Rule 209 of The General Financial Rules 2017 Receipt Issue of Goods and Materials from Internal Divisions
Original Rule Text
Visual Summary
Indenting officer must project indent, verify quantity/quality, and provide receipt.
Ensure proper indent, obtain acknowledgement for issued materials.
Contractors must acknowledge recovery rates and total value for materials.
Executive Summary
Rule 209 of the General Financial Rules, 2017, establishes clear procedures for the internal transfer of goods and materials within a government organization. It mandates that indenting officers must project indents in a prescribed form and meticulously verify the quantity, quality, and condition of received materials, providing a formal receipt. Concurrently, officers-in-charge of stores are responsible for ensuring proper indenting and obtaining written or online acknowledgement for all issued materials. The rule also includes specific provisions for materials issued to contractors, requiring their acknowledgement of recovery rates and total value, and addresses scenarios where full compliance with an indent is not possible, allowing for partial supplies with appropriate documentation.
In-Depth Analysis of the Rule
Rule 209 is a crucial component of inventory management within government entities, ensuring a structured and accountable process for the movement of goods and materials between internal divisions. Its primary aim is to prevent discrepancies, maintain quality control, and establish clear lines of responsibility during internal transfers.
Breakdown of the Rule:
- Indent and Receipt by Indenting Officer (Sub-rule i): This sub-rule places the onus on the indenting officer to initiate the process by projecting an indent in a prescribed format. Upon receiving the materials, the officer must conduct a thorough examination, including counting, measuring, or weighing, to confirm that quantities are accurate, quality meets specifications, and there are no damages or deficiencies. A formal receipt must then be issued to the division that supplied the materials, closing the loop of accountability for the transfer.
- Issue by Officer-in-Charge of Stores (Sub-rule ii): The officer-in-charge of stores is responsible for ensuring that any issue of materials from stock (for departmental use, manufacturing, or sale) is backed by an appropriate indent from the requesting officer. A critical step here is obtaining a written or online acknowledgement of receipt from the indenting officer or their authorized representative at the time of issue, confirming the transfer of custody.
- Materials Issued to Contractors (Sub-rule iii): For materials supplied to contractors where the cost is recoverable, the rule mandates a specific acknowledgement. All relevant details, such as recovery rates and the total value chargeable, must be formally acknowledged by the contractor through a signed and dated document. This ensures transparency and enforceability of cost recovery.
- Partial Compliance by Store Officer (Sub-rule iv): In situations where the officer-in-charge of stores cannot fulfill an indent completely, they are permitted to supply the available quantity. However, they must make a suitable entry to this effect on the indentor’s copy of the indent. If alternative materials are available and supplied, this fact should also be clearly indicated in the document, providing a record of the deviation from the original request.
Practical Example:
Consider a scenario where the Administration Department of a government office requires new office chairs from the Central Stores. The Administration Department’s indenting officer submits a formal indent. When the chairs arrive, the indenting officer carefully counts them, inspects for any damage, and verifies they match the specified model and color. After confirming everything is in order, they issue a signed receipt to the Central Stores. The Central Stores’ officer-in-charge, having received the original indent, ensures the chairs are properly issued and obtains the acknowledgement from the Administration Department, thereby completing the internal transfer process as per Rule 209.
Related Provisions
Understanding Rule 209 is enhanced by examining related provisions within the General Financial Rules, 2017:
- Rule 208 of The General Financial Rules 2017 Receipt of Goods and Materials from Private Suppliers: This rule details the procedures for receiving goods and materials from external, private suppliers, complementing Rule 209’s focus on internal transfers.
- Rule 210 of The General Financial Rules 2017 Custody of Goods and Materials: This provision outlines the responsibilities for the safe custody and proper storage of goods and materials once they are received, directly following the receipt/issue process.
- Rule 211 of The General Financial Rules 2017 Lists and Accounts: This rule mandates the maintenance of suitable item-wise lists and accounts for goods and materials, providing the necessary record-keeping framework for the transactions covered by Rule 209.
Learning Aids
Mnemonics:
- I.I.I.C.P. – Indent, Inspect, Issue, Contractor, Partial. This helps remember the key aspects of Rule 209: Indenting Officer’s role in Indent and Inspect, Store Officer’s role in Issue, special case for Contractors, and handling Partial supplies.
Process Flowchart:
Multiple Choice Questions
1. According to Rule 209 (i) of the General Financial Rules, 2017, what is the primary responsibility of the indenting officer upon receiving goods and materials from an internal division?
- A) To immediately forward them to the end-user without inspection.
- B) To examine, count, measure, or weigh the materials to ensure correctness and quality.
- C) To store them temporarily until the officer-in-charge of stores can inspect.
- D) To update the financial ledger with the estimated value of the received goods.
Show Answer
Correct Answer: B) To examine, count, measure, or weigh the materials to ensure correctness and quality.
2. Under Rule 209 (ii) of the General Financial Rules, 2017, what must the Officer-in-charge of stores obtain when issuing materials from stock?
- A) A verbal confirmation from the indenting officer.
- B) A written/online acknowledgement of receipt from the indenting officer or representative.
- C) A copy of the budget allocation for the materials.
- D) Approval from the Head of Department for each issue.
Show Answer
Correct Answer: B) A written/online acknowledgement of receipt from the indenting officer or representative.
3. When materials are issued to a contractor with recoverable costs, as per Rule 209 (iii) of the General Financial Rules, 2017, what specific action is required?
- A) The contractor must provide a security deposit equal to the material’s value.
- B) The contractor must acknowledge all relevant particulars, including recovery rates and total value.
- C) The transaction must be approved by the Ministry of Finance.
- D) The materials must be insured by the government before issue.
Show Answer
Correct Answer: B) The contractor must acknowledge all relevant particulars, including recovery rates and total value.
4. If an Officer-in-charge of stores cannot fully comply with an indent for materials, what does Rule 209 (iv) of the General Financial Rules, 2017, stipulate?
- A) The indent must be cancelled, and a new one submitted.
- B) The officer must obtain external supplies to fulfill the indent completely.
- C) The officer should supply the available quantity and make a suitable entry on the indentor’s copy.
- D) The matter must be escalated to the Head of Department for a decision.
Show Answer
Correct Answer: C) The officer should supply the available quantity and make a suitable entry on the indentor’s copy.
5. Which of the following is NOT a requirement for the indenting officer when receiving materials from an internal division, according to Rule 209 (i) of the General Financial Rules, 2017?
- A) Ensuring quantities are correct.
- B) Verifying quality is in line with specifications.
- C) Checking for damage or deficiency.
- D) Obtaining a financial guarantee from the sending division.
Show Answer
Correct Answer: D) Obtaining a financial guarantee from the sending division.
Frequently Asked Questions
What is the purpose of Rule 209 of the General Financial Rules, 2017?
Rule 209 of the General Financial Rules, 2017, aims to establish a clear and accountable process for the transfer of goods and materials between different internal divisions of the same government organization, ensuring proper verification, documentation, and responsibility.
How does Rule 209 of the General Financial Rules, 2017, address situations where an indent cannot be fully met?
Under Rule 209 (iv) of the General Financial Rules, 2017, if the Officer-in-charge of stores cannot comply with an indent in full, they should supply the available quantity and make a suitable entry to this effect in the indentor’s copy of the indent. They can also indicate if alternative materials are available.
Why is contractor acknowledgement important under Rule 209 (iii) of the General Financial Rules, 2017?
Contractor acknowledgement under Rule 209 (iii) of the General Financial Rules, 2017, is crucial because it formally records the contractor’s acceptance of the recovery rates and total value chargeable for materials issued to them. This ensures transparency, prevents disputes, and facilitates the recovery of costs by the government.
Key Takeaways
- Rule 209 mandates strict verification of quantity, quality, and condition by the indenting officer upon receiving internal supplies.
- Officers-in-charge of stores must obtain formal acknowledgement for all materials issued from stock to ensure accountability.
- Specific provisions require contractors to acknowledge recovery details for materials supplied to them.
- The rule provides a framework for handling partial fulfillment of indents, ensuring proper documentation of any deviations.
Conclusion
Rule 209 of the General Financial Rules, 2017, is fundamental to maintaining financial propriety and operational efficiency in government organizations. By clearly defining the roles and responsibilities for internal transfers of goods and materials, it ensures accountability, minimizes waste, and supports effective inventory management. Adherence to these procedures is vital for transparent and orderly functioning within public service.