DECENTRALIZATION OR DESTABILIZATION?

PRESENTATION ON INTRODUCTION OF ACCRUAL ACCOUNTS IN DOP

&

RE-ORGANIZATION OF POSTAL ACCOUNTS

            PA Wing has arranged a presentation on Introduction of Accrual based accountancy and re-organization of Postal Accounts to the Staff Side in the Committee hall, Dak Bhawan, New Delhi on 01-02-2011. Sri. Manish Sinha, DDG(PAF) has given the out-line of the concept and DDG(Finance) made the presentation on the topic.

            Director(PA-Admn), Director(IA),Director(Book) and Director(FA) participated in the presentation. From the Staff Side AIPAEA has represented by Com.S. Santosh Kumar, President (CHQ), Com. T.Satyanarayana, General Secretary, and Com. D.S. Chauhan, A.G.S(CHQ)&C.S Delhi. Sri. S.K. Mishra and others represented the Gr.A Association, Sri.Murali represented the Accounts Officers Association, Shri. V. Pathak and others represented the BPEF.

            It is informed that ongoing technological changes in the DOP will also reflect in the Postal Accounts as all the B.O/S.O/H.Os in the country are going to be computerized and net connected by the year 2012. All the transactions will become online. In this backdrop the financial and accounting aspects will also undergo a sweeping change.

            The DoP is going for introduction of Accrual accounting system to meet the future requirements from the Regulatory Authorities in Insurance and Finance Sectors. Suitable software will be developed by the service provider for each system and a Core System Integrator will integrate all the operations in the Department.

            The present Cash based Accounting system will continue and the accounts will be submitted to the Finance Ministry as usual in the existing form in addition to the preparation of Accounts in the Accrual method for the specific use of the Department. Both streams will be delivered on line. The merits and demerits of the Accrual accountancy are presented. Intensive training to the PAO staff will be provided by Institute of Chartered Accountants.

            There after a presentation on the Re-organization of Postal Accounts is given. The Official Side is of the opinion that with the introduction of technology, online transactions and Accrual method, there is a need for identifying the Accounting Unit. The Committee has recommended that the Division is the Accounting unit instead of H.O. It may require the placement of some PAO personal at the Divisional level. The Official Side expressed that so far a concrete decision has not been taken with regard to the structure of the Accounting Unit. It is also intimated that they are not sure about the Accounting Unit i.e. Division or Region or H.O. Hence, they cannot predict the manpower deployment/requirement at present.

            It is assured that the presentation material will be supplied and the Associations are welcomed to submit their suggestions, objections etc. As put by the DDG (PAF), this presentation is only to serve the purpose of familiarizing the Staff Side with the concept of Accrual Accounting. Nothing more!

Can we allow disintegration of Postal Accounts in the name of Technology?

            We are open to the changes in the technology. This is the declared understanding of the AIPAEA. But can we allow destabilization of the Postal Accounts, its independent status and functional autonomy in the name of the technology? No, we cannot. With the sweeping changes in the IT the trend world over is the centralization and centralized activity. Hence, now re-organizing in the name of technology has little meaning. As per the presentation, now there will be no physical voucher …. Voucher will travel in the electronic form. So the voucher which can travel up to the Accounting Unit i.e. Division can also travel up to Circle PAO. Hence, there will be no additional benefit in Divisionalization.

            Hence, AIPAEA categorically made it clear that DECENTRALIZATION OF POSTAL ACCOUNTS IN ANY FORM IS NOT ACCEPTABLE. The Authorities themselves at this stage are not sure of the proposed structure and many questions have gone unanswered. We are not prepared to meet the same fate of the SBICO employees which they met years ago in the name of decentralization. AIPAEA has called for its Central Working Committee Meeting at Thekkady and this issue will be thoroughly discussed and appropriate response will be given to the Department.

            We have faced many such situations in the past and emerged victorious. This time too we will stand up unitedly and oppose any move to weaken the Postal Accounts organization.

AIPAEA ZINDABAD !! INQUILAB ZINDABAD !! NFPE ZINDABAD !!

            The above article is published in the web site of the AIPAE Association. It requires deep study over the structural changes being proposed by the department in the name of complete modernization.