E recon

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Presented By

B.Satish Babu, I.R.A.S.,Dy.FA&CAO/WS/LGD

Date: 07th December, 2011Venue: C-TARA

PERSPECTIVES ON WHERE WE STAND AND ROAD TO THE

FUTURE

presentation Index

Existing Manual Reconciliation System

Need for E-Reconciliation

Problems and issues in E-Recon

Suggestions to improve the E-Recon

Conclusion

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It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable/responsive to change.

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CHARLES DARWIN well known for theory of evolution and author of

“Origin of Species”

CHANGE IS INEVITABLE

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So, Reconciliation of Railway Transfer transactions is also not an exception to the

change.

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Now look at present manual system of transfer transactions and reconciliation and codal provisions

What Code says about transfer transactions?

As per Para 301 of

Accounts Code vol.I, it is the duty of the Accounts

Officer

adjust in his books of account the items of

expenditure or receipts pertaining to his own

circle and transferred to him by other Accounts

officers;

to transfer to other

accounts circles the

items pertaining to them which originate in

his circle 6

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The Indian Railways Accounts Code Volume One – Chapter 4 deals about the procedure of

the Transfer Transactions

Para 401 of Accounts Code Vol.I

All Inter Railway transactions (Intra

Railway transactions too) are technically known as “ Transfer

Transactions”

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Para 402 of Accounts code vol.I says

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As a general rule all transactions between two different accounting units in the same railway or between two railways should be settled by book adjustment (i. e. not by actual payment or

recovery of cash).

Then what is Book Adjustment ?

What is book adjustment ?

It is classifying the transactions in the books of the Railways under the relevant remittance head of accounts and

Transferring them to the Accounts Officers concerned for incorporation in their accounts for the months specified

by means

of Transfer Certificat

es (A 406)

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Para 406 says

Transfers between any two accounting

units within the same Railway

should be affected by means of TRANSFER

CERTIFICATE (TC)

The unit initiating a

transfer should prepare the TC

in duplicate

And send one copy duly

supported by initial accounts

records or vouchers to the unit to which the

transaction pertains and

Retain the other copy

as the Office copy.

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Para 407 says about acceptance by the responding officer

Para 408 says about “Numbering and watching the acceptance of Transfer Certificate” – to see there is no break in the serial

number

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T.C.s should be issued /returned duly accepted in even flow and not

left over till the last date in the prescribed schedule.

No T.C. should be issued without accepted vouchers except in the

case of Cash transactions or stores supplied to other Railways or

Labour dept. central cess charges.13

NEED FOR DEVELOPMENT OF SOFTWARE FOR TRANSFER TRANSACTIONS

The reconciliation meetings at the end of each quarter and

preceding month (i.e., February)

attended by large number of

officers/staff which involve substantial time and financial

implications

besides acrimonies and disputes amongst the

participating staff

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To reduce the time consumed in the physical

transfer of vouchers

To avoid delay for the expenditure to be accounted

in the same month of incurrence.

Thereby to ensure more realistic comparison of expenditure with

reference to Budget Proportion of a Month.

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Eliminate the need of Approximate Account

Current

Ways and means to be authorised on actual

basis

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CONCEPT OF E - RECON

Entrusted to Western Railway

Conceived by Exilant

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E – Recon - visualisation

UPLOAD

SETTLEMENT

MAKING OF JV’s

Download of e-recon data into FMIS 18

What is E - Recon

It is a Online Transfer Transaction Portal for

Indian Railways

Offers settlement of transfer transactions

among units and Railways.

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What is E - Recon

Disputes/differences of opinions in regard to acceptance of a TC etc. are resolved by the Presiding Officer

in the Quarterly Reconciliation

Meetings.

In E-Recon, a provision also exists for presiding officer

but in electronic mode.

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E-Recon – minimum requirem

ents

Availability of PC with

Railnet/Internet

connectivity

Browser Internet Explorer

7.0 version and above

Good quality scanners for the purpose of scanning documents

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P D F – File Attachments

File attachments should be in PDF format

PDF means Portable Document Format supported by Adobe systems

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TEAM VIEWER

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If you have issues and seek remote help, you can install TeamViewer (free version) and seek help

from help desk by giving them userid and password which shall appear on your screen.

REVENUE AND CAPITALTransfers between Revenue and Capital or vice versa and

their reconciliation are not in the scope of E-Recon.

These will continue to be part of the Non Transfer Transactions for which JV can be made from one of the existing running modules 24

Physical exchange of related vouchers will continue to take place as is being done at present.

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Non Provision of generation of one Journal Voucher (JV) for two or more similar accepted

TCs

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E-Recon – teething problems encounterded

Lack of sufficient infrastructure

Non availability of User friendly detailed Manual without scope for

interpretation

Not known the exact status of Transfer Certificate (TC) with regard

to place of pending 27

E-Recon – teething problems encounterded

Generation of J.V’s

combining similarly

placed T.C.’s

Link Concordance for the O/W

from Unit level to Central

Books at Hqrs level. 28

E-Recon – Suggestions or Areas of improvement

Section wise User Id and passwords

should be activated.

This enables focused monitoring each section of the data transmitted

by them instead of going to entire

data generated by all sections.

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E-Recon – Suggestions or Areas of improvement

Suggestions and areas of improvement

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For transactions where Spending Units (SU) are either not relevant or not mandatory such as Suspense Heads, Civil Heads, Deposits, Loans and Advances.

E-Recon is not allowing to proceed without input of Spending Unit code. This has to be addressed.


The means of exchange of Monthly Lists (ML) for inward and outward transactions with NIL difference in the new system

needs to be tested.

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If the Section to

which it was forwarded is not correct, it can again be returned to

Books section for

re-forwarding to correct section.

All inward TCs of Intra-Railway on Hqrs can be posted to

Books section for

redirecting/forwarding to

correct section.

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The reasons for rejection of TC should be mandatory and appear to

the receiver.

Digital signature should be incorporated to authenticate the

documents

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Provision of Hqrs Stores unit (008782 54) Hqrs Traffic unit

(008782 57) to be enabled to avoid the routing of Stores transactions and Earnings transactions through

Hqrs Central Books

Necessary provision to be enabled for incorporation of Section Code in

the JV Numbering system. In absence of such provision, all JVs

are appearing in the accounts with the Books Section Code (01) 34


In E-Recon environment, JV to be prepared only after acceptance of the TC by the destination unit. However the same method cannot be compatible for sundry earnings, as the same is impracticable to wait till acceptance by responding unit. Hence modification of the E-Recon to such extent is required.Some of the allocations in the Finance Code volume II and suspense heads are not being accepted in the E-Recon. The programme to be altered accordingly to accept the same ones.

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The possibility of dispensing with transmission of

physical vouchers to be explored.

(or) Sending one abstract statement in lieu of numerous vouchers may be

tried.

Integration of E -Recon data

into FMIS under AFRES.

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Let us deviate ourselves from the above adage and implement E-Recon in letter and spirit for the good cause of the system.

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If, E-Recon is implemented in

all respects

it can facilitate speedy settlement

of transfer transactions and thereby

Approximate Account

Current can be totally

eliminated/dispensed and figures can

be reported on actual basis

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Economy & Finance

E recon