file:///c /Documents and Settings/Chief/Desktop/chapters.htm TABLE OF CONTENTS Sl.No. Chapters Paragraphs Pages From To Chapter 1 Extent of Application 1.1.1 1.1.3 1 Chapter 2 Definitions 2.1.1 2-9 Chapter 3 General Outlines of System of Accounts 3.1 Classification of Transactions 3.1.1 3.1.10 10-14 3.2 System of Accounts 3.2.1 3.2.2 14-15 Annexure A and Annexure B to Chapter 3 16-17 Chapter 4 Relations with Chief Controller of Accounts 4.1 General 4.1.1 4.1.2 18 4.2 Divisional Accountant 4.2.1 4.2.7 18-21 4.3 Inspection by Audit Officer/Accounts Officer 4.3.1 21 4.4 Communication of Sanctions to Pay & Accounts 4.4.1 21-22 Officer 4.5 Results of Audit 4.5.1 4.5.4 22-23 Chapter 5 Appropriations and Reappropriation 5.1 Introductory 5.1.1 24 5.2 Grants and their Distribution 5.2.1 5.2.8 24-29 5.3 Grants for Expenditure Abroad 5.3.1 5.3.2 29 5.4 Re-appropriation of Funds 5.4.1 29-30 5.5 Watching of Actuals 5.5.1 5.5.3 30-31 Chapter 6 Cash 6.1 Introductory 6.1.1 6.1.4 32 6.2 Modes of Obtaining Cash 6.2.1 6.2.13 32-37 6.3 Receipt of Money I. Accounting Procedure 6.3.1 6.3.4 37-39 II. Disposal of Receipts 6.3.5 39 file:///c /Documents and Settings/Chief/Desktop/chapters.htm (1 of 16)29/10/09 10:49:36 PM
file:///c /Documents and Settings/Chief/Desktop/chapters.htm 6.4 Payments I. Manner of Payments 6.4.1 6.4.4 39-41 II. Bills 6.4.5 41 III. Vouchers 6.4.6 6.4.8 42-43 6.5 Remittances into accredited Banks 6.5.1 43 6.6 Cash Accounts I. Cash Book- (a) Upkeep 6.6.1 6.6.2 43-44 (b) Balancing 6.6.3 44 (c) Rectification of Errors 6.6.4 44 (d) Cash Verification 6.6.5 6.6.7 44-45 II Pertmanent Cash Imprest 6.6.8 6.6.11 45-47 III. Temporary Advance 6.6.12 47-48 IV. Drawal of Advance on contingent Abstract Bills 6.6.13 48 6.7 Cheque Books and Receipt Books 6.7.1 6.7.3 48-49 6.8 Custody of Cash 6.8.1 6.8.4 49 Annexure to Chapter 6 50-51 Chapter 7 Stores 7.1 Introductory 7.1.1 7.1.6 52-53 file:///c /Documents and Settings/Chief/Desktop/chapters.htm (2 of 16)29/10/09 10:49:36 PM
file:///c /Documents and Settings/Chief/Desktop/chapters.htm 7.2 Stock I. General 7.2.1 7.2.2 53-54 II. Priced Vocabulary of Stores 7.2.3 54 III. Quantity Accounts - (a) Receipts 7.2.4 7.2.8 54-55 (b) Issues 7.2.9 7.2.11 55-57 (c) Bin Cards 7.2.12 7.2.15 57 IV. Value Accounts (a) Payment for Stock received 7.2.16 7.2.18 57-58 (b) Recoveries for stock Issued 7.2.19 7.2.24 58-60 (c) Valuation of Quantity Accounts 7.2.25 7.2.28 60-61 (d) Monthly Summaries of Stock Receipts and Issues 7.2.29 7.2.30 61-62 V. Priced Stores Ledger 7.2.31 7.2.33 62 VI. Adjustment of Profit and Loss on Stock 7.2.34 62-63 VII. Stock-taking 7.2.35 7.2.37 63-64 VIII. Rectification of Accounts 7.2.38 7.2.41 64-65 file:///c /Documents and Settings/Chief/Desktop/chapters.htm (3 of 16)29/10/09 10:49:36 PM
file:///c /Documents and Settings/Chief/Desktop/chapters.htm 7.3 Tools and Plant I. General 7.3.1 7.3.3 65 II. Numerical Accounts (a) Receipts 7.3.4 65-66 (b) Issues 7.3.5 7.3.6 66 (c) Tools and Plant Ledger 7.3.7 7.3.8 66-67 III. Payment for Supplies 7.3.9 67 IV. Recoveries - (a) For use of Tools and Plant 7.3.10 7.3.12 67 (b) For Sales and Transfers 7.3.13 7.3.15 67-68 V. Verification 7.4 Road Metal 7.3.16 7.3.17 68-69 I. Quantity Accounts II. Rectification of Accounts III. Schedule of Rates 7.4.1 7.4.3 7.4.4 7.4.2 69-70 70 70 IV. Charges for Quarries 7.4.5 70-71 7.5 Materials charged to works 7.5.1 71 Chapter 8 Transfer Entries 8.1.1 8.1.12 72-77 Chapter 9 - Revenue Receipts 9.1 General 9.1.1 9.1.4 78-79 9.2 Irrigation Revenue 9.2.1 79 file:///c /Documents and Settings/Chief/Desktop/chapters.htm (4 of 16)29/10/09 10:49:36 PM
file:///c /Documents and Settings/Chief/Desktop/chapters.htm 9.3 Licence fees of Building & Lands Demands and Recoveries (a) From Private Persons 9.3.1 79 (b) From Government Servants 9.3.2 9.3.10 79-82 9.4 Refunds and Remissions 9.4.1 9.4.2 82-83 9.5 Accounting Procedure I. Registers of Revenue 9.5.1 9.5.4 83-84 II. Register of Licence fees 9.5.5 9.5.7 84-86 Chapter 10 Works Accounts 10.1 General 10.1.1 10.1.5 87-88 10.2 Cash Payments I. Introductory 10.2.1 10.2.2 88-89 II. Payments to Labourers (a) Departmental Labour 10.2.3 10.2.4 89-91 (b) Labour engaged through a Contractor (c) Travelling Expenses 10.2.5 91 III. Payments to Suppliers and Contractors 10.2.6 91 (a) Record of Measurement (i) Measurement Books (ii)detailed Measurements 10.2.7 91-92 (iii) Standard Measurements 10.2.8 10.2.9 92-94 (iv) Review of Measurements 10.2.10 95 file:///c /Documents and Settings/Chief/Desktop/chapters.htm (5 of 16)29/10/09 10:49:36 PM
file:///c /Documents and Settings/Chief/Desktop/chapters.htm (b) Bills and vouchers 10.2.11 96 (i) Forms of Bills and Vouchers (ii) Preparation, Examination and Payment of Bills 10.2.12 10.2.15 96 (c) (d) Aid to Contractors Advances to Contractors IV. Payments to Work-Charged Establishment 10.2.16 10.2.21 10.2.22 10.2.20 10.2.23 96-100 100-101 101-102 (a) Conditions of Employment (b) (c) (d) (e) Pay Bills Unpaid Wages Travelling Expenses Classification of Charges 10.2.24 10.2.26 10.2.28 10.2.29 10.2.25 10.2.27 103 103-104 104 104 Issues of Materials 10.2.30 104-105 I. General 10.3.1 105 II. To Contractors (a) General conditions 10.3.2 10.3.3 105-107 (b) Accounting Procedure 10.3.4 10.3.8 107-109 (c) Return of Surplus Materials 10.3.9 109-110 (d) Tools and Plant lent for use 10.3.10 110-111 III. Direct to Works file:///c /Documents and Settings/Chief/Desktop/chapters.htm (6 of 16)29/10/09 10:49:36 PM
file:///c /Documents and Settings/Chief/Desktop/chapters.htm A. Original Works (a) Detailed Accounts of Materials issued 10.3.11 10.3.12 111-112 (b)_ Disposal of Surplus Material 10.3.13 112-113 (c) Verification of Unused Balances 10.3.14 10.3.18 113-114 B. Repair Works 10.3.19 114 10.4 Adjustments 10.4.1 114 10.5 Works Abstract I. Introductory 10.5.1 10.5.2 114-115 II. Classification and Record of Final Charges Estimates 10.5.3 10.5.11 115-117 III Suspense Accounts ; (a) General 10.5.12 117-118 (b) Materials Accounts 10.5.13 118 (c) Contractors and Labourers Accounts (d) Land Acquisition Accounts IV. Liabilities Awaiting Incorporation V. Preparation, Completion and Disposal 10.5.14 10.5.21 10.5.22 10.5.20 10.5.23 118-120 120 120-121 of Works Abstracts 10.5.24 10.5.25 121 file:///c /Documents and Settings/Chief/Desktop/chapters.htm (7 of 16)29/10/09 10:49:36 PM
file:///c /Documents and Settings/Chief/Desktop/chapters.htm 10.6 Register of Works I. Forms of Registers of Works and their Preparation 10.6.1 10.6.2 121-122 II. Examination by Divisional Officer 10.6.3 122-123 III. Closing the Accounts of Completion of Work (a) Settlement of Liabilities and Assets and clearance of Suspense Accounts (b) Closing Entries and Review of Expenditure 10.6.4 10.6.8 123-124 (c) Excesses over Estimates i) Excesses passed by Divisional Officer 10.6.9 124 ii) Completion Reports and Statements IV. Correction of Errors after Closing of 10.6.10 124 Accounts. V. Schedule of Rates 10.6.11 125 10.6.12 125 10.6.13 125 file:///c /Documents and Settings/Chief/Desktop/chapters.htm (8 of 16)29/10/09 10:49:36 PM
file:///c /Documents and Settings/Chief/Desktop/chapters.htm 10.7 Contractors Ledger I. Form and use of the Ledger 10.7.1 10.7.2 125-126 II. Posting the Ledger 10.7.3 10.7.5 126-128 III. Balancing and Reconciliation 10.7.6 10.7.8 128-129 IV. Scrutiny of Accounts by Contractors 10.8 Sundry Rulings 10.7.9 10.7.10 129 I. Carriage and Incidental Charges 10.8.1 129-130 II. Charges for Examination of Soil 10.8.2 130 III. Expenditure on inauguration ceremonies IV. Rates and Taxes of Building V. Execution of Works by other Departments 10.8.3 10.8.4 10.8.5 130 131 131 VI. Execution of Government Works by Local Bodies 10.8.6 131 VII. Scope of Sanction 10.8.7 132 Chapter 11 Accounting Procedure for Lumpsum Contracts 11.1 General 11.1.1 11.1.2 133 11.2 Payments for Work done 11.2.1 11.2.4 133-134 11.3 Forms of Bills 11.3.1 11.3.3 134 11.4 Subsidiary Works Accounts 11.4.1 11.4.5 134-135 11.5 Contractor s Ledger 11.5.1 11.5.3 135 Chapter 12 Manufacture Accounts 12.1 Introductory 12.1.1 12.1.4 136 12.2 Operation Charges 12.2.1 12.2.4 136-137 12.3 General Account 12.3.1 12.3.2 137 file:///c /Documents and Settings/Chief/Desktop/chapters.htm (9 of 16)29/10/09 10:49:36 PM
file:///c /Documents and Settings/Chief/Desktop/chapters.htm Chapter 13 Suspense Accounts 13.1 Introductory 13.1.1 138 13.2 Material Purchase Settlement Suspense Account 13.2.1 13.2.6 138-140 13.3 Stock 13.3.1 13.3.6 140-141 13.4 Miscellaneous Works Advances 13.4.1 13.4.7 141-142 13.5 Workshop Suspense 13.5.1 13.5.4 142-143 Chapter 14 Workshop Accounts 14.1 Introductory 14.1.1 14.1.5 144-145 14.2 Direct & Indirect Charges 14.2.1 14.2.6 145-147 14.3 Annual Account and Review 14.3.1 14.3.2 147-148 Chapter 15 Deposits 15.1 Introductory 15.1.1 149 15.2 Security Deposits 15.2.1 15.2.5 149-152 15.3 Other Deposits I. For Works II. Contractors closed Accounts 15.3.1 15.3.2 153 153 III Miscellaneous 15.3.3 153 15.4 Lapsed and Confiscated Deposits 15.4.1 15.4.3 153-154 15.5 Accounts of Public Works Deposits I. Deposit Register 15.5.1 15.5.2 154 II Schedule of deposits 15.5.3 154 15.6 Accounts of Interest bearing Securities 15.6.1 154-155 Chapter 16 Non-Government Works 16.1 Introductory 16.1.1 16.1.5 156 16.2 Deposit Works 157 I. General 16.2.1 16.2.4 157-158 II. District Fund Works, Municipal, Cantonment and Port Trust Works 16.2.5 158 16.3 Local Loan Works 16.3.1 16.3.2 158-159 file:///c /Documents and Settings/Chief/Desktop/chapters.htm (10 of 16)29/10/09 10:49:36 PM
file:///c /Documents and Settings/Chief/Desktop/chapters.htm 16.4 Takavi Works I. Provision of Funds 16.4.1 159 II. Accounting of Expenditure 16.4.2 16.4.4 159 III. Recovery through District and Revenue Authorities 16.4.5 159-160 IV. Water Courses 16.4.6 160 Chapter 17 Transactions with other Divisions, Departments and Governments 17.1 General Rules 17.1.1 17.1.9 161-163 17.2 Accounting Procedure 17.2.1 17.2.9 163-166 Chapter 18 Pay and Allowances 18.1 Introductory 18.1.1 167 18.2 Preparation of Bills I. General 18.2.1 18.2.2 167-169 II. Classification 18.3 Distribution of Pay and Allowances 18.2.3 18.2.4 169 I. General 18.3.1 18.3.3 169-170 II. Miscellaneous Recoveries from Establishment 18.4 Special Arrangement to prevent delay in Payments 18.3.4 170 18.4.1 18.4.2 170 18.5 Communication of Sanction to the Pay and Accounts Officer 18.5.1 18.5.2 170-171 Chapter 19 Contingent Charges 19.1 Modes of obtaining Cash 19.1.1 172 19.2 General Rules 19.2.1 19.2.4 172 19.3 Special Rules 19.3.1 19.3.2 173 file:///c /Documents and Settings/Chief/Desktop/chapters.htm (11 of 16)29/10/09 10:49:36 PM
file:///c /Documents and Settings/Chief/Desktop/chapters.htm Chapter 20 Directions and other Special Offices 20.1 Introductory 20.1.1 20.1.2 174 20.2 Receipts 20.2.1 174 20.3 Payments I. Introductory 20.3.1 20.3.2 174 II. Pay and Allowances 20.3.3 20.3.5 174-175 III. Contingencies 20.3.6 20.3.8 175 Chapter 21 Accounts Returns of Subdivisional Officers 21.1 Sub-Divisional Officers 21.1.1 21.1.4 176 Chapter 22 Accounts of Divisional Officers 22.1 Introductory 22.1.1 22.1.3 177 22.2 Scrutiny of Accounts 22.2.1 22.2.11 177-180 22.3 Settlement of Accounts with Bank 22.3.1 22.3.6 180-182 22.4 Compilation of Accounts (a) Introductory 22.4.1 182-183 (b) Schedule Dockets 22.4.2 22.4.3 183-184 (c) Register of Schedules 22.4.4 22.4.5 184-189 (d) Schedule of Works Expenditure 22.4.6 22.4.7 189-190 (e) Schedule of Debits to Stock 22.4.8 22.4.9 190-191 (f) Schedule of Transactions adjusted under the head Cash Settlement Suspense Account (g) Classified Abstract of Expenditure 22.4.10 191-192 (h) Monthly Account (i) Submission to Pay and Accounts Officers 22..4.11 22.4.12 22.4.14 192 192-194 file:///c /Documents and Settings/Chief/Desktop/chapters.htm (12 of 16)29/10/09 10:49:36 PM
file:///c /Documents and Settings/Chief/Desktop/chapters.htm II, Review of Unsettled Accounts III. Closing the Accounts of the year 22.4.15 IV. Misccellaneous Returns 22.4.20 V. Corrections in Accounts 22.4.19 22.4.21 194-198 199 VI. VII. Proforma Accounts Review by Divisional Officer 22.4.22 22.4.24 22.4.23 199-200 200 22.4.25 22.4.26 200-201 22.4.27 22.4.30 201-202 22.4.31 202 Chapter 23 Banking Arrangements 23.1 Introduction 23.1.1 23.1.2 203 23.2 Change in the Banking Arrangements 23.2.1 23.2.2 203-204 23.3 Drawing Account and Assignment Account 23.3.1 23.3.7 204-205 (Letter of Credit) 23.4 Revised Procedure 23.4.1 23.4.3 205-206 23.5 Role of Dealing Branches of the State Bank of 23.5.1 23.5.2 206 India 23.6 Role of Focal Point Branch of the State Bank of 23.6.1 23.6.4 207-208 India 23.7 Role of State Bank of India, Government Account 23.7.1 23.7.5 208-209 Department (GAD), Mumbai 23.8 Role of Reserve Bank of India, Central Accounts 23.8.1 209 Section, Nagpur 23.9 Role of Pay and Accounts Officer 23.9.1 209-210 23.10 Role of Divisional Officer 23.10.1 210 23.11 Role of Principal Accounts Officer 23.11.1 210 23.12 Self Monitoring 23.12.1 210 23.13 March Residual Transactions 23.13.1 211 23.14 Turnover Commission 23.14.1 211 file:///c /Documents and Settings/Chief/Desktop/chapters.htm (13 of 16)29/10/09 10:49:36 PM
file:///c /Documents and Settings/Chief/Desktop/chapters.htm 23.15 Recovery of Interest from Banks on delayed Remittances of Government Receipts into Government Account and Excess/Double reimbursement of claims 23.16 Adjustment of Bank Scrolls in CPWD System 23.17 Adjustment of Receipts Scroll/Payments Scroll in the Division 23.18 Adjustment of Receipts Scrolls and Payments Scroll by the PAO of the Division 23.15.1 23.15.4 212 23.16.1 23.16.4 213 23.17.1 213 23.19 Clearance of Minor Head 108-Public Sector Bank Suspense 8658 Suspense Accounts by Principal Accounts Office 23.20 Procedure for Bank Reconciliation 23.18.1 23.18.3 214 23.19.1 23.19.2 214 23.20.1 215 First Stage of Reconciliation Second Stage of Reconciliation Third Stage of Reconciliation 23.20.2 23.20.3 23.20.4 215-216 216 216 Fourth Stage of Reconciliation 23.20.5 216 23.21 Reconciliation of Government Transactions under 23.21.1 23.21.2 216-218 GAD System 23.22 External Reconciliation 23.22.1 218 23.23 Problem Areas 23.23.1 23.23.6 218-219 Chapter 24 - Miscellaneous 24.1 Cheque Books, Receipt Book and Cash Memo Books 24.1.1 24.1.8 220-221 file:///c /Documents and Settings/Chief/Desktop/chapters.htm (14 of 16)29/10/09 10:49:36 PM
file:///c /Documents and Settings/Chief/Desktop/chapters.htm 24.2 Transfer of charges I. Divisional and Sub-Divisional Officers 24.2.1 24.2.2 221-222 II. Divisional Accountants 24.2.3 222-223 24.3 Reconstitution of Executive Charges 24.3.1 223-224 24.4 Destruction of Records 24.4.1 224 Sl.No. Appendix Page No. 1. Divisional Accountants Not Printed 225 2. Coding pattern of Major and Minor Heads of Accounts and revised classification List of Public Works Receipts and Disbursements, List of Major and Minor Heads of Accounts of Union and States and Government Accounting Rules, 1990 226-236 3. Accounts Rules relating to Water Courses 237-238 4. Rules for the distribution of Establishment and Tools and Plant 239-245 charges 5. Deleted 246 6. Rules for the adjustment of transactions connected with Stores 247-248 obtained through High Commissions/Embassies abroad 7-A Detailed Procedure to be followed by the P.W.Divisionals Offices 249-256 for the settlement of Inter-Divisional Transactions by Cheque/ Bank Draft 7-B Procedure for payments against civil credit notes (Railway 257-258 Warrants & Railway freight credit notes) 7-C Detailed Procedure to be followed by P.W. Divisional Officers and PAO of the Division for the settlement of inter-departmental transactions by cheque/bank Draft 259-260 (a) Settlement of inter-departmental transactions with Cabinet Secretariat and Ministry of Defence (b) Procedure for accounting of Stores purchased by placing Indents on DGS&D in exceptional cases 260-263 263-269 (c) Inter-Departmental Settlement through Authorisation. file:///c /Documents and Settings/Chief/Desktop/chapters.htm (15 of 16)29/10/09 10:49:36 PM
file:///c /Documents and Settings/Chief/Desktop/chapters.htm 7-D Procedure for settlement of Inter-Departmental transactions on specific Programmes/Activities 270-272 file:///c /Documents and Settings/Chief/Desktop/chapters.htm (16 of 16)29/10/09 10:49:36 PM
GOVERNMENT OF INDIA CENTRAL PUBLIC WORKS ACCOUNTS CODE CHAPTER 1 EXTENT OF APPLICATION 1.1.1 The rules in this Code describe primarily the financial methods and procedures to be observed by Public Works Officers in dealing with transactions relating to Central Public Works and in keeping and rendering accounts of such transactions to the competent authority for final consolidation of Accounts of the Ministry as a whole. They are supplementary to the financial rules contained in the Central Public Works Department Code, the Delegation of Financial Powers Rules, 1978,, the Central Government Account (Receipts and Payments) Rules, 1983, Govt. Accounting Rules,1990, the General Financial Rules, 2005, List of Major and Minor Heads of Account of Union and States and in respect of Union Territories having the treasury system of payments, the Treasury Rules of Union Government. In so far as they deal with the initial and compiled accounts of Public Works Department Officers, they reproduce or are based on the directions given by the Central Government on the advice of Comptroller and Auditor General of India, as embodied in Accounts Code, Volume III. Likewise, any provisions in this Code relating to the requirements of statutory audit are to be regarded as directions issued under the authority of Comptroller and Auditor General of India. 1.1.2 In the administrations under the direct control of the Union Government, the rules are wholly applicable. Unless otherwise specified, they are not applicable to Central Public Works carried out by the Military Engineer Services or to any other Ministry of the Union Government, which will be regulated by departmental regulations or by special orders issued by the Government, subject always to such directions as may be given by the Central Government in the Ministry of Urban Development on the advice of the Comptroller and Auditor General as regards the form of initial and compiled accounts and methods and principles in accordance with which such accounts are kept. 1.1.3 With regard to matters dealt with in this Code, the execution of Central Public Works (CPWD) entrusted to the agency of State Governments will be regulated, subject to the directions contained in the Account Code, Volume III, by rules made by the State Government concerned, except where distinct provisions have been made in these rules to the contrary.
CHAPTER 2 DEFINITIONS 2.1.1 Unless there be something repugnant in the subject or context, the terms defined in this Chapter are used in this Code in the sense herein explained. (1) Accounts Officer means the Head of an office of Accounts or the Head of a Pay and Accounts Office set up under the scheme of departmentalization of accounts. (1A) Audit Officer means the Head of an office of Audit. (2) Administrative Approval This terms denotes the formal acceptance, by the administrative department concerned of the proposals for incurring expenditure in the Public Works Department on a work initiated by, or connected with, the requirements of such administrative department. It is, in effect, an order to the Public Works Department to execute certain specified works at a stated sum to meet the administrative needs of the department requiring the work. See also clause (62). (2A) Administrator means an Administrator of Union Territory, by whatever name designated. (3) Advance Payment means a payment made on a running account to a contractor for work done by him but not measured. See paragraph 10.2.23 (4) Appropriation means the assignment of funds to meet specified expenditure included in a primary unit of appropriation. (5) Assets In the accounts of works, this term indicates all outstanding or anticipated credits, which have to be taken in reduction of final charges. Examples: Recoveries of advances or recoverable payment, and sale proceeds or transfer value of surplus materials. (6) Bank means accredited bank acting as the agent of the Reserve Bank of India in accordance with the provisions of the Reserve Bank of India Act, 1934 (2 of 1934). (7) Book Transfer This term is applied to the process whereby financial transactions which do not involve the giving or receiving of Cash, or of stock materials, are brought to account. They usually represent liabilities and assets of Government brought to account either by way of settlement or otherwise, but they may also represent corrections and amendments made in Cash, Stock, or Book Transfer transactions previously taken to account. (8) Charged means expenditure which under the provisions of the Constitution Of India is not subject to vote by Parliament as enshrined in Article 112 (3) of the Constitution of India.
(9) Chief Accounting Authority means Secretary of the Ministry. (10) Chief Controller of Accounts means the Head of the Accounting Organisation of the Ministry. (11) Commercial Department means the Department which functions on commercial pattern. (12) Competent Authority The term Competent Authority means the Government or any other authority to whom the relevant power may be delegated by Government. (13) Completion and Completed The expression completion of work should be understood to include abandonment of a work, and completed work to include abandoned work. (14) Contingencies (Works) When used in respect of the account of works, the term Contingencies indicates the incidental expenses of a miscellaneous character which cannot appropriately be classified under any distinct sub head or subwork, yet pertain to work as a whole. (15) Contract and Contractor The term Contract means any kind of undertaking, written or verbal, express or implied, by a person, not being a Government servant, or by a syndicate or firm for the construction, maintenance or repairs of one or more works, for the supply of materials, or for the performance of any service in connection with the execution of works or the supply of materials. The term Contractor means a person, syndicate or firm that has made such an undertaking, but often its use is restricted to contractors for the execution of works or for service in connection therewith. (16) Department This term, when qualified by the prefix The, is used to indicate the Public Works Department, which for the purpose of the rules in this Code, includes also the works organisation, if any, under an Administrator. (17) Deposit Works This term is applied to works of construction or repair, the cost of which is met, not out of Government Funds, but out of funds from non-government sources, which may either be deposited in cash or otherwise placed at the disposal of the Divisional Officer. Works executed for municipalities and other public bodies fall under this category when the cost is chargeable to cash deposits made for the purpose. (18) Detailed Head means Sub-Scheme. (19) Direct and Indirect Charges Direct Charges are those charges pertaining to a work, project, or job, which are incurred directly for its execution and are included in the regular accounts of it. Indirect Charges are those charges which pertain, or are incidental to a work, project, workshop job or manufacture job, but which are not incurred directly or solely in connection therewith and thus cannot be taken directly into
such detailed accounts of its as are incorporated in the regular accounts of the expenditure of the Department. (20) Direction Office This term indicates the office of an administrative officer who has one or more Divisional Officers working under his orders and is not himself entrusted with the execution of works or with the receipt and disbursement of public money, e.g. Director General of Works/Chief Engineer or a Superintending Engineer, or a Superintendent of Works; but if such an officer is also entrusted at any time with the receipt and disbursement of public money, he is treated as a Divisional Officer for the purposes of this code, even though some part of his emoluments may be treated as Direction charges. (21) Direction Officer The head of a Direction Officer is known by this designation. Explanations:- A Government servant holding the rank of a Superintending or even a Chief Engineer is not a Direction Officer, unless the direction of the business of one or more divisions is entrusted to him. Thus, a Superintending Engineer employed on special duty is not a Direction Officer. (22) Direct and Indirect Receipts Direct Receipts are those items of revenue receipts which are realized in connection with a work or project, either by officers of the Public Works Department or other departments and are brought to account directly as appertaining to the work or project. Indirect Receipts are those receipts which pertain or are incidental to scheme or work, but cannot be taken directly into such detailed accounts of it as are incorporated in the regular accounts of the receipts of the Department. (23) Division and Divisional Office These terms are used to denote respectively the executive charge held by a Divisional Officer [Clause(24) below] and the head office of such a charge. Thus, the office of an independent executive Sub-division is a Divisional Office for the purposes of this Code, as also that of the Superintendent of a Workshop working independently of a Divisional Officer. (24) Divisional Officer This term is applied to an executive officer of the Public Works Department who is not subordinate to another executive or disbursing officer of the Department, even though the executive charge held by him may not be recognized as a Division by the Government concerned. Thus, the officer in charge of an independent sub-division is also treated as a Divisional Officer for the purpose of this Code. See also clause (20). Disbursing Officer of other departments, if they spend Public Works funds and are required to render their accounts direct to the Pay & Accounts Officer, are also included in the term Divisional Officer. (25) Final Payment means the last payment on a running account made to a contractor on the completion or determination of his contract and in full settlement of the account.
(26) Financial Adviser means adviser on Budget and Accounts matters including internal Finance of the Ministry. (27) Government means the Central (Union) Government or a Union Territory Administration or both as the context may imply. A State Government means the Government of the State specified in the First Schedule of the Constitution. (28) Grant means provision of Funds approved by Parliament. (29) Inclusive Rate of Cost means the rate of cost of the entire work relating to a sub-head, including the cost of material, if recorded separately in Accounts. (30) Intermediate Payment is a term applied to a disbursement of any kind on a running account, not being the final payment. It includes an Advance Payment, a Secured advance and on account payment (other than the final payment on a running account), or a combination of these. (31) Issue Rate This term denotes the cost per unit fixed, in respect of an article borne on the Stocks of the Department at a valuation, for the purpose of calculating the amount creditable to the sub-head concerned (i.e. the sub-head under which the article is classified) of the stock account by charge to the account or service concerned, when any quantity of that article is issued from Stock; Handling charges and other incidental storage charges will be included in the Issue Rate by adding a suitable percentage based on the carriage and other incidental charges of the previous year, and storage charges as reviewed and fixed at the beginning of a year. (32) Labour when a separate materials account is kept for one or more sub-heads of an estimate and the term labour is used in connection with such an account, it denotes all charges pertaining to each of those sub-heads, other than (1) the cost of materials issued direct, and (2) carriage and incidental charges in connection with the materials. (33) Liabilities when used in respect of accounts of works, this term includes all anticipated charges which are adjustable as final charges, but have not been paid, regardless of whether or not they have fallen due for payment, or having fallen due, have or have not been placed to the credit of the persons concerned in a suspense head subordinate to the account of the work concerned. (34) Local Loan Works This expression indicates works executed by the Public Works Department on behalf of a Municipality, Port Trust or other corporation, when the cost of the works is to form part of a loan given to it by Government for the purpose. (35) Major Estimate is a term applied to the estimate for a work when the sanctioned amount of the works expenditure exceeds Rs. 50,00,000/-. This term is also applied for the sake of convenience, to the work itself.
(36) Major Head means the main unit of classification in accounts denoting function e.g. 2059-Public Works, 2216-Housing etc. (37) Market Rate Used in respect of an article borne on the Stock accounts of a division, this term indicates the cost per unit at which the article, or an article of similar description, can be procured, at a given time from the public markets suitable to the division for obtaining supply thereof. This cost should be inclusive of carriage and incidental charges, and may even include a reasonable provision for wastage and depreciation when these are inevitable. (38) Minor Estimate is a term applied to the estimate for a work, when the sanctioned amount of the works expenditure does not exceed Rs. 50,00,000/-. This term is also applied, for the sake of convenience, to the work itself. (39) Minor Head means the programme. (40) On Account Payment or Payment on Account means a payment made, on a running account, to a contractor in respect of work done or supplies made by him and duly measured. Such payments may or may not be for the full value of work or supplies; if it is an intermediate payment, it is subject to final settlement of the running account on the completion of the contract for the work or supplies. (41) Operation Used in respect of the accounts of manufacture and workshop transactions, this term indicates the charges incurred on the manufacture operations connected with specific jobs. (42) Outturn Used in respect of the accounts of manufacture and workshop transactions, this term denotes the value of the finished products (or of the work done, in cases in which the articles brought are not supplied departmentally) of manufacture operations connected with specific jobs. (43) Progress - means the up-to-date quantities of work done or supplies made. (44) Public Works means civil works and Irrigation, Navigation, Embankment and Drainage Works etc. (45) Quantity In the accounts of works, this expression is used to describe the extent of work done, supplies made or services performed, when these can be measured, weighed or counted. (46) Rate In estimates or cost, contracts, contractor s bills and vouchers generally, rate means the consideration allowed for each unit of work, supply or other service. (47) Rate of Cost Rate of Cost means generally the total cost of a work or supply divided by its quantity. In the accounts, it represents the recorded cost per unit, as arrived at by dividing the up-to-date final charge on a sub-head, by the up-to-date progress thereof.
(48) Re-appropriation means the transfer of funds from one primary unit of appropriation to another such unit. (49) Recoverable Payment means a payment to or on behalf of a contractor which does not represent value creditable or payable to him for work done or supplies made by him and has, therefore, to be made good to Government by an equivalent cash recovery or short payment of dues. (50) Running Account is a term applied to the account with a contractor when payment for work or supplies is made to him at convenient intervals subject to final settlement of the account on the completion or determination of his contract. (51) Sectional Officer Sectional Officer is a non-gazetted official namely Junior Engineer for Civil or Electrical Works, Sectional Officer of Horticulture department who is placed in responsible executive charge or works or stores under the orders of the Officer-in-charge of a recognized sub-division and the accounts of whose transactions are, therefore, ultimately incorporated in those of the Sub-division. (52) Secured Advance is a term applied specifically to an advance made on the security of materials brought to site of work, to a contractor whose contract is for the completed item of work. See paragraph 10.2.20. (53) Special Office The Office of a Special Officer, vide clause (54). (54) Special Officer (or Specialist Officer) This term is applied in this Code, to such officials of the Department as are neither Divisional Officers nor officials subordinate to a Divisional Officer, and have no Divisional Officers working under their control. (55) Storage charges mean expenditure incurred, after the acquisition of the stores, on work-charged establishment, employed on handling and keeping initial accounts, the custody of stock and the maintenance of the store godown or yards, etc. and are added on a percentage basis to the issue rate, so as to form part of the issue rate. [See clause (31)]. (56) Sub-divisional Officer This designation is applied primarily to an official, whether a gazetted officer or not, who holds the charge of a recognized sub-division subordinate to a Divisional Officer, but when the immediate executive charge of any works or stores has not been constituted into a regular sub-divisional charge, but is held by the Divisional Officer himself, the latter is also treated as the sub-divisional officer in respect of such charge. When a Divisional Officer holds the immediate charge of a recognized sub-division in addition to his own duties as the executive head of the division, he is treated as the Sub-divisional Officer in respect of the charge of the subdivision. (57) Sub-head In the account of works and in working estimates this term is used to describe the sub-divisions into which the total cost of a work (or of its sub-works, if it is a large work) is divided for purposes of financial control and statistical convenience. The several descriptions of work that have to be executed in the course of construction or
maintenance or a work or sub-work, e.g. excavation, brick-work, concrete, wood work, etc. are usually treated as the sub-heads of it. (58) Sub-work In the case of a large work consisting of several buildings or smaller work, or groups thereof, the term sub-work is often applied to a distinct unit of the same, if that unit is sufficiently large or important to kept distinct for the purpose of accounts. For example, the outer wall, the solitary cells, the cook-houses, the jailor s quarters, etc., in the case of a large central jail. In the case of irrigation etc., projects the Head Works, Main Line, each branch of a canal, each group of distributaries relating to each branch separately, the drainage and protective works, the Water Course Schemes, and Special Tools and Plant, all form separate sub-works. (59) Supervision charges This term is ordinarily applied to the charges which are levied, in addition to book value in respect of stock materials sold or transferred and are intended to cover such items of the expenditure incurred on the store as do not enter their book value. [See clause (55). (60) Suspense Accounts This term is applied primarily to certain heads of account, falling under the minor head Suspense of a major head of expenditure, which are reserved for the temporary passage of such transactions as must at once be taken to the account of the sanction or grant concerned, but cannot be cleared finally either because the relevant payment, recovery, or adjustment is awaited, or because it is necessary to keep an effective watch over the values of any stock materials, until their final disposal. The charges under a suspense account are taken in enhancement of the charges under the major head of expenditure concerned, and the receipts, in reduction thereof. (For Suspense Accounts within the accounts of Works. See paragraph 10.5.12). (61) Takavi Works This term denotes works of construction or maintenance relating to water courses or any other works, expenditure on which is treated by Government as a takavi advance (i.e. an advance to cultivators) recoverable from the party or parties concerned. (62) Technical Sanction This name is given to the order of competent authority sanctioning a properly detailed estimate of the cost of a work of construction or repair proposed to be carried out in the Public Works Department. Ordinarily, such sanction can only be accorded by Government in the Public Works Department or by such authorities of the Department to whom the power has been delegated by Government. Sanction accorded to a work by any other department of Government is regarded merely as an administrative approval of the work, vide clause (2). (63) Voted means expenditure flowing from Consolidated Fund of India duly voted by Parliament. (64) Water Course This name is given to a channel for the supply of water from an irrigation work, which falls under the definition of the term as given in the Canal Act
applicable to the area concerned. The definition given in the Northern India Canal and Drainage Act of 1873 is as follows:- Water course means any channel which is supplied with water from a canal, but which is not maintained at the cost of Government, and all subsidiary works belonging to any such channel. (65) Work The term work when by itself, is used in a comprehensive sense and applies not only to works of construction or repair, but also to other individual objects of expenditure connected with the supply, repair and carriage of tools and plant, the supply or manufacture of other stores, or the operation of a workshop. (66) Works Expenditure and Works Outlay These terms are used to indicate respectively the expenditure, and the capital charges, on the special services connected with the construction, repair and maintenance of work. The charges falling under these categories may be net when, under rule, any receipts are taken in reduction of the charges, but they do not include the cost of the general Services, Tools and Plant and Establishment, or any charges not taken to final heads of account but kept under one of the suspense accounts.
CHAPTER 3 GENERAL OUTLINES OF SYSTEM OF ACCOUNTS 3.1 CLASSIFICATION OF TRANSACTIONS 3.1.1 Central Public Works Department executes primarily works of all classes i.e Public Works Buildings required for all Civil departments of Government, except such works as are vested in, or delegated in terms of the provisions of Chapter 5 of General Financial Rules,2005 or transferred to the administration of the departments concerned, or entrusted for execution to a State Government or the Military Engineer Services, Defence, Postal, Telecommunication or Railway works may also be entrusted to the Department, either occasionally or as a standing arrangement, and at times works of other departments or Government and Non-Government works may also have to be undertaken. Note 1:- Besides the foregoing, petty services such as the manufacture or supply of stores are also undertaken by Divisional Officers. Note 2:- Procedure for execution of works by a Ministry/ Department as laid down in Rule 132 read with Rule 126(1)(2)(3)(4) and Rule 133 of General Financial Rules,2005 shall be followed. 3.1.2 The general principles to be followed in the classification of Public Works expenditure are laid down in rule 29 of Government Accounting Rules, 1990 and notes under major head 2059 and 4059. Rule 29 is reproduced below:- As a general rule, the classification of transaction in Government accounts, shall have closer reference to the function, programme and activity of the Government and the object of the revenue or expenditure, rather than the Department in which the revenue or expenditure occurs. This principle is, however subject to such exceptions as may be authorized specially in any individual case or class of cases e.g receipts representing Interest are shown under 0049-Interest Receipt and expenditure on the maintenance and repairs of the non-residential buildings under the administrative control of the P.W.D are shown under the Major Head 2059-Public Works irrespective of the functions to which they relate. Important general orders governing classification of Pay and Allowances (including traveling allowances) of Government servants, expenditure on Civil Works, Contribution made by or to the Government, refund of revenue, shall be issued by Government from time to time. 3.1.3 Transactions relating to the charges and receipts connected with the services pertaining to Public Works of Government other than works referred to below, are adjusted finally in the accounts of Divisional Officers against the provision of funds therefor, placed at their disposal. Transactions connected with the services for other Government Works are not so adjusted finally, but pass eventually out of the accounts of Divisional Officers for incorporation in the accounts of the departments and Government concerned. Outlay on non-government works is charged against the deposits received therefore.
(i) Works of the Posts & Deptt. Of Telecommunication or Broadcasting and other quasi-commercial departments and undertakings. Works pertaining to Forest, Salt, Lighthouse and Mints debitable to grants controlled by these departments. (ii) Works connected with the conservation of ancient monuments which are debitable to the Archeological Department. (iii) Works connected with the construction and maintenance of civil aerodromes. Note 1 If an Administration executes, on behalf of another Administration, a Public, the necessary funds are usually placed at its own disposal. Note 2 When a Division undertakes a service on behalf of another Division or supplies material to another Division, inter-divisional settlement is resorted through Advance Payment by the Indenting Division as contemplated in Appendix-7A of this Code read with CGA s OM No. 18(4)/92/TA/237 dated 16-03-1993 as amended by OM No. 18(4)/92/TA/169 dated 25-03-1994. Note 3 Operations undertaken in the manufactories and workshops of a division on behalf of other divisions, departments, Governments, local bodies or individuals are treated as operations of the division in the first instance, but the entire cost is ultimately recovered from the party concerned. 3.1.4 In all cases the primary accounts of these transactions should be kept in accordance with the rules of this code, even though the ultimate cost of the transactions may not have to be brought to account finally in the books of the Divisional Officer. 3.1.5 The performance of these services and the subsidiary proceedings give rise to a number of other transactions with other departments, Governments, etc., which have also to be brought to account e.g., funds, have to be obtained from Banks to meet liabilities incurred, receipts realized have to be lodged in Banks and stores have to be obtained from other divisions or departments etc., or from abroad. 3.1.6 The transactions of Public works officers may thus be grouped under the heads indicated below:- I Expenditure heads: For charges adjustable finally in the accounts of Divisional Officers i.e 2059-Public Works, 2216-Housing,4059-Capital Outlay on Public Works, 4216-Capital Outlay on Housing etc. II. Revenue Heads: For revenue receipts creditable finally to Government in the accounts of Divisional Officers i.e 0059-Public Works,0216-Housing etc. III Remittance Heads: Receipts as well as payments for cash, stores or other values received from or paid to or on behalf of other departments or Governments i.e. 8782- Cash Remittances and adjustments between officers rendering accounts to the same Accounts Officer.
IV Suspense and Deposit Heads: For certain receipts and payments held in suspense or Deposit pending clearance, by payment or recovery (as the case may be) in cash or otherwise. The suspense accounts for transactions of this group are treated either as heads subordinate to the expenditure heads or as Independent heads of account or as subheads in the accounts of works, as will be explained in, later chapters. 3.1.7 The transactions under each of these groups are further sub-divided for purposes of accounts. In the case of Expenditure and Revenue Heads, the main unit of classification is known as the Major Head, and the further divisions of it as Minor Heads each of which has a number of subordinate heads known as Sub-Heads. The Sub-Heads are further divided into Detailed Heads and Detailed Heads are further divided into Object Heads. Sometimes Major Heads may be divided into Sub-Major heads before their further division, into minor heads. Note 1 The Administration of the Union Territories of Daman & Diu and Pondicherry subject to control of the Central Government, may exercise the powers of opening of sub heads, detailed heads and object heads of account under the various Major and Minor heads of accounts within their respective territories Subject to observance of conditions laid down in Note 2 below Rule 26 of Government Accounting Rules, 1990. Note 2 - The detailed classification of any Public Works Major Heads that may be introduced for the booking of special expenditure, shall be prescribed by the Central Government on the advice of the Comptroller and Auditor General of India. Note 3 - In the case of works undertaken by the Public Works Department as a standing arrangement for other departments, when the cost is debitable to those departments, the prescribed classification applicable to the connected transactions is intimated by the Pay and Accounts Officer. 3.1.8 The classification and the Heads of Accounts under which Government transactions are adjustable have been indicated in the List of Major and Minor Heads of Account of Union and states as mentioned in Chapter 3 of Government Accounting Rules, 1990. Note: The detailed classification of Account Heads in Government Account and the order in which the Major and Minor Heads shall appear in all account records shall be such as are prescribed by the Central Government from time to time on the advice of Comptroller and Auditor General of India. 3.1.9 Revenue is realized and placed to credit of Government as it falls due under the statutory or other rules governing it, but expenditure can be incurred only against a grant voted by the Parliament or against the appropriations provided for to meet charged expenditure. The incidence of expenditure between voted and charged is determined by the relevant provisions of the Constitution of India.
It is obligatory for the Court to issue a decree in all cases where an award is made a Rule of the Court. Expenditure incurred on account of payments made after an award has been made a Rule of the Court but prior to the issue of decree is debitable to the Charged Section of the relevant grant. Note 1 - Under Article 112(3)(f) of the Constitution of India any sum required to satisfy the award of an arbitral tribunal is to be charged on the Consolidated Fund of India. In order that a body or authority may be a tribunal within the scope of the term arbitral tribunal used in the said article, it must be constituted by the State and not merely by an agreement of the parties and must be invested with the States inherent judicial (as distinguished from purely administrative or executive) powers and the trappings of a court. However, in cases where the award made by a private arbitrator is filed in a court and a decree is obtained in terms of the award, the expenditure required to satisfy the decree of the court will be expenditure charged on the Consolidated Fund of India. 3.1.10 Classification of Lump Sum Advance to provide for immediate Financial Relief (i) In terms of the provisions of Rule 79 to 81 and Government of India s Decision thereunder contemplated in Compendium of Rules on Advances, a Head of Department or a Head of office may sanction an advance to the family of a Government Servant in permanent or temporary employ (excluding casual and daily-rated staff) who dies while in service (whether on duty or on leave with or without pay) in order to enable the family to meet its immediate requirements, if in the opinion of the Head of Department or the Head of Office, as the case may be, the family concerned has been left in indigent circumstances upon the death of the Government servant on whom it was dependent and is in immediate need of financial assistance. (ii) The amount of an advance which may be granted under Rule 79 shall be equal to two months basic pay and Dearness pay taken together of the deceased Govt. servant, subject to a maximum of Rs. 8,000/-(Rupees Eight thousand only). (iii) The Head of Department/Office shall see that the advance(granted under Rule 79) is adjusted as early as possible, and in any case, within a period of six months from the date of its sanction, by deduction from the amount that may be payable on account of arrears of salary due, the Death-cum-Retirement Gratuity or the Contributory Provident Fund or the General Provident Fund or any other payments due to the deceased. (iv) The advance granted under this Para should be debited to the Major/Minor/Sub- Head 8550-Civil Advances-104-Other Advances-Lump Sum Advances to provide immediate relief to the deceased Government servant s family. If the amount of Death- Cum-Retirement Gratuity or similar other payment is less than the advances initially sanctioned, and if the balance is eventually treated as irrecoverable, the same should be debited to the Major/Minor/Sub-Head 2075-Miscellaneous General Services-800-Other Expenditure-Write off of Irrecoverable Loans advanced to provide immediate financial relief to the deceased Government servant s family, under special sanction of Government. 3.2 SYSTEM OF ACCOUNTS