Purchase Procedures

Purchase Procedures

Good Governance in Purchase Matters – Common Irregularities

Disclaimer - The limits and procedure is applicable as of today. Due care is taken in disseminating accurate information. However, it is a must to go to the revised guidelines before making the decisions every time.

èFirst of all, Need identification

èEstimation of amount

Approvals:

èThe approval should be sought from the competent authority. Administrative approval and financial approval, are required in each and every expenditure including purchase. The Competent authority before giving the approval checked the status of the Budget.

In case, the budget is provided with directions to spend, there is no need to seek approvals.

èIf it is not directed to purchase from the open market, seek the approved source for procurement.

Approved Sources

èThere are two cases – approved source is not available, second approved source is available. If the approved source is not there, then we can move to the market. If the approved source is there, then write a letter to the approved source for getting the estimated value of the work (goods/services/work).

In reply, the approved source may send the value of the items or may give NoC or it may give NAC.

èIf NoC/NAC is received or there is no approved source, then move to the market for making procurement.

Markets

Offline Market – Without Quotation (up to 10000), With Quotation (10001 to 100000), Tendering (above 100000)

Online Market – Only GeM – Without comparison (up to 25000), With comparison (25001 to 100000), Bidding & RA (above 100000)

The estimated value of the purchase will decide, which mode is better and which made should be used. We are supposed to compare them both.

Delivery of Goods

The goods will be delivered by the seller at your office and the cost of the shipment/courier/postage etc. will be of the seller.

Before using the goods and within 10 days from receiving the goods, it is must to inspect the same as per the specifications referred in the purchase order.

Payment of the goods

In case, it is accepted before the 10 calendar days or in case not accepted but 10 days completed; after that within 10 days, it is required to make the payment.

After making the payment either through EFT or e-Billing, it is must enter the payment details in GeM (login of payment authority).

After that, we start using the product and in case of any warranty, guarantee, we are supposed to communicate with the service centers, not the seller.

Managing Contractors

In the case of the service provider, if monthly payments are being done, then we use the project monitoring norms as per terms and conditions.

In the case of contracts, performance security is also taken from the contractor. After completion of the contract successfully, the security is required to be returned. 

All Intellectual Property rights including Copyright etc. are reserved and vested exclusively with the author or editor, Dr. Lalit Kumar. No part of the material contained in this webpage may be reproduced or transmitted in any form or by any means, electronic, technical, photocopying, recording or otherwise, or stored in any retrieval system of any nature without the written permission of the author or editor, Dr. Lalit Kumar. 

This content is written by Dr. Lalit Kumar Setia; a renowned author and trainer. He completed his Doctorate in Commerce from Kurukshetra University Kurukshetra and MBA in Information Technology from GJU, Hisar. He also wrote two books, 15 research papers, and organized more than 200 Training Courses during his working period since 2006 in Haryana Institute of Public Administration, Gurugram. The article was published on 23rd December 2021 and last updated on 23rd December 2021. The writer can be contacted on lalitkumarsetia@gmail.com 

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Financial Procedures in Government

Financial Procedures in Government

-Dr. Lalit Kumar Setia*

The issue of ensuring compliance of financial procedures in Government Organizations is not a new emerging issue. It is seen everyday or at least every-week, in the newspapers regarding financial irregularities, embezzlement, political intervention, and reports of Comptroller and Auditor General exposing the shortcomings of financial framework in Government offices. It is required "to build the capacity of Officers to perform financial procedures at their workspace as per latest Financial Rules and instructions issued by Government". 

The Financial and Administrative Officers including Finance Managers, Drawing and Disbursing Officers (DDOs), XENs, SDOs, Principals, Deputy Directors, Employment Officers, Accounts Officers, Section Officers etc.; who deals with the accounting and financial operations in Government offices are required regular updates with regard to latest rules and regulations. The State Administrative Training Institutes are relied by the Governments to incorporate emerging issues in their training curriculum and assist officers to understand the significance of each new update alongwith enforcing the updated rules, instructions in the officers under their supervision. 

Skills for Financial Operations:

What is required basically, is to upgrade the skills of officers dealing financial and accounting operations with regard to various grey areas identified during the past training courses being organized from time to time. It is the need of the hour to describe the provisions of Punjab Financial Rules relating to Financial Management; undertake Purchase Operations as per latest Financial Rules (including GeM and e-Procurement); compute recovery of Loans and Advances as per latest norms including functioning through Punjab National Bank (PNB); use MS-Excel software to undertake operations relating to financial procedures at workspace; and deduct accurate amount of income tax and submitting e-TDS return. 

On part of Administrative Training Institutions (ATIs); it is ensured that the officer trainees remain punctual and participate sincerely in each training session. On the first day of course, an introduction of facilities available at campus of the institute, are described and it is also tried to assess the training needs of the participants so that greater emphasis can be given on training inputs where they are facing more difficulties at their workspace such as  

 e-procurement and Government e-Marketplace (GeM)

or 

financial procedures relating to e-TDS

or

purchase and Government eMarketplace

The courses normally proved beneficial with providing a lot of learning in the form of notes and presentations during the training days. The practical exercises and assignments further develop the interest of trainees to have in-depth knowledge of financial procedures. In each batch, as per standards of Department of Personnel and Training (DoPT); the number of participants enrolled, remain between 15 to 25. The adequate number of officers also been provided opportunity to have interactions thoroughly with clearance of all doubts.  

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