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NATIONAL THERMAL POWER CORPORATION LIMITED

MANUAL ON ACCOUNTING, BUDGETING AND


REPORTING OF CONSULTANCY PROJECTS
November 2002

A. F. FERGUSON & CO
NEW DELHI

CONTENTS
Process No.
01
02
03
04
05
06
07
08

Process

Page No.

Introduction
Approval of Cost Sheets, Bidding and Obtaining of award
for execution
Accounting for project expenses incurred by Consultancy
Wing
Accounting for expenses relating to manpower drawn from/
expenses incurred by other units of NTPC for consultancy
assignments
Invoicing and Accounting of Collection
Cost Monitoring and control
Period-end accounting
Budgeting and Control
Approval of Budget

1
3
6
9
12
16
18
20
22

List of Formats
Format
Cost Sheet
Resource Allocation Sheet
Cost Sheet Vetting Register
Project Cost & Monitoring Control Register
Claims Reimbursable by Clients
Imprest Statement
Time Sheet
Invoice
Invoice Register
Service Tax Register
Money Receipt
Status of Work Done
Certificate for Projects completed during the period.
BUDGET FORMATS
Income Budget
Expenditure Budget
Overhead expenses of Consultancy
Manpower Budget
Miscellaneous Bought Out Assets Budget
MIR FORMATS
Statement of Claims Reimbursable by Clients Pending Invoices
Statement of Outstanding dues
Summary of Outstanding dues
Statement of actual cost as against approved cost sheet
Manday Utilisation Report
Report on Income Budget vs Actuals
Report on Expenditure Budget vs Actuals
Report on Overheads Budget vs Actuals

Legends used in the manual:


I
Input
O
Output
R
Report/Register
MIR Management Information Report
Appendices
Appendix I

Budgeting Process

Format No
CW/01
CW/02
CW/03
CW/04
CW/05
CW/06
CW/07
CW/08
CW/09
CW/10
CW/11
CW/12
CW/13
CW/BUD/01
CW/BUD/02
CW/BUD/03
CW/BUD/04
CW/BUD/05
CW/MIR/01
CW/MIR/02
CW/MIR/03
CW/MIR/04
CW/MIR/05
CW/MIR/06
CW/MIR/07
CW/MIR/08

INTRODUCTION
Consultancy Wing is a separate profit center of NTPC.
following activities:

It broadly carries out the

Market Surveys i.e. identification of clients, project areas, etc.


Bidding for consultancy contracts and execution of contracts on award.

The consultancy contracts are carried out under the overall control and supervision of
Project Manager, who is nominated on case-to-case basis after obtaining the contract
from the clients. The contracts are executed both by personnel on the payroll of the
Consultancy Wing as well as by the manpower drawn from the other units of NTPC.
This manual covers the financial aspects, accounting policies and procedures, budgeting
process and management information system etc., for execution of consultancy contracts.
In addition to this manual, all the other manuals prescribed for the Finance and Accounts
Department of NTPC i.e. the manuals on Cash and Bank, Book section, Personnel
accounting, Procurement and Stores Accounting, Contract Accounting, etc should also be
complied with by the Consultancy Wing .
The accounting guidelines to be followed in respect of execution of consultancy service
contracts/construction contracts are as follows:
ACCOUNTING GUIDELINES

Revenue Recognition
The guidelines for recognition of revenue of consultancy projects are as follows:

Service Contracts
In case of service contracts the revenue should be recognized based on the
proportionate completion method i.e. proportionate to the services provided
against the contract or based on the actual progress of the project.
Proportion of completion is based on the services provided or actual progress of
work as per technical assessment and as certified by the project manager at the
end of accounting period

Construction contracts
In respect of the construction contracts, revenue should be recognized on the basis
of percentage of completion under which revenue is recognized as determined

Manual on Accounting, Budgeting and reporting of Consultancy projects

with respect to the stage of completion of the contract activity at the end of the
accounting period.
Percentage of completion is based on the actual execution of work as certified
by the Project Managers at the end of accounting period.

Foreign Currency Translation


The guidelines for foreign currency translation of consultancy projects are as follows:

Items of income and expenditure except depreciation are translated at average rate
for the year. Depreciation is converted at the rates adopted for the corresponding
fixed assets.
Current assets and liabilities are translated at the closing rates, and fixed assets are
translated at the rates in force when the transaction took place.
All translation differences are recognized as income/expenditure during the year
in which they arise.

The above are the broad accounting guidelines for Consultancy Wing. The relevant
accounting standards such as AS-7 for Construction Contracts, AS-9 for Revenue
Recognition and AS-11 for Foreign Currency Translation should be referred to for the
purpose of revenue recognition and accounting for expenses.

Manual on Accounting, Budgeting and reporting of Consultancy projects

Process: Approval of Cost Sheets, Bidding and obtaining

Process No: 01

award for execution


Process brief:
The process deals with the approval of Cost Sheets, Bidding for contracts, submission of
offers to clients and obtaining of award for execution by Consultancy Wing.
The Marketing department prepares the cost sheets after approval of the Decision to Bid
Note (DBN) by the competent authority. The cost sheets forwarded by Marketing
Department are to be vetted by Finance and Accounts Department. While vetting,
Finance and Accounts Department should ensure, that the cost sheets have been prepared
based on the approved rates, wherever applicable.
On award of a consultancy project the Marketing department should allot a Project Code
to the assignment. A copy of the approved cost sheets along with NTPCs offer and the
Letter of Award from the client should be forwarded to Finance and Accounts
Department. In case any Resources Allocation sheet i.e. internal targets for cost controls
have been made based on the approved Cost Sheets, the same should also to be made
available to the Finance and Accounts Department.
In case of any Pre/Post award variations in the Project cost arising on account of
reduction/escalation in the cost of inputs due to time/ cost overruns or changes in scope
of work, the revised cost sheets duly prepared by the Project Manager should be vetted by
the Finance and Accounts Department before approval of the competent authority.
Departments/ sections involved in the process

Finance and Accounts Department CCW


Marketing Department - CW

Procedure: Approval of Cost Sheets, Bidding for jobs/submitting offers to clients


and obtaining award for execution
S.
Activity
No
Approval of Cost Sheets
1
Receive the Cost Sheets and draft Offer
along with the approved Decision to Bid
Note (DBN), for a proposed assignment
from the Marketing department
2
Check the Cost sheets and the offer for
the following:
scope of the work vis--vis inputs such

Person
Responsible

Frequency

Finance and
Accounts
Department
CW
Finance and
Accounts
Department

As and when

Manual on Accounting, Budgeting and reporting of Consultancy projects

Within 3
days

Remarks

In case of any
discrepancies,
return the Cost

S.
No

Activity

as man-days, tours and travel,


deliverables etc, provided by the
executing departments
man-days/ man-month cost vis--vis
the approved rates
other input costs are commensurate
with the scope of work
sub-contracting cost, if any
financing charges
escalation factor
contingency cost provided, taking into
account the nature of the assignment
terms and conditions of the draft offer,
especially the clauses on payment
terms,
taxation
and
liquidated
damages, if any
Vet the cost sheet and draft offer

Person
Responsible
CW

Frequency

Finance and
Accounts
Department
CW
Finance and
Accounts
Department
CW

Same day

Remarks
Sheets to the
Marketing
deptt
for
corrections.

Update the Cost Sheet Vetting Register


(CSVR) with the details of the cost sheet.

Record the serial number of the CSVR


on the hard copy of the cost sheets.
Forward the verified Cost Sheet and the
draft offer to the competent authority for
approval

In case bid security is required to be


submitted along with the Offer, arrange
for the same in the form and amount
required.
Obtaining of Award
5
Receive a copy of the approved cost
sheets, NTPCs Offer, Letter of Award
from the client and the Resources
Allocation Sheet from the Marketing
department.
6
Verify the details of the above in the
Project Cost Monitoring and Control
Register (PCMCR) with reference to the
following:
Lump sum fee basis, man
month/man day basis contract for
receivables

As and when
(before bid
submission)

Project
Finance
Group
CW
Project
Finance
Group
CW

Manual on Accounting, Budgeting and reporting of Consultancy projects

By the next
day

PCMCR is to
be maintained
Project wise,
cost head wise

S.
No

Activity

Person
Responsible

Frequency

Remarks

Approved cost and allocated cost


to Project Manager
Flag the reimbursable expenditure
head with ceiling or without any
ceiling.
Authenticate the cost sheet information
after above verification.
Documents Records
Document
Title
Cost Sheet

Document
Type
I

Format
Ref
CW/01

Frequency
As and when

Resource
Allocation Sheet

CW/02

As and when

Cost Sheet Vetting


Register
Project
Cost
Monitoring
and
Control Register

CW/03

As and when

CW/04

As and when

Manual on Accounting, Budgeting and reporting of Consultancy projects

Distribution To
Finance and
Accounts
Finance and
Accounts
Department
-

Process: Accounting for project expenses


incurred by Consultancy Wing

Process No: 02

Process brief
This process lays down the procedure to be followed for accounting and recording of
direct expenses incurred on projects. In case any sub contracting is required, the approved
procedures and guidelines prescribed for Works and Procurement for Consultancy
Contracts are to be followed. For release of payments to sub-contractors/ vendors follow
the procedures as detailed in the manuals on Procurement and Stores Accounting and
Contract Accounting. The additional aspects in processing payments are detailed in this
process.
While discharging this function it is to be ensured that:

The Project Code has been correctly indicated on the Payment Requisition Slips
(PRS)
The expenditure is incurred in accordance with the terms of the contract and are
within the limits prescribed in the approved cost sheet
The Project Cost Monitoring and Control Register (PCMCR) is updated with all the
expenses incurred.
In case of Project awarded on Deposit Work basis, commitment for purchases to be
made only after receipt of advance from the client
Expenditure on any consultancy assignment is incurred only if a provision for the
same exists in the approved cost sheets. In other cases necessary approvals should be
obtained prior to incurring the expenditure.

Departments/ sections involved in the process

Finance and Accounts Department CCW / Unit


Project executing Department

Procedure: Accounting for direct project expenses


S.
Activity
Person
No
Responsible
Project expenses payment to sub-contractor/vendors
1
Receive the suppliers bills duly F&A Deptt approved by the Project Execution Establishment
Group.
Section
2
Process the bill for payment as per the F&A Deptt procedure outlined in the Manual on Establishment
Procurement and Stores Accounting
Section
Contract Accounting and Cash &
Manual on Accounting, Budgeting and reporting of Consultancy projects

Frequency

Remarks

As and when
Within 7
days

S.
No

Activity

Person
Responsible

Frequency

Remarks

Bank manual
Check for updation in PCMCR
Expenses incurred out of Imprest provided to Project Manager
3
Prepare an imprest statement of all the
Project
As and when
expenses incurred during the period
Manager
required
providing the following details:
Particulars/purpose of expense
Name of the contractor/ supplier
Bill No and date
Amount
Contract/ purchase order no
Cost/ Budget head for the
expenditure

Forward the statement to the Finance and


Accounts Department along with the
necessary supporting documents
Process the bill for payment/recoupment F&A Deptt as per the procedure outlined in the Establishment
Manual on Procurement and Stores
Section
Accounting and Contract Accounting
and Cash & Bank manual.

Check for updation in PCMCR.


Manpower cost of the employees of Consultancy Wing
5
Allocate the manpower cost of the F&A Deptt employees of Consultancy Wing to Establishment
various projects based on time sheet in
Section
PCMCR.
Claims reimbursable by clients
6
In case of expenses incurred which are F & A Deptt
reimbursable by the clients, enter the
CCW
details in the Expenses Reimbursable by
Clients module in PCMCR.
Prepare a statement of expenses
reimbursable
by
clients
pending
invoicing and forward the details to the
concerned
Project
Managers
for
invoicing - as per the invoicing system.

Manual on Accounting, Budgeting and reporting of Consultancy projects

Within 2
days

Monthly

Same day

Month-end

Documents Records
Document
Title
Bills from suppliers
Claims Reimbursable
by Clients
Imprest statement
Time sheet

Document
Type
I
O

Format Ref

Frequency

Distribution To

CW/05

As and when
-

F&A Deptt, CCW


-

I
I

CW/06
CW/07

As and when
Monthly

Statement of claims
reimbursable
by
clients
pending
invoicing

MIR

CW/MIR/01

Monthly

F&A Deptt, CCW


Project Manager
F&A Deptt CCW
Project Manager

Accounting entries:
Project expenses payment released from CCW
Expenses A/c
Cash/Bank A/c

Dr
Cr

On releasing the imprest to the Project Manager


Imprest Project A/c
Dr
Cash/Bank A/c
Cr
On receiving the imprest statement
Expenses A/c
Dr
Imprest Project A/c
Cr
Claims reimbursable by clients
On incurring the expenditure
Claims reimbursable A/c
Cash/Bank A/c

Dr
Cr

On raising invoice on the client


Sundry debtors A/c
Claims reimbursable A/c

Dr
Cr

On receiving the payment


Cash/Bank A/c
Sundry debtors A/c

Dr
Cr

Manual on Accounting, Budgeting and reporting of Consultancy projects

Process:

Accounting for expenses relating to Process No: 03


manpower drawn from other units of
NTPC and expense incurred by other units
for consultancy assignments.

Process Brief
This process lays down the procedure to be followed to account for the expenses relating
to manpower drawn from other units of NTPC (shared manpower) for consultancy
projects i.e. the employees who are not on the payroll of the Consultancy Wing (CW) and
other expenses incurred by other units for consultancy assignments.
The credits for the time devoted by shared manpower on consultancy should be given
by the CW to the concerned units through inter unit advices.
In respect of other expenses incurred by non-dedicated personnel for consultancy projects
the same is to be debited to the CW by the concerned units through inter unit advices.
While discharging this function it is to be ensured that

The manpower rates are as per the rates approved in the cost sheet
The project code has been indicated on the expense bills/ claim forms

Departments/ sections involved in the process

Finance and Accounts Department CCW / Unit


Project Execution Department

Procedure: Accounting for expenses relating to shared manpower


S.No

Activity

Person
Responsible
Cost of Non-dedicated manpower on consultancy projects
1
Receive the time sheets of the shared F&A Deptt employees duly approved by the
Corporate
concerned Project Managers/ competent
CW
authority
2
Prepare JV for inter unit (credit) advice F&A Deptt based on the time sheets and the
Corporate
manpower rates as approved in the cost
CW
sheets for the project. For preparation
and authorization of JV follow
procedures as per manual on Books
Manual on Accounting, Budgeting and reporting of Consultancy projects

Frequency

Remarks

Monthly

Monthly

S.No

Activity

Person
Responsible

Frequency

Remarks

section.
Check for updation in PCMCR against
the manpower cost.
Expenses of other units of NTPC on consultancy projects
3
Receive the claim for expenses along F&A Deptt
with the necessary supporting documents
Unit
from the employee concerned.
Concerned

As and when

Ensure that the claims / other supporting


documents are duly approved by the
Project Manager/ competent authority.
Prepare the JV to for account for of
expenses.
For
preparation
and
authorization of JV follow procedure as
per manual on Books section.
Release the payment. For releasing
payment follow procedure as per
manual on Cash & Bank .
4

Generate an IUA on Corporate CW for F&A Deptt


the expenses incurred on account of
Unit
consultancy projects For preparation and Concerned
authorization of JV follow procedure as
per manual on Books section.

Receive the IUA from the unit concerned


and account for the expense. For
preparation and authorization of JV
follow procedure as per manual on Books
section.

F&A Deptt Corporate


CW

Update the details of the expenditure in


the Project Cost Monitoring and Control
Register.

Manual on Accounting, Budgeting and reporting of Consultancy projects

Same day

As and when

Same day

10

Documents Records
Document
Title
Time sheet

Document
Type
I

Format
Ref
CW/07

Bills/ Claim forms

Frequency
Monthly
As and when

Distribution To
-

Project Manager
F&A Deptt CCW
Project Manager
F&A Deptt CCW

Accounting entries:
Time spent by shared manpower on consultancy projects
At CCW
Capital/service maintenance jobs
IUA (Unit concerned)

Dr
Cr

At the Unit wherefrom manpower drawn


IUA A/c (Corporate Consultancy Wing)
Capital/service maintenance jobs

Dr
Cr

Expenses of shared manpower on consultancy projects


Project expenses incurred by other Units
At CCW
Expenses A/c
IUA A/c

Dr
Cr

At the Unit incurring the expenditure


IUA A/c (Corporate Consultancy Wing)
Cash/Bank
A/c

Dr
Cr.

Manual on Accounting, Budgeting and reporting of Consultancy projects

11

Process: Invoicing and Accounting of Collection

Process No: 04

Process brief
This process lays down the procedure for raising invoices on the clients and the
accounting of collection thereof. The invoices should be raised as per the terms of the
contract/ agreement with the client.
While discharging the function it should be ensured that:

invoices are raised as per the terms of the contract/ agreement with the client and
advances received from clients, if any, are adjusted and accounted properly
invoices raised are serially controlled (project-wise)
a copy of all the invoices raised are forwarded to the Finance Department along
with the supporting documents immediately
Realisations are done on due date and for delay in realizations penalties are
levied, if applicable, as per contract
Realizations are promptly forwarded/ intimated to the CCW and the same is
promptly deposited in the bank

Departments/ sections involved in the process

Finance and Accounts Department CCW


Project Execution Department

Procedure: Invoicing and Realization


S.No

Activity

Invoicing
1
Raise the invoice on the client as per the
terms of the contract/ agreement with the
client

Person
Responsible

Frequency

Project
Manager

As and
when

Forward a copy of the invoice to HOD


(Finance) CCW and the Project
Monitoring Group (PMG), CCW
Receive a copy of the invoice raised from F&A Deptt
the Project Manager.
CCW
Check the following:
Ensure that there is no missing
number in invoicing
Invoice has been raised as per the

F&A Deptt CCW

Manual on Accounting, Budgeting and reporting of Consultancy projects

Remarks

Same day
As and
when
Same day

12

S.No

Activity

Person
Responsible

Frequency

Remarks

terms of the contract/ agreement


Amount of Service Tax has been
correctly calculated
Supporting documents as required are
enclosed

Generate a JV to account for the invoice F&A Deptt


CCW
raised and update Invoice Register,
Service Tax Register and Claims
Recoverable from Clients modules in
PCMCR.
For
preparation
and
authorization of JV follow procedure as
per manual on Books section.
Receive a Project-wise certificate on the F&A Deptt
Status of Work.
CCW

Same day

Monthly

Reconcile the amount of invoices raised


vis--vis the percentage of work / activity
completed.
In case of any discrepancy, intimate the
Project Manager for necessary action
Realizations
4
Forward the cheque/ draft received from
the clients along with the necessary
details (i.e. the client, invoice no and
date, etc) to CCW

Project
Managers

As and
when

Receive the amount directly from clients F&A Deptt


or through the Project Manager. Check
CCW
that the Realizations are as per the
invoices.
Issue a money receipt to the client for the F&A Deptt
amount received.
CCW

Same day

Generate a BRV to account for the F&A Deptt


amount received and deposit the
CCW
cheque/draft in the bank. Follow
procedure as per manual on Cash & Bank
section for generation of BRV and
deposit of cheques/draft in the bank.
Update the Invoice Register, Service
Tax Register and Claims Recoverable
from Clients modules in PCMCR.

Same day

Manual on Accounting, Budgeting and reporting of Consultancy projects

Same day

13

S.No
6

Activity

Person
Responsible
Verify the amount of Tax Deducted at F&A Deptt
Source and prepare JV to account for the
CCW
TDS deducted. For preparation and
authorization of JV follow procedure as
per manual on Books section.
Calculate the Service Tax payable to the F&A Deptt
authorities concerned during the month.
CCW
Follow the procedure specified in the
Cash and Bank Manual for preparation of
BPV and update the Service Tax
Register for deposit of Service Tax.
Deposit of Service Tax through the F&A Deptt
Challan prescribed for this purpose
CCW

File the returns of the tax deposited as


per the format prescribed
Follow up for TDS certificate with the F&A Deptt
Project Manager/Client.
CCW
Receive TDS certificate, account for the
same in CW books and forward the
original certificates to Corporate
Taxation section.
Generate Statement of Outstanding dues F&A Deptt
project-wise and summary of outstanding
CCW
dues including age analysis for
forwarding to various Project Managers
and for HOCW/Corporate Center
respectively.

Manual on Accounting, Budgeting and reporting of Consultancy projects

Frequency

Remarks

Same day

Monthly

Monthly,
before 25th
Half
Yearly
As and
When

Monthly

14

Documents Records
Document
Title
Invoice

Document
Type
O

Format Ref

Frequency

CW/08

As and when

As and When

CW/09
CW/10
CW/05

As and When

O
MIR

CW/11
CW/MIR/02

MIR
O
R

Invoice Register
Service Tax Register
Claims
Recoverable
from Clients
Money Receipt
Statement
of
Outstanding Dues
Summary
of
Outstanding dues
Status of Work done
Bank Book

Distribution
-

Corporate CW
Project
Monitoring
Group
-

As & when
Monthly

CW/MIR/03

Monthly

CW/12
-

Monthly
Daily

Client
HOCW
Project Manager
Project Monitoring
Group
HOCW
Corporate Centre
-

Accounting entries:
On raising of invoices
Sundry Debtors
Consultancy, Management and Supervision fees/
Income from Overseas Consultancy/ Project Foreign Currency

Dr

Amount recoverable from client for service tax


Service tax payable

Dr
Cr

Cr

On realisations
Bank A/c
Income tax deducted at source (If applicable)
Sundry Debtors

Dr
Dr
Cr

Bank A/c
Amount recoverable from client for service tax

Dr
Cr

For payment of service tax


Service tax payable A/c
Bank A/c

Manual on Accounting, Budgeting and reporting of Consultancy projects

Dr
Cr

15

Process: Cost Monitoring and control

Process No: 05

Process brief
This process lays down the procedure to be followed for cost monitoring and controls.
The prime responsibility of cost monitoring and controls vests with the Project Managers.
The Finance and Accounts Department, CW assists the Project Manager in monitoring
the cost by generating reports on the financial performance of each consultancy
assignment. The report provides the element wise expenditure incurred and the variance
in comparison to the approved cost.
Departments/ sections involved in the process

Finance and Accounts Department CCW


Project Execution Department

Procedure: Cost Monitoring and control


S.
No
1

Activity

Person
Responsible
F&A Deptt CCW

Check for the following in the Project


Cost Monitoring and Control Register for
the following:
All expense JVs are updated for
direct and inter unit expenses.
Booking of manpower cost of the
employees of Consultancy Wing is
based on time sheet as per the
procedure defined in Procedure 02
above.
Booking of manpower cost of the
employees of other units for shared
manpower consumption is as per the
procedure defined in Process 03
above.
Allocation of overhead expenses of
CCW is based on the percentage on
cost to NTPC as approved in Cost
Sheet.
Generate PCMC Report of the project - F&A Deptt
providing the element wise expenditure
CCW

Manual on Accounting, Budgeting and reporting of Consultancy projects

Frequency

Remarks

As and
when

Monthly

16

S.
No
3

Activity

Person
Responsible

Frequency

incurred against the approved phased


cost estimates and the variances thereon.
Forward PCMC Report and Statement F&A Deptt
of Outstanding as per the procedure
CCW
defined in Process no.04 above to the
concerned Project Mangers and the
HOCW for their review and necessary
action.

Remarks

Monthly

Documents Records
Document
Title
Project
Cost
Monitoring
and
Control Register
Cost
Monitoring
Report

Document
Type
R

Format Ref

Frequency

Distribution

CW/04

As and when

MIR

CW/MIR/04

Monthly

- Head Consultancy Wing

Manual on Accounting, Budgeting and reporting of Consultancy projects

17

Process: Period-end Accounting

Process No: 06

Process Brief
This process deals with the period-end accounting for the consultancy projects in
progress. The procedure for closing of accounts at the month/ quarter-end shall be the
same as provided in the manual on Books Section.
While discharging the function, it should be ensured that:

revenue and provision for expenses on account of projects in progress are calculated
and accounted for as per the guidelines for closing of accounts
overhead expenses are allocated to the projects as per the instructions issued in this
respect from time to time with the approval of Head of Consultancy Wing
foreign Exchange transactions are translated as per the guidelines
Departments / sections involved in the process

Finance and Accounts Department CCW


Project Execution Department

Procedure: Period-end accounting


S.No
1

3
4

Activity

Person
Responsible
Prepare and forward the accounts closing F&A Deptt
circular to all the Project Managers for CW, CC
submission of the following information
along with the due dates for submission:
Status of work done in respect of
each consultancy project
Mandays utilization for the period
Certificate of completion for projects
completed during the period.
Compile the information as required
Project
based on the actual progress of the
Managers
project, terms and conditions of the
project, estimates received from other
departments, bills in hand from suppliers
and forward the same to CCW
Obtain project status either on actual F&A Depttcompletion basis or on percentage
CCW
completion basis
Review the details received from the F&A DepttProject Managers with the terms of the
CCW

Manual on Accounting, Budgeting and reporting of Consultancy projects

Frequency

Remarks

Period-end

Period-end

Period-end
Period-end

18

S.No

Activity

Person
Responsible

Frequency

F&A DepttCCW

Period-end

F&A DepttCCW

Period-end

contract, progress of the project and after


discussions with the concerned officials,
finalize and account for the same
In respect of the foreign currency
transactions, update the currency master
for various foreign currency rates as per
the prescribed guidelines.
Prepare the trial balance, general ledger
and final accounts as per procedure
provided in the manual on Book Section.

Remarks

Document Records
Document
Title
Accounts
Closing
Circular
Status of work done
Mandays utilisation
Certificate for projects
completed during the
period

Document
Type
I

Format Ref

Frequency

Period-end

R
R
R

CW/12
CW/MIR/05
CW/13

Period-end
Period-end
Period-end

Distribution To
-

F&A Deptt CCW


Project Managers
F&A Deptt CCW
F&A Deptt CCW
F&A Deptt CCW

Accounting entries to be passed


Based on the project completion status at the year end
Accrued income account
Advance from client
Income from Consultancy service

Manual on Accounting, Budgeting and reporting of Consultancy projects

Dr
Dr
Cr

19

Process: Budgeting And Control

Process No: 07

This section lays down the budgeting process to be followed in respect of consultancy
projects.
Budget activity
The Budgeting activity shall commence in the month of February (on receiving the
budget circular from the Commercial Finance Section, CC for preparation of O&M
budget of the company) and the approved budget should be submitted to the Commercial
Finance Group, CC by 15th of March for consolidation.
Budget Estimates
The budget estimates should be prepared in respect of the on-going projects as well as the
projects anticipated to be obtained/ finalised during the budget period. The following
budgets should be prepared:

Income and Expenditure Budget for the projects


Overheads budget of CCW
Manpower Budget
Capital Budget

Responsibility for budget preparation


The F&A Department, CCW shall co-ordinate the budgeting process. The responsibility
for preparation of the budgets is as under:

Income and Expenditure Budget for the projects - consolidated by the F&A Deptt,
CCW based on the estimates provided by the Project Managers

Overheads budget of CCW F&A Deptt, CCW based on estimates received from the
various departmental heads

Manpower Budget HR Deptt, CCW

Capital Budget consolidation by F&A Deptt, CCW based on estimates received


from the various departmental heads

Basis for Budget estimates


The basis for preparing the budget estimates is provided below:

Manual on Accounting, Budgeting and reporting of Consultancy projects

20

Budget
Basis
Income and expenditure budget On-going projects
projects
Actual progress of the project
Terms of the contract
Approved cost sheet for the project

Overheads budget of CCW

New projects
Tender submitted
MOU target for order booking
Similar projects executed/ under execution for
cost purposes
The overhead budget of CCW should be based on
the projects to be executed during the budget
period. The basis for the main items of
expenditure are provided below:
Manpower cost
approved manpower budget
salary structure for each grade of employee
incentives component

Manpower Budget

Capital Budget

Repairs and Maintenance of Office equipment/


building estimates provided by the HR Deptt
Communication expenses - estimates provided
by the HR Deptt
Travel expenses estimates of travel provided
by all the departmental heads and the Project
Managers
Publicity expenses based on the past trends
and estimates provided by the Marketing Deptt
Tender expenses based on the past trends
and the tenders expected during the period
Depreciation on the basis of the capital
budget
Other items of expenditure based on the
projects to be executed
Actual manpower in position
Retirements scheduled during the year
Transfers in/out as estimated
Projects likely to be awarded
Estimates provided by the departmental heads
and the rates prevailing in the market in
respect of these items

Manual on Accounting, Budgeting and reporting of Consultancy projects

21

Process: Approval of Budget

Process No: 08

The budget estimates shall be approved by the Head of CW


Reporting of performance against budget estimates
A report on the actual income and expenditure as against the budget estimates and that
anticipated for the balance period shall be prepared by the respective Project Managers
and submitted to the Head of CW (HOCW) on a quarterly basis.
Budgeting Process
The budgeting process is described below. A flow chart on the process is provided in
Appendix I.
S.
No
1

3
4
5

6
7

Activity
Issue a circular to all the Project
Managers
and
HODs
for
compilation
of
the
budget
estimates
Budget Estimates
Prepare budget estimates in
respect of
On-going projects
New projects
Prepare details and budgetary
outlays in respect of manpower
and other administration expenses
Prepare budget estimates in
respect of capital items, travel and
other administration expenses
Forward the budget estimates to
F&A
Deptt,
CCW
for
consolidation of the same
Compile the budget estimates in
respect of the finance charges and
overhead expenses of CW
Receive the budget estimates from

Person
Responsible
F&A Deptt
CCW

Frequency
By 1st week of
February

Project
Managers

By 3rd week
of February

HR Deptt,
CW

By 3rd week
of February

HODs, CW

By 3rd week
of February

Project
Managers/
HR Deptt/
HODs
F&A Deptt,
CW

By 3rd week
of February

F&A Deptt,

By end of

Remarks

By 3rd week
of February

Manual on Accounting, Budgeting and reporting of Consultancy projects

22

S.
No

Activity
the Project Managers, HR Deptt
and HODs and consolidate the
same.

10

11

Forward the budget estimates to


the HOCW for review and
approvals
Review the budget estimates and
after
discussions
with
the
concerned officials finalize the
same.
Forward the approved budget to
the Commercial Finance Group,
CC for consolidation of the budget
for NTPC
Reporting against budget estimates
Generate a report on the actual
income and expenditure as against
the budget estimates and that
anticipated for the balance period
and forward the same to the
Finance and Accounts Deptt.
Consolidate the actual expenditure
vis--vis budget estimates and
forward the same to the Head of
CW (HOCW) for review.
Forward the duly approved report
to the Commercial Finance
Section, CC

Person
Responsible
CW

Frequency

HOCW

By the 10th of
March

Project
Manager

Monthly

Finance &
Accounts
Deptt, CW

Monthly

Finance &
Accounts
Deptt, CW

Monthly

Remarks

February

Budget Formats
The following budget formats should be used for compiling the budget/ reporting against
budget estimates:
Income Budget
Expenditure Budget
Overhead expenses of Consultancy
Manpower Budget
Report on Income Budget vs Actuals
Report on Expenditure Budget vs Actuals
Report on Overheads Budget vs Actuals

CW/BUD/01
CW/BUD/02
CW/BUD/03
CW/BUD/04
CW/MIR/06
CW/MIR/07
CW/MIR/08

Manual on Accounting, Budgeting and reporting of Consultancy projects

23

Appendix I
BUDGET PROCESS - CORPORATE CONSULTANCY WING
(CCW)

F&A Deptt - CCW


Issue a circular to all the Project
Managers and HODs for compilation
of the budget estimates
( By the 1st week of February)

Project Managers
Prepare budget estimates in respect of
ongoing projects
(by 3rd Week of February)

P&A Deptt/Other HODs


Provide details and budgetary outlays
in respect of manpower, MBOA and
other administration expenses
(by 3rd Week of February)
Marketing Department
Prepare budget for new projects
(by 3rd week of February)

F&A Deptt
Compile the budget outlays (in
respect of overheads of CW)
Consolidate the project budget
outlays and forward to the HOCW
for review and approval
(by the end of February)

HO CW
Review and approve the budget
estimates
(by 10th of March)

F&A Deptt CCW


Forward the approved budget to the
Budget Group, CC along with all the
relevant formats
(by 15th of March)

CW/01
COST SHEET FOR -----(ASSIGNMENT DESCRIPTION) OF --------(CLIENTS NAME)
REF No:
DATE :
S. No
1

COST HEAD

REMARKS

Manpower cost

Phasing: Year 1
Year 2
Year 3
Deliverables

Tours and travels

PC hiring

5
6
7
8
9
10
11
TOTAL

COST
(Rs)

----- nos
----- nos
----- nos

Approved
Rate
Rs.-----Rs.-----Rs.------

Vehicle hiring
Sub-contracting cost, if any
Financing charges, if any
Entertainment and Hospitality
Contingencies
Any other item as per requirement
CW overhead (@ ----% on cost)

a) Year-wise phasing of manpower deployment has to be worked out


based on length of the assignment
b) Approved manpower rate along with escalation is to be taken for
working out manpower cost.
Cost towards report preparation, such as drawing, photocopying,
binding, etc
Either on lump sum basis included in the cost sheet or on actual
reimbursement basis as and when incurred, depending upon offer terms.
If any, additionally hiring is required. Otherwise, manpower cost
includes PC cost as part of overhead.

As per approval from time to time


Prepared by-----

Approved by-----Note: a) Approval of cost sheet is per the Delegation of Power


b) In case of turnkey assignments and comprehensive O&M assignments, cost heads will vary as per the requirement.

Manual on Accounting, Budgeting and reporting of Consultancy projects

25

CW/02
RESOURCE ALLOCATION SHEET
REF No:
DATE :
COST SHEET Ref No :
PROJECT :
PROJECT CODE :
S. No

Cost Head

Manpower

2
3
4
5
6
7
8
9
10

Deliverables
Tours and travels
PC hiring
Vehicle hiring
Sub-contracting cost, if any
Financing charges, if any
Entertainment and Hospitality
Contingencies
Any other item as per
requirement
CW overhead (@ ----% on cost)
TOTAL

11

COST
ALLOCATED
( Rs)

Prepared By ---------------------------------

Manual on Accounting, Budgeting and reporting of Consultancy projects

REMARKS
No. of manday/manmonth is only to be allotted,
alongwith phasing

Approved By ---------------------------------

26

CW/03
COST SHEET VETTING REGISTER
S.
No

Date of
receipt

Name of Client

Description of the
assignment

Manual on Accounting, Budgeting and reporting of Consultancy projects

Cost Sheet
Ref No

Cost Vetted
(Rs)

Date of
approv
al

Sent to

Remark
s

27

CW/04
PROJECT COST MONITORING AND CONTROL REGISTER
Project Code:
Project Name:
S.
Date
No

(1)

(2)

Cost Head

As per
Cost Sheet
(Rs.)

(3)

(4)

As per
Resource
Allocation
Sheet
(Rs.)
(5)

Cumulative
Phasing of
cost
allocation
(Rs.)
(6)

Cumulative
Expenditure
(Rs)

Variance, if
any (6-7)
(Rs)

Remarks

(7)

(8)

(9)

Project Code:
Project Name:
Project Code:
Project Name:

Note:
a)
The balance available represents the amount allocated less the cumulative expenditure based on yearly budget phasing.
b)
The reimbursable expenditure such as tour cost are to be flagged separately and entered in Claims Reimbursable from
Clients Module for proper monitoring.

Manual on Accounting, Budgeting and reporting of Consultancy projects

28

CW/05
CLAIMS REIMBURSABLE BY CLIENTS
Project :
Project code:
Client:
Claims Reimbursable
Date
Particulars

Doc.
Ref.

Amount
(Rs)

Manday
cost, if
any

Remar
ks

Claims Recovery
Invoic Invoic Amoun
e No. e Date t (Rs.)

BR
V
No.

BR Amount Remarks
Received
V
(Rs.)
Date

Note:
a)
This is part of Project Cost Monitoring and Control Register module, in the event of integrated system.

Manual on Accounting, Budgeting and reporting of Consultancy projects

29

CW/06
IMPREST STATEMENT
Cliam ref.Sl No
Project Code
Project Description
Expenses during the period:
Sl. No.
Date
Purpose

Period covered by the


statement
From
To
Bill
No./Receipt
No. and Date

Amount (Rs.)

Remarks

Cumulative imprest amount drawn during the financial year.


Expenditure submitte upto previous claim.
Balance imprest upto previous claim
Present claim
Balance amount available..
Expenditure disallowed upto previous claim..
Autahorised Signatory

Manual on Accounting, Budgeting and reporting of Consultancy projects

30

CW/07
TIME SHEET
Name of the employee
S.
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14

Activity
Preparation of FR
Drawing review

Designation
Project
Code
9121
9219

Employee Departmen
Month
Year
No.
t
Hours worked on different dates of the month

Total time

Development
Training
Miscellaneous
Leave
Holiday
TOTAL

Date

Employees Signature

HOD Signature

Note:
a)
Time sheet is to be filled on daily basis and submitted to HOD on fortnightly basis.
b)
Individual time sheets are to be consolidated by the Project Manager for working out the time consumed for a project.

Manual on Accounting, Budgeting and reporting of Consultancy projects

31

CW/08
INVOICE

Name of the Client:

Invoice No.

Invoice Date

Name of the assignment:

Order No.

Order Date

Particulars of Claim:
payment
Particulars

Amount Payable in words


Pending Invoices Details:
Invoice No.
Invoice Date

Due date of
Lump Sum Fee
(Rs)

Reimbursables
(Rs)

Amount (Rs.)

Remarks

Payment Mode

Total
(Rs)

Remarks

Last Receipt Details:


Receipt No.
Receipt Date
DD No./Pay Order
No.
Receipt Amount
(Rs)
Authorized Signatory

Note: Serial control over invoices to be maintained each project wise

Manual on Accounting, Budgeting and reporting of Consultancy projects

32

CW/09
INVOICE REGISTER
Report As On:_____________
Billing details
S.
Proj.
No Code
Invoice
No

Date

Realisation details
Cur
renc
y

Consultan
cy Fee

Service
Tax

Total

Date

TDS
Deducted

TDS
Certificate
Received

Consultan
cy Fee

Servic
e Tax

Total

Note:
a) Foreign currency contracts, service tax not applicable.

Manual on Accounting, Budgeting and reporting of Consultancy projects

33

CW/10
SERVICE TAX REGISTER
Report As On:_____________
S.
Proj.
Billing details
No Code
Invoice
No

Date

Service Tax Realization and Deposit details


Consultancy
Fee
(Rs)

Service Tax
(Rs)

Manual on Accounting, Budgeting and reporting of Consultancy projects

Service
Tax
Realized
(Rs.)

Date of
Realizatio
n

Amount
Deposited
(Rs.)

Date of
deposit

Balance
to be
deposite
d

35

CW/11
Receipt No.

MONEY RECEIPT
Date

Name of the client from whom payment has been received


Details of payment received:
Invoice No.

Amount

DD/Pay Order No.


Amount in Figures:
Currency_____
Amount in words

Balance, if any

DD/Pay Order Date


BRV details

Remarks

Authorized Signatory ----------------------------

Manual on Accounting, Budgeting and reporting of Consultancy projects

36

CW/12
STATUS OF WORK DONE
As on -------------------Project Code:
Project Name:
Client Name:
Period:
Sl.
No.

List of Activities

Sch.
Completion
Date

Actual
Completion Date

%age actual
Completion as on
date of this report

Remarks

Overall percentage of completion as on date:


Authorised Signatory ------------------------------

Manual on Accounting, Budgeting and reporting of Consultancy projects

37

CW/13
CERTIFICATE FOR 100% COMPLETED JOBS
Project Code
Client Name
Project Name
Scope
Certified that the above Consultancy Job has been completed upto 100% during the period ______________________ to
______________________ and the date of completion is _____________________________________.

Date: ------------------------------------------

Manual on Accounting, Budgeting and reporting of Consultancy projects

Authorised Signatory -----------

39

CW/BUD/01
INCOME BUDGET
Project Code

Project Name

Project
Value

Actuals for PY

Cumulative
upto PY

Budget
Estimate for
CY

Revised
Estimate for
CY

Budget
Estimate for
next year

Ongoing jobs

Expected jobs in Current Year

Target next year

Grand Total

Manual on Accounting, Budgeting and reporting of Consultancy projects

41

CW/BUD/02
EXPENDITURE BUDGET
Project Code

Project Name Project


Cost

Actuals for PY

Cumulative
upto PY

Budget
Estimate for
CY

Revised
Estimate for
CY

Budget
Estimate for
next year

Ongoing jobs

Expected jobs in Current Year

Target next year

Grand Total

Manual on Accounting, Budgeting and reporting of Consultancy projects

43

CW/BUD/03
Sl.
No.

Nature of Expenses

OVERHEAD EXPENSES OF CONSULTANCY WING


Actuals
Budget
Revised
Budget
for PY
Estimate for Estimate
Estimate
CY
for CY
for next
year

Basis

Grand Total

Manual on Accounting, Budgeting and reporting of Consultancy projects

45

CW/BUD/04
MANPOWER BUDGET FOR CORE GROUPS
Level /
Grade

No. of manpower in different departments


Total
Budget
Actual in Revised
Budget
Original
Actuals in Revised
Budget
Estimate
for Position
Estimate for Estimate for B.E.
for Position
Estimate for Estimate for
CY
CY
next year
CY
CY
next year

Total
Note:
a)
Manpower for Project activities shall depend on expected order booking and turnover target. Projection shall
be given based on targeted jobs

Manual on Accounting, Budgeting and reporting of Consultancy projects

47

.CW/BUD/05
Sl.
No.

Nature of Expenses

MISCELLANEOUS BOUGHT OUT ASSETS (MBOA)


Actuals for
Budget
Revised
Budget
PY
Estimate for Estimate
Estimate
CY
for CY
for next
year

Remarks

Grand Total

Manual on Accounting, Budgeting and reporting of Consultancy projects

48

CW/MIR/01
STATEMENT OF CLAIMS REIMBURSABLE BY CLIENTS PENDING INVOICING
For the period ended -------------

Project:
Project code:
Project Manager:
Date

Particulars

Doc. Ref

Amount (Rs)

Manday, if
any

Remarks

Total
Authorized Signatory

Manual on Accounting, Budgeting and reporting of Consultancy projects

49

CW/MIR/02
STATEMENT OF OUTSTANDING DUES
Project Code:
Project Name:
Sl. Invoice
Invoice Amount
Date of
Balance
Age Analysis of
Remarks
No. Date Currency Amount Realized Realization Due, if
outstanding
any
<3
3
>1
months months Year
1
Year

Project Code:
Project Name:

Project Code:
Project Name:

Manual on Accounting, Budgeting and reporting of Consultancy projects

50

CW/MIR/03
SUMMARY OF OUTSTANDING DUES
Sl.
No
.

Projec
t
Code

Client
Name/Project
Name

Currenc
y

Amount
Outstandi
ng

Date of
Invoice

Manual on Accounting, Budgeting and reporting of Consultancy projects

Age Analysis of outstanding


<3
3 months > 1 Year
months
1 Year

Remarks

51

CW/MIR/04
Statement of actual cost as against approved cost sheet
For the quarter ended -------------Project :
Project code:
Cost Head

Cost as per
approved cost sheet

Actual Cost

Manual on Accounting, Budgeting and reporting of Consultancy projects

Variance

Remarks

53

CW/MIR/05
PROGRESS REPORT - MANDAYS UTILISATION
As on ------------------Project Code:
Project Name:
Period:
Sl.
No.

Date:

Activity

Scheduled
Completion
Date

Estimated
Man days Man days used
as
per
Resource
Allocation
Reporting Cumulative
Period

%
Completion
of activity

Remarks

Authorised Signatory --------------------------------Note:


a)

Project Manager has to consolidate the time spent by various executives working in different departments for
the same assignment.

Manual on Accounting, Budgeting and reporting of Consultancy projects

54

CW/MIR/06
REPORT ON ACTUALS VS INCOME BUDGET
Project
Code

Project
Name

Project
Value

RE for
CY

Actuals
Till end of
last
Quarter
5

for the
Quarter
6

Total
7 (5+6)

Anticipat
ed for the
balance
period

Total

Variance

Remarks

9 (7+8)

10 (4-9)

11

Grand Total

Manual on Accounting, Budgeting and reporting of Consultancy projects

55

CW/MIR/07
REPORT ON ACTUALS VS EXPENDITURE BUDGET
Project
Code

Project
Name

Project
Value

RE for
CY

Actuals
Till end of
last
Quarter
5

for the
Quarter
6

Total
7 (5+6)

Anticipat
ed for the
balance
period

Total

Variance

Remarks

9 (7+8)

10 (4-9)

11

Grand Total

Manual on Accounting, Budgeting and reporting of Consultancy projects

57

CW/MIR/08
REPORT ON ACTUALS VS OVERHEAD EXPENSES OF CONSULTANCY WING
Nature of
expenses

RE for
CY

Actuals
till end of
last
Quarter
3

for the
Quarte
r
4

Total
5 (3+4)

Anticipat
ed for the
balance
period

Total

Varianc
e

Remarks

7 (5+6)

8 (2-7)

Grand Total

Manual on Accounting, Budgeting and reporting of Consultancy projects

58