(27.04.

2020)

Public Works Accounts Rules & Procedures

Objective Mark s - 30 Duration: 45 minutes
Books not allowed:
Fill in the blanks.
1. __Temporary____ establishment includes all such non-permanent establishment
2. __Work-charged__ establishment includes such establishment as is employed upon the
actual execution
3. Superintending Engineers and Divisional Officer's may, sanction the entertainment of
temporary and work-charged establishment provided that for temporary establishment
provision in the budget exist and for work charged establishment provision exist as
separate subhead in the sanctioned estimate__ .
4. __Superintendent__ Engineer is competent to sanction the destruction of such record
where a definite period after which records may be destroyed, has been prescribed by
the Government of Pakistan.

5. The general supervision and control of the assessment of revenue from irrigation work
rest with the ____ Superintending _____ engineer.
6. The administrative unit of the department is the ___Circle___ office, in charge of a ___
Superintendent _____ Engineer
7. The Superintending Engineer will inspect the divisional offices at least__once a year__.
8. The supervision and control of the assessment of revenue from irrigation works within
his circle rest with the __ Superintending____ engineer.
9. The Superintending Engineer is authorized to correspond directly with __any of the local
authority__ within the area of his jurisdiction.
10. The executive unit of the department is ___division____.
11. ____Executive__ engineer is in charge of a divisional Office.
12. A divisional Officer is responsible to the _ Superintending Engineer__ for the execution
and management of all works within his division.
13. The Divisional Accountant is responsible to the__Divisional Officer__ for the correct
compilation of the accounts of the division.
14. The responsibility for the correctness of the original records of cash and stores, receipts
and expenditure rests with the __Divisional Officer__.
15. The divisional officer is responsible that the ___accounts___ of his division do not fall
into arrears
16. The amount of a cancelled cheque should be shown by a special write-back entry, as a
___minus____ on the payment side of cash book.
17. The issue of a new cheque in lieu of a time expired or lost cheque should be entered on
the date of issue in red ink in the cash book but not in the column for _payment__.
18. A deduction made at the time of payment creditable to a work or head of account other
than that to which the payment itself is debit-able should be entered on the
___Receipt___side of the cash book
19. It is a serious irregularity to draw cheques and deposit them in the cash chest at the
_close of the year____.
20. When an imprest is first given the fact should be noted in __red ink___, in the cash book
of the ___disbursing__ officer.
21. In posting transactions from imprest accounts the recouping disbursing officer should
enter in his cash book only the ____total__ for each work or head of account
22. Money advanced to a subordinate for disbursement to laborers at a distance should be
noted in the cash book in red ink as a ___temporary advance___.
23. An entry once made in the cash book should in no circumstances be _erased_.
24. If a mistake in cash book is discovered before the copy of the cash book has been
submitted to the-divisional office, it should be corrected by drawing the pen through the
incorrect entry and inserting the correct one in __red ink___ between the lines.
25. When the mistake is discovered too late for correction in this way, an intimation of the
necessary corrections should be sent at once to the divisional office, accompanied by a
proposed _transfer entry__.
26. The ___disbursing____ officer should check all the entries in his cash book as soon as
possible after the date of their occurrence
27. The actual balance of cash in each chest should be counted on the _last working__ day
of each month
28. An imprest is a __standing advance__ of a fixed sum of money given to an individual to
enable him to make certain classes of disbursements
29. When a disbursing officer makes a remittance to a subordinate officer to enable him to
make a number of specific petty payments on a muster roll or other voucher which has
already been passed for payment, the amount remitted should be treated as a
_temporary advance___.
30. Whena cheque is drawn to replenish the chest, its number and amount should be
entered on the payment side in the __bank column____.
 Objective Mark s - 70 Duration: 2 hours 15 minutes
Books not allowed:
1. What are the main features of the System of Public Works Accounts? 10

The main features of the system of Public Works accounts are :—

The Divisional Officer is the primary disbursing officer of the division who is
permitted to obtain by cheques on civil treasuries or the Bank the funds
required for all disbursements in connection-with the execution of works. He
also collects some of the departmental receipts of the division and pays
them into civil treasuries or the Bank.
The accounts of these receipts and disbursements (including the transactions of
subordinate officials acting on his behalf) are compiled under his
supervision by an accountant posted to his office by the Accountant
General, and are submitted monthly to the Accountant General who audits
them against sanctions and appropriation of funds and then incorporates
them in the general accounts of Government.
He is further required to maintain clear accounts of all stores received by him
and to make these accounts available for audit by the Accountant General.
Under each major head of expenditure, the charges on each project, work, or sub-
work are recorded separately in the accounts of Divisional Officers. In the
case of works of certain classes (see examples cited, below), Pro forma
accounts of all transactions connected therewith are prepared annually by the
Accountant General or by the Divisional Officer, as may be required, and for
this purpose, the receipts pertaining to each work of this class are also
shown separately in divisional accounts :—
Irrigation, etc., for which separate capital accounts are kept.
Quasi-commercial undertakings, such as self-supporting workshops.
Residential buildings.
Personal payments to all Government servants of the Department are made on bills
presented at civil treasuries in accordance with the general pr0visions of the
Treasury Rules, and are therefore brought to account by the Accountant
General himself from data furnished to him direct by Treasury Officers.
In exceptional cases, where civil treasuries are not conveniently situated, Public
Works Officers are placed in account with Military Treasure chests.
It is not sufficient that an officer's accounts should be correct to his own satisfaction. A
disbursing officer has. to satisfy not only himself, but also the Audit Department,
that a claim which has been accepted is valid, that a voucher is a complete
proof of the payment which it supports, and that an account is correct in all
 respects. It is necessary that all accounts should be so kept and the details so
fully recorded, as to afford the requisite means for. satisfying any enquiry that
may be made into the particulars of any case, even though such enquiry may
be as to the economy or the bona fides of the transactions. It is further essential
that the records of payment, measurement and transactions in general must be
so clear, explicit and self-contained as to be producible as satisfactory and
convincing evidence of facts, if required in a Court of Law. All transactions
involving the giving or taking of cash, stores, other properties, rights, privileges,
and concessions which have money values should be brought to account. The
record of a transaction of receipt or expenditure should always be made at
once under the final or the debt or remittance head to which it pertains, if that be
known; but if the exact head cannot be ascertained at once, then the
transaction should be classified temporarily under Deposits, if a receipt, or
under Miscellaneous P. W. Advances, if a charge.

2. What are the essential conditions of incurring expenditure in Public Works 10

Department on a work?

3. Define: 20

1. Book transfer
This term is applied to the process whereby financial transactions which
do not involve the giving or receiving of Cash, or of Stock materials, are
brought to account. Such transactions may cither affect the books of a
single accounting officer, or they may involve operation on the books of
more than one accounting officer whose accounts are ultimately
incorporated in the accounts of Government. They usually represent
liabilities and assets of Government brought to account either by way of
settlement or otherwise, but they may also represent corrections and
amendments made in Cash, Stock, or Book Transfer transactions
previously taken to account.

2. Contingencies
When used in respect of the accounts of works, the term "
Contingencies " indicates the incidental expenses of a miscellaneous
character which cannot appropriately be classified under any distinct
sub-head or sub-work, yet pertain to the work as a whole.

3. Intermediate payment
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 an “On account payment (other than
 the final payment on a running account)", or a combination of these.

4. Local loan works

This expression indicates works executed by the Public Works Department on behalf of
a State which has acceded to Pakistan, Municipality, Port Trust, or other
corporation, when the cost of the works is to form part of a loan given to it by
Government for the purpose.

5. Supervision charges
This term is ordinarily applied to the charges "which are levied, in addition to book value
and storage charges, in respect of stock materials sold or transferred, and are
intended to cover such kerns of the expenditure incurred on the stores as do not
enter their book value and are not included in the storage charges

3. What are the functions (3fold functions) of the Divisional Accountant (re-named 10
as Divisional Accounts Officer)? What should Divisional Accounts Officer should
do if over-ruled by the Disbursing Officer?

The functions of the Divisional Accountant are threefold :—

as accountant, i.e., as the compiler of the accounts of the division in
accordance with the prescribed rules and from the data furnished to him,
as primary auditor, i.e., as the representative of the Audit Department,
charged with the responsibility of applying certain preliminary checks to
the initial accounts, vouchers, etc. (See Chapter XXII) ; and
as financial assistant, i.e. as the general assistant and advisers to the
Divisional Officer in all matters relating to the accounts and budget
estimates or to the operation of financial rules generally. ,
In the discharge of these duties he is expected to keep himself fully
conversant with all sanctions and orders, passing through the office and
with other proceedings of the Divisional Officer and his subordinates which
may affect the estimate or accounts 6f actual or anticipated receipts and
changes. He should advice the Divisional Officer on the financial effect
of all proposals for expenditure and keep a watch, as far as possible, over
all the liabilities against the grants of the divisions as they are incurred.
The Divisional Officer should see that he is given the fullest opportunity of
becoming conversant with these sanctions, orders and proceedings. To
enable him to discharge his duties efficiently the Divisional Accountant is
treated as the senior member of the office establishment of the division,
though his position is analogous to that of a Sub-Divisional Officer, vide
paragraph 43 of the Central Public Works Department Code.
The Divisional Accountant is expected to see that the rules and orders in force, are
 observed in respect of all the transactions of the division which; come within his
sphere of duties. If he considers that any transaction or order affecting receipts or
expenditure is such as would be challenged by the Accountant General if the
primary audit entrusted to the Accountant were applied by the former, it is his
duty to bring this fact to the notice of the Divisional Officer with a statement of his
reasons, and to obtain the orders of that officer. It will then be his duty to comply
with the orders of the Divisional Officer, but if he has been overruled and is not
satisfied with the decision, he should at the same time make a brief note of the
case in the Register of Divisional Account Audit Objections, Form 60, and lay
the register before the Divisional Officer, so that latter may have an opportunity
either of accepting the Divisional Accountant's advice on reconsideration and
ordering action accordingly, or of recording, for the information of the
Accountant General, his reasons for disregarding that advice. An objection entered
in this register should not be considered as finally disposed of until it has been
reviewed by the Accountant General, for whose inspection the register should
be available at all times.

4. (a) What are different modes of obtaining cash at Public Works Divisional & 10
sub-Divisional Officer?

Cash is obtained by disbursing officers of the department in two ways, viz.,

directly by bills drawn on the treasury and by means of cheques. For
payment of pay and allowances of Government servants on the regular
establishment sot charged directly to works, certain heads of offices and
other officers draw bills on treasuries in prescribed forms in accordance
with the rules in Chapter XVHI. All other disbursements are made by
Divisional Officers, who may empower Subdivisional Officers to make
disbursements on their behalf, vide paragraph 202. For the purpose,
Divisional Officers are ordinarily placed by the Accountant General in
account with one or more treasuries within their judrisdiction and they
may either authorise Subdivisional Officers to obtain money from the
treasuries within the jurisdiction of the latter by drawing cheques or place
them in funds by means of an imprest or by transfer of cash from the
divisional cash chest.
Note 1.—The term "treasury" includes also a military
treasure chest with which a Divisional Officer may be placed
in account.
Note 2.—At places where the cash business of the Treasury is
conducted by the Bank cheques are drawn direct upon the
Bank, without die intervention of the Treasury Officer.
Sub-treasuries are collecting depots and Hot disbursing treasuries, but to meet
the convenience of Public Works Officers it has been arranged that funds
required for disbursement may be obtained by means of cheques down
 on sub-treasuries subordinate to a treasury with which a disbursing
officer has been placed in account. See also Rules 132, 150 and 163 of
the Treasury Rules, Volume I.
Note.—The term "treasury" as used throughout (his Code
includes the sub-treasury, unless the contrary is evident from
the context.
The appropriation of departmental receipts to expenditure in the department is
strictly prohibited except in the cases provided for in paragraph 66. See
sub-rule (2) (e) of rule 7 of the treasury Rules, Volume I.
The procedure prescribed for accounting for cash obtained from treasuries on
bills for pay and allowances of establishment not charged directly to
works or on contingent bills, if their encashment at treasuries has been
authorised, is detailed in Chapters XVIII and. XIX. Undisbursed balances
of cash thus obtained may be kept in departmental cash chests, but they
should not be mixed up with the regular cash balances of the Department,
accruing from money obtained on cheques which are dealt with and
accounted for in accordance with the rules in the following paragraphs.
Without making previous arrangements through the Accountant General, no
officer is authorized to draw cheques on a treasury situated outside
the limits of the province, even though his own jurisdiction may extend
beyond those limits.
When for the concenience of work, it is necessary that the Divisional Officer or any
of his subordinate disbursing officers should be authorised, either
occasionally or as a standing arrangement, to draw cheques on a
treasury situated outside the limits of the division, the Divisional Officer
should approach the Accountant General through the Superintending
Engineer for necessary sanction. Similarly, the Divisional Officer may,
if necessary, specially authorise any of his Sub-divisional Officers to
draw cheques on treasuries situated outside the jurisdiction of the latter
but within the limits of the division.
Note.—This rule is intended to be applied with, special care
and only to cases of real necessity. Payment to contractors
should, as far as conveniently practicable, be made by
cheques on the nearest treasury and a stipulation to the
effect that payments shall be so made should be inserted in
the contract agreement, where necessary.
The employment of class IV servants to fetch or carry money should be
discouraged. When it is absolutely necessary to employ a class IV servant
for this purpose, a man of some length of service and proved
trustworthiness should only be selected and in all cases, when the
amount to be handled is large one or more guards should be sent to
accompany the messenger.
 (b) In what ways Disbursing Officer in Public Works Departments are placed in
funds?

5. Can cash receipts be utilized towards works expenditure? If so, what is the 10
procedure for the accounting of such receipts?

Moneys realised by officers of the department should be paid, as soon as possible, into the nearest
treasury, for credit as miscellaneous receipts of the department. Should a Divisional Officer or
Subdivisional Officer, however, require to make use of cash receipts temporarily for current expenditure,
he may do so instead of obtaining fresh cash by cheques; but before the end of the month, he must send to
the treasury a cheque for the amount thus utilised, drawn in his own favour and endorsed by himself
with the words " Receive payment by transfer credit to the Public Works Department".

Note: It may be treated as test cum revision practice. No time constraints but must try to
complete within the time fixed. Time management is open to individual one.