Central Public Works Account Code

Cash

In the PWD, three initial accounts are made to prepare final accounts as follows:
● Payments or Receipts in cash (cash A/c)
● Issues or Receipts of Stores Materials (Stock A/c)
● Adjustments or Book-Transfers

❖ The ​Divisional Officer​ is the ​primary disbursing Officer

❖ All receipts and payments on Government accounts made by his subordinates
are made on his behalf and on his responsibility

Any person paying money into an accredited bank to the credit of the CPWD shall
present with it a Memorandum or Challan in ​Form G.A.R. 7

Modes of Obtaining Cash (LOC)

The Divisional Offices are assigned a ​Cash Assignment Account​ in the accredited
bank by ​CCA​ and assigned a ​letter of credit(LOC)​ against which they draw cheques
for payment of bills passed by them.

No Expenditure can be incurred out of the consolidated fund in anticipation of passing of

the appropriation (Vote on account) Act or the Appropriation Act relating to the Budget
of a financial year.
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On the basis of the Budget allotment communicated by the ​Budget Section/Finance

Division​ of the Ministry, ​HOD​ makes distribution of allotment amongst DDOs under his
control under intimation to ​PAO and LOC cell

Then, LOC Cell will issue the amount of assignment from ​April to September
upto 80 % of Budget Grants​ allocated to the Divisions.

Paying branch​ is responsible to ensure that at no time the amount assigned in the
letter of credit is exceeded by the payment of any cheque

The unspent assignment for the last L.O.C of the FY is not

carried forward to next year. The cheque actually issued during the last L.O.C but
presented for payment during the period of Ist L.O.C (within the period of validity) will be
taken by the banks against the ​assignment of the year in which they were drawn and
not against the assignments of the year in which they are paid

LOC Issued Important points

First (interim) Beginning of FY upto ​one-sixth ​of the authorized Budget allocation
on the basis of Vote on Account

Second By 10th June Issued after Appropriation Act is passed

Third By October Given for new works authorised or new deposits

received.For this, proposals are submitted by ​15th
September​ alongwith the​ reconciliation statement
upto August
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Fourth by last working Takes into account the revised estimates,

day of January supplementary grants etc..

Fifth & Final 15th March indicating final adjustment for which demand
should be received by ​10 th March​ for the​ Division
located at New Delhi ​and by the ​5th March​ for
outstation Divisions​.

​No further LOC​ for the FY will be issued by the LOC Cell ​after 15th March