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pdf Accounting.doc (US only).lnk PWDCOU~1 part 2- Un-paid wages. part 3- progress of work. CPWA-23 CPWA-24 CPWA-25 CPWA-26 CPWA-27 CPWA-27-A CPWA-27-B CPWA-28 CPWA-29 CPWA-31 CPWA-33 CPWA-34 CPWA-35 CPWA-40 CPWA-41 CPWA-43 CPWA-44 CPWA-45 CPWA-50 CPWA-51 CPWA-53 CPWA-54 CPWA-60 CPWA-61 CPWA-62 CPWA-63 CPWA-64 CPWA-65 CPWA-67 Measurement Book. First and Final Bill. Running Account Bill A. Running Account Bill B. Running Account Bill C. Running Account Bill ( Lum Sum-contracts) Final Bill ( Lum Sum-contracts) Hand Reciept. Pay Bill of work charged establishment. Indenture for secured advances. Works Abstract A for Major works. Works Abstract B for Minor works. Detailed statement /Account of matrials. Works Abstract A for Major works. Works Abstract B for Minor works. Contractors, Ledger. Completion Report, Orignal works. Completion Report, Repair works. Consolidted Treasury/ Bank Reciept. Schedule of monthly settlement with Bank or Teasury. Transfer Entry order. Transfer Entry Book. Register of D.A.O.,Audit objections. Schedule Docket. Schedule Docket for percentage Recovries. Schedule of works Expenditure (office copy). Schedule of works Expenditure (fair copy). Schedule of deposit works Register Deposit.

CPWA-67 CPWA-70 CPWA-72 CPWA-73 CPWA-74 CPWA-75 CPWA-77 CPWA-78 CPWA-79 CPWA-80 CPWA-81 CPWA-82 CPWA-83 CPWA-85 CPWA-86 CPWA-91 CPWA-92 CPWA-98

Register Misc. P.W. Advances. schedules of Misc. p.w.advances. Schedule of Debits to Stock. Stock Account. Classified Abstract of Expenditure. Schedule of Rents of Buildings& Lands Schedule of debits/ credits to adjusting (Account between p.w.offices.) Schedule of Deposits. -doMonthly Account. Abstract Book. Extract from contrartors, ledger. List of Accounts submitted to Dir.Accounts. Register of Interest-Bearing securities. Accounts of Interest-Bearing securities. Annual Certificates of balances. Register of Measurements Books. Confidential Report on the work and conduct of D.A.O.

CHEPTER -1 DEFINATIONS. 1) Accountant General means the head of an office of Accounts and Audit subordinate to the Auditor General of Pakistan (Now head of Accounts )who keeps the accounts of Government and, when used in relation to C.D.A. the head of the office to whom the accounts of the division are rendered. 2). Assets. In the accounts of works this term indicates all outstanding or anticipated credits, which have ,to be taken in reduction of final charges. Examples: Recoveries of advances or recoverable payments, and sale proceeds or transfer value of surplus materials. 3). Liabilities. --- When used in respect of accounts of works, this term includes all anticipated charges which are adjustable as final charges, but have not been paid, regardless of whether or not they have fallen due for payment, or, having fallen due, have or have not been placed to the credit of the persons concerned in a suspense head subordinate to the accounts of the work connected. 4). Book Transfer.--This term is applied to the process whereby financial transactions which do not involve the giving or receiving of Cash, or of stock materials, are brought to account. Such transactions may either affect the books of a single accounting office, or they may involve operation on the books of more than one accounting officer whose accounts are ultimately incorporated in the accounts of Government. They usually represent liabilities and assets of Government brought to account either by way of settlement or otherwise, but they may also represent corrections and amendments made in Cash, Stock, or Book Transfer transactions previously taken to account. 5). Commercial Department These are maintained for the purposes of rendering services or

providing supplies, of certain special kinds, on payment for the services rendered or for the articles supplies . This department maintained their accounts on commercial principles. 6). Voted. Revenue is realized and placed to credit of Government as it falls due under the statutory or other rules governing it, but expenditure can be incurred only against a grant voted by the Legislature 7). Non voted. against the sum allotted by Government to meet non voted expenditure. The incidence of expenditure between voted and non-voted is determined by the relevant provision of the Government of India Act, 1935, as adopted in Pakistan. 8). Charge . The expenditure charges classified as working expenses, which are taken in reduction of revenue receipts. It also includes expenditure on stores, leave salary, etc., incurred in England by the Higher Commissioner for Pakistan in the U.K and eventually adjusted against the grant of the Department. 9). Administrative Approval :- This term denotes the formal acceptance by the administrative department concerned, of the proposal for incurring any expenditure in the Public Works Department on a work initiated by or connected with the requirements of such administrative department. It is, in effect, an order to the Public Works Department to execute certain specified works at a stated sum to meet the administrative needs of the department requiring the work. 10). Technical Sanction :- Technical Sanction is the order of the competent authority sanctioning a properly detailed estimate of cost of a work of construction or repair proposed to be carried out in Public Works Department. Ordinarily, such sanction can only be accorded by Government. Ministry of Health and Works or by such authorities of the Ministry of whom the power has been delegated by Government. Sanction accorded to a work by any other department of Government is regarded merely as an administrative approval of the work. [Para 4(62) C.P.W.A.C: Rule 1.3 (13) D.F.R.] [Para 4(2) C.P.W.A.C] 11). Appropriation :- Appropriation is the allotment of a particular sum of money to meet expenditure on a specified object. An appropriation is intended to cover all the charges, including the liabilities of past years, to be paid during the year or to be adjusted in the accounts of it. It is operative until the close of the final year. Any unspent balance lapses. [Para 4(4), App. 6 - C.P.W.A] 12). Re-appropriation :-

Re-appropriation means the transfer of funds from one unit of appropriation to another such unit. [Para 4(47) C.P.W.A.C] 13). Cash :-

The term includes legal tender coin, notes, cheques and notes payable on demand. A small supply of revenue stamps may be kept as part of the case balance. Government securities, deposit receipts of banks, debentures and bonds, accepted as security deposit, are not treated as cash. Pre-dated cheques and drafts are not treated case until they are due for encashment. Service stamps and false coins are not treated as cash [Para 43 C.P.W.A: Rule 1.8 P.F.R. Vol-I] 14). Cash Order :-

Cash order is a payment order issued by a Sadr Treasury on a Sub Treasury under its jurisdiction in favour of the person to whom money is due or who is responsible for its disbursement and is payable in lump. [Rule 1.9 P.F.R. Vol-I] 15). Work :The term Work when by itself is used in a comprehensive sense and applies not only to works of construction or repair, but also to other individual objects of expenditure connected with the supply of manufacture of other store, or operations of a workshop. [Para 4(68) C.P.W.A.C: Article 9(41) Account Code Vol-III] 16). Sub-Head & Sub-Work :-

Sub0head is the term used to describe the sub-divisions into which the total cost of work (or if its sub-works, if it is a large work) is divided for purposes of financial control and statistical convenience. As for example, ion the case of a constructions or maintenance work excavation, brickwork, concrete, woodwork etc. are treated as sub-heads of it. Sub-work is the term applied to a distinct unit of a large work consisting of several buildings or smaller works or groups thereof it that unit is sufficiently large or important to be kept distinct for the purposes of accounts. As for example, in the case of Irrigation, etc. projects, the Head Works. Main Line, each branch of a canal, each group of distributaries relating to each branch separately, the drainage and protective works, etc., all form separate sub-works. A sub work may have several sub-heads of it. [Para 4(57, 58) C.P.W.A.C: Article 9(35, 36) Account Code Vol-III]

17).

Works Accounts :-

Expenditure on the construction or maintenance of a work is incurred through cash, stock charges, and adjustments which may also include charges incurred in other divisions or as departmental charges leviable under the rules of Government and included in the cost of the work. The cash, store and adjustment transactions pass into the general accounts of the division. As, however, the units of classification adopted in the general accounts in respect of expenditure

are the heads of account not designated to correspond with individual estimates for works, or contract accounts, separate accounts have to be maintained in sub divisional and divisional offices for recording; (1) The cost of individual works and (2) the transactions of individual contractors. These are known as Works Accounts. [Para 199 C.P.W.A.C: Article 177 Account Code Vol-III; Rule 79 D.F.R.] 18). Works Expenditure & Works Outlay :-

The terms are used to indicate respectively the expenditure, and the capital charges, on the special services connected with the construction, repair and maintenance of work. The charges falling under these categories may be net when, under rules, any receipts are taken in reduction of the charges, but they do not include the cost of the general services, tools and plant establishment, or any charges not taken to final heads of account but kept under one of the suspense accounts. [Para 4(69) C.P.W.A.C] 19). Work Slip :-

The Divisional Officer is held primarily responsible for affording information of the probability of excess over the estimated cost of work, and should report any such probability to the Superintending Engineer at once, describing the nature and cause of the excess and asking for orders. This report should be made on the Works Slip in Form 36 (D.F.R (P.W.) 34). This form shows name of work, month, sub heads ; units ; quantity, rate, cost as per estimate and as executed. It also shows probable cost of work remaining to be done and value of work already done but not brought to account. Explanations of deviations, excesses, etc., are also given by the Divisional Officer, must also submit the Works Slip, with such explanation as will enable the Superintending Engineer to pass orders on the case, on the occurrence, or the probability of the occurrence, of any irregularity in the rate of cost of a sub-head. All important liabilities not brought to account should also be noted on the Works Slip. An officer of the Public Works Department may pass excesses over estimates provided that the excess is not more than 05 % of the amount sanctioned and does not exceed the amount up to which he is entitled to accord sanction to an original estimate. A revised estimate must be prepared when the sanctioned estimate is likely to be exceeded by more than 05 %. [Para 286 C.P.W.A.C: paras 34, 44, 69 & 71 of Central Public Works, Department Code ; Rule 7.83 D.F.R.; Paragraphs 1.54, 1.72, 2.117 P.W.D. Code]

20).

Contingencies (Works) :-

When used in respect of the accounts of works, the term Contingencies indicates the incidental expenses of a miscellaneous character which cannot appropriately be classified under any distinct sub head of sub work, yet pertain to the work as a whole. [Para 4(11) C.P.W.A.C.] 21). Contract & Contractor :-

The term Contract means any kind of undertaking, written or verbal, express or implied, by a person, not being a Government Servant, or by a syndicate or by a firm for the construction, maintenance or repairs of one of more works, for the supply of materials of for the performance of any service in connection with the execution of works or the supply of materials. The term Contractor means a person, syndicate or firm that has made such an undertaking, but often its use is restricted to contractors for the execution of works or for services in connection therewith. [Para 4(12) C.P.W.A: Article 9(8) Account Code Vol-III] 22). Deposit Works :-

This term applies to works of construction or repair the cost of which is met, not out of Government funds but out of funds from non Government sources, which may either be deposited in cash or otherwise placed at the disposal of the Divisional Officer. Works executed for Municipalities and other public bodies fall under this category when the cost is chargeable either to cash deposits made for the purpose of to their credit balances at Treasuries. [Para 4(14) C.P.W.A: Article 9(9) Account Code Vol-III] 23). Takavi Works :-

This term denotes works of constructions or maintenance relating to water-courses or any other works, expenditure on which is treated by Government as a Takavi advance (i.e. an advance to cultivator) recoverable from the party or parties concerned. [Para 4(61) C.P.W.A.C: Article 9(39) Account Code Vol-III] 24). Local Loan Works :Local loan works are the works executed by the Public Works Department on behalf of a State which has acceded to Pakistan. Municipality, Port Trust, or other Corporation, when the cost of the Works is to form part of a loan given to it by Government for the purpose. [Para 4(31) C.P.W.A.C: Article 4(21) Account Code Vol-III]

25).

Advance Payment:-

Advance payment means a payment made on a running account to a contractor for work done by him but not measured. [Para 4(3) C.P.W.A: Article 9(1) Account Code Vol-III] 26). Secured Advance :-

Secured Advance is a term applied specifically to an advance made, on the security of materials brought to site of work, to a contractor whose contract is for the completed items of work. [Para 4(52) C.P.W.A.C: Article 9(32) Account Code Vol-III]

27).

On Account Payment OR Payment On Account :-

On account payment or payment on account means a payment, made on a running account, to a contractor in respect of work done or supplies made by him and duly measured. Such a payment may or may not be for the full value of work or supplies; if it is an intermediate payment, it is subject to the final settlement of the running account on the completion of the contract for the work or supplies.

28).

Running Account :-

Running account is a term applied to the account with a contractor when payment for work or supplies is made to him at convenient intervals subject to final settlement of the account on the completion or determination of his contract. 29). Intermediate Payment :-

Intermediate payment is the term applied to a disbursement of any kind on a running account, not being the final payment. It includes and Advance Payment, a Secured payment and an On account Payment (other than the final payment on a running account) or a combination of these. [Para 4(26) C.P.W.A: Article 9(17) Account Code Vol-III]

30).

Recoverable Payment means a payment to or on behalf of a contractor which does not

represent value creditable or payable to him for work done or supplies made by him and has therefore to be made good to Government by an equivalent cash recovery or short payment of dues 31). Final payment :-

Final payment means the last payment on a running account made to a contractor on the completion of determination of his contract and in full settlement of the account. [Para 4(22) C.P.W.A: Article 9(17) Account Code Vol-III] 32). Lump Sum Contract :-

Lump sum contract is a contract for a complete work which a contractor agrees to execute with all its contingencies for a fixed sum subject to such conditions as the Government may lay down. [Para 313 C.P.W.A.C: Article 9(22) Account Code Vol-III] 33). Major estimate :-

Major estimate is the estimate for a work when the sanctioned amount of works expenditure exceeds Rs.20,000/[Para 4(32) C.P.W.A.C] In case of West Pakistan the term applies to the estimate for the work the sanctioned amount of the works expenditure exceeds Rs. 10,000/- or any other limit which may be fixed by competent authority. [Rule 1.3 (6) D.F.R] 34). Minor estimate:-

Minor estimate is the estimate for a work, when the amount sanctioned of the works expenditure does not exceed Rs. 20,000/[Para 4(35) C.P.W.A.C] In case of West Pakistan Minor Estimate is a term applied to the estimate for a work, when the sanctioned amount of works expenditure does not exceed Rs. 10,000/- or any other limit which may be fixed by the competent authority. [Rule 1.3 (9) D.F.R.] 35). Original Works & Repairs :-

Original works include all new constructions whether of entirely new works or of additions and alternations to existing works, also all repairs to newly purchased or previously abandoned buildings required for bringing them into use. Repairs include primary operations undertaken to

maintain in proper condition buildings and works in ordinary use. Note ( When a portion of an existing structure is to be dismantled and replaced, if the cost of such replacement represents a genuine increase in the permanent value of the property as an asset, the work should be classed as original work, the cost (which should be estimated, if not known) in the portion replaced being credited to the estimate for Original Work and debited to repairs. In all other cases, the whole cost of the new work should be charged to repairs. [Para 52 C.P.W.A.C: Article 22 Account Code Vol-III] 36). Quantity --- In the accounts of works this expression is used to describe the extent of work done, supplies made or services performed when these can be measured, weighed or counted. 37). Operations. Used in respect of the accounts of manufacture and workshop transactions, this term indicates the charges incurred on the manufacture operations connected with specific jobs. 38). Out-turn :-

Out-turn denotes the value of the finished products (or the work done, in cases in which the articles wrought are not supplied, departmentally) of manufacture operations connected with specific jobs. [Para 4(40) C.P.W.A.C: Article9(25)2 Account Code Vol-III] 39). Issue Rate :The term denotes the cost per unit fixed in respect of an article borne on the stock of the Department at as valuation, for the purpose of calculating the Amount creditable to the sub head concerned (i.e. the sub head under which the article is classified) of the stock account by charge to the account or service concerned, when any quantity of that article is issued from stocks. This does not take into account the storage charges. [Para 4(27) C.P.W.A.C.] 40). Market rate :The term indicates the cost per unit at which the article, or an article of similar description, can be procured, at a given time at the stores, godown, from the public markets suitable to the division for obtaining a supply thereof. [Para 4(34) C.P.W.A.C: Rule 1.3 (8) D.F.R.] 41). Rate of Cost & Inclusive Rate of Cost :Rate of Cost means generally the total cost of a work or supply divided by its quantity. In accounts, it represents the recorded cost per unit, as arrived at by up-to-date final charge on a sub

head by dividing the up-to-date progress thereof. Inclusive Rate of Cost means the rate of cost of the entire work relating to a sub head including the cost of materials if recorded separately in the accounts. [Para 4(46) C.P.W.A.C: Article 9(29) Account Code Vol-III] 42). Storage rate & Storage charges :These expressions denote, respectively, the centage rate fixed for the charges on all issues of stock to cover such actual expenditure as is incurred, after the acquisition of the stores, on workcharged, establishment employed on handling and keeping initial accounts, the custody of stock and the maintenance of the store godwon or yards, etc. [Para 4(45) C.P.W.A.C: Article 4(33) Account Code Vol-III] 43). Supervision Charges :-

This term is ordinarily applied to the charges which are levied, in addition to both value and storage charges, in respect of stock materials sold or transferred, and are intended to cover such items of the expenditure incurred on the stores as do not enter their book value and are not included in the storage charges. [Para 4(59) C.P.W.A.C: Article 9(37) Account Code Vol-III] 44). Direct and Indirect Receipts. --- Direct Receipts are those items of revenue receipts which are realized in connection with a work or project either by officers of the Public Works Department or other departments and are brought to account directly as appertaining to the work or project Indirect Receipts are those receipts which pertain, or are incidental to a scheme or work, but cannot be taken directly into such detailed accounts of it as are incorporated in the regular accounts of the receipts of the Department. 45). Direct & In-Direct Charges :-

Direct Charges are those charges pertaining to a work, project or job, which are incurred directly for its execution and are included in the regular accounts of it, In-Direct Charges are those charges which pertain, or are incidental to a work, project, workshop job, but which are not incurred directly or solely in connection therewith and those cannot be taken directly into such detailed accounts of it as are incorporated in the regular accounts of the expenditure of the Department. [Para 4(19) C.P.W.A: Article 9(10) Account Code Vol-III] 46). Remittances into Treasuries & Other Remittances :-

All remittances transactions, other than those passing through Adjusting Account Between the Central & Provincial Governments and Inter-Provincial Suspense Accounts, whether

originating in the division or in another division or department of another Government, are accounted for under the heads Transfer Between Public Works Officers or Public Works Remittances as the case may be. Public Works Remittances are divided into :Remittances with Treasuries. Public Works Cheques. Other Remittances. Transactions of Public Works Officers with Treasury and other officers of the Civil Departments (including the Forest Department) within the same circles of account. Transactions originating in other circles of account are also passed on the Public Works Officers by the Works Audit Office through this head. Cash obtained from Treasuries or cheques and cash receipts (including surplus cash) remitted to Treasuries, are accounted for as remittance transactions.

If a Public Works Officer deals with Treasuries in account with another Account Officer, the transactions on account of remittances into Treasuries and cheques drawn are classified as pertaining to the sub-head. The minor head Other Remittances is sub-divided into :Items adjustable by Civil, and Items adjustable by Public Works. [Para 436 C.P.W.A.C: footnote 54 in Appendix No.2 C.P.W.A.C; Article 16 Account Code. VolIII; footnotes 399 to 401 in Appendix 2 to Account Code, Vol.I, List of Major and Minor Head of Account] 47). Sectional Officer :-

This designation is used to describe those officials, usually non-gazzetted subordinates, who are placed in responsible executive charge of works or stores under the orders of the officer in charge of a recognized sub division, and the accounts of whose transactions are, therefore, ultimately incorporated in those of the sub-division [Para 4(51) C.P.W.A.C] 48). Suspense Accounts :-

Suspense Accounts is the term applied primarily to certain heads of accounts, falling under the minor head Suspense of a major head of expenditure, which are reserved for a temporary passage of such transactions as must be taken at once to the account of the sanction on grant concerned, but cannot be cleared finally either because the relevant payment, recovery or adjustment is awaited, or because it is necessary to keep an effective watch over the values of any stock materials, until their final disposal.

[Para 4(60)G.P.W.A.C: Article 9(38) Account Code Vol-III] Chapter-1 Definations Problem 1-1 Title Definitions Objective Familarize the trainees with defined terms of Public Works Department. Required Write against each statement whether it is correct to incorrect. 1 Administrative approval is the formal acceptance of the administrative department concerned of the proposals for incurring expenditure by the Public Works Department. 2 Works contingencies indicate the incidental expenses of a miscellaneous character which cannot be classified under any distinct establishment sub head. 3 Deposit works are the works the cost of which is met out of government funds. 4 Direct charges of a work are not incurred directly for its execution and are also not included in the regular accounts of it. 5 Direction office indicates the office of an administrative officer who has one or more Divisional Officers working under his orders and is not entrusted with the exeuction of works.

6 Advance payment is a payment made to a contractor for work actually done but not yet measured. 7 Secured advance is an advance granted to a contractor against the security of material brought on site by him. 8 Intermediate payment is the final payment made to a contractor. 9 The term of issue rate denotes the cost per unit fixed in respect of an article borne on the stock at a valuation, for the purpose of claculating the amount creditable to the sub head concerned.

CHEPTER -2 -a). SCOPE & FUNCTIONS . Q. NO. 1, What is the scope& functions of Minor Local Govt. and Public Works Dpartment ? Ans :- The Central Public Works Department Code, is intended to define the scope of the

functions of minor local Governments in respect of central works, as well as the officers of the Public Works Department, working either directly subordinate to or under the control of authorities directly subordinate to the Governor General. All original works and special repairs, costing more than Rs.2500 relating to Central Civil buildings and communications shall be executed through the Agency of the Public Works Department, Central or Provincial, as the case maybe. Original works and special repairs costing upto Rs.2500 and all ordinary repairs, irrespective of their cost, relating to buildings the administrative control of which vests in the heads of Departments, shall be executed by them without reference to the Public Works Department except where it is not possible for the heads of Departments to do so. (ii) all works on, and repairs to such of the buildings are under the charge of Central Civil Departments (other than the Civil Aviation Department) will be executed by the Central Public Works Department on payment of the usual departmental charges. c). In all other cases, the Public Works Department shall be responsible for maintenance, including special repairs, and original works, irrespective of their cost. Public Works :- including Civil Works, Irrigation, Navigation, Embankment, and Drainage works under the administrative of the PWD. TheMinor local Government means all Chief Commissioners. The Government of Pakistan in the Ministry of Health and Works in respect of circles and divisions under their direct control. Para . 1 to 3, 2-b). ESTABLISHMENTS AND MISCELLANEOUS MATERS. REGULAR ESTABLISHMENT Posts of Engineers under minor local Governments (Chief Commissioner) to be held by members of the Central Service of Engineers / Provincial Engineering Service, filled by the appointment of officers by Provincial Governments. An officer draws the pay of the post to which he is appointed in accordance with the rule. Where a post under a minor local Government is borne upon the carder of a Provincial Government, appointments to it are made by the provincial government concerned. If the post is of divisional or higher status, the appointment should be made in consultation with the minor local Government. Applications regarding the leave or retirement of an officer of the provincial government is serving under minor local govt. should be forwarded to the concerned prov.govt. for disposal. The posts under Pak.PWD are filed by the appointment of officers by the FPSC, and other staff by the department , under general orders issued by the Federal Government. Personal registers or annual reports, showing a continuous record of service, should be maintained for all engineering subordinates, commendations as well as censures being entered therein. Service history of the Gazzetted Officer (Engineer) BPS-17 and above are being maintained is Accounts Officers. Para. 4 to7 of C.P.W.D.Code. Regular Establishment includes all the Staff of Public Works Department and drawing their salaries from the budget of Civil Works (Establishment Portion) and enjoying all benefits

allowed in the Civil Service by the Government from time to time such as medical, pensions gratuities etc. Local Fund works:- Local loan works are the works executed by the Public Works Department on behalf of a State which has acceded to Pakistan. Municipality, Port Trust, or other Corporation, when the cost of the Works is to form part of a loan given to it by Government for the purpose. A Superintending Engineer ,Divisional officer and other Engineer/subordinate establishment may be required to exercise, in addition to his ordinary duties, supervision over Local Fund works, under orders and rules as the minor local Government may lay down. when such employment is not detrimental to the Public Service. The works Division may direct the Pak.PWD to under take works financed from local fund and the employees of the department may be required to do this work in addition to their own duties. [Para 4(31) cpwd para,9 of C.P.W.A.Code: Article 4(21) Account Code Vol-III] POLICE AND OTHER GUARDS. When marching, or when in camp on public duty, officers are allowed a guard, which shall, however, be supplied for only when the officer traveling is in charge of Government money or valuable Government property, or unless the country is disturbed, for the protection of Public property. Such guards are supplied without charge by the Police Department, and application for them may be made to the Superintendent of Police by an officer of not lower status than a Divisional Officer. In all cases ,if the Police Department show the inability to supply a guard from the regular police force, special guards have to be engaged, for which the sanction of the minor local Government or Chief Engineer in case of Pak.PWD will be necessary. Officers or Divisional Officer in case of Pak.PWD may, however, in urgent cases, engagedthe guard, in anticipation of sanction, should report at once for sanction of higher authority. The services of such extra guards should be dispensed with directly they are not longer required. Para13to14ofc.p.w.d.code. MEDICAL ESTABLISHMENT. Assistant, Surgeons will (shall) be allowed a part of the Public Works establishment, and provided medicines at the public expense, wherever any large body of workers is collected together. Sanction to their appointment must be obtained under the normal or usual rules regarding increases of establishment, and application for the services of individuals to fill sanctioned posts should be made, through the Superintending Engineer, to the Chief Medical Officer o the minor local Government concerned. Para. 15 of c.p.w.d. code. Cashiers:- whether appointed permanently or temporarily, must furnish security, the amount determined by the Superintending Engineer. Store keepers, sub-store keepers, and members of subordinate and clerical establishments entrusted with the custody of cash or stores may, subject to any general or special orders of the minor local Government on the subject, be required to furnish security at the option of the Superintending Engineer .of the circle, who will determine whether the amount shall be paid in a lump sun or by deduction from salary under rule 27 of GFR.

Para 16 of c.p.w.d. code. 2-C).DUTIES OF OFFICERS OF THE PUBLIC WORKS DEPARTMENT. A. --- CHIEF ENGINEER. 1).Chief Professional Adviser :- The Chief Engineer is responsible to the minor local Government for the efficient administration and general professional control of public works within its jurisdiction, and He is its chief professional adviser in all matters connected with them. 2).Administration :Transfers of Divisional Officers and of other establishment are within his competence,and he recommend to the minor local Government for transfers and postings of Superintending Engineer. 3). Audit:- The Chief Engineer will exercise a concurrent control, with the Audit Officer, over the duties of the officers of the department in connection with the maintenance of accounts, and will give all legitimate support to the AUDIT Officer, in enforcing strict attention to the regulations coursing the disbursement of money, the custody of stores and the submission of account. He will have no authority over the Audit Officer in regard to audit matters, but will have a claim on him for assistance and advice in matters relating to accounts and finance. 4). Prepration of Budget:The Chief Engineer will prepare, annually, the portion of the budget estimates relating to the works under his control. 5). Administer the Grant :- It is his duty to administer the grant, and, with this object, to keep a close watch over the progress of the expenditure against it, with a view to see that no excess is permitted to occur, and if additional funds are necessary, application for the same is made. It is his duty to see that the grant is fully expended, and the prevention of large expenditure in the last months of the year. Any money likely to be saved during the year is required to surrender. 6). The general supervision:- the general supervision and control of the assessment of revenue from irrigation works, within the limits of his charges, will rest with the Chief Engineer, who will frame the necessary estimates and watch carefully the progress of the realizations during the course of the year. Para 27 to 31 of cpwa.code.

B. ----SUPERINTENDING ENGINEER. 1). The administrative unit of the department:- The Circle office is the administrative unit of the P.W.D.,under the charge of Superintending Engineer. Subject to any orders of the minor local Government, the transfers and postings within his circle of establishment, other than of Divisional Officers and Divisional Accounts officer, may be made by his own authority. 2). Examiner of the Divisons under his circle:- The Superintending Engineer should examine the books as well the Register Works, of Divisional Officers and their subordinates, and to see that matters relating to the primary accounts are attended to personally by the Divisional and Sub Divisional Officers and the accounts fairly represent the progress of each work. 3). Inspection of the Divisional offices:- It is his duty ,to inspect the various works in progress within his circle, and to satisfy himself that the system of management prevailing is efficient and

economical, that the different stores as duly verified according to the rules laid down, and that there is no accumulation of stock in any division beyond its requirements. 4).He is also responsible that no delay is allowed to occur in the submission of completion reports and further he inspect periodically all important public buildings and other works within his jurisdiction. 5). He also inspect the divisional offices at least once a year and record the results of such inspection in the prescribed form. 6). The supervision and control of the assessment of revenue:- The supervision and control of the assessment of revenue from irrigation works within his circle will rest with the Superintending Engineer. 7). The Superintending Engineer is authorized to correspond direct with any of the local authorities, civil or military, within the area of his jurisdiction. Para 32 to 39 of cpwa.code C, ---- DIVISIONAL OFFICER. 1). EXECUTIVE UNIT:The executive unit of the department is the division, in charge of a divisional officer, who is responsible to the Superintending Engineer for the execution and management of all works within his division. 2).TRANSFER OF STAFF:- Subject to the orders of the Superintending Engineer, a Divisional Officer may transfer establishment (other than sub divisional officers) from one station to another within his division. 3). The Divisional Officer is required to take the necessary steps for obtaining cash for the works under his control, to keep accounts, and to submit them punctually to the Audit Officer under the rules for the time being in force. 4). The Divisional Officer is required to inspect, at least once a year, the more important buildings and works in his division, and is responsible that proper measures are taken to preserve them and to prevent encroachment on Government lands in his charge. He should keep accurate plans of all such lands and take care that his subordinates make themselves acquainted with the boundaries and see that they are respected. 5). A Divisional Officer must keep on record in his office the following plans, or such of them as are required in his division:1). Complete plans, sections and elevations of every building or other work under his charge, as actually constructed, any subsequent alteration being carefully noted. The boundaries of the ground attached to any buildings should be distinctly shown. 2). Plans of roads under his charges, showing the quarries whence metal is obtained. Immediately a work is finished, it is the duty of the Divisional Officer to close the accounts of it and to prepare the Completion Report if required by the rules in paragraph 99. 6). A Divisional Officer is required to report immediately to the Superintending Engineer any important accident or unusual occurrence connected with his division and to state how he has acted in consequence. See also paragraph 93. 7). It is the duty of the Divisional Officer to administer the grant made for public works in his division, and, with this object, to keep a close watch over the progress of expenditure against it with a view to seeing that no excess is permitted to occur and that, if additional funds are necessary, application for the same is made.

8). The Divisional Officer is responsible for the detailed assessment of the revenue to be obtained from irrigation works within his division, and will maintain such records and accounts for the purpose as may be prescribed. A Divisional Officer can receive orders only from his Superintending Engineer, the Head of the minor local Government, or other civil officer dulyauthorized. Para 40 to 50 of cpwa.code. SUB DIVISIONAL OFFICER. 51. The division is divided into sub divisions, in charge of sub divisional officers, who are responsible to the Divisional Officer for the management and execution of works within their sub divisions. and sub divisional charges,

CHEPTER 3, SYSTEMS OF ACCOUNTS OF PUBLIC WORKS DEPATMENT. 3-1, SYSTEM OF ACCOUNTS. The main features of the system of Public Works accounts are:1).The Divisional Officer is the primary disbursing officer of the division who is permitted to obtain by cheques on civil treasuries or the Bank the funds required for all disbursements in connection with the execution of works. he also collects some of the departmental receipts of the division and pays them into civil treasuries or the Bank. 2). The accounts of these receipts and disbursements are compiled under his supervision by a Divisional Accountant posted to his office by the Accountant General, who audits them against sanctions and appropriation of funds and then incorporates them in the general accounts of Government.and are submitted monthly to the Accountant General 3). He is further required to maintain clear accounts of all stores received by him and to make these accounts available for audit by the Accountant General. 4). Under each major head of expenditure, the charges on each project, work, or sub-work are recorded separately in the accounts of Divisional Officers. In the case of works of certain classes (see examples cited below), proforma accounts of all transactions connected there with are prepared annually by the Accountant General or by the Divisional Officer, as may be required, and for this purpose, the receipts pertaining to each work of this class are also shown separately in divisional accounts: -Irrigation, etc., for which separate capital accounts are kept. Quasi- commercial undertakings, such as self supporting workshops. Residential buildings. 5). Personal payments to all Government Servants of the Department are made on bills presented at civil treasuries in accordance with the general provisions of the Treasury Rules, and are therefore brought to account by the Accountant General himself from data furnished to him direct by Treasury Officers. 6). In exceptional cases, where civil treasuries are not conveniently situated, Public Works Officers are placed in account with Military Treasure chests. 3-2, CLASSIFICATION OF TRANSACTIONS. The transactions of Public Works Officers may thus be grouped under the heads indicated below:-.

I. Expenditure Heads; for charges adjustable finally in the accounts of Divisional Officers. II. Revenue Heads; for revenue receipts creditable finally to Government in the accounts of Divisional Officers. III. Remittance Heads --- Receipts as well as payments; for cash, stores or other values received from, or paid to or no behalf of, other division, departments or Government. IV. Debt Heads; for certain receipts and payments held in suspense pending clearance by payment or recovery (as the case may be) in cash or otherwise. The suspense accounts for transactions of this group, are treated either as heads subordinate to the expenditure heads or as independent heads of account, or as sub-heads in the accounts of works, as will be explained in later chapters. Revenue is realized and placed to credit of Government as it falls due under the statutory or other rules governing it, Expenditure can be incurred only against a grant voted by the Legislature or against the sum allotted by Government to meet non voted expenditure.

3-3,

Watching of Actuals :-

The Divisional officer is responsible for watching of the actual. He should keep a constant watch over the progress of expenditure, within the allotments for the Division under various grants, In order to take early steps for obtaining extra funds or surrendering probable savings as may be necessary through :i) ii) iii) Schedule of demand and revised estimate in the month of November. Final review of grant in the 1st week of March. Surrender statement in the 1st week of May.

Title System of accounts of Public Works Department.

Objective Enable the trainees to learn main features of the system of Public Works accounts

Required Answer by ticking 'Ture' or 'False' given against each of the statement.

1 The divisional officer is the primary disbursing officer of the Division. True /False 2 Superintending engineer obtains funds by drawing cheques on civil treasuries for works expenditure. True /False 3 Accounts of receipts and disbursements are compiled by the sub divisional officer under supervision of the divisional officer. True /False 4 Maintenance of clear accounts of stores is the responsibility of the divisional officer. True /False 5 In case of civil works, expenditure on each project work or sub work is recorded separately. True /False 6 Personal payments to all the Government servants of the divisional office are made by drawing cheques by the divisional officer. True /False 7 Public works officers are placed in account with Military Treasure chest where civil treasuries are not conventiently situated.

True /False 8 The receipt or payment transactions should be recorded within a week of their occurrence under proper head of account. True /False 9 The record of receipt and expenditure should be so clear and self contained that it may be produced in the court of law as evidence, if required. True /False 10 Divisional officer is not responsible to collect some of the departmental receipts and pay them into civil treasuries. True /False

Classification of Transactions Problem 2-2

Title Principles to be followed in the classification of civil expenditure.

Objective

Enable trainees to classify the civil works expenditure.

Required Fill in the blanks.

1 Charges adjustable finally in the accounts of a divisional office booked under the ________________.

2 Revenue receipts creditable finally to government in the accounts divisional officer are placed under the _____________.

3 Receipts as well as payments on behalf of other division departments or Governments are booked under____________.

4 Certain receipts and payments held in suspense pending clearness by payment or recovery are placed under______________.

5 Main unit of classification is known as ________________

6 Further divisions of a main unit are known as ______________

7 Subordinate heads to minor heads are called _____________.

8 Civil works are grouped into _________________ works and ________works for the purpose of classification.

9 Revenue realised is placed to ___________ of Government.

10 Expenditure can be incurred only against a grant ________ legislature or against the sum _________ by Government.

CHEPTER 4 , DUTIES & FUNCTIONS OF DIVISIONAL ACCOUNTANT . 4-1). DIVISIONAL OFFICER, Q. who is the primary disbursing officer of the Division ? 17. The Divisional Officer, as the primary disbursing officer of the division, is responsible not only for the financial regularity of the transactions of the whole division but also for the maintenance of the accounts of the transactions correctly and in accordance with the rules in force. He is further required to submit his accounts to the Accountant General for audit and for incorporation in the general accounts. The Divisional Officer is responsible that the accounts of his division are not allowed to fall into arrears. Para .17 to 18 of cpwa.code. 5-2).DIVISIONAL ACCOUNTANT. (DIVISIONAL ACCOUNTS OFFICER ) Divisional Accounts Officer is the Senior Member of the office establishment in a Division after Divisional Officer. His position in respect of accounts is analogous to that of a Sub Divisional

Officer to the Divisional Officer in respect of works because he is responsible to the Division Officer for the correct compilation of the accounts of the Division from the data supplied to him. There are threefold functions of the Divisional Accounts Officer :1. As Accountant : He is the compiler of Accounts of the Division from the data given to him in accordance to the prescribed rules. 2. As a Primary Auditor : Being a representative of the audit department he is responsible to apply certain preliminary check to the initial accounts, vouches etc. As a Financial Advisor He is the financial advisor to the Divisional Officer in all matters relating to accounts and budget and estimates or to the operation of financial rules. Generally, Divisional Accounts Officer is deputed in each and every Divisional Office to assist the Divisional Officer in financial matters, pre-audit of all vouchers, receipts and payments transactions of the Division and a compiler of Accounts to the Divisional Office and scrutinize the computed tenders. He is further required to inspect periodically under the orders of the Divisional Officer, the accounts records of sub-divisional offices and to check a percentage of the initial accounts. The defects noticed should be reported to the Divisional Officer for orders. He is also responsible for explaining personally the defects of procedures and for imparting necessary instructions thereon to the Sub-divisional Officers and their staff. The result of inspections should be placed on record for the inspection of the Accountant General but in cases of loses of public money, stores or other property should be reported immediately to the Accountant General and the other authority concerned in accordance with such rule. Q. What actions should be taken by the Divisional Accounts Officer in case of over ruled ?

Ans. The Divisional Accountant is expected to see that the rules and orders inforce are observed in respect of all the transactions of the division which come within his sphere of duties. If he considers that any transaction or order affecting receipts or expenditure is such as would be challenged by the Accountant General it is his duty to bring this fact to the notice of the Divisional Officer with a statement of his reasons and to obtain the orders of that officer. It will then be his duty to comply with the orders of the Divisional Officer, but if he has been overruled and is not satisfied with the decision, he should at the same time make a brief note of the case in the Register of Divisional Accountant Audit Objections, Form 60, for providing a chance for accepting the DAO advice on reconsideration or recording the reason for disregarding that advice for the record of Audit. The observations once raised should not be considered as a finally disposed off until it has been reviewed by the Accountant General for whose inspection the register should be available at all times.

Note. If no audit inspection takes place in a year and entries have been made in the register during the period since the last inspection, an extract of the Register should be submitted to the Accountant General in the month of April. Q. What will be the option with Divisional Officer if he feel doubt in any account / Financial matter ? Ans. In all matter concerned with the accounts of the Division or the application of financial rules and orders concerning the Divisional Officer shall first obtain the advice of the Divisional Accounts Officer who is specifically trained for this duty in writing. In case of any doubt he has a right to seek the advice of the Accountant General, which will be final for all concerned. Q. Can D.A.O. is keep him self fully conversant about the sanctios and orders ? Ans. In the discharge of these duties he is expected to keep himself fully conversant with all sanctions and orders, passing through the office and with other proceedings of the Divisional Officer and his subordinates which may affect the estimate or accounts of actual or anticipated receipts and charges. He should advice the Divisional Officer on the financial effect of all proposals for expenditure and keep a watch, as far as possible, over all the liabilities against the grants of the division as they are incurred. The Divisional Officer should see that he is given the fullest opportunity of becoming conversant with these sanctions, orders and proceedings. To enable him to discharge his duties efficiently. Q. Con D.A.O. is responsible for checking of comput tenders ? Ans:-2 The Divisional Accountant is responsible for the arrangements for checking the computed tenders i.e, for seeing that satisfactory and efficient arrangements are made for checking;. He should conduct personally a test check of the computed and checked tenders sufficient to satisfy himself reasonably that the checking work has been properly done, and. He should see that the comparative statement correctly incorporates the totals as checked on the individual tenders. Para 19 to 25 of cpwa code. Q. Fill in the Blanks using correct words from the words given against each sentence.

1 The functions of the Divisional Accountant are _____________________. Two folded / Three folded 2 The Divisional Accountant is the compiler of the accounts of _____________ ______________________. Circle Office /

Divisional Office 3 The Divisional Accountant is the _________________________ auditor of a Public Work Division. External / Primary 4 The Divisional Accountant is ___________________________ assistant to the Divisional Officer. Technical / Financial 5 The Divisional Accountant operates his audit objection register ______________________ when he is overruled by his Divisional Officer. Form-39 / Form-60 6 The Divisional Accountant is responsible for checking the computed _________________________. Estimates / Tenders 7 The Divisional Accountant should see that _________________________ ____________________ correctly incorporates the totals of individual tenders. Comparative statement / objection statement 8 The Divisional Accountant is responsible to scrutinize the accounts of receipts and disbursement on behalf of ____________________________. Divisional Officer /

Superintending Engineer 9 The Divisional Accountant inspects periodically accounts records of sub divisional office under orders of the ___________________________. Divisional Officer / Sub Divisional Officer

1 The functions of the divisional accountant are __________ (two fold, three fold).

2 The divisional accountant is the compiler of the accounts of __________ (circle office, divisional office).

3 The divisional accountant is the __________ (auditor of a Public Work Dvision. (external, Primary)

4 The divisional accountant is __________ assistant to the divisional officer, (technical, financial)

5 The Divisional accountant oerates his audit objection register, _________ when he is overruled by his divisional officer, (form 39, form 60).

6 The divisional accountant is responsible for checking the computed ___________ (estimates, tenders)

The divisional accountant should see that _____________ correctly incorporates the totals of individual tenders. (comparative statement, objection statement).

8 The divisional accountant is responsible to scrutinize the accounts of receipts and disbursement on behalf of ___________ (divisional officer, superintending engineer).

9 The divisional accountant inspects periodically, accounts records of sub divisional office under orders of the (divisional officer, sub divisional officer)

10 The divisional accountant is responsible to report __________ to time of inspection (quarterly, at once).

ACCOUNTANT GENERALS INSPECTIONS. The Accountant General arranges for the periodical test audit and local inspection of the accounts of divisional offices. The Divisional Officer is responsible that the initial accounts and other connected records are made available for inspection Inspecting officers are required, if possible, to discuss the drafts of their reports with the head of the office inspected before submitting them to the Accountant General, and for this purpose, it is desirable that the head of the office should be present at the inspection unless his presence is urgently required elsewhere. Para 26 of cpwa. Code. COMMUNICATION OF SANCTION TO ACCOUNTANT GENERAL. 27. As a general rule, every sanctioning authority is responsible that all sanctions and orders against which audit of receipts of disbursements is to be conducted by the Accountant General are communicated to him in accordance with such procedure, as may have been prescribed. See also paragraphs 461 to 463 of this code and paragraph 78 of the Central Public Works Department Codal. Note.1-----Audit against sanctions accorded by the Divisional Officer is conducted in the Audit Office only in respect of technical sanctions to estimates and sanctions to write off stores or loses of Public money. In respect of other sanctions of the Divisional Officer the Divisional Accountant is responsible for the necessary check, vide paragraph 23. Note.2--Sanctions to contact agreements accorded by officers higher than the Divisional

Officer should be communicated by them to the Accountant General in such form as to enable that officer to audit the payments to contractors the basis of rates sanctioned or each item of work or supply and other necessary terms and conditions. Duplication for agreements should in no case be required that is to say, an authority who has concluded an agreement should not be required to draw up and sign against an agreement already executed. RESULTS OF AUDIT. 28. The results of audit are communicated to the Divisional Officer in the Inspection Reports. The replies of the Divisional Office should be based on his own knowledge. It is not enough to pass on the explanation of a subordinate reports prepared in this manner may lull suspicion for the time being but lead to greater irregularity afterwards. 29. Inspection Reports should be returned through the Superintendent Engineer after the Divisional Officer has recorded his replies thereon. The Superintending Engineer will pass orders in respect of matters which he is competent to deal with finally and record his remarks on all other points, before returning the documents to the Accountant General and the Accountant General is required to report to the higher authorities all important items and any seri CHEPTER 5, CASH & CASH ACCOUNTS. Q.1: What is the meaning of cash in work account? A: The term cash is used for legal tender coin, notes, cheques and drafts payable on demand. Revenue stamps may also be kept as cash balance. (T.R, 78 volumes I) Q.2: What kind of deposit not treated as cash?

A: All deposit accepted as a Security deposit under the provision of paragraph 388 i.e. Government securities, deposit receipts of banks, debenture and bonds etc. Q.3: Who is the primary disbursing officer of the division?

A: Divisional officer is the primary disbursing officer of the division, all receipt and payments? Q.4: Who is responsible of the cash receipt or payments?

A: Every Government officer is personally responsible for the money which passes through his hands and for the payment record of receipt and payments in the prescribed accounts as well as for the correction of accounts. Q.5: Does the cash or account of member of the department can be mixed up with the public cash or accounts?

A:

NO, the works accounts do not mix with private.

Q.6: What kind of forms should be used in the transaction with treasury of Central Government? A: The forms of chalans, bills, cheques, voucher etc. Printed on the blue paper should be used in respect of the transaction with treasury in order to record the transaction correctly against the balance of central Government. (T.R.32 (1)) Q.7: A: What is the mode obtaining the cash from treasury? There are two ways of obtaining cash in the P.W. Division.

I) By Bills Drawn on treasury. Directly by bills drawn on treasury for the pay and allowances of the regular establishment not charged directly to the work, head of the offices or other officer draw bill on treasury in prescribed form, in accordance to prescribed rule. By means of cheque. Divisional officer is placed by Accountant General in accounts with one or more treasuries within there jurisdiction and they may either authorize the sub divisional officer to obtain money from the treasury within the jurisdiction of the letter by drawing cheques or place them in founds by means of an imprest or by transfer of cash from the divisional cash chest. (Para-48-CPWA Code) If necessary for efficient control over disbursements of his division, considered necessary the (limit) be fixed monthly of his sub divisional offices for drawing cash with standing or fresh limit under intimation to SDO treasury office or bank concerned. (para-55- CPWA Code) Q.8: What is the limit for issuing a cheque? A: Petty sums under ten rupees should not be paid by cheque. For the disbursement of these and other charges which naturally are paid in cash e.g. wages of the labors and establishment charged direct to the work and value payable postage, it is permissible to draw money from time to time from the treasury by cheque to replenish the cash chest. The cheque must be drawn for the actual minus requirement of the current disbursement and if it is found at any time that the balance is larger than is required to meet the anticipated expenditure of the next month or the next fifteen days if the concerned treasury is not situated at the convenient distance the surplus should be returned to the nearest treasury.

(para-56-CPWA Code) Q.9: What is the difference between Imprest and Temporary Advance? ANSWER ( IMPREST TEMPORARY ADVANCE It is permanent standing advance. It is temporary advance. Issued to any individual officer or officials. Always issued to subordinate officer. Enabling the individual to make certain class of disbursement entrusted to his charge by the divisional or sub-divisional officer. Enables the officer to make a number of specific petty payments on muster role or other vouchers. No need of passed bills before issuing. Always issued on passed bills for payment. The amount should be kept as low as possible but in no case exceed rupees 1000. There is no limit. When an account of imprest submitted it is recouped. It requires to be closed and adjusted as soon as possible on receipt from the concerned officer. (para-83 & 87 of CPWA Code) Question ( Describe the procedure to be observed in : a) Renewal of a time-barred cheque ? b) Renewal of a lost cheque ? c) Cancellation of a cheque issued by Public Works Officer ? d) Rectification of errors in cash book ? e) Cash found surplus or deficient in cash chest ? ANSWERS ( a). Renewal of a time-barred cheque :-

If the currency of a cheque should expire owing to its not being presented at the treasury for payment within three months after the month of issue if may be received back by the drawer who should destroy it and draw a new cheque in lieu of it. The fact of destructions and the number and date of the new cheque should be recorded on the counterfoil of the old cheque, and the

number and date of the old cheque that is destroyed should be entered on the counterfoil of the new one. The fact of the new cheque having been issued should be entered on the date of issue in red ink in the cash book but not in the column for payment, a note being made at the same time against the original entry in the cash book. The issue of a new cheque in lieu of a time expired or lost cheque should be entered on the date of issue in red ink in the cash book but not in the column for payment, a counter reference being given in either cash against the original entry in the cash book. b) Renewal of a lost cheque :If a drawing officer be informed that a cheque drawn by him has been lost, he shall address the Treasury Office drawn on, forwarding for signature a certificate in the following form :Certified that cheque No.235/05 dated 01.01.2007 for Rs.2,00,000/- reported by (the drawing officer) to have been drawn by him on this treasury in favour of Mr. Mubarak Hussain has not been paid, and will not be paid if presented hereafter If after a search through the lists of cheques paid, the Treasury Officer finds that the cheque has not been cashed, he will sign and return the certificate. If the original cheque is received for payment thereafter, the Treasury Officer will refuse payment. The drawing officer, on receipt of the certificate duly signed by the Treasury Officer, shall enter in his account the original cheque as cancelled, and may issue another as in (a) above. [Rule-165 of Central Treasury Rules, Vol.I, Rule-2.18; P.F.R. Vol-I] c) Cancellation of a cheque issued by Public Works Officer :-

When it is necessary to cancel a cheque, the cancelment should be recorded on the counterfoil, and the cheque, if it the drawers possession, he should be destroyed. If the cheque is not in his possession, he should promptly request the Treasury Officer to stop payment of the cheque and, on ascertaining that payment has been stopped, he should write back the entry in his cash book by exhibiting the amount of the cheque as a minus figure on the payment side in the Bank of Treasury column. A counter reference should be given in he cash book, against the original to the second entry of the cheque. A cheque remaining unpaid through any cause for twelve months after the month of its issue should be cancelled and its amount written back in a similar manner. The amount of a cancelled cheque should be shown as a minus figure on the payments side in the Bank of Treasury Column. [Paragraph-62, C.P.W.A.C.; Rule 2.17 P.F.R. Vol-I] d) Rectification of errors in cash book :-

If a mistake discovered before the copy of cash book has been submitted to the Divisional Officer, it should be corrected by drawing a pen through the incorrect entry and inserting the correct one in red ink between the lines. The disbursing officer should initial every such correction and invariably date his initials. When the mistake is discovered too late for correction in this way an initiation of the necessary correction should be sent at one to the Divisional

Office, accompanied by a proposed transfer entry, if necessary. Except as indicated above, no correction of an entry once made in his cash book should be made by a Sub-Divisional Officer, unless authorized by the divisional office to do so. The same principles should be observed in correcting errors in the divisional cash book. If the accounts of the month have been closed, no corrections of errors in amount, classification or name of work, should be made in that book, but a transfer entry should be prepared for necessary correction, a suitable remark in red ink (quoting reference to the correction in accounts) being recorded against the original erroneous entry in the cash book. [Paragraph-79, C.P.W.A.C.; Article-84 & 85 of Account Code, Vol-III] e) Cash found surplus or deficient in cash chest :-

Whenever, on the contents of the cash chest being counted, balance as per cash book is found to be incorrect it must, unless the error can be detected and set right at once, be made to agree with the actual count balance by making the necessary receipt or payment entry To cash found surplus in chest under Public Works Deposits or by cash found deficient in chest under Miscellaneous P.W. Advances, as the case may be. The administrative action to be taken on the occurrence of a deficiency must depend on the nature of each case. [Para-82, C.P.W.A.C.; Note under Rule 2.2 P.F.R Vol-I] Question. What cash transactions are kept outside the Divisional Cash Book ? Answer. The following cash transactions are not included in the Divisional Cash Book:-

a) Pay and Traveling allowances of Gazetted and non-gazetted staff as well as advances of personal nature drawn form the treasury by this staff. b) Earnest money received with tenders and returned to the contractors, whose tenders are not accepted the same day on which tenders are opened. While repaying such an earnest money a stamped receipt is obtained from the contractors in the Register of Tenders. c) A payment made out of temporary advance or imprest is not noted in the Cash Book until the account of the temporary advance is rendered or imprest is recouped. d) Security Deposits from employees for deposit into Post Office Savings Bank as interest bearing security. e) Amounts deducted from the pay of employees on account of attachment orders. Question ( What are the more important checks which a disbursing officer should exercise over his Cash Book ? Answer. The disbursing officer should check all the entries in his Cash Book as soon as possible after the date of their occurrence, and he should initial the book, dating his initials after the last entry checked. The cash book should be signed by him at the end of every month. The following are some of the more important checks that he should exercise.

The disbursing officer should :Compare each entry of payment with the gross amount chargeable as shown in the connected voucher, seeing, at the same time, that it bears (i) a payment order recorded by himself or the Divisional Officer, and (ii) the certificate of disbursement signed by himself or an authorized subordinate, and ticking off each voucher as it is passed ; See, whilst examining the postings of vouchers on the payment side, that all deductions shown in the vouchers (other than deduction creditable to the head of account or work to which the payment relates) are posted as receipts on the receipt side of the cash book ; Compare each entry of payment into the treasury with the treasury officers receipt on the chalan or his pass book and satisfy himself that the amount have been actually credited into the treasury ; Verify the totaling of the cash book or have this done by some principal subordinate (other than the writer of the cash book) who should initial (and date) it as correct ; and Verify the total of the postings in the Bank of Treasury column on the payment side by reference to the memoranda recorded by himself on reverse of the counterfoils of cheques. [Note : under Para-80, C.P.W.A.C ; Rule 3.20 D.F.R.] ARE THE FOLLOWING ITEMS TREATED AS AN OPENING BALANCE IN A DIVISIONAL CASH BOOK OR NOT ( Currency notes. Postage Stamp. Revenue Stamp. Imprest with subordinate A. Temporary advance with subordinate B. Cash. Cheque for self dated last day of previous month. Government Receipts. Cheque received from M/s A. Brothers on account of cost of scrap material sold to them. Cheque dated (Previous month) received from Lesse M on account of payment due from his for a Lease ( ( ( (

Service Stamps. Cheque of Contractor. Government Securities. Hand receipt for imprest by Sub Engineer A. Draft payable on coming month. Deposit receipt of a balance received from contractor as security. ( Cheque for self lying in chest

( (

Un-cashed self cheque. Paid Muster Role.

Q: Prepare a cash Book of a Works Division For a Road construction from The data Given below and close it also given classification. 1-4-2009 Opening balance RS

Cash .45000 Imprest with Sub-Engineer kareem ..1000 Draft payable on 2-5-2009 5000 Postage Stemps ..300 Cheque drawn for self 3000 Cheque of Contractor .210000. Received from Accounts Directorate release of funds for costruction of road A vide Cheque No. 234/20 for Rs 500,000. against the total allocation of Rs 1000000/2-4-2009 Received from DO Civil Division on account of share of funds for maintenance of road vide cheque No.3111/09 dated 14/3/2009 for Rs 150000/-

Payment made to the contractor for the work Construction of road A as under i) Amount of the bill 60000. ii) Less 10% S.Deposit iii) Less Income Tax 6%. iv) Less rupees 6000 for the cost of material issued to another work. 5-4-2009 Cheque drawn for self Chest 7000 9000

10-4-2009 Paid to daily labors ( Maintenance of Road) 15-4-2009 Cheque dated 2-1-2009 renewed 25000

20-4-2009 Temporary advance of Rs 4000 given to Mr.Zubair Assitt:Ex:Engineer(SDO)

25-4-2009 26-4-2009 27-4-2009

Received on account of sales Proceeds of old materials = 5000 Imprest with sub-Engineer Mr. Kareem recouped by payment to the work charged establishment Maintenance of Road Cheque No. 242/2 Dated 23-3-2009 cancelled. Which was issued for the construction of road A.

Amount remitted into bank 5000. 29-4-2009 Cash found surplus 150.

Required Answer by ticking the world 'Right' or 'Wrong'

1 Payment to suppliers and contractors is made by drawing cheques on the Treasuries /Banks. Right / Wrong 2 Payment to regular establishment is made by presenting bills on the treasuries. Right / Wrong 3 Sub divisional officers are placed with funds by means of temporary advance. Right / Wrong 4 The appropriation of departmental receipts to expenditure is strictly prohibited. Right / Wrong 5 Divisional officer is authorized to draw cheques on a treasury situated outside the limits of the province. Right / Wrong 6 No cheque should be drawn until it is intended to be paid away.

Right / Wrong 7 Payments to contractors, even if so desired by them into the cash chest at the close of the financial year in order to show the full utilization of the grant. Right / Wrong 8 It is permissible to draw cheques and deposit them into the cash chest at the close of the financial year in order to show the full utilization of the grant. Right / Wrong 9 Petty sums under ten rupees should not be paid by cheques. Right / Wrong 10 The occasional delivery of cheque through a subordinate may be permitted at the discretion and responsibility of the disburser. Right / Wrong Required Fill in the blanks with appropriate words from the given words.

1 An account of cash transaction should be maintained in the cash book form _______________ (Form 1, Form-30).

2 An entry once made in the cash book should in no circumstances be ___________ (deleted, erased).

3 The disbursing officer should initial every correcdtion in the cash book in __________ ink (red, black).

4 The actual balance of cash in the chest should be counted on the ________ working day of each month. (first, last).

5 The account of imprest should be kept in duplicate by the imprest holder in form _________ (Form-2, form -7).

6 Temporary advance and imprest, when given to any officer, are recorded in _______ red, black)

7 Cheque drawn for self for chest is posted on _________ sides of the cash book (both, payment)

8 _________ are not the part of opening / closing balance of cash book, (revenue stamps, postage stamps).

9 Cash found short is taken on the _________ side of the cash book in the column cash. (receipt, payment)

10 The account of ____________ is closed as soon as the account is rendered by the officer concerned. (imprest, temporary advance).

Q. WHAT IS THE SETTLMENT OF ACCOUNTS WITH TREASURIES? Ans:- As soon after the expiry of the month as possible, a monthly settlement should be effected with all treasuries in respect of the transactions of the entire division with them. 507. For payments into treasuries, consolidated receipts should be prepared in form 50 for the whole of the remittances made to each treasury, and sent to the Treasury Officers for signature. 508. For cheques drawn, the pass books, dully completed for the month, should be obtained from the Treasury Officers with the certificates of issues from treasuries (which are prepared in the form reproduced below), and their agreement with the cash books of the division should be effected in part II of Form 51. Schedule of Monthly settlement with Treasuries, which also gives details of the differences. I hereby certify that the total issues made from this treasury on cheques drawn against the Account of Mr.---------------officer in charge, Division ,during 19 amounted to Rs._____________________ (in words). The certificate of agreement should be recorded in the pass book over the signature of the Divisional Officer without recording any details of the uncashed cheques or other differences. Note.1:The pass book or list of cheques cashed is written up in Form T.R.51. It should remain in the in the divisional office as an account record of the office and should be sent to the treasury periodically on fixed dates (at weekly intervals in the case of the treasury at the divisional headquarters) to be written up. The identity and the amounts of the cheque entered as cashed should be examined at the earliest opportunity, the pass book being initialed and dated by the Divisional Accountant in token of the check. Note.2:Form 51 is required for submission to audit in original, vide paragraph 523, The office copy of the details recorded in it should be maintained in the cash book of the divisional office, the entries being made, ov er the signature of Divisional Officer, just after the closing entries of the month referred to in paragraph 78. Note.3:If the Divisional Officer is placed in account with any treasuries which are in account with an Accountant General other than his own, or with a military treasure chest a separate schedule of Monthly settlement with Treasuries Form 51, should be prepared n respect of the treasuries of each circle of account. 52. Without making previous arrangements through the Accountant General, no officer is authorized to draw cheques on a treasury situated outside the limits of the province, even though his own jurisdiction may extend beyond those limits. 53. When for the convenience of work, it is necessary that the Divisional Officer or any of his subordinate disbursing officers should be authorized, either occasionally or as a standing arrangement, to draw cheques on a treasury situated outside the limits of the division, the Divisional Officer should approach the Accountant General through the Superintending Engineer for necessary sanction. Similarly, the Divisional Officer may if necessary, specially authorize any of his sub divisional Officers to draw cheques on treasuries situated outside the jurisdiction of the latter but within the limits of the division. Q. Can a class IV servants be deputed for fetch or carry money ? Ans:- The employment of class IV servants to fetch or carry money should be discouraged.

When it is absolutely necessary to employ a class IV servant for this purpose, a man of some length of service and proved trustworthiness should only be selected and in all cases, when the amount to be handled in large one or more guards should be sent to accompany the messenger. Para 54 of cpwa.code. Q. Limits on Subdivisional Officers, Drawings. Ans:- If the Divisional Officer considers it necessary, for the maintenance of efficient control over the disbursements of his division, to set a monthly limit on the drawings of any of his sub divisional officers, he may do so, fixing either a standing limit or a fresh limit either every month or whenever necessary. All such limits may be raised or lowered subsequently. Intimation of every limit when fixed or changed should be sent both to the Sub-divisional Officer and to the Treasury Officers concerned. At places where the cash business of the Treasury is conducted by the Bank, intimation should be sent direct to the Bank without the intervention of the Treasury Officer. Para 55 of cpwa. Code. 63. When money is received by a Government Officer on behalf of Government, it should at once be brought to account in the Cash Book and a receipt in Form 3 should invariably be granted to the payer. As an exception to this rule, earnest money in legal tender notes attached to tenders and returned to the contractors whose tenders are rejected one the same day as the tenders are opened by the Divisional Officer need not pass through the divisional accounts provided that the contractors concerned give a stamped receipt for the money in the Register of Tenders maintained in the Divisional Office and that the Register is to that extent treated as a subsidiary cash book and consequently as an accounts form. Earnest money which is received prior to the date fixed for opening the tenders, or which for any reason cannot be refunded on that date should be brought to account in the cash book and returned subsequently to the contractors under the ordinary rules. Para 63 of cpwa.code. If a government officer who is not in charge of a cash book receives money on behalf of Government at exceptional times, he should not mix it up with the imprest of any other cash in his charge, but pay or remit it, at the earliest opportunity, to the nearest officer having a cash book or direct into a treasury, accompanied by a chalan in duplicate (vide Rules 92 et seq., of the Treasury Rules, Volume 1.) para 65 of cpwa. Code. A Divisional Officer or Subdivisional Officer, if require to make use of cash receipts temporarily for current expenditure, he may do so instead of obtaining fresh cash by cheques; but before the end of the month, he must send to the treasury a cheque for the amount thus utilized, drawn in his own favour and endorsed by himself with the words Receive payment by transfer credit to the Public Works Department. Para 66 of cpwa.code. It is permissible to make payments to suppliers of stores by obtaining state Bank drafts in accordance with rules 748 of the Treasry Rules, Volume 1. Remittances for such purposes of amounts less than Rs.25, for which State Bank drafts cannot be issued, may be made by postal money order at the public expense. Para 68 of cpwa. Code. 69. As a rule, no cheque should be drawn until it is intended to be paid away . Note:- It is a serious irregularity to draw cheques and deposits them in the cash chest at the

close of the year for the purpose of showing the full amount of grant as utilized. Para of cpwa.code. Payment due to contractors may, if so desired by them, be made to their banks instead of direct to contractors provided that the Department obtains an authorization from the contractor in the form of a power of attorney conferring authority on the bank of receive payment, and the contractors own acceptance of the correctness . para 70 of cpwa.code. Every Voucher must bear a pay order signed or initialed, and dated, by the responsible disbursing officer. This order should specify the amount payable both in words and figures. All pay orders must be signed by hand and in ink. Para 73 of cpwa.code Q. How the cash book is balancing ? Ans:- The cash book must be balanced on the date prescribed for closing the cash accounts of the month. but when the transactions are numerous, A weekly or daily balance is recommended, and it is advisable that the cash be counted whenever a balance is struck, or at convenient intervals, as this affords an independent check on the accuracy of the postings. The results of such intermediate counting should be recorded in the form of a note (specifying the actual cash and also the outstanding balances of imprests and temporary advances) in the body of the cash book (Column 8), so as not to interfere with the up to date totals; the actual balance of cash in the chest should invariably be stated in the note both in words and figures. The cash balances at end of the month should be detailed thus in a note at foot on the cash book. Rs Cash in Chest 7.56 Impreset with Mr.R.Johnson 100.00 Temporary 50.00 Total Cash balance as above. 157.56 Rupees one hundred fifty seven and fifty six paisa. Q. what type of custdy of cash is requirered ? Ans:- Public money in the custody of the department should be kept in strong treasure chests by secured two lock of different patterns. The chest should never be opened unless both the custodians of the keys are present. When there is a guard should usually be the custodian of one set of keys and he must always be present when the chest is opened and until it is again locked. the keys of one lock should be kept apart from the keys of the other lock, and in a different persons custody when practicable. CHEPTER 6, WORKS AND WORKS ACCOUNTS

Q. What is the Classification of operations of the department :Ans:- The operations of the department are divided primarily into two categories, original works and repairs, the first including new works, alterations additions and purchases, the second repairs and maintenance.

all work necessary to bring into use newly purchased or previously abandoned buildings falls in the first category. Note. 1:- When a portion of an existing structure is to be dismantled and replaced, if the cost of such replacement represents a genuine increase in the permanent value of the property as an asset, the work should be classed as original work, the cost (which should be estimated if not known) of the portion replaced being, credited to the estimate for original work and debited to repairs In all other cases, the whole cost of the new work should be charged to repairs. Note.2:- The capital value of any portion of a building which is ```abandoned or dismantled without replacement should be written off the total capital value of the building as recorded in the books. TYPES OF WORK A. ORIGINAL WORKS :-

Original works include all new constructions whether of entirely new works or of additions and alternations to existing works, also all repairs to newly purchased or previously abandoned buildings required for bringing them into use. i) ADP/PSDP : Originally ADP/PSDP work of the Government are being executed out of the budgetary grant classified under demand No.175 - Capital Outlay. Deposit Work : ii) Original works are also executed on deposit basis received an advance from other departments, autonomous bodies, corporations or municipality etc. B. REPAIR & MAINTENANCE :-

Repair include primary operations undertaken to maintain in proper condition buildings and works in ordinary use. i) Civil Works Portion : Repair of the Government owned buildings whether official or residential are being executed out of the budgetary grant received for maintenance under demand No. 60 Civil Works Portion. ii) Repair under Deposit : Repair work also executed on deposit basis received in advance from other departments, autonomous bodies, corporations or municipality etc. Note ( When a portion of an existing structure is to be dismantled and replaced, if the cost of such replacement represents a genuine increase in the permanent value of the property as an asset, the work should be classed as original work, the cost (which should be estimated, if not known) in the portion replaced being credited to the estimate for Original Work and debited to repairs. In all other cases, the whole cost of the new work should be charged to repairs.

C.

PURCHASE OF PHYSICAL ASSETS :-

Ordinary physical assets which are required for the general use of the Division are charged to the Minor Head Tools & Plants. Special physical assets those required for the general purpose but for a specific work are born by the work concerned. In both the cases cost is charged in the accounts against sanctioned estimates in the same way as expenditure on works, though for the purpose of sanction it is treated as expenditure on respective physical assets e.g. machinery & equipment / furniture & fixture. D. REPAIR & MAINTENANCE OF PHYSICAL ASSETS :-

Repair and maintenance are being made from the Maintenance Grant under the Minor object A131 (Machinery & Equipment), A-132 (Furniture & Fixture) R&M TRANSACTIONS OF PUBLIC WORKS CAN BE GROUPED :The transactions of Public Works Officers may thus be grouped under the heads as under :I. Expenditure Heads Officers. ( for charges adjustable finally in the accounts of Divisional for revenue receipts creditable finally to Government in the

II. Revenue Heads ( accounts of Divisional Officers.

III. Remittance Heads ( Receipts as well as payments ; for cash, stores or other values received from, or paid to or no behalf of, other divisions, departments or Governments. IV. Debt Heads ( for certain receipts and payments held in suspense pending clearance by payment or recovery (as the case may be) in cash or otherwise. The suspense accounts for transactions of this group, are treated either as heads subordinate to the expenditure heads or as independent heads of account, or as sub-heads in the accounts of works. The transactions under each of these groups are further sub divided for the purpose of accounts :In case of Expenditure & Revenue Heads : The main units of classification is known as major head further divided in minor head and each of which has a number of sub ordinate heads know as a detail heads as illustrated below :A Expenditure

Major object : A01 Employ related expenditure. Minor object : A011 Pay. Detailed object : A01101 Basic Pay. A01102 Personnel Pay. A01103 Special Pay.

Q.What is the Rules to be observed before the execution of Works ? Ans:- PLANNING AND PROCESS OF A WORK 1. Preparation & Approval of PC-I : Working Paper prepared by the project appraision and evaluation sanction of the planning commission containing economic analysis. These are evaluate with the sponsoring authorities. The following points are to be considered while preparing the PC-I :Name of the project, location, authority responsible for sponsoring, execution, operation and maintenance and concerned federal Ministry. Plan provision, project objectives and its relationship with sector objectives. Description, justification, technical parameters and technology of transfer aspects enclose feasibility study for projects costing Rupees three hundred Million and above. Capital cost estimate, annual operating and maintenance cost after completion of the project, Demand and Supply analysis, Financing and mode of Financing. Projects benefits and analysis, financial, economic, social benefits with indicators, employment generation (direct and indirect) and impact of delays on project cost. Implementation schedule and management structure and manpower requirements including specialization skill during construction and operation phases. Additional project / decision required to maximize socio economic benefits from the proposed project. Important points to be remembered :For project exceeding three hundred million the feasibility study report in PC-II form is required to be prepared. For projects below 300 million Rs. Cost No need to prepare PC-II. PC-III is for monitoring report. Planning Commission proforma 1, 2, 3 & 4. Administrative approval is issued after approval of PC-I. Expenditure sanctioned and arrangements of funds. Technical Sanction. Tendering process.

Finally a certificate is being issued as certified that the project proposal had been prepared on the basis of construction provided by the Planning Commission for the preparation of PC-I for infrastructure sector project. 2. Administrative Approval :

For every work (excluding petty works and repair) it is necessary to obtain in the first instance the concurrence of the competent authority of the administrative department requiring the work. The formal acceptance of the proposals by that authority is termed Administrative Approval. It is the duty of the local officer of the department requiring the work to obtain the requisite approval to it. An approximate estimate and such preliminary plans as are necessary to elucidate the proposals should be obtained from the Public Works Department and subject to any order which the minor local Government may prescribe, the Divisional Officer may be required to provide these on the requisition of the head of the department concerned or of such officer as is competent to accord administrative approval to the work. Note :In the case of work required not for a particular department but in the interest of the general public e.g. communication and irrigation work no formal administrative approval is required but minor local Governments should lay down such rules as may be necessary to ensure the submission and scrutiny of preliminary designs and estimates before the detailed estimate is prepared for the purpose of technical sanction POWER OF AUTHORITIES TO ACCORD ADMINISTRATIVE APPROVAAND EXPENDITURE SANCTION . (a). ECNEC :- All works /project above 500 million . (b). CDWP:- All works /project upto 500 million . (c) . DDWP:- All works / project upto 60 million .

When the expenditure upon a work exceeds, or is found likely to exceed, the amount administratively approved/expenditure sanction for it by more than 15 percent, a revised administrative approval /Eendeture Sanction must be obtained from the authority competent to approve the cost, as so enhanced. 3. Expenditure Sanction :

Expenditure sanction means the concurrence of the Government of Pakistan in the expenditure proposed in case where this is necessary under rule (2) b in the Book of financial power can be given only by the Ministry of Finance of the Government of Pakistan. Application for such sanction should be made to the Government of Pakistan in the administrative Ministry

concerned. In all other cases the act of appropriation or reapproation of funds will operate as a sanction to the expenditure concerned the duty of expenditure sanctioned where necessary, rest with the department requiring the work. Modification in Expenditure Sanction : When the expenditure upon a work exceeds, or is found likely to exceed, the amount administratively approved/expenditure sanction for it by more than 15 percent, a revised administrative approval /Eendeture Sanction must be obtained from the authority competent to approve the cost, as so enhanced. 4. Detail Estimate & Technical Sanction :

The papers to be submitted with the project for a work will, in general, consist of a report, plans, a specification and a detailed statement of measurements, quantities and rates, with an abstract showing the total estimated cost of each item. These documents together form what is called the estimate. In addition to the provision for al expenditure which can be foreseen, 5 per cent should be added to the estimate to cover the cost of unforeseen contingencies. The authority granted by a sanction to an estimate must on all occasions be looked upon strictly limited by the precise objects for which the estimate was intended to provide. Saving due to the abandonment of a substantial section of project are not be considered as available for work on other sections. Technical Sanction :Technical Sanction is the order of the competent authority sanctioning a properly detailed estimate of cost of a work of construction or repair proposed to be carried out in Public Works Department. Ordinarily, such sanction can only be accorded by Government. Ministry of Health and Works or by such authorities of the Ministry of whom the power has been delegated by Government. Sanction accorded to a work by any other department of Government is regarded merely as an administrative approval of the work. The following officers are empowered to accord technical sanction to detailed estimates or works subject to the limits stated below which are exclusive of charges for establishment and tools and plant:Rs. ChiefEngineer ,Pak.P.W.D Full Powers. Superintending Engineers. 3000000 Divisional Officers ,Pakistan Public Works Division.

500000

Irrigation Officer Baluchistan. 10000 Resident Engineer Gilgit Public Works Sub Division. 20000 Excesses over technical sanction. A revised estimate must be prepared when the sanctioned estimate is likely to be exceeded by more than 15 percent, except in the cases provided for in note I to 71 and in paragraph 72. The powers of officers of the Public Works Department to accord technical sanction to revised estimates are the same as their powers to accord original sanctions. 71. An officer of the Public Works Department may pass excesses over estimates provided that the excess is not more than 5 per cent. Of the mount sanctioned and does not exceed the amount up to which he is entitled to accord sanction to an original estimate. Note.1:As an exception to this rule, any officer named in paragraph 68 above may pass excess expenditure within a limit of Rs.100 on sanctioned original works and repairs, irrespective of the total amount of the sanctioned estimate. Note.2:No officer of the Public Works Department is entitled to pass any excess over a revised estimate sanctioned by a higher authority than himself. The Divisional Officer may sanction a revised estimate for it, even though the amount of such revised estimate may exceed that to which he is ordinarily empowered to accord sanction. 84. Savings due to the abandonment of a substantial section of any project are not be considered as available for work on other sections. 85. Without the sanction of the Superintending Engineer, ascertained savings may not be diverted from one section of a project to another, nor may the provision for contingencies be diverted to any new work or repair which is not provided for in the estimate, and of which the cost exceeds Rs.2500, or such smaller sum as may be fixed by the minor local Government. Preliminary operations. 86. When land is required for public purposes the officer of the Public Works Department should, in the first instance, consult the Chief Revenue Officer of the district, and obtain from him the fullest possible information as to the probable cost of the land, together with the value of buildings, etc, 5. Appropriation :-

Appropriation is the allotment of a particular sum of money to meet expenditure on a specified object. An appropriation is intended to cover all the charges, including the liabilities of past

years, to be paid during the year or to be adjusted in the accounts of it. It is operative until the close of the final year. Any unspent balance lapses. Funds are being released against the appropriation on the basis of approved cash plan quarterly or as per progress of the work. 6. Re-appropriation :-

Re-appropriation means the transfer of funds from one unit of appropriation to another such unit. Rules to be observed during construction. -General. 92. No religious edifice should be destroyed or injured in the execution of works without the full and free consent of the persons interested in it, nor without the concurrence of the principal civil or political authority on the spot, except under the orders of the minor local Government within whole jurisdiction the edifice stands. 93. Serious accidents should be reported to the Superintending Engineer (see paragraph 47) and also at the discretion of the Divisional Officer to the minor local Government direct. Divisional Officers and other officers or subordinates in charge of works should furnish immediate information to the proper civil authorities on the occasion of every serious accident, and, in the case of death on the spot, they should not allow the body to be removed till an inquiry has been held. Supplementary estimates. 96 Any development of a project thought necessary while a work is in progress, which is not fairly contingent on the proper execution of the work as first sanctioned, must be covered by a supplementary estimate accompanied by a full report of the circumstances which render it necessary. The abstract must show the amount of the original estimate and the total of the sanction required including the supplementary amount. Revised estimates. 97. When any excess over a sanctioned estimate is foreseen, and there is likely to be unavoidable delay in the preparation of a revised estimate, an immediate report of the circumstances should be made to the authority whose sanction will ultimately be required. When a revised estimate is submitted, it must be accompanied by a statement comparing it with the latest existing sanction of competent authority and by a report showing the progress made to date. Procedure on completion of a work. 99. (a) A consolidated completion statement in Central Public Works Account Form No.45 should be prepared monthly of all completed works other than those referred to in sub paragraph (b), the actual expenditure on which is in excess of the sanctioned estimate by an amount greater than that which the Divisional Officer is empowered to pass. This statement should shown for each work or group of works the estimated amount, the outlay and the excess. b) A detailed completion report in Central Public Works Account For No.44 need only be prepared in respect of works on which the outlay has been recorded by sub heads. SPECIAL RULES FOR PETTY WORKS. 101. The following procedure will be adopted in the case of new petty works and repairs, the

cost of which is not likely to exceed Rs.2500:-. I If any work, other than ordinary repairs, is required by an officer of a department other than the Public Works Department a requisition for it will be made in Central Public Works Account Form, No.32 by the local head of the department In respect of works of other classes, the officer of the Public Works Department proposing the work will fill in the form. The Division officer, or an assistant or subordinate empowered by him to act in such cases, will record on the requisition his opinion as to what work should be done and give on the face of the requisition a rough estimate, in lump sums or otherwise, of the probable cost of each item. The Divisional officer having sanctioned this estimate, the work will be put in hand at once without the preparation of a detailed estimate, subject to the appropriation of funds and, in the case of works initiated by the local head of a civil department, to acceptance by the latter of the estimate as sanctioned. SPECIAL RULES REGARDING REPAIRS. 102. Minor local Government are competent to determine for what works, portions of works or groups of works separate repair estimate must be prepared. In the absence of such orders, a separate estimate is required for each work. 103. Minor local Governments are empowered to fix the month which is to be considered as the last month of the working year for the purpose of the annual maintenance estimate. The sanction to an ordinary repair estimate lapses on the last day of the year fixed by the minor local Government. 104. Each ordinary repair estimate should include the whole expenditure (including municipal and other taxes, if any, payable by Government) which it is anticipated will be incurred during the working year on the maintenance of the work concerned. If, however, inconvenience would arise in any exceptional case from the stoppage of the work on the fixed date, the repairs may be carried to completion, the expenditure after that date being treated as expenditure against a fresh repair estimate for the next working year. 105. Estimates for special repairs remain current till the completion of the repairs in the same manner as estimates for original works. 106. In the case of any building, the cost (excluding municipal taxes) of the ordinary annual repairs to which is less than Rs.2500, the Superintending Engineer may prescribe, subject to revision from time to time, a lump sum limited to Rs.2500 (plus the amount of the municipal or other taxes, if any, payable by Government) for any one building, to cover the cost of maintenance, and within this amount expenditure will be permissible without any detailed estimate being prepared. 107. In cases of urgency, the Superintending Engineer may authorize the commencement of periodical repairs in anticipation of formal sanction to the estimate; but in such cases an approximate sum must be fixed, to the expenditure of which sanction is provisionally given, and the Divisional Officer will be responsible that the regular estimate is submitted at the earliest possible date. WORKS ACCONTS. 197. The initial records upon which the accounts of works are based are-. The Muster roll. a)

For work done by daily labour, the subordinate in charge of the work will prepare a muster roll which will shown the work done by this means and the amount payable on this account. From the muster rolls the subordinate will prepare the labour reports (see paragraph 94 of the Central Public Works Department Code). b) The Measurement book. For piece work and for contract work generally, the measurement book will form the basis of account.from the measurement book he will check (or, if so arranged, prepare) the bills and accounts of contractors and suppliers. 198. Initial accounts and vouchers connected with charges relating to works must invariably specify. 1) The full name of the work as given in the estimate, 2) The name of the component part (or sub head) of it, if separate accounts are kept up for the several component parts, and 3) The charges (if any) which are of the nature of recoverable payments and the names of the contractors or others from whom recoverable. In the case of recoverable charges, it should be seen particularly that the contractors or others on whose behalf the charges are incurred do not get the benefit of any concession to which they would not be entitled if they had themselves incurred the charges. 199. (a) Expenditure on the construction or maintenance of a work may be divided into two classes, viz, (1) Cash and(2) stock charges, as explained in chapters VI and VII, these charges are recorded in the cash and stock accounts respectively. b) In addition to the charges falling under the main classes, there are other transactions affecting the cost of a work. For example, there may be charges incurred in other division, departments or Governments, materials received from them or services rendered by them, or there may be cash receipts are taken in reduction of expenditure in accordance with the rules. c) All these transactions pass into the general accounts of the division in the manner described in Chapter XXII and are then incorporated in the general accounts of Government. however, the units of classification adopted in the general accounts in respect of expenditure are certain heads of account and not individual estimates for works or contract accounts it is necessary to maintain separate accounts in sub divisional and divisional offices for recording (1) the cost of individual works and (2) the transactions of individual contractors. These are known as works Accounts. 200. Although the primary object of the accounts of work is to exhibit simply, but accurately, the actual cost of work done, the rules frequently require the upkeep of separate accounts for the several component parts of a work which are not required to attain this object. There are two main reasons for this. In the first place it is often desirable to have details which will satisfy the need for statistical information and for analysis of the comparative cost of various classes of work, of types of buildings, etc. the more important reason, however is that in the case of large works, especially if the period of construction is a prolonged one, it would not be possible for the Divisional Officer to exercise efficient financial control over the recorded transactions of the cost of a work if only the total cost were knowledge of the executive arrangements for the execution of a work, and of the actual progress of work, may be supplemented by a comparison, monthly, of the cost as recorded in the accounts with the value received in the shape of work

done. This monthly comparison is obviously impossible unless the total cost is split up into convenient parts in such a way that as far as possible the cost of each distinct part may be compared with the work done thereon. 201. In recording the cost of an individual work in the accounts no attempt is made to include therein any charge on account of general services. Like establishment and tools and plant. The entries cost whereof is adjusted in the general accounts under the presc5ribed heads of classification. But if any service connected with the working estimate for a work is rendered by another division, department or Government and the claim made by it includes an authorized charge on account of such general services, such charge may be accepted and adjusted in the accounts of the work as part of the cost of the work in the same way as if the service had been rendered by a contractor. Note.1:When the cost of special tools and plant is included in the cost of a work under paragraph 142, the rules in chapter VII regarding numerical lists or returns will apply mutatis mutandis and adjustments on account of the cost of tools and plant transferred to other works, division, departments or Governments will be governed by the rules in paragraph 157. Note.2:The cost of special establishment employed on the acquisition of land when chargeable to the accounts of the works concerned under paragraph 431 should be treated as a part of the works expenditure. 202. Primarily the Divisional Officer is the responsible disbursing officer of the division. He may authorize a Sub Divisional officer to make payments chargeable against the general sanctions of competent authority to expenditure on works. B --- CASH PAYMENTS. 203. Cash charges on works consist of payments (1) to labourers and members of the work charged establishment, of their wages and (2) to contractors and others for work done or other services rendered. The cost of materials, procured specially for works is charged to the accounts of works by transfer credit to the Purchases account, but payments to suppliers are governed by the same rules as payments to contractors for work done. The general rules relating to cash payments and vouchers in paragraphs 67 to 74 apply to all these classes of payments. Only special rules are, therefore, set forth in this chapter. II --- PAYMENTS TO DEPARTMENTAL LABOUR. MUSTER ROLL 1. Muster roll is a sheet or form on which record of attendance wages calculations and payment of wages of daily labour engaged for a work is called Muster Roll. 2. All persons engaged departmentally for the execution of works are considered as a day labours and their wages should be drawn on muster rolls form 21 and charged to the estimate of works on which they are employed except :a) Permanent and temporary employees of the Division whose pay is charged to the head Establishment. b) Member of the work charged establishment as defined in paragraph 10 & 12 of CPWA code.

Discrepancies between labour reports and muster roll should be investigated as soon as the latter are received 3. One or more muster rolls are kept for each work but muster rolls should never be prepared in duplicate. 4. Labour are paid more than once a month and the period covered by each payment is determined locally but separate rolls must b e prepared for each period of payment. 5. The daily attendance and absence of labours and the fines infracted on item are recorded daily in part-I of the muster roll. 6. Un-paid wages are recorded in part-II while part-III contains the progress of work done. 7. The paid wages are recorded in the columns provided for the purpose over acknowledgement of the payees and are properly stampted where necessary. Para 204 & 205 of CPWA Code Q. Fill in the blanks. There are _______________ initial records upon which accounts of work are baed (two, three) Payment to daily labourers is made through _______________. (works register, muster roll)

For contract work, the _______________ will form the basis of account. (cash book, measurement book)

One or more muster rolls are kept for each _______________. (work, contract)

The daily attendance and absence of labourers should be recorded in ________________ of the muster roll. (part-I, part-III) ________________ wages of labourers are recorded in Part-II of the muster roll.

(unpaid, daily) Part-III of the muster roll is meant for the ________________ of work. (progress, closing) All persons engaged departmentally for the execution of works are considered as day ______________________. (establishment, labourers) Muster roll should never be prepared in __________________. (duplicate, triplicate)

Labourers may be paid more than once a ___________________. (week, month) Q. Can Labour be arranged/engaged through a Contractor ? Ans:- The payment of daily labour through a contractor, instead of by muster roll in the usual way, is objectionable in principle. In a case of great emergency it may sometime be found impossible to employ labour by the department ,than labour can be arrangedthrough a contractor. In such a case, the quantities of work done after its completion or at intervals during its progress, be determined and payment should be made to the contractor, at suitable rates, on the basis of work actually executed. But if, as in the case of urgent repair of canal breaches, it is permissible to pay the contractor on the basis of the numbers of labourers employed, day by day, and his own profit or commission being either included in the rates allowed or paid separately in lump sucm or at a percentage rate. The use of the muster roll or the measurement book is not permissible in such cases. Q. Can traveling expeses be charge to a work estimate ? Ans:- When it is necessary to bring labourers and artificers from a distance they may be allowed wages for the number of days occupied in the journey to and from the site of the work, if they join the work with proper dispatch. At the discretion of the Divisional Officer, bona fide traveling expenses may also be allowed to them. The above charges must be borne by the estimate of the work. Para 207 of cpwa. Code. Q. What procedure should be adopted while making the payment to SUPPLIERS AND CONTRACTORS?

Ans:MEASUREMENT BOOK Payment of all work done made on the basis of detailed measurements recorded in the measurement books. Under para CPWA 208, it is necessary to make entries in the measurement book Form 23 in respect of all the work done or supplies made before any payment therefore is made. Failure to do so or dispensing with the maintenance of the measurement book constitute serious laps on the part of authorities responsible. There are however certain situations were dispensing with this requirement is permissible. A detailed entry in the Measurement Book is not need in the following cases:Where the work done is through departmental labour. When work is done through labour supplied by the contractor. (Note below para 206 of CPWA Code) In case of piece work agreement the date of order to commence the work and the date of actual completion of the work is not required to be recorded in the measurement book. In case of supplies made against piece work agreement, the date of order to commence in work and the date of actual completion of the work are not required to be recorded in the measurement book. (Note below para 209 of CPWA Code) When work or supplies are needed to be completed in emergencies such as in floods, earth quakes, fire etc. Q. What are methods of keeping and issuing the Measurement Book in a Divisional Office as well as Sub Divisional Office ? Ans. All the measurement book Form CPWA 23 in Form 92 in the Divisional Office showing the serial number of each book, the name of sub Division to which issued the date of issue and the date of return so that its eventual return to the Divisional Office may be watch. A similar register should also maintained in the Sub Divisional Office showing the name of Sub Divisional Office and Sectional Office / Sub Engineer to whom measurement books are issued measurement book no longer is use should be withdrawn promptly even through not compiled written up. Q. Ans. What are the General Instructions to be observed while recording detailed measurement ? The following general instructions should be observed :-

Detailed measurement should be recorded only by Executive, Assistant Executive or Assistant Engineer or by executive sub ordinate incharge of the works to whom the measurement book have been supplied for the purpose. All measurement should neatly taken down in measurement book form CPWA 23 issued for the purpose and no where else.

Each set of measurement should commence with entries stationing :I. In case of work done bill :

Full name of work as given in estimate. Situation of work Name of contractor. Number and ate of his agreement. Date of written order to commencement. Date of actual completion of work. Date of measurement. II. In case of bill for supply of materials :

Name of Supplier. Number and date of his agreement or order. Purpose of supply in one of the following forms applicable to the case :i) Stock for all supplies for stock purpose ii) Purpose for direct issue to (here after full name of the estimate for issue to contractor _________________ on __________________) iii) Purchase for new enter full name of work given in estimate for issue to contractor ______________ on _________________ Date of written order to commencement supplies. Date of actual completion of supplies. Date of measurement. And should end with the dated initials of the person making the measurements. A suitable abstract should then be prepared which should collect in the case of measurements for work done, the total quantities of each distinct item of work relating to each sanctioned sub head. d. All payments are based on record entries therefore the quantity should measured clearly and accurately. Figures should be worked out for the contractor or area column :1. In case of recurring account bill, the reference to the last running bill should be recorded. 2. If the work or job contract completed, date of completion is duly noted in the prescribed place. If the measurements or a running account or the first and final measurement the facts should be suitable noted against the entries in the measurement book and in the latter case the actual date of completion noted in the prescribed place. 3. The page of the book should be machine number, entry should be recorded continuously and no blank pages left in page torn out any page left blank inadvertently should be cancelled by diagonal lines, the cancellation being attested and dated. 4. The entries should if possible be made in ink when there is not possible and entries have to be made in pencil, the pencil entries should not be milled over but should be left untouched. The entries in the contact are a column should however be made in ink in the first instance. No entry may be erased if a mistake is made it should be corrected by erasing but incorrect words or figures and in scrutiny the corrections then made being initials and dated by the responsible

officer when any measurement are cancelled the cancellation must be supported by the dated initials of the officer ordinary the cancellation or by reform to his order initialed by the officer who made the measurements the reason for cancellation being also recorded. A reliable record is the object to be avoided at as it may hence to be produced as a evidence in a court of law. 5. Each measurement book should be provided with an index which should be kept up to date. (iii) Reviews of Measurement. Sub Divisional officers should submit the measurement books in use to the divisional office from time to time so that at least once a year the entries recorded in each book may be subjected to a percentage check by the divisional accountant under the supervision of the Divisional Officer. (iv) Standard Measurements. 210. The standard measurement books is prepared on the bases of final measurement recorded in Measurement Book in respect of each buildings in order to facilitate the preparation of estimates for periodical repairs, as well as for the purpose of preparing contractors bills for repairs, subject to instructions/rules as laid down by the local administration, in consultation with the Accountant General. i) The standard measurement books should be numbered in an alphabetical series. ii) The entries of measurements (abstracts) in the standard books should be recorded legibly in ink, and certified as correct by a responsible officer. Q. Judge the below statement by ticking the work correct or incorrect.

Payment for work done other than daily labourers and for supplies are made on the basis of measurements recorded in the measurement books Correct / Incorrect Detailed measurement cannot be recorded by the executive subordinates. Correct / Incorrect The pages of the measurement books should be machine numbered. Correct / Incorrect Provision of Index to each measurement book is not necessary. Correct / Incorrect

The pencil entires made in the measurement book should be inked over.

Correct / Incorrect No entry in the measurement book should erased or over written. Correct / Incorrect Standard measurement books are used for canal works. Correct / Incorrect

Pages left blank in the measurement book can be used later on for the measurement of another work. Correct / Incorrect Standard measurement books should be numbered serially and detailed measurement books alphabetically. Correct / Incorrect Record of all the measurement book is maintained in the Divisional Office. Correct / Incorrect

Q.

Fill in the blanks with appropriate words given against each statement.

The last payment on a running account made to a contractor on the completion of his contract and in full settlement of the account is called ____________________ (intermediate payment, final payment).

Contractor bill form ______________ is used when advance payment for work done is made to the contractor. (Form-25, Form-26)

Contractors bill form __________________ is used when secured advance is given to the contractors. (Form-26, Form-28)

The bill of a contractor is prepared from the ________________________ entries. (cash book, measurement book)

Full rate as per agreement should only be allowed to the contractor if the quantity of work done is upto the stipulated ______________________________ (standard, specification)

Before signing the bill, the sub divisional officers should compare the _________ in the bill with those recorded in the measurement book. (quantities, entries)

From the ________________________ all quantities should be clearly traceable into the documents on which payment are made. (cash book, measurement book).

A separate running account is maintained in respect of each _______________. (contract, agreement)

When secured advance is allowed to a contractor, he should (contractor) sign the ________________________ in form-31. (Indenture, Indent)

Preliminary checks by the ________________________ are essential before any payment of contractors bills. (divisional officer, divisional accountant) Q. Answer by ticking the word True or False.

Advances to contractors are as a rule prohibited. True / False Secured advance to the contractor is permissible on the security of materials of an imperishable

nature. True / False

Divisional officer can allow the secured advance to the contractor upto 85% of the assessed value of the material brought on site. True / False

Advance payment for work done but not yet measured is not permissible to the contractors. True / False

Mobilization advance is allowed to the contractors against the projects / schemes costing not less than fifty lacs. True / False

Recovery of mobilization advance is affected in equal five installments with 10 % interest on the reduced principal amount. True / False

Advance payment made to the contractor is required to be recovered from his next bill. True / False

When it is absolutely necessary to make petty advances, subordinate officers may allow advances upto Rs. 500.00 True / False

An advance payment for work actually executed may be made on the certificate of a responsible officer not below the rank of sub divisional officer. True / False

Final payments to contractors may in no case be made without detailed measurement. True / False

Chapter-5 Works Accounts Problem 5-1

Title Initial records upon which the accounts of works are based.

Objective Familiarize the trainees with the muster roll.

Required Fill in the blanks with appropriate words given against each statement.

1 There are ________ initial records upon which accounts of work are baed (two three).

2 Payment to daily labourers is made through ________ (works register, muster roll).

3 For contract work, the __________ will form the basis of account, (cash book, measurement book).

4 One or more muster rolls be kept for each _________ (work contract)

5 The daily attendance and absence of labourers should be recorded in ________ of the muster roll (Part-I, Part-III)

6 ________ wages of labourers are recorded in Part-II of the muster roll, (unpaid, daily).

7 Part-III of the muster roll is meant for the ___________ of work. (progress, closing).

8 All persons engaged departmentally for the execution of works are considered as day _____________ (establishment, labourers).

9 Muster roll should never be prepared in _________ (duplicate, Triplicate).

10 Labourers may be paid more than once a ______ (week, month)

Problem 5-2

Title Initial accounts, records of Public Works Department.

Objective Familiarize the trainees with the measurement book.

Required Judge the below statement by ticking the workd 'correct' or 'incorrect'.

1 Payment for work done other than daily labourers and for supplies are made on the basis of measurements recorded in the measurement books. Correct/Incorrect 2 Detailed measurement cannot be recorded by the executive subordinates. Correct/Incorrect 3 The pages of the measurement books should be machine numbered. Correct/Incorrect 4 Provision of Index to each measurement book is not necessary. Correct/Incorrect 5 The pencil entries made in the measurement book should be inked over. Correct/Incorrect 6 No entry in the measurement book should be erased or over written.

Correct/Incorrect 7 Standard measurement books are used for canal works. Correct/Incorrect 8 Pages left blank in the measurement book can be used later on for the measurement of another work. Correct/Incorrect 9 Standard measurement books should be numbered serially and detailed measurement books alphabetically. Correct/Incorrect 10 Divisional officer is not responsible to collect some of the departmental receipts and pay them into civil treasuries. Correct/Incorrect

Problem 5-3

Title Contractor's bills and vouchers.

Objective Familiarize the trainees regarding the preparation of contractor's bills.

Required Fill in the blanks with appropriate words given against each statement.

1 The last payment on a running account made to a contractor on the completion of his contract and in full settlement of the account is called ________ (intermediate payment, final payment)

2 Contractor bill form ____________ is used when advance payment for work done is made to the contractor (form -25, form-26).

3 Contractor's bill form ___________ is used when secured advance is given to the contractors. (form-26, form-28)

4 The bill of a contractor is prepared from the ___________ entries. (cash book, measurement book).

5 Full rates as per agreement should only be allowed to the contractor if the quantity of work done is upto the stipulated _________ (standard, specification).

6 Before signing the bill, the sub-divisional officers should compare the ______________ in the bill with those recorded in the measurement book (quantities, entries).

7 From the __________ all quantities should be clearly traceable into the documents on which payment are made. (cash book, measurement book).

8 A separate running account is maintained in respect of each ______________ (contract, agreement).

9 When secured advance is allowed to a contractor, he should (contractor) sign the ____________ in form -31, (indenture, indent).

10 Preliminary checks by the ____________ are essential before any payment of contractor's bills. (divisional officer, divisional accountant).

Problem 5-4

Title Advance to contractors.

Objective Enable trainees to know the advances permitted to the contractors.

Required Answerr by ticking the word 'True' or 'False'

1 Advances to contractors are as a rule prohibited. True /False 2

Secured advance to the contractor is permissible on the security of materials of an imperishable nature. True /False 3 Divisional officer can allow the secured advance to the contractor upto 85% of the assessed value of the material brought on site. True /False 4 Advance payment for work done but not yet measured is not permissible to the contractors. True /False 5 Mobilization advance is allowed to the contractors against the projects / schemes costing not less than fifty lacs. True /False 6 Recovery of mobilization advance is effected in equal five installments with 10% interest on the reduced principal amount. True /False 7 Advance payment made to the contractor is required to be recovered from his next bill. True /False 8 When it is absolutely necessary to make petty advances, subordinate officers may allow advances upto Rs.500 True /False 9 An advance payment for work actually executed may be made on the certificate of a responsible officer not below the rank of sub-divisional officer. True /False 10

Final payments to contractors may in no case be made without detailed measurement. True /False

Bills & Vouchers Form of Bill & Voucher :First and Final Bill Form C.P.W.A 24 Used for work done or supply of materials when a single payment is made for a job or contract. ( Running Accounts Bill A, Form C.P.W.A-25

Used for the work done and advance payment against the work done but not measured. (Only for on account payment or Running Bill Payment). ( Running Accounts Bill B, Form C.P.W.A-26

Used for the work done, advance and secured advance to be made are already outstanding in the same work. ( Running Accounts Bill C, Form C.P.W.A -27

Used for the work done or for the supply on account or in running position, and no advance measurement or payment is in valid therein. ( Hand Receipt Form C.P.W.A -28

Used when the above, i.e. 24, 25, 26, 27 does not suitable or served the purpose. For C.P.W.A-29 i) ii) iii) Work charged Establishment bills (s) salaries bills of Work Charged Staff.

Previous on account : The quantity of Precious bill (3000 cft). Since Previous bill : Now to be paid (2000 cft). Up-to-date : Total Quantity or work done executed (5000 cft). ( ( ( (Actual work done + advance payment against the work done). (Served advance allowed on the Security of Materials brought to site). Memorandum of payments or Abstract of the Gross payment and effect of

Account No.1 Account No.2 Account No.3 recoveries :-

Creditable to the works. Creditable to other heads of accounts. Net amount for cheque is to be issued. Preparation, Examination and Payment of Bills. Before the bill of a contractor is prepared, the entries in the measurement book relating to the quantities of work or supplies should be scrutinized by the sub divisional officer and the calculations of Contents or area should be checked arithmetically under his supervision. The bill should then be prepared, from the measurement entries, in one of the forms prescribed in paragraphs 212 to 219 applicable to the case. Full rates as per agreement should be allowed only if the quality of work done or supplies made is up to the stipulated specification. When the work or supplies fall short of that standard, a fraction of the full rate should be allowed . 221. Before signing the bill, the sub divisional officer should compare the quantities in the bill with those recorded in the measurement book and see that all the rates are correctly entered and that all calculations have been checked arithmetically, when the bill is on a running account, it should be compared with the previous bill. Memorandum of payments should then be made up any recoveries which should be made on account of the work or supply or on other accounts, being shown therein. If the sub divisional officer is empowered to pay the bill, he should then record a formal pay order specifying both in words and figures only the net amount payable. Though the payee should be required to acknowledge in his acquaintance the gross amount payable inclusive of the recoveries made from the bill. Note.4:Before signing a first and final bill, or the first bill on a running account the subdivisional officer should see that the relevant measurement entries were marked as pertaining to such bills by the person taking the measurements, vide paragraph 209 (d). 223. From the measurement book all quantities should be clearly traceable into the documents on which payments are made, when a bill is prepared for the work or supplies measured every page containing the detailed measurements must be invariably scored out by a diagonal red ink line and when the payment is made an endorsement must be made, in red ink, on the abstract of measurements, giving a reference to the number and date of the voucher of payment. Q#1 Is advance is admissible under the rule? Ans. As a rule advance is prohibited but there is some exception to this rule as below:ADVANCE PAYMENT Advance payment means a payment made on a running account to a contractor for work done by him but not measured. [Para 4(3) C.P.W.A: Article 9(1) Account Code Vol-III] An advance payment for work actually executed may be made on the certificate of a responsible officer (not below the rank of Sub Divisional Officer) to the effect that not less than the quantity of work paid for has actually been done and the officer granting such a certificate will be held personally responsible for an over payment which may occur on the work in consequence. Final payments may, however in no case be made without detailed measurements. [Para 299 C.P.W.A.C.] 225. (a) If the system of making advance payments to contractors for work has been adopted certificate 2 printed on Running Account Bill A or B, as the case may be, must be signed

by the Sub Divisional or Divisional Officer, and the lump sum amount paid on account of each item should be specified against it in Part I of the bill if a secured advance has been previously allowed to a contract on the security of any materials and such materials have been used in the construction of an item, the amount of the advance payment for that item should not exceed a sum equivalent to the value of work done less the proportionate amount of secured advance ultimately recoverable on account of the materials used. b) Actual measurements should, however, be taken at the earliest opportunity, and when this has been done, the lum sum payments previously made on account of the times of work concerned should first be adjusted in full, so that the contractor may not be paid twice over in respect of the same quantities of work, delays in adjusting advance payments should be investigated (vide paragraph 278) and adjustments made otherwise than by in crediting the value of work actually measured, should be especially looked into as being prima facie indicative of overpayment in the first instance. SECURED ADVANCE Secured advance is an advance, given to contractor / firms on their requests whose contracts is for a finished items for work on the security of materials brought to site with the following essentials conditions. Conditions :The material should be at the site of work for which advance is needed. The material must be of imperishable nature. It should be 75% of the total amount of accessed value by the Divisional Officer for that materials. The secured advance is required to given after formal agreement under which Government secures a lien on the materials and is safeguarded against loses due to the contractor postponing, the execution of the work or to the shortage of misuse of the materials and against the expense entitle for their proper watch and safe custody. The Sub Divisional Officer is required to made a certificate to the effect that :a) The material has actually been brought on site. b) Their value is not below the assessed value. c) He would be held personally responsible for any over payment which may occur as a result of the above. vi) The amount of advance is to be recovered according to utilization on the work. (Para-228 of CPWA Code). MOBILIZATION ADVANCE Contractors are sometime allowed prior to commencement of major works the mobilization advance up to a certain some of money as provided for in the contract or agreement with him for the following purposes :-

To purchase new machinery specifically required for the work. To prepare site of work. To construct temporary huts for the labour s and engineering staff. To transfer heavy machinery etc. from other places to the site of work. To execute other works necessary for the work to be started. Limit and Recovery This advance is restricted to the limit in the agreement for the contract and recovered in the manner specified therein. Mostly two kind of this advances are applicable:An interest free mobilization advance up to 10% of the contract price on the basis of Bank guarantee and required to be recovered in equal monthly installments are per provision of the contract. Mobilization with Interest normally recovered in five or six installments. The first installment is commenced from the 1st running bill and interest are charged at the prevailing bank rates of interest or as given in the contract agreement. Question # 5. Please prepare 1st Running Bill for Zaid Construction for the work Construction of Residential accommodation for FGE at Johar Town, Lahore ? FROM THE FOLLOWING MEASUREMETS :Sr.# Items of Work Rate (Rupees) Units Upto date Quantity cft. Amount paid in Previous Bill (Rupees) 01 Excavation 95/% cft 2500 02 Bricks Masonry 100/% cft 5000 -

03 Cement Concrete 20/Per cft 2000 04 Wood Work OTHER DATA ( i) 30% Premium is allowed on all items of work done as per agreement. ii) Advance payment of Rs.2000/- allowed on wood work in this bill. iii) Secured Advance for 2,00,000/- bricks brought to site allowed to the Contractor 75% of the assessed value of Rs.300/- per thousand (Assessed by Divisional Officer) iv) Cement valuing Rs.2,000/- was issued from stock for this work. v) 01% water changes is required to be deducted on item No.2, 3 advance for each work. vi) 10% Security deposit and 06% Income Tax are required to be deducted from each Running Bill.

RUNNING ACCOUNT BILL A Division Building & Road Works Name of the Contractor M/S. Zaid const. Name of Work Construction of residential quarters for staff of Income tax department at Rawalpindi Serial No. of this Bill 1st Running Bill ( Account of work executed

Advance payments of work not yet measured Items of work Unit Rate Quantity executed up-to-date as per measurement book Payments on the basis of actual measurement Remarks (with reasons of delay in adjusting payments shown in Column-II)

Total as per previous bill Since previous bill Total up-to-date

Up-to-date Since previous bill Rs. Rs. Rs. Rs. Ps Rs. Ps. Rs. Ps. Excavation % cft 95 = 2500 2375 = 2375 = Bricks Masonry % cft 100

= 5000 5000 = 5000 = Cement Concrete Per cft 20 = 2000 40000 = 40000 = 2000 2000 Wood work Iron Work -

47375 = 47375 =

Add 30% above as per agreement 14212 = 14212 =

(D) 2000 (B) 2000 Total Total value of work done to date (A)

61587 61587 =

= 61587

61587 =

Deduct value of work since previous Bill

Net value of work since previous Bill (F)

Fig. (D) in words Two thousand only Figures (F) in words Rupees : Sixty one thousand five hundred and eighty eight only.

Certificate and Signature

11.

Account of Secured advances allowed on the security of materials brought to site.

Total quantity outstanding from previous bill Deduct quantity utilized in work measured since previous bill Quantity outstanding (including quantity brought to site since previous bill) Full rate as assessed by the Divisional Officer Description of Material Unit Reduced rate at which advance is made Up to date amount of advance Reference to Divisional officers written order authorizing advance Reasons for non clearance of advances when outstanding more than three months (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Rs. Ps.

Rs. Ps. Rs. No. Date

200000 300 = Bricks %. 225 = 45000

Total amount outstanding as per this amount Deduct amount outstanding as per entry (C) of previous bill Net amount since previous bill Rupees ( Memorandum of Payment Rs. Ps. (1) 61587 2000

(C) (E)

45000 45000

Total value of work actually measured as per ACT-I, Col.8, Entry (A)

45000 108587

= = = = = (2) Total Up-to-date Advance payments for work not yet measured as per Act.I, Col.3 Entry (B)

(3) Total up-to-date entryC

Secured Advance

as per Act. Ii col.8

(4)

total (item 1+2+3)

Figure for Work Abstract a) b) Rs. Ps. = From previous bill as per last running bill From this bill

Rs. Ps.

(5) Balance i.e. Up-to-date payment(Items 5 - 4)(K)

108587 =

(6) Total amount of payments already made as per Entry (K), of the last Running Account Bill No..of..forwarded with accounts for .. Nil

(7) Payments now to be made, as detailed below :108587 =

By recovery of amounts creditable to this work

(a)

_______________- Nil -______________Rs.

Ps.

(a)

______________________________________________ Rs. Ps. -

= TOTAL = 4(b) + 7(a)(G)

(b)

By recovery of amounts creditable to this other Works or heads of accounts :- Rs. Ps. 10% security deposit 6159 = 6% Income Tax on Rs.108587/- 6515 = water charges on item 2,3 450 cost of material issued from stock 2000

(b)

15124 =

93463 = c) =

By cheque (

108587 = TOTAL = 7(b) + (c)(H) =

Pay Rs. 93463/- (Rupees ninety Three thousand foure hundred and sixty three only) by Cheque

Sd/Divisional Officer Question # 6 Please prepare 2nd Running Bill for Zaid Construction for the work Construction of Residential accommodation for FGE at Johar Town, Lahore ? FROM THE FOLLOWING MEASUREMETS :Sr.# Items of Work Rate (Rupees) Units Upto date Quantity cft. Amount paid in Previous Bill (Rupees) 01 Excavation 110/= % cft. 2500 1100/= 02 Bricks Masonry 190/= % cft. 3000 -

03 Cement Concrete 145/= % cft. 25000 04 Wood Work 10/P. cft. 900 4000/05 Iron Work i) 30% Premium is allowed on all items of work done as per agreement. ii) Advance payment of Rs.10000/- and 8000/- outstanding against item No.2 and 3 (Paid in 1st Running Bill) and Rs.9000/- further allowed as a advance against item No.5 in this bill. iii) Out of 2,00,000 nos. bricks 1,60,000 nos. have been utilized in this bill and 40,000 nos. are still unused against which secure advance @ 75% of the assessed value of Rs.300/- per thousand was allowed in the 1st Running Bill. iv) 01 % water charges is required to be deducted from each bill against item No. 2 & 3 above. v) vi) Rs.2000/-is outstanding in his ledger cost of cement for this work. 10% Security deposit and 06% Income Tax are required to be deducted from each Running Bill.

C.P.W.A. 26 (i) RUNNING ACCOUNT BILL A Division Building & Road Works Name of the Contractor M/S A.M. & Co. Associates Name of Work Construction of residential quarters for staff of Income tax department at Rawalpindi Serial No. of this Bill 2nd. Running Bill

Account of work executed

Advance payments of work not yet measured Items of work Unit Rate Quantity executed up-to-date as per measurement book Payments on the basis of actual measurement Remarks (with reasons of delay in adjusting payments shown in Column-II) Total as per previous bill Since previous bill Total up-to-date

Up-to-date Since previous bill Rs. Rs. Rs. Rzzzs. Ps Rs. Ps. Rs. Ps. Excavation % cft 110 = 2500 2750/ =

1650/ = 10000/( - ) 10000/Bricks Masonry % cft 190 = 3000 5700/ = 5700/ = 8000/( - ) 8000/Cement Concrete % cft 145 = 25000 36250/ = 36250/ = Wood work Per cft. 10 900 9000/ 5000/ -

9000/9000/Iron work. -

53700/ = 48600/ =

Add 30% above as per agreement 16110/ 14580/

18000 (D) (-) 9000 (B) 9000/Total Total value of work done to date (A) 69810/ 6630/ 63180/ =

= 63180/

63180/

= ( Certificate and Signature

11.

Account of Secured advances allowed on the security of materials brought to site.

Total quantity outstanding from previous bill Deduct quantity utilized in work measured since previous bill Quantity outstanding (including quantity brought to site since previous bill) Full rate as assessed by the Divisional Officer Description of Material Unit Reduced rate at which advance is made Up to date amount of advance Reference to Divisional officers written order authorizing advance Reasons for non clearance of advances when outstanding more than three months (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Rs. Ps. Rs. Ps. Rs. No. Date

200000 nos 160000 nos. 40000 nos 300 = Bricks %.

225 = 9000/-

Total amount outstanding as per this amount Deduct amount outstanding as per entry (C) of previous bill Net amount since previous bill Rupees ( Memorandum of Payment Rs. Ps. (1) 69810 9000

(C) 9000/ (E) 45000/ (-) 36000

Total value of work actually measured as per ACT-I, Col.8, Entry (A)

9000 87810/ = = =

= (2) Total Up-to-date Advance payments for work not yet measured as per Act.I, Col.3 Entry (B)

(3) C

Total up-to-date secured advane on the security of material brought at site.as entry

(4) -

Total 1+2+3 =

Figure for Work Abstract a) b) Rs. From previous bill as per last running bill From this bill

Ps

Rs. Ps.

(5) Balance i.e. Up-to-date payment(Items 5 - 4)(K)

87810/ =

(6) Total amount of payments already made as per Entry (K), of the last Running Account Bill No..of..forwarded with accounts for .. 69630/

6630+18000+45000=69630

(7) Payments now to be made, as detailed below :18180/ =

By recovery of amounts creditable to this work

(a) Ps.

Cast of material issued to this work. (a)

____________________________

______________________________________________ Rs. 2000/Ps.

2000 = TOTAL = 4(b) + 7(a)(G)

(b)

By recovery of amounts creditable to this other Works or heads of accounts :- Rs. Ps. a). 10% s/deposit. 6318/b). 6% Income tax c c). water charges 419/1090/-

(b)

7827/=

8353/= c) 8353/=

By cheque (

16180/= TOTAL = 7(b) + (c)(H) =

Pay Rs. 8353/- (Rupees : eight thousand three hundred and fifty three only) by Cheque

Sd/Divisional Officer

TEMPORARY AND WORK-CHARGED ESTABLISHMENT.

There are two types of Establishment :i) ii) Work Charge Establishment. Temporary Establishment.

WORK CHARGE ESTABLISHMENT a) Permanent work charge establishment are appointed for the repair / maintenance of the Government Buildings etc. They are enjoying all benefits such as pay & allowances, pensions, medical facilities etc as entitled to regular establishment under the head Civil Works (works portion). includes all such non-permanent establishment, for the general purposes or general supervision,of a division/ sub-division, in respect of the entertainment of temporary establishment generally. That case provision for the purpose should be exists in the budget. b) Temporary work charge establishment are required in a project or work in progress and there services will be terminated on completion of the project and no other benefits are allowed as in the case of maintenance work charge staff. shall includes such establishment as is employed upon the actual execution, of works/ projects, upon the subordinate supervision of departmental labour, stores and machinery in connection with such a work or the temporary establishment are employed on work of this nature, their pay should, be charged direct to the work. The cost should be shown as a separate sub-head of the estimate for that work. The engagement of work charged establishment is subject to the rules laid down by the GovernorGeneral Members of the temporary and work charged establishments, who are engaged locally, are on the footing of monthly servants. If they are engaged for a specific work, their engagement lasts only for the period during which the work lasts. The terms of engagement should be clearly explained to men employed in the circumstances mentioned above. Appointing Authority:Superintending Engineers and Divisional Officers may, subject to limits of pay upto BPS-8 and BPS-5, respectively, for each post, and to any general or special restrictions which the minor local Government or Ministry of Housing Works in case of Pak.PWD may impose, sanction the Engagement of temporary and work charged establishment subject to the conditions. Payments to Work charged Establishment:Members of the work charged establishment are not entitled to any pension, or to leave salary, or traveling or other allowances except in the following cases:a) Wound and other Extra ordinary pensions and Gratuities are in certain cases admissible in accordance with the rules in Part VI of the Civil Service Regulations.

b) Leave with full pay on Sundays and gazetted 10 days may be allowed at the discretion of the Divisional Officer. c) Actual traveling expenses may be allowed by the Divisional Officer for journeys performed (1) within the jurisdiction of his Government or to and from a district of Foreign State or settlement adjoining his division, and (2) in the interest of the work on which the men are employed. d) Grain compensation allowance is admissible under the supplementary rules to men who are drawing rates of pay which has been fixed with reference to normal circumstances. Pay Bills:- Wages of members of the work charged establishment should be drawn and paid on Form 29, pay bill of work charged Establishment , which is a combined pay bill and acquaintance roll form. Unpaid Wages. Wages remaining unpaid on a passed bill on the date fixed for the closing of the accounts of the month, may be paid subsequently when claimed, as under:a) Items remaining unpaid on the monthly bill should be entered in a simple register, full particulars of the charge, including reference to the bill, being noted in the register. b) Subsequent payments should be made on hand receipts, form 28, reference to the bill in which the charge was originally included, and to the particular item thereof, being quoted in each case. Travelling Expenses.No bills need be prepared in support of claims for traveling expenses. Payments should be made on hand receipts, form 28, which should set forth all the necessary particulars of the journey performed and of the expenses claimed and should be countersigned by the Divisional Officer prior to payment. Classification of chargesEvery payment made to a member of the work charged establishment. Whether on account of his wages or in recoupment of actual traveling expenses, should be debited o the work on which he is employed.

CHEPTER 8, ISSUE OF MATERIAL . Issues of Materials. Issues of materials to works whether from stock or by purchase, transfer or manufacture, are divided into two classes:-. 1) Issues to contractors. Issues of materials to contractors with whom agreements in respect of completed items of works, i.e. for both labour and materials, have been entered into. 2) Issues Direct to works. Issues of materials when work is done departmentally or by contractors whose agreements are for labour only.

To Contractors. General Conditions. (a) The issue of materials to contractors who have contracted for completed items of work is generally permissible only in the following circumstances:i) When, under the operation of paragraph 89 (d) (6) of the Central Public Works Department Code, it is necessary to retain in the hands of Government the supply of imported materials. ii) When, in the interest of work, or with the object of utilizing existing stocks of materials, it is desirable to retain in the hands of Government the supply of certain other materials as well, and a condition to this effect has been inserted in the contract. b) In both cases the contract should specify (1) the materials to be supplied by Government for use of the work, (2) the place or places of delivery and (3) the rates, including the storage rates when the materials are to be issued from stock, to be charged to the contractor for each description of materials; and the contractor should be held responsible for obtaining from Government all such materials required for the work and for making payment therefore, by deduction from his bills; at the rates specified, regardless of fluctuations in the market rates or in the stock rates of the division. The rates to be allowed to the contractor for items of work should be definitely stated. But, if for any special reason, the contract provides for the payments for work done to be made at a specified percentage below or above the rates entered in the sanctioned estimate of the work , it should be stated in clear terms in the contract that the deductions or additions, as the case may be, of the percentage, will be calculated on the gross, and not the net, amounts of the bills for work done, and in fixing the percentage it should be borne in mind that the calculations will be so made. No carriage or incidental charges are borne by Government for moving the materials beyond the place where the contractor has agreed to take delivery thereof. (a) As a general rule, no other materials should be supplied to such contractors for use on works, but this restriction may be waived by the sub divisional officer in respect of petty issues (at full Issue Rates) of materials from existing stocks, not exceeding Rs.50 in any month for any one contract. b) If at any time subsequent to the execution of a contract on a through rate basis, the contractor desires the issue to him, for use on a work, of materials which exist in Government stocks but the supply whereof by Government was not provided for in the contract, the materials should not be issued except with the express authority of the Divisional Officer who should specify in each case the rate to be charged for the materials inclusive of delivery at the place where they are stored. The rate charged should be the market rate prevailing at the time of the supply or the issue rate, which ever may be greater, and should include the storage charges. No carriage or incidental charges should be borne by Government in connection with the supply. Issues of stock materials to contractors for bona fide use on works are exempt from the usual charge of 10 percent on account of supervision, storage and contingencies, which is made when stock materials are sold to the public paragraph 127 of the Central Public Works Department Code). Accounts Procedure. All materials required for issue to a contractor under any of the provisions of paragraphs 238 and 239, should be made over to him, as soon as they are received, whether from stock or by purchase, manufacture or transfer, and an unstamped but dated, acknowledgement, detailing full

particulars of the materials including the rates and values chargeable to him should at once be taken from the contractor. On the authority of the contractors acknowledgement the cost recoverable from him under paragraph 238 or 239, as the case may be, should be debited at once to his personal account by charge to the suspense head Contractors Other transactions (vide paragraph 270) in the accounts of the work concerned. This adjustment should be effected by affording credit to the head concerned, as indicated below:-. Source of receipt of materials Head of Account to be credited. Value to be credited. 1) Stock (including manufacture). Stock At issue rates. 2) Transfer from another work. Work concerned. At a valuation made under paragraph 251 (d). 3) Transfer from another division. Department or Government. Purchases. At rates charged by the division, department or Government concerned. 4) Suppliers. Purchases. At rates payable to the suppliers under their contractors. 5) Obtained through the High Commissioner for Pakistan in the UK. London Stores. The English cost of stores converted in to Pakistan currency in the manner laid down in paragraph 363.

6) Charges in Pakistan on (5) Head concerned. Actual charges incurred, vide paragraphs 362 and 366. The full value credited to the head concerned should be debited to the work (paragraph 248). 243. The recovery from a contract on account of the cost of materials issued to him for use n a works should ordinarily be made by deduction from the first bill authorizing an advance payment or an on account payment to him for the work. Should, however, a lump sum recovery be undesirable in any case, the Divisional Officer may permit, for recorded reasons, the recovery to be effected gradually as the materials issued to the contractor are actually used in construction and the items of work in which the4y are used are paid for whether by an advance payment or by an on account payment. Return of Surplus Materials. Government does not undertake to take over from contractors, whether before or after the completion or determination of contractors, surplus materials which were originally procured by the contractors for themselves or were issued to them and charged to their accounts under paragraph 240. Such materials are the property of the contractors and can be taken over by Government, if required, for use on other works in progress, only by Special arrangements and at the prevailing market rates. If the materials were originally supplied by Government the price allowed to the contractor on re acquisition should not exceed the amount charged to the contractor, excluding the storage charges if any. Note:- Contractors are, however, not at liberty to remove from site of works without the written permission of the Divisional Officer materials which have been issued to them for use on a work, and a stipulation to this effect should ordinarily be entered in their agreement. Disposal of Surplus Materials. (a) Materials issued to works in excess of requirements may be transferred to stock provided that they are serviceable and cer4tain to be required. b) All surplus materials at site of works which have been completed or stopped or on which outlay has been prohibited for any considerable length of time, should, if likely to be of use on other works within a reasonable time, be transferred to works in progress or brought on to the stock account, their value being credited to the work to which they were originally issued and debited to the work to which they are transferred or to the stock account, as the case may be. d) Materials returned to store or transferred to other works should be priced within current market rates, any resultant loss being borne by the work to which they were originally issued. Para 237 to 238

TRANSFER ENTRIES. Para 167 to 173 ,of cpwa. Code. Transfer entries, that is, entries intended to transfer an item of receipt or charge from the account of a work in progress or of a regular head of account to the account of another work or head, are necessary. a) In order to correct an error of classification in the original. b) In order to adjust, by debit or credit to the proper head of account (or work), an item outstanding in a suspense account or under a debt head. c) In order to bring to account certain classes of transactions which do not pass through the cash or stock account, e.g i) For credit to Purchases or London Stores, as the case may be, on account of materials received for works from sources other than stock, vide paragraphs 242 and 247. ii) For credit to P.W.Deposits on account of balances due to contractors on closed accounts, vide paragraph 277. For credit to revenue heads on account of revenue not recovered in cash. For original debits or credits to Remittance heads on transactions not appearing in cash or stock accounts, e.g. transfer of tolls and plant to another division, department to Government when the value is recoverable from them. For original debits or credits to remittance heads based on transactions not appearing in cash or stock accounts, e.g. transfer of tools and plant to another division, department or government when the value is recoverable from them. For credit to the heads concerned of the several percentages livable under the rules, e.g. those on account of supervision (when not recovered in cash), establishment, tools and plant and workshop charges, vide paragraph 127 of the Central Public Works Department Code and Appendix 5 and paragraph 384 of this Code. d) In order to respond to a remittance transaction advised by the Accountant General or direct by the division or department concerned, if the corresponding debit or credit to the remittance head has not already appeared in the accounts. In order to relieve the account of a work in progress of. Items which have ceased to be dubitable to the estimate for the work, and Suspense charges which can no longer be kept within the accounts of the work (vide paragraph 270) Such transfer entries are necessary either when the accounts of any contractor or of the work itself are to be closed, or when any recovery (otherwise than in cash) have become due, e.g. by the transfer of stores to any other work or account. For every transfer entry there must either be an authority in Form 53. Transfer Entry Order, or an order recorded on another document (e.g, Survey Report, Form 18 and Final bill of a contractors closed account placed under Public Works Deposits) which sets forth all the necessary particulars; see also paragraph 512. Note.2:- A single transfer entry may cover a number of adjustments and corrections provided that all the necessary particulars are set forth in respect of each. A transfer Entry Order may be initiated by the sub divisional officer, and should be so initiated by him in all cased falling within clauses (a) (b), (c ), and (e) of paragraph 167 which come within his cognizance. All transfer entries ordered to be made should be registered in the transfer entry book,

from 54 maintained in the divisional office, entries should be grouped, separately for each month in the accounts of which the are to be incorporated. No transfer should be made from one sub head to another in the accounts of a work except on the authority of a formal transfer entry order prepared in accordance with the procedure prescribed in this chapter and approved by the Divisional Officer.

CHEPTER 9, WORKS ABSTRACT & REGISTER OF WORKS. WORKS ABSTRACTS. An account of all the transactions relating to a work during a month whether in respect of cash, stock or other charges, should be prepared by the Sub divisional Officer, in one of the works Abstract form. For Major Estimates (major work)a separate account should be maintained for each sub head estimated to cost not less than Rs.2000, on form CPWA-33 and For Minor (Estimates) works ,form works abstract B, Form 34, should be used in which the account of the final outlay is not kept by sub heads. The estimate, account and completion certificate of petty works are ordinarily prepared on a single form, petty works requisition and Account Form 32 and separate works abstracts are not necessary. But when the accounts of the work involve transactions which cannot be suitably recorded in Part IV of Form 32 (e.g.) Advance payments, secured advances or other Transactions of contractors) the accounts should be kept on the simple form of Works Abstract, Form 34). Note.1:- Percentage charges on account of Establishment, Tools and Plant, and Accountant Audit, levied on works expenditure under Rule 4, of Appendix 5, should not be shown in works abstracts and registers of works, though they are eventually included in the cost of works, vide note 2 below paragraph 515. Preparation, Completion and Disposal of Works Abstracts. 282. The work abstract should be prepared in the sub divisional office in the first instance. It should be posted day by day from the Cah book and the connected bills of contractors and suppliers, cash refunds and readjustment of final char4ges being posted as minus entries. At the end of the month, stock and adjustment transactions should be added and in the detailed statements provided for the purpose, quantities of work executed should be posted from measurement books or other sources and the closing balances of contractors; accounts should be detailed so as to proved the correctness of the up to date totals under the suspense heads (1) Contractors Advance payment, (2) Contractors secured advances and (3) Contractors other transactions. The closing balances arrived at under the suspense head Labourers in each case, should be agreed with the connected record of unpaid wages and its correctness should be certified over the dated initials of the sub divisional officer. The works abstract should then be forwarded in original to the divisional office, were al necessary completing entries will be made in respect of the direct charges and adjustments made by the Divisional Officer and the Abstract checked and closed under the supervision of the Divisional Accountant who, should record a certificate in the following form:-. This abstract has been checked under my supervision. I have personally compared all

the items in the Details of contractors closing balances with the contractors Ledger and found them correct. Note.1:The posting of stock and adjustment transactions may, if preferred, be done entirely in the divisional office. Note.2:Postings made in the sub divisional office should be in black ink and all postings and corrections made in the divisional office in red ink. Note.3:Office copies of works abstracts need not be kept, as the originals are returned by the divisional office after completion. Before the works abstracts are sent to the divisional office, the up to date totals should be entered in advance in the returns for the following month and these should be corrected, if necessary, on receipt back of the works abstracts from the divisional office. 283 When finally completed in all respect, all the works abstracts of a month should be examined by the Divisional Officer. The monthly examination of the Works Abstracts is an important part of the duty of the Divisional Officer and must not be omitted. He must initial (and date) them in token of the performance of this duty. II(a) Classification and Record of Final Charges. Major Estimates.

260. The division of a major estimate into sub heads for the purposes of accounts is guided usually by the classification sanctioned in the abstract of the estimate. If it is intended to purchase or supply materials and to employ labour for construction separately (whether by contract or by departmental agency), the abstract of the estimate should be so framed as to show separately for each distinct item of artificers work (1) the cost and quantity of labour and (2) the cost of materials. But is this is not the case, e.g when any item of work is to be executed by contract and it is proposed to contract for the completed items of work, the abstract of the estimate may show merely the quantity and cost of each item of work. In all cases miscellaneous charges of a general nature, which do not pertain to any sub head in particular, may be treated as separate sub heads, being grouped under one or more heads, e.g. works charged establishment, contingencies etc. See paragraphs 10 and 82 of the Central Public Works Department Code. Note:When the number of sub heads of an estimate is large it will be found convenient to assign a number to each sub head and to prefix this number to the name of the sub head wherever it is used on vouchers, works abstract, registers of works of other accounts. 263. (a) The account of each sub head in the works abstract should ordinarily exhibit:-. 1) amount, i.e, total charges finally classified under the sub head, 2) progress, I,e total quantities executed from time to time, and 3) rate of cost, i.e. cost per unit on the basis of the recorded amount and progress. b) In the case, however, of sub heads which have been lumped together under paragraph 258 above, or sub heads representing items of work which cannot be expressed in quantities, no quantities are shown in the abstract of estimate and the record of progress and rate of cost in the accounts is not necessary, the entries in the amount column being sufficient. c) In other cases the Progress and rate of cost should be recorded in the accounts both during the progress of construction and on completion of work, but the monthly record thereof under any sub head may, during the progress of construction, be dispensed with in the following cases under the written orders of the Divisional Officer which should specify reasons:-.

1) If the duration of construction under the sub head is not expected to be more than three months. 2) If the quantities executed are not in the same units as those specified in the estimate or they cannot be expressed even roughly except on or towards the completion of the work. 264. When provision is made in the abstract of estimate separately for labour and materials under any sub head, the account of the cost of all materials issued to the work from stock, or by purchase, manufacture or transfer, should be kept under a single head, entitled materials, the sanctioned amount of which should be taken to be equivalent to the aggregate provision for materials in the estimate. This should be treated as a suspense head and the details of it recorded in Form 35 (vide paragraph 248), which should accompany the works abstract. The labour divisions only will thus appear in the works abstract as separate sub heads of final outlay. During the progress of the work, the expenditure recorded under those sub heads will be exclusive of the cost of materials, but on the completion of the work, the gross cost of each sanctioned sub head of work, inclusive of the cost of materials, should be placed on record by making entries in the register of works, in the manner indicated in paragraph 289. 265. When the sub heads of a work are divided into labour and materials, the rate of cost of the labour charges relating to each sub head can be watched separately and the necessary control over the expenditure on materials can be exercised through the suspense head Materials and the detailed statement in Form 35 supporting the entries under that head. It is unnecessary, therefore, for purposes of financial control over the outlay, either to record in the works abstract, month by month during the progress of construction, the outlay on the materials relating to each sanctioned sub head of the estimate or, to strike the inclusive rate of cost of the whole sub head monthly. 266. The charges classified under a final sub head should include all ordinary expenses incidental to construction. If any part of a work is pulled down and rebuilt to any serious extent, the extra charges for construction should ordinarily be debited to the ub head concerned unless they are recoverable from the contractor under the terms of his agreement. But if the amount involved be so large as to affect sensibly the cost or rate of the sub head, it may be debited to the sub head contingencies instead or with the sanction of competent authority, to a new sub head additional to the original sanctioned sub heads of the estimate. 267. In the accounts of Major Estimates a final sub head, entitled Additional Charges for Materials issued to contractors, should be opened if the system of issue of materials to contractors has been adopted, and the rates charged to the contractors therefore under paragraph 238 or 239, as the case may be, are either more or less than the actual cost to Government. This sub head should bear all losses on this account and received credit for all profits as explained in paragraph 242. Carriage and incidental charges in connection with the materials issued to the contractors, should also be debited to this head, if, under paragraph 306, they are chargeable to the work. 268. If any receipts or recoveries are credited under the rules to the account of a major estimate, a special sub head should be opened in the works abstract for the reception of all such credits. (b) Minor Estimates.

269. If the Superintending Engineer has desired the accounts of a Minor Estimate to be kept by sub heads . In the case of Minor Estimates for buildings, bridges and other structures, if the

transactions relating to the direct issue of materials, are of sufficient importance and it is desirable, with the object of exercising control thereon, to record their cost separately in the accounts, the procedure prescribed in paragraph 264 in respect of Major Estimates, may be adopted and a column opened for the suspense head Materials, in the works abstract. In all other cases the account of all final outlay on a minor estimate should be kept in a single column, headed Final charges, in works abstract, Form 34. III. --- Suspense Accounts. (a) General. 270. In addition to the head Final charges, or the final sub heads in the case of major estimates, a few suspense accounts are opened in works abstracts to record transactions of a temporary character which are either not adjustable as final outlay in the accounts of the works concerned or the correct classification of which cannot be determined immediately. These accounts are:Materials for the record of the cost of materials issued direct to work. Contractors --- Advance payments for the record of advance payments and of their recoveries. Contractors --- Secured Advance for the record of secured advances and of their recoveries. Contractors --- Other Transactions for the record of all other debits or credits to contractors awaiting settlement, and Labourers for the record of unpaid wages of laboureres and of their subsequent payment. (b) Materials Account. 271. The suspense account Materials has already been referred to in paragraphs 264 and 269. This account should be opened in the works Abstracts of major estimates if materials are issued direct to works. It may also be opened in the case of minor estimates if the transactions relating to the direct issues of materials are of sufficient importance. The responsibility for clearing the head by transferring the charges to the final sub heads of work when closing the accounts of the work in the register of works, rests with the divisional office, vide paragraph 289. (c ) Contractors and Labourers Accounts. 272. Advance payments made to a contractor under the provisions of paragraph 229 should not be charged of as final outlay on the work or under any sub head of it. A suspense head, Contractors Advances payments, should be opened in the works abstract (Form 33 ort 34) as the case may be) for the record of advance payments and their subsequent adjustment. 273. Advances made to contractors and suppliers under paragraph 228, whether on the security of materials or otherwise as well as all recoverable payments made under proper authority to labourers and others on behalf of contractors, should be treated as advances made on account of the work concerned. They should not be charged to the general suspense head Miscellaneous P.W. Advances, The head Contractors secured advances is made to contractors, on the security of materials brought to site, under paragraph 228 (a) 274. The head Contractors other transactions is also for watching the ultimate payment of the unpaid balances of contractors accounts. Similarly, the head Labourers is meant for the clearance of the unpaid wages of labourers. If a running account bill or muster roll is only partly paid, the total amount due thereon as value of work done or supplies made should be brought to account in the works abstract as final

charges or as expenditure on the sub heads concerned, and the amount remaining un paid should be shown as a minus entry in the appropriate suspense column Contractors other transactions or Labourer. If any wages of labourers remain unpaid after the completion of a work, the accounts of the work may be kept open for a period of one month, which may be extended to three months at the discretion of the Divisional Officer. Thereafter the accounts of the work should be closed. This amount should be shown in any Completion Report or statement that may be prepared under the rules in paragraph 99 of the Central Public Works Department Code, by a special remark, as a liability against the work, and it is should be excluded from the total final expenditure on the work, so as to arrived at the amount actually brought to account. The account of a contractor should be closed as soon as his contract is completed. If he delays to receive final payment for more than one month after the final bill has been passed, a note to this effect should be recorded on the bill, the account of the work as passed on the bill should be incorporated in the works abstract on the authority of the bill and the balance due to him should be removed from the accounts of the work by credit to the head Public Works Deposits, to be dealt with thereafter under the rules relating thereto. If the final account of a contractor shows that he has already been overpaid or that the account closes with a balance due by him. The account should be settled by a recovery in cash or otherwise; but if an immediate recovery is not practicable the balance should be removed by debit to the head Miscellaneous P.W. Advances. 278. Disbursing officers are responsible for keeping a strict watch over the balances under the suspense accounts Contractors and Labourers, with a view to prompt adjustment by recovery, settlement of account or detailed measurement, these accounts should be cleared before the accounts of a work can be closed on completion. IV. --- Liabilities Awaiting Incorporation. 279. Liabilities are not incorporated in the accounts of works except in the following cases:-. a) Unpaid balances of partly paid running account bills or muster rolls are invariably incorporated, vide paragraph 274, b) The value of materials received from sources other than stock (including manufacture), whether for issue to contractors or for issue direct to works, is at once brought into the accounts of works even though payments to suppliers and adjustments crediting the transfer accounts concerned, may not be made at once, vide paragraphs 242 and 247, and. c) Wholly unpaid muster rolls and bills of contractors and suppliers are sometimes taken to account, vide paragraphs 276 and 277. Disbursing officers are, however responsible for keeping a strict watch over all liabilities with a view to settle them promptly. Money indisputably payable should never be left unpaid. It is no economy to postpone inevitable payments, and it is very important to ascertain, liquidate and record the payment of all actual obligations at the earliest possible date. 280. If any liabilities of works are incurred on behalf of contractors under the provisions of paragraph 227, arrangements should be made for withholding sufficient balances from their bills or for making necessary recoveries from them in due course. On the analogy of the rule in paragraph 198, all records on the authority of which liabilities may be liquidated or incorporated in the accounts, should invariably specify (1) the full name of the work as entered in the estimate, (2) the name of the sub head thereof, if any and (3) the recoverable charges, if any, with

the name of the contractor or other person from whom recoverable.

F . REGISTER OF WORKS. Forms of Registers of Works and their Preparation. 284. (a) The permanent and collective record of the expenditure incurred in the division, during a year, on each work estimated to cost more that Rs.2000 is the register of works. This record is maintained in the divisional office. b) There are two forms of registers of works corresponding respectively to the two forms of works abstracts (Forms 33 and 34) for major and minor estimates. The detailed form 40, should be used for Major Estimates and the simpler form, 41, for Minor Estimates. In respect of petty works no record is necessary beyond the petty works requisition and account, Form 32, which is self explanatory but, if desired, expenditure on these works may be recorded in the Register of Works for Minor Estimates, Form 41. 285. The registers of works are posted monthly from works abstracts. A separate folio or set of folios of Form 40 should be assigned to each Major Estimate, but entries relating to two Minor Estimates can be made on a single page of Form 41. When separate works abstracts are prepared, under paragraphs 259 and 262, for the sub works or parts of a major estimate, the transactions relating to each works abstract should be posted separately and an abstract for the entire work should be prepared on a separate folio or set of folios for comparing the cost of the work and its sub works with the provision in the estimate. II. --- EXAMINATION BY DIVISIONAL OFFICER. 286. Before the date of submission of the monthly account to the Accountant General, the posting of the registers of works should be completed and the registers should then be laid before the Divisional Officer for review. The monthly account of each work on which there has been expenditure during the month should be initialed (and dated) by the Divisional Officer in the column set apart for the purpose, in token of his having examined the entries and found them correct. Actual as well as probable excess, whether in the total cost of a work or sub head or in the rate of cost of a sub head, should receive special attention, and works slips in form 39 should be prepared and submitted to the Superintending Engineer when necessary vide paragraphs 34 and 44 of the Central Public Works Department Code. Note.1:If the transactions of a division are very large, the Divisional Officer may allow an extra period of a few days for the completion of the Registers of Works, but the submission of the monthly accounts to the Accountant General and the Completion of the works Abstracts (paragraph 282 ) should not be delayed on this account. Note.2:It should be seen, with special reference to works on which there have been only petty or no transactions during the previous two or three months, if there are circumstances justifying the retarted progress of progress of expenditure. If any such works have been stopped or are known to be nearing completion, the delay in closing their accounts should be enquired into; see also paragraph 287, if the slow progress of expenditure is due to delays in measuring work done or in setting up bills, the cause at work should receive attention. III --- Closing the Account on Completion of Work.

(a) SETTLEMENT OF LIABILITIES AND ASSETS AND CLEARANCE OF SUSPENSE ACCOUNTS. 287. It is an object of great importance to close the accounts of works as soon as possible after the actual work of construction is completed, vide paragraph 46 of the Central Public Works Department Code. If there is necessarily any delay in closing the accounts, it should be seen in particular that further charges are not incurred without the permission of the Divisional Officer. 288. Before the accounts of a work can be closed on its completion it should be seen that any adjustments of cost necessary under the rules, e.g. paragraph 52 of the Central Public Works Department Code, and paragraph 7 (c ) of statement A in Appendix 2 to this code, have been duly made in the accounts that all liabilities not originally brought to account have either been liquidated or since brought to account and that the balances under the suspense accounts Contractors and Labourers have been cleared, vide paragraphs 275 to 278. If the whole or any part of the expenditure on the work is recoverable from another department, Government, local body or individual, action should be taken to effect or complete the necessary recovery before the accounts of the work are closed. 289. The suspense account Materials should be cleared and the total cost of materials should be distributed over the final sub heads or other accounts concerned before the accounts of a work can be closed so that, for statistical purposes, the full cost, inclusive of the value of materials of each class of work, may be worked out and placed on record. This is effected in the divisional office in the following manner:-. a) After orders have been passed by the Divisional Officer on the final report of the value and verification of materials at site (vide paragraph 235), the action taken from time to time as to the disposal of surplus balances and to the adjustment of discrepancies and losses should be recorded in form 38. b) Petty deficiencies and surpluses held to be due to the adoption of formulae for determining the quantities used in construction may be adjusted under the orders of the Divisional Officer by debit or credit to the sub heads concerned, action being taken separately, if necessary, to make suitable revision of the formulae in use. c) Shortages and losses for which any contractors are held responsible should be adjusted by prompt recovery either in cash, or by debit to their personal ledger accounts. If they are recoverable from other persons the debits should be transferred to the Miscellaneous P.W.Advances account for recovery in cash or by deduction from pay bills. d) Other actual losses which are irrecoverable should be written off under the orders of competent authority, the charge being transferred to the sub head contingencies, or to the sub heads concerned, or even to a new sub head opened for the purpose as may be considered suitable with due regard to the statistical value of the recorded cost of final sub heads of work. e) The cost of surplus materials which cannot be sold or transferred elsewhere and losses on account of the sale or transfer of surplus stores at a reduced valuation, should be adjusted by charge to the sub heads concerned. (b) CLOSING ENTRIES AND REVIEW OF EXPENDITURE. 292. (a) When the work is completed and the accounts of it have been settled and written up as indicated in paragraphs 288 and 289 ad double red ink line should be ruled below the final entries and a note made in red ink Work completed in .. 19 This note should be signed by the Divisional Officer in taken of his satisfying himself that all action has been taken under those paragraphs. It will be the authority for treating the accounts of the work as closed, and a work should not be reported as completed in the divisional accounts

unless this authority has been placed on record. b) If it is a Deposit work, steps should be taken promptly to surrender the unexpected balance, if any, of the deposit with the approval of the Divisional Officer. (c ) Excesses Over Estimates. (i) Excesses passed by Divisional Officer. 293. If the total expenditure on the work is in excess of the sanctioned estimate and the excess is passed by the Divisional Officer under his powers, the words Excess passed by me should be added to the completion note recorded under paragraph 292. (ii) Completion Reports and Statement.

294. If, however, the excess is not within the Divisional Officers powers to deal with, a detailed completion report in form 44 should be prepared or the item should be included in a consolidated completion statement of works and repairs in form 45, as may be required under the rule in paragraph 99 of the Central Public Works Department Code. The completion note in the register of works should then be amplified thus; work completed in 19 completion report statement submitted with this office letter No. dated . 19.. The orders passed subsequently by higher authority on the excess reported in the Completion report statement should also be noted in the register of works to complete the records. IV. ---- Correction of errors after closing accounts. 295. Should an error or omission in the recorded expenditure of a work come to light after its accounts have been closed (see paragraph 46 of the Central Public Works Department Code), the accounts may be reopened in order to rectify the error or omission unless the amount involved is not more than ten rupees in which case it will be sufficient to make a note of the error or omission in the relevant documents concerned. V. Schedule of Rates. 296. To facilitate the preparation of estimates, as also to serve as a guide in setting rates in connection with contact agreements, a schedule of rates for each kind of work commonly executed should be maintained in the division and kept up to date. It should be prepared; on the basis of the rates prevailing in each locality and necessary analysis of the rates for each description of work and for the varying conditions thereof should, so far as may be practicable, be recorded.

CHEPTER 10, I.

CONTRATORS LEDGER.

Form and use of the Ledger.

297&298. The account relating to contracts should be opened in the Contractors ledger Form CPWA-43 for every contractor, whether or not a formal contract has been entered into with

him unless the work or supply entrusted to him is not important and no payment is made to him except on a first and final bill, form 24, on completion. It is genrally called Personal accounts of contractor. If any materials are issued to the contractor or any payments are made on his behalf, a ledger account must be opened. II. --- Posting the Ledger. 299. The Contractors Ledger should be written up in the divisional office. It is not necessary for the sub divisional officer to maintain a similar ledger in his office but if he maintains one the divisional office may not require him to furnish extracts there from. 300. Except when a contractors account is to be closed and the procedure prescribed in paragraph 277 is observed in respect of unpaid bills, the value of work done or supplies made by a contractor should not be credited to his account until his bill has been passed and payment made thereon. Debit entries in the ledger should be made only on the basis of transactions recorded in the accounts, the postings being made from the supporting cash, stock or adjustment vouchers; liabilities not yet liquidated should be excluded altogether. The value of materials, if any, issued to a contractor under paragraph 238 or 239 should be debited to his account on the authority of his acknowledgment. See paragraph 242. Note:- Security deposits of contractors should not be included in their personal accounts in the ledger, vide paragraph 388. 301. (a) The form of the ledger provides for the following columns:Particulars of Bill or Vouchers:Date. Voucher No. Serial Number, if a Running Account Bill. Net Transactions detailed by suspense heads:-. Advance payments. Secured Advances. Other transactions. Name of work or account and particulars of transactions. Gross transactions:Debits. Credits. Total value of work or supplies. Remarks. b) Columns 8 and 9 constitute the ledger account proper and columns 4, 5 and 6 set forth the net effect of each posting on the three suspense heads making up the account. Column 10 is also not a part of the personal account but will be found useful for the purpose of exercising a check over the continuity of bills in the case of running accounts. (c) Columns 1 to 3 and 11 require no explanation. Instructions for filling in columns 4 to 10 in the case of personal accounts are given below:i) Columns7:Name of work, etc. Here should be entered the full name of the work to which the bill or voucher relates except in the case of suppliers bills, when the name of the account concerned, stock or purchases, should be stated. Brief particulars describing the nature of the transaction should then be added, and against the line should then be posted, in the money columns 4, 5 , 6, 8, 9 and 10, the figures relating to that transactions only. When a deduction

made from a contractors bill for one work is creditable to the account of another work, and such credit is in connection with his contract for the latter work, two distinct sets of entries should be made in the ledger one for the payment made on account of the former work, and the other for the recovery creditable to the latter, as if that recovery had been made in cash. The second set of entries should be posted in a separate line, in columns 6 and 9 against the name of the work concerned. Note.:- If there are several contracts in connection with a work or account, the transactions relating to each should be distinguished preferably by quoting the number rand date of agreement. ii) Column 4. --- Advance payments ---- if the bills is a running Account Bill A or B (Form 25 or 26), figure D of Account I should be posted in this column. iii) Column 5 ----- Secured Advances if the bill is a running account bill B, Form 26, figure E of Account II should be posted in this column. iv) Column 6. Other transactions in the case of running account bills, figure G of the Memorandum of payments should be posted in this column. If a payment is made on a first and final bill, form 24, no entry should be made in this column unless a recovery is made from the contractor on any account. In the case of transactions other than these, the amount paid or recovered should be entered. v) In column, 4, 5 and 6, debits to contractors should be posted as plus entries and credits as minus entries. vi) Column 8. Gross transactions debits if it is a running Account Bills, figure H of the Memorandum of payments should be posted in this column, otherwise the total amount paid or chargeable. vii) Column 9. Gross transactions Credits Here should be entered the value of work or supplies creditable to the contractor, which will be figure F of Account I in the case of running account bills. viii) Column 10 Total value of work or supplies In the case of Running Account Bills here should be entered the total value of work done or supplies made up to date, as per figure A of Account I of bill, but before posting the bill it should be seen that the figure shown in Account I of it as Deduct value of work shown on previous bill agrees with the last entry in column 10 of the ledger against the work concerned. In token of this check this last entry in column 10 should be initialed (and dated) by the Divisional Accountant. III. Balancing and Reconciliation. 302. The ledger accounts should be closed and balanced monthly. The closing balance of each personal account should be detailed in respect of each separate work or account (Stock or purchases), the amount outstanding, if any, under:(1) Advance payment, (2) secured advances and (3) other transactions. In the case of Running Account Bills these balances can easily be ascertained from the Memorandum of payments as table below:Class of Balance. Serial Number of Entry in Memorandum of Payments on Bill Form.

Running Account Bill A. Running Account Bill B. Running Account Bill C. (1) 2 2 .. (2) .. 3 .. (3) 4 5 2 Advance payments. .. .. ..

Secured Advances. ..

..

..

Other Transactions. ..

..

..

Note. See Note below paragraph 301 ( c) (i). 303. The Divisional Accountant should be held responsible for the correctness, of the Contractors Leger and for securing agreement, month by month, between the balances detailed in the works abstracts and the corresponding balances of the accounts in the ledger. able intervals. IV Scrutiny of Accounts by Contractors. 305. A contractor requiring a copy of his running account bill or an extract from his account in the Contractors Leger should be furnished with the same. He should be encouraged to look at his account in the ledger and sign it in token of his acceptance of it. See also Note 2 below paragraph 227.

CHEPTER 10, MONTHLY ACCOUNTS & DOCUMENTS, SHEDULES ETC. COMPILATION OF ACCOUNTS. Monthly Account. 510. Before the actual compilation of the various schedules and schedule dockets, etc, is undertaken, the Abstract Book, Form 81, may be written up form the original cash books, abstracts of receipts and issues of stock, and the Transfer Entry Book in accordance with the instructions printed on the standard form . the book will consolidate all the transactions of the division and will thereby facilitate the location of errors and omissions made in the compilation of the monthly Account from the schedules and also serve as an independent check over the accounts so compiled.

(a) Form CPWA- 61 , Schedule Dockets. 511. As cash vouchers and transfer entry orders, relating to (i) charges on works other than percentages charged for establishment, tools and plant, etc, and (ii) other items of expenditure or disbursement for which a contingent bill is not required, come to hand and are scrutinized, they should be posted into schedule dockets in Form 61, a separate form being used for. a) each work to be accounted for in a schedule of works expenditure form 63, or in the schedules of Deposit works and takavi works, Forms 65 and 66. b) each manufacture or other item of expenditure debitable to stock and to be accounted for in the schedule of debits to stock, form 72 (vide paragraph 517). (c). each separate class of charges (including refunds of revenue) for which a schedule in any other form has to be prepared under the rules in this chapter. (b) Form CPWA-62 , Percentage Recovery. 512. For percentage recoveries made on account of establishment, tools and plant, and accounts and audit charges (vide appendix 5), as single schedule docket should be prepared in Form 62 embracing all Government, as well as non Government, works on which these percentages may be leviable under rule. Note:This form serves as the transfer entry order relating to these recoveries (vide paragraph 492) and should, therefore, be signed by the Divisional Officer. (c) Form CPWA--63 ,Schedule of Works Expenditure. 515. (a) After a reconciliation has been effected between the totals of works abstracts and relevant schedule dockets, a schedule of works expenditure should be prepared in Form 63, separately for expenditure relating to each of the following classes:-. i) Each major head (or a division thereof shown separately in column 1 of the classification table of Appendix 2) under which expenditure is recorded. (d) Form CPWA- 72,SCHEDULE OF DEBITS TO STOCK. 517. All debits to stock should be collected in Form 72, schedule of debits to stock.

(e) Form CPWA- 74,CLASSIFIED ABSTRACT OF EXPENDITURE. A consolidated account of all expenditure (vide paragraph 14) debited against the grants of the division should be prepared in form 74, classified abstract of expenditure. The figures relating to the several major heads of divisions thereof shown separately. (f) CPWA-80, MONTHLY ACCOUNT. The monthly Account should be prepared in Form 80 for presentation (with all supporting registers, schedules, vouchers, etc) to the Divisional Officer and submission to the Accountant General.

This account is an abstract of the entire receipts and disbursements of the month as worked out in the Abstract Book (Form 81) and as detailed in the various schedules and registers, and shows also the opening and closing cash balances, and on the back of the form are printed (1) a memorandum of miscellaneous cash receipts paid onto treasuries and (2) a certificate in respect of the closing cash balances of subordinate disbursing officers. The entries in the Account are divided into three groups: (1) Revenue entries which are totals of receipts of Government under the several major heads, as taken from the registers of Revenue Realized form 46, (2) Expenditure entries, which are the totals of expenditure of Government for the several divisions of major heads and are posted from the Classified abstract of expenditure form 74, and (3) other heads, entries in which representing both receipts and disbursement, are posted from the schedules of Deposits, Takavi Works, Adjusting Account between Central and Provincial Governments, Adjusting Account with Railways, Remittances and Miscellaneous Heads of Account, Form 78 or 79, 66, 77-A, 77 and 76. SUBMISSION TO ACCOUNTANT GENERAL. (g) Form CPWA-83 523. The monthly Account is due to reach the Accountant Generals office by such date between the 7th and 10th of the following that to which it relates, as may be fixed by the Accountant General in consultation with the Divisional Officer. It should be supported by the following documents:-. 1) Extracts from registers of Revenue Realized, Form 46, and. In the same form as 2) Extracts from registers of refunds of the registers. Revenue, Form 46. Classified Abstracts of Expenditure, Form 74. Schedules of works expenditure, form 64. Consolidated contingent bill with (necessary vouchers), Form T.R.32. Schedule Dockets, Form 61 (with necessary vouchers, transfer entry orders, survey reports and sale accounts attached to each). (See also note I below paragraph 511)/ Schedule Docket of Percentage recoveries, Form 62. Stock Account, Form 73 (with sale accounts, form 19, in support of the Cash Credits to Stock). Schedule o debits to stock, form 72. Schedule of purchases, Form 68 or 69 and extracted from the Schedule of Miscellaneous P.W.Advances, relevant sections of The suspense Register Form 67. Schedule of London Stores, Form 71. Schedule of workshop suspense (local form). Extracts from registers of receipts and recoveries on Capital account, Form 46, in the same form as the registers. Schedule of credits and debits to Miscellaneous Heads of Account, Form 76. Schedules of Credits and Debits to Adjusting Account between Central and provincial Government Form 77-A.

Schedules of Credits and Debits to Adjusting Account with Railways, Form 77-A. Schedules of Credits and Debits to Remittances, Form 77. Schedule of Monthly settlement with treasuries, Form 51 (with supporting Consolidated treasury receipts and certificates of issues, signed by Treasury officer). Schedule of Deposits, Form 78 or 79, extracted from the deposit register, Form 67. Schedule of Takavi Works, form 66, with accepted certificates of Collector referred to in paragraph 427. Schedule of Takavi Works, Form 66, with accepted certificates of Collector referred to in paragraph 427. Extract from Account of Receipts of Tools and Plants, Form 13, and. Extract from Account of issues of Tools and Plant, form 14 (with supporting survey reports of stores, form 18, sale accounts, Form 19, and acknowledgements of officers concerned in the case of stores transferred to other officers not being Divisional Officers rendering accounts to the same Accountant General. 0 In the same form as the Accounts. . List of Accounts submitted to Audit, Form 83. Note.1:The consolidated contingent bills is not required to accompany the monthly account if contingent charges are drawn by bills presented direct at treasuries. The Divisional Accountant is required to sign not only the monthly Account, but also all the schedules etc, accompanying etc. accompanying it . It is not necessary that the Divisional Officer should sign all these documents; he must, however, sign the monthly accounts and the list of Accounts, Form 83, Note:It is desirable that the Divisional Officer should make arrangements for the review by himself of all vouchers before they are submitted to the Accountant General and that, unless the circumstances are exceptional, he should sign the accounts himself. CLOSING THE ACCOUNTS OF THE YEAR. Corrections in Accounts. If an error be detected after submission to the Accountant General of the Divisional Officers supplementary Account of the year, All corrections in accounts which may be advised by the Accountant General on auditing the documents, should, after verification, be carried out in all relevant records, the entries being made in red ink (quoting the audit note or other advice) and attested by the dated initials of the Divisional Accountant. The Divisional Accountant is responsible that all corrections advised by the Accountant General are specially brought to the notice of the Divisional Officer.

SCRUTINY OF ACOUNTS. 494. The Divisional Accountant should examine the accounts returns of sub divisional officers on receipt to see. i) that they have been received in a complete state. ii) that all sums receivable are duly realized, and on realization credited to the proper head of account as well as to the personal account, if any, of the contractor, employee or other individual. that the charges are covered by sanctions and appropriations and are supported by completed vouchers, setting forth the claims and the acknowledgments of the payees legally entitled to receive the sums paid. That all vouchers and accounts are arithmetically correct,. That they are in all respects properly prepared in accordance with the rules applicable to each case, and That all charges are correctly classified, those which are debitable to the personal account of a contractor, employee or other individual or are recoverable from him under any rule or order, being recorded as such in a prescribed account. It is not necessary that the divisional accountant should check personally the arithmetical accuracy of all vouchers and accounts, but he is responsible that a cent percent, check is exercised efficiently under his supervision. 495. The Divisional Accountant should exercise a similar check, from day to day, in regard to (i) the transactions recorded direct in the cash and stock accounts o the divisional office, and (ii) bills and vouchers of sub divisions, which are submitted to the Divisional Officers for approval before payment is made by the sub divisional officer. In respect of charges, this examination should be conducted before the payment is made. 498. The Divisional Accountant is responsible that every order or sanction affecting expenditure to be accounted for in the monthly Account, is noted at once in a suitable register (or other account), preferably one wherein the expenditure incurred against it can be watched readily. General sanctions to estimated and appropriations for works should be noted in the register of works sanctions to fixed charges of a recurring character, e.g. those relating to the entertainment of work charged establishments should be entered in the register of sanctions to Fixed Charges, Form 58, For sanctions to special payments chargeable to the accounts of works, and other miscellaneous sanctions, Form 59, Register of Miscellaneous. Sanctions, will be found suitable. 500. It is one of the functions of the Divisional Accountant to see that expenditure which is within the competence of the Divisional officer to sanction or regularities, is not incurred, as a matter of course, under the orders of subordinate disbursing officers without his knowledge. All such items of expenditure should at once be brought to the notice of the Divisional Officer and his orders obtained and placed on record. See also paragraph 23. 501. The works expenditure should be checked with the estimates to ensure that the charges incurred are in pursuance of the object for which the estimate was intended to provided. In the case of works the expenditure on which is recorded by sub heads (that is, items of work such as brick work etc.) the Divisional Accountant is responsible for checking the expenditure on each sub head with the estimated quantity of work to be done, the sanctioned rate, and the total sanctioned cost, so that he may bring to notice all deviations from the sanctioned estimate. 502. When a recovery has been ordered to be made from a contractor or other person, which

cannot be watched through a suspense or other account specially prescribed for the purpose, the order should be noted at once in a register of recoveries in Form 95, opened specially for the purpose, so that the amounts recovered from time to time (with particulars of the account concerned ) may be recorded against, it and prompt compliance with the order watched. The Divisional Accountant should see also that savings due to abandonment of parts of a work, as evidenced by the quantities of the work executed or otherwise, are not utilized towards unauthorized expenditure. 504. After check every voucher should be enfaced with the word checked over the dated initials o the Divisional Accountant as well as of any clerk who may have applied a preliminary check. Vouchers not submitted to audit (vide paragraph 525) should be cancelled by means of perforating or endorsing stamp and kept carefully, to be made available or test audit whenever demanded by the Accountant General. PRO FORMA ACCONTS. 536. When the details of any class of transactions, as recorded in the prescribed accounts, are not sufficiently indicative of the financial results of the operations of a given period, and it is necessary to ascertain the results, it is usual to prepare periodically suitable proforma accounts in addition. Note.1:If the maintenance of such supplementary accounts is necessary for audit purposes and no form has been prescribed by the Auditor General, the Accountant General will determine the required forms in consultation with Government but if the account are required for administrative purposes, the accounts will be maintained in such form as may be agreed upon between the Accountant General and Government. Note.2:If a pro forma account relates to transactions of two or more divisions, the compilation of it is undertaken by the Accountant General, and Divisional Officers may be required to furnish the necessary date. A pro forma account relating to a single division will be prepared by the Divisional Officer and if it is an account prescribed by an administrative authority, the Accountant General may not be required to check it except in pursuance of an arrangement agreed between him and Government. 537. If for the purposes of any pro forma account which the Accountant General is required to prepare or check, it is necessary to determine the charges incurred on a particulars work or service, or a group of works or services, the expenditure thereon should be booked separately in the general accounts, even though, under rule, it may not be customary to estimate or account for such expenditure separately. Detailed instructions in this connection will be issued by the Accountant General in consultation with Government, where necessary. See also paragraph 15 (d). 538. The pro forma accounts showing the results of the working of irrigation, etc, project, productive as well as unproductive, for which capital accounts are kept, are prepared annually by the Accountant General in accordance with the rules prescribed in the Account Code, Volume IV. These accounts are known as the Administrative Accounts of Irrigation, Navigation, Embankment and Drainage Works. Note:- For rules relating to pro forma accounts of irrigation water courses, see paragraph 5 of Appendix 4. 539. For workshops; manufactories and similar quasi commercial undertakings, it is usual to prepare pro forma accounts periodically, vide paragraphs 335 (d) and 386.

CHEPTER 12, Q.

STORES & STOCKS .

Define Store ?

Ans. The term store applies generally in all articles and materials purchase or otherwise acquired for the use of Government including not only expendable and issuable articles in use or accumulated for specific purpose but also articles of dead stock of the nature of plant, machinery, instrument, furniture, equipment, fixtures etc. Q. What is the classes of Stores ? Ans. There are four classes of stores which fall into two distinct categories as given below :i) ii) Store debited to suspense Stores debited to final heads ( ( (i) Stock (i) Tools & Plant (ii) Road Metal (iii) Materials charged to work

Question:-

Who is responsible for general administration of the Store in a Division ?

Ans. The general administration of all the stores of Division is vested in the Divisional Officer on whom primarily devolves the duty of arranging in accordance with such rules and instructions as may have been issued by Government for :the acquisition of stores. their custody and distribution according to the requirements of works, and their disposal. (Paragraphs 95 & 97 of CPWA - Code) Question:Is fictitious stock adjustment is allowed under the rules ?

Ans. All transactions of receipts and issues should be recorded strictly in accordance with the prescribed rules or procedure in the order of occurrence and as soon as they take place. Fictitious stock adjustments are strictly prohibited, such, for example, as :1. The debiting to a work of the cost of materials not required or in excess of actual requirements. 2. The debiting to a particular work for which funds are available of the value of materials intended to be utilized on another work for which no allotment has been sanctioned. 3. The writing back of the value of materials used on a work to avoid excess outlay over appropriation etc.

Any breach of this rule constitutes a serious irregularity, which will be brought prominently to the notice of the appropriate authority concerned by the Director of Audit and Accounts. (Para 98 CPWA Code; Rule 64 DFR) Question :Ans. What are the different source of receipt of stock ?

Material may be received on stock from the following sources :-

Suppliers High Commissioner for Pakistan in U.K.. Other Sub Divisions or Departments (including Government workshops). Manufacturers. Works, Buildings etc. In all cases there should be a proper authority for the receipt by the storekeeper or the sectional officer concerned of the material to be brought on stock. Materials may be issued from stock for the following purposes :for use on works either by issue to contractors or direct. for dispatch to other Sub Divisions, Divisions or Departments. for sale to contractors, employees, other persons or local bodies. Question:How are the issue rates of stock materials fixed and when are they revised ?

Ans. An issue rate is assigned to each new article as it is brought on stock. This rate is fixed on the principle that the cost to be charged to work, on which the materials are to be used, should approximately equal the actual cost of stores and that there may be no ultimate profit or loss in the stock accounts. It should provide, beyond the original price paid, for carriage and other incidental charges, if any, actually incurred on the acquisition of stores. If the issue rate of an article of stock is appreciably less than market rate :Issue to contractors and sale shall, except as provided otherwise, be made at market rates. Issues to other Divisions and Departments may be made at a rage higher than the issue rate. Normally the issue rates will remain constant throughout the half year; but as purchases are made or contractors for the supply of materials are entered into variations in cost should be watched and if these cases shall at once be raised or lowered as may be necessary. Further when closing the half yearly registers of stock, all rates must be viewed and revised, if necessary, to bring them within the market rates. (Para 118 to 120 of CPWA Code ; Rule 6.21 to 6.23, D.F.R.)

What is the fundamental store ? Ans:- The accounts of stores are based on the fundamental principle that the cost of their acquisition should be debited to the final head of account concerned or the particular work for which they are required, if either of these can be determined at once; otherwise, it should be kept in a suspense account pending clearance, as the materials are actually issued, by debit to specific heads of account or works. b) In accordance with this general rule, the cost of the supply of all stores, required as tools and plant for the general use of the division, is debited at once to the minor head Tools and Plan. Special items of tolls and plant, which are required for a specific work, are debited to that work. Similarly, all road metal required for the maintenance of a road or section of a road is debited at once to the minor head Repairs, against the estimate sanctioned for the collection of it. Articles comprised within the head Tools and Plant can only be purchased or manufactured against sanctioned estimates. The powers of officers to sanction estimates for the purchase, manufacture and repair of tools and plant are, the same as their powers to sanction estimates technically under paragraph 68. Ordinarily, material should be purchased only for works in progress. and no reserve of stock should be kept except with the specific sanction of, and to a money limit to beprescribed by, the minor local Government. when road metal is acquired especially for use in the construction of a road or other work, its cost is debited to the estimate for such construction. Material purchased specially for a work are, debited to that work. SUSPENSE ACCOUNTS. 343. The account of the minor head Suspense, sub divided into as many of the five heads named below as may be required, of kept in each division under a single major head of expenditure unless Government has directed otherwise:- (10 Purchases, (2) Stock, (3) Miscellaneous P.W. Advances, (4) London Stores, and (5) Workshop Suspense. These heads are of a temporary character and all transactions recorded under them, are ultimately removed either by payment, or recovery, in cash, or by adjustment. In the case of other materials, when purchases are made for the requirements of works generally, the cost is accounted for under the suspense head Stock, vide paragraph 125 of the Central Public Works Department Code. The transactions, therefore, consist of both debits and credits, the latter being treated as reduction of expenditure when making up the account of the major head. A----- PURCHASES. 344. When materials are received from a supplier or from another division or department, their value should be credited to Purchases and Immediately on their receipt, if the materials for

a specific work, than the cost ,per contra,may be included at once in the accounts of the work and other relevant accounts, as well as the connected subsidiary accounts. 348. The account of this head should be kept in Form CPWA-67, suspense register, the details being recorded in a separate set of folios for each of the two headings (1) purchases for stocks, and (2) Purchases for specific works. B-STOCK. 349. The head Stock is opened in all divisions in which stocks of materials are maintained for general purposes. para 125 C. P. W. D Code. 352. The sub heads of the stock account are: (1) Small Stores, (2) Building Materials, (3) Timber, (4) Metals,(5) Fuel, (6) Painters Stores, (7) House fittings, (8) Miscellaneous stores, (9) Land, Kilns, etc, (10) Manufacture, and (11) Storage. The general account of the receipts, issues and balances of the suspense head Stock should be maintained in the suspense register, Form 67. Name of Form Nature of Use Form CPWA-8 REGISTER OF STOCK / RECEIPTS / ISSUE It comprises of following columns :( Date ( Reference to record measurement for receipt and to indent for order. ( Source from which receive to whom issue with name of work and contractor to whom debitable. ( Head of Accounts. ( Name of Article.

II--- QUANTITY ACCOUNTS. CDA-A- 9 Receipts of Stock. 104. Materials may be received on stock from the followingstores:-. a) Supplies.

b) c) d) e)

Higher Commissioner for Pakistan in U.K.. Other sub divisions, division or departments (including Government workshops). Manufacture, and Works, Buildings, etc.

In all cases there should be proper authority for the receipt, by the storekeeper or the sectional officer concerned, of materials to be brought on stock. This authority should be given in writing by the Divisional Officer or, if so authorized under local orders, by the Sub Divisional Officer. 105. All materials received should be examined and counted, or measured, as the case may be, when delivery is taken. The record of the detailed count of measurement book in the manner prescribed in paragraphs 208 and 209, and the total number or quantity received should be simultaneously entered in the Register of Stock Receipts, Form 8. CDA-A- 10 Issues of Stock. 106. Materials may be issued from stock for thefollowingpurposes:a) For use on works either by issue to contractors or direct (paragraph 237),. b) For dispatch to other sub divisions, division or departments, c) For sale to contractors, employees, other persons or local bodies, vide paragraph 135 (e) of the Central Public Works Department Code. They should be issued only on receipt of an indent (Form 7) signed by the Divisional or the Sub Divisional officer. CDA-A- 11 Half yearly Balance Return. 114 (a) The total quantities of the receipts and issues of each article of stock, as recorded in the monthly abstracts, forms 9 and 10, should before the abstracts are transmitted to the divisional office (vide paragraph 489), be posted in the Half yearly balance Return, Form 11, in the columns provided for the month concerned both under Receipts and Issues As soon as the receipts and issues of the last month of the half year are posted, the closing balances should be worked out and entered both in column 21, Closing balance carried forward, of the return for that half year and in column 6, Balance brought forward, of the return for the next half year. (b) A separate return in this form should be prepared for each of the Half years ending September and March, that for the September half year embracing only transactions up to the date on which the monthly account of the sub division are closed. The return for each half year should embrace all articles in stock. (c) Columns 22 and 23 of the form of the return are provided so as to give the sub divisional and the divisional officers an opportunity of commenting on the condition of the stores or on the rates, and of noticing cases in which the balances are in excess of requirements. Payment for stock received. 116. Bills of suppliers should, before payment, be examined and dealt within the manner prescribed in paragraphs 203 and 212 to 224.to prevent erroneous or double claims being put forward successfully. Storekeepers may, if desired, be required to verify suppliers bills before payment (vide paragraph 105) but the disbursing officer is responsible that no payment is made unless the precautions referred to above have been observed.

117.

Cash payment should not be made for stock received from other sources .

Recoveries for stock issued. Issue Rates. 118. An Issue Rate is assigned to each new article as it is brought on stock. This rate is fixed on the principle that the cost to be charged to works on which the materials are to be used should approximately equal the actual cost of the stores and that there may be no ultimate profit or loss in the stock accounts. It should provide, beyond the original price paid, for carriage and other incidental charges, if any, actually incurred on the acquisition of stores. STORE CHARGES. 121. A storage rate is fixed annually for each Division or sub division on the principle that the total estimated annual expenditure (see paragraph 4 (55) is, as far as possible recovered from tissues likely to be made during the year. On the basis of this rate storage charges are calculated, simultaneously with the book value, for all issues made under paragraph 106. IV. --- HALF YEARLY REGITER OF STOCK. 126. An account should be maintained in the divisional office to record, month by month, separately for each sub division, the transactions relating to each item of stock. This account should be in Form 12. Half yearly register of stock, which is in three parts. Part.1 The register. Part.II The summary. Part.III The Review. 127. Part I should, as regards quantities, be posted monthly from the sub divisional Abstracts Forms 9 and 10 and balanced half yearly, in the same manner as the subdivisional half yearly balance return; see paragraph 114. 128. At the end of the half year, the closing balances of quantities should be reconciled with those shown in the half yearly balance returns received from sub divisional officers, vide paragraph 490. 129. The register should then be closed, the following instructions being observed in respect of money columns 20 to 24:a) Column -24 ( Market rates ) This column should be filled up in respect of each item, under the orders of the Divisional Officer, by a person other than a ministerial subordinate. It should be written up at or about the close of the half year but before any entries are made in the column for future issue rates. b) Column -20 (Current issue rates.) This column will have been filled up at the commencement of the half year, in respect of items brought forward from the previous half year, and subsequently, from time to time, in respect of new items and items the rates of which are revised during the half year. c) Column -21 (Value at current issue rates) This column should be written up at the close of the half year and should represent the value of the closing balance at the issue rates current during the lat month of the half year.

d) Future issue rates (column 22) This should show the rate for issues during the following half year which should be fixed, separately for each item, in accordance with the principles laid down in paragraph 118, but should in no case be in excess of the market rate. e) Value at future issue rates (column 23). This column should show against each item the value of the closing balance at the future issue rate. Part.II, summary, is serve two purposes; (I) to prove the value balances brought out in column 19 of part 1 ,and consequently the amounts of the surpluses and deficits requiring adjustment in consequence of the revision of rates, and (2) to abstract the value balances, so as to bring out, by sub heads of stock, for the entire division, the aggregate value at Current Issue Rates side by side with the balances as shown in the accounts. 131. When part II is completed the Divisional Accountant should write up his report in part III and submit it to the Divisional Officer, who will then review the register of stock and record his remark and orders in part.III. D. ---- MISCELLANEOUS P.W. ADVANCES. 355. Transactions recorded under the head Miscellaneous P.W. Advances are divided into four classes:-. 1) Sales on credit:- When stores of any kind are sold on credit, their value (plus, if recoverable, the supervision charges referred to in paragraph 127 of the Central Public Works Department Code) should be debited to Miscellaneous P.W.Advances under the sub head Sales on credit, so that (1) the accounts of stock or works from which the materials are issued may be kept correctly, and (2) the recovery of the value from the local body or individual concerned may be watched through the regular accounts.

2) Expenditure incurred on Deposit works in excess of deposit received. Outlay on Deposit Works is required to be limited to the amounts of deposits received. Any expenditure on deposit works incurred in excess of the amount deposited is chargeable to Miscellaneous P.W.Advances pending recovery, to effect which action should be taken at once. See paragraph 361. 3) Losses, retrenchments, errors etc. 358. Under the heading Losses, retrenchments, errors, etc., appear the following:-. a) Deficiencies in cash of stock. b) Actual losses of cash or stock. c) Errors in accounts awaiting adjustment. d) Retrenchments and losses of other kinds recoverable from Government servants. 4) Other items. The head Other items is meant for all debits, the allocation of which is not known or which cannot be adjusted until recovery or settlement is effected or write off ordered. The following are cited as examples:- (1) debits, the classifications of which cannot be determined at once, (2) recoverable debits not pertaining to the accounts of a work, and (3)

recoverable outstanding appertaining to works, the accounts of which are closed (vide paragraph 277 and 291). E. --- LONDON STORES. 362. The head London Stores is the suspense head through which are passed all transactions connected with stores obtained through the High Commissioner for Pakistan in the U.K. The objects of this account are (i) that the stores received from England that the stores received from England are brought on the accounts of Stock or works immediately on their receipt, without waiting for the debit for the payments made in England by the High Commissioner, (ii0 that when the debit precedes the stores the receipt of the latter is watched, and (iii) that in all cases agreement is secured between the debit to stock or works, and the payments made in England. F. --- WORSHOP SUSPENSE. 371. When a workshop has been established, the accounts of which are kept in accordance with the rules in Chapter, XIV, all direct outlay on the jobs executed and on other operations of the workshop is passed through the suspense head Workshop Suspense and a separate account is kept under it of each job or operation, so that all charges relating to each, may be collected and charges of a general nature may be suitably distributed over all the jobs or operations affected, before the total cost recoverable is determined. 372. The recorded expenditure on a job is removed from the suspense head only when, and to the extent that, an adjustment is affected against the deposit received or against the service or other head concerned, vide paragraph 383. This removal is effected by a credit to the account of the job. But when any charges are transferred from one job or operation to another, the transfer should be made by plus and minus debit entries. B. --- DORECT AND INDIRECT CHARGES. Direct Charges:381. All capital charges on buildings, plant and machinery and stock materials, and all charges incurred on their maintenance and on the up keep of the necessary general establishment, should be accounted for as ordinary public works transactions under the major head concerned, in accordance with the preceding paragraph and under the general instructions of other chapters of this code. These are charges which neither pertain to any individual job executed in the shops, nor are capable of direct apportionment amongst all the jobs, and are, therefore, met out of the grants of the Department, the distribution of such charges over individual jobs being made in accordance with the rule in paragraph 384. Indirect charges:-

382. All other expenses connected with the operations of a workshop are debitable to the jobs concerned, and should therefore, be accounted for under the suspense head Workshop Suspense, vide paragraphs 371 to 374. The charges pertaining exclusively to any job should be debited to it at once, and those of a general nature should be treated, in the instance, as general charges (under one or more suitable headings) and apportioned subsequently amongst the jobs concerned in accordance with a definite procedure. Tools and Plant. The tools and plant of a division are of two kinds:a) General or ordinary tools and plant, i.e. those required for the general use of the division. The cost of the supply, repairs and carriage of articles of class (a) is charged to the minor head Tools and Plant, b) Special tools and plant, i.e. those required not for general purposes, but for a specific work. whereas similar charges of class (b) are borne by the work concerned. In both case, the cost is charged in the accounts against sanctioned estimates, in the same way as expenditure on works, though for purposes of sanction it is treated as expenditure eon tools and plant. Numerical Accounts. CDA-A- 13 Receipts of T&P.

145. All articles received should be examined and counted when delivery is taken, and the transaction should be posted in the Account of Receipts of Tools and Plant, Form 13. Such acknowledgement as may have to be given to the person from whom the articles are received, can be signed only by the Divisional or sub divisional officers. An acknowledgment should invariably be given when articles lent are received back. Form CPWA-13 ACCOUNT OF RECEIPT OF TOOLS & PLANTS It comprises of following columns :( Date ( Source of receipt with particulars. ( Name of Articles with classification ( Reference vouchers numbers and date and adjustment of value (to be Divisional Office) CDA-A- 14 Issues of T&P.

filled in

146. All transactions of issues (including those of articles referred to in paragraph 144) should be posted in the Account of Issues of Tools and Plant, Form 14. Except in the case of cash sales, unstamped but dated acknowledgement must be obtained in support of all issues, and in the case of tools, etc. lent to contractors, such acknowledgments should further set forth the valuation of the articles lent. As determined by the Sub divisional Officer. See also Note 1 below paragraph 108.

Form CPWA-14 ACCOUNT OF ISSUE OF TOOLS & PLANTS It comprises of following columns :( Date ( Reference to receipt or voucher accompanying ( To whom issued with particulars etc. ( Name of article with classification ( Reference to recovery of value (To be filled in Divisional Office) CDA-A- 15 Register of Tools and Plant.

147. A consolidated account of the receipts, issues and balances tools and plant should be maintained in the sub divisional office in Form 15, Register of Tools and Plant. This account should be for the twelve months ending September, that is, it should embrace transactions up to the date on which the accounts of the sub divisional for that month are closed. It should be kept in three parts:Part.1. ---For articles in hand. Part II. ---For articles temporarily lent or sent paragraph Part III. ---- For shortages awaiting adjustment. In part I articles should be grouped under the prescribed sub heads which are (1) scientific instruments and drawing materials, (2) Plant and machinery, (3)Tools, (4) Navigation plant, (5) Camp equipage, (6) Live stock, and (7) Office furniture, In Part II the entries should be made is a separate section for each contractor or other person to whom the article or lent or sent out for repairs, etc. part III is brought into use only if any shortages come to notice, and the instructions relating to it are given in paragraph 160. 148. Parts I and II of the Register should be posted thus. a) The Accounts of Receipts and Issues, Forms 13 and 14, should first be totaled up monthly when closing the accounts of the month. b) The total receipts and issues of each article thus arrived at should be posted in Part I of the Register, Form 15, in the columns for Receipts and Issues respectively. c) Each separate transaction connected with articles lent or sent out (vide paragraph 144) should further be posted in part II in the section reserved for the contractor or person concerned, articles lent, etc, being shown under Debits and those received back under Credits.. Form CPWA-15 REGISTER OF TOOLS & PLANTS It comprises of following columns :( Class ( Item Number ( Name of Article. ( Balance brought forward ( Month-wise receipt from October to September

( ( ( (

Total receipt and balance. Total issues from October to September Closing balance carried forward Remarks.

Rectification of Accounts. 138. Clerical errors in value accounts of stock should be dealt with generally under paragraph 79 see also paragraph 115. Corrections of errors discovered after the accounts of the month are closed. Should, when permissible, be made (i) by making entries of value (without quantities) in the stock accounts of the current month when no change is to be made in the head of account affected, and (ii) by preparing transfer entries in other cases. 139. Other corrections in Stock accounts may be necessary in the following cases:When quantities are found surplus or short, either as the results of stock taking, or otherwise vide paragraphs 131 and 130 of the Central Public Works Department Code. When Issue Rates have to be raised or lowered vide paragraph 119. When stores of any description become unserviceable (vide paragraph 129 of the Central Public Works Department Code) and have therefore, to be removed from stock. 140. These corrections should be effected in the flowing manner:a) Both in quantity and value accounts, all additions to quantities should be treated as Receipts and reductions there in as Issues, a suitable remark being made in the entries in Forms 8,9 and 10 See also paragraph 134 and 135. These entries must be made as soon as differences in quantities come to notices but in the case of materials to be declared unserviceable, no adjustment should be made until receipt of orders of competent authority which should be obtained on a survey report in Form 18. b) Alterations in rates made when closing the Register of stock should be carried out as indicated in paragraph 129 (d). Those made on other occasions should be noted at once in Part.1 of the register of stock by making a fresh entry (with the month of change) in column 20. The resultant rectification of the value of the stock balances should in all cases be made only when the register of stock is closed, vide paragraph 129 (e). The adjusting entries referred to in that paragraph should, however be cleared on receipt of orders of competent authority, this clearance being effected by making suitable value entries, without any quantities, in the abstract of receipts and issues, Forms 9 and 10 as the case may be the value being classified in accordance with the principle enunciated in paragraph 135. 141. No correction will be made in the accounts in respect of stores declared to be in excess of requirements, vide paragraph 126 of the Central Public Works Department Code. Such stores will continue to be borne on the Stock account until transferred elsewhere or otherwise disposed of in the ordinary course. VI. --- Rectification of Accounts. 159. Clerical errors in the numerical accounts should be dealt with in the manner prescribed in paragraph 115 for stock accounts except that no transfer entries will be necessary. 160. Discrepancies in quantities and losses should be dealt with as under:When they are noticed, action should be taken as indicated in paragraph 158, losses being treated

as deficiencies. When writing up the Register, Form 15, the deficiencies should be registered in part III under Debits and their clearance should be watched. Articles found surplus will be treated as receipts in part I, and will, therefore, require no further action. If the deficiencies are made good in kind, the receipt or recovery should be shown in the Account of Receipts, Form 13, without making any entry in the quantity columns, and, when posting the Account into the Register, Form 15, the articles received should not be entered in Part 1, but taken (with a suitable remark) direct to part III, under Credits, in clearance of the debit outstanding therein. If the deficiencies are made good by recovery of cost or their write off is sanctioned the articles should be shown, as issued, in the Account of Issues, Form 14, with a suitable remark, and when this entry is transcribed into the Register, Form 15, it should not only be entered in Part 1 in the ordinary way, but also entered with a suitable remark in Part III, as in case (c ), thus clearing the debit outstanding therein. Note:The authority to write off should be obtained on a Survey Report in Form 18.

D. ---- ROAD METAL. 1. ---- Quantity Accounts. 161. Supplies of road metal should be measured and paid for in the same way as supplies of other materials for works, vide Chapter X. But as metal is often kept is stores at the road side before being laid down, a quantity account of it should be maintained in the sub divisional office in Form 16, Statement of Receipts, Issues and Balances of Road Metal, Copies on losses sheets being submitted monthly to the Divisional Office within a fortnight of the submission of the monthly accounts. Note.1:The authority to write off should be obtained on a Survey Report in Form 18. Note.2:This statement should show, mile by mile, the receipt, disposal and balances of road metal each of road metal of each kind (stone kunker, etc.) The balance of metal in each mile should be shown, whether there are nay transactions on it during the month or not. Note.3:Separate statement should ordinarily be kept for metal collected for annual repairs, for renewals and for petty repairs. 162. In respect of metal required for new roads of for renewal purposes, the maintenance of this detailed account showing the receipts, issues and balances, mile, may be dispensed with by the Divisional Officer, Provided. 1) That he should maintain in his own office, a register in a form similar to Form 35 (without values) showing, separately by each road or section of a road, the quantities of metal of each description paid for, month by month, in connection with all estimates for collection, and. 2) That, whenever any executive officer or subordinate responsible for any part of the balance of the metal is transferred the accounts pertaining thereto should be verified. This verification should be generally on the lines prescribed in paragraph 252, et seq, the consumption since last verification being computed on a consideration of the work of construction or renewal actually done in connection with all estimates relating to the road or section For this purpose, form 37 may be used with advantage. IIRectification of Accounts.

163. Metal found surplus, as the result of check measurement (vide paragraph 37 of the Central Public Works Department Code) or otherwise should at once be brought on to the quantity accounts. Deficits should however, not be removed from the quantity accounts until recovery of their value or receipt of sanction to write off, but a red ink remark should be recorded at once and carried forward, from month to month, until the discrepancy is set right. III --- Schedule of Rates. 164. A rate book or schedule of Rates showing the lowest rate at which metal can be supplied to the road side through the division, should be kept in the divisional office in Form 17, with such modifications as may be considered necessary to unit local conditions. The rates should revised from time to time, as old quarries are exhausted or new ones opened, or as other circumstances affect the rates. See also paragraph 296. IV. --- Charges for Quarries. 165. When land is acquired for extracting road metal primarily intended for. i) The maintenance of an existing road or. ii) The construction of a new road or the rising in class of an existing road. The following principles of accounting should be followed in adjusting the charges connected with the land and quarries. a) When the charges do not exceed Rs.1000, the amount should be debited direct to Repairs or to Original Works, according as the quarry is intended to serve the purposes specified in clause (i) or (ii) above. b) When the charges exceed rs.1000 and the road metal is required to maintain an existing road or roads for a series of years, the total initial outlay should be debited to the sub head Land, Kilns, etc, of the stock account, and this sub head should be gradually relieved, by debit to the collection estimates of each year. In the manner prescribed in paragraph 335 for similar charges connected with manufacture operations. c) When the charges exceed Rs.1000 and the road metal is required for the purpose specified in clause (ii) above, the Divisional Officer should charge direct to the original work concerned such portion of the cost as is proper. The balance, if any should be debited to the such head Land and Kilns, etc. of the stock account, and this sub head should eventually be cleared by debit to Repairs in the manner prescribed in paragraph 335 (b). E. ---- MATERIALS CHARGED TO WORKS. 166. The account procedure relating to materials obtained specially for a work is described in chapter X. Special tools and plant charged to works do not fall under the category of Materials charged to works, vide paragraphs 142 and CDA-A-18 Survey Reports. 129. When stores of any kind become unserviceable, a report thereof should be made in Central Public Works Account Form No.18, This should be done at once on discovery of the fact.

130. All losses of stock should be immediately investigated and steps taken to obtain the sanction of competent authority to their write off, if necessary, see also paragraph 47 of General Financial Rules. Note;- In the case of serious losses, the Divisional Officer should hold a departmental enquiry, and record the evidence and his findings thereon, including a finding as regard the responsibility and culpability of the persons concerned. CDA-A- 19 For Sales and Transfers.

155. The Subdivisional Officer is responsible that when tools and plant are disposed of by sale or otherwise, with the sanction of competent authority, the amount recoverable from the parties concerned is realized at the earliest opportunity. If the amount is not recovered within the month in which the articles are delivered, it should be charged to Miscellaneous P.W.Advances as a sale transaction, by the issue of a transfer entry. Note. ---A sale Account in Form 19 should be prepared in support of every transaction. 126. All articles of stock (not including tools and plant) which are not likely to be required during the following twelve months, should be reported to the Divisional Officer who will, if necessary, take the Superintending Engineers orders as to their disposal. When stock materials are sold to the public or to other departments, an addition of 10 per cent, must be made to cover such charges on account of Supervision, storage, and contingencies as are not provided for in the rates fixed under paragraph 193 and 195-A of the Central Public Works Account Code. This addition may, however, be waived by the officer empowered to sanction the sale in the case of surplus stock which in his opinion, would otherwise be unserviceable. See also paragraphs 193, 195, and 437 of the Central Public Works Account Code. Except as provided in paragraph 127, no public stores may be sold otherwise than by public auctions, without the permission of the Superintending Engineer Commission, which should ordinarily not exceed 5 percent, may be allowed to the auctioneer, not being a departmental subordinate, but no commission can be allowed on private sales. CDA-A-35 Material Account form. 1) That he should maintain in his own office, a register in a form similar to Form 35 (without values) showing, separately by each road or section of a road, the quantities of metal of each description paid for, month by month, in connection with all estimates for collection, and. 2) That, whenever any executive officer or subordinate responsible for any part of the balance of the metal is transferred the accounts pertaining thereto should be verified. This verification should be generally on the lines prescribed in paragraph 252, et seq, the consumption since last verification being computed on a consideration of the work of construction or renewal actually done in connection with all estimates relating to the road or section For this purpose, form 37 may be used with advantage. Note:- When stores are sold by auction, responsible officer or subordinate should attend and record the final bids, in order to enable the sale accounts rendered by the auctioneer to be

checked. WORKSHOP ACCOUNTS. 375. The accounts to be kept in a workshop depend on the extend of the operations and the size of the shops. 376. When there is a small shop in a division for the execution of repairs to tools and plant or of small manufacture jobs, the accounts of works executed in such shops should be kept in the forms prescribed for repair works or manufacture operations as the case may be. 377. Larger workshops, with special plant or machinery are treated as separate sub divisions, or division, for account purposes. When such workshops are of the character of quasi commercial undertakings the system of accounts will be that prescribed locally for similar undertakings when they are run mainly for departmental purposes, the accounts should be kept in accordance with the instructions laid down in this chapter, in will be settled by the local administration in respect of each workshop in consultation with the Accountant General. 378. For every job there must be an estimate of cost (providing for all charges, including the prescribed percentages for indirect charges, vide paragraph 384) sanctioned by competent authority and accepted by the indenting officer, local body or individual; see also paragraph 379. The amount to be realized from the indenting party will, however, be based on the actual cost including indirect charges, though the authorized limit of cost, which the officer in charge of workshop may incur without further authority, is that shown in the accepted estimate. Note:- If the execution of a job for another division, department or Government is likely to extend beyond one financial year, the limit of the cost which may be incurred in each official year should also be settled beforehand. 379. No work should be undertaken for municipalities or private parties before the whole estimated cost, including all charges for supervision, profit, etc., that may be leviable under the rules for the time being in force, has been paid to the Divisional officer, or into a treasury to the credit of the Public Works Department. This rule may be relaxed at the discretion of the Divisional Officer, or Superintendent of the work shop, in the case of Government Officers where full recovery is not open to doubt. In such cases a rough estimate of the probable cost must be prepared in advance and the officer concerned required to give an undertaking that he agrees to pay the actual charges in full on completion of the work. The full expenditure incurred must be deducted from the officers pay for the following month. In all cases, prior to work being put in hand, an undertaking should be procured from the party concerned that it will not hold the Department responsible for loss by fire or theft or any other factor which could not be foreseen, when the estimate was prepared. In cases where it is found that the original estimate is likely to be appreciably exceeded, a revised estimate should be prepared and the procedure outlined above adopted. The cost of the operations should be charged monthly to the head Miscellaneous P.W.Advances pending recovery. . MANUFACTURE ACCOUNTS. 330. When materials are manufacture departmentally, either for the general requirements of works or for a particular work, a separate account, called a manufacture Account, must be kept of the transactions connected with each manufacture. See also paragraph 376. 331. The detailed accounts of the expenditure on a manufacture are maintained in the

same way as the accounts of a work and, in addition, an account is kept of the quantities and values of the products of the manufacture. The two sections of the accounts are known, respectively as the operation and the outturn accounts. 332. The ordinary forms of the registers of works are unsuitable for recording the progress of the transactions of a manufacture. Form 42, register of manufacture, should be used instead. 333. It is essential that the accounts of a manufacture shall not remain open indefinitely. If the operations are seasonal, the accounts of each season should be kept separate and closed as soon as the operations are closed. In cases in which operations are continuous, the accounts must nevertheless be closed periodically, but at least once a year. B. --- OPERATION CHARGES. 334. A Manufacture Account is debited directly with (1) the value of raw materials issued from stock or obtained otherwise, (2) the cost of the labour employed, and (3) other incidental charges connected with the operations. 335. The following directions apply to certain special incidental charges:-. a) Capital charges, such as the cost of lands, kilns, special plant, etc, incurred in connection with a manufacture which does not extend beyond a single seasons, are debited wholly to the account of the manufacture. b) Capital charges in connection with a manufacture extending over more than one season should be debited, in the first instance, to a special account under the sub head Land, Kilns, etc. of the Stock account. This account should also be debited with the cost of repairs and renewals of the kilns, etc. all these charges should be recovered in suitable installments by debit to the operation accounts of the several seasons, the number of installments and the amount chargeable for each season being determined on the merits of each case, under the orders of competent authority. Note.1:The decision as to the suitable installments whereby the Land Kilns, etc. account is to be cleared periodically, as given by the authority sanctioning the initial charge, should be recorded in the Register of Stock, Form 12, and not deviated from without the further orders of that authority. Note.2:When the land, kilns, plant, etc, acquired for departmental manufacturer operations are leased to a contractor of the division or other person, the rent charged should be credited to this special account and not to Revenue. c) If the manufacture is undertaken on behalf of other division departments or Governments or of local bodies or individuals a charge should be made on account of establishment, and tools and plant, if leveiable under the rules, vide appendix 5 for outlay on works undertaken on their behalf. d) Save a provided in clause (c ) above, no charge is permissible on account of the general establishment and ordinary tools and plant charges, or on account of interest on the capital cost of the land, kilns, plant, etc, though all these charges should be included in any proforma accounts of the manufacture operations of the division, which may be prepared under the orders of the local administration, with a view to compare the cost of articles manufactured departmentally with the rates charged by suppliers. 336. The accounts of road metal digging are not treated as manufacture accounts, but the charges connected with land and quarries acquired for such operations should be dealt with in

accordance with paragraph 165. C. --- VALUE OF OUTTURN. 337. A manufacture account is credited with the values of the manufactured articles and of the surplus materials sold or otherwise disposed of (paragraph 251). 338. The outturn account referred to in paragraph 331 should so month by month, the quantities and values of each class of articles manufactured, compared with the corresponding figures shown in the estimate (if any). The detailed account for each month should be prepared in Form 36, Outturn statement of Manufacture, and should be attached to the Works Abstract for the operation. 339. The rates for valuing manufactured articles should be so fixed as to represent, as accurately as possible, the actual cost of manufacture per unit, but should not exceed the market rates. CHEPTER 13 , PUBLIC WORKS DEPOSITS.

DEPOSITS. 388. Deposits transactions of the Public Works Department are of two kinds:-. i) Public Works Deposits, which pass through the regular accounts of the division. Deposits of the first kind comprise transactions of the following classes, which are passed through the head public works deposits:- Cash deposits of subordinates as security. - Cash deposits of contractors as security. - Deposits for work (other than Takavi Works) to be done, - Sums due to contractors on closed accounts, - Miscellaneous deposits. 389. Security deposits of subordinates and contractors, whether made in cash or forms of security referred to in paragraph 390. ii) Interest bearing securities.

390. The recognized forms of interest bearing securities and the rules to which they are subject, are indicated below:-. a) Government securities other than Post Office 5-Year Cash Certificates. Under the rules in chapter IX of the Government Securities. Manual issued by the authority of the Central Government. Under the rules for post office 5- year cash certificates and for depositors in post office savings banks issued under the authority of the Central Government. b) c) Municipal Debentures and port trust bonds. Post Office 5-Years Cash certificate.

d)

Post Office Savings Bank Pass Books.

e) Deposit receipts of recognized banks approved. 391. Government paper tendered as security shall be taken at its face value. 394. Percentage deductions for security deposit made from contractors, bills, should be credited to the head Public Works Deposits Cash deposits of contractors. 395. Without the special orders of competent authority, no security deposit should be repaid or retransferred to the depositor, or otherwise disposed of, except in accordance with the terms of his agreement or bond. The depositors; acknowledgement should be obtained in all cases of security returned, when an interest bearing security is returned or retransferred, the acknowledgement should set forth the full particulars of the security. C. --- OTHER DEPOSITS. 396. Deposits for works other than takavi works are passed through the head Public Works Deposits, such works are known as deposit works. II. --- Contractors Closed Accounts. 397. Under the rules in paragraph 277 sums due to contractors on closed accounts may be placed in the Deposit account. III. --- Miscellaneous. 398. All other deposits are classed as Miscellaneous Deposits. This head also hold, until clearance. -all item of receipt, the classification of which cannot be determined at once, -or which represent errors in accounting awaiting adjustment. D. --- LAPSED AND CONFISCATED DEPOSITS. 399. In the accounts for March each year, the following classes of items in the Public Works Deposits account should be credited to Government as lapsed deposits:-. i) Original deposits not exceeding one rupee remaining outstanding for one whole account year. ii) Balances not exceeding one rupee of items partly cleared during the year then closing. iii) Balances unclaimed for more than the three complete account years. Note:For the purpose of this rule the age of a repayable item or of a balance it is to be reckoned as dating from the time when the item or the balance, as the case may be, became first repayable. See also the note below rule 635 of the treasury rules. 400. Deposits credited to Government under paragraph 399, or confiscated under the provision of an agreement or bond, cannot be repaid without pre audit by the Accountant General who will authorize payment on ascertaining (1) that the item was really received.

(2) that it was credited to Government as lapsed or confiscated, (3) that the claimants identify, and title to the money are certified by the Divisional Officer. The amount repaid should be treated as a refund of receipts under the major head to which it was credited and the repayment should be noted in the deposit register against the entry for its credit to Government, vide paragraph 189. E. --- ACCOUNTS OF PUBLIC WORKS DEPOSITS. I. Deposit Register. 401. A record of the transactions relating to Public Works Deposits should be maintained in the Divisional Office in a register in the same form as the suspense register, Form 67. This Deposit Register should show, month by the month, the total receipts and adjustments and the closing balance of each separate deposit item. Deposits for work to be done which are accounted for in detail in the schedule of Deposit works, form 65, a single entry for all such deposits will suffice. II. Schedule of Deposits. 402. From the Deposit Register a monthly extract, known as the schedule of Deposits, Form 78, and showing for each item the opening balance, the receipts and adjustments of the month, and the closing balance, should be prepared for submission to the Accountant General. The entry for work to be done will be supported by the schedule of Deposit Works. form 79, This form is in two parts part.1, abstract Account, giving the totals for each class of deposits, and part II, Detailed extract from the deposit register. In Part II, only affected items by the months transaction,be extracted from the Deposit register but in the schedules for the months of June, September, December and March all current items should be shown, including those not affected by the months transactions. F. --- ACCOUNTS OF INTEREST BEARING SECURITIES. 403. Transactions connected with interest bearing securities do not pass through the cash book as well as regular accounts of the Division. A register of the receipt and disposal of securities kept in Form 85, Register of interest bearing Securities and at the close of the year an account in Form 86, Account of Interest bearing Securities, should be prepared from this register for submission to the Accountant General. This account should be supported by the acknowledgments (in original) of the depositors for securities returned or retransferred to them during the year -and (2) the certificate of the Divisional Officer that all securities shown as outstanding in this account, or their acknowledgements by the authorized custodians (vide paragraph 390) are in his possession. NON GOVERNMENT WORKS. 404. Non Government Work are divided into three classes: -- (1) Deposit works (2) Local

Loan Works, and (3) Takavi Works. 405. The general direction for the exhibition in accounts, of transactions relating to contributions from Central Revenues to Local Funds and public bodies, and vice versa, as contained in Article 34 of the Account Code, Volume I, is reproduced below:-. Contributions made by the Central * * Government to District Boards, Municipalities etc, or vice versa, shall be debited as expenditure or shown as receipts (as the case may be ) under the head of account most closely connected with the object for which the contributions are made. her with the percentages should be debited against it. 408. For every Non Government Work there must be a duly sanctioned detailed estimate or requisition, as the case may be, in the same way as for a Government work. I. ---DEPOSIT WORKS. 108. The department may occasionally, at the discretion of the minor local Government be called upon to execute works for which the outlay is provided wholly or in part from. a) funds of a public nature, but no included in the financial estimates and accounts of the Government. b) contributions from the public. Minor local Government may delegate the power of authorizing the undertaking of deposit works to Chief and Superintending Engineer and to Divisional Officers, subject to such limitations and restrictions as they consider suitable. 109. Where a work is to be carried out partly from funds provided in the estimates of the department and partly from funds of the foregoing nature, the contribution will be considered as a lump sum in addition to the Government grant, and the work executed in strict accordance with the procedure laid down for central works. 111. In cases where the department undertakes to design and construct a work wholly from the sources alluded to in paragraph 108, such as a town hall or reservoir for a Municipality or a school or hospital for which funds have been raised by subscription, the following rules will be observed:-. I. The design and estimate will, in the first instance, be drawn up in communication with the party or parties depositing or administering the funds, and must be submitted for the technical sanction of such departmental authority. II. Provision must be made to cover the cost of establishment, tools and plant, accounts and audit, at such percentages as are prescribed in the Central Public Works Account Code. Prior to the work being put in hand, a written approval to the estimate and design must be obtained from the authority depositing. the department does not bind itself to complete the work within the amount of the estimate, and that the authority depositing (administering) the funds, agree to finance any excess that may occur. The necessary funds for the execution of the work must be realized and paid into the Government treasury either in a lump sum or in such installments and by such dates as the minor local Government may decide in each case. It will be the duty of the officer in charge of the work to bring at once to the notice of his

superiors and of the local body or individuals any anticipated excess over the estimate, as well as to provide the fullest information in connection with the progress of expenditure, so that no responsibility may attach to Government in the event of the work having to be stopped for want of funds. 409. When a Deposit work is to be carried out, the local body or other party concerned should advance the gross estimated expenditure, which is payable by it, to the Divisional Officer in one lump sum, or in installments, and by such dates as may be specially authorized by the local Administration. A consolidated record of the transactions of a month relating to all Deposit work of the division should be prepared in Form 65, Schedule of Deposit Works. This schedule shows, in respect of each work, the amount of deposit received and the expenditure incurred, both during the month and up to date. Note:Refunds of unexpended balances of completed works should be taken in reduction of the deposit and, therefore, shown in the schedule as minus realizations and not as expenditure. II. District Fund Works. 413. Deposit Works executed on behalf of District Boards. 414. All expenditure on works incurred on behalf of a District Board should be recorded in the accounts of Public Works officers as debitable to the head Deposits of Local Funds --District Funds. 415. A schedule of Works expenditure in Form 63 should be prepared, and the total expenditure of the month should be shown separately for each District Board in the schedule of debits to Miscellaneous heads of Account, Form 76. 416. No deposit account of such works should be kept in the division, nor should District Boards be required to deposit the cost of works as the expenditure incurred monthly will be adjusted against the funds of the District Board concerned by the Accountant General. 417. The percentage leviable (vide paragraph 411) should be adjusted month by month as the works expenditure is brought to account. III. --- Municipal, Cantonment and Port Trust Fund Works. 418. The special rules in paragraph 414 to 417 will apply to Deposit works of Municipal, Cantonment and Port Trust Funds, whose balances are lodged in the Government Treasury. C. --- LOCAL LOAN WORKS. 419. The rules (Rules 663 of the Treasury Rules, Volume 1) under which payments on account of Local Loan Works may be made in the Public Works Department are reproduced

below:-. i) Every loan granted to a State, which has acceded to Pakistan, Municipality, port Trust, or any other quasi Public body or person will be recorded in the books of the Accountant General and no part of it can be issued except under his authority. ii) No department or Government Officer may incur any expenditure or any liabilities against a sanctioned loan, unless a statement in writing is first obtained from the Accountant General that the amount is available out of such a loan and has been placed in a separate account so as to be available for the proposed expenditure. 420. Expenditure on a Local Loan Works, including the portion of expenditure on a joint work, which is incurred against the sanctioned loan in accordance with the foregoing rules, and under orders of competent authority, should be accounted for under the head Q --- Loans and Advances by the Central Government and shown in the Schedule of Debits to Miscellaneous heads of Account, Form 76, supported by a Schedule of Works Expenditure. 421. All charges debitable to a loan should be brought to account as they occur, so that the interest charges may be correctly calculated and adjusted in the Accountant Generals Office. Note:- This rule applies also to the percentages (vide paragraph 411) leviable under the rules which should, therefore, be adjusted monthly by inclusion in the schedule of works expenditure. 422. The limit of funds set aside for expenditure on a work during the year should be ascertained from the Accountant General by the officer authorizing the expenditure, and communicated to the Divisional Officer for guidance. This limit should be treated as the appropriation for the work and should not be exceeded without special orders. D. --- TAKAVI WORKS. 1. --- Provision of Funds. 423. No estimated cost of a Takavi Work shall be deposited by the person or persons interested in the work, before expenditure is incurred on it, as, if the amount due is not received in cash direct from the, it is recoverable through the District and Revenue Authorities in the same way as arrears of Land Revenue. Endeavor should, however, be made to effect direct and prompt recoveries of the probable costs of Takavi Works, as recoveries through the District and revenue Authorities cause considerable trouble and delay in adjustment. IV. --- Water Courses. 428. The following rules apply to such water courses only as are classed as Takavi Works. The account rules relating to water courses of other classes are given in Appendix.4. III. --- Recovery through District and Revenue Authorities. 427. The following procedure is prescribed for effecting recoveries, through the District and Revenue authorities, on account of the cost of individual Takavi Works, not covered by cash deposits received directed from the cultivators concerned:-. a) A certificate showing (1) the full name of the work, (2) the name and address of the responsible cultivator or cultivators, (3) the authority for undertaking the work, (4) the total expenditure incurred, (5) the amount (with full particulars), if any, recovered in cash, and (6) the

net amount still recoverable, should be prepared, in duplicate, by the Divisional Officer, on the completion of the work (see paragraph 426), and submitted to the Collector or Deputy Commissioner of the District concerned. b) On receipt back of the duplicate copy, duly accepted, the amount accepted should be credited, on the authority of it, to the Takavi Works Advances account by debit to the head Q--Loan and Advances by the Central Government Advances to Cultivators in the Schedule of debits to Miscellaneous heads of Account. Form 76, as the District and Revenue Authorities will thereafter be responsible for effecting the necessary recovery. CHEPTER 14, LUM SUM CONTRACT & ACCOUNTS.

313. In a lump sum contract the contractor agrees to execute a complete work with all its contingencies in accordance with the drawings and specification for a fixed sum, the following being its essential characteristics:i) A schedule of rates is specified in order to regulate the amount to be added to or deducted from the fixed sum on account of additions and alterations not covered by the contractor. ii) Except as provided in clause (1) no allusion is made in the contract to the departmental estimate of the work, schedule of rates or quantities of work to be done. iii) Detailed measurement of the work done are not required to be recorded except in respect of additions and alterations. 314. The form of contract is prescribed by Government in consultation with its Law Officers. As the account rules herein contained are based on the assumption that the essential conditions mentioned above will be observed in drawing up contracts, it is necessary that, before the form is finally determined, the advice of the Accountant General should be sought on the question whether the form proposed meets the requirements of audit. PAYMENTS FOR WORK DONE. 315. Subject to the terms of the contract and such subsidiary instructions as may be laid down by the local Administration to ensure that the works are executed in accordance with the prescribed specification, plans and drawings, payments for work done are not made to the contractor otherwise than on the certificates of the officers in charge of the work. 316. Whenever it is proposed to make any intermediate payment a certificate should be given by a responsible officer of Government (not below the rank of sub divisional officer) to the effect that. By superficially or general measurement or by some other suitable method laid down by the local administration (which should be specified), he had satisfied himself that the value of the work done is not less than a specified amount in conformity with contract agreement and that, with the exception of authorized additions and alterations, it has been done according to the prescribed drawings and specification. 317. In the case of final payments, in addition to a record of detailed measurements in respect of additions and alterations, there should be a certificate of completion of the work according to the prescribed drawings and specification signed by the Divisional Officer or such other officer

as may be declared by the local Administration to be an experience engineer of Government for the purpose. Note.:-In exceptional cases, such as that of the execution of a work in a border country under the supervision of a responsible civil officer without the intervention of the public works department, a completion certificate signed by the civil officer concerned may be accepted, if he is empowered by the local administration to sign it. 318. In order that a proper financial control may be exercised over the payments made, it is necessary that the accounts of additions and alterations should be kept quite distinct from those of the rest of the work. There is no objection to payment for additions and alterations being made before the completion of the work, if the detailed measurements of them have been made. FORMS OF BILLS. 319. The forms of bills used for payments in connection with lump sum contracts are Forms 27-A and 27-B. 320. Form 27-A is intended for intermediate payments which may be made to the contractor in accordance with his contract. No details of work done need be reproduced in the bill, but a reference should be given to the number and page of the measurement book in which the measurements of additions and alterations are recorded. The form provides for the secured advances, if any, which under paragraph 228 (a) may be allowed to the contractor. When such advances are allowed, an indenture in form 31, should invariably be obtained from the contractor and a detailed account of the materials should be kept in part II of the bill in the manner described in paragraph 226. No record of the materials need be kept in the measurement book; the certificate (3) printed on the bill must, however, be signed by the responsible officer in terms of paragraph 228. 321. Form 27-B, is intended for final payments made to a contractor. The details of additions and alterations alone should be given in the bill. For the rest, the certificates prescribed in paragraph 317 will be sufficient. As a further precaution, the contractor should be required to add to his acknowledgment in his own handwriting a statement that he has received the payment in full settlement of all demands, see, however, Note I below paragraph 224 (b). Note.:- The form of final bill may be printed on yellow paper to distinguish it from that of the running bill (see note 2 below paragraph 224 (b). E --- CONTRACTORS LEDGER. 327. Accounts of the transactions relating to lump sum contracts should be maintained in the contractors ledger, form 43, in the manner described in section G of chapter X, subject to the following subsidiary instructions. 328. As all intermediate payments made on Form 27-A are regarded as advances, no figure there from will be posted in column 9, which is intended to show the amount creditable to contractors account on account of the value of work done. The first and last entry which will appear in this column will be the figure F given in part I of the final bill from 27-B. Column 10 need not be posted at all. 329. Figures for posting the other columns 4,5,6 and 8, are indicated in the bills (Forms 27-A and 27-B) by the same distinguishing letters D.E, G and H respectively. Which have been used to denote the corresponding entries in the ordinary bill forms 25, 26 and 27.

CHEPTER 15, MISCLEINESE ( GENERAL). BUILDINGS (Public )FIXTURES. 112.Every public building should be provided with all necessary fixtures, and the repair of these should be carried out periodically as part of the repairs to the building. All petty repairs of fixtures and the replacement of broken glass in doors and windows required during the intervals between periodical repairs, will, however, ordinarily be carried out by the officer using the building, see item 16 of appendix 8 to General Financial Rules. RESIDENCES (HIGH OFFICIALS) FURNITURE . 113.The administration of the furniture funds of the official residence of the heads of minor local Governments and other high officials including the upkeep of a stock list and the purchase, repair and maintenance of furniture, will be conducted by P.W.D. under rules of the Government of Pakistan. The officer responsible for the administration of the furniture grant is required to furnish to the Audit Officer concerned an annual certificate of verification of furniture by the p.w.d. PURCHASE OF BUILDINGS. 114. No authority lower than a minor local Government is competent to authorize the acquisition of a building by purchase, even though the purchase or construction of the required accommodation may have been sanctioned by competent authority. In all such cases a survey and valuation report by the Divisional Officer should be submitted to the minor local Government. SALE OR DISMANTLEMENT OF BUILDINGS. 115. No public building, which is not a purely temporary structure, may be sold or dismantled without the sanction, previously obtained, of the Government of Pakistan, if its book value exceeds Rs.10000 or, in other cases, of the minor local Government or the Chief Engineer, Central Public Works Department, as the case may be. REGISTER OF IMMOVABLL GOVERNMENT PROPERTIES. Each Divisional Officer will maintain a register in the prescribedform ofall immovableGovernmentpropertiesinchargeofthedepartmentwithin his division. FORMS AND RECORDS. 17. Standard forms included in the book of standard forms published by the Government of Pakistan must be utilized and may not be altered without the previous sanction of that Government. 18. Where a definite period after which records may be destroyed has been prescribed by the Government of Pakistan, Divisional Officers may, on the expiry of that period, order the

destruction of such records in their own and subordinate offices. Superintending Engineer are competent to sanction the destruction of such other records in their own and subordinate offices as may be considered useless. The destruction of records which appertain to the accounts of the department is governed by paragraph 598 of the Central Public works Accounts Code. A record of the papers destroyed should be maintained, but the following should on no account be destroyed:Records connected with expenditure which is within the statute of limitation. Records connected with expenditure on works not completed although beyond the period of limitation. Records connected with claims to service and personal matters connecte with persons in the service. DESTRUCTION OF RECORDS. 550. The destruction of account records in Public Works Offices is governed by such rules as may be prescribed by Government with the concurrence of the Accountant General, provided that, in cases not covered by such rules, the specific concurrence of the Accountant General is necessary before any records are ordered to be destroyed, and that in each Divisional Office full details are maintained permanently in Form 97 of all records destroyed from time to time. B- GRANTS AND THEIR DISTRIBUTION. 33. A grant or supplementary grant may be in respect of expenditure (vide paragraph 14) falling under one or more major heads or sections of a major head. For purposes of financial control, the grant allotted to each major head of account is divided into primary units of appropriation, each of which may be divided and sub-divided, as may be necessary, into secondary units of appropriation. Examples.---- The grant for Civil Works is broadly divided into the following primary units of appropriation. (1) Original Works, (2) Repairs, (3) Petty construction and repairs by Civil Departments, (4) Establishments, (5) Tools and Plant, (6) Grants in aid, contributions, etc., (7) Suspense, (8) Charges in England, (9) Loss or gain by exchange and (10) Reserve Any sub Divisions of the primary units, e.g, (a) Original Works into Major works, Minor Works, etc (b) Establishment into pay of officers, pay of Establishment, other charges, etc, is known as secondary units of appropriation. A secondary unit of appropriation may again comprise one or more detailed heads, e.g, pay of officers comprising detailed heads like consulting Engineer, Chief Engineer, Superintending Engineer, Architect, etc, sometimes a primary unit is split up straight into detailed heads, i.e. without being first broken up into secondary units, eg. Grants in aid, Contributions, etc. 34. The procedure relating to the preparation of demands for grants to the appropriation and appropriation of funds, to the distribution of funds and to budget materials generally, is laid down in the General Financial Rules. The rules special to public works are laid down in Appendix 6. REVENUE RECEIPTS.

174. Public Works revenue is assessed and realized in accordance with rules and orders made by or under the authority of Government. When collected, it should be brought to account in accordance with the classification prescribed in Appendix.2. 175. Consistently with the provisions of the rules in this chapter, the detailed rules or account procedure relating to revenue receipts are prescribed locally by the authorities of the Public Works Department, See also paragraphs 31, 38and 49 of the Central Public Works Department Code. 176. Distinction must be made between receipts which are finally creditable to Government as revenue of the Department, and transactions which represent merely such cash or other value received as has either to be eventually repaid or to be utilized to meet the cost of some service to be rendered or already rendered, or to be taken in reduction of expenditures previously incurred. Receipts of the latter class are creditable to the debt, deposit. Remittance or expenditure head concerned and are not subject to the rules of this chapter; see also statement E of Appendix.2. Note.1:For appropriation of unclaimed balances lying in the Deposit accounts, see paragraph 399. Note.2:Deleted. Note.3:Receipts in connection with District Fund Works which are realized by Public Officers are creditable to the head Deposits of Local Funds District Funds. 177. (a) It is not permissible to take credit for revenue to the head concerned until it is realized, but Divisional Officers are responsible that demands are made as revenue falls due, that steps are taken with a view to effect prompt realization of all revenue, regular or occasional, and that proper records are kept to show, in respect of all items of revenue, recurring or non recurring, the assessments made the progress of recovery and the outstanding debits due to Government. Note.1:The object of this rule is that all classes of revenue, whether accruing from property of any kind, from leases of rights and concessions (e.g. rights for finishing, grazing, etc, and use of water power), or from any other source are properly watched. Note.2:As an exception to the general rule, the following may be credited as revenue before realization. Supervision charges on sales of stock on credit. Sale proceeds of such articles of tools and plant as are creditable to the minor head Recoveries of expenditure by debit to Miscellaneous P.W. Advances, vide paragraph 155. b) The recovery of all debts due to Government should receive the special attention of the Divisional Officer and no debt should be remitted or written off except under the orders of competent authority. RENTS OF BUILDINGS AND LANDS. a) From Private Persons.

179. When a public building, land or other property is let to a person not in the service of Government, the full assessed rent must be recovered in advance. b) From Government Servants and Pensioners. 180. The recovery of rents from Government servants occupying rentable buildings in charge of the Department may be made either in Cash or by deduction from their pay bills through the

Treasury Officer or other disbursing officer concerned, as may be directed by the local administration. The system of direct recovery in cash from employees of other divisions and departments is ordinarily not suitable when the rent recoverable is dependent upon the rate of pay of the occupant. 181. Where rent is recoverable in cash, a bill in suitable from should be sent to the tenant on or before the last day of each month. The tenant should be required to pay in the rent before the expiry of the following month. REFUNDS AND REMISSIONS. 188. Remissions of irrigation revenue allowed before collection should be treated as receptions of demands. Cash repayments of revenue actually collected and brought to account under XXXIX Civil Works or irrigation heads should be accounted for under the minor head Deduct refunds, of the revenue head concerned. All other refunds of revenue, such as, refunds of rent of rent adjusted by short assessment or short realization in a subsequent month, and repayments of Receipts and Recoveries on Capital Account, (Appendix 2) should be taken in reduction of the receipts under the heads concerned. 189. Before a remission or refund of any kind, otherwise in order, is allowed, the original demand or realization, as the case may be should be traded and a reference to the remission or repayment should be so recorded against the original entry in the cash book and other accounts as to make the entertainment of a double or erroneous claim impossible. A certificate of such a note having been made should be given in all vouchers for refunds. Any acknowledgment previo9usly granted should be taken back if possible and destroyed a note of the repayment being, in any case, recorded on the counterfoil of the receipt. SUNDRY RULINGS 1. Carriage and Incidental Charges. 306. (a) The cost of carriage of stock materials to site of work, and of all carriage charges, in connection with the movement, from place to place of other materials issued to or provided specially for a work, should be debited direct to the account of the work, the exact classification of charge being as indicated below:-. Nature of Issue of Materials. Head chargeable in the account of the work. I. Issue to contractors under paragraph 238. a) To the promised palace of delivery.

Beyond the place of delivery, if incurred. II. Issues to contractors under paragraph. 239 III. Issues Direct to Works. Final charges in the case of minor Estimates and Additional Charges for the case of major

estimates. The personal account of the contractor under the suspense head Constructors other transactions. The sub head to which the cost of the materials is debited. b) When surplus materials are returned from work to stock, the cost of carriage should be born by the work, but if they are transferred to another work, the charge may be debited to either work as may be equitable. c) Incidental charges connected with the movement of materials issued to or provided specially for a work or returned there from, should be adjusted in the same way as the cost of carriage. d) In all cases the places from and to which materials are conveyed, the distance, the quantity and the approximate weight must be stated clearly in the payment vouchers. II. ---- Charges for Examination of Soil. 307. The expense attendant upon the necessary examination of the soil for the foundations of works ordered by competent authority should be treated as outlay on works and not as a contingent charge, provision for it being made under the service head concerned in a requisition or estimate according to the sum involved. III. --- Expenditure on Inauguration Ceremonies. 308. The expenditure incurred with the sanction of competent authority on ceremonies connected with the inauguration of important public works should be debited. a) In the case of irrigation projects for which separate capital accounts are maintained, to the revenue account of the project. b) In the case of other works, to the contingencies of the sanctioned estimate. IV. --- Rates and Taxes on Buildings. 309. Municipal or other rates and taxes on public buildings, residential or non residential when debitable to the public works department as the Department in administrative control of the building should be treated as expenditure on repairs and debited to the maintenance estimates of the buildings concerned. V. --- Execution of Works by other Departments. 310. Whenever the maintenance of any works under the administrative control of the Public Works Department is entrusted to the agency of another civil department with the sanction of Government, the rules of procedure applicable to expenditure connected with the works will be such as may be laid down by the local administration in consultation with the Accountant General Subject to following reservations:-. 1) The Civil Department should be responsible to the public works department to account for appropriation placed at its disposal. 2) The Public Works Department should retain budgetary and financial control. 3) The Public Works Department should retain technical control through inspection. VI. --- Execution of Government Works by Local Bodies.

311. When the Public Works Department entrusts to the agency of a District Board, or other local body, the maintenance of Government buildings or roads, without transferring the property to the local body, the payment made to it on this account should be treated as payment for work done by a contractor. If lump sum payments have been agreed upon, the procedure for settling the account periodically, and for recording the cost of the works, may be simplified, with the concurrence of the Accountant General, provided. a) That a certificate that the work has been done in accordance with the conditions agreed upon is placed on record by a responsible official. b) that if the payment is made for a number of works, expenditure on all of which cannot be classified in the accounts under a single head of account, the necessary detailed classification of the charge is set forth, and. Note.1:These payments should not be charged to the minor head grant in aid that head being intended for cash contributions made to local bodies in connection with (1) roads which are either not the property of Government or being such property, have been transferred to the control of a local body and (2) miscellaneous civil works, the cost of which if constructed by the public works department would be debitable to the minor head original works buildings civil works and for the financial assistance given to these bodies, in the form of expenditure incurred in the public works department on a work constructed by that department on their behalf. Note.2:The local administration will issue orders stating who shall be treated as a responsible official in each case for the purposes of proviso. (a). CONTINGENT CHARGES. MODES OF OBTAINING CASH. 464. two ways:-. I. II. allowances. Cash required to disburse contingent charges is obtained from treasuries in one of By cheques i.e. in the same way as cash required for works payments, and. Directly by bills, i.e. in the same way as cash required for payment of pay and The second of these methods can be adopted only if the local administration has authorized it. Note:Under the first method, contingent charges are incorporated in the Monthly Account of the division, whereas under the second method they do not enter the divisional accounts at all, though ultimately in the Accountant Generals office they are accounted for against the appropriations to which they relate. B. ---- GENERAL RULES. 465. The rules in part V, chapter V, of the treasury rules, volume I, apply generally to the Public Works Department to the extend that they may not be inconsistent either with the authorized method of obtaining cash for contingent charges (vide paragraph 464) or with any of the special rules in this code. 466. The expression contingent charges as used in Public Works accounts does not include charges which under the rules in Appendix 2 are classified under some other head of expenditure, e.g., works, repairs and tools and plants, see also paragraph 468. 467. If the contingent charges of a division excluding special contingencies (vide rule

287 of the Treasury Rules, Volume I), during a month, exceed the monthly limit for such charges fixed by the local Administration, the bill for the month should be submitted to the Superintending Engineer for sanction, which will be signified by that officer countersigning the bill. 468. Contingent charges and Grant in aid may be included in the same bill, but the abstract of the bill should show the total charges for each class separately. Problem 4.3

Required Post the following transactions with classification in a cash book of a Public Works Division for the month of March 1991, and close it.

Balance as on 28.2.1991 Rs.

i) Cash. 4,000.00

ii) Postage stamps. 200.00

iii) temporary advance with sub engineer 'A' dated 27.2.1991. 3,000.00

iv) Cheque No.05430 drawn for self lying in the chest. 5,000.00

v) Cheque No.05431 dated 28.02.1991 in favour of a contractor. 15,000.00

1.3.1991 Payment made to the daily labourers. 6,000.00

5.3.1991 Imprest given to the sub engineer 'B' 1,000.00

7.3.1991 Payment made to the contractor through cheque No.05432.

i) amount of the bill 40,000.00

ii) Less 10% security.

iii) Less 5% against bade work.

10.03.1991 Contractor received his cheque lying in the divisional office.

15,000.00

15.3.1991 Account of temporary advance rendered by sub engineer 'A'

i) expenditure as per muster roll 2,450.00

ii) Cash returend. 550.00

16.3.1991 Cheque No.05410 dated 15.2.1991 cancelled. 10,000.00

18.3.1991 Imprest with sub engineer 'B' recouped in full after payment to daily labour.

20.03.1991 Cheque No.05398 dated 31.12.1990 renewed. 35,000.00

23.3.1991 Cheque No.05433 drawn for self for chest. 6,000.00

25.3.1991 Payment made to the work charged establishment. 5,250.00

27.3.1991 Received on account of sale proceeds of old material 2,890.00

31.3.1991 Cash found surplus. 95.00

Problem 4-4

Required Post the following entries in the cash book of a Public Works Division and work out the closing balance:

Rs.

1.7.1987 Opening balance 2,734.50

3.7.1987 Paid first running bill to a contractor 'X'. 23,548.00

4.7.1987 Receiving registration feed from a contractor 'A'. 500.00

8.7.1987 Paid ist and final bill to a contractor 'Y' 11,270.00

10.7.1987 Received sale proceeds of unserviceable stores. 2,740.00

12.7.1987 Cash stolen from chest. 2,934.00

15.7.1987 Sale proceeds of tender forms. 360.00

18.7.1987 Received earnest money from the lowest bidder in the form of pay order. 13,744.00

22.7.1987 paid 3rd running bill to a contractor 'Z' 76,260.00

24.7.1987 Sale proceeds of tender forms. 270.00

29.7.1987 Paid final bill to a contractor 'XX' 23,100.00

Problem 4-5

Required Post the following transactions in the cash books of a divisional officer of building department and close it. Also give classification of receipts and expenditure.

31.8.1989 Closing contents: Rs.

i) Cash in chest. 1,000.00

ii) Postage stamps. 300.00

iii) temporary advance with sub engineer. 2,500.00

iv) imprest with Aslam assistant engineer. 500.00

v) Cheque for self for chest. 500.00

1.9.1989 Drew cheque No.074321 for cash for chest. 2,500.00

2.9.1989 Payment on account of I-running bill made to contractor bill through cheque No.074322 after deducting security of Rs.2000 (Construction of office building) 18,000.00

3.9.1989 Amount of imprest with Mr.Aslam assistant engineer increased to Rs.1500.

5.9.1989 Received account of temporary advance from sub-engineer as under:-

i) Paid muster roll paid. (repair of residential quarters). 2,000.00

ii) Cash returend. 500.00

7.9.1989 Received on account of sale of tenders. 750.00

9.9.1989 Paid work charged establishment in cash (construction of a high school building). 800.00

10.9.1989 Remitted into treasury . 750.00

15.09.1989 Cheque No.074323 dated 25.8.1989 cancelled.

13,000.00

20.09.1989 Cheque No.07423 issued in lieu of lost cheque No.074315 dated 15.08.1989. 20,000.00

30.09.1989 Paid contractor Mr.Bilal his ii-running bill through cheque No.074324. 27,000.00

Problem 4-6

Required Post the following transactions in the cash book of a Divisional officer of Public Works Department for the month of April, 1991 and close it. Also give classification.

Rs.

1.4.1991 Opening balance.

i) Cash 4,000.00

ii) Revenue stamps. 200.00

iii) Cheque not payable on demand. 5,000.00

iv) Postage stamps. 150.00

2.4.1991 Cheque No.06392 drawn for self for chest. 6,000.00

5.4.1991 Payment made to the contractor through. Cheque No.06393 (construction of residential buildings).

i) total amount of the passed bill. 50,000.00

ii) less 10% security

iii) recovery of cost of 50 cement bags issued to the work. 5,000.00

iv) deduct income tax @ 3%.

7.4.1991 payment made to the work charge establishment (office building). 8,000.00

10.4.1991 Temporary advance given the sub engineer 'A' for payment to the daily labourer by drawing cheque No.06394 for self. 5,000.00

12.04.1991 Travelling allowance. Advance given to sub divisional officer on his transfer by drawing bill on the treasury. 3,500.00

15.4.1991 Cheque No.06380 dated 15.3.1991 cancelled. 20,000.00

20.4.1991 Received on account of sale proceeds of old material. 4,000.00

21.4.1991 Received on account of sale of revenue stamps. 150.00

25.4.1991 Material issued to the contractor from stock. 5,000.00

30.4.1991 Cheque No.06385 dated 20.3.1991 sent to the bank for encashment. 5,300.00

30.4.1991 Postage stamps utilized. 150.00

Problem 4-7

Title Posting in a cash cook of Public Works Division.

Objective Enable trainees to post the transactions in the cash book

Required Post and close the cash book of a Public Works Division for the month of February 1993 from the following transactions giving code classification of each transaction:

Rs.

Contents of the chest on 31.1.1993.

a) Cash 60 = 1,000.00

b) revenue stamps. 50.00

c) Service postage stamps. 200.00

d) Cheque No.51 dated 31.1.1993 drawn in favour of self for cash in chest. 1,000.00

e) Cheque No.52 dated 31.1.1993 in favour of contractor 'A' for work done. 55,000.00

f) Cheque dated 01.2.1993 received from the lowest bidder 'B' for sale of dead trees. 10,000.00

g) receipt of sub divisional officer. I for imprest. 10,200.00

h) Cheque dated 31.1.1993 in favour of contractor 'A' received from another Public Works Division. 45,000.00

i) Travelling allowance of regular establishment (gross amount Rs.50000 with deduction of Advance of Rs.10000 40,000.00

j) temporary advance with self for disbursement of wages of labourer. 5,000.00

01.2.1993 Encased cheque NO.51 dated 31.1.1993 drawn in favour of self. 1,000.00

delivered cheque No.52 dated 31.1.1993 to contractor 'A'. 55,000.00

Delivered cheque dated 31.1.1993 to contractor 'A' received from another Public Works Division. 45,000.00

2.2.1993 Cheque dated 1.2.1993 deposited with treasury for collection. 10,000.00

i) muster roll for the work of "annual repairs" to roads. 3,300.00

ii) cash lost. 100.00

iii) vouchers under objection. 200.00

iv) undisbursed amount. 1,400.00

4.2.1993 Paid by cheque No.53 on account of CCIII-running bill of contractor 'D' for the work of

construction of district head quarter hospital.

i) work done to be paid. 120,000.00

ii) cost of old dismentled material to be deducted. 10,000.00

iii) advance payment to be allowed. 40,000.00

iv) secured advance to be allowed. 100,000.00

v) mobilization advance allowed recoveries to be made.

150,000.00

i) cost of cement supplied by the dpeartment for this work. 27,500.00

ii) security @ 10 Percent of work done.

iii) income tax @ 3 percent of payment.

6.2.1993 Cheque dated 01.02.1993 received from treasury with an objection and returend to 'B' 10,000.00

7.2.1993 Received from contractor 'C' on account of earnest money for the work of construction of road bridge of National importance. 2,000.00

8.2.1993 Issued imprest sub divisional officer-II by cheque No.54 10,000.00

9.2.1993 Paid an advance of travelling allowance to a Junior Clerk on his transfer to another dvision. 1,000.00

10.02.1993 Decreased imprest of sub divisional officer-1 to 10000

11.2.1993 Received from chowkidar of rest House the rent he collected from the occupants. 2,000.00

13.2.1993 Issued fresh cheque No.55 in lieu of cheque No.52 dated 31.3.1993 having been dishonoured by treasury on the ground of errors.. 55,000.00

15.2.1993

Paid work charged establishment for the month of January 1993 employed on the work of urban water supply scheme. 5,000.00

Less fine. 100.00

16.2.1993 Received cheque dated 15.2.1993 from merchant 'M' on account of sale of scrap. 20,000.00

17.2.1993 Cheque dated 15.2.1993 deposited with treasury for collection. 20,000.00

18.2.1993 Received from sale of tender forms. 1,000.00

20.02.1993 Stores received from another Public Works Division and debit received. 51,000.00

21.02.1993 Cheque dated 15.2.1993 cleared as per receipted challan. 19,980.00

22.2.1993 Examination of treasury remittance book for the month of January, 1993 has revealed that two contractors deposited enlistment fee amounting to Rs.5000 each on behalf of the executive engineer on 20.01.1993 but no entry for the same appears in the cash book. 15,400.00

23.2.1993 Received travelling allowance bill of subordinates dully passed by treasury.

24.02.1993 Received treasury challan from a sub engineer showing the amount paid into treasury by him on account of sale proceeds of unserviceable T and P articles. 3,500.00

25.02.1993 Received imprest account from sub divisional officer-1 as under:

i) A/R to national highway. 2,000.00

ii) Office stationery. 500.00

iii) A/R to college building. 1,000.00

27.2.1993 Cash receipts for the month remitted into treasury vide cheque No.56 (amount is to be worked out).

-doPaid office telephone charges to accounts officer, telephone revenue through cheque No.57. 3,200.00

28.02.1993 Received cash for chest against cheque No.58 3,800.00

-doIssued temporary advance to sub divisional officer-III for disbursement of wages of labourers. 3,000.00

-doCheque No.20 dated 16.09.1992 for Rs.4000 issued to contractor 'F' for the work of construction of office building cancelled.

-doOn counting cash found surplus in the chest. 100.00

Problem 5-2

Title Preparation of contractors bill

Objective Enable trainees to prepare the contractors bill.

Required Prepare the 2nd running bill of contractor Mr.Din Muhammad from the datea given below:

Sr.No Items of Work Unit Rate Qty.upto date Qty. executed as per last bill.

1 Excavation in foundation of buildings in ordinary soil. Cft 163.35 1,35,000 Cft 90,000 Cft

2 Dismantling brick work in cement mortar. % Cft 64.30 7,000 Cft 7,000 Cft

3 Cement concrete brick ballast in foundation and plinth. % Cft 858.50 15,000 Cft 15,000 Cft

4 Pacca brick work in foundation and plinth. % Cft

775.60 20,000 5,000

Cft Cft

5 Mosaic flooring using gray cement. % Sft 493.05 12,000 Cft -

6 Jack arach roofing. % Sft 907.60 14,000 Cft -

7 Cement plaster 1:2 upto 20 height. % Sft 105.25 22,000 Cft -

8 Wood work. Per Sft 38.70 500 Cft -

Add premium 30% on item No.1 and 2, and 55% on all other items.

Secured advance on 1,50,000 bricks brought on site by the contractor was given in the previous bill out of which 1,00,000 bricks have since been utilized. The full rate of bricks is Rs.680.00 per thousand.

Advance payment of Rs.15,000.00 was made against item No.3 above in the last bill. Further advance payment of Rs.20,000.00 is given in this bill against item No.8 above.

Deduct Rs.10,000.00 on account of bad work.

Deduct security deposit @ 10% and income tax @ 3.

Problem 5-3

Title Preparation of contractors bill

Objective Enable trainees to prepare the contractors bill.

Required Prepare the 3rd running bill of Mr.Amjad for the work of construction of Government Girls Degree College at Samanabad, Lahore.

Sr.No Items of Work Unit Rate Qty.upto date Qty. as per previous bill.

1 Earth work excavation. Cft 120 150000 Cft 100000 Cft

2 Brick work. % Cft 350 75000 Cft 25000 Cft

Cement concrete. % Cft 650 35000 Cft 10000 Cft

4 Roofing % Cft 790 24000

Cft

5 Cement plaster % Sft 210 50000 Sft

Advance payment of Rs.10,000 and Rs.15000 was made to the contractor in 2nd running bill against item No.2 and 3. Further adfance of Rs.12000 and 14000 is to be given against item No.4 and 5 in this bill.

Secured advance against 110000 bricks was allowed to the contractor in II- running out of which 100,000 bricks have since been utilized. Contractor has further brought on site 50000 bricks for which secured advance is allowed since previous bill, reduced rate of bricks is Rs.625 per

Mobilization advance of Rs.800000 was given to the contractor on 1.5.1990. First bill was paid to the contractor on 1.19.1990 and 2nd running bill on 1.1.1991 and 3rd bill on 1.7.1991.

Deduct security deposit @ 10% and income tax @ 3%.

Problem 5-4

Title Preparation of contractors bill

Objective Enable trainees to prepare the contractors bill.

Required Prepare the 2nd running bill of Mr.Allah Ditta, contractor for the construction of a Government building from the data given below:-

Sr.No Items of Work Qty.upto date executed Rate Unit Qty.upto date executed

1 Excavation in foundation of building in ordinary soil. 211000 Cft 166.35 211000 Cft

2 Dismantling brick work in cement mortar. 8750 Cft 64.3 % 8750 Cft

3 Cement concrete brick ballast in foundation and plinth. 20230 Cft 858.5 % 3500 Cft

4 Pacca brick work in foundation. 25240 Cft 775.6 % 12130 Cft

5 Mosaic flooring with grey cement. 14735 Sft 493.05 % -

6 Jack arch roofing. 16290 Sft

907.6 % -

7 Cement plaster. 20915 Sft 105.25 % -

8 Wood work door and windows. 625 Sft 38.7 Per Sft -

Add 65% premium on item No.1 and 2 and 75% on all other items.

Deduct cost of bad work Rs.23000.

Advance payment of Rs.70000 and Rs.13000 was made against item No.3 and 4 previously. Further advance payment of Rs.10000 , 12000 and 11000 is made against item No.5,6 and 8 in this bill.

Secured advance on2 05000 bricks was allowed previously, out of which 195000 bricks have since been utilized constractor has brought further 120000 bricks on site against which secured advance is allowed since previous bill. Full rate of bricks is Rs.750 Per thousand. Further secured advance on 12 tons steel at full rate of Rs.7500 per ton is allowed in this bill.

Recovery of cost of the material for this work Rs.15000 and for another work Rs.10000 is to be made in this bill. Penalty for delay in completion of work @ 2% of the total cost of work done is to be made from the contractor.

Problem 5-1

Title Preparation of contractors bill

Objective Enable trainees to prepare the contractors bill.

Required Prepare the 2nd running bill of contractor "Noor Elahi" for the work construction of Lahore Sheikhupura road "from the data given below:-

Sr.No Items of Work Unit Rate Qty. executed upto date Qty. executed as per Since bill.

1 Earth work excavation including dressing and compaction. Cft 166.8 350000 Cft -

2 Providing andlaying sub base course aggregate of crushed stone. % Cft 312.45 110500 Cft 50000 Cft

3 Providing / laying base course of crushed stone aggregate. % Cft 425 105700 Cft 75200 Cft

4 Providing triple surface treatment to roods using 79 Lbs bitument and 9-75 ct bagri in 100 Sft area. % Sft 123.15 50000 Sft 50000 Sft

5 Providing and laying road edging of 3" vide and 9" deep brick on end complete in all respects. Per Rft 1.15 80290 Rft -

Add 50% premium on item no.1 and 95% on all other items.

Deduct 10% security deposit and 3% income tax.

First running bill was prepared and paid on 31.12.1990.

2nd running bill was passed and paid on 31.5.1991

Mobilization advance of Rs.500000 was paid on 31.10.1990. The advance inclusive of interest

on reducing balance is to be recovered at the rate of 10% per annum in five equal installments commencing from the first running bill.

Bitumen was supplied to the contractor by the department. Recovery on actual consumption is to be made from his running bills at the rate of Rs.6850 Per ton.

Secured advance of Rs.50000 given to the contractor on the security of bricks in 1st running bill is to be recovered.

Advance payment of Rs.15000 was given in the 1st running bill on item No.3 above.

Chapter-7 Contractors Ledger Problem 7-1

Title Contractor's Ledger.

Objective Enable trainees to post the transactions in the contractor's ledger.

Required Tick ( ../) the correct statement and cross (s) the incorrect statement.

1 The accounts relating to contracts should be kept in the contractor's ledger, form-43. ___________ 2 A personal account should be opened in the ledger for more than one contractors. ___________ 3 The contractor's ledger should be written up in the sub divisional office and closed quarterly. ___________ 4 Contractor's account should not be debited or credited unless his bill has been passed and payment made thereon. ___________ 5 Security deposits, income tax deductions should be included in the personal accounts of contractors in the contractor's ledger. ___________ 6 The advance payments made to the contractors are recorded in the contractor's ledger under the column "other transactions. ___________ 7 The value of workdone by the contractor is shown under the column 'debit' of the contractor's ledger. ___________ 8 In column 4,5 and 6 debits to contractors should be posted as minus entries and credit as plus entries. ___________

9 The divisional accountant should be held responsible for the correctness of the contractor's ledger. ___________ 10 Copy of contractor's running account bill or an extract from his account in the contractor's ledger should not be provided to the conractor as it is a confidential record. ___________ Problem 7-2

Title Contractor's ledger.

Objective Enable trainees to post the transactions in the contractor's ledger.

Required Post the following transactions in the contractor's ledger of contractor 'A' and close it.

Balance brought forward. Rs.

(Other transactions) 16620

01.02.1988 Paid first running bill for construction of new highway as under:-

i) Total value of work done and measured. 5,000.00

ii) Work actually done as certified by sub divisional office but not yet measured. 40,000.00

iii) Secured advance allowed for allowed for 40000 Nos bricks. Full assessed rate is Rs.800 per thousand Nos. 5,000.00

iv) Deduct cost of stores issued for this work. 16,620.00

v) Deduct security deposit on work done @ 10%.

vi) Deduct income tax on gross payment @ 3%.

6.2.1988 Advance 75% of the value of bricks work Rs.40000 brought to site of work of constructing office building.

8.2.1988 Labour charges amounting to Rs.2000 paid for carriage of material relating to work of constructing office building on behalf the contractor.

13.2.1988 Received for stock from the contractor 2 tons of M.S bars @ Rs.6000 per tone without a bill.

14.2.1988 Issued to the contractor 500 Nos cement bags @ 80 per bag plus 5% storage charges from the stock for work of constructing office building.

15.2.1988 Received a court attachment order requiring deduction of Rsx.3722 from the contractor and remitting it into the treasury.

18.2.1988 Payment made to the contractor by cheque for 3/4th work of constructing office building as certified by the sub divisional officer at a cost Rs.40000.

22.2.1988 Sub divisional officer's letter notifying fine for delay in work for 15 days @ Rs.100 per day on work of special repairs to roads.

24.2.1988 Issued to the contractor stores worth Rs.1600 for the work of constructing bridge.

26.2.1988 The constructing refurned 100 No cement bags @ Rs.80 per bag as unused on work of constructing office building.

28.2.1988 Paid 2nd and final bill to the contractor for the work constructing new highway as under:-

i) Total value of work done. 166,600.00

ii) Advance payment outstanding as per previous bill. 40,000.00

iii) Secured advance paid in previous bill . 30,000.00

iv) Amount already paid as per Entry (K) of previous bill. 138,000.00

Details of recoveries / deductions.

i) Cost of store issued for work of constructing bridge. 1,600.00

ii) As per attachment order of civil court. 3,722.00

iii) Security deposit @ 10%

iv) Income tax @ 3.

28.2.1988 Paid to the contractor first and final bill for the work of silt clearance of canal amounting to Rs.120000.

Problem 7-3

Title Contractor's ledger.

Objective Enable trainees to post the transactions in the contractor's ledger.

Required Post the following transaction in a contractor legger and close it.

Opening entries.

1 Secured advance on work 'A' 1,000.00

2 advance payment on work 'B' 2,000.00

3 value of material issued to work 'B' 800.00

4 Security deposit form contractor for work 'C' 1,000.00

Subsequent transactions:

5 payment for work done of work A Rs.5000 less advance and less 10% security. 5,000.00

6 fined contractor Rs.300 on work 'B'

7 On account bill for work 'B' Rs.4000 less all outstandings and of security and less Rs.200 to be credited to the contractors account of work 'A' Measured further work 'A' and prepared final bill for Rs.4000 less security.

Problem 7-4

Title Contractor's ledger.

Objective Enable trainees to post the transactions in the contractor's ledger.

Required Prepare and balance the contractor's ledger of contractor Mr.Munawar Rasual from the following data:

1 Payment to labourers on behalf of the contractor for work constructing science block of Government college. 3,000.00

2 Secured advance against bricks brought on site by the contractor for constructing a police station. 7,500.00

3 Cost of timber issued to the contractor for use on work at (2) above as under; 2,500.00

Paid 2nd running bill for work at (2) above as under:

i) gross amount. 5,000.00

ii) 10% to be deducted as security.

iii) recoveries due from the contractor as per items (1) and (2) above to be made.

5 Paid 1st and final bill of contractor for supply of road signs. 8,000.00

6 Paid to labour on behalf of the contractor on repair to grand trunk road. 1,500.00

Problem 7-5

Title

Contractor's ledger.

Objective Enable trainees to post the transactions in the contractor's ledger.

Required Post the following transactions in the contractors ledger of contractor 'A' for the month of February, 1993 and close it.

1.2.1993 Paid 1st running bill for work 'R' as under:

Total work done and measured for Rs.52500. Work done but not yet measured Rs.5000. Less 10% of work done withheld 50000 bricks at full rate of Rs.800 per thousand and 40 Cwt steel at full rate of Rs.10000 per ton brought to site of work by the contractor and indenture bond executed 3% income tax to be deducted on gross payment.

2.2.1993 75% advance of the vlaue of bricks worth Rs.120000 brought to site of work 'S' by the contractor under proper indenture bond has been given.

3.2.1993 Labour chargers amounting to Rs.5000 paid for carriage of material relating to work 'S'

4.2.1993 Cash of Rs.4000 received from the contractor on account of security deposit for constructing the work 'T'

6.2.1993 Received a court attachment order requiring deduction of Rs.20000 from the contractor's claim and remitting it to the deputy commissioner.

8.2.1993 Issued 200 Nos. cement bags @ Rs.100 bag plus 5% storage charges from stock for the work 'R'

10.2.1993 Received 18 Cwt C.I. Sheet @ Rs.600 per Cwt from the contractor for stock without a bill.

14.2.1993 Sub divisional officers letter notifying fine for delay in work for 5 days @ Rs.100 per day on work 'T'

15.2.1993 Payment made to the contractor by cheque for 3/4th work 'T'

18.2.1993 The contractor returned 100 No. Cement bags @ Rs.100 per bag unused on work 'T'

20.2.1993 Paid 2nd and final to the contractor as under:

a) Total value of work done Rs.160000

b) Advance payment of Rs.5000 outstanding in the previous bill.

c) Secured advances of Rs.45000 outstanding in the previous bill.

d) Amount of Rs.96800 as per 'K' entry of previous bill. Details of recoveries / deductions:

I) Cost of 200 Nos cement bags @ Rs.100 per bag plus 5% storage charges issued for this work.

ii) Amount of Rs.8000 on account of cost of stock material issued to the work constructing police station.

iii) Rs.2000 as per attachment orders of the court.

iv) 10% seucrity deposit by relasing the withheld amount of Rs.5200

v) 3% income tax.

25.2.1993 Received for stock from the contractor 2 tons M.S. Bars @ Rs/10000 per tone.

27.2.1993 Paid to the contractor first and final bill for the work of limings of canal amounting to Rs.120000.

iv) 10% security deposit by releasing the withheld amount of Rs.5200

v) 3% income tax.

25.2.1993 Received for stock from the contractor 2 tons M.S. bars @ Rs.10000 per tone.

27.2.1993 Paid to the contractor first and final bill for the work of limmings of canal amounting to Rs.120000.

Problem 7-6

Title Contractor's ledger.

Objective Enable trainees to post the transactions in the contractor's ledger.

Required Post the following transactions in a contractors ledger of Mr.Musharrad Rasul for the month of November, 1993 and clost it.

1 Advance payment to work 'A' 15,000.00

2 Value of materials issued to work 'A' 20,000.00

3 Secured advance on work 'B' 16,000.00

Subsequent transactions:

1 Received security deposit in cash form the contractors against work 'C' 10,000.00

2 Payment madeto the contractor for work 'A' as under;-

i) value of work done. 65,000.00

ii) less 10% security. 65,000.00

iii) less 10% income tax. 1,950.00

iv) less advance payment and cost of material. 35,000.00

3 Contractor was fined for delay in completion of work 'B'

4 Paid contractor against work 'B' as under:-

i) value of work done. 54,000.00

ii) less all outstanding.

iii) recovery on account of work 'D'

5,000.00

Work 'A' further measured and 3rd and final bill prepared Less security and income tax on the usuals prescribed rates by the Government.

Chapter-8 Works Abstract Classification of Transactions Problem 8-1

Title Works abstract.

Objective Enable trainees to learn preparation of works abstract.

Required Fill in the blanks by appropriate words given against each statement.

1 As account of all transactions relating to a work during a month in respect of Cash, stock or other charges is prepared in the ________ ( contractor ledger, words abstract.)

2 In case of works the accounts of which are required to be kept by sub heads, __________ of work abstract should be used. (form 33, form 34).

3 Percentage charges such as tools and plant, accounts levied on work expenditure should not be shown in __________ (measurement book, works abstract)

4 In case of large work which is divided into several sub works, it will usually be found convenient to prepare works abstract. ________ (jointly, separately.)

5 The account of each sub head in the works abstract should show the amount, progress and ____________ (rate of cost, quantity).

6 Postings in the work abstract in the divisional office should be made in _____ (black ink, red ink).

7 Any amount withheld from the contractors bill should be shown in the column _________ of contractors suspense account. (final charges, other transactions).

8 The column "other transactions" in the works abstract is 9intended for all miscellaneous debits and credits to __________ (stock, contractors).

9 Unpaid amounts of muster rolls should be posted in the works abstract in the column labourers as

_______ entires (plus, minus).

10 The charges classified under a ____________ sub head should include all ordinary expenses incidental to construction, (suspense, final).

Problem 8-2

Title Works abstract.

Objective Enable trainees to learn preparation of works abstract.

Required Prepare the works abstract from the following particulars for January 1992.

Name of Work I) Construction of high school building:

ii) Name of contractor Mr. Aslam Khan.

Estimate No.Edu /751 dated 15.10.1991 for Rs.350000.

Paid 1st running bill on 15.12.1991 as under:-

i) value of work done Rs.65100 (VR.No.11 dated 15.12.1991).

ii) deduct advance payment and secured advance already paid.

iii) further advance payment for Rs.6000 and secured advance Rs.1100 has been given to the contractor.

iv) Cost of material issued to the contractor for use in the work Rs.5000

Paid work charges establishment vide vr.No.15 dated 10.1.1992 for Rs.7200

Paid daily labourers on passed muster roll vide vr.No.21 dated 19.1.1992.

i) total amount Rs.8500

ii) unpaid wages Rs.1500

Paid contractor Mr.Anayatullah for the work electric fittings vide vr.No.25 dated 30.1.1992.

value of work done Rs.12500

amount withheld Rs.2500

security deposit deducted @ 10%.

Problem 8-3

Title Works abstract.

Objective Enable trainees to learn preparation of works abstract.

Required Write up the works abstract from the following details

Name of work "construction of Government boys high school.

Name of Contractor Mr.Asghar Shah.

Estimate No.BL/1302 dated 10.01.1990 for Rs.415000.

Closing entries as per 1-running bill.

final charges Rs.98000 (vr.No.16 dated 2.2.1991)

i) final charges Rs.98000 (vr.No.16 dated 2.2.1991)

ii) advance payment 10000

iii) secured advance Rs.19000

iv) amount withheld Rs.8000

II-Running Bill.

i) Vr.No.17 dated 10.3.1991.

ii) Value of work done and measured since previous bill Rs.150000.

iii) less on account of court attachment order Rs.7000 and fine imposed for delay in the work Rs.7500.

iv) material issued to contractor for use in the work Rs.15000 paid work charged establishment Rs.6500 vide ver.No.21 dated 15.3.1991.

paid daily labourers vide No.25 dated 20.03.1991 for Rs.4200

paid contractor Mr.Din Khan for Elec charges vide ver.NO.27 dated 31.3.1991 for Rs.15000.

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