|
|
|
|
|
Ministry of Finance
Department of Expenditure
Office of Chief Adviser Cost
……
|
|
|
|
|
|
Extracts of Annual Report of Ministry of Finance for the year 2016-17 in respect of the Office of
Chief Adviser Cost
|
|
|
|
|
|
|
1.
|
The Office of the Chief Adviser Cost (CAC) is one of the divisions functioning in the
Department of Expenditure, Ministry of Finance. This office advises the Ministries
and Government Undertakings on Cost accounts matters and to undertake cost investigation
work on their behalf. It is a professional agency staffed by Cost/Chartered Accountants.
|
|
|
|
2.
|
The Office of Chief Adviser Cost is dealing with matters relating to costing and
pricing, studies for determining fair prices, studies on user charges, cost-benefit
analysis of project, studies on cost reduction, cost efficiency, appraisal of capital
intensive projects, profitability analysis and application of modern management tools
evolving cost and commercial financial accounting for Ministries/Department of
Government of India.
|
|
|
|
3.
|
It was set up as an independent agency of the Central Government to verify the cost
of production and to determine the fair selling price for Government Departments
including Defence purchases in respect of the cases referred to. The role of the
office was further enlarged and extended to fixing prices for a number of products
covered under the Essential Commodities Act, such as Petroleum, Steel, Coal, Cement,
etc. under the Administered Price Mechanism (APM). Since cost/pricing work in the
Ministries increased significantly, various other Ministries/Departments started to
have their in house expertise by seeking posting of service officers for work
requiring expertise in cost/commercial accounts matters. In the post liberalization
era, the office is receiving and conducting studies in synchronization with
liberalization policy of the Government in addition to the traditional areas
of cost-price studies.
|
|
|
|
4.
|
The Chief Adviser Cost's Office is also cadre controlling office for the India Cost
Accounts Service (ICoAS) and looks after training requirements of the officers for
the continuous up-gradation of their knowledge and skills, in addition to rendering
professional guidance to the ICoAS officers working in different participating
organizations.
|
|
|
|
5.
|
The major areas of professional functions of the office of the Chief Adviser Cost are
as under:-
|
(i)
|
Assisting Central Government Ministries/Departments/Organizations in
solving complex Price/Cost related issues, in fixing fair prices for various
services/products and rendering advice to various Ministries/Departments in
cost matters.
|
|
|
|
(ii)
|
Examination/Verification of claims between Government Departments/Public
Sector undertakings and suppliers arising out of purchase contracts.
|
|
|
|
(iii)
|
Determining prices of products and services supplied to Government, to
enable Government Departments to negotiate the prices with the supplying
organizations.
|
|
|
|
(iv)
|
Conducting studies for determining cost/fair prices and making recommendations
for fair prices/rates for products and services and also to determine
reasonableness of prices charged, duty structure, etc.
|
|
|
|
(v)
|
Valuation of assets and liabilities of business taken over and shares of
public sector undertakings.
|
|
|
|
(vi)
|
Functioning as Chairman/Members of Committee constituted by Government/
different Departments related to Cost/financial and pricing matters.
|
|
|
|
(vii)
|
Conducting cost and performance audit of industrial undertaking.
|
|
|
|
(viii)
|
Subsidy determination and verification of claims under Market Intervention
Schemes (MIS) and Price Support Scheme (PSS) for sharing of losses by State
and Central Government.
|
|
|
|
(ix)
|
Developing Cost Accounting System for departmental undertakings/Autonomous
bodies.
|
|
|
|
(x)
|
Conducting Time and Cost Overruns of major projects.
|
|
|
|
|
|
|
6.
|
During the period January to November 2016, 52 studies/reports were completed by the
Office of Chief Adviser Cost. The studies completed during the year varied widely in
nature and may be broadly categorized under the following heads:
|
(i)
|
System Study
|
|
|
|
a)
|
Fixation of Common Hourly Rates and Overhead percentages in
respect of Government of India Presses at Mysore Temple Street,
Kolkata, Minto Road-Delhi, Nilokheri, Aligarh, Koratty-Kerala,
Rashtrapati Bhawan, Chandigarh and Nasik for various years.
|
|
b)
|
Fixation of Overhead rate in respect of sale price of Hydrogen
gas manufactured at Hydrogen Factory, Agra for the year 2011-12
and 2013-14.
|
|
|
|
|
(ii)
|
Fair selling price of products/service where Governement/ Public Sector
Undertaking is the Producer/Service provider as well as the user
|
|
|
|
a)
|
Fixation of fair price of DDT 50% supplied by HIL to NVBDCP
for the year 2013-14, revision of fair price of DDT 50% for the
years 2014-15 and privisional price for the year 2015-16.
|
|
b)
|
Fixation of Currency Notes produced by Currency Note Press (CNP)
at Nashik to RBI during the year 2011-12 & 2012-13.
|
|
c)
|
Fixation of fair price of Notes supplied by BNP, Dewas and suppied
to RBI during the year 2011-12 & 2012-13.
|
|
d)
|
Fixation of fair price of Opium Procurement for the year 2016-17.
|
|
e)
|
Fixation of fair price of Bed Durries supplied by WDO during the
year 2010-11.
|
|
f)
|
Fixation of fair price of Barrack Blankets supplied by WDO during
the year 2010-11.
|
|
g)
|
Fixation of fair price of Coins supplied by India Govt. Mints at
NOIDA, Kolkata, Hydrabad & Mumbai to RBI during the year 2014-15.
|
|
h)
|
Fixation of fair price of rails supplied by SAIL-BSP to Indian
Railways during the year 2014-15.
|
|
i)
|
Fixation of Fair Selling Price of the year 2015-16 in respect of
Tear Gas Gun and Multi Barrel Launcher manufactured by CENWOSTO,
BSF, Tekanpur, Gwalior.
|
|
j)
|
Vetting of prices of Ayurvedic/Unani Medicines supplied by
M/s Indian Medicines Pharmaceutical Corporation Limited (IMPCL)
for the period 2014-15.
|
|
k)
|
Cost study of weekly Oral Contraceptive Pills (OCPs) "Saheli"
manufactured by M/s HLL Life Care Ltd.
|
|
|
|
|
(iii)
|
Fixation of service charges for the services rendered by a Govt. Department/
Agency on behalf of the other
|
|
|
|
a)
|
Vetting of claims under Market Intervention Scheme (MIS) for
Procurement of C Grade Apples in Himachal Pradesh for the 2014
season.
|
|
|
|
|
(iv)
|
Determination of Subsidy
|
|
|
|
a)
|
Vetting of claims of NAFED for Price Support Scheme (PSS) for
Pulses (Urad) Kharif 2011
|
|
b)
|
Vetting of Cost incurred on Socia Economic and Caste Census 2011
project by BEL, ECIL & ITI Ltd.
|
|
c)
|
Vetting of Duties and Taxes for procurement of Tablet PC and other
Accessories by Ministry of Rural Development from BEL for the
period from 2010-11 to 2012-13.
|
|
d)
|
Vetting of subsidy claim submitted by Projects and Equipment's
Corporation of India Ltd. in respect of sale of pulses.
|
|
e)
|
Vetting of subsidy claim submitted by State Trading Corporation
of India Ltd. (STC) in respect of sale of pulses.
|
|
f)
|
Payment of Subsidy to Northern Railway Catering Unit functionality
in Parliament House Complex for the year 2014-15.
|
|
|
|
|
(v)
|
User Charges
|
|
|
|
a)
|
Review of User Charges of Central Board of Film Certification.
|
|
b)
|
Fee and user charges in respect of Indian Grain Storage Manaement
and Research Institute (IGMRI), Hapur, (U.P).
|
|
c)
|
Review of User Charges of Indian Institute of Legal Metrology
(IILM), Ranchi.
|
|
d)
|
Fee and User Charges in respect of National Institute of Siddha,
Chennai.
|
|
e)
|
Revision of Storage Charges payable by FCI to CWC for the year
2013-14.
|
|
f)
|
Revision of special party rates hosted by LSS/RSS & MPs in
Parliament House.
|
|
g)
|
Fee and User charges in respect of National Sugar Institute,
Kanpur.
|
|
|
|
|
(vi)
|
Other studies
|
|
|
|
a)
|
Valuation of compensation of "Mine Infrastructure" of 52 Coal
Blocks.
|
|
b)
|
Cost Study of different Programs conducted by NIFM, Faridabad.
|
|
|
|
|
|
7.
|
Major Committees Represented
|
|
|
|
|
Officers of Chief Adviser Cost's Office owing to their expertise in costing/finance/
commercial accounting have also served as Chairman/Members on the following major
multi-disciplinary Inter-Ministerial/Expert Committees:-
|
1.
|
National Pharmaceuticals Pricing Authority, Department of Pharmaceuticals.
|
|
2.
|
Board of Governers and the Society of the National Institute of
Financial Management (NIFM), Faridabad.
|
|
3.
|
Governing Body of Tear Smoke Unit, BSF, Tekanpur.
|
|
4.
|
Rate Structure Committee under the Chairmanship of AS&FA, Ministry of
Information and Broadcasting to review the DAVP advertisment rates in
respect of Print Media,Private FM Radio Stations, Private C&S TV Channels
& Social Media.
|
|
5.
|
Committee on "Moderization of Costing System in India Post" in Department
of Post, Ministry of Communications.
|
|
6.
|
Advisory Committee for consideration of techno-economic viability of major/
medium, flood control and multipurpose projects, coordinated by Central
Water Commission.
|
|
7.
|
Committee to Review and Recommend Non Tax Revenue (User Charges) generated
by India Meteorology Department, New Delhi.
|
|
8.
|
Price Negotiation Committee for Electronic Voting Machines- Ministry of Law
and Justice.
|
|
9.
|
EFC meeting to consider Revised Cost Estimates (REC) for setting up of AIIMS,
Raebareli under Pradhan Mantri Swasthya Suraksha Yojana (PMSSY).
|
|
10.
|
Committee for enhancement in the existing sales price of 18 Monthly Journals
brought out by Publication Division.
|
|
11.
|
Committee to suggest a more transparent and objective method for working
our compensation for India-based officers/staff posted in India Mission/
Posts abroad.
|
|
12.
|
Standing Committee for the project "Operation and Maintenance of Ocean
Research Vessel (OVR) Sagar Nidhi BTV Sagar Manjusha and Coastal Research
Vessel (CRVs) Sagar Purvi Vessels.
|
|
13.
|
Standing Committees of Experts under Drugs (Price Control) Order 2013.
|
|
14.
|
Standing Committees to examine the reasons of time and cost overrun of
various Ministries.
|
|
15.
|
Standing Committees for Revision of Cost Estimates (REC) established in
various Ministries.
|
|
16.
|
Special Committee for Inter-linking of Rivers.
|
|
17.
|
Standing Committee for Koteshwar Hydro Electris Project (400 MW) of THDCIL
in Uttarakhand.
|
|
18.
|
Committee on User Charges of Autonomous Bodies-Implementation of the
recommendations of Expenditure Management Commission.
|
|
19.
|
PIB in respect of Koteshwar HEP (400MW) in Uttarakhand.
|
|
|
|
|
8.
|
Training
|
|
|
|
a)
|
As per the extant training policy of DoP&T, this office organised Mid-Career
Training (Executive Development) Programme of 3 weeks duration from 6
th June to 24th June 2016 in India and abroad involving
15 (fifteen) nominated Middle and Senior Level Indian Cost Accounts Service
Officers.
|
|
b)
|
A two week Induction Training Program for 10 ICoAS Officers [Assistant
Director (Cost) 2014 Batch] was conducted from 19th to
30th Septemeber 2016 at Institute of Secretariat Training &
Management (ISTM), New Delhi.
|
|
|
|
|
9.
|
e-Governance Activities
|
|
|
|
a)
|
e-Office software is being implemented across all the Divisions of the
Department of Expenditure (DoE) in a phased manner, the Office of Chief
Adviser Cost being one of the divisions under DoE is also taking necessary
action in this regard. Online e-Office APAR System (SPARROW) in respect of
ICoAS officers will be implemented from the assessment year 2016-17.
Further, this office has also become part of the e-Office Premium software
being implemented in DoE.
|
|
b)
|
The existing website www.cac.gov.in of the office of Chief Adviser Cost is
also proposed to be revamped based on latest guidelines of GoI including
RTI requirements.
|
|
|
|
|
10.
|
Right to Information Act, 2005
|
|
|
Right to Information Act, 2005 is completely implemented. PIO and Appellate Authority
are in place under the said act and the information sought by the applicants is provided
within the stipulated time period. Recent guidelines including suo motu (Proactive)
disclosure under Sec 4(1)(b) of the RTI Act is under implementation.
|
|
|
|
11.
|
Initiative undertaken for SC/ ST/ OBC/Persons with Disabled
|
|
|
Recruitment to the entry level of ICoAS i.e. Assistant Director (Cost) is made on
the recommendations of UPSC. Government of India policies on reservation for
SC/ST/OBC/PWD categories are followed, wherever applicable.
|
|
|
|
|