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CHETAN PRAKASH JAIN Council of Scientffic & lndustrial Research
Joint Seoretary & Financial Adviser Anusandhan Bhawan,2, Rall Marg, New Delhi-110 001

DO No. a2a(5)/A ccfisl2023 -24

Oalod 22nn Jan,2024

Dear Director/Head,
You may recall that CSIR has switched over to Accounts Manager
Software since 01-Apr-2023 and the classification codes for accounting of all financial
transactions have been rationalized. Recently, during review of financial transactions
relatng to ECF projects, it was observed that the correct position of head-wise
balances was not appearing in the accounts of respective Labs/Units.

2. Accordingly, Labs/Units were requested vide CSIR letter of even number dated
27.12.2023 to provide the requisite details of these balances. On analysis of the
information provided by the Labs, the following serious issues/deficiencies have inter-
alia been noticed: -

(i). There is no uniformity in the receipt codes to which Lab share and Project Fee
components of pro.iect cost are being credited by the Labs. Wthin the same Lab
also, the receipt of same component has been taken in difierent classification codes
in different projects, Some Labs are taking receipt of Lab share amount and Project
Fee amount under unclassified head (c-code R-90918) as they have informed that
specitic receipt codes for Lab share and Project Fee are not available.
(ii). Some Labs are taking receipt of Lab share & Proiect fee in unclassified head of
ECF projects with c-code R-90918 due to classiflcation code wise bifurcation/break-
up of instalment of funds/project cost not being provided by PMUPUPI-
(iii). The unclassifled head of ECF receipt code with classification code R-90918 is
also being used to take receipts of funds received for a variety of reasons,
3. The above position suggesb that there are wide variations in Labs in taking
receipts of different components of prqect costs. This is leading to an incorrect &
incoherent picture of receipts under difierent receipt codes of ECF proiects and the
conect position of receipts is not being depicted in the accounts of respecttve
Labs/Units as also of consolidated CSIR.
4. lt is also notced ftom AMS data that the project accounts are being kept open
well beyond the date of completion of the project as there are ECF projecE where
expenditure is being incurred even beyond the date of completion of the proiect. lt has
also been a repeated audit observation that the flnancial closure of the ECF projects
is not timely done and UCs/SEs, duly reconciled with the subsidiary records being
maintained, are not submitted timely to the lunding/sponsoring agencies.
-contd.-

U^
Tsl. : +91-11-23711595.F4( : +91- 11-23325508, 23710618, 2371,1788,E-mail : fa@cair.res.in
 (2)

5. ln the llght of the above-mentioned position, the following instrucdons are being
isrued for complianca by all the GSIR Lab6/unib: -
(i). No expenditure may be allowed to bo incurred in ECF projecb beyond the date
of completion of the proiect except for setuement of adjustment entries r€lating to
financial transactions pertaining to the period prior to the date of completion of the
project. Details of all such cases may be recorded in writing and approval of the
Director/Head of the Lab/Unit may be obtained for the same. Furthel a project-wise
monthly report of all such cases, with specific reasons for incuning expenditure
b€yond the date of complelon of the project may be sent by the Labs/Units to
JS&FA, CSIR,

(ii). Financial closure of the ECF projects may be ensured in an expeditious manner
and the UCs/SEs, duly reconciled with the related subsidiary records being
maintained, may be timely sent to the funding/sponsoring agencies.

(iii) some Labs are creating/operating fictitious poect(s) which is in clear violation
of instructions already issued by cstR vide letter no. i (3)/Acctt/2ooi -2002 dated
17.U.20O2 (copy enclosed). Accordingly, the conc€rned Labs are requested to
fumish reasons for vioration of aforeseid instructions. Further, such fictitious
projects, wherever being operated may be closed forthwith under
intimation to cslR
Hqrs.

(iv). Heads of PME Divisions may be directed to ensure that head-wise/

classification code-wise break-up of sanctioned cost of aI ECF projects
as we as
head-wise/ classification code-wise break-up of every instarment
of funds received
projects in respective Labs/Units is promp0y notified
Iol.all .ECF by them without
failArithout deray to aI concemed incruding tne rinance
a ecc;unB division of the
Lab/Unit. Finance & Accounts div-ision shill ensure that no payment
in any ECF
project is made without receipt of break-up
of sanctjoned project cost as well as
instalment-wise break-up of funds received for that project.

(v)'-The information (proforma encrosed) regarding project

number-wise barances
of distributabre poruon amount avairable witi yorir-"uJrunitr
as on 31.12.2023 in
respect of all the,ECF proiecb/Technical services etc.,
as per CStn guidelines on
technology transfer & utirization of knowredgebase,
apptiioie rom -time to tinn,
may be informed to CSIR Hqrs latest by Si.' .Jan.,Zb2+
iurtner, the aforesaid
amounts may be transferred immediately to crode
R_90701/R_90702 (Royaty C
Premia for distribution).

(viil The portion of receipts in ECF projectsrrechnical

services etc. transferrable to
LRF may be transferred immediately, whereve-r lying p"nOing-to,
(proforma encrosed) of a, such amoun* transfened
t anser. A report
to LRF/HQRF of the Labrunit

-contd.-

0.4
 (3)

from 0'lstApril 2023 onwards during the cunent financial year may also be informed
to CSIR Hqrs latest by 31.tJan.,2024.

6. Keeping in view that some Labs have anformed that specifc classification code
for taking receipt of Lab share component, Project Fee component, interest earned,
corporate social responsibility etc. are not available in the presenuy available list of
classification codes, necessary action for revision of classification codes for receipt &
payment of ECF projects has been initiated. This will ensure uniformity and
standardization oftreatment of receipts ofECF projecB across CSIR Labs and ensure
presentation of correct data in the accounts of CSIR Labs as well of consolidated
CSIR.

7. I am looking foMard to your full co-operation & support in this important area
of responsibility so thet the accounts of CSIR reflect a coherent, true & fair view and
related audit observatrons being faced since long are taken care of.

With regards,
Encl.: as above urs sl Y,

(Chetan Pra
o\ 4
The Diroctors/Hoads
All CSIR Labs/lnstts/Units