Object of financial reporting

• To familiarize the stakeholders i.e. parliament, public, Audit forcertification of accounts of expenditure/ receipts.

• To provide Management Information System.

• Authority responsible for preparing of accounts- General Managerand FA&CAO of Accounts Deptt of the zone, Chairman & FinancialCommissioner in Railway Board.

• Framework of accounting: Govt. Accounting Rules and Railway’s financial rules

• Books section of each accounting units complies the accounts

Sources of IR

Sources of IR

Gross budgetary support

Gross traffic Receipts

Extra budgetary Receipts

Loans from Gol and others

Sources of Receipt

Misc. receipts

Contribution including those from state govt. and user

entities.

Internal Resources

Investment through Wagon investment scheme

Borrowing through IRFC

Funds raised by RVNL

Diesel cess

Investment through ppp etc

Flow of accounting information in Railways • Area of accounting in terms of commercial & Govt. accounting

• Generation of paid/ receipt vouchers and adjustments havingallocation for accounting, use of accounts head

• Monthly Compilation of information in accounts in terms allocationcode

• Monthly compilation of information in accounts in terms of grant-wise, revenue, Capital expenditure major/ minor head bysummarizing of information from allocation

• Monthly Compilation of monthly accounts by each accounting units

• Consolidation of monthly/ annual account at Zone level and at endMinistry of Railways' level

• Annual accounts- Financial as well as Appropriation Accounts

Finance Accounts

• 728 A-I -The Finance Accounts are compiled in accordance with therequirements of Government Accounts, duly classified in accordancewith the heads of accounts prescribed for Government accounting.The transactions brought to account in the books of the railway underthe various railway heads of account are, after the closing of accountsfor each financial year, summarised in the form of a handycompilation called the 'Finance Accounts". The compilation comprises(I) Abstract accounts of the various railway heads together withdetailed schedules, and (ii) Appendices. Six printed copies of thecompilation should be submitted so as to reach the Railway Ministrynot later than the 20th September

Finance Accounts• Account current: revenue and works

expenditure and revenue & capital receipts

• Railway Revenue receipts

• Capital at charge Statement

• Balance Sheet Annexure

• Profit and Loss Account

• Debt head Report

• Balance Outstanding under Suspense

• Statement of transfer without financial adjustment

• Statement of loans and advance granted to cooperative societies

• Statement of investment of Central Govt. to cooperative societies

• Depreciation Reserve fund

• Development fund Account

• Pension Fund Account Accident Compensation Safety and Passenger Amenities Fund

• Results of Stock Verification and Revaluation of Stores

• Railway Catering Profit and Loss Account

• Statement of income tax/ service tax

• Statement of calculation of dividend payable and subsidy due from General Revenue

Appropriation account

• 402 F-I The statements which are prepared for presentation to the Parliament (PublicAccounts Committee), comparing the amount of actual expenditure with the amount ofGrants voted by Parliament and, Appropriations sanctioned by the President, are calledthe “Appropriation Accounts”. The Appropriation Accounts are signed both by theChairman, Railway Board, as Principal Secretary to the Government of India, Ministry ofRailways, and by the Financial Commissioner Railways, as Secretary to the Governmentof India, Ministry of Railways, in financial matters and transmitted to the DirectorGeneral of Railway Audit-II who has been entrusted by the Comptroller and AuditorGeneral of India with the duty of reporting on these accounts.

• This DG (RA-II) site at Railway Board & assists the C&AG and Deputy C&AG (Defence,Communication and Railways) in certification of the Appropriation Accounts and FinanceAccounts of Railway Certificate for Audit of Railway Accounts signed by DAI (Railways).

• Appropriation Accounts of Railways form a part of Union Appropriation Accountscertified by C&AG.

Appropriation accounts-ORDINARY WORKING EXPENSES (Revenue Expenditure)

• 01-Expenditure on Railway Board

• 02-Misc. Expenditure (General)- Survey, RDSO, Audit, RRB, RCT

• 03-General Superintendence & services on Railways

• 04-Repairs & Maintenance of Way & Works

• 05-Repairs & Maintenance of Motive Power

• 06-Repairs & Maintenance of Carriages & Wagons

• 07-Repairs & Maintenance of Plant & Equipment's

• 08-Operating Expenses-Rolling Stock & Equipment

• 09-Operating Expenses-Traffic

• 10-Operating Expenses-Fuel

• 11-Staff Welfare & Amenities

• 12-Misc. Working Expenses & 12 N-Suspense

• 13-Provident Fund, Pension & other Retirement Benefits

• 14-Appropriation to Funds M-Appropriation to Fund

• 15- Dividend payable to General Revenue

Asset Acquisition, Construction and replacement

• Expenditure from central govt. borrowing : Capital and railways own generated fund like Depreciation Reserve Fund, development Fund, AC21 Special Project Fund (ACSPF), Open Line Works Revenue, Capital Fund, Railway safety Fund, Special Fund, Special Railway Safety fund Appropriation Accounts (Store Account)

Other statements of App. a/cs

• Statement of unsanctioned expenditure (Annexure A)• Under charges detected by Accounts or Audit (Annexure 'B') • Statement showing Remission and Abandonment of claims to Revenue

(Annexure 'C') • Review of expenditure on important Open 'line Works and New

Construction• Working Expenses and other revenue charges relating to Strategic Lines

(Annexure 'E') • Statement of credit/ recoveries (Annexure 'F') • Statement of Losses etc. (Annexure 'H') • Irregular re-appropriations (Annexure 'I')I• Important misclassification and other mistakes detected (Annexure ‘J’)• Statement of defects in budgeting (Annexure K)

Integration into union accounts: • List of major minor head

• 1001 – Indian Railways – misc. Receipts

• 1002- Indian Railways – commercial line revenue Receipts (Abstract X,Y &Z)

• 1003- Indian Railways strategic line revenue Receipts (Abstract X,Y &Z)

• 3001- Indian Railway policy formulation, Direction, Research and other Misc. Organisation(grant No.1 & 2)

• 3002- Railway's revenue expenditure on commercial line (grant No.3 to 14)

• 3003- Railway's revenue expenditure on strategic line (grant No.3 to 14)

• 3004 Indian Railways-Open Line Works (Revenue)

• 3005 Payments to General Revenues (G.15)

• 3006 Appropriation from Railway Surplus

• 3007 Repayment of Loans taken from General Revenues

• 5001- Railway's Capital expenditure (grant No.16) on commercial line (grant No.16)

• 5002- Railway's Capital expenditure (grant No.16) on strategic line (grant No.16)

• Suspense & other heads

• 007610 – Loans to Govt. servant

• 008009- GPF/ State Railway Provident Funds

• 008445- Railway Deposits

• 008552 -Railway advances

• 008660- Suspense accounts (Railways)- PAO, AG, PSB,

• 008677- RIB

• 008789- Adjustment accounts with Railways

• 008999- Cash balances

• 0020- Income tax from corporation tax

• 0021- Taxes on income other than corporation tax

• 0041- Service tax

• 2016- Audit

Thanks