Revision of Establishment
128. When the entertainment of a new establishment or a change, temporary or permanent, is proposed in an office, a letter fully explaning the proposals and the conditions which have given rise to them should be submitted to the authority concerned. In this letter should be set out
(i) the present cost either of the section or sections affected, or of the total establishment as the circumstance of the case may indicate to be necessary ;
(ii) the cost after revision ; and
(iii) details of the number and pay of the posts which it is proposed to add or modify.
Explanation(a) When a scheme requires the sanction of higher authority only because particular items are beyond the powers of sanction of the subordinate authority, in the letter submitted to the higher authority full details should be given of these items and of any other part of the scheme so connected with them that, unless it is explained, it would be difficult for the higher authority to determine whether sanction should be given to these items or not. Details of other parts of the scheme are not required and should not be given, lump sum figures showing the total cost of each part of the scheme being sufficient.
Example(1) It is proposed to establish a first grade College, and the sanction of higher, authority is required only because it is desired to create posts in the State Educational Service for the principal and three professors. Full details of the teaching staff should be given, because without these details the necessity for the posts in the State Educational Service cannot be gauged. No details should be given of the clerical or other subordinate staff.
Example(2) It is proposed to establish a Government high school and the sanction of higher authority is required only because it is proposed to create a post in the State Educational Service for the headmaster. No details are required of the staff proposed for the school except the headmaster, because a knowledge of these details is not necessary in order to determine whether a post in the State Educational Service is required.
Explanation(b) When the revision of a number of establishments is undertaken in pursuance of one definite central idea, which constitutes a single scheme for purposes of sanction and when the scheme requires the sanction of higher authority, in the letter submitting the proposals for sanction, full details of the several establishments need not be given but only such details as will indicate the financial effect of each portion of the proposals.
Thus if the scheme is for the increase of pay of a number of establishments it will suffice to set out
(i) The present cost of all establishments concerned.
(ii) The various increases of pay or the various percentages of increases proposed and the reasons justifying the proposals.
(iii) In respect of each separate rate of increase proposed, as set out in (ii)
(a) A list of the establishments or classes of Government servants to which it is to be applied and the reasons for such differentiation.
(b) As accurate an estimate as possible of the probable cost, with a statement that this has been worked out in consultation with the Accountant General and that it is accepted by him as correct.
NOTEIn determining the extra cost allowances, whether fixed of variable should be included. The estimate of the extra cost due to variable allowances such as those granted under house allowance schemes, cannot be exact, but it should be as accurate as possible. The Government in the Finance Department may issue such instructions as may be necessary as to the manner in which such estimates should be prepared.
129. (a) In the following cases a proposition statement in duplicate in Form no. 7 should also be submitted :
(i) cases of general revision of establishment ;
(ii) proposals which cannot be set out clearly without it.
NOTEA simpler form no. 8 may be used when the full details of Form no. 7 are not necessary.
(b) The details to be shown in proposition statements will be determined by the following rules :
(i) The proposition statement, where this is necessary should relate strictly to the section or part of the office affected by the proposals. As regards the other parts or sections of the office, neither details nor figures of total cost need be included.
(ii) Where a section consist of both inferior and superior servants, details need be given only of the class affected, if a saving of labour will result from the adoption of this procedure.
(iii) The rules, as to detail set out in paragraph 128.
NOTES(1) Where the rate of any post, existing or proposed, is on time scale, the average monthly cost, and not the actual or the commencing cost, must be given. This average cost varies under different circumstances, but generally depends to a great extent on the period of rise. The average cost should ordinarily be worked out in accordance with the formulae reproduced in Appendix VIII. Other instructions on the subject will be found in the manuals of the Accountant General or will be issued by him from time to time. In cases not covered by those instructions or in which the calculation of average cost is found to be difficult, a reference should be made to the Accountant General.
(2) The formulae referred to in note (1) are not applicable to posts on rates of pay which were known as "progressive" under the rules in force prior to the introduction of the Fundamental Rules and which have not subsequently been declared by Government to be on a time-scale basis. If such posts rise by five equal increments from a minimum to a maximum the average monthly cost should be taken at the minimum plus two-third or if the post is ministerial, at the minimum plus three-fourths of the difference between the minimum and the maximum. In other cases an intelligent estimate should be made and all doubtful cases should be referred to the Accountant General.
(c) The proposition statement or the proposal for revision need not be sent through the Accountant General but the Government or other subordinate sanctioning authority will forward it to the Accountant General, who will verify the present scale or state the present cost, as the case may be, according to his audit register. In ordinary cases the sanctioning authority may accept the Accountant Generals figures, and if there are discrepancies between his figures and those furnished by the authority initiating the proposals, they may be left over for adjustment at the next periodical verification of the scale of establishment with reference to the annual return prescribed in paragraph 127.
130. If the proposals for revision of an establishment involve re-appropriation of funds, as application for re-appropriation should also be submitted in accordance with the rules contained in Chapter XIII of the Budget Manual.