What
1.
is
circumstances
Transfer which
Entry?
necessitate
Indicate
th e
preparation
of
transfer entries in Public Works Accounts?
Transfer entries are entries to transfer an item of receipt or charge from the account of a work-in-progress or from a regular head of account to the account of another work or head. The necessity of transfer arises:
a) to correct an error of classication in the srcinal accounts
b) to transfer amounts to proper heads if they are kept under one head in the rst instance as a matter of accounting policy.
c) To adjust to a proper head of account an item outstanding in a suspense account or under a debt or deposit head.
d) To bring to account certain classes of transactions which do not pass through the cash or stock account, eg.,
i)
to credit the cost of materials purchased for works to !aterial "urchase #ettlement #uspense $ccount%.
ii)
To credit of amounts due to contractors on closed accounts to "ublic &orks 'eposits%.
iii)
To transfer the (alue of tools and plant to other departments for Tools and "lant articles transferred to them at a price.
i()
To charge, on a percentage basis, th e charges on establishment, Tools and "lant, pensions and $udit and $ccounts.
e) to respond to a remittance transaction ad(ised by an $ccounts *ce.
f) to relie(e the account of a work-in-progress of items which ha(e ceased to be debitable to the estimate of the work +such as clearance of its suspense accounts on closure of works accounts, and transfer of stores to another work or account.
g) To eect periodical adjustments +such as credit o interest and contribution to the accounts of subscriber to contributory pro(ident fund).
What
.
is Lumpsum
Contract?
What are
its
essential characteristics?
$ lumpsum contract is a contract under which a contractor agrees to e/ecute work with all its contingencies in accordance with the drawings and specications for a /ed sum. 0ts essential characteristics may summer up as under:-
1)
$ schedule of rates should be specied to regulate the charges on account of additions and alterations not co(ered by the lump-sum.
)
/cept a s s tated i n it em + i) ab o(e, no r eference should be made to the departmental estimate of the work, schedule of rates and 2uantities of work to be e/ecuted.
3)
'etailed measurements of work are not to be taken e/cept for the additions and alterations.
4)
The form of contract should be as p rescribed by go(ernment in consultation with its 5aw *cers, 6inance 'e partment and $ud it 'e partment. material change be made in it.
7o
8)
"ayments for work done are be made to the contractor only on the certicates of the o*cer in charge of the work that (alue of the work done is not less than the specied amount in conformity with the contract and it has been done in accordance with the designs and specications.
#uch payments including
payment for measured up additions and alterations are treated as ad(ance payment.
9)
6inal payment is made only after 'i(isional *cers certifying completion of the work according to the prescribed specications and drawings.
)
The account of additions and alterations +to e treated
as
ad(ance
payments
made
against
measurements) should be kept separate from rest of the work and payments. 6inal payment for them too is made on 6orm -;.
3.
Briey describe how the accounts of material!at!
sire are maintained?
"aterial!at!site account is a numerical account of
the items of materials issued for use on a work which is under departmental e/ecution +or where the contractor is working at labo ur rates only).
0t is ke pt in 6or m 38 and
supports the transactions taken under the head !aterials% in the works abstract. This account shows the progressi(e
2uantity of each item of materials brought at site for use on the work.
Accountin# of cost of materials is not indicated in
the materials at site accounts, it is shown in the sub-head !aterials% in the works abstract. &hen material is issued form
$isposal of unused materials in materials at site account% !aterials issued to work in e/cess of re2uirements
ma be transferred to
0f possible the y should als o be
transferred to other works in progress, where they are needed.
The materials so transferred will be priced at the rate srcinally charged to the work or the current market rates whiche(er is lower.
=losing the materials at site account: $fter the completion of the work, the theoretical consumption of each item of materials is compared with the 2uantity issued as per 6orm 38 and e/planation for e/cess issues as per 6orm 38 en2uired>recorded. n the basis of theoretical calculations,
the cost of materials consumed on each sub head is worked out at the issue rate pre(ailing at the time of completion. 0n the register of works in the di(ision, the suspense head !aterials% is credited and each sub-head debited with the cost of mate rials consumed on them.
$ny plus or minus
balance left under !aterials% is transferred to the sub-head $dditional =harges for !aterials issued to =ontractors or &orks%.
4.
"ention the conditions under which a
contractor&s re'uest for part payment of his ()n Account& bill under check in a di*isional o+ce can be accepted?
$ lumpsum ad(ance may be paid, on application from a contractor, whose <n $ccount ;ill is under check in the di(isional o*ce and it is e/pected that authori?ing its payment is likely to be delayed.
The following conditions should be satised:-
a) the bill should be actually under check in the 'i(ision.
b) $ note of payment of ad(ance should be kept on the srcinal bill for which it is being paid and also on the connected entry in the !easurement ;ook.
c) 0t is treated in the accounts as =ontractors ther transactions%
d) $n undertaking should be obtain ed from the contrac tor that he will refund the e/cess amount recei(ed if the amount of this ad(ance paid is more than the amount of the bill when passed.
8.
$escribe briey the main features of Public
Works Accounts?
The main features of "ublic &orks 'i(ision system of accounts are enumerated below:-
1) $rawal of funds by che'ues and collection of departmental receipts%!
The 'i(isional *cer is the primary disbursing o*cer of the di(ision, who is permitted to obtain by che2ues on the ;ank, the funds re2uired for all disbursements in connection with the e/ecution of works, pay and allowances of the @a?etted and 7on-ga?etted sta working in the di(ision of ="&' as well as in the di(ision of such other departments as may be specially authori?ed in this behalf and contingent charges. Ae also collects some of the departmental receipts of the di(ision and pays them into the ;ank.
.) Compilation of accounts%!
The accounts of these
receipts and disbursements +including the transactions of subordinate o*cials acting on his behalf) are compiled under his super(ision by an accountant and are submitted monthly to the $ccounts *cer.
3) "aintenance of ,tore accounts% Ae is further re2uired to maintain clear accounts of all stores recei(ed by him and make these accounts a(ailable for audit.
4) Preparation of proforma accounts%! Bnder each major head of e/penditure, the charges on each project, work or sub-work are recorded separately in the accounts of 'i(isional *ce. 0n the case of works of certain classes e.g., +i) 0rrigation and +ii) Cuasi =ommercial undertakings, such as self
supporting
workshop,
proforma
accounts
of
all
transactions connected therewith are prepared annually by the $ccounts *cer or by the 'i(isional *cer, as may be re2uired and for this purpose, the receipts pertaining to each work of this class are also shown separately in 'i(isional $ccounts.
9.
What are the points which should recei*e special
attention of the $i*isional Accountant in connection with the Accounts of "arch?
The
following
points
should
recei(e
the
special
attention of the 'i(isional $ccountant in connection with the accounts for !arch:-
a) The closing balance of the =ash ;alance should be supported by the:-
i) riginal =ash ;alance reports of all disbursing o*cers.
ii) 'i(isional *cers certicate that he has obtained and retained
in
his
o*ce
acknowledgements
from
the
subordinate o*cers in respect of amounts of temporary ad(ances and imprests as per the =ash ;alance Deports.
b) $ report in the form below is sub-joined to part-00 of the schedule of !onthly #ettlement with the Treasuries in respect of che2ues drawn to meet payments of works.
"articulars
7o.of che2ues
$mount
issued 1. 6or the whole month . 'uring the last working day of the month
c) 0n #tate "ublic &orks 'epartment, the following schedules must be dispatched to reach the $ccountant @eneral by
th
$pril. $ny additions and corrections to them must be sent by 1th $pril at the latest.
i) 'ebit or =redit to adjusting account between =entral and #tate @o(ernments. ii) 'ebit or =redit to adjusting account with Dailways, 'efence and "ET
d) The schedule of deposits should be accompanied by the accountant of 0nterest ;earing #ecurities 6orm 99
.
What are the checks applied by the $i*isional
Accountant to "uster -olls?
The 'i(isional $ccountant has to see that:
i)
"ayment of wages in arrears are supported by
Aand Deceipts.
ii.
wages more than three months old are carried o(er under orders of 'i(isional *cers only
iii.
unpaid wages claimed subse2uent to the closing of accounts of a work are charged against a fresh estimate, and a note of payment kept against the closing entry of original work in the register of works.
+This will guard against double payment)
F. What principles would be obser*ed in /0in# the rate at which an article of stock should be issued to works and contractors?
!aterials are issued from stock to works at a rate known as issue rate, it should be appro/imately e2ual the actual cost of the stores and that there may be no prot or loss on #tock $ccount. This rate is /ed at the beginning of each year, as purchases during the year are made, (ariation of cost should be watched. 0f there is material (ariation in the purchase price, the issue rate can be re(ised at the discretion of the 'i(isional *cer. &hen supplies are issued at a rate higher or lower than the issue rate as per the agreement but in that case the #uspense head #tock is gi(en credit at issue rate, the resultant gain or loss is borne by the work being done by the contractor.
&hen the
materials issued ad market rate, ie., the cost per unit at which the article can be procured, at a gi(en item from the public market, the cost should include the e/penses like carriage and incidental charges and pro(ision for waste and depreciation may be made.
0f the issue rate is appreciably lower than the market rate, the following precautions are obser(ed.
i) $ll sales and issue to contractors shall be made at market rates. ii) 0ssues to other 'i(isions and 'epartments shall be restricted and may be made at a rate higher than the 0ssue Date.
G.
What is Priced ,tores Led#er? 1ow is pro/t and
loss on stock ad2usted?
$ccounts ;ranch of 'i(isional *ce keeps a priced #tores 5edger in form ="&$ 1. The columns of the ledge pro(ide for receipt, issues and balances, both in terms of 2uantities and (alue. $rticles recei(ed and articles issued in the stores are known from the copies of @oods Decei(ed #heets and cop ies of 0nde nts.
@oods recei(ed are (alued
from the suppliers bills while goods issued are priced at 0ssue Date /ed for the purp ose.
This gi(es a e/ample
priced and 2uantity account of the sores of the 'i(ision. The ledger is closed monthly for 2uantities and (alue and $bstract of total receipts, issues and balances is worked out.
$t the end of the year, the 0ssue Date for the ne/t year is /ed. The dierence between the +i) $ccount ;alance and +ii) "riced 5edger ;alance at that time is analysed. "rot or loss due to re(ision of rates is worked out and adjusted as credit to re(enue +if it is a prot) or debited to ther /penditure H 5osses on #tock% +if it is a loss).
1I. 3ame the important suspense heads in di*isional accounts and brin# out the purpose ser*ed by each4
The important suspense heads operated in a "ublic &orks 'i(ision are described as under:
5. "aterial Purchase ,ettlement ,uspense% The head
!aterial "urchase #ettlement #uspense $ccount% bring to account the (alue of materials purchased +from suppliers, other di(isions or departments) which ha(e not been paid for.
This hea d is credited and stock suspense or work
concerned is debited in the following manner:
a) #upplies for works:
0mmediately on the da y of
receipt of materials, if they were not paid for on the day of purchase.
b) #upplies for #tock:
$t the ti me of cl osing the
monthly account of stock if payment has not been made by them.
&hen the bill of the supplier is recei(ed and passed for payments !aterial "urchase #ettlement suspense% head is debited against the credit already outstanding. This will pair o the credit outstanding there and clear the suspense head.
0f, the amount payable to the supplier turns out to be more than the one credited to suspense, then the additional amount paid is charged to the work>stock direct while the amount srcinally taken into account on receipt of supply is debited to !aterial "urchase #ettlement #uspense%.
0f the amount nally payable turns out to be less than the one adjusted srcinally, the dierence will be cleared by credit to work>stock and minus credit to !aterial "urchase #ettlement #uspense%
6. ,tock% This account indicate the (alue of stores kept in a
'i(ision for general use for works. The cost of all materials purchased or recei(ed for general use of a "&' 'i(ision is debited to this head.
&hen the mat erials are is sued to
works +or other di(isions, departments, accounts or parties), then their (alue is debited to their account by credit to this head. $ny sale proceeds of the stock are also credited to this head. 7et account balance under suspense head stock, thus represents the (alue of materials in hand.
This
suspense head controls and regulates the (alue of purchase, issue and balance in hand of the articles of stock.
7. "iscellaneous Works Ad*ance% This sub-head of
suspense is used to watch some special kinds of reco(eries such asJ
a) Deco(eries for sale of stores on credit by "&'.
b) Deco(eries for e/penditure on non-go(ernment works in e/cess of the amount of deposits recei(ed in ad(ance.
c) #hortage or losses of cash or stores etc.
d) !unicipal ta/es paid by "&' on behalf of tenants pending reco(ery.
'ebits which can not be classied to the nal head of account immediately for want of some information or details are also kept temporarily under this head pending their correct classication.
The items under this head are cleared either by actual cash reco(ery or by transfer to some other head of account. 0tems which ha(e become irreco(erable are, howe(er, not transferred to other heads unless ordered to be written o.
84 Workshop ,uspense% &orkshop #uspense $ccount is
kept in the workshops of "ublic &orks 'epartment. Bnder this suspense head, a separate account is kept for each job undertaken so that charges relating to each job maybe collected together from month to month.
peration
=harges% indicate the e/penses incurred to complete the job. =harges of a general nature are distributed o(er all the jobs on a percentage basis. The job account will be closed and
remo(ed from this suspene account only by transfer to the work concerned if the job was done for a work or by transfer to deposit recei(ed if it was done for other parties.
94 ,tores:,er*ice Ad*ance%
0f a di(ision needs stores or
ser(ices from another di(ision, it must make ad(ance payment for it.
The amount paid in ad(ance is debited to
this sub-head of suspense under the major head I8G% or 3I84% etc.
This head is clea red on receipt of the deta ils
supplied by the ="&' 'i(ision that recei(ed the ad(ance.
;4 ,tores:,er*ices rendered% The di(ision recei(ing that
ad(ance for supplying stores or for rendering ser(ice credits the amount so recei(ed under this sub-head of suspense. =ost of supplies or ser(ices rendered is debited to this head and complete details along with un-utilised balance are sent to the ="&' 'i(ision concerned in settlement of the ad(ance recei(ed.
11.
E0plain the duties of $i*isional Accountant in
re#ard to%
'uties of 'i(isional $ccountant in regard to works e/penditure:
1) The 'i(isional $ccountant to see that e/penditure which is within the competence of the 'i(isional *cer to sanction or regulari?e, is not incurred, under the orders of sub-ordinate o*cers, without his knowledge. $ll such items of e/penditure should at once be brought to the notice of the 'i(isional *cer and his orders obtained and placed on record.
) Ae is responsible for checking the e/penditure with the estimated 2uality of work to be done, the sanctioned rate and the sanctioned cost and bring to notice all de(iations from the sanctioned estimate.
3) &hen a reco(ery which can not be watched through a suspense or other account specially prescribed for the purpose, has been ordered to be made from a contractor or other person, the order should be noted in register of reco(eries in 6orm G8, so that the amounts reco(ered from time to time may be recorded against it and prompt compliance with the order watched
4) The amounts of receipts in reduction of e/penditure on works-in-progress, eg., sale proceeds of surplus materials and plant ac2uired specially for any work, or of materials recei(ed from dismantled structures, are not utilised towards additional e/penditure.
#a(ings due to abandonment of
parts of a work, are not utilised towards unauthori?ed e/penditure.
transactions likely to be challenged by $udit>"$ to the 'i(isional *cer.
0f the 'i(is ional *cer has been o(er-
ruled and is not satised with the decision, the 'i(isional $ccountants objections and lay it before the 'i(isional *cer for reconsideration and recording his reasons for disagreeing with the 'i(isional $ccountant. The register is put
up
before
the
0nspection
"arty
of
$ccountant
@eneral>"$ or e/tract sent to those o*ces if an inspection doesnt take place within one year.
564
,tate
the
reco*eries=
which are
treated as
re*enue receipts in the accounts of Public Works )+ces4 What are the e0ceptions?
$ll reco(eries of e/penditure appearing in the accounts of public works o*ces are ordinarily and as a matter of rule, treated as re(enue receipts, as will be clear from the e/amples gi(en below
a) Deco(eries of establishment charges as percentage rates in respect of works carried out on behalf of other @o(ernments or "ri(ate parties are treated as De(enue Deceipt.
b) Deco(eries of tools and plant charge s at percentage rates in respect of works carried out on behalf of local bodies and other go(ernments are taken as re(enue receipts.
c) Deco(eries on accoun t of cost of $udit and $ccount charges in respect of works carried out on behalf of non-go(ernment bodies or indi(iduals are adjusted as De(enue Deceipts.
d) Deco(eries on account of pensionary charges and lea(e charges are credited to De(enue Deceipts.
E0ceptions%
a) Deco(eries of o(er payments are adjusted by reduction
from
e/penditure
under
the
detailed
head
pre(iously o(er charged.
b) Deco(eries of e/penditure upon works-in-progress are taken in reduction of e/penditure pre(iously booked:-
i) #ale proceeds of stores material and tools and plant re2uired specially for any works.
ii) #ale proceeds of materials recei(ed from dismantled structure.
c) Deco(eries of establishment charges and tools and plant
at
percentage
rates
when
made
from
other
departments of the some go(ernment are taken in reduction of
e/penditure
under
the
head
'irection
and
$dministration% or !achinery and 2uipment%.
d) "rorata share of the charges for establishment and tools and plant calculated at the end of the year are treated as reduction of e/penditure under minor head 'irection and $dministration%
and
!achinery
and
2uipment%
respecti(ely of the major head under which the total charges were srcinally debited.
e) Deco(eries of charges pre(iously charged to capital account are always taken in reduction of e/penditure as receipts and reco(eries on capital account.
13. 1ow are accounts closed on completion of works?
The accounts of work should be closed as soon as possible after the actual construction is completed and it should be seen that all the adjustments of cost necessary order and the rules ha(e been duly made in the accounts.
1. $ll liabilities, not srcinally brought to account, ha(e either been li2uidated or ha(e been taken into the accounts.
. ;alances under suspense heads like =ontractors%, 5abourers% 5and ac2uisition suspense% and !aterials% ha(e been cleared.
3. 0f whole or part of the e/penditure on the work is reco(erable from another department, go(ernment, local body or indi(idual, reco(ery should be eected>completed.
=learing suspense accounts of contractors>labourers: #uspense accounts of contractors should be closed after the e/piry of one month from the passage of his bill by transferring his balance to 'eposits% +if payable) or !iscellaneous &orks $d(ances% +if reco(erable).
#uspense account of labourers should be kept open for a period of one mon th after completion of the work .
This
period may be e/tended upto three months by the 'i(isional *cer. Then, it may be left uncleared and the balance left will be shown in the completion report.
"anner of Closin#% &hen the work ha been completed and
accounts settled and written up as mentioned abo(e, a double red ink line should be ruled below the last and nal entries and a note o(er the signatures of the 'i(isional *cer made in red ink work completed in IIKKKKKKK%.
KKKKKKKKKKKKK,
That will be the authority to treat the accounts as closed.
The work shou ld not be rep orted as completed
unless thi s authority has been placed on record.
+the
une/pended balance of deposit works should also be refunded).
E0cess o*er the estimates% 0f it is within the powers of the
'i(isional *cer to sanction, it should be passed by the 'i(isional *cer, or a 'etailed =ompletion Deport in 6orm 44 prepared and submitted to the #uperintending ngineer 4;49 to 5>4;4 of CPWA Code.4
14. 1ow is imprest di@erent from Temporary Ad*ance?
0mprest is a standing ad(ance of a /ed sum of money gi(en to an indi(idual to enable him to make certain classes of disbursement, which may be entrusted to his charge. Temporary ad(ance is a remittance to a subordinate o*cer to enable him to make specic petty payme nts on (ouchers which ha(e been already passed for payment.
The former is a standing ad(ance of a /ed sum for making payments left to the charge of a subordinate while the latter is an ad(ance made temporarily to a subordinate to make a number of specic petty payments on !uster Dolls and (ouchers which ha(e already been passed for payment.
18. 1ow is imprest account maintained?
The account of imprest cash is kept by the holder in duplicate in 6orm 0mprest =ash $c count.
The copy is
retained by the imprest holder and the srcinal, along with the paid (ouchers, is sent to the o*cer from whom the imprest is hel d.
This account of his imprest should be
submitted at the time of closure of monthly account by the 'i(isional *cer.
The account of imprest may be closed earlier also if:-
i) the balance of imprest is small and needs recoupmentJ or ii) it is proposed to increase>decrease the amount of the imprest, or iii) the account of the imprest is to be closed altogether
The amount spent by the imprest holder out of his imprest is brought to account by the disbursing o*cer in his =ash ;ook, and generally an e2ui(alent amount is paid to the imprest holder by him so that the amount a(ailable with the imprest holder is again e2ual to the amount of imprest srcinally granted.
19. What are the rules for correction of errors of classi/cation if the accounts are closed? <5> marks. 6>>8
=orrecting errors after the accounts of the year +in which the error took place) are already closed.
a) $n item taken to one debt, deposit, suspense or remittance head instead of another, correct it by transferring it from one to the other head.
b) $n item credited +or debited) to debt, deposit, suspense or remittance head instead of credit to a re(enue head +or debit to an e/penditure head), it should be corrected by transfer to the head to which it should ha(e srcinally appeared.
c) $n item credited to re(enue instead of a debt, deposit, suspense or remittance head, it should be credited to the proper head by debiting refunds.
d) $n item debited to e/penditure head instead of a debt, deposit, sus pense or remittance head.
0t
should be debited to the proper head and credited to the corresponding Deceipt head +II8-!iscellaneous @eneral #er(ices if there is no corresponding Deceipt Aead)
+7ote: if the correction aects a debt head
for which budget is obtained, the correction should be made to it by minus credit instead of debit to it).
1. List
the
methods
used
fo r
treatment
of
reco*eries on account of establishment and Tools and Plants?
<5> marks.
6>>8
Deco(eries on account of establishment and tools and plant charges should be treated as follows:-
i. -eco*eries of establishment char#es at percenta#e basis%!
These reco(eries, in so far as they are aected from other departments of the same go(ernment should be adjusted by deduction from e/penditure under the minor head 'irection and $dministration%. Deco(eries on account of works carried out on behalf of pri(ate parties or local funds or other go(ernments howe(er, should be treated as re(enue receipts.
ii. -eco*eries on account of char#es for lea*e and pension%!
&hen the reco(eries on account of establishment charges, for lea(e and pension, the portion of the reco(eries representing lea(e should be treated as re(enue receipts under the "ublic &orks major head concerned. Deco(eries
on account of pensionary contributions should in the case of =i(il
&orks,
be
credited
to
II1-=ontributions
and
Deco(eries towards pension and other Detirement ;enets% while such reco(eries in the case of 0rrigation 'epartment, should be credited to the 0rrigation major head concerned as receipts or reco(eries of e/penditure.
iii. -eco*eries of tools and plant char#es at percenta#e basis%!
Deco(eries from other departments of the Bnion @o(ernment should be adjusted as reduction of e/penditure under the minor head Tools and "lant%. $ll other reco(eries should be treated as re(enue receipts under the major head concerned.
i*. Prorata share of the char#es for 2oint establishment and tools and plant%!
The prorate shares calculated at the end of the year should be treated as reduction of e/penditure under the minor head 'irection and $dministration% and Tools and "lant% respecti(ely of the major head concerned where under they were pre(iously charged.
1F. What kind of transactions are classi/ed as Public Works $eposits? <5>
6>8.
'eposit transactions of "ublic &orks 'epartment are of two kinds:
1. "ublic &orks 'eposits, which pass through the regular accounts of the di(ision: . 0nterest bearing #ecurities
'eposits of the rst kind comprise transactions of the following classes, which are passed through the head "ublic &orks 'eposits:
a) =ash 'eposits of subordinate as security
b) =ash 'eposits of contractors as security.
c) 'eposit for work other than +Taka(i &orks) to be done
d) #ums due to contractors on closed accounts and
e) !iscellaneous 'eposits
The interest bearing securities referred to in class abo(e are deposited by subordinates as contractors. These do not pass through the regular accounts of di(ision
1G. 1ow are the accounts of Public Works $eposits maintained in a Public Works $i*ision?
The transactions relating to "ublic &orks 'i(ision should be maintained in the 'i(isional *ce in a 'eposit Degister.
This register show month by mont h, the total
receipts and adjustments and the closing balance of each separate deposit item, but the deposits for work to be done accounted for in detail in the schedule of 'eposit &orks. Transactions connected with interest-bearing securities do not pass through the cash book and conse2uently the regular accounts of the 'i(ision, unless any such cash actually passes through the hands of *cer of the department, which should be a(o idable.
$ register of the
receipt and disposal of these securities in 6orm F8 be kept and at the close of the year $ccount of 0nterest bearing securities prepared from the register for submission to the $ccounts *cer.
I. What are the responsibilities of a $i*isional Accountant in the e0amination of Accounts -eturns of ,ub!$i*isional )+cers?
The responsibilities of a 'i(isional $ccountant in respect of e/amination of $ccounts Deturns of #ub-'i(isional *cers are-
1) That they ha(e been recei(ed in a complete
state,
2) That all sums recei(able are duly reali?ed, and
on reali?ation remitted to 'i(isional =ash chest for proper accounting
3) That
all
bills
which
prepared>submitted
are
by
re2uired
the
to
be
#ub-'i(isional
*cer are prepared in accordance with the rules applicable to each case and are co(ered by sanction and appropriation.
4) $ll charges are co(ered by proper sanctions and
budget grants.
5) $ll the claims are (alid and in order.
6) $ll the bills are prepared on the basis of rates
sanctioned by the =ompetent $uthorities.
7) 6acts of 2uantities of work done, supplies made,
etc.,
or
ser(ices
rendered
certied
by
authori?ed o*cers.
8) Their
arithmetical
accuracy
e*ciently under his super(ision.
is
checked
1. 1ow is the recti/cation of error in Cash Book carried out?
$n error in the =ash ;ook should not be erased or o(erwritten.
a) if the error is disco(ered before the accounts of the month ha(e been closed, it should be corrected by drawing a pen through the incorrect entry and inserting the correct one in red ink between the lines.
The
correction should be initialed +with date) by the 'isbursing *cer.
b) 0f it is disco(ered after the accounts of the month ha(e been closed, (erbal correction can be made if it does not aects the +i) the amount, +ii) classication or +iii) 7ame of the work . therwise, it can be corr ected by formal transfer entry onl y.
0n that case , the numbe r
and date of the Transfer ntry made to correct the error should be noted in red ink against the incorrect entry n the =ash ;ook. +"ara 9.9.4 of ="&$ =ode)
. Why are measurement books considered *ery important accounts record?
<8 marks. <6>>7.
!easurement books constitute the most important and basic record in a "ublic &orks 'i(ision as they incorporate the initial accounts of all works e/ecuted by contractors and supplies made by suppliers for specic works. 0t is only in the case of departmental e/ecution of works carried through daily labour that the measurement book may be dispensed with on the basis of entries made therein, the bills of contractors and suppliers are prepared and paid.
3. What are the precautions to be taken in the use of standard measurement books of buildin#s?
#tandard !easure ;ooks are standard measurements of ;uildings and other such works, can be used repeatedly for works relating to the building such as for white washing , polishing or painting the doors and windows as the area of walls, doors, Loors and windows etc., does not change after the building had been completed and entered in the #tandard !easurement ;ook.
"recautions in using #tandard !easurement ;ooks.
1) These should be numbered in an alphabetical series.
) The entries should be recorded legibly in ink and certied as correct by a responsible o*cer.
3) These should either be written by the #ub-'i(isional *cer himself or the e/ecuti(e subordinate in-charge under his orders. ach set of measurements taken by the e/ecuti(e subordinate in-charge should be fully checked by the #ub-'i(isional *cer after which is should be e/amined by 'i(isional *cer and declared in writing in the book itself as nally appro(ed by him for the purposes of preparing annual repair estimates and contractors bills for the work done. Bntil this done, the book will not be assigned a number and will not be entered in the Degister of #tandard !easurement ;ooks.
4) These will be brought up-to-date under the super(ision of #ub-'i(isional *cer.
$ll such corrections will be
attested by the #ub-'i(isional *cer.
8) The bill passing o*cer should certify that whole work as per #tandard !easurement ;ook has been done and it has not been billed pre(iously.
9) The 'i(isional *cer should period ically certify that all standard books ha(e been inspected by him, that entries therein ha(e not been tampered with, and that all corrections due to additions and alterations in the buildings ha(e been made in the books.
4. What are the duties of a disbursin# o+cer in relation to *eri/cation of entries in the Cash Book of a Public Works $i*ision?
The 'isbursing *cer should check all the entries in his =ash ;ook as soon as possible after the date of their occurrence and he should initial each entry and date his initial after the last entry checked. The =ash ;ook should be signed by him at the end of the month and such signatures mean he takes responsibility for all the entries of the month including the closing balance.
'uring (erication of the entries, the 'isbursing *cer should:-
a) =ompare each entry of paym ent with the gross amount of the (oucher and see that:-
1) The (ouche r bears his or 'i(isional *cers payment order.
) Ae or authori?ed subo rdinate has stamped and signed the (oucher as disbursed%.
b) #ee that deductions creditable to other works or other heads of account ha(e been posted on the receipt side of the =ash ;ook.
c) =ompare each entry of payments into the Treasuries or bank% with the receipt on the challan +or pass book) to satisfy that the amount has actually been credited into the Treasury>;ank.
d) Merify the totaling of the =ash ;ook or ha(e it done by some one other than the writer of the =ash ;ook +who should initial and date it).
e) Merify the amounts posted in the ;ank or Treasury% column with the counterfoils of the che2ues issued.
f) =ount the actual bal ance of the cash in chest on the last working day of each mo nth.
=ash found surplus
should be credited to !iscellaneous 'eposits% while cash found short should be debited to !iscellaneous &orks $d(ances%.
8. What are the rules which should be followed in preparation and maintenance of the "uster -olls <6> marks.
6>>5
!uster Dolls should be prepared in 6orm 1 and dealt with in accordance with the following rules:-
a. ne or more muster rolls should be kept for each work,
but muster rolls should ne(er be prepared in duplicate.
b. 5abourers may be paid more than once a month
according to local con(enience, but separate rolls must be prepared for each period of payment. c. The daily attendances and absence of labourers and the
nes inLicted on them should be recorded daily in "art-0 of the !uster Dollin such a way as-
1) to facilitate to correct calculation of the net wages of each person for the period of payment, ) to render it di*cult to tamper with or to make unauthori?ed additions to, or alterations in entries once made, and to facilitate the correct classication of the cost of labour by works and sub-heads of works where necessary.
d. $fter a !uster Doll is passed, payment there on should
be made as e/peditiously as possible, obtaining the acknowledgements, duly stamped, where necessary. ach payment should be made or witnessed by the o*cial of the highest standing a(ailable, who should certify the payments, indi(idually or by group, at the same time specifying, both in words and in gures, at the foot of the !uster Doll, the total amount paid on each date.
e. 0tems remaining un-paid should be recorded in a
register
of
unpaid
wages,
6or
1-$
before
the
memorandum at the foot of the muster roll is completely by the person who made the payment.
f. #ubse2uent payment of unpaid wages should be made
on Aand Deceipt, 6orm F, keeping a note in the Degister of unpaid wages as well as the rele(ant !uster roll.
#. &ages remaining unpaid for three months should be
reported to the 'i(isional *cer, who will decide as to its continued e/hibition in the #ub-'i(isional records.
h. 0n part-00 of the muster roll form should be recorded the
progress of work done by the labour shown thereon in all
cases
where
measurements.
the
work
is
susceptible
of
0f the wor k is not sus ceptible of
measurements of a certicate to this eect should be recorded.
i. The check of !uster Doll with reference to the entries in
!easurement ;ook will be done to the e/tent of 1II per cent in the #ub-'i(ision before payments are made by the 'i(isional *cer.
2. 0n e/ceptional and urgent cases, such as urgent silt
clearance
of
canals
or
closing
breaches,
where
labourers are employed casually for short periods, payments may be made on =asual 5abour Doll, 6orm
, in which the names of the labourers need not be gi(en but such payments may not be made e/cept by a @a?etted *cer.
9. What are the #eneral instructions which should be
carefully
obser*ed
in
recordin#
$etailed
"easurements?
'etailed !easurement ;ooks constitute the most important and basic record of the "ublic &orks 'epartment. The initial accounts of all works e/ecuted by the contractors and materials obtained direct for works are kept in these books. $ll payments due to the contractors or suppliers are made on the basis of entries in these ;ooks.
"recautions to be taken when recording 'etailed !easurement ;ooks.
a. $ll measurements should be taken neatly and directly
on !easurement ;ooks in 6orm 3 at the site of work +and not copied in them from some other record).
b. 'etailed measurements are to be recorded by the
authori?ed o*cer in-charge of the work to whom the !easurement ;ook has been supplied.
c. ach set of measurements should start with entries
stating +i) full name of the work as gi(en in the estimate +ii) situation of the work, +iii) name of the contractor, +i() number and date of the agreement,+() date of written orders to commence work, +(i) due date of completion
of
work
and
+(ii)
date
of
actual
commencement.
d. 6or measurements relating to a running account,
reference to the last set of measurements should always be traced and recorded.
e. $ll entries should be in ink only, ne(er with pencil or
inked o(er.
f. 7o entry should be erased, if a mistake is made, it
should be scored out and corrected by inserting entry in red ink.
#. &hen a measurement is cancelled, the orders of the
o*cer canceling it should be recorded on it o(er dated initials of the o*cer who had taken the measurements srcinally, gi(ing reason for cancellation.
;etter still,
the cancellation should bear the initials of the o*cer who ordered cancellation.
h. "ages
of !easurement ;ook should be machine
numbered.
ntries should be mad e continuously,
lea(ing no space or page blank. $ny page left blank in ad(ertently should be cancelled b diagonal likes duly attested o(er dated initials of the o*cer taking the measurements.
. What is the "onthly Account of the $i*isional )+cer of a Public Works $i*ision and how the *arious transactions are #rouped therein?
The entire receipts and disbursements of the month as detailed
in
the
(arious
schedules
and
registers
are
abstracted in the !onthly $ccount. n the back of the 6orm, following memorandum and certicate are also recorded-
a) a memorandum of miscellaneous cash receipts paid into banks,
b) a certicate in respect of the closing balances of the subordinate disbursing o*cers.
The entries in the accounts are di(ided into three groups
+1)
De(enue entries, which are totals of receipts of go(ernment under the se(eral major heads.
+)
/penditure entries which are the totals of e/penditure of go(ernment for the se(eral di(isions of major heads and are posted from the =lassied $bstract of e/penditure and
+3)
ther heads, entries in which representing both receipts and disbursements are posted from the schedules
of
!iscellaneous
'eposits, Aeads
of
Taka(i $ccount,
&orks, and
transactions adjusted under the head =ash #ettlement #uspense $ccount%.
F. What are the schedules that are to be submitted alon# with the "onthly Accounts of the Public Works $i*ision to the Accountant eneral?
6ollowing are the schedules that are to be submitted along with the !onthly $ccounts of the "ublic &orks 'i(ision to the $ccountant @eneral.
1. #chedule of refunds of re(enue.
. =lassied $bstracts of e/penditure.
3. #chedules of works e/penditure.
4. #chedule of establishment e/penditure.
8. =onsolidated =ontingent ;ill.
9. #chedule 'ockets, with necessary (ouchers, transfer entry order, sur(ey reports and sale accounts attached to each.
. #chedule 'ocket of percentage reco(eries.
F. #tock $ccount +with sale accou nts, in support of the cash credit to stock)
G. #chedule of 'ebits of #tock.
1I. $bstract $ccount of cre dits, debit and ba lances of the purchases account and note thereunder.
11. #chedule of !iscellaneous &orks $d(ances.
1. #chedule of &orkshop #uspense. 13. #chedules of credits and debits to !iscellaneous Aeads of $ccount and note thereunder.
14. #chedule of tr ansactions adjusted under the he ad =ash #ettlement #uspense $ccount%.
18. #chedules of credits and debits to Demittances.
19.
1. #chedule of !onthly Deconciliation of che2ues and remittances.
1F. #chedules of 'eposits.
1G. #chedule of 'eposit &orks +with report of progress of e/penditure).
I. #chedule
of
Taka(i
&orks,
with
accepted
certicates of collector.
1. =opies of tools and plant recei(ed sheets and tools and plant indents.
. 5ist of accounts submitted to "ay and $ccounts *cer.
G. What are the functions and duties of a $i*isional Accountant?
$ 'i(isional $ccountant performs threefold functions of an accountant, an internal checker and 6inancial $ssistant.
As an Accountant%
1. Ae compiles the accoun ts of the 'i(ision including the accounts of sub-di(isions under it.
. Ae also inspects the accounts records of sub-di(isions under orders of the 'i(isional *cer and checks a percentage of their initial accounts.
3. Ae is personally responsible for e/plaining the defects of procedures in the #ub-'i(isional accounts and imparting necessary instructions to the #ub-'i(isional #ta.
As an Internal Checker%
1. Ae performs preliminary checks to initial accoun ts and (ouchers. 0n the di(isions where salary bills are drawn by che2ues, he checks the pay bills like a treasury o*cer. . Ae has to see that the rule and orders in force are obser(ed.
3. 0f he feels that certain transactions will be challenged by $udit, he should brig this fact to the notice of the 'i(isional *cer.
4. Ae arranges for checking of comp uted tenders and testchecks them.
As a inancial Assistant%
1. Ae gi(es ad(ice to the 'i(isional *cer on matters relating to accounts, budget estimates and nancial rules.
. Ae has to bring to notice of 'i(i sional *cer all cases where subordinate o*cers e/ceeded the nancial limitations on their powers.
3. $ny e/penditure that is within the powers of the 'i(isional *cer to sanction is not incurred without his specic appro(al.
3I. What are the di@erent classes of transactions which are passed throu#h the head Public Works $epositsD?
6ollowing are the dierent classes of transactions which are passed through the head "ublic &orks 'eposits%.
a) =ash 'eposits of subordinate as security.
b) =ash 'eposits of contractors as security.
c) 'eposit for work other than +Taka(i &orks) to be done.
d) #ums due to contractors on closed accounts.
e) !iscellaneous 'eposits.
31. nder what circumstances deposits are lapsed or con/scated?>>
0n the accounts for !arch each year, the following classes of items in the "ublic &orks 'eposit account should be credited to go(ernment as lapsed deposits.
a) riginal deposits not e/ceeding twenty (e rupees remaining outstanding for one whole account year,
b) ;alances not e/ceeding twenty (e rupees of items partly cleared during the year then closing and
c) ;alances unclaimed for more than three complete account years.
3. Indicate the precautions that are to be taken while refundin# the $eposits?
6>>>
6ollowing precautions should be taken before a refund of a cash deposit, otherwise in order is allowed-
a) The original reali?ation should be treated and a reference to the repayment should be recorded against the srcinal entry in the cash book and other accounts as to make the entertainment of a double or erroneous claim impossible.
b) $ certicate for such a note ha(ing bee n made should be recorded on all (ouchers for refunds.
c) $ny acknowledgements pre(iously granted should be taken back, if possible and destroyed.
d) $ note of the repayment should be recorded on the counterfoil of the receipt.
33+a).
What are the sources from which materials
are recei*ed in a Public Works $i*ision? marks.
6>>>
<8
!aterials maybe recei(ed on stock from the following sources:-
1) #uppliers in 0ndia and $broad.
) ther
#ub-'i(isions,
'i(isions
or
departments
+including @o(ernment workshops).
3) !anufacture and
4) &orks, buildings, etc.
0n all cases there should be proper authority for the receipt,
by
the
store-keeper
or
the
sectional
o*cer
concerned of materials to be brought on stock.
33+b)
$escribe the procedure= to be adopted in the
process of recei*in# materials and their accountin#?
0n all cases there should be proper authority for the receipt,
by
the
store-keeper
or
the
sectional
o*cer
concerned of materials to be brought on stock. $ll materials recei(ed should be e/amined so as to ensure that they conform with the 2uality and specication prescribed, and counted or measued as the case may be, when deli(ery taken. The record of the detailed count or measurement or weighment should be kept in the @oods Decei(ed #heet 6orm F-$ and the total number or 2uantity recei(ed should
be entered in the ;in =ard 6orm-F immediately of their receipt. ne copy of @oods Decei(ed #heet is kept by the store-keeper, one copy is gi(en to the supplier and the third copy is sent to the 'i(isional *ce.
or what purposes materials can be issued
33+c)
from stock?
!aterials may be issued from stock for the following purposes:
a) for use on works either by issue to contractors or direct,
b) for dispatch to other sub-di(isions, di(isions or departments and
c) for sale to contractor, employees, other persons or local bodies.
The materials should be issued only on receipt of an indent signed by the 'i(isional or #ub-'i(isional *cer.
34
What checks are to be e0ercised on the "onthly
Accounts recei*ed from a Public Works $i*ision in the )+ce of the Accountant eneral?
The work of checking of monthly account should be taken as soon as the account is recei(ed in $ccountant @enerals *ce to see that-
a) 0t is complete in all respects with supporting schedules and (ouchers as described in the list of accounts from ="&$ F3,
b) $ll the schedules attached with the monthly account are in proper form,
c) 6igures of receipts and disbursements as shown in form ="&$ FI tally with the totals of the items concerned as appearing in (arious schedules, ie., form ="&$ 4, 9, , G etc., and also to see that these are correctly classied in the monthly account.
d) The
items
of
receipts
and
disbursements
are
arithmetically tallied and if they do not agree, the dierence be taken to !iscellaneous "ublic &orks $d(ance%
or
'eposit%
under
intimation
to
the
'i(isional *ce.
e) The opening cash balance agrees with the closing balance of pre(ious months and that the gure =ash balance diminished>increased is e2ual to the dierence between opening and closing cash balance%.
f) The monthly account form ="&$ FI>F3 is signed by the 'i(isional *ces.
38+a).
What
are
th e
*arious
classes
of
3on!
o*ernment works?
7on-@o(ernment works are di(ided into three classes:
1. 'eposit works . 5ocal 5oan works and 3. Taka(i works
38+b)
1o w
is
e0penditure
incurred
on
these
broadly classi/ed?
+1)
'eposit works are undertaken by a "ublic &orks
'i(ision
on
behalf
of
a
local
body,
non-go(ernment
organisation or pri(ate indi(idual. ;efore a 'eposit &ork is taken up, the gross estimated e/penditure on it is reco(ered in ad(ance from the party concerned either in one lumpsum or in installments and credited to the head "ublic &orks 'eposits- 'eposits for works +other than Taka(i works) to be done%, and any e/penditure on the work is also debited to same head. $ny e/cess e/penditure incurred, it should be debited
to
!iscellaneous
&orks
$d(ances%
pending
reco(ery.
$ consolidated record of transactions of a month relating to 'eposit works of the 'i(ision is prepared in 6orm F9 #chedule of 'eposit &orks. The percentage le(iable on the cost of 'eposit &orks under the rules is also adjusted month by month according as the e/penditure is incurred.
+)
5ocal 5oan works are undertaken on be half of a local
body, !unicipality, !unicipal =orporation or a "ort Trust etc., when the cost of the work is to form a part of the loan gi(en to it by the @o(ernment for the purpose.
/penditure on a local loan work is accounted for under the loan head concerned and shown in the #chedule of 'ebit to !iscellaneous Aeads of $ccount 6orm 9, supported by a schedule of works e/penditure. $ll charges relating to a loan work should be brought to account immediately as they occur so that interest charges may be correctly calculated and adjusted by the $ccounts *cer.
+3)
Taka(i
works
denote
works
of
construction
or
maintenance of water courses etc., e/penditure on which is treated by @o(ernment as Taka(i $d(ance +ie., an ad(ance to culti(ators). The transactions relating to Taka(i &orks are recorded in the 'i(isional $ccounts against F88I-=i(il $d(ances, Taka(i &orks $d(ances%. These are consolidated in the #chedule of Taka(i &orks 6orm 99 which shows +i) the e/penditure incurred during the month and up-to-date. +ii) reali?ations
during
the
month
and
up-to-date.
The
percentage charges le(iable should be adjusted in the e/penditure month by month.
The account of all completed works should be closed as soon as possible.
Taka(i works relating to ordinary
maintenance and repair should be treated as closed on 31
st
ctober each year +or any other date prescribed by the @o(ernment as the end of Taka(i year).
/penditure
incurred on them subse2uently should be treated as pertaining to new work of the following year.
39. 3ame the four classes of "iscellaneous Public Works Ad*ances%
Transactions recorded under the head !iscellaneous &orks $d(ances% are di(ided into four classes:-
a) #ales on credit
b) /penditure incurred on 'eposit &orks in e/cess of deposits recei(ed
c) 5osses, retrenchments, errors, etc.
d) ther items
7o charges should be debited to this head on the ground
of
absence
or
insu*ciency
of
sanction
or
appropriation e/cept as pro(ided in item +).
3. What are ser*ices rendered or articles supplied from one di*ision to another di*ision under the same o*ernment char#es?
ne "ublic &orks 'i(ision can charge another 'i(ision under the same @o(ernment for ser(ices rendered or articles supplied in the following cases:-
a) #tores:
0f the y are issued from #t ock or mat erial
account, or if their transfer aects the accounts of a work for which separate commercial accounts are kept.
b) ther #er(ices: 0f they aect the accounts of
i. a work for which separate commercial accounts are
kept
2. a work-in-progress
k. a suspense account or deposits.
3F+a)
What is ,chedule of -ates?
1ow is it
prepared?
0t is a schedule specifying rates in respect of dierent items of work usually re2uired to be undertaken by the "ublic &orks 'i(ision.
0t faci litates the preparation of
estimates and also ser(es as a guide 0 settling rates in connection with contract agreements.
0t is prepared on the basis of rates pre(ailing in each locality and necessary analysis of the rates for each description of work and for the (arying conditions thereof, is so far may be
practicable, be recorded.
The rates so
indicated in schedule subject to re(ision after inter(als, when market rates ha(e either gone up or down to such an e/tent, the rtes indicated in the schedule do not gi(e a correct idea of rates.
3F+b)
+"ara 1I.9.13)
What is the procedure for *eri/cation of
unused balance of materials issued direct to works?
Bn-used balances of materials charged direct to works should be (eri ed at least once a year. &hene(er this (erication is made, a report of (erication of the materials should be prepared by the sub-di(isional o*cer in a prescribed form and to be submitted to the 'i(isional *ce.
Merication shall not be entrusted to a person,
a) &ho is the custodian, ledger-keeper or the accountant of the stores to be (eried, or who is a nominee of, or is employed under the custodian, the ledger-keeper of the accountant or
b) &ho is not con(ersant with the classication, nomenclature and techni2ue of the particular classes of stores to be (eried.
The (erications shall ne(er be left to a low paid subordinates and in the case of large and important stores, shall
be
entrusted
to
a
responsible
o*cer
who
is
independent of the subordinate authority in-charge of the stores. $ny discrepancy is noticed, should be reported to the 'i(isional *cer for orders. The (alue of materials found in e/cess and reco(eries of shortage>losses, if any, should be credited to the appropriate sub-heads of the work.
$ similar (erication of the un-used balances of materials must in(ariably be made on the completion of a work, but on or before the completion of a work, but on or before the completion of a work, steps should be taken to dispose of all surplus materials by transfer or sale so that +a) the accounts of the work may promptly recei(e credits, +) the balance at debit of the suspense head
0f the @a?etted *cer or subordinate in direct charge of a work is transferred before the accounts of the work are closed the un-used materials at site of the work should be (eried by the relie(ing o*cer, in company with the relie(ed o*cer and the report should be prepared by the #ub'i(isional *cer and submitted to the 'i(isional *ce.
The (erication should be made annually in respect of all works, the accounts of which were opened on the last day of the o*cial year, but it is not necessary if +i) the work has been under construction for not more than three months, +ii) the accounts of the works are e/pected to be closed within three months or +iii) the balances wer (eried at any time during the year.
3G
Enumerate the #uidin# principles to be obser*ed
in the preparation= e0amination and payment of contractor&s bill by a sub!$i*isional )+cer4 <6>. 5F
6ollowing are the guiding principles which a #ub'i(isional *cer should obser(e-
+1)
The sub-'i(isional *cer should scrutini?e
the entries in the !easurement ;ooks relating to the description and 2uantities of work or supplies and check the calculations of =ontents or area% arithmetically before preparing the bill of a contractor.
+)
The bill should then be prepared in the
prescribed
form
!easurement ;ook.
from
the
entries
in
the
+3)
The ra tes al lowed sh ould be e ntered in t he
abstract of measurements and in the bil l.
6ull
rates as per agreement, catalogue, indent or other order should be allowed only if the 2uality of work done or supplies made is upto the stipulated specication. &hen the work or supplies fall short of that standard, only such a fraction of the full rate should be allowed as is considered reasonable with due regard to the work remaining to be done and general terms of agreement.
+4)
;efore s igning and submission of t he bill to
'i(isional *cer for check and payment, the #ub'i(isional *cer should compare the 2uantities in the bill with those recorded in the !easurement ;ook and see that all the rates are correctly entered and that all the calculations ha(e been checked arithmetically.
+8)
&hen the bill is a running account bill, it
should be compared with the pre(ious bill.
+9)
!emorandum of payments should then be
made up, any reco(eries which should be on account of the work or on other accounts, being shown therein.
+)
&hene(er f ractions o f a rupee o ccur i n t he
totals of contractors bills, fractions less than half a rupee may be disregarded, and half a rupee and o(er taken as a rupee.
+F)
;efore signing the bill the #ub-'i(isional
*cer, should see that the statutory deduction on account of 0ncome Ta/ where due, has been made from the bill of the contractors.
+G)
=are should be taken to see that necessary
reco(eries of the cost of the materials supplied to a contractor are made as prescribed under rules.
+1I) &hen a bill is prepared for the work or supplies measured, e(ery page containing the detailed measurements must be in(ariable scored out by a diagonal red ink line and when the payment is made on endorsement must be made in red ink, an abstract of measurements, gi(ing a reference to the number and date of the (oucher of payment.
4I+a).
1ow does a $i*isional )+cer keep a watch
o*er the pro#ress of e0penditure? 5;
<56 marks.
The 'i(isional *cer should adopt the plan indicated below to ensure constant watch o(er the progress of e/penditure-
a) /penditure on works ha(ing specic appropriations:-
The progress of e/penditure on works or other items for which there are specic appropriations, should be watched indi(idually month by month, through the Degister of &orks, =ontingent Degister and other rele(ant accounts.
b) /penditure on works ha(ing lumpsum appropriations:-
0n respect of works or items, lumpsum appropriations for which are placed at the 'i(isional *cers disposal, he will watch the progress of e/penditure against appropriations by maintenance of records of
1) the e/penditure in the form of a progressi(e abstract, showing month-by-month the upto date e/penditure of the year and
) grants, in the form of a register showing the appropriations and reappropriations ordered from time to time.
c) Bndischarged liabilities:-
Bndischarged liabilities plan an important part and their eect on indi(idual and lumpsum appropriations should, therefore be watched.
d) $nticipated credits:-
$nticipated credits, if any, which will be taken in reduction
of
the
e/penditure
chargeable
against
any
indi(idual or lump-sum appropriation should also be taken into account.
The re(iew is of special importance in the last three or four months of the year. 0f desired it may also be conducted collecti(ely in respect of each primary or secondary unit of appropriation by maintaining a register as per +b) abo(e.
41. What are the principles that should be obser*ed in /0in# the rate at which an article of stock should be issued to works and contractors?
!aterials
are
issued
from
stock
to
works
and
contractors at a rate known as 0ssue Date, which is assigned to each new article as it is brought on stock.
0ssue Date is /ed on the principle that the cost to be charged to works on which the materials are to be used
should appro/imately e2ual the actual cost of the stores and that there may be no ultimate prot or loss in the stock account.
Thus, issue rat e pro(ides for the elem ents of +i)
purchase price +ii) cost of carriage to stores and +iii) cost of storage +ie., e/penses on work charged establishment employed on handling, custody and keeping initial accounts of stores besides e/penditure of maintenance of stores godown).
The issue rate of an article is /ed at the beginning of each year. 7ormally, this rate will remain constant through out the year, but as purchases are made or contracts for supply of materials are entered into (ariation in costs should be watched and if there is material (ariation in purchase price, the issue rate can be re(ised at the discretion of the di(isional o*cer.
0t should, howe(er, be kept within the
market rates.
0n the case of controlled articles like cement, steel, etc., the 0ssue Date should be re(ised whene(er there is a change in the controlled price.
0f the issue rate of an article is appreciably less than the market rate, the following precautions should be taken in addition to any restrictions on sales or on issues outside the di(isions which the 'i(isional *cer may prescribe-
a. 0ssues to contractors and sales shall be made at
market rates and
b. 0ssues to other di(isions and departments may be
made at a rate higher than the 0ssue Date.
4. ,pecify the points to be co*ered in the annual re*iew in the workin# of forest di*isions and sent by Accountant eneral >7
$nnual re(iew on the working of 6orest 'i(isions is prepared by T! #ection for transmission to the #tate @o(ernment.
The re(iew is prepared in two parts.
Part!I deals with the defects notices in the accounts
rendered to the $ccountant @eneral while Part!II deals with the result of 5ocal 0nspection carried out by the 6orest 0nspection "arties.
Part!I%
5. Introductory% "eriod co(ered by the re(iew and the
defects discussed in the report.
6. )r#anisation% The number of 6orest 'i(isions, working
plan *ces, circles and 6orest Training #chools, etc., e/isting during the year of re(iew.
Part!II%
7. $efects noticed in the accounts rendered%
a) 'elay in receipt of =ash $ccounts
b) 'elay in receipt of>non-receipt of other documents.
c) &anting (ouchers +year-wise and 'i(ision-wise).
d) !oney (alue objecti on +year-wise and 'i(ision-w ise) both $ccounting and $udit nature of objections.
e) =ommon defects noticed in the preparation of accounts rendered by the 'i(isions.
4)
=erticate of payments accepted in lieu of wanti ng
(ouchers.
8) 'elay in furnishing replies to $udit bjections.
9) utstanding amounts under 6orest $d(ances.
) 0mportant irregularities raised during =entral $udit. F) ;alance outstanding under 6orest Demittances +ie., 0Demittances, 00-=he2ues and 000-ther Demittances) to the end of !arch.
G) 7umber
of
=.T.Ds
and
=.T.0s
due
from
the
'i(isions>'istrict Treasuries.
43+a)
What are the #eneral checks e0ercised in
Accountant eneral&s )+ce on the monthly accounts submitted by a Public Works $i*isions?
The work of checking of monthly account should be taken as soon as the account is recei(ed in $ccountant @enerals *ce to see that:-
1. 0t is complete in all respects with supporting schedules and (ouchers as described in the list of accounts from =.".&.$ F3.
. $ll the schedules attached with the monthly account are in proper form.
3. 6igures of receipts and disbursements as shown in form =.".&.$. FI tally with the totals of the items concerned as appearing in (arious schedules, i.e., form =.".&.$.
4, 9, G, etc., and also to see that these are correctly classied in the monthly account.
4. The
items
of
receipts
and
disbursements
are
arithmetically tallied and if they do not agree the dierence be taken to !iscellaneous "ublic &orks $d(ance%
or
'eposit%
under
intimation
to
the
'i(isional *ce.
8. The opening cash balance agrees with the closing balance of pre(ious months and that the gure =ash balance diminished>increased% is e2ual to the dierence between opening and closing cash balance.
9. The monthly account form =.".&.$. FI>F3 is signed by the 'i(isional *ces.
43+b)
What are the further checks e0ercised on the
schedule of $eposit Works?
6ollowing are the checks e/ercised on the #chedule of 'eposit &orks.
1. The opening balances as shown in "art-0 and 00 are correctly entered as per closing balance of pre(ious months account,
. The e/penditure gures and departm ental charges are correct as per #chedule 'ocket 6orm =.".&.$.91 and the #chedule 'ocket for percentage reco(eries.
=.".&.$.
6orm 9.
3. The totals of 'eposits% and e/penditure charged to !iscellaneous
&orks
$d(ances
agree
with
corresponding totals in the #chedule of 'eposits +6orm =.".&.$. G) and &orks $d(ances +6orm =.".&.$. I).
4. The report of progress of e/penditure after (erication by audit, is transmitted to the responsible administrator of the work without delay.
44. What are the Account -eturns rendered by orest $epartment to Accountant eneral?
6ollowing are the $ccounts Deturns rendered by 6orest 'epartment to $ccountant @eneral.
I4 Cash Account% The !onthly =ash $ccount should be
prepared in 6orm 6$.1.
$ll reports or charge shou ld be
entered in detail.
a. $ebtor&s side% i) =he2ues drawn, ii) Deco(eries of
ad(ance from contractors and disbursers, iii) De(enue reco(ered and credited in the =ash ;ook under I4I96orestry and &ildlife%, i() Deco(eries made by deduction made from pay bill on account of ser(ices and other funds, () Defunds of 6orest De(enue taken by deduction, (i) Deceipts
and
reco(eries,
(ii)
Deceipts
and
reco(eries
creditable to Dailways, "ET>'efence and (iii) Deceipts and reco(eries creditable to other departments.
b. Creditors& side% i) Demittances into treasuries, ii)
$d(ances
made
to
=ontractors
and
disbursers,
iii)
/penditure charges to 4I9-6orestry and &ildlife%, i() /penditure debited to 4II9-=apital utlay on 6orestry and &ildlife%, () Deceipts and Deco(eries deducted from =apital utlay, (i) "ayments debitable to =entral @o(ernment,
(ii) "ayments debitable to Dailways>"ET>'efence and (iii) "ayments debitable to other go(ernments.
II4 Classi/ed Abstract of E0penditure and -e*enue%
0n the =lassied $bstract, the e/penditure debited to the head 44I9-=apital utlay on 6orestry and &ildlife% shown separately from that debited to 4I9-6orestry and &ildlife%. $ll items of re(enue and e/penditure recorded in the =ash ;ook for month should be classied and arranged in this return.
III4 ,chedules of -emittances to Treasuries%
$ schedule of remittances to treasuries should be prepared in 6orm 9.
Thus, entries in this sche dule should
show each item of remittance separately and a reference to these items should be made.
I4 ,chedules of transactions with other o*ernments= -ailways= PHT and $efence%
$ schedule should be prepared in 6orm 6$ separately for receipts and payments in which all items of receipts and payments originating in the di(ision on behalf of other @o(ernment should be debited by each go(ernment.
4 Abstract of Contractors and $isburser &s Led#er%
$n $bstract of =ontractors and 'isbursers 5edger should be prepared monthly in 6orm F.
0n this $b stract
should be shown in consecuti(e order rst, the contractors accounts and then the 'isbursers accounts. The columns should be totaled separately for contractors and disbursers accounts and grand totals of all accounts should be gi(en at the foot of the $bstract.
The $bstract for !arch in each year should be accompanied
by
a
brief
statement
e/plaining
the
circumstances in which each item outstanding for more than twel(e months remains unadjusted and the steps which ha(e been taken with a (iew to its early clearance.
48. What
are
the
di@erent
classes
into
which
outstandin# liabilities relatin# to works are di*ided?
49. What are 'uantity accountsD and describe the procedure for *aluation of 'uantity accounts?
Cuantity $ccounts of stock are maintained in stores #ub-'i(ision with the help of @oods Decei(ed #heets and 0ndents recei(ed from the #ub-'i(ision. $ll transactions are recorded in the 2uantity of accounts of stores strictly in the order of their occurrence.
-eceipt of ,tores% #tock materials are recei(ed by the
store-keeper or the #ectional *cer concerned only on the proper authority for their receipt. $ll materials recei(ed are then e/amined, counted, weighted or measured before deli(ery is taken. n their receipt, immediate record is kept in the @oods Decei(ed #heet 6orm F$ +in triplicate) and then posted in ;in =ard . ne copy of @oods Decei(ed #heet is kept by the store-keeper, one copy is gi(en to the supplier, and the third copy is sent to the 'i(isional *ce.
