Rule 140 of The General Financial Rules 2017 Administrative Approval and Execution of Entrusted Works
Original Rule Text
Visual Summary
Required for entrusted works.
By entrusted organizations.
May be drawn for proper execution.
Executive Summary
Rule 140 of The General Financial Rules, 2017, outlines the procedure for administrative approval and expenditure sanction for original, minor, and repair works that are entrusted to Public Works Organisations (PWOs), Public Sector Undertakings (PSUs), or other designated entities under Rule 133(2) or Rule 133(3). It mandates that such works must be executed according to the rules and procedures of the entrusted organization. Furthermore, it suggests that a Memorandum of Understanding (MoU) may be established to ensure proper execution of these works.
In-Depth Analysis of the Rule
Rule 140 provides a framework for how government departments manage works that are not executed directly by them but are instead outsourced to specialized agencies. This ensures accountability and adherence to established procedures even when external entities are involved.
Breakdown of the Rule:
- Administrative Approval and Expenditure Sanction: For original, minor, and repair works entrusted under Rule 133(2) or Rule 133(3), the relevant authority must grant administrative approval and expenditure sanction. Funds must also be allotted in accordance with these rules and the Delegation of Financial Power Rules.
- Execution by Entrusted Organisation: The Public Works Organisation, Public Sector Undertaking, or any other organization to which the work is allotted is responsible for executing the work. This execution must strictly follow the rules and procedures prescribed within that specific organization.
- Memorandum of Understanding (MoU): The rule suggests that an MoU may be drawn up with the entrusted organization to ensure the proper execution of the work. This formal agreement can help clarify roles, responsibilities, and performance expectations.
Practical Example:
Imagine the Ministry of Health needs to construct a new hospital wing. Instead of undertaking the construction directly, it entrusts the work to the Central Public Works Department (CPWD) under Rule 133(2). According to Rule 140, the Ministry of Health must first provide the necessary administrative approval and expenditure sanction, allocating funds as per the General Financial Rules, 2017. The CPWD will then execute the construction following its own established procedures and regulations. To formalize this arrangement and ensure smooth coordination, the Ministry of Health may enter into a Memorandum of Understanding with the CPWD, detailing project milestones, quality standards, and reporting mechanisms.
Related Provisions
Rule 140 is closely related to other provisions concerning works and financial powers:
- Rule 133 of The General Financial Rules, 2017 (Assignment of Works to Public Works Organisations or Public Sector Undertakings): This rule specifies the conditions under which works can be entrusted to external organizations, forming the basis for Rule 140’s application.
- Rule 132 of The General Financial Rules, 2017 (Powers to Sanction Works): This rule details the delegation of powers for administrative approval, expenditure sanction, and re-appropriation of funds for works, which Rule 140 refers to.
- Rule 139 of The General Financial Rules, 2017 (Procedure for Execution of Works): While Rule 140 focuses on entrusted works, Rule 139 outlines the procedure for works executed directly by a Ministry or Department, providing a contrast in execution methodologies.
Learning Aids
Mnemonics:
- Approval, Execution, MoU: Remember the key steps: Administrative Approval, Execution by the entrusted body, and the option for a Memorandum of Understanding.
Process Flowchart:
Multiple Choice Questions
1. According to Rule 140 of The General Financial Rules, 2017, for which types of works is administrative approval and expenditure sanction required when entrusted to external organizations?
- A) Only original works
- B) Only minor works
- C) Only repair works
- D) Original, minor, and repair works
Show Answer
Correct Answer: D) Original, minor, and repair works
2. As per Rule 140 of The General Financial Rules, 2017, how should an entrusted Public Works Organisation (PWO) or Public Sector Undertaking (PSU) execute the work?
- A) According to the rules of the administrative Ministry
- B) According to its own prescribed rules and procedures
- C) As per a separate contract with the Ministry of Finance
- D) Based on ad-hoc instructions from the sanctioning authority
Show Answer
Correct Answer: B) According to its own prescribed rules and procedures
3. What document may be drawn up with a Public Works Organisation or Public Sector Undertaking for proper execution of work, as suggested by Rule 140 of The General Financial Rules, 2017?
- A) A formal contract
- B) A Letter of Intent
- C) A Memorandum of Understanding (MoU)
- D) A Service Level Agreement
Show Answer
Correct Answer: C) A Memorandum of Understanding (MoU)
4. Rule 140 of The General Financial Rules, 2017, applies to works entrusted as per which other rules?
- A) Rule 130 and Rule 131
- B) Rule 133(2) or Rule 133(3)
- C) Rule 136 and Rule 137
- D) Rule 142 and Rule 143
Show Answer
Correct Answer: B) Rule 133(2) or Rule 133(3)
5. Who is responsible for according administrative approval and expenditure sanction for entrusted works under Rule 140 of The General Financial Rules, 2017?
- A) The Public Works Organisation
- B) The Public Sector Undertaking
- C) The concerned authority under these rules
- D) The Ministry of Finance
Show Answer
Correct Answer: C) The concerned authority under these rules
Frequently Asked Questions
What is the primary purpose of Rule 140 of The General Financial Rules, 2017?
Rule 140 primarily governs the administrative approval, expenditure sanction, and execution procedures for original, minor, and repair works that government departments entrust to external organizations like Public Works Organisations or Public Sector Undertakings.
Does Rule 140 of The General Financial Rules, 2017, allow entrusted organizations to follow their own procedures?
Yes, Rule 140 explicitly states that the entrusted Public Works Organisation or Public Sector Undertaking shall execute the work in accordance with the rules and procedures prescribed in that specific organization.
Is a Memorandum of Understanding (MoU) mandatory under Rule 140 of The General Financial Rules, 2017?
Rule 140 states that an MoU “may be drawn” with the entrusted organization for proper execution of work, implying it is not strictly mandatory but is a recommended practice for formalizing the arrangement.
Key Takeaways
- Rule 140 mandates administrative approval and expenditure sanction by the concerned authority for all entrusted original, minor, and repair works.
- Entrusted organizations (PWOs, PSUs) must execute these works following their own established rules and procedures.
- A Memorandum of Understanding (MoU) is a recommended tool to ensure proper execution and clarity for entrusted works.
- The rule ensures a structured approach to outsourcing government works, maintaining accountability and procedural adherence.
Conclusion
Rule 140 of The General Financial Rules, 2017, is crucial for ensuring that even when government works are entrusted to external agencies, there is a clear framework for approval, execution, and accountability. By requiring adherence to established procedures and recommending formal agreements like MoUs, it helps maintain financial propriety and efficient project delivery across various government initiatives.