VIEWS: 218 PAGES: 114


         Notes on

     Functions of CSD
          Role of
    C D A(C S D) & IFA




                                       Index *

       CONTENTS                                                   Page No.

    1. Canteen Stores Department an Overview                          4-10

    2. Accounting procedure                                         11-19

    3. CDA(CSD)- an Overview                                        21-28

    4. Administration Section                                       29-44

    5. D Section                                                    45-47

    6. O&M Section                                                  48-50

    7. Accounts Section                                             51-89

    8. FA&IFA Section                                               90-99

    9. Post Audit Section                                           100-111

    10. Frequently Asked Questions                                  112


       Glimpses of





      On India attaining independence in 1947, the canteen
      services then in existence were liquidated and a new
      organization by the name Canteen Services [India] was
      instituted under Govt. of India, Ministry of Defence letter
      dated 19.12.1947. The name of the organization has since
      been changed to Canteen Stores Department.

1.2   Main objectives of the Organization

a)    To make available to the troops at their line, consumer goods
      of high quality in varieties at competitively cheaper rates
      which are uniform throughout India.

b)    To generate reasonable profits to sustain the organization,
      permit growth and to apportion a major part of the profits to
      the troops for their welfare.

1.3      Departmentalization

      With effect from 1.4.77, this organization running on purely
      commercial lines has been departmentalized under the
      control of the Ministry of Defence. The cash balance on
      1.4.77 was technically merged with the revenues of the
      central Govt. In actual practic e, however, funds of the
      Department remained outside the Consolidated Funds of India
      till 31.3.89. On 1.4.89, the CSD funds fully merged in to the
      Consolidated Funds of India. Thereafter, all receipts are
      credited into the Government account and all expend itures
      are met out of the Budget allotments made by the Ministry of


1.4. Organization

a)     Board of Control

       The apex body controlling the activities of this organization
       is known as Board of Control Canteen Services at New Delhi.
       The Chairman of this Board is the Raksha Mantri. Other
       members are the Defence Secretary, Financial Adviser
       [Defence Services], Quarter Master General and reps, from
       Naval and Air Headquarters. The Dy. Director General
       (Canteen Services) is the secretary of this Board. The broad
       policies, which the Canteen Stores Department is required to
       follow, are laid down by this Board of Control.

b)     Board of Administration

       In Mumbai, there is a Board of Administration whose
       Chairman    is  the   General  Manager  (CSD)    with  one
       representative each of Finance and the QMG. The Finance
       representative is the CDA [CSD] and QMG‟s representative is
       the Deputy GOC. This Board of Administration is vested with
       the financial and other administrative powers in terms of
       Govt. of India letter dated 21st March 1979. The General
       Manager is also vested with financial and administrative
       powers as for the head of a department.

c)     Staffing.

       The organization is headed by G.M. of the rank of a Major
       General  and   supporting  Officers/staff working in  the
       Depots/H. O. Mumbai.

1.5.       Field Units.

       There are 35 depots (1 base dept and 34 area depots) spread
       all over India stocking a wide range of goods numbering
       about 3,000 and these depots work in close liaison with the
       Station Commanders on the Army side. The premier dep ot
       known as Base Depot is located at Mumbai and this Depot
       receives stores from manufactures [especially located at
       Mumbai] in bulk and transports them the other depots. Till
       recently Mumbai Depot receipts accounted for about 40% of
       the total CSD purchases. In view of extra transport cost and
       losses in transit suppliers are now dispatching the stores
       direct to the destination depots.


1.6.        Unit Run Canteens.

       These are the retail outlets created by the Army [Under AO
       584/73] and are placed in account with n earest Depot of the
       CSD. They place their demands on their accredited depots
       and draw their stores from the CSD depots against payment
       at wholesale rate fixed by the CSD HQrs. URC‟s sell them to
       the entitled consumers at the retail rates fixed by the CSD
       Hqrs. Interest carrying loans to Unit Run Canteens are also
       arranged by CSD on executing the prescribed Bond.

1.7       Distinguishing feature of CSD .

       CSD is the only Government of India Department, which
       purchases stores not for its own use but for retailing. Th e
       current range of CSD‟s inventory is over 3000 items and here
       are more than 4200 URCs, which are serviced by 35

            Depots (34 Area Depots and 1 Base Depot). The total
       sales of CSD is exceeding RS 4700 crores.

1.8    The department being a commercial organization settles all
       transaction in cash only and maintains commercial accounts
       like any other trading firm.

1.9. Fund.

       All items of expenditure relating to the CSD (Headquarters
       and Depots) both commercial and otherwise will be met out
       of Consolidated Fund of India subject to the budgetary
       allocation during the respective year.

            The receipts on account of realization from sales will be
       deposited. into the treasury centrally at Bombay for credit
       into the Government account (Consolidated Fund of India).

             CSD meets all their needs like pay & allowances of
       civilians, purchases etc from imprest released by CDA (CSD).



1)   Constitution:-

     Chairman:              Raksha Mantri

     Vice Chairman:         Rajya Raksha Mantri

     Members: 1.       Defence secretary

                  2.   Financial Advisor, Ministry of Defence(F)

                  3.   Quarter-Master General Army HQ

                  4.   Chief of Personnel Naval HQ

                  5.   Air officer-in-charge Administration Air HQ

     Secretary:        Deputy Director General Canteen       Services,
                       QMG‟s branch AHQ

2) Duties:

a)   To advise Government on general policy with regard to the
     Canteen service.

b)   To control general expenditure and the financial policy o f the
     Canteen Stores Department and to advise Government on the
     disposal of profits

c)   To make appointments, dispose of appeals and hold review as
     postulated in relevant rules.



1)   Constitution:-

     Chairman:Additional Secretary, Min of Defence [Finance]

     Members: 1.       Quarter- Master General

                  2.   Addl. Financial Adviser

                  3.   Min. of Defence [Finance]

                  4.   Chairman   Board of Administration & GM, CSD

     Secretary:        Deputy Director General Canteen Services.

2)   Duties:

     The Executive Committee will exercise all the power of the
     Board of Control unless they consider it fit that a certain
     matter be referred to the Board of Control. Certain specific
     powers that the Executive Committee will exercise are as

a)   To consider and decide matters beyond the powers of the
     Board of Administration/Chairman

b)   Issue of any directions or orders on matters within           the
     jurisdiction of the Board of Administration; wherei n         the
     Committee considers it fit to do so.

c)   To consider and recommend regular establishment of Canteen
     Stores Department Head Office, and its installations for
     sanction by the Government.


d)   To consider and decide claims for compensation made by the
     Unit Run Canteens (URCs) in respect of breakages, shortages
     and damages where the amount to be paid to the URCs on
     any one item at any one time exceeds Rs. 5000/ -.

e)   To act as appellate authority in respect of Groups C & D
     employees in terms of CCS (CC&A) Rules 1965 in cases where
     the penalty is imposed by the General Manager, CSD and to
     act as Reviewing Authority in cases where the penalty has
     been imposed by JGM-II & Vigilance Officer.

f)   To   review    and    the  delegate  powers  to   Board   of
     Administration    /    General  Manager  where    considered

3)   In respect of cases, which affect a particular service, the
     Executive Committee will obtain the views of the particular
     Service HQ before arriving at a decision.

4)   The Executive Committee will meet once a quarter or on as
     required basis at NEW DELHI or MUMBAI and will review the
     functioning of the CSD for the preceding quarter and take
     decisions on the cases put up to them.


        5. OUTLINE  ORGANISATIONAL                               STRUCTURE               OF      CANTEEN

                              Board of Control Canteen Services

                            Executive Committee-Board of Control

                                           Board of Administration.

                              General Manager & Chairman Board of Administration

JGM-I        J G M - II        AGM         R M NORTH          R M SOUTH       R M EAST         R M WEST        R M CENTRAL
                              (SECY).       B D BARI.          KHADKI.        NARANGI.          DELHI.          LUCKNOW.

   DGM             DGM                    Area Depots.        Area Depots.   Area Depots.      Area Depots     Area Depots
  (P&A).           (LIF).                   B.D.Bari.           Khadki.        Narangi.           Delhi.        Lucknow.
                                            Srinagar.          Banglore.      Misamari.          Ambala.          Agra.
                                           Udhampur.          Secund'bad.     Masimpur.       Jaipur ,Hissar     Bareily.
   DGM             DGM
   (MS).          (EDP).
                                           Bhatinda.            Vizag.        Dimapur.        Ahmedabad.         Jhansi.
   DGM            DGM                      Jalandhar.          Mumbai.        Kolkota.          Bikaner.        Dehradun
  (F&A).         (BASE).                      Leh.              Kochi.       Baghdogra.                          Meerut.
                                           Pathankot.          Chennai.       Ramgarh                           Jabalpur
                                                               Port Blair.




1.   This scheme covers the arrangement for payment and
     accounting in respect of Canteen Stores Department with
     effect from 01/04/1977.

2.   Consequent on the decision of the Government of merge the
     funds   of  the   Canteen   Stores  Department    with   the
     Consolidated Fund of India, it has been decided that the
     Department will continue to maintain the present system of
     accounts on a commercial basis.      However, to link the
     accounts the Head Office of the Canteen Stores Department
     will be placed in account with a Defence Accounts Officer
     through whom all the receipts and withdrawals will pass into
     Government Accounts.


1.   Defence Secretary shall be the Chief Accounting Authority for
     all transactions of the Canteen Stores Department and this
     responsibility will be discharged by him through and with the
     assistance of the Financial Adviser (Defence Services) who
     will function for and on behalf of the Chief Accounting
     Authority. Defence Secretary as Chief Account ing Authority
     will have over all responsibility for the smooth and efficient
     functioning of the accounting and payment set up and will be
     responsible for the certification of the monthly accounts,
     Appropriation Accounts, Finance and Revenue Accounts and
     Commercial Accounts Pertaining to the Canteen Stores



1.   The functions to be performed by the Financial Adviser
     (Defence Services) for and on behalf of the Chief Accounting
     Authority shall be the following in so far as the CSD is
     concerned :

a)   He will be responsible for the preparation of the Budget of
     the CSD in close coordination with the Ministry of Defence.
     He will be responsible for distribution of Budget allotments
     to the CSD and for ensuring adequate control of expenditure
     consistent with the needs of a Commercial Department.

b)   He will oversee the arrangements for payment to be made by
     the General Manager, CSD of the bills for purchases, pay and
     allowances of officers and staff of CSD, Office Contingencies,
     Miscellaneous Bills and Loans and Advances admissible to all
     employees including the provident fund claims (both the
     General Provident Fund and Contributory Provident Fund) and
     also for authorizing pension in respect of employees retiring
     from service.

c)   He will oversee the arrangement for disbursement       by the
     General Manager of the CSD for grants in aid for the   welfare
     of troops and quantitative discounts on sales, loans   to unit
     run canteens, as may be sanctioned by the Board o f    Control
     of the Canteen Stores Department.

c)   He will be responsible for rendering the consolidated
     accounts of the CSD, as compiled by the Defence Accounts
     Department, to the Controller General of Accounts, Ministry
     of Finance.


d)   He will be responsible for and on behalf of the Secretary of
     the Ministry for preparation of Appropriation Accounts
     relating to the CSD together with commercial accounts of the
     Department.     These accounts will be signed by the Chief
     Accounting Authority and incorporated as part of the
     Appropriation Accounts of the Ministry of Defence.

e)   He will be responsible for organizing through the CGDA a
     sound system of internal audit to ensure both accuracy in
     accounting and efficiency in operation as part of the

f)   He will be responsible for the introduction of an efficient
     system of management accounting best suited to the
     functional requirements of the Canteen Stores Department.



1.   CGDA will function as Principal Accounting Offi cer for the
     Canteen Stores Department and for this purpose will have an
     office of the Defence Accounts Department located at
     Mumbai. The Principal Accounting Officer will be responsible
     for providing funds to the Canteen Stores Department,
     receiving monthly statements of receipts and charges
     compiling monthly accounts and submitting them to the
     concerned authorities.    He will also keep a watch over
     expenditure   against  budgetary   allotments  and  will  be
     responsible for internal audit including audit of commer cial

2.   The Defence Accounts Officer will provide funds to the
     General Manager, Canteen Stores Department by issue of
     Defence cheques drawn on the Reserve Bank of India. The
     procedural instructions regarding the custody and verification
     of cheque books and other related matters at present in
     vogue in the Defence Accounts Office shall be followed.
     Similarly, with regard to the receipt for payment scrolls
     alongwith the paid cheques by the Defence Accounts
     Department from the Reserve Bank of India, verification of
     entries in the scrolls and paid cheques, their reconciliation
     with the records and their subsequent recording and disposal
     of the procedure prescribed for Defence Cheques will

     The eventual adjustments of the transactions relati ng to
     Canteen Stores Department against the Civil balances will be
     carried out in the same manner as followed by the PO of the
     Ministry of Defence (Inserted vide Annexure „A‟ to Govt. of
     India,      Ministry     of     Defence      letter      No.
     OSC/CSD/0109/PC/3119/D(MOV) dated 12/07/1978)



3.   On the basis of receipts and payments, transactions and
     other documents available in his office, the Defence Accounts
     Officer will compile monthly accounts and submit the same to
     the Principal Accounting Officer not later than the 20 th of the
     succeeding month.      The Principal Accounting Officer will
     submit the accounts to the final compiling authority by the
     5th of the second following month with a copy to the
     Financial Advisor (Defence Serv ices).    The accounts will be
     prepared according to the major, minor and detailed heads of
     accounts as well as according to the budgetary units of
     appropriation for facilitating preparation of the Appropriation



4.   General manager, CSD will, open Public Fund Accounts with
     State Bank of India and Punjab National Bank with effect
     from 01/04/1977. All cash balances standing to the credit of
     the Canteen Stores Department (India) on 31/03/1977 will be
     transferred to the newly opened Public Fund Accounts and
     treated as receipts into that accounts.

5.   General Manager, CSD and officers authorized by him will
     make all payments from the Public Fund Account in the same
     manner as the payments are made at present and in
     accordance with the relevant orders applicable to this
     Department. General Manager, CSD and the Depot managers
     will continue to have Imprest Accounts as at present.     All
     receipts of the Department will flow into the Public Fund
     Accounts in the same manner as these are presently
     deposited   into   the accounts   of  the   Canteen   Stores
     Department (India). Each transaction of receipt and payment
     will be classified and compiled to the appropriate head of

6.   The maximum ceiling limit of holding cash in th e Public Fund
     Account of the CSD will be Rs. 2 crores at the close of a
     month.   After preparing the monthly statement of receipts
     and disbursements in the first week of the following month,
     any funds in excess of Rs. 2 crores will be deposited with the
     Reserve Bank of India for credit to Major Head 871.

     A monthly statement of receipts and disbursements will be
     submitted to the Defence Accounts Officer in the form
     prescribed by the CGDA by the 10 th of the month following.

7.   In exceptional circumstances when large sums of money are
     needed, for example, payment of distributable share of
     profits,  or  some   other   contingency, Canteen  Stores

     Department is authorized to draw funds from the Defence
     Accounts Department up to the limit of total deposits of
     surplus funds made with the Reserve Bank of India during the
     Financial year. Any further requirement of funds subject to
     overall budgetary provision will be met only after approval of
     the Executive Committee of the Board of Control.

8.   General Manager, Canteen Stores De partment will have the
     authority to ask the officer of the Defence Accounts
     Department to take up performance Audit of Any aspect of
     his departments operations.    In such an event the DAD
     officer will carry out the task and report to the General



9.    The Provident Fund Accounts of all employees will be
      maintained by the General Manager and the existing
      procedure will continue to be followed for posting of
      individual accounts of subscribers, sanct ion and payment of
      advances and final withdrawals.


10.   Payment of all loans and advances to the staff as also to the
      unit run canteens will also continue to be made by the
      General Manager, Watching of the recoveries of such
      advances and maintenance of registers for this purpose will
      also be the responsibility of the General Manager.


11.   All inter-departmental and inter-governmental adjustments
      and payments will ordinarily be carried out by the General
      Manager by exchange of cheques / drafts in favour of
      department / government concerned, except that deduction
      from the bills on account of Income Tax, CGHS contributions
      and the license fee bills (house rent) will be booked directly
      under the final heads of account and will be reflected in the
      monthly accounts.


12.   Determination of pension and gratuity and authorization of
      the same will be done by the General Manager in accordance
      with the relevant orders. Determination and authorizatio n of
      provisional pension and gratuity will be regulated by the
      General Order of Government.      Canteen Stores Department
      will pay to the general revenues a contribution for pension,
      gratuity and contributory Provident Fund.

13.   For the sake of uniformity the f orms in which the monthly
      accounts are to be compiled and rendered by the Defence
      Accounts Department will be similar to those in use by the
      Pay Accounts Office for the Ministry of Defence.

14.   Except to extent modified by the Scheme prescribed herein,
      the existing rules and regulations in General Financial
      Regulations, Central Treasury Rules and Account Codes, etc.,
      to the extent applicable to a commercial department, will
      continue to be applicable and necessary records such as cash
      books, bills registers, etc, will be maintained by the Canteen
      Stores Department.





1.   Consequent on the Departmentalization of CSD in April 77,
     the CGDA created an organisation within the DAD known as
     the office of Jt. CDA [CSD] with functions akin t o Pay
     Accounts Office under the departmentalized system of
     accounting. The office of Jt. CDA(CSD) was elevated to
     CDA(CSD) in 1982.

2.   Besides the establishment at his Headquarters, the CDA
     controls 5 LAOs (CSD) located at Udhampur (J&K), Delhi,
     Narangi   (Assam),   Chennai   and   Mumbai.  Each   LAO   is
     responsible for the Local Audit of Cash/Stores Accounts
     maintained by the Depots of CSD in his Area. At present each
     LAO is allotted seven to eight depots.

     ORGANISATIONAL CHART OF CDA & IFA(CSD)                       MUMBAI.


                                                                   I GNARAN




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Sections and responsibilities of MO(CSD).

     CDA(CSD) performs all the functions of a regional controller
except for Store purchase Section, E Section, IRLA Section. Audit
of personnel bills and claims of CSD is limited to post audit.

     In addition to above CDA (CSD) undertakes internal audit of
commercial account of CSD, Receipt and Payment account, audit of
case files relating to procurement committees besides attending
the same.

      LAO‟s function is more or less on the lines of the LAOs of
Army Units with slight variations to suit the commercial nature of
accounting at the Depot level. The Accounts set -up of CSD is fully
integrated at Headquarters and the functions of the LAOs is thus
more or less confined to checking of numerical accounts of stores
in the Depots. They place emphasis on the size of the inventory
levels and bring to the notice of CDA [CSD], items of surplus and
slow/non-moving stores with a view to taking remedial action in
consultation with CSD HO who may direct diversion of stock
and/or   underselling  the   stores  with   a   view  to  avoiding



a)   All the receipts realised by CSD on account of sales, etc.,
     and credited to the Public Fund Account will be adjusted by
     credit to Head 0075 per contra debit to head 8671. This will
     include the closing cash balance of CSD on 31/03/1977,
     which will be credited as Revenue receipt on 01/04/1977.

b)   All the expenditure of the Canteen Stores Department met
     from Public Fund Account will be adjusted by Debit to the
     approximate read per contra credit to Head 8671.

c)   The receipts and payments which are adjustable under other
     Heads of Account will be adjusted under the appropriate
     Head per contra debit / credit to Head 8671 as the c ase may

d)   The amount in excess of the working balance of Rs. 2 crores
     in the Public Fund Account will be credit in cash to Head
     8671.    The Defence Accounts Department will raise a
     corresponding debit to Major Head 8675 „RBI deposits‟ at the
     time of compiling the accounts.

e)   After the close of each month, Canteen Stores Department
     will forward to the Defence Accounts Department a monthly
     statement of account in the prescribed form showing the
     opening balance in the „Public Fund Account‟, receipts and
     payments adjustable under the various Heads and closing
     balance in the account.


a)   The receipts on account of realisation from sales will be kept
     separate and will not be utilised for meeting any of the items
     of expenditure relating to CSD. To achieve this, procedure
     has been devised as mentioned below, to deposit realisation
     by the depots on account of sales etc. into the treasury
     centrally at Bombay for credit into the Government account
     (Consolidated Fund of India).


b)     All items of expenditure relating to the CSD (Headquarters
       and Depots) both commercial and otherwise will be met out
       of Consolidated Fund of India subject to the budgetary
       allocation during the respective years as shown below:

b)     With a view to enabling CSD HO and the depots to meet the
       expenditure of various types like purchase of stores, payment
       of Pay and Allowances, transportation charges, payment of
       excise duty, octroi charges etc., the HQ of CSD and Depots
       will be provided with the following resource s:-

(i)    Imprest Account - For the organisation as a whole, funds
       required for meeting expenditure of the above types will be
       made available on a monthly basis by the CDA (CSD) by issue
       of a cheque for the requisite amount with which the Imprest
       Account will be operated with Punjab National Bank/State
       Bank of India. For this purpose, GM CSD will project to the
       CDA (CSD) the entire requirement of his organization
       (including depots) on a month to month basis within the
       budgetary allocation.        The imprest will be recoupable
       normally   on    fortnightly   basis, with reference to the
       requisition for recoupment at the request of GM CSD.

(ii)   To enable the depots to incur expenditure of similar type at
       their end, the Depot Manager will be provided with an
       Imprest, based on requirement, by GM CSD out of the funds
       provided by CDA (CSD) and held in the imprest. This imprest
       will be operated by the Depot Managers for making payments
       of all items of expenditure, both commercial and otherwise
       including Pay and Allowances, TA/LTC, Misc. charges etc.
       However, in the case of Depots the present system of
       meeting expenditure of such nature out their Public Fund
       Account will continue till such time as GM CSD is able to
       transfer funds from his imprest to Depot imprests.      This
       system, however, in no case will remain operative beyond 30
       Apr. 1989.

(iii) In addition, the GM CSD at HO and the Depot Manager of all
      Depots will be authorised a Public Fund Account which will be
      used exclusively for purposes of depositing/accounting of all
      receipts realised from sales, rents. Etc.


(iv)   Depot Managers, who will be authorised a Public Fund
       Account, will deposit all cheques/cash received on account of
       sales of stores to units etc. into this account. This amount
       deposited into Public Fund Account of the Depots will be
       transferred under telegraphic transfer arrangements with the
       Bank on a day to day basis to the Public Fund Account
       maintained by CSD HQ at Bombay.        CSD will terminate any
       existing  long/short-term    deposits  and   investments  and
       deposits with RBI towards “due to the Govt.” and “Misc.
       Accounts” and arrange to credit such amounts to CFI.

(v)    GM CSD will arrange for remittance of the amounts
       transferred from various stations to his Public Fund Account
       into the treasury on day to day basis and sent to the
       Treasury Receipts to CDA(CSD) for adjustment.

(vi)   The existing arrangement of sale of stores to Units the
       procedure of Accounting, submission of various reports and
       returns by the depots, acceptance of cheques from URCs by
       Depot Manager will continue as at present.     Similarly all
       Monthly accounts in Head Office, Reports and Returns,
       preparation of Annual Accounts, Budget Returns will continue
       in the same manner as being done at present.

(vii) GM CSD will submit the Imprest Account to CDA(CSD) on
      monthly basis supported with relevant vouchers.    Similarly,
      monthly account of remittances along with Receipts, Accounts
      related to PF will be forwarded to CDA (CSD).

(viii) The existing scope and percentages of audit of various
       accounts by CDA (CSD) will also remain as at present.
       However, the scope and percentage of audit would be revised
       by the CGDA after the new procedure is in vogue for a period
       of   say   6   months    and   if  considered     necessary,
       modified/enhanced suitably.


(ix)   The   existing  facilities regarding   the   remittance  and
       discounting of document facilities provided by the Banks will

(x)    All facilities being provided to URCs by the CSD at present
       will continue.

(xi)   In the revised procedure GM CSD will not be required to
       deposit the fund held in excess of 2 crores at the end of t he
       month in to the Reserve Bank of India as the receipts are
       deposited into the Consolidated Fund of India on day to day

(xii) The total expenditure vis -a-vis receipts will be received
      initially on quarterly basis i.e. 30 th June, 30th September,
      and thereafter on monthly basis on 31 st Jan, 28/29th Feb and
      31st March. A report will be sent by Board of Administration
      the executive committee for their information.       All such
      expenditure, which though not incurred in physical terms
      would, however, get include d in the proforma accounts and
      taken into consideration while computing total expenditure.

(xiii) The pension and DCRG will continue to be sanctioned by CDA
       (Pension) Allahabad.    Payment will however be made by
       DPDOS/ Treasuries or Banks, like any other Defence Civilians.
       The expenditure will continue to be reflected in CSD‟s Annual
       Accounts (Proforma Account).

(xiv) It will be desirable that 100% linking of all the subsidiary
      documents maintained by CSD HO and depots in support of
      all payment in the nature of advance s etc. and recoveries
      made there against by the CDA (CSD) will have to be taken
      care of by the Defence Account Department.



                 LOCAL AUDIT OFFICES(CSD)
   MUMBAI                DELHI                CHENNAI                BD BARI              NARANGI

Base Depot Mumbai       Area Depot            Area Depot             Area Depot           Area Depot
   Area Depot            Lucknow               Bangalore               Jalandhar             Kolkota
      Mumbai               Delhi                 Cochin                Pathankot           Bhagdogra
      Khadki              Bareilly              Chennai            Leh, RTD B D Bari        Narangi
   Ahmedabad              Meerut                 Vizag                  BD Bari             Misamari
      Jaipur              Ambala                Sec'bad               Udhampur              Ramgarh
      Bikaner            Dehradun              Port Blair               Srinagar           Masimpur
Service Book Audit      Agra, Hissar            Jabalpur                Bhatinda            Dimapur

                Performance        of   CSD    in     the   Last     five    Years.     (Rs   in

                                                                                         % change
           Head of Accounts      2000-01   2001-02     2002-03     2003-04    2004-05    over 03-04
           Sales                 334952 371233 420851 448099                    474942           5.99
           Closing stock          30093 33308 30002 36258                        38417           5.95
           Opening stock          34637 30093 33308 30002                        36258          20.85
           Purchases             281402 319754 354232 385090                    403326           4.74
           Trading expenses       22860 26073 30420 30848                        38047          23.34
           Losses written of          3    0.2      0      0                         0
           Quantitative discount   9383   9927 13268 14027                       14887           6.13
           Gross profit           16759 18694 19625 24390                        20841         -14.55
           Staff expenses          3572   3674   3731   3803                      4551          19.67
           Operating expenses       877    959   1020   1014                      1117          10.16
           Net Profit             12405 14098 14981 19673                        15476         -21.33


                                      ADMIN SECTION


The objectives of Administrative section are :

The primary responsibility of preparation of Budget Estimates, Control of Expenditure,
Maintenance of Accounts, looking after Recruitment and other staff matters, maintenance
of discipline and decorum in the office, purchase of stores, is entrusted to Admin Section
by the Head of the Office.

Maintain a Relative seniority of all staff and officers

Promotion :- Framing a panel for the Departmental Promotion Committee and conducting
             the meetings for persons who come under the zone of promotion.

Since promotion is earned by dint of hard work, good conduct and result oriented
performance as reflected in Confidential Reports , Maintenance of Confidential reports is
the prime responsibility of Admin section.

Requirement of staff and Officers to be placed with Headquarters, if required placing the
requirement with agencies like SSC etc.,

To maintain discipline and decorum in the office by bringing into light the provisions of
CCS (CCA) Conduct Rules.

Disciplinary proceedings.

Staff matters relating to maintenance of Service records, terminal benefits of staff
transferred to Pension establishment.

Any other work relating to administrative nature entrusted by the Head of Office from
time to time.


                          JOB DISTRIBUTION CUM AUDIT DRILL

Administrative section deals with the following.


1.     In situ promotion
2.    Gp D to C (Peon to RC)
3.    RC to Clerk
4.    Clerk to Auditor
5.    Auditor to Sr. Auditor
6.    Sr. Auditor /Auditor to SAS part II Passed, SO (A)
7.    SO (A) to AAO
8.    Issue of Promotion orders in respect of orders received from CGDA.
9.    Publication of Part II orders of all cadres.
10.   The work involves review of cases/DPC/promulgation's of orders


Annual ACRs, MTCRs, in respect of clerk, Auditor, Sr. Auditor, SO(A), AAO, AO, SAOs,
communications of adverse entries/finalisation, assessment reports etc.


2. Yearly Transfer reports.
3. Compassionate transfer request : processing of
4. Transfer in / Transfer out - Issue of Part II OO
5. Furnishing seniority list as per cut off date as and when called for by CGDA.
6. Furnishing volunteers panel for CGDAs


2. Issue of Part II O.O
3. Furnishing blank forms to pensioner
4. Processing of completed forms
5. Pension calculation


6. Incorporating in data sheet
7. Forwarding of PPO to Bank/ PDO
8. Encashment of leave
9. Voluntary retirement cases processing/finalisation.


Processing the cases for outside employment applications of staff
Processing lien on service


Dealing with Discipline including CAT cases and related correspondence there of


1. Acceptance / Issue of part II OO
2. Other miscellaneous items of work. like training of new recruits, Vigilance reports, DAD
     Day report, correspondences regarding Association work and any other      work given
     by AAO & AO


1.   Monthly Reports ( Total no. of reports -26)
2.   Quarterly Report (Total no. of reports -32)
3.   Half Yearly Report (Total no. of reports -16)
4.   Yearly Report (Total no. of reports -15)


     Calling for reports from LAO's & sections, consolidation, & correspondence on the

LEAVE (Local audit office and Main office):

1. Publishing orders regarding closed holidays
2. Work relating to grant of special CL


3. Sanctions under SR135 for leave in conjunction with Ty.duty


1. Correspondence with CGDA , placing of requisitions with SSC/ Employment Exchange

2) Scrutiny of dossiers & all matters regarding recruitment till its finalisation

1. Reservation of Vacancies

2. Maintenance of rosters

3. Authorised strength DAD &related matters

4. Review under rule 56 (J)

5. Review of cases for retention in service/DPC& rendering report CGDA

Parliament starred/ unstarred question
Time bound disposal of questions.

Annual demand for establishment

Matters regarding delegation of powers, nomination of nodal officers, allotment of
account numbers etc.

Placement of indents for forms required for office use.

Late Attendance Report

 Report file Q.R./H.Y.R./Yearly Report


Scrutiny of documents, calling for of papers as per HBA rules & submission for sanction of
the competent authority, duly processing the documents
Mortgage deed watching registration & other related documents as per HBA rules
Insurance yearly renewals, condonation of delay etc.


Annual Property returns - Gp A and B.
Application seeking permission vide CCS Conduct rules to acquire movable/immovable
property & vetting of documents for orders of competent authority.



1]         Monthly Report
2]         Quarterly Report
3]         BE / RE Report

In addition the following is also dealt with by Admin section :

1.      All matters regarding the work of Cashier
2.       Preparation of Contingent Bills for Contingent / EDP grant.
3.       Purchase of petrol and rendering report on economy consumption petrol /Diesel in
         Govt. Vehicle.
4.       Rendering of report on office Contingency and preparation of Budget for contingent
5.      Honorarium
6.      DAD Project Accommodation
7.      DAD Office Accommodation
8.       DAD Residential Accommodation
9.       CGS Pool Accommodation
10.      Inspection Report
11.      Maintenance & Keeping current the following registers :

12.      Consumable Goods, Dead Stock, Liveries, Rubber Stamps, Addresses, Initials of
         Staff & Officers, Typewriter/Duplicating, Opening/Closing Duties, Stationery,
         Consumable Account, Telephone bills and all other register in the section.

13.      AMC renewals & attending to breakdown to office equipment
14.      Preparation of Over Time proposals of staff car driver
15.      House keeping & Other miscellaneous work entrusted by AAO/SAO/ACDA.
16.      Issue of Part II O.O for ty.duty /course of officers & staff of CDA(CSD)
17.       LTC
      i) Processing the requisition.


     ii) Counter signature of adjustment & requisition of LTC / Pt duty claims, and entry in
        service book, duly verifying title dependency.
18      Maintenance of service book, posting of leave, part II OO. & other notifications,
        service verification, Audit of service books, nominations, dependency certificates
19.     Maintenance of Roster of SAO/AO/AAO/SO(A)/Sr.Aud/Adrs/Clerks/Steno/Hindi
        Typist/ Record Clerks.
20.     SAS Part I and II Exams, DPC, publishing results, revaluation, intimation of centres

21.     Weekly Reports
22.     Section Orders.
23.     Weeding out of old records.
24.     Maintaining the Register of Identity Card of Gazetted and Non Gazetted.
25.     Receipt /Distribution of secret /conf./CGDA/Fax/Telg/ daks & maintenance
        of record
26.     Preparation of absentee statement
27.     Monthly activity report
28.     Regularisation of leave
29.     Leave Part II O.O publishing
30.     Maintenance of leave accounts, & correspondence there of, Intimation of leave to
        pay section for recovery on account of HPL / EOL / Leave Not Due etc./Child Care.
31.     Sanction for grant of Annual Increment is to be ensured that Govt. servant has
        rendered 06th Months qualifying service from Jan. To July i.e. absence has been
        regularised as EOL other than Medical Grounds.


                                    AN (PAY) SECTION

Objectives of AN PAY Section-CDA(CSD)

1. Drawl of Pay and allowances of staff & officers of Main Office &
     Sub-offices ( 5 LAOs )
2. Monitoring of Budget as per sanctioned allotment
3. Projection of Budget Estimates/Revised Estimate to Hqrs.,
4. Admitting all types of personal claims of the staff and officers
     (GPF,RTF, CEA,LTC,Medical,claims advances such as Scooter,Car,Festival,,etc.)
5. Pre-audit of TA/DA claims
6. Posted strength of the office-
3 IDAS, (2) Group-B – 14 (3) Group – C 61 (4) Group- D – 3
7. The work of the Section is carried out on systems. The Pay & allowances is carried out
      on FOXPRO Package & all types of personal claims and TA/DA claims are carried out
      on Office Automation Package. Both the packages are carried out sucessfully.




      The Pay & Allowances of the entire staff of CDA (CSD) & Sub-Offices are centrally
drawn by Main Office. Pay and allowances are drawn as per various rules, orders and
administrative instruction for granting and regulating different benefits as made effective
from time to time. Manual audit checks are carried out with reference last pay drawn, any
additions and recoveries to affected are altered in the last charge. Accordingly, changes
are entered in pay sheet to be generated through computers. Pay sheets are generated
on Visual Foxpro Package .A parallel run of Office Automation Package is also being
successfully carried out in the office. In addition, with the Govt. of India introducing a
New Defined Contribution Pension Scheme replacing the existing system of Defined
Benefit Pension System and which has been made applicable to all new entrants to
Central Govt. Service. Hence this office has one new entrant so far who has been covered
under the Scheme. Accordingly, the pay and allowances are drawn duly granting and
regulating different benefits entitled to him.(10% of basic pay plus DA + EQUAL
 Preparation of Monthly Pay Bill of CDA(CSD) including Sub-offices:
The spare copy of the previous Month will be working copy of the current month.

1) Post VIth CPC – DNI in the revised pay structure is accepted on 01st July uniformly
   every year.
2) Increment is granted in the revised pay structure @ 3% of the sum total of the last
   pay in the pay band & Grade Pay applicable. Before granting it is verified with
   reference to last pay drawn in the pay band and sanction is obtained from competent
3) Out of 3 copies prepared, one copy is endorsed to AN section, 2nd to CCDA(P)
   Allahabad and 3rd is retained as office copy.

3) Posting of loans and advances drawn by the employees in the demand registers of
   GPF, FA, Scooter, HBA etc.

4) To effect the leave recovery from pay and allowances, if any HPL/EOL is availed


5) To effect the recovery of T A/DA/LTC, if intimation is received from T A section for a
   minus payments of the claims

6) Rent recovery is effected on the basis of rent bills received. Otherwise recovery is
   made as per the previous month‟s rent bill and accordingly acknowledged

7) calculation of interest on Scooter/HB advances is also done and recovery is watched

8) Pay bill is tallied and punching medium is prepared by compiling to the respective
   code heads in the receipts and charges of the PM

9) Cheque slip is prepared and issued to the stations wrt the LAP after ascertaining the
   Ty.duty station of the Local Audit staff

10) Enfacement is prepared on the outer sheet of the pay bill

11) Entered in the paybill register and submitted for . signature duly countersigned

12) Disbursement voucher No. is allotted and entered in the D V Register and D P Sheet
    is prepared and forwarded to "D" Section for issue of cheque

13) On receipt of the paid bills the same is scheduled to PCDA(P) Allahabad for post
    audit. 15) GPF variation statement (decrease/increase in subscription /recovery on
    Fresh GPF Advances) forwarded to JCDA (Funds) Meerut duly compiled with actuals.

14) Schedules of advances of scooter HBA, Festival, and cycle are forwarded to A/C Sn.

      GPF CLAIMS (Applies only to those appointed on or before 31.12.2003)

     Eligibility : -        It is ensured that temporary Govt. servants with one year's
     service, re-employed pensioners are not covered by Contributory Provident Fund
     Rules, and all permanent Government servants have to subscribe compulsorily at a
     minimum of 6% of pay (maximum 100 % pay) every month to General Provident
     Fund. It is also seen that persons completing one year's service during a month are to
     subscribe from the following month, i.e. recovery commencing from the pay for the
     month following the once in when they complete one year's service. Further no
     recoveries are made during the last three months service before supernnuation. (For
     eg. In case of employees retiring on 30th June, subscriptions are not to be recovered
     from the pay of April, May and June)


1)     Entitlement of advances/final withdrawals are verified with reference to the rules laid
      down in GPF Rules, 1964.

2)     Ensured the claim is supported with relevant documents viz. CCO-9 in original,
      application form duly completed in all respect alongwith the stamped receipt
      Contingent Bill in duplicate

3) Sanction is accorded from the Competent Authority and in special cases as per the
   genuine of the claim special sanction is accorded for making payments.

4)      Final withdrawal/advance paid is noted in the Demand Register/final withdrawal

5)     on receipt of sanction duly got countersigned and cheque slip and punching medium
      is prepared duly signed by the Audit Officer DP Sheet is prepared and forwarded to D
      Section for issue of cheque.

6) An advance copy of form B is prepared and forwarded- to JCDA(Funds)

7) Original CCO9 received with the bill is returned back to the individual concerned

8) At the end of the month a consolidated report in form B is forwarded to CDA(Funds)
   Meerut duly reconciled with the printed actual.

     HBA /Scooter/Cycle

Sanction for grant of the Scooter/Cycle is obtained from the Head of the Office by Admin
Section and further payment and monitoring of the said advances are carried out by AN-
Pay section. For House Building Advance sanction of the Head of Department competent
to sanction is obtained by Admin. Section.

1) On receipt of sanction letter from AN Section Contingent bills received are entered in
   the Demand Register noting the principal amount with the rate of interest.

2) Prepare Cheque slip, Punching medium, DP sheet allotting D V No. and forward to "D"
   Section for preparation of cheque also the schedules are forwarded to Accounts

At the end of the month the contingent bills are scheduled to PCDA(P) for post audit



1) On receipt of sanction from Admn. Section, Demand Register is verified to ensure no
   recovery on previous FA is outstanding

2) Entry in the Demand Register is made

3) Cheque Slip, Punching Medium and Schedules are made.

4) D.P.Sheet is prepared and the bill is forwarded to "D" Section duly passed tor issue of


Orders are awaited


A)      PAYBILLS :

1) Transferred In : With reference to the application received from the Individual for
   provisional payment of salary

2)    Office Note is prepared and submitted to the Competent Authority for
     Pay bill with reference to the details given in the Individual's application is prepared

Enter in the Provisional Payment Register

Prepare Cheque Slip and Punching Medium

Bill is forwarded to "D" Section with DP Sheet duly passed for preparation of cheque

Entered in the LPC in Register and LPC is called for from where Individual is transferred


In cases of Transferred out, Last charge is checked and details of pay etc. are noted and
LPC issued to the concerned CDA also duly noting therein demands if any.

Entered in the LPC Out Register and acknowledgement is watched and posted in LPC

i) In supersession of earlier orders based on the recommendations of 6 th CPC, CEA & RTF
    is merged accordingly reimbursement of these claims as per the criteria laid down in
    the revised OM.
ii) Admissible amount is paid through Regular Pay Bill. If otherwise bill is Passed and
    Cheque Slip and Punching Medium is prepared and forwarded to D Section alongwith
    the DP Sheet


i) On receipt of Govt. orders, bill is prepared with reference to the % of DA increased

ii) While preparing the bill, Individuals on EOL/HPL are taken into account to ensure that
    they are not paid DA for which they are not entitled.

iii) Linking of all last charges is carried out

iv) With reference to the LAP Cheque slip is prepared in favour of the Depot where the
    Audit party is camped at.

v) Alongwith the Puching Medium & the DP Sheet the bills are forwarded to "D" Section
   for preparation of cheque

vi) In case of transferred out Payment Authority is prepared and forwarded to respective


(i) On receipt of Govt.orders, the bill is prepared for the admissible amount taking into
   account the EOL period, linking with the March paybill of the previous year

(ii) Cheque slip, PM is prepared and on preparation of DP Sheet the bill is forwarded to
     "D" Sn. duly passed for issue of cheque.



On receipt of sanction from Admin Sn. the Bill is prepared for the individuals listed in the

ii) The cheque slip and PM is prepared and after preparation of DP Sheet the bill is
    forwarded to "D" Sn for issue of cheque


i) Requisition received is checked with the pay bill

ii) Entered in the Demand Register

     iii) Cheque slip and PM is prepared and forwarded To "D" Sn with DP Sheet for issue
     of cheque

     iv] An entry is also being made in the LPC when the same is forwarded to the new
      Organisation where the individual is transferred out



i) An office note is prepared and sanction of the Competent Authority is obtained for
    release of the payment

ii) The bill is prepared for the admissible amount

iii) Cheque slip and PM is prepared and the bill is forwarded to "D" Sn alongwith the DP
     Sheet for preparation of Cheque


i) On receipt of sanction from AN Sn calculation of admissible amount is verified and bill is

ii) Cheque slip and PM is prepared and bill is forward                          ed to "D"Sn
     alongwith DP Sheet duly

passed for preparation of cheque.


-ii) A note of payment made on account of CGEIS and Encashment of leave is made in the
     service Book of the individual to whom the payments are made


i) Compute the data of payments made on Pay & Allowances etc. in the computer for 12
    months and verify the correctness with reference to monthly pay bills.

ii) Distribute the print -out to the staff members for ascertaining the correctness by the
    respective individuals and intimating IT if any to be recovered with the amount and
    number of instalments spread over upto February to AN-Pay SectIon.

iii) One copy of the print-out is kept as an Office Copy and IT is calculated with reference
     to rules on the subject and recovery if any required is effected through pay bills up to
     the last month of the financial year (i.e.February).

iv) By April/May i.e. the period when the I. T assessment of the employees working in
   this organisation have to be submitted to the IT department, the one line figure is
   tallied with the printed compilation for the month of March of the financial year

v) Prepare Form 16 and distribute to staff Members

vi) One copy of the Form 16 in respect of individuals from whom IT recovery is effected is
    forwarded to IT Department.


i) Verify the correctness /genuineness of the claim by checking countersignature on all
    the prescriptions, receipts of medical stores from where the medicines are purchased
    and hospital receipts (pathology and x-ray department in case of Indoor patients)

ii) Certificate A & B (Essentiality certificates are endorsed by the Doctors who treated the

iii) Correctness of the claim w.r.t. number of Consultation in 10 days, as per AMA' s
     Certificate in a Dispensery/Clinic


iv) Medicines purchased as shown in the receipts of the Drug Stores are w.r.t. the
    prescription and to the quantity mentioned therein

v) To check with the list of medicines admissible and restrict accordingly

vi) Medicines purchased are from reputed Stores, which has Sales Tax Registration

vi) Claims are endorsed by the Doctors who treated the patient

vii) Entry to be made in the register maintained for the purpose to check the register of
    advances for medical treatment to ensure that no advance is paid for the claim
    preferred (in case of indoor patients)

viii) Endorse for payment and prepare cheque slip / PM and forward to "D" Section with
     DP Sheet for preparation of cheque.


i) On receipt of Budget Allotment letter from CGDA' s offfice, enter the same in the
   Budget Register maintained for the purpose.

ii) One copy to be given to AN Section to ensure that the expenditure on office
    contingency does not exceed the allotted Budget.

iii) Prepare Monthly Expenditure Return with reference to the compiled actuals (Printed
     compilation) with the punching mediums held in the section and forward to CGDA' s

iv) Quarterly report on Pay and Allowances with the office expenditure and TA to be
    rendered to Pay Research Unit,Minitry of Finance (Defence) under intimation to HQrs
    office duly reconciled with the M.E.R of 3 months of that Quarter.

v) Revised Estimate and Budget Estimate Report for the consecutive two financial years
   (succeeding years) to be rendered with reference to report of expenditure incurred for
   the last 3 years (preceeding years) for the detailed heads of accounts.



     Nature of duties in respect of staff & officers of Main Office are to conduct Super
     Reviews, to attend Training courses and when nominated.


     The sub-offices of CDA (CSD) are LAOs, located at five different locations, (Delhi,
     B.D.Bari, Chennai, Mumbai and Narangi)

     The nature of work of LAOs predominately being internal audit of CSD Depots,
     allocated according to the geographic locations of the Depots. The team does the
     internal audit of 6 to 7 Depots under their jurisdiction and are constantly on audit
     tour., An approved Local Audit Program is received in the Section from FA Section.
     Based on Local Audit Programme the following audit checks are exercised while
     admitting claims on TA/DA of LAOs.

1. Audit of expenditure – whether the expenditure is covered by approval local audit
     programme and is proper.
2. Audit of Sanction : Move sanction accorded by the competent authority is proper and
     TA/DA claimed for Mandays proposed and accepted.
3. Any observation such as deviations etc. noticed in the programme are bought to the
     notice before the commencement of the journey i.e. when TA/DA advances are
     claimed on cash requisition. This avoids disallowance for irregular journeys at later
4. Claim preferred on Form No. IAFA –1716 and all columns completed.

5. Claim preferred is in original and has not been admitted earlier
6. Mandays claimed for claiming DA is as per the LOCAL AUDIT COMPLETION
     CERTIFICATE received from LAO .
7. Whether correct rates of DA is as per entitlement allowed and as per time spent in
     journey and halt.
8. RMA to be restricted to notified rates as per distances involved.
9. As far as move of staff & officers of Main Office are concerned Part II O.Orders are
     looked for in support of each TA/DA requisition/claim. All the above mentioned audit
     checks are exercised .
10. The work of TA/DA is run on the Office Automation Programme, wherein the claims
     after recording receipt from R Section and carrying out a manual audit check are
     passed through Office Automation Programme and after which a final cheque is
     prepared in „D‟ section.
11. Since the drawal of TA/DA allowances have been restructured Post Vith CPC. Claims
     received on account of Food Bills, Hotel Stay & TA for local journey are admitted only
     against supporting documents.

                      DISBURSEMENT SECTION


Objective of disbursement section is to arrange promptly for
disbursement on behalf of the DAD & Defence Services in the
allotted spheres, safeguarding the interests of Govt.

Duties of 'D' section are

(I) To generate/prepare cheques in respect of all passed bills
received from Audit Sections.

(ii) To    dispatch   cheques,   cheque   slips   and   cash   assignment

(iii) To prepare schedule III and Re-conciliation statement.

(iv) To indent for Cheque Pads, Cheque Books from Govt. Press

(v) Receipt safe custody and accounting of cheques Pads, MICR
cheque Books, Defence Cheque Books & cheque Rolls Etc.


      All bills passed for payment by the audit sections along with
Daily payment sheets received in 'D' section are carefully checked
to ensure that every DP Sheet has been signed in full by the
concerned AAO/AO of the audit section. DP Sheet is detached and
arranged in serial order and handed over to the computer operator
for generation of cheques and Sch III through system for each
section. There after, the bills, cheque, DP Sheet and Sch III are
checked for the correctness of the amount payable, name and
address of payees and the treasuries as shown on the bills, DP
Sheet and cheque slips. It will also verified that the signatures of
the officer in charge tally with the specimen signatures On record
in "D" section and stamp the bills with the paid stamp and note

the cheque No and date there in and put his initial. The bills thus
completed are submitted to the AAO together with the cheques for
supervision and submission to the officer In charge along with Sch
III for each section with D P number and cheque number noted
against each item there in.


     On return of cheques along with bills etc from the officer in -
charge, the cheques are handed over to the official concernedl,
for detachment from the paid vouchers and further handed over to
the dispatcher. The dispatcher scrutinizes them with a view to
seeing that these have been duly signed and alterations if any
have been attested. Thereafter cheques are dispatched through
Speed Post system.


      At the close of the day a reconciliation statt. is printed o ut
to maintain a daily record of the reconciliation made between the
totals of daily payment sheet and sch III section wise & group
wise. There after sch III is dispatched to account section for
pairing the paid cheques received from focal Banks.


     Cheque Forms are printed at Govt press Nasik on special
paper. Yearly Indents for supply of cheque pads and Books are
placed on Govt Press Nasik and TOC on receipt showing the
number of Books and Pads received. Half yearly stocktaking is also
carried out by the BOOks detailed by the CDA and stock position
submitted to CDA for information and necessary orders if any.



A register    for receipt and issue of cheque Pads/Books are
maintained    in the section, the balance in hand is struck off
immediately    after each issue and stock verified half yearly with
the balance   shown in register.


                         O&M and Training Cell

Objectives and functions.

The important objectives of Tra ining Cell are as follows:-

1.    Training of new recruits.

2.    In-house training at operative level.

3.    Training for candidates appearing for SAS exams.

4.    Identification of training needs.

5.     Proper identification of trainees being sponsored for various
      courses being run by attached RTCs.

6.    To arrange for     conduct   of        Seminars/Workshops   on   certain
      selected topics.

7.    Chalk out annual program of Super reviews to be conducted
      by IDAS Officers.

Functions of Training cell

1 The Controllers Training Committee shall be responsible for
  planning and organizing suitable training programs either in -
  house or through RTCs / NIDFM. Training Managers shall have
  to play a crucial role in providing the essential inputs to the
  CTC. The annual plan of training within a broader frame work of
  long term prospects plan shall be prepared by Training section
  of Controllers office in respect of their own staff before the
  beginning of the financial year.

2.    Induction and In-Service training program for imparting
     necessary training. The suitable infrastructure shall cover the

      Physical Infrastructure, Faculty and Course Material as well.
      The Training Cell in the Controller‟s office shall endeavor to
      develop suitable infrastructure for organizing

3. Attempts shall be made to institu tionalize the SAS library in
   the Controllers office, Area Accounts offices. The library shall
   contain copies of all the relevant codes and manuals , SAS
   examination guides, past question papers etc .

4. The functions of the training cell is to instruct, trai n and guide
   the employees of the department in various aspects of work
   done in the Department, its potential to conduct the system
   study and come out with changes in the system by avoiding
   redundancies, by incorporating better work ethics etc.

      The following points are to be given due attention         while
      organizing the following courses / seminars / workshops.

a.     Seminar/workshops on certain selected topics.

b.     Other emergent areas within the Department as well –like the
       IFA system in the wake of enhanced delegation to the
       Executive which imposed their own demands on Training.

c.     Short term Seminars on current topics of relevance.

d.     Any other courses with the specific approval/on the direction
       of the HQrs office.

The various other functions of the Tr aining Cell are: -

i)      Monthly training courses as per approved calendar of courses.

ii)    Quarterly meeting/ conference of AAOs of sub offices.

iii) Sponsoring of officers and Staff to RTCs/ NIDFM

iv) Sponsoring of officers and staff to ISTM Delhi.

v)   All reports and returns related to Training cell.

vi) General Correspondence etc.

In addition to the above the following are also dealt with in this

1. Fix the pay of CSD employees on Promotion.

1. Verify the Last Pay Certificates issued by CSD.

2. Verify the past service rendered by the employees transferred
   from other departments to CSD.

3. Verify Counting of past qualifying service of CSD employees
   rendered with other departments for pensionary benefits.


                               ACCOUNTS SECTION


1)   To provide accounting and financial information to executive
     authorities for the performance of their Management functions.

2)   To provide timely and accurate figures to Govt. for preparation of
     financial accounts of the Defence Services.


     The work in Accounts section may be broadly divided into the
     following categories:

1)   Preparation of Schedules from Punching             Media   and   supporting
     vouchers in respect of remittance Heads.

2)   Maintenance of Debt Head Registers

3)   Settlement   of   transactions   under   Defence    proforma     accounting

4)   Reconciliation of balances as per monthly statement of closing
     balances of   RBI with the balances worked out in the Books of


5)    Watching clearance of the outstandings in respect of suspense
      heads under the Defence Proforma account “Remittance into
      Banks/Treasuries.”        “Cheques and  Bills”, “Reserve  Bank
      suspense”, “Reserve Bank suspense English Transactions” and
      Reserve Bank suspense unclassified and the “Remittance heads -
      Accounts with States etc.,

6)    Accounting and adjustment     of    transactions      relating   to   DAD
      Receipts and Expenditure.

7)    Processing of transactions relating to Exchange accounts between
      Controllers of Defence Accounts

8)    Preparation and submission of Budget Estimates for which Defence
      Accounts Department is responsible.

9)    Watching progress of expenditure against allotments in respect of
      locally controlled heads, and rendition of monthly statements of
      expenditure to the local controlling authorities and checking of
      budget estimates received from them.

10)   Review of compilation

11)   Preparation of Review of Balances      in   respect    of   Defence   and
      Defence Accounts Department


                           Job Description

1) Monitoring of Budget of CSD

2) Payment of Weekly Imprest Requisition of CSD

3) Preparation of Punching Medium – Receipt & Payment Account

4) Verification / Audit of Receipt & Payment Account of CSD

5) Reports and Returns of CSD

a)     Monthly Report

i)     Recovery of loans

ii)    Appropriation Report

iii)   Charged Expenditure Report

b)     Quarterly Report

i)     Qty Report of outstanding under Major Head 8674 Security
       Deposit made by Govt. against code head 0/020/99 to be
       rendered to CGDA New Delhi

ii)    List of Outstanding DID Schedule under Defence Exchange
       Account rendered to EDP Central Meerut.

c)     Yearly Report

i)     Central Finance Account to be rendered to CGDA New Delhi

ii)    Statement of Central Transaction to be rendered to HQrs.
       Office New Delhi

iii)   Appropriation Report

iv)    Annual Consolidated Abstract of Progress Register in respect
       of Exchange Account sent to CGDA New Delhi

v)     Qtly. & Yearly progress report on account of list of
       outstanding DID Schedule Defence Exchange Account sent to
       CGDA New Delhi.

6) Review of Balances

7) Maintenance of Debt Head Register

8) Adjustment of Original MRO

9) Adjustment of DID Schedules and its re lated correspondence.


      i)    Originated items

      ii)   Responding items

10)    Adjustment of Duplicate MRO

11)    Reconciliation of R.B.I. Account (Monthly)

12) Preparation of Punching Medium (Credit Scroll / Debit Scroll

13) Dispatch of daily main scrolls / date wise mont hly statements
   of RBI/SBI

14) Reconciliation of 0/020/80, 0/020/81 & 0/020/83 and
   correspondence regarding settlement of suspense with
   respective banks.

15) Maintenance of D.P. Sheet registers for Section 001, 002,
   003, 004, 34 and its linking with Debit Scrol ls


16) Despatch of Punching Medium to EDP Centre (Weekly)

17)   Linking of Punching Medium with printed compilations

18)      Reports and returns

      i) Fictitious code head (0/020/61)

      ii) PAO AG Suspense

19)     Maintenance of audited M.I.R.‟s

20)    Watching of recovery of Debit Notes

21)     Annual Accounts:

22)    Cash Book and Cash statement audit with reference to Bank

23)    Verification of Cash Reports (Main & Imprest Account)
       furnished by L.A.O.‟s

24)    General work


                          AUDIT DRILL



           Defence receipts constitute the amount realised on
     account     of  issue  of  rations    of   payment,   sale of
     surplus/obsolete stores through auction, services rendered to
     other agencies, etc. These dues are remitted through MRO.
     MRO contains the particulars of CONTROLLER OF DEFENCE
     ACCOUNTS into whose accounts the amount is credited, on
     account of what the amount is credited and by whom the
     amount is deposited etc. MROs are prepared in triplicate.
     Cheque/Cash is tendered into Bank with MROs in duplicate.
     Original duly receipted is delivered to the depositor.
     Duplicate along with credit scroll is sent to t he CONTROLLER
     OF DEFENCE ACCOUNTS concerned. Bankers send necessary
     reports about the receipt to RBI, CAS, Nagpur through their
     link cell. RBI CAS Nagpur sends every month credit advice for
     the gross receipts.


          Credit scroll is numbered serially for a financial year.
     Credit scrolls on receipt are checked to ensure that the
     DMROs enclosed therewith pertain to the CONTROLLER OF
     DEFENCE ACCOUNTS concerned and total amount of DMROs
     enclosed therewith pertain to the CONTROLLER OF DEFENCE
     ACCOUTS concerned and total amount of DMROs tally with

     that shown in the credit scroll. The amount of receipts is
     then adjusted in the accounts by debit to RBI deposit head
     with minus debit to Suspense head (00/020/80).

          The DMROs are then segregated Bank and date -wise
     and entered in the MRO Register indicating the month‟s
     account in which adjusted.

        LINKING OF MROs :

           Original copy of MRO (OMROs) delivered by the Bank
     duly receipted is sent by the Uni t to the audit sections of the
     OMROs are adjusted by Audit Section by debit to Suspense
     head 00/020/80 with contra credit to relevant service/RDR
     Head as the case may be. Adjusted OMROs are received in
     Accounts Section alongwith Punching Medium.        Total of the
     amount is reconciled with the printed compilation. These
     OMROs will then be linked with the corresponding entries
     relating to the DMROs already recorded in the MRO Register
     indicating therein the month‟s accounts in which the OMROs
     were adjusted by Audit Section. When entries relating to both
     DMRO and OMRO exist against each other, the item is treated
     as linked and passed and endorsed as such against each
     entry. The total amount of unlinked MROs should ta lly with
     the amount outstanding under Suspense head 00/020/80.

          RBI Central Accounts Section, Nagpur will furnish advice
     of total receipts for the month. They also furnish and bank
     and datewise advice indicating the bank and the amount of
     receipt. This will be agreed with the total recorded in the
     Register Wanting Advice/scroll will be called for.

          Cases where OMROs have been received and adjusted
     but for which DMROs have not been received will be taken up
     with the Bank. In the event of bank denying the d eposit, the
     case will then be referred to Audit Section for investigation,
     as fraud cannot be ruled out.


           Similarly, a list of items of DMROs remaining unlinked at
     the end of the quarter will be extracted to Audit Section duly
     supported by DMROs. With reference to the list, the audit
     Section will intimate Accounts Section the Month‟s accounts
     in which the OMROs were received and adjusted. In cases
     where OMROs were found to have been lost, the adjustmet
     will be carried out by Audit Section with reference to DMROs.

          There may arise certain cases where Unit may claim
     refund of the amount credited through MRO. In such cases,
     where payment has become due on the basis of adjustment
     made with reference to OMRO, it must be ensured that the
     relevant DMRO has actually been received from Bank and
     adjusted to guard against wrong payment being authorised.

         Remittance  into Defence          Services    from   Bank
         Cheques drawn on Banks:

           Cash   Flow: Various    Army  Units/Formations    prefer
     personal and Unit claims to CO NTROLLER OF DEFENCE
     ACCONUTS concerned. After necessary audit check and
     compilation of the expenditure to the relevant code head the
     Bills/Vouchers are passed on to „D‟ Section with Daily
     Payment Sheet (DP SHEET). DP Sheet contains Disbursement
     Voucher NO. (DV NO), particulars of Bank, payee and the
     amount of cheque. Cheques are issued by the „D‟ Section for
     credit of the amount to Public Fund A/C of the Unit or for the
     payment to the payee. Similarly, Garrison Engineer (GE) of
     MES Formations and Officer I/C of Military Farms etc issue
     cheques out of their cash assignment. Schedule III is
     prepared simultaneously with issue of cheque indicating
     particulars of cheque No. Bank on which drawn, payee and
     the amount.

          Schedule III and DP Sheet (in the case of Au dit Section)
     are then received in the Accounts Section. They are recorded
     section and month-wise. The total amount of Schedule III


     and the amount reflected in the printed compilation are then

          CsDA are authorised to issue cheques on various
     branches of RBI, SBI and subsidiary banks like State Bank of
     Mysore etc. These cheques are honoured by Bank concerned
     without any limitation imposed on them. Cheques are,
     however, issued only to the extent for which allotment of
     Fund exists for a particular type of expenditure. Executive
     authorities draw cheque only on the Bank on which cash
     assignments have been placed by the CONTROLLER OF

          Bank after making payments, send the paid cheques
     alongwith debit scroll to the concerned CONTROLLER O F
     DEFENCE ACCOUNTS on daily basis, numbered serially for a
     financial year to facilitate tracing the missing debit scroll if
     any. Name of the CONTROLLER OF DEFENCE ACCOUNTS and
     Code No allotted are indicated in cheques to facilitate the
     Banks to identify and send the paid cheques to the correct
     CONTROLLER      OF   DEFENCE      ACCOUNTS.       Banks   send
     simultaneously a report to the RBI CAS Nagpur through the
     link cell concerned. Based on these reports, RBI CAS Nagpur
     issues debit advice for each month indicating the gross
     payments made to the particular CONTROLLER OF DEFENCE
     ACCOUNTS during that particular month. In order to facilitate
     adjustment of cash flow into Defence services in the
     subsequent Month‟s account itself, progressive total of gross
     payments/receipts is intimated through Telex/Fax.

           Amount of debit scroll received is entered in a
     manuscript register date-wise, bank-wise. Separate page is
     allotted to each Bank. Grand total of the Register will be
     agreed with the debit Advice received for that month from
     RBI CAS Nagpur. Date-wise advice indicating the name of the
     Bank and the amount involved is also received. Daily payment
     shown therein in respect of each Bank will be agreed with
     the respective entry in the Register. A list is then made
     indicating particulars of wanting debit scroll/advice for
     subsequent reconciliation by the Bank. These processes are
     then   carried  out     through  Computer.    Adjustment  is
     immediately carried out by crediting the Reserve Bank

     Deposit head (0/021/00) by contra adjustment to Suspense
     head (00/020/81) on account of payments made by Bank. In
     case paid cheque and relevant advice relating to other
     received, the amount of such transaction will be transferred
     through Defence Exchange Account.

               Please also refer to FOCAL POINT BRANCH SCHEME
     introduced wef. 1.10.93

    ‘FOCAL POINT BRANCH SCHEME for Adj. of Dr. & Cr.

     Under the existing system, each dealing Treasury Bank
despatches the Debit/Credit scrolls along with the concerned
instruments to each of the concerned CsDA. In replacement of this
system, the concept „ONE CDA – ONE FOCAL POINT BRANCH‟ has
been introduced for SBI with effect from 1 st October, 1993. The
following is briefly the procedure of Focal Point Branch Scheme.

     In respect of each CDA, according to the location of the Main
Office of that CDA, one branch of each Bank will be nominated as
Focal Point Branch for that CDA. For example, for CDA Madras, SBI
Saidapet is the Focal Point Branch for SBI Transactions. This FPB
will receive from the dealing branches two copies of the
Debit/Credit Scrolls along with the Paid Cheques/MROs. All these
scrolls will be consolidated by the FPB (including the scrolls of its
own branch) and a Main Scroll will be prepared on a day -to-day
basis.   Original  of   the  Main   Scroll  along   with  the   Paid
Cheques/MROs will be given to the respective CDA on a day -to-pay
basis who will verify its correctness immediately and give a
confirmation of the figure to FPB within 24 hours of its receipt.
Simultaneously, the FPB will report the figure of the Main Scroll to
the RBI CAS Nagpur through its Govt. Accounts Dept., Mumbai or
the Link Cell. The FPB will ensure that:


     a) the mistakes/discrepancies pointed out by the CDA are
        rectified after proper verification t hrough error scroll
        wherever necessary as per the prescribed procedure

     b) the copies of the Main Scroll duly verified by the CDA are
        kept on its record

The mistakes/discrepancies in scroll, resulting on account of
erroneous entry of debit/credit, will be re ctified by withdrawal of
erroneous credit or debit by minus credit or minus debit as the
case may be and not by passing contra debit/credit adjustments
by the banks.

At the end of the month FPB will prepare a Date wise Monthly
Statement (DMS) and give 4 copies to CDA for verification latest
by 3rd of the following month. CDA will verify the statement within
3 days of its receipt and return two copies to the FPB duly
certified. FPB will send one copy to RBI CAS Nagpur or SBI GAD
Mumbai as the case may be. CDA will send one copy direct to

On receipt of the DMS and confirmed figures CDA will carry out
the necessary adjustments as already laid down for debit/credit

        LINKING OF PAID CHEQUES         :

          Paid cheques after adjustment are segregated section
     and date-wise. Each paid cheque will be linked with the
     corresponding entry in the Schedule III and endorsement to
     that effect made in the Sch III and cheque. When cheques
     remain unlinked for more than three months after the month
     of issue, they should be extracted to audit section for

     investigation. When cheque is cancelled and fresh one is
     issued, the amount will be credited to the head cheques and
     bills and minus credited to the same head (0/020/81) which
     was credited when the cancelled cheque was initially drawn.
     When no fresh cheque is issued in lieu, the amount will be
     minus credited to the head 00/020/81 and minus debited to
     the relevant service head which was earlier debited.


           When a cheque is reported lost, stop payment order will
     be issued to the Bank on which cheque was drawn by Regd
     Post with Ack due, by Audit Section. An intimation regarding
     noting the stop payment order will be obtained from bank
     concerned if the currency of the cheque is not lapsed. If,
     however, the currency of the cheque has lapsed, it is
     sufficient that postal Acknowledgement is received and
     recorded. The banks do not take responsibility for the
     payment already made before the receipt of stop payment
     order. After receipt of intimation from Bank and also
     indemnity bond from private parties, a request is received by
     Accounts Section from the Audit Section for the issue Non
     payment Certificate. Accounts Section will then verify the sch
     III concerned and debit scroll concerned to ensure that the
     cheque in question has not already been paid and cheque
     received. NPC will be carefully noted in the Sch III against
     the relevant entry. In the event of the cheque reported lost
     and for which NPC has already been issued, an d cheque
     received duly paid, it will be adjusted to code head 0/020/87.
     The matter will be reported to Audit Section for investigation
     and recovery of over-payment.


               SUSPENSE ACCOUNT:

           Receipts and payments which cannot, in the absence of
     full particulars be allocated to any head of account or head
     to which the transaction is likely to be adjusted is not known
     will be compiled to suspense head – 0/020/61.Orders of the
     Gazetted Officer in charge will be taken before an item is
     classified to the suspense head. No amount should be
     credited to Govt by debit to suspense head as credit should
     follow and not precede the realisation. This head is operated
     by the EDP Centre (CDA (R&D)) to transfer the outstanding
     amount of fictitious RD&R Code head remaining unadjusted at
     the end of the financial year.

           This head is also operated by EDP to adjust the
     difference between the    Receipt and charge side of the PM
     and fictitious service head with the prefix „75‟. Audit Section
     is furnished with the particulars of DV No. & month in which
     suspense head has been operated. Similarly, list of RD&R
     heads treated as fictitious is also sent to Audit Section.
     Readjustment in respect of these cases should be carried out
     immediately and before the close of the accounts. Any
     amount outstanding against these code heads indicates that
     the expenditure of the year has not been correctly accounted
     for in the relevant head of account in the accounts of the
     same year. This is viewed as highly irregular. It must be
     ensured that no amount remains outstanding against the
     suspense as well as fictitious code head at the end of the
     financial year.


1.   Defence    Exchange  Account   will  be   operated for the
     adjustment of the following types of transactions. In all
     other cases, the receipt and charges pertaining to Defence
     Services will be finally compiled in the books of the
     Controllers by whom they are realised or incurred.


(i)    Transactions pertaining to debt and remittance heads

(ii)   Transactions for settlement or adjustment f or which a
       particular CDA is responsible e.g., transaction with the Govt
       of Australia which are settled centrally by the CDA (Army)
       Meerut, transactions between Defence Services of India and
       Pakistan are settled centrally by CDA SC Pune

(iii) Payment to Naval/Air Force personnel from Army Sources and


            A defence inter- departmental schedule (DIDS) is
       prepared in IAF (CDA) 338A for each original item compiled
       to Defence Exchange Head with reference to th e particulars
       shown in the original vouchers, punching media etc.. For this
       purpose,   duplicate  copy   of  punching     media    alongwith
       supporting   vouchers/details/schedules    is    received   from
       compiling section in Accounts Section. In order to ensure
       that no omissions occur, list of original items allotting DIDS
       No. is received from CDA (Army) Meerut. These are recorded
       in   the   DIDS-OUT    REGISTER.     DIDS     is   prepared    in
       quadruplicate. The DIDS number allotted is indicated therein.
       Two copies of DIDS are sent to the respon ding CDA
       concerned alongwith necessary details/vouchers. One copy
       will be sent to Audit Section retaining one as Office copy.
       The acknowledgement will be watched from the responding
       CDA. Schedules will also be prepared in respect of items
       which do not pertain to Defence Exchange Account heads but
       have    been   erroneously   compiled    thereto    and    which
       consequently appear in the detailed list sent by CDA (Army)
       Meerut. Such schedules will be endorsed with the remarks
       „Erroneous, may be “Redebited/Recredited “.



          List of items originated against a Controller will be
     received from CDA (Army) Meerut to enable the CDA
     concerned to ensure that all DIDS have been received for
     taking action to respond. These will be recorded in D IDS- IN
     REGISTER. DIDS, on receipt, will be centrally responded by
     Accounts sections and supporting schedules are sent to
     concerned Audit section. Wanting DIDS will be called for from
     the respective CDA who has originated the DIDS. The DIDS is
     responded in Part “B” of IAF (CDA) 338 -A and forwarded to
     EDP Section which will treat them as Punching Medium. This
     is essential to avoid discrepancy in capturing the DIDS No. in
     the printed compilation.


     DIDS No. allotted to the Exchange account head operated in
     respect of originating item is already on record. When such
     item is responded, the DIDS No. allotted to that item is also
     captured in the printed compilation. Both these identical item
     is then paired through Computer and cl eared from the list.
     The items which could not be paired are either originating
     items for which responses are awaited or responding items
     representing wrong or double responses. List of such
     outstanding items is received from CDA (Army) Meerut for
     pairing and clearance in respect of the following cases.

     (a)     Where DIDS No. has not been indicated

     (b)    Where more than one       originating   item   has   been
            responded as one item

     (c)    Where DIDS No. has been wrongly indicated.


5.          Following    Point   should   be   strictly   observed   while
     responding :

     (a)   Response should be made on part „B‟ of the DIDS itself
           except in respect of MES. In respect of MES, a
           statement indicating the DIDS No. and amount adjusted
           in that Punching Media should be enclosed with
           Punching Media forwarded to EDP.

     (b)   Original   credit/debit  is   adjusted  by   responding
           debit/credit plus or minus as the case may require i.e. a
           (+CH) should be responded with (+RT) and vice versa
           and (-CH) as (-RT) and vice versa.

     (c)   Code head for the originating CDA should be operate d
           for response. Controller should not operate his own
           code head for response/origination.

     (d)   Each DIDS should be responded separately in Class VIII
           Voucher. UAs will, however, use class IV furnishing
           statement containing position of DIDS responded.

     (e)   If any transaction is found not adjustable wholly or
           partly, the DIDS should not be returned but adjusted in
           full with contra adjustment by debiting/crediting the
           originating CDA to the extent not adjustable. Clear
           narration of adjustment should be furnished in the

     (f)   Amount of response should be the same as originated.
           Fractions of the amount originated should not be
           rounded off while responding.

     (g)   Normally, no item should appear as outstanding for
           more than two consecutive list received from CDA
           (Army) Meerut. If any item is however found appearing
           in the third list, it should be a matter for special inquiry
           and action.

     (h)   Defence   Exchange    Accounts  for  March    Final  and
           supplementary should include only responding entry and
           no original items should appear except with t he consent
           of the other Controller.



              POINTS                   CONSEQUENCES OF NON-

                                       This is to be used by other
                                       Controllers     only.     If
 1. The Defence Exchange Code no.      operated by CDA(SC), it
 for CDA(SC) is 074.This should        will   become    FCH    and
 never be used by the Section/office   warrant discp. measures.
 under CDA(SC) under any of their      Similarly    other    CsDA
 Originating/Responding                should not use their own
 adjustments.                          originating/responding
                                       code heads.

 2A. The DE Code Head consists of 3
 parts eg. 00/070/21. The first will   Operation      of     these
 always be zero. No category code      category   codes    render
 head like 09,04 should be written     impossible the mechanical
 therein.                              linking of the originating
                                       and responding items. The
                                       DIDS       are      shown
                                       outstanding even though
                                       the DIDS have been acted
                                       upon by the Sections.

     The Second part specifies the CDA  to whom ( and not by
whom) it is responded or against whom ( and not by whom) it is
originated. The D.E. Code is 70 more than the CDA code „0‟ as
illustrated below:


i)     While responding, the D.E. has to be reckoned from CDA code
       indicated on the top of DIDS form. Even if it is not legible,
       the same can be determined from the DIDS no.

ii)    A debit is passed on in the form of a charge (and at times as
       (-) Receipt of the P.M.) It is always preferable to compile a
       debit/credit as a charge/receipt of P.M.

iii)   While responding, a (+) charge has to be responded as a (+)
       Receipt and not as a (-) charge. This applies mutatis
       mutandis to (-) charge or (+) receipt or (-) receipt operated
       by originating controller.

iv)    DIDS amount should not be responded in piece meal. If the
       supporting vouchers/details are found acceptable and are
       allocated at different stages, the DIDS can be respo nded at
       one time after all the vouchers get either allocated/rejected.
       Piece meal responding also will not help mechanical linking
       of DIDS.

               Common shortcomings to be avoided

    Numerous responding items appear in the EDP list with the
DIDS No. as „0‟

This is because of the following :

1)     UAs do not attach a Statement of DIDS responded, in support
       of the bulk figures appearing in their class IV P.M.

2)     Similarly while originating items against other CsDA, UA
       should again attach a statement indicating the amounts item-

3)     Each DIDS should be responded to individually. They should
       not be clubbed and adjusted.

     Therefore,    while  originating   debit/credit,   carry    out
adjustments separately for each transaction so that vouchers
pertaining to different section/UAs of the same CDA do not get
combined. If so done then responding CDA will not be in a
position  to   get   the  DIDS   adjusted   by   different   offices


            While sending Class IV PM to EDP Section, UAs will
hence forth enclose wherever DIDS codes heads ar e operated,
separate statement for originating and responding items. These
statements will give the details CDA -wise and within CDA item
wise, if it is originating item or DIDS wise if it is responding item.
The UA will certify on the PM as to how many sta tements are
enclosed and also whether the details there in have been checked
and tallied with the bulk figures on the PM.

      Audit sections will use only Class VIII vouchers for
responding DIDS. In case they use a Class II Voucher for Say,
rectification of an erroneous response, they will ensure to clearly
the DIDS NO., Month and Year. Separate Class II Voucher will be
made for each DIDS.

     UAs will operate MES transfer head only for transfer between
GEs within the area of that CDA. They will not operate t his head if
the transferor or transferee GE functions under another CDA.

C.D.A                      CDA         CLASSIFICATION CODE NO.

                           CODE    ORIGINAL       RESPONDING

C.D.A. Patna               00          0/070/21   0/070/22

C.D.A.(P) ALLAHABAD        01      0 / 071 / 21   0 / 071/ 22

C.D.A. (O) Pune            02      0 / 072 / 21   0 / 072 / 22

C.D.A. CC Meerut           03      0 / 073 / 22   0 / 073 / 22

C.D.A.SC Pune              04      0 / 074 / 21   0 / 074 / 22

C.D.A. (ORs) Bangalore     05      0 / 075 / 21   0 / 075 / 22

C.D.A. (WC) Chandigarh     06      0 / 076 / 21   0 / 076 / 22

C.D.A. (Fys) Calcutta      07      0 / 077/ 21    0 / 077 / 22


C.D.A. (AF) Dehradun       08    0 / 078 / 21   0 / 078 / 22

C.D.A. (NAVY) Mumbai       09    0 / 079 / 21   0 / 079 / 22

JCDA (Funds) Meerut        10    0 / 080 / 21   0 / 080/ 22

C.D.A. (ORs) N. Meerut     11    0 / 081 / 21   0 / 081 / 22

C.D.A. (NC) Jammu          12    0 / 082 / 22   0 / 082 / 22

Zonal Office (PD) Madras   13    0 / 083 / 21   0 / 083 / 22

AO DAD Min of Def New      14    0 / 084 / 21   0 / 084 / 22

C.D.A. (CSD) Mumbai        15    0 / 085 / 21   0 / 085 / 22

C.D.A. (HQrs) New Delhi    16    0 / 086 / 21   0 / 086 / 22

C.D.A. (ORs) C.Nagpur      17    0 / 087 / 21   0 / 087 / 22

C.D.A. Madras              18    0 / 088 / 21   0 / 088 / 22

C.D.A. (R&D) New Delhi     19    0 / 089 / 21   0 / 089 / 22

C.D.A. (P. D) New Delhi    20    0 / 090 / 21   0 / 090 / 22

C.D.A. Gauhati             21    0 / 091 /21    0 / 091 / 22

C.D.A. Lucknow             22    0 / 092 / 21   0 / 092 / 22

C.D.A. (BR) Delhi          23    0 / 093 / 21   0 / 093 / 22

C.D.A. (R&D) Bangalore     24    0 / 093 / 31   0 / 093 / 32

C.D.A. Secunderabad        25    0 /093 / 41    0 / 093 / 42

CDA Jabalpur               26    0 / 093 / 51   0 / 093 / 52

CDA (AF) New Delhi         27   0 / 093 / 61    0 / 093 / 62

CDA(R&D)Hyderabad          28   0 / 093 / 71    0 / 093 / 72

CGDA New Delhi             29   0 / 093 / 81    0 / 093 / 82

CDA (IDS) New Delhi        30   0 / 093 / 91    0 / 093 / 92

CDA (SWC) Jaipur           31   0 / 070 / 31    0 / 070 / 32


        BUDGETARY       CONTROL     –   LOCALLY         CONTROLLED
       HEADS :

            Administrative/Executive authorities are allotted funds
       to meet the expenditure on the basis of the budget proposal
       made. They are responsible for watching the progress of
       expenditure and ensuring that expenditure does not exceed
       the allotment of funds. In orde r to enable these authorities,
       in this respect CDA will render to the allottees, monthly
       statement of expenditure by 25 th of the month following that
       to which they relate. The statement will show the amount of
       allotment,  and progressive total of expenditu re upto that

     2. CDA will simultaneously bring to the notice of the allottee
     and their immediate higher authorities, cases where the
     progress of expenditure is abnormally heavy or unusually low.
     Controlling authorities will take prompt action

       (a)   to regulate their future expenditure so as to restrict it
             within the  sanctioned allotment or to obtain additional
             allotment and

       (b)    to surrender such portions of the allotment as are not
       likely to be required for    the rest of the financial year.

     3.      Controlling authorities are requested to take prompt
     action sufficiently early to avoid delay in settlement of claims
     as no payment in excess of sanctioned allotment under locally
     controlled heads can be made save in respect of         pay and
     allowances and rations under the personal orders of the CDA
     who may authorise provisional payment. When controlling
     authorities fail to take prompt action for additional allotment
     of funds because provisional payments have been authorised,
     the CDA will ask the authority concerned with a copy to next

     higher administrative authority concerned take urgent action in
     the matter adding a warning that further provisional payment
     will not be made unless application for additional allotment is
     submitted through him. If the warni ng has no effect, and the
     CDA is personally satisfied that there has been a laxity on the
     part of the administrative authority he shall refuse further
     provisional payments and report his action to Defence Hqrs and
     DFA through CGDA.

          Budgetary Control over Defence Expenditure

1) The Defence Services Budget Estimates are presented in six
Demands; five on Revenue Account (one each for the Army, Navy,
Air Force and Ordnance Factories and one on Capital Account).

2) The expenditure for which provision has been made in the
Defence Services Budget Estimates, falls broadly into the
following categories:-

a)     Pay and allowances of the personnel of the Armed Forces,

b) Payments to Industrial       Establishment   employed   in   stores
Depots, Factories, etc.,

c) Transportation and miscellaneous expenditure,

d) Stores Purchases,

e) Works expenditure, and

f) Capital Outlay such as, Capital works, purchase of vessels,
   plant and machinery.

3.     Expenditure falling under category (a) mentioned in para 2
       above represents for the most part obligatory charges
       dependent upon the strength and composition of the Armed
       Forces  maintained    for the   Defence  of  the   country.
       Government of India in the Raksha Mantralaya (Ministry of
       Defence) decide on the policy regardin g strength and


     composition of the Armed Forces. Hence the responsibility for
     implementing the decision and ensuring proper control over
     expenditure is vested with the Armed Forces Headquarters
     authorities and no distribution of provision is made to the
     subordinate authorities.

4.   Expenditure falling into categories (b) to (f) mentioned in
     para 2 above, is in general, susceptible to control against
     budget provision the various administrative and executive
     authorities subordinate to the Government of India. The
     three important stages in exercising this control are -

     (1)   Initial distribution of budget grants,

     (2)   Watching expenditure against allotments, and

     (3)   Re-appropriations.

              Initial distribution of budget grants

     The ultimate responsibility for ensuring that e xpenditure
does not exceed the corresponding budget allotment rests on the
Principal Staff Officers at the Service Headquarters, within whose
control, the relative activities fall. This responsibility is usually
undertaken on their behalf by the Director a dministering the
activities concerned. To cite an instance, the Director of Military
Training is responsible, under Deputy Chief of Army Staff, for
controlling expenditure on specialised training institutions and
schools. It is for these officers to see th at the amount provided in
the Defence Estimates falling under (b) to (f) of para 2 above and
subject to their respective controls are allotted to commands and
lower formations. The authorities at the Service Head quarters
responsible for allotting the funds to lower formations keep back
certain amounts as „Reserve‟, to meet unforeseen requirements
from the formations. The quantum of this „Reserve‟ is decided by
the   Controlling    Officer  at   the   Service    Headquarters,  in
consultation with the Deputy Financial Ad viser concerned. The
authorities at lower stages in the chain of control have the


discretion to hold in Reserve a portion of the allotment placed at
their disposal.

      All  communications        of   allotment  from    the   Service
Headquarters issue with the      concurrence of the respective Deputy
Financial Advisers and these     orders are endorsed to the Controller
General of Defence Accounts      and Controllers of Defence Accounts.
Sub-allotments by command         or formation Headquarters are also
notified to the Controllers of   Defence accounts.


      It is the Primary responsibility of the authorities to whom
allotments are made, to watch the progress of expenditure and to
see that the expenditure does not exceed the allotment. To
facilitate this, the Controllers of Defence Accounts render monthly
statements to the allottees showing the Serial Nos., of claims
admitted in audit and the amounts debited against the allotment.
In the case of Military Engineer Services, the instructions laid
down in the MES Regulations are followed. The Controllers of
Defence Accounts also keep a watch on the progress of
expenditure against sanctioned allotments and bring to the notice
of the allottees and the immediate higher authorities, cases in
which the trend of expenditure in their opinion, is abnormally
heavy or unusually low.

      This procedure enables the controlling authorities to initiate
remedial measures either by regulating the trend of expenditure
or by approaching higher authorities for additional allotment with
full justification if the progress of expenditure is heavy. They may
also surrender such portion of the allotment as is not likely to be
necessary for the rest of the year.

     Authorities competent to sanction additional allotment do so
either from the „Reserve‟ held by them or from the surrenders
reported to them. If the „Reserve‟ is inadequate and no surrender
is forthcoming, such additional allotment may be sanctioned in

anticipation of provision of funds, only with the concurrence of
the   concerned   Controller  of  Defence   Accounts.   Additional
allotments sanctioned by the Services Headquarters, issue with
the concurrence of the Deputy Financial Adviser concerned.


      The procedure of reappropriation provides some flexibilit y by
which savings in the budget provision under one head can be
utilised to meet excess expenditure under another head, provided
the heads are in the same Demand voted by the Parliament. The
cardinal principle is that an authority can re -appropriate only in
respect of savings arising out of the allotments placed at his
disposal. The normal rules governing reappropriation of funds in
the case of Defence Estimates are indicated below: -

(1)   Powers of reappropriation between different minor heads
      under a major head are exercised by the Government of

(2)   Full powers of reappropriation between the subheads within
      the minor heads under each Demand have been delegated to
      the Ministry of Defence.

(3)   Powers of reappropriation are also exercised by the following
      lower authorities :-

      (a)   Central Controlling Authorities;

      (b)   Command Headquarters;

      (c)   Independent Area Headquarters;

      (d)   Air Force Commands; and

      (e)   Independent Stations.


4)      In the case of direct Controlling Officers of these
headquarters, re-appropriations are permissible only between
control heads falling under the same subhead. In the case of
Navy, powers of reappropriation between different detailed heads
falling under the same minor head are exercised by Naval

5)       The powers of reappropriation between different s ubheads

falling under the same head will be confined to Principal Staff
Officers except in the case of Military Engineer Services, which
are governed by the instructions laid down in M.E.S. Regulations
and such other instructions as may be issued by Gover nment from
time to time.

6) All re-appropriations are formally sanctioned and copies

endorsed to the accounts authorities. Reappropriations are
sanctioned by the Principal Staff Officers and the Raksha
Mantralaya (Ministry of Defence) in consultation with the Internal
Financial Advisers.

(7) No reappropriation is permissible between funds allotted for
charges items of expenditure in terms of Article 112 (3) of the
Constitution and voted items of expenditure.

(8) Re-appropriations are permissible only b etween expenditure
heads. Thus excess receipts and recoveries which are required to
be accounted for as such, cannot be utilised to meet expenditure
in excess of Sanctioned Grant.

9) The sanction of Government of India is            required    to   any
   reappropriation which affects the following :-

i) Savings due to non-expenditure      of   amount    provided    for   a
   specific measure.

iii)   An error in estimates.


Note- No formal reappropriation is sanctioned for     transferring
funds under the same control head between Commands, Areas,
Sub-Areas, Institutions, Depots, etc. Such transfers are effected
by first withdrawing savings surrendered by one Command, etc.
and then re-allotting as required.

          Periodical Estimates and Reviews

     The Raksha Mantralaya (Ministry of Defence) and the
Services Headquarters review the trend in expenditure and assess
future requirements at periodical intervals. For this purpose, the
lower formations furnish estimates in respect of locally controlled
heads so as to reach the respective branches at the Service
Headquarters by the dates prescribed for the purpose, through the
Controllers of Defence Accounts concerned except in the case of
MES formation, Ordnance & clothing Factories and R & D
Organisation who furnish the estimates direct to Headquarters.

      In addition, periodical reviews are conducted by the Raksha
Mantralaya (Ministry of Defence) to ensure prompt and effective
utilisation of the provisions made. Likely achievements of targets
are examined and procedural and practical difficulties thrown up
during the discussions are also tackled during these reviews.

     The fundamental rule on which the whole system of
budgetary control may be said to rest is that no item of public
expenditure may be incurrred unless provision exists to meet it in
the sanctioned budget estimates of the year concerned. This rule
applies to the nature of expenditure as well as the amount; in
other words, the provision in the budget must have been made,
for the purpose of meeting the particular kind of expenditure
involved. Certain authorities are vested with limited powers of
“reappropriation” i.e. transfer of funds from one budget head to
another as explained in paragraph 10 but with this exception, the
rule referred to above is absolute. It follows that each individual
officer to whom any portion of a grant provided in the budget to
meet a specified class of expenditure is allotted, is responsible for


seeing that the allotment is utilised        solely     for        that   class   of
expenditure and is not overspent.


     Interest bearing advances paid/recovered are compiled to
Debt head. While admitting claim in respect of advance like House
Building, Motor Car, Scooter etc, the audit section compiles the
expenditure to the relevant debt head. Duplicate copy of the
Punching Media alongwith the relevant schedules are received in
Accounts Section for purpose of posting in the Debt Head Register
(DHR). It will be ensured that schedules for the total amount
compiled in the printed compilation for that month has been
received. They are then posted in the DHR Unit-wise in the case
of Non-DAD personnel and pay drawing Office -wise in respect of
DAD personnel. Care should be taken to ensure that posting is
done against the right person with the aid of personal No./ GPF
Account No. The amount of postings are totalled, summarised and
reconciled with the amount debited/credited in the printed
compilation. The difference if any, between the total of posting
and total compiled actuals for the month must be taken up with
Audit Section and reconciliation effected expeditiously.

2.  The following information should be recorded in the DHR and
documents should be kept under lock and key for safe custody

(a)   Rate of interest    prevalent    at   the   time        of     payment      is

(b)   Agreement form/mortgage etc are received and kept in safe

(c)   In case of HBA/Car Advance, the Insurance Policy is taken
      and kept alive till liquidation.

3.    Immediate reference should be made           to    Audit        Section     in
      respect of the following irregularities :


(a)   Credit is received when no debt exists against the individual.

(b)   Credit for recovery, when recovery is in progress has not
      been forthcoming for 3 months.

(c)   Rate of recovery varies.

(d)   Recovery   of Advance      has    not   been   commenced   after
      stipulated period.

(e)   Recovery of interest has not been comme nced after advance
      has been liquidated.

4.    The following requirements are to be complied with:

(a)   A New Register is opened at the close of the accounts for the
      year  (excepting   Register  for  cycle   advance  which    is
      maintained on biennial basis). The closing balan ce of the
      previous year is correctly brought forward and Serial No. of
      both the Registers cross checked.

(b)   Recovery of interest is noted in RED ink.

(c)   Acknowledgments for the balance outstanding as on 31 st
      March are obtained from the individuals concerned and the
      fact is recorded in the Remarks column of the DHR.

(d)   When the individual is transferred to the jurisdiction of other
      CDA, the balance due together with the interest accrued
      upto the date of individual last paid by us is checked for
      correctness as calculated by Audit Section for noting in the
      LPC. The debt for the balance due together with interest is
      passed to the CDA through Defence Exchange Accounts by
      Central Credit (Minus debit) being taken to the head

(e)   On liquidation of Advance together wit h interest all relevant
      documents like agreement form, mortgage deed etc are
      returned to Audit Section for onward transmission to the
      individual. The item is then scored through.


              REVIEW OF BALANCES :

      The accounts of the year are not complete until the balances
in the ledger under the Debt and other balanced heads have been
verified and reconciled with amounts appearing in printed
compilation. Accordingly, after the books of the year have been
closed, an explanatory statement of closing balances called t he
Review of Balances will be prepared in the form of a general
report. This contains:

(a)      Statement of each ledger balance with explanation

(b)      A statement of the nature of the detailed accounts kept
         of the transaction     connected with it, and how far
         financial results of these detailed accounts work upto
         and agree with the balance on the ledger.

(c)      Information as to whether the person or persons by
         whom the balance is owned or from whom it is due
         admit its correctness and if they do not, where the
         difference lies.

(d)      Part of the explanation under (a) & (b) above would be
         the same every year. Hence, these explanations need
         not be repeated and reference for which may be given
         to previous report.

(e)      The review will take up each of the heads and will
         normally contain the particulars of section, Major Head,
         specific nature of the transaction, detailed head of
         account, opening balance (credit/debit), compilation
         during the year (credit/debit) and closing balances
         (credit/debit). Review of balances accompany statement
         5 and statement 13. Statement 5 contains summary of
         balance separately for the amount closed to Govt. and
         closed to balances. Summary of balances closed to
         balance indicates the balance outstanding as on 31 st
         March under various Debt and Remittance Heads.
         Summary of Balances closed to Govt. Account indicates
         expenditure of Revenue nature like pay and allowance
         and works expenditure etc and excess debit over credit
         is taken to summary of balance closed to balances.

           Normally there should not be any excess debit/credit
           over credit/debit in the summary of balances closed to

           The heads that are closed for balances and closed to
           Govt. accounts are as detailed below:

I)         Closed to Govt Account:

(a)        Defence Services Receipts – Effective

(b)        Defence Services – Non effective

(c)        Pre-partition Receipts /Payments

(d)        Defence Services Charges – Effective – Army, Navy and
           Air Force.

(e)        Defence capital outlay

(f)        Revenue heads

(g)        Reserve Bank – Deposit – Defence

(h)        Defence Exchange Account.

II)        Closed to Balances :

(a)   Debt, Deposit and Remittances ( i.e.) Accounts with AGs/PAOs
      (except Defence Exchange Account).

(b)   Transfer    between   officers     of   the   Military   Engineering

     CDA is responsible to ensure that details of amounts due to
or by Govt. are maintained in the relevant ledgers agreeing with
compiled actuals. CDA will certify that he has ascertained by
personal inspection that the balances in the books agree with the


aggregate of the details recorded in the compilation and that the
recoveries of advances have been regularly effected. CDA will also
certify that the balances as on 31 st March have been accepted as
correct   by    the  parties  concerned    and   that  if  proper
acknowledgements could not be obtained, the reason therefor
must be explained. Suitable steps should, therefore, be taken to
obtain necessary acknowledgements actually from each of the
individuals concerned.

     Store Section will effect reconciliation of the amount relating
to Security deposit outstanding in the Register concerned at the
close of the year with that reflected in the print ed compilation
and intimate the agreed accounts to Accounts Section for
incorporation. Similarly UAs will send a statement showing in
detail the balances as at the close of the year under various debt
and suspense heads outstanding in the relevant register s for
incorporation in the Review.

CHARGED EXPENDITURE: No reappropriation is permissible
between funds allotted for charged items of expenditure in terms
of article 112(3) of the constitution and voted items of

WHY THIS IS SO ? : An insight into the financial legislation in
Parliament as enunciated in Art. 112 et al of Indian Constitution
will give us an understanding of the entire aspect. The annual
financial statement, i.e. the budget is laid before both the houses
at the beginning of every financial year. It also states the ways
and means of meeting the estimated expenditure.

In conformity with the usual Parliamentary practice in the United
Kingdom, the budget not only gives the estimates for the ensuing
year, but also offers an opportu nity to the Govt. to review and
explain its financial and economic policy and programme to the
legislature to discuss and criticise it. The annual financial
statement in our Parliament thus contains apart from the
estimates of the expenditure the ways and means to raise the

j) An analysis of the actual receipts and expenditure of the

closing year and the cases of any surplus or deficit in relation to
such year.

k) An explanation of the economic policy and spending programme
   of the Govt. in the coming year and the prospects of revenue.

The estimates of expenditure in the annual financial statement
shall show separately: -

(a)   The   sum   required to   meet  expenditure described  by
      Constitution as expenditure charged upon the Consolidated
      Fund of India.

(b)   Sums required to meet other expenditure       proposed   to   be
      made from the Consolidated fund of India.

(c)   The estimates as relates to expenditure charged upon the
      Consolidated Fund of India shall not be submitted to the vote
      of Parliament, but each house is competent t o discuss any of
      these estimates.

(d)   Estimates relating to other expenditure shall be submitted in
      the form of Demands for grants to Parliament and house shall
      have the power to assent to any demand, or to assent to any
      demand subject to a reduction of the amount specified
      therein. Article 113 is specific that no demand for grant shall
      be made except on the recommendations of Parliament.

In practice, the presentation of annual finance statement is
followed by a general discussion in both houses of Parliament . The
estimates of expenditure other than those which are charged are
placed before parliament as “Demand for Grants.” No money can

be withdrawn from the Consolidated Fund except under an
appropriation act. Soon after the demand for grants is voted by
the Parliament, a bill shall be introduced in Parliament for the
appropriation out of the Consolidated Fund of India of all money
required to meet.

The grants made by the Parliament,        expenditure   charged   on
Consolidated Fund of India.

         Audit Activities on Annual Accounts of CSD

     During the audit the following points are seen :

1.   Verification of Closing Stock Statements, Assembled Stores
     Statement and Stock in Transit Statements.

2.   Scrutiny of Imprest Statements of Depots, verification of the
     Bank    Reconciliation  Statements   and    verification   of
     expenditures like Excise Duty, Freight Charges, Salary to
     Staff, Advances etc.

3.   Scrutiny of Cash Statements of depots, verification of the
     Bank Reconciliation Statements and verify the amount of
     sales receipts and T.T. to CSD HO.

4.   Reconciliation of Purchase Account, Sales Account and other
     major expenditure heads.

5.   Verification of Dead Stock Registers to ascertain the addition
     of assets during the year and the statements related to
     calculation of Depreciation on the Assets.


6.    Linking of the Purchase Ledger Trial Balance with the
      Purchase Ledgers and its reconciliation with purchase ledger
      control account in the General Ledger.

7.    Linking of the Trial Balance with the General ledgers and
      finally the figures reflected in the Annual Accounts.

8.    Scrutiny of Form 7, 8 and 5 for verification of Debit notes,
      Credit notes and Sales respectively (Reconciliation of
      Outstanding Sundry Debtors and Creditors).

9.    Scrutiny of the General Journal Documents (GJD), Purchase
      Journal Documents (PJD) and Adjustment Journal Documents

10.   Verification of the amount reflected as Cash in Transit
      (Imprest & Main).

11.   During the audit of proposal for PLB entitlement it is verified
      that the entitlements of days are calculated correctly based
      on the various quotients like Inventory Control Quotient,
      Consumer Satisfaction Quotient, Operation Cost Efficiency
      Quotient and Loss Prevention Efficiency Quotient.

                            Audit of Imprest

1.    On receipt of cash requisition as per monthly withdrawal
      entitlement it is verified that the funds are available for
      release   and the   expenditure is   within the  budgetary


2.   It is verified that the requisition is signed by the authorised
     signatory and the signature verified with the specimen
     signature held in the office. cheque for the requisite amount
     is released.

3.   It is ensured that the imprest released as above is compiled
     to the Imprest Holders Advance Head (0/99/08).

Audit of Receipt and Payment

1.   The details in the monthly statement of R&P have been
     correctly   transcribed from  the   ledger   maintained  for
     transcribing the     summary  figures   from   the   various
     subsidiary books in respect of each head of expenditure /

2.   Ensure that the summary figures in the various books            of
     account have been correctly carried over to th e ledger.

3.   The casting in the ledger are scrutinized       to   ensure   the
     correctness of monthly totals arrived at.

4.   After due verification of all the entries in the R&P account,
     the correctness of the code head to which each head of
     expenditure/ receipt is booked is ensured.

5.   After  ensuring   the   correctness of the relevant code
     head, punching medium is prepared and forwarded to DDP
     centre for compilation.



In the audit of MRO‟s the following have to be s een :

    MRO in form IAF 507 are used whenever cash has to be
     deposited into banks / treasuries on accounts of defence

    MRO are prepared in triplicate. The original copy duly
     receipted by the bank is handed over back to the depositor
     who forwards it to the Audit section concerned of the CDA.

    The duplicate copy (DMRO) is forwarded by the bank along
     with credit scrolls to the Accounts section of the CDA.

    The triplicate copy is retained as unit copy.

    The OMRO (original copy of the MR O) is also referred to as a
     Treasury Receipt (TR).

    The original copies of MROs received from various sections
     are posted in the Register without delay

    The unlinked duplicate MROs are extracted at the end of each
     month and necessary action taken to call for the same from
     Focal Point (SBI Transaction) and from concerned RBI.



    When a cheque is drawn a Punching Medium will be prepared
     by the Audit Section by crediting the Suspense Head
     “Cheques and Bills” and debiting the relevant service head.

    Schedule III received in the Accounts section from „D‟
     Section etc. will be recorded section -wise/office-wise and
     date-wise and will form the basis for linking with the paid

    Paid cheques alongwith the debit scrolls/ schedules of
     payments         will be received in Accounts Section daily/bi -
     monthly from the      Bank/    Treasuries.      These    will   be
     scrutinised to see that they     pertain to the particular office.
     Wanting paid cheques will be called for from the Focal Point
     Branch concerned.      In cases where the cheques are lost in
     transit a certificate in lieu will be furnished by the dealing
     branch / Focal Point Branch.

    With the help of the distinguishing mark mentioned at Sl. no.
     (iii) above, the paid cheques will be sorted out section -wise,
     office-wise and date-wise and paired with the
     corresponding entry in Schedule - III. Suitable Note of the
     linking having been done will be made on the Schedule - III

    Accounts Section will prepare Punching media once a month
     debiting the Suspense Head “ Cheques and Bills” as minus
     receipt by contra credit to the head “Reserve Bank Deposits


                          FA & IFA SECTION


     This   section  assists  the  Administrative   and   Executive
     authorities in improving the financial administration of the
     units and formations under their command. This section also
     ensures that the financial and other resources placed at the
     disposal of the Administrative and Executive authorities are
     utilized in the best interest of the State and to evolve
     methods to increase the cost effectiveness of the expenditure
     incurred by the Administrative and Executive authorities. This
     section also keeps the Administrative and Executive authorized
     and CGDA informed periodically of the General state of
     Financial Management.

                       IFA section advices CSD on all financial
     matters under the delegated powers which are exercised in
     consultation  with   the   IFA and  also concurs/scrutinises
     cases/proposals relating to purchase, projects, equipments,
     losses and disposals, etc.


                      JOB DESCRIPTION SHEET

i)     Verification of procurement and selling price with reference
       to Introduction letters /Price Revision Circulars /One to One
       Replacement circulars. On receipt of the Selling Price
       Circulars both GS & Liquor, the same are scrutinized with
       reference to the terms and conditions above circulars.
       (100% audit).

ii)    BOA Minutes and related correspondence.

iii)   BOCCS minutes and related correspondence.

iii)   Weekly, Monthly and Miscellaneous report and General Task.

       Weekly/Monthly Reports are rendered to the AN Section as
       per time schedule in addition to this circulars/Part -I Office
       Orders are circulated among staff members and Misc. Reports
       if any are rendered.

iv)    All the   correspondences     connected     with   the    PRC/PNC

v)     Verification of the files relating to the Financial Assistance to
       the URC's received for the concurrence of CDA.

vi)    Verification of files relating to the deletion of items


vii)   One to one replacement circulars are receipted from CSD HO
       & recorded in the registers maintained by this sections and
       forward a copy of all LAO's.

viii) Maintenance of Price Revision / Reduction / Introduction /
      Deletion / Terms and conditions registers pertaining to all
      Gropes. (Gp-I to VII)

ix)    The above circulars are receipted from CSD HO & recorded in
       the registers maintained by this sections.

x)     Post Audit of Dealers‟ Bills

       The Dealers‟ Bills folders which are maintained by CSD HO
       are collected by the section on monthly basis and selection
       order for 12% bills is got approved and audit is being carried
       out with reference to above circulars recorded in the
       registers to verify the purchase orders, form -2, delivery
       schedule, procurement rate & terms and conditions of supply.

xi)    The APR is reviewed and monthly summery of Audi t objection
       exhibiting no. of outstanding objections year -wise is
       submitted to Officer incharge by 10 th of month.

xii)   All the correspondence regarding settlement of audit

xiii) Local Audit Programme of all the LAO's - Finalisation and
      related correspondence.

xiv) Scrutiny of Audit completion report and arrears report.


xvi) Scrutiny of IFA proposals for Minor and Major Works

xv)      Scrutiny of IFA proposals relating to Losses, Railway Claims,
         Transport Contracts and Procurement of Seasonal Items Files
         and all proposal files received for IFA's Concurrence.

xvi) Matters relating to LAO's Conference.

xvii) All matters relating to Internal Audit
      Report/MFAI/FA/Appropriation / Monthly Activity Reports.

xviii)        Scrutiny and action in regard to the Objections
         Statements of 35 CSD Depots received from LAO's

xix) Scrutiny of Annual Audit Certificate reports received from
     LAO's and related correspondence with CSD HO.


                             Audit Drill

1) Dealers Bills Payments made by CSD HO are post audited by
this section to the extent of the percent ages laid down in the
audit manual.

Dealers Bills paid by the CSD are obtained and post audited as per
percentages given below -

Bills for Rs. 50000/- and above            = 12%,

Bills for Rs. 10000/- to Rs.50000/         = 6% &

Bills below Rs. 10000/-                    = 1%.

The rates and the terms of supply are entered in a register w.r.t.
the    Introduction / Price  Revision  Circulars/  One   to  One
Replacement Circulars received from CSD. It is to be ensured

i) The quantity shown in the    bills are in conformity with the
 quantity shown in F/2 (Goods received statement ) duly certified
 by the Depot manager with reference to the supply order issued
 by the CSD.

ii) The rates charged in the bill by the suppliers correspond to
the rates transcribed in the  terms and Cond itions of supply as
indicated above.

iii) The arithmetical calculations are correct.


iv) The Form-II i.e. goods received statement is endorsed to the
effect that payment has been made to avoid duplicate certification
of goods and claim of duplicate pay ments.

v) Certificate from the Depot that the penalty has been raised on
concerned dealers for late delivery/ part delivery.

2)    Selling Price Circulars of GS & Liquor

The costing and claims section of F&A Branch in CSD HO fixes the
selling prices i.e. the wholesale rate and retail rate for General
Stores and Liquor items. The whole sale price is the price at which
the CSD Depots sell the stores to the URCs where as the retail
prices are the rates at which the URCs sell the stores to the
consumer/troops. As and when a product is introduced in CSD or
when the price revision takes place, the whole sale and retail
rates are arrived at by loading the fixed percentage of profit
margins and other elements like freight, Insurance etc. on the
procurement rate. The selling price circulars received in this
office are subject to 100% verification by this section. On receipt
of the selling price circulars the same will be scrutinized to
ensure that the laid down profit margins, insurance, freight are
correctly loaded

     Step One :    It should be verified that the rates, Discount,
             CST and        Excise Duty       indicated in the CSD
             Introduction/ price Revision / Price Negotiation / one
             to one replacement circulars are taken in to account
             to ensure that the landed cost      has been correctly
             arrived at.

     Step Two :   In respect of liquor items the Excise Duty, State
             fee and other levies (State Wise) are correctly
             indicated as per rates indicated in the notifications
             held    with the CSD.

     Step Three:   It is to be ensured that the percentage of
             Insurance , freight , CSD Profits and   Unit Run


               Canteen Profits as per the percentages laid have been
               correctly worked out.

3)   URC Loan files

The existing and the new Unit run canteens are sanctioned loans
to be drawn in the form of stores.

A sum of loan upto Rs 2 Lakhs is sanctioned by the GM(CSD), Rs 2
lakhs to Rs.5 lakhs by BOA and above Rs 5 lakhs by the EC of
BOCCS. Fourth loans are put up to the EC of the BOCCS.

The loans which are to be sanctioned by the BOA or the EC of the
BOCCS are received for IFA concurrence.

The first loan carries an interest of 4.5% per annum and the
 second loan carries an interest 6.5%.per annum.

On   receipt   of   the   URC   Loan   files,   it   is   to   be   ensured   that

a)All the papers relating to the str ength of the unit, Sales
estimates/turnover and monthly expenses as submitted by the URC
are held in the file

b) The loan amount admissible has been correctly worked out by
the CSD with reference    to the   strength of the URC, and the
overheads of the URC like Clearing & Cartage charges, Insurance,
Postage, Telephones, Conveyance, Printing & stationery charges
etc. and they have been correctly worked out.

c)Availability of funds is ascertained from Accounts Section.


4.    IFA system in CSD

     Consequent on the Introduction of IFA s ystem in CSD W.E.F
     29/05/98, the    CDA(CSD) and IFA shall render advise             to the
     GM(CSD) on financial matters which falls within the competence
     of the BOA. The CDA/IFA(CSD) or a representative nominated by
     CDA/IFA will attend and participate in the Provision c ommittee
     meeting   for   placement   of     orders   (PRGO),   Price   Negotiation
     Committee (PNC), Price Revision Committee (PRC). It will also
     be ensured that the powers which have been delegated to lower
     functionaries    viz.   Regional     Manager/Depot      Manager       are
     exercised as per existing regulations.

     4a) Introduction of item in CSD

     1) Request from the firm for introduction in the form prescribed
        by the CSD along with the related documents.

     2) Scrutiny and recommendations by the Preliminary Screening
        Committee (PSC) of the CSD.

     3) Price negotiated by the PNC

     4) The BOA decides whether the item is to be introduced in CSD
        or not. The powers to delete an item held in the CSD
        inventory also rests with the BOA.

     5) ) System of Price Revision / Price Fixation

During the introduction of a product and for considering the price
revision request of the firm after introduction (the firms are
eligible for a price revision normally after one year of       the
introduction of the product in CSD) the prices are determined with
reference to the following.


1) Prices existing in civil trade.

2) Discount structure    of   the    firm   for   any   other    items      being
   supplied to CSD.

3) Prices for the functional equivalent items.

4) Other relevant factors concerning the case such as trend of
prices  in  national/international  markets , newspaper reports
etc.and any other data provided by the firm.

     Price Revision / Price Negotiation Committee

CSD follows ab initio negotiations with the         firms.The basic
procurement,      pricing and distribution policy for CSD was laid
down     vide     Appendix     to     GOI     MOD       letter  no.
B/00054/Q/CAN/5374/D(MOV) Dated 18/10/1977.The negotiations
with the supplier with regard to Introduction of item and for price
revisions are to be carried out by the designated PNC/PRC
committees.These committees are expected to make efforts to
obtain the best terms possible while finalizing the prices and give
due regard to the following considerations.

1) The price at     which     the    manufacturer       sells   to    the    sole

2) The profit   earned   by   the    manufacturer       from    his   published

3) The margin available between the purchase price and the retail
   market price.

To give effect to the above policy the CSD has had to issue its
own circulars/ instructions at various points of times and change
and modify these instructions from time to time to handle various
commercial situations arising during the course of its trading
activities. Accordingly CSD has promulgated circulars detailing
procedures for price revision in regard to AFD items,one to one


replacement of items, and the pro cedures for conduct of market
surveys etc.

                        POST AUDIT – SECTION


Post Audit - I section carries out the post audit of the following:

1.   Pay and Allowances of CSD employees.
2.   Claims on account of TA/DA, LTC, etc of officers and staff of CSD.
3.   Post Audit of Imprest accounts of CSD depots.
4.   Post Audit of accounts of Wet canteen.
5.   Post Audit of payments of CSD H.O (SBI Imprest Vrs).
6.   Post Audit of Car Diary and M.T accounts of CSD.
7.   Post Audit of Telephone bills of CSD.
8.   Post Audit of Major/Minor works sanctioned by H.O CSD.

                               JOB DESCRIPTION SHEET




Post Audit of CSD is conducted as per the percentages laid down in the CSD Audit
Manual. Selection of the month/bills, etc., with reference to the percentages is made by the
Accounts Officer/Sr. Accounts Officer. The section thereafter conducts the audit of the
selected items as detailed below. On receipt of the bills they are noted in the work books of
the concerned auditors. After completion of audit, the bills are shown as disposed in the
work book and recorded in the despatch dairy and returned to the concerned section of


Pay Bills are audited based on the under mentioned percentages

1) Pay Bills-Officers : 16 2/3%

2) Pay-Bills – Others : 33 1/3 %

During the post audit of pay bills of CSD staff the following is to be examined:

1.The number of officers/staff employed and paid out of the Govt. funds are as per

authorisation under different categories of employment.

2.It is ensured that the overall authorisation is not exceeded.

3.The Pay and allowances are regulated as per Govt. orders issued from time to time.

4 With the implementation of VI th Pay Commission there is a uniform date of annual
increment,viz. 1st July every year and the qualifying period for earning an increment is 6
months on 1st July of the year. During audit it will be seen whether the date of next
increment have been granted to individuals who have completed 6 months with rounding of

fraction of rupee above paisa to the next multiple of 10 . Postponement of increment to
individuals on EOL on personal grounds.

5. SCA is paid as per the class of city.

6. Whether rent recovery is effected as per LF Bill.

           7. Whether Transport Allowance is paid as per the rates prescribed by Govt.

           8. In case of absence for more than a calendar month, whether recovery of TPT
               is effected or not.

           9. To ensure that GP Fund subscription is not less than 6% and not more than
               one months pay in the pay band for appointees on or before 31.12.2003

                   10. Whether staff appointed on or after 1.1.2004 have been covered
                        under the New Pension Scheme. Individual & Govt. contributions
                        have been correctly deducted and remitted .

                   11. Whether advances drawn (GPF/HBA/SCOOTER/CYCLE etc.,) are
                        regularly recovered or not.

               12.Whether allowances (Special duty allowances, Remote locality
               allowance,washing allowance, cash allowance etc.,) are paid as per existing
               Govt. orders.

13.With the implementation of Child Care Leave to Female employees,leave sanctioned on
this accord is covered as per the said OM

               14.CGEIS,Professional Tax, CGHS etc., is recovered as per existing Govt.

               15.Whether Income Tax recovery is effected as per IT rules.

               16.Objection/Observation is being sent to the respective sections in CSD
               and also noted in the audit progress register.

(B) TA/DA/LTC Bills are post audited based on the undermentioned percentages:

                   1. Below Rs.100 ;General Scrutiny

                   2. Above Rs.100 : 25%

B) During the post audit of TA/DA Bills of CSD Staff the following is to be seen:-

         1. Necessary sanction for the move on temporary duty /permanent duty exists.

         2. Advances are paid as per the entitlement before actually proceeding on duty.

         3. Adjustment claims are submitted within the stipulated time frame and all the
             requirements like ticket No. mode of journey, class, train and the relevant
             certificates are indicated in the claim.

         4. Whether Officers entitled to travel by air on ty. duty travel by Air India, as
             per the Existing orders on the subject ,wherein entitled officers are
             mandatorily required to travel by National Carriers .

         5. Penal recoveries of interest are levied on advances not properly utilised,
             wherever applicable as per rules.

         6. Post VI Pay Commission implementation, TA/DA claims are checked
             subject to revised structure of drawl of TA/DA allowances. It is checked
             with relevant documents in support of the claim are enclosed for claiming
             hotel bills,Food allowance & Transport allowance etc.are enclosed,

         7. Objection/Observation to be to the respective sections in CSD and also
             noted in the audit progress register.

C.   During the post audit of LTC Bills of CSD Staff it is ensured that:-

     1. Claimant has travel as per entitled class

     2. Ticket is attached with bill.

     3) Dependency certificate, block-year, home town etc., as per records in the service

     4) Encashment of Earned Leave during LTC is being restricted to 10 days each time
     subject to 60 days in the entire career. However this leave has no linkage to the
     number of days and nature of leave availed.

     5) the benefits of the entitlements of availing LTC for each year for the first two
     blocks is not continued beyond the period of eight years in respect of newly
     appointed employees.. It will also be ensured that the facility is applied with
     reference to the initial date of joining the Govt. even though the employee changes
     the job within Government subsequently. Under the revised provisions Govt.

       officers joining Govt. service are allowed to travel to their Home town alongwith
       their families on three occasion in a block of four years and to any place in India on
       the fourth occasion for the first two blocks of their joining Govt. service..

 C.    Audit of Medical claims: 33 1/3% of medical bills are selected for post audit

       During the audit of medical bills,in respect of OPD treatment the following is to be

       1) Bills preferred by the staff are covered under NON-CGHS areas and treatment
       has been

       taken from the Authorised Medical attendant.

       2) Hospital charges are paid on the basis of H.S.R.(Hospital stoppage rolls) when
       treatment is under taken in Military Hospitals.

       3) The reimbursement claims are subject to audit scrutiny to see that both indoor
       and outdoor treatments are taken only in recognised hospitals under
       CGHS/CS(MA) or Govt. hospitals.

       4) For emergency treatment and treatment in private hospitals necessary approval of
       the Competent authority is obtained.


In supersession of earlier orders based on the recommendations made by the Sixth Central
Pay Commission Children Education allowance and Reimbursement of Tuition fee is
merged and as laid down in the said OM the following audit checks are carried out:

The claim has been preferred on the prescribed form and supported by the tuition fee
receipt from the recognised school,

The claim is restricted to only two children studying in Nursery to Class XII.

Checks are exercised wherein reimbursement can be claimed once every quarter. The
amount claimed in first quarter to be restricted to Rs..3000/- and in another quarter less
than Rs.3000/- subject to annual ceiling of Rs.12.000/- per child.

It will be ensured that wherever Hostel subsidy is drawn by the staff & officers Children
Education Allowances is not drawn concurrently.

In case both the spouses are Government servants, only one of them can avail
reimbursement under CEA.

In addition to the above during audit it is ensured that the reimbursement is made on
submission of original receipts on the basis of self-certification by the Govt. servant.

F)    Major / Minor Works : During the scrutiny of the major/minor works
     sanctioned by CSD, the following is broadly seen.

1.    Whether Acceptance of necessity exists
2.    Administrative approval has been accorded.
3.   Technical sanction exists
4    Whether funds have been allotted for the subject work.

5.   Whether AE‟s have been prepared before floating tenders and there after
     getting the works sanctioned.
6.   Whether rate analysis/market survey has been carried out to verify the
     correctness of rates quoted by the contractors.
7.   In addition to the above, it is also seen if the general procedures laid down in
     MESR have been followed while entering into a contract with the contractors

H)    Post Audit of Wet canteen of CSD HO.

The Wet Canteen accounts alongwith the yearly Balance Sheet is audited with
reference to the detailed vouchers.



       The audit of the Wet Canteen maintained by CSD HO is carried out with
reference to the books of the Canteen.

Audit Checks:

•          The payment vouchers and the deposits slips are to be linked with the
           entries in the cash book, bank pass book and confirm that no entries
           are omitted.

•           The payment vouchers for purchase of stores and the      vouchers     for
            issue of store is to be linked with the    stock ledger for verifying
            that the stock held at the end of the financial year is correctly worked

•           The receipt towards sales during a particular day is accounted properly
            in the sales account and the amount are recovered regularly where the
            sales are made in credit. The amounts realized in sales is to be correctly
            deposited into the bank

•           The posting in the General ledger account       is to be linked with the
            entries in the Cash book

•           The final accounts of the wet canteen i.e. Profit & loss account, Balance
            sheet and receipt and payment account has been correctly prepared
            from the General ledger balances.

•           The dead stock register is maintained properly and all the articles
            purchased for the canteen are correctly posted .

I)     Post Audit of Imprest Accounts of CSD.

 1.   All the expenditure incurred from the Imprest Account are supported by
       relevant vouchers
 2.   The powers to sanction expenditure are within the limits as laid down in
      policy orders.
 3. The cash ceiling limit laid down in CSD HO policy letters are strictly adhered
 4. The Weekly statement of expenditure is received from all the Depots in time
 5. All entries pertaining to advances paid to staff and their recoveries are posted
      in the advance registers.
 6. Financial powers vested with the Depot Manager, Regional Manager & various
      authorities at CSD HO.
 7. The Expenditure incurred is having prior sanction of the competant authority.
 8. The vouchers are in originals.
                                    AUDIT DRILL

The following audit checks will be exercised while Post-Auditing the
accounts of CSD



Pay sec of C.S.D HO prefers the pay bills of the officers & staff attached to HO as
also those employed in the Area depots/Base depot and the same are post audited
by CDA(CSD). General Audit Checks with reference to the following is carried out.



•       The number of officers/staff employed and paid out of the Govt. funds
        are as per authorization under different categories of employment.

•       The overall authorization is not exceeded.

•       The pay and allowances are regulated as per Govt. orders issued from
        time to time.

•       All the mandatory recoveries are effected from the pay bills and credited
        to the relevant head of accounts.

•       Recovery of permanent loans and advances and interests thereof has
        been effected.

•       Tax recovery is effected from the pay bills as per Govt. orders.

•       License Fee and Allied Charges are recovered.


•     Recoveries on account of EOL, TPT& SDA

•     Rent and Allied Charges - Recovery and Refund

•     Non production of documents in respect of various advances

•     Non recovery of Professional Tax.

•     Authorised and Posted Strength of employees.

•    Allowances are paid as per the eligibility/entitlement of the individual /


•         Hospital charges are paid on the basis of H.S.R    (hospital   stoppage
          rolls) when treatment is undertaken`in Military Hospitals.

•         The reimbursement claims are subject to audit scrutiny to see that
          both indoor and outdoor treatments are taken only in recognised

•         The cost of medicines and other expenses in connection with the
          treatment of employees are as fixed/revised by the Govt. from time to
          time under CS(MA) rules.

•         For emergency treatment and treatment in private hospitals necessary
          approval of the competent authority is obtained.


•         Necessary sanction for the move on temporary duty exists.

•         Advances are paid as per the entitlement before actually proceeding on

•         Adjustment claims are submitted within the stipulated time frame and all
          the requirements like ticket No, mode of journey, class, train and the
          relevant certificates are indicated in the claim.

•         Penal recoveries of interest are levied on advances not properly
          utilised,wherever applicable as per rules.


•         Eligibility/entitlement of the concession to the govt. servant and family
          members and the block year availed for home town/ All India is verified.

•         Wherever advances have been paid tickets are purchased and submitted
          for verification within 10 days.

•         Adjustment claims are submitted immediately after completion of return

•         Penal interest is levied on misuse of the advance.


•        The claims are in the prescribed proforma and        admissible    for    the
         number of children permissible under rules.

•        Necessary certificate from the recognised school authorities for the initial
         claim/changes and        relevant certificate in support of the claim exists.


Different types of advances like House building advances, car, scooter, bicycle &
fan advances, GP fund advances are scrutinized and the following is seen :

•          It is ensured that there are proper sanctions          of the competent
           authority for the the amount admitted

•          All the document like receipts, authenticated certificates and mortgage
           deeds wherever required are kept in record in support of the advance

•          Noting of the advances in the demand register.

•          Ensure commencement of the recoveries.



•        Each depot has been given an Imprest account for meeting the day to
         day expenditure.

•        The funds required by depots for meeting the      expenditure            from
         Imprest account are transferred by CSD HO to all the depots.

•        Ensure that the Imprest Account has been maintained properly and
         account rendered to CSD    HO for reimbursement.


•        All the expenditure incurred from the Imprest Account       are supported
         by relevant vouchers

•        The powers to sanction expenditure are within the limits as laid down in
         policy orders.

•        The cash ceiling limit laid down in CSD HO policy letters are strictly
         adhered to.

•       The weekly statement of expenditure is received in H.O CSD from all the
        depots in time

•       All entries pertaining to advances paid to staff and their recoveries are
        posted in the advance registers


•        Non deduction / non-production of official receipts (OR) for recovery of
         Income Tax from contractors.

•        CFA Sanction for various items and purchase of furnitures/fittings,
         Hiring of transport etc.

•        Debit Notes for Bank Charges and Freight Charges.

•        Receipted Challan for Octroi & Excise Duty paid.

•        Recovery particulars of Electric Charges and Rent & Allied charges.

•        Official Receipt for sale of Grass & Old newspapers is produced.



•       Unit run canteens are sanctioned loans / advances by     CSD H.O.

•       The sanctioned loan is to be repaid by the canteens on a yearly basis
        within the period specified in the sanction letters.

•       The recovery of the loan / advances is made in accordance with the
        repayment schedule sent to the unit concerned.

•       Under the powers of depot managers loan upto         Rs. 75,000 can be
        sanctioned to the Unit run canteens.

•       During the festival season also, loan can be sanctioned to the canteens
        as per the limits laid down in policy letters.

•       The amount of loan/advance paid       and recovered are entered in a
        Register called Unit Loan Register.


•         Loans/advance have been sanctioned by the competent authority.

•         Loans and advances have been paid in the the form of goods supplied in
          credit and not in cash.

•         The register of loans /advances is maintained properly and kept up to

•         Proper action has been taken in respect of defaulting units for recovery
          of loans and interest thereon.

•         The repayment schedule prepared by CSD HO is in accordance with the

Audit Checks:

     •      Scrutiny of all works to ensure proper sanction has      been obtained
            from the CFA as per value of work.

     •      Scrutiny of all the works to analyze whether they        have      been
            carried out by MES as per time schedule.

     •      The details of amount deposited with various MES formations and
            Stations   for early liquidation by finalisation of works account by
            concerned GE‟s.



A register is being maintained in CSD HO where all copies of unpriced invoices
received from Area/Base Depots are entered and the same are priced and sent to
bills section for recovery of amount from suppliers. One copy of unpriced invoice is
also sent to CDA(CSD).

Audit Checks:

     •       It is ensured that all Unpriced invoices are entered in the register

     •       The amounts are recovered from the suppliers.

M.T. Vehicles


Works and Maintenance Section maintains Car Diary, POL Register and Duty slips
for the staff cars held on its charge.

Audit Checks:

    •      The relevant columns of car diary are properly completed and the
           exact nature of duty is mentioned.

    •      Correct distances are shown in the car diary.

    •      It is signed by the officer authorised.

    •      Consumption of petrol conforms to the KPL of Car.

             15. Frequently asked questions.

1.     What is the objective of CSD?

2.     In which committee CDA is a member?

3.     How is an item introduced in CSD?

4.     What are the stages involved in the procurement of

5.     Who provides fund for CSD?

6.     In what basis CSD maintains its Annual Accounts

7.     How does CSD gets funds to make payments?

8.      What is the network of CSD for distribution of

9.    How the IFA function is function is discharged by CDA?

                                        TRAINING MATERIAL

      1.    Centre of Excellence                   :     Regional Training Centre Pune

            Name of the Website of RTC             :

      3     The details of Training Material
            standardized                           :

            1. CSD Module                                Date of Standardization

                                                         30th Sept 2008

            2.BRO Module                                 8th May 2008

            3. Navy Module                               17th Nov 2006

            4. CDA(O) Module( T Wing)                    23rd April 2010

      4                                                  Loaded on WAN and Website
            The Method of circulation              :

            Hard copies/loaded on website

      5.                                                 28th July 2010
            Details of updation / updated on       :

 Details of mechanism adopted for

Updation – Respective Offices are being asked to forward amendments, if any, to the training material forwarded

by them and a committee of officers of RTC to examine and update them

Periodicity- Quarterly

Certificate on the website i.e., date of updation or on hard copies – The date of updation will be mentioned on the


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