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Rule 13 - Write-Off Losses | KartavyaDesk

DFPR 1978delegation

Original Rule Text

(a) the loss does not disclose a defect in rules or procedure, the amendment of which requires the orders of higher authority or the Finance Ministry; (b) there has not been any serious negligence on the part of any Government servant which may call for disciplinary action by a higher authority; (c) before the decision is taken to write-off a loss, the Administrative Ministry/ Department etc, should make a thorough and searching investigation of the cases. The lessons learnt there from should be applied to prevent the recurrence of such cases in future; (d) a quarterly statement of write-off of losses should be submitted to the Integrated Finance Division indicating the reasons for the loss, nature of the loss and the remedial measures taken to prevent the recurrence of such type of loss.

What This Means

Rule 13 of the Delegation of Financial Powers Rules, 1978, deals with writing off financial losses in government departments. Essentially, it outlines the conditions under which a department can officially declare a loss and remove it from its accounts. This rule is crucial for maintaining financial accountability and preventing future losses. Before writing off any loss, the department must conduct a thorough investigation to understand the cause and implement measures to prevent similar incidents from happening again.

This rule applies when a government department experiences a financial loss, such as through theft, damage, or other unforeseen circumstances. It affects all government employees involved in financial management, particularly those responsible for investigating and reporting losses. The rule ensures that losses are not simply ignored but are properly accounted for and analyzed to improve internal controls and prevent future occurrences. It also mandates regular reporting of such write-offs to the Integrated Finance Division for oversight and monitoring.

In short, Rule 13 is about responsible financial management. It requires departments to learn from their mistakes, fix any weaknesses in their processes, and keep a record of all losses. This helps ensure that public funds are used responsibly and that the government is accountable for its financial performance.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Rule 13 pertains to the write-off of financial losses within government departments.
  • •A thorough investigation is mandatory before any loss can be written off.
  • •The loss must not reveal systemic defects requiring higher authority or Finance Ministry intervention.
  • •There should be no serious negligence on the part of a government servant warranting disciplinary action by a higher authority.
  • •Quarterly statements of write-offs must be submitted to the Integrated Finance Division.

Practical Example

The Department of Rural Development discovered that INR 50,000 allocated for a sanitation project in Village X was embezzled by a junior clerk, Mr. Sharma. After an internal audit, the department initiated a thorough investigation. The investigation revealed that Mr. Sharma exploited a loophole in the payment authorization process.

Following the investigation, the department implemented stricter verification procedures for all payments. Since the loss didn't reveal a fundamental flaw in the rules requiring Finance Ministry intervention, and Mr. Sharma is facing disciplinary action, the department can proceed with writing off the INR 50,000 loss. They must then submit a quarterly report to the Integrated Finance Division, detailing the incident, the amount lost, the remedial actions taken, and the disciplinary action against Mr. Sharma.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What constitutes a 'loss' under Rule 13?▼
A 'loss' can include any financial irregularity, theft, damage to government property, or any other event resulting in a financial deficit for the department.
Who is responsible for conducting the investigation before a write-off?▼
The Administrative Ministry/Department is responsible for conducting a thorough and searching investigation of the loss.
What information should be included in the quarterly statement to the Integrated Finance Division?▼
The statement should include the reasons for the loss, the nature of the loss, the amount of the loss, and the remedial measures taken to prevent recurrence.
What happens if the investigation reveals a defect in the rules?▼
If the investigation reveals a defect in the rules or procedures that requires amendment, the matter must be referred to a higher authority or the Finance Ministry for further action. The write-off cannot proceed until the rules are addressed.
Can a loss be written off if there was serious negligence by a government employee?▼
A loss can be written off even if there was negligence, provided that the negligence is being addressed through appropriate disciplinary action by a higher authority. The write-off is contingent on accountability being established.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Rule 13 of the Delegation of Financial Powers Rules, 1978, which of the following conditions must be met before a financial loss can be written off?

Related Rules

Annexure IIDFPR 2024 - Annexure IIAppendix IDFPR 2024 - Appendix IRule 20DFPR 2024 - Rule 20 - (Expenditure from or incidence of charges on contingency fund of India)Rule 10DFPR 2024 - Rule 10 - (Re-appropriation)Rule 14DFPR 2024 - Rule 14 - (Insurance of Government property)

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