[ Financials ]

BUDGETORY CONTROLS

About Budgetory Controls:
Budget is an annual financial statement giving the estimated receipts of funds and expenditure of the organization for a particular year. Under section 26 of the FCI Act,1964, the Corporation has to submit to the Govt. of India a statement of programmed and its activities as well as the financial estimates for the forthcoming year duly approved by the Board of Directors , three months before the commencement of the next financial year . The budget proposals are therefore required to be submitted for the approval of the Board by the November of the current year.

Preparation of Budget:
In order to build up a realistic budget for the Corporation, the views and needs from al levels required to be taken in to the Accounts. The important considerations in the preparation of the budget proposals is to maximize the benefit for the Corporation at the least cost. The budget should be realistic and attainable during the year. Since the non-utilization of funds provided in the budget is as much a financial impropriety as the over spending it has to be ensured that only essential; / unavoidable purchases/expenses are included in the Budget proposals.

The Budget proposal in the prescribed format are sent to Headquarters by the Regional Offices/Zonal Office during the August of the Financial year , with a copy to Zonal Office also for examination and for consolidation of the material for discussion before the Board of Directors , as the allotment of funds is made on the basis of recommendation made by them only. The Zonal Office may communicate any modification to Headquarters in the September of the year on examination of the proposals received from the Regional Offices/Units.

Budget Controls:
Adherence to the budget provision at each responsible level is required as a apart of financial discipline. All of the executive heads Viz. DMs /SRMs and Zonal Managers have the prime duty to control the expenditure within the estimated allocation of funds. In case of Regional Office/Zonal Office anticipates increase in the expenditure due to unavoidable Circumstances , they hav4e to approach well in advance for additional funds. R.Os are required to furnish monthly/qtly. Statements of expenditure under various heads of Account to Zonal Office /Hqrs.

Reappropriation of funds:
If required, the funds may be re-appropriated among various Head of Account. The Senior Regional Manager is competent to order re-appropriation of funds within the Region from one ‘Major Head’ to another upto an amount not exceeding Rs.10,000.00 in each case, with the approval of Manager(F&A) of the Zone. Like wise the Zonal Manager has full powers to order for re-appropriation from one Major Head to another. No re-appropriation is allowed between Capital and Revenues Heads. However, funds may be appropriated or re-appropriated to meet any expenditure which has not been sanctioned by one authority competent to sanction it. Also funds are not to be re-appropriated from a unit with the intention of restoring the diverted appropriation to the unit when saving becomes available under other units. The powers of re-appropriation are exercisable in consultation with the Associate Finance of the Regional /Zone of the Region/ Zone.

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