous vou- (a) Miscellaneous credits
chers of Rs. 50 and above
Note: The.review of I.R.L.AS will in general be car- 1007o.
ried out to the extent prescribed below:- (b) Other vouchers 2Yo.
The restrictioii. of review will be dependent on the ?. AF.P.P. fund (a) 2Ya of all irritial
fact that the I.RL.As maintained in the ledger groups entries.
have bden kept reasonably well in the past and have (b) 2% of all changes.
been free from serious or numerous defects. If the
(c) 2% (subject to a
review of cefiain items indicates numerous
irregularities and deviations from the prescribed pro-
miaimum of two itenns) of
cedure, the head of the P.A.O. should extend the cases where theie is no
scopc of the review using his judgeurent and discre- recovery as observed dur-
tion'as to how best this should be done, and to what ing the check of sust-
extent, teporting the facts in all such cases maries to ensure that sueh
specilically to his superior authorities. cases do not come under

1. I.RLAS of the total number of

?-5s/o
purview of AI 4/s/6t.
a .I.R.L.As binders will be Note: This item of check will be conducted
subjected to a general
immediately after the closing of accounts so that any
scrutinyin a quarter and discrepancies may be got verilied in succeeding
thus all IRI-AS will be quarter.
reviewed every quarter or
alt€rnate quarter. The check of these items will be conducted fmm
Nbte: I.RLAs, transfered out to other P.AOs the vouchers etc. into the I.R.LAs and not vice nersa
should (if not alteady done) be taken up for review except in the case of item 6(a) where it witl be
irrespective of whether or not they fall in the 'lot'pro' checked from the I.R.LA into the vouchers.
grammed for review in the quarter. 8. P.L.I. recoverieq Initial recoveries and
2. Audit cage I.RL.As Will be subjected to a changes 2%.
general scrutiny to see that: allotment (a) of the entries in the
9. Family 5%
(i) all changes have been list for the quarter.
checked by the ledger (b) 5% of the totals of MO
superintendent and his ini-
50lists and the corfectness
tials exist in token thereof.
(ii) rates of paY shown are
of M"O. comrhissions
appearing therein.
correct and
(iii)
corresponding adjust-
(i) FAM.o. so
lists
I
I
ments exist in the accbunt-
(ii) Initial entries, [oo%
ing iage;
discontinuao". otl
3. Part II Orders . (a) Entitlement items 5%
changes in rates.J
(b) Other items 2Vo
The check will be eon-
4. Advance of Acquit- l% af the tntal nuurber of
ducted from the entries
tance Rolls items of acquittance rolls
received during the par- in the I.R.LAs into
ticular quarter selected for
,M.O. lists and not
revieiv. vice versa.

32
 I
I
f
t
i.n*n.q OF JUMOR COMMTSSIONED OFFICERS, OTI{ER RANKs AND NoN [Annex.
COMBATANTS (ENROILED.)
j 10. Summaries abstract of and (c) Grand total of closing/
I
charges-
opening balances in the
I

t (i) Grand mliry Check of individual surn- summary 100%.

f
E
maries with the grand
summary l0%. The iheck (d) Terminal and initial
will be c<rnducted from the
individual summaries. balancesin the transferor
(ii) Abstiact of re- Check of grand summary
or and transferee. - Sum-
ceipts and with abstract of receipts rnaries in respect of
charges and charges and other IRLAs, transferred within
vouchers l\V/o. Abstract the P.A.O. in a quarter !

of receipts and charges l07o of IRLAs str trans- :

into grand sumrnary and ferred.
vouchers and not vice
versa.
(e) Terminal balances in
(iii) Field deposits (a) l0% of the opening IRL,AS transferred to or
balances in the summary
for the current quarter received from other
with the closing balances PAOs 100%.
for the previous quarter.
11. Advances PAOs Periodical reconciliations
(b) 10% of the opening
and closing balances in IJAV\.
the summary for the 12. Complaints
current quarter with those Complaints received , in
in the I.R.L.AS. ledger groups 10%.

33
i
i
t

t
t
rI
CHAPTER 7
I
I PAY AND ALLOWANCES OF CIVILIAN GOVERNMENT SERVANTS
I
I
lra Para

F General rules 181

t
Gazetted' officers
['; Audit of pay bills 191
I Services books
! 199
I Leave account
r, 2M
Scale audit 205
t
t
i Non-gazetted establishments
F Preparation and disposal of pay bills 208
g

I
Audit of pay bills 209
t Leave account 217
I Compensatory allowances and honoraria 218
r Recruitment to posts and services 221
Advances for payment to industrial employees
i
2?.3
Pay bills of civilian personnel of Territorial Army Units 225
I
r
i
Gencral Rules 183. The essential points to be observed in the
i
audit of pay bills beyond the test of formal complete-
I
181. The audit of pay, leave salary and other ness of the voucher are:
I allowances admissible to the various classes of
t Government servants is mainly conducted with (i) to check the title of the Government servant
t reference to the rules and regulations governing their to the pay drawn by or for him. i.e. that it is
r
f conditions of service. These rules and rdgulations claimed and is adrnissible in respcct of a post
are referred to in this chapter as "service rules". to which he has been duly appointed, and of
t which he is actually incharge; and
l
p
L82. No person may be appointed in India to a
[, 'post in Government service without the production (ii) in the case of Government servants who.se
F
of a medical certificate of health in such form and pay is drawn for them, to .verify that they
I
l signed by such medical or other ollicers as may be receive tlr.e rernuneration io which thev
f
t prescribed by Government. When the scruice rules are entitled.
I require the production of a naedical certilicate on
appointment of a person to a post in Government No claim can be admitted for service in a
F. Service. Audit must verify that a certificate to the
effect that the requisite medical certificate in the pres-
post not duly sanctioned, or for pay not
assigned or provided for the post held.
F

r
cribed form has been obtained in rcspect of the
Government servant, is attached to the first pay bill 184. As pay bills are ordinarily paid afrcr pre
tL of the person concerned submitted after such
appointment. In the case of Gazetted Officers, the
audit any pay or allowances which may be inailrnis-
sible will be disallowed in audit and retrencherl. In
above certificate should be signed by the competent ordinary circumstances, therefore, it will not be
authority to whom the medical certilicate has been necessary to watch recoveries of disallowances. In
submitted and in respect of Non Gazetted staff the some cases, however, pay and allowances may be
same should be signed by the drawing and dis,burs- passed provisionally in audit, e.g. for want of last pay
ing officer concerned. The Govt. rnay however, dis- certificate or other causes. In such cases, thc oflicer
pense with the production of the certifi.cate irr concerned will be informed of the possibility of ret-
individual cases and may also by general order renchment, and the amount involved will be entered
exempt any specified class of Government Servants in provisional payment register and its final adjusr-
from operation of this rule. ment watched.
rffi:"ijj::,1ry*'
EoLO,p
"rq
 9gn zt

n'T"i1#l1'P;qiJj"tri?*'ti:i,:i**:
,r{l1*: X'*:, i":,'tn" ;g {ri;i?j,,,"rr,"rl
t-,
i

I
it
,ffi.ffiFifil',lg, ;*;'#l \-orrtroller for ^
(a) rhe po.st for r
arrr'J"rJr"iirt'hih pay is claimed has been
i paymenh. ;;"1 f,re-auciil"
(b) th-e o.{ficer
is enfitto.l .^ .,
i.!
Fi
sa r a
ry ; ; *;i.?il:t i,.,,1*;:X,:".1fl#*"T1,"
l,i
(c) the allowance
s

-g*p'ffgffinffi (d)
fis$jr#nii*iffi',,:*,rffi
the recoveri€s
on ecn^,,6. -..
188. Blank
189. Biank. liti1**.::.,#f ?;#T*"##,rl
(e) rhe-payrnent
190. BIank. ma
,Tj T#ikffi f :"j,;.T :::: H ;":.J,;f
Gazetted officers (0 the perio,
Audit of pay birs
.:.*
:,"ffr{ i*if :{;, il_; .:
##::,-
glftff{g#***;*}a,,*,*
,,':}ltif*iftffiffi ."J$:',,IT,J*:Jb.:* purposes the
roilowing
(r) Service Book.
(ii) Leave accounr.

$,t :rtifi ca res

""e'il:; "ff;"tf# ;y,3frff,g$;fi*fi;?ffi
35
 I

CITAP. 7l PAY AND ATLOWA].ICES OF CIVILHN GOVERNMENT SERV;{NIS [19s -20e

Note : In the case of an officer whose year or year Scale Audit
and month, of birth is known but not the exact date,
205. The scale audit of units/formations where
the lst July or the 16th of the month respectively the appointments are generally military but some of
should be treated as the date of birth for the purpose which are classi{ied as tenable either by military
of determining the date on which he should be held officers of a certain rank or civilian Gazetted officers
to have.attained the age of superannuation. of a corresponding status, is done by the C.D.A
196. Blank. (Officen). To facilitate this check, the regional con-
trollers will render monthly to the C.D.A. (Officers)
t97. Blank. statements showing unit/formationlcorps-wise, the
number of civilian oflicers appointed against such
-r 198. Blank. vacancies. The statement will contain a reference to
1
the peace establishment. The number of sanctioned
Service Books posts tenable by military or civilian officers and the
199. Service records of all civilians Gazetted number of civilian oflicers actually paid against such
oflicers of Defence servides shall be maintained in postd. See also note below para 154.
Florm MSO (T). 27 (service books) by the Head of Note: These monthly statements will also include
offices/formations i.e..the lower formations of all the civilian Nursing sisters (Non Gazetted status)
three services with effect from 1-6-81. Service employed in lieu of Nursing Oflicers of the
records of all group 'A' and 'B' civilian officers of M.N.S.
MES shall be maintained centrally by the Central
Record Office (Officers) Delhi under the supervision 206. The scale audit check on the substantive
and administrative control of E-IN-C branch, Army cadre in the case of C.G.Os of the A.M.C. employed
Headquarters, New Delhi from February 89. oR an all India/corps basis under DGAFMS/DMS
(Army) will be carried out by the C.D.A C.C. Meemt
200. The service books.is intended to include all on a half yearly basis. For this purpose the
important facts in the oflicial career of an officer DGAFMS/DMS (Army) will intimate to the C.D.A
including ofliciating appointments. Officiating C.C. Meerut the existing permanent strength of
appointments should be distinguished from substan- C.G.Os serving under their control and their dis-
tive appointments. Leave of all kinds, absence tribution. The Regional Controllers will render
without leave or in excess of leave or of jbining time quarterly by the l0th of the second month following
should be noted across the pages, and if any period the quarter to the C.D.A. C.C. statements showing the
be allowed to count as service, which is not ordinarily paid strength of C.G.Os month wise and formation
allowed by the rules, or if any special privilege or dis- wise (the quarters being reckoned from January to
ability affecting pay, pension or leave, attaches to the March, April To June, July to September and October
officer, the fact should be similarly noted with quota- to December). The C.D.A C.C. will then con-
tir:n of the Government order. solidate these statements including those of his own
lt
Note I : The date of birth should be recorded at office and will conduct necessary check to ensure
t: the heading in every case. that the paid strength has not exceeded the
l{ authorised/sanctioned strength. In cases of excess
Note 2: Entries relating to punitive action taken over lhe authorised sanctioned strength, the C.DA
r in regard to an officer should not be made without C.C. will be responsible for getting such excess
special orders of Government If an audit officer regularised in consultation with DGAFMS/DMS
considers any such entry to be indispensable for (Arny).
audit purposes, he should refer the question to the
Government of India through the C.G.D.A. who will 207. Blank.
decide what form the entry should take. Non Gszetted Establishments
2OI^. Blank. Preparation and disposal of pay bills
202. Blank. 208. The detailed procedure'for the preparation
203. Blank. and disposal of the various copies bf pay bills in res-
pect ol non-gazetted establishments is laid down in
Leave Account Offrce Manual Part II.
Audit of pay bills
2A4. The leave accounts of all Civilian Gazetted
Officers will be maintained .by the executive/ 209. The pay bills will be audited on the lines
administrative authorities with effect from l-6-81. laid down in paras 191 to 194 above.
36

k*
 CItnP. Tl PAY A}.ID ALLOWANCES OF CIULIAN GOVERNMENT
SERVANTS
I2A9-221
It rvi[ be seen that all acting and leave allowances . Compensatory allowances and
are admissible under the regulations, that increments honoraria
in time scales of pay, where drawn, have been earned 218. In auditing sanctions to the grant of any
by qualifying service and that the establishment for compensatory allowances, fees of lionoraria to
which pay has been drawn has been sanctioned Ly Government servants, the following. general con-
the competent financial authority.
."ditions shall be kept in view:_
+ Where grant of advance increments is sancticned
y{.r sp_e9!! government lerters, for instance, to (1) unless in any case it be otherwise distinctly
Defence Cidlian employees serving in a non gur",tt"d. provided, the whole time of a Government
-gt"d.
technical/scientific on iassing Telecom- servant is at the disposal of the Government
munication, Aeronautical Engineiri.g o, o, which pays him, and he may be .*pfoy.Ai"
acquiring an Engineering iegree, "such "iurr"
advance any rnanner required by proper authority,
increments 3hould be regulated-in accordu""" *iif, without claim for additionil iemuneration,
the special GovL Orders issued for the pulpose. whether the services required of him are such
- 210. C.DAC.C. Meerut will as would ordinarily be remunerated from the
be the Central Scale revenues of the Central or State Government
Audit Agency for carrying out the scale audit in res_
.of civilians of or from a local fund.
pect the AMC (serving under
DGAFMSIDMS (Army) sanctioned on un ail lndia/ (2) the authority granting or permitting a
Corps basis). The scale audit will be done on a Government servant to receive urry iorr-
q-uarterly, basis, the quarters being January to March,
orarium or fee is required !o pay duj regard
April to June' July to Septembir and bctober to to the principle enumerated in i above -and
December. For this purpoie, the C.D.A.C.C. Meerut also to record reasons justifuing the grant of
willreceive from the iuthorities controlling the the extra remuneration to the-GovJrnment
establishment on an all India/Corps basis, a monthly servant concerned; and
' returR of authorised
strength relating to various cate-
gories. The correctness of the figuies will be chec- (3) the amount of a conrpensatoiy allowance is
ked with reference to the ordeis sanctioning the to be so regulated that the allowance is not-
establishment The paying Controllers will alsJ ren- on the whole a source of prolit to the
der a quarterly statement -to the C.D.AC.C. Meerut
by the 10th of the second month following the quar- . recipient.
ter, which will show separately the paii strerrgth 2lg. The detailed rules regarding rhe grant of
month-wise under the various of itre
establishment sanctioned on an"at"gories
to Goveinmen-t scrvants are
fees, honoraria, , etc.,
alf India corps F"-"l r-"_Chapterfil Financial Regulations patr I, vol.
basis. On_,receipt of these statements from &e pay- I. '
1983 Edition.
ing controllers including that of his own office, the ?-:

C.D.AC.C. witl consolidate the statements and will 220. Blank.

conduct the necessary check to ensure that the paid
strength has not exceeded the authorised/sanctioned '

strength. In cases of excess over the authorised/ .Recruitmcnt to posts and seryices i

sanctioned strerrgth, the C.D.A-C.C. will be respons-

ible for- getting such exces.ses regularised in - 22L:
the
(1) Auclit Gfficers are not required to watch
observance of the provisiorrs of the following
consultation with the.controlling authoities at Army
Hqrs viz DGAFMS/DMS (ArmV). nature ielating to recruitment or appointment tJ
posts or services, a.s these are tire concern of the
211. Blank. administrative authorities :

212. Blank.
(ai Rules relating to the representation of any
213. Blank. particular community G, any backward class
. 214. Blank. of citizens;

2lS. Blank. (b) Rules relating.to rhe proporrion to be obser_

ved in recruitment to posts and service bet-
216. Blank. ween personnel promoted from subordinlte
Leave account ranks and those recruited direct; or
217. The instructions regarding leave procedure (c) Rules relating to
are contained in AppENDiX 2. quaiifications.
educational or other

37

6-z/ccnentotgz
 CHAP. 7l PAY AND ALLOWANCES OF CIVILIAN GOVERNMENT SERVANTS
I22t-230
@ When, however, an Audit Oflicer is of the opi- Pay bills of civilian personne! of territorial arrny
nion that in accordance with any rule or order u port units
is reserved for members of a particular service ur,d
outsider is appointed, he wili call for the sanction "n
of 225. Pay bills of the civilian personnel of
the authcrity which is competent to remove the reser- Territorial Army units will be audited in the same
vation. The fact that the pay of a post has been way as pay bills of the civilian establishment of
fixed oir the assumption thai it will be held by a Regular Army units.
* member of a particular set'vice tends to show that it
was intended to resewe the post for that service but 226. In addition
this by itself is not conclusive evidence.
it will be seen that:
'Note: This (i) Thg complemenr of different caregories
check need not be applied in case of authorised as permanent staff is not exceeded
non Gazetted Government seryants. except during periods of annual training/
camp or embodiment- when es*blishme;t
(3) Similarly, when the educational and other m4y be employed upto the full strength
qualifications have a direct relationship to the rate of authorised in the peace establishment of ihe
pay admissible audit must satisfy itsef of the possris-
regular army unit on which Territorial Army
s-ton_"f the necessary qualilication before aamitting unit is raised.
the financial benefrt attached thereto. In such casesl
the verification will be made with reference to the (ii) Pay and allowances claimed for
certilication of the fact by the administrative each
category are according to the provisions of
authorities concerned either in part II Orders notify- paras 168, l9S and 199 Regulations for
ing appointmenVpromotion or otherwise. Territorial Army 1948 (Reprint 195g) as
. arnended from time to time.
222. Blank
227. In the case civilians erhployed in lieu of
$dvances for peyment to industrial employees combatants and non combatants-(enrolled) autho-
rised in establishment it should be .stcn that:
223. Advances for paymenr to industrial
(i) a
employees employed in Ordnance Depots, etc, are certificates has been furnished by the
paid on receipt of cash requisitions from the oifi"", Officer Commanding the Terriforial Army
concerned based on an estimate of the probable unit that the personnel required cannot be
amount required for payment during the month. supplied from recruited peisonnel.
The amounts so advanced will ,be -noted
in the (ii) their pay and allowances are claimcd accord_
demand register and their adjustment watched there-
ing . to the rates admissible uniler Govt.
fiom. These advances will be adjusted on receipt of Orders issued from time to time.
Temporary Labour Bills (IAEA 40) from the officers
concerned duly checked by the Local/Regional Audit 225. Blank.
Officers.
22g. Blank.
224. Blarit 230. Blank.

38
 .L
l
i

CHAPTER 8

CIL{RGES
TRAVELLING ALLOWANCE AND OTFER CONVEYANCE
Para
231
Travelling Allowance ?39
Sea Passage Allowance claims 240
3:,-' Air Passages within Indian lirnits 742
Air'Passages to/from outside Indian limits 246
Air Freight within Indian limits 747
Air Freight tolfrom outside Indian limits 253
nul*"y-W"rrants' Credit Notes and Cdncession Vouchers 2.55
ClaimsforunderoroverchargesbetweenRailwaysandDefence 760
Sea Passages
(2) that the duty on w"hich the journey was per-
Travclling rllowence formed was such as to entitle the inriividual
231. The term 'travelling allo'wance' as used in
u'ho perfomed it tcr travelling allowance
under nrles and that the sanction of the pres-
this chapter includes daily allowance' cribed authority has been accorded where
this is necessary;
732. Claims for travelling allowance for jour-
neys by rail, rroa{ river' sea or air must be submitted (3) that the journey was perfornned as
o" tf."'pot"cibed forms *'hich are drawn up in such expeditiously as possible and that no bill has
a \ilay as to give all the inforrnation necessary to been submitted for it befcre;
'ptop"t check of the claims' Unless
"n*rl
specificaliy irovided otherwise in the regulations in (4) that the raies of railway, steamef, or air fares
respect of any particular class of personnel' the charged agree with the tanifs of railway,
claims are required to be countersigned by Controll- steamship or air company concerned:
ing OfFrcers. The countersignature does noL (s) that ihe dist:nces for which rnileage has been
however, dispense with the necessity for audit with
claimed are correct, where these can be chec-
reference to rates and general conditions' Or- ked from data available in the audit office,
<linarily, the countersignature by the proper authority
-signature as, for example, fare or time tables' Any
or thd of the drawing officer when a bill cases of journlys by road or by river,-the dis-
does notiequire counter signature, should be accep- tanc.e foi which mileage is claimed' if not
ted as final ividence that the facts of the
journey on susceptible of check in the audit oflice' will
whieh the claim is based are correct' and that the be accepted on the responsibility of the coun-
controlling or the drawing officer, as the case may be' tersigning officer, who is required -to^ensure
has exercised the scrutiny entrusted to him under that-corr-ect distances are charged for' 'In
the rules. any cases of doubt as to the correctness of the
distances for which the allowance has been
drawn" the local M'E'S. authcrities will be
233. Detailed rules for the audit of road warrants consulted; *
arelaid down in ChaPter 10.
(6) that no allowances ha-re been ciaimed which
234. In conducting the audit of travelling are'not covered by regirlations or orders;
allourance claims, the following points will be
specially seen, in addition to the checks prescribed in (1) that the claims are ccuntersigned by Con-
Paras 4? and.62: trolling Of1icers, where necessary;

(U
\-'' That the claims have been subsritted on the (8) that any advance of travelling allowance
ti"s"ttbed forms, in accordance with the taken in respect of the particular journey for
instructions printed therecn, and are suppor-
which the cjaim is preferred has beerr
ted by all the nqc-essary certific'ates as pres-
brought to account in the claim;
cribed in the Regulationu---
 TRAVELLING ALLOWANCE AND OTHER CON\TEYANCE
CHARGES 1234-24s
CUAP. 8l
241. Blank"
(9) that in the case of witnesses attending a ciyil
court any fees which may be deposited in the Air passages tolfrom outside Indian lirnits
court for the travelling and subsistence 242. Nl air passages ex India- unless otherwise
of the witnesses are credited to specifically pto.'id"d for in authorised regulations or
"llo*urr".
government; oih.r'or,l".i of Govcrrrrnent, require the prior sanc-
(10) that in the case of claims for daily allowance tion of Government of India:
for hals at temporary dufy station' n€cessary
Claims relating to air passage of Army perso-nnell
decluctions are made in respect of State hos-
Defence Civiliani ex India are dealt with centrally by
pit"fiW received and transport facilities tf."-C.O.e. (Hqrs) New Delhi' Similar claims relat'
enjoYed if anY; are dealt with
of claims for leave travel co-n-
i;; ; nar.y ana.anr Force perso-nnel.
(AIR
(11)
\--l that in thethecase ;; ;* csDA (NAv$ and FoRCE)
cession, provisions of Gove-rnment order respectivelY.
issued on the subject are cornllied with'.
243. In aucliting air passage ex India claims' the
235. All clairns for travelling allowances in res- following main points will be seen :
p"J';i:"tineys by rail" road, river,-sea or. air will be
;;td"e in tire demand cum audit register main- (1) that a copy of the exchange order duly sup-
tained for the Purpose : portecl by- i copy of Govt' Sanctir'rn hns been
ieceived from Quarter Master Ger:e ral's
236. All advances of travelling allowance wili be
maintained Branch:
."6tJ i" u a.*u"d cum audit iegister to watch
i"r ,ft" p".p"*. This register,will be used (2) that the authority exists for air passage;
;h; ;;fii.^tion and final settlement of adjustment
tifft- t"q"ited to be subrnitted in respect of these (3) that the bills submitted by the air lines are
supported by original copycfexchange order
uJu""".t, or where in rhe case of transfers' the ancl that only slandard air fares arc
;;;;;;; are notified to other to Audit officers for
-ttu"*f.t final adjustment, record details of charged;
""tio"-i"*rrdsof the udlontt"*t and of their ack-
*" (4) that the authority exists for the conveyance of
nowledgement bY those officers' any ex-cess baggage over and above the nor-
?37. Blank. *ul ft"t allowance pemitted by the air
I ine;
238. Blank.
(5) that the original exchange order rer'-'eived
Sea passage allowance claims ' with the aii line's bill is paired with the
23g. Claims for passage allowa.nce and cost of duplicate exchange order receiverl from
of baggage in resp"rt of voyages will be Q.it.c's branch, and
a Ji,ra- *i rt t"TJtJtt"" to the rules in travel
"o"".Vu*"
;;i;;""; and paid bv the Controller whobills deals (6) that a journey completion ^ -certificale' is
;ilIil; ;"dit o? the travelling allowance of receivecl direct iiorn the Oificer: in ci:se
the claimant. excess baggage voucher issuccl 10 an
indivi<lual ior bc'th the outu'ard and return
joottt"yt is not fully urilised' the indivi<lual
Air passages within Indian limits
jour' ihoutrd obtain the difference voucher frorn
240. The travelling allowance claims for air the air lines and forward the sarne to Q'lvI'G'
neys within Indian limits will be audited in
accor-
in para branch for obtaining necessary refund fiorn
Jance witfn the general procedure laid down
the carrier.
ii+ uuo"". thi fotlowing points should be seen
in addition: 244. When return air passages are sanctioned by
0) that the claim is supported by.a copy of the Gote.nrrr"n! exchange orders are issued by the
sanction accorded by the authority compe- a,ttl.G;; branch at Army Headquarters on the
lent to authorise air passage in the particuler uiittoiity of which payment is made to the air line
case" where necessary; The amount on this account should be
""rr..*".1.
noted in the demand register as a demand against the-
(2)
\-/ that a return ticket at a reduced rate' where
u"uitutt", has been purchased when the Ofn""t concerned, which will be cleared on reccipt of
individual concerned expected to perform-the the journey completion certificate frorn ' the
Ofhcer.
return journey by air within the period- dur-
i"g *dan u t"t trn ticket is available and thal
lhi mileage has been claimed accordingly: 245. Blank"

40

___-_

:
 E
f
t
L
t_

CHAP, 8I TRAVELLING ALLOWANCE ENO OTTTCN CONVEYANCE

CHARGES
1246-2s3
Air freight within Indian limits concerned. Full details, such as the name and
246. All movements of stores by air within Indian address of the consignee, Audit Oflicer of the
con-
limits (except-those the. urgent rn*[*.nt of which Uv signee and the no. and date of the Government
of
air is essential on medicafgrounds or for operationai India letter authorising airlift etc., are also intinnateJ
. reasons) require the prior sanction of thi Govern_ to the Cs.D.A. concerned to enable him to raise
ment of India. necessary debit

: Cash payment in respect of air freight for Govern_ 251. Blank.

, ment stores is made to I.A.C., froir the_ I*prert 2s?. Blank.
Account/Permanent Advance of ihe formation con_
cemed in the first instance. The amounts paia wiit Railway warrants, credit notes and concession
subsequently be claimed from the Regional e.O.a. in vouchers
= ', accordance with the provisions
of rirles ZZ3 rc 2)6 253. In auditing railway warrants (including
regulation for the unit allowances of the Army. The passage orders), credit notes and concessioi.
claims on the above account will be checkei to ,"" vouchers, the follorving special points should be
that they are supported by: seen
in add.ition to the geniril rule'for au,lit of expenai-
, (a) Government sanction, or in the case of stores tlrre vide paras 47 and 62:
desparched by air on medical grounds or for
operational reasons, by a ceriificate in the
I. General
prescribed form signed by- an Officer not (l) that v.ouchers are completed in every respect,
below the rank of specially all items
in col. ,< of I.A.Fs. f-nAi
lrigadier, as to the urgency
for.despatch by air; - and and T. 1707a and all the columns in IAFT_
(b) receipt obtained from the I.A"C. for the cash 1711 are correctly {ilied in;
payment made. (2) that they are duly signed by the officer who is
Note i The air freight charged shoulcl be checked authorised to issue the same and not by any
with the tariff of the air liaJs concerned. of his subordinates:
(3) that the sanction of the competent financial
Air freight tolfrom outside Indian limits authority is_always furnished lo regularise the
extra freight- charges for stor"i sent by
L Despatch of stores ex-India passenger train instead ofby goods train, and
U7. Despatch of stores ex-India requires the for the difference between it * long.'anU
prior sanction of the Government of India" shorter routes and also between ttre dai a"n
passenger fares unless specially provided;
248. Ciaims submitted by the air lines concerned (4) that the additional charges in lieu of hire are
on account of air freight in respect of anny stores nct passed unless the vehicle is actually
despatched ex-India aie dealt with centrally by rhe reserved and run cver foreign railwri-ys even
CDA (HQRS) New Delhi, and audited -bv -hirn though the charges are made at vrhicle
Generally on the lines indicated in para 243 rates;
above. Similar claims in respect of Navy and Air
force are dealt with by the Cs.n.R. $u"*yj u"C
(5) that in the case _ of parties travelling or
force) respectively.
laii aninals conveyed on- waffaats ot con-
signments booked on credit notes suflicient
tr" Imported stor-es to l?ll vehicle loads, the vehicle rate or the
individual fare or smail consignment rate,
49.- Transportation of stores f5pm abroad whichever is cheaper, is ahiays allowed
-India by air requires special sanctiori'of
to ,

and
the Govern-
ment of India and the stores are receirecl at;Bombay/ (5) that the rates and amounts clairned tiy the
CalcuttaA{adras on 'freight collect basis'. railways are checked with reference to the
250" Payment of bills for freighr charges is nnade contract.or tarrif rates, as the case may be,
-by_ the Embarkation and any e*cess claira disallowed.
Comuiandants- Bombal,"
Culcutta and Madras from the permanent adrancei II. Railway warrants
Imprest after veriiying that the charges claimerl arc in (1) that
accordance with the prescribed ratJs. The reirnbur-
correct- authorify is quoted in the
yar1l,nts for {ree passage iuthoised for
t,

sement of the- charges towards permanent ad.rance/

tmprest rs subsequently obtained frorn the Cs.D.A"
families, servants ana Uaggage admissibie
undel regulations;
I

41
L
i'

L.-
 253''ff"RAI[' WARRAJ{T$"SFE}fi...
.'::--'::-_-- t- =. :,
..,'
[

r:,'.:::::.:a:.
: rtFTr {iqqf?fr-rsgl qfl dfrti fqcq rzz t
. ,r:,. r:._ , .-. . :. . ,
 E
E-=
-
Crw. 8l TRAVELLTNG ALLOWANCE AND OTHER
CO}.IVEYANCE CHARGES
[2s3-
(2) that the class of accommodation provided is (10) that warrants are only
authorised by regulations; issued in the case of
oflicers who are requiied to travel oo ,urrurrt
(3) that the accomnrodation provided by the under regrrlations:
Railway and accepted by the despatching (ll) that the warrants have been issued by the
oflicer is necessary with reference to the main route only_, unless medical o, _iiltury
number travelling on the warrant and that reasons render the use of an altemative route
the vehicles are loaded to the full carrying desirable;
capacity at the authorised scale ol (12) that whenever split warrants are issued, the
accommodation; ,*1 issug of such split warrants is a,rthorised:
(4) ((13))_that wafr-nls are norfGue,l when Friod of
that a single warrant is issued for a parfy pro- ,,.::,S1Tr.d to the/officer. is lesy'than l0
ceeding to the same destination station on
the same day and that the party is not split - 'rays y[ the case of/ leave journeyl
(14) that&, the case ofir,uu" journ6, similar
up into smaller ones for bringing itr" leave travel concessions either under rute
warrants within the powers of lower l7'1-A ail, l7'l-B Tiavel Regulations have nor I
authorities; been availed of by tir* J'm.*i during the
(5) that the cost of baggage in same calendar year; and I
excess of the
authorised quantity if any, conveyed in troop (15) that extra charges are recovered in the case of ir
ii
trains be ascertained and recovered frocr the erronecus issue of warrants;
unit concerned; IIL Credit notes
(6) that the contract rate is ctraimed for all jour- (l) that the stores conveyed on credit notes are
neys on duty performed by individuals sub_ bonafide Government propetry at the time of
ject to the Army arld Air force Acts
and those despatch and that .*ih'utoi.. uo at*y,
in Indian Navy employ, including rnove_ booked on credit notes rluly presented at the
ments on medical certilicate from one forwarding station, and
military hospital to another or to a military (2) that separate credit notes are issued for whar_
hospital frorn a station where there is no fage or demurrag_e charges and that proper
military hospital or when returning there_ sanction exi.q15 gor the paymcnt of such
from; charges;
(7) that vehicle rate at qublic carrying capacity is IV. Concession vouchersin respect of coneession
claimed for No.n-eombatants dlnenrofflay admissible to
deferce ,er"ices personnel for
proc-eeding on duty otherwise than.on
fieli railway journeys while travelting at their
service and that the sam.e at the rnilitary car- own expense
rying c.apagity scale is admitted when- they (l)
proceed on field servico only where such +at jlie^ moiety of the fares charged againsc
accommodation is actuaily provided; the Defence Services estimates ii correct;
(8) ,h.u-, thg special train warrants are audited {2) that the debits against the Defence Seruice.s
estimates are borne out by the details recor_
with reference to ,milrail' orders authorising ded on the concession vouchers zupporting
the move of the special train and that nJ the debits;
charge is claisred fbr empty brake_vans and
that one loaded brake-van is allowed free (3) that rhe individuals and the members of their
when the number of vehicles of the special farnily in respect cf whorn the forms are
train exceeds 16 four-wheelers; lssued are entitled to the concession and
that
the number of the members of famity aoes
(9) that the hhulage of specially construsred not exceed the linit authorised under
rT_"rygd garriages or saloons used by high rules;
officials is claimed at the rates splcial-ly (4) that the forms are issled and utilised only
sanctioned by the Government of tniia ant
journeys performed for
that the claims for detention charges are sup_ at inaiviAuatL own
ported by the written orders sig-ned by the expense, and that the forms are on no
account used for journeys in respect of moves
official concerned or by orr, -of his staff on permanent and temporary dufy f<rr which
officers ordering such detention or stop- -ioo_
'othei
pages;
fr9e. cgqveyance in iny is
admissibile;

42
 CrrAp. 8l TRAVELLING ALLOWANCE AND
OTHER CONVEYANCE CTIARGES
(5) that in the case of J.C.Os and others, [2s3-2s8
joumeys in respect of the (i) (a) Warrant (excluding those Chief
which th; ;;;;;"
s granted have, prima facie been undertaken
issued individual-ly ;; of Controller
Accounts
collectively to iervice (Fys) Calcutta"
lo1 or to the place of duty of trr" i""J .iirr"
family; and
officers as well as officers
of the Nursing services
(6) from a higher audit point of view that referred to at (b) below,
in the but including the omnibus
of oflicers, the concession is not abused
case
warrants issued to officers
by a lavish availment of it. moving with bodies of
254. Btank. lpops under rule 50(d)
Tratel Regulations) and
Claims for under or over charges between credit Notes.
railways
and defence (b) Warrants iss red in respect
of Seryice ofiil91s (i";irJ- 't'.6.e
Armv,Officers
255. The claims for under or over
ween Railway and Defence Accounts "h"rg"s
b.t_ ing Nursing Officers). -- i';". fol
cerne-d are required
Officers con-
to be pr"f..r"a--*ir-1ri""".i"
. Navy Officers
months. C.D.A. (Navy).
Air Force OfIi-
The period will be computed as follows: cers C.D.A.
For Railway Accounts Officers : (ii) Concession (Air Force)'
vouchers :
From the date shown on the original (a) IAFT-1709 A (concession
bills to the Army Officers
date shown on the claims fo. rinaei voucher Form
"hurg"r.
for
Miliqry Offisers when cers), Pune. c.D.A (offi_
.For Defence Accounts Officers: travelling on leave at theii Navy
Officers
From the date of receipt by them qwl _expense and for C.D.A [Naw]
of the original their families).
bills from the railways to the date Bombav.
of despatch of, Air Force Offi-
their claims for ovei charges.
cets C.D.A'
256' As the rairway authorities do not entertain (Air Force)
any objection or disallowance Dchra-dun.
raiseJ bf Controllers (b) IAFT--1720 A (certificare Chief
after the prescribed six months Controller
above, it is essential that
,i_.li_it mentioned Ior tlckets and return jour- of .Accounts
.bj;i;ns and dis_ ney vouchers for l.C.Os (Factories)
allowances should be issueil "ll to if,"*'*ithin gtc. When travelling on Calj
that 'leave at their own exoen- cutta.
pelod and steps should be taken to"rrs,rre that this. -
is done. ses and for their famili'es.
(c) IAFT-1728 (Railway cer_
C.C. of
. Note:. In no circumstances tificate for military pen_ tories), a (Fac-
defec-ts in warrants, credit trot"a-shouldconcession
.technical
sioners proceeaing it ' Calcutta.
vouchers, e.g. "rr]*
Want of glg"utur" oijriui"g officer, attend Regimental re_
be atlowed to'retard trr" iriue *i;# unions etc.).
period, of objections ;ir; prescribed
aisattowancJs against the (d) lqFT-1732 (leave corc€Sr (i)
railway authorities. _andsu"t-""rlr,'"fr."t The C.D.A.
.1"
exercised from such in-formation will be sron voucher Form ,G' foi (Officers)
u, i*
anv objection found will be i;"ild.dl;lhe "*if"ble and mernbers cf the Mily. Nurs_
Pune in res-
statement issued to those autfrorities.' "' objection ingService). pect of the
257,. Similarly, the Controllers formsusedby
.
any claims for under
will not enterrain members of
or iar"*l"irr"ight not MilitaryNur-
"n".ge, limit
preferred within the.presciibed
from the date vr r months sing Service
of oril,an"i-Jirr*.'r"*r "i1ir, and of the
258. The audit of railway warrants, credit Civilian Sisrers of Mily. (ii) Regional
and- concession vouchers notes Hospitals travelling by
trollers mentioned below.
ir;.;;;;i'u", ,*r" con_ Rail.
C.D.A. in res-
ii;;";il""'rurry out
necessary accounts adiushnents
pect of the
-Code. ---- as envisaged d p;;
-- v'r^oq6r forms used by
85 Defence Account Civilian Sis-
ters.
43
 CTIAP, SI TRAVELLTNG ALLOWANCE AND OTIIER
CONYEYANCE C}IARGES
[2s8-264
(e) IAFT-1735 (certificate for Navy officers
similar figures in respect of the personnel
competitors and spectators c'D'a (Naw) berong-
i"-g.a other quasi commercial coRcerns, such as
of Defence Services and Bombay. Military Farms, etc. should be sent to those concerns
territorial Force attending Air Force offr-
through tne c"o.e in whose u"aii io, they
any match, competition cers situated.
are
tournament etc. held c.D.A.(AF),
under military anange- Dehradun. 262. In checking the bills received from
ments). Army Officers shipping
companies it should be seen that:
(Class I Tiavel).
c.D.A. (Offi_ (l) IAFT 1724 (Requisition of passages) have
cers) Pune. been completed and signed by the"F,mbarka-
Other cases tion Cornmandant
C.C. of a (Fa6- "orr".rrr"d;
tories) Cal- (2) sanction of the e.M.G. exists for
cutta. all
passages;
259. Blank
(3) the individuals are entitled to
Sca Passages free
-Gooa-_".r,
passages
as authorisetl by rules o.
260. The bills for the cost of sea passages provided Orders;
for_service personnel and civilian. puil from
the
Defence Services Estimates will, with tie (4)
those relating
exception of lhe fares charged agree with the schedule of
to Navy personnel, be audited and fares on record in the audit office and rebates
{inally adjusted by the Regional C.D.A. in whose are allowed by the Shipping Companies
audit area the port of Embarkation is situa_ . where so required to be given undir
the
ted. Similar bills in respect of service personnel and terrn.*s of their conhact with the
Govern_
"-t*tr:t y g: Navy wili u" .e"eirrJ-u'J audited by ment and
the C.DA (Navy).
(5) the messing charges for voyage period
261. The Controllers paying the clairns where
on account due from oflicers and otheis are correctly
of,sea passages provided to Factory personnel
should recovered urith reference to rules on
::d t . tlie Factory concerned, thiough the CC of A ject in the Travel Regulations
the sub_
(Factories), a monthly statement shoftng
particulars and recorded
of the charges compiled by thern uguirr.t in the Register of Messing Charges.
it L ulccounrs
oI the-lactories during the month, to enable
the latter 263. Blank
to include ihe same in their trading and production
accounts, etc.
264. Blank

44

L-- ,

*&a*-..
 CHAPTER 9

UNIT ALLOWANCES, CONTINGENT AND MISCEI,LANEOUS EXPENDITURE

Para
Unit Allowances
265
Contingent and Miscellaneous charges
268
Charges for ground rent and land Compensation 275
Conservancy and hot weather establishment charges
2t6
by the G.os in c commands, Area Commanders etc.
Petty recurring expenditure sanctioned
281
Non recurring payments sanctioned by the chiefs of the Army, Naval and Air staffs
282
Contingent and Miscellaneous Expenditure of Military .Attaches/Advisers to Indian Embassies
286
Abroad

Unit Allowances the Unit Impresl The authorised/audited bill in

such cases should be authenticated by the payment
265. Claims for miscellaneous unit allowances and authority seal of the office of issue. The vbuchers,
grants are normally preferrbd by the Officer Com- etc, in original in such cases will, on receipt with
manding units/formations (excepting Air Force units/ Imprest Accolnts, be transmitted by the pay
formations) and heads of esiablishments, to the Accounts Officers (ORs), to the C.D.A wlio
C.D.,\ concerned for pre audit and payment. Cer. authorised the payment.
lain claims such as those on account of condiment
allowance (paid out of imprest) and annual training 266. Unit claims and the audit requirements ii
grant account (grant obtained on requisition or by connection therewith are given in .Regulations for
allotment) are however subject to poJt audit by thl the Unit allowances of the Army' and .pamphlet of
Controller concerned. Recognised Claims' Part I (Army) part II (Navy) and
Part III (Air Force). In addition to the general
The claims for miscellaneous unit allowances and checks required to be exercised over cash expendi_
grants in respect of Air Force units/foimations are ture, the controllers will check that the requirements
paid out of units imprest accounts and sent to C.D.A
(AF) alongwith ihe monthly cash accounts for po'st referred to above have been complied with.
audir As an exception, claims on account of local 267. Blank
purchase of stationery/rubber stamps and local print-
Contingent and Miscellaneous Charges
irg,ll9 those pertaining to the D.T.D & p-(Air)
establishmenq etc, are sent to C:D.A (AF) fbr pre; 258. The primary check over contingent expencli_
audit and payment direct to the parties concer- ture is performed by the executive authorities. It is
n9{. .!t{ms in respect of D.S.C. piatoons serving their duty to See that the charges drawn in a con-
with Air Force units are sent to the C.D.A (AD foi tingent bill are of obvious necessity and are at fair
pre-audit and authorisation of payment out of Units
lmprest Accounts. and reasonable rates, that previous sanction for any
item reqliring such sanction is attached; that ali
Note: The claims of condiment allowance in res- requisite f .iluchers are received and are in order; that
pecL o! patibntsin hospital *in, t;;e;;r, be pre. the calculations are correct, and that, where applic-
audited. ablE the expenditure has not exceeded and is not
likely to exceed, the allotment made for the pur-
Ordinarily, payment of the above mentioned pos€. If expenditure be progressing too rapidly, it is
claims will be made by cheque, but in the case of their responsibility to regulate the expenditure and to
units, etc, serving in an operaiional area or'stationed keep it within the authorised allotmenq and if
at places where banking facilities are not available, necessary, to take steps to obtain an additional
^l
units may be authorised payhrents from allotment. 1
I

'l-2lcGD1'/ND/92 rl
rl

)
 l'r
I
I
.l
i
l

UMT ALLOWANCES,CONTINGENT AND MISCELIANEOUS 1269-

CHAP.9l
(10) that no charge is preferred for-section writ-
269. Contingent and miscellaneous charges will be copying manuscript by piece
audited in accordance with the general rules for the
ing i.e. for
work, without the previous sanction of the
audit of cash expendih-rre as given in this code'
In
it will further be authoriry which may sanction the employ-
it of contingent charges
ment of an establishrnent; and that no such
seen:
" "ut.
charge is passed to any persoll in receipt of a
d charges are of -a kind normally salary from Government;
(l) that the
incurred on account of office or other con- (11) that charges for liveries and warm clothing
tingencies and that they are not of an for Class III and Class fV employees are
clairned in accordance with the' conditions
'F
-1 unusual or extraordinary nature;
laid down in 'Hand book on uniforms of
(2) that the expenditure has been incurred with Class III and Class W employees'issued by
due economy; that tates and prices are the Ministry of Home affairs and other spe-
reasonable and are aPParentlY not cial Government letters issued for the
extravagSnt and that the standards of {inan- purpose;
cial propriety as laid down in para 39 have
(12) that no charge is passed which contravenes
been observed;
the orders relating to contingent and mis-
(3) that the bill is in proper fo-rm-and that any cellaneous expenditure contained in chapter
certificates required under the financial rules 12, Financial Regulations Part I, Vol I'
have been furnished; Pamphlet of Recognised Claims; and Appx
II of FR Part II,
(4) that the vouchers for charges in excess of Rs' (13) that the expenditure in respect of charges' for
25 are furnished; which a separale allotment has been
sanctioned for the year, is a ploper charge
(5) that no charges for pay ancl- a-llowances are against the allotment and that it is not pro-
includecl in the contingent bills; giessing at a rate likely to exhaust the allot-
(6) that the recurring charges have been Lent before the end of the year' In the
sanctioned by the competent financial latter contingency the Officer submitting the
authority; claims will be warned to keep his expendi-
ture within the authorised limit and advised'
(?) that the expenditure is incurred by a Govern' if necessary, to take steps to obtain an
ment servant competent to incur it' and that additional allotment. See also in this con-
is has received such sanction as is nection chapter 16 Defence Account
necessary; Code.
(14) that charges for which scales have been laid
(8) that charges for non oificial publications down are passed in accordarfce with those
(including' newspapers) conform to para 604 scales and that the charges for which sanc-
befence Services Regulations 1962; tion of higher authority is necessary have
been so sanctioned;
Note: Charges for railway time table and Indian
Postal and Telegraph Guides, when their (15) that there is no tendency to incur expenditure
purchase is necessary, may be admitted' simply because funds are available, and that
if the expenditure in the month of march is
(9) that printing binding and stationery charges unusuallY large it does not lead to
do not contiavene the rules contained in the irregularities: and
'Rules for the supply and use of stationery in accordance
(16) that legal charges are claimed
stores and those for printing binding' In
with the provisiotts contained in para 421'
this connection see Al 44/76 and 41183 AFI
537 and 538 of Regulations for the Army and
28/79 andNl26/78 as amended from tirne to
other Government letters issued for the
time for ArmY, Air Force and Naval purpose.
units resPectively'
46

I
 Cuep. 9l LINIT ALLOWANCES, CONTTNGENT AND MISCELLANEOUS I27A-277
270. A comparison of the relative responsibilities 273. Blank
of the executive and administrative authorities and
:
the Audit Officers in regard to contingencies; as 274. Blank
i
stated in the preceding paragraph, will show that the
lifl
duties of the former are more onerous than those of Charges for ground rent and land compensation
the latter, it is more difficult to decide whether expen-
diture is necessary than whether it is unusual, and 275. Charges for ground rent and for compensa-
di whether rates are reasonable, than whether they are tion for land taken up for military purposes will be
apparently extravdgant audited under the general rules laid down for the
audit of cash expenditure, and payments on this
[l ."4 271. To avoid double payments recurring charges account will be made with reference to the conditions
will linked with the previous charges and audited. A noted on the l,ease agreements entered into by the
H suitable entry should be prominently made in the last authorities concerned. The lease agreements will be
charge, regarding the fact of payment of the next recorded in a separate Guard file maintained for
charge at the time of audit thereof indicating also the the purpose.
number and date of the voucher (as given by the
unit), the amount involved and the month to which Conservancy and hot weather establishmcnt charges,
the charges pertains under the initials of the auditor
H and the SO(A)/AAO. Non-recurring charges will be 276. The budget provision in respect of conser-
noted in the non:recurring charges register. vancy and hot weather establishment charges is dis-
tributed by the authorities at Defence Head quarters
272. For the record ofspecial charges requiring the to Commands/Establishments under them and
sanction of the superior authority, a register will be through them to Areas and Sub AreasAleads of
kept in IAEA-514. Separate pages may be set apart
I

t
Establishments respectively. The Sub Areas/Heads
for unit, forrnation or Officer; or the pages may be of establishments distribute it to Officers Command-
distributed according to classes of expenditure. Im- ing Stations, who in turn may distribute the allotmenl
mediately on receipt or an order sanctioning any spe; to units and formations/offices under them, respec-
cial expenditure, it will be entered in the register in tively. The bills in respect of conservancy and hot
an appropriate place; it will be audited against the weather establishment charges are preferred to the
note' in the register and the necessary entries Controllers monthly by the Officers Oommanding
made. stations or units/formations/heads of establishments
to whom lhe allotments have been distributed.
Note I : This register will also be used to record
the audit of language rewards and other special non-
recurring charges. In the case of those officers and
277.In auditing the bills referred to above, the
following points should be seen in addition to the
men whose pay accounts are maintained on
general checks laid down for the audit of cash
I.R.L.AS, such charges will be audited through these
expenditure:
ledger accounts.

Note 2: In gpening a new register, orders of (i) that the pay and allowances of regular con-
which the force has not expired, will be carried for- 'servancy establishment are claimed in IAFA
ward from the old to the new register. 38 arld those of hot weather establishment on
a contingent bill and that the claims in both
.Note 3 : Special saqctions of refunds, advances the qases are countersigned by the Officer
and travelling allowances will also be recorded in the Commanding station and are supported by
register and the claims will be audited against those details of expenditure;
sanctions, as and when they come up for
payment. (ii) that the hot weather appliances on which the
establishment has been employed are
Note 4: When an order sapctioning expenditure authorised in Barrack and Hospital
contains no indication of the amount of U*it of the Schedules. if not, Government sanction
sanction, the C.D.A will address the issuing authority had been obtained before such appliances
for this information. were fitted in the Military buildings;

4'7
- * *$r qt:
;s*"s["ffir$,Jffi
#;u;ou.1,3ffiffifl#l'iq*e
l
I
n
ll

i
i

con- Non recurring payments sanctioned by the chiefs

- paid fromunder
j

I
(iii) that ..r"n orT'.1-ptoyees of staff
'---' iirrg.n"ies and oG, allotments
'Incidental and miscellaneous expenses'
and
sum of Rs- 60'000 per financial year is
.A
'conservancy grants' as are uo*d"o" tr'L 2s2' A
-" p^ia "t the approp-
to
regular pf""J ui ,ft. disposal of the Ministry of Defence I
".tuUiirtfri?", n?si;"
[ffi1:ui3:J.;.td,i$iH'".",'s&1l"fi';? :1ffi*'.t"il::lhii :'"'hT"":'iJ-ll;
objects:
4f '' that the casual empl-ovees q"id ^l-1i:"I--
(iv)
'- ting"n"ies and other allotments mentloneo ln establish-
1

per
(')
time io time"liiiT'r",..
clause (iii) are paid as as f.Xt':il:J't1,#;*1,t",ff'L'lt
it"i bY station
-* ;;;;d"d fixed in of trophies, flags, etc' for presenta- i
hqrs. Or such other pay *s qay Ue In addi- ' ' provision
$)
individual ;;t bt speciat orders' iiot' of training establishments;
(c)' provision or amenitv articres when visiting I

i:l*g:*:tr#:tr$i!3":.iH:,:t"',?;
only at rh. .;;;;il""4- i" the same man-
' irospitals' welfare centres' etc;
i
(d) sim'ar grants; and
Iits"l'?T*',o"'l 'H',""ffi"li
l/1/lg5g, that
effect from
U!
leave pension, (e) misce-llaneous exeDnenditure incurred by the
"' 6rtiti- of tne n'r-v Staff/the chief of
the

medical, attendance or travelling

allowance Staff' while
benefits are only admitted 'o
pt'!ot"'"l' who N;; StafVthe Chief of the Air
are entitled H"r#;;;;;;;(ty;;er the ;;;ili;;*r'i"t' no specirrc provision exists
ti*t; utta in rr'" regulations; e'g' Gratuities to servants;
orders irrrr"irro-;;;;
(v) that funds are available to meett the
cralm'
claims iire; etc.' T'his expenditure should
"ooiitt
prererred; ,." ur*o para z7B. lH" rffiir:i: itifi:lt,i:
lij A"t:rui;: Chiei
i'{;t;i itaff/the of the AiI Staff'
278. When there is a probability
of the allotrnent
or for the sta- 183' The various authorities and the
maximum
for a unit or formation/establishment mav accord sanction
c.p.e.-itt warn. ttre #i;'";;;*hirh each oi ttrem
tion being
"^"""a"a,^it " !rlc^1
concerneo as follows:
io*-".,-ai.r g/Head, of the establishment "t" per
(D rhe chier or the Armv Starr Rs 30,000
r:n;**::,lll,r":,.r",#l;,ufii'#l,lTT,T:
-provisional
menlFurtherpaymentswillberegulatedinaccor.financialyear
(ii) The Chief of the Naval staff Rs. 15'000
per
dance with the principres gor"-r.g
E Code' financial vear
i1
;;;;"" iaid doin in Defence Account the Air Starr Rs. 15.000 per
il 27e. Blank. \ ,,,t,
I*fli:lJ"i
280. Blank. 284. The bills for non-recurring pay1elts
recurring cxpenditure sanctioned by
the General .";;;;"J ty itte Chief qf the Armv .Staff will' be
those
- -i;k;";;
Petty
;il;;^il.t.D;. GQRS) New Delhi' ^And
Clmrnanding in Chief Commands Area fnr navment. ,urr"tro.tJ by the Chief of the Naval
Commanders etc'
'*itt u"c-p,t
;,;d,-;;'iii.- 6Niw) respectivelv' rhe-se
watching that.-the
281. To see that the limits prescribed-i1
Appendix ;iil;;* ,".po"tiblt-for
ttot exceed the prescribed
rv ol Financial Regulations ;;;;i"J;corded'ao
n;;; i at-v schedule
the sanctioning
limits.
i"'" i, "tr II 1-983 edition, in regard toGeneral will-
.i p"iry recurring expenditure by Officers In the case of Air Force' the sum of Rs'.15'000
Chief of
exceeded' a regis- b"^;uid th. U"git t i"g of each to the
C;;;"dt"g-lt -Ct'i"f, etc, are not "t a
Y".?,t from
;;*tll be m-aintained in whieh all sanctions will be *t1'Xt Sta{f on contingent lill.received and
I
recorded Command Controllers
will watch the ffi.'; i"iri"- Fund Accoirnt will be opened
ffi"iii*. incurred bv him as and when
q
_q

.ri",i""t accorded by the GeneralforOfficers

all the reouired. The unspent balance at the end of
the
{ Co-*""ai"g-in-Chief oi the Commands 'd;;;;i
vear will be refunded to Governrient'
d Are; and S-uU Areas in the Command'
48

L'=-"'.
 l2s4-29r
UNIT ALLOWAI'I
.el
'J:1"il*,TJlffi;;l'i;**,?1"?llifi ;l
Governmen' "' Til?iris;-;ivsg (ea\62t
Gn*u *:"L1,-:l;ll:ffil$$,?,l,,,onno,-
m.e1ti31::*:*'"tii3Xl3l'i;" *iit u"
s;i;fi i/178 date<t 5r/tu/t
o"
or the frH".'"",l;'ii,,[,u,
ili'lr"nntopriale":u"1::ti.11"tl""1llt,t", r,:-.- a nqr
ll,*i$"1llfui;$ir='iffffiiffl.l* N.,e: the
N"e: y*:HxtH:Y*f:'J i:";1?1":r:
f$fgr+lni:{"r'**ii:'*,Yir:
'"'ir*,"'i-*"eipts vouchers'
-and i1}"***#t*u'x=,-.H :,*''
::Tilffiil1:11;f:*:":'_'J,"$i:;f'il;
285' Blant' sion of furniture'olT"^"u'""iru
or Mititarv cleaning office; #,i#^tJ*"ilt
of
wearher

contingent ""l.Mt":1"ffi;'"t;ff;111"'J
to nai"n Embassies
oo,o"a :;";;;;""", .
*c, is
a".i"t"t'
m"aie iy ttre Embassy'
- "".
-mail Irga-
Attcches/Advisers .:"1:^":- ,.^ telegrams, is chargeabre
286. An annuar
uu.9p*,,^,1-H:H""1:ff.;::ti ,i"t
cin'"'o-:"'.
-fl:"Aqii:##*t""flt*tt'",;ryir:lii$ ;;;#'*" -"-,:'.f:t",si';:;-Tl;S:e
-- - ;a no,
com-
g #fi] ir*1riffi
,3) that the allotment of the
year rs
et*f i"u1t"1tt"1,t^l A copy of the
abroad.

,""""":"fii1
3{#r+,*-l zp,p11'$pi"gt"p5,;,1*3
auditing and sdJuSurrs "r" 288' A copv oI rtrtr
ovv"""' '
Army Headl::*"tt
;"'rri ffiffi*-for
tne senr bv the Military
ottt"n?"lu;;;;,"rs to note the
expenditure on "f.1,"."";;"". to enable those
f'oT Controllet in advance
28?- On receipt of debits ll^1 tt*;."^:';,:
cJ".,"i.r ***-":':'L".ry;i***,ru1*
will in addition to tl "-,-l?..$.n,"$,u,:"J:i1,"
C"*ffi*'i*u\. which a_re not
see the CD.A., Central
audit of cash expenditure,
"""ligi*H''i;*,1,-j",1*l#n

:,: 'du$ zuppoffi

:lJ}o"f;"il*-:ii:*'f"f"and
'"T1"f
#r3;;
are u"tio" in the matter'
l*",lH}1:"*l$
6 relevant vouchers; 290' Blank'

2e1' Brank
ra, g,ut .o. .?3;"j;,11""."o.i?i,'ii3i,l::'t.T:
!'- -
been incurrec ourY vrr

49
\;
H

T
 \

10 tq a,B* {iii) *s q€fi."l?

10 PARA 294 ITEM
"{Tftr6T{f'qr-eq * qK fqrrfkfwd !1q
{rqf14ff5
Si * ar<qt
sf?qrt srrfwa€A fqq"sft'frq fa'ET t qrq
ADD THE FOLLOWING WORDS AFTER
THE WORD "AUTHORITY'" "TO ENTER
rNTO THE CONTRACT AS SO VARIED"I
(xrlrsfl(: fnfrq fqmrsrdt crrl-r, fs<-I fmq zrt(IV)
' (AUTHY : RULE23I(IV)F.R. PARTI VOL.1)
 CHAPTER 10

CONTRACTS, EXPENDITURE ON SUPPLIES

AND HIRID I-{ND TRANSPORT

Contracts Para
General Rules
Comparative .tui"rn.nt of'tenders .
292
Audit of contracts 301
Short term agre€ments 304
30s
Expenditure on Supplies
Audit of bills
Payment of Contractors bills 306
310
Hired Land Transpoqt
Audit of bills
Payment of Contractor,s bills for hired transport 315
Adjustment of expenditure on hired land transport 32A
323
Contracts (2) As far as possible, legal and financial advice
General Rules
should be taken in the drafting of contracts
and before they are finally eritered into.
Note: The rules in chapter do not apply to (3) Standard fiorms ol.contracts should be adop-
conrractr_.{or- the Military Engineeriir! -S"r_
-this,
ted wherever possible, the terrns to be subject
vlces nor to those concluded for the Defence
to adequate prior scrutiny.
lerycgs by the purchase organisations under
Ministry_of Works Housing and Supply The terms of a contract once entered
and the Ministry of Food and &ri_ intJ
should not be materially varied without the I
culture. previous consent of thl competent n"rl-/
cial authority.
292. Supplies and services required by Govern-
m:l! are generally arranged for by contracts for (5) No contract involving an uncertain or
which tenders are invited. - It is an important func- indefinite liability or any condition of an
tion of audit to examine contracts or alreements for unusual character should be entered into
service-s or iupplies entered into by"Government withoyt the previous consent of the compe-
officials on behalf of Governrnent. ' tent financial auftority
293. The respon-sibility for the placing and fullil_ (6) Whenever practicable and advantageous,
ment of contracts for supplies to be madE or services -
contracts should be placed only after tenders
to be rendered rests eniirely with the executive but have been openly invited, and in cases where
this does not preclude audit tritici.- *fr"" the action the lowest tender is not accepted, -r"raorr.
or . procedure adopted by the administrative should be recorded
authorrties results in loss or_-waste of public money,
(7)
or where the terms and conditions of ln selecting the render to be accepted, the
"iolu"t do not
afford reasonable security against ma1pructi".s. financial status of the individuai il t;;
lende_q1g must b-e taken inr,o consideration,
, 294. The Government of India have laid down the
following fundamental principles fo. tfr. guiaance
in addition to all otheruetevarri- i""iorr.
authorities authorised to enter into c6ntracts
of
oi (8) Ev.en in cases where a forrnal written contract
agreements involving'expendihrre from public is irot nnade, no order f".;6;li"r,-","lrrr""ra
fuyds,. Thbse are linancial rules tut tfrev state be placed without at least a writtcn agree_
- audit
principles as well. ment as to price.
(l) The terms bf a contract must be precise and (9) Provision must be made in contracts
definite; and there. must be no room for for
safeguarding Government property entrusted
ambiguity or misconstruction therein.
to a contractor.
 fi
!.
s
'' 19 11$E-0NE lt:
.:.|i

;:r;

;d'"1ff'$nnr ;i
:tl
.i:!
' ,,

;F.eu;g-$5'i ts
;r
.:,
r.4i
$
,ai
.s
'.i:ii
-nl
.i'"'
rrJ
::.i.

!':r
.i1,
li
,g

'-..;r.:=::: i,i:-:t::a lll:-

..'::t:'t a :::::.r.-.-'.. .: . ,
I
I

\
I

I
-1
 ClrAp. l0l CONTRACTS,
SUPPLIES AND HIRED
LAND TRANSPORT
(10) wL."1 a contract is likery ,o [294-304
ffi Cornparative statement
*?:::^:l -Tii: thCu dei''.,#'r#fr".Trd of tenders
yl:::"_q: l.asjble,
inct ; p;;;, i; 301. The comoarative statements

"i .d;;;;;;;;"n-
""il11"; pect of AS.C. contracts of tenders in res_
ljli:T1i,i:"alpower
Gov.ernment
are required to be submitted
to^Controllers for prior^scrutiny,
_.flt"*1_!t at any time after i.r".pJ.tirr. of the
the expiry of six
effect. -""rhi' ;;;
nonce to that nature, value or neriod ortrre
other cases the cbmnarati".
propos.f,iJ.rt.""t . tn
Conrrollers for oiescruti"v
*;i;;;;; iiir r. senr to
Note I: Sanction of the Government
be aecessary to conclude
of India will vided in the ietevant reeulalio;;.
""iv..lvi"?e"i, i* ,o o.o-
u l{^
"trri.r"t tofo,
period u sanctioning authoritv *"v,-["*".., competent
leyond 3 years. F;.;;;t;n
-i;".iinancial this desirable, ob tain th if # considers it
General Rule i"" R;1. .f tf..'i."i-ller
Regulations part I glving his sanction"'remiiks before
i:lqsl'lai,io.r.
Note "r
2: Long term con.tracts (contracts for more 302. The following points
rhan one y-ear) should should be obseryed in
aJ U.'.# ' lirec_
tor of Audit Defence S"*i""r. -^^' to
dealing with the colparative
;;;r;-;;;
*t. be ensured in audit that wherever (l) that rhe state have beer.r'prepared on
1:11-:l
pnor concurrence of respective the proper ,#llt
Controllers on,rhe rpoVruri-"-oi R.d",;;i
. required under the
i.i frirr) i, (2) that the entries
' accordance with .in the statemenh are in
rules, .h."ll IJ ottrirr"a
before entering into contract.--,_,:-' tt. ."i."urrl*i".
the proposed contracts;-' ^-,"" .,ppri"uUf.
(11) the Controllers of (3)
Defence Aeeounts have no, local of the stores
power to examine contracts,
and
:Y-t
arrange.d, _purch^ases are
the nodce of the prcper authorityto bring to -supplies of_ which- aie- rffirea to
"r""?
any cases bv. a ce n trat p ;t;it ;.i"g
l"t^ I 1 "
d
where,high tende'r:
!q" ;;;l'r,""1i,"a, o, except with 'the J
ori ry,
w-here irresul aritie s i" authorirv: that
*9_t\9r-
come t5 lighr ol""ii"-* rr"* 4S, "orr"urr"rr""-
fr- lm;=
4!}1,u;';:,',,,",.- ree or ffi,
, 295. Deviations from contracts require authority
Hl,t.t:::T.,^o,,hl: r"qui;;'?;.,#Tiii"at con- - :1.::._:1,1:j:.
short
i,
rerm rg...-.nt h;;";;;il;J
the tenders,
;;ffi*#,,#'"on,,,"v
Fact Audit should atso ."" tfrut rates are all contractors and.the number *"o1
[ot increased without """,r# trgasury receipr urid", *fri"r, - and date of
"fJ"'"ir".
r^ ,*- of uutt ority til.
e_ whi"{;;rii;".d'il
lext highe
[ext hisherr to _the
the on
::ffl"?
^_^,_-1le_,sanction
,o:lly:f ol ;he. r,ur" u.";;;r_
T*,,1'"1 ::31ry,19
)ntract are ""t.ia.*tr#:";;
made without tt
;;. of the
tender fornl;
:ontllctoi
ded.by qhe executive ;ifi;;#,h;:$ ;?,i:
nt financial authority. " "o"r*ioffie.co?;:: (s) that a certificate to
the effect that the tender
296. Cases in
which there is evidence ihat .:,*rned by til "*;;ior!"l,"
of p o,, t., ti,,f a".i u.t*.,,
a l:n:^:1.1ro those ,rr"i
identicar
:JTT:
as 1: -..^T:1
an undue 9
common interest
" " if;'"llrrrer
,1,r,
t
c_s.r. is given "i""r".*ilf;ffTfi';
con_ Ijj1Sl o" tr," Cbliluvir,"
l;*3:*ril:llq.b"
ompetent
b;;r;;il ;;.T#"e of the executrve authorities.
higher authority f";;;;i (6) that the tender forms
onsider necessary. it may and schedules issued to
""",ioi.u. alt the contractors ur" A;;;;;
pects; and in ail res-
;3ll;l",ll.oi1*,
&^Ldsrunally and ,:o",:3,F
occasionally
should be reviewed
,*: 'ie rates accepted if
iJ audit has reason to believe
thai (7) that if the lowest tender
has not been recom-
i
in those contracts
conrrsntc l_:^::^r,_
vrn .rE
are considerably
consr(erably mended for
,1 igher than the rates the teasons put for-
at the time of .""ia*, ward are j"riff:Bi:lce
rch veriori^*.
tz. , rch
t competent variations shouiJ fi ;,sh;' io*,Ti l,"li"l.Xl
^"^--;,fe,Yailing
authority; 303. Blank.
F
r
r. _ 298. The dehiled rules a1d. procedurg Audit of contracts
I
I
lor tenders and conclusion 9f calling
of contracts relatlng
defence services are laid to lhe 304. As soon as a contract
d;;;il is concluded and the
;-r.- ;"
F

t ciat Regularions part r.";i f'l&;:f#". Finan_ "i

"il",jiJl ti'. lli,u
tt Regul a rions and o the r d";;;;;;"i "rile"ur" A.S.C. : n*,l:l i"#:T ;. :;": ti'3::f;: ",o,,,
r,"
I
299. Blank.
urio,rr. copy qcomfre ; ;;i il
ment of tenders. and
lbH:fi ;,#*::
I
300. Blank. passed on ro the c. lreD se-cufi;#I;i, receipt is
-;;;"i#ll
r
i
scrutiny., On receipt, 4corrlriii.r'*rjf-
tt. r",
post
see that:
5l
 crlAll0l CONTRACTS. EXPENDITURE.ON SIJPPLIES AND HIRED I-AND TRANSPORT [304-306
(1) all requirements pointed out at the time of (b) when uneconomical rates are tendered for
pre-scrutiny (if carried out) have been com- regular contracts and there are prima fgcie
plied with or a satislactory reply, acceptable reasons to believe that this is due to forma-
in audit, has been furnished; tion of a 'ring' by contractors; and
(2) where audit advice regarcling the acceptance (c) as an interim an'arrgement when for some
or otherwise of the recommended tenders has reason, sufficient time'is not available to con-
. not been accepted" adequate reasons are clude a regular contract.
recorded in the comparative statement under
the signature of the competent authority; This short term agreements are audited on the
same principles as regular contracts and as laid down
t (3) the lowest tender has been accepted as a rule in para 293 et. Seq ante, with the exceptions that they
or where a higher tender has been accqpted, can be concluded with the .unregistered contractors
adeguate reasons are recorded in the and that tender documents may not be subrnitted to
statemenq Controllers for pre-scrutiny.
(4) that the contract has not been made by or on
behalf of a minor; Expenditure on Supplies
(D that the contract has been sanctioned by the
oompetent authority and has been concluded Audit of Bills
yith tb€ hrm actually admitted lo the register t

of approved contractors; 306. In addition to observing the rules prescribed I

in Paragraphs 47 and 62, it will be seen in auditing I
(O that the security deposit in the appropriate bills for supplies that: I

forrr and of correct amount has been lodged I

I
within the period stipulated in the contract (1) the purchase of the stores has been
1

and that in the event of default penalties levi- iI

sanctioned by the competent authority; I
able under the conditions of the contract
have been enforced; (2) all purchases of stores are made in accor- L
l
dance with the instmctions laid down.in rule
(CI that all the conditions an"d requirements 128 et. Seq. Financial Regulations Part I vol I
printed on the contract form have been com-
1983 . edition, with special reference to the
plied with;
rule that no purchase which requires the
(8) if the coatract has been entered into with a sanction of a superior financial authority
firm, each one of the partners has signed all shall be sanctioned by an inferior authority
the documents constituting the contract and in instalrients;
if any partner be absent these forms are (3) the arithmetical calculations are correct;
signed by his duly constituted attorney. In
the latter case the original power of attorney (4) the bills are supported by receipt vouchers
duly registered in a court of law will be (properly signed) or receipted inspection
verifred and an attested copy retained for notes or supply orders;
audit purposes; and
(9) the specimen signature of the contractor or Note: in the case of articles of provision etc,
his duly constituted attorney is received and supplied direct to units, I.A.F.S. 1520 should
r3 recorded v/ith duplicate copy of the be signed both by the officer receiving the
contrael stores and the supplier. The certificate at
. the bottom of I.AF.S. 1520 will also be signed
by the receiving officer;
$hort term egreements
(5) each supply order (I.AF.S. 1520 or I.A.F.Z.
305. Supplies and senrices required by Govern- 2135) has got impressed on it the Supply
ment are generally arranged for by contracts but they Oflicer's stamp and the date of issue has
can also be obtained on short term agreements been endorsed in the space provided with the
ordered by the competent financial authorities in the signature of the issuing officer;
following circumstances :
(6) where contracts have been enterecl into, the
(a) in an emergency when conclusion of a rates charged for agree with those in the con-
regular .contract is not feasible; tract agreements;
52
 I

CHAF. 101 CONTRACTS, DGENDITURE ON SUPPLIES AND HIRED I*AND TRANSPORT [306-
(7) in the case of purchases of.stores by units or (iii) when the demand for the articles is so
depots for which no contract has been small that it is not economical or desir-
entered into the rates agree with those in the able to obtain requirements from the
rate lists on record in the audit office and normal source of supply;
with those on the supply orders accompany- (iv) when purchases are made for which no
ing the bills and that the rates have been cer- tenders are received or the tenders are
tified as being correct; unacceptable; and
t il Note l: Produce from Soldiers Gardens (v) in an emergency, when supplies have to
when obtained by the A.S.C. will be paid for be delirvered to troops at out of the way
either at the current local contract rate or at places and cannot be supplied by rail,
the Military Farms latest audited actual pro- or road or where procurement by con-
duction rate, whichever is cheaper. tract or Short Term Agreement is
Articles which are neither included in the impracticable.
contract nor produced by Military Farms but (e) It will be seen that the bills for payment are
correspond to AS.C. Specifications will be supported by the undermentioned docu-
paid for at the local wholesale civil market ments:
rates as fixed/certified by Civil Autho- (a) when articles of central supply are
rities. authorised by the competent authority
Dairy produce shall be obtained by the for local purchase by depots, the bills
AS.C. Only when the local Military Farms should be supported by the original
receipted supply order (IA-FZ 2135) in
authorities are unable to meet the require-
ments.
which witl be cited the particular
account in which the credit' will be
Note 2: units are permitted to consuute found afforded;
articles (if conformable to AS.C. specifr- (b) bills for articles of daily supplies to
cations) of AS.C. Supply produced by units
as a result of grow more food campaign. In
units should be supported by the
original IAFS 1520 and those for casual
such cases the units will underdraw the supplies by the original IAFZ 2135, duly
equivalent quantities from the AS.C. Against
receipted by a Commissioned Oflicer of
their normal requirement and claim the the unit and bearing a certificate as to
amount from the C.D.A. Concerned at the
the particulal lccount in which the sup'
local Government procurement rate as ascer-
plies have been credited;
tained from the local Government Supply
Officer plus grinding charges, or at the stock (c) in the case of Army Ordnance Corps
book free issue rate less 2 per cent, whichever supplies obtained by purchase, the I
i
is less. In respect cif produce issued as an following points are observed: -i
authorised substitute, the cost to be paid to l
(a) the certificate on the supplier's bill
the unit should not exceed the contracted (IAFA 68) has been completed bY
{
,
cost of the basic article at the proportionate i
the ordnance officer:
scales prescribed for substitutes. In cases I
where contract rate is not available, the (b) in the case of purchases out of {
wholesale market rates Published in Statioq contract" the bill has been counter- i
i
Orders should be taken into considera- signed by the ordnance officer I
tion. within whose financial powers the I
(8) in the case of army supply cgrps, it should be amount of the bill falls;
ensured that expenditure on local purchase is (c) in the case of purchases maoe by
incurred by the competent firrancial autho- units under the authority of the
rities only under the following circum- ordnance oflicer, the bill has been
stances: . duly counGrsigned by the Ord-
' nance Officer;
(i) when the demand for the article is so
spasmodic that neither central nor local Note : original copy of the
contracts have been or can be made; receipt voucher on which the
(ii) for troops on the line of march, camp stores are taken on ledger charge
etc, where supplies under normal and authority in original (IAFZ
arrangements are not available or are 2123) should be looked for in sup-
likely to be delayed; port of the bill. !
t
I
53
8-zlccue o/sz
 \

CrrAP. l0l CONTRAC'rS, E)OENDITTJRE ON SUPPLIES AND HIRED LAI{D TRA}'ISPORT [306-310
(d) a certificate to the effect tlrat (11) bills for local purchase qf stores by Ordnance
articles purchased locally are not and Clothing Factories bear a certificate
for stock given by the accounts section of the Factories
io the effect that the rates have been checked
(e) where the total value of the with the contract rates, or where there is no
purchase exceeds the Iinancial contract, with the rates agteed upon in sup-
powers of the sanctioning autho- ply orders and that the stores have been
rity, a certificate to the effect that iccoLnted for in the store ledgers. It will
1 articles dre dissimilar; also be seen that the paticular rnonth's store
(0 in the case of local Purchase of accounts in which the stores have been taken
E.M.C. Stores bY the Oflicers on charge has been noted on the bills;
I Commanding workshoPs within Note : In the case of Ordnance and Cloth-
their financial Polvers, original ing Factories to which Accounts Officers
quotations from the firms accom- (Fictories) are attached, local purchase bills
panY the contingent bill. Where will be audited in full by those Officers
ihere is onlY one local dealer in instead of by the Chief Controller of
the Parts Purchased, an exPla- Accounts (FYs)
natory note to that effect has been (12) in the case of purchase or remounts, the
endorsed on the bill. The con- number purchased agrees with the number
tingent bill should further bear a brought on charge in the Animals' Roll
certificate from the officer com- received with the cash account.
manding that the articles Pur-
.Note 1 : Rates for purchase of animals will
chased were not available from
the normal . sources of suPPlY, or be passed on the strength of a certificate from
being available time did not Per' the remount purchasing authority.
mit of their being obtained on Note 2: For debits received on account of
energent indent; stores purchased by the India Supply Mis-
(g) in the case of direct purchase of sion or other Civil Departmen! no detailed
stores, a certificate to the effect
check over rates ii required.
that the items Purchased are 307. If owing to the default of a contractor, an arti-
covered/are not covered bY rate cle which he had contracted to supply is proc,ured
running contract and that the cost through departmental agency,. it should be ascer-
of the items Purchased does not tained by the audit office how the forfeited earnest
exceed the urorletarY limit fixed money, or the amount of assessed damages, and the
for Purchase at a time and the differinces, if any, have been or will be adjus-
aggregate for a Year, is attaeh- ted, This information should be entered in the con-
ed; tractor's demand register against the name of the
defaulting contractor and the recovery watched.
(h) in the case of local rePair con-
tracts concluded bY E'M'E' 308. Blank.
Officers it should be ensured that 309..Blank
a certificate from the O.C. Unit Payment of Contractols Bills for Local Purchase
that all unserviceable Parts are of Stores
collected bY him and taken on
charge bY means of a certified 310. To guard against double payments, full par-
receiPt voucher and the C.R.V' ticulars of all palmrents made to contractors such as
DuPlicate are enclosed with the the number and date of supply orders, local purchase
bill; vouchers, gtc, and the name and station of the uniV
formation to which the articles have been supplied'
(10) ia r€spect or bills based on technical commit- etc. Should be noted itr the 'register of payments to
tee ricommendations, as no comparative loeal purchase contractors' (i.e. Income tax regis-
statement of tenders of original quotations is ter). Before a contractor's bill is passed for payment,
attached with the bills, it should be ensured all'supply orders, local purchase vouchers, etc. Sup-
that a copy of the supply order stating that it poiling the bill, even though they may be marked as
is based on technical committee's recommen- briginal' should be verified with the entrics in the
dations is received from the authority who above register to ensure that a previous payment
placed the supPlY order; therefor has not been made.

54
 CHAP. l0l coNTRAcrs, EXPENDITLIRE oN suppLIES AND HIRED LAr.tD TRANspoRT
[310-316
This verilication by.the auditor should be test chec- Hired Land Transport
ked by another auditor to the extent of cent per
cent They will also endorse a certificate to this Audit of Bills
effect on the bill, which will be looked for by the
315. When Government transport iS not available
SO(A)/AAO/officer before passing the bill finaliy for
payment. The verification made by the auditors will to meet demands or where Government transport
cannot be used due to mileage or P.O.L. Restrictions
be subjected to a test check by the SO(A)/AAO/
Local station/Formation Commander will place
\) officer and suitable steps taken to prevent recurrence
demands for transport within the terms of the con-
of any errors or omissions that mly come to notice
tract on the hired transport contractor. If no hired
during the test check
transport contract exists, Local station/Formation :
Commander will hire it locally with the prior sanc-
311.All the vouchers for which payment is tion of the competent financial authority. t
authorised wil be prominently enfaced 'can- t

celled'. The local purchase bills with supporting _ -_116.

When transport is hired thrcugh contract, i.\
documents, will after payment, be transmitted to tesi bjlls of transpofi contractors for carriage of stores il
audit.staff and on return from.them will be sent to should be preferred on IAFA-68 through the Local ir
the Local Audit Ofhcer concerned for verifying credit station/Formation Commander concerned. It
for the stores in the consignees' books. should be seen in audit that: i

The detailed procedure to be followed for the can- (1) the bills of contractors and agents have been
cellation of vouchers, their scheduling to the Local prepared and signed in ink by the person
Audit Ofhcers and linal recording is laid down in making the claim and submitted in original;
para 516 et seq of Ollice Manual Part II vol. I as duly supported by the original transport
amended from time to time. indents (IAFZ-2l50);
In the Ordnance and Clothing Factories the local (2)'the various parts ol' the supporting indents
purchase bills, after payment by Accounts Officers have been properly completed-by the approp-
attached to Factories; will be recorded in their offices riate authorities;
and *'ill be produced, when called for, to the Test (3) the indents relating to services rendered
Audit staff during their periodical visits for audit. under each contract are numbered serially L
312. In the case of a bill preferred by Army Supply and separately (the serial to run for the
Corps contractor or other supplier, no payment shail period of the currency of the contract);
b_e ma{e except when supported by the original sup-
(4) the bill is supported by a certificate as
ply order. The contractor who loses his copy shall
required by (a) para 63 (2) (iil of pamphlet of
prefer a claim on the C.D.A., who will subjeci the bill
Re_cognised Claims p4rt I Army and (b) para
to the usual audit acting on the following certificates
162(f), Army Service Corps Regulationi.
and the unit's copy:
(5) the bill is a complete claim for all the ser-
(l) a certifrcate from the unit/formation con- vices rendered during the month to which it
cerned for the supply made, and pertains and in case it is not possible to
(2) a certifrcate signed by.the contractor to the include any indents pcrtaining to that period
effect that payment has not been obtained by in the bill, the numbcr of such in.lelnts is
him previously and that he shall not again noted on the bill and brief reasons given for
prefer a claim if the lost voucher is subse- their exclusion;
quently recovered. (6) the number and date of receipt and issue
vouchers under which the stores were
In such cases verification of credit of stores is also received/despatehed have been noted by the
necessary by the Local Audit Officer concerned units/formations using hired transporf in
before payment is made. Part III of the transport indents;
313. In cases where payment
is made first by the (7) charges for the hire of transport are only
executive and audit comes later, i.e. In the case of claimed for the transport actuafiy supplied ai
post-audig verification of credits in consignees' indicated in Part III of ihe indeni^by tlre
boohs, before the linal post-audit enfacemeni will indenting officer, or his representative;
take the place of the checks laid down in para 310 and
above for detection of double payments. (8) the charges claimed are in accordance with
the rates and conditions specified in the con-
314. Blank tract agreement on record.
55
 i*
H

q
ii
Cual,l0l CONTRACTS, DGENDITURE ON SUPPLIES AND HIRED LAND
TRANSPORT I3t7-:325
317. Bills of transport contractofs for carriage of 321. In the event of a hired transport contractor
passengers are required to be preferred by the con- losing h1s copy of transport indent (IAFZ-ZIS}) com_
tractors on IAFA 68 through the Local station/ pleted for voucher purposes, a fresh form will be
. Formation Commander concerned. It should be issued by the Local Station/Formation Comrnander
seen in audit that endorsed'duplicate original indent No...........Stated to
(1) the bills are supported by road warrants; have been lost'and passed by the Station Transport
Officer to the C.D.A who, after verification thai no
(2) the warrants have been issued by the compe- previous payment has been made, will endorse it
tent authority as follows:
(3) the individuals to whom warrants have been
issued are entitled to travel oir them and the "I -certify that payment for the original of this
warrants have been signed by the officers voucher has not previously been madi".
and other or by Ollicers-in-Charge of parties,
in token of the accommodation having The verilication should invariably be done by con-
been provided sulting the contractor's Income Tax register.
I (0 the number of seats and the class of accom- '322. Blank
I modation asked for and provided by the con-
tractor is separately shown in the columns
provided in the road warrants; and
Adjustment of Expenditure on Hired Land
I (5) the charges claimed are in accordance with Transport
I
the rates and conditions specified in the con,
tract agreement on record. 323. The expenditure incurred on hired land
3f8. In transport will be adjusted finally by the controllers
cases when transport is hired locally, the
bills should be supported by the sanction of the-com- incurring the same, in their own iompilations against
petent hnancial authority and the certificate of Local the appropriate service heads. In the case of-quasi
station/Formation Comm ander re ga rding the reason-
commercial concerns, however, such as Irrtititary
ableness of the rates charges. Farrns, etc. the Controllers incurring the expenditurl
should send to them, through the C.n.g in whosC
319. Blank audit- area they are located, monthly statements
showing the particulars of the charges
-compiled
Peyment of
Contractor's Bills for Hired Tiransport by
thern,against the accounts of the conierns duiing tfre
The procedure laid down in patas 310 and month. In the case of expenditure pertaining to-Fac_
- 120,
3ll will be followed mutatis mutandis in the case of tories, similar statements will be seni to them-through
contractor'b bill for hired transport. Before a con- the C.C. Of A (Fys).
tractort bill is passed for payment, all bills, transport
indents, road warrants, etc, supporting the bill witt Ue
verified with the entries in the Incoml Tax register to 324. Blank
ensure that a previous payment r_,n the same account
has not been made. 325. Blank

56
MGIPCBE-2 CGDA/ND/92-[4-12-92-2.7 ffi
 dqo ra{ del ibqrl t sqqh t tdc

F"t U* Accounts l)epartment Only

"f5"f."*

rqTr fr€T rqH-fr

DEFENCE ACCOUNTS DEP_ARTMEI{T

qw
-'_'-#

frwr qfEer
tffiq II
DEFE.NC E AIjDIT CODE.
VOL. II

q.qqE q4i

1992 q6$I
tqn oq t@r 25190 ao ucrfte)
1992 Edition
upto C'S No' 251901
flncorporating amendments

wr *eI * qrftr6K t 'qTtl dl G

lssue'1 bY the authority of the
ACCOUNTS
CONTROLLER GENERAL OF DEFENCE
 (erT frgr tq}]rrr

DEFENCE ACCOUNTS DEPARTMEI{T

tar +rqrqrfrryr qPfir

FdrG II
DEFENCE ATJDIT CODE
VOL. il

ffi
€diqq qci

1992 {6rrr
tSlfd q-{ €sr 25190 il6 scrftte}
i
I
1 1992 Edition
fincorporating arnendments upto C.S. No. 25190]

rar ior q-dTh-{a-6 + + qT.t d G

qrfu.+R
Issued by the authority of the
CONTROLLER GENERAL OF DEFENCE ACCOUNTS
 PREF'ACE

This Code embraces the broad and general principles on which audit by
the Defence Accounts Department is conducted over l)efence Services receipts
and expenditure and the special points to be observed in the audit of particular
items of such receipts and expenditure.

2. A.11 officers and mernbers of the establishment should make themselves

lully conversani with the contents of this. Code. Ignorance of its provisions wiil
not be accepted as an excuse for aty departure from these provisions or faiiure
to comply with them.
3. This code is a departmental publication. The instructions contairreci
therein are supplementary to the rules in the Civil and Defence Accounts Codes.
Financial .Regdlations, Pay and Allowances Reguiatiqns, Civll Service
R eguiations etc. When dealing with work in the office and in .correspond ence
with other offices in the Department, the relevant paras of this Ccde should
invariably be cited. No change, which involves a substantial depatture from
these instructions, should be effected without the previous approval of ihe Con-
troller General of Defence Accounts.

4. The Controiier of l)efence Accounts, Southern Command, Pune witri be

- responsible for keeping this book corrected uptodate. For this
purpose, he will
I
i propose Correctisns whenever necessary and send the draft ameildmenis to the
I
!' Controtler General of Defencc Accounts in duplicale for approval, quoting the
i orders on vrhich the corrections prcposed are based.

5. This supersedes the 1972 Edition of Defence Audit Code.

I
I
T NEW DELHI SANJIB MUKHER.JI
Dated : 29-4-1992 Contvoller General o1 Defewe Aceounts
.:
-:{- a
{, 1

L-:=-,=-'--\
'-c

irgr ei."s.i lialiJh;lg, tirlr Deie:ir-,e 4u6i1 [*r-1e l-,;i: '"'eell g;rinted in t"vo volumes
*J Llfl i{r:^-

1ir!r::':* I
Ciiaplers i tr: iil

\r*i:r:ne Ei

Cii:-rpirrs 1i iJ i! :rnd Appeniiets

{i,i}
 CONTENTS

VOLUME I
Para Prgc

Chapter l-Iniroductory , l I
Chspter 2-General principles aBd rul€s of audit 15

Chaiter 3-Audit against provision of funds 83

Chaptcr 4-Audil. of rcceipt! and recoveries 99
A
Chapter 5-Pay accounts of Army Officers 141
Chapter 6-Pay accoulrls of Junior Commissioncd Officcrs, other ranls and non'combalants
(enrolied) 168
Chapter ?-Pay atrd allowances of Civilian Governm€nt Scn'ants l8l
Chapl€r 8-Travelling allowancc and other Convcyance Charges t3t
Chaptcr 9-Unii allowanccs, coni'ingcnl and miscellaneous expenditrrre 265
*
Chapter lo-Conhacts, exp€nditure on supplies and hired land Transport 292

VOLUME II
Chaptcr I l-Military Engincer Services expenditure 37,6

Chapter 12-Miscellancous accounts and paym€nts

Fund Accounts 342 5
' Field Cashiers Accounts 341 6
Impre$t Holders Accounts 339 8
Accounts of R€Drount Depots 364 .10
Recruiting Officers Accoults 369 ll
Military Treasure Chest Accounts 311 .12
Chapter l3-Pensionr 383 13

Chaptcr l4-Imported stores . ,' 399 16

Chapter l5-Air Force Accou nts:
Section I -Public Fund Accouns 416 19
Sectior II -Audit of I.R.L.As of Air Forcc Personncl 432 2t
Scction III -Pay accounting of Air Force Pcrsonnel Sewing abroad a.nd on Corir-
ses of Instructions, Tburporary duty aad Study.leave 444 ta
S€ction IV -Audit of claims pleferred by M/s HA.L on accounl of work done for
Air Force ' 447 26
Section V -Mig Complex Wort relatillg to 451 30

-Audit of claims preferrcd by M/s HAL on account of

Section VI work done
- for Indian NarY 458 3l
Chlpter l6-N avy Accounts:
Section I -Cash Accounts-Nar1Y 460 12
Scction. II -PaY Accounts-NavY 412 34
Section III -Chcck of U.K. Stores
Invoicis with tPacking Accounts and
Rcgistcr 493 l6
Chapler l?-Results of audit and financial inegularities ' 506 38
Chaptcr l8-Approprialion Accounts of the Defence Services s32 44
Chaptcr 19-Rcport of the CoEptrollcr and Auditor General of India, Union Governmpnt
(Defence $ervices) 583

APPendices

Appen4ir l-Itrstructiolb for th€ oaintenalce gf records of service of Regular Officers of the
a Indian Army (including Nursing Officers) by rhe C.D A.'(officers) and Civil
Account! Officers paying Bilitary officcrs in civil employ 62
63
App€ldix 2-L€ave Proccalure
Appendir.3-Powers of the Coltrollet General of Delence Accounts ' '! " o5
Aipendir 4-Annual Review of M'ilil8ry Engineer Services Expenditrre ' 68
eppendix S-Powers of Coirtroller of Defence Accounts 7t

(iv)
 CHAPTER I1

I\{iLTTAft,Y I,NGINEER Sf R.VI CE S EXPE]I'] I'ITiJ ITE

Pa ra

rl ! Scope of Audit J-O

t- Pleliirinary Audit by MES AA^T] 3?-'7
z-- --€. Audii in Controller''s O.ffice 315
Ir t Locatr Audit by R.A.Os ll8

Scopc of A,rdit 329. The A'*.O wiil sec that th. rulcs and orders in
l'crce ale observed in respcct oi ail tlansactions
326. The- audit of Military Engiriecr Services
which f;rll withi:r tire sphcre oi'his duties. If he con-
expenditure is cordLrcied ;n thr.c stagcs:
siders ihal ilrytj:ar.si:r:iion affcc'rin! rcacipls cr
(i) Preliminary audit by lhc Unit Actcurllailt cxpenditur-t is iik:ly to bc chrilengrd in:utlit (by tlic
atlach?d to each lv{.E.S. lbi'uratioti. Regional Audit Olllcer o: rhe Controller of Dcfcnce
(2) Audit in Controller's main ofiice Accorjnts) it is his riut1, to brirg this facl irinecliatcly-
(-r) Local ,{udit by tlie Regional -Audit Officcr at to ti:e no1ic. cf thc ircai! of the f.rnral;tn wilh a
tire timc of his pelio<!ical visit to tire stiitcincnl of his rca:ons. and !o o'btailr his ort!,:rs on
M.E.S. fcmration. lhe c:rse. Should tile l:i.E.S Officcr clisi:grcc rlil-1r
Notc: The tcnir 'Regioual Arrdit Officer' hirir. the A.AO .shilli conill/ r,r'ith iris orelers anj con-
includes'Local Audit Officer'in areas, rvhere currer'!1ly tcpoit the lull iacts of tiri casc lo iirc
{hc inspection and review of Local Audit of Rcgicrrai A'ldit Ofl-rccr or tire Controiler of Deleitce
accounts of M.E.S lormation: has been
Accou;:ts, as the case nay rcquirc, The Regio:ral
cn{rusted to him.
Ailitit Officcr. il unabie to settle the case hin-<cif. rvill
Prcliminary Aurlit by lli.{.-S llnit Acc'}uniant report tbc fects to tire Ccctrciie r cf Defence -qelcullls
32?. Thc functicns of the AAQ of the I)cfeuce togetl:ei with his vlc'ns for a finai rlecisicn.
Accoul,Its l)epartmcnt attilched to Engincer olfices
arc thrce fold: 3J!. T hc Urit A-ccounta!}t sirolid 1-rring ii) ile
(i) As AAO, i.e., mainlcttr.ncc ol ccrtain notice of thc head c,l the M.E.S fin'ration all rnstr,:r-
acccurits in accordance rvitll thr prcscribed ces in *hich tlie suborJinatc oi'ficers cxcccd tbe
rules an<! from the data firrnisltcd to finarlcial limitations placeC on lheir powers. I{e
bim. :raiJ aiso be rciiuiieil b-v thc hcnd ,,i'-l:r fornllitn tc.
(ii) As piiurary AudilDr. i.c. epplyii-'g .-,relitninary un<ic|take crrr his bcl,alf such oiher scruti$-v of tirt
chccks to the initial atccluats anil accou!its of ssbortiinaic oiflcers as the i:rilcr tiiav
vouchers, !l ic. consi<iei: t cccsslrJ.
(iii1 As Finarr:ial Asslliant ancl AC'"is;r i.e.
:i-11" i'i.!.S .rfficirs aic required to oirtairl lhe
gcnerally assisting and adr,isilg the hcarl cl
ad',ice cf tireir .A.A(J in all r.latters connecied \vi!h the
the i{.E.S fornaiion in all l atters tcialing to
thc :iccounls and buiiget estinares and ihe eccounls cf thcii forlnntjon or the appiicatiri of
I

,)ucrllion of fi ra,lci,rl 'r,i"s. ilnrncirrl mles a::d c,rders conr:crni:rg -*h ich i:1eta
:::a1; !:e :crie di;u,1-rls. ln all cases of ir:rpo:tance. !lia
i- -1;R, l.r tt'c C,icharlc oi llre ,i rt.l.: !; i.l C . ra i-. ;.,;ii) viii give h:s a,h'ice in u.dting, \,{'hiic ii're
par' "i27.
tiie AALI is cxpcctcc! lc ke*p iii::rr:if fr:ii'r
l-{-5"S Oiilcqrs a:.: not precluded fror reeking tlie
conversarrit *'ith aii Governnent anii ilei;art':ne:rtel
a(irire iii RAa;/C1.!A- whenei'er tbe,v c<.\rs;.ler srich a
crdeis, Arar-'/ instruction:- etl. ccr:iieei"C "s':lh his
-*,crk lnil with all satictio:rs :ri! ilriicl,; i.';ssilg iccare nf.es:iliy 1l'.cv shouici l-!1sl cbtain i.he etir,ir:t
ihrcugb lhe M.E.S cffice :trr.i llhcr piJc.cdlr'.gs lhnt sl il:cir .rrAil vicie para 8 )v{.E.5 R,:;5-ilations and
rnay ellcct l.he cstinini-B rir Secotitils oi ::cti-rai cr riroukl reier r'lrri.ters iO tire RAO.|C.IJ.A *niy wirel
nnticiFatc(i rcceipts. errd chargcs. ihey da not agre; rith tire AAC.
 CrrAP. i ll MILITARY ENGTNEBR SERVICES E)GENDITURE 1332
332. The lbllowing is the list of the main items of (g) Verification of annual returns of electric
work donc in lhe Accounts sections of lvLE.S and water. etc., installations.
lomr?rtiorrs: (h) Check of construction accounts and
(i) Garrison Engineer's of{icc: preparation of abstracts thereof-
(a) Scmtiny ancl check of alloturents (i) Reconcitiation of financial accounts
and appropriatio ns. wit,'r construction an I othe r accounls
(b) Clteck of bills and other vouchers ancl registers.
iircluding allocation before subnission
Q - 0) Local Audit of all the numerical and
r to thc C.D.A lbr audit.
(c) Check of all bills and vouchers paid by
quantitative store ledgers, accounts etc.,
maintained in Sub Divisional offices.
thc GElImprest holding S.D.Os froil issue of :bjection statements thereon
i thcil Cn sh Assignnrcnt'lmpresl. and watching their fi al setllenent
(d) Submission of cash book togethcr with through an Audit Progress Register.
thc supporting vouchers (which are (k) Reccipt of the contract docurnenls con-
rcquircd to be sent tcl the C.D.A) in cluded by ihe Gariison Engineer and
original to CDA: and monthly con- Deviation Orders of all contracts and
solitlated punching meiiiur' LAF subnrission of them to the C.D.A after
(C.D.A) -3i6to E.D.P centre on due ensuring that these are properly maile
clates. out acccrding to standard forms and
(c) Chcck of: that all rouline requirements aie con1-
(i) PliccJ stock lisl (i.c. lijl contlr;u;ng plicd uith by the executivc.
stock book rates) (l)'Issue of Quarterly Statemerlt of items
(ii) Stock Purchase Register held under objection in Form IAF
(iii) Rcgister of Securities (CDA) 262 to the executive and their
(iv) Registcr of Approvais to works submission in dupticate to the CDA by
(v) Works Passing Register the 15th ol the seconcl month folio*ing
(vi) Rr:ad Registcr (property that to which the statcment relates'.
. accounts)
(ii) Barrack/Stores office:
(l) Ma interla nce of:
(i) Rent assessurent ledger (i) Maintenance of revenue lerigers
(ii) Registcr of buildings (a) dn upto date record of rentable
(iii) Contractors' ledger bui!dings.
(iv) Suspcnse Register (b) Revenue Ledgers
(v) R.egister of sanctions (ii) Scn;tiny and check of occupation
(vi) G rriir.l lile of spccirricr sig-
teturns, r€turns oi- recoveties, statements
na tu res
showing hire charges of furniture and
(vii) Rcgister of ltlcirsurcncnt books
reirigeratots etc. and posting thereof in
(viii) Registcl of receipt books
the revenue ledgers.
(ix) Register of Unstampe d Ack--
(iii) Preparation and issue of rent bills and
nowledgements receipt books watching the receipt of ack-
(x) Registel of Requisitions.
nowledgements from the P.A.Os and
(xi) Duplicate copies of contract
duplicate copies of the iop lists from the
agrecDlents and list of ccniracts.
I
Controllers'oifices.
Ir (xii) Register of Losses.
(xiii) Register of l{uster Rolls {iv) Aud:t cf Meter Reader Books and Con-
I
I sumer I-edgers of electricity and
{xiv) Maste l Notc Bcok. water, etc.
I {xv) Re gister showing namcs and (v) Check of:
'l initials cf 5o(A)/AdO and clerks
serving in :rccts/sn. (a) lVater and electric bills issued to
{xvi) Rcgiste r of terminal conrpe r,sation consumers billed for direct bv
claims. B.S.O.
 CrLr, 1 1l MITITARY FNGINIlER SER.ViT]ES EXPF}:.] I ], lTI JltF []12-3.16
(b) Quartcrly r,,:ucliers lor suFr.aly Jf {ii) thc accurrcy ol the classification of thc
wiliqI lo I,t\.in[ , ur']suln{Ii .,nriCl :l:r rg,. ;t;,.i;'51 titc w,rrl's. l.'r\.rn:. ser\i.cs
para ?12 Regulaiions for ih; and ireads of accounis concerned;
M.E.S. (!ii) rhe pr-ool of paynent tt] th: corrcct incliviJria!
tllorrgi:
I '- (c) Bills lor pay lcnt of vraler and
eiecir-iciiy chargt,s to irr:vale
(i.e. aire erislenLre
irJ vo1tibr:r.' ibr all p:iynrents. pher"-
of a propedy receip-

ncccssar;,'); aii j
1
?rgcrriccs 1.vil11 il-,e i.neler lenders'
bo,rl. :tl i.ii ir. .lui rl;'.e\ lie (iv) the observrlce cii st:irrdards of fioalciai
{ concertrci. grr op rict;-.

iti) Whtcliing ihe recovery of irliiing and 336- lvi.E.S. work in thc Contiollei's Ollice is
housing chiirg:s biilcd lor by the !i.F..5. niliirly dcalt .r'ith il two scctions:
arr tllor;iic\ -r),i::r]! ')riv ric cr:rrril:riri, s.
(a) FinrncitN Advicc Scciion.-'fhe section deals
(iii) Engineer Prr-ks: ldrh tlic lvorld ci) necied with Local Audit e.g.,
ciecisions cu reli:renics fionr F.egion;rl Aurlit
(i) I-ocal A.udis of ai1 thc nunerical an<i
Olficers/l..ocal Audi'i (.)fircers on audit and pro-
qurr,tital.ire slorcs lcdgcrs zrccounts clc,
ccdural n1zlitcrs: rJralt paras ol Audit Report.
ruiriltulncd in ilt, Pulls li,l i.srrc ol (Dcfence Services). examilation of CoYefrmenr let-
objcction stalcmerLi: theieon anC watch-
tiirs dtc nn(l tireil rirculation to R.A.Os,{-.A.Os: audit
.ing their fi al scttlenient thicugh the of loss slatcrnerts, iocal Tcst Audit reports, includirrg
auelit proglcss regisler.
i portant preliminary slips containing a definite and
(ii) Mainte nancc ol* a fornulaler.l objection: tour revierv notes; R.A.Os/
(a) Register of schedulirg of issuc I-.A.Os inspcctiorr rcports; rendition ol appropriation
vcuchcrs accou!rls: questions reilrting to recovcry of Licence
(b) Ilegister to watcir iitrking of cou- Fce alrl ailicrl cl-'iirgcs i.c. inlcrprctlIion of rules in
signols' is:rrc \ouLirL'q ARI Quaricls and Rcnts a!l(! otl]er connccted ry1es
and olrlers:
(c) Denra:r<i Register
(<l) P:y;--rer':t iss':e regi:tcr (or rvatciring (b) Enginccr Scction.-Tlic woik rel:rting {o auclit
recoleries on acaount cf cosl of stoles of h4.E.S cxpcnditule *'.hich will mostly consist of
elc, issued to siatc Govt., P.W.D-. scruiiiy .,nd vctting of cont:-acts and arnendnents
C.P.\'v.D.. privaie botlies. etc. ) ar.!d deviatioir orders thereto and the solution of all
In addition to ihcse. the itetrts iraikc,.i disputed items in a contracl, ilu(lit, and a rhorisation
in the list of ii.irls iclating to the GE's of claims which are unilisputable and plesent no
C)illcr are 1ii.o r,orrirrlly tlorLe irt Iirc Couiris. wiil be dcirlt with ia the Engineel Sec-
aacounts sections ci Engineer tion. In additioir, tire follorvin6l items of wor i. will
Piriks. also bc clone in the E.ugineei Scctir:n :-
333. DctaiieC i!st':ucliorls fot' tire aridit by the (i) Scrutiny of Administraiivc Approvals and
A{C are laid ilorvn in 'N1.8.S, ,{4O Manual'. Technical Sanclions.
(ii) Check ol Approirdations and rc-appro-
134. liank.
priatic irs.
i A$dit in tha Contrr.,!lcr's Officc (iii) Scrutiny of re-apploprialioll staternent of
buitdings.
of pl.E.S expcuditure in ihc con-
i
3i15. The audit of demolition stotcmcnts
(i'vJ Sciutiny
trolier's officc is conducted in accordance with lhe (v) Subnission ofprescribed Reports and Retulns
gencra! principles and r.::les iaid dorvn in this in connection rvith thc accounting anci auclit
Code. Due regarrl should, horvcver, be paid to tire of M.E.S expenditure.
financiai ruies and orders of the Covt. The main (vi) Scrutiny of Sale .A.ccoullts relirring to
pointi witli refcrcncc to whicll the audii scrutiny M.E.S
should be exerr:ised are ihc follc*'ing:- (vii) Freparatirln cf Annual Rcview o i' M.E.S
{i) thc suf{icicncy of the authodly for incurring expcnCiturc and Iiinancial Stock-'ir:i:ing irr
the expendit Lre; M.F,-S
CHAP. 1U MILITARY ENGINEER SERVICES EXPENDITT-TRE [336-341
(viii) Provision of cash assignment to M.E.S (iii) tosee lhat all moneys relating to public
officers funds have been duly accounted for and
(ix) Scrutiny of Terminal Cnmpensation claims expended only for the purpose for which they
forwarded by D.L & C authoritibs as well as are intended; and
, the M.E.S
(x) ?reparation and submission of half yeaily (iv) to that the AAO poste<i by the Controller
see
S.I.O is efficient and discharges his duties
(xi) Cases of higher audit objections satisfactorily.
(xii) Audit leports to higher authorities, etc.
(xiii) Test Audit objections and Draft Paras relating 339: The Regional Audit Officer/Local Audit
to works Officer and his staff are expected to audit completely
and intelligently all transactions of receipt dnd
(Notc: This list is not exhaustive. For detailed expendirure which fail. within their respective sphere
list sec para 5 of OIIice Manual part VII!. of check. The Regional Audit Offrcer LAO will also
337. Detailecl instructions relating to the work test check lhe store accounts ol the Sub-Divisional
done in the above sections of the Controller's Office Officers locally audited by the AAO and satisfy him-
are laid down in 'Office Manual' part \rIIL self that the AAO is carrying out.his duties satisfac-
torily. These test-ihecks should be in the nature of
Local Audit By Regional Audit Ofliccrs/Local 'sampling'for inculcating in the subordinate execu-
Audit 0fficcrs tive a rvholesome fear. in the auditors a better audit
338, The main objects of inspection and local sense and also to see that they do not, by neglect or
audit ol M.E.S accounts are:- by collusion defcat the objectives serwed by the pre-
(i) to subject to audit such accounts, vouchers, sent scope of audit.
etc; as are not audited or as cannot be satis-
factolily or conpletely audited in the Con- 340. Detailed instruclions relating lo the Locel
troller's main office; Audit to be calried out ty the Regional Audit
(ii) to sec that the initial records from.which the Officers/LAOs at the timd of their periodical visits to
accounts or bills, are prepared or on whicb. the'M.E.S fonnations are given in the M.E.S Local
they are based, are properiy maintained in Audit Manual.'
the prescribed forxrs antl are checked as laid
down in the Rules; 341. Blank
 CHAPTER I2

MISCELLANI OUS ACCOUNTS AND PAYMENTS

Fund Accounts : Para

Audit of Fund Accounts
Interpr.ctation of Fund Rules 342
Prolection of Fund Deposits 344
345
Ficld Cashiers' .Accounts :
Functions of Field Cashiers,
Specimen Signatures 347
Audit of Field Cashiers' Accounrs 352
Surprisc Check nI Cash Balanccs 353
Changc of Field Cash icrs 357
Imprest Holders' a""otlnt 358
Accounts of R.rnouni O"pot, . . . .
359
Accounts of Remount purchasing Officers 3U
366
Recruiting Office rs Accounts :

Accounts of Recmiting Officers other. than those

for Gorkhas
Accounts of Rccruiting Officers for Gorkhas 369
Military Treasure Chest Accounrs 374
317
Fuqd Accounts (iv) a reconciliation between the Fund
Accounts
Audit of Fund Accounts of all the subscribcrs to each Fund and thc
cornpiled actuals thereunder is effected mon-
.342. The audit of transactions pertaining to pro_ thJy as well as annually to ensure correctness
vident Fumls controlled by Gove rnment mainly
con_ of postings;
sists in seeing that these transactions conform
io the
n.rles and regulations governing the administrztion
of (r) thc annual strtements oI i]ccounts are fttr_
each fund and any subsidiary instrucrions issued
nished to the subscribers conccrned and thcir
lhercun(ler. Subscriplions to a proyidenr Fund catr
certificates of acceptances of balances are
be receivcd only from such Government servants
are required or permitted by the rules of the
as obtained in the prescribed manner and pro_
Fund to perly recorded:
subscribe to it and the amount of subscription must
be within the prescribed - minimum and maximurn (vi) a nomination form, duly courpleted
limits as laid down in relevant Fund Rules. Having in all
respecb, has been secured in the appropriate
satisfied on these points, it should be seei form from each srrbscriber to the Fund', and
that:- the nominations made are in order:
(i) subscriptions are duly and regularly
(vii) the advances are covered by the rules
recovered from the Government servants and
concerned and that interest is calculated at
have becn sanctioned by the competcnt
the cofrect rate: authority and are recovered in instalmens
fixed by thar cuthority:
(ii) in rhe case of Contributory provident Funcls.
Government's share is properly calculated (viii) uhere an lnsurance policy is proposed
to be
and brought to account: financed from a proviclent Fund, the policy
(iii) has been assigned to fhe president that no
the accounts of the Fund are correct both in
prior assignment of the policy exists and that
total and in the detailed accounts of the
evidence of payment of prenium is
subscdbers;
furnished:

2-3lccDA/ND/92
 CrrAr'. 121 MISCELI-ANEOUS ACCOUNTS AND PA\'lvlFNTS [3{2-3s2
(ix) in cases where a subscriber to a Contributory 348. The lunctions of Field Cashiers and the pro-
Provident Fund is permanently transfened to cedure for the preparation oi cash accounts for rendi-
a pensionable service and elects to count tion to the C.D.A. (Officers) are described in derail in
towards pension such part of the priod, dur- Appendix 27 of Financial Regulations Part
ing which he subscribed to th€ Fund, as per- II. Broadly speaking their main functions in regard
mitted by Govemmen! thc amount of to monelary transactions are:
Government contribution with interest (i) to keep an adequate supply of funds under
lhereon standing to the subscriber's credit in arlangements made with the C.D.A
such Contributory Provident Fund is repaid (Officers);
1o Govemnentl
(x) the payment of the claim is made to the pro-
(ii) to supply funds in bulk ro authorised Field
Imprest Holders on presentation by them of
per payee in accordance with the procedure requisitions on I.A.F.F. 1036;
presclibed for such paynents and it is so
recorded lat a second claim on that account (iii) to pay advances of pay to rndividual officers
can be detected in audit: and on presentation of personal chcques. in
I.A.F.F. 1034, upto a maxiuum moiithly limit
(xi) a pensioner (Civil or Military) on re- endorsed on the cheque books;
employnent in industrial or non-iirdustrial
posts including a Gazetted post is permitted (iv) to make such other payments as may be
to join LO.F.W.P. Fund only and is not specihcally aulhorised by the C.D.A.
rllowcd to continue rs slrbscribers to tlrc (Officers), or as directed by the Dilision/
G.P.F- during the pe riod of re-e mployment as
Folmation Courlnander in exceptional
cases:
requ ired unde r Rule 4 of G.P. Fund (DS)
1960. (v) to accept and to bring to account forthwith
all suurs tendered by any member of Defence
343. Blank Services (i.e. Officer, soldier or civilian) in
lntcrprctation of Fund Rulcs settlenlent of public claims for clothing, etc, .

issued on paymenl or as being due to

344. The lcgal position in regard to thc provisions Government on :lny other account; and
in the Governurent Provident Fund Rules has been
(vi) to a.cept and to bring to account in his Cash
dealt with in the Mcmoranduur Explanatory of
Book. sums handcd in by Field Post Offices
Governurent Provident Fund Rules vis-a-vis the law
for credit to the postal depai-tnent.
on thc subjcct. All points of cloubt in applying thc
fund rules should be refelred by Contro]ler's to the 349. The funcls are required by Field Cashiers,
Controller General of Defence Accounts. who have been appointed by col)lpetent authority are
provided by C.D.A. (Officers) by means of Cash
Protcction of Fund Dcposits Assignmcnts in their favour on thc nearest Civil
Treasury or branch of the Statc Bank of Inrlia.
345. The Proviclent Fund AcL 1925, protects
deposits both during the life time and after thc death 350- The Field Cashiers are required to render
of thc tlepositor against creditors and also against daily to C.D.A. (Ofhcers) a cash account, in IAFF
Gove|nrnent save to the extent contemplated in sec- 987, duly supported by vouchers, in which all receipts
tion 6 of the Act in the case of a Contributorv Provi- and payme[ts duting the day are brought to
dent Fund. account. C.D.A. (Officers) will watch for the rcccipt
346. Blank ol daily cash accounts lront tlrc various I.irld
Cashiers in whose favour cash assignments have
r Ficld Cashicrs'Accounts been airanged by his office.
Function of Ficld Cashicrs 351. Blank
347. The appointments of Fielcl Cashiers are held Spccimcn Siguatures
by officcrs of the Defence Services and the Foma-
tion Commanders are responsible for ensuring that 352. A record of specirnen signatures ol all Field
the Field Cashiers carry out their duties in accor- Cashierswill be maintained by C.D.A. (Ofhcers).
dance with the rcgulations and the accounting This register will invariably be consulted al the tine
instructions issucrl from time to time bv the of auditing the cash accounts in order to ensure the
C.D.A, (Officers). genuineness of signatur'es.
 CltAp. l2l MISCELLANEOUS ACCOTINTS AND PAYIVIENTS
[3s3-3s?
Audit of Ficld Cashierst Accounts 355. The iterrrs of payments appearing il thc ci:i-1.!
353. On rcceipt of the daily cash accounts accoullt will be dealt with as ibllows:
the
following points should be seen: (1) All advances ol pay anrl tr.r:velling allowan_
(i) the account has been rendcrecl in the appr.op- ces etc.. paid by Fielcl Cashiers to-officers in
riate form (IAFF 987) ancl is courplete in rhe paylrent of rhe [.D.A. (Officcr.s] will be
t
*i all respects; note,i i\) rlrr C.D.A. :n deurand regi.iters.
(ii) the opening cash balance I.R.L.As for recovery. Such advances will l_.e
agrees with the initially compile d to a ,suspense, Head,
. closing cash balance in the previous clay's
cash account: which rvill be r.ciicvecl when the advances
havc bccn notccl l'or recovery. The detailed
(iii) the funds entmsted to the F iekl Cashicr are accounting proccdure in this respect will be
not utilised for unauthoriscd purposes (e.g. found in the Office Manual, part IX [Con_
cashiug of private cheques, etc.); trollcr of Defence Accounts (Officers).1
- 1irrl th" amounts received ancJ <lisbursed have' (2) Advirnces recor.rrable from olficers not in the
becn correctly account€d fol and are suppor_ payuenr of tire CDA(O) will be debiterl by
ted by the rclevant vouchen: hiln to the audit officer concernecl through
(v) the amounts accounted for as receipts agree the Dcfence Exchange Account or through
wilh the aurounts drawn fr.om the assignment the Seltle1nent Account. as lhe case may be.
as intimatcd by the Treasury/State Bank of (3) lurrp s,.rrn a{lvln(:cs paid by Field Cashiers
Intlia tlilect as and when drawals are to Fiekl Inpresr l.loltlers on iAFs. F 1036 will
m acle: be noted by the CI.D.A. (Olficers) in a
1vi1 thc closing cirsh balance is corrcct arrJ rloes ,Jernan.l rcgisrer kept scoilrrt.ly lor cach Fav
not cxceed the nraxinrum linit fixed bv the Accourlts Olilcer.rrrJ intitni.rcd on IAFr A
Dir it:, rnr l Cotnntander: anrl 524 to the rcspective pay Accounts Officers
(vii) that iLr thc case of final account. the cash (Other Ranks) ro whom thc lrnprest Holders
render thcir accounts. AcknowledgeDtents
balance is paid into the Tr.easury and the
fr.om the pay Accourts Oltlcers will
final account is supported by the Treasury r,vaiched and cin reccipt
be
Reccipt. will be recorded in
the denand registcr and the items treated
354. A,lter the czrsh accounts have been auditecl as as clearcd.
abo.,rc. rlrc itcms oI rr'ceipts appcar.irrg ihcrein uill bc
dealt lr as follows:
rr it Note: Such advances will nor be debited to the
C.D.A. (Otirer Ranks) through Defence Exchange
(i) credits for all amounts received from .Accourits. but will be compilcd by the C.D.l.
Treasuries/State Bank of India
will be ailjus- (()[[icers) by rlcbit ro I Suspensr. llead. lhc pAOs
ted under the Defence profornta Accoint: wiil credit tlrc slrre suspcnsc h,.rrd irr rltcir looks
,4ccounting Proce,.ltrrc; while adjusting the iurprest advzrnces. Thc rlcrailed
(ii) credits for postal collections of Field post proceclure will be found in thc Office Manuals part
olfices <lepositecl with rhe Field Cashicrs will IX ancl X.
be passcd on to the D.A.G.P. & T. Nagpur
througll the Settle nent Account: 356. Blank
(iii) nrisccllancous receipts perllining lo Dclerrcc
Jeruces w)ll be contpilcd rinrlly unJer tlre Surpcise chcck of Cash Balanccs
sewice hcads conccrned by the C.D.A.
(Officers) in his own books. intimations of . 357a.llr.e c D.A {ol-ficcrs} w;ll wrtch lor r..;,orrs
llonr Divisionr,l nr orhcr Formation C,rmmandc,i on
recovery being sent to other Controllcrs-
the periodical surprise checks carriecl out bv ofn..,,"
where necessary; and
depured by them of llre ca5h brlanees hel.l Uy rtre
(iv) miscellancous receipts which are requirecl to Field Cashiels. The cash balances are icl,olterl by
be adjusrcrl in the books of othir autlit Divisional or other Fornation Commandcrs will be
\ officcrs will be passed on to thc audit officers tallied rvith the balances as shown in the rlrrily cash
conccrne<l I hrough the Settlen1ent Account or ;rcco.rnts (IAFF 98?t ;rnd rny rli., reprnci..s founrt
l)clence l:xchange Account. as the case *ill be lepoltc,.l to tlre Divisior :ri Coirr nrarr .jers
may bc. for inves ligatic,n.
C|IAP l2l MISCELLANEOIJS ACCOIINTS AND ?A:MENTS [3s8-
Claage of Field Cashicrs (9) The following iteurs are not ntet o!
lDrprest :
358. In the evcnt of a change of Field Cashiers,
the certiiicatc refcrred to in Para 19 of Appx. 27 of (a) Advances of travelling/allowancel
Financial Rcgulations Part II regarding the ohysical than Rs. 50.
statc of balanccs on thc date of the change as com- (b) I-ocal purchase oI stliionery.
parcd rvith the balance shown in the cash book on
that day, shoukl invariably be looked for in audit on (c) Bulk local purchase of stores and
rcceipt of the first cash account of the Field Cashier plies unless specifically authorise
who has assumcd chnrge.
Note: If this charge is met out of the Imprr
should be seen lhai the Impxest Accor
Inrprcst Iloldcrst Accounts
recouped with the amount.
359. Dctailcd instructions regarding 1he prepara- (d) pcrsonal allorvances.
tion and rerrdition of Imprcst Accounls by Imprest
Ilolders arc gir.en in Appendix 26 of Financial (10) A note of the surprise checks (occasior
Rcgulations Palt II. least once in three months) of cash bal;
on hand with the Imprest Holder is rna
360. Thc following special points ruill be seen in the Inprest Account by the officer who
conclucting the auditof iDrprest irccounts: ducteC the check.
(l) The account has been signed by the officia'l
Lnprcsf Ilolder. 361. In thc audit of acquiltance rolls recr
frorn Inrprcst llolders, the following special p
(2) All dcurands receivcd fiom Regional Con- should be secn :
trollers, etc., for advances paid to Imprcst
Floldcrs have bcen accounted for correctly. (1) The lotals on each page and the grand
il tc corlecl.
(3) Thc closing balance (excluding the postal
collections if any, if authorised as per clause (2) Proper acquittances have been obtaine
5 bclorv) is within the monetary limit lhe acquittance tolls for the amr
prcscribcd. disbursed.
(4) Cash in bank and casir in hand have been (3) The officel detailed for payment is not t
exhibited scparately. the Rank of 2/lieut-
(5) Sanction of the Fon:e/For- ation Cor:rlrlan-
dcr cxists for crediting postal collections in Note: l.C.Os are not authorised to sign ar
lance rolls as Paying Officers unless they thens:
Iurprest and also for the paynerlts of
arlvitnce of pily lo officcrs oul of llnfresl. al
hrve bccn appointed as Imprest Holders by the
slations whcre banking facilities do not pctcnt authodty vide Appendix 26 of Fina
exist.
Regula lions Part IL

(6) No Imprest noney has been lent to another (4) Altcrations in figures have been attested
Fun(l or Iuprest Holder without ihe specific the full signature of the palng officer
authority of thc C.D.A. (Other Rank-s) nor are
(-5) In non pperational areas, or at places I
Ioans obtained from any unauthorised sourcc
irre not declared as Field Service payme
in replenishmerlt of Ilnprcst to neet
excess of Rs. 20 to JCOsAV.Os are rece
urgcnt denlands.
over 20 paise reverlue sta lp.
,(11 Civitians at peace stations are not paicl
lhrough lnprests. Supply and Scrvices Imprest

(8) \Vhencver there is any change of the Imprcst 362. Detailcd instructions regarding the pror ir
Ilolclcrs a certificate of Inrprest holders of supply and services Irnprest to all units anci
change is rcceived with the Imprest mations inclucling Supply Depots are gi1'er'
accou nl. Appendix 28 to FR Part II (1968 edn).
 MISCELLANEOUS ACCOTIN'IS AND PA\'}{ENTS [362-363
CHAP. 121

(3) Wherever there is any change of the Imprest

Aclvances towards Jupply and setvices Imprest for
Holder, necessary intimation alolgwith the
making payments of different types as envisaged in
specimen signature of the relieving officer
,looeniii ig to Fn PT lI and Gorr. of India Minis' has been received.
i* of D.Ln.., New Delhi corrigendum no' 6'1184/Q/
sisl+:qslo (QS) of 2618/81 will be drawn from (4) (a) The opening balance tallies with the clos-
C.D.A concemed by submission of cash re- ing tatance of the previous month's
quisition. account-

On receipt of Cash requisition fcr drawal of advan- (b) The casting is checked
ces the foilov/ing special points should be
seen:
(5) The amount drau'n as advances has been cor-
(l) Request for advarrce has been made on rectly brought on account in the ImFrest
IAFA 1036. Account and it tallies with the one recorded
in the SuPPlY and Services ImPrest
(2) Imprest account number allotted by the CDA Register.
is quoted on the cash requisition'
(6) The procedure prescribed fol early settlement
(3) The requisirion has been signed hy no.tified
of conlractors bills and prompt submission
authority whose specimen signature is on of documents in lhis regard (including 90%/
record. In this connection, the provisions 100% ASC bills' casual labour bills and other
contained in para 6 (a) (b) (c) of the Appen- lo
Davmenls voucher relating authorised
dix. ibid' refer to in Particular' puyrrr.ntt' eflecled out oI S&S lmprest
(4) lt should be ensured ihal lhe balances of cash iccount) vide Army Hqrs QMG's Branch'
in hand and at Bank plus lhe amount of New Delhi letter No A/66595/Q/STS/Q1(B)
.advance does not exceed the ceiling mon- of 1l4l'77 is being complied with strictly by
etary limit of Imprest sanctioned by the the S&S I mPrest Ilolder.
authorities.
(?) The amounts shown .as expended in the
363. The Inpr€st Accounb will be maintained by accounts are supported by relevant payment
the Imprest iolder in form IAFA 821 in vouchers already received in the CDA's
Juoti."r". The accounl will be a simple chronologi- ofirce alongwith the weekly advance
*.ord o[ cash transactions purely lor
'Supl'lies scheclules and the expenditure so met out of
"^i
and Services' tlansactions showing dle-actual dates S&S Imprest Account are only lor the pur-
und untoon,, of all receipts and payments from pose provided for'
the
hrst to the last day of the montrh inclusive and the
opening and closing balances of cash and shall be (8) AII the paid vouchers and supporting
documents are received as per the details
rot-iti.a duly supported by relevani paymell schedules and
lro,r"h"rt by the Jue date' complete in all shown in the weeHy advance
the missing payment vouchers (pvs) are duly
resPects.
called for.
The following special points will be seen
(besides
(9) The amounts showr' as paid as per thc pay-
ensuring strict udh"t"tt"" to the provisions o-f AppI
of supply ment vouchers in fact tally with the amounts
ZA itia in general) in conducting the audit
rellected in the IAFA 821'
and sewices Imprcst accounts:
(10) In case tllere have been no purchases during
(1) The account is submitted on IAFA 821 within
the month a nil account is rendered showing
the stipulated time and there has been no
the cash balance.
delaY in this regard'
(2) The accourtt has been signed by the (1i) Whenever amounts are debited/nediled in the
account in settlement of discrepancy occur-
authoriseJ Irnprest Holder' in full rn..! thc
ring in the previous account' a copy of the
No. of Impresi Account and designation of
olrthotity for the adjustment hils been
Imprest Holder have been entered on the top to the accGunt
attached
of each account.
CHAP. 121 MISCELLAI.iEOUS ACCOIINTS AND. P,4TAIENTS [363-36s
02) All payments have been regulated through (1?) All objections/observltiolrs relating to post
cheques and following certificate has been audit of payment vouchers pertaining to S&S
endorsed by the O.C. Supply Depot in the Imprest are issued io the fcrm of objection
IAFA 1520 and the contractors' bill after sktement to S&S Imprest Holder and pur-
making payment : sued througi: A.P.R'
"Certified that a sum of Rs..."..... .. .......(in Accounts of Rcrnount DcPots
words)..............-..................{in hgures) has been
paid by me on...................-.. ...To..... . ....--.... ...Cut 364. Controilcrs of Defence Accounts amange for -
of Supply and Services Imprest Num- cash assignments at c;.vil treasuries or branches of
the arnount has
her-......--...........,.,.....-....That :he State Bank of India and its subsidiaries in favour
been accounted for in th.e Imprest documents ol Officers Commanding. Rcmount Depots for meet-
for the month o1.... ing all oidinary departmental expendinrre except pay
and allowanccs of establishments which are paid by
(13) Payment of labourers when required to be the CDA concemcd after pre audit. As an excep-
made from the Imprest has been mEde on !ion. bolh permanenl and lempotary class W
the muster roll. One contingent bill per establishmenis of Rernounl DFpols and breeding
mcnth, for muster roll on which payment has aiea may also, with the concurrence of the C.D.A
been made during the month has been pre- be pairl from the cash assignrient subject
pared to support the Impresl account. "on""*il
to post audit. 'Ihese payments are accounbd for by
the Officers Conmanding Depots in a cash account
(14) Final closing of Imprest: Whe n the necessity nhich they are lequired t.' render lo lhe C.D.A. con-
of a sanctioned Imprestwillaccount
at ottcc
ceases to
ttta cc'recl -"o rs r- r-,-L l;n by tlc lot}r 6f t'he adntl'
exis{ the IrnPias( Halder P't/ following that to which it pertains. r'he cs.D.A. will
cash balance of his account into the treasury watch that the accounts are r'eceived from the
on a MRO and forward the treasury receipt Olficers Comnanding, Remcunt Depots on the
alonEwith the hnal Imprest account clearly due date.
marked as such.
(15) Returnins of used cash requisition book: 365. The cash accounts will be audited in accor-
dance with the general rules governing the audit of
Wllcncuir a requesl lor issue of fresh C R
Book (IAFA 1036) is received, it should be cash expenditure laid down in Chapter 2. The
seen ars to whether such requests are accom-
following points will be secn in addition:
panied by the used C.R book. Before issue (1) that the cash accourrl has been prepared on
bf C.R book it should be ensured ftat all the the proper form and is duly supported by all
25 counterfoils including cancelled ones (in the prescribed scheduies and vouchers;
which case both the portions of requisitions
should be enclosed with the used book duly (2) that the cash account and the supporting
attested as cancelled by the S&S Imprest documents have been correctly prepared and
Holcler) are received and the same are found are complete in all resPects;
correct as per the Supply and Services
Imprest Register. (3) that the sanctions or orders of the coDrpetent
financial authority have bcen obtained' where
Notc: In case of units/formations whose S&S necessary;
Inprest Accounts are finally closed it will be
seen that the Cash Requisitions book (of 25 (4) that bills for the keep of aniinals are suppor-
lomrs) in use will be returned duly indicating 'ted by a ro11 of animals, by classes, in uhich
the fact as to the C.R forurs used and those i;re number of syces employed is shown
not brought into use. ' This numhcr should be chccked against lhe
nLrnber cf aninrals shown on the roll;
(16) In case any doubls should arise or di{ficulties
be experienced while complying with th-e (5) thal the bills for food expcnses of animals sent
requiriments and provisions of Appx 28' to units and forrnations are prepared on IAFA
ibid, either bv the audit authorities or by tbe ?8 and the charges on this account compiled
e*ecutives. solutions to such issues of as contingent expenditure of the Depot con-
variance ttray please be looked into under cerned; and
Appx 26 ol' FR Pafi II on the subject 'Field
Imprest Payment Instructions' before refer- (6) that the moneys from cash assigntttcnts are
ring the natter finally to higher authorities expended only on the objccts folrthich thc
ior clarilicrtions. assignments have been granted.

l0
CHAI. 121 MISCEI-LANEOUS ACCOIJNTS AND PA\MENTS [366-37s
Accountsof Rcmount Purchasing Officcrs 370" On receipt of these bills they should be chec-
ked with reference to the rules in Pay and Allowances
366. Indian Remounts are purchased under Regulations and Travel Regulations and with the
a[angements made by Remoui,L Officers in charge nonthly returns submitted by Recruiting Ofhcers of
of breeding areas, or specially deputed for the recruits passed or rejected. It will be seen that the
purchase. Instructions regarding the number, class
number for whom subsistence allowance, railway
and price of animals to be pulchased, hre com-
fares, advances or rewards are drawn does not exceed
municated from time to time to the Remount Officers
the number shown in the returns. The advances of
concerned by the Director of
Remounts and pay paid to accepted recruits on Nominal Rolls wiit
Veterinary Services. Cash assignments for the
purchases are arranged by the Controller concerned be noted by the C.D.A. in the demand register and
in favour of the officer on the TreasurieslBranches of the demands will be cleared on receipt of the ack-
nowiedgemenrs from the Pay Accounts Offices
the State Bank of India as pqr the requirement of the
concerned.
officer, These officers are required to render to the
C.D.A. concerned a rnonthly account of receipts and 371. The Pay Accounts Offices concerned will
expenditure in IAF 126 supported by IAFA 126 show- open an LR.L.A. for each accepted recruit on the
ing the amounts drawn by cheques during the pre^ basisFf Part II Orders and debit therein the amount
vious month and vouchers for the vadous items ol of advance ol pay and ration noney, if any, with
expenditure. The account is required to be rendered reference to the duplicate copy of Nominal Rolls
to the C.D.A. not later than the 8th of the month received from the Regimental/Corps Training Cen-
following that to which it relates. tre. They will then watch receipt of the tiplicate
dr copy of Nominal Roils logerher riith the hst of R.O.
367. On receipL t.€.e accounr uill be audired in advarrces from the CsDA and on receicr ack-
accordance rvith the general rules governing rhe audit
nouledge tlem and can] out tl: co;isei,rer.dai
of cash expenditure. It should be seen in actio n.
addition that:
372. The procedure ir. -:a:'a _i6S ai-,i: *-_
(1) Separate accounts are prepared in respect of equall;- appl;- ro icL-:lrit.( e hl :eco:.e ::: :l:.--_.,.:
each class of animals, i.e., horses. mules, for any reason before their:=r:l .:t tle R::-:-:::
camels etc.; Corps Training Cenrre. anJ ar].a:oJ:l q::;:-- :.:"-
(2) no-l be adjusred against an1 pa!-due. *11 l-: or-:;11
the disposal of each animal is shown on lhe oll under orders of the compe r::r .i:.-,: :..
face of each voucher which should be suppor- authority.
.

ted by a voucher receipted by the receiving

depot or unit; 373. Blank.
(3) the feeding charges are accounted for in the Accounts of Recruiting Ofl'icers for Gorkhas
appropriate form prescribed in the Remount 374. Monthly cash assignmenu are plac:d :... r ,
Regulations; and C.D.A. Central Comnrand ar the dispos, rr .
In^dian _Army Gorkha Recruiting Depoi and R::c,:ri,:l
(4) an explanation is furnished by the purchasing Office, Kunraghat, for disbursements to or ,tn tl:hit Ll'
officer if unavoidable delay occurs in the sub- of Gorkha personnel. Similarly assignuren ts it; I
mission of cash accounts. pla_ced by the C.D.A. Patna at ihe dis.-pos:i ,r l' rt
In^dian Army Gorkha Recruiting Depoi and R,r,rflrr
368. Blank. Offices, Laheria Sarai and Ghoom.
Rccruiting Officers' .Accounts 375. The following procedure will be atlourr:J ::
Accolnts of Recruiting Olficers othcr than those lhe'C.DA. who provides rhe cash assignmeri ir i.,
pcct of the payrnenls to Gorkha person-nel o|] ,,.r |
for Gorkhrs counts dctailed below :
|

369. Paymens for advances of pay, subsistence (a) Acquittance Rolls(IAFF i1l4) for pa.,rnr:r ts rr,
allowance and railway fares of recruits and rewards personnel proceeding on leave -aird . .
and ririlway fares of recruiters are made by Recruit- R.O.G. 26 lor payment of family..rll,r -,;
ing Officers (except Recruiting Offrcers Gorkhas, and special family allowancj rllr.l,itrr,r,
K:rnraghat, Laheria Sarai and Ghoom) from the per- ces:The original vouchers received ,',,itl.i ri:,:
Eanent advances granted to them for this pur- general state of accounts will. aftcr a o:r,
prse. Expenditurc incurred against advances will be liminary check and note of the amollnt ::r Ih
on subnr ission of detailed bills of expendi- demand register, be forwarded to :5 t, li,i:i
=couped Accounts Offices concerned supporttlcl ::,!
::e oo IAFA 115 supported by triplicate and . qua-
list of advances paid. The demin,l r ,;, r:l .:
J:-.rplicare copies of the nominal roll on IAFK
cleared on receipt o[ the rck3owl,., rc:: - .
r:68. lrorn the Pay nicounts Offices.

11
t

MISCELLANEOUS ACCOUNTS AND PA]A4ENTS [375 -'].r :

CHAP. l2l
Military Treasure Chest Accounts
(b) Acquittance Rolls (IAFF 1114) for pavments
to Released/Discharged personnel and fomrs 3?7. The rules for the guidance of Offir::r:r i

R.O.G. 21 for paymer".s of estates: These Charre. Military Treasure Chesls. are giv'r' I

appc-ndix ? Finincial Regulations Part fi

vouchers are required to be supported by pay-
(R 'i
'
ment authorities (IAFA 468) issued bv the Pay edition 1968).
Accounts Offices. Payments will be debited
3?8. On receipt in the audit of the m':'nt I "
-:

to C.D.A (ORS) through Defence Exchange accounts referred to in para 7 of that Appenrliii i
I account supported by acquittance rolls and will be seen that all rcceipts, other than cheq-Lr:;
f orieinal paymenl auttlorities PAOs will drqwn, are supported by receivable orders or chrtilrrtt''
I
a"Uit rh. l.R.L-A. cdnceniLd and close it lo nil oi po.rnt memo signed by competent auth,ori':
that lists of cheques drawn are lurnlshed ll
,

Daymenls should be supported by ws r'

balance. i

iharged cheques. The receipts 91d, palr'' r

(c) Vpuchers on account of payment of Pending appe-aring b': ct' f '

in the monthly accounts will then
Enquiry Awards, death gratuities : An intima- pit"A in it.r" manner laid down in para- 299 Dr:fr:r:rr:
tion ol the paymenls on the above accounl is iccount Code. See also para 267 ibid
sent by the Recruiting Officer to the Record
379. The entries in the monthly accounts shi:r'rl{
Offices concerned. The intimations are sup- be checked with those in the daily lists of rcrcr:irt
portcd by lhe rqkvant vouchers and IAFA 507 and payments, and it should be seen that tht: lr::l
(Receivable ottie'.) fot crediting rhe amou nts balance agrees with that shown in the certifca'!: c:'
to Gol't. to the credit of C D'A'C'C Meerut' or verihcation of cash balance by Military T'rea rt't ':
the C.D.A Patna' as the case may be The Chest Board. If the monthly closing balance irL i: r'r''
month is unduly large. the Officer in rl--h I t lli:
treasury receipts are sent to these Controllers
Military Treasure Chest' should be instru0ter l(l
f- oO"**"",. Ai the tilii of audit of the reduce ihe balance immediately either by short clr'rt 'it-
Recruiting Accounts, the payments on the ing or by a re mittanfe into the Treasury Dri li 'i
above.account appearing therein will be noted Bank.
in thc Demand Regrster. When the Treasury
receipts are received from the Record Ofhce
380. Blank.
concerned, the demands'will be removed' 381. Blank.

3'i5. Blank. 382. Blank.

12
 { ti.,i i'.; r it

P[:;::..i. ]H'j

Fcr,5;r_,f (.1., i r,, r

Ou,-l;t ,-.f p;-:sion :,ii:irns .

arrd auilit li pels:on:i

Pay'.r:.,rrnl
Ajl",. t -., ol ,-i,r: .j- e. ?:i,.,,nb ._.,ja.j.;r L,';r:-.
{ . ltr'rur:ti4r n. p: nsitrs
4
Fcnsira CIaims
ln .].:ses 'rleie a p:iLii{ti: ilt ::r:i.t :r::! ;
r: tl o;rv. nn re.ciDt of rhe o ar-. I,l ra,..-..1
383. Tle claims for the grant cf
lersicn tc ,rn-jer_ (-- (- li.A (Penriors) :h1,rlC, hr:fure :,rri.,.-,i:ir
Ereniioncd categeries of ir: dir,-r C,.r a ls paid ;.iom
neDt iiDe:r!jr:n. cf,:ck tj:at the !?.,.,!ti:. .rr-.r-,
Dei'e nle Serviccs Eslinate-c i:re deait v,irh
br, :lLe t!.- * -r.., r:td L.- | -.
C.C.l. A.1P.1 Alla hr b acj:
- l : i i; . .,. , ; , 1 , ,.
i. r,. r : i. r .
1 rr
Lt "
Se-i4c: 'c-.^: -cl .,. it - .. ,L

iri' i:.,lia- .,:..6:l ':..' .:. ,. ..:il.rr:.;: ...r :!Lir!i: ii i,(r1: )::.:; :\;e,: 4r;:, r-: ;:,1 lo: ...rJl ;,r
| )-i.':i-
.q,-,olXt. il.;id- :!-,:ir: tl 'r" ( i :..r'''..1 -i!: ,.'.-,i1.:,.n *-.,:,,...r,-:
.r; a ;i.r-i.r:,iri{ii1eC r-ilt-a r:s.
rl::
Ch.lef Cr:11161;.,. iif i,icli,Fr. /r..j.,.-::rt. r;j,:i.
j':.1.
-qllahahtd :s .l: carnpe :,-pt 1,;ig11jq/ ,,- ;:, 1--
s.r,rns) l- l:: l.k
:,on rji. rj.rt.i... i:iiiitls,/qr.rtt:i1\ :,.: il.: ai),_ _,.
categories o[ persornei/civilian : licrv:vi::, i]ie 'r'.i:" ,: ir,.-:.r..i.,t, i.lri :.
Ci. i.1-
trcller of Drfence .{ccnu nii li.la,;}lt illrnbay a,,i: -il.:i, Iire i-rlirx',:.ig rijrirr i,.-.jn,c v,it; i,i ..i-ji.
Contrcll"-r of Defence Accounts 1.+ir Fbrcei tieu, iu(iiiirJ the pension ciaims:
Delhi arc th: c:11:letcnt arJthontres ro sar,ction rhc
pension claims/gratuity in rcspect of Narl_. li) that the (.i,iiel is {1,. y 5!r-rcrlld b.: ,
anri Air .el-wt nt n.).tt--.,r\ :, i.-.-,iri-..."
Force iespectively wiro rerir.e/dle while in service
on ra!;^or, repo,l oi the rn:-rical boirC ,
or after lsl November 19R5.
require{l rtn4"r rulcs:
384. With the excep,tions of certain caregorics
(2) that lhe qurlil,ing ccndrrions
Eovcrnir
specifically mentioned in yarious pcn,.ion iegu_ grant of pensions as iaicl rlor,r,n il pe
ilirons. as rmer-ded frora linc le timc, thc lrrlr^;tu Regulations (Defence Services) or r

lo san:li-on pen.ions lo thc ps15q,1ra1 menti,\n^.1 in (Pension) Rulc ig?2, according as

thc
rara .{E-r.. is \esred in C.C.D.A. (p.n jiJns), CD q applicable are dlijv firif;!ied:
(Nary) Bombay rnd CDA r.{i) Ner, (3) ihar,- in
Dclh; In cases -casr:s
rvl-.,cr, a pe r.tion is r.lep,:
wlrerr :he iluthoirv to sanction pension is :rJI vestJLl oir the ir:ngth of an individuai.s qr,:1,
I
1t1h
Cr.D,A rPensions),CDA \a\1) Bomhay and ser."ice, tfi e verillL.arir:n of. servi,,,l is :r,:,:,
CD-A (.dF-) Nru. Del|i. lle) sublil a,r auLJit r;iort. ailrri('ci out bv r(,l'ct.cncjt tc the.lu,lill J I
on the admissibility of each clainr. to lLe r_"re-.crit e.i Air Forcert{avy lis{ shccl rolls, service b ,

i san.lioning tu!horjq ln l.oth ,-.,r.r, belorc itistory of services, e1c_ as proyided r

I i:ir.'t:oning pensir,n or submi irg Jn audii report lo rules and rhe qualif;ing serv,ice i:.
the sanctioning authority, the CCDA @ensions)/ rectly deiermined:
CDA {Narry) Bombay/DCDA (AF) Ncw Delhi (as the Notc: In cascs of Conirl i.rs.lrrcri Ofhcers- ver
casc nlay be) should verify that the quaiifying con_ lirrn o'nuu, t '-'t ".i'vicc is csi,i,r:i5iled
--.-:ns are fulfilled and that the ainount oipension referrnce to rhe flril pay comolissioneij
:::,:i:cred or rccommended f<;r sanction is ar1rris_ vlcc .eitificat. r.:rriercd b1 rhr CI).4
, -l: under the relcvant rul{:s. Punt a: rrell .;r .:,u,li;ri A:: .: ri:;r

:- . acDA/NIl./g)
 CHA?. 1ll PENSIONS
[]86-irs{
(4) that the report of the Medical Board in sup- 393. The audit of paynent of pelsion besides test_
polt of the claims for disability pensions on ing the lormal accur.acy of the vouchers, consists
account of disabilities attributable to or broadly in seeing the lollowing special poiuts:
aggravate d by Military service is complete in
all respects and the report has been prepared (1) the pension schedules/journals are prepared
: in accorclance with the rules laid down on on the prescribed fomrs and are signed by
thc subject; and the Pension Disbursing Officers:
(5) tha! in the case of claims for family pen- (2) the par.ticulars of the pcnsioners as shovn in
sions, the claimant fi dorrecrly eligible under the bills, schedules or journals agree with
rulcs to receive the pensior4and is not dis- those entered in the pension Audit Carcls or
qualified by reasoir of age- limit, rernarriage Audit Registers;
or er,nploynrent under Governmenl. etc.
(3) the rules regarding the idenrificarion ofpen-
387. The essential conditions, subject to which ser- , sioncrs are duly.obse ed by the pension
vice qualifics for pension under thc Civil Service Disbursing Officers. The identification of
Regulations are gcnerally that the service must be the person drawing the pension with the p:r-
under, and paid by Governncnl and shall com- son to whorn the pension was granted is arr
mence from the date he takes charge of the post io -I essegtial audit check, For the due pcrfor-
which he is first appoin{RJ eirher substantivcl} or in rllnnce oI this check, the Controlicr has
an officiating or ternpmry capacity. necessarily to rely on the disbursing
authority:
388. When sanction has been accorded by the
competent authoiity. the grant of pension is notified (4) the pensions have becn duly sanctioned anct
forthri'ith in pension payment orders by the thc anount of pension paid is correct-as
CCDA @cnsions). e notified in Pension paynrent Orders ar:rd
cntered in the Pension Auclit Cards or
389. Blank Audit Registers;
(5) the various conditions atrached to the grant
Paymcnt and Au.lit of Pcnsions
ha.r.e been fulr'illed:
390, The payment of pensions is arranged in com- (6) payment's ol lamily pensions, childr-cns
munication with Pension Disbursing Ofhcerr viz. ailowance or disability pensions, whcre
Treasury Officers/P.S. Banks/DPDOs, by the sanction€d for a limitcd period, are not nalle
C.C.D.A (Pensions), CDA fNavy)i DCDA (AF) Ncw beyond the pcriod for which they have
Delhi for various categories oflensioners. The res- been sanctioned:
ponsibility for the audit of pensions also devolves on
CCDA (P). (7) lhe presclibeil certificates and declaratiorLs.
regarding non enployment widowhood. etc.
391. All grants and payments ofpensions shoulcl whercver necessary have been duly signed
be recorded in the Audit Cards (Au<1it Registers in and aitcsted, wherc :equired, by persons
the case of hnperial Pensioners). These audit carcls authodsed to do so:
and registers will contain all particulars affecting the (8) thc denrands nored in the pension payment
pension, Whenever pensions are payable for a orders or the GoVt. dues otherwise realisable
lirnited period, or depend on the continuance of from pensioners are being recovered:
some particular condition, such as temporary dis-
ability pensions, pensions of male orphans, family (9) payments of arrears claimed after more than
,a pensions, etc, the conditions on which its con- a year as also payments to convicted pen_
tinuance is dependent, will be noted in the pension siouels are supported by the sanclion of the
audit cards or audit registers. The payments of pen- compete nt authority; and
sions will be noted therein after audit. (10) the prescribed lile certificate is furnished by
the pensioner if he does not appear in person
392. The Pension Audit Cards and Audit Registers to receive the paynent.
will invariably be consulted while auditing
pension payments. 394. Blank

14
i
l

CHAP. t3l PENSIONS [39s-39&

dllocation of Pcnsions among Differcnt Govern- Notc: In cases rvrlen arr indiviriual has served in
mcnts Ccutral Govl. Departmerl!, the iiability of pension
iocluding gratuity will be borne in full by the depar.t-
395. Wlrilc classi$ng the pensionary charges care ment lo which lhe Government servant pemanently
belongs at the time of retirement. No recovery of
should be taken to see whether any pofiion of the ploportionate pension need he made from other Cer-
pension is d6itabte to another Department/ lral Departrnc ls undcr whom he had previously
Government. The charges on account of pensions selved,
of Govt. Servants, *vho have served under more than Coorrnutrtion of Pcnsions
one Governnent are disiributed among the 396. The rules regarding the conditions of service
Governments conierned in accordance with the rules nf governrrrenl servants in ilef. Services provide for a
of incidcnce accepted by then- 'fhe rules accepted porlion of a G,f,vt. .Selvx!ii':; pension.being Com-
by various Govts. are set o-ut in Appix. 3 to Account
nritet, for a luurp pavinent, fhe procedure for such
Corle Volrrure .1. See also dppx 2 to Defence
Ccr:rrnlrtrtion is prcscribed in the Pension
Reg'-rlations (Defence Services), the CCS (Commuta-
Account code. Thc broad princrtqpte unCerlying these 'tioir. of Pen::ion) Rules, 1981 and other relevant oKlers
rules is that the pension of a Govt. Servant is dis- issucd from time to time.
lribuled aurong [he several Govts. in proportton to i97. BIank
dre length of his service under each. 398. Blank

15
l
1-
I
t
I
i
I

CHAPTER 14

IMPORTfiD STORf,$

Para

Invoices and packing accounts

Freighl charges
Claims procedure .
Invoices and Packing Accounts Note:The artthrrretical check prescribed in the
above para need not be cxercised over the invoices in
I-Stoles procured through the Director General respect Gf the stor€s procured through D.G-I.S.fo{.
India Supply Mi-Flion London London for which the expenditure is finally booked
in England and rvhich are also subjected to audit by
399. The general mles regarding the receipt and the Director of Audit in the U.K.
disposal of packing accounts and invoices are con-
uined in the Regulations for the Army (1962). 401" Two copies (returnable and landing officer's
copy) of the packing accounts are sent by I.S-M.,
400. The invoices, on receipt by the Controllers of London" to the Landing Officer and oire copy (rcten-
Defence Acbounts will be checked to see that all tion copy) is sent direct to the consignee. In the casc
stores detailed therein are for the Defence Services of stores dcspatched by parcel post, two copies of the
packing accounts are despatched to the cotNignee
and pertain to the accounts dealt with by them. If
direct and cne copy (Landing Officer's copy) is des-
any items pertain to the other areas or depa ments, patched 1o the D.G.S. & D, New Delhi.
Conhollers will at once send the invoices Qr ext€cts
from them to the Audit Officers concqrned, showing The 'retumable copy' of the packing account in the
in the case of exhacts, the proportion of freight, etc, cas€ of stores despatched by sea or civil air will be
chargeable on the slores. despatched to the ultimate consignee by the Landing
Officer r;rithin 15 days fi'om the date of despatch of
Notc: A r€gister of invoices will be maintained on the consignment. The ultinrale consignei must
I.AF. (CDA) 612, to record the receipt and disposal return the 'retumable copy'to the Landing Officer
of in'roices and other connected details such as duly conpleted throrrgh the L.A.O. & C.D.A
idtimaiion to the D.G.I.S.M. London, of the dis- within 3 nonths from the date of despatch of the
packing accounts try the Landing Officer. This
crepancies and damages attributable to lhe suppliers period will be prescribed by the Landing Officer in
in the U.K. For detailed instmctions for the main- the mernolandum forwarding the packing account.
i,enance of this registcr, see sub Para-2 of Para 598 of {n the case of stores despatched by parcel post/air the
Olfice Manual Part Ii, Vol- L consignee must retrm the 'returnable. copy' of thc
packing account to the D.G.S. & D., New Delhi, duly
'{01. The calculations in the invoices for which
cornpleted rvithin 1% months. This period will be
debits are received through the lnward l-ondon prescribed by the D.G.S. & D. in the me orandum
Account Cunent will be checked to the extent of 10 forwarding the packing accounts. The audit will tle
per cent of the items of eabh invoicc. The selection carried out with reference to the retention copy.
of the iterns to be checked in full arithmetically rvill
be made personally by the officer-in-charge and his The consignee wil! check the packing accounts anri
orders recorded in yriting. In selecting the items for prepar.e necessary CRVs for the stores receivecl and
test checlg preference will be given to those of larger
note on both the copies of packing accoun*i, ttle
money value. If hower€r, the number of enors
Nos. and dates against the items concernerl of th.e
CRVs as well as any damages and deficiencies dis-
noticed is large, the percentage check shouid be covered. The 'retention' and 'returnable' copies *i'
suitably increased. Errors and discrepancies of the packing accounts will then be forwarded bv the
greater value than one shilling in each invoice will be consignee together wirh the eRVs to his i;tt)
reporte+by the Controller to the Director General, who will:
India Sr:!piy Mission, London, rvho will remove the (a) compare the dantages and deficiencies ncteci
discrepancies in the invoices by forwarding anended on the 'Retentioil' a d 'Returnable' copies of
invoices. rhe receipt of which should be watched. packing accounts;
 ;h{POKTED S'T'ORES f4&?*4$5
*FIAP. i4l
'*{ote 4: A11 iurporteii .c-S'C. Stcres are reeelved i:y
{b) ehcck tirc packrnt, a(;cu;lts wrth -C"!{'vs:
the Food Inspeetron Unit at the Fort rrurhich aeesunts
i;{ ;;;;i; G c"t'vt lor veriii':atron *:f creriit rn f,er the samre and distrihutes th'esi to eiiiferent AS'C'
the ledger; t-hese ster":s
(d) return the 'Retention' eopy of the packing ilonsignees. The packirag aesotnts for,
' ' dccount to the *onsignee; a;rd .lr-'* r*Ieived -]:-s th* Fbaei .{nsp*i:$:ier: i--Iui{ *l ti"r g'*rt
(*) fomrard ahe 'R.*i;:t;rah3*' *npy r* tfue "#.A. in vritt:** **dii; :s':l ''he
"*'y tb* .e
ar:d. the ir:.,xi**
CD.&t E:nrt is l*cated.
F{se* L. l[n the Lf hC' Stol':j irnported' tire ,4S4. Aftel itrr,e i:rveii'le* have been dealt :vith as
'n"ut*otl*n "uruh* s*Gt
Copo'qry'rtri tc Air ffqrs {C;ir**t*r*te *i:ove" duplieate copie*
'*f th"*:se Beraaini:re t'*
t* t6:* "4-F'
f;rdnanee *rd elotiririg Faet*r!"es and t'Aitritary Farns
JiE,iirleiit-.i:,'rq*'rs l}eth; and'nils eiir*s;t
C*nsignee bY I.S'M. ;..''# f*rwarcled tn: t"h* Aceounts Offieer Fn*t*ri'1
t"
Note ?. The returs of pa$ing aeeeurrl"(rerumable - {"fficer in Charge or hdanagi':r cf the Farm cc'trce:cled
-p;;)it;;j"i * freieht cascs autd ali ei;^: a;; e"n' f'*..rr* in his oi;frce in conneetion with the manufac*
slgnmen{s or .t1.s'' u*urrrg acosutrts of the Factories *r the prod;:ctiorr
by Embarkaticn t{qrs'-Bombny ttorn - accotl$.t oi the Farrns' ctc'
'-" cleared
ia)
iantf Cruz, will be wa{ched by that 405" At the end of every qusrter, ttrre furvoice regis-
Flqrs' anci ger sllould be reviewed and those invotees in respeet
(b) cleared by? & F' t"init" .{F' Patram" wiii be ci wtiieir :ilie retunlabie eopies erf packrng aeco"'lnts
"-' *"t tot* by t{qrs (I}irectorate of Equip- tre
have net been leceived frsm the L'A"'*s slioulc3
ment). t
**i to tU* L.A.Gs for'rnav lanki:tg :vith any e*py of the
of tlre be evaiiabi* ra'r& th* uait
4S3. #n receipt of the 'Ref"ier::able' **Py ;;;ilg ;;"cunt that
will: l"A mJ e .P..v. *r in th.e abse**c e''f any **p3' *f t$rc-
packing accotlnt' the C'D'A""
.--*1"* u"*u"ot with the f ,R'V' '$trly" On reeeipt of
{a) pair the sane with the erigizral
invoiec
'-' L".i".a by him from the C D A (HErs)' New- iirr i"ti;**t irom th* Cs.fr.A'" t'*ae L'A*s shculd "*ake
Delhi; ir.*ii ""ui-" for their tinking t* the
'*Rth paeking
{:s'i}'A" with
i-t"*!"lC"g'."t'u an* {nt{rrllthefi}
(b) note on the coPY of -the invoice discr*paglcies if any, rected *vi them
'-' -_ (t) the numbers and dates of the reievant
A.ilv:-x'{s};;ac}d
eopies of packing
'-" packing accounts corresp*ndi*g #iito"* a-r-v. The rieturnatlle v"hen
-and
^C.R.Vt-"tt which the stcres have been aceounts wiltr be sent to ghe eogrtroiiers as and
qrish apprcpriate
brought tc accst:$t by xtrre ccnsignee ' dfi;;; t**ui"*c duly endorseel i3:re
C.H.v" N*s. end disirep;aneies $'any' A ryaareertry
and i|;;t *ili *lu* he sint i:v eaeir t'A'O' tc eb'e
, ' discrepancies fcun$. between
(ii) t&e
e.D.A indicating-
invoGs and the paeking aeccuRts and
also ail damages or defieieneies ss (a) of which il:;edit f'sl
th.ose i:rvosees isr resr'ect
sbovm bY dri ecnsigne* ori r&e ;{ores e*uld ni:t' Lre vedfied, dr'ie r;;: r'n'on
Packing acccunts; receipt cf stores, diversiosls i>t ottrrer
r'CEA} 61?;
{c} cslqE{ete the illvoiee register IAF
TeSSOns;

and (b) those inv-*iees fcr which eorresp*ndingl

(d) forward the parkir'g at'clur';s Ln' th* *ffieer' re!::r*able cop'its' of p+'eking aeeounts ttave
'-' il;;JG-ihu" *t*tt*ifsr uuranlffitissi*n tr: the not been recei"ed but credit for th'e stores
U.K have been veriiied; and
){ote i: ai! Sefence parcels are clearsd arrd dis- (c) eases in whieh s4ores have been br*ught on
Corn- '-' eharge bui no e+"rrespondin'g packing
lcibuted to the consignees hy the Ernbarkation
onndaats concerned. acesl,',:tgs *r inv"*lees hsve been reaeived'
books and publi-
!{ct 2: Packing accounts for forrnation* Nete tr: Cbjections rcgarciing non-prodtrciticn of the
d* n*t
dfr it*"a riJ. to units and
are rcrurnabte copy of the packing accounts in respect
cf'
F- **"gU These submitted to C'nA f*r
the Conkollers' rseursteql
ffid-; - D.G'I.s.lvx., London, by eansignees f** aborc *uy be watch for the return of the
er ed-
*a'i'r*r. CsD,{ sh*uid
ins*iees fr*m the L.*{CIs th;*ugh the invcice regis-
!$cc 3: kr ;he adjusenaent l:f "he prrce of U'K' tcn.LAsslviiialsc:naintainr*anuscriptregisters
G mceivea i;; {{rtitary Farmg" Para 1,94'
for
- ";ee
the Army' 1955 *rt**'lrrg the detaitrs *f th* invoices rceeiveS by them
h'* Acccunting ies*uctions fic*r tie es.D.A and the action taken thereon"
3e,mil-
 L[+i' lri TMPORTED STORE"S [4 {J;-

Note 2: In cases where the t.AOs link the lnvolces Nc€e: All claims fi.rr sh*rtlandings or da
s€nt !o them with the returnable copies of the pack- involved in respect of Steel funp*rts Control l:
ing accounts, the pairing bet"'veen these docuurents through the port of Calclrtte" s".sli l,*: imitiated t:
wil! be done by them and not by the Cs.D.A [n ,& Steetr C**tr*iler, Calsutte, a;:d n$i t
other cases the pairing should eontinue to be done i*
the Controller's Office. *onsignee"
r
Il.-stores procured through lndia Supply &'{ts- 410. A cr-'py of ttrre eiair.c'l *n accaun{ of
sion, Washingtpn/Canada and other Overseas shcrg-nandedldamaged "aili be forwarderi ir
.Agencies 1 Ennbarkatio:r Con:rrandant to the C.I].A is
406. The procedure laid down in Section I above is amdit area the port is located fcr watehing th
also equally applicable in respeet of storcs imported gress of the slaim" The ainounts recover*:r{ lie
thlough I.S.M., Washington/Canada and *sher Orer* Shipping Coinpanies wili tre credited intc the
seas Agencies with the differenee that the two copies treasury on IAFA-5CI7 {Ir{ilitary Reeeivable ilt
of the packirrg accoufts are substituted by twro eopies duplicate) and the deposition **pies of Fl
of invoices and the disposal of the invoices by l-and"
Receivable Orders (viz original c*pies) dutry ree
ing Oflicer in this case is the sanne as that of packing
accounts, in the case bf shiprnents effected through by the banVtreasury will be forwacded to th* i
the High Commissioner for India in the U.K' concerned in whose area the port is located.
(D.G.I.S.M.). The distribution of the shipping ease of credits sn account cf Navai and Air
documents is 'as prescribed in Appendlx 'S' to stores also, the treasury receipts will be icr-v,'ar
'Regulations for the Army 1962 edition. the Kegional C.D.A. in wtrose area tlle 6
Note: Xn the case of stcres despatched by postlair located. That C"D..{. r*'i$ iinaily cr:mpitr
parcel no packing acco,unts are tssued by I.S.M. recol'eries to the appn:rorlate teceipt
-ireriiX

Washington, in respect of" consignments despatched Major }tread 00?6 Army. 00?? ldavy" {}*?8 Ait
from U.S.A to India. Hence the procedure laid
and $S?"9 Ordnance (Fys) accoding t* tire :ta
down in para 402 will not be applicable fb-r watching
the return of packing accounts. ttrre.stores.

407. Blank 41tr. Losses sn account af stnres s.hort-l;

damaged which are irrecovrcrable frcm th.e cr
Freight Charges
ineluding the ciaims dropped by the Diret
{08. Freight charges on imported stores are paid &{ovements and the Enibarkation Cornma
as indicated below:
concerned within their p*wers, will be Cealt'
(i) Stores shipped on corlmercial vessels freight the consignees' and as cssh i*sses in accordanr
is payable or adjusted in India.
Rule 41tr F.R. Fart I =v-o} I tr983 edition and pr
(ii) Stores shipped on commereial vessels by Stcres Accounting trr:.structions far the Ariri
varicus Governnnent .of' India's sponsorecl
agencies (India Supply Mission) freight is
editicn without hoidirig a Court of Inquir,v.
normally payable in the ccuntry of 412" Aregister wili be sraintained t
shipmenl
Embarkation Commandant showing the p
Cleims Procedure made with aitr elaims pr*femed by him. . The :

l-oter The procedure described below appiies tn all will be Gpen lo irrspeetion at any time by eh<
lpes of imported stores intended for *ll the three Audit Oificer.
:en'ic€s with the exception of the expl*sives hartdled
b;- Naval Armament Stores Officer. Bombay for 413" ?]:e detailed 'Clairns Froceclur{:' is lai.e
*1-i:h see para 499. in'Stores Accounting' trnstrueticns for ttrre Arnr
4ti9. Tbe responsibility for handling claims icr edn and Para 112? nt* Seq" of Regulations
''.:t ::-ag:s acd sb.ort landed itenns inciuding toss*s/ Army {tr962} as an*encleel and orders iserced fro
;i-ag1r s:suined to stores shipped ccurmereia!}y {$ tim€.
::: :-:::el- tll be that oi Enbarkation Comrnandan{
-,a,
;::;en:i- 'at:r *ill deai with them from the time of 414. Btenk
:-:ai:ir to the rime C their payment or linatr ,*1S" Flank
E:.:
-: t:a::/
t-'
#"
:' t8
E
F
t.
E

&
 CI:I:"."i'T'iiii i 5

Ag& p{}R.i'"'5. Aq:Ctr{.iH'} S

i>.. -...
L a+\c

$eetiec l*Publie F1;*e* .Aeer:i;,i;1s*-.rl.i; r:;;i" i . 41i,

Seetiaa,II---ri:lCi:
j'
ci LR.:-.*ls t{ Aii l-:r;r,.ir i:lr.3r-}oiir} . 432
Section III'3F;;'j ,e;1,-11i1fii,fi i;i e;.ii per;*r:,*nr? s*rdng abrcad, and on eours€$ of instr"r,retions,

€effiprttSit dury i;.i:, .sf:]iy lcali'.*- 444

Seeg.iun 1?*&ir,Jit +f ela:.n.rs preierrecl i:ry it".A.i,. il.r, accolint of work d.one for .P'ir Force &i'l
See€ion cr:r:'nsi::"i. "'r.nrk ie!.ntlrig 1:r 4Jt
$:itiie
$*etiecl r,i1 .--,r,.rr,4i{ +i "' ,:...rli prei*r:e ti :-y H.A.L. ,l: aerilunt r:t' *,ark dcne f'or Indian i$al'y 458

_$r,,*i.i l,-u i .. trethiic Fjr,tl,j .;1: *i:q::ei; --3.ilr ia:.-re,e 419. 'Itre lLlA(AFi suppiies iunds it: r-.rrnma*d
F{e*dqi-rzygsrs f*r distrii:uiitln tn tFre units urrdqr th*::
416" The organist{icn oi the A.ir Foite prai'ide s fcr aelni.nistrrtive contrr:l on submissi*n *f' l*s-r-:
the posting of one +I 'snore officers oi its Accounts requisiiicns TAFF(F) 1502. {-Jriits uncier the rltreei
administrative control ol'Air Flers ohtain their fund:;
6"rancFr at eae1i A-r:: Force sta$icn. "['h*ir duties in
ircrn tlie C.D.A{AF.). Cash requisitioris are rui-"
r;{?r"}rleetioi: ryr{ir iiie Flli:iic lbnri a{j cGunts ate
rnitted fortnightly in sufllcierii. ti$le lr; admit ti:r:
;:;tiraly: furrds being made available to ther:r not t*{er tir:ili
ii,\ r# {:ske payutei}ts ;*gainst e:rti{lerr:*nts *l 8th and ?2nd oi each month.
pa1; an<l allcwances t* seruice *:rcl civilian Wirile pn*viding funds. the C.D.A.{AF} s}rou}d see
;ierscrr.nel cf th* i'F" whose aecou*xn*s are that the affrount demanderl is nct urltiuly
maintained ou the II{LA systems: excessive. If at any tr.rne cash is require d in *x,:sss
of normal reqrrit**"trts, pafiiculars of the adciitiErnaX
iii) to rnak* paymeilts of rnanthiy pay and requirement must be given in rietaii *n the
to ternsorary civilian estatliish-
allcrw:l*ces requisition. Not later than the 3rd da.v of' each.
rx*nt of non-industriali ciass IV stams. e.g rnonth, every unit sends to the C.D.A.(AF), a cr:p3'*i
Iascars" sweeper, ecolies, w'aier cat"riers, the "Cash Book on IAFF(F) 150i duly suppr:r'ted by
ei:|. scheduie af sub vcuchers ILA"F'F(Fi 15051 anel ttre
originai copies of vouchers inenrioned therein.
(iii) tr: pay attr other authcrised charges, such as
traveilirlg allcwance, contirrgeat charges, 4?{}" A regisier ol specinien signatures of ail
experrditure cn ioca.l purphase, etc. Accounrant Officersllmprest Holders is maintained
by the C.D.A. (Air Force). This iegister wiil
Note: If an officer other than of the Aects flranch invariably be consulted at the time of' payrnent *f
is p*sted at a staticn for the <iischarge cf the above cash requisitions an<i auiiit of the public funcl
mentionecl functions, he is designateci as 'Imprcst accounts in orcie r to ensur€ the genuineness of
Floi<trer'. the signatures.
417. The papnents made by Accountant Gfiicers/ 421. The ncnthll' Public Funa Aceounts vrill, on
hnprest Flolders, if not atrready pre-audited and receipt be checkrC to see:
authorised- lbr paymeni by ttre C.D.A {air Foree) are (l) tnat t-:: acccuci is prepared on the pres-
subjgct to pest-audit by hirn. 1501 anci is cornplete in
cli'=e<i
=mr L.qFF(B
i:slerrs. tirat the ccntra entries (e.g.
of the Air Farce
418. Another rlistincti*'e feal-ure =:l
acfounts is that their pubtis fund aceoun'rs ar. '.*:l;d:e-rai of cash frorn tire bankltreasury
F. generally rrainiarrre,* on a station basis and not ::p=a-ng as a 'Pa-vrnent' in the bank column
sq:arately for eacir unit at a station. The uni"; les- a*d as a 'R.eceipt' in the cas!: column) are
ponsibie flor mairitaining these accoun$ are rec:ei ;:oss iinked. and that the grand totals of
as 'Se!:'Accounting i-fnils" sueh unit= aie ap::c-'-:j :::eiprs and eharges, excluding contra itenls
an:C nciiited b;' the Gcr". ci i.l:: f';::r li:*'.: ic agree with thosi of the sunrmary on the last
rime^ rage oi tiie aceount

€g
 --

eiur" 151 ,AIR FORCE ACCOUNTS I42t*427

{2} rhal the opening balance.'agrees with the 422. Tlte audit of transactions accounted for in the
closing b'alance of the previo'us month's Public Fund accounts will be carried out in accor-
audited account; dance with the general rules for the audit of cash
expenditure laid down in Chapter 2 and the special
(3) that all the mclneys drawn have been duiy points mentioned in the following paragraphs.
brouglet to ereeount;
(4) that the account is duly supported by all the 423" In the case of payments to A.F. Fersonnel
preseribed vouehers, aequit{ance rolls, etc; including civilians, rvhose accounts are maintained
on the I.R.L.As, th.e copy of I.A.F.F.(F) 1505 received
I{otc I: In the case of, payments ter the A.F' Person- in support oi ttre Public Fund accounts will be paired
nel (including eivilians) whose accounts are with the copy received from the A.F. Central
maintaicled on I.R.L.As, the original copies Accounts Office containing a certificate to the effect
of acquittance rolls are sent direct to the A.F. that the amounts shown therein have been debited in
Cerrtral Accounts Of{ice and the Public Fund the I.R.L.As of the personnel concerned.
Ace*r-lnt is supported by copies of forrn
IAFF{Fi 1505, tabulating the acquittanee 424. Payments to temporary civilian establish-
rolls sest to the Aecounts Offrce. ments of .non-industrial clqss F/ status are made
II: in the case of payo}ents to civilians of Air monthly in arrears on acquittance rolls-cum-pay
i{ote
Force units/formations for whorrr nc I.R"L.As
bills. These are audited with reference to the last
audited'acquittance rolls-cum-pay bills. The general
are maintained, the pay bill cum aequittance
procedure for the audit of pay bills of sirnilar
rolls together witir the supporting documents
establishm'ents on the army side laid down in chapter
are despatched direct to pay section of the
7 wil1 be followed in auditing these payments"
ofhce of the C.D.,+(AF) in three batches and
the Public Fund account is supported by 425. Where payments are to be adjusted by Book
copies IAFF(F) 1505 tabulating acquittance Debit (such as payments made from Air Force sour-
rolls sent to pay section.. ees to the personnel of the Army and Navy) or by'
Note III:Vouchers under series 'D''E''J'in receipt cash recovery appropriate action will be taken and
side, 2A, B,C,D and E in payment side will the recovery watched through the demand or
be handed over/forwarded in case of outsta- other registers.
tion units to LAOs/GSLAs and Public Fund
account is sugiported by copies of IAFF(F) 426. Where washing allowance has been paid to
1505 tabulating the vouchefs sent to airmen, a certificate of the Officer Commanding the
LAO(AF)/GSLA. unit exists tc the effect that the free services in kind
were not available to the individuals concerned and
(5) that the totals of all vouchets, acquittance that the allowance has been paid only to such airmen
rolls form IAFF($ 1505 are correet and have as were actually on the strength of the unit excluding
been correctly accounted for in the Public those absent without leave, sick in hospital and
Fund account; undergoing sentence of imprisonment.
(6) that the bank balanee'statements and the
427. Washing tsills: These bills generally relate to
bank reconciliation statements have been
washing of airmen's service clothing and of barrack
submitted with the Fublic Fund account and
and sick quarters. In conducting audit over these
the details recordeC therein agree with the
balances shown on IAFF(F) 1501;
bills it will be seen:
(7) that ttre closing balance has been correctly (a) that the payments made are in accordance
worked out and is not unduly tligh; and with the rates specified in the contract
agreement,
(B) that the certificate as regards the counting
and verification of the balances, both in (b) that the total expenditure on account of
hand and at the bank/treasury, has been washing of airrnen's service clothing does not
signed by the Oflicer Commanding in the exceed what it would have cost to the State
space provided for the Purpose on had the cash allowaRce as prescribed by
r"&FF(F) 1501. Govt from time to time been granted,

20
 €
I
t
CHp^P. 15! AIR FORCE ACCONTNTS 1427-434
(c) that the certificat€ of the Equipment Officer (iii) in case of emergency and operationatr
exists to the effect that the services rendered requirernent, non A.O.G. Stores may be
are satisfactory, and despatched by civil aircraft under the
sanction of the Chief of Air Staff/
(d) that the claims are supported by certificates
A.O.C. in-C.
prescribed by Air Hqrs.
bills generally relate {b) that, when freight is not paid in cash at the
428. Thiloring bilts: These
tI to:
tirue of booking, the air passage warrants and
I
a way bill are attached to the bills duly
(i) repairs and alterations to airmen's clothing endorsed with the authority for ihe despateh
i

articles; and ol the equipment by air: and

(ii) manufacrure of kit (special size) (c) that the rates charged by the companies, for
stores despatcheci within Indian limits are
The bills rvill be checked t0 see: correct with reference to their freight tables
notified from time to time.
{a) that paym,ents for repairs and rnanufacfirre of
ciothing are in accordance xith the 43{1" Elank
contract agreerAsnu
431. Elank
(b) tieat no of perscnai cloth.ing except at
itenas
tlie time of initial/replaeement issue is Secticn ltr-Autlii CIt' I"R.L.As" of Air Fsrce
Fersonnel
repaired at public expense;
432" The Individuatr Running Ledger &ccaunts ofl
{c) that in the case *f sranuf,acture of clot}ring Service anei Civilian (othel than ilcn-industrial
articies sueh . as Warrant Officers' coats or ci'niiiaa labour) personndi of the A.F. are maintained
speciai size eicthing,ihe e "R.V. Ccntaining a
by the A.F. Central Acccunts' officer-a service
certificate from ihe Equipment Officer that organisation under the administrative eontrol of Air
the ardcles have been brought on charge, is Fieadquarters. The audit of these aeeounts is ear-
furnished, and ried our by the Controlier of. Defence Aecounts
(d) that in the case of bills on account of repairs (Air Force).
and alterations: at public expense the 433. All docuirrents and information requiring
claims, are supported by fonn IAFF(Q) 415 action in'ihe I.R"L".{s are initially receired in the
(01d Form 350) in duplicate, dulY Voucirer Registry Section of the A.F" Central
compieted.
Accounts Office where they are serially numbered
429. Air freight bitts: Air Force
stores, the urgent and entered in the 'Control R.egrsters'. After
movement of which is essential, may be despatched I.R.L.A., action by the different Ledger Groups they
by Air by Civil Air Lines after obtaining sanction are recorded in the Voucher Registry, The Audit staff
from the appropriate authority. AO.G. (AircraftOn selects arbitrarily irom the 'Controi Registers'the pre-
Ground) Equipment may be despatched by Civil Arr scribed percentage of the documents to be
Lines within Indian lirnits (also to and frorr abroad) audited. These documents aie collected and after
wheneyer imperative and if at the time of despatch, au{it returned to the Voucher Registry.
'service
aireraft is not available. While ar.lditing the 434. The I.R.L.As are closed rnonthly by the AF.
claims on account of these air freight bills, it Centratr Accounts Of{ice ancl monihly surnmaries are
will be seen: prepared. The audit on these accounts and the con-
r* (a) that the despatch' of Air Force stores by civil nected documents will also be carried out on a mon-
":{ air lines is restricted to: thiy basis. (Ihe quantum of audit of trRLAs will
noi-nrally be 33Vto/a, unless a lower percentage is
(i) Aircraft On Ground (AO.G.) equip- specifically indicated for any item. Ttre percentage
f ment;
should be increased if the state of accounts is found
{ii) those under special instructions issued urrsatisfaetory). Selection of documents td be
by Air lleadquarters with the prior audited should be made arbitrarily trut the formula
sanction of the GoverRm*nt of adcpted for selection will be recorded and varied at
India; and each audit.

11

4-3/ccDA/s{D/92
 f,

Cunr. 151 AIR. FORCE ACCOUNTS [43s-436

435. The audit of I.R..I".As wiil be danied .out (k) Check that the demands (e.g. Advances for
as follows: the purchase of conveyance, etc) which are
recoverable in more than one instalment
(a) Check the 'Opening Balance' (from the pre'
through the IRLA are annotated in the
vious rnonth's 'Closing Balance)" check the
demand columns of the LR.L.A.
castings of ail debit and credit entries relat-
ing to that month. 436. The following checks will be exercisetl on the
(b) Check every entry (for the month) in the other connected documents:
'Credits' portion into the',Audit Register' por- (i) Forms-1"505: Check that all the Acquittance
tion or into intirnations of miscellaneous Rolls relating to Forms-1505 have been duly
credits. entered in the voucher registers maintained
(c) Check every credit entry in the 'Aredit Regis' by the AF., Central Accounts Of{ice and that
ter' portion which claims to be based on a the amounts of Forrns-.15f15 agree with the
Gor,t. Gazette or otlier orders or Fersonnel acquittance rolls.
Occurrence Reports of a qiate or serial num- iii) Acquittance rolls: Trace th.e entries cn *1r a
ber srebsequent to those suhjected to Xast rolls into the 'Debits' portion of the
audit into the Governaen!, Gazette or other I.R.L.As.
orders or Personnel Occurrence Reports.
(iii) F*rsonnel Occurrcnce R.eports:
(d) Check that pay has been drawn with
reference to dates reeorded in tast Fay Cer- {a) Check a}l debit entries fron"r F.O"Rs
LXre

tificates or the appointment orders, ete" in into the I.R.L.As Recurring Debits
cases of offrcers nern4y fransferred or newiy should be traced intr: the 'Audit I{egis-
appointed for whcm I.R"L"As are opened. ters' portions and non-recurring rlebits
into the 'Debits' portion of the
(e) Check every debit entry {f,:r rhe month) in i.R.L.As.
the'Audit Register' portion. requiring a Debit
against the indiviciua! intc, the 'Ilebils' por- {b) Entries relating to the grant ol' ieave
tion of the LR.I-.A. appearing in the P"O.Rs will be checked
from the P.O.Rs into the 'Audit register'
i0 Take one iliird of the entries inf the month) portion of the I.R.L.As. Xt witrl be
in the 'Debits' portion of the LR.I-.As and ensure<l that the period of leave granted
check into the monthly surnmary. does not exceed the permissible
(g) Income tax-In the .I.R..L.As seiecteC for linaits"
audit, it should be seen that In*orne tax has (iv) Miscellaneous dernands, e"g. Loss staternents"
been recovered at the appropriate rate from Hospital Stoppage R"olls, Payrnent Issue
those liable to tax. Vouchers, L.F" Bills, etc.: Recoveries wiltr be
(h) A11 gtants of leave are annotated'in the checked frorn the demand. notifications into
'.durlit register'portion of the I.R.L.As quot- the LR.L.As.
_ ing . the relevant Personnel Occurrence Recurring dernands will be checked from
Report entries. It will be seen in audit that original documents into the 'Audit Register'
the leave, pay and allowances have been cor- portion of the'I.R.L.As. except in the case of
rectly regulated for the penod of leave famiiy allotments, the debits on account of
granted. which wiil be checked from the original lists
into the 'Debit' portion of the I.R.L"AS. In
(i) Credit entries will invariably be traceri frorn the case of recurring recoveries, such as, L.F.
the I.R.L.As into the relevaRt docun-rents and Bills. dtc., a gene.ral scrutihy will be exercised,
vouchers. Dbbit entries rvill be {raced from in addition to percentage check of the credits,
I
the vrs., such as, Personnel *ceurrence that there are no obvious omissions of
Reports, Office Orders, etc. ilrto the such recoveries.
I.R.L.As. (v) Orders afiecting emoluments: Gazette Noti-
I fications, Government Orders and letters
t) Check ttrat each newly opened LR.L.A. and/ issued by other authorities will he checked
or soniinuation sheet has been authenticated into the 'Audit Register' portion of the
with AF. CAO's stamp. and signed hy the I.R.L.As. In the - case of non recurting
Account4nt Oflicer/Officer-in-Ch.arge of the debitslcredits the check will be into the
section concerned" Debit/Credit Portion of the I.R"L.A,s.

22
 t

CtrAP. 151 -AIR FORCE ACCOUNTS [436-441

(vi) Fund Deductions: Recoveries will be checked 437. Suspense accounts: The items contai.eed in
from the statements into the 'Debits'portion Acquittarice Rolls and other vouchers, whieh eannoe
of the LR.L.As. be identified for I.R.L.A's. action, are kept by the Air
(vii) Family Allotments: The payments will be Force Central Aecounts ,Oflice in 'SuspeRse

checked, to the extent of 10 percent with

Accounts'. ?he uni'"s concerned are addressed by
reference to the proo.f of payments, i'e' the Air Force Central Accounts Office for correct par-
Payees' acknowledgements. Undelivered ticuiars and on their reeeipt, the Suspense account is
family allotments will be verifred in the clear. It wiil be ensured in audit that speedy and
forms i505 received from the C'D'A' (Air appropriate action is taken by the A'F' Central
Force) and from there linked and traced into Account Ofiiee, for the clearance of such
the respective I.R'L.As. accounts. Any undue delay in the clearance of
(viii) Monthly sumnnaries: outstanrling iteurs from what ever cause should be
(a) Check the vertical castings of the brought to the no{ice of the Oflicer Commanding
summaries.
A.F. Centra! Ascounts Office and where necessary, to
that of the C.S.A. (Air Force)'
O) Check all carrying forward totals with
those in the I.R..L.As
438. Fisrat Credit Balances: The I.R..L.As of
(c) See that aggregate of the 'Opening released, discharged and invalided officers and men
Balances' agrees with that of the 'Clos-
will he audlted cent per cent subsequent to'their iast
ing Balances' of the previous month'
audit, before payment of the final credit balance is
(d) Check all the 'Closing Balances' into
maqle. Yhe payments will alsei be checked cent per
the I.R.L.As.
cent wittr reference to ttrre payees' acknowledge-
(e) Check 11 percen! of the items from the ments.
summary into the 'Credits' portion of
the LR.L.As.
439. Generat: I.R.L.As and the connected docu-
(ix)
' ' Pay books: The advances entered into the ments on whictr audit check is carried out will be
close pay books selected for audit will be suitably enfaced under the dated initials of the
checked into the 'Debits' portion of the
IRLAs. And the PaY books will be auditorlsO(A)/A.AO.
annotated accordinglY.
440. Air Force List: The audit of Air Force list is
(x) Sheet rolls: Select 33% percent of the Sheet
Rolls at randorn and see that: conducted in the offrce of the Dy CDA (AF) New
i
(r) ttre entries in the defaulters' Sheets Deihi. The Dy CDA (AR New Delhi is responsible
affecting PaY and allowances are for the audit of the draft Gazettee Notifications relat-
actioned in the I"R.L'As; ing to appointments, substantive prom'otion' relin-
(ii) pay ha.s been correctly granted quishments" etc of dir Force Officers as also cases
' Badge
witlr- referencri to the red ink entries regarding assessment of previous pensionable service
appearing in the Sheet Rolls; of such officers.
(iii) the leave granted does not exceed the
authorised limits; and 'Scale Audit': d"F. Ollicers and Civiliens in the Air
' the kindered rolls are kept uptodate and
(1v)
the entries therein have been verified
F'orce

and attested by an Ofiicer of the Air 441. (a) Air Force Officers:
,'" Force Records O,ffice at least once
in a Year.
I
(i) A chart is maintained in the proforrna '.4' to
Note: The review of the entries in the I.R'L'As of Annexure 'E' Chapter KI Oflice Manual
airmen with reference to the entries in the Sheet Fart III separately for eactr branch showing
Fl.olls at the time of linal settlement of accounts will the strength of AF. Officers sanctioned for
be restrieted to the last stage of audit as indicated by
the last audit enfacemeRt on the Record copy of
each unit and formation accprrding to
Ranks.
Sheet Rolls.
23
 CrrAP. l5l AIR FORCE ACCOLINTS {€ds
(ii) A card is opened for each officer and is com- (c) Audit of suhstantive prornotions of Airme$;
pleted with reference to the rank of th6
(tr) Cent per cent cheek in respect cf subs&neive
oftricer shown in hS I.R.L.A" on the last day
plomoticns of ainnen is carrjed out bef,*rc
of each quarter. The cards are arranged publieati*n rvith reference t* tlre f'o}lewing
branchwise and rankwise and in an
dncuments:
alphabetical order. Number of officers in
each branch and rank are counted and {i} $}raft promotiun by iists received fr*m
entered in column 3 of the proforma 'B' to tnre A.F. R.eccre! Offiee.
Annexure 'B' .Chapter )OI, Office Manual (ii) Clriginai l*t"ters frcm Air Hqrs deaiing
Part III (numerical return) Cards are to be with pr*mctiens by seleetion"
prepared separately for each branch, and the {iii) S}ieet Roils iRecord copies)
surpluses, if any, are worked out branchwise {iv} LR.L"As oi rh.e Airmen.
and rankwise.
(iii) Objections {2} nt rvill be verified frorn ttrre S}reet rollx anci
are raised on any excess over the I.R"[..As of airmen t]rat. il..e minimum t*tan
overall authorised strength to enable Air service cr serrice in a particular rank as iaid
Hqrs to take 'regularisation action. dr:r'rn ft:r promotion h;ts actually been ren-
Note 1: Cn an Officel becorning non effective, his r-ir.i:e<! {affer excludi.ng n*n qualifying service"
card is rernoved and kept separately. if ai?v). {t udtl also be seen tfiat:
Note 2: As a temporary measure vacancies in G.D. {a) th* fact eif passing technicalledu-
Branch in a particular rank can be lilled by Officers eationai tests where sueh a pre requisite
of the A & S. D. Branch and vice versa. is ilrescrilte<i fcr advancerneni, is recox-
Note 3: The prornotions upto the rank of Wing
ded in the sheet r*11s;
Comdr (Time scale exbept Medical Branch) being {b} pr*ntotions required t* be cra<.le by
time scale/promotions vide AFI 118150 as amended, seleetion by F"ir I{eadquarters have
excess if any, upto this rank - are not placed actlally been approved by Air Head-
under objection. quarters;
{b) Civilians: The scale audit over the strenglh of {c} with ref'erence to register of authorised
the civilians in the Air Force. is exercised for one establishrnent and paid strength of
inonth in a quarter'. A registel is maintained unit- $NCOs, th.e number of airmen pro-
wise showing the strength of civilians sanctioned for pased fur such prr:mctions are within
eacir unit and formation acccrding tcl " each ciass the authorised esiablishment except
of eivilians. .n"here otherwise provicldd;

ldonthtry strengrh check statements are received {d} a certi{icate regarding ihe ernployment
from alt A.F. units/formations showing the of civiiians against Senior NCOs vacan-
authorised establishment as well as the actual paid cies has been furnished; and
strength, the sanctioned strength shown in the atrove (e) where substantive promotions of air-
stat€ment is checked with reference to the sancticned
merl are restricted to the availabitriry* of
strength show.n in the register, and the 'paid sgrengtix'
vacancies in establishlnent, it will he
is checked with reference to the summaries of
I.R.L.As furnished by the A.F" CAC! New ensured.that on the clate or prior tn th.e
Delhi. The result of th.e check will be recorded on date, with effect frorn which the prom<l-
the strengtir check sktements under the dated initials tion is authorised, and airman per-
of the auditor and the AAO/S0{A}. Excess, if any, formed the cluties of the rank to which
in the actual paid strengtti over and above that he is promoted.
sanctioned in the auth-orised establishrneat cf A.F.
t/1 l{ote : The condition of performance of duty of
I units/formations will be reported to the units/
formations concerned for regularisation action. higher rank will not, however, be insisted
upon in the follorrying cases:
Nste 4:The number of the civilians employed
against airrnen vaeancies as indicated in the monthiy (ai Ainnen undergoing courses of instruc-
strength cheek stateulents are checked v'i.th referenee tion from where they cannot assume
to the sumrnaries of I.R"L.As and are excluded for duties of the higher rank earlier than
exercising seele audit bf civilians. the date clf completion of the course.
24
 F

CHAP. 151 AIR, FORCE ACCOIJ}\mS [441-444

(b) Airmen who are posted abroad in the (d) Audit of acting prormertions of Ai'rsmeaa:

offices of the Air Advisers and for (1) Cent per eent ch*ck i-n respeci of aeting prr:-
whom appointments of sr-ritable ranks motions of ainnen witrtr be carried out before
arb not available in those offices. pubiieatiori ruitir rel'erence to the failnwing
\ doeuments:
(c) Airmen/bir crew who might be engaged
in couier flight to U.I{- or l4donesia or {i} etters from AF"R.C. (AHQ) pro,posing
n
airmen who are posted to Car Nicobar aeting proi:lotions
and whose transfer cannot be ordered (iii Original letter frem Air Hqrs deaiing
to another station before a specified with promotions bY selecticn.
period or airmen wha are ingluded in {iii} Record copy *f sheet roll
international sports contingents or air* (i4 X.R.L.A$
men serving with [ndian eontingerrt (2) It will be verified f'rom the Sheet Rolls and
with U.N. Force Abroad and -for wnrcnn I.R.L"As of airrren that the prescribed length
appointments of suitabtre ranks are of serviee (after exeluding period of non-
not available. qr:alirying serviee; if any) has been recldered
(d) Airmen who are absent due to sickness by them. It will also be seen that:
(excluding wounds and attributable (a) No. of airmen proposed for such acting
injuries) and tetain their acting rank for promotions are within tle authorised
a maximum Period of two months establishment as verified from Register
under para 15 (vi) of AF.I. 12ls/48" of authorised estabiishment and peid
strength of S"N.C-Os" except where
(3) Airmen of the categories rnentioned in para otherwise provided.
2{a), (b) and (c) above will be promoted to {b} A eertiiicaie regardir:.g em.plcymerrt of
the- substantive rank'W.E.F. the date it fell civilians against S.N.C"0"s vacancies
due, provided on completion of the course or has been furnished.
on return from posting abroad, ot o-n com-
pletion of the courier duty respectively, tnrey I{ote : Fromotion to t?re iank of cpl are rnade
directly take over the appointments, of rhe without ieference to authorised estabiishment' Let-
appropriate ranks in a unit in India. ters authorising pro#otions on reedipt fforn the
AF.R"O. are chegked with the audited draft promo-
In regard to airmen of category referred to tion list and the paid strength register com-
in clause (d) of note above, promotion to the pleted. , Thereafter a copy thereof is passed on to the
substantive rank, with effect frorn the date it Airmen Seetion to ensure during the course of audit
fell due will be subject to the condition that of I"R"L.As that acting promrotions are oonverteti into
they are granted the acting paid rank after paid acting ranks after rendering the requisite period
becorning effective during the rnaximum of continuous service in that rank. Suitable annota-
period of 2 months. No acting promotions tion will be made on the copies of lettels held.
witt. te made in vacancies earnaarked for
such airmen. 442. Biank
(4) Reclassification of airmen do not fall within 443" Blank
the purvi.ew of audit, ss these are regulated Section III-Pay Aeeoalnts of A"F. O!ficers endFerson*
by the administrative authbrities in accor- nel $ervi;tg Ex-I:rdia
dance with the adrrinistrative orders issued
444" A. F. personnel attached to cr seruing on the
from time t0 time. establishment of the embassies or High Commissions
. ($ Promotions to the rank of Cpl are made for India abroad, will be treated at par with civilians
- without reference to authorised establish-
borne en the sam* eskblishment in the matteiof pay
ment. accounting" In accordance *'ith ttrre civil system of
(O- htrers. authorising promotion, on receipt pay ac"orrnting, pay slips on lines similar to those
fromr the AF.R.O. are checked with the issued by the Director of Audit, central revenues will
audited draft promotion list and the paid be issued by the Air Foree Central Accounts affiee.
streugth register completed. A copy thereof. .New Delhi to disbursing oftricers concerned in over-
is then passed on to 'Airmen Section' for seas countrjes authorising Fayments to A.F. Person-
errsuring during the audit of IKLAs that ihe nel. In ttre case of AF. Personnel posted to the LI.K-,
prorrotions actiondd in IRLA conform to however, LPCs will be issued to the High Corn-
thcse eontained in the said letter. nnissioner for trndia in the U.K.

25
 CHAP. 151 .AIR FORCE ACCOTII{TS 144s-449
445. Pay accounts of AF. Personnel proceeding 448" The following types of work are generally
abroad on course of instructions, temporaJy duty anrl handled by Ffindustan Aeronautics Ltd" for the
study ieave will continue to be maintained in India by Air Foree:
Air Force Central Accounts Offi.ee" New Delhi.
l
Allowances adrrissible by virtue of their deputation (i) Design and development manufacture"
I
abroad will be paid finally ex-Iirdia. Daily allowance, overhaul, repairs, conversion and assembly
i* haitir:g allowance, foreign allowanee and other ecrn-
I
r:f various types of aircraft, engines, €te.;
I pensatory ailowances" e.g. eliildren's edueaticn
i
I ailowance,rtrouse rent aliowance eto., which are {ii} lnspectiorc end maintenance of AF. Aircrafts
!

,r exempted from incorne tax will not be exhibited in the at certain Air Foree oaltstation bases;
l I.R.L,AS in India Air Fcrce Officers except thcse in the (iii) Proeurement of spares and mqteri.als for
l
U.It will draw advanc€s o{r Fay book [LAFF{F) !504] nverhaul progratnme, through purchase" and
within the permissible limits and be allowed to nrake a
nlonthly banker's allotment which will be rernitteel hy fatrrication; and
Air Force Central Accounts Ofiiee, Nerv *elh.i to their {iv) supply/manufdcturelrepair of different items
bankers in India every month. Those proeeeding on of AF. equipmerlts and other such mis-
courses of instruetions, temporary dufy, or study leave cellaneous works,
in the U.K. will, under the special arrangements
cletailed in the sueceedi'ng paragraph, be paid their pay 449. (i) lvVork at Hindustan Aeronautics Ltd. for
and allowances like officers serving in India"
Air Force is authorised by:-
446" The Accounts of Officers on courses of
(a) dir Headquaftersl0fficer Commanding
instructions" temporary duty or study learie in the
U.K- will be closed by Air Force Central Accounts Equipnnent Depots/Ease F.epair Depots/
Office, New Delhi by the 15th of each rnonth and a AFLCI, through the med.ium of RMS Qrders/
.statement of accounts will be prepared after taking Inclenk" Detailed instruction$ for raising of
into accounts any advanceis (issued in the U.K. and RMS orders are eontained in Director of
intimated to Air Force Central Accounts Office, lJew Equiprrents'Instmctions to branches, Nei" 4/
Delhi) and standing deductions, and sent to the 51, issue No. 2, and financial powers of
office of the High Commissioner for India in the various authorities who ale empowered to
U.IL by Air Mail. The latter will pay the amount raise RMS order are given under Gr:vt. of
shown on thi statement of accounts" less any advan-
India, Min. of Def. L*tter No. AI{Q/S 61214/
ces drawn and not reported to Air Eorce Central
Accounts Oflice, New Delhi to the officers who 5s/LRZB/1123/\/n (A* nD dr i0-9-80 as
would thus receive their net entitlements under the amended.
rules each month. No rernittance will be made to (b) Government of India for execufion of all
the bankers in India unlebs specially requested for by rrajor jobs.
any offieer.

Section W-,A,udit of clairns preferred by M/s Hindus-

(ii) The orders for ,work placed on Hindustan
tan Aeronautics Ltd. sn cccsunt of raork done for Aeronautics tirnited provide for the terms of pay-
Air Force grent t0 the {irn on the'basis of:-

441" MlsFlindustan.{eronautics Ltd. is a firm, the (a) A iixed cost for the wor! or
capital of which is subscribed totally by the Govesn- (b) Cost plus profit basis; the term 'cost'
ment of India. HAL has its corporate offices at eovefs':
Bangalore and divisions at Bangalor.e, Nasih
Koraput, Hyderaba{ Lueknow" Korwa and Kan- (i) direct labour including overheads,
plr. It caters for the needs of the Armed Forces in (ii) direct material, and
riddition to Civil Air lines and foreign cr.rstomejrs" in
manufacture of aircraft, repair and overhaul of (iii) sundry direct charges/Defferred Re-
aircrafg/aero engines/equipment and other eillied venue Expe4diture.
work which rnay be entrusted to it. The procedure
for financial and audit ehecks on the invoices sub- Tfoe percentage element of profit on 'cost' is
mitted by the firm for work carried out for the Air indicated in relevant Govt sanctions aad RM.S.
Farce is .dese*bed in the foilowiog paragraphs' Crders/indents ete.

26
 AIR FORCE ACCOT'NTS [4so-4s2
CrrAP. l5l
division of HAL between tep' of Air llqrs'
450. (A) 7i combined Finance and Audit Section HAL and CDA (represented bY DY CDA/
o"O* tii.'"it"tg. of the D.C.D'A (DAD) is attached AOs (DAD) attached to the division)'
to Hindustan Aironautics Ltd. Bangalore eomplexat The result of prelirninary discussions will be
B"nsulo... The Bangalore Complex consists of Air- submitted by Air'Hqrs to the Min' of Def' A
Jr"fi rj i"i.i" n, E n gine- D ivision, Hel icop ter D ivi sion' rneeting will be held thereaftei by Director
6;;rh b ivisio nl Foundry an d Fo rge- D ivision' s er- (Air) lfrin' of Defence with rep' of Min' of
";i
;;;-DMti"n and Designgar Bureau' Similarly-'-Aos bef. G'in/eir), CDA or his rep and Air Hqrs
rD;D)- ur. utt""tt"a to Divisions at l'{asih
(as alio HAL wliere appropriate) to settle the
and Kanpur" These
["r"pitq tfvderabad, Lucknow
carrying out the audit iCQs finatly or to forrnulate points' if arty'
il;.ris'pGtirtl c"ut role of Accounis Depart-. oh rvhich additional information may have
il;k;-;;ehalf of the Defence
(Fin)' DqDry to be sought for, frorn HAL'
;;;f;"*"li as Ministry of Defence
nOi"fneni or* ,rupon.iblu to. the CDA (ORs) South
'B;di;;" (ii)
' ' Price proposals on cost plus basis: IXAI- would
iot out audit checks which nor- furnisit iheir tentative price proposals to
"uttvi.tg
on d.f"-tt.* Accounts Department and
;;lil;i;; DCDA/AOs (DAD) attached with the
for making payment of the invoices prefe-rred by lvt/s divisions within 4 months after the. delivery
i{AL }; i.iuit"t renclerecllsupplies rnade to Arrned of last itenn of the batch to which the price
it;;;- ln reeara to the item; ofscrutiny work which are of proposed relates. DCDA/AO (DAD) would
of costs as
lf.t
"utut"
of frnarrcial checks
HAI
or
for furnishing
irtttitt the draft auclit comments to HAL
i.n*Ga i* the books of as also
(Fin') for within four months' IIAI would send their
;;;;".y;";a required bv the Naig, 9i Def'
contracts' the
firm Price ProPosals to CDA throughof
i;hg fi;tt-;rices ior adoition i"."ryArto the Ministry bco#Rot (o,q.o) within one monthcopy
ilbdtlo; peol ur. ittpotttible receipt of clraft audit comments' with a
;iD;i;* ('Finance) through the-C-DA' DCDA
ar'd
io Ministrv of Defence D (Air I) and AHQ'
fOnU attached to fi,Al, Bangalore Complex- CDA witrl iurnish his audit report to Min' of
[o;-PADj attactre,t to ]I'AI are--tlso respons-
Divisions at Nasik'
Defence D (Air tr) in duplicate with a copy to
ffyae*U"a,' Koraput and Kanpur the Min. of De[. (Fin/Air)' Air Hqrs/DFP
iUi. ioi tft" coirduct of local auoit of HAL held LdF and HAL, within- 6 weeks of receipt of 'firm
St*.t. maintained by'these Divisions' price proporut.' HnI- in turn wijl furnish
iireir iomments on audi.t report to Miq' of
(B) As per the' revised p^ricing ^policy fo1 HAL Def. D (Air I) with copy to ali concerned'
inttoau".a w.e'f' 14-88, Defence 'A'ccounts Depart- within two seeks.
;;;t tt also associated in ttrre delibrations leading to
ii* nt*itpproval of'lixed quotation rates by Minis- Thereafter a rneeting will be held by Director (Air)
try of Defence' pfi". Def. with rep. of Min' of Def' (Fin/Air) and
"f (as also trIAL where appropriate) to settle
,{ir Hq*
(i) Price proposals on F'C'Q' basis: HAL will 'propoials, within 3 weeks of receipt of
' ' ' furnish thiir price proposals on FCQ basis to il; ;;;;
Min. of Def.'D (Air I) in duplicate with a IIAL's
"comments.
t" Min. of Def' (Air) Air Hqrs (Dte'
qn-d 451. The accounts of Hindustan Aeronautics I-td
of'Fin' Planning) by 31st May of every yeaf,
".pv are subject to audit, like those of other iimited con-
wiG provisio.,ul-'a"ia available from actuals o.tttu, by a firm of professir:nal auditors' A sup'
of thl previous year and most reasonable oi"*""tu.v or test chetk is conducted by the Director
.*p""tntiot of tlie current year' l'{ormally Ii C-o**"."iatr ,Audit undet Cornptroller and Auditor
"
suih quotations are given- for one year' I-" General of India. An additional check is also con-
wherc the estimates depart significantly ducted by the D.C.D.A./AOs (DAD) over the ffansac-
"a."s
ii". *ot. than 109") from actuals of the pre-
will 'appeqd foot notes giv- ti""t ifet to the extent authorised under various
vious year, I{AL Ctw."tt*tt.ts issued after review of revised pricing
ing specific reasoxls for vdriations' Where policy.
feflffuOO has doubts aborit cot'rectness of
the figures projecfecl by HAI^they can ask This being the position, great care sirould be exer-
CDA/itatutory-auclitors to verify and certify i* cariyitrg out the financial and audit checks'
\ to its correctnlss' The scrutiny and verifica- "ir"J
would nornnally be completed 452. The au,lit of H"A'I-' invoices will be conduc-
tion of FCQs
ted with reference to the terms and conditions of
-days con-
within 60 of receipt cf Division's by the
Balance Sheet in order to comrnence discus' il"; *h*r. existing and sanctions orderslindents
issued
sion by lst Sept The prelirninary dis- C"*t"**"t of trnctia or the R'N{'S'
;ircJ by Air HqrsEDs BRDS/AFLOs and the
cussions urill d held in the concerned
27
 CHAP. 151 AIR. FORCE ACCOUNTS t4s2

general principles for the audit of public €xpen- Il(a)-Check by Officer in Charge HAL held, IAF
Stores. To certify on the 'list of material'
,litur.. the broad checks to be exercised fall under drawn from HAL-held IAF Stores that:
the following categories:-
(i) the items enumerated in the sirpporting list
(i) Check by the staff of the Aeronautical are authorised 'in the rel'evant survey/
Inspection Wing (AIVI) under the director of coordinatecl parts lists and
T.D. & P. (Air). (ii) all repairable/unserviceable pafts etc. re-
(ii) (a) Check bv the Officer Ilc, IIAL-held- '
moved/stripped from the aircraft/engine/
IAF Stores" equipurent etc. for which replac.ements were
(b) Senior Accountant Officer' authorised, with the exception of con-
(iii) Financial and cost checks by D'C'D'A'/ sumables, have been returned to HAL-held-
AOs (DAD)' IAF Stores, as stipulated in AFO 58/87'
{iv) Arctit check by the D.C.D.,VAOs (DAD) O) check by Senior Accountant Officer
The detaileel checks falling undet' each of the above (i) To see that authority exists for the work and
categories are as follows:- that.the same is. quoted on the invoice, and
where necessary, invoices should be checked
I-Check by the staff of Aeronautical Inspectioir against the reievant R.M.S. orders,/indents.
Wing (AI\ D unrler the Director of Technical
(ir) To verify 'issues' and 'exchanges' with the
Develoirrnent and Production (AIR)'
survey/coordinated. parts lists and relevant
(i) To €xamine and sign the 'survey and Inspec- vouchers.
tion reports' lvith the excepiion of Radar, (iii) To errter the particulars of invoice, task
Wireless, Armaments artd Instruments cletails, RMS orders, work order No. etc. anel
associated with Annament Equipment and the amount claimed in the invoice register
SafetY EquiPrnents. and complete the Loan Register'
(i1) To exanine ancl sign 'Material Surnmary (iv) To endorse invoices in token of checks
Coordiilatecl Part lists' showing requirembnts exercised.
of naterial/spares to be drawn fiom HAL- (v) To certify on invoices in respect of "Pack and
held-IAF Stores 'to replace items Con- Despatch" on the authority of Air Hqrs/EDi
demned, missing etc. on IAF aircraft, BRD (other than work on RMS order or
engine"/equpt etc' allotted to H'A'L' for Govt. of India'sanction) that the relevant
overhaul/repair. authority ltas been checked.
(iii) 'list of material' drawn from
To certify on the IIL Financial and cost checks by D.C.D.A/AOs
' H.A.L. held-IAF-Stores that the materials (DAD). When HAL's invoices are on a 'cost plus
enumcrated in the list- profit' basis,'the following checks will be exercised
cent per cenl.:
(a) Are reasonablelcorrect, and
(b) have been embodied/utilised in the air- (i) See that ILA.L. Internal Auditors have chec-
craft/engine/eqrripment/accessories to ked the invoices and that the 'building up'of
the total amount in the job cost report from the
the best of their knowledge'with the
exception of.....'..".....'..'. summaries and other documents is correct.

(it) to certify on the 'list of material' supplied Ex-

(ii) See that H.A.L. Irtternal Auditors have test
HAl-stocks that the materials enumerated in checked the amount arrived at for labour
the list- from departmental labour analysis statement.

(a) are reasonable/correct, and (iii) See that the Internal Auditors'have checked
operation statements showing direct labour
I (b) were not available in HAl"ltreta-tef'- cost per' man hour and the percentage of
S tores. overhead to direct labour prepared in accor-
\ (c) have been embodied/utilised/in the air- dance with standing instructions.
crafVengine/equipmenVaccessories to
the best of th.eir knowledge with the (iv) Where there is abnormal variation in the cost of
exception of................... material or laboul of standard work allotted.

(v) To certify on the form IAFA-530 that 'the (v) See that due credil is given to IAF for any
items have been inspected' in accordance over charge made on work orders through
with the terms of contract,/work order and error detected at the annual audit 'by
accePted as serviceable' HAt's auditors.
 Cis*p. 15! AIR. F&RCE F.CCOItr-{T5 {4.$3

{vi) Where there is pbnormal variation in the eost ii) The unit cosr of t.h.e irem as
of material or trabour of standard work atlot- claimed bry I{"4"I-. agrees
ted to HAt. e"g" Overhaxl cf engines, base rpith the ,**eig?rt*d aversge
plus iime 'B' Inspecti*n of Dokotas, h{ajor or ' rate in th,e &{eterial Ledg*r
Super Major inspecticn *f sir.rilar type, eard of H"AL. on th* dats *f
issue from s{*ck *s indicaced
investigate the reasons thesefor, and adrnit
cost enly for the setredr:led work unless
nn the retevcn{ rnated,?"tr
requisiflion.
stipulated ctherwise in the GovL Sanctions. ' (ii) T!:e t*ral qirai:*ty of rhae
(vil) If any speeial repair wr:rk. rnodi{icati*n etc.
pariieule.r item suppli*d by
F{.A.L. Xras b**n c}aarg*d *$
is done ox spsres supplicd against'estimatecl
cost, see *lat an Rh{S orrler exists f{}r the
corr*e$ly in the Mates:ai
same and that the ccs{ does aoi exceed the
'Leelger fard'cn ttre basis *f
rnaterial requisitir::r.
estis.ate indicated in the relevant RMS
orders/approlrd price catalogue. {b} Wh*n ttre nr:mher af it*ms {n t.h* 'X:se" ic
iess tllsri ?i), r:ne iee:n wili b* *e?*eteei.
for eheck as at clause {a} a;rte"
3V*Audit cheqks by D.C"S.A./AOs (DADi
{vi) Veriiicati**. of norr *.railabiliqy ee:rtrfi*sitr in
{i} $ee tfuee invaiee and supporting r!*e::rnents HAJ, hel':tr IAF Stores Bin eards.
indieated' helow have be-en signeii by the trn t-re case cf spares supplie$by l"{.AL" sce't}aai
eofirpetent authorities eoncerner* in accor- the rnaqerial :e quisitions be'*r tia* nelr
dance with para 45Xi) enC 1ii) ante. avaiiability cert!iicates of ehe 8ft=ieer in
Charge HAI- ?reid IAF s{cree"
(a) Surveylcecrdinated part list" (vii) See that ahe total valxe. indieated *m rhe
&) List of.i:raterial Crar*a frorn F{.A.L. held indir"iduaX materiai requisitions agr€rs vfiail
trAF' Stoek the total vatu* showrn on the eens*lidaE*d
(c) Listofniaterial supptried ex FJ.rt.T- Stock 'list' cf ,naterial sxpplierl ex F{"4.I". ec*ek aild
(d) Form IAFF 530. excess *:nsunr et*im*d" if any. wili he :*+
ren*hed fr*m *l* clsirir.
(ii) See that the invoice is pre receipted snd s*u:-
pleted in ail respeets dutry supported by
(viii) Frcm H.Atr's **st treclg*r sce-
{a3 that {he tctal esst of }a!:r:ur i"*
(a) Job cosf rsport arithrnatically c*rr*et as earder{ {br=
(b) Griginal copies of materiatr requisilions. ward to the jcb efist repsrL axtd
(c) Cost l*dger cum. iabour sutr1mary" (b) that-charg*s 'booked" after rhe d*r* *f
close of 'wogk old*rs' atr€ not as3mict€af
(iii) See that the eost elaisred is in accorda*ce w"ittrout setisfaetory *xplanati*;: b;r
with ahe kruas of payment of the ccrilra.:t FT.A.t.
speeifled i.n Gcl'emment sanctions or rele- (ix) In the case erf gasoline {if it is deeided ss s
vant orders as applieable. legitimate charge agains{ the state} sse t&at
vouehers exist fcr tFre aet,:at drawals of the
(iv) See that the sran-hour rates ar$ in accordance
gasoline frorn cil eonxpan1 t-hat'ch* amou:ats
with the Golernment, orders or coaditions cf ctiarged are thase that ere a*tualXy paid bg
the contracts/operation staternerlts. I{i.ndustan Aeronawti*s I"inrited and the ra8e
eh.arged in the invoice d* n*t eo:rtain axy
{v) Tcst check of prices of spares suBplied frorn *lement of ov*r?:.ead err{:i. prsf?t.
H.AL. stock:
{x) S*e tSrst ihe quaatity ali cost *f th* g;rs*iin*
is icreluded in the iist of sgrares/m*teiais sitp*
* {a) in the iist of spares,'me{erials suppiied pHed ex I{"AL" st*ck duly *ertifieri hy ffi?'S
I
by I{.AL. and reedei*d i:: supp*fi of & F (.a"rr) in tsrms *f'para 45?{i"\ {iv} e*ee,
ttre inv:roiee, cut of the tc€al nun"lher of {xi,\ See ttrat the sfr{'rctis}n *f *cverxxee€:.t *fl
r'
L
itcms rrn "that l{sf 5% wil! be selected Indi*" exists in the ease *{ i;rvoi*es &me
F (preferably i{ems where the vatrue barred by statute *f limitaricns vid.e Ru.i* l$l
I exseeds Rs. i{}0fiF eacli) to see that: F.R. Fart I r+l i {198-} Edn"i"
i
I 29
I
il
: 5-3lccnuv;:qDlq?
t
 CHAF. 15! AtrR, FORCE ACCOLT"{'r5
[453-*',4$?
(xii) In the case, cf, invoiees elai:reing stage The 6gr3sntupr ef audit nray he increas*d at the dis-
payments fcr overhaullrepair of aimraft eretion r:f r.}:e n.C.D"AlAffs{DAF} whene\er eofi.-
engiaes underiaken by I{AL cn befualf'of Air si{iered desirable. $Jl suclr eases will be re*orteq{ t*
f*rce. see that tlte payrne$ts claimed are in the CDA {$Rs} S*uth Bangaldre.
aeeordance with th.e illstrueti@ns issued by
Gcrt-. frorn time to dnp.e. Where the
i\.{alcrtens&ee of ?AF. Alraraft st *&tctaeion base
es€imated charges are based on the average ,454. I" {i} Se* tha,t t}re cXairn is *cvered by ml*-
billing f*r the previous year the same lltll be vant sancti*n +f G,rvernm*nt (}f, India.
edcpted anc! wtrrere rl'o suuh data exists, (ii) see that eertificates exist
'l{AL's estin-rate rru.ill be accepf*d unfr.l suffi- from ou$stati*n" AF.
Au thorities re gard ing s atisfactcry e*r:epi e*i*n *:f work
" cient data is available" ane{ reasonahtreness of , staff euiployeei . by b{Al_
(xiii) See that moxlthtry'On Aec*uRt Peyrnene' for
on €ire job.
lebour in respcet of &danufaeturi*g progrann- (iii) See that the etraim is preferr*d as per ffem
mes trittrerto made on eertificate of rates specifi**lly auth*rised f*r the purpose n:y.govt"
ineurrence fur*ished by Finaneial Contrerller
of HAL pivisions vdll hereafrer he cracle
fi. H.A"i-. ixlv*ices f*r inspeetionlserveeing *f a!r-
'craf,t and fnr qh* supplyr'repair eharges of sprares ae
only on vbrilicdtion of aehratrs frorn relevant speei{ied *ursrari$.n *ill Ue ieffited ia Icenr*tanee wit}r
reeords oE I{AL. Tleis grrevisiora shall takc relevant Ge:"rt" Sanctidns.
effeet from l/4/$8"
(xiv) See that necessary Funels are available tc
Rcpeir/Sdenufaet*re/S*ppty ef LA-F"" fiqu€pcereart end
fulis*e!!*neoue wnrk hy F€"^{"f."
rneet the expenditr:re.
(xv) See that 'On Aecount Faymen!.s. made ane - 455. {i} I{AI"'$ inv.*ices for the
cf {AF
f,aeture,rsuppty
r*paifi,ntazru*
eqraipment eut}:'*rised {hreii*gh
noted in thc coneermed damand register and RMS orders/indenre taised hy appr*priate authr:ritfus
ensure ttrrat the payment is udthin the wi?I be checked 'w"ith referenee to $eneral principle
ceiling fixed. fcr audit cf invcices.
(xvi) See that 'On Acco$nt Payn:ents', if any, are (ii)'The audit r:f invoiees winl be exereised rvi{h
aeljusted befcre ttrre invoice is passed for referenee to lhe terms of, psyrn$te indieirtect in ehe
payment. releva-nt orders {i.e. Ruas orders/indents/Gc\$ erd*rs}
(xvii) Exercise a generatr intelligent serritiny over aXl issued on the subje*t altd.the general prjnaipiec €"-rxr-
invoices to detest apparent neistakes, iained in paragrag:ks 45i to 452 {V a}:ove.
r:verchargc: of a,bnorrnil features. 455" The finance acrd audit sectien attaeked te al!
(xviii) After an invcrice hds been passed for paynent, 'livisions cf F{AL v,tll endeevour to seitle as !*anv
se*redule the duplicate or certified true e*py of objections and observaticas as pcssible loeatiy ;fiti
the fornn IAFF(Q 423,/F 530 tc the cufsrarion coReerned r{iqisions of H.Al-l,{r Fqree authorieies as
LAO(AF eoncerned for cxedit veriiication in the case demands. Uasetded items, if any. *rill b*
thd aeeouirts of the con'signee Air Foree unit. taken up with Air Flqrsi direct if they relati t* audie
checks. Hcwel'er if they relate to ;inancial and ccst
(xix) trn the ease of equipnneng ete." returned cheeks, they may be taken up with Mi:r. sf-Fefe*ee
against 'Contract L,oan' or supplied against
R.M.S. orders, see that the ariginal copy of
finance) through CD,q{ORs} SCIUTH BANGA-
I-ORE.
qhe forrn LAFF(Q 423/V 530 supportrng the
invoiee is scheduXed tc the tr,AO(AF) eon- Sectlsn V-Work reletihg t* FLAI Mig eoap$m *nd
cerned for eredit vcrificaticn cent. per cent .HAL ecc*ssorle* eom$ex
with the relevant stoek reecrd card/bicie*rds
and return fclr recor{t with invoice.
_45?" {Al EIAI., kdTG domptex ur,der a sep*r,et*
-Managing
Direcror stationed at Nasih consists"'sE the
453. Qnamtucn ef Asdit" final claims per- following oivisions.
fi tainicg to the AF. under eaclr -?\q,*
ccsr eum prolit will be
tI clie*ked cent per cent" wittr reference to the reeorcls (a) Nasik Eliviei*n {$dig ,tur Frames Manu*
i ncaintained at l{industan Aercnautics {-td., to satisfy
t-Sat the costs claimed have been correctly arrived
fact'"r re/AssembtylRep a ir/CIxe rharatr),
ll
at. I"he other biils witrl be serutinised on broad lines (b) Korapur Sivisio;r {fu{ig Eagine bdarar:fas*nwd
as indieabd in ttrre preeeding.paragraphs.
il
i ,4s s enabl:f Rep airlflverh au g,

30
 CHAP. 15I AIR F'OITCE ACCOTMM5 [4s7-4sS
Secticn W*Atldit of eleims preserred' by FS.A{-
tgl 'HAL undet a r*la
accesscries complex sepaiate
Managing Director, stationed at FIAL Lucknovr, "A.ceount of work done for Xntnian Naty
consisg of the following 3 divisions:
458. {a) The folle'ring rypes of works are
(a) Hyderabad Division {deals wi{h the generally handled by tv6/S I{AL for Indisn
manufacture/repairloverhaul of Etrectronic Na*ry-
Equipments reqlired for IAF Air Crafts') (i) Manufecture, overtrautr, repairs, conversion
(b) tucknow Division , (deais with repair/ and risseritbly of various types of air erafts
manufacture/supply of sotables and parts engine* et*.
thereof to lAF direct and to other HAL of spares and materi.als fcr
{ii} Prercurement
divisionp). overiraul progrefilme througtrr purcha*e
(c) Koara diviJion (.deats with uranufacture and a,nd fabricaciccr.
.
Supply of rptables and parts there*f to (iiii Supply/manufacture/repairs of dift'erent
IAF direct). iterns cf aircraft equiprnent and otker such
:riisceltranecr:s works.
IC! I-IAL Kanpur division deals wi.th the matruf'ac* (b) The wotks at tutlS T{AI is authorised by
ture of Dorrrier Aireraft, i{FT 32 Aircrerft' repair/
'overhaul of HS 748 Aircraft/rotables etc' Naval F{grsi'Flag Cl'iicer, Naval Aviaqi.*n/SNCO -

CoehinrS{Sl} Goa through the medium t:f RM$

All these FIAL divisions mentioned above mal.r,- *rders/repair orders/Overhaul tagks. Setailed
tain independbnt cost accoun6 under the arrange- irrstructions regarcling procedure to be fqliowerl f*r
ments made by the respeetive General b{arragers sr:bnrissiiln, certifica*ian aad setttrement of HAX-
{Fin.). To Gai with ttre audit and i}ayment of their iilvciees for repair/overhaul af Navdl Airerafts,
.lui"tr o.eurhing the work done foi IAF., '{cccunts Eaglnes" Cornporrents etc. are eontairted in li.O. 1X2/
r CIflicers (DAD) with necessary staff nrave been prc- 18.
- ryided with rcspective
-
division under the oracatrl
eharge of &e C.D:.e(CRs) South Eangalore as {e} The paymerrt cf }dsval invoices for the work
exptrained in Para 450 ante. CDA (ORs) Soutli eanrie*l out by e{iS HAL will be"r'nade in accordance
Bangalore is responsible for cmordination and rvith the provisions of various Gevt" Orders issued for
! inspection of work done by the Accounts the purpcse. The DC$A/AOs (DAD) and CDA
Officers. The audit and paynent urade by A'8's G-{AVYi ilre responsible for making paym€nt of the
invoices preferred by lvfiS IlAt for sewis*o rendered
{D,qD) sttached to the-above divisions closely fclXcw
the pattem explained in Section IV abov'e' The 'clr aird supplies rnede to In{ian Nary.
Ascount'Palmrents are generally rioted i$ a dea:a*d
register for watching elearance dSS" B-:rik.

3i
 IIIAVY ACCOUNTS

Fara
Secti*n I*Cash Acr:ounts
Navy
"{6S
Sectisn II-Pay Accsunts
Nary
472
Secticn III-Check of U.I& Stores nnvci.ces with Factrcing Accounts and Mainte&anee
of xllvoices
register
493

Section l-Cssh Aecounts-Navy 1. Fayenents on aequittamca rolis;

460. The detailed rules relating ro the prcvisian 2- Lumpsum Feyments 0CI ships and esta_
cf funds to rhe Naly are laid down in biish.ruents;
Finaneial
'Regulatiorrs. Broadly speaking the funds fcr shure 3. Fayrnents of persona! ctraims, grants, etc;
establishrnent are arranged by the CDAfiavy) by 4. Contingent and rr.iseellaneous expenditure;
ureans of eash assignmen{s at a civil treasury or a and
branch of tire Reservey'State Bank of India. Funds
fcr Navy Ships which are self aceounting are nor- 5" Paymenrs aurhorieed by the CDA(l{avy} *fter
rually otrtained frorn Naval authorities at the pcrt pre audit for disbursement.
stations {or from a Civil Treasury, when owing te The payn:e',ts r,nade irom Castr dccoilnts ace sub-
ab*ence from a ptlrt, ships are unable to eiraw funds jeet tc Fost Autlit hy ttre CDA(Nary), unless the
from the Naval ailthorities). On the au.thority 6f pre audited by his oflice and their
eiaimns have beere
money Warrants issued by the CDAf,Naryi in favour
Fayments authorised through cash accounts.
of the Comdraneling Ofiicers of those ships. Ships
whieh are not self accounting draw their 463" iryrnents on a,jc{runt of altrotments and
requiremerl.ts frcm the Bas* Supply Officers. The i* respect ef l.{'avy personne} are made
remittarr,ce,,;
eDA(Nary) is respon3ible for fixing a mcnetary limtt b3r the Srnppiy $ffieer in eharge Naval pay Offrce,
upto which mrcn€ys can be drawn by the Cqrmmand- who rendel-s a eash aeeount in respeet thereof to
ing Of{?eers during a month. In fixing the rnonetary the CDAf .avy).
trimit, the drav,'ings in the previous months and other
circurnstances known at tke time will be taken a.s a 4t*;i. The register of specimen signatr.rres of the
guide. The amnunt fixed ar the beginning of the Supply Ofl-,,::rs and Commanding Offieers pres-
year wil! be re'."iewed and reduced, where necessary, cribed !r putn o6 of this code u,ill invariably be con-
in the manner laid clown in Chapter 17, Delbnce suit".i'at the time of providing cash assignments!
Account Code. rssutng money warrants and auditing cash accounts,
in order to ensure the genrnin*.s cf the
461" In the case of Navy Ships visiting fi:reign signatures.
ports, the necessary .supply cf, foreign currency is
arranged by Naval heaclquarters through the Minis- 465. The Commanding OFrcers of Ships rendcr
try of Finance. The currency is delivered through io the CDA(Navy), cash account monthly in which
the Indian representatives abroad, where one the amounts drawn and disbrrrsed are [-"*fti to
exists. Where there is no representative, special account The Commanding Officers of establistr-
anangement is nnade by Naval Fleadquarters. ments render similar accounts separately for the
periods from I to 20th and from 2lst to last day of the
462. Payrnents of the following _ tlpes are month. The CDA(Navy) will watch that the
generally made hy the Corirrnanding Olftcers out of accounts are rendered by the Commanding Oflicers
tXre funds placed at their disposal: concerned on the due dates.
 r-

CHAP, 16I N.EVY,ACCOUNTS {€66-,Ss

456. Tire following nicre impoltdnt poitlts wiit be (9) that the instmeticns &:r ahe maiNraenafi*e sf
seecl in auditirrg t&* cash accounts: casfi books preseribed in Fir:axaaia3
R*gulatiour and other reguiatio**f&rders
(U rhat tfue aecount has been rendered in the
have been ecmplied ssrth *std
eppropriate form a:rd is compXete in all
fesFeets; {10) that the ctr**ing batranee has beetr eemeetiy
wnrksd out and is not undutry itigh.
(2) ttrat tire opening balailce aE?ees with the
closilrg balan{:e of the previous month's 46?. Is:timaetl:n frcm tr*as"qrries in respeet o$
auditsd ace*ri$t; payftents cn rno:ley 'dfarrsnts; intimadans fvslx
Ccrnpnanding fiflieers/Base SuppEy Offr**rs *f
{3) that all ti"ie moneys drawn have been duly l'*-inpsum payf,asnts t* ships/.esc*blishmee; and rfue
- brcught t$ accoilnt; (thenaiel cheek will be exer-
cised in the snanR*r duwn in para iist sf cheques issusd by tBre eSA, {i'Iavy} xd} be lin-
462 below); ked wittr the amcalnts apB*aring on th* ret:*ipt *id*
of the eastr eec*u*t. Oaher reecipts wili bc t:$:esked
i4',p iirat the account is ciuly supp*rted by *11 tire with referenee tei ihe nppr*priate vouefuevs- {e.S. pay-
prescribed vonch.ers and d*eumen{s; ment issues of r:iothing, victualiing, h{re e;f FdauY
Noge : trn the case of service perscnnel cf the hiavy ?ransp*rt, ete.) supp"cirting the eash aceo*ncg"
whose ac*Llrints are maintqined on the 4,68. The eharges appe*riug in thc cash a*coucct
trRLA*, the original *cples ci *cquittance wilt be audited in accordanee with t!a* g*nera? nr:lles
rolls are sent ilirt*'t t$ the Naval Fa-v Offiee of audit *f cash expenelif*re. The f*l}cwirrg p*ialts
ancl the oash aecount is suppcrted by eopies
will, in Fsrtieular be ebsexae{g:
of tbp sr:h.eduies tabulating ttre acquit{anee
rolls sent t0 the Pay Cffice. (tr) it sh*uld be ensure<i tkat tire eharges whi*fo
are requigeel ter be px*-a::dited are not paid bv
(5) that the t*eals of ali vcucirers, sehcdutres, egc'
are correet and have been correctly accoun-
the eornmanding *f$*ers w*ithout pre:audi?
tgd for in the cash account: and proper aath*ris&tis:t by ti:e CIIA
0Sa"Yi;
{6} that tire preseribed certifieates to the effect
that transactions appeairg in the aecounts {2} that the lu:npsr:m advaRees t* sirips are iis"*
are truely and faithfully rtrorun and the ked r*ith the re.tp*:,;tive easkr eseou:les;
officers and men tc whorn ihe payrrents rl'ere {3} that the eop s,:heslu}*s in r*spe*t *f peyxr*ncs
macie receive*l the several sums noted as paid on aeq*ittance rcl!.s are peirer{ wit}n the
against iheir naffies; that th* balance cf ecpies rsaeived fr*s: the Natal Fay {}ffice
pubtrie money in hand at the end of th* containing a certifi**te t* 6he *f*ct *hat the
rnonth vir. Rs (rupees aequitianee rolls ssh*duled girere*n *,at'e
j, *nly, }:as bees t"erilied anr{ beesr ree.*rded amd are'ncted f*r re*t:very iar
agrges rvitir the b*ok balanee; and the the Aeenunrs ef the r:ffi.cers/ratings s*n-
amo$xlt transferred to the next as{:*'Jnt has cerued; and
been duly carried fcrwerd is given at the enetr
(4) that wh.ere iraynlents ar* adjus*nble by hc*'k
of the cash account duly sign*d by the supply
debit cr by cash rci:overy, appropd*te astion
of.ficer and ccun{ersigned by t}re C"{).;
is takea and r**overy watrlLed *rr*ugk th*
(?) in ease the C.O. Deputes cther officers ts f demand *r either registeru.
checlc the *ish balance, a certifieate tc the
effect "that the balanee of cash in hand has 469. A separate castri bocli{ is msintein*d fcr a}!
bee:r cou*ted a*ri egrees rvith the balence fcreign exrrencies reeeivenl o:r bo*rd wh*r: Fiavy
show* in the caslu ac*eunt" is endorsed anil ships visit i*reign *cuntrie*" A ecpy cf ehis ar-**€ae
signed by'th* aificers sn deputed, and eoiln- is rendered ts: the eDA {Nev'i}, wiro "'*tll audit tE:.e
t*rsigned by itie C.*. same on the lixes ** cih*r eash aee*unes"
(8) a surprise check sf cash balanee is sarried In additior, it shor:td be seen that tine cash aceollcat
'ny
out by the C.O. Once in< quefier in addition is supported :

to verificatian ef cash at the end cf eaeh (tr) a **py of the reeeipt vouefuer for the {'*reign
month aad a certiticate to the effeet that the eu?rell*y reseive{i Ern bs}ard da:?y sigr:*d by
balance cf sash in haad viz. R.s. the e.0. *r Supply Sf{!c*r;
(rupees ) cnly, has been eoucteel bY
him and agre*s w{eXr tire balance as shown in ($ * e-*py cf the voucher for thc ase*unt urf
the eash eceeu$t is endorsed and signed in fcn:ign eurre$cy refunded duly sipred by *h*
the cash aeccunt; Indian repre*entative et &he fCI:eigrt por€:

33
g
--

CHAI,. ]6] Nr-rrY ACCO'LWTS

*Htr;i]
{33 a ca:'tified truec*py *:f tlie tate af' ex*lrange personally setre*te arbiciarily fr*r& thece r*gi*ier* cr
fra-um the authorities *xp-
l:eiLificate *biaineel ease fiies, as the case rnay be" rhe pr*sen"bed p*rtr"*a-
ptying th* foreigit ei.itenciesi aa*3 tsge o{.' t-ire elc'er:,nrec?is to b* arnaSimd, These
doci.:rn*nts are ret:r-iaecl, *iier audi{, to tfue *{xval
{r{) or,lers in support <;f the change, ii any, in the
rate of exchange anul the detaitred ir*rking Fay Ofilce.
sh*wing thc. issirltant X*ss cr gain on A*oit sfl Autfuexisatien Siiprs A;ed Aatfuerrisatics
exclta;^g:.
[.eds;rs
47S" Bla*k
4?5. The au{ti*risatii:* sitps *'-rtifging cha::6* in
4?1. Elank Ira5 €tc. w{lt. sn reeeipi, i:e auiiiieei an<i paxsecl rd'ith
Ssrti{rn Il*-tr'ty Accounts*r{asn Pay Accodnts +f referenee t{i t}t* eixtries iu tire a*{ir*ri-qaei$i?
liervice Fersensel of Tke l{ary ledg*rs. At the sa*le tirere {}re auihsne.l;iry *f *ira*g*
472. The pay ac*ounis oi servi*e persor:,netr *f ti:e
in the autha:risatiun i*dgers, will be verifieei w"ith tire
basic *rders, ete" ?l'et iaight h*ve n*s*s*i&lteoi die
lneiian Navy are ce*trally rnalntained *n the I.R'I-.4'
$ysterr by the l"iavai Fay Gff?ee. This is a service
ei:ange" In *iadil::tiirg {he sudit *f au.}e!u:risati,r;c?
leelgers, {t shc,uid fu* seen *?:at :
organis*ti,;ir usreier th* administrative e*r:Crol of
l{ava} FlcacX{l$arters. in teeh$icai and prof*ssicnal {e) fcr ail ctra;lg*s in pay ane9 al}*w"cctees rcquir*
aetivities" h*wever, the Siapply Sffreer-innCharge, ing docume$tary supp*r{ such ci*enments
F{aval Fay Otfice, is sutrjeet to *orltro} cf t}ie &{inisury are prottrueed;
.Fefenc*
of (Finanee) ex*reiser! through ihg C*n* {b) promoti*r;s req';iring Gi, vt:l n me i' t salEct t'-,lrtr.g

troller Genclatr r:f Defence Aile*uflt-s, anai e*m'pii*s a{e ;upp*rt*d by {iovereains?Lt *rderc or
with sush irtstruqti*ns as tire C*:.:.tr*Xler Generai *i 6"aee*'t* ai trrrciia n*tifiuatiilx; anci
Fefence Acccalnts" in eonsulaation with the Firectcr (c) pay al:.J aiir.rwailcrs are Fxed aec*rd{vrg t*
*f Supply ;:nd l"ictr.ealling $Iaval Heacl-quart*r*) reg:aii'*{i*rrs ail"d eirci*r*q"
rney issue in these n:&tters. lf'trre a''rclit af these
[.R.L.As is canried out in flre ]daval Fay Office by the
Ttre authods*lion l*dger w-ili" aft*r audia" he".
initiatied b-v tire ei.s{,iii st*ff.
staff *i tlie CDA Guiavy). T"he detaiied drill ftrr audit
is laid eiorvn in Office Mam.ral Fart VIL Hote: wi'l*c1e-'"*r n*"v' ;tu.thorisaliee i**ga*s ar*
*penecl, tire initiatr ent{ies tner*ict ?dll a!$'1 he axdlte;i
4?3. Tire Naval Fay Cffiee has been realigned in arld ini;isiied by the a*di.t starf tescif.yirg t* th*ir
tri/o grcups" vie.; the .Authorisati*n Grcup dnd Dis- c0rrect;1ess.
burseme*t Group. Aii entittrements and- subseqxent Audit ef &ishursenrent {.,cstg*rs
chang*s of the basic pay actri ail*E"aaces of t'iavy
.$?S" 'l'he i.R.L"As ef Ser*ice fuffieers are ira3ell,;*d
Cll{ieers anrl ratings wilt be eSre*ked by ttre audit staii
before credits threr&for are effordesl in tr'R'.L.As rnain- re*nrhly and thl:se *f S*'J*rs qxartedy b3r ui'le Nasni
Fay Offir:e. 'fhe a:rdit c.f chese a{:e&unts ptl} i:* **:-
tainertr by tli*.elisburseme;rt gr$up"' F*r this pilrpose"
rie<{ eug on a' qiisitfrly baels" The q'3€ntuz': r:f u*iiq
orders afTecting basie pay'*nd ailowar:*es of a recur' will nermaliy be 33-113$6 ilnless a lower perceril"g* -i.s
ring natr:ra rvilX bc ailjusted in ttri*"Anthorisadcn speeifi*aliy indie*{*r:i f*! any ittm. Ti:"* p*r'i*rit.lge
Ledger by'the Auth*risar-ion group, which will pre- of auditb* i:rerea**d ilt&,e st*te *f aeeeim':is is ti:lr1ii
pere 3n authori,sati*:l strip in duptrieate setting out the unsatisfector"g/Selectir:n *f ri*e,"*arse:ats sii'*ci1ei bs
reviseel rates ef pa-v, etc. Ail tlae au{horisation slips ma<Ie a:r'triirariiy, t"ru{{ire f*rrnuXa a*l*pt*d f*l seicu*
*"ili he cheeked b3' the sueiit s*efi beiore they are tion will h* rec*rded aud a' varied &c eaeh i{u{5.ii
passed sn to the c.1i-qilurse$lerrt group for er*dit of the : The qnantuir r.rf irudit in regard tn q-ir!:it
N.ete
rer.ised rates of Fey s€t qut therciir in th* I'R'L.Ag in tire [Rn,A's fr,*l:a aequittarie* n:lis e€q," u"'i:i,
entctes
maintaincd by ti:et group. h**ev*r, be i6-2i3 p6r ce*t.
4?4. Aii riocun:ents an<t inf*r:r"ratir:n req'oriri*g Fine! Cree!!{ &xlsmees
aetiosx in the LFt.L.As are initiaily receivsd in the C*rr- {??" The IRLA$ cf' rr:ieas*" dlsr:h*rg*rt a*d
trai Registry seetion of tli* Nav*l Pay *ifice, wi:ere invalided nffi**rs and rnen w-ili be augi'l*ti err&i FeF-
they are serialtry qumberad and entered ir: the appr*p- ce** sui:seqs€$l to thsir iesi auslit i:*fcms*Yinl6n r.rf
riale registers" beiE:re disrribuii*n to diff*rcnt seerions the ionsi crcd:t batranee is rnade. The pavul*eas wifi
f*r iedger acti$n anri fiiling in the relevant ease ais,r bc eiaeck*d c*trt fi*r cent *ith ref*r;:ctfi* *c: 'ilte
fiies. Tlnu C$i.**.-in-eharge, I.R'"L;1 Aadit Sectr.:n, payee's ac.irn*rviedgeracnt.

34
 I

S*485
c*$, ,ut NF,IY ACCOUNTS [,4,

478 The audit drill to be observrd in auditing tlie 481. Blank

IRLAs is as foltows: $eale rtudit
(a) check the cpening balanee frnm the previeius 4E?. Scal* audit is conducted tc see :

quarter's closing balance, cheek the casting ia) that t?re effcetive (paid) strength of Gffi*ers/
of all credit and debit entries through the Ilatings in eaeh bra:reh a*d Rank'#"*tings *f
quarter d*"+'n to the closing '*alance at the the Na*y a$ s wh.ele i's mthing the
enci cf the qi:arter; sanetioned strength;
(b) check every credit entry for the quarter into (b) that pr*rnotions of Olficers are sanctioned by
part I of' the"LR.L.A cr into intimations of the ir:mpetent auth*r!tv*' that the appoint-
ment is autleorised arrC is i* an existing
miscellaneous credils an<l ever-v credi{ entry v*"cancy: and
in part I of the IRLA into the authclrisation (c) that the aElvanceraents of Ratings &re
siips passe<tr r:n bv the authcrisatinn group; sanetio:le<l by the ccn:.petent authority, dz.'
(c) check every debit entry f,*r the qr:arter in part Bureau of Saitrors"
i into part iI cf th'e I"R'.L.4'; The cletaile d procedure fcr sonducting the, scale
(it) eheck svery entry notifying t?re grant of leave audit is lri,l ri*r*'n in *ffice Manual Part VII'
{except casual leave} from Genfcrrns, Daily i{av*E App*i*tment I-ists acrdi $aily {"ists
lists, etc., into the anncltations rnacle in the
I.R.L.As ancl see that the peri*d *f tr*ave gran- ,$S3. ?d*tifi*ations reiating to *ntq{, eppnintment*,
fettr does nat exe*ed the prescribed lirnit and ccnilrmati*n in raek. pr*rn*tir:n' adjnstrnent i:r
that thc lcave pay and ailowatrces h.ave been senicriry eir r"1;rk, ,Jisch*rge, second:n"lnts tq: snd
eorrectly rcgulated f*r the period of treav*; {r"om t!:ie ser*tee *nE{ .i-rrier-branch frans{*rs sre
published in navatr app*intrnent ii-ats' Pay and"
{e} see that recoveries on account ineome*tax, il!o*'at ceu s{itl be ivorked in I.R^.i-.As aecording to
fund deductions, edvanc*s r:f pa-v on acqnit- these entries. It will be seen in ailriit that thsse
tauce rc!l, allotrnents and rcmittances" t'F' entries are subseqilentiy notifi.ed in the Gazette"
Bills, etc." hare* been "ccriectiy effeeted
through the lRLAs. trt should dlso be seen Tempcrary attaehments n*t involving change of
that the allotnaents ar:'d rerrittaaees have appointments" ul*veutents cn tour, pericds spent in
been made in accoldance witll' the rutres on
htspital or siek o:r sFrcre. nnnual, easual aird sick
leav:e and all other ffiovements :-rct inv*iv{ng chaage
th* sui:3ect; of appeintrntnt ere n*tified in Dai15" tists.
(fl see that payees' acknowl*dgenients fcr
payaenis of family ailoiments aie on record Navy List
' and that undisbursed aurounts have treen 484" T'&e audit cf the l{ary list is ecnducted 'ny
ereditecl tc Gol"ernment CIIA C.law) whc] is also'respensible fcrr the audlt of
Draft Gazette noti-ficaticns relating io appointrnents,
ig) verify ele'nits in IRLAs for forfeit*res of pay aeting rind sllbstantive prorr.olions' relinquishr::ent
and rnulcf, if any' noted in the clcsed '
Pay
etc. CIf Naval Of{icers as als* ca-ses regar-
anci ld*ntity &ooks *f ratings and
rtring assessfiient nf previ*us pen-tir:*able serltee
{h) check i196 cf tire items nf atrstraets cf receipts ol such ofiicers.
and ch.arges frotn the abstracts intn the Fay A*e*un€i*g Arraragemeirts Appllie*ble To Nava!
l.F..t.As" Persomne! $erving Abresd And #n ec*ln*es $f
4?9" The fundamealtal principle ta be observed in X$s4r$etiem, Temporany *a:$ And S€*aiy Eeeve'
tlre test cheek *f the IRtAs and sonne*ted 4S5" {a) },{ava! pensonn*E attnetre$ €olappninted -c}t!
ilocumenis is that the credit entries should be {raeed €he staff of Ererbessies and ESlgfu Conanaissio$s *tkee
irom the IR.tAs into the relevant dccumesrts end than thc El.K.*Tl:ese Neval persannel rltll i:* lr*a"ied.
ta l'ouclrers. and the debit entries slrould trre traeeri fron:' at pat with gi$'iXians borne cn the same *stablishme*t
the l"cuchen, Geneicrnts, ete." Into the IRLAs" in ihe matter cf'pay ;:eecu::ting. In aeq:crda*ee with
4g*" IP'LAS acC ccnncected e1*eum"en'ts audit*d ttre civil systetc of pa-v ece*arnting. pay slips w:!1 be
wiil be suitabiy enfaced under rhe dated iniqials of issued. by the Suppty {-Xficet-ir:-Chargc ?{ava! Fay
the A';ditor/SC(AiiAAO etc., The n*dited balances *ffiee" R*r:rbay to disbursing r:fficers eclneer*'*d ili
wittr be nngeii round in coloured pencii and initiailed overseas si:untri6s, authorisirig pl3tn*nts trl naxral
by tire auriiloi with date" personnel through eD,{ G{41"}, Bornbav*" Norninatr

35
q

Cwae. 16! I\.{.AVY ACCC{JNTS [485.--d*.$

IR.LAs wi{l, however, be rnaintained by the Supptry any a<lvance drawn atrd not reporte<! tr: the Supplv
Sfficer*in-Cli;trge, Nav-a! Pay Of{ice, I}ox:i:ay in res- Offic*r-in-Charge, Na"*al Fay CIf{?ce, B*rnbay, tr: the
pect of thcse officers. Fay and ail*werrces due to cffi*em w'iro would thus receive thei.r net entitlement
tlfficers/sailors *ill be paid by the respective un<ler the rul*s eaeh r:nonth. No rerniitar:.ce will be
Errrtassies or l{igh eomr:'.:.ssicns f"cr India with rnade to the bankers in India unless sp*cially reques'
reference to pay strips issued by the $*pptry Officer-in- ted by a:'l c'ffficer.
Charge, Navatr Fay CXEce, Bcurbay thr*ugh the CDA 4SE" ?his pr*cedure wiln also spptry to b{eeiiaa! anc!
f;{avy}. The ortginal salary bills ree*ived in srlpp*rt I)entatr *ffi*ers p.rcceeding a'nroed ora study leau-e'
nf *eUir fhrough the Contr*ller of Accnunta, Minis-
try of External .qft'airs, New Dellii v.rill be check":d I{eeor"ls Gf Sercice
l*{th ref*renee to ttrre entitlements anel iteues of dis-
489" The reeards r:f serrrlce of Serviee Clficers cf
bursernent rec*rded in no:ninal IRLAs ';'rhiXe cther
i

i
specia! allcwancei wiii be cheeked with r*ferenee to
Nary are maintained *n'IAF (CP.4)-313 and those t"f
I

G*vernment orders autilorising such payrrents" Cir"ilian G*zetted Sflieers on IAF (CDA)-358" In
I
maintaining the rec"":rds" the instruetielns ccntairred
{h) NsFe[ perso*nefl attaehsd to cr semi$g oll €he
b,
I
in appendix I and ;hapt*i 1|{I respe*tivelv* r*'itrl
establishmesrt *f ttre Higk Conmrxissiocler fer trndia irn
k
t, bre fcllawed.
{tre {.1"K.-ln the ease *f these naval pers*nnel, their
l
I

I
I
pay a*:counts are rnainlained by F{igh Cnr:rmissioner Fay Aecoun€e of FEeet Hes*rvists
fon inaiu and Last Fay {Jertificat* in respest of thes* 49fi" Ti:.e pay accolil:ts ai the Ratings cf l{aval
Offiicers/Saii*rs 'sill 'oe issued by the Naval Fay Fieet Resers'e ar* maintnined by th* Naval Pay Olfice
Office, Eomba'y, duly countersigned i:y the CilA on tr.R.t.A. $ysten:.. They are pre*audit*d by the
(]{ary) Bombay. CSA {Na*1 geoeraily o:r the }ines iaid dcwn fi:r lhe
4S6. Pay ac{:ounts of }'lei,vatr persnnnei, pre;cee<iing audit of LR"L".qs cf se;vie* personn*i. Tlhe qnrn{um
abroad on courses of instrir'rti*n' 'isftrp{}rary eluty anel of audit is cent per crnt both fnr training pay a*c!
shrdy leave will continue to be mai.ntained bv the up fcr tra-in-
atrlow;;nces wfo-en the res*rvists are called
Supply Officer-in-Cllarge, ?davpl Fay Of{ice' Bombay, ing aael for annual remittanees rrrade to class 'B'
i:r incl;a antl auriit thereof witl be earrierl cut by the resen'ists in respeei of the 3ears in whi*ir Ratings ale
CbA (ltlalry) Bombay in the nc'rmal ffraftncr' not calieri up fr:r trainir:lg cr t!:.e training is
,{$owances aclnissible by virtue of tlaejr deputa{ion suspendrd
alr*aet wili be paid finally ex-Inrlia' Daily Th.e detailed pr*cedure fi:r the afficlit *f'tr.R"L.As ::f
allolvance" halting ailcwanee foreign ailowance anc!
fleet reservisrq is laid d*wn in of{iee b{anual Fart \rltr'
other com.pensa{ory allowances e.g. Ctri}dren's edur:a-
tion ailolvinee, hnuse rent aildwance etc., r*'hich :lre 49X" I.Slank
exempt from islcorne tax, wiltr not bs extribiteel in the
trFAS in Xndia, Na'ral Offieers except thcs* in the 49?. Elank
U.K" Xvili draw advanee oir advance *f pay bcok {I.N.
[{t*Chcck af Ll.K. Stsres Xft?c}iees with Faeki*g
{pay) 230) within the perinissitile lirnit and be Seeti*n
-
attc,wed to make a mon*ltry bankers atrtrot{nent which Ac*cun€s aftd ${*ifttenanee oflnv+iecs &egtster
will be remitted i:y the supply'fX{icer-ic1-eharge, Invoices ane! Pneking .&ccounts
t{aval Fay Office, Eombay, to t}reir bankers in India
every r month. Those trrroeeedings on esurses of 493" Clne copy cfthe inv*is:e is reeeived by$bie C$A
instruetion, teinpcrary duty or so;tly leave in the U K. fr*rn the CDA{F{Qrs)New-ile}hi and entered in
(Trlarry)
lVill, uniler the arrangernents detail;ed in the sucseed- Xnvoiee Regist*r 0{S fi52.} Rules f*r €he *heek of the
ing paragraph be paid their pay and allawances like im-oiees are laid down i.n parap_ fflr{} and 4$1.
oificers se:"vi.ng in trndia. 494" The consignee wi.ll receiv* F,vo cr:pies *f
t 48?" The Aceounts of Officers on ccurses of packing aec*unLs as deseni.b*d' in para 48? anet witrl
instruction, temf)orary duty or duty leavd in the U.K' l*rward tlie following docurxaenls t* tlle. ldavetr Loi:al
\&'ilt be clcsef by the Supply Cfficer-{n-Charge, Autlit Offi*er:*
t Naval Fay Cffiee, Ecr:lbay by the l'i-th of ea*& rn*nttrn (i) Sup.*ty lulo{es *n rvhich ths ste'rres receil''d
and a staternent of aesounts wili be prepared after frorrr the t"-trK ha"'"e been brcught '':r eharge' if
taking into aeccunt any adv*nce {issueei in the U'I{' nc}t alread.y s:r,t pr:ril-licaliy as per rules"
Anci. intimated to the $upply Gfficer-in-Ctrrarg*,
Naval Pay Offiee, S*mbay) anrtr standing deducrions, {iil Fac.king AL:i:*unts in dup'licate {i-e" R.eturn-
and sent to the cffiee of the l{igtr ecmnrissioner fr"rr able i::ogry and retentinn *op:,)' after n*ting
InCia in the U.K. Bv Air Mail' The latter wil] pav therecn tl:e numbers *nd dates *l {h* e*n-
ihe amount sh.own in ttrre statemeirt of aeeeunt tress nected supply nctes and d*r:ag*s, u any.

36
 Cuep. 161 NAVY ACCOTINTS [4e4-s0s
Note :-In case of stores received by parcel post/ accounts would be carried out by the'N.r.A.Os and
Air, r"etention copy of the packing account duly not- particulars of damages and deficiencies, if any,
ing thereon the numbers and dates of the connected shown on the Packing accounts annotated on the
supply notes and damages, if any, will only be invoices, the Retention copy of the Packing accounts
forwarded. should be sent by the N.L.A.Os to the consignees
direct, instead of through the CDA (Navy).
(ii| A copy of the communication reporting the
damages and deficiencies to the Director Claims on Account of Storcs Short-Landed or
General India Supply Mission, London. Damagcd
Note :-The Defence Accounts Department is res-
ponsible to verify in Local Audit that the discrepan- 498. The responsibiliry for handling all claims on
cies are intimated to the DGISM London and the
account of stores, short-landed or damaged, rests
responsibility in regard to replacements or financial
with the Embarkation' Cornmandant concerned
adjustments on account of discrepancies devolves on
except in the case of Naval Arnament- Stores
(explosivis) for which the Naval Armament Supply
the DGISM.
Olficer is responsible.
495. The Naval l.ocal Audit Officer will:-
(a) compare the damages and deficiencies noted 499. A copy of the claim on. account of stcres
in the two copies of the Packing Accounts (other than Naval Armament Stores explosives)
and pair them; short-landed/damaged will be forwarded by the
(b) check the packing accounts with Supply Embarkation Commandant to the Controller of
Defence Accounts in whose area the port is located.
Notes;
for watch.ing the progress of the claim. The amount
(c) retain the supply notes for verification'of recovered from the shipping companies will be
IF credit in the lcdgcr, if received with the pack- credited into the treasury on Miiitary Reeeivable
Orders and the Treasury Receipts forrvarded to the
(d) ::",TT'Tll,,,,r'uur. copy or the packing CDA in whose area the port is located fur atijustment
accounts to the consignee; and forward the under the appropriate receipt head subordinate to
retention copy of packing accounts to the Sub Major Head-Head II Naq," In the iase of

I
it
I
CDA (Navy).
496. The CDA (Navy) will:-
(a) link the packing accouhts with the invoices
Naval Armament Stores (explosives) handled by the
Naval Arrnament Supply Officer, a copy of the claim
will be forwarded to CDA (Naw) who will be respon-
sible for watching the progress thereof. The
: received by him from .the CDA (H. qrs) Treasury Receipts"for the amounts iecovered will also
j,
New Delhi; be sent to the CDA (Navy) for adjusturent.
6
I
(b) note on the invoices,.the numbers and dates
of supply Notes on which th.e stores have 500. Losses on account of storfs short-landed/
damaged which are irrecoverable from the carriers
F.

brought to account and particulars of

F

-been will be adjusted at the consignee's end in accordance

E
damages and deficiencies, if any, shown in
I the packing account: with the relevant rules in Fi.nancial Regulations with
th.e concurrence of ArrnyA.{aVal Headquart'ers.
(c) complete the Invoice Register;'.'
(d) forward the Retention copy to the 501. A register showing the progress made with
t consignee; and all claims will be maintained by the'Embarkation
I
i'" (e) watch the recovery or settlement of the value CommandantA{aval Armament Supply Officer.
t
of Naval Armament Stores (explosives) short The register will be open for inspection at any time
landed/damaged. by the Local Audit Officer.
,[; _.

4g7. At the end of every quarter, the invoices 502. Blank

E6 E
register will be reviewed and action as indicate{ in
503. Blank
ti para 405 will be taken in respect of invoices for
tt which Retention copies of packing accounts have not
been received fiorn the N.L.A.Os. Since under this
504. Blank
t 505.
lE procedure linking of the invoices with the packing Blarrk
,l
'l 6_3/CGDA/ND/92
3t

I
 CHAPTER 17

RESULTS OF AUDIT AND FINANCL{L IRREGUIARITIES

Para

5fi6
Introductory
Tieatment of erroneous Payments admitted in audit - :\11,
513
Reports on Defalcation and other Losses 514
11 hnportant Financial Irregularities _{23
Major Financial and Accounting Irregularities

Introductory 5CI9. All observations and cbjeetions rnust be

conveyecl in cclurteous and imperscnal ternas arrd
506. Audit depends for its effective value in its must be brief, leeible and inteiligible.
right and duty to report results to the proper
arithority so that appropriate action rnay be taken to It is of the utmost importattce that airy stateme nt 'i;l
reetiiy the irregulai'iiy oi impropriety' Y!9oe possible' criticisur or of irreguiarity in an audit repor{ siro':lti
and io prevent a recur,renie of it. . This authoriry be accurate, fair. rnoderate.!"v worder'! anCr' riis-
niay be a departrnental authority, Governrnent itsetrl passionate. Innuendo is forl:i'ideru if a ctiarge can-
orin ttt.lasiresort the legislature through thc Puhlic irot be substantiated" there shoi:ld not be even any
Accouttts Comnliltce. hint of it.
507. It is in the trcatment of results of audit that the 510. Objections and'observations in relaticn tc
aurlitoriai function tlemands the highest qualities of any accounls or trirnsacticns subjected to audit
understandirtg, balanced judgement and sense of pro- should be comrnunicated to tire elisbursing. stsres or
portion. An*auclitor must develop an instinct for controiling authorities at ttre earh'est oFpct-
ls..*i*g the importance of an individual in'egularity' tunity. Tle detailetl procedure to be followed is
508. An audit office must keep before itself its given in Oflice Manual, Parc II.
primiry functions of securing the substantial correct-
it..t of accounts, and the regularity and'propriety of 5tf. Blank.
inclividual financial tmnsactions. It should be
in Audit
remembered that while finarrcial .rules and orders Treatmcnt of Erroncous Faymcnts Aelmittcct
mnst be observed, mete rigid and literal enforcement
512" When erroneous p'ayments have been admit-
of such rules and orders may' degenerate into whotriy
i
I
ted in auclit fcr a considerable time owing to a wrong
t unintelligent audit' As a generai mle' undue insis-
interpretation of financial nrles or to ov€r-sight the
r
tence on trifling el-rors and technical irregularities
t following procedure shoulcl be observed:
should be avoiiled, and more time and atteiltion
devoted to the investigation of really importailt and (a) \4hen a wrong interpretation of a financial
substantial irregularitiis, with the object not only of rule has been foilowed in an audit office' the
securing rectifiiation of the particular irregularity' new interpretation strroutrd. in the absence oi'
but also of ensuring regularity and proprtgty- in special instructions to the contrary' be given
similar cases for the future. At the same time failure effect to from the date of issue by the Com*
to appreciate the significance of what appears to be a ptroller and Aurlitor Ge neral ol trndia or the
trifling irregularityilay lead to failure.to discover an
imporiant iraud or defalcation- Again, notice may C.G.D.A. of the orders stating the correst
be taken of the cumulative effect of numerous petty interPretation.
errors or irregularities as indicating carelessRess and (b) When erloneous payments have been left
inefficiency i-n the maintenance of accounts or in unchallenged owing to oversight, the audit
financial adrninistration generally. office should no! of its own motion, under-
* To save time an<l trouble over petfy sums, offieers take a reaudit of bills paid more tharr tweh'e
of thc Defence Accounts Department have been months previously, but should report the
u"tho,lt",t to waive audit objeciions and to wdte off facts of the case tc the courpeteni financiai
irrecoverable amounts, subject to the lirnits laid down authority for orciers, and a reaudit should be
in Fin"n"iul Regulations (R rte 1?? F'R' Part I vol' I rnade only if so desired by the competent
1983 Edn refersJ. Such power's should be
exetcised
financial authority.
by those officem fleely but with due discretion'
 Crmp. 1?l RESULTS OF' ATJDIT AND FXNANCC*.I {R-R'E{}TJX-,A"RtrT'SF5 [s13*-S3t]

Reports on Defalcation and Othcr Ilosses 517" Clvelp;tyments shoutret be g:iaeed ut:d.e r *1::;*c"'
ti,;*s as soon 3s p*ssibXe after rheir dete*tr::rt' tile p;"*
513. On receipt of a report o[ defalcation or loss ceqi,*re presa:ribed in r'-iXes i?$ end iEd Flllaneial
of putllic money br stores' the Controller should call F.r:gul.nt-r*ns Far{ 1 'r*i' { (1983 Edni, trei:lg cbsewed'
for such furthei infotmation as he may require on
ihe suUie.t and will carefuliy exarnine ihe case anti SXE. In all eases, rvhether the'y pertain to cvel*
ascertailn if the defalchtion or loss.was rendered pass- i'lay{$ents q:r tcr .ir--sses or otiaer irregularities, iC is
ible by any defect in the rules or if it was due to irrcnrrl':,:rlt *n ti:e AuJ:.{ *if!eeg, t'esides teking
ac tic lr e g it'i;r:;v*" E$ €j[3m_dtq, ltle cir*umsga rLet'g ln"hi*h
n"gt*"i of rules or want of supervision on the part of
iirJ *u.",tti"e authorities. He will then report the !*d t* t!",e imegntrarity. rnri ifl the sxamiriatl** dis-
msuXt of such examination to the authority comp-e-
el*srs * ui*fi:*t'i:t tru: ;cLc,:rrant nrtrcs or a sil'uscicst
r*'lu;*lu rllakes it p*ssihie fn"r the irri:guiariry'*a h*
ia"i t *tit off the loss. fn irnportant cases he will ,;recurriRg, in ot!,rei $ciigs or furinaticns to cneJ.el dn
also, when necessary, take further action as set out in
para 520 below' ilnmediale inves?igatio'l; '--f iie'-: ae*ourrts of the otla*r
uni{^c firid f,:rruaii.*ns !rl his audic area *nri
Iralportant Finrncial Irregularitics
simultalie*r:siy to Ltring thr: far:ts cf the ease t* the
ieo€ic* oi the C"G.*"A" f*r th'e essue of ord*rs by hixr
514. In dealing with cases of loss due to fraud or f*r inr,esti.g;r"rir-r* *f Eir* aei;ounls of unigs snd f,*r-
nesligerrce, over payncnts or other financiatr maticns in nlher auetit ;rce.as a*49 f*r netictl [**'talcis
inEgilarities, it is to be borne in nrind that prom- the an:ecriln!*nt *f t!:* dr:t'*;etl';* rtlles"
ptitide of action is of paramount ircportance' Every
iu*h should be pursued vigorously to finality so 5lP. it is ini:urn'oe*t on the ir"eldiu Osficerghc tc
"uu. aciiou, both remedial and disciplinary' :::rrugiyris* tk{: eii**ipXirr*ry acti*n tak*n }:y
iliat adequate
a<trmi.nistra.tirie ilu{h*;i*r **neerned ori arny case of
coul<l be taken as early as possible and delinquents
aL oot escape punishnaent by mere lapse of time' finsnejetr irregulaitty, ineTuditrg that *f personal
d),,t fiid:.rilr e fi l.

515. Irregularities detected in audit in the first {i-" as a result cf th.is scn-ltinv' []ae ControXier of
instance str&lA be brought immediately to the notiee that ttrre dis-
t of administrative authority concerned' If, however' Qefeacc Aec*unts coneernec{ c*nsiclers
Jipii:rary ne{i*cr taken ia innd*qu*te. he shor:id dis-
itrc i,,regutarity is discovered by the administrative tlxe issues pers**aliy rrith the responsitrle
*rusu
u"tnoritl ana it it is one which sllould be reported- to adn',inistrative *'tliirori{y" *r, if personiltr 'iliscussion is
his audii Officer/in terms of Rule-3? FR Part I vol' I the naatter by Derni
nct possib!*, si:r:utrd cje*-l l
irge3-Ed"l, it is incumbent ori thit authority
to make "t-th
'#lis repcrt rsithout delaY. *flficlat e*ir*sp*nud*s-1t::: :vitlt tirat *llrhority'

eiiher case, ihe irreguiarity, if ser{cu'$, shouiri tre

If aft.*r sr,lch riiscussion Fre is stltrX dissaeisf?ed he
En
shoulsl bring the ease to the irotice of the CGilA at
brought to the nertice cf the -ti-:peri-*r.a"*thority as Lh-e sam* lime nntifying tfue adrrinistrarive authori{:y
u..u*-o* po*sibie, i.e" ttrre aelministrativx authoritry that he is doing 5(}. T'hereaiter the
shaund report to his suped*r subj*et ta the *bser* "rcirceri;ed
i-CnA $Iitr! take atl further sation to *btain a deei-
,vance of iub para I above ancl the ,4udit Officer t*
5?"*"- Very important sion ancl rvili inf*rm ttre CDA *f ttrre result"
$ais superior. See also para 'brought to the ri*tie* cf
inesrllarities. shculd also be Note L: ASthr:ugh tleere is no cbjection to the res-
che iighe r authoritics by inclueiitrg theur-in {i:e report ponsible aelnninistrative auttrority a}l*wing the Con-
." f"t-ujot Financial and Accountirrg lrregularities' ir*l}er of Defence Aceo'"lnts access t* the retrevarit
mor" i*pottant of tirern rvorth highiightirag sk*laXel Bapers, it. is not incurnbent nn treirn t* del
sc nor can
be reflecie,l irr the relelant aRnexures to '4nnua! an- autiit authority insist on such action"
nuUit Certificate virle para 523 and sub p;:r* ? *i
para 520 et. seq. Note ?: ,& rvrite off *i- loss of stores or prlbiic
lxroney due ta theft, fraud or negleet witrl n<lt be
516. Any vouchers or other dccunrenl: it 1:*sses- admiited in audit until a decisicln h.as b*en reaehed
s&cn of the dudit Oi{ice, which th* ;:drninistrr'iive on the question of discipiinary acticn.
*uthority concerned cos:sidem should be made avail-
5?{}. I* all indiqidual ca-qes of serious imeguXarities
abte foi the preaudit of necessary inves{igatio*' of
should he furnished by the Audit Gffie*r witt":'cut {vide sub para ? of para 515} as weil as in aii cases
**4"* delay, and furthei, where the cireurnstances of" i'**t*s, c"erpaytnents, irreguXarities, etc, for which any
an irregularity are compiex and a special ar'ldit to
.ar"ldit
blame can L':e attaehed to the Defence Aecounts
l""..Gt* d:em has bien authorised, sueh Departr:ient, the CDA wi!} subrnit a comprehensive
should'be ecnclucted as expe ditiously as pcssil:le' o*plrt t* tlxe CGDA w'iro wiitr take furcher aclion

39
Cuer. 171 RES1ILTS OF' AIJDIT AND FINANCIAI. IRREGTN"ARITIES I{?G*C?d
thereon. Such reports will contain, inter alia, full (iii) Cases of sericus irregula.rities whiet:. c*:l-
particulars on the following points: n*t be translated intc finaneie! terats"
(a) as eomplete an explanation as possible of the butwhich, in the personatr opinicra *f ttre
whole case stating the period to whieh the Ccntr*lier, she'uld b* brought t*
{he
irregularity relates and the amount involved, noticc of Anny Commanders/Air I{eari-
(b) the "Modus Operandi" of the irregularity; quarters/Naval Headquarters, D"G O.F"
(c) the rslevant rules, regulations and orders that {in the case of facrcries) and Admiqis-
arative Fleads of Departrnentsl0rgani-
were disregarded and the agency through
sations (in cther eases).
which and the time at which the irregularity
was lirst diseovered; {b} Apart from eases *f fi*ancial iryegulariries
(d) the ci.rcumstances in wtrich the irregularity er:miilg to ths nLtice r:f Controllers thr*ugh
could not be detected by the Defence ar,ndit proeessss is the main ofliee and Loeal
Accounts Department earlier (where Audit {}{I?ces/sub cfTices and reports from the
applicable); aeiministrative authorities, speeial attenticn
(e) definite views of the CDA in regard to the should be paid to ttre following itenas:
responsibility of the individual or individuals
{i} Lititrisation of plane and machinery far
of'the Defence dccounts Departrnent, if any, th* purpose for r+'hich it rvas purehas*d
and the action taken or proposed to be taken
and installed.
by him against such individual or indivi-
duals; {ii} Identificati*n *i" slow moving and :r*m
(0 the action taken or recommended to be taten i:l.oving !.tems nf stores in DepotslStcres
to avoid a recurrence of the failure, if any, in holding formations.
audit and (iii) Det*riorarion in Ehe condition cf s{cres
G) remtdial measures, if any, that suggest them- due to un<luly long, inadequate storage.
selves to the CDA to prerent the recurrence
of such in'egularity" (iv) Defective planning ancl implementation
of projects invotrr'ing significant
invest-
52X. Blank rnents high-iighting in particulaq major
522. Blank. tieviations frorn original tirne and eost
targcts.
Mr.ior Financial end Accoernting trrregularitics
trt is impr:rtant that every case requiring inclusicn in
523. The Controllers witrl prepare quarterly.repcrts the repcrt shculd be includeei therein promptly end
on th.e &{ajor. Financial & Aecounting lrregularities v"4.tkout undue loss *f tirne. WT:enever, there is an
(Short fcrm lv{FAI Report) deaXing with the m.aners abnorrnai delay either in the ctetection of, an
relating to units and formations fnr the Command as irregularity or in its in6lrrrsion in the MFAI Report after
a whoXe, for ttrle quarters endinEl June, Sept." Dec. and its detection, the reasons therefor should tre reported to
Mar. mch. year, by the 20th of the month fotrlowing the C.G"D.A either throtigh the report itself or
the quarter. The followislg types of irreglrlantics wil? simultaneously with its subrnission"
be included in the rep*rt:
(a) (i) Cases involving irreg':lar rnaintenance
5?4. The N4FAI Report will be rendered in nvo parts
or non maintenance ol accounts wtrieh,
viz. Part I and II, speeimen proforma I and II rep-
rr:duced at s.rrnexures 'B' &'C'to this chapter. Fart I
in the perscnal opinimn c'f tire CD,\
have serious implications" is for indicating Fresh Irregularitier part. trX for
"ttd
irregularities reported previously but still remaining
(ii) Cases in which the value of financial outstanding. tsoth the parts have been divided into
' irregirlarities or loss inv*lved is Rs. I two sections each viz" Sections 'A'&'B'. Seeticln 'A'
lakh or ryore in each case" Eesides" is for indieating cash irregu.larities and Section 'B' for
Controilers utay at their discretion stores irregularities.
include cases whieh disclose loopholes
t'or fraud, defalieation etc, regardtress of So far as the old iterns included in Part II are con-
the flnancial limit reierred to aboore. eemed, besides givtng the item rros., and the month

40
Cu.u. 171 RESULTS OF AIIDIT A}.iD FINANCIAL IRREG1ILARITIES [s24-s31

cjf the reports in which the items were originally (i) Whether the irregularity has come to light
included, a gist of each item in brief should also be during percentage audit and/or during pro'
given, inter alia, indicating the latest position, for cess of check over selected items, or whether
ieadily drawing the attention of the authorities con- it is a case of elroneous certification by the
cemed. The separate report for the month of April executive; and
each year which was hither io fore'rendered to (ii) the precise point at which and the extent to
CGDA" need not be furnished, as the quarterly which failure on the part of the executive
reports will be endorsed to CGDA' is revealed.
525. The reports will be addressed and copies
in the following 527. Cases which in the personal opinion of the
endorsed to parties concerned
Controller are so important or significant' as to be
manner:
reported to the Ministry of Defence/Sersice Hqur/
(a) In the case of Army units/formations, the
Ministry of Defence (Finance) will be included in
will be addressed to GOC IN C com-
reports Part II separately for cash and stores. [reproduced
mand by name with copies to Area/Sub Area
at annexure (C) to chapter 171. Nii report will also
Commander enclosing items pertaining to
their areas. be indicated. All other cases will be included in
Part I of proforma I'
(b) Controllers of Defence Accounts (Air Force)
and (Navy) will address the reports to Com- The rtarration in part I of the report should be con-
mand Headquarters'
cise and to the point, highlighting the specific nature
(c)
'- Reports in respect of D.G'O'F, DGNCC, of the irregularity in order to effectively draw the
DGR & D, DGQA & BRDB and Interser- attention of the concerned authorities. The narra-
vices organisations, etc., will be addressed to
the depirtmental heads'. with copiqs, to the
tion should not normally exceed 2 pages.
concerned Laboratories/Establishrnents
tdgether with items pertaining tothem' The Note: Items in the MFAI Reports which are subse-
foirvarding letters of the reports should quehtly included in the CGDA's Certificate appen--
irrvariaUlfbe signed by the CDA or by the ded to the printed Appropriation Accounts will be
JT.CDA in the obsence of the CDA' formally taken out of the MFAI Reports' but pursued
to a finality in the normal course.
' - Copies of all reports will be endorsed to
(d) the
CGDA SR.D.DA/Deputy/Assistant D'A'D'S'
528. In order to enable action being initiated .by
526. The reports should be drawn up and edited the CGDA and by authorities at Armed Forces
with the great;st care so as to achiev,e tlie object for He a dqu arte rslAdministrative Au thoritie s concerne d
which thJy have been introduced. The narration of in cases referred to in the preceding paragraph, full
each iternin the report should be briel self contained
particulars of the action already taken at Headquar-
and lucid and should clearly bring forth the nature of
irregularity, the extent of its seriousness, the amount iers Commands or by the CDA and the nature of
-itte action suggested for consideration at CGDA's level,
in"&vea, precise point at which failure is
revealecl'and riference,to the relevant rules and will also i-nvariably be indicated. Copies of relevant
orders etc. The narration should also indicate inter correspondence that has passed on at Command
alia all the action taken till the time of reporting level, etc, will also be enclosed for infonnation'
(both ai command level and at the CDA s level), so
ihat wherever necessary, instnictions could be issued 529" Blank
by Governurent straight away to the, Service Head-
quarters etc, when such cases aie reporte-d . to 530. Blank
tit... The iollowing- points should also be explicitly
*."lio".a in the narration of each case of 531. Blank
irregutarity, wherever necessary:

4l
 ANNEXT,IRE
.A'TO CI{APTER 17

I.tro ................................
Office of the CDA
Dated
Ic
The GOC IN C (bY name)
Sub: Quarterly report on Nlajor Financial and Aecounting irregularities.

The/ report on the above subject for the quarter ending"......... .".......is enclosed for the favour of
information and necessary action. l
Fart I (A): casi, iiregularities fresh iterns (nos"""""""'
section """.'""""""""")
Part I (B): stores irregularities
section fresh items (nos """""""' """'"'""""""")
part II (A): cash irregularities, items already reported but still outstanding. (nos.."'.......")
section
part II (B): stores irregularities items already reported but still outstanding. (nos"'....'......."..")
section
Cases of oth.er irregularities noticed in audit have been reported to concerned'authorities as necessaty.
Controller of' Defence Accounts.
copy to:
(1) The CGDA, West Block v, wing III R.IC Purarn, New Delhi-110056
(Z) fne Director of Audit (Defence Services)
ifi11eaaquarters........:.... ........................."......."..together with details of iterns shown in the rnargin'
r DY c'D'A'

ANNEXURE.B,ToCIIAPTERI?PRoFORMAI(FRESHCASES)

Report on Major Finanfial end Accounting Irregulalities lor -Q:E""""""

part I section 'A'-Cash lrregularities

S.No. Name of the Particulars of Financial Periods of When was Latest posi- Remarks
unit/formation irregularity effect accoirnts the irregu- tion of the
affected iarity first case indicat
noticed in ing action
audit, and to taken so far
whorn it was by the lower
reported authorities

t, f
Part I scction 'B'-Stores lrregularitics

S.No. Name of the Particulars of Financial Feriods of When was Latest posi- Remarks
unit/formation irregularitY' effect. accounts the irregu- tion of the
affected larity first case indicat-
noticed in ing action
audit, and to taken so far
whom it was by the lower
reported authorities

Dy" Controller of Def Accts.

42

q
 ANNEXLIRE 'C' to CHAPTER I7-PROFORMA II
!9

. Oflice of the CDA

Rcport on Major Finsncial and Accounting.Irrcgularitics part .Il-Section A-Cash irregularity

, List of cases already reported but still outstanding

S.No- Name of the unit/ Item no. and the Brief gist of the Latest position Remarks
formation Quarter. of report- irregulariry
lng

Part ll-Section lB'-Stores irregularities

List of cases already reported bttt still outstanding

S.No: Narne of the unit/ Item no. and the Brief gist of the Latest position Remarks
r formation Quarter of reqort- irregularity
ing

Dy Controller of Defence Accounts

43
 CHAPTER 18

APPROPP.iATION ,A,CCOUNTS OF TI-TE DEFENCE SERVTCES

Para

Pleparation and submission of the Appropriation Accounts 532

538
Annual Revierv'of M.E.S. Expenditure
C.G,D.A.'s certificate on the accounts of the Defence Services 540
Frhibition of iosses in the Appropriation Accounts:
I-Losses of cash, over
''-' payments, etc. 552
F-r--

Il-Losses oi stores" overissues of stores, etc. 558

Exhibition of Infructuous Expenditure in the Appropriation Accounts 563

Staternent shorving variations between the year's Original grant and expenditure in respect of
Works carried out' during the Year 56',1

Starenrent s6owing varfafions between the Original esffmafes and actual {inal costs in respect of
568
works cornpleted during the Year
569
Financial si:ck taking of big M.E.S. Frojects
Statement showing cases of non rnaintenance or Irregular maintenance of accounts regularised by
5"la
the Government of India during the year
stategrent tilowing rletails of gifts and casbs of transfer of Governrnent propertY
577
572
Commercial appendix tt the Appropriation Accounts
s7't
Appropriatiop Accoun.s for certain reverlue and Debt heads

Freparation and Subffission of the Appropriation (iv) Appropriation Accounts with explanations
Accounts for variations between the final appro-
priations and actual expenditure.
532. The Secretary (Defence/Finance) and Finan- (v) Review of Military Engineer Services
cial Adviser Ivf in. of Defence (Finance) is responsible Expenditure.
for the preparation of the Appropriation Accounts of
the Defefce Services and for their submission to the 535. The Appropriation Accounts include the
I
Comptroller and Auditor General of India and the following statements as appendices:
Director of Audit, Defence Services, on the 15th
January of the year following that to which they
I

I Appendix 'A'
relate. A proof copy of the accounts will be'sent to
I

Statement of losses of cash, overpayments etc,

I
I
I
I those officers on the 15th Decernber" frnally dealt with during the year.
I
I
l 533. The object of the Appropriation Accounts is
.i I
to present the audited accounts of expenditure from Appendix 'B'
t the appropriations for the year with full explanations Statement showing by various categories, the total
.-f, of all imporiant variations between the final appro- amount of store losses dealt with linally during
priations and the actual expenditure' the year.
534. The Appropriation Accounts deal with: Appendix 'C'
(l) A general review of expenditure on Statement of infructuous expenditure exceeding Rs.
Defence Services. 1 lakh in each case with complete details and
aggregate value of all items of infructuous expendi-
(ii) Changes in form and classification in the
ture exceeding Rs. 10,000 but not exceeding Rs. 1
accounts. lakh in each case, finally dealt with during the
year.
" (iii) Miscellaneous observations.
 CI{AP. l8l A?PROPRL{TION ACCOUNTS OF TI{E DEFENCE SERVICES Is3s-541
,Appcndix 'G' Controllcrs should" hnwever. continue to cite in the
Statemcnt sirowing variations between the year's
Annual Auclit Certificate reservations and specific
instances th.ereof in regarC to the items considered
original allotment and expenditure in respect of important enough to be brought to the notice of the
works carricd out during ttrre year.
Public Accounts Committee viz. Serious irregularities
Appcndix 'Il' in respect of store accounts, stock verification, use of
t transport. etc. irrespective of whether the authority
Statemcnt showing variations between the original
competent to regularise thern is Governme:rt or not.
cstimates ancl tire actual final costs in respect of '

4 worts complctccl cluring th.e year. The above certificate is based by the C.G.D.A. on a
t' Appendix 'J' similar certificate f'-rrnished by each C.D.A. so as to
;
ft. reach him by lst August each year.
Statement showing details of gift-s and cases of
I transfer of govcrnment property of the book value
It is countersigned by the Secretary {Defence/
Finance) and Financial Adviser Ministry of
excceding Rs. I lakh each free or at concessional rate
Defence (Finance).
to non government organisations.
541. The Controller's certificate for a year shoulcl
536. Blank ernbrace all the expenditure contained in the
537. Blank accounts of tirat year and should also depict as a
whole the correct results of internal audit conducted
Annual Rcvicw of M.E.S. Expenditurc by the Defence A.ccounts Departrnent vis a vis ihe
entire field of tlefence expenditure. Cases in which
538. The annual rcview of M.E.S. Expenditure is ex-post-facto sanction of the Governrnent of Inclia is
prepared by the Secretary (Defence/Finance) and awaite d for any itern or items of expe nditure already
Financial Adviser Ministry of Defence (Finance) incuned and any special features or major changes
with rcference to various statemeRts, required to be introduced cluring the pedod covered by the cedif:-
submitted to him by the Controllers of Defence cate will also be included in the body of the cer*
Accounts concerned. The staternents in question dlicate. The certificate, which shoutd be signed by
and the instructions for their preparation are given in the Controller (Joint Controller of Defence Accounts
appendix IV to this code. if lioiding indepenclerrt charge.) and only in his
absence by the next senior officer "for the C.D.A"/JI.
539. A statcment shbwing cases of remission of C.D.A.", subject to the perst approval by the C.D.A./JI.
departmental charges on works undertaken by the C.D.A., should be self-corrtained, comprehensire and
MES for Municipalities. Cantonment Boards, Local precisely worded. In cases of reservaticns or
Governments, etc., is also prepared by the Ministry of' qualilications made in the cer[ificates, a few speci{ic
Defence (Finance) and is ineluded as an Annexure to
and glaring instances in supporl of each such reser-
the Review of Military Engineer Services expenditure
vation or qualification slrould be furnished
separately as an Appendix. The relative position
on the Appropriation Accounts. (i.e. exterlt of irnprovernent or deterioration ncticed)
C.G.D.A's Ccrtificatc on the Accounts of the as compared to the irnrnediately preceCing years in
Dcfcncc Scrviccs. regard to certain irnportant feature of accounting
such as, state of accounts, position of stock verifica-
540. The C.G.D.A. furnishes annually a Draft Cer- tion, outstanding on account nf payrnent issue,
tilicate to the Secretary (Defence/Finance) and arrears in linking of invoices with accounts, etc.
Financial Adviser Ministry of Defence (Finance) not should, as well, be brought out in the certificate pfi)-
laler than ist Septernber each year, that to the best of
per, duly supported by necessary details which
should be furnisherl separately.
his knowledge and bclief no part of the expenditure
containecl in the Appropriation Accounts for the year Notc 1: In cases ol Non-naintenance/Improper
has been incurred without the sanction of the maintena nce/Non-production of accou nLs, itrt

t'
t,*
I
Government of India, where such is requirecl by
regulations or other orders, with the exception of
itens where the necessary sanction is awaited. Far-
statements enclosed with the Annual Audit Certifi-
cate, should contain full details of the irregularity
such as the name of the unit, nagure of the account,
th.e period involved, the precise nature of the
ticulars of such iterns exceeding Rs. 50,000 in each irregularity (in the case of irnproper rnaintenance of
case are furnished in the statement attached to the accounts) and the inlorrnation as to w.hether the
ceflificate in the proforma at Annexure 'A' to this irregularity has since been set right at the time of
Clrapter, vide alsc paru 542 below. submission of the certilicates.

7-3lccDA/NDl92
 Cmp. l8l A}PROPRTA'I'ION ACCOUNTS OF THE DEFENCE SERVICES Is4r-s42
Note 2: The figures given by the Controller's of The following additional information should alsei
outstandings on accoullt of payment issue of stores, be furnished for incorporation in the reservation of
licence fee etc. should be based on the following the C.G.D.A's certificate:-
dala:- (i) The number of cases where the amount of
(a) Outstandings on The amount outstand- outstandings on account of stores supplied/
account of payment ing for stores issued services rendered exceeds Rs. 50,000 in each
a issue of stores upto 3lst March of case of private individuals/institutions and
the financial year as Rs. one lakh in other cases and is remaining
on 30th June. outstanding for more than one year in the
(b) Outstandings on Amount on account of proforrna at Annexure 'E' to this chapter.
account of licence L.F" Bills issued for (ii) The number of cases where the amount of
fees the period upto the outstanding on account oflicense fee charges
end of February out- exceed Rs. 50,000 'in each case of private
standing as on 30th individuals/institutions & Rs. 1 lakh in other
June of the following cases and is remaining outstanding for more
financial year: than one year in the proforma at Annexure
(c) Number of outstand- The figures of outstand- 'F' to this chapter.
ing audit object- ing audit objections (iii) The irnportant cases of expenditure under
ions issued upto 31st objection exceeding Rs. 50,000 in each case,
March of the finan- where sanction of Government of India is
bial year remaining required and which were included in Annex-
unsettled as on 30th ure 'H' to previous year's Appropriation
June of the following Accounts but are still awaiting reguiarisation,
financial year. in the proforma at Annexure 'G' to this
(d) Outstanding number The nurnber of CRVs . chapter.
of CRVs which relating to the period
(iv) Cases of losses (both cash as well as stores)
could not be linked ending March of the
with consignors financial year and awaiting regularisation for more than one
year and where the amounts involvcd are
issue vouchers/ remaining outstand-
substantial enough to require sanction of the
Packing Accounts/ ing as on the follow-
Invoices. ing 30th,June. Government of India in the proforma at
Annexure 'H' tc this chapter.
(e) Outstanding vou- The number of v-ou-
chers in respect of chers relating to the Note 3: As regards cases of non-linking of issue
wliich credit could period ending March vouchers, vouchers rrot produced for audit, etc., the
not be verified in of the financial year total rrumber should be indicated in the body of the
the ledger of the .and remaining out- certificate. Details of the more important cases only,
consignees standing on the fol- under these heads need be given in the statements
lowing 30th June. attacheC to the Annual Audit Certihcate. The
reasons for the non-linking of CRVs with issue
($ Outstanding nunber The no. of vouchers
vouchers, non-production of vouchers to audit, etc.,
of vouchers to the relating to the period should also be furnished.
period ending ending March of the
March which financial year and Note 4: Cases of serious irregularities which are to
could not be pro- not.produced as on be highlighted and which cannot be fitted in properly
duced for audit. the following 30th in any of the other Annexures should be lucidly
June. brought out in a separate Annexure.
1'
(g) Outstanding dues on Outstanding dues upto Note 5: In the printed appropriation accounts the
account of rent for 31st March of the position of the various outstandings relating to the
Defence Lands. financial year as on particular financial year will, however, be reflected as
the following 30th on 30th June of the follciwing year.
June. SaZ.. ln respect of items of unauthorised expendi-
Outstanding on account of payment issues of ture or irregular issue of stores, etc., if any, for which
stores and licence fee should indicate in separate Governrnent sanction is awaited and the audit certifi-
statements, the partywisb and yearwise breakup, cate in respect thereof cannot consequently be given
giving brief reasons for the outstandings under each vide para 540, a statement should be appended to the
category and the steps taken to liquidate the same. certificate giving full particulars of all such items, the

46
 Cuep. l8l APPROPRIATION ACCOUNTS OF. TI{E DEFENCE SERVICES Isd?-544
amounts involved, the Head of Account in which they (iii) In cases, however, wtr{:re there is a delay on
are included, the precise circurnstances in which the the part of the executiye in answering thel
expenditure was incured or the stores were issued objection and or/in furnishing ttre reasons
prior to the receipt of Government sanction etc. In- for incurring the expenditr-ere in tire absence
formation regarding the relevant authority under of or prior to tfue recriJ:{ of t}:e Goverr:.ment
sanction therefor, the item should be so
which or the reasons for which Governrnent sanction
annotated in the staterlent and such items
is necessary and the action taken to regularise the should also invariably exhibited in the quar-
expenditure in each case will also be invariably terly report on thn M.F.AI. In case the item
included in ttre statement. Only those transactions had already founel a place in the report cn
whose rnonetary value exceed Rs. 50,000 (in each case) the N4.F.A.I., a reference to the item no. in the
and which norrnally require the sanction of the report of the F{.F"A.L, sirouftS be cite.rl.
Governrnent of India prior to their occurence e.g.
Items involving extra irregular expenditure, transac- Note: Items of M.E.S. Expenditure placed urrder
tions like unauthorised provision of free conveyance,
ot{ection for want oi adrninistrative apprcval of
Governrnent of india, fresh or revised as the case
extra issue of rations, stores, etc., need be included in may be, whii:h normally {ind place in the Arrnual
the above rnentioned statement.' Cases of actual Review of M.E.S. ExpenCiture need be included in
Iosses of stores, buildings, etc., for which sanction of the Anmral Audit Certi{icate' Hcwever, cases cf'
Government" were required, has inevitably to be accor- serious irrqgularities involving expenditure incumed
ded ex-post-iacto will not be included therein, as these on works which are not covered by the existing
will find a place in the statement of losses of stores or regulationslscaies (e"g. Fruvisicn. of accommodaticn/
cash, as the case may be. Similarly, cases wiere ex- furniture in excess of scales, adopticn of richer
post-facto sanction of the Goverrrment of trndia specifications than normally allowed *tc.) wil3, in
awaited will not be included in the statement, as they addition, be exhibited in the Annual Audit
Ceriii-rcate.
are to be included in the body of tire audit eertificate,
vide para 541 ante. 543" Where it has not bee,n possible to include any
items of unauthorised expenditrire actually incurred
Controllers should, however, continue to cite in the in ol relating to a year in that year's certihcate
Annual Audit Certilicate reservation and specific already rendered to the C.G.D.A., owing to delay in
instances thereof in regard to the items considered their detection or due to other causes, the items effee-
impo$ant enough to be brougtrt to the notice of the ted shoulcl be dealt with as follows:
P.AC. viz. Serious irregularities in respect of store
accounls, stock verification, use of transporl, etc., irres-
(a) If the unauthorised expenditure continued
even in subsequent yearlyears for which an
pective ofwhether the authority competent to audit certi-ficate has nct 3et been rendered,
regularise them is Governrnent or not. the entire periocl to rvhich the expenditure
relstes and the total amount involved
The following points should be carefully observed in (inciuding that for the previous year/years)
the preparation of the statement referred to above:* will be shown in the statem€nt appended to
(i) The narration of each item should be seif the certilicate to be rendered for that
year.
contained and complete grving full par-
ticulars of the expenditure indicating clearly (b) In cases where the entire expenditure relates
the circumstances, so far known to the con- only to previous years, the period and the
troller at the time of rendition of tlre certifr amount involved, etc., will be shown sepa-
3
-6 .cate, in which the payment was made or the rately in ihe certilicate of the year in which thc
c' expenditure incurred in the absence of the unauthorised expenditure was first actually
necefsary Government Orders. brought to lighg in the fonn of an Annexure to
the regular statement of the year.
(ii) In cases, where full particulars,are not avail-
able at the time of rendition of the audit cer- 544. Items of expenCiture awaiting regularisation
tificate, it should be indicated in the remarks
under orders, of, and/or which may be regularised by
column against the items that they are being
obtained or will be furnished later wherr the competent financial authoities lower than the
case is routed through them for furnishing an Government of India, are not required to. be
audit report while applying for the requisite exhibited in the statements appended to the audit
Government sanction for the expenditure. certificate.

47
 APPROPRIATION ACCOUNTS OF TTTE DEFENCE
SERI/ICES [s4s-ss0
Crw,. i8l
The certificate should also be qualified suitably to
545. tn respect of stock verificatiorr carried out by
indicate that trosses of storcs (as distinct from cash
thd adminislrative authorities a self contained losses which are to be regularised under the nonnal
explanatory note giving the general position and rules in F.R. Part I Vol I 1983 Edn" due to enemy
result of stock verification during the year should
be orrutng to
for that year' This ;;ii;" an<l destruction by our own forces
npp.rla"a to the audit certificate operational necessity" as also losses of stores due to
,rote should inter alia' contain inforuration regarding in
iti. utUo.tirr" air drops' ilnd those occurring units
the number of units/forrnations in which stock and formations on war system of accounting' etc" in
verification was either not conducted at all or was ..rpa.i- which no ' lormal regulafisation is
irrcomplete, ancl whether or not it was subsequeutly
"f
nr,i*ttu,y unde r existing rules, have not been
or conpletecl. whether the results of stock included therein.
After despatch ol the certificate to thc
par-
takirrg revealed a iatisfactory state of affairs' the
"onr:tu"t".t
548.
ii"ufu"tt of units in which the position was unsatisfac- C.e.t.A a copy uf ttt" Certificate and its Appendix
toty whether the discrepancies between ground ;ll b. shown by Controllers to the Senior Deputy/
""0
ani book balances werc considerable and' if so' their Deputv/essistani Directoi of AudiVAudit
Officer'
D;it;;. Scrvices, concerned, the test audit
cxtent ancl their value, and such other information to enable
as

wilt enable a complete apprecidtion of the stock tak- authorities to ensure that all cases of expenditure
ing carried out cluring the year as a whole' held under objectiorr for want of Government sanc-
;i;; h;". in iact been included'in the C'G"D'A''s
Note: Orrly clea( cases of non verilication of stock Certihcatc.
should be listecl in the note referred to in the above
prrn. Purely technical objections of a few days In addition, an annual report on the iines of the
.rf ort on M.F.A.I. containing the . unsatisfactory
ielay in the conpletion of stock verification for the i.ut.rr.t which are incluclecl in the "Annual Audit
nno""iof year neecl not be included' As regards C.ttin"ut.'" sirould sirnultaneousiy be forwarded to
of partial verification of stock' the nurnber of cr*irra",l .t"' I-{eadquarters to wltnm the M'F'A'I'
"ur..
iteurs noiverified ancl the proportion they bcar to
the
n.p"itt are rendered' The report while being on
total number of items required to be verified should g.-ti*Jri""s should cite specilii and.typical cases of
be indicated in addition. E""ln itt.eufarity and *"niion the units, the period of
accoullts in which tlrey occurred etc'
546. In orcler to enable the C'G'D'A' to render an
audit certificate in respect of the 'special Grants-in- 549. The Annual Audit Certificate and the various
RiJ; ,r.ud" to Cantonnent Boards, the accounts of
'by 'the stateurents, etc. will be prepared by Controllers after
which are not susceptible to test audit .xantinittg all objections statements (including those
n.n.b.S., the Controllers concerned should include irr""a b; the iocal Audit o[fieer), and other
in their certificate a separate para on the following docunrenis containing a record of the charges com-
line s:- piLa i" the accountt ol th. year to which the certifi-
"I also ccrtify that the expenditure met from Spe- Iit. pertains, which have been placed under
granted to Cuntonment Boards olj""tio" for want oi the sanction fresh or revised as
may be, of the Government of India' To
irom Defence Service Estimates have been audited
"ini-Ctuttt-in-Aid if,-J
"ut.
iacilitatethe preparation of the certificate, a register
u"J"t my dircctions and that the condition on U" mainiained in each auC'it section of Con-
which thl grants have been rnade' have beeu or 'witt
u* U.i"g fitfittecl/trate not been cl1 are not being troit"rs Office and by each Local Audit Officer' show-
fulfillecl ln thc following respects"' inl it.*t of the ttltot.' referred toprogress
above' placecl
of the
oUj""tion and the subsequent
(to be mentioned in the certificate) """a"t
otrjections with notes or the final orders issued'
547. In rcspcct of items of expeniliture' which are Note: The legister melrtioned above wi'll be rnain-
f n#utali.a by' the Defence Accounts Departmelt i'e'
tained in the proforma given in Annexure
'A' !o
;;;;;;i;;" in Qlv{G's installations' (like Flour
this chaPter"
rtrli'r.l expenditure incurecl by the lligh Ccm-
missilner' for Inclia in the U'K' Expenditure 550. Controllers will kcep a close u'atch over the
i;;;.d by the Director General offorSuppliesthe
and
Defence
progress made in respect of each r:f the various reser-
b-itporott on the purchase of stores .rntiittt marle in the Annual Audit Certificate and its
5.1ii"". li"cluding purchase by india- Supplv Mis- various Annexures. A systematic record of the pro-
,ion Wutlington),-a suitable note should be inserted gress macle iu respect of the outstanding items will be
at the foot of-the auclit certificate to the effect that
the
Laintained. A quarterly progress report will be
cerlificatei docs nrot cover such items'
48
Crnn. l8l APPROPRIATION ACCOUNTS OF'tltE DETTENCE SERVICES Iss0-5ss
renclcred'showing the position of each of the rcser" Notc: In regard to irregularities the monetary
vations and thc outstaflding iterns, on the value of which cannot be assesscd only those cpses
following clates: whish are consiilered impottant eno$Sh to merit the
notice of the Public .dccounts Committee shoutrd be
incluclecl in the Appropriation Accounts.
nature of report clate on which to
reach C.G.D.A The narration of each case of loss, etc", to be
iucludel in categories i (a) and ii (a) above shcuid be
l. Position of cases ?th l.{ovember brief, self contained and give information as to the
includecl in the AAC exact period to rvhich the loss pertains; amount
as on 30th Septcm- involved; name of unit or formation; the cornpetent
ber. financial authority by rvhom that.loss was written off
2 Further progress in 20th January and the darc of write off, action, if any taken towards
respectof the same its investigation, the exact circumstanc€s of the loss,
as on 3lst Dec. the recommendations of the Court of Enquiry held, if
any, particulars of disciplinary action taken and the,
3. Subsequent progtess 15th May of the
remedial mcasures instituted. The number and date
showing the position following year.
of the letter in which the loss was written off should
as on 3lst March
be mentioned against each item"
In respect of the items of expenditure requiring 553. The consolidated statement of cash losses,
Governnrent sanction reportecl through the_ AAC, *ill be prepared by the CGDA q'ith reference to
etc.,
they should be progressed vigorously arrd ieviewed the statistics and data rnentioned in the fotlowing
imrnediately on reccipt of necessary sanction and paras and forwarded to the Director of Audit
thcir sctdernent intimatecl to the C.G.D"A separately Defence Services, by the l5th August each year, for
in each case, eventual transmission, after teqt check to the Sec-
retary (Defence/Finance) and Financial Adviser
551. Blank Ministry of Def,enee (Finauce).
Exhibition of Losses in thc Appropriation Accounts 554" In respect of losses of cash, overpelments etc.,
I-Losscs of Cash, Ovcrpayrncnts, ctc" wriitcn off by the Govt. of India, statistics are main-
tained centrally by the Min. of Defence (Finan-
552. Losses of cash, overpayments, etc. written off ce). These statistics together with the statistics
by the Government of Inrlia and other competant furnished annually by ttrre High Commissicner for
Iinancial authorities, and claims abarrdoned as India in the U.K., Of losses, etc., Pertaining to his
irrecoverable and finally dealt with during the year accounts will be utilised by the CGDA in compiling
are shown under the following two main categdries in the consolidated statement of losses.
Appendix 'A' io lhe appropriation accounls of the
Defence Services: 555. ln respect of all losses of cash, etc., r*'ritten
off by Govt of India or lower authorities, seatistics
(i) Cash losscs, overpayment, irrecoverable will be maintained by Controller's Oflices in a regis-
claims, ctc., due to thcft, fraud, snd ter in IAF(CDA)-I8Z which will be examined by a
ncglect: Gazetted Officer monthly. Similar statistics in res-
(a) details of losses, etc., exceeding Rs. pect of cases corning within their purview of audit
25,000 in each case. will also be maintainecl by the LAOs in a register in
IAF(CDA) 182. (The detailecl procedure for the
O) Aggregate of all losses, etc., exceeding maintenance of such statistics and the subnnission of
Rs. 50 but not excceding'Rs. 25,000 in
the statements of cash losses by the LAC* is laid
each case.
down in Army Local Audit Manual Pert D. From
(ii) Cash losses, ovcrpayments, irrecovcreblc the register maintained in their offices and from the
- claims, ctc., due to othcr causes: statements received from the LAOs, the Controllers
will prepare annually a Statement ef losses in the
(a) Details of losses, etc., exceeding Rs. proforma at Annexure 'E' to this Chapter confirming
50,000 ineach case. to the provisions of para 552 and submit it to the
(b) Aggregate of all losses, etc., exceeding .CGDA through the local representative of the
Rs. 50 but not exceeding Rs. 50,000 in D.AD.S., so as to reach the former by 31st May olthe
each case. year" following that to which the statement
relates.

49

li
l

.l
 Cnar'. t8l APPROPR.IAflON ACCO1INTS OF T}IE DEFENCE SERVICES [sss

Controllcrs will also prepare quarterly fol the quar- Note 5 : Cases involving the provision of Gow. or
ter eurling -lune/Sept/Dec/Mar the details of Impor- I-Iired Transport to non entitlecl personnel regularised
tant losses referred to in para 552 (I A) and (II A) in untler the orders of the competent financial authority
the prrllorma at Annexure 'I)' to this chapter and should be treated as a cash loss and shown in the state-
submi{ them to the CGDA through the local rep- ment of cash losses under the proper heading.
resentative of the D.A.D.S. so as to reach the fonner Note 6 : Losses written off in respect of stores short
not latet than the l5th August, 15th November, 15th landed at ports by shipping agents, the claim against
Feb, and 31st May respectively. As far as possible whom are repudiated by or are not realisable from
all important losscs referred to in para 552 (I A) and them in part or in full, sh'ould be classified as losses of
(II A) wlitten off during the quarter should be cash and exhibited in the statement urrder the appro-
included in the statement for that quarter itself, but
any item which could not be included due to late ,priate heading.
rcccipt of sanctions, etc., or for other unavoidable Notc 7 : Details of losscs. etc.. to which rro precise
reasons should be incorporated separately in the monetary value can be assigneil should also be
statement for the imnediately succeedirrg quarter included at the bottom oI the sl:ltement.
with suitable remarks.' Three copies of the Iinalised Note 8 : The general criterion for determining
staternents of cases in respect of each item included whether items of unauthorised expendirure which
should be obtained from the CFA antl rvitha.ncndor- have subsequently been regularised by a competent
sement of acceptance by the CDA/LAO, should sanction should be included in the statenlent or not
accornpany the detailed statements. will bc as follows :-
Notc I: For thc pulpose of the above statement "lf
each sanction bv a cornpetent financial authority the sanction, besides regularising pas{ expendi-
should be viewc.l as a irrdividual transaction irres- nrlc originally incurred without adequale or proper
pective of the nun-rber of transactions and the period sanbtion, has the eflcct of making the item of expendi-
covered by it and should be annotated al one place hrre an authorised charge subsequent to the date ol
only in the statenrent of important losses. sanction, the item should not be included in the state-
nlent as in such cases Govenlment recognises the need
Notc 2: The annolation of imporlant losses, viz., for the expencliture but failed to provide for it
those rrrentioned at (I A) and (II A) above should eall ier. Cases of ex post factc sanctions to expendi-
confonn. as far as possible, to the fonl in which it is tule and regularisation of irregularitics in accounts
prinlcti in the Appropriation Accounts. and a self and of expenditure involving no actual loss to the
corrt,rined and cornplete history of each case should GoW. are also not to be included in the statement."
be tirrnished separately along with the statement
of losses. Note 9 : Losses pertaining to issues of stores in
which cash recoveries are requireci to be made i.e.
Note 3: Objections waived and irrecoverable, Irrecoverable payment issues or free issues where
accounts etc., written off by Officers of the Defence issues are authorised on payment only. are to be
Accounts Department and the Audit Departuregt, classified as cash losses.
Defence Ser.yices, under Rule i77 Financial Regula-
tion Part I(Vol..I i983 Edn.) and Article 248 of Audit Note 10 : Payment ol pending enquiry awards
Code respectively, necd not be exhibited in the under proper authority is not irregular payment even
slatcnlent. though the clain lor pensiorrs may ultimately be rejec-
Figures of "unidentihed
advances" and Debtor ted. Accordingly, such payments are not required to
balances writtenoff by the CDA (Officers) and the be writterr off arrd included in the statement.-
CDA (Other Ranks) and their subordina'te officers Note l1 : Losses arising in connection with
will, however, bc shown in the statement of cash purchases elfected through the Purchasing C)rgani-
losses under thc irppropriate headings. sations in India and abroad where the fault lies
t
Note 4 : Losses of cash due to enenly action are to entirely with them are not required to be included in
I
be regularised under normal rules in Financial thc staternent, as these losses will be included in the
Regulation part I and such losses when regulariscd rcport of the Comptrollei and Auditor General of
lF India, Union Governnent (Civil)/Appropriation
will be included in the main body of statement of
'cash losscs. Accounts (Civil).
" Notc 12: Losses pertair.ing to Cantonment Funds
C"rlt losscs due to enemy action awaiting regu-
larisation by Govt. of India will be included in the will not be included in the statement as these are not
proformr :rt Anncxure I to this chapter for incorpo- required to be incorporated in th.e Appropriation
ration in the reservation of the CGDA's certificate. Accounts.

50
 CHAP. l8l APPRC,PRIATION ACCOUNTS OF THE DEFENCE SERVICES [556-559
556. "Cases of pre partition losses/irregularities chapter and submit to the CGDA through the local
{inatly dealt withlregularised <luring the year rvill be representative of the DADS. so as to reach thc former
intimated to CGDA by the Controllers as and when not later than the l5th August. 7th Nov. 15th Feb
such cases arise, to enable CGDA to report the same and 31st May respectively. As far as possi-
to Min. of Defence (Finance). When no such cases ble all important losses referred to in sub para 2 of
are dealt with during a linancial year, a Nil report para 558 written off during the quarter should be
shoulcl be sent by Controllers so as to reach CGDA included in the statement for that quarter but any
t important iterns which could not be included due to
f
by 15th Oct, each Year."
late receipt of sauctions etc.. should be incorporated
h 557" Blank separately in the statement for the next quarter with
II-LoGscs of Stores, Over Issues of Storcs ctc. suitable remarks.
558. Losses of stores,. over issues of stores, etc., Note I : The provisions of Notes 1, 2, 7 and 8

Written off during the year by Govt. of India and below para 555 apply to the cases of store losses also.
other competent Iinancial authorities are shown (in Nate 2 ; Even in respect of losses of buildings and
the proforma at Annexure 'C' to this Chapter) in
furniture on charge of Air Force Units and Indian
Appendix 'B' to the Appropriation Accounts of the
Nalry, the Regional CsDA, in whose area such losses
Defence Sersices. Stores losses beiow Rs' 500/- in
occur will be responsih!e for inclusion of the itents in
consuming units wili not be included in the their statements of losses. In the case of special
sCaten]ent.
works the transactions in respect of which are
t:
Details of important losses etc. wili be furnished in brought to account finally by the CDA" Navy, Air
r'
e
respect of fotlowing losses in an Annexurc to this Force, the responsibility for the exhibition of losses
f, statemeng on the lines provided for cash losses: in the Appropriation Accounts should rest with CDA
concerned.
* (i) losses exceecling Rs' 75,000 in each case due
I to theft, fraud, or neglect. Note 3 : All irregular or oler issue of-stores should
(ii) losses exceeding Rs' 2lakhs in each case due be treated as "store losses". However, loss of stores
F io other causes. resulting from overdrawal of rations which
n"
& remains unadjusted as per para 888(b) of Defence
F
F l.,iote : Xn regard to irregularities the
monetary Services R-egulations for the Army (revised editi.on
value of which cannot be assessed only those cases 1962), will be categorised as cash losses'
$,
I which are considered important enough to merit the
i notice of the Public ,Accounts Committee should be Note 4 : Each item figuring in the - statement of
I included in the Appropriation Accounts- irnportant losses should contain a reference to the
particular heading and eategory in which it will be
559. Statistics in respect of losses of stores will be included in the main statement (viz: Head I Foocl'
maintained by the Local Auclit Officers in a register
Flead II (a) POL etc).
in IAF(CDA) 341 and by the AAO. (MES) in a regis-
ter as provided for the purpose. The detailed pro- Note 5 : All avoidable manufacturing losses $'hich
cedure for the maintenance of such statistics and are wfitten off by the Govt. or lower authorities :ha!l
submission of statennqnts of losses by the liocai Audit be exhibited in the Appropriation Accounts' The
Officers is laid down in Army Local Audit Manual
consoliCated figures of such losses formally written
PartL Similar instructions for A"AO. (MES) are off shall be included in Appendix 'B' in the proforma
taid down in the MES Unit Accountants at Annexure 'C'under the heading "Ordnance and
Manual. Fron the statements furnished by the
LAOs and A.A.Os (MES), the Controller will prepare Clothing Stores" against Category I or II as the case
annually s{.a{ement in the proforma at Annexure 'C' may be and linked with a foot note to indicate the
to this Chapter and submit the sarne to the CGDA amrf,unt of loss due to rejection.
througlr the local representative of the DADS, so as
to reaih the former by the 3lst of the year follorving Note 6: In the case of loss due to accidentto M.T'
that to which thd statement relates. Vehicles the net loss should be exhil--iteti in the
Appropriation Accounts even though the gross
r The Controllers will also prepare quarterly for the amount of'the loss is required to be written off by the
Quarter ending "Yune/Sep/Dec and March, detailed CFA as per para 247 af Stores Accounting Instruction
slatement of Important losses. referred to in sub para
2 oi para 558 in the proforma at Annexure 'D' to this for the Arrny (1965 edn).

51
 APPROPRIAI]ON ACCOUNTS OF TI{E DEFENCE
SERVICES Iss9-s68
CUAP. l8l
Note ? : Losses discovered at tlre time of Stock
Rs. I lakh in each case showing interalia the number
of involvecl will be rendered to the CGDA
Taking which are not due to theft, fraud of neglect
cases
value falls withir' the powers of the through the local reptesentative of the DADS so as to
""a-ift"t"
Ciio.ldootmandants/oos Ordnance Depots -a.nd reach the former by 31st May ol tl're year lollowing
;ht;i;'-i-*, ttt.t"r"t=' atljustecl c)n stock taking that to which the staternent relates" From these
;;;;; a,tiv uppto""d 6v tlrent will^also be exhibited statements the Controller General of Defence
in the statement of lotttu of stores in the Accounts will prepare and forward a consolidated
App ropriation Accounts' statement to tlle D'A'D.S. on the 15th August each
Notc 8: Unavoidable losses and those within
the year for evetltual transrnission. after tes[ check' to the
lirnits vide para 254 Store Accounting Secretary (Defence/Finance) and Financial Adviser
"r.r"i.*iUf"
i;il;ii;;* ioi tt'. Annv. le65 (Edn). and losses due (Ministry of Defence (Firrance) lot inclusion in the
;;;i;l;;;"tio tr"ivial discrepanciesin transit in res- appropriation accclunts as Appenclix 'C''
p."iif-ijia"ance Stores "pto R's 15 need not be
included in the Appropriation Accounts' To facilitate the submission ol these statelllents
each audit section of the n"rain office will mainte'in
a
560. The CGDA will prepare a- consolidated register for the PulPOSe.
stalement of losses of stoi:es with reference
to the
il;;;;a receivecl from the Controllers' The figures Note 1 : This statement will accompany the state-
o"-u""o""t of losses of aninals for inclusionbyinhim the
ment of cash losses-
looropriation Accounts will be obtained
ilil-ih;-;,1*itti.ttati,te authorities at consolidated
Arrnv Hqrs Note 2: A statement of infructuous expenditure
i""f"a.a in itre All India for M.E.S. will also be submitted by Controliers to
riui"t*nt. The consolidated statementtointhetheDADS
"nJ' final the D.F.A. (Wolks) on similar lines through the local
;;;",;;iiibe submitted bv the cGDA representativc of the Director of Audir Defence
o" ift. l5th August for eventual transmission after and
Services.
i i"ut-lrt."t to tG Secretary (Defence Finance)
i'
I Fil"*ti Adviser' Ministry of Defence (Finance)' 564. Blank
['
,fr
!
561. Blank 565. Blank
il 562. Blank 566. Blank
t
Exhibition of Infructuous Expenditure in the Appro- Statement Showing Variations Between the y€ars
II priation Accounts Original Allotmcnt and Expcnditurc in rcspcct of
I
Works Carried out during the Year
563. Controllers will subrnit half yearly to the
t
567. The above statement is prepared by the
I
I CGDA through the local representatives of - the
f OADS, a statement of Infructuous Expenditure Ministry of Defence (Finance) centrally from State-
I (o,h.t ihan MES) in two parts viz (a) Individual item ment 'A' attached to the Annual Review of M'E'S'
Expenditure suburitted by controllers to D'F'A' (w)
,l

ii of infructuous expenditure exceeding Rs' 1 lakh in

each case with complete details as indicated
in pata by 1st September aucl inclucled in the Appropriation
i
552 ante, and (b) Aggregate value of all items of Accounts as APPendix 'G''
!
infructuous expenditure exceeding Rs' 10'0001- but
This statemerrt will irrclude all Major Works (for
not exceeaing Rs. I lakh in each case showing which provision has been made in the budget) in res-
interalia the nurnber of cases involved for exhibition oi which the original allotment or the actuai
in lurnp su,rl. The reports for the half year ending ""lt
expenditure drrring the year is Rs' l0 lakhs or more'
Sept. ancl March will be submitted so as to
reach
each
prl"ided the variition is 20% theteof or more' In
f" CGDA not liter than the ?th Nov apd 31st May
laaitio", a supplementary Staternent'A' in respect of
year respectively' As far as possible all items dealt
tto.r' U"agat Muio. Works estinatecl to cost over Rs' 2
*i,n nnrttv during a half year will be included in the lakhs is also subrnitted.
statement for that half year, but any items
which
Variations Bctwcen the Original
could not be included therein should be incorporated - CstimatesShowing
Statcmcnt
and lctual Final Costs in Respcct of
in the statement for the next half year with suitabie lVorks ComPlcted during the Year
i"*"rt t (showing interalia the number of cases
t
involved).' In addition an annual statement showing 568. The above statenent is prepared by the
the aggregate value of all item; of infructuous Ministry of Defence (Finance) centrally from state
r
I ."c..cling Rs' 10,000/ but not exceeding ,r',"nt 'Ii' attached to the Annual Review of M'E'S'
i,
t.
la
"*p.n.litur,
li 52

:li

$.
I

r
 Crur,. l8l APPROPRIAfiON ACCOLINTS OF 1TIE DEFENCE SER'VICES Is68-*s?s
Expenditure submitted by Controllers to I)"F.A. {w) to the Local Test Audit Oflicer for certification and
by lst September and includecl in the Appropriatinn transmission to D.A.Ds for linalisatio* of audit
Accounts as Appendix 'H'. report thereon, and to the Controltrer General of
. This Appenelix will shorv original estirnates and Defence Accounts" Director General of Ordnance
expenditure ptc. And exptanations of variations ia Factories and Ministry of Defence (Finance) as soon
respect of all Major Works finally ccrnpleted during as possible after the accounts of the year to n'hich tfie
the year, the original estimate or actual expenditure accounts relate are ctrosed but not later that th.e i5th
orr which is Rs. 5 iakhs or more, provided the varia- Novernber. The Chief Controller of Accounts (Fac-
tion is 10% of original estimates, or more. tories) is respr:nsible for issuing detailed instruetions
Financial Stocktaking of tsig M.E.S. Projects for compilirrg the lv{anufacfuring'accounts in the pre-
scribed Forrn and also for the submission of sueh
569. This statement shows the Iinancial position,
as on the 31st March, of big projects, expected to tzike statistics as are required ior the preparation ef the
more than one year to cornplete, in the proforma laid Financial Adviser's Review"
down in para 138 cf Oflice Manual Part VTIL This
is prepared by the Ministry of Defence (Finance) 573. The aceorlnts of the foltrowing ioncerns are
from the reports submitted by Controllers to D.F.A published in the eornrnercial appendix to the
(w) by the lst September in connection with the Appropriarion Acccunts of the Defenee Ser'"'icss on
Annual Review of M.E.S. Expenditure. or before 30th April <lf the second year follcwing that
Notc: As a temporary measure, this statement is to which they reiate :
not being rendered. (a) Military Farms
570. Blank
(b) Canteen St*res Department (India).
Statement showing dctails of Gifts and eases of
?ransfcr of Government Propcrty of the Book Value Note : An annual consolidated produetion aecsunt .

cxcecding Rs. 1 lakh caeh free or at Concessional rate in respect of Bakeries in the Command will be pre-
to Non Govt. Organisations. pared by the CsDA and exarained critically wlth a
5?1. The details of properties, exceeding Rs" 1 lakh
view to f,rnding ahnorcnal features, if any" and
detailed study of such points carried out. The Com-
in book value in each case transferred free or at con:
mand accounts with CDA's rer"iew thereon will be
cessional rate to Non Gorrernment Organisations (e.g.
rendered to Conmsnd Hqrs, fcr their information
Public corporations, Companies, Autonornous and action as consictrered essential. Unusual features,
bodies,Private Institutions etc.) during the year are
furnished by Ministry of Defence in triplicate (in the
if any rotieed" will be brought to the notice of the
proforma shown in Annexure?'to this chapter) to the
CGDA also.
Ministry of Defence (Finance/Budget) for inclusion 574. The trading and Production Accounts of
in the Appropriation Accounts as Appendix 'J'. * lv{ilitary Farms uill be compiled by the Directr:r of
Military Farns and rendered to the CGDA by the
Commercial Appcndix to thc Appropriation Accounts 15th Cet of the year following that to '*rhich the
572. A Commercial Appendix to the Appropria- accounts reiate.
tion Aceounts of the Defence Services is prepared (i) By the Controller.s of Defenee Accounts in
and published alongvrith the Appropriation Accounts the case of Bakeries so as to reach the
of the Defence Services in one volume. It deals with C.G.D.A by the iSth "Iuly cf the year follow-
the trading profit and loss and other accounts af the ing that to which the accounts relate.
manufacturing and trading concerns of the Defenee (2) tsy t?re Director of fo{ilitary Farms in the case
Services. The Appendix includes the Review of the of Military Farms by the lSth October of the
Financial Adviser and the Accounts of th.e Manufac- Year following that to which the accounts
turing and Trading concerns feferred to in para 573. relate.
Note: The manufacturing accounts and the 5?5. Thc cletailed instmctions for the preparation
'Review
Financial Adviser's thereon of Ordnanc.e, and subrnission of the various accounts by the
Clothing and Leather Factories will not be included Defence Accounts Departrnent are contained in the
in the above mentioned appendix. The acccunts in Stores Accounting Instructions for the Army, 1'965
r respect of these Factories will be compiled and ren- editicn. These aceouats will be checkecl on receipt
dered by the Chief Controller of Accounts (Faetories) in the oflice <lf the controller General of Defence
,
53

8-:rcco.&,Nn/sz
 Cuer. 18i APPROFRIA"flON ACCOLRI'TS OF TIiE DEFII.ICE SER}TCES [s?s-s82
Accounts, consolidated, where necessary ancl sent to (iii) The ligures shown in the column 'actuals for
the adrninistrative authorities in the final fonn in th.e year" shoulcl represent the final figures for
which they are to be published, for acceptance, and the year as shown in the March Supplemen-
for furnishing the, necessary administrative review on tary compilation. Any variation between the
u'orking of the concerns to Miniptry of Defencg cornpiled iigures and those shown in the
(Finance). Advance copies of the accounts, etc., will colurnn 'aciuals for the year' should be
-.*
t be sent sinultaneously to the D.AD.S., for audit and fully explained.
scnrtiny. The original copies duly signed by tire
administrative authorities will be passed on to the 579. The tralances under'p' 'loans and Advances'
D.A.D.S for certi{ication, the copies duly audited by outstanding on the 3lst.March shouid bb analysed
D.AD.S. will be sent to the Deputy Financial Adviser anc! reviewed by sub heads, speciai attention Lreing
(Budget) by the 15th December of the year following directed to wt'ites off, clelays in repayrnent, ack-
that to which they relate, for publication. nowledgement of balances, suspensions, rloubtfut
assets in balances, etc. Any peculiar feature.s, viz
576. Accounts of Canteen Stores pepartment irregular recovery of interest, remission of interest,
(India) ancl a review thereon ale furnished by the grant of loans without necessary safeguard for
QMG's'briinch to lVfinistry of Defence (Finance) who recovely unusually large loans to an individuai or
send them to D.A.Ds for audit and scrutiny, corporate body, etc, should be comrnented
before publication. upon. The staternent of the review should he sub-
' Audited accounts of Hindustan Aeronautic Ltd.. mitted by Controllers ro the Deputy Financial
will be obtained.from the company by the Ministry Adviser (Budget), Ministry of Defence (Finance) on
of Defence (Finance) through the Ministry of the lst September each year as laid down in para 184
Defence. Defence Account Code.

Appropriation Accounts for Cprtain ficvenue and 580. A certificate in the following forrn wili be fur-
Debt Itrcarls nished by the Controller General of Defence
Account5 to the Secretary (Defence/Finanee) and
577. The Secretary (f)efence/Finance) and Finan- Financial Adviser Ministry of Defence (Finance), by
cial Aclviser Min. of Defence (Finance) furnishes the the 20th November on receipt of sirnilar certificates
Contloller General of Accounts with Appropriation fronr. the Controllers of Defence Accounts (signed by
Accounts for the following heads in such fom and thern personally) on the l5th October. "The con-
luran,ner as may be prescribed for the purpose from. trollers will endorse a copy of their certificate to the
time to time, so as to rcach hin on 30th Sept. local shtutory audif representative".
each year. "I declare to the best of my knowledge and
P. Loa.ns and Advances by the Central Govt. belief that no part of the expenditure
16 Interest on Debt and other obligations under
advances under Detlt
120 Payments of Commuted'value of Pensions.
16-Interest on f)ebt and other obligations
In order to enable the Ministry of Defence
(Finance) to prepare the above accounts" the C.D.A. 12C-payments of Commuted value of Pensions
will prepare Appropriation Accounts for the above P Lcarrs and advances has incurred
narned heads so far as they are concerned and sub- has incurred
mit thern to the D.F.A (B) as laid down in paragraphs
209 to 210 and 229 Defence Account Code. ---been-
l'lave made
578. The follorving instnrctions will bd observed in
ior the year
the preparation of the Appropriatioh Accounts without authority superior to that of the Department
or the oflice in caqes'where such authodfy is required
'' referred to abo.rc :-
by the Regulations".
(i) The actuals for the year under Loans ancl
Advances should represent only cash tran- Note : This certificate does not cover the expendi-
sactions and not book keeping adjust- ture incurred by High Copmissioner for India in the
ment. The debits raised by. the High U.K. and booked in the accounts for the year, which
Commissioner for India in the U.K. should is audited by the Director of Audit, Indian Accounrs,
be included in the actuals, but the amounts in the United Kingdorn on behalf of the Cornptroller
shown separately in the remarks column. and Auditor general of India.
(ii) The authority for the original ancl sup- 581" Blank
pl'enrentary allotments should be quoted. 582. Blank

54
 ANNEXUR.E 'A'

srarcmenr-showing i,ems
"r "*p""d'ul:'":":".irt:::r:ili: :T :::"::::g ,he sancrion or lhc Gc",. *r rndia

sl. Brief Amount Head of Circumstances The exact The date on The date cn The latest Remarks
No. particulsrs Account in *rhich tbe nle;a on r*thich t!re' 'st;.:ch the posiiion of
of items expenditure r*hich the case was *$3e w*s ilre case as
was incured objection rras Iirst fir$ refe*ed kno'wrr tn the
and/or admitted first raised referre4 t* Sewice Controiier
without the to Command Hflrb *&er-
necessary etc HQrs eveu ltncwn
authority

i0

ANNEXUR.IT'E'
(Referred to in Paras 558 and 5591
Statement showing by various categoricr, lhe totc! ameunt of stores losses pertaining to {he l}efenoe Services
fineHy dealt with the during year,....

Categories Food( POL& Other M.T. O&er Medicel MES MISC A.siation Naval Total
of losses Forage Aviation ASC Vchicles Ordnance Sfores Stores Slores Stores Stores
spirir Siores &&&.
connected clelhirrg lruiidings
stor$ gt$!!g

l0 1t l2
llead I-Actual
Losses due to theft
fraud or neglect
Hcad ll-Actual
losscs due io
dher causes
(e)Fir€....
(b) Defrciencias in
'actual baianccs

(c) Daerioration
(d) Defective storage
(e) In transit
(0 Misccllarteous
causGS

Total of Head II
Grand total of
Head I and II
(Ihe figureg in the statcments should be rounded to the nearest mpee).

55
 ANNEXTJRE 'C'

(Referred to in Paras 555 and 5-59)

sl. Name of uniV Particulars Period to Amount Circumstances Details Particulars Remedial No. & date Other
No. formation in of the loss cihich loss under nitrich of the of disci- meSsurfs of the rbmarks
which rhe pertarns the loss recomrnert- piinary instituted icss if any
lors occurred dation of action or propcsed statement
occurred the court taken to be of Govt-
of Inquiry instituted ietter
if held fcrr the urisler
prerention which
of iosses regularised-
in future

ANNEXUR.E 'D'

(Referred to in Para 555)

Stalement showing by various cetegoricsrlhe !ot6l &rilcunt of cash losees pertainlng lo the Defence Serrices
relating to post/pc-p*rlitioh period finalry dealt *ir.h during the year

Categories cf losses Losses of overpaym€nts Fraurialent Demurrage Unaulhorised 0ther

cash proper and irreco- use of charges use of Govt. categories
verable' Railway or hired
ciaiurs wan'&nts transpoil

I. Losses due to theft, fraud or

neglect

Total I

II. lnsses due to other Causes

Total U

GrandTotall&fi

56
 ANNEXIJRE 'E'

(Referred to in Note 2 to Para 541)

stetemc$l showing detrib of oslstslrdinE3 on account of

piymcnt irs$6/3€1vlce3
rendercd for the period ending 3lst Ntarch""""""' all on """""""'

Rs.50,000ineachcaseoJprivateindividuals/InstitutionsandRs.llakh
rn other cases outstanding lbr more than one )€ar)
t
Period to vrtrich the AmoUnt Remarls
st. Name of the corrsigrisr or the Name of the Party
from whom d.ue amount relates
No. authoritY which rcndered
-a servrce

TOTAL AE,IOIINT-...... I
i
t

t ANNEXURE 'F'

(Referred to in Note 2 to Para 54i)

stltcmetttshovirrgdetaikofoutstardlnpduesiniccounloflicenceFcecbarges
&! on
for lhe period ending 31st Mrrch"""""""""""' """"""""'-"
.
(ndividuat items ol ovel Rs' 50.000 iu each case 6f priwtte individualv'lnstitutions'and Rs. I lakh
,n-o,tt".'""tt* outstanding for mor€ lhan one year)

Period to which Arnount Rennsrk;t

sl. Name of the unit/formation Name of the
Party from whom the amount
No. reiates
due

I
t-

TOTAL AIvIOUNT..."...

57
 .G'
AI.{NF,XURE
.
(Referred to in Note 2 to Para 541)

' :'- -- B' S6'm1'in eact case which were lnduilcd h An$x'I' m e'G'D'A's
t"3S:}l'JITlri;:S;SrtJfSt;T,:'6*T *;t;t *, Frevio.s ,**"i'i *iiot stiri ewrtine regrrr*bation
""
AInount Remarks
Serial No. of Prcsent Pdsttion
Sl.No. Year to which ihe APPto- ol the case and
priation Accou$ts Pertain Annexure "I'
actiod taken to
expedite regularisation

TOTAL AIvIO1-]NT"..'..'

\
.H'
EXTJRE

(Referred. to !n Note 2 to Para 541) :

regulirkstlot! by Govt' of tndia rnd

Minirtry of Defcnee under deleglied
Statctlent sho*in! dcteitr of losses rwliting tfuli r yelr
polvers rne outst4rding for moie

Present Remarks
Anrount Particulars of
Name of the Unit No. aad date of Fosition
Sl.No. loss
Loss statement

TOTAL AN,IOUhiT......'

58
G
tt"
t
:

\
i,
1

ANNEXIJRE'I'

(Referrsd to in Para 5?l)

Stalcment of proper{hs exceafirXg k. I lrth ln trhc treftrred & Non{owtlmcnt @rnfoutbtt &tr@ thc rar

Details of pmpeily Boot valus Tb wtcm Purposc of Authority covering the

tramfer trlnsfcr irensfet
transferred

59
 \

CHAPTER 19

REPOR.T OF TIIE CON{FTROLLER. AND AUDITOR GENIRAL OF INDIA, UNION GOVERNMENT

(DEFENCE SERVICES)
Para
Report of the Comptroller and Auditor General of India' Union Governrnent @efbnce 583
r{
Sen'ices)
587
Draft paragraphs 592
Action on thc rePort of the Public Accounts Comrnittee
b t

Report of the Comptrolier and Auditor General of how far moneys placed at the disposal of Govern-
r
F
indiB, Union Government (Defence Services) ment were regularly and propelly spent. In order
h.'
I adequately to fulfill the latter function, the reporl in
Ir 583. The results of test audit conductertr by the addiiion io the points arising out of audit against
t
Director of ,{udit Defence Services and his staff as provision of funds, brings to the notice-of the parlia-
t, alsorthe result of internal audit conducted by the nent (i) irnportant {inancial.irregularities, such as
k Defence Accounts Departrnen! where he so thinks deficiencies of sanction, failure to enforce or tespect
necessary, are included by the D.AD.S.in an Annual prescribed rules and procedure, -offences against
I Audit Riport entitled "Report of the Comptroller and
-General universally" aecepted standards of oflicial conduct or
Auditor of India for the year 19."'.""'To financial adrninistration, or any other class of
19.......... Union Government (Defence Ser- irregularity" and (ii) cases of losses written off or
vices)". This report contains such comments on the nugatory expenditure.
regularity and propriety of expenditure as - are
de'erned n*""ssury and proper to make as a result of 585. The report of the Comptroller and Auditor
audit investigations, iniluding the examination of General of India, Union Government (Defence Ser-
audit of accounts of receipts and of stores and stocks vices) contains not only the cases of financial
units and formations of Defence Ser- irregularities discovered during test audit by the al-dit
-The by
mainqined
report contains, in addition, general
vices. depirtment l)efence Services, but also cases,-which
rernarks regardlng {inancial administration, topics -of cottr" t. notice from ot?rer sources as well, such as (a)
special interest, important or typicll financial sanctions of the Covernment of India (b) reports of
iiegularities, losses, etc., and gelqral defect in important cases of irregularities detected in internal
adriinistratiou of discipl.ine, of which the cases of auAit Uy the Defence Accounts Department and (c)
irregularity seem to afford substantial evidence, any the comrnents of the Director of Audit, Indian
neglect of recommendations of the Public Accounts Accounts in the United Kingdom.
Conr.mittee which have been accepted by the Govern-
ment ancl any new rernedy, general or particular, 586. The action to be taken by Controllers of
twhich the D.AD.S" considers it desirable to Defence Accounts on Draft Paragraphs proposed for
g . inclusion in the report of the Comptroller and
suggest.
tp Auditor General of India is indicated belorr'.
Cornmenls wtrich the D'A"D.S. desires to make
t upon the results af the audit of tading and Pro{it Draft Paragraphs
und Lots Accounts, Balance Sheets, etc., of Commer-
E
f cial or quasi-comrnercial concerns of the Defence 58?. The draft paragraphs proposed for inclusion
t*.
r Services ire also included in the aforesaid report of in the Report of the Cornptroller and Auditor
the Comptroller and Auditor General of India Union General of India are sent by the Sr. DDA/DDA/
b
B
t,

$-
Governrnent (Defence Sewices). ADA/AO Defence Services to the Controllers con-
t;
F 584. The repofi of the Comptroller and Auditor cerned for verilication of facts-- The Controller
fr a\ General of India is designed to sgrve a double pur- should retrrn the draft para within six weeks cf its
pose. To the Gnvernment of trndia, the report will receipt as far as possible. On receipt of the remarks
show the extent to which the Defence Services are of the Controller, the former will amend the draft
;.
complying with its rules and orders, and will often rlaragraph, if necessary, an<l send it to the DADs for
After ihe tr)irector of Audit' Defence
F .rrggist directions, in which these rules and orders
can- with advantage be amplifred cr modified or
iurttt-"t
Services""ii.tt.
has accepted the draft paraglaph, he will
t.
tr. improved. To the Parliament through its Public send three copies thereof (six copies in case of
I Aciounts Committee, it will reveal in general how far paragraphs pertaining to the Department of Defence
F
f the Government has complied with its expressed ilroduction) to the Ministry of Defence and one copy
$ views in $ratters of importance, and in a particular of the rlraft paragraph to the branch concerned of the

I
F
!:'
F

t
I
IF

I
r

r
 REPORT OF THE COMPTROTT.F'R AND AUDITOR. GENERAL OF INDIA, UNION GOVERNMENT
cnep. 191 (DEFENCE sERvICEs) [587-592
Services Headquarters for advance information and contained explanatory note on the circumstances of
to enable the bianch concerned to collect material to the case indicating inter alia :-
ensure quick examination and disposal of the draft (a) whether the irregularity was discovered in
paragraph. The Ministry of Defence -will, before internal audit or by the test audit staff. If not
a"coiaing their'final concuffence, refer the {ile to the detected by the Defence Accounts Depart-
brafch ioncerned who will, after recording its ment, brief reasons therefor should be
remarks, retur'n the file to that Ministry through the furnished;
D.F.A Concerned. The CGDA will also be con- (b) if the items was discovered in internal audit'
sulted in cases involving accountsmattersof Defence whether it was reported to the administrative
Accounts Departnrent. The DADs will be informed authorities, and il so, with what result; and
of the acceptance of the para by Ministry of Defence
*through (c) whether the draft paragraphs were brought to
a self contained note and the file passed to the notice of the adminisrative authorities;
DEA (B) for record. where the draft paras were discussed with
those authorities a gist of the discussion
Controllers will invariably bring to the notice of should be supplied
the local administrativb authorities and discuss with
590. The controllers should examine the dlaft paras
them all draft paras proposed by the audit with a view to ascertaining whether any failure'io
authorities. A copy of each of the draft paras as detect the irregularity, or to take proper and prompt
finally concurred in by the Controller will also be 4ction after detection, can be attributed to the Defence
furnished to the administrative authorities Accounts Department. The Controller's opinion on
concerned. this point should be expressed in the explanatory note
to the CGDA. Infprmation regarding the period to
58t. As the draft paragiaphs, by inclusion in the which the irregularity pertains, when itwas detected in
report of the Comptroller and Auditor General of internal audit, when it was reported to the higher
Isdia Union Government (Defence Services), will authorities and the result of this reference, the extent
ultimately come defore the Public Accounts Commit- and*nature of failure on the part of the executive,
tee, they shouid receivc in Controllers' Office the deta$s of disciplinary and rt*edial measures taken, if
most careful attentiort at the highest level any etc., which will be helpful iir assessing the extent to
possible. The draft paragraphs received from the which ihe Defence Accounts Department could be
iocal representative of the DADs will invariably be held responsible for failurc, should invariably be fur-
brought to the notice of the Command Headquarter nistrred io the CGDA irr the explanatory note. In
simultaneously endorsing a copy thereof to the local cases where failure can be attributed to the Defence
administrative authoritie s concerned' The lower for- Accounts Departmen! the Controllers should indic,ite'
mation will however, furnish their replies/necessary clearly the responsibility of the individuals concCfoed
details to Command Headquaters/LAO concerned ancl the disciplinary action taken or proposed to be
who in turn will forward the same'to CsDS with their taken against them.
comnents. Controllers may'allow the Command 591. After taking into consideration the facts com'
Headquarters a period of 30 days for furnishing the municated by Controller and other factors known to
final replies
-
thereto. Irr important cases, the matter hiur. the CGDA will suitably endorse the file contain-
shc'uld be discussed by the Controller with the ingr lhe draft paragraphs proposed by the DADS for
administrative authorities before the draft paragraphs inclusion in the report of the Comptroller and Auditor
are concurred in. Norrnally no draft para should be General of India. Union government @efence Ser-
concurred in without the personal knowledge of vices), when such cases are referred to him.
the Controller.
Action on the Report of the Public Accounts
I
I Committee
I 589. In order to ensure that the office of the
592" The report of the Public Accounts Committee
; CGDA gets all the nccessary infon:ration in time and to the of India,
t is fully posted with complete details of the case to
is submitted Governm.ent who
t' consider its recommendatipns arising out of the report
deal with the draft paras when subsequently referred of the Comptroller and Audito General of India. The
to him, the Controllers should endorse tq the CGDA orders passed by the Government on the recomrren-
a copy of each draft paru ;lfter it has been concurred dations of the Public Accounts committee affectingthe
in by.them and returned to the Sr. DDA/DDA/ADA/ Defence Services, will be communicated to Con-
AODS concerned. Thc advancc copy of the draft trollers, in due course, by the CCDA with any sup-
para should be acconrpanied by a brief and self plementary instructions considered necessary.

6l

9:3/CGDA/ND/92
 APPENDIX I
(Referred to in para 158)

INSTRUCTIONS FOR TTIE MAINTENANCE OF RECORDS OF SERVICE OF REGULAR OFFICERS OF

THE |NDTAN ARMY (TNCLUDTNG NURSTNG OFFTCERS) BY THE CDA(O) AND CWIL ACCOUNTS
OFFICERS PAYING MII,ITARY OFFICERS IN CTWL EMPLOY

1. In addition to the records of service maintained Note i The service card received with the last pay
by the administrative authorities on IAFZ 2041 and certificate should be checked to sec that the entries,
other prescribed forms,r r€cords of service will be made therein date back to the Officer's (or Nursing
maintained on cards (IAF (CDA) 313) by CDA Officers) date of regular Commission and that it is
(Oflicers) for all regular officers (including Nursing complete and upto-date in all respects.
Offrcers) of the Indian Army in Military employ and
4. When an Army Officer (or a Nursing Officer)
by Civil Accounts Officers in respect of Army proceeds on deputation to the U.K. and passes into
Offrcers (including Nursing Offrcers) in Civil the payment'of the High Commissioner for India in
employ.
the U.IC The Accounts Officer in India who issues
I the Last Pay Certificate will continue to maintain the
t
I 2. Following items will be entered in the service card for the period of deputation. The necessary
I cards:- I
particulars for the completion of the card will be
I
I obtained from tlie Last Pay Certificate, received from
I
(a) -Unauthorised absence and leave without pay the above authority when the officer (or the Nursing
land allowances. Ofhcer) r&turns to India.
t
i 5. When an Army Officer (or a Nursing Officer) is
(b) Service forfeited for purpose of pension by
special orders.
lent for foreign service, in or out of India the card
will be maintained by the Accounts Officer who is
(c) In the case of officers deputed to foreign ser- responsible for the recovefy of foreign sewice con-
vice: full particulars of the period of deputa- tributions. The foreign employer under whom the
officer is serving should be asked in a letter to be sent
tion citing reference to the Ministry of Defence
with the oflicer'$ Last Pay Certilicate to communicate
letter and the allocation of pensionary
any change in the oflicer's service and any leave
liability.
granted to him/her.
(d) In the case of officers who were holding non- 6. (a) When any Army. Officer (or a Nursing
regular co.mmission before the grant of perma- Officer) retires or when a grant of pension is made to
nent regular commission : his or her family if he or she dies while on the active
details of any gatuity other than war gratuity list the CDA (Officers) will complere the original ser-
paid for non-regular service. vice card (including the summary) and forward it
along with the Last Pay Certilicate to the CCDA
3. When and Army Oflicer (or a Nursing Oflicer) (PENSIONS), Allahabad, to enable the latter to allo-
passes from the payment of .he CDA (Oflicers) to cate the pension charges of the officer (or the Nurs-
tts\
that of Another Accounts Offrcer, or vice versa (per- ing Officer) arrong the different Departments/
manently or temporaril, the Accounts Officer con- Governments under which the officer served.
t- cerned issuing the Last Pay Certilicate udlf forward (b) In the case of an orficer in Civil employ,
the service card, duly completed upto the date of whether permanently or temporarily, who retiresldies
transfer of the oflicer concerned, alongwith the Last on the active list, the card duly completed will be for-
Pay Certificate, and the fipther maintenance of the warded by the Civil Accounts Officer to the CDA
card will then devolve on the Accounts Officer res- (Oflicers). The CDA (Officers) will complete the
ponsible for maintaining the pay accounts of the summary on the reverse of the card and take action
officers. as at (a) above.

i, 62
 APPENDIX 2

LEAVE PROCEDURE
(Referred to in para 157)

Certificate of Admissibility 6. If in dealing with applications for learre from an

Army Officer in civil employ, whether subject to
1. JCOs, ORs and Civilian non-gazetted establish' Army or Civil Leave rules the Civil Accountant
ments.-In the case of these categories of personnel, General considers it necessary to consult the Con-
no certihcate of admissibility from the Controller of troller of Defence Accounts (Officers), the Iatter will
Defence Accounts concerned is necessary, but the render all help and advice required in the matier.
authority sanctioning the leave should satisff himself
th'at the leave is admissible. Payment of Leave Selary in India
2. Army Officers.-CDA (O) is not required to cer- ?. No officer can draw his leave allowance in India
tify to the admissibility of the leave but the authority except from the Audit Officer who audited his pay
sanctioning the leave should satisfy himself that the before he ilroceeded on leave.
leave is admissible. On receipt of Pa* II orders
!. notifying the grant of leave; the CDA (O) should 8. Civilian Gazetted Officers.-An officer proceed-
audit the title to leave in full. ing on leave within Indian limits may d.raw pay and
'personal
allowances due to him on his acqount
3. Army Officers in Civil employ.-(a) Wheu an through any banker or agent who has executed a
Army Officer becomes subject to the Civil I-eave general bond of indemnity to the President for
Rules, the Cqntroller of Defence Accounts (Oflicers)
.payments relating to or for persons whose salaries or
will on application and on being furnished with the pensions are debitable to the Centril Government or
date of commencement of active service in civil whose bond of indemnity executed prior to lst April,
employ, furnish to the Accountant General to whose
. audit he becomes subject, a memorandum showing ^ 1937 continues to be valid under the Tieasury
$
t the fuilough earned the different kinds of leave Rulr.. A list of such banks and agents is given in
appendix 9 to Financial Regulations part iI.
taken (distingrishing those which should be deduc-
ted from the maximum furlough admissible) and the
balance of furlough due under the Leavp Rules for 9. Civilian non-gazetted establishment.-The l'eave
the Service vol I Army. salary of a non-gazetted civil?an government sirvant
on leave in India or on leave out of India cannot be
(b) \,Vhen an Army Officer in Civil employ, but drawn in India, except over the signature of the Head
subject to l,eave Rules for the Services vol. I Army, of his oflice, and the latter is responsible for
applies for leave, the Controller of Defence Accounts any overcharge.
(Officers) will, on application, furnish the Civil
Accountant General concerned, with infiormation Leave Salary Advence
regarding the amount of leave to which the officer is
entitled under LEAVE RULES for the Services vol. I 10. An officer/a non-gazetted Government senrant
Army and the rate of leave pay and allowances can draw leave salary advance from the ConFoller of
admissible during such leave period. Defence Accounts concerned if he proceeds on lcsw
for a period of not less than a monlh./30 days. Thc
f 4. Govcrnment servrnts in foreign senice.-In the amount of leave salary advance is rcstdcted tro {k nct
case of offrcers and others on foreign service, the amount of leave salaryfor the first month of leare that
Conholler of Defence Accounts from whose payment is clearly admissible to him after deductions on
F the individual went on foreign service should report account of Income Tax, Providend Fund, Licence Fee,
on the admissibility of any leave applied for. repaynent of advances etc., so that no financial risk is
involved. The advance so drawn is adjusted in full in
5. In cases where Audit O{ficers are required to the leave salary bills pertaining to the period of leave
certify to the admissibility of the leave, no leave availed of. 'In case where the advances cannot be so
should be sanctioned until such certificates have adjusted in full, the balance will be recovered from the
been granted. next payment of pay or/and leave salary.

63
 APPENDIX

ll. JCOs and Other Ranks.-When proceeding on Payment of Lecve Selcry to Olticcrs on fuave Ex-
leave, JCOs and Other Ranks are granted advances India
of pay as laid down in "pay and allowances
regulations (for JCOs, ORs, and NCs(E) of the Army) 13. Unless the President by general or special
(ORs)". order otherwise directs, leave salary shall be dlawn in
Rupees in India. Olficers on study leave outside
12. Army Officers.-Leave allowance will be drawn India shall, however, draw their leave salary abroad.
in the IRI-As. in the normal manner and the If leave is spent outside India the Government ser-
amciunb disbursed to their authorised bankers who
vant must make his owR arrangemerlt to draw his
have exccuted a general bond of indemnity with the leave salary in Rupees in India and to remit such
President of India under Rule 247(2) compilation of portion of it to the foreign countries as is permissible
the Treasury Rules Vol. I or in special cases, to the under the foreign exchange regulation for pleasure
o{Iicer lhemselves direct if so requested by them. travel abroad.

64
 APPENDIX 3

TIIE CONTROLLER GENERAL OF DEFENCE ACCOUNTS

POWf,RS OF

tloes not describe the adrninis- (1) Establishment charges.

Notc: This appendix
-
trativc po*.tt of the CGDA which u'ill be (i) Salary of Ofhcers
found in Office Manual Part I' (ii) Salary of Establishrneut
. (iii) Deamess PaY and Allowances
Panr I
(iv) Other Allowances
Powcrs of Sanctioning Expcnditure
(2) lntcrirn Relief
The CGDA may sanction expenditure or advan-
l. (3) Travelling ExPenses
ces of public money in those cases only in which he (4) Other charges (including miscellaneous and
is authorised to do so bY:
Contingent (ExPenditure)'
(a)
' ' any Cocles or Regulations issued by or with 4. The CGDA is- responsible for obtaining
the approval of the Government of India; or additional funds if the total provision under the res-
(b) any orcler of the Governmen[ laying down a oective heads. mentioned above is likely to be
scale or nraximum scale of expenditure; or exceeded. The grants made under the above heads
(c) t[rese rulcs. may be allotted or re-allotted by him betrveen the
serrirai Defence Accounts Offices including his own
2. The CGDA is ernpowered to sanction expendi- office as required. He may also re'appropriate
ture on corrtingctlt and miscellaneous expenditure as funds from one detailed head to meet authorised
hearl of Dcpariurent under Rule l0(3) of the'Delega- expenditure under another detailed heaC within the
iion of Finincial Powers Rules 1978, subject to the same sub head.
provisions contained in Schedule V (and Annexure
Powers for Write Off
ihereundcr) ancl Schedule W therecf as amended
from timc to time. 5(a) The CGDA may sanction the write off of
losses of cash due to Robbery, Accident, Embezzle-
Note: The financial powers in respect of ceftain ment and similar other causes upto a limit of Rs' 500
items of continge nt exponditure l{f,er*lised and giverr in each case.
'to Heads of Departments vide G&ernment of India'
Ministry of Finance (Department of Expenditure) (b) The CGDA may as Head of the Department
No. f'. l0(3)E (Coord)/6? clited 18-10-68 are indicated sanction the write off of irrecoverable losses of
in the Annexures to this Appendix. Defence Accounts Department stores and or of
Public Money (including loss of stamps)' subject to
Appropriation and Re-appropriation the limits and conditions laid down in, Schedule VII
to the Delegation of Financial Powers Rules, 19?8 as
3. The CGDA is responsible on behalf of the Sec- arnended from time to time.
retary (Dcfence/Finance) and Financial Adviser
Ministry of Defence (Finance) for the control is (c) The CGDA is empowered to sanctiou condem'
expenditure uncler the grants made in the sanctioned nation of Typewriters upto Rs. 10'000 in each case'
gu'ag"tt estimales for the civil services under the Powers as l{cad of thc DePartment
following hcads pertaining to the Defence Accounts
6. The CGDA is the Head of the Defence
Departmlnt (including his own office)'
Accounts Department and exercises certain powers
PART I of Head of the Department, in respect of the person-
nel of his department, as laid down in the various
Consolidated Fund of India Rules, Regulations, codes and Government Orders
Rcvenuc Rcceipts/Expcnditure mct from Revcnue delegating to him such Powers'
c. Adninistrative Services ?. The DCGDA and CSDA exercise the powers
under FR. 56 of FR & SR Pt I as amended frorn tirne
19. General Administration.
to time regarding continuance in service or otherwise
C. Secretariat and attached offices-Civil Sec- beydnd th-e age of 55 years in'respect'of Group C and
retariat (Department of Expenditure) Defence
Accounts Offices. D,establishments under their respective control'

65
 APPENDIX

F'ees and !tronoraria 12" If ttrrc CGDA considers it desirable that ttre
whole or any part of the audit applied to Go.rern-
8. The CGDA is the competent authority in res- ment accounts or to any other accounts, which he is
pect 'of the personnel of the Defence Aecounts required to audit under rule" shall be conducted in
bepartrnent for the purpos€ of the rules regulatirrg the offices in which those accor-rnts originate, he may
the grant of fees and horrorada, laid down in Finan- require that these acccunts together with atrl boohs"
cia!-Regulations, Defence Services papers and writings hal4ng relation ttrereto shall, at
Telcphones all- canvenient times, be made available in tirose
offices for inspection by tris Audit Offieers.
9. The CGDA is given full powers to sancticn
installation of telephones in Defence Accounls Offices 13. When an objection taken in the course of a'udit
and to sanction residential telephones in respect of (a) cannot be settled by a Controller of Defence
officers in the.Junior Administrative grad'e and above Accoun[s in csnsultation with the authorities con-
(b) Deputy Controllers of Defence Accounts in charge cerned, the CGDA may either ins$rct the Controller
ofnaririnistration and (c) all officers in over all charge to withdraw the objection, or require the administra-
of independent olfices. CGDA may also sanction tive authorities concerned to obtain the requisite
residential telephones in other cases upto a ceiling of 5 sanction or" in default to recover the amount under
telephones for the Defence Accounts Department objection, subject to the proviso that the CGDA will
as a whole. wiitrrdraw the objectidn if so, decided by the Seeretay
(Defence/Finance) and Financial Adviser, Ministry
-
(Authority: item 26 of Annexure to Sch' V of .of Defence (Finance).
Delegation of Financial Powers Rules
- 19?8'and Government of India' Minis- 14. The CGDA cannot be over-ruleC by the Minis-
try of Finance, Department of Expendi-- try of Defence on a question of rules cr proeedure in
ture Defence Division }do. C/J/!/16 of relation to defence expendihrre without the con-
10'346) and as amended bY their OM curnence of the Comptrolli:r and Auditcr Generatr of
No. F. I. (21) E. II(A) M dt 14-12-84. India and the Secretary (Defence/Finance) and
Financial Adviser, Ministry of Defence (Fitrance).
PmT II i5. Similar'Ey the D.AD.S. h.as rto polver to
Audit Powers overmle the decisions given by the C.G-D.A' sueh
power, lying only with the Secretary (Defencel
Notc: The word "audit" as used in the rules in this Finance) and Financial Adviser, Ministry of Defence
part refers to the internal Sudit functions (Finance) and the Comptroller and Auditor General
ixercised by the CGDA and his staff as dis' of India.
tinct from stellutory audit functiqns exercised
by the DADS on behalf of the Comptroller The DADs can be ovemrled only by the Conn-
and Auditor General of India. ptroller and Auditor General of India and w-here
ihere is a final disagreement between the eGDA and
10. Thc Secretary (Defence/Finance) and Finan- the DADs the point at issue will be referred by the
cial Adviser, Ministry of Defence- (Finance) is res-- Secreiary (Defence/Finance) and Financial Adviser,
ponsible for the maintenance of the accounts of, Ministry of Defence (Finance) to the Comptroller
befcnce Services. The following rules define the and Auditor General of trndia through the DADs'
duties and powerc of the CGDA as regards internal 16. The CGDA may" sn his own motion, and shall'
audit" and he is vested with these powers by the Sec- on referenee being made to hirn by the tslinistry of
retary (Defence/Tinance) and Financial Adviser, Defence or Services Headquarters review the decision
ilIioGtry of Defence (Finance) on whose behalf he of any Defenee Aeeounts'Offrcer serving under his
will exercise them. administrative control and if he thinks fit, over-rule it.
ll. The CGDA wiil, if so, required by the Ministry 1?. The CGDA shall have power to require that
f of Defence (Finance); any bocks, papers or writings relating to the accounts
(i) arrange for tbe audit of the accounts of auililed by ihe Defence Accounts Department should
be sent foi inspection by him or by any other officer
receipts and expenditure of any public ar- of the Defence A^ccounts Departnnent provided that:
quasi-public department under the Min. af
;.t Def. although they may not relate directly to (i)
-' ifdocuments
the Ministry of Defence certilies that the
the receipt and expenditure of Governnent in question are secret, the CGDA
moneys; and
or other Defenee Accounts Officer, as the
case may be, shall accept in lieu of all such
(ii) arrange for the audit of stores or stock in the documeits and as a correct account of the
possession of an oflicer or "a department facts stated therein, the statement certified by
under, the tvtinisry of Defenee. the Ministry of Defence; and

66
 APPENDD(

(ii) ifthe documents are confidential, the oflicer

to whom they are made over, shall be made
responsible for the preventing disclosure of
their contents.
3. Printing and l4 (i) where work is
Binding executed through
18. The CGDA shall, with the approval of the Sec- Chief Controller
retary (Defence/Finance) arid Financial Adviser, of Printing and
Stationery-Full-
Ministry of Defenc€ (Finance), prescribe the forms in Powers
wtiich accounts shall be kept in Defence Accounts (ii) other cases Rs.
Offces provied that no change which will affect the 5000 P.A
form of-the Finance and Revenue Accounts shall be
'oade without the previous sanction of the Com- 4. Localpurchase of 21(b) To the extent as
ptroller and Auditor General of India. pettY stationery may be delegated
stores by Ministry of
to Appendix 3 of Defence Audit Code Finance
Annexure
Note: The existing
financial powers
Sr. Item of Expen' Sr. No. of Liberalised are Rs. 25,000 P.A
No- diture item in powers (for all the offices
schedule including his own
Vof office) only :with
DFPR the concurrence of
tire controller of Sta-
tionery (authority:
Govt. of India,
Ministry of Fin-
l. Fixures and furni- full powers ance Department
ture purchase of Expenditure
and repairs oM No. F-l(21)-
Hire of oflice fur- full powers E.II(A)/84 dated
diture, Electric 14-12-1984.
fans, Heaters, 5. Local purchase of 21(c) Full powers
Coolers, Clocks rubber stamps
and Call Bells and office Seals.

67
 APPE}SDIX 4
EI{GIF{EE,R SER.VICES EXPENDITURE
AN$UAS- R&V3EW &tr fu!ff,gTARV
(Refemed to fu: para 538)

1.Tlle Review is prepared by the af

Seeretary
Finaecial
fUrf-tt"*ffinaas*) "oi--' hr{inistry
Xa"lr.r b-i.""u (hi"utlot)' It eovers Army"" Qctop'
For its 5. Statement 'E': Showing msh of
fi'?;;;d llu"J-#otks expenditure' Defence
n g;o"qt c-o.1*llers.^9f expendinrre in March with
fi;p;'*t;":'ll'.
are tc suumit the following.statements
to ,."uoo, therefor
-
lsttr July
icc.ounts
A; d&ry ri""""i"i-ia"iser flilorks)' Ministrv of
ilrr*"i tFi"-*e), so as to reacii him not later than 6. Statement 'E' SuPPlemtnEt..
the dates shovrn below every Yeafi (i) Showing rush of exnendi- |
ture in resPect of works I
Neme CIf the stgtement Date on
which
consisting over Rs' 251
due to reach
lakhs I
DFA(I 1
(i0 ;;a; in ulhich the expendi'f tstto s*tv
I
nrrreduring March is rwo 1

times or more than t*o I

A(i): showing ai! times the average of the I
I

I
1.. " Statemeet
n+*iot Works in resPect of preceding eleven months J
I
wnicn ihre originat estimates'
7. Statement 'F': Showing the
aooroPriation or the actual miscellangous irrcgularities of
*ii."ait"t* incurred during the important natrre zuch as losses,
veir is Rs trO lakhs or rr-Gre Pro'
iriaed the variation is 2Q% oon lecovery of licence fee
etc. l5th IulY
thereof Gr mole !6th August
(ii) Showing all non budget. 8. Statement 'G': Showing the
Maior Works estimated to cost acttral working of the standard
t"t't nt. 10 lakhs on whictr schedule of rates, in resPect of
ixpenditure das incurred dur-
ing the Year.
ldth
rvrr August contracts of Rs. I lallh and
''Bl: Showing Majot il; based on s's'R 15th lulY
2. Statement
-
il;kt financiallY comPleted 9. Statement'H': Showing laPs of
during the year the on-glnal . funds due to bad or noo Plan-
estimites or acfiral exPenditure ning in respect of new schemes
on which is Rs. 5 lakhs or more Rs. 5 lakhs and above
the variation is 15% of "otiiog
where savings arc 100% or mote
"itia.a
ihe original estimates or rnore
with eiplanations for variation
oitftt origiiral appropriations lst September
beween original estimates
10. Statement showing working of
loC *ip."alruo 16th August
quantitative system of stores
i""o""ttng ai'a stock ved{i'
"' Statement C : Showing exPendi'
3. 15th tuly
;;;l";La under ob3eciion loth Aueust
"uiio"
4. Statement 'D': Showing lttgo- ll. Statement showing expenditure
larities in connection with con- incurred on opcratronar
- l6th August
tt""t", the accePtance of tenders works
tt*, exiess exPegditure
-- List of
12. cases of remission/
owing""a to rates for works not teductioo of DePartment chaP
' to
h;t#g been kePt the
lSth JulY geS lst
'-- sePtember
------
mininrum
6E
 APPENDIX

?". Detailed instructions regarding the preptiration furnished after fuil eonsutrtstions with sueh
of the above mentioned statements and the informa- authorities and any points of difference brought ouc
ticn to be ilrcluded therein are give n in chapter IX of afrer attempts have 'oeen ura,.le by personai discus-
Of{ice Manual, part VIItr. It is of considerable sion to reconcile the different points of view.
importance ttrrat the statistics required for the above Specific men{ion sh*uld be made of cases in wteieh

T mentioned statements shouid'rre eollected throu ghout the administrative autharities eoncerned have by
the y'ear as audit progresses and cases are brought to thcir poli.cy or procedure, prctected or advaneed the
the notice. This work should not be lclt over til! the financial interests of goverrrment"
time for the rendition of the statements approaches.
The starements should be fuiiy informative, in addi- It is desirable that instanees of improvement and
tion to the notes in the eolumns of eash siatement" aii tendeneies towards improvennent should be
Controllers may give a covering note to any state- brougilt to light along with the r€verse tyBe of
cases.
ment emphasizing ttrre points which they eonsider
innportant.
I
4. The review shculd nol however, contain eon-
troversial suglestions retrating tc the alteragion of ghe
a

3. trt is essentiai that the various points bror-lght

out shoul<l be discussed by ttre Ccntrollers wieh t$e existing proeedure *r systern. ffn the otlier hand,
ioeal M.E.S. Authorities anti Chief Engi*eers of cona- ac$ral eases brought to tight, even though €o$trt$f,etr-
mands, particularly those .*'hich are debatable" The sial, strouid "be ineluded afeer diss:rssi*n wigh tke
li-
views of cornmand Hqrs shouid als<l be obtai*ed on administrative auttrorities, and an agreed opinien on
F
the points on which the ioeatr engineer ar:thbritics each such ease sh*uld be reeorded or the difficrexrees
i
and the C.D.,4. disagree.' TFee report should be of opinion eXearly stated.
i
I

!
I

$'

59

l0--3/ccDA/ND/g2
 E

APPENTjNX 5

PfiWflR.* $F C{}ruTRfiL}-ER SF'AhFE}{CE ACCOUNTS

iJ.lore: This Appendix does not deal with the aclministrati"r'e powers of the CsDA which wilt be
found in o{fise
hlanual Part [).

PART T 5. Th.e Conhollers of Defe*ee Aceo'-rnts have

been delegated ponvers hy the Government of {ndia
Fowers of snnetiomimg expemditune in the Ministry of Finance (Defence) vide their }etter
i. Ttre CDA may sanc{isn expenditure or advan'
no. 13{i?4lAT Ceord dated tr3-tr1-59 read wittrr their
ces cf public money irn those cases only in whieh he no. 130?4/AT Coord dt. i8-7-72 and corrigendurr of
e:yeR no. dt. 25-11'?2 (reprodueed belor*) to qraive
is authorised to do so by (a) any eod€s or teguiations
procedurallnofl:f*laneial objection whietr do not
issued 'ny or w"ith the apprnrnl of Gcvernment of
lndia r:r (b) any order of the Government lsying inv*lve any 'monetary va!:le or toss eo the Gorrcrn'
doqlrr a scaie or rrraximum seale of expenditnre ar (c,!
ment without refelence eo local administrative
authorities subject to the ceindi.ticns traid dcwn in the
these ruies"
GoverRment letter.
2. The CIIA is empowered co saucti** expendi-
ture on contingent charges and n-uisaella$eous expe$- 'oGcverrn$aecrt of Indle in the &timistry of Fimaslscs
dit$re as F{ead of Departrnent rnnder nrle 1Si3} of ehe (Defe*ce) 130?4lAT Caord dated 13'91-59
Eef€er cro
Delegation of Finaneial Fowers Rr:tres" l9?8, subject eddressed 6q'the CGSA sm the sub!*et of speedy set
m t?re provisions coni"ai*ed in scheeluie V (and {iecftent of audit obi*eti,ons'o
Annexure thereunder) and sctrredule Vf thercof as
anrended fiom tirn* to time. 1. I am directed to refer to your U.S. Ido. 13#741
AT C-o*rd datett 22-1&59 and to eonvey the sa$ction
3. powers cf rrys'ite off"-The CDA nlay sanction 6f tne Fr*sirJent eo the delegation to the eon&cllers
write clff cf the foilowi:lg losses: cf D*f*ne:e Aecounts of powers to waive procedurall
(i) Irresnverabtre losses of stoq.es or public 'nq:xr-finaneia! objecticns i"e" those which do clot
rnoney (irreludirrg loss of :itamps).....'.. invclve any monetary* vatru* of loss to Gcivernlnen{
Rs. l,t)001. rvithornt referenec to the local adrninistrative
authoides provided the controll€rs at€.satisfied that
(ii) Lleticiencies and appreciation in the value cf
the o"ojecticns are petfy and do not disclose any
stores includir.g the s€ock and olher acceunts inherens dcfeet of procedure or persistent irrep'
Rs. i,0CI0/.
lariry.
A record of such sanetions wi"ii be kept and rnade
ar-ailable fcrr inspecEion. 2. A"ny subsidiary isrsffr:etictls considered
fier:essary may be issued bY You.
PAR.T iI
3. Tteec orders wiil have affect fronn the 2Eth of
,{rudit Elowers Mareh 1959.
,'
4. In order tc av*id unneeessaf,y tiure anei labocE *oGever$rne$t of fudie" ftdinistry of Finance (Depart-
on cases of simple and rlnimpc'r'tant character the rnent of flxpendituae) @efe*ee Sivision) l{ew Deihi
Controllers have been detregateel pc'ffer$ by che {etter na. 13S?4lA?' Coord d$. I'S'7'7?".
Governtnent of India in the Mirristry of Defenee
{Finance; to write off amounte not exe*eding Rs' 2SS ! am directed to refer "0o ycur 11"G. Note no' 130?41
in caeh ease in xes$ect af DAD perscnnel 'phase BaY {it. 14-9'?i and tc eonl'ey the sanctioo of
AT focrc!.
bills are audited by tfuecr in eases where *xp*nditure cf powers v€sted i:l
rh* Fresidcn8 to the enharecesr,ent
under cbjeetior: has, fcr any reasoil" beenrn'e
irreccrr-erabie. offieers cf the Defence Aecounts *epartment under

tt,
 /AT}PIjND{X

Rulc l7? of thc Finartcial R.egulalions, part I (tr983

Rule in the Existing Enhanced
cdition) to thc cxlcnt intiic;ttcd bclo-'v : p0wers p0wers:
liRanclal regulatlons
Rs. Rs.
z
Kulc ln llic i:,xrsitng btlnancecl
firranciirl rcgulations powcrs frowe rs: DC n A,/AC DA trolding group iOsl r 5s/
Rs. Rs. or
t charge area
Accc-;nts Office AC.E .Al'4"$. i0l sCI/
'"'{/
Rulc i77(i) F.R..FI i 5.*.{A)1A4f}

r25l "r€n/
C,D.A.
.'T. CT}A l00l No change The powers as rnention*d *bove'*'itl be exereisetl
"1<l
DCDA/A(IDA holding grouP s$/ '*y the C*ntrollers anei lireir of{icers riealing with
chargc rlr arca fund accoilnts for waiving of objectiors pertaining to
Account.s O llice A"C.D"A./A.O- 25/ No change nGn reeo!*edyy'cv-erpaynnent cf fund balances provided
so (A) AAO 1{}/ No ehangc sucil nern resoveriesloverpayrnents are not due tc *ny
R.llLE 177 (Ii) F"R.PT.I nlistake in accnunting but represent overpaym"eRts
c.D.A. 250/ 500/ established as irreccverabie for any other reasonsi"
J.C.D.A. 150i 2A0/
l{ote: CI}A (ORS) NORT}I Meerut will exercilse
DCDAIACDA holding grouP l00i 150/
ihe pewers of CtrA {FUI'{DS}.
chargc or arca
Accounts Olfice A"C.D.A./A.C. 25/ sa/
F.F". Part I wilt ire arnended in due course'
s.o.(A)/AAO 2sl
R.UI-E 177 (III) F.R"pT.I
"'Copy of Go"rt- of india, Min. of Fin" (Deptt' .o'['
c.u.A z,a/ 500/ Exptfr") {Def. Divisitrn} }'0ew Delhi Corrs" }ilo. l3{}ll{fl
1501
nnn/ ,qF Cc"ord dated ?$11-?? addressed m the Financicrtr
J.C.D.A.
Ae$viser Defence Service, New Delhi"

ri

-t
 CONCORDANCE

Showing Para by Para where provisions of Defenee Audit Cade (19?2 E{fid;n} have besn incorporated in
Defence Audit e*de {199? Editicn).

Paraqin 1972 Corresponding RemArks Paras, in 1972 Comesp*nding Remarks

s Edition Parasin 1992 Edition Paras in tr992
Edition h.{ltti0n

I 43 43
* I
44
2 2 44
3 J 45 Blank 45 Biank
46 Blar:.k -{5 Bi*nk
4 Blhnk 4 Biank
5 5 47 4t
6 48 4E
6
'l 7 +2 49
I Blank 8 Blank 50 50
-.
5t ;"
I I 51 Elank l'lanF"
l0 l0 52 Blank 52 Etrank
1l Biank 53 s3
II
54 54
l2 Blank 12 Blank
13 Blank s5 55
13 Blank
14 Blank 56 36
14 Blank
15 57 5?
15
l6 58 58
16 '59
Lt \1 59
l8 18 60 Blank 60- Elank
l9 19 61 Blanlt $i Elank
20 Blank 20 Blank 62 si
2l 63 63
2T
22 Bla.nk 22 Biank &4 &
23 23. 65 Blank 65 Elank
24 56 oo
24
?5 25 67 Blaak 6? tsla*k
26 s8 68
LV
21 27 69 Elank 69 Elank
28 28 7S Blank ?0 Blank
29 ?1 Biank ?1. tslsnk
1',)
30 30
13 I3
3l Blank 31 Blank
32 Blank 74 74
32 Blank ne
33 33 /-)
34 34 x6 16
35 35 17 77
t^ ?E ?8
36 36
3? Btrank 37 Blank 79 79
38 38 80 to 81 Siank EOr to 8l Blaak
39 39 82 8? Elank
4$ 40 XJ 83
4tr B1*nk 41 Blank 84 .84
.+r- 42 85 85
 C ON CORI) AN CE- Corrrrl.

Parasin 1972 Corresponding Remarks Paras in 1972 Corre sponeiing Rernarks

tdrtlon Paras in 1992 Eclition Paras in 1992
Edition Edition
1Aa
86 86 tJt lJ r
f 81 87 i38 138
88 88 139 to l40Blank 139 to 140 Blank
89 Blank 89 Blank 141 i41
.* 90 90 142 142
91 91 143 143
92 92 144 144
: 93 93 145 145
i
94 94 146 146
I
95 95 147 to i48 Blank 14? to 148 Blank
i 96 95 149 149
9? to 98 Blank . 91 ta 98 Blank 1sCI 150
99 99 151 l5l
100 100 152 to 153 Blank 152 to 153 Elank
101 101 154 154
t02 r02 155 155
103 103 156 Blank 156 Blank
104 Blank 104 Blank t5'7 157
105 105 158 158
106 106 159 159
10? to't 160 Blank t6C Blank
108 1no
rwo i61 161
109. 109 762 162
110 110 163 163
lll to 112 Blank 11i to i12 tslank 164 t&
113 113 165 to 167 Blank 165 to 167 Blank
114 tu)
114 (b) J
I 114
168
169
168
169
ll5 1i5 1?0 Blank 1?0 Elank
141
i16 to l1? Blank 116 to 11? tslank 1t I 171
ll8 11E 172 172
119 119 173 to 180 Blank 173 .to 180 Elank
120 na 181 181
12t 121 182 182
122 122 183 183 t

123 New Para tzJ 184 184

\24 t24 194
185
125 r25 r85 186
kr' t26 126 l6l 187
127 to 128 Blank 127 ta 123 Blank i88 to i90 Blank t88 ro i90 Eiank
129 1?q i91 191
130 Blank 130 Blank 192 i92
131 i31 193 193
t32 132 194 i94
133 133 i95 195
134 to 135 Blank 134 to 135 Blank 196 to 198 Blank 195 to 198 tslank
136 136 199 1SS

73
 -______---

CONCORDANCE-Canrd"

Faras in 1972 Corresponding Remarks Paras in 1972 Corresponding Remarks

Edition Patas in 1992 Edition Paras in 1992
Edition .E drtlon

280 200 255 255

256 256
fl 201 201 Blank
251 257
202 to 203 Blank 202 tn 2.03 Blank
258 258
2t4 204
259 Blank 259 Blank
205 205
260 26CI
246 206 26r 26r
20? Blank 207 Blank ?s2 262
208 208 263 to 264 Blank 263 to 264 Blank
209 209 265 265
2i0 210 266 266
2tr1 Elank 211 Blank 267 Blank 26? Blank
212 ta 2i4 Blank 212 to 214 Blank 268 268
215 to 215 Blank 215 to 216 Blank 269 269
Tt'l Lt'l 210 270
2!8 218
nt 211
2t9 2r9
n2 n2
n3 to214 Blank 273 to 274 Blank
220 Blank 220 Blank 215 2',15
22r 22t n6 276
222 Blank 222 Blank 277 277
223 223 n8 278
224 Blank 224 Blank n9 to 280 tslank 279 to 280 Blank
225 225 281 281
?26 226 282 282
227 227 283 283
228 ta 230 Blank 228 to 230 Blank 284 284
285 Blank 285 Blank
231 231
286 286
232 232
281 287
233 233 288 2q8
234 234 289 289
23s 235 290 t0 291 Blank 290 to 291 Blank
236 236 292 292
237 ta 238 Blank 231 to 238 Blank 293 293
239 239 294 294
240 24A 295 295
241 Blank 241 Blank 296 296
297
242 a2 29',1
298 298
243 a3 299 to 300 Blank 299 to 300 Blank
244 244 301 301
d 245 Blank 245 Blank 342 302
246 246 303 Blank 303 Blank
247 247 304 304
248 305 305
248
306 306
249 New para 249 '307 307
25S New para 250 308 to 309 Blank 308 to 309 Blank
251 to 252 Blank 251 to 252 Blank 310 310
253 253 3ii 311
254 Blank 254 Blank 3t2 312

74
 CONCORDANCE-Contd

Paras in 19?? eorresponding Remarks Parasin 1972 Correspeinding Remarks

EOIUOn Paras;n 1992 Edition Paras in 1992
Edition Edition

313 361 361

313
362 tstrank 352 New para
314 Blank 314 Blank
31s 315
:5i Btank 363 New para
i 354 364
i t 3i6 316
365 365
i 317 377 366 366.
aro
318 Jl6 36X' 361
t 319 Blank 319 Blank 368 Blank 368 Blank
32{3 324 369 369
2.r'l
JLT 370 374
322 Blank 322 Blank 371 31J
323 323 372 3ii2
324 to 3ZS Blank 3?3 tslank 373 Blpni<
324 to 325 Biank
326 374 174
326
315 315
321 32',1
376 Elank. 376 Blank
328 3?8
t t.t 3X7
)Lt 329 378 378
339 330 379 3',t9
J-X I JJ.I 380 to 382 Blank 380 to 382 Blank
332 332 383 383
333 333 38,4 3s4
334 Btrank 334 Blank 385'Blank 385 Blank
335 33s 386 386
336 387 387,
336
388 388,
33V JJI
389 Blank 389 Blank
338 JJ6
390 390
JJY 33q 391 391
34S. 340 392 392
341 Elank 341 Blank 393 393
.v2 342 394 Blank 394 Blank
343 Blaqii 343 Blank 395 39s
w 344 395
397 to 398 Blank
396
397 to 398 tslank
M5 345
346'Tlark 346 Blank 399 399
?43 347 400 40Q
401 401
348 348
402 .4Q2
ylg 349
403' 401
350 350 444
404
351 Blank 35i Blank 405 405
352 3s2 406' 405
353 353 407 Blank 407 Blank
354 354 408 408
355 355 409. 40e
356 Blank 356 tsiank 410 410
357 357 411 411
35t 358 412 4L2
I 359 359 4i3 413
360 360 414 to 415 Elank 414 to 415 Blank
I

7S
 -______--
f. \

C0NC0RBAldeE*eomed.

Faras in l9?? Corresponding Remarks Paras im 19?2 Corresponding

Edition Parap in i992 h,drtlon Faras in 1992
Edition Edition

416 416 453 463

qrt 4t7 454 464
4t8 418 465 465
466 466
419 419
467 46',1
420 428
468 469
421 lZL 469 469
,422 422 470 Blank 470'Blank
423 423 471 Bnank 47t Btank
}F1A
qL+ 424 472 4','12
425 ' 425 4V3 473
Ane
a4u 414
42() 474
427 427 415 4',t5
428 428 4?6 476
429 429 4?? 4t7
Blank 4',1& 4?E
430 430 Blank
4',19 479
43i Blank 431 Blank
480 480
432 432.
461 Slank 48i Biank
433 433 482 482
434 434 4E3 483
435 435 484 484
436 436 4E5 to r*88 485 ta 488
1+3 ! 431 489 489
438 438 49r) 4gCI
439 439 491 to 492 tstrank 491 to 492 Blank
dl40 440 493 493
494 494
44i 41
495 495
442 Blank 4zl2 Biank ,f96 496
&3 Blank 443 Blank 497 49',1
44 447) 498 498
M5 448 i 499 499
446 44e I 500 500
441 450 I 5&1 5Si
448 45r I 502 to 5t)5 Btranlc 502 to 505 Blank
M9 452 |New Paras HeL {,td. sd6 506
4_{0 453 sCI7 507
|
451 4s4 5S8 50s
|
5S9 509
452 4"ss I
51S 510
I 453 4s6J 51X Blank Sitr Biank
454 44 512 5X2
455 45 5i3 s13
456 46 514 514
457 457
515 s15
5X6 516
458 Blank 458 New para 5X.? 51?"
459 tslank 459 New para 518 518
46S 464 5i9 5i9
46i 461 5zCI s20
462 462 521 to 5?2 Blank 52t to 522 Blank

'16
 CONCORD ANCE-Concld.

Paras in 1972 Corresponding Remarks Paras in 19?2 Corresponding Remarks

Edrtron Paras in 1992 Edition Paras in 1992
Edition Edition

523 558 558

523
s24 524 559 5fe
szs 560 s60
s25
526 526 561 to 562 Blank 561 to 562 Blank
s63 563
527 52',7

528 528 564 564 Blank

529 to 531 Blank 56s 565 Blank
529 to 53l Blank
532 532 566 566 Blank
56',7 s6'1
s33 533
534 s68 568
534
53s 569 s69
535
536 Blank 536 Blank 5',70 5?0 Blank
537 Blank 571 s'71
537
538 53$ s72 5',72

539 5',73 513

539
5',14 5',74
540 540
'5',7
541 5 s75
541
576 5'16
92 s4?.
577
93 543 57'7

544 578 578

544
545 5',19 5'19
545
g6 546 580 580
581 to 582 Blaqk 581 to 582 Blank
5qt 54'.7,
548 583 583
548
549 549 584 584
550 550 s85 585
551 Blank 551 Blank s86 586
552 s52 587 s87
553 588 588
553
554 589 589
554
555 555 590 590
556 to 557 Blank 556 New Para 591 591
557 Blank 592 592

77

ll-:lccoa qnl z
 \

TNDEX

Pa-ras . Paras

.A Statemenl showing variation between the Ycar's

original estimate and actr.lal final cost in res-
ACCOUNTS pect of works completed during the year 56E

Air Force 416 Statement showing variatir:n between the year's

,dppropriation 532 original grant and expenditure in respect of
l

t Field. Cashiers 347 worts carned out during the year 567
{t Approprialion A,ct 84
Fund Accounls 342
t
Imprest Holders 3-59
Invoices and packing 399 AUDIT
il{ilitary Treasury Chests 37',I
Navy 460 Against Propricty 38
Rccruiting Ofhcers 369 Against provision of funds 83
Remount Depots 364 Scrutiny of sancticlns and orders z3
Appropriation 90
ADVANCES Extent of expenditure 42
General Principles and rules l5
For p{ymcnt to industrial employees 223
Main object of expenditure 4t
Recovcries of advances made in [ndia t05 Of Acquittanee Roils 361
I
To servic.e'personnel by Indian Representa- Of Army List 159
tive abroad 1t3 Of Bills and vouchers 52
Of bills for hired transport 315
AtR FORCE ACCOUNTS Of Bills for supplies 306
Audit of claitns prefcrred by H.A.L 447
Of Cash Account Navy 466

Audit of i.R.L.As of d-F. personnel 432

Of Cash Account Remount Depots 364
Final Crcdit Balances 438
Of charges for ground rent and land
compensation 275
'Public Fund Account 416
Of commission and warrant list and daily lists
Suspense Accounts 437
Navy : 483
CoRservancy and Hot weather establishment
AIN FREIGTiT BILLS
ch arges 276
Air Force Stores 429 Of contingent and Miscellaneous charges 269
Air Freight India ovcrseas 247 Of Contraets 304
Air"Freight within India iimits
' 246 Of Expenditure 43
Amendnent and interpretation of Rules 68 Of Field cashier Aceounts 353
,{nnual Revicn' of MSS Expenditurc 538 0f Fund ,A.ccounts 342
Appx 4 Conpensatory allowances and Honorarium 2t8
0f Imprest Holders Aecounts 360
. APPR.OPRI.ATION ACCOUNTS Of Navy list 484
\ Of IRLAs of A.F. personnel 432
C.G.D..A.'s Certificate on thc Accounts of 0f iRLAs Naval personnel 4't8
the Dcfence Serviccs 540 Of IRLAs of JCOs, ORs and N.Cs. (E) 169
Commercial Appendix to the Appropriation Of trRLAs of Officers of Army 149
Aecaunts 572 Of MES expenditure 326
Exhibition of infructuous expenditure 563 Of Military Treasury Chest Accounts 378
a Exhibition of Losses 552 Of Pay bills of civilian Gazetted officers l9l
Financial Sl,ock taking of bie M.E.S. Pro- Of Territorial Army units 225
jeel 569 Of Pay bills of civilian Non Gazetted Estt. 209
For Ccrtain Revenue and Debt heads 577 0f pension claims 386
Losses of Stores, over issues of stores ete. 558 0f public fund accou-nts Air Force 421
Prcparation and submission 532 Of Railway Warrants, Credit Notes and Con-
Statement shorving cases of non m.aintenancc cession vouchers 253
or irregular maintcnance of aecounts regula- Of Receipts and Recoveries Gineral 99
rised by Govt. of India during the year 570 Of sanctions to expenditure 33
 1

INDEX-Contd.
Paras Paras
A-Contd. For write off Appi'3
For telephones Appx
Of Sea Passages 260 In audit
3

Of Sea passages allowances claims '239 Appx 3

* Of Travelling allowances claims 234 D

Responsibility of Controller 2l
Result of audit and financial irregularities DIRECTOR OF AUDIT DET'ENCE SERVICES
506
0 Statutory audit by DADS 5 Audit sanctions, codes and ReguJations
Audit Report, Defence services 583 etc 5
Action on the report of public Accounls Statutory Audit by the 5
committed 592
Draft paragraph 587 E
Erroneous payments how treatcd in audit st2
C

Cannons of financial propriefy F

FIELD CASHIER'S ACCOUNTS
Civilian Gazetted 0fficers
Audit of 353
Pay bills audit l9t Change of Field cashier 358
Service Books 199
Function of Field cashier 347
Leave Accounts Specimen signatfire 352
204
Scale Audit surprise check of cash balance 357
205
Finanacial Advice 9
Financial Irregularities 514
NON GAZf,TTED ESTABLISHMENT Freight charges-Imported stores 408
Audit of Pay bills 209 Fund Accounts Audit of 342
Leavc Account Hindustan Aeronautics Ltd. claim 447
217
Prcparation and disposal of Pay bills 208
Pay bills of Territorial Army units personnel H
225
Comptroller and Auditor General of India 5 Hired Land Trrnsport
Charges for ground rent 'and compensation
Audit of Adjustmcnt of expcnditure on 323
Audit of bills 3\6
Payment of Contracior's bills 320
CORRf,SPONDENCE
Addressing.of-on question of interpretation of History of service civilirn
Rules ctc to CGDA 9 Gazetted officcrs

C0NTRACT (OR) (S) I

Audit of Comparativc statement of 304 IMPON.TED STORES
Ienders 301
Deviation from Claims procedure 409
295
F"";;;r;;i lrinciptcs for entcring Freight charges 40E
into 293
Invoicc and p4cking Account
Gencral Rules 399
292 Imprest Holders Accounts.audit of
Payment of contractors bills 360
310
Contributions towards leave allowanccs and INCOME TAX
Yi pensions of officers and olheis lent to foieign
service and passage l3l Annual Statemcnts 120, t2t
F
Rebaie of t26
i> CONTROLLER GENERAL OF DEFENCE AC. Recoveries of ll8
) Interpretation of Rules
COUNTS 6E
Interpretaiion of Fund rules 344
Powers of: Introductory I
As Head of the Department Appx 3
As Local Govt. Appr 3 I.R.L.As
For Appropriation and re-appropriation Appx 5
For fees and honoraria Appx 3 Audit of Air Forcc pcrsonncl 432
For sanction expenditure .A,ppx 3 Audit of Navy personnel 475

79
rT
I

II\DEX-Contd.
[.3
Paras Paras

I-Contd. PENSTON(S)
Allocation of-among differcnt Govts. 395
Audit of JCOs, ORs and NCs (E) 169
Audit of claims 383
Audit of Officers of thc Army 149
Commutation of 390
Navy personnel 4"t2

L PETTY RECUR,RING EXPINDITUNE

s LEAVf, - sanctioned by GOC.in.C Command A,rca

etc. 2El
, Account-Civilian Gazctted officers 204 Piovisional and adinterim psyments 53

Account-Non-Gazettcd Civilian Establish-

mcnt 217 PUBLIC FUND ACCOUNTS
Account procedure l5'l
Salary paynrent of iu India Appx 2 Air Force chect of 421
I
I
Salary paymert out of india Appx'2
M
MILITARY f,NGINEER SERVICES IXPENDITURE n'AILWAV

Audit in
Controller]s office 335 Claims for under/ovcr drawal of charges
Locai Audil by RAos 338 bclween Defencc and 255
Prcliminary Audit by AA0 (MES) 327 Warrants, credit notes and concession vouchers
Scopc of Audit 326 audit of 253
Military Treasury Chest Accounts 379
Major Financial Accounting Irregularitics RECORD OT SENVICE
Report on 523
Navy Oflicers . 489

N
Instruciion for maintcnancc of officcrr . Appx 1

NAVY ACCOUNTS RECRUITING OFFICERS

Audit of Authori Accounts. of-of Gorkhas 374

lcdgcrs 475 Accounts of-other than Gorkhas 369
Audit of disburse 476 Recruit to posts and services 221
Cash Accounts 460
Cash Accounts 468 RNCOVENIES
Commission and 483
For stores issued-on payment and for services
Indian Navy list 484
rendered 136
Pay accounts o 490
Of advances paid in India 105
Pay Accounts of 472
Of advances paid to service personnel by
Scale Audit 482
! Indian representative abroad 113
d Chcck of U.K. Of Hespital Stoppages : . 137
Accounts Of Licencc Fees 138
Claims on account Of Income Tax ll8
498
damaged Of value of Horses purchased by high
Non-recurring payments bY the Commander officials 129
in Chief . 282
REGISTER
!
G
P
I -{- Of bills 62
t PAY ACCOUNTS Of sanctions of petty recurrihg expenditure by
l
GOsC-in-C Command Area etc. 281
r 3 .Army officers 141
Army officer serving .x-India 161
I

REMOUNT DEPOTS
AirForce personnei 432
JCOs, ORs, and NCs(E) 4'12 Accounts of District Remount Officers 366
Pay bills of civilian personnel ol lerntonal Audit of cash accounts 36s
Army units 225 Reports on defalcation and other losses 513

1
80
 INDEX-Concld.
'Faras .
Paras
R*Contd" STORES IMPORTED
RESULT OF AUNM ,{Nf} F[N,{NC[AL
IRREGULARTTIES Ciaims procedure 409
l Freight charges

t
i-
.<
M.FA.I. Report
lmportant linancial irreguiarities
5t3
5 i,f trnvoices anci packing accounts
408
399

Sca passages 260 T

SCALE .{UDIT
Check over elassificatiern and quotas
TENDERS FOI CONTRACT
Civilians
159 \ j

205 Comparative statement of

Navy officers/sailo rs' 301
482 Travelling allowaace claims of
Officers of tne-ai"ry t54 231
Specimen signatures 66
Record of-of .A.eeour,ts CllYieers/trmprest U li
holders of A.F.
420
Record of ficld cashier 352 Allowance paymeht of

* lr

I
!
t
i
*
I

tr

81

F ll-*rEuorlrm