Border Roads Organisation
Technical Instruction No. 21
BUDGET & ACCOUNTING IN BROTechnical Instruction No. 21
BUDGET AND ACCOUNTING IN THE BRO
INTRODUCTION
it Under Article 112 of the Constitution, a statement of
estimated receipts and expenditure of the Government of India for an
ensuing financial year entitled as the “Annual Financial Statement” is
commonly known as the Budget.
12 The definition of the Budget is given below:-
“An Annual Financial Statement of estimated receipts and
expenditure*of the Government of India for an ensuing
financial, year”
1.3 This Annual Financial Statement divides the receipts and
expenditure of the Government into three parts, in which Government
accounts are maintained. These are :-
(a) Consolidated Fund of India
(b) Contingency Fund
(c) Public Fund.
1.4 A pictorial representation of the inflows and outflows, the
constituents which form the receipts and expenditure from each of
these funds is given at Appendix ‘A’. The estimate of expenditure from
the Consolidated Fund included in the Annual Financial Statement or
in other words the Annual Budget and required to be voted by the Lok
Sabha during the Budget session of the Parliament, are submitted in
the form of Demands for Grants by various Ministries, in pursuance to
Article 113(2) of the Constitution. Generally, one Demand for Grant is
presented in respect of each Ministry. However, larger Ministries like
the Ministry of Defence present more than one Demand for Grant.
15 The budgetary projections of the Border Roads Organisation
are included by the Ministry of Surface Transport through Demands
for Grants, though functional control is with the Border Roads
Development Boards(BRDB), with the Raksha Mantri as the Chairman
of the BRDB.
1.6 The Border Roads Organisation executes multifarious works,
ranging from road construction and maintenance, to the construction
of permanent bridges, airfields, buildings and related civilconstruction activities for the Defence Services as General Staff
Works, as well as for the Central/State Government and Semi-
Government Agencies as Agency/Deposit works, duly supported by
viable budgetary allocations in each financial year.
AIM
17 For the well being of any Organisation, efficient budgetary
control and effective resource management are vital. This Technical
Instruction aims at formalising comprehensive instructions and
procedures towards achieving :-
(a) Effective planning and budgetary control at various levels of
execution, while at the same time, making the Organisation
target oriented and cost conscious.
(b) Effectively streamlining the accounting systems and
procedures to meet the requirements and needs of the BRO.
1.8 Finance is a basic and omnipresent resource. The optimal
utilisation of finance is achieved if the following objectives are
ensured :-
(a) Value for Money
(b) Financial Propriety
(c) Economy of Effort
GENERAL
1.9 There are three types of works executed by the BRO:-
(a) General Staff(GS) Works - These are executed for the
Army, as planned and projected by the Ministry of
Defence(MOD), through the Military Operations Directorate
(MO Dte) for the Army
(b) Agency Works - These are executed for the Ministry of
Surface Transport, the MOD (Airforce & Navy), Army (OP
Works) other Central Government Ministries and Central
Government Agencies like the North Eastern Council.
(c) Deposit Works - These are executed for the State
Government, Public Sector Undertakings and Government and
Semi-Government Organisations and autonomous bodies.1.10. A flow diagram indicating the process of planning and
progressing a budget proposal till allotment for GS and Agency Works
and till deposition of funds for Deposit Works is given at Appendix B’.
PLANNING AND PROGRESSING BUDGET ESTIMATE “PROPOSALS
1.11. Budget Estimate proposals for allocation and subsequent
expenditure in the ensuing year are prepared based on targets
assigned by the Border Roads Development Board to the Border Roads
Organisation. These targets are governed by :-
(a) The General Staff Perspective Plan duly converted to an
Annual Plan for GS Works.
(b) Indication of availability of funds from Ministries and
Central Government Agencies for Agency works entrusting the
works to the BRO.
(c) Funds deposited for Deposit Works, a pre-requisite before
commencement.
1.12. Works Plan - Targets for GS Works, Agency and Deposit works
are as reflected in an Annual Works Plan approved by the BRDB. This
is carved out of a Long Term Roll On Works Programme for GS and
Agency works, generally _covering five years. Approval in principle for
inclusion in the BRDB programme is accorded by the BRDB
Secretariat, as per feasibility in the Annual Works Plan, considering
the overall potential of the resources of the BRO.
Flow of Funds
1.13 GS Works - For GS Works, funds are provided by the Ministry of
Surface Transport from Non-Plan Grants based on projections by the
Ministry of Defence. The budgetary proposals are projected to the
BRDB by the DGBR, through the CDA(BR), as the Integrated Financial
Advisor (IFA) BR, on the basis of an approved Annual Works Plan for a
financial year. These fund projections are examined by the Financial
Advisor (Defence Services), as the ex-officio financial adviser to the
BRDB and forwarded to the Department of Expenditure, Ministry of
Finance. On approval by the Department of Expenditure, Ministry of
Finance, the budgetary proposals are returned to the Ministry of
Surface Transport for inclusion in their Demands for Grants for the
BRDB.1.14 Agency Works On Behalf of MOST - In the case of Agency works
undertaken by the BRO, on behalf of the Ministry of Surface Transport,
the proposed budgetary proposals are progressed by the DGBR to the
Ministry of Surface Transport through the BRDB and CDA(BR), as the
IFA(BR). These are then taken up by MOST with the Department of
Expenditure, Ministry of Finance. On approval by the Department of
Expenditure, Ministry of Finance, these proposals are returned to
MOST for inclusion in their Demands for Grants. The fund allocation is
from Plan Grants.
1.15 Other Agency Works - For Agency works undertaken for other
Ministries eg. Ministry of External Affairs, Ministry of Defence(Air
Force & Navy), Army (OP Works), Ministry of Home Affairs, the
budgetary projections are progressed by the respective Ministries with
the Ministry of Finance and included in their Demands for Grant, on
approval by the Department of Expenditure, Ministry of Finance. The
fund allocation is from Non Plan Grants for the MOD and Plan Grants
for other Agencies.
1.16 Deposit Works - Works under taken by the BRO, on behalf of the
State Government and other Government and Semi-Government
departments and autonomous bodies eg. North Eastern Engineering
Power Corporation, North Eastern Council Bharat Coke and Coal Ltd.
etc are approved for execution by the BRDB based on the budgetary
allocation, through deposits, in the form of cheques/drafts made
payable to the CDA (BR) by the department. The deposition of funds in
full or in installments is a pre-requisite, before commencement of
execution of work.
1.17. This requirement of funds for the Border Roads Organisation is
met from three sources :-
(a) Budget Estimates of the Ministry of Surface Transport
under Demands for Grants for General Staff Works for the
Army.
(b) Allotments received from different Ministries of the Central
Government and Central Government agencies for Agency
works, undertaken on their behalf.
(c) Deposits received in the form of cheques/drafts for deposit
works proposed to be executed for the State Government andother Government and Semi-Government departments and
autonomous bodies.
1.18 Equipment Procurement Plan - On the basis of an indicative
budget and the felt need for procurement of plant and equipment
based on specific targets and wastages, a definite and detailed
Annual Equipment Procurement Plan is carved out of a Long Time
Equipment Procurement Plan. This is projected in terms of costs, as a
budgetary proposal for GS/Agency works by MOST to the Department of
Finance, Ministry of Finance, through the FADS as part of the overall
budgetary proposal under the Budget Estimates.
1.19 A flow diagram for the approval of an equipment procurement
plan leading to procurement is given at Appendix ‘C’.
Allocation of Funds
1.20 Based on the projected Budget Estimate by MOST and other
Ministries for Grants for GS ahd Agency Works and the funds
deposited by other departments/agencies, RE/BE discussions are
held with Projects at HQ DGBR during Dec/Jan of the current
financial year. Targets for the ensuing financial year and the
subsequent two consecutive financial years are planned and fixed for
each Project. On finalisation of the RE/BE discussions, the physical
targets and budgetary support Major Head/Detailed Head wise and
State wise are intimated to the Projects.
1.21 On the voting and passing by the Parliament of the Budget
Estimate projected by various Ministries under their Demands of
Grants and its conversion as an Appropriation Act, on consent by the
President of India, bulk allotment of funds are received in the form of
Budget Estimate (BE) allocation from the Ministries. In addition to
these allotments, the BRO also gets cheques/drafts for the execution
of deposit works for the State Government and other Government and
semi-government departments and autonomous bodies. These
allocations are received under different Major Heads of Account. The
classification and codification of allocation of funds is essential for
effective budgetary control and monitoring of expenditure.
1,22. The codification prescribed for Major Heads is a 4- digit code.
The Major Code Heads under which funds are received and
expenditure incurred are : -Classification
of Works
() GS
Works
Major Head
Secretariat and
Economic Services
(Revenue)
Major Head 3451
(General Administration)
GS _Works(Revenue
(Non Plan}
Major Head 3601
GS _Works(Capital)
(Non Plan)
Major Head 5054
Scope of work covered
DGBR & Sectt BRDB
Establishment
Major Head 3054 Roads &
Bridges of Strategic Border
Roads (Expdr on Minor wks,
Maintenance of all NHs
including Re-surfacing under
BRDB, FDRs on NHs No 39,44,
52, S2A, 53, 54, 54A, 54B, 54A,
58, 1B, 62, Construction /
Maint of Roads in Bhutan and
Payment of BCA)
Grant in Aid to State Govt
(Roads)
and Bridges of GS Projection,
Maintenance of GS Road
including Resurfacing,
Security Cover, Air lift
charges including for China
Study Group(CSG) Roads).
Capital Outlay on Roads &
Bridges
(Original and FDR works on
NHs Nos 1A,22,31A, Sanc-
tioned Accn at Static stations,
Ground Establishment of CE
(P)/Static Formations, Cat ‘A’
Stores/Spares, Cat ‘A’ Plant,
Vehs and Eqpt Centrally
Purchased including for SnowClearance and CSG Roads,
Clothing and Signal Stores,
DAD/APS Establishment and
Centrally Adjusted Items ie.
Printing of Forms and
Stationery.
Note - The Static Formations are the LO DGBR; Base Workshops;
Transit Camps; Store Divisions; GREF Centre and Base Depots.
(ii) Agency
Works
(iii) Deposit
Works
Major Head
Major Head
(Plan)
Major Head
(Plan)
Major Head
(Capital)
Major Head
(Revenue)
Major Head
Major Head
Major Head
Major Head
3605
4552
5054
4076
2076
2077
2078
4055
2055
3054
4047
8444K
Aid to Bhutan/Myanmar
(MEA Wks)
Capital Outlay for NEC
works.
Capital Outlay on Roads and
Bridges (MOST Plan}
All original works except FDRs
on NHs (except NH1A, 22, &
31A)under BRDB
MOD Original Works for
Army, Navy and Air Force
Maintenance Services - Army
Maintenance Services - Navy
Maintenance Services - Air
Force
Works - Indo - Bangladesh
Border Roads (Roads &
Fencing) and Assam Rifles
Indo-Bangladesh Border
Roads (Maintenance)
BSF Roads; Maint of Roads
(Min of Home Affairs -Project
Chetak in Rajasthan only)
Coast Guard Works
Deposit Works for Other
Agencies.1.23 Each Major Code Head is further classified into Sub Major
Heads, Minor Heads/ Detailed Heads, indicating a particular sphere
of activity. For example :-
- Major Head : 3601
- Sub Major Head : 01
- Minor Head : 01.821- Non Plan Grant - Strategic and
Border Roads
- Detailed Head : 02.00.31 - Road Works
: 03.00.31 - Roads Maintenance and
Resurfacing
: 04.00.31 - Security Cover
: 05.00.31 - Air Lift Charges
1.24 Details of Major Heads, Sub Major Heads, Minor Heads and
Detailed Heads - Old and New and the particular sphere of activity
covered under each of these Heads are given at Appx ‘D’.
Cash Assignment
1.25 Based on allotted targets, the Annual Works Plan and the total
funds placed at their disposal for the execution of GS, Agency and
Deposit works, every Chief Engineer Project/ Task Force Commander
initially projects a consolidated month wise demand for a financial
year’s cash assignment, before the commencement of the financial
year. Subsequently, every Chief Engineer Project/TF Commander
places a demand on CDA (BR) in each quarter of the financial year, for
a Cash Assignment. From the total funds, the adjusted expenditure ie
on account of CP Vouchers, deduct recoveries on account of usage
rates, departmental charges, a portion of pay and allowances on
account of G.P.F recovery, CGEGIS recovery and other misc recoveries
are deducted. The net requirement of cash is thus arrived at by the
project. The format to be used to prepare a demand for a Cash
assignment is attached at Appendix ‘E’ Certain guidelines on the
preparation of a Cash assignment are contained in HQ DGBR letter
No.22641/CA/99-2000/DGBR/30/E5B dt 03 Feb 2000. The CDA (BR)
examines the cash requirement with reference to the budget
provisions, seeks the recommendations of DDG (TP), HQ DGBR and in
turn advises the concerned State Banks, on which the CE Project/
Task Force Commander is dependent, to place cash in the Bank at thedisposal of the TF Commander/CE Project, on a monthly basis for each
quarter. This process is repeated for each quarter, taking into
account, the likely cash balance in the bank at the end of the last
quarter.
1.26 Any cash assignment likely to be unspent by the end of the
financial year must be surrendered well an advance. The unspent
amount at the end of the financial year will lapse.
ACCOUNTING PROCEDURE
1.27 For the accounting of an expenditure and budgetary control,
on a particular major sphere of activity, each Major Head, Detailed
Head and Specific nature of expenditure is denoted by a Audit
Character Code Head consisting of nine characters. An example for
the Major Head 3601 - Minor Head 01.821 - Non Plan Grant - Strategic
and Border Roads is given below :-
Major Head 3601 - Grant in Aid to States (GS Works) -
Minor Head 01.821-Non Plan Grant - Strategic and
Border Roads
Detailed Head
02.00.31 Road Works - €0/067/01
03.00.31 Road Maint - 00/067/02
and Resurfacing
04.00.31 Security Cover - 00/067/03
05.00.31 Airlift Charges - 00/067/06
Relevance of the Nine Character Audit Character
Code Heads for ig Exp: Control
1.28 To identify the nature of expenditure for any Job, in the above
character audit code head, two prefix codes have been catered to be
prefixed in each Audit Code Head, replacing “00”. An example is given
below :-
Audit Character Code Head : 60/067/01
(Pertains to MH 3601)
1.29 In the above example containing nine characters, the first two
digits called a prefix denote the nature of expenditure, the fourth, fifth
and sixth digit denote the Major Head and the last two digits denote
the Detailed Head. The third and seventh characters are onlystrokes. In this example, the first two digits ‘60’ denote a specific area
of expenditure ie. POL/Fuel BRO, the fourth, fifth and sixth digits 067’
denote the Major Head 3601 - Grant in Aid to States (GS Works) and
the last two digits ‘01’ indicate the Detailed Head - Road Works. All
expenditure must be booked to the correct nine character Audit
Character Code Head and correct Major/Detailed Head. In this
connection, the instructions contained in DGBR letter No 80696/
DGBR/85/D&S dated 02 Sep 97 are to be adhered to.
1.30 A tabulated list of nine character Audit Character Code Heads
pertaining to various Major Heads/Detailed Heads is attached at
Appendix F’ :-
1.31 A list of category prefixes from 51 to 73 and 99 replacing the
first two digits ‘00’ as per the specific item and nature of expenditure,
generally used in the BRO is placed at Appx ‘G’.
1.32 Deposit Works - Till now all deposit works were accounted for
under the nine character Audit Character Code Head 00/017/05.
This was common for all Deposit works. However, to identify and
facilitate the accounting of the different agencies’ deposits and the
expenditure, a unique six digit unit code system has been evolved by
the CDA(BR) . This has been circulated under CDA (BR) office No BR/
Bud/900-Corr dated 10 Oct 97. An example of this six digit unit code is
given below :-
002007 - Hirak - Maharashtra Government Works
007015 - Swastik - JNV Works
(The first three characters identify the Project i.e. 002 -
Project Hirak, 007 - Project Swastik ; the last three characters
identify the Agency for whom the Deposit work is being undertaken i.e.
007 - Maharashtra Government Works, 015 - JNV Works)
1.33 Deduct Recoveries - Recoveries made from the Jobs executed as
Agency and Deposit Works in the form of usage rates for the utilisation
of vehicles/plant/equipment purchased from the GS Budget, but
utilised in Agency/Depot works ; clothing of GREF personnel deployed
on Agency/Deposit works and Departmental Charges. The allotment
of funds for all works (other than GS) includes the provision of usage
rates. The usage rate and clothing rate applied on this account and
recoverable is based on prescribed rates as approved by the
Government. The recovery on account of Departmental Charges on apercentage basis is also fixed by the Government. However, as per
“policy, Departmental Charges are not recovered from Agency Works
executed for MOST and MOD. These recoveries and other recoveries
on account of auction sale proceeds of Cat ‘A’, BER and obsolete
stores, as well as recoveries from Contractors are compiled to Deduct
Recoveries under MH-5054 (Non Plan) and accounted for as follows as
a minus charge:-
(a) Deduct Head - 00/069/05 - Usage Rate/Clothing/
Departmental Charges/ Recoveries from Contractors
(b) Deduct Head - 00/069/06 - Auction Proceeds.
1.34 Such recoveries as accepted by the Ministry of Finance are
required to be achieved to match the ceiling of the total outlay, as fixed
by the Ministry of Finance.
TYPE OF EXPENDITURES
1.35 There are three types of expenditures, which are detailed
below :-
(a) Cash Expenditure - The expenditure incurred by making
payment, either in cash or though, cheque is treated as cash
expenditure. The following types of expenditure are to be
termed as cash expenditure :-
(i) Payment to GREF Officers/Personnel - Wages/
Allowances / Advances / Final Settlement/
Compensation
(ii) Payment of CPL Wages
(iii) Payment to Contractor
(iv) Payment to Local Supplier
(v) Any other expenditure like Ration Money, Office
Contingency, Hire/Rent charges, Land
Compensation and Payment of Compensation under
the WCA.
(b) Adjusted Expenditure - It is the expenditure which has
been incurred by other Agencies on behalf of the BRO. The
debit for such expenditure is raised by the Agency and the
expenditure is adjusted by a book debit. The following types of
expenditure are termed as adjusted expenditure :-(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
‘(vii
(ix)
Centrally purchased stores like Cement, Bitumen,
POL and Explosive etc through Central Purchase
Vouchers.
Cost of Ration from FSD through Priced Issue
Vouchers.
Pay and Allowances of Service Officers/Personnel
based on Capitation rate fixed by the Army
Headquarters.
MC Notes and CC Notes
Railway Warrants
Hospital Stoppage Rolls
Cost of Medicines received from Armed Forces
Medical Store Stores Depots through priced vouchers.
Airlift charges for air support provided by the Airforce
both for GS and CSG roads.
Departmental Charges - Booked to the works for all
agencies except MOST and MOD and credited against
the Recoveries Head.
(c ) Proforma Expenditure - The proforma expenditure is
booked to both GS and Agency/Deposit works. However, the
GS Budget projections to the Government is less the proforma
expenditure by 10 percent. This monthly expenditure caters for
usage of plant/equipment and clothing based on a rate
approved by the Government and worked out on the basis of the
Capital cost plus the maint/repair cost divided by the laid
down.
METHOD OF BOOKING EXPENDITURE
1.36 The following procedure will be adopted for booking of
expenditure :-
PAY AND ALLOWANCES
(a) Pay and Allowances - Service Personne] -
(i) The expenditure on account of Pay and Allowances of
Service officers/personnel are booked on the basis of
capitation rates notified by the QMG’s Branch, Army
Headquarters and duly concurred by the Ministry ofDefence (Finance) from time to time. This capitation rate
includes :-
(aa) Pay and Allowances
(bb) Outfit Allowances
(cc) Conservancy and Hot Weather*
(dd) Accommodation
(ee) Hospital treatment
(ff) Personnel Clothing and Equipment*
(gg) Training
(hh) Rations*
Gj) Transportation - Duty/LTC
Note - Suitable deductions from the Capitation rate must be
made on the items market with an (*) in case these are being provided
by the BRO.
(ii) The details of Service officers/personnel are
furnished on a monthly strength return to respective
ACDAs/SAOs/Accounts Officers at the Project/TF level
and by CDA(O) to CDA(BR) at the HQ DGBR level.
(iii) This is booked as follows :-
(aa) Task Forces and below - To the Jobs in proportion to
the Physical outputs of Jobs and deployment pattern.
(bb) HQ CE (P)/Static formations - To Ground
Establishment under MH-5054.
(cc) HQ DGBR - To General Establishment under MH-
3451.
(iv) - Credit is afforded by CDA(BR) centrally to the
Defence Services Estimates.
(b) Pay and Allowances - GREF Personnel - Pay and
allowances of GREF Personnel are booked provisionally in the
Jobs as per actual deployment. The final adjustment is done on
receipt of QSA’s for the respective quarter from the PAO GREF.
The adjustment should be for the entire amount of entitlement
and not just actual payment. ~
(c ) FRMO_ Commission - Money order commission of FRMOs
should be adjusted every month, along with pay andallowances, without waiting for the debit. The amount of
FRMOs with MO Commission is reimbursed by the PAO (GREF)
to DAP Nagpur through the RBI on receipt of debit (HQ DGBR
letter No 22603/Gen/DGBR/78/E5 dated 11 May 92 refers). A
flow diagram indicating the method of booking of expenditure
on FRMOs is placed at Appendix ‘H’.
(d) Field Treasury Chest Receipts - The booking of
expenditure in the case of the FTCR is placed at Appendix ‘J’.
{e) Pension Liability
()
(i) The provisional pension liability including gratuity for
6 months only is to be borne in full by the Department to
which the Govt servant permanently belongs. It will not be
paid frem any Job and will be booked to a separate Head of
Account MH-2071, Pension and other relevant benefits
being operated by CDA Pensions, Allahabad. Necessary
debits will be raised by the ACDA/SAO/AOs accordingly.
(ii) Final payment and Final TA/DA on retirement will
be booked to Jobs, if the individual retires from the TF/
Unit. In case the individual retires from the HQ Project/
DGBR, it will be booked to the Ground Establishment/
General Establishment respectively.
(iii) Payment of leave encashment at the time of
retirement/ death/ termination of services is to be shown
separately under the Pension Head and charged to Major
Head 2071 - Pension and Other Retirement Benefits - 01-
Civil-115-Leave Encashment Benefits. Prior to 01 Apr
1999, these benefits were being charged to Salary Head
and booked to Jobs (if deployed in TF/lower formations) or
to Ground Establishment (if deployed in Project HQ/
DGBR/Static formations). (HQ DGBR letter No 22608/
Acct-Proc/DGBR/11/E5B dated 24 Feb 99 refers).
(iv) The same procedure as applicable for leave
encashment will be followed for Family Pension/Death
cum Retirement Gratuity (DCRG).
Leave Salary - The liability on account of leave salary will
be borne by the Department from which the Govt servantproceeds on leave and booked in the same manner as Pay and
Allowances.
(g) Disablement and Death Compensation Liability - The
expenditure on account of disablement compensation or death
compensation including ex-gratia payments will be borne by
the respective Projects on actual basis, if the disablement/
death has occurred during employment with GREF. This
expenditure will be debitable to Jobs in case of personnel from
a TF/lower formation, to the Ground Establishment in case of a
Project Headquarters and to the General Establishment in the
case of the HQ DGBR.
(h) Loans/Recoveries From BRO Employees And DAD
Employees - Long term recoveries of loans/advances like HBA,
Motor Cycle/Car/Scooter/Cycle Advance and Festival
Advances will be booked under MH 7610 - Loans to Central Govt
Servants operated by the ACDAs/AOs and under the Minor
Heads as given below. While the advance should be booked as
a debit, the recovery should be credited on recovery by the PAO
GREF. The payment of loans and advances is from the Imprest
account.
Minor Head Item Code Head
201 House Building Adv 0/012/17
202 Motor Car Adv 0/012/22
202 Other Motor 0/012/23
Conveyance Adv
203 Other Conveyance Adv 0/012/19
800 Other Advances 0/012/20
800 Festival Adv 0/012/21
(Note : - For BRO employees the same category shall be
prefixed.)
(j) Move of Personnel (Adjusted Expenditure)
(i) The expenditure on all authorised moves of personnel
is debited to the Project/Jobs on which they are deployed.
The debits on account of cost of railway warrants are
passed on to the AO concerned through a DefenceExchange Account by the CC and A (Factories) Calcutta.
On receipt of the debit, the expenditure is booked as
adjusted expenditure against the liability booked to the
concerned Job.
(ii) The expenditure on account of LTC of Service
personnel and move of service personnel on permanent
posting is not to be booked to the Job, since it has already
been included in the capitation rate. Where the
Warrants/Forms ‘D’ are issued, these should be clearly
enfaced at the time of issue, as debitable to Defence
Services Estimates, to avoid booking in the BRO Budget.
(k) Expenditure For Common Service Units/Formations
(i) The Headquarters TF, Field Post Office, Field
Workshop, SS &TC, Provost Unit, MSS & MSU and Dental
Unit are called common service units and provide support
for more than one Job. The expenditure on these units is
specifically determined and distributed proportionately to
different Jobs in consultation with the UA/AO/TF.
(ii) In case, any common service unit is deployed for more
than one TF, the expenditure will be shared and the
construction account maintained.
(i) Expenditure on Account of Quality Control Cells - In every
Adm Approval a provision at 0.10% of the estimated value of
work is sanctioned, to meet the expenditure on account of
Quality Control Cells at a Project Headquarters. The booking of
the expenditure on account of Quality Control Cells will be on
the pattern similar to other Common Service Units. The
Project Headquarters should in each quarter proportionally
raise a debit on each affiliated TF covering the expenditure
incurred on account of Pay and Allowances, transportation and
purchase of equipment etc for the functioning of the QCC.
However, in the fourth qtr of the year ie Jan-Mar, each TF
should work out the balance amount available in various Jobs
for the acceptance of debit, on the basis of the cost of actual
work done and intimate this to the Project Headquarters by
20th Mar, saggthat the debit is raised by the Project
Headquarters suitably and accounted for by the TF and the
Project Headquarters in the Final March MER. However, in theopinion of the Chief Engineer, where it is not Possible to raise
debits every quarter due to small amounts involved, the debit
may be raised finally in the last quarter, for the adjustment in
the Final March MER.
fm) Expenditure on Air Lift_- Expenditure increased on airlift/
air support provided by the Air Force will be booked to Major
Head 3601 by the Projects. An allotment of funds is made
independently by HQ DGBR to the Projects for this purpose.
Bills raised by the Air Force will be accepted as debit by the
respective units utilising the air effort and booked to the Major
Head 3601 under‘ Air Effort’.
(n) Ground Establishment : Expenditure on account of Project
HQ, Base Depot, Transit Camps, Base Workshop, Store
Divisions, GREF Centre and LO DGBR will be booked to the
Ground Establishment for which separate funds are allotted by
HQ DGBR to the Projects/State formations under Major Head
5054.
(0) Charged Expenditure - This expenditure incurred to meet
the payment towards the charges for decrees/awards by
Courts and Arbitration awards will be booked against a
separate budget allotted to HQ DGBR under Major Head 3601
and 5054 for this purpose. This expenditure will be sanctioned
by HQ DGBR, as and when cases are projected by the Projects.
The Code Head would be 99/067/01 or 99/069/01 for MH 3601
and MH 5054 respectively, as applicable.
(p) Recoveries - Proforma charges based on a usage rate and
clothing rate, for recoveries for usage of plant and equipment,
clothing, departmental charges and recoveries from
Contractors are levied on other agencies. These proforma
charges and the amount received on disposal of salvage stores
through auction are adjusted as recoveries under MH 5054.
(Code. Head 00/069/05 for recoveries under Usage rate and
clothing, departmental charges and recoveries from
contractors and 00/069/06 for auction proceeds respectively).
Additional recoveries over and above that planned and not
included in the Annual Budgetary Statement will only accrue
as a credit for additional funding.(q) Security Cover - With a view to afford security cover to the
GREF working in areas affected by insurgency, the
expenditure incurred by certain security elements like the
Army Pioneer Coy/Territorial Army Personnel, who have been
attached with the GREF by the MOD/MOHA, will be booked
under Major Head 3601, Code Head 0/067/03. Separate funds
are allocated by HQ DGBR to CE Projects under “Security”.
1.37 ALL TYPES OF VEHICLES/PLANT/EQUIPTMENT AND STORES
(Less Cat ‘B’ Stores)
(a) Ration, POL and Other Stores From Defence - The stores
received from Defence are priced at Army Supply Corps payment issue
rates or any other specifically prescribed rates. The payment issue
vouchers are priced by the Local Accounts Officer (Army) and are
passed to the ACDA (P)/AO TF, through a book debit, by affording credit
to the Defence Services Estimates. This cost is debited to Jobs under
execution - The ration cost for Army personnel is included as one of
the components, while forwarding the capitation rate by Army
Headquarters.
(b) Locally Procured Cat B’ Stores Through Supply Orders -
The cost of stores procured locally will be debited to the specific Job for
which the item was procured at the time of payment of relevant bills.
(c) Centrally Purchased Stores -
{i) Stores From Base Depot - The centrally procured
stores received from Base Depots are priced at issue rates
and will be adjusted by the Project concerned against
respective Jobs. The issue rate will be the cost of material
plus 6% as inland freight and inspection charges and 5%
as departmental charges.
(ii) Stores Procured Through DGS&D
(i) All construction material like cement, bitumen,
POL and other miscellaneous items centrally
purchased through DGS&D, PSUs and other
Government agencies for which payment is released
through PAO DGS&D or other delegated PAOs are
compiled centrally to the CGDA EDP Compilation,
New Delhi, by the four DAD Cells at CDA(HQ), New
Delhi, CDA(Navy) Mumbai, CDA Chennai and CDAPathna based on their jurisdiction. On compilation,
these CP Vouchers are forwarded by the DAD Cells to
the CDA(BR).
(ii) CDA (BR) on receipt of the prepaid CP vouchers
from the DAD Cells, through a DID Schedule passes
them on to the AO of the TF, for whom the stores had
been procured. The AO TF in turn passes on the CP
voucher to the TF for distribution of expenditure after
due credit verification from the affiliated Stores
Supply and Transport Coy of the TF. These are then
adjusted by the AO Task Force, as per the availability
of funds and provisions in the TS of relevant Jobs.
(d) Capital Stores (Not Considered in Works) -
(i) _Cat ‘A’ Equipment/Vehicles/Plant and Cat ‘A’ Stores/
Spares
(aa) The expenditure on Cat ‘A’ eqpt, vehicles and
plant centrally procured by HQ DGBR through DGS &
D (RC)/TPC or PNC will be centrally booked by CDA
(BR) to MH 5054 under Code Head 65/069/04. No
booking of expenditure/adjustment to jobs is required
to be done at the Project/ TF level.
(ab) In the case of Cat ‘A’ stores/ spares/procured by
the Task Force or the Base Workshops and Base
Depots, the expenditure will be booked by the TF/
Base Workshops/ Base Depot against specific
allocations received under MH 5054, Code Head 65/
069/04. No expenditure will be booked to the Jobs. A
separate construction account ledger will be
maintained in the Base Depot in respect of each type
and make of equipment.
(ac) Repairs Through Trade For Equipment/ Plant/
Vehicles - The expenditure incurred on this account
by the Project Headquarters/ ESD/EBW will be
booked against the allotment received under MH
5054 for Cat ‘A’ Stores. In the case of TFs and Field
Workshops, the expenditure will be booked to the
respective Jobs.fii)
(iii)
Clothing (Proforma Expenditure) -
(aa) Clothing which is a Cat ‘A’ Store, is centrally
procured by HQ DGBR. The booking is done on per
capita rate basis, which is centrally fixed in
consultation with the BRDB and the Ministry of
Finance (Defence), with reference to authorised
scales of clothing. The cost is debited in the
construction account of the Jobs as Proforma
expenditure, on the basis of actual deployment on
ground. In case of Army Officers/Personnel, this will
not be separately booked, as the capitation rates of
Service personnel includes this aspect of
expenditure.
(ab) Clothing procured directly from Ordnance
Factories will be directly booked by the Factory to the
BRO Head of Account MH-5054.
{ac) Clothing procured directly from Army Ordnance
Depots will be costed by the Ordnance Depot and a
priced voucher will be accepted as a book debit
centrally by CDA(BR).
Usage Rate for Equipment (Proforma Expenditure)
(aa) Vehicles, equipment and plant are purchased
centrally by HQ DGBR. The rate for booking of usage
of machinery is fixed by the HQ DGBR in consultation
with the BRDB and Ministry of Finance (Defence).
These are worked out with reference to the capital
cost of each equipment, and cost of repair/
maintenance and spares divided by the laid down life.
(ab) The amount of usage rate to be adjusted against
a particular Job is worked out on the basis of the
utilisation of the veh/eqpt/plant, as per their
deployment. The TF prepares a consolidated report
as per the usage rates fixed by HQ DGBR from time to
time and the same is forwarded to the AO every
month, duly allocating Job No for booking/
incorporating in the construction account.ASSESSMENT AND MONITORING OF COMMITTED LIABILITIES
138 A ‘Liability ‘is established in all cases, where a contract/
agreement is entered into for supply of goods and services and
payment is to be made for supplies subsequently. Liabilities in the
BRO are created by way of deployment of resources, procurement of
stores from the local market, procurement of stores centrally from
DGS&D and PSUs, procurement of material/stores through contract
and deployment of CPLs. Budget provisions in the BRO include cash
and adjusted expenditure including liabilities.
Types of Liabilities
1.39 Contingent Liabilities - Any commitment of expenditure like
the placement of supply orders, placement of works orders on a
contractor etc is a contingent liability. The cost of such a
commitment is noted as a contingent liability and the amount is
distributed for various jobs for which the stores are required.
1.40 Firm Liabilities- On receipt of the stores ordered the cost of
these stores is transferred to firm liabilities till the payment is made
to the firm/contractors. SS&TCs collect data of receipt of stores from
all the units and include this data in a monthly liability report. The
report duly priced is to be submitted to the Task Force. The TF in turn
distributes this cost and books the liability in the construction account
of the Jobs, according to the procurement of stores for a particular Job.
141 The liabilities are categorised as under and booked
accordingly :-
(a) Cat ‘B’ Stores
(b) POL
(c) Ration
(d) Railway Warrants
(e) Contract Payments
(f} Miscellaneous
1.42 Monitoring of Committed Liabilities - The primary duty of the
executives is to ensure that the budgetary provisions exists for all past
liabilities committed and for fresh liabilities created during a financial
year. A large portion of the expenditure is incurred towards liquidating
committed liabilities. If the assessment of the carry over liability is
defective and proper control is not exercised over the level of
commitment, while incurring fresh liability, expenditure control
cannot be achieved. Carry over liability should be the first charge on
any allocation. Therefore the absence of reliable and specificinformation regarding the extent of carry over liability makes it
difficult to provide a specific amount under each Major Head/ Minor
Head and monitor progress towards liquidation of liability.
1.43
At the beginning of the each financial year, an amount should
be earmarked for meeting past commitments, the balance being
available for fresh commitments. Therefore it is imperative that
committed liabilities need to be realistically assessed and subse-
quently proper monitored. This information must be available to the
Executive and the Accounting authorities, at the time of entering into
a commitment (signing a contract/placing an indent) and is to be
constantly monitored upto the point, that the liability is completely
liquidated. Monitoring of liabilities to updating the proforma at
Appendix ‘K’ is a must. All the liabilities must be cleared on receipt of
CP Vouchers, MC Notes, CC Notes, TBOs etc.
1.44
Expenditure On Account Of Cat ‘B’ Stores
(a) The cost of stores (Cat ‘B) including constructional material
and stores is debitable to a specific Job, for which the item is
procured and is used. The process of booking of expenditure
has to start at the very stage of placing of the supply orders
itself. Any commitment of expenditure towards procurement of
stores by placement of supply orders, or work orders on
contractors etc is termed as a Contingent liability. This
commitment of expenditure has to be reflected in the
Construction Account of the relevant job and carefully entered
in the liability register supply order wise. Where the supply
orders for stores proposed for procurement are issued
combined for a number of jobs, the same should be apportioned
with respect to their likely share. In the supply order,\ the
Major Head of Account and the nine character Audit Code
Head to which the cost of stores is chargeable should
invariably be written, along with the percentage of share of
each Job, for which the stores are being procured combined.
(b) Two types of payment vouchers are initiated for the
purposes of booking of stores to Jobs. One is a cash payment
voucher, which is for local/direct purchase against supply
orders which are booked to the job as cash expenditure. The
second is a centrally purchased voucher, which is for centrally
purchased stores through DGS&D and other Govt supply
agencies. These generally comprise of construction materialsuch as cement, bitumen and other miscellaneous items, for
which payment is released through PAO DGS&D/respective
PAO’s. These vouchers are booked directly by DAD Cells to the
Major Head of Account and Code Head. Thereafter, these are
sent to CDA (BR), who in turn forwards these vouchers to
ACDA/AO of the concerned Project/TF for adjustment and
booking in the Construction Account of the relevant Job/Jobs
and for reflecting the adjustment in the MER/MES.
(c) Cat ‘B’ Stores are also procured in an emergency under
petty Imprest under Para 634 to 637 of BR Regulations and
Rule 102 of the Government Financial Regulations - Note
below Rule 2. Such purchases are also booked as cash
expenditure.
(d) The method of accounting local purchase and centrally
purchased vouchers is given in a flow diagram at Appendix ‘L’.
The procedure to be followed will be as under :-
(aa) Immediately, on placing of the supply order, the
executives should enter the same in the Contingent
Liability Register (Format at Appx ‘M), which should be got
vetted from the audit. As and when the stores are
received, irrespective of the fact as to whether the bills
have been received or not from the supplier, the liability
from the Contingent Liability Register should be
transferred to the Firm Liability Register (Format at Appx
‘N’). This firm liability should be posted in the
Construction Account, in the folio of liabilities (BRDB
Form - 26E Inner - Appx ‘O’) and carried over to the
Abstract of Construction Account (BRDB Form -26D Outer
Appx-‘ P)}. At the time of the payment of the bills for the
local/direct purchase supply orders, the booking is done in
the Construction Account (Cash Expenditure)- BRDB Folio
No 2 in Form No 26-C-Inner (Appx Q, Q1 & Q2) and the
liability booked against the pertinent supply order is
liquidated from the Register of Firm Liabilities and the
Construction Account Folio of Liabilities (BRDB Form-26-
E-Inner Appx - ‘0?). These transfer entries from the stage
of passing of bills to the final posting in the construction
accounts should be properly verified by the Audit
authorities maintaining the same. The variousConstruction Account folios referred to above have been
enclosed.
DOCUMENTATION RELATED TO THE BUDGET IN THE BRO
1.45 Construction Account - The first and foremost document for
financial control is the Construction Account.
1.46 Expenditure incurred is booked in an account book known as
the Construction Account. The ACDA/AO at the Headquarters
Project/ TF level maintains the Construction Account. Voucher wise
entry of amount and nature of expenditure is made in the
Construction Account which is maintained for each individual Job.
The running total of all expenditure at the end of the month is
tabulated column wise in the Construction Account. Liabilities
incurred during the month are also entered in the Construction
Account in the relevant column. The Construction Account provides a
complete picture of the financial progress of the Job and also provides
the completion cost of a completed Job. The Voucher/TE wise account
of each Job is maintained in a register (IAFA-823), a specimen of which
is enclosed at Appx ‘R’ and Annx 1 to Appx ‘R’.
1.47 The proforma for the maintenance of the construction account
Job wise and year wise as circulated vide CDA (BR) letter No BR/
BUD/ 900-Corr- Cons Accts dated 31 Mar 1995 and covered in TI No.6
(Revision 1995)
1.48 Monthly Expenditure Return (MER) - The Monthly Expenditure
Return is prepared by the TF/Project for each Job, as administratively
approved and then consolidated Major Head wise. It is based on the
allocations of expenditure made by the TF against each Job month
wise and is checked by the AO of the TF/ACDA of the Project before
submission to HQ DGBR, CDA (BR) and BRDB through the Chief
Engineer Project by the 15th of the next month. The March MER will
cover the period upto the 31 Mar. In addition to monthly MERs, there
are three special MERs ie. 13, 14 and 15 MER. No adjustment on
account of cash expenditure is authorised after 31 Mar, whereas
adjustment of adjusted expenditure is authorised till submission of 13
MER. 14 and 15 MERs are called correction MERs, in which
corrections of any wrong booking between the Major Heads are
authorised. The details of submission of 13, 14 and 15 MER will be
given by CDA (BR). The typed format is given at Appendices ‘S’.149 Monthly Expenditure Statement (MES) - It is a monthly
expenditure report prepared by the audit authorities indicating the
expenditure incurred during the month Major Head Wise/Sub Head
Wise. This is submitted to CDA (BR) for compilation and onward
submission to MOST, MOD, BRDB, DGBR and CGDA. A typed format
is given at Appx T’ and T1’.
1.50 Punching Medium (PM) - The Account Officers in the field
submit consolidated receipts and expenditure document every month
Head wise called the Punching Medium. This is in a digital form,
which is compiled by EDP Cells of the CGDA’s Office and provided to
the CDA (BR) for analysis and reconciliation of expenditure returns,
both the MER submitted by the Chief Engineer Project and the MES
submitted by the audit at the TF level. A similar exercise is carried
out at the TF/Project level between the TF Commander/Chief
Engineer Project and the AO/ ACDA each month. On completion of the
above exercise, the CDA (BR) prepares a consolidated monthly
expenditure statement Head/Sub Head wise and submits the same to
MOST, MOD, BRDB, DGBR and CGDA. A sample format of a variation
reconciliation statement of the MER and MES is given at Appendix ‘U’.
1.51 Liability Register - A liability register is to be maintained at
the TF level and is to be forwarded to the Accounts Officer at the time
of vetting of any expenditure proposal to enable the close monitoring of
contingent and firm liabilities. The format to be followed for contingent
and firm liabilities is attached at Appendices ‘M’ and ‘N’. A separate
register will be maintained for each Job with the contingent and firm
liabilities indicated on separate pages.
BUDGETORY CONTROL
1.52 The basic emphasis is to achieve the value for money for all
expenditure programmes. This quest for ‘Value for Money’ embraces
the question of Economy, Efficiency and Effectiveness the three Es of
an expenditure programme. In this context ‘Economy’ is taken to
mean the achievement of a given result with the least expenditure of
money, man power or other resources, while ‘Efficiency’ leads to the
idea of converting resources into desired outputs in the most
advantageous ratio. ‘Effectiveness’ on the other hand brings into
account the goals or objectives , which the activity in question is
intended to meet. It is in this context that Budgetary Control is of
prime importance. The essential aspects of Budgetary Control are :-