Rule 208 of The General Financial Rules 2017 Receipt of Goods and Materials from Private Suppliers
Original Rule Text
Visual Summary
Officer-in-charge must follow relevant contract terms.
Count, measure, weigh, and visually inspect all materials.
Record received materials in IT-based stock registers and certify receipt.
Executive Summary
Rule 208 of The General Financial Rules, 2017 outlines the mandatory procedures for the receipt of goods and materials from private suppliers. It emphasizes adherence to contract terms, thorough physical and technical inspection to verify quantity and quality, and diligent record-keeping in stock registers. The rule aims to ensure accountability, prevent discrepancies, and maintain accurate inventory records within government departments.
In-Depth Analysis of the Rule
Rule 208 is a foundational provision for inventory management, ensuring that all goods and materials procured from external vendors are received and documented meticulously. This rule is critical for maintaining financial integrity and operational efficiency within government entities.
Breakdown of the Rule:
- Sub-rule (1)(i) – Adherence to Contract Terms: The officer-in-charge of stores must strictly follow the relevant contract terms and prescribed procedures when receiving materials from a supplier. This ensures that the procurement process aligns with agreed-upon legal and administrative frameworks.
- Sub-rule (1)(ii) – Physical and Technical Inspection: All incoming materials must be counted, measured, or weighed. A visual inspection is mandatory to confirm correct quantities, adherence to specifications, and absence of damage or deficiencies. If required, a technical inspection by an approved inspector or agency must be conducted. An appropriate receipt, as per contract provisions, should be issued to the supplier.
- Sub-rule (1)(iii) – Stock Register Entry and Certification: After receipt, details of the materials must be promptly entered into an appropriate stock register, ideally an IT-based system. The officer-in-charge of stores is required to certify that the materials have been physically received and duly recorded.
Practical Example:
Imagine a government department procures 100 new computers from a private vendor. According to Rule 208, the officer-in-charge of stores must first consult the purchase contract for specific delivery and inspection clauses. Upon delivery, they must physically count all 100 computers, verify their models and specifications against the order, and check for any physical damage. A technical expert might also inspect a sample to ensure internal components match specifications. Once verified, the officer issues a receipt to the supplier and immediately records all details (quantity, model, date of receipt, supplier name) in the department’s electronic stock register, certifying the successful receipt and entry.
Related Provisions
Understanding Rule 208 is enhanced by considering related provisions:
- Rule 207 of The General Financial Rules, 2017 Inventory Management: This rule sets the basic framework for inventory management, to which Rule 208 provides specific procedures for external receipts.
- Rule 209 of The General Financial Rules, 2017 Receipt/Issue of Goods and Materials from Internal Divisions of the Same Organisation: This rule complements Rule 208 by detailing procedures for internal transfers of goods, ensuring a comprehensive approach to material handling.
- Rule 211 of The General Financial Rules, 2017 Lists and Accounts: This rule mandates the maintenance of item-wise lists and accounts, directly supporting the record-keeping requirements of Rule 208.
Learning Aids
Mnemonics:
- C.I.R.T.S. – Contract terms, Inspect, Record, Technical check, Stock register.
Process Flowchart:
Multiple Choice Questions (MCQs)
1. According to Rule 208 of The General Financial Rules, 2017, what is the primary responsibility of the officer-in-charge of stores when receiving goods from a private supplier?
- A) Negotiate prices
- B) Refer to contract terms
- C) Arrange for payment
- D) Store immediately
Show Answer
Correct Answer: B) Refer to contract terms
2. Rule 208 (1)(ii) of The General Financial Rules, 2017 mandates what action for all received materials?
- A) Immediate distribution
- B) Counting, measuring, or weighing
- C) Resale
- D) Disposal
Show Answer
Correct Answer: B) Counting, measuring, or weighing
3. When is a technical inspection required under Rule 208 of The General Financial Rules, 2017 for received goods?
- A) Always
- B) Only for high-value items
- C) Where specifically required
- D) Never
Show Answer
Correct Answer: C) Where specifically required
4. After receiving materials, Rule 208 (1)(iii) of The General Financial Rules, 2017 requires details to be entered into which system?
- A) A ledger
- B) A supplier database
- C) An appropriate stock register
- D) An accounting software
Show Answer
Correct Answer: C) An appropriate stock register
5. Who is responsible for certifying the actual receipt and recording of materials in the stock registers as per Rule 208 of The General Financial Rules, 2017?
- A) The supplier
- B) The finance officer
- C) The head of the department
- D) The officer-in-charge of stores
Show Answer
Correct Answer: D) The officer-in-charge of stores
Frequently Asked Questions
Why is it important to refer to contract terms when receiving goods under Rule 208 of The General Financial Rules, 2017?
Referring to contract terms ensures that the receipt process aligns with the agreed-upon conditions, including specifications, delivery schedules, and any special instructions, thereby preventing disputes and ensuring compliance.
What kind of inspection is mandatory for all materials received from private suppliers as per Rule 208 of The General Financial Rules, 2017?
A visual inspection is mandatory for all materials to ensure correct quantities, adherence to specifications, and absence of damage or deficiencies. Technical inspection is required where specified.
Can the stock register mentioned in Rule 208 of The General Financial Rules, 2017 be a manual system?
Rule 208 (1)(iii) states that the stock register should be “preferably in an IT-based system,” indicating a preference for digital, but not explicitly prohibiting manual systems if they meet the “appropriate” criteria.
Key Takeaways
- Rule 208 mandates strict adherence to contract terms and prescribed procedures for receiving goods from private suppliers.
- Thorough physical and, if necessary, technical inspection of all incoming materials is crucial to verify quantity, quality, and condition.
- Accurate and prompt entry of received materials into an appropriate stock register (preferably IT-based) is a core requirement.
- The officer-in-charge of stores bears the responsibility for certifying the actual receipt and proper recording of materials.
Conclusion
Rule 208 of The General Financial Rules, 2017 establishes a robust framework for the initial stage of inventory management: the receipt of goods from private suppliers. By mandating careful inspection, adherence to contractual obligations, and meticulous record-keeping, it safeguards public funds and assets, ensuring transparency and accountability in government procurement processes. Compliance with this rule is fundamental to effective financial management and preventing losses due to discrepancies or substandard supplies.