The Audit and Accounts circle is the central accounting unit assigned to RHD by the Ministry of Establishment and representing therein the Office of the Comptroller & Auditor General (C & AG). This Circle is presently under the direct control of the Chief Engineer and is responsible for ensuring that the accounting procedures followed by the RHD are in line with the Government Accounting Codes and Manuals. The officers of this unit are deputed from the C & AG’s office. Under the reorganisation plan this circle is brought under the Additional Chief Engineer, Management Services Wing.

The objective of the Audit and Accounts Circle is to contribute to the overall strategy of the Management Services Wing by:

Developing and implementing a modern financial management system in RHD for preparing and issuing budgets and for monitoring and consolidating divisional and RHD accounts, in compliance with the Accounts Codes and Manual and incorporating receipts and disbursements from the CAO, DAO and CGA offices.

It is the responsibility of the Audit & Accounts Circle to ensure that the RHD Revenue and Development budget and accounts are prepared in accordance with Government guidelines. This circle is responsible for developing financial control mechanisms and effective audit procedures for the total accounts of RHD including accounts of projects. In order to do so all Circles must be made responsible for timely submission of accounts from the divisional and sub-divisional offices.

a) Ensure timely compilation of the monthly and annual accounts of RHD

b) Provide consolidated reports on monthly expenditure identifying variations and irregularities.

c) Provide annual revenue and development budgets and mid-year budget reviews.

d) Provide periodic inspection reports on division and sub-division accounts in order to ensure that the Government accounts code and manual are being fully complied with and any irregularities are identified.

e) Implement a financial monitoring system to compile and report on the budgeting and accounting systems including maintaining a financial database for receipts and disbursements.

The Audit and Accounts circle is an established part of the RHD responsible for maintaining compliance with the C & AG’s prescribed audit and accounting rules. Under the reorganisation plan the Circle is brought under the Management Services wing. The proposed organogram for the Circle is shown above.

Certain officers in the Audit and Accounts Circle are to be designated as specialists. Specialist posts for engineers, or non-engineers, with specialist qualifications are shown together with the equivalent engineering grade thus, Exec. Transport Economist (EE*).

The Accounts and Audit Circle is headed by a Director who is proposed to be of the rank of SE, assisted by 2 new Deputy Directors. The existing set up of the office consists of 22 sanctioned persons with a proposed requirement of 27. The total proposed number of personnel of the Circle consist of 6 Class I, 0 class II, 16 Class III and 5 Class IV staff.

It is anticipated that as the budgeting and accounting systems are developed the number of personnel in this Circle may need to be increased.

a) Co-ordinate the preparation of the Departmental Revenue & ADP budgets.

b) Prepare monthly consolidated returns of receipts and disbursements.

c) Prepare annual accounts returns.

d) Respond to queries from the Government on inspection reports, audit notes and other matters.

e) Process claims for the return of contractors’ fixed deposits registered at the Chief Engineer Level.

f) Review Suspense Accounts, Control Accounts and miscellaneous accounts.

g) Review awards of arbitration relating to contractual obligations.

h) Prepare summaries of the monthly account of receipts and disbursements.

i) Periodically inspect circles, divisions and sub-divisions to ensure that the accounting processes being followed are in compliance with the Government guidelines.

j) Finalise Departmental Revenue & Development budgets and distribute final budget allocations to HQ and field offices.

k) Inspect divisional and sub divisional offices under special instructions in co-ordination with the enquiry division

l) Assist in the development of computerised systems for departmental budgeting and accounting purposes.

The budget for the Audit and Accounts Circle is shown on the attached table. The budget table shows both the annual operation and maintenance costs ad the capital costs of purchasing new and replacing old equipment. As not all equipment will be purchased or replaced immediately the capital cost has been annualised depending on the average life of the various items of equipment. The costs shown exclude the cost of personnel who are paid for from other sources.

On this basis the annual recurring cost for the Circle is Taka 9.04 lacs and the capital cost on an annualised basis is Taka 9.80 lacs. This leads to a total cost of Taka 18.84 lacs per annum.

The Audit and Accounts Circle requires resources for Head Quarters operations and to enable personnel of the Circle to undertake visits to RHD offices throughout the Country.

The resources required are shown in the table below: