Chapter-20 Role of IFAs - Managers Check List

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1 Chapter-20 Role of IFAs - Managers Check List BSNL, India For Internal Circulation Only 1

2 Functions of Internal Finance Advisers A. Finance & Budget: 1. To establish appropriate local procedures to have proper estimation to fund requirement under working expenses and under the various capital and other heads, similarly for revenue forecast. 2. To scrutinize budget proposals thoroughly before sending them to BSNL HQ and to ensure that the due dates for returns are adhered to. To ensure that the Budget is drawn up according to the instructions issued by the BSNL HQ from time to time. 3. To watch and review the progress of expenditure against sanctioned grant by maintenance of necessary control registers and to issue timely warnings to the authorities concerned where warranted by the progress of expenditure. 4. To keep special watch over sensitive grants like T.A. O.T.A. medical expenses etc. to ensure that the prescribed ceilings are not exceeded. 5. To advise the Heads of Circles on all matters falling within the field of their delegated financial powers and to screen all expenditure proposals requiring to be referred to the BSNL HQ and furnish fund availability certificates where prescribed. 6. To evaluate progress/performance of projects and other continuing schemes and to see that the results of such evaluation studies are taken into account in the formation of budget. 7. To scrutinize directory printing/advertisement and other contracts before they are concluded and also check the rent and guarantee cases. 8. To examine the cases relating to sanctions to new posts and to see whether they are justified under the prescribed standards or outside the standards, before they are put up to the Head of the Circle, also match them with budget grants and with special guide lines if any to the extent possible ensure balance distribution of new posts. 9. To ensure that financial discipline is inculcated and maintained in the circle/district under his charge up to the requisite level and to bring to notice of the head of the organizations where repeated failures, lapses are noticed. B. Accounts BSNL, India For Internal Circulation Only 2

3 1. To see that departmental accounts where necessary are maintained properly in accordance with the requirements of the prescribed rules. 2. To smoothen the working difficulties and clarify for prescribed procedures for preparing /maintaining accounts to the extent they are of local application and to take up with BSNL HQ where they are of all India application. 3. To be in overall charge of maintenance of corporate accounts. 4. To see effective and purposeful functioning of internal audit in accordance with instructions issued on the subject. C. Telecom. Revenue: 1. To keep watch over timely issue of bills by the TR units and in the functioning of the credit control measures with the requisite efficiency. 2. To keep watch over delays reported in receipt of initial and periodical data for billing and take action to eliminate them. 3. To review the bills amount to see that there is no prima facie under billing due to some reason or other by coordinating this with the services provided. 4. To convene and preside over the meeting of the telephone revenue defaulters control Board. 5. To ensure timely clearance of old outstanding by appropriate action and by keeping close watch over the position division-wise and exchange wise also where necessary and instituting action suited to each case. 6. To inspect the TR units and take follow up action on the lapses and deficiencies noticed. 7. To carry out test inspection of the work in the exchange having a direct bearing on billing e.g CDR billing, billing discrepancies control over disconnection notices from A.O.(TR) for non- payment of bills etc. D. General BSNL, India For Internal Circulation Only 3

4 1. To watch the settlement of audit objections, inspection reports. 2. To co-ordinate the work relating to draft audit paras / PAC recommendations and connected work and to advise the concerned officers/head of the Circle to give proper attention thereto. (Annexure to DOT Lr. No. 3-1/74-Fin(coord)dated ) Check lists for various functions I. For some important points under Cash Management: Conduct surprise check of cash in hand on any particular day. Ensure that the cash chest is embedded and is properly secured? Whether Cash/ Cheques /DDs received are properly remitted into the bank? Has the set of duplicate keys of cash chest been placed in the safe custody with the appropriate authority? Has necessary security been obtained from the cashier? Is the register of cheques maintained properly? Call for the cash books and check the closing balances in all the books periodically. This will give an idea whether ther are any backlogs w.r.t. remittance cheques/ retention of unnecessary cash balances by the office/ Non/delayed remittance of collections by the bank to the central account and also the cheques issued and lying uncleared etc. Ensure that proper action is taken in case of discrepancies/delays observed. Is the register of cheques received and cleared maintained properly? Is the work relating to bank reconciliation up to date? Is TDS recovered by the office remitted promptly in respect of recoveries from salaries/ contractors/ professionals etc. Are the monthly and quarterly returns in respect of TDS submitted to Income Tax authorities promptly? Are other recoveries made towards EPF/ESI/Service tax are remitted to the respective authorities in time? The bank statements are obtained regularly and the bank charges and other entries incorporated in the trial balance promptly. BSNL, India For Internal Circulation Only 4

5 Whether the seeping facility is availed by the office. This facility is also known as Money Multiplier facility. It allows us to set a minimum balance to our current (operation) account. We can put in a request for transfer of the excess of the minimum current account balance to Fixed Deposits in multiples of Rs.5,000/- or more as may be specified by us. These balances will thus earn interest. The balance in the current account does not fetch any interest. Usually several lakhs of rupees are lying in the credit of BSNL accounts of the banks. There is normally a gap between the date of issue of a cheque and the date of actual clearance and credit to the parties because of delay on the part of the parties in presenting the cheques. If sweeping credit facility is availed, BSNL can earn interest on these utilized balances lying with the bank. If we need the money, we can withdraw the required amount by issue of cheques or through a standing instruction. No penalty is levied on the premature closure of the FD. All linked FDs will be eligible for automatic reverse sweep (F/D to current account) in multiples of units agreed upon a last in First out basis when the balance in the current account is not sufficient to the requirement for payments. The remaining amount will continue to earn the higher rate of interest applicable to FD. II. For some important points under telephone revenue: Are there any unaddressed bills? Are these reviewed in time and remedial action taken? Are bills being issued in time and as per schedule? Are instructions relating to billing of circuits being done correctly and as per instructions from corporate office? Whether there is any metering of calls against spare numbers and if so what is the action taken? Has there has been any down fall in the revenue? Analyze the reasons for the same and take remedial action where necessary. Is cancellation of bills done proper and is with the approval of competent authority? Does the figure of collection as per sub ledger agree with the actual cash collections? Whether the outstanding as per sub ledger agree with the amount in the register of outstanding/ bookings in the trial balance? Are LBMs and HPCs being conducted regularly and outstanding liquidated? BSNL, India For Internal Circulation Only 5

6 III. For some important points under planning: Whether the Project estimates/ detailed estimates are sanctioned by the competent authorities? Whether the works in Progress are reviewed regularly and action taken to expedite completion as scheduled? Whether there is any under utilization of equipped capacity In the exchanges? What are the actions taken for Whether the work register is maintained properly and reviewed regularly? Whether registers for Security deposits, EMD maintained properly and whether the outstanding balance in these registers agree with the respective balances in the trial balance? Whether a liability is maintained and the items cleared promptly and that the balance in the register agrees with the respective balance in the trial balance? Whether the hiring of vehicles has been in accordance with the instructions of corporate office? Is the register of works-in-progress maintained and reviewed regularly and action taken for prompt capitalization? Check and review the asset register and its proper maintenance periodically for incorporation of depreciation/ inclusion of new works completed/inclusion of details in respect of decommissioned assets etc. IV. Pre-bid Planning & Proposals: (i) (ii) Planning and estimation- is necessary because the viability analysis as well as competency of authority depend upon estimated cost of equipment or value of work. Surveying and specifications - is necessary so that the specifications are identified need based for incorporation in the tender document. (iii) Ensuring source of funds - as the availability of funds is essential for payment. Any delay in execution of the contract for want of funds might lead to escalation of costs. BSNL, India For Internal Circulation Only 6

7 V. Procurement of vacant site: Before examining the profitability of the project, in connection with the purchase the land, the necessity for the project is t be examined broadly with reference to: of (a) (b) Whether the purchase of land is necessary for the purpose it is proposed. Whether the area of the land commensurate with the requirement. (c ) Whether the land in question meets the technical requirement. (d) Whether the cost of land is reasonable. Documents for verification: a) Encumbrance certificate b) Urban land ceiling clearance. c) Clearance from Town Planning Authorities. d) Whether there are any environmental restrictions. e) Permission from local authorities like Municipalities, Fire department, Airport Authorities exists especially in case of high rise buildings. f) Suitability certificate. h) Revenue verification certificate. i) Validity of Power of Attorney VI. Purchase of old buildings: BSNL, India For Internal Circulation Only 7

8 1. The title of the building should be reviewed by the Govt. pleader and should be ascertained that it is free from all encumbrances. 2. The valuation of land and any structure standing on it should be done through the services of Revenue authorities, civil wing of BSNL. 3. The price paid through private negotiation should not be higher than that through Land Acquisition Proceedings. In case the party is not agreeable to these terms higher price can be paid only with the prior approval of CGM. 4. While issuing financial sanction for the purchase of building from private parties through negotiations, it should be certified that conditions laid down in Sub para (iii) of para 460 of P7T volume II have been fulfilled. 5. In case of direct negotiations with the owner, the recommendations of standing committee as per guide lines given in DOT No /78-TPS(BG) dated should be followed strictly. 6. Consent letter from the owner and 2.5 EMDF on estimated cost of property should be obtained. 7. While purchasing rented building for Telephone exchange/telegraph office the following should be considered and kept in view: (a) (b) (c) (d) (e) whether it is situated in a prime land in a central location. Cost of land Whether sufficient surplus land forming part of property is available to meet future expansion needs of the company. Condition of Building. Possibility of feasible leasing etc. 8. The objective should not be to purchase any and every old building. 9. The procedure laid down in the para 460 and 462 of P&T Manual Volume II should be followed also keeping in view land ceiling act and other statutory conditions. BSNL, India For Internal Circulation Only 8

9 10. These powers should be exercised in consultation with IFA. VII. Work Tenders: Prerequisites: Before initiating tender call for any of the works, the important pre-requisites are: 1. Availability of sites. 2. Engineering survey 3. Preparation of lay out plans/conceptual plans 4. Preliminary drawings & approval 5. Preparation of preliminary project estimate & approval. 6. Sanction of detailed estimate for the portion of work put up for to tender. VIII Application of LD Clause: The spirit behind the LD clause is to ensure that the deliveries are made by the supplier as per the delivery schedule. In case of supply of the items as a package- if a critical item of the system has been delayed in supply and the system cannot be commissioned for want of that item, the LD shall be levied on the total value of the package irrespective of cost of the delayed portion of the supply.. In case the P.O was for supply of bulk quantity of items which are required to be delivered at various sites, LD shall be levied on the value of the delayed portions of the supplies only. Liquidated damages should believed on the contract prices including element so sales tax, excise duty etc. BSNL, India For Internal Circulation Only 9

10 LD is to be levied on the value of stores lost in transit provided the suppliers are responsible for safe delivery of the stores at the destination. During grace period no LD charges shall be levied and suppliers shall be paid at the same rates as applicable during the contracted original delivery period subject to satisfaction of other conditions. Whenever a clause for grace period of 21 days exists in the purchase order as well as in the tender document, the applicability of grace period shall be subject to: a. The store has been offered to QA by the supplier for inspection/testing within the contracted original delivery period. b. QA has cleared the equipment for dispatch within the contracted original delivery period. c. The supplier has carried out dispatch/dispatched the equipment within the contracted original delivery period. d. The store has been received by the ultimate consignee within 21 days of the expiry of contracted original delivery period. Questions on Role of IFAs 1) Describe briefly the functions of IFA in Finance and Budget area? 2) Describe briefly the functions of IFA w.r.to Telecom Revenue. 3) List out any five functions of IFAs under Cash Management. 4) List out any five functions of IFAs under Telephone Revenue. 5) List out any 5 functions of IFAs under Planning. 6) Discuss the role of IFA in Tendering Process. 7) What points have to be seen in connection with procurement of vacant site? 8) Discuss the role of IFA in inculcating financial discipline in a SSA. 9) Explain about Sweep in Facility. 10) An IFA can discharge his duties better if he assumes the role of CFO. Discuss. BSNL, India For Internal Circulation Only 10

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For internal circulation of BSNL only

For internal circulation of BSNL only E4-E5 E5 (MANAGEMENT) BSNL Procurement Policy INTRODUCTION Organization needs various resources - Men, machine, material. Many of these resources have to be procured from various suppliers. In BSNL procurement