Finance Department
The Accounts Department has evolved with the necessity to maintain accounts of transactions at port, preparation of annual budget estimates and coordinating with audit. Before enforcement of the MPT Act, 1963 the accounts department was headed by the Chief Accountant and later the Major Port Trust Act, 1963, assigns clear role for finance functions under Sec 87 to Sec 91, Sec 98 to Sec 101 and Sec 107. On enforcement of the Major Port Trust Act, 1963 the finance department is being headed by the Financial Adviser and Chief Accounts Officer. Now the Major Port Trust Act, 1963 has amended as the major Port Authorities Act, 2021.
The F.A. & C.A.O as a Financial Adviser to the Visakhapatnam Port Authority Board and acts as a Chief Accounts Officer to the Visakhapatnam Port Authority. The Finance department also undertakes an internal audit of financial transactions through third party audit to ensure the propriety transparency and accountability of revenues and expenses. In VPA, the evolution of the port as a land lord port has expanded the role of finance department in monitoring the implementation of the projects, collecting royalties and other revenues from the concessioners in time and involving in arbitration proceedings from the VPA perspective especially on financial issues. Every proposal that has financial implication needs financial concurrence and it is a part of prudent financial management envisaged in the General Financial Rules framed by the Government. In addition there is a specific Delegation of Financial Power’s for the Ports issued by the Ministry of Shipping vide letter 11.02.2015
The Finance Department is headed by the Financial Adviser & Chief Accounts Officer.
The hierarchical representation of the Finance Department is as follows:
The main functions of the F.A. & C.A.O are
- Administrating and managing the finance department.
- Advisory function on all financial matters to the Chairman and Board.
- Accounting and auditing of all port financial transactions including port revenues.
- To raise loans on behalf of the Board as and when necessary.
- To build up reserves and funds and administer thereof.
- To ensure the cash balances of the Board are invested as per the laid down-regulation.
- To prepare periodical statements for the information of the Board.
- Finalization of annual accounts duly coordinating with Government Audit.
- Financial vetting on estimates, proposals, tenders and board notes, etc.
- Arranging payment to contractors, suppliers, employees, and pensioners.
- Complying various statutory obligations viz., Income Tax (incl. TDS & TCS), G.S.T, Property Tax, Professional Tax, etc.,
- Implementation of Ministry Orders/circulars pertaining to employees/officers/trade and contractors etc.
- Submitting the necessary information to the Ministry.
- Maintaining the Pension Fund, Gratuity Fund, and Provident Fund through their respective trust accounts.
With the application of the Income Tax to the Port sector and the GST, various compliance aspects are being monitored by the finance department. The finance department plays a vital role in the overall growth of VPA, especially focusing on prudent financial management and assisting the Board in formulating policies that are sustainable from a finance perspective.
The various sections being operated under the control of the F.A & C.A.O are
updated on 13-01-2023