THIRUVANANTHAPURAM: Public sector enterprises seeking government approval for pay revision must provide audited account statements for the past three years, according to a recent circular of the finance department. Despite a considerable number of organisations receiving approval before the circular’s issuance, the new requirements demand detailed profit and loss statements, balance sheets certified by independent auditors, and a breakdown of the additional financial liability on a month-wise and year-wise basis. Another requirement is the condition and formula with which the new pay scale and allowances were formulated.
In an effort to promote accountability, the finance department has imposed these conditions, alongside those from the Bureau of Public Enterprises, to ensure that PSUs submit annual accounts punctually. This initiative stemmed from the Comptroller and Auditor General’s criticism of the government’s lenient stance towards PSUs that fail to submit accounts to various authorities. Additionally, all PSUs are obligated to submit their annual accounts to the Legislative Assembly, CAG, and the Registrar of Companies, as per regulations.
The latest circular not only affects PSUs but also applies to grant-in-aid organisations, development authorities, boards, corporations, autonomous institutions, councils, and commissions. Besides the required audited balance sheets, proposals must include copies of existing salary revisions, approved staff strength orders, and recommendations for revision from the institution head, administrative department, finance department, and the Bureau of Public Enterprises.
Organisations also are expected to provide explanations regarding the implementation of G-SPARK, government’s web-based service and payroll management software. They must also furnish proof of prompt payment of EPF contributions as well as the number of vacant posts over the past year, copies of orders creating new posts, etc.