1

Write short note on following:-

i. Notice Inviting Tender: Whenever a work is to be got done or supply obtained through contractor, the Department calls for tenders
from the prospective contractors. For this purpose, documents known as N.I.Ts are prepared in standard approved form and serially
numbered.
ii. Dismantled Material Register: Materials obtained from dismantlement of a building or structure is recorded in the Measurement
Book for record purpose, without value. On the basis of these measurements, these are taken in the Register of Dismantled Materials.
After making the entries in this register, and their attestation by the Engineer-in-charge of the work, the measurement book entries
are crossed by a diagonal red ink line with a note that these materials have been entered in the Register.
iii. Schedule of Rates: In each division , a Schedule of Rates for each kind of work commonly executed is maintained up-to-date to
facilitate the preparation of estimate and also as a guide to settle rates in connection with contract agreements. The schedule of rates
is prepared on the basis of the rates prevailing in each station. for this purpose, necessary analysis of the rates for each description of
work and for the varying conditions thereof should also be recorded. These rates are revised at least once in two years. The rates
entered in the estimates should generally agree with the corresponding rate in the Division's Schedule of Rates.
iv. Deposit Work: This term is applied to work executed in PWD but the cost of which is met, not out of Government Funds, but from
funds provided by non-Government bodies. Title to the property of the work will also vest in the body funding it. Works executed
for Municipalities, corporations, Panchayats, Non-Government Organisations & private parties fall in this categories.
v. Departmental Charges: Departmental Charges denote percentage charge levied generally on works undertaken by PWD on behalf
of other Governments, Govt's Commercial concerns and local bodies & private parties. These are levied on a percentage basis and
are intended to recover the cost incurred by PWD on Establishment, on tools and plants and on Audit & Account.
vi. On Account Payment: A contractor is to be paid for the work done after its verification and measurement. Any payment made to
contractor on the basis of work actually done and measured is called On Account Payment.
But if the work is large and takes a long time to complete, the contractor can be paid at regular intervals to make available funds to
pay for his labour and to meet his other liabilities. in that case, the work done by the contractor is measured at intermediate stages
and payment is made for it on a running account basis. Such periodical payment are called Running Account Payments.
vii. Bill Register: The Divisional Accountant keeps a consolidated record of all bills received from Sub-Divisional Officers to make
payment in a register called Bill Register. The bills are entered in it strictly in the order of their receipt. A bill received later is not to
be given priority over the one received earlier without the written orders of the divisional Officer. This register is put up to the
Divisional Officer weekly to record that his instructions are being followed.
viii. Muster Roll: Muster Rolls serve as a record of labours employed daily for a work, their rates of pay, amount due to each during the
given period, and, if possible, the quantity of work done by them. The Muster Roll is divided into two parts. Part I is primarily meant
to keep the record of their daily attendance, and fines, if any imposed. Part II we keep record of the progress of work if it is susceptible
of measurement, otherwise, a note is kept that it is not susceptible of measurement. Unpaid wages are recorded in the register of
unpaid wages in Form 21A. Any subsequent payment is note against the original entry in this Register as well as in the relevant
Muster Roll.
ix. Bin Cards: Bin cards are kept in Stores Godown in form 8. These are records chronologically all receipts, issue and balance of
quantity of each article of stock. These cards are placed near the article concerned to facilitate entries as and when that item is
received or issued.
x. Stores Indent: Materials are issued from stores only on the authority of an Indent signed by the Divisional or Sub-Divisional Officer.
They are printed in Form 7, and bound in booklets, each set of five Indents being machine numbered. The work or head of account
for which stores are indented is recorded on each indent.
xi. Work Charged Establishment: This term is applied to temporary employees for the:-
a. Actual execution of a specific work or a project or
b. on subordinate supervision (as distinct from general supervision) of departmental labour, stores and machinery in connection with
such a work or project.
xii. Work Slip: It is prepared and submitted to the Superintending Engineer to obtain his sanction to the excess expenditure, when (i)
Expenditure on a work has exceeded the sanctioned estimate or excess is anticipated, and (ii) that excess needs approval of higher
authorities. It records the up-to-date expenditure on the work against the sanctioned estimate, and compares the total quantity, Rate
and Value for each sub-head.
xiii. Register of Work: It is posted for each work from Works Abstracts and agreed with the corresponding figure in the Monthly
Account. It controls the cost of the work with its estimated cost.
xiv. Detailed completion Report: This term is applied to the statement of Works Expenditure on the completion of the work. It compares
actual expenditure with the Estimate of the Work. If the expenditure has exceeded the estimate by an amount greater than that which
the Divisional Officer can sanction, it is prepared in detail. In that case, it is submitted to higher authorities for sanction and
regularisation.
xv. Transfer Entry: Transfer entries (T.Es) are entries to transfer an item of receipt or payment from the account of a work in progress
or from a regular head of account of another work or head. A T.E. is one of the important accounts records. All transfer entries are
prepared in form CAM 34 (or CPWA 53).
xvi. Register for Material at Site Account: Issuing of stores to a work, which is being done departmentally or by contractors whose
agreements are for labour rates only is called “Issue of Materials to work direct”. The cost of such materials is shown in the account
as expenditure under Material Account.
To support the amount under the Sub-Head “Materials” a register of Material at site Account is kept to show numerical account of
each item.
xvii. Register of unpaid Wages:
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xviii. Secured Advance: Secured Advances is an advance given to a contractor on the security of materials brought by him to the site of
work in cases where the contract is for completed items of work.
Recoveries of this advances are made progressively from contractor's "On Account Bill" to the extent the materials are consumed on
the work done and measured. Secured Advance paid is posted in work's account as transaction awaiting recovery.
xix. Security Deposit: This is security for satisfactory completion of the work or supply as per agreement. It is a safeguard for
performance against agreement and also ensure that Government property handed over to contractor is received back safe and sound
on the completion of work. Security Deposit now deductable from contractor's bill @ 2.50% of the value of work done.
xx. Goods Received Sheet: Goods received sheet in form 8A is a record of the detailed count, measure and weight of material as and
when received in a PWD Store. Entries from this sheet are posted in Bin Cards (Form 8). These sheets are printed in the form of
booklets duly machine-numbered.
Separate Goods Received Sheet is prepared in respect of goods purchased from each supplier. Storekeeper retains one copy of a filled
in Goods Received Sheet and sends two of its copies to the Sub-Division, which in turn passes on one copy to the division for (i)
posting in the priced Store Ledger and (ii) for payment to the supplier.
xxi. Work Abstract: An account of all transactions relating to a work during a month is known as Work Abstract .It is prepared in Form
33. It is prepared every month in the Sub-Division incorporating all transactions of that month whether in cash or by transfer. Work
Abstract is a consolidated record of transaction and expenditure of a work for one month.
xxii. Contractor Ledger: This is a running account of each contractor and shows amounts due, amounts paid, amounts advanced and
other amounts recoverable from the contractor.
Differentiate between the following:-
i. Secured Advance and Mobilization Advance:
Secured Advance: Secured Advance is an advance given to a contractor on the security of materials brought by him to the site of
work in cases where the contract is for completed Items of Work (at finished rate). The Divisional Officer can sanction to the
contractor. Recoveries of this advance are made progressively from contractor’s “On Account Bill” to the extent the materials are
consumed on the work done and measured.
Mobilization Advance: In respect of certain specialised and capital-intensive works costing not less than Rs. 2.00 crores,
Mobilisation Advance (as interest bearing loan) may be sanctioned to the contractors as per terms of his agreement. These loans are
granted against a bank guarantee of a scheduled bank for the full amount of the advance. The advance is released in not less than two
instalments.
Mobilisation Advance: In respect of certain specialised and capital-intensive works costing not less than 2.00 crores, mobilisation
advance (as interest bearing loan) may be sanctioned to the contractors as per terms of his agreement. These loans are granted against
a Bank Guarantee of a scheduled bank for the full amount of the advance. The advance is released in not less than two instalments.
ii. On Account Payment and Advance Payment:
On Account Payment: A contractor is to be paid for work done after its verification and measurement. Any payment made to
contractor on the basis of work actually done and measured is called On Account Payment. (Such a payment, if made at one stage
only after the work has been completed to the entire satisfaction of the Engineer-in-charge, is called First and Final Payment).
But if the work is large and takes a long time to complete, the contractor can be paid at regular intervals to make available to him
funds to pay for his labour and to meet his other liabilities. In that case, the work done by the contractor is measured at intermediate
stages and payments are called Running Account Payments. A series of on account payments are also, thus, Running Account
Payments, except the last one which is called last and final bill/payment.
Advance Payment: This term denotes a payment made to a contractor on a Running Account for work done but not measured. Such
payment is usually made to enable the contractor to discharge his liabilities like payment of wages to workers and his suppliers in
cases where there is delay in measuring up the work done by him. This gives financial support to the contractor till On Account
Payment is made for the work done after its measurement. The amount of advance payment is always less than the expected amount
due for work done.
Payment on Account: A contract may run over a long period. In that case, the work done by the contractor is measured at
intermediate stages and payment made for it on a running account basis. This is called payment on account. Such payments are based
on actual measurement of work done.
iii. Major Work and Minor Work:
Major Work: Major Work means a work the sanctioned cost of which is more than Rupees Fifty Lakhs (from 2005). The estimate
of cost of such a work is also called “Major Estimate”. Since 2005, amendment to CPWA Code awaited.
Minor Work: Minor work is a work the sanctioned cost of which is Rupees Fifty Lakhs or less. The estimate of cost of such a work
is called minor Estimate.
iv. Preliminary Estimate and Detailed Estimate:
Preliminary Estimate: A Rough Cost Estimate (Previously preliminary estimate) is prepared by PWD if the authority having
administrative control of the work needs it to deposit funds with the PWD or for any other purpose. Based on the preliminary drawings
and specification given by the Architect, it is prepared on plinth area of the building or length of the road at the rate per unit adopted
for rough and ready calculations to give an idea of the approximate cost involved in proposal.
Detailed Estimate: Detailed Estimate of the cost of a work is prepared by PWD for receiving the approval and expenditure sanction
of the administrative department. This estimate is part of Detailed Project Report is prepared on the basis detailed drawing of the
work from the Architect, only after assurance from the sponsoring department /authority that the site is a available without
encumbrance or likely to be made available in reasonable time
The Detailed Estimate lists the quantities of various items of the work (based on the detailed working drawings and architectural
specification for the work, and structural & services drawings approved by the client.) For all these items of work, estimated cost per
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unit is recorded and the amount for each such item is worked out. At the end of various items and their cost are listed in the form of
an abstract.
v. Administrative Approval and Expenditure Sanction:
Administrative Approval: A Government College Building is to be constructed by PWD but is to be used by the Education
Department. PWD is the Technical Department whereas Education is the Administrative Department. Administrative Approval is
the concurrence of the Administrative Department to the incurring of expenditure on their behalf. It signifies the acceptance of the
Administrative Department that the proposed work meets their needs. It carries no more authority.
Expenditure Sanction:
vi. Original Works and Repair Works:
Original Works: Original Works means new construction including addition and alterations to existing works. This term covers
special repairs to newly acquired or previously abandoned work too.
Repair works: The term Repair means operations undertaken to maintain buildings and works in proper condition. Repairs can be
classified further as “Annual Repair” and “Special Repair”.
vii. Item Rate Tender and Percentage Rate Tender:
Item Rate Tender: When PWD floats Item Rate Tender, then the contractor are required to quote their rates for each item of work
considering schedule of quantities indicated by the department. This form ensures a more detailed analysis of cost from the contractor,
as he works out his rate for each item himself.
Percentage –Rate tender: When tender is issued calling for rates, for work to be done, at a percentage higher or lower than the rates
applied in the estimate of work (based on the prescribed rate in the Divisional Schedule of Rates or the District/State PWD Schedule
of Rates), then such a tender is called Percentage Rate Tender. This kind of tender is used mainly for works of standard design.
viii. Measurement Book and Standard Measurement Book:
Measurement Book: Measurement book in form 23 serves as record of all payments for work done and all payments for materials
purchased for works from the suppliers, other Divisions, or from other works etc. (for materials purchased for stock, goods received
sheet are used in place of Measurement books).
MB is the most important initial record of Works Accounts. All the MBs of a Division are numbered serially and entered in a
divisional control register in form 92. The return of each MB to the Division, after it has been written up, is watched through this
Register. There are two kinds of Measurement Books-namely, Detailed Measurement Books and standard Measurement Books.
Standard Measurement book: Standard Measurement Books contain standard measurements of (already completed) Buildings and
other such works. These MB’s can be used repeatedly for works relating to those Buildings such as for white washing, polishing or
painting the doors and windows, as the area of walls, floors, doors and windows etc. Doesn’t change after the Building had been
completed and entered in the Standard Measurement Book. A responsible Officer certifies the accuracy of standard measurement
books. These are used for preparing periodical repair estimate too.
ix. Earnest Money and Performance Guarantee:
Earnest Money Deposits (EMD): EMD is the amount of money a tenderer deposits before submitting his tender to assure the
Government that he will not back out and is earnest in executing the work at the rates tendered. In case he fails to commence the
work awarded to him the Earnest Money is absolutely forfeited.
Performance Guarantee: This is a security for satisfactory completion of the work or supply as per agreement. It is a safeguard for
performance against agreement and also ensures that Government property handed over to contractor is received back safe and
soundon the completion of the work.
x. Work Order and Supply Order:
Work Order: This is a kind of allotment of work to a contractor for execution instead of entering into an agreement with him. It is
used for works costing Rs. Ten Lakhs and below. There are two forms of Work Orders. One is that in which the work awarded may
be stopped by the Engineer-in-charge at an time, and conversely the contractor is also entitled to stop the work at any time. The
second form binds the contractor in respect of quantity of work and time in which it is to be completed.
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Que. The following serious irregularities came to light in a Division. Report whether these irregularities were due to any defect in the
Rules or negligence of the officials concerned and explains briefly whether and, if so, how each of them could have been prevented or
detected by (i) the Executive Engineer, (ii) the Divisional Accountant.

i) Fictitious measurements of work done by contractors were recorded by the subordinates in the measurement books and duly
certified by the Sub-Divisional Officer. Bills based on this measurement were then prepared and paid.

ii) Payments were made for maintenance works (which were badly done or not at all) and they were out of proportion to the
work done.

iii) False muster rolls were prepared for temporary labour and paid.
Ans: The Executive Engineer could detect the irregularities committed vide items (i) to (iii) only if he had an occasion to inspect the works
locally. The Divisional Accountant could detect them only if they had resulted into an excess over the estimated cost of the respective
works. The irregularity at item (iv) could be detected by them when examining the accounts-adjustments under para 8.1.8 of CPWA
Code.
Que: What safeguards exist to prevent double payment of?

i) Bill of a contractor for the same work.

ii) Unpaid wages to labourers.
iii) Refund of Deposit to a contractor.
iv) Refund of Revenue realized.
v) Repayment of lapsed Deposits.

Ans:- (a) To avoid payment against a second claim for the same work, every page of the measurement book containing the detailed
measurement is scored out by a diagonal red ink line when preparing the bill for work done,. When this bill is paid, an endorsement is made
in red ink on the Abstract of measurement mentioning the no. and date of the voucher of payment. (Para 10.2.18 CPWA Code)
(b) Under Para 10.2.4 (d & e) CPWA Code, unpaid wages of labourers are recorded separately in a Register in Form 21-A note of
subsequent payment is also kept against the original entry in this Register as well as in the relevant Muster Roll. This provides sufficient
safeguard against double payment. (Another check is provided by the balances outstanding in the unpaid Wages Register Form 21-A).
(c) The refund of Contractor’s deposit is noted in the Deposit Register against the original credit entry to safeguard against double
payment. A note is also kept on the counterfoil of the relevant Receipt issued originally on realisation of Deposit. A similar note is kept in the
Cash Book against the original entry of Receipt of Deposit.
(Para 15.5.1; and 9.4.2 of CPWA Code)
(d) When material were received from the supplier, their value was credited to the head “Material Purchase settlement Suspense” vide
Para 13.2.2 of CPWA Code. When the payment for material received is made it is debited to the same head vide Para 13.2.4 of CPWA Code.
Unpaid balance (either for the entire bill or for part of it) remains outstanding under this Suspense head and is cleared only when it is paid out.
Payment is allowed only after verification from the material purchase Suspense Register. A note of payment is also is also kept in the MB (if
material were purchased for a work ) or in the concerned Goods Received Sheet (if these were purchased for stock).This guard against second
payment for the same bill.
(e) Before Refund is allowed, the original entry in the Cash Book. A Note of repayment is recorded against this Original Entry in the
Cash Book as well as on the counterfoil of the original receipt. A Certificate to this effect is recorded on the refund Voucher. Beside,
acknowledgement/ receipt previously granted is taken back and destroyed. These are the safeguards provided in para 9.4.2 of CPWA Code.
(f) Lapsed Deposit cannot be repaid without pre check by the Accountant General / PAO. Accountant General / PAO will also keep a
note of refund on the original Lapse Statement These officers will authorise, payment only after ascertaining that
(1) the item was credited to Government as lapsed deposit;
(2) the claimant title and identify have been certified by the Divisional Officer;
(3) the refund is due, and
(4) the Divisional Officer has kept a note of refund in the Deposit Register against the entry of Original Deposit
(Para 15.4.1 & 15.4.2 of CPWA Code)
Q. State quoting authority, the nature of the action to be taken by a Divisional Officer in the following cases: The wages of labourers
remain unpaid after the completion of the work, and are claimed five later.

i) A Contractor asks the payment due to him be made to his blank.

ii) Expenditure has been incurred on a deposit work in excess of deposit received.
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iii) Certain small articles of furniture, each had been received free of cost, are found missing during verification of Stock at a
Rest House.

Ans: - (a) When the wages of labourers remain unpaid even on completion of the work, the Divisional officer shall keep the accounts of the
work open for a period of one month (extendable to three months by him). If even then, the wages remain he would close the account of the
work leaving the balance under Suspense head ‘Labourers’ unadjusted.

When these wages are claimed subsequently, these would be paid by reopening the account of the work or charged to a fresh estimate (under
the same head of services as the original work). To avoid payment of claim again, a note of such payment would be kept in the Register of
Works against the closing entry of the previous work vide Para 10.5.18 of CPWA Code (and Note under it).

(b) The payment would be made to the bankers of the contractor after obtaining the following documents;-
(i) An authorization from the contractor in the form of a legally valid document (Power of attorney) authorising the bank to receive
payment.
(ii) Contractor’s own acceptance of the correctness of the amount shown in the Government’s accounts as due to the Contractor.
(c) Total expenditure on the work would be shown in column 8 and 9 of Schedule of Deposit Works (Form 65) and expenditure in excess of
deposits received would be exhibited in column 10 and 11 of the same Form 65. By the head “Suspense – Miscellaneous Work Advances”
vide paras 13.4.3 & 13.4.7 of CPWA Code and Note below Form 650.
(d) The article will continue to be borne on the tools and plant Account till their market value is recovered or it is written off. In the meantime,
no account adjustment is needed; only a note of shortage would be kept in red in the Tools and Plant Ledger (CPWA Form 15) both in Part III
and I. When recovery is made or write off is ordered, entries will be made not only in Part I but also Part III of the Tools and plant Ledger.
Q. What action is to be taken in regard to the following:

i) Cancellation of a cheque issued by a Divisional Officer.

ii) Cash on account of departmental Receipts received by an Officer not in charge of cash book.

iii) A mistake in classification is discovered in a recorded entry in the cash Book/Stock account after end of the month.

iv) A supplier, to whom money is payable, refuses to give receipt in proper form.
Ans: - (a) If the original cheque is not surrendered, the bank will informed of the loss of cheque by Registered Post. If cheque currency has
not expired Bank’s acknowledgement of the receipt of stop payment order will also be insisted upon. If the cheque’s currency has
expired, a non-payment certificate will be obtained from the PAO.
After that procedure, (or after defacing that cheque if it is surrendered to the Divisional Officer), a note of cancellation will be kept
on the Counterfoil or record slip of the cheque and also against the relevant entry in the Cash Book classifying it to head that was
debited when the cheque was originally issued.
(b)The oversheer will remit the money to an officer having a Cash Book or to the treasury /Bank for credit to the account of the
Division under “Public Works Remittances, Remittances in to Bank /Treasuries”. The receipted challan, containing full details, would
be submitted to the next superior officer having a Cash Book. The Officer will take it in his Cash Book as received and simultaneously
deposited in Bank /Treasuries.(Para 6.3.4. of CPWA Code and Note 3 on form CPWA I)
(c)A transfer entry will be prepared withdrawing the amount from the incorrect head of account and transferring it to the proper head
vide Para 8.1.1. of CPWA Code and Para 6.6.4 ibid .
(d) The sale proceeds will be credited to the account of the work under the subhead of “Material”. Any gain or loss is to be considered
and adjusted only on the completion of the work under the sub –head “Additional Charges for Materials issued to Contractor /direct
to work”. (Para 10.3.18 and 10.5.10 (iii) CPWA Code.)
(e) It is open to the Executive Engineer to decline to hand him the cheque or cash or to refuse to remit them to him unless
acknowledgement is given vide note I below para 6.4.8 of CPWA Code.
Q. Indicate the action to be taken in the following cases, quoting authority in support of your answer:-
i) A contractor delays receiving final payment for the more than a month.
ii) Items under Suspense head “Miscellaneous Work Advances” become irrecoverable.
iii) Security Deposit of a contractor has been included in his personal account in the ledger.
iv) An error in the recorded expenditure of a work in the Register of Works comes to light after its accounts have been closed.
v) In the accounts of March there are outstanding items in the Deposit Register, which under the rules of Government are to
be treated as lapsed.
vi) Amount of passed work-charged establishment bill lying unpaid on the day fixed for closing the account of the month.
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vii) The transactions in a Division are so large that their posting in the Register of Works cannot be completed before the
submissions of monthly account to the AG/AO.

Ans: (i) A note to this effect may be recorded on the bill and the balance amount payable to the contractor may be credited to
the head “Public Works Deposit.” If the final account of the contractor shows that he has already been overpaid, an immediate
recovery should be made failing which the amount recoverable be debited to “Miscellaneous Works Advances”. (Para 10.5.19
of CPWA Code).

(ii) Items under “Misc. Works Advances” are cleared by actual recovery or b y transfer to some other head of account. Irrecoverable
items are not adjusted by transfer to other head until orders of write off are given vide Para 13.4.6 of CPWA Code.

(iii) Such deposits are creditable to the head ““Public Works Deposit” unless the amount is less than Rs.500 (in which case it can be
kept in contractor’s personal account in the ledger). (“Para 15.2.4 of CPWA Code) This error can be corrected in the contractor’s
next bill for the same work. If final bill has already been paid, it can be corrected by a Transfer Entry debiting the “Work
concerned- Contractor’s Other Transactions” and credited “Public Works Deposit.” (Para 22.4.25(b).

(iv)Under Para 10.6.12 of CPWA Code, the accounts of the work may be reopened in order to rectify the error unless the amount
involved is not more than Rs.10 in which case it will be sufficient to keep a note of the omission in the Register of Works
Expenditure.

(v) The amounts which are to lapse to Government should be cleared from the Deposit Register by transfer to the Government as
Miscellaneous Receipts of Revenue (Para 15.4.1 of CPWA Code).

(vi)The unpaid wages are entered in a simple register (Like Form 21-A). Subsequent payments are made on a simple hand receipt and
note of payment is kept against original entry in the Register vide Para 10.2.28 of CPWA Code.

(vii) Note below Para 10.6.3 of CPWA Code requires the Register of works to be completed before submitting the Monthly Account.
The Divisional Officer may allow an extra period of few days for completion of the Register of Works. But completion of Works
abstracts and submission of monthly account to the Accountant General/ Accounts Officer should not be delayed on this account.

Q. What are the different modes of payments adopted by a Public Works Divisional Officer for work done and supplies made? Explain
the condition attached to each mode of payment.
Ans: Two modes of payment are adopted by the Public Works Divisional Officer for works and supplies made, namely.
(i) By Cash or cheque- if the work is done or services are rendered by contractor or supplier or any other Central Public Works Division.
(ii) By Book transfer - if the work is done by other Governments department s as a standing arrangement.
Conditions attaching to each mode of payments are as below:
Cheque and Cash
For charges, which are naturally to be paid in cash, e.g. the wages of labo8urers, of establishment charges directly to work and value
payable postage, cash in chest is to be kept at minimum possible to meet the current requirements.
Payment to supplier at outstations can be made by bank drafts. Petty payments can be made by postal money orders at public expense.
A cheque should not be drawn unless it is intended to be paid away. Cheques drawn in favour of the contractors and others should
be made over to them by Disburser direct or through cashier of the Department. Payments due to contractor can be made to their
Banker direct, if the contractor confers authority on the bank, through a legally valid document, to receive payment on his behalf.

Book Transfer.
Payment by book transfer relating to work done by another government department is to be made only when advice of debit is
received. The advice of debit is received. The advice of debit would contain a certificate of audit, certifying that payment- vouchers
have been audited and passed in accordance with the rules (Para 17.2.2 and 17.2.7 of CPWA Code).All other procedure relating to
recording of entries in stores accounts and Measurement Books would would be followed.

Q. What action is to be taken in regard to the following? (10 Marks)

i) Cancellation of a cheque issued by a Divisional Officer

ii) Cash on account of departmental Receipts received by an Officer not in charge of cash book.

iii) A mistake in classification is discovered in a recorded entry in the cash Book/Stock account after end of the month.

iv) A supplier, to whom money is payable, refuses to give receipt in proper form.
Ans: (i) If the original cheque is not surrendered, the bank will informed of the loss of cheque by Registered Post. If cheque currency has not
expired Bank’s acknowledgement of the receipt of stop payment order will also be insisted upon. If the cheque’s currency has expired,
a non-payment certificate will be obtained from the PAO.
After that procedure, (or after defacing that cheque if it is surrendered to the Divisional Officer), a note of cancellation will be kept
on the Counterfoil or record slip of the cheque and also against the relevant entry in the Cash Book classifying it to head that was
debited when the cheque was originally issued.
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(ii)The overseer will remit the money to an officer having a Cash Book or to the treasury /Bank for credit to the account of the
Division under “Public Works Remittances, Remittances in to Bank /Treasuries”. The receipted challan, containing full details, would
be submitted to the next superior officer having a Cash Book. The Officer will take it in his Cash Book as received and simultaneously
deposited in Bank /Treasuries.(Para 6.3.4. of CPWA Code and Note 3 on form CPWA I)
(iii)A transfer entry will be prepared withdrawing the amount from the incorrect head of account and transferring it to the proper head
vide Para 8.1.1. of CPWA Code and Para 6.6.4 ibid .
(iv) The sale proceeds will be credited to the account of the work under the subhead of “Material”. Any gain or loss is to be considered
and adjusted only on the completion of the work under the sub –head “Additional Charges for Materials issued to Contractor /direct
to work”. (Para 10.3.18 and 10.5.10 (iii) CPWA Code.)
(v) It is open to the Executive Engineer to decline to hand him the cheque or cash or to refuse to remit them to him unless
acknowledgement is given vide note I below para 6.4.8 of CPWA Code.
Q. State quoting authority, the nature of the action to be taken by a Divisional Officer in the following cases:

i) The wages of labourers remain unpaid after the completion of the work, and are claimed five later.

ii) A Contractor asks the payment due to him be made to his blank.

iii) Expenditure has been incurred on a deposit work in excess of deposit received.

iv) Certain small articles of furniture, which had been received free of cost, are found missing during verification of Stock at a
Rest House.
Ans: (i) When the wages of labourers remain unpaid even on completion of the work, the Divisional officer shall keep the accounts of the
work open for a period of one month (extendable to three months by him). If even then, the wages remain he would close the account of the
work leaving the balance under Suspense head ‘Labourers’ unadjusted.
When these wages are claimed subsequently, these would be paid by reopening the account of the work or charged to a fresh estimate (under
the same head of services as the original work). To avoid payment of claim again, a note of such payment would be kept in the Register of
Works against the closing entry of the previous work vide Para 10.5.18 of CPWA Code (and Note under it).
(ii) The payment would be made to the bankers of the contractor after obtaining the following documents;-
(i) An authorization from the contractor in the form of a legally valid document (Power of attorney) authorising the bank to receive
payment.
(ii) Contractor’s own acceptance of the correctness of the amount shown in the Government’s accounts as due to the Contractor.
(iii) Total expenditure on the work would be shown in column 8 and 9 of Schedule of Deposit Works (Form 65) and expenditure in excess of
deposits received would be exhibited in column 10 and 11 of the same Form 65. By the head “Suspense – Miscellaneous Work Advances”
vide paras 13.4.3 & 13.4.7 of CPWA Code and Note below Form 650.
(iv) The article will continue to be borne on the tools and plant Account till their market value is recovered or it is written off. In the meantime,
no account adjustment is needed; only a note of shortage would be kept in red in the Tools and Plant Ledger (CPWA Form 15) both in Part III
and I. When recovery is made or write off is ordered, entries will be made not only in Part I but also Part III of the Tools and plant Ledger.
Q. Comment on the following quoting authority.
(a) In a case the contractor tendered for finished items of work and the agreement provided for the issue of bricks by the department
at a rate higher than the market rate. The Executive Engineer permits the contractor to arrange for the supply of bricks, none being
available in stock.
(b) The Executive Engineer proposes to pay a supplier on the production of railway receipt and to debit the charges to the suspense
head ‘Miscellaneous Work Advances’.
(c) On the analysis of the accounts of a completed work by local audit it is found that total quantity of cement issued to the contractor
in in terms of the agreement with him was less than required for the quantity of work done and paid for at finished rates.
(d) On completion of a work, the Executive Engineer proposed to take back the surplus materials issued from stock to the contractor
at current market rates.
(e) The Superintending Engineer issued orders that no departmental charges should be levied for improving the play-ground for
local private school at a cost of Rs. 1,50,000/-
Ans: (a) The Contractor is obliged to obtain bricks for the work at a specified rate from the department and pay at the specified rate. The
department should have purchased bricks from the market rate and supplied to the contractor at stipulated rate, keeping the difference under
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the head “Additional charges for materials issued to the contractor” Now the difference between the value of bricks at specified rate and the
cost of bricks purchased from the market by the contractor would be recovered as amount credited to that head.
(b)Payment for supplies is not permissible until the stores have been received and measured .Government can permit payment on pro-duction
of a railway-receipt vide Note-2 below para 10.2.16 CPWA Code. But it is debitable to the work as “Contractor’s O.T.” or “Advance Payment”,
not “Miscellaneous Work Advances”. It should be corrected.
(c)The contractor’s indenting less cement suggests that:-
(i) The work has been done using less cement. Or
(ii) Market rate of cement was lower than Divisional rate and the contractor obtained his requirements from market, or
(iii) The quantities of work done were fictitiously excessive.

Fact (iii) is verifiable at site; otherwise fact (i) conclusively stands proved. In both the cases (iii) and (i), penalty would be levied on him for
substandard work &/ or for fraud with or without connivance of Divisional Staff. Onus to prove conclusively possibility (ii) lies on the
contractor. Even then amount gained by him plus penalty would be recovered.

(d)In the interest of Government such surplus material can be taken back only it was required for use on works in progress in near future or
for stock. It is taken back at the rate on which it was issued or on current issue rate or market rate whichever is less. (Para 10.3.9 of CPWA
Code)
(e)Administration/ Administrative Ministry (not Superintending Engineer) can remit departmental charges on works costing up to Rs. 1000
Only. That being in not the case, cash grant-in- aid up to actual amount of departmental charges levied on the work can be sanctions vide note
under the rule ibid.

Q7. Please write the head of Accounts of following.

i) Special repairs in a primary health centre.

ii) Amount awarded by a court to contractor in connection with the work of construction of a High Court.
4059 Capital Outlay on Public Works, Other Buildings, Construction, and Administration of Justice (Charged)

iii) Unclaimed amount of final bill of contractor.

iv) Construction of a Road Work.

5054 Capital Outlay on Roads & Bridges; Road Works; Construction

v) Construction of a office building

4059 Capital Outlay on public works; office building; construction

vi) Cash found in excess on actual counting in divisional office.

8443 Civil Deposits, Public Works Deposits, Misc. Deposits

vii) Receipts of Income tax.

viii) Maintenance of Park in central government Residential colony.

ix) Maintenance of a Central Government office Building.

2059 Public Works; office building; Maintenance & Repairs

x) Construction of a Medical college Building.

4210 capital outlay on Medical & Public Health; Medical Education; Training and Research; Building
xi) Expenditure on inauguration of Office Building.

xii) Construction of a Central Government office Building.

xiii) 4059 Capital Outlay on public works; office building; construction

xiv) Construction of a Hospital.

xv) Construction of a Residential Building.

4216 Capital outlay on Housing, Govt Residential Buildings, General Pool Accommodation

xvi) Maintenance of G.P.R.A.

2216 Housing; General Pool Residential Accommodation; Maintenance & Repair
 9

Part I Consolidated Fund Codes No.

i. Revenue Division
Receipt heads (Revenue Account) 0001 to 1999
Expenditure heads (Revenue Account) 2000 to 3999
ii. Capital Division
Receipt heads (Capital Account) 4000
Expenditure heads (Capital Account) 4001 to 5999
iii. Public Debt, Loans and Advances 6001 to 7999
Part II Contingency Fund 8000
Part III Public Account 8001 to 8999

Q8. What would the following items in a Stock Account indicate and what steps would you take to put matters straight?
a) Minus quantities with plus value.
b) Plus quantities with minus value.
Ans:.(a) Minus quantities in the stock Account could occur if some of the items of receipt of stores were not posted or some indents for their
issue were posted twice. This can be set right by posting the unposted Receipts and by deleting the extra Issues.
Plus value due to the following will be rectified at the end of the year:
i. The reduction in the issue rate of the materials borne on the stock account during the period under review or
ii. Sale of stock materials at a rate lower than the issue rate.
Q8. (i) Briefly describe the conditions which a Divisional Officer is to required to observe before incurring expenditure.

Ans:

(ii) “It is an important function of the Divisional Officer to keep a constant watch over the progress of expenditure.” How is this function
discharged by him in practice?
Q. Distinguish clearly and fully between:
i) Refunds and Remissions.
ii) Treasury pass book and Treasury Receipt.
iii) Departmental receipts and Departmental charges.
Issue of materials to works and issue of materials to contractors for works.
Ans:
i. Refunds: Refunds denote repayment of certain items of revenue, which was at some time collected and credited to Govt, account
or kept in the Governments custody in the cash book. Exp: Refund of Security Deposits etc.
Remission: Remission is a term applied to non-collection of Revenue due to Government under the Rules. The Government in
special circumstances forgoes collection of money due before the actual collection starts. Remission is forgoing of such demand
either in full or in part.
ii. Departmental Receipts: Departmental receipts mean revenue realisations made by the Department. These are credited into the
bank/treasury as Misc. receipts of the Public Works Department. Exp: Sale proceeds of fruit of trees along the roads etc.
Departmental Charges: Departmental charges, on the other hand, denote percentage charges levied on works undertaken by PWD
on behalf of other Governments, Commercial Departments of the same Govt, Local bodies & private parties. These are levied on a
percentage basis and intended to recover the cost incurred by PWD on establishment, on Tools & Plants 0and on Audit and
Accounts.
iii. Work Slips: It is prepared and submitted to the Superintending Engineer to obtain his sanction to the excess expenditure, when i.
Expenditure on a work has exceeded the sanctioned estimate or excess is anticipated, and ii. That excess needs approval of higher
authorities. It records the uptodate expenditure on the work against the sanctioned estimate, and compares the total quantity, Rate
and Value for each Sub-Head.
iv. Work Abstract: Works abstract is a record of all transactions (of cash, stock or transfer entry) relating to a work that take place
during a month. This Abstract shows transactions in separate columns, each column representing a sub-head of the work (or
Suspense accounts within the accounts of the work). In other words it is monthly cost sheet of the work showing each transaction
classified by sub-heads.
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v. Works Expenditure: Works expenditure is the term applied to the expenditure on a work the cost of which is met from Revenue
account. ( I.e. which is debited to the major heads numbered from 2001 to 3999). This may relate to construction, repairs,
maintenance, extensions & improvements etc. so long as it is met from Revenue.
vi. Works Outlay: Works outlay too means works expenditure but the distinguishing feature is the nature of expenditure i.e. Capital.
It is met from Capital heads of accounts (Major heads bearing number 4001 to 5999). This includes Construction, Extensions, and
improvement, Replacement and Renewals and Maintenance during the period of Construction.
vii. Sub-Head: The term Sub-Head of a work denotes the sub-division in to which total cost of the work is divided for the purpose of
estimate (and subsequent financial control and statistical purpose).
viii. Sub-Work: is a term applied to a distinct unit of a large work when it is of sufficient importance to keep the accounts thereof
separately. Hostels, Laboratories, Science block Arts block may be treated as Sub-Work of the Work “Construction a Govt. Degree
College Building.
ix. Direct Charges: Direct charges means charges that pertain exclusively to any job under Suspense head “Workshop Suspense”.
These represent direct inputs in the execution of a job, such as direct material and direct labour. Materials purchased or issued for
a job and wages to labour doing that job are examples of Direct Charges.
x. Indirect Charges: Indirect Charges are those which are not direct input on the job but have necessarily to be incurred for the
workshop as a whole. For example Machinery, Cost of Supervisory staff, Watch & Ward, Interest on capital invested, water , rent
of workshop etc. are not directly incurred for carrying out a single job but each job must partake of a portion of these costs when
we work out its manufacturing cost. Thus supervision charges, rents Depreciation charge, interest etc. are all indirect charges relating
to a job undertaken.
xi. Receipts: Receipt is an acknowledgement of cash received by a Public Works Officer or subordinates who are authorised to receive
money on behalf of the Department. It is issued in Form 3 as a mark of the fact that the amount mentioned in it has been received.
xii. Hand Receipt: Hand Receipt is a simple form of voucher in support of payment made in PWD. It is used to support certain
miscellaneous payments like payment of wages lying unpaid and advances for which no, special form has been prescribed. It is
prepared in form 28. The former is the receiving the money and later for paying the money.
xiii. Suspense Heads of Accounts: Each PWD Major head contains a minor head “Suspense”. Under this minor head there are sub-
heads like Stock, Miscellaneous Work Advances, store/service Advance. There are also suspense heads like “Cash settlement
Suspense”, “Material Purchase Settlement Suspense”. Suspense Heads are used for temporary accommodation of such transactions
as cannot be taken to the final head of account immediately, either because recovery or payment or adjustment is waited or because
control on stock is to be kept.
xiv. Suspense Account within the account of a Work: Suspense transactions, not relating to the division as a whole but pertaining to
a specific work, where recovery or payment or adjustment is awaited are taken to the suspense account within the account of the
work and are shown under heads like i. Advance Payments ii. Secured Advance iii. Other transactions iv. Labourers and v. Land
Acquisition.
xv. Schedule of Rates: Schedule of rates is a schedule maintained in a Public Works Division indicating the rates in respect of all the
classes of works that are commonly undertaken in the Division. This schedule facilitates the preparation of estimates in the Division.
This schedule is also referred to at the time of settling rates for work during negotiation with the contractors. It is prepared on the
basis of rates prevailing in each locality. It is supplemented by a detailed analysis showing how the elements of cost of component
items of work have been added up to arrive at the final rate. The schedule of Rates is subject to revision after intervals when the
market rates have gone up or down substantially.
xvi. Analysis of Rates is a component-wise breakup of the rate indicated for each item of work in the schedule of rates or in the estimate
or in a non-scheduled item in a contractor’s bill. It is working sheet showing the quantity and value of each input required to
completely do an item of work. If some inputs are to be replaced by superior or inferior inputs, then analysis of rates is handy to
work out Rate for the modified item of work. It, thus, supplements or supports the schedule of rates.

Q5. Comment on the following quoting authority.

i) A measurement book has entries of later dates on earlier pages than those of earlier dates. The officer, who wrote it up,
explains that he later used some pages originally left blank inadvertently.
ii) A sub-divisional officer authorizes the issue to a contractor, for use on a work of materials which exist in Government stock,
but the supply of which by Government is not provided for in the contract.
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iii) A Divisional Officer has to get labourers from a place some three days journey distant. He propose to pay them (i) wages for
a period of 15days which elapsed between his sending for them and their commencing work, and ii daily allowance as for
Class IV servants on their assurance that the spent more than this amount during their travel.
Ans: (i)It is not correct to use up pages of the measurement book left blank inadvertently vide para 10.2.8 (h) of CPWA Code. The plea of
the writer of the book can possibly be an alibi to cover payments made to a contractor in a manner contrary to the provisions of para 10.2.7
and 10.2.16 of CPWA code. This aspect should be checked.
(ii) The express authority of the Superintending Engineer is required who will specify the rates to be charged vide para 10.3.3 CPWA Code.
(iii) Under para 10.2.6 of CPWA Code, the labourers brought from a distance can be paid wages for the days occupied in the journey to and
from the site of the work if they join the work with proper despatch. In this case they can be paid wages for three days only of journey to the
site of work. Payment of T.A. to them as class IV servant is wholly unjustified. At best they can be paid actual travelling expenses (and not
incidental charges etc.) vide para 10.2.6 of CPWA Code.