FUNCTIONS OF ACCOUNTS DEPARTMENT
Every organization has some objectives and whether these are achieved or not is also monitored. It is also possible when all the transactions evaluated in terms of money and are recorded in a meaningful manner. The process of keeping these records are called “Accounting” and the department that does it is called as “accounts department”.
The main task of the railways accounts department is to advice management on the financial matters & maintain accounts in the prescribed Performa. A necessary part of this function is to scrutinize all transactions & bring to record only those transactions, which are legitimately chargeable to Railways revenues. This function is known as ‘internal check’. It is also the duty of the accounts department to settle all claims against the railways arising out of those transactions, which is found to be legitimate & regular.
The cost accounting is done particularly in the workshops of the Indian Railways where the costs are collected separately for each item of work done. It is essential to control each item of work done & also to decide the rates, at which the shop manufactured items, the expenses may be transferred to user department & credit taken into workshop manufacturing suspense.
Railway accounts department also render management accounting service while furnishing various information to the management & carrying out its function of tendering financial advice. All managerial decisions regarding new investments and other proposal for fresh expenditure are taken only in the light of the financial advice given by the account department.
The main functions of the account department are as under:
1) Internal checks with reference to extend rules/ orders of all the transactions affecting the Rlys receipt & expenditure.
2) Maintenance of account as per prescribed procedures.
3) Prompt disposal of all the claims against the railways.
4) Tender financial advice to the railway administration as and when required.
5) To ensure that there are no financial irregularities in the Rlys transactions.
6) To play the role of management accountant.
Scrutiny of the receipts
In scrutinizing the receipts, it should be seen that
1) The amount due to railways for services rendered, supplies made or for any other reason are correctly & promptly assessed and recorded as soon as these become due.
2) All receipts are properly brought into accounts. 3) All receipt are correctly classified & if these pertain to more then one Rlys the same are correctly apportioned among the Rlys concerned. Scrutiny of expenditure All the claims against the railways should be scrutinized with a view to ensure 1) The expenditure or remission of the revenue has been sanctioned by the competent authority and that the expenditure is incurred by the officer competent to incur the same.
2) All prescribed preliminaries to the expenditure have been observed such as framing proper estimate, approval by competent authority, provision of funds etc.
3) It is covered by the grant at the disposal of the officer incurring the same.
4) The expenditure does not contravene (against) any rules or orders in force.
5) The expenditure does not involve any breach of cannons of a financial proprietary.
6) The expenditure for a limited period is not admitted beyond that period without further sanction.
7) The expenditure has been properly & fully supported by vouchers & the payments has been so recorded as to render a second claim on the same account impossible.
8) In case of recurring charges payable on fulfillment of certain conditions, as certificate is forth coming to the drawing officer to the effect of that necessary conditions have been fulfilled.
9) Departmental receipts are not utilized to meet any expenditure expect where it has been specially authorized by the competent authority.
One of the important functions of accounts department is to see that the claims preferred against he railways are carefully checked & promptly settled. All the claims against the railways for services rendered are submitted in the form of bills by the concerned parties or by the departmental officers & the payments there of is arranged by the account officers by drawing requisite funds by the RBI/ SBI.
In order to enable the FA & CAO to carry out his functions successfully, he has a well organized office under his control divided into different branches consisting of units/ sections and each such unit/ section is to look after some specific portion of the work relating to the railway finance & accounting etc.
