Reading Material Communication

IN
DEFENCE ACCOUNTS DEPARTMENT
Study Material and Case Studies
On
Noting, Drafting and Office Communication
National Academy of Defence Financial Management/Regional Training Centre, Golibar Maidan, Pune — 411 001
Website: www.nadfm.nic.in email: mail.nadfm@nic.in Tel No. 020-26443851 Fax No. 020-26443983
Chapter Contents Page
No. No.
1. Effective Communication Skills – Office Communication 1
2. Various Types of Office Communication 2
3. System of Filing and various aspects of File Management 3
4. Office Note 4-12
5. Ordinary Letter 13-15
6. D.O. Letter 16-18
7. Circular 19-21
8. Office Memorandum 22-23
9. U.O. Note 24-25
10. Counter Affidavit and Para-wise comments 26-38
11. Audit Reports - Super Review/Performance Audit etc. 39-51
12. O&M Inspection Report 52-67
13. Examination of Proposals 68-76
14. Write up on a given area of work 77-90
15. Review and Concluding Remarks 91

Page 1
Chapter 1
Effective Communication Skills – Office Communication
Effective Communication: Communication can be defined as a translation of thought process into

meaningful sentence/text, whether it is oral or written. A communication is said to be effective,
only if, its meaning is understood by the listeners/readers in true sense and spirit.
Communication may be in many forms. It can be a message, letter or order released/

issued in appropriate form in proper channel. It is always better to keep the language of
communication in simple terms to make it easy for understanding by one and all.
Importance of Effective Office Communication: Effective Communication is very important in

Government set up. In the Government organizations, oral communication has no importance or
less importance when compared to the written communication.
Decisions of higher Government authorities are conveyed to the lower authorities and
organizations through proper channel by using different kinds of written office communication. It is
for the officers and staff working at the lower level to implement the policies and orders of the
Government. Therefore such orders must be very clear in terminology & flow and there should not
be any ambiguity.
A simple grammatical mistake or misconstruction may change the scope of communication

completely, which will lead to erroneous interpretation and improper execution. For this purpose, it
is very important for the persons drafting the Government orders and other forms of
communication to keep the language of communication simple and easy to understand.
Further, after introduction of Right to Information Act, it is incumbent on each

Government organization to provide the rightful information to the citizens, that must be complete
to the point asked for and correct in all respects. Therefore Government officers/staff at all levels
are expected to have a decent command over the noting, drafting and other communication skills
in order to excel not only in their career, but also to provide the desired services to their
customers/public within the time frame, prescribed for each specific job/assignment.
4
Page 2
Chapter 2
System of filing and various aspects of file management
File Management: Proper file management and systematic filing methodology are
mandatory requirements for a Government office not only to run its day to day business,
but also to achieve its objectives considering over all aspects of functioning of the
Government mechanism.
Various aspects of File Management:
 Register of files is maintained for the entire office in Administration Section. A similar
register is maintained in each section. Details of all the files opened must be recorded in
both these registers.
 Every file is given a unique File No. as per the subject matter it deals with. Date of opening
of the file/volume is recorded on the top of the file at the prescribed space.
 File No. consists of section name abbreviation, the unique series No., subject in brief and
volume No. of the file.
 All the pages are supposed to be serially numbered starting from Page No. 1 from the bottom
to top in the chronological order of the correspondence.
 After 150 pages, a new volume is opened. File No. remains the same.
 Office Notes are tagged inside the file on the left side duly numbered serially from bottom to
top. The respective documents/orders/correspondence are filed on the right side of the file
duly numbered with page numbering on right side top of each page.
 T-Linking is done on all the important pages and office notes, linking with the previous
related correspondence on left side of the T on top of the respective page. Page numbers of
next correspondence related to the same on the right side of the T.
 Flagging of all the related Office Notes and Correspondence/other documents is done by
pasting the adhesive flags on the concerned papers in the form of writing F/A, F/B etc.,
mentioning the same on the left/right margin of the respective Office Note, while submitting
to the higher ups.
 Once a volume of the file is closed, a remark to this effect should be noted on the file at
prescribed space, duly mentioning the date of closure of the file.
 Closed file is preserved with proper indexing for easy retrieval of the same as and when
required in future.
 Once a file gets time expired, the same is destroyed after obtaining orders of the competent
officer/Authority.
Page 3
Chapter 3
Types Office Communication
The following forms of Office Communication are normally used in the Defence Accounts
Department and Central Government Offices.
1. Office Note
2. Ordinary Letter
3. D.O. Letter
4. Circular
5. Legal Communication like Affidavit, Counter Affidavit, Charge Sheet and Speaking Order etc.
6. U.O. Note
7. Office Memorandum
8. Reports like MFAI, IAR, O&M Inspection Report, Super Review Report and Performance Audit
Report etc.
9. Write up/work study on a given area of work
10. New Proposals
11. Any other communication prescribed by H.Qrs. office from time to time as and when required
Purpose:
It may be noted that each type of communication mentioned above has a unique sense and
utility depending upon the nature of communication, reason and purpose behind issuing the
particular communication initiated at different levels and action required to be taken by various
offices.
Specific format is prescribed for each type of office communication, which is supposed to
be adhered to by the Ministries, H.Qrs. office and subordinate organizations/offices under
Government of India and Ministry of Defence.
As an employee of DAD, one has to understand the utility, purpose and format of each type
of Office Communication and use the same as per the requirement at a given point of time. It is
essential to have the skills of drafting each type of communication, besides using the prescribed
format for communication.
Let us see the formats of each type of communication and basic rules of drafting the same
in the next pages.
Focal Point Branch – Scrolls & DMROs Page 4
Chapter 4
Office Note
Purpose:
 To submit information to the higher authorities.
 To obtain the directions/decision of higher authorities on a general/specific issue.
 To obtain approval of Competent Authority in specific/financial/non financial/

Administrative matters.
 To take a stand on temporary basis till the final orders are received in a specific case.
Basic points to be followed:
 Use simple style of writing and simple words as far as possible.
 Be concise to the point. Avoid using complex phrases, sentences and synonyms. Do not
deviate from the subject matter.
 Avoid verbatim reproduction of the PUC.
 Present the extract of the case in brief terms, without compromising content.
 Divide the Noting into paragraphs of reasonable size.
 Use simple present/past/present continuous tense as per the requirement. Mode of drafting
should be in third person.
 Present the facts of the case, authority/order.
 Present the precedence/practices followed in case of lack of authority.
 Present the views and proposed course of action.
 Bring out the specific point on which the orders of PCDA/CDA/other higher authorities are
sought.
 Stick to the prescribed format.
 Do the Page Numbering, T-linking, proper flagging of the documents supposed to be referred
while examining the proposal.
 Tag the Office Note on left side of the File/folder and tag the correspondence & other
documents of reference on the right side.
 Sign at the prescribed place with date and mark to the appropriate officer in the chain of
hierarchy.
Page 5
Q.1 A Defence Civilian not entitled to travel by air and posted at Nagpur travelled on 4 year LTC
between Nagpur and Kolkata by Air and sought reimbursement of the air fare by restricting it to
Rajdhani fare by the entitled class. Please examine his claim in the light of the clarifications
contained in the DoPT OM No.31011/2/2006-Estt.(A) dated 21.5.2007, reproduced in APPENDIX-
5, and put up an office not for the consideration of your Accounts Officer recommending
admissibility or otherwise of the claim.
APPENDIX – 5
No.31011/2/2006-Estt(A)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training Division
Dated 21stMay, 2007
OFFICE MEMORANDUM
Sub: Regulation of journeys by private airlines while availing LTC – Reg.

***
1. The undersigned is directed to refer to this Department's OM No.31011/2/2006-Estt.(A) dated
24th April, 2006, regarding regularization of journey by private airlines while availing Leave Travel
Concession (LTC), where it has been inter alia stated that journeys by non-entitled officers between
places connected by train may be allowed, provided the reimbursement of the fare would be
restricted to the entitled class by Rail other than Rajdhani/Shatabdi Express.
2. In partial modification of the above provision, it has now been decided that the reimbursement
may also be given at the rates applicable for Rajdhani/ Shatabdi Express trains, provided the
Government is entitled to it and the headquarter of the Government servant/permissible place of
commencement of journey and the home town/destination under All India LTC is directly
connected by the above mentioned trains and two stations between which the air travel has been
performed are connected by Rajdhani/Shatabdi type trains, the reimbursement would be limited to
the actual expenditure. All pending cases may be settled accordingly in terms of this order.
However, past cases already settled will not be reopened.
3. The above orders will be applicable with effect from the date of issue of this OM.
4. In their application to the staff serving in the Indian Audit and Accounts Department, these
orders issue after consultation with the C&AG of India.
5. This issues in consultation with Ministry of Finance (Department of Expenditure) vide their
I.D.No.84/E-IV/2007 dated 9th May, 2007.
Sd/-
Deputy Secretary to the Govt. of India
To,
All Ministries/Departments of the Government of India

Page 6
Solution
Office Note
No. T/PCDA/LTC/108
Date: xx.xx.xxxx
Sub: Admissibility of Rajdhani Express fare in lieu of Air Fare – Reg.

***
Placed below is a contingent bill where reimbursement has been sought for
expenditure on account of LTC in respect of Shri X, a Defence Civilian posted at Nagpur
who availed LTC from Nagpur to Kolkata for the current 4 Year Block period. The
individual has performed the journey by air from Nagpur to Kolkata and requested to
restrict the amount of reimbursement of air fare by entitled class of Rajdhani express.
2. The individual is not entitled to travel by air. However, Min. of Finance vide its Memo
No.31011/2/2006-Estt(A) dated 21.5.2007 (placed at Flag 'A') have decided that the
admissibility of air fare for the non-entitled persons under All India LTC will be restricted
to the entitled class of the Rajdhani/ Shatabdi Express provided the HQrs of the Govt.
Servant/permissible place of commencement journey and the Home Town/Destination
are directed connected by Rajdhani/Shatabdi express.
3. In the present case, since Nagpur & Kolkata are not directly connected by Rajdhani/
Shatabdi Express, reimbursement to Shri X is proposed to be restricted to the entitled
class by Rail other than Rajdhani/Shatabdi Express in the light of the provisions
contained in Office Memo of Ministry of Finance.
Submitted for orders please.
AAO (T)
AO (T)
Page 7
Q. 2 Electricity bills for the office portion of the Official Residence of C-in-C, SFC, located at No.
4, SunehariBagh Road, New Delhi, were received fro payment in one Controllers' s office from
Director (Works) ,AgramiHQr, SFC, Delhi Cantt. The expenditure is debitable to Major Head 2077
(Navy Minor Head 112 JS, Code Head 695/11 and has been sanctioned by the MA/C in C in
consultation with IFA.
On scrutiny of the bills for the office vis- a vis the residential portion of Official Residence of
C- in - C, it was observed that average monthly expenditure on electricity bill for the last four
months viz. Dec. 2008 to March 2009 for residential portion is about Rs. 1077, whereas the
expenditure on office portion is a staggering Rs. 7432 (Appendix -'A' ). The bills were returned to
Director of Works seeking clarification on the above (Appendix -'B')
Draft an Office Note seeking orders from PCDA that the reply submitted by Agrami HQ,
SFC (Appendix -'C') is inadequate and that bills may be admitted in audit till points raised
regarding (i) area of office portion, (ii) area of residence, and (iii) list of electric appliances fitted in
office portion etc. are clarified.
Page 8
(Appendix 'A’)
Details of Electricity Bills:

Month of Bill Payment made by Payment made
the office or Resi- from
dential portion
Public - Fund for
office portion
December 2008 Nil Rs. 5827
January, 2009 Rs. 3588 ¼For 12717
12/2008 &
1/2009)
February 2009 Rs. 327 Nil
March 2009 Rs. 393 Rs. 11184 (For
2/2009 &
3/2009)
Total Rs. 4308 29728
Page 9
(Appendix - 'B')
Agrami HQ SFC
Delhi Cantt.
New Delhi - 110010
Dt. 24 June, 2009
SFC/1004/1/C- in - C
DCDA
Office of the PCDA
New Delhi - 110011
Sub: Payment of Electricity Bills in respect of Office portion of the Residential

Accommodation of C-in- C, SFC
***
1. Refer of your letter No. 22023/1/2K/Nodal/CPWD dated 03 Jun, 09
2. Sunehari Bagh is nominated as the official residence of Commander - in - Chief (C-in-C) of

Strategic Forces Command(SFC) (equivalent to the Vice Chiefs of the services) since 2003. The
entire Command House is divided into three portions i.e. residential , official (external security
area and offices) and servant quarters and three separate electricity bills are received and
payment is made accordingly.
3. CFA has accorded a sanction to pay the electrical bills of the official portion
(external security area and offices) of the residence under the Major Head 2077 (Navy),
Minor Head 112 JS, Code Head 695/11 on the lines of the payment made for the official
portions of Vice Chiefs and CISC's official residences. To regularize the proper electrical
consumption of each portion, separate electronic meters have been installed by NDMC. The
official portion includes the external area which has the security lights covering the area of
appx. 1100sq. yards. C-in-C. SFC also travels extensively on temporary duties on an
average of 7-10 days in a month. During these days the residential portion is used only for
maintenance and clearing purpose thus having no electrical consumption almost for ¼ of
the month. It is also emphasized that the official portion is very frequently visited by the
senior officers of Tri services and HQ SFC during the late hours and the week ends.
1. The electricity bills are charged as per the electrical consumption (readings ) of each meter.
Further to this, the servant quarter's electricity bill of appx. Rs. 1500 is also cleared by C - in -
C on monthly basis.
2. In view of the above, you are requested to reconcile and make the payment of the official bill
for the month of June 09 as per the enclosed contingent bill.
Lt. Col
DA to C in C
Page 10
Appendix -'C'
Office of the Principal Controller of Defence Accounts
No. 22023/1/2K/Nodal/CPWD Dated: 03.06.09
To
Director (Work)
Agrami HQ SFC
Delhi Cantt. 110010
Sub: Payment of Electricity Bills in respect of Office portion of the Residential

Accommodation of C-in-C, SFC.
***
This office is responsible for payment of electricity tariff bills, in respect of the office
portion of the residential accommodation of C -in- C, SFC at No. 4 SunehariBagh Road, New Delhi.
2. However, during scrutiny of the electricity bills before payment, for the office portion vis- a-
vis the residential portion at No. SunehariBagh Road, New Delhi, It has been observed that
whereas the average monthly expenditure on payment of electricity bills for the last four months
(Dec. 2008 to March 2009) for the residential portion is around Rs. 1077 , the expenditure on the
office portion is a staggering Rs. 7432. This office is of the view that, the expenditure on the office
portion and the residential portion at No. 4 SunehariBagh Road, New Delhi should have been
exactly the opposite amounts indicated above.
3. In view of the above, it is requested that the matter be examined further. The area of the
office portion in the residence may be indicated along with the authority for the same. Also, the lost
of electrical fittings /appliances in the office portion may be furnished. It may also please be
indicated whether separate meters have been installed for the residential and office portions. If not,
the basis /method of apportioning the expenses may be indicated.
4. An early action in the matte is requested as the payment for the next cycle will be
made only after a reply has been received from your office.
` Pr. CDA has seen.
Sd/- Dy. Controller of Defence Accounts

Page 11
Solution
Office Note
No. 22023/I/2K
Date 7/09
Sub: Audit of Electricity bills for the office portion of residential accommodation of
C- in-C, SFC
***
AgramiHQrs, SFC, Delhi Cantt is making payment of electricity bills in respect of office
portion of the official residence of C-in-C, SFC located at No. 4 SunehariBagh Road, New Delhi, out
of Major Head 2077(Navy), Minor Head 112J, Code Head 695/11. The allotment of fund for the
expenditure is being placed at the disposal of HQrs SFC by HQrs. IDS. The expenditure has been
sanctioned by MA/Cin-C consultation with their IFA.
2. During examination of electricity bills in respect of office portion of the official residence,
submitted by Director (Works), it is noticed that average expenditure on electricity bills on
residential portion for the last 4 months is around Rs. 1077/- whereas average expenditure of
electricity bill on office portion is Rs. 7432/-. The payment made on the residence portion by the
officer and payment made from the public Fund for the office portion during the last 4 months is
placed below for perusal please.
Month of bill Payment made by the office Payment made from

for Residential Portion
Public Fund for Office
Portion
December 2008 Nil Rs. 5827/-
January 2009 Rs. 3588/- (For 12/2008 & Rs. 12717/-
1/2009)
February 2009 Rs. 327/- Nil
March 2009 Rs. 393/- Rs. 11184(For 2/2009 &
3/2009
Total Rs. 4308/- Rs. 29728
Page 12
3. From the detail mentioned above, the expenditure incurred on payment of electricity bills of the
residential portion does not, prima facie, seem to be logically correct. Factually the expenditure on
electricity bills of the residential portion should be higher than that of official portion. As the
expenditure of electricity bills of the official portion is to be borne by the Govt. The case was taken
up with Director (Works), Agrami, HQSFC, Delhi Cantt vide this office letter of even NO. dated
03/06/09 to ascertain the following points before admitting the bills in audit:
(i) Area of office portion in the official residence and the authority in support of the same.
(ii) A list of electrical billing & appliances in the office portion.
(iii) Whether separate meters are installed for residential & office portion. If not, basis/method of
apportioning the expenses.
4. In response to this, the reply submitted by Director (Works) vide their letter date 24/6/09
is placed below for perusal please. From the detail mentioned into the said letter it is found
that the reply is incomplete on the following grounds:
(i) The area of office portion together with the numbers of room in the residential accommodation
has not been indicated.
(ii) The list of electric appliances /fittings in the office portion has also not been furnished.
(iii) The electricity consumption for residential portion is stated to be nil for almost ¼ of the
month due to frequent travel of C- in-C but the reason for not applying the same condition with
official portion, has not been clarified by Director(Works).
5. Director (Work), vide their letter cited above, has also mentioned that the servant quarter's
electricity bill of appx Rs. 1000/- to Rs. 1500/- is also being cleared by C-in-C on monthly basis.
However, copies of electricity bills of the servant quarters has not been furnished/enclosed.
6. In view of the above, if agreed to, it is proposed that the matter should again be taken up with
the Director(Works ) for seeking clarifications on the points mentioned in Para-4 above, before
admitting the bills for electricity submitted by that office in audit.
Submitted please.
AAO
AO
Page 13
Chapter 5
Ordinary Letter
Purpose:
 It is used as a formal communication/regular correspondence.
 It can be from one Government office to another and to the outsiders also
 It can be signed by AO/SAO/GO/Jt.CDA/Addl. CDA/CDA/PCDA
 Can be signed by AAO also if the matter is of routine nature or if the senior officer
is not available.
 Majority of Office Communication is in the form of ordinary letters
 Use simple language in third person
 One can use second person language also, if required
 Ordinary letter will have subject and salutation is not required
 Reference to the previous letters can also be mentioned, if it is a reply or has

reference to the previous correspondence
Question:
Shri M.H. Khan, Staff Car Driver, A/c No. 8333269 working in the office of CDA
(Trg.)/NADFM & RTC Pune is due for retirement on superannuation on 30.11.2019. Write
a letter to CGDA H.Qrs. office with a request to post a staff car driver at the earliest.
Justify the requirement in suitable words.
Letter may be drafted in Hindi and English.

Page 14
Solution in Hindi:
रक्षा लेखा नियंत्रक (प्रशिक्षण)/CDA (Training)
राष्ट्रीय रक्षा वित्तीय प्रबंधि अकादमी एिं क्षेत्रीय प्रशिक्षण केंद्र
National Academy Of Defence Financial Management &
Regional Training Centre
गोलीबार मैदाि,पुणे 411001/Golibar Maidan, Pune- 411001
Web site: www.nadfm.nic.in e mail: mail.nadfm@nic.in
Telephone No. 020-26443851 Fax No. 020-26443983
सं.र.र.वि.प्र.अ/101/के.एम.आई. दिन ंक :
सेि में ,
प्रभ री अधिक री
प्रश सन अनुभ ग-10
र.ले.म.नन. क र् ालर्
उल न बट र रोड
प लम, दिल्ली छ िनी
विषर्: र .र.वि.प्र.अ./र.ले.नन.(प्रशश), पण
ु े क र्ालर् में ि हन च लक की तैन ती के संबंि में ।
इस क र् ालर् में क र्ारत ि हन च लक श्री एम.एच. ख न, ले.सं./8333269 दिन ंक 30 निंबर 2019

को अधििवषात के आर्ु प्र प्त करने पर सेि ननित्त
ृ होने ि ले है ।
2. ि हन च लक की सेि एँ मुख्र्तः ननिे शक, र .र.वि.प्र.अ., पुणे के शलए उपर्ोग ककए ज रहे हैं। र्ह
एक प्रशशक्षण केंद्र होने के क रण आिशर्क्त नुस र अनतधि संक र् के शलए भी स्ट फ क र क उपर्ोग ककर्
ज त है ।
3. अतः आप से अनुरोि है कक इस क र् ालर् में र्ि शीघ्र ि हन च लक की तैन ती ककर् ज ए।
(नील एस कुम र)
ि.ले.अ(प्रश )
Page 15
Solution in English:
**रक्षा लेखा नियंत्रक (प्रशिक्षण)/CDA (Training)
गोलीबार मैदाि,पुणे 411001/Golibar Maidan, Pune- 411001
No. NADFM/101/KMI Date:
To
Jt. CGDA (AN)

O/o the CGDA
Ulan Batar Road
Palam
Delhi Cantt – 110010.
Sub: Request for posting of Staff Car Driver – Reg.
***
It is submitted that Shri M.H. Khan, A/c No. 8333269, working as Staff Car Driver
in this office is due for superannuation in the month of November 2019. He is the only
driver posted in this office.
Services of staff car driver are utilized for the official duties of the Director NADFM/
RTC and also for providing transport facility to the Guest Faculty of NADFM.
It is therefore requested to post one staff car driver in place of Shri M.H. Khan, CMD
before his date of superannuation to avoid inconvenience please.
This has the approval of Director.
(XYZ)
Sr. Accounts Officer (AN)
**If the letter head is not used then we can write file No. & Office Address alternately like below
No. NADFM/101/KMI
O/o the CDA (Trg.)
NADFM/RTC
Golibar Maidan
Pune – 411001
Page 16
Chapter 6
Demi Official Letter

Purpose:
 It is used as a mode of communication between senior level officers in the

Department.
 To attract immediate attention of the senior level officer on a subject.
 To address the issues requiring interference of senior officers.
 To resolve the pending issues.
 Communication is in first/second/third person as required.
 Officer writing the D.O. letter writes the date of correspondence.
 Salutation like Dear, Respected etc. is written by the Officer writing the D.O. letter.
 D.O. letter would not have any specific Reference and subject. They are covered in
the text
Question:
Shri M.H. Khan, Staff Car Driver, A/c No. 8333269 working in the office of CDA
(Trg.)/NADFM & RTC Pune is due for retirement on superannuation on 30.11.2019. Write
a D.O. letter from Director to Jt. CGDA (AN), H.Qrs. office with a request to post a staff car
driver at the earliest. Justify the requirement in suitable words.
D.O. Letter may be drafted in Hindi and English.

Page 17
Solution in Hindi:
XYZ, भा.र.ले.से.
निदे िक
सं.र.र.वि.प्र.अ/101/के.एम.आई. दिन ंक : .05.2019
मैं आपको र्ह अिासरक री पत्र इस क र् ालर् में ि हन च लक के तैन ती के संबंि में र्ह पत्र शलख
रह हँ। िताम न में इस क र् ालर् में क र्ारत ि हन च लक श्री एम.एच. ख न, ले.सं./8333269 दिन ंक 30
निंबर 2019 को अधििवषात के आर्ु प्र प्त करने पर सेि ननित्त
ृ होने ि ल है ।
2. अतः आप से अनुरोि है कक इस क र् ालर् में ि हन च लक की तैन ती पर विच र ककर् ज ए।
आपक
श्री ABC, भ .र.ले.से.

र.ले.ि.सं.म.नन (प्रश )
र.ले.म.नन. क र् ालर्
दिल्ली छ िनी
Page 18
XYZ, IDAS
Controller
No. NADFM/101/KMI Date:
Dear/My dear/Respected
I am writing this D.O. letter regarding posting of Staff Car Driver to my office.
In this connection, I would like to bring to your notice that my staff car
driver Shri M.H. Khan, A/c No. 8333269 is due for superannuation in the month of
November 2019. He is the only driver posted in my office.
Presently, I am utilizing the services of staff car driver for my official duties
and also for providing transport facility to the Guest Faculty of NADFM.
I, therefore request you to post one staff car driver in place of Shri M.H.
Khan, CMD before his date of superannuation to avoid inconvenience in the day to day
activities of Academy.
I hope you will do the needful and come back to me positively.
With
Yours
Shri ABC, IDAS

Jt. CGDA (AN)
O/o the CGDA
Ulan Batar Road
Palam
Delhi Cantt – 110010.
Page 19
Chapter 7
Circular
Purpose:
 To issue instructions to sections of Main Office and sub offices.
 To convey the decision of senior authorities like CGDA/PCDA/CDA etc.
 To issue clarification on a specific matter to establish uniformity.
 To issue instructions to officers and staff under the jurisdiction of the office.
 Communication is in third person.
 Communication must be firm, clear, and specific to the point.
 It may have reference to the previous correspondence as per requirement.
 If required the word “Important” may be prefixed to the word “Circular”.
 All the concerned officers/staff will have to be asked to note the Contents of the
circular/Important Circular.
Question:
Like every year this year DAD Day will be celebrated on 1st October 2019. Your
office has received a circular from HQs office with an instruction to conduct various sports
& cultural activities as a part of the celebration.
You are posted as AAO (AN).
 Draft a circular addressed to all the section in main office calling for interested
volunteers to participate in Cultural/Sports Activities.
 Draft a circular addressed to all the sub offices to comply with the instructions of
HQs office cited above and also to submit a report on the celebration with
photographs for onward submission to HQs office.
Page 20
Solution:
Office of the CDA X

CIRCULAR
No. AN/II/XX/XX Dated: 22/05/2019
To
The Officer - in - Charge

All Section in Main Office
(As per the standard list)
Subject: DAD Day Celebration on 1st October 2019.
***
This office has received a circular from HQs office bearing No.
……………………………………………….. dated……………with an instruction to celebrate
DAD day on 1st October 2019 in a grand manner by conducting various Sports & Cultural
activities.
2. Accordingly, Competent Authority has decided to conduct the sports/cultural

events (details attached as Annexure A). Interested volunteers amongst AAO/Senior
Auditor/Auditor/Clerk/MTS to participate in Cultural/Sports activities may submit their
names to this section latest by 31/08/2019. It may please be got noted that no entry will
be entertained after the above mentioned date.
3. The above circular may be brought to the notice of all in your section and their
signature obtained in token of having noted the contents of the circular.
Enclosure: Annexure A
Sd/-
(XYZ)
Asst. Accounts Officer (AN)
Page 21
Solution:
Office of the CDA X
CIRCULAR
No. AN/II/XX/XX Dated: 22/05/2019
To
All the Sub – Offices

(As per the standard list)
Subject: DAD Day Celebration on 1st October 2019.
***
This office has received a circular from HQs office bearing No.
……………………………………………….. dated…………… with an instruction to celebrate
DAD day on 1st October 2019 in a grand manner by conducting various Sports & Cultural
activities.
2. It is therefore requested to celebrate the DAD day on 01st October 2019 in your
office. As a part of the celebration various sports/cultural activities may be conducted
among the officers/staff. The winners may be awarded with prizes.
3. It is also requested to submit a report along with DAD day celebration photographs
latest by 10/10/2019 to this office for onward submission to the HQs office.
Please acknowledge receipt.
Enclosure: Format of report.

Sd/-
(XYZ)
Asst. Accounts Officer (AN)
Page 22
Chapter 8
Office Memorandum
Purpose:
 Government orders at Central Government/Ministry level are issued through Office

Memoranda like DOPT orders and MOF orders etc.
 To issue clarification/ruling on a specific matter to establish uniformity when

points of doubts are referred to Ministries by the Departments.
 Issued to all the Ministries/Departments as per the standard Distribution lists.
 Heads of the Departments will circulate these orders to the sub offices.
 Office Memorandum is circulated to all the sub offices and Units & formations by
publishing Part I Office Orders/Instructional Orders for implementation by all the
agencies concerned.
 Communication must be firm, clear, and specific to the point.
 It may have reference to the previous correspondence as per requirement.
Question:
As an officer working in DOPT, put up draft OM on Regulation of journey by private airlines

for the purpose of reimbursement at the Rajdhani/Satabdhi express fare, when travelled on
account of LTC.
Page 23
Solution:
No.31011/2/2006-Estt(A)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training Division
Dated 21stMay, 2007
OFFICE MEMORANDUM
Sub: Regulation of journeys by private airlines while availing LTC – Reg.

***
1. The undersigned is directed to refer to this Department's OM No.31011/2/2006-Estt.(A) dated

24th April, 2006, regarding regularization of journey by private airlines while availing Leave Travel
Concession (LTC), where it has been inter alia stated that journeys by non-entitled officers between
places connected by train may be allowed, provided the reimbursement of the fare would be
restricted to the entitled class by Rail other than Rajdhani/Shatabdi Express.
2. In partial modification of the above provision, it has now been decided that the reimbursement
may also be given at the rates applicable for Rajdhani/ Shatabdi Express trains, provided the
Government is entitled to it and the headquarter of the Government servant/permissible place of
commencement of journey and the home town/destination under All India LTC is directly
connected by the above mentioned trains and two stations between which the air travel has been
performed are connected by Rajdhani/Shatabdi type trains, the reimbursement would be limited to
the actual expenditure. All pending cases may be settled accordingly in terms of this order.
However, past cases already settled will not be reopened.
3. The above orders will be applicable with effect from the date of issue of this OM.
4. In their application to the staff serving in the Indian Audit and Accounts Department, these
orders issue after consultation with the C&AG of India.
5. This issues in consultation with Ministry of Finance (Department of Expenditure) vide their
I.D.No.84/E-IV/2007 dated 9th May, 2007.
Sd/-
Deputy Secretary to the Govt. of India
To
All Ministries/Departments of the Government of India

Page 24
Chapter 9
U.O. Note
Purpose:
 Communication at Ministry level, FADS and CGDA office etc.
 To accord concurrence of IFA
 To obtain views of Finance/Audit Authorities on a subject matter
 Name of the office initiating the correspondence is written at the top of the U.O.
Note
 To address is written at the bottom of the Note above the line. Please see the
format in the next page.
 File No. & address of the office initiating the correspondence is written at the
bottom of the Note below the line. Please see the format in the next page.
Question:
The Commandant of Army Base Workshop obtained sanction of the Competent

Authority for air lifting of 150 numbers of vital spare parts from abroad. Reason given to
justify the need was that the non availability of spare would immobilize a large number of
Armoured Fighting Vehicles (AFVs). Air lifting charges worked out to Rs. 10 lakhs. On
review of the case, the following points were noticed in audit and objection was raised.
.
 Non availability of spares was due to delay in placing the purchase order
 The Base workshop was required to keep a minimum of 200 spares always
 Required quantity of spares was available with neighbouring workshop
 Even half of the quantity air lifted was not used by the time the spares could have
reached through normal transport
Army authorities contended that the case is covered by the existing rules and therefore
expenditure on air lifting should not be treated as infructuous expenditure. CGDA wants
to recommend to the MOD to fully investigate the case and adopt necessary remedial
measures. Draft a note from Addl. CGDA (AT) to the Ministry of Defence on the subject.
Page 25
Solution:
Office of the Controller General of Defence Accounts
Sub: Avoidable Expenditure on Air lifting of spare parts by Base Workshop
***
During the course of local audit of Army Base Workshop, a case of air lifting of 150
numbers of spares for vehicles from abroad at a cost of Rs. 10 lakhs came to our notice.
Sanction of the Competent Authority was obtained no doubt vide ________, dated _______
(enclosed for ready reference).
2. Reason given to justify the need was that the non availability of spare
would immobilize a large number of Armoured Fighting Vehicles (AFVs). Scrutiny of the
case revealed that air lift and the expenditure associated with it could have been avoided,
had timely action been taken to place the purchase order in time. In fact, the workshop
was supposed to keep a minimum reserve of 200 spares at any point of time. Moreover,
the required spares were available with another neighbouring workshop, but the
possibility of transfer of spares/obtaining the same on loan basis was not explored.
3. Beyond all these, half of the quantity was not utilized by the time the spares could
have reached through normal transport. The matter was taken up with concerned Army
authorities and the reply given by them is not found convincing.
4. Ministry of Defence may like to investigate the matter in detail and institute
necessary remedial measures.
Addl. CGDA (AT)
Ministry of Defence, M.G.O. Branch, New Delhi

CGDA U.O. Note No. _______________________, dated ______, Delhi Cantt. - 110010
Page 26
Chapter 10
Counter Affidavit and Para-wise comments

Purpose:
 Used in the Court Case to submit the stand taken by the department on the
specific issue.
 Submitted to the Honorable Court/CAT through Counsel.
 Signed by the Nodal officer at the level of Addl. CDA/Jt. CDA/GO in general.
 A gist of the case is presented to the court explaining all the facts of the case, Rule
position and the stand taken by the office after examining the case thoroughly with
reference to the application submitted by the individual and the rule position.
 To be drafted carefully. A simple grammatical mistake/misconstruction of the

sentence may lead to adverse comments of the Honorable Court/CAT and the
department may lose the case.
 Format should be strictly adhered to.
Question:
One DAD employee (referred as applicant) working in a sub office located in Rajasthan
under PCDA (SC) Pune has been transferred to a sub office at Mumbai on administrative grounds.
The applicant has filed a petition in CAT, Jodhpur bench against the department stating that he
has been transferred out of turn with reference to his seniority. Also, he stated that his application
submitted to the Administrative authority to cancel his transfer has not been considered. Further
he informed that his wife is employed as teacher in the state government of Rajasthan and hence
his transfer is not justified on the grounds of spouse working.
Hon’ble CAT has directed the department to file the counter affidavit bringing out the entire
facts of the case along with provisions of transfer policy of the department. Also CAT has directed to
offer Para-wise comments on each allegation made by the employee.
Prepare a draft counter affidavit

Page 27
Solution:
CENTRAL ADMINISTRATIVE TRIBUNAL
JODHPUR BENCH, JODHPUR
ORIGINAL APPLICATION No. 290/00392/2017
APPLICANT:-
***************
VERSUS
RESPONDENTS:-
UOI and others
INDEX
Sl No. PARTICULARS PAGE No.

1. Reply to Original Application 38-
PLACE: ---------
DATED: ----------
------------------
Sr CGSC
Page 28
CENTRAL ADMINISTRATIVE TRIBUNAL
JODHPUR BENCH, JODHPUR
ORIGINAL APPLICATION No. 290/00392/2017
APPLICANT:-
************** VERSUS
RESPONDENTS:-
UOI and others
******
REPLY ON BEHALF OF THE RESPONDENTS
******
MAY IT PLEASE YOUR HONOUR;
PRELIMINARY OBJECTIONS
At the outset it is respectfully submitted that transfer order is not contemplated u/cl. (q) of
Sec-3 of Administrative Tribunals Act, 1985, therefore OA deserves to be dismissed at threshold.

Page 29
PARAWISE REPLIES:-
1. That the averments contained in Para no. 1 alleging the grievance pertaining to
transfer order is emphatically denied, rest of the averments pertaining to the dates
and events of the same order need no specific comments.
2. That the averments contained in Para no. 2 are also denied for the reason submitted
above in preliminary objection.
3. That the averments contained in Para no. 3 need no specific comments.
PARAWISE REPLY TO FACTS OF THE CASE:-
4.1 That the averments contained in Para no. 4.1 are pertaining to the service records of the
applicant are admitted and it is further submitted that applicant now has been transferred to
AO GE (NW), Karanja, Mumbai in the need of Administrative exigency.
4.2 That the averments contained in Para no. 4.2 are replied in the manner that alert notice is
issued to intimate the concerned person for the advance preparation for movement to the
new place of posting as and when actual transfer/posting order is issued.

Page 30
So far as representation (Annex-A/2) is concerned, applicant’s apprehension regarding his
seniority position is unfounded in view of Para-12.2 of Department’s Transfer Policy.
4.3 That the averments contained in Para no. 4.3 making allegation of non considerations of his
representation are emphatically denied and it is further submitted that applicant’s
representation was duly considered and then he was transferred in administrative exigency
which will be submitted here in after.
4.4 That the averments contained in Para no. 4.4 are admitted being part of record, however, it
is submitted that in his earlier application dated 21.09.2017 applicants for the reasons best
known to him did not mention that his wife is serving as Senior Teacher (Science) in a Govt
School and secondly this fact is not found declared in the service record of the applicant.
So far as Transfer Policy is concerned, it contains executive instructions/guidelines, which
do not have any statutory force.
4.5 That the averments contained in Para no. 4.5 are replied that Competent Authority is not
obliged to convey the reasons for rejection of representation in transfer matters.
4.6 That the averments contained in Para no. 4.6 are admitted to the extent of receipt of
representation dated 16.11.2016, however, it is emphatically denied that applicant’s prayer
was not taken into account. It is reiterated that after considering the earlier representation,
same was rejected.

Page 31
4.7 That in reply to the averments contained in Para-no. 4.7, it is submitted that it was not
possible to keep the applicant at present posting station and in the need of administrative
exigency he has been transferred, even otherwise OM dated 30.09.2009 does not confer upon
a Govt. employee any legally enforceable right.
4.8 That the averments contained in Para no. 4.8 have been well replied in above Para-4.2.
4.9 That the averments contained in Para no. 4.9 making allegations are emphatically denied
and it is reiterated that Transfer Orders issued on administrative grounds are outside the
purview of policy.
4.10 That the averments contained in Para no. 4.10 are also admitted as alleged, however, it is
further submitted that efforts are made to accommodate the officials within the region nearer
to home state but in case of administrative necessity any person can be transferred to the
area/region where his services are needed.
4.11 That the averments contained in Para no. 4.11 are also emphatically denied.
4.12 That the averments contained in Para no. 4.12 are also denied.
REPLY TO GROUNDS
Page 32
5 That in view of preliminary objection and para wise reply to the facts, it is evident that
applicant has no grounds to maintain this application.
The transfer and posting of an employee in the need of administrative exigency, is a well
recognized right of employer in the field of service jurisprudence and also in the light of legal
proposition reiterated by Hon,ble Court.
That it has also been held that even if a transfer order is said to have been made in violation
of any administrative instruction or order, same are not liable to be interfered unless mala
fide is proved. In this case, applicant has been transferred in administrative exigency.
That respondent organization is heading towards continuous decline on account of
superannuation retirements and voluntary retirements. Field Offices located in Gujarat and
Mumbai areas are facing acute deficiency to the extent of more than 40% of requirement,
whereas the field offices in Rajasthan area have only 22% deficiency as detailed below.
Sl No. Area Authorized Posted % Deficiency
Strength Strength
1 Mumbai 93 50 46
2 Gujarat 113 65 42
3 Rajasthan 117 91 22
That transfer of an employee is a normal incident of service and no government servant has
any right to be posted to a place of his choice.

Page 33
That organization of PCDA (SC), Pune has jurisdiction over a vast area of Maharashtra,
Gujarat, Rajasthan and MP having more than 100 field offices at various locations and
smooth functioning of these field offices is required to be ensured by judicious deployment of
manpower.
That services of the applicant also entail all India transfer liability and thus to minimize the
shortage of manpower in Gujarat/Mumbai area and also because of repatriation of the
officials serving in hard/tenure stations like Bhuj, Jamnagar, applicant was transferred to
the station having shortage of manpower.
The scope of judicial intervention in the matter of transfer of such employee is also limited.
Hon’ble Supreme Court in case of State of UP and Ors Vs Siya Ram & Ors (2004) 7 SCC 405
has been pleased to reiterate the position of law as under:-
“It is by now well settled and often reiterated by this court that no government
servant has any legal right to be posted forever at any one particular place since,
transfer of an employee appointed to the class or category of transferable post from
one place to other is not only an incident, but a condition of service, necessary too in
public interest and efficiency in the public administration.”
In Union of India Vs H N Kirtania reported in (1989) 3 SCC 445, Hon’ble Supreme Court
held that transfer of a public servant made on administrative grounds or in public

Page 34
interest is not open to Court’s or Tribunal’s interference. Relevant paragraph is
reproduced below.
“After hearing learned counsel for the parties we do not find any valid justification
for the High Court for entertaining a writ petition aginst the order of transfer made
against an employee of the Central Government holding transferable post. Further
there was no valid justification for issuing injunction order against the Central
Government. The respondent being a Central Government employee held a
transferable post and he was liable to be transferred from one place to the other in
the country, he has no legal right to insist for his posting at Calcutta or at any other
place of his choice. We do not approve of the cavalier manner in which the impugned
orders have been issued without considering the correct legal position. Transfer of a
public servant made on administrative grounds or in public interest should not be
interfered eith unless there are strong and pressing grounds rendering the transfer
order illegal on the ground of violation of statutory rules or on ground of mala fides.
There was no good ground for interfering with the respondent’s transfer.”
Hon’ble Supreme Court’s order in the matter of Somesh Tiwari Vs Union of India
reported in (2009) 2 SCC 592, is also relevant in this regard. Relevant paragraph is
reproduced below.
“Indisputably an order of transfer is an administrative order. There cannot be any
doubt whatsoever that transfer, which is ordinarily an incident of service should not
be interfered with, save in cases where inter alia mala fide on the part of the
authority is proved. Mala fide is of two kinds-one malice in fact and the second
Page 35
malice in law. The order in question would attract the principle of malice in law as
it was not based on any factor germane for passing an order of transfer and based on
an irrelevant ground, i.e. on the allegations made against the appellant in the
anonymous complaint. It is one thing to say that the employer is entitled to pass an
order of transfer in administrative exigencies but it is another thing to say that the
order of transfer is passed by way of or in lieu of punishment. When an order of
transfer is passed in lieu of punishment, the same is liable to be set aside being
wholly illegal.”
Further, another Hon’ble Supreme Court’s order, which is relevant to the case is in the
matter of National Hydro Electric Corporation Vs Shri Bhagwan Das & Others reported
in (2001) 8 SCC 574. Relevant paragraph is reproduced below.
“No government servant or employee of a public undertaking has any legal right to be
posted forever at any one particular place since transfer of a particular employee
appointed to the class or category of transferable posts from one place to other is not
only an incident, but a condition of service, necessary too in public interest and
efficiency in the public administration. Unless an order of transfer is shown to be an
outcome of mala fide exercise of power or stated to be in violation of statutory
provisions prohibiting any such transfer, the courts or the tribunals cannot interfere
with such orders as a matter of routine, as though they were the appellate
authorities substituting their own decision for that of management, as against such
orders passed in the interest of administrative exigencies of service concerned.”

Page 36
That in case of all India transferable services, the hardship resulting from the spouse being
posted at different station may be unavoidable at times. While choosing the career and a
particular service, the couple have to bear in mind this factor and be prepared to face such a
hardship if administrative needs do not permit the posting of both at one place or nearer
without sacrifice of the requirements of the administration.
That public interest always prevails over the personal interest and inconvenience.
It is relevant to submit that Pune, Ahmednagar and Nasik stations are facing more than 50%
of deficiency of manpower and further nearly 60 officials are due for retirement up to June
2018.
That the Hon’ble Tribunal has been conferred jurisdiction and authority pertaining to service
matter as defined under Clause (q) of Sec 3 of the Act of 1985, which clause contains a
restrictive scope of enumerated matters. Matter pertaining to transfer has been not included
in definition clause and more so transfer has not been understood by the Hon.ble Courts as
condition of service rather it has been described as incident of service not resulting in any
alteration of any of the conditions of service to his disadvantage. That present litigation is not
an adversarial litigation and the Hon’ble Tribunal being a creature of statute, may not be
having jurisdiction over the subject matter of this OA, hence OA is not maintainable and
deserves to be dismissed with cost. The respondents crave leave to urge other ground at the
time of hearing.
6. That contents of Para no. 6 of this application not admitted in view of the preliminary
objections and legal grounds.

Page 37
7. That averments contained in Para no. 7 of this application not admitted for want of
knowledge.
8. That in view of preliminary objection and Para wise factual reply, it is evident that applicant
is not entitled for any relief from this Hon’ble Tribunal much less including interim relief as
claimed in Para no. 9.
9. That averments contained in Para no. 10, 11, 12 of this application need no reply.
It is therefore, most humbly and respectfully prayed that the Original Application filed by
applicant may kindly be dismissed with cost, being devoid of merit and substance.
THROUGH COUNSEL For & on behalf of respondents
(Officer-in-Charge)
(BHANWAR LAL TIWARI)
Sr CGSC
Page 38
VERIFICATION
I, _______, S/O ________, aged about ___ years, presently working as Assistant Controller of Defence
Accounts in the office of PCDA (SC), Pune, do hereby verify that the contents of reply to the Original
Application are true to my knowledge based on the official records and legal grounds are believed to
be true as per legal advice of our Sr Standing Counsel. Nothing has been suppressed or concealed.
PLACE: ---------
DATED: ---------
DEPONENT
Page 39
Chapter 11
Audit Reports – Super Review/Performance Audit etc.
Purpose:
· IDAS Officers at the JTS/STS/JAG/NFSG level are assigned the duties of

conducting Super Review/Performance Audit of various units and formations
· Specific area of work is selected by the Higher authorities like H.Qrs. office/PCDA
or CDA and the task of conducting the review/audit is assigned to the IDAS
officers who will visit the unit/formation along with the team and carry out the
review/audit of the respective area of work and submit their reports to the H.Qrs.
office through PCDA/CDA as directed.
· Reports are submitted in suitable formats as deemed fit.
· It is a good practice to present the data collected at source in tabular form for
better analysis by higher authorities.
· Objections must be couched in a courteous/impersonal language
· When something cannot be substantiated, it need not be brought into the report at
all. Authority in support of objection should be quoted.
· Systems and procedures should be explained duly highlighting the lapses.
· Remedial action should be suggested.

Page 40
· Alternate proposals to streamline the procedures with a view to avoid recurrence of

the lapses should be suggested in the report.
· Performance of LAOs/RAOs will have to be examined.
· Pending audit objections of LAOs/RAOs may be included in the report if required.
· Report should be submitted within the time frame prescribed by the higher
authorities.
· Copy of the reports should be sent to the units and higher formations.
· Replies to be watched by the IA cell. If required the objections may be placed in

MFAI Report/IAR etc., under the orders of higher authorities.
· Results should be reviewed from time to time till final settlement.

Page 41
Example:
Super Review 2014-15 Name of the unit: HQ ____ Corps
Reviewing Officer: XYZ, IDAS Date of Review: 27.03.15
Employment of Conservancy Staff
1. Outsourcing of Conservancy services: It is seen that conservancy services have been

outsourced by entering into Contract Agreements with Private Parties for cleaning/
maintenance, at Military Station ______.
On scrutiny of the documents in respect of Contract concluded for the year 2014-
15, the following points have been noticed.
(a) IFA Command has categorically mentioned in the concurrence letter dated Jan 2014,
that Contract should be concluded with prospective period without any delay for the year
2014-15 with a view to ensure timely starting of the services.
(b) Technical Bids have been evaluated in the month of January 2014 and Commercial
Bids have been evaluated in the month of February 2014. But the case has been found
submitted to IFA (Corps) in the month of March 2014 and concurrence has been given by
the said IFA in the month of April 2014 for Rs. 2, 00, 20, 000/- for 11 months from
01.05.2014 to 31.03.2015 in respect of 175 conservancy Safaiwalas @ 400/- per day for
26 working days in the month (11 X 175 X 400 X 26 = 2, 00, 20, 000) as quoted by L-1
viz. M/s __________.
(c) However, the Contract has been concluded on 11th June 2014 for the period from
01.05.2014 to 31.03.2015, i.e. from retrospective date. Payment has been done
accordingly. But, Work order issued without concluding the contract is null and void.
Therefore, Expenditure of Rs. 24, 26, 000/- paid for the period from 01.05.2014 to
10.06.2014 is treated as overpayment and proposed to be placed under Major Financial
and Accounting Irregularities report. Copy of the authority under which Contract has been
Page 42
entered into with retrospective date and Muster Roll for the month of May 2014 may be
forwarded for necessary examination.
2. Arrears of Minimum Wages: An amount of Rs. 25, 43, 888/- has been claimed from
PCDA on 22.09.2014 for the period from 07/12 to 03/13 on account of difference of
minimum wages as decided by Labour Commission. Further, it is noticed that a letter has
been issued to M/s ____ seeking confirmation regarding payment of arrears to the
concerned employees. In fact, payment should have been made to employees in the
presence of representative of unit. Reasons for depositing the amount with Contractor
undisbursed for a period of 6 months may be intimated.
It may be ensured that no excess payment has been made to the Contractor and in
case excess amount is paid, the same may be got refunded immediately. Also, reasons for
fixation of lower rates may be brought out for examination at this end to take appropriate
view and avoid repetition of such cases.
3. Lack of competition: It is seen that Bids have been sent to 11 vendors in respect of
Contract for the year 2014-15. But only 3 firms have responded. Out of the three, one firm
has been technically disqualified. Steps may be taken to widen the vendor base in the best
interest of state by resorting to e-Tendering. Action taken in this regard may be intimated.
4. High percentage of Contractor’s profit: It is seen that Rs. 57/- has been quoted as
Contractor’s profit out of the total amount of 429/- (Per one labour per day), which is very
high when compared to the contracts concluded by other Station H.Qrs. in the near
vicinity. Being manning and services contract, which do not involve specific technical
skills either by the contractor or the persons engaged by him, percentage of profit is
expected to be minimum, which is not the case. Authority in support of the action taken,
copies of Tender Enquiry and SOP for Conservancy Contracts may be forwarded.
Civil Hired Transport
Sanctions for CHT are being accorded by HQ 12 Corps based on the indents
received from the user units in each case. After according sanctions, the same are being
sent to ____ ASC battalion for arrangement of vehicles and release of payments to the
concerned contractors.
5. Expenditure incurred on CHT in respect of Annual Event: - It is noticed that Army

annual event was conducted in the station in the months of April and May 2014. An
expenditure of Rs. 10 lakhs (approx.) was incurred on account of CHT for officers to attend
the event. On scrutiny of sanctions accorded in this connection, it is noticed that some of
the officers were provided vehicles for the period from 23-04-14 to 02-05-14 and some
other officers were provided for one or two days in between the sad period. Also it is
noticed that same vehicles (with same drivers) have been provided to different officers in
same period. For instance at Sl. No. 50, Vehicle No. RJ 19 TA 4253 was provided to one
Page 43
officer for the period from 23.04.14 to 02.05.2014. The same vehicle with same driver was
again provided to another officer at Sl. No. 63 for the period from 25.04.14 to 03.05.14. In
another case, vehicle No. RJ 19TA 5157 at Sl. No. 99, was provided one officer from
26.04.14 to 02.05.2014 and the same vehicle again at Sl. No. 111, was provided to
different officer for the period from 28.04.2014 to 02.05.14, with same driver. In one more
case same driver was shown as driver for two different vehicles on same date 09.04.2014
in respect of one officer from 08:00 am to 09: 00 p.m and in respect of another officer from
06:00 am to 12:00 Noon. In some cases, the officers in respect of whom CHT was
sanctioned used the vehicles for shorter/longer periods. It is felt that necessity for CHT
for indented periods is not being looked into while according sanction, as most the officers
are not using the vehicle for sanctioned period, there by resulting into utilization by other
officers for different purposes. It is felt that chances of double payment cannot be ruled
out in the system presently being adapted by the unit.
In this regard, the period of event conducted, Number of officers provided CHT,
amount incurred on CHT for the event and reasons for not exploring alternate
arrangements for vehicles from all the units in the station (being a big event conducted in
the station) may be intimated.
Further, it should be ensured that Contractors submit their bills in the

chronological order of utilization of vehicles and only one payment is made against one
particular sanction. Also, the mechanism adapted by the sanctioning authority to avoid
double payments may be explained.
6. Provision of AC Bus:- It is noticed that AC bus was provided to 09 officers from

WARCEN Chandi Mandir to attend alternate H/W how configuration run at a cost of
39600/- ( 8 hrs/80km @ the rate 4500/- of per day for extra hrs @ 160/- per hr.
In fact the bus was used only for dropping and bringing them back to respective
accommodation, keeping the vehicle idle throughout the day. Further the vehicle was held
more than the 8 hrs on all the days during the period from 21-04-14 to 28-04-14.
It is felt that Government transport could have been provided for dropping and
bringing back the officers to their accommodation by avoiding holding of the vehicle
without any purpose.
A similar case was also noticed where 11 officers were provided AC bus for
conveyance to attend GEB during the period from 05-04-14 to 07-04-14. Please refer to PV
No. 03 and 04 of 03-05-14 in this connection. It is suggested to review the policy of
providing such kind of transport.
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7. Moves beyond 1000 km distance :- As per the SOP on CHT pre sanction of the
command/IHQ is required to be obtained on each occasion where distance involved is
more the 1000 km. But in the following cases such sanction not found obtained.
(1) PV No. 02 dated 01-05-14 total km 1206 (13-05April 2014)

(2) PV No 02 dated 09-05-14 total km 1106 ( 18-19 April 2014)
(3) PV No 22/128 dated 17-06-14 total km 1153 (17-04-14)
(4) PV No. 02/07 dated 01-05-14 total km 1160 (04-04-14)
(6) PV No. 16/104/ dated 30-05-14 total km 1919 (02-05-14)
(8) PV No.11/88 dated 20-05-14 total km 1402 (04-05-14)
(9) PV No. 24/132 dated 18/06/14 total km 1115 (06-06-14)
Necessary action may be taken to obtain regularization sanction in the above

cases. In future, prior sanction/regularization of competent authority may be obtained in
each case without fail.
8. KMs in excess of estimates :- As per Contract Agreement 2014-15 a distance of

23900 km for out station for one way and 322300 km for both ways were estimated to be
covered in the financial year 2014-15. But it is seen that 303195 km has been utilized
during the year keeping over all limit intact. But excess usage has been done under one
way and local journeys. Sanction of Command HQ is required for excess utilization.
All such cases may be reviewed and necessary action may be taken. Further, it
may be ensured that estimates are prepared on realistic basis henceforth.
9. Local Journey – It is noticed that CHT vehicles are being provided to officers visiting
Jodhpur on routine basis. But these vehicles are being held idle throughout the day on
many occasions causing avoidable expenditure. Policy in this regard may be reviewed and
action taken may be intimated.
10. Car Diary of CHT Vehicles: - It is noticed that car diaries of CHT vehicles are being
prepared causally. Correction were found unattested in many cases as far as dates,
vehicles No., driver name, timings, and opening& closing km readings are concerned.
In this connection it is stated that car diary forms are very important documents
since they form the basis for releasing payments. Such documents should not be allowed
to tamper and no room should be given for over writings & corrections without proper
attestation by concerned authorities.
(XYZ)
Page 45
Jt. CDA
Performance Study Report
By
ABC, IDAS, ACDA
On
Recovery & Utilization of LPG Commission

Page 46
Authority: PCDA letter No. __________________ dated _____________
Mandate: To carry out a Study on Accounting and utilization of LPG Commission by Army
units & formations
Introduction: As directed by PCDA in accordance with the decision of CGDA H.Qrs office,
a study on Accounting and utilization of LPG Commission by some of the Army Supply
Depots/units located in the state of Gujarat has been done. Report is hereby submitted
for examination and necessary action.
Orders on the Subject:
1. GOI MOD Letter No. 58302/Q/ST 9/705/D (QS) Dated 18.02.91
2. DGS&T, QMG Branch, Army H.Qrs. letter dated 27.02.2001
3. GOI MOD letter dated 24.01.2007
4. CGDA letter dated 27.01.2009
5. IHQ MOD (Army) letter dated 24.01.2014
Important findings and Points to be considered
 Provisions of Government Orders on the subject have been found violated. Orders
in contrary to the provisions of Government orders have been found issued by
Executive Authorities without obtaining concurrence of Finance
 All the payment issue transactions have been made out of the purview of Internal
Audit. Executives are doing Payment Issues of LPG cylinders out of Regimental
Funds and crediting the LPG Commission into the Regimental Accounts instead of
Public Accounts
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 Man Power, Land and other amenities are utilized from the Government sources,
but wealth created out the transactions is taken into Regimental Funds
 There is a need to review the entire structure of distribution of LPG cylinders.

Distribution of LPG by Army authorities may be completely stopped in the peace
stations
Main Report
Basic Order: GOI MOD Letter No. 58302/Q/ST 9/705/D (QS) Dated 18.02.91
Content in Brief:
 Army units (authorized) purchase LPG cylinders in bulk from oil companies.
 Dealership commission is given to the dealer (i.e. unit)
 Part of the commission (60%) is reduced from the bills straight away.
 Balance 40% commission is drawn by the unit, which is meant for utilization on
operating cost like Repair of LPG appliances, Purchase of stationery, part time
help/extra duty pay to run the agency, Inventory control, Accounts and any other
miscellaneous expenditure as approved by Executive Authority
 In addition to the commission, additional charges can be collected from the

consumers in the case of Payment Issues as decided by the Executives.
 Balance 40% Commission and the additional charges levied (if any) are supposed
to be credited to Public Account i.e. “LPG Free/Payment Issue Account” by the
Supply Depots/FOL Depots operating the contract.
 Unspent balance of the amount in the account at the end of the financial year is
supposed to be credited to Government through MRO for adjustment by the
PCDA/CDA concerned
 These accounts have to be submitted for audit by CsDA i.e. LAOs

Page 48
Point of dispute from the year 2001-2007: DGS&T, QMG Branch, Army H.Qrs. vide
their letter dated 27.02.2001 addressed the Army Commands, categorizing the LPG
agencies into 3 types and issued the following accounting instructions:
a) Agency Operating free & Payment issue LPG will account for all the commission in the
LPG Free/Payment issue account i.e. 40% of the commission for Free issue LPG drawn
from S&S Imprest and full commission from sale of payment issue LPG. Account to be
presented to LAO for audit.
b) In the case of Agency operating only Free Issues LPG, 40% of the dealership
commission drawn from S&S Imprest to be deposited in LPG Free/Payment issue account.
Account to be presented to LAO
c) Agency operating only Payment Issue LPG may be treated as regimental institute &
audited according to the norms of Regimental Fund.
The above decision was challenged in audit by CGDA. Therefore, clarification was
issued by GOI MOD vide their letter dated 24.01.2007 addressed to Chief of Army Staff. It
was clarified that all Supply/FOL Depots/Executive Authorities, whether running Free
Issue, Payment Issue and Free/Payment Issue, the quantum of dealership commission so
accrued will be separately account as a Public Fund Account and utilized on the
authorized items to run Gas Agency and balance amount as on 31st of March has to be
deposited in the Government treasury and audit will be done by CDA as any other
auditable document. This order has been issued strictly in accordance with the basic
Government order dated 18.02.91.
Accordingly, CGDA has asked (vide letter dated 27.01.2009) all the Regional CsDA
to include the amounts not credited to Government in the MFAI/IARs wherever not
complied with by the units/formations. Since then, lot of audit objections have been
raised in Internal Audit on the LPG commission as the units and formations have been
following the incorrect procedure stipulated in the disputed letter dated 27.02.2001. This
action by Internal Audit had put a considerable pressure on the Executive Authorities.
Page 49
Ideally, the clarification issued vide Government order dated 24.01.2007 should have set
the things in the right perspective. But the issue could not be resolved.
Deviation consistently pointed out in Internal Audit: IHQ MOD (Army) vide their letter
dated 24.01.2014 issued instructions to all the Commands to close down all the payment
issue gas agencies which were being run by ASC units either exclusively or along with free
issue agencies. The free issues of LPG were asked to continue. Further, based on
necessity, the formation H.Qrs./other units that were required to carry out payment
issues of LPG would open separate gas agencies as purely welfare Regimental ventures
and amount would be treated as Regimental fund. Cases for one time waiver of audit
objections were supposed to be taken up by the Command HQrs.
In fact, there was no necessity to change the well prescribed/established practices

in accordance with the Government order dated 18.02.91. Reasons for issuing
inconsistent orders in Feb 2001 (clarified by GOI in 2007) and again in January 2014 are
not found explained to the satisfaction of Internal Audit till date.
It is noticed that IHQ letter dated 24.01.2014 has paved a way to open fresh gas
agencies for payment issues by the Supply Depots across the country and knowingly/
unknowingly taken away the subject matter beyond the purview of Internal Audit, by
sponsoring the entire amount of payment issues from the Regimental funds and thereby
diverting the wealth created out of business into Regimental Assets instead of public
funds. A scope for a different argument has been created like when the sum required for
procuring payment issue items is entirely sponsored out of the regimental funds, why the
wealth has to be credited to Public Fund.
Views of Internal Audit as against the above pattern:
 There is no necessity to differentiate the Free and Payment Issues at all
 Rebate/Dealership commission is originally sanctioned for Cook Houses

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 Part of the dealership commission is meant for running the internal distribution
agency in smooth manner and not for profit making
 There is no extra subsidy declared by the Government for individual Officers/

PBORs in Indian Army and their equivalent in other Forces for domestic issue
 In case, the Executive authorities want that payment issues should be separately
dealt as a part of Regimental Activity, then they should moot a separate proposal
for the same.
 Activities carried out as per the IHQ letter dated 24.01.2014 have to be categorized
as Commercial activities without payment of any kind of tax
 Land/Manpower and other amenities like transport etc. are utilized from the
Government sources. Therefore entire amount of unspent commission should be
deposited into Government Account.
Unit wise observations: Individual observations in the study are enclosed separately
each of the ASC Depots for necessary action please.
Concluding Remarks:
 Rs. 40/- per cylinder is received as commission for each payment issue. Say out of
15 lakhs of Armed Forces, 10 lakhs personnel/officers reside in accommodation
other than unit lines. Even if a family uses one cylinder in two months, the
monthly consumption of payment issues works out to 5 lakhs cylinders. Therefore
an amount of Rs. 2 crores (500000X40) per month i.e. 24 crores per anum can
be said to have been credited to Regimental fund instead of Public funds. Hence a
loss of 384 crores (16 years @ 24 crores) approximately incurred by the State.
 It would be better to get the activity completely stopped in the peace stations,
where many Private Gas Distribution Agencies are functional and they can very
well give delivery to home.
 In case, it is considered that it is not feasible to deliver up to the home due to

security reasons, delivery can be taken at the Entrance gate of the unit and
internal distribution may be done by the Executive authorities by making use of
Government transport available with the unit. The feasibility of implementing the
Page 51
above suggested procedure in the field areas may also be explored depending upon
the location subject to availability of Private Distribution agencies.
 The proposal will not only help in resolving the long outstanding audit objections,
but also helps in generating employment outside and thereby relives Army from
being assigned with the duties which are not relevant to their spheres of duties
and enables them to focus on their real mandates.
 The subject matter under the scope of study is indeed not limited to LPG
commission only, but has relevance to the similar irregularities in the case of
Commercial Complexes, Function Halls, Officers Mess, Guest Houses, Golf
Courses, vegetables shops and cafeterias etc. undertaken by Armed Forces in the
name of Regimental Welfare Activities.
 Regimental Activities will have to be clearly defined with their scope/limitations

and commercial activities by Armed Forces Authorities may be completely stopped.
 Welfare measures out of Government Funds to be totally separated from the

welfare activities out of Regimental Funds.
 AFHQ/IHQ may be advised not to issue orders on matters involving Government

Revenue without the concurrence/consent of Integrated Finance/MOD (Fin).
(ABC)
ACDA
Page 52
Chapter 12
O&M Inspection Report
Purpose:
 To ensure that the sections of Main Office/Sub Offices are working as per the
prescribed procedure and adhering to the rules and regulations issued from time
to time and checks & balances laid down are sufficient.
 To find out the general/specific lapses/deviations in the systems and procedures

followed in practical.
 To find out and suggest alternate ways and means to achieve the objectives.
 To set the systems and procedures right and to establish uniformity across the
organization.
 Report is divided into two parts viz. Part I - Major deficiencies, which are supposed
to be brought to the notice of PCDA/CDA and the Head of Office, requiring
immediate action & Part II – General observations.
 It is a good practice to present the data collected at source in tabular form for
better analysis by higher authorities. Authority in support of the observation
should be quoted.
 Observations must be couched in a courteous/impersonal language
 Systems and procedures should be explained duly highlighting the lapses.
 Remedial action should be suggested
 Alternate proposals to streamline the procedures with a view to avoid recurrence of

the lapses should be suggested in the report.
Page 53
 Report to be sent to the office/section after approval of PCDA/Addl. CDA within

the time frame prescribed.
 Replies to be watched and Results should be reviewed from time to time till final
settlement.
Example:
Office: Area Accounts Office Period of Inspection: 2012-13
Inspection Team: Date (s) of Inspection: 03.03 to 07.03.2014
Shri A, AO
Shri B, AAO
Shri C, SA
Shri D, SA
Date (s) of Review: 05.03.14 to 07.03.14
Reviewing Officer: Smt. XYZ, IDAS, Addl. CDA
Part I: Major Deficiencies/Items requiring immediate action
1. No Budgetary control: Watching of Allotments and expenditure in respect of TA/DA, LTC and
Medical expenses code heads in respect of Defence units is not being done at all for the past so
many years. Unit wise allotment under these heads may be obtained for the ensuing financial year
and expenditure is monitored against the same.
2. Rupees 3 to 4 Lakhs (approx.) has been admitted on account of Encashment of EL claims

during LTC, but corresponding LTC claims are not found received/adjusted in respect of Non DAD
personnel. Details are given in the list of observations of Pay /T Sections. Pay Groups need to
forward a monthly report on claims passed by them to T section to watch for the LTC claims. In
case the claims are not submitted in the prescribed period, T section has to intimate the same to
enable the Pay Groups to recover the amount immediately. A thorough scrutiny may be conducted
and action taken may be intimated.
3. Post Audit of ACG bills is not being done up to the required extent. No concrete observations
have been raised by the office though the units are purchasing/incurring expenditure on
unauthorized items. The area of work needs to be strengthened and action taken to be intimated.
Further, Pre Audit of bills pertaining to ACG in respect of units headed by Brigadier and above is
being passed by the office and, some of the sub grants under ACG like Legal expenses etc. are also
being handled by the office. In the absence of any orders from main office authorizing this, it could
not be established whether Main Office has delegated the powers.
Page 54
4. No Office Automation. It is noticed that OA has been discontinued for the reasons not known
to the Inspection team as no documents could be produced in this connection. The office is
adapting the age old manual procedure though adequate system support is provided to them.
However, the systems need to be up graded for effective implementation of advanced versions of OA
modules. The problems related to Internet Connection and WAN/LAN need to be taken at
appropriate level to achieve the desired objective.
5. Recovery of Transport Allowance during TD Moves: It is noticed that TPAL is being admitted
by the office in respect of civilians during the period of TD to outstations, though the period of
absence from the duty station is beyond one calendar month. The same lapse has been noticed in
AN Pay also. The details have been mentioned in the specific observations under the concerned
sections.
6.MACT Payments: It is noticed that payments in accordance with MACT orders are being released
by the office, based on the sanction issued by CFA, without any audit report being rendered. The
matter requires thorough examination and needs to be taken up with M section & IA cell of Main
office and guidelines in this regard have to be obtained.
Part II: Section wise observations
Administration Section:
1. Dead Stock items: Stock Taking has not been found conducted in 04/13. Only formal entries are
made in the register. Also many items retrieved from old office building are lying dumped in the
store room of the office. A comprehensive report may be submitted to AN section of Main office and
action may be taken to utilize/dispose the items as directed by them. Action taken report may be
forwarded.
2. Cash Book: All the cash payments are to be reflected in the cash book. Instead the office is
debiting the cash payments in lump sum and recording the details of disbursement in another
register.
3. Security Register: Surprise check of office building, Guest House and DAD Quarters needs to be
carried out as per the prescribed procedure. Directions of Main office may be obtained and action
may be taken accordingly. A confirmation regarding the establishment of desired procedure may be
given. Also the Security register maintained at the main gate needs to be submitted to SAO (AN)/
AAO (AN) at periodical intervals.
4. Stationery Register: Sanction of Main office is being obtained whenever items are purchased in
bulk. No board is found constituted on such occasions to ensure that the items have been received
as per the supply order(s). Further, issues are struck off in bulk without obtaining the indents from
sections. The areas of work need to be more transparent and requires adherence to prescribed
procedures. Action taken report may be submitted in this regard.
5. Dead Stock of New Buildings: Board of Officers has been constituted and all items may be taken
on charge. The same needs to be reconciled with reference to the CA concluded by CCE (R&D). A
Page 55
confirmation may be sent to Main office AN Section and action taken may be intimated to this
section.
6. Updating of Registers: The following registers may be opened/updated and confirmed
(a) Register of Reports & Returns
(b) Register of D.O. letters/Confidential letters
(d) Register of Buildings
(e) Register of Books: Stock taking as on 04/13 not found done
7. CAT Cases: The status of CAT/Court cases may be reviewed and SOCs in respect of payments
released provisionally may be watched since no such mechanism is found established. There are 3
cases pending with the office as per the records of Pay Tech section of Main office. But the details
are not available in the office. The same may be obtained from Main office and progress may be
regularly watched.
8. Dead Stock items – Computer items: As per the register, two servers are held in the office. But it
has been reported to EDP centre of Main office vide letter dated 03.02.2014 that only one server is
available. Reasons for the same may be explained.
9. Form 24 G & Q: Uploading of IT reports is being done through private agency viz. M/s ABC. Rs.
16000/- (approx.) has been incurred in this regard in the last one year or so. It may be intimated
whether the same is authorized by Main Office.
AN Pay Section:
10. It is noticed that TPAL is being admitted by the office in respect of DAD personnel during the
period of TD to outstations, though the period of absence from the duty station is beyond one
calendar month. For ex: Kumar Jha of LAO (A), Vyas of RAO (MES) and Sharma, SA of RAO (MES)
have been paid TPAL. The total amount (approx. 6000) of TPAL along with DA may be recovered
and intimated. The point may also be noted for compliance in future.
11. Shri Mahesh, AAO has been transferred to other PCDA. LPC has been issued and the
outstanding balance of HBA Rs. 195770/- has been intimated. But DIDS is not found originated
against PCDA (P). All similar cases may be reviewed and action taken may be intimated.
12. Shri Singh, Aud has been transferred in. Outstanding balance of Rs. 21,868/- on account
Motor Cycle Advance is being recovered from the Regular Pay bill. DIDS has not been found
responded in this regard. Another case of Shri Ambesh has also been noticed. All similar cases may
be reviewed and action taken may be intimated.
13. NDC from AAO BSO: It is noticed that LPCs are being issued without obtaining the NDCs from
the concerned AAOs BSO, which led to non recovery of LF and Allied charges in respect of Shri
Yadav, AO and Shri Kumar, SAO who have been T-out to other organizations. The demands may be
intimated to the concerned audit offices and acknowledgements may be obtained. Action taken may
be intimated.
Page 56
14. LPC In/out Register: It is noticed that entries regarding LPC out/in are made at the time of
Issue/receipt of the same, which is not as per the prescribed procedure. It is stated that whenever
an individual is posted out, entry should be made in the register, subsequently the relevant
columns should be up dated and acknowledgment has to be watched. On receipt of
acknowledgement, the item should be rounded off. Similarly, whenever an individual reports in the
organization, entry should be made in the LPC In register. On receipt of LPC all the relevant
columns have to be up dated and acknowledgement has to be issued and recorded therein.
15. Advances on account of LTC, Permanent Transfers are paid by the office. Adjustment claims are
submitted to M.O. Intimation regarding the advances paid is sent to Main Office for which
acknowledgements are not being received and advances are not getting linked in the Register.
Thorough procedure may be established henceforth in this regard.
16. Registers of NPS Subscribers, EOL/HPL may be opened and up dated.
17. It is noticed that copy of Punching Medium is not found enclosed to any of the bills passed in
audit. The same may be enclosed henceforth.
18. Updating of Registers: The following registers may be opened/updated and confirmed
(a) Payment Authority Register
(b) LPC-In/Out.
(c) DIDS Register.
(d) NRC Register with reference to voucher control Register
Pay Tech/NPS:
19. Part I Office Orders are not found filed serially. Missing orders are not being called for from the
concerned units/establishments. The same may be obtained and filed serially.
20. PRANs not found received in respect of individuals at Sl. Nos. 337,364,365,366,406 and 415.
The same may be called for from NSDL authorities and watched. In fact some of them have been
rejected by NSDL. The office may ensure that all the necessary fields are filled in and verified by all
the concerned to avoid such rejections in future. Also there is a huge delay on part of the units in
forwarding the applications for allotment of PRAN which may be taken up with the concerned. For
eg: Sl. 502, 504-523 (Almost 6 months delay)
21. Rs. 5466/- is outstanding for up loading for the month of 02/14. Reasons may be analyzed and
the amount may be up loaded before the closing of financial year since no balance should be lying
outstanding under the NPS code heads as per the instructions of H.Qrs. office.
NPS Reconciliation Register may be opened and up dated. The TEs operated vide Nos. 3 of
13/03 and 20 of 7/13 may be verified for correctness.
Page 57
22. As per the Records of Accounts Section, 3 DIDs are outstanding in the office. But no such
record is available either in AN Pay or Audit sections. The same may be reconciled and necessary
action may be taken.
Disbursement Section:
23. It may be ensured that e-payments are implemented up to the maximum possible extent.
Pay Sections:
24. LPC out Registers: It is observed that acknowledgements for LPC in respect of following
individual are still awaited. Necessary action may be taken and receipt of the acknowledgements
may be intimated.
Pay I:
CWE (P) Sl. No. 42,46,47 & 48
GE (S) Sl. No. 49
GE (AF) Sl. No. 22 to 28, 32
GE (P) Sl. No. 41
GE (AF) Sl. No. 52,54,55 & 56
GE (A) Sl. No. 39 & 40,
GE (AF) SL. No 47,48,45,53
GE (N) Sl. No.40,39 43 to 45 47 & 48
GE (A) Sl. No. 34 to 36, 38
Pay-II: Sl. No. 122,124,132,133,137,141 & 144 147 to 149 157,174 of Army Units.
25. LPC in Register: A similar review may be carried out and necessary action may be taken to
issue the acknowledgements to the concerned offices wherever the same are pending, on priory
basis to avoid correspondence.
26. Fd. Wksp. Coy EME - Bhati: The unit authorities vide their letter No. 50601/NIP DT
08/06/2011 intimated that as the original application filed by above named individual has been
dismissed by Honorable CAT bench vide order dated 09/05/2011, Rs. 52,637/- has to be recovered
@ 2/3 of the net salary. Only two installments of Rs. 18,000/- each have been recovered during
07/11 and 08/11. No further recovery has been done. Reasons for non recovery of balance amount
could not be explained.
Page 58
Further, Festival Advance Rs. 3,750/- has been paid to the individual vide voucher No.
5060/NAP/19/2011-12 DT 01-10-2011, but no recovery detail are available in demand register.
Action taken may be intimated.
27. Stn HQ Tuition Fee Register - Sh. RAJU RAM: It is seen from the above register that Rs.
28,269/- has been noted for recovery as the tuition fee for third child was erroneously paid. The
same may be verified and recovered.
28. MH - Tuition Fee Register - Kishore (Washer man): Family particulars of the above individual
may be obtained from the unit authorities on priority basis. It is observed that the individual has
claimed tuition fee twice in respect of his son Harsh during different periods & different standards/
classes. Over payment Rs. 26,482/- will have to be recovered immediately.
29. 177 MH - Smt. Shanti (Safaiwali): GPF Temporary advance amounting to Rs. 87,000/- has been
paid to the individual in April 2011, subject to recovery in 29 installments. However as per the
details in demand register 30 installments have been recovered. Therefore excess recovery of Rs.
3,000/- may please be verified and refunded if necessary.
30. Stn HQ X:
Sh. Kakka:- GPF Temporary advance amounting to Rs. 14,000/- has been paid to the individual in
September 2012, subject to recovery in 14 installments. However 16 installments have been
recovered.
Sh. Murli Dhar:- Temporary advance amounting to Rs. 38,000/- has been paid in November 2011
subject to recovery in 19 installments. However 20 installments have been recovered.
Sh. Prem Chand:- Temporary advance amounting to Rs. 10,000/- paid in March 2011 subject to
recovery in 10 installments. However 11 installments have been recovered.
The above cases may be verified and excess amount recovered may be refunded.
Smt. Guddi:- Temporary advance amounting to Rs. 96,000/- has been paid to the individual in
December 2009 subject to recovery in 24 installments. But only 23 installments have been
recovered. Balance of Rs. 4,000/- may be recovered.
31: Temporary GPF advance: It is observed that temporary advances for the purpose of addition/
alteration of house/ancestral house, purchase of plot are being admitted in contravention to the
rules.
For Example: MH Sh. Gurunaam Singh Rs. 40,000/- alteration work of house.
Smt. Verma Rs. 1,50,000/- alteration work of house.
Stn. HQ Y: Sh. Ramesh Lal (conservancy) Rs. 1,50,000/- construction of house
Sh. Shanti Lal (conservancy) Rs. 1,40,000/-
Sh. Kalu Lal (conservancy) Rs. 96,000/-

Page 59
Smt. Geeta Bai (conservancy) Rs. 70,000/-
32. Leave Encasement Register: It is noticed that a no. of individuals are claiming encashment of
leave on LTC and are being paid, but they are not proceeding on LTC. List of the individuals in r/o
whom the claims have been admitted in audit may be endorsed to T Section for linking with LTC
claims.
33. Final settlement of GPF : It is observed that final settlement cases in r/o deceased have been
received at belated stages. The units may be advised to submit such cases on top priority bases (for
ex. S.I. No. 111,124 & 148)
34. GE MES XXXXXX Sh. Narpal (Safaiwala): It is seen from the demand register that Rs. 21,000/-
has been paid to the individual during October 2013. But no recovery entry is found in the demand
register.
It is also noticed that temporary advance was paid and demand has been transferred to
new register with a note that 9 installments to be recovered, but recovery of 6 installments has
been noted in demand register.
Reasons may be explained.
35. TE Register TR No. 10 of 07/2013. MRO on account of ID card compiled to Code Head
01/231/02 as (-) Charge which is required to be compiled to 01/575/30 as (+) Receipt.
36. Rent Bill Guard file: It is observed that acknowledgments are not issued to the concerned
AAOs BSO in most of the cases. The same may be issued and confirmed.
37. AGE (I) MES YYYYYY Sh. Chobisa: The individual was on leave during 26/11/2011 to
24/03/2012, therefore not entitled for TPTL for the month of January and February. Confirm the
recovery action.
38. GE (AF) Sh. Ram (Chowkidar): Festival advance of Rs. 3,750/- was paid to the individual vide
DV No. 1012 of 03/2012. As per the AAO letter P/I/1103/Corr DT 25-02-2014 the individual was
directed to remit the amount in the treasury along with the interest @ 11.8%. The case may be
verified for correctness and recovery may be done.
39. GE (P) MES No. AAAAAA Pal Singh (Peon): In case of temporary advance (GPF) is required to
be recovered from the next month in which the advance has been paid. In the above case the
advance was paid in April 2013 whereas the recovery was started from December 2013.
Commencing the recovery at such a belated stage needs explanation and should be avoided in
future cases.
T Section:
40. The following demands are lying outstanding on account of LTC & TA/DA
Page 60
Name Unit DR No./P.No. Amount

T M Premkumar GE D- Page-189 43000/-
Prakash Jaiswal CWE A-Page -194 100000/-
JR Prajapati SDO DEO Misc-DEO P-71 30000/-
Action may be taken to recover the above demands including penal interest.
41. The following debit memos (Minus claims) are not found intimated to pay sections for recovery
either through pay bill or MROs not found received.

OP Mathur AE CWE(P) A page-78 1745 TA/DA
VC Agarwal AEE GE(P) A page-40 15580 LTC
Hare Ram R/Mecg GE (AF) B page-86 789/- LTC
K Srinivasan UDC AGE(I) D page-165 651/- LTC
MohanLal MTD AGE (I)R&D E page-107 10981/- LTC
JC Barkar JE GE(AF) F page-41 789/- LTC
NR Wanjari LDC GE (A) G page-104 2737/- TA/DA
JS Shekhawat 224 224 ABOD p-96 3180/- LTC
Page 61
42. The following demands have been intimated to Pay Groups for which acknowledgements are not
found noted.
PS Jaisawal EE CWE(P) A page-53 7464 TA/DA

Narayan Kachwa GE(MH) A page-186 1519 TA/DA
Radheshyam GE (EP) A Page-22 1604 LTC
Anil Agu GE (A) B Page-176 715 TA/DA
Bhagirathi Pani CE H Page- 6 44476 TA/DA
Bhagirathi Pani CE H Page- 6 5987 TA/DA
B L Jangidy CE H Page-7 32420 TA/DA
P R Aseri CWE(A) C Page-76 1843 TA/DA
Sohan Lal GE D Page-46 185 TA/DA
Abdul Rashid GE D Page-59 1775 TA/DA
K R Mishra GE (A) E Page-21 5055 TA/DA
K R Mishra GE (A) E Page-21 3875 TA/DA
Nek Mohd GE (A) E Page-69 2600 TA/DA
V Gopinath AGE (I) R&D E Page-87 2700 TA/DA
G P Sharma AGE (I)R&D E Page 106 2824 TA/DA
G P Sharma --- do ---- ---do--- 2843 TA/DA
M R Bhalker AGE (I) G Page-142 2454 TA/DA
A K Arora 224 224 Page-69 737 TA/DA
Jitender Gaur 224 224 Page-99 2004 LTC
Narender Kumar 224 224 Page-174 6440 TA/DA
D S Rathore 224 224 Page-178 1080 TA/DA
The same may be obtained and up dated.
43. Shri. Pani SE P No 4 of CE : LTC advance has been passed for Rs.177800/-. Adjustment claim has
been passed for Rs. 109898/-. But balance is not yet recovered. Reasons for the same may be explained.
44. It is seen that Demand Registers are not being reviewed periodically and the demands are not being
intimated to the units though the due dates are over in some cases. The same may be ensured.
45. Pay sections have admitted the claims on account of EL encashment during LTC. But corresponding
LTC advances/claims have not been submitted to T section. The cases may be reviewed and recovery
Page 63
46. Recovery of TPAL during TD: It is noticed that TPAL is being admitted by the office in respect of
civilians during the period of TD to outstations, though the period of absence from the duty station
is beyond one calendar month. The details are given below:
Name Unit Period Amount

Balamurugan X 21.07 to 03.09.12 1320
Mustafa X 26.03 to 08.05.11 1208
B.K. Kumar X 28.02 to 02.04.11 1160
Bhaleram Nilesh X 09.01 to 13.03.11 1264
Fund Cell:
47. There are 3 GPF negative balance cases. On scrutiny of the cases the following points have
been noticed.
(a) Shri Singh, (-)3000/- : The case has come up on closing of the financial year. Subscription for
one month stated to have been deducted has not been deducted in fact. This led to overpayment at
the time of retirement of the individual. Matter needs to be taken up with the unit to get the
amount deposited.
(b) Shri Sharma (-) 1082: Similar to the above case. MRO for Rs. 1082/- has been received.
(c) Shri Prakash (-) 1082: This is due to non verification of paid DV by pay section. Rs. 3000/- has
been shown as subscription during March 2013. But Rs. 2000/- has only been recovered in the
pay bill. Matter needs to be taken up with the unit authorities to get the MRO and also to be noted
by the officers and staff to ensure that such cases are not repeated in future.
Misc section
ACG- Post Audit: It is observed that post audit of ACG Expenditure Statements is being carried
out in a routine manner, owing to which the following points could not be identified during the
course of post audit.
48. Expenditure incurred on works supposed to be carried out by MES: The following works
have been met out of ACG, which should have been carried out by MES.
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may be done in case the claims are not found received.

Name Unit Sl. No. in NRC Reg. Amount
Haridas X 226 5946
SS Rawat X 326 13479
Jarry Singh X 377 4524
JP Swamy X 239 12467
SP Soni X 340 8503
Mangala Ram X 241 5451
BC Sable X 322 8233
Shyam Lal X 247 4213
Zahroo Khan X 308 5180
Sonu X 361 6894
Suresh Chandra X 362 9928
Bhairav Singh X 384 9750
VK Shetty X 330 9403
MK Sharma X 342 14096
JP Swami X 239 12467
Narendra Kumar X 244 4824
GR Chowdhari X 350 5951
MS Jodha X 361 7836
Satish S Gurav X 252 8366
NK Rai X 333 11122
Damodar Prasad X 341 12213
Bijendra Mathur X 347 12684
Kana Ram X 348 7724
Ramvtar Sharma X 396 12629
SL Khatwani X 396 (A) 11296
Jasraj Daiya X 377 4524
Ram Swaroop X 337 6651
MB Sukumaran X 345 12455
Sohan Pal X 348 5659
JR Singh X 358 4734
Birbal Singh X 348 10507
Ratan Lal X 350 5400
Kan Singh X 306 5430
Hanuta Ram X 317 8992
SL Sharma X 365 8616
Anuram Cowdary X 369 11220
Total 308867
Page 64
(a) 16 Guards expenditure statement vrs no. 277 dated 05.03.2013 amounted to
10,000/- purchased chuna bags and snowcem bags worth 4750/- for which
NAV from MES not obtained.
(b) 16 Guards expenditure statement vrs no 520 dated 23.03.2013 purchased

sand bags 1000 worth 25,000/- which is not authorized under ACG.
Matter may be taken up with the executive and action taken may be intimated on receipt of
reply from them.
49. Irregularities in Quotations/Market Survey Reports/Procurement:
The following irregularities were observed which raise doubts about the seriousness with
which the tendering/procurement exercise has been carried out.
It is noticed from Vr. No. 6486 dated 12.02.2013 for Rs. 15,000/- in r/o Armd Regt on
account of purchase of Damask Table cloth that the original and duplicate tax invoices are
enclosed along with the bill.
It is noticed from Vrs. No. 6491 dated 26.02.2013 for Rs. 22,000/- in r/o Armd Regt that
the quotation were called for Refrigerator without any specification about the capacity in litres. It
is not understood how the suppliers have quoted the rates in the absence of any specifications, and
accepted by the CFA. The matter may be taken up with the unit authorities and intimate the
action taken in this regard.
It is noticed from Vrs. No. 416 dated 27/01/2013, that quotations have been called for by
16 Guards for AC 1.5 Ton LG. apart from the fact that procurement of AC is not authorized, calling
for quotations in respect of a particular brand is against the provisions contained in DPM.
Quotations shall contain only specifications, and should not endorse any brand/make name.
Further, refer to Vr. No. 22 dated 31/05/2012 on account of purchase of 1.5 Ton LG AC, which is
not authorized under ACG and procurement procedure not followed as per DPM. Further, it is
noticed that VAT has been charged by the same supplier at different rates at 14% and 5%
respectively. The same may be taken up with the unit and action taken in this regard may be
intimated.
It is seen from the bills of HQ Corps that the CST is being prepared without dates and
statement is prepared without the grand total of items, which makes difficult to arrive at the lowest
bidder.
Refer to voucher No. 3743/warcen/acg dated 12/2/2013 on account of procurement of 2

wooden lockers for mobile phone at the cost of 20,000 each amounted to 40000 not covered under
ACG and also not justified.
It is observed from the HQ Mov Cont Group PV No. 50 dated 31.01.2013 news papers and
magazines worth of 14,583/have been purchases under ACG, which is not authorized and should
have been done through Library Grant.
Page 65
MED REGT.
Please refer to Vrs. No. 213 dated 30/01/2013 amounted to 25,000/- and Vrs. No. 22
dated 16.06.2012 for an amount of 24,995/- on account of purchase of Paints. Paint is an
ordnance item and needs to be obtained from Depot, as such procured under ACG, without
obtaining NAC from the Ord. depot is unauthorized.
PV No. 13 dated 12.6.2012 desert coolers 8 purchased for Rs. 25000
This is a clear cut case of splitting up of powers to bring the items under the powers of CFA
and thereby to avoid the necessity of obtaining the approval of higher CFA.
Armd Regt.
PV No. 6462 dated 12.1.2013 curtain rods 4 for an amount 18000/-
PV No. 6468 dated 29.1.2013 curtain rods 4 for an amount 8700/- and
PV No. 1463 dated 23.1.2013 curtains for an amount 24600/-
PV No. 1467 dated 28.1.2013 curtains for an amount 15000/-
and thereby to avoid necessity of obtaining the approval of higher CFA.
PV No. 354 dated 08.08.2012 centre table 1 at the cost of 4000
PV No. 354 dated 08.08.2012 side table 6 at the cost of 12000
PV No. 367 dated 10.08.2012 study chair 2 at the cost of 9000
PV No. 378 dated 13.08.2012 study table 2 at the cost of 21000
PV No. 390 dated 15.08.2012 office chair 4 at the cost of 17200
PV No. 715 dated 19.08.2012 side table 12 at the cost of 22800

Page 66
and thereby to avoid necessity of obtaining the approval of higher CFA.
Please refer to Vr. No. 6478 dated 31.01.2013 purchased Panasonic fax machine and 6500
dated 28.02.2013 SLR 1100 D Camera at the cost of 13750 and 24500. Items could have been
procured from authorized suppliers instead of general supplier. Purchase of SLR camera is also
not justified under ACG.
It is noticed from Vr. No. 6486 dated 12.02.2013 for Rs. 15,000/- purchase on account of
Damask Table cloth that the original and duplicate tax invoices are enclosed along with the bill,
which raises doubt on the propriety of the purchase. The same may please be taken up with the
unit and action taken in this regard may be intimated.
PV no. 241 dated 08.03.2013 Purchase of Pillow covers 5 for duty room at the cost of 750
each amounting to Rs. 3700 by Armd Regt, seems to be abnormally high and needs justification.
It is noticed from PV No. 217 dated 29.10.2012 purchase of Dressing Table for an amount
of 8500 that the dates have been found altered on each quotation, supply order, cst, crv, and
sanction, which is highly irregular and needs through investigation. Reply in this regard from unit
may be intimated.
Coy ASC Supply: It is seen from the expenditure statement July – September 2013 that payments
(Rs. 570000/-) on account of casual labour employment have been made. It requires confirmation
whether IFA concurrence has been obtained in this regard.
50. Expenditure statements:
During review, some of the expenditure statements submitted by the Units were sample
checked and it was found that the expenditure incurred against advances drawn are not linked in
the register and in some cases accounts are not being submitted regularly by the units no action to
call for pending expenditure statements has been taken.
StationHqrs payment made Rs. 3,53,200 for FY 13-14. No exp. Statement
Armd Regt allotment released Rs. 10.10 lakh for FY 13-14. No exp. Statement
Corps pro unit allot. Released Rs. 2.77.000 for FY 13-14. No exp. Statement
Arty Bdg. Allot. Released Rs. 6,65,000 for FY 13-14. No exp. Statement
Fd. Wk sp coy eme allot. Released 1.6 lakh for FY 13-14. No exp. Statement
Engg Regt. Allot released. Rs. 12.40 lakh for FY 13-14. No exp. Statement
Sig regt. Allot released Rs. 11.57 lakh for FY 13-14. No exp. Statement
The aspect of non receipt of expenditure statement may be taken into consideration before release
of subsequent payments.
Page 67
It is seen from the APR that the reconciliation of outstanding objections is not being carried
out periodically. There is no proper mechanism to monitor the objections. Objection statements
issued are also not being pursed to finality.
In view of the points noticed, strengthening the area of post audit needs special attention, if
required by augmenting the strength of staff deployed on this area. Further, it is advised to adopt
the procedure followed by M.O. Misc. Section for post audit of vouchers by adopting the in- house
developed programme, which is useful in capturing the data, generating objection statements and
relevant reports and returns.
51. Ration allowance claims register: It is noticed from the above register that the ration money
claims admitted, for which copy of cheque slips/claim details are not being sent to LAO concerned
for verification at his end and no details are held in register to verity as to which LAO the cheque
slip/details of the claim is intimated. It is stated that intimation to LAO/RAO may be sent under a
separate forwarding memo and the same may be entered in the register to confirm that the
intimations are regularly being sent to the LAOs/RAOs. Action taken for compliance may be
confirmed.
Records Section:
52. MPR: It is noticed that date of receipt of letters, Bills are reflected based on the dates received
by the task holder. Date of receipt of the same in the office needs to be reflected in the Monthly
Progress Report.
53. Franking machine is under repair since 01/13. Also it is noticed that a sum of Rs. 5212/- is
available in the said machine. Service labels are being utilized. Reasons for not utilizing the
valuable asset may be intimated.
54. It is noticed that old records have not been weeded out. All the time expired records may be
weeded out and destroyed as per the extent rules, duly preserving the prescribed documents in the
compactors. Indexing may be done properly to ensure easy retrieval of any required document.
(XYZ)
Addl. CDA (SC)
Page 68
Chapter 13
Examination of new proposals and rendition of report
Purpose:
 To examine the new proposals submitted by Executives and DAD employees under
suggestion scheme for betterment of the system
 Introduction of new initiatives
 Submission of comprehensive proposal duly bringing out advantages and

disadvantages if the proposal is implemented
 Additional requirements (if any) to implement the proposal etc.
 Examine the proposal thoroughly.
 Prepare Para-wise comments to each point highlighted in the proposal.
 Offer views/comments on the proposal.
 Compare the proposal with the existing systems and procedures.
 Bring out the advantages and disadvantages of the proposal.
 List out the Additional requirements.
 Submit the report in the format prescribed by the higher authorities.

Page 69
Example: Proposal to open Area Accounts Office at Mumbai
Proposal of DGAFMS:
DGAFMS, Mumbai has requested H.Qrs. office to explore the possibility of opening
a branch office of PCDA (SC) Pune in Mumbai for the benefit of Defence units located in
Mumbai Region and civilians working therein. The following reasons have been projected
as justification for the proposal.
 Many Defence units and establishments are located in Mumbai, functioning under
the Payment jurisdiction of PCDA (SC) Pune.
 AFMSD Mumbai and COD Mumbai, the two big depots are involved in
procurement of stores worth several crores annually.
 PCDA (SC) Pune is the audit authority for expenditure incurred by these units on
account of Pay & Allowances Bills, LTC, TA/DA & Medical claims of Defence
civilians besides third party payments.
 Units’ representatives are regularly deputed from Mumbai to visit PCDA (SC) Pune
Main Office to get the bills cleared. This is leading to loss of man hours and
incurring of considerable expenditure on account of TA/DA.
 Opening of branch office of PCDA (SC) Pune in Mumbai is essential and justifiable
to prevent loss to the state in terms of expenditure and man hours as well.
Directions of H.Qrs. Office:
H.Qrs. office desires that the proposal of DGAFMS be examined by this office in all
respects and forward our views/comments to them. Further, if agreeable a comprehensive
proposal in the form of a self-contained note/proposal is supposed to be furnished for
better appreciation of the case, incorporating the following points.
(i) Background of the Case

(ii) Justification with reference to workload with details of workload for the proposed
office
(iii) Existing arrangements

(iv) Problems being faced by the DAD/Executives in the existing system
(v) Proposed solutions for the same, if any.
(vi) Logistics/infrastructure support required/available for the proposed office
including staff/residence
(vii) Availability of staff for the proposed audit/accounting coverage to Accounts Office
at Mumbai.
Prepare a Draft Reply to H.Qrs. office
(To be approved by PCDA (SC), Signed by Addl. CDA)
Page 70
Solution:
No. O&M/1603/Work Studies
O/o the PCDA (SC)
No.1, Finance Road,
Pune – 411001
Date: 30.10.15.
To
CGDA,
Ulan Batar Road,
Palam,
Delhi Cantt - 110010
Sub: - Opening of Area Accounts Office at Mumbai – Request by DGAFMS, Mumbai

– Reg.
Ref: - H.Qrs. office letters No. AN/III/3019/PCDA (SC)/Sub Office, dated 27.07.15
& 06.10.15
***
The proposal of DGAFMS regarding opening of sub office at Mumbai received vide
H.Qrs. office letter dated 27.07.15 has been examined in detail and a comprehensive
report explaining our views/comments on each point is furnished below as desired by
H.Qrs. office please.
2. Proposal of DGAFMS:
DGAFMS, Mumbai has requested H.Qrs. office to explore the possibility of opening
a branch office of PCDA (SC) Pune in Mumbai for the benefit of Defence units located in
Mumbai Region and civilians working therein. The following reasons have been projected
as justification for the proposal.
 Many Defence units and establishments are located in Mumbai, functioning under
the Payment jurisdiction of PCDA (SC) Pune.
 AFMSD Mumbai and COD Mumbai, the two big depots are involved in
procurement of stores worth several crores annually.
 PCDA (SC) Pune is the audit authority for expenditure incurred by these units on
account of Pay & Allowances Bills, LTC, TA/DA & Medical claims of Defence
civilians besides third party payments.
Page 71
 Units’ representatives are regularly deputed from Mumbai to visit PCDA (SC) Pune
Main Office to get the bills cleared. This is leading to loss of man hours and
incurring of considerable expenditure on account of TA/DA.
 Opening of branch office of PCDA (SC) Pune in Mumbai is essential and justifiable
to prevent loss to the state in terms of expenditure and man hours as well.
3. Views/Comments of this office against each point:
(i) Background of the Case: -
(a) From User Side: As brought out by DGAFMS, this demand has been continuously
raised by the members of JCM HQ DGAFMS Council (level III) of AFMSD, Mumbai, for
easy access to Accounts Office. DGAFMS stated that units’ representatives are regularly
deputed to PCDA (SC) Pune for transmission of documents/personal liaison to get their
bills/claims in audit, which is causing loss of man hours at the unit level.
(b) Historical background from DAD side: PCDA (SC) Pune is giving audit
coverage to the army units located in Maharashtra, Gujarat and Rajasthan. The area of
work relating to pay & allowances of Defence civilians and Industrial Employees is being
dealt by AAO (SC) Ahmedabad for Gujarat Area, AAO (SC) Jodhpur for Rajasthan Area and
AAO (SC) Dehu Road in addition to M.O. of PCDA (SC) Pune for Dehu Road and
Maharashtra area respectively.
Area Accounts Offices (SC) Ahmedabad and Jodhpur have been opened, keeping in
view of the distance between units and Pay Audit Office i.e. PCDA (SC) Main Office
whereas Area Accounts Office (SC) Dehu Road has been formed considering the strength
of the Civilians and Industrial employees of Army Units in and around Dehu Road viz.
COD, Dehu Road, CAFVD Kirkee, AD, Dehu Road, OD Talegaon and Station HQrs. Dehu
Road etc.
Another distinct feature between the three AAOs (SC) is that the sub office at Dehu
Road does not deal with any budget other than Pay & Allowances, TA/DA and Medical
expenses of Defence civilians and Industrial Employees (excluding MES), where as the
other two AAOs (SC) at Ahmedabad and Jodhpur are dealing with ACG of army units and
Ration Allowance claims of Army Officers, besides the Pay & Allowances, TA/DA and
Page 72
Medical claims of Defence Civilians including MES civilians and DAD personnel under
their audit/payment jurisdiction.
It can be understood that distance/quantum of work have been considered as the

basic yardsticks at the time of forming Area Accounts Offices, which were decentralized
from Main Office in order to facilitate our customers over the years. At the same time,
sensitive areas of work like third party payments dealt with by Stores, Misc. and
Engineering sections have never been decentralized.
Now, when it comes to the request of DGAFMS, Mumbai, distance need not be
considered as a major parameter since Mumbai is not far located from Pune (less than
200 Kms.) and many Regional Controllers/Area Accounts Offices in the country are
extending payment and audit support to units located in more than the said distance.
Also, with the introduction of CMP, there is absolutely no delay in payment to third
parties, once the bills are cleared manually. But, the second parameter i.e. Quantum of
work has been considered as a factor to examine the said proposal.
(ii) Justification with reference to workload with details of workload for the
proposed office: - Details like No. of units, No. of beneficiary employees and posted
strength of DAD officers/staff are submitted below for comparative study please.
No. of dependent units and civilians/Industrial Employees (Other than MES)
Particulars AAO (SC) AAO (SC) AAO (SC) Dehu Mumbai Re-
A’bad Jodhpur Road gion
No. of units 49 68 6 89
No. of Defence Civil- 1748 2224 3776 2146

ians/Industrial
Page 73
Man power status – Posted Strength
Designation AAO (SC) AAO (SC) AAO (SC) Dehu Requirement

A’bad Jodhpur Road for Mumbai
IDAS Officers 1 - - 1
SAOs/AOs 2 2 2 2
AAOs 3 3 2 3
SA/Aud/Clerks/ 13 20 16 20
Stenos/RCs/DEOs
MTS 2 - 2 2
(iii) Existing arrangements:-

Presently, PCDA (SC) Pune M.O. is carrying out audit and payment functions for
units located in Mumbai in respect of expenditure incurred on account of Pay &
Allowances Bills, LTC, TA/DA & Medical claims of Defence civilians besides third party
payments in addition to the DAD employees pay bills and personal claims.
In order to facilitate our customers, AO NP, Mumbai, sub office of PCDA (SC), Pune
is discharging the following audit/payment duties on behalf of the Stores and
Miscellaneous Sections of PCDA (SC) Main Office in addition to their regular duties of
extending audit, accounting and financial advice support to DGNP, Mumbai.
 Ration Allowance Claims and Reimbursement claims of Telephone Bills of Army

Officers working under MG & G area irrespective of their place of posting
 Telephone Bills of Defence Quality Assurance Establishments located in Mumbai.
(iv) Problems being faced by the DAD/Executives in the existing system: -

There are no specific problems being encountered by DAD in the existing system.
The reasons put forward by DGAFMS are already enumerated under Background of the
case at point 3 (i) of the ibid letter.
Page 74
(v) Proposed solutions for the same, if any: -

As there are no considerable problems being faced by this office, no solutions can
be offered in this regard except performing up to our customers expectations without
compromising with the audit requirements.
In other words, if we are not agreeing to the proposal of DGAFMS, we should be

able to clear the bills and claims in time, avoid unnecessary correspondence and eliminate
the scope of frequent visits by units’ representatives to our office (as claimed by DGAFMS
in the ibid proposal) due to one reason or other.
Units should be educated in the area of preparation of bills, claims and

submission of other related documents with reference to the extent rules and orders on
each subject matter to reduce rejections in audit. Meetings at regular intervals at
appropriate level can be an alternate solution to resolve the issues across table.
(vi) Logistics/infrastructure support required/available for the proposed office &

staff/residence: -
Reasonable Office Accommodation with furniture and other amenities has to be provided if
it is decided to open Area Accounts Office in Mumbai. To begin with, any of the big army units/
MES may be asked to provide the desired accommodation.
It would not be out of context to mention here that unlike in other cities; service in Mumbai
itself has got certain uniquely associated problems viz. accommodation and transport between
offices, schools, colleges & residence. In fact, Residential Quarters presently available in Mumbai
under DAD Pool are not sufficient with the actual requirement.
In the present scenario, it is very difficult for new comers to get Government
Accommodation in Mumbai. Therefore staff and officers coming from other regions of the country
may not be willing to serve in Mumbai. Also, new recruits if posted to Mumbai may not be inclined
to join service, with the fear of not getting Government Accommodation. More residential quarters
under DAD Pool will have to be constructed at the earliest in addition to our own office building as
done in Jodhpur and Ahmedabad.
Page 75
(vii) Availability of staff for the proposed audit/accounting coverage to Accounts

Office at Mumbai: -
Already PCDA (SC) is facing acute shortage of manpower. The proposal if agreed to, may
lead to further imbalance. To be true, the present work load and rush are somehow met by
resorting to attachment of officers/staff, which may not be possible once the said office is opened
and some of the existing staff is shifted.
In case, officers and staff, presently serving in PCDA (SC) Pune do not volunteer for posting
in Mumbai in sufficient number, posting of staff and officers from other Regions/Controllers may
have to be done by H.Qrs. office.
4. Conclusion: - It is felt that the proposal of DGAFMS need not be accepted in Toto due to the
following reasons:
· The proposal is not supported by concrete justification, but can be merely

construed as a suggestion to improve the existing system.
· There are no serious lapses being pointed out on the part of this office in rendering
efficient services to Defence Civilians as well as units located in Mumbai.
· No major complaints from third parties have been received in the recent past
regarding delay in releasing their payments.
· The statement given by DGAFMS regarding deputing units’ representatives to this

office is general in nature and not supported by facts & figures in terms of savings
to the Government.
· There is no guarantee that TA/DA allotments of army units and MES formations
would be reduced, if the proposal is accepted, since these Estimates are not routed
through this office for vetting, but are purely based on the expenditure of previous
years.
Page 76
· Even if sub office is opened, we may not be able to decentralize the entire work of
Main Office. Work of Pay Section, Pay Medical, T section and AN Pay can be
completely decentralized and routine non sensitive areas of work of Stores and M
sections can only be entrusted to them.
· Such decentralization will not serve the purpose completely with reference to the
proposal of DGAFMS, Mumbai.
5. H.Qrs. office may like to consider the views/comments of this office and take appropriate
decision on the proposal put forward by DGAFMS, Mumbai please.
(XYZ)
Jt. CDA (SC)
Page 77
Chapter 14
Write up/work study on a given area of work
Purpose:
 To submit a concept paper on a given area of work
 To prepare SOP in respect of a new project/area of work
· Proposing changes in the existing systems and procedures
 Preparation of Job Description step wise

 Examine the subject area of work thoroughly and prepare step wise process
 Explore the possibility of bringing changes in the existing system
 Bring out the advantages and disadvantages in the existing system and propose
changes (if any) and highlight the materialistic improvements in the system
 Submit the report in the format prescribed by the higher authorities.
Question:
You are asked by PCDA/CDA to prepare a write up on MRO. Prepare a write up covering all
the aspects of MRO right from what is MRO to complete cycle of adjustment including various
cases of non-receipt of DMRO/OMRO suggesting the remedial action required.
Steps to prepare the write up:
1. What is MRO?
2. Who can sign?
3. How many copies are prepared and what is their distribution?
4. What is the relevance of Defence Proforma Account to MRO?
5. How to carry out Reconciliation?
6. What is the accounting procedure?
7. Focal Point Branch Scheme
8. Verification of DMS
9. Adjustment of DMRO
10. Adjustment of OMRO
11. Linking of DMRO/OMRO
12. DMRO Received – OMRO not received
13. OMRO Received – DMRO not received
14. Adjustment of MROs pertaining to previous year
15. Delay in linking of MROs – Reasons, effect of delay on Government Accounting
16. Conclusion
17. Changes with reference to the concept of e-MROs
Page 78
Solution:
Military Receivable Order (MRO) – Flow of MRO – Adjustment
1. Introduction:
1.1 Any person/office/Defenceunit or formation paying money (except earnest money) into a
Government treasury or one of the branches of the State Bank of India doing Treasury business or
the Reserve Bank of India in stations where it transacts all Government banking business, shall
present with it a military receivable order (I.A.F.A.-507) to be issued/signed by one of the
authorized officer of Defence. One can say it is like a challan form used to deposit money into the
bank account of an individual/firm. The bank will accept the Cash/Cheque when deposited along
with the MRO just like a challan.
1.2 MRO shall show distinctly the nature of the payment, the person or officer or office/
Defence unit/formation on whose account it is made and the particular Controller of Defence
Accounts by whom it is adjustable. On this authority, the Treasury or bank shall accept the money
as a Defence Services receipt.
1.3 MRO is prepared in triplicate i.e. 3 copies, like a Bank Challan (which is prepared in
duplicate by the depositor in normal course of business). The purpose for which MRO is prepared
in triplicate would be explained in detail in the succeeding pages/paragraphs. In the case of Bank
Challan, there are only two users viz. depositor and bank. In the case of MRO, there are three users
viz. first the Depositor/unit/formation, second the audit section of PCDA/CDA by whom the
transaction is adjusted and the third Accounts Section of the same PCDA/CDA.
1.4 All units and Formations maintaining Public Fund Accounts with any of the authorized
banks would not deposit money in cash direct to the Treasury. Instead, they should deposit the
money in their Public Fund Account and simultaneously they should submit a cheque drawn in
favour of their bank together with the MRO to their bankers with the request that the amount may
be credited to the Treasury. This cheque is not a Defence Cheque. It is the one supplied by the
bank for the Public Fund Account. It does not come to PCDA.
1.5 The period of validity of MRO is twenty-one days from the date of issue i.e. the date of
signature of the departmental officers who are authorized to issue/sign such orders. MRO will be
revalidated in case; it is not presented at the Bank within twenty-one days of the date of signature
of the authorized departmental officers or the date of revalidation.
1.6 After all, we can say MRO is an instrument having a specific final value that comes into the
Government Accounting system for adjustment.
Page 79
2. Officers authorized to sign/issue MRO:
1. All Commissioned Officers and Civilian Gazetted Officers of the Defence Organization serving
under the control of the Ministry of Defence including Department of Defence Production and
Department of Defence Supply.
2. All gazetted officers in the Defence Accounts Department
3. Departmental Officers, Warrant and non-Commissioned Officers and JCOs in supply and
transport charge at outposts.
4. Remount and purchasingagents.
5. JCOs-in-Charge of all Arms, Corps and Regiments.
6. Unit Accountants attached to MES Officers.
7.Head Clerk employed in the office of Garrison Engineers or out-station Assistant.
8. Representatives of Defence Estate Officers in Cantonments.
9. Director General of Disposal, his regional representatives and agents and any Gazetted Officer
on his behalf.
10. Officers - (whole time and part time) Commissioned in the National Cadet Corps.
11. Outstations MES Supdts. B/R Gde 1, Supdts, E/M Gde I and Supervisor B/S Gde I
Incharge Sub divisions.
3. Distribution of 3 copies:
3.1 The first copy of MRO, known as Original copy of MRO (OMRO) submitted to bank is given
back by the bank to the Depositor/Office/Defence Unit or Formation. This copy is submitted by the
Depositor to the Audit Section of Concerned PCDA/CDA by whom it is adjusted.
3.2 The second copy, known as Duplicate Copy of MRO (DMRO) is retained by the bank to
transmit to the Accounts Section of the PCDA/CDA by whom it is adjusted through the agency of
Focal Point Branch of the State Bank of India/Associated bank along with Credit Scrolls on Daily
basis. As such, the bank does not retain any copy of the MRO ultimately.
3.3 The third copy, known as Triplicate copy of MRO is also given back to the depositor by the
bank, which will be retained by him/unit/formation/office as office copy for future reference.
Page 80
4. Defence Proforma Account:
4.1 The balances of the Defence Services have been created Proforma in the books of the
Reserve Bank of India w.e.f. 1st April, 1962. These balances form part of the balances of the
Central Government for regulating the ways and means arrangements.
4.2 There is one Central Account in the books of the Reserve Bank of India for the Defence
Service as a whole, but in the details working up to this single account, the total figures for each
Controller will be available separately in the books of the Reserve Bank.
4.3 PCDA/CDA office is responsible to reconcile the balances under the Defence Proforma
Account on regular basis. For this purpose, the code head of account prescribed for RBI is
00/021/00 Reserve Bank Deposits (Defence) and the code head for MRO is 00/020/80.
5. Reconciliation:
5.1 When MRO is deposited in to banks, ultimately the balance of CDA in the books of RBI will
increase. For this purpose, RBI will give credit to the concerned CDA. Therefore, CDA office
Accounts section will debit the RBI head 00/021/00 as (+) charge, to ensure that balance under
the Proforma account with RBI is increased in his books also.
5.2 The job of doing accounting adjustment pertaining to the head 00/021/00 RBI Deposits
Defence and its reconciliation is entrusted to the Accounts Section of the CDA. Except Accounts
section, no other section of CDA is supposed to Operate/compile any amount under the head
00/021/00.
6. Accounting of Receipt – Deposit through MRO:
6.1 The accounting treatment is done in two stages. One by the Accounts Section and the other
by the Audit Section of the CDA office or the sub offices like Area Accounts Office/AOGE etc.
Page 81
6.2 Accounts Section does the adjustment of Duplicate copy of the MRO and Audit Section/
sub office adjusts the Original Copy of the MRO
6.3 Practically, many MROs are deposited by different individuals/Defence units and
formations every day with various branches of banks, spread across the country in favour of
different PCsDA/CsDA.
7. Focal Point Branch:
7.1 Each CDA is a Defence Accounting Circle, allotted with unique code given by RBI, Central
Accounts Section, Nagpur.
7.2 Under the provisions of Section 21 of the Reserve Bank of India Act and theagreement
entered into by the Central Government with Reserve Bank of India, generalbanking business
(consisting of receipts, collections, payments and remittances) on behalf ofthe Central Government,
is carried on by Reserve Bank of India as it’s banker. At placeswhere RBI does not have an office of
its own, Government business is handled by PublicSector Banks as agents of the RBI viz. the State
Bank of India and its Associate Banks andNationalized Banks. Nationalized banks other than SBI/
Associate banks are not authorized to operate Treasury transactions.
7.3 The procedure of reporting, accounting and reconciliation of transactions is based on the
concept of "One PAO- One Focal Point Branch". Under this concept, Focal Point Branches have
been introduced in the Ministry of Defence with effect from 01.10.93. In this procedure, the dealing
branches of State Bank of India are linked for the purpose of reporting Defence transactions where
the Defence Accounting Circle, beenauthorized by the RBI to transact in Defence Proforma Account
is situated. The nominated Focal Point Branch acts as a dealing branch. It is responsible for
prompt and accurate accounting of the transactions reported to it daily by all the dealing branches
linked to it.
7.4 The dealing branches maintain the account of the PCsDA/CsDA and prepare daily Receipt
Scrolls in quadruplicate, separately foreach account holder daily. Each day's scroll is given a
running serial number for theaccounting year from 1st April to 31st March. The Receipt Scrolls are
identifieddistinctly by prefix DEF (R) for receipts separately. The creditscrolls will show receipt
number/MIN given by the Bank to each MRO, the name of Depositor and its amount.
Page 82
7.5 Each dealing branch of State Bank of India/Associate bank will furnish the dailyscrolls
duly supported by the Military Receivable Orders in respect of
theDefence transactions occurring in their books to the FPB. In cases where, the Associate
bankconcerned has less than ten of its branches handling the transaction of aPCDA/CDA/Defence
Accounting Circle, they will directly report such transactions to the FocalPoint Branch of the SBI
accredited to the PCDA/CDA concerned.
7.6 Based on the daily scrolls received from the dealing branches, the Focal PointBranches will
prepare Main Scrolls and allot consecutive serial numbers to them. The MainScrolls duly supported
with the daily scrolls of branches and MROs will besent to the PCsDA/CsDA daily for their
verification and certification. Simultaneously, theaggregate of receipts in the Main Scrolls are
incorporated in a daily memoand the same is reported to SBI, GAD, SBI, Mumbai/Link Cell of
Associate Banks.
7.7 Two copies of the Main Scroll along with its original copy and the relative
Instruments received from various dealing branches will be forwarded to thePCDA/CDA/

Accounting Circle on day-to-day basis.
7.8 Wherever the FPBs of SBI act as Focal Point Branches for the Associate Banks also,the
Main Scrolls will be prepared separately for SBI and each of the Associates Bankconcerned such as
State Bank of Hyderabad, State Bank of Travancore etc.
7.9 Error Scrolls in respect of discrepancies noticed either by the FPB or pointed out by
theDefence Accounts Circle will be prepared by the Focal Point Branches at the time ofcertification
of Main Scrolls or the Date Wise Monthly Statements and included in the nextday’s transactions.
7.10 Main Scrolls supported with daily scrolls will be received in the Accounts Section ofthe
PCDA/CDA Office. The Section will maintain a Register in manuscript for the date-wiserecording of
the receipt of Bank scrolls (with their No. and creditsseparately) and disposal of accompanying
vouchers. Separate pages in the Register will beallotted for each Focal Point Branch.
Page 83
8. Verification of Date Wise Monthly Statement:
8.1 The Focal Point Branch will prepare Date wise Monthly Statement (DMS), a summaryof all
the transactions undertaken during the month and submit the same to the concernedDefence
Accounting Circle. DAC will verify and reconcile the transactions noted in the MainScroll Register
and return the same after due verification to the Focal Point Branch. The FPBwill forward verified
copy of DMS to SBI, Govt. Accounts Department Mumbai /Link Cell ofthe Associate Banks. The
adjustments on account of discrepancies/errors pointed out by theDAC will be incorporated in a
separate Error Scroll and reported to that office in the nextday’s transactions.
8.2 On receipt of daily memoranda/online data in respect of transactions from variousFocal

Point Branches, the GAD, SBI Mumbai/Link Cell will consolidate the transaction fromall FPB
figures and report Receipts separately
to RBI, CAS, Nagpur foreventual settlement. A Monthly Statement of Settlement (MSS) will be
generated andforwarded to the DAC and FPB. The DAC will verify and return acopy of the same
toFPB/SBI, GAD Mumbai duly pointed out discrepancies, if any.
8.3 The RBI, CAS, will forward monthly statements of closing balances in the DefenceProforma
Account, for reconciliation with the Main Scrolls/DMS/MSS. A confirmation of theclosing balances
is sent to the RBI CAS by the DAC concerned.
8.4 The duplicate copy of MRO retained by the bank branch, in which deposit was made
ultimately reaches the CDA (Defence Accounting Circle) Accounts section through the Focal Point
Branch.
8.5 RBI gives credit to Defence Accounting Circle i.e. CDA to the extent of amount deposited.
Page 84
8.6 Like this all the DMROs retained by the bank branches, accepting the Defence Services
Receipts are received by the concerned PCDA/CDA and RBI affords credit to the concerned PCDA/
CDA.
8.7 Flow Chart of DMRO receipt in CDA office Accounts Section
9. Adjustment of DMRO:
9.1 Duplicate copy of MRO, known as DMRO is received in the Accounts Section of the PCDA/
CDA by whom, it is adjustable. First of all, it will be verified, if it pertains to them or not. In case it
does not pertain to them, matter will be taken up with the Focal Point Branch to delete the item
from the scrolls and credit against the concerned correct PCDA/CDA and schedule the DMRO to
the correct office. The transaction will be rectified by FPB through Error Scrolls. But, if the DMS is
already verified and certified, then the transaction will have to be initially adjusted and then passed
on to the correct CDA through Defence Exchange Account by operating DIDS. Focal Point Branch
will not rectify the transaction.
9.2 Similarly, if any DMROs for which transactions are reflected in the scrolls and are not
found received along with the scrolls, the same will be called for. In case the DMROs are lost by the
Bank, certificate will be called for from the FPB.
9.2 When the DMRO pertains to the PCDA/CDA, Accounts Section of the PCDA/CDA will enter
the details of MRO in the Register of MROs. Details of each MRO / MRO Identification Number
(MIN) allotted by the Bank, inrespect of remittances into Banks will be recorded. At regular
Page 85
intervals, DMROs are adjusted by Accounts section by operating Punching Medium Class 2
voucher 00/021/00 (+) Charge (Debit) contra (-) Charge to 00/020/80 (Credit). Let us take an
example of Rs. 4000/-, deposited through MRO.
Depositing the Depositing the mon- Depositing the mon-

money into Bank ey into Bank 2 ey into Bank 3
Focal Point Branch – Scrolls & DMROs
SBI GAD Mumbai Receipt of credit scrolls and

for Intimation to DMROs – Verification of
DMS – Discrepancies – Error
Scrolls – Certification – Ad-
justment of DMRO
RBI giving credit to
Defence Proforma
account of CDA -
Credit Advice Memo from
Code head (+) Rt. (-) Rt. Code head (+) Ch. (-) Ch.
00/21/00 4000
00/020/80 4000
CDA office Accounts is increasing their balance in RBI by Rs. 4000/- since RBI has already
given a credit of Rs. 4,000/- (Please see flow chart at 8.7)
9.3 Why 00/020/80 is given (-) charge? The answer is DMRO is generally received first. In fact,
the bank sends the scrolls and DMROs on daily basis. Therefore, the balance available with RBI
has to be straightened/debited first i.e. CDA office has to increasetheir balance by Rs. 4,000/-, by
debiting Defence Deposits head i.e. 00/021/00 as (+) Charge. Accounts section is not the
authorized section to adjust thetransaction under service head under which the receipt is to be
accounted. Adjustment of the same is the duty of the Audit section.
Page 86
9.4 Further, Accounts section is creating a suspense in the form of (-) Charge under
00/020/80 and facilitating the Audit Section to compile the transactionto the service head as (+)
Receipt/ (-) Charge as the case may be,by contra debiting the Suspense head 00/020/80 as (+)
Charge and clear the suspense created by Accounts Section.
9.5 After adjustment of the DMRO, the relevant column of the Register of MROs is up dated
and the adjustment by Audit Section/Sub Office, responsible to adjust the original MRO is
watched.
10. Adjustment of OMRO:
10.1 Original copy of the MRO known as OMRO is submitted by the depositor/unit/formation/
office to the Sub offices like AO GE/Area Accounts Office or Audit section like Pay/Stores/Misc./T/
Pay Medical sections for adjustment in the concerned Account under the appropriate code head.
10.2 On receipt of the OMRO in the Sub Office/Audit Section, it will be verified whether the
transaction is adjustable by them or not. If, it pertains to the office, but dealt by some other
section, the same will be scheduled to them. If the OMRO does not pertain to the office/
organization, it will be returned to the depositor/unit/formation with a request to send to the
correct audit office. In case, it pertains to them, the same will be entered in Register of MROs. All
the details related to the depositor, amount and MIN etc. will be recorded.
10.3 Audit section/Sub office adjusts the transaction through Class 2 voucher Punching
Medium by operating 00/020/80 as (+) Charge (Debit) and corresponding credit to the relevant
service head as (+) Receipt/ (-) Charge as the case may be.
Case 1: In this case, the amount pertains to Government Receipt say Miscellaneous Receipt. For ex:
Sale of Old Records. This is a bonafide Receipt to the Government. It cannot be operated on
Charges side, since Government Receipts are not supposed to be expended/appropriated towards
expenditure. Therefore, Punching Medium is prepared as below:
01/575/30 4000 00/020/80 4000
Page 87
Case 2: In this case, the amount pertains to refund of excess expenditure originally compiled. For
ex: One individual was paid Rs. 20,000/- on account of Advance of TA/DA, based on Cash
Requisition by the T section of CDA office. The individual has utilized Rs. 16,000/-and submitted a
final bill to that effect. Now he deposited back the unutilized amount immediately to Government to
avoid charging penal interest against him.
Here, the point to be understood is that this sum of Rs. 4,000/- is not a receipt to
Government. It is a reduction of the expenditure, which was originally compiled in excess. The
service head TA/DA is meant for expenditure
against the allotment under the head and not meant for realizing any receipts on account of TA/
DA. Therefore, the head TA/DA cannot be operated on Receipts side. Also, by compiling the amount
as (-) charge under the service head TA/DA, the allotment gets restored back and the amount can
be utilized within the same financial year. Hence, Punching Medium is prepared as below:
00/020/80 4000
TA/DA 4000
10.4 In any case, 00/020/80 is operated as (+) Charge, which nullifies the suspense created by
the Accounts in the form of (-) Charge under 00/020/80. Copy of the TE is sent to Accounts
Section to enable them to link the transaction in the Register of DMROs and clear the same from
the records.
11. Linking of DMRO/OMRO:
11.1 On receipt of the P.M. Class 2 voucher copy from the Audit Section, Accounts Section will
refer to the Register of MROs. Concerned DMRO details, already entered by them based on the
adjustment done with reference to the Scroll/DMRO will be identified and linked with the
adjustment done by the Audit Section. Details of adjustment by Audit Section will be updated in
the relevant column and clear the item from the list of outstanding DMROs awaiting action by the
Audit section concerned. This process is called Linking of DMRO and OMRO.
11.2 Accounts Section is responsible to review the outstanding items from time to time and
agree the total of OMROs pending for adjustment with the balance under the Suspense Head
00/020/80 (-) Charge.
Page 88
12.DMRO Received - OMRO not Received:
12.1 When copy of DMRO has been received from the Focal Point Branch and adjusted by the
Accounts Section, but corresponding OMRO details are not found linked in the Register of MRO, at
the end of each quarter, Accounts section will take up the matter with Audit Sections/sub offices
by sending list of outstanding OMROs awaiting adjustment by the respective sections/offices
enclosing the copies of concerned DMROs.
12.2 On receipt of the list, Audit section will verify whether the item pertains to them or not. In
case, any item does not pertain to them, the same will be intimated to Accounts Section, so that
they will take up the matter with relevant section/sub office.
12.3 In case, the item pertains to the Audit Section, then it will be verified whether the same has
already been adjusted. If so, copy of the TE will be provided to Accounts Section for necessary
linking and updating the records.
12.4 But, if it is found that the OMRO has not been adjusted at their end then, it will be
adjusted based on the OMRO available with them/DMRO copy provided by the Accounts Section.
The fact of adjustment will be intimated and copy of the TE will be forwarded to Accounts Section
for clearance at their end.
12.4 In some cases, units may forward copy of the triplicate MRO held at their end, as delay in
adjustment of OMRO adversely affects their accounts. In such cases, action can be taken by the
Audit section on the triplicate copy treating the same as Original copy, duly ensuring the
correctness.
13.OMRO Received - DMRO not Received:
13.1 When OMRO has been received and adjusted by Audit Section/Sub Office, for which
corresponding DMRO has not been found adjusted by Accounts Section, the fact comes to light,
when copy of the TE from the Audit Section/sub office is received in Accounts section for necessary
linking. While verifying the Register of MROs maintained in the Accounts section, to link the item
with DMRO entry, the same would not be available in the Register.
13.2 Accounts Section will verify whether there is any DMRO received along with credit scrolls
or received through Error Scrolls (if any) are remaining unadjusted/not posted in the Register of
MROs. In such case, adjustment of DMRO will be carried out, the details will be noted and the
Register updated.
13.3 In case, it is found that DMRO has not been received from the Bank, matter will be taken
up with Focal Point Branch by the Accounts Section to ascertain whether the DMRO has been lost
or credited to some other Defence Accounting Circle, i.e. PCDA/CDA. In such a case, either DMRO
is received or certified as lost or the details of the PCDA/CDA would be provided by the bank, so
that matter can be taken up with the particular PCDA/CDA to get the item transferred through
DIDS.
Page 89
13.4 If bank denies the deposit, the case will be taken up by Accounts Section with the
concerned Audit Section/Sub Office for further investigation of the case. Final clearance will be
watched by both the Audit Section and Accounts Section.
14.Adjustment of MRO pertaining to the previous years:
14.1 When MRO deposited in a year has been received and adjusted in the subsequent financial
years due to one reason or other then category 77 will be prefixed to the MRO head i.e. 77/020/80
will be operated instead of 00/020/80 to differentiate between the MROs deposited & adjusted in
the same year and deposited in one year & adjusted in the subsequent financial years.
14.2 When it comes to the adjustment under service heads, if the MRO deposited in a year is
received and adjusted in the subsequent years, both the cases of receipts and reduction of
expenditure under service heads as depicted in 10.3 will be compiled as (+) Receipt only, as
increasing the allotment by deducting the expenditure as (-) charge is not supposed to be done
from the previous years’ budget.
15.Delay in Linking of MROs:
15.1 There should not be any delay in adjustment of DMRO by the Accounts Section, as they are
responsible to verify the Credit Scrolls/Hard copies of the DMROs and their correctness with
reference to the PCDA/CDA by whom the instrument is adjustable. There is a scope for rectification
through Error Scrolls. But if the DMS is verified and certified inadvertently, there is a chance of
DMRO not getting linked and subsequently, the transaction should be settled through Defence
Exchange Account i.e. DIDS. This can be avoided by taking prompt action at the level of Accounts
Section Officers and staff. However, if the transaction appears in Credit Scrolls and even if it
pertains to other Defence Accounting Circles, there is no risk involved.
15.2 Problemmay arise, when the item is not reflected in the Scrolls, but DMRO has been
adjusted by the Accounts section.Even in this case, if the item is received by another PCDA/CDA,
there is no risk involved. The transaction can be settled by means of DIDS.
15.3 Risk is associated when the OMRO is received and adjusted by the Audit Section, but
corresponding DMRO has not been received in Accounts Section and subsequently deposit is
denied by the bank authorities. Here, the chance of using fraudulent OMRO document may come
into picture.
16.Conclusion:
16.1 To conclude, we may say that adjustment of DMRO is important to arrive at the exact
balance under RBI Proforma Account.
16.2 Adjustment of OMRO when received from the depositor/unit/formation is of paramount

importance to ensure prompt adjustment of Government duesunder the respective heads of
accounts and depicting thetrue picture of Budgetary reports of the Defence Services.
Page 90
17.Changes with reference to concept of e-MRO:
17.1 In the case of e-MROs, the focal point branch will provide e-scroll of MROs, which contains all
the details/fields submitted by the depositor at the time of depositing the amount through e-MRO,
which will be downloaded by Accounts Section from SBI CMP Portal. Register will be updated as
explained in the previous pages. Accounting adjustment through class II voucher will be done as
follows, prefixing 93 to the heads for easy identification of electronic Receipts:
93/21/00 4000
93/020/80 4000
17.2 Details of the adjustment will be noted in the DMRO Register by the Accounts Section month
wise as explained in the previous pages Audit section/sub office wise and the total of the adjustments
will be reconciled with Date wise Monthly Statement (DMS).
17.3 After doing the adjustment, e-MRO will be forwarded to the respective Audit section/sub office
endorsing the adjustment details and TE No. for further action on daily basis (Procedure is applicable
till these details are available to them online for viewing and adjustment).
17.4 Audit Section/Sub office will adjust the e-MRO only after receipt of e-MRO from the Accounts
Section. There is no requirement to wait for the Individual/Unit OMRO. Even if, OMRO copy of the e-
MRO is provided by the Depositor, action will be taken by the Audit section/Sub office only after
receipt of the copy from the Accounts Section only. The following adjustment will be done by the Audit
Section/Sub office through Class II Punching Medium Voucher:
93/020/80 4000
Service Head 4000
Or
Service Head 4000 93/020/80 4000
17.5 In case e-MRO pertaining to other Defence Accounting Circles are wrongly deposited,
transactions will be passed on to the correct Defence Accounting Circles through DIDS Class II
Punching Medium by adjusting as under:
DEA Head 4000 93/020/80 4000
***
Page 91
Chapter 15
Review and Concluding Remarks
After going through this Reading Material, it is expected that one gets familiarized
with various types of Office Communication used in the Central Government Offices and
Defence Accounts Department.
It could be seen that there is a prescribed format for each type of office
communication that is used in the regular day to day work. In the case of special reports
or write ups, the formats are subject to change as per the requirement of the higher
authorities for better understanding and analysis of various subject areas of work.
It is suggested that readers may please attempt to solve the questions given in the
material on their own and compare the same with the solutions. One must develop
interest in drafting different types of communication on daily basis irrespective of the fact
that whether he/she is presently engaged in a task, that requires formal communication
or not.
Readers are advised to work on the grammar, vocabulary and oral/writing skills of
communication in the form of reading and writing various forms of office communication
on regular basis, so that they can excel in their long career ahead in the Department.
***
Thank You
With Best Wishes
रक्षा लेखा नियंत्रक (प्रशिक्षण)/CDA (Training)
गोलीबारमैदाि,पुणे 411001/Golibar Maidan, Pune- 411001

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IN

DEFENCE ACCOUNTS DEPARTMENT

Study Material and Case Studies

Noting, Drafting and Office Communication

1. Effective Communication Skills – Office Communication 1

2. Various Types of Office Communication 2

3. System of Filing and various aspects of File Management 3

4. Office Note 4-12

5. Ordinary Letter 13-15

6. D.O. Letter 16-18

8. Office Memorandum 22-23

9. U.O. Note 24-25

10. Counter Affidavit and Para-wise comments 26-38

11. Audit Reports - Super Review/Performance Audit etc. 39-51

12. O&M Inspection Report 52-67

13. Examination of Proposals 68-76

14. Write up on a given area of work 77-90

15. Review and Concluding Remarks 91

Effective Communication Skills – Office Communication

Effective Communication: Communication can be defined as a translation of thought process into

Communication may be in many forms. It can be a message, letter or order released/

Importance of Effective Office Communication: Effective Communication is very important in

A simple grammatical mistake or misconstruction may change the scope of communication

Further, after introduction of Right to Information Act, it is incumbent on each

System of filing and various aspects of file management

Various aspects of File Management:

Types Office Communication

9. Write up/work study on a given area of work

10. New Proposals

 To submit information to the higher authorities.

 To obtain the directions/decision of higher authorities on a general/specific issue.

 To obtain approval of Competent Authority in specific/financial/non financial/

Basic points to be followed:

 Use simple style of writing and simple words as far as possible.

 Avoid verbatim reproduction of the PUC.

 Divide the Noting into paragraphs of reasonable size.

 Present the facts of the case, authority/order.

 Present the precedence/practices followed in case of lack of authority.

 Present the views and proposed course of action.

 Stick to the prescribed format.

Sub: Regulation of journeys by private airlines while availing LTC – Reg.

All Ministries/Departments of the Government of India

Sub: Admissibility of Rajdhani Express fare in lieu of Air Fare – Reg.

Submitted for orders please.

Details of Electricity Bills:

Sub: Payment of Electricity Bills in respect of Office portion of the Residential

1. Refer of your letter No. 22023/1/2K/Nodal/CPWD dated 03 Jun, 09

2. Sunehari Bagh is nominated as the official residence of Commander - in - Chief (C-in-C) of

Office of the Principal Controller of Defence Accounts

No. 22023/1/2K/Nodal/CPWD Dated: 03.06.09

Sub: Payment of Electricity Bills in respect of Office portion of the Residential

` Pr. CDA has seen.

Sd/- Dy. Controller of Defence Accounts

Month of bill Payment made by the office Payment made from

 It is used as a formal communication/regular correspondence.

 It can be signed by AO/SAO/GO/Jt.CDA/Addl. CDA/CDA/PCDA

 Majority of Office Communication is in the form of ordinary letters

Basic points to be followed:

 Use simple language in third person

 One can use second person language also, if required

 Ordinary letter will have subject and salutation is not required

 Reference to the previous letters can also be mentioned, if it is a reply or has