ch12-powers of psus, delegation methods · 2019. 3. 15. · 2 welcome • this is a presentation...

For internal circulation of BSNL only 1

E4-E5 (Finance)

POWERS OF PSUs &

DELEGATION OF

FINANCIAL POWERS

2

WELCOME

• This is a presentation for the E4-E5 (Finance)

• Module for the Topic:

POWERS OF PSUS

DELEGATION OF FINANCIAL POWERS

• Eligibility: Those who have got the Upgradation from E4

to E5.

• This presentation is last updated on 15-3-2011.

• You can also visit the Digital library of BSNL to see this

topic.

For internal circulation of BSNL only


WHAT IS DELEGATION?

– Is not passing on the work.

– Is passing on the responsibility and authority

– Is to entrust powers or functions to another.

– To enlist that person to complete the tasks on

your behalf.


GENERAL CONDITIONS GOVERNING EXERCISE OF

FINANCIAL POWERS

• The exercise of powers should be strictly in

accordance with the

(1) Approved budget

(2) Business plan

(3) Investment plans

(4) Annual HR plans and policies of the company

(5) Rules and directives of the Central

Government/Administrative Ministry etc.

• These financial powers will be exercised strictly in

consultation with IFA of the respective Circles/SSAs .


GENERAL CONDITIONS GOVERNING EXERCISE OF

DELEGATED POWERS

• Appropriate level of Accounts &Finance officer

decided by the Circle IFA.

Expenditure- to be limited to -the budget allocation and -

cash drawal


MATTERS GENERALLY RESERVED FOR THE BOARD'S

APPROVAL IN BSNL

01.Annual programme of - PCSC

(i) Production,

(ii) Construction,

(iii) Sales and the

(iv) Corporate plan

of the company.

02. Estimates of

(i) Capital expenditure

(ii) Operational expenditure and

(iii) Revenue of the company.


MATTERS GENERALLY RESERVED FOR THE BOARD'S APPROVAL IN BSNL

03.Organizational set up

and Setting up of standards to create new posts

Remunerations structure of its employees

Policy matters such as payment of bonus etc.

04. service conditions (pension, medical, TA etc)

05. contracts above a certain value

06. Pricing of telecom. tariffs

Technology implementation


POWERS SO FAR DELEGATED

• Delegation so far given up to CGMs/GMs/TDMS

as Heads of circles/SSAs Etc. & Training

centers.

• Beyond the powers delegated –

The BSNL board will convey such orders with

the approval of " Competent Authority" in the

BSNL BOARD.


MAXIMUM FINANCIAL POWERS

• Is inclusive of the powers delegated to subordinate authorities.

• Provided that the total expenditure in that year in respect of that

office does not go beyond the limits of power of sanction per office

per annum of the higher authority

• (ii) In case of sanction to expenditure by a higher authority

because the amount of expenditure on that particular occasion

exceeded the power of sanction of the lower authority in respect

of one office

-The lower authority can still continue to sanction expenditure up to

the limit of its own power of sanction

-Provided that the total expenditure in that year in respect of that

office does not go beyond the limits of power of sanction per

office per annum of the higher authority.


REGISTER TO WATCH ANNUAL AND OTHER LIMITS

• In case of delegation with certain limit on such

authority

• A record of all sanctions accorded by him for

each such class of expenditure should be

maintained.


REGISTER TO WATCH ANNUAL AND OTHER LIMITS

• The manuscript form in which such register is to be

maintained is given below :

(i) Sl.No. of the entry No.

(ii) Date of sanction,

(iii)Name of the office incurring the

expenditure with brief particulars of the

charge,

(iv) Amount of each sanction,

(v) Progressive total up to and including

each entry of a new sanction

(vi) Remarks

• (Rule 348 of P&T F.H.B.Volume I)


CONSULTATION WITH IFA

On all matters falling with in the field of their delegated powers.

• On proposals having financial implications referred to

higher authorities for approval or orders

• This fact should be indicated specifically in the letters.

• CGM may over rule the advice of IFA.

• It should be done by a written order, recording reasons for

doing so.

• And intimated to Corporate office.

• IFA is always declared one level below the officer exercising

the financial power.


Contd..

• Full responsibility for a decision taken in exercise of the

delegated financial power rests with on the authority who

overruled the advice of the IFA.

All sanctions issued in exercise of the delegated powers after

consultation with the IFA should have the following subscript.

“ This sanction issues after consultation with the Internal

Financial Advisor”


CONVEYING OF SANCTIONS-DOMESTIC ARRANGEMENT

• The officers attached to an office do not function

independently but convey as a domestic arrangement, in

accordance with such local instructions as may be issued by

the head of office to regulate working of his office.

• The level up to which each officer may decide cases and

convey sanctions/orders of the head of the office is a matter

entirely left to the discretion of the head of the office.


DOMESTIC ARRANGEMENT

• Any such domestic arrangement should be made:

• In consultation with the IFA

• By a local order indicating

The various officers who will exercise powers in the

name and on behalf of the head of the office and

The extent of power to be exercised by each.

• Thereafter such cases need not be referred by the

officers to IFA while exercising these powers, except in

cases of doubt or difficulty. They should however take

the concurrence of Finance adviser at appropriate level.


DOMESTIC ARRANGEMENT

• The Head of the office shall continue to be responsible

for correctness regularity and propriety of their

subordinates.

• An in-depth review

• The powers delegated are not being abused.

• If necessary, the orders can be revised.


RECURRING EXPENDITURE

• Recurring expenditure means the expenditure

which is incurred at periodical intervals.

Non-Recurring Expenditure:

• Means expenditure other than recurring

expenditure.

• In respect of non-recurring contingent

expenditure ‘each case’ means ‘on each

occasion’.


LOCAL PURCHASES in respect of items included in an estimate

• Items which are included in the estimate but are

beyond the powers of LP, are required to be

sanctioned separately by the competent

authority.


CURRENT DUTIES –EXERCISE OF FINANCIAL POWERS

• An officer appointed to perform current duties of another post in addition to his own duties w/o extra remuneration, Cannot exercise statutory powers. (GOI MHA F.7/14/61_Estt(A) dated 24.01.63.)


Obtaining of ISO Certification

• CGM s

• Services/QMS

• ISO certifying agencies- BIS

• Documentation charges


ITEM NO. 2.1.4 REPETITIVE PROJECTS

• Decision on each project shall be taken only

with the concurrence of Circle IFA.

• Examined with reference to anticipated

benefits and validity.

• This is not applicable in respect of Cellular

Mobile Net work.


ITEM NO. 2.1.4 REPETITIVE PROJECTS

– once the investment proposal (for tendering

/procurement of any item/project) is approved by

the Board, circles will not be required to obtain

further approval.

– All the procurements SHOULD BE in accordance

with the approved plans and projects and in

accordance with the procurement manual of the

company.

(BSNL HQ NO. 6-5/2004-EB dated 7.3.2005.)


ITEM NO. 4.2. PURCHASE OF STORES

• Items which were earlier in centralized list and now

decentralized will be procured by CGMs. For other items,

which were being procured by CGMs earlier to revision

of power vide letter No. 6-15/2000-EB dated 4.10.2001,

their powers remain with them and also in respect of

such items power for delegation down below will also

remain with CGMs as deemed necessary by CGMs.

• ( BSNL HQ No. 6-15/2000-EB dated 28.02.02)


ITEM NO. 7.7

ADVANCE PAYMENT FOR PURCHASE OF VEHICLE

The exercise of power under this head is subject to the

following conditions:

• If declared as a post-deposit party, no advance

payment should be allowed.

• Wherever the items to be procured are not in the

DGS&D rate contract and the item is approved for

purchase by BSNL Corporate office, then 100%

advance payment can be allowed to the

manufacturer of the said vehicle directly and not to

any of the dealers.


ITEM NO. 7.7

ADVANCE PAYMENT FOR PURCHASE OF VEHICLE

• Manufacturer should not have a lead time of more than

one month for delivery of the vehicle to the consignee.

• In case of default in delivery schedule exceeding one

month then the usual interest is applicable.

• Powers should be exercised by the head of the Circles

personally with the concurrence of the Circle IFA and not

to be re-delegated to lower formations.


IFA’S POWERS FOR MEETING EXPENDITURE IN

CONNECTION WITH AUDIT INSPECTIONS

1. Working lunch/dinner for meeting /conference

with Auditors (as well as staff detained in

connection with the audit job):

Rs.100/- per head on each occasion.

2. Light refreshment for meeting/conference with

Auditors( as well as staff detained in connection

with the audit job):

Rs.50/- per head on each occasion.


Contd..

3. Hiring of vehicle for the use of branch Auditors: Full

power

4.Provision of Stationery and other items associated with

audit:

Full powers. For this purpose IFAs will have an imprest

account of Rs.5000/- which will be utilized by an officer

authorized under them with

approval of expenditure given by IFAs.

• IFAs of SSAs: The IFAs of SSAs will also exercise the

powers indicated at 1 and 2 above for the audit parties

and staff detained, subject to a ceiling of Rs.30,000/-

per audit cycle.


Guidelines from BSNL HQ – Purpose Intended

01.Hiring of vehicles

02. Advertisement & Marketing

03.House keeping

04.Payment of Honorarium

05.Rewards / Awards

01.To ensure easy mobility of staff/officers for better maintenance

02.For improving customer care and marketing

03.For improving image of the company

04To motivate staff for better performance

05.To elicit suggestions for improvement of telecom. Service.


Contd..

06.Payment of productivity linked

incentive

07.Writing off losses

08.Scrapping of obsolete stores/

equipments

09.Grant of donations/grant to Co-

operative stores

10.Sponsorship of sports events

etc.

06.To increase productivity

07.To settle cases early/

expeditiously

08.To reduce inventory of useless

stores

09.To improve staff welfare

10.To promote company’s image


Contd..

11.Acceptance of tenders and award of works

12.Acceptance of single tender in case of limited tender

13.Supply of meals for staff detained in office in case of emergencies

14.Gifts to visiting dignitaries

15.Insurance of movable and immovable items

11.To speed up implementation of works of achieving targets

12.For expediting urgent works

13.For staff welfare

14.For improving the image of the company

15.To ensure safety of departmental property and prevent loss.

ch12-powers of psus, delegation methods · 2019. 3. 15. · 2 welcome • this is a presentation...

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