PUBLIC WORKS ACCOUNTS.

PUBLIC WORKS ACCOUNTS

1.Classification of Public works transactions: [Paras 5-14

of KPWA code vol1]

 General principles of classification of expenditure of

civil works are laid down in article 33 of KPWA code
volume I.
 PWD execute mainly all classes of civil works of almost
all departments

1
Public works transactions are broadly classified under the
following heads
Expediture heads – adjustable finally in the
accounts of the division
-final debits
Revenue heads – adjustable finally in the
accounts of the division
-final credits
Remittance heads – Receipts & payments (cash or
stores) on behalf of other
divisions, depts. or govts.
Debt heads – Receipts and payments held
in suspense pending clearance
These broad heads are further subdivided into
major head to detailed heads as per budget classification.

2
 Transactions of charges or receipts relates to:
a) State Civil works etc.- are classified in
Divisional accounts under the appropriate
expenditure or revenue head concerned.

b) Central civil works which are to be accounted

for finally in the books of A.G.- are classified
under appropriate central final heads, initially
and should be collected together in the
compiled accounts under the head“Adjusting
accounts between the union & state Government”.

c) Other central works – Under central

remittance heads concerned

d) Other state governments - under state

remittance heads concerned

e) Final adjustments will be made by A.G

through “central accounts section” of RBI, in 3
respect of transactions b, c and d.
 Further P.W. transactions are divided into
two classes

1. Original works
2. Repair or maintenance works

The expenditure of each should be

accounted for separately (Para 102 & 103
of KPWA code volume I).

4
2. System of accounts: (Para 15 & 16 of
KPWA code Volume I)
Comprises following features :-
i) The Divisional Officer (D.O) as a primary disbursing
officer, is permitted to draw money from the banks for payment of
work bills on treasury cheques.
ii) salary, etc and contingent payments are made by drawing
money through D.C. bills from Treasury.
iii) D.O collects departmental receipts of the division & remit
it to Treasury / Banks.
iv) Accounts of Receipts and payments (both cash & stores)
including the transactions of subdivisions are compiled every
month under the supervision of D.O. by the Divisional
Accountant (D.A).
v) All transactions, receipts/payments involving cash, stores,
other properties etc, should be brought to account forthwith
under the final credit/debit/remittance head to which it
5
relates, if it is known
2. System of accounts: (Para 15 & 16 of KPWA code
Volume I)
vi) If the exact head of account cannot be ascertained at
once, then the transaction should be classified temporarily
under deposit, if it is receipt or under MPWA if it is a charge.

vii) It is not sufficient that the D.Os accounts should be

correct to his own satisfaction but also to the satisfaction of audit

viii) Complied accounts are to be submitted to A.G every

month with in 8th .

ix) The A.G. will audit the accounts submitted to him by

the division against the relevant
a) Sanctions
b) Appropriations
c) Propriety
x) Then the divisional accounts are incorporated in the
general accounts of the Government by A.G.
6
3. Responsibilities of D.O(Executive Engineer) regarding
accounts: [With the assistance of D.A(Audit
officer/accounts superintendent)Para 17 of KPWA code]
- D.O. is responsible, as a primary disbursing officer
of the division.
i) not only for the financial regularity of the
transactions of the whole division.
ii) but also for the proper maintenance of accounts of
the division as a whole correctly and in accordance
with the rules in force
iii) for submission of monthly accounts every month
with in 8th to the A.G. or the concerned.
iv) for submission regular returns & additional returns
as called for by AG or Departmental higher authorities
v) that the accounts of the division are not allowed to
fall into arrears.
vi) to seek the assistance of A.G. or higher
departmental authorities in case of any doubts, or 7
confusions/arrears etc.
4.Responsibilities of the D.A.:
I. Position of the D.A./A.S./A.O in a division

 the post of D.A. in the division is very

important & powerful
 The D.A has statutory powers. It is only for
the D.As, clear cut duties and responsibilities
are prescribed in the code itself that too in
PWD and not for any other officer.

8
 4.Responsibilities of the D.A.:
I. Position of the D.A./A.S./A.O in a
division
 The divisional accountant has 3 folded functions
(Para 20(a) of KPWA code Volume I)
1) As an accountant – he has to compile the
accounts of the entire division as per rules
in force
2) As an internal auditor – he has to apply
certain preliminary checks to the initial
accounts & vouchers etc., as per codal
provisions.
3) As a financial adviser - he has to act as a
general assistant & adviser to the D.O in
all financial matters, financial rules,
accounts & budget.
9
4.Responsibilities of the D.A.:
I. Position of the D.A./A.S./A.O in a division
 The D.A is treated as senior member of the office
establishment of the division to enable him to
discharge his duties efficiently [20(c )]
 His position is respect of accounts is analogous to that
of a S.D.O ( AEE) in respect of works [20 (c )]
 The D.O should see that D.A is given the fullest
opportunity of becoming conversant with sanctions,
orders, and proceedings. [20 (c )]
 The D.O should obtain the advice of D.A first, before
seeking advice from the A.G in the matters
connected with the accounts of the division or
application of financial rules, in case of doubts(25).

10
4.Responsibilities of the D.A.:
II. Duties & responsibilities of the D.A:-

He should be a qualified hand and should have

actual experience in the accounts work in a division
(Para 19 KPWA code volume I).
He is expected to keep himself fully conversant
with all rules & regulations with up to date
amendments, required for, in his sphere of duties
[20 (b)]
He is expected to know all sanctions and orders &
other proceedings passing through the office
(division and subdivision) [20 (b)]
He should assist the D.O in discharging his duties
regarding financial regularity and maintenance of
account [Para 19]
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4.Responsibilities of the D.A.:
II. Duties & responsibilities of the D.A:-

He should keep a watch over all the liabilities

against the grants [20 (b )]
He should see that rules & orders in force are
observed in respect of all transactions (21)
He should maintain a register of D.A’s audit
objections(21)
He should arrange for checking of computed
tenders properly & personally(22).
He should bring to the notice of D.O all
instances of subordinate officers exceeded their
financial limitations [23 (a )]

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4.Responsibilities of the D.A.:
II. Duties & responsibilities of the D.A:-
He should inspect at least once in a year the
account records of the sub divisional officers
under the orders of D.O[24 a]
He should impart necessary instructions to
subdivisions for proper maintenance of initial
accounts & for following rules.
The D.A is responsible for any procedural
defects in the subdivisions and should see that
the defects are got rectified on the spot [24(a)]
He should maintain a register of audit notes,
objection statements & inspection reports
received & disposed of (29 note)
13
4.Responsibilities of the D.A.:
II. Duties & responsibilities of the D.A:-
He should bring, the irregularities of S.D.O s, to
the notice of D.O every month (31)
He should scruitinize the cheques written With
reference to related bills invariably & put his
initials on the cheques (69).
He should review the measurements in the
M.B in respect of 25% of bills paid in the
subdivision and their arithmetical accuracy to be
checked by him personally (211)
He should ensure that the accounts returns of
the SDOs are received in a complete manner
[494 (1)]
He should see that all sums receivable are duly
realized and credited to concerned heads of
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accounts [494 (iii)]
4.Responsibilities of the D.A.:
II. Duties & responsibilities of the D.A:-

He should see that changes are covered by

sanctions and appropriations (494 iii)
He should see that all payments are supported
by complete vouchers setting forth the claims
(494 iii)
He should see that all vouchers and accounts
are arithmetically correct (494 iv)
He should see that, the claims admitted for
payment are valid and in order in all respect, on
the basis of rates sanctioned by competent
authorities and facts (as to quantity, service etc)
certified by authorized officers (494 V & VI)
15
4.Responsibilities of the D.A.:
II. Duties & responsibilities of the D.A:-
He should see that all charges & receipts are correctly
classified (494 VI)
he should ensure that every payment should be so
recorded & a receipt for the same so obtained that a
second claim against govt. on the same account is
impossible (496)
he should ensure that every order or sanction affecting
expenditure to be accounted for in the concerned
register/account so that the expenditure incurred against
it can be watched readily, (498)
ex:- 1) cost of sanctioned
estimate etc., - in the work
register 2)work
wise appropriations
provided-in the work register
3)tender agreement No. & date-in 16
work register
4.Responsibilities of the D.A.:
II. Duties & responsibilities of the D.A:-
he should ensure that the expenditure beyond
the competence of D.O is not incurred either at
his level or at his subordinate’s level (500)
he should check the expenditure of each
component / subhead of the sanctioned
estimate, with quantity, rate, & cost & also main
estimate (501)
he should watch through the register of special
recoveries in form PWG54 the special recoveries
ordered, from contractors or other persons (502)
he should see that the savings in the
estimates due to abandonment of parts of a
work, as evidenced by the quantities executed or
otherwise, are not utilized towards unauthorized,
unnecessary expenditure (503 note 2) 17
4.Responsibilities of the D.A.:
II. Duties & responsibilities of the D.A:-
D.A only is responsible for the 100% audit & for the
accuracy of the figures relating to the certified amounts of
unvouched cash & stock charges, pertains to the petty
vouchers & initial stock accounts entered in the S.Ds
accompanied to monthly accounts
he should maintain the register of clearance of MAS
accounts (258 a)

18
Accounts / returns to be maintained / submitted
at division & subdivision levels of P.W.D-
I. Cash Account
II.Stores Account
III.Suspense Account
IV.Reconciliation
V.Tools & Plant Account
VI.Road Metal Account
VII.MAS Account
19

VIII.Works Account
Accounts / returns to be maintained / submitted at division &
subdivision levels of P.W.D- I
cash account
1)General receipt-
- in Form KFC1
- should be entered in the cash
book - should be initialled by the
head of the office
- both for cash &
cheques - cheques subject
to realisation
2)Register of cheques received & adjusted
– PWG 7 to be maintained
3)Remittances – I.O.R.:-
-Remittances by P.W.D
officers - III.O.R 20
Accounts / returns to be maintained / submitted at division &
subdivision levels of P.W.D-

I Cash Account
4) Cash book
– general cash book - common to all departments
-for establishment & other
contingent charges
- works cash book –
• In form PWA1 – for PW works
• most important accounts record
• every entry must be concise
• self checks to be shown in both the sides of the cash
book - receipt side & payment side-bank coloumn
• date, voucher no., name of works details should be
noted both in receipt & payment side

• deductions made in bills should be shown on both sides

21
of the cash book
Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
I Cash Account
4. Cash book
- works cash book
• each entry in the cash book should be made along with
transactions
• entries should not be erased – corrections should be
attested
• discovery of mistakes – later stage – T.E in accounts
• each entry should be attested
• imprest entry when given should be shown in body of
the C.B as to whom paid
- not to be shown as payment
–portion of cash
balance - to be
charged after accounts rendered

22
Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
I Cash Account
4. Cash book
work cash book
• temporary advances- entry when given should
be
shown in body of the
cash book as to whom
paid
- not to be shown as
payment

–portion of cash balance

- to be charged
after
accounts rendered
• cash book pages to be counted & certified-
page Nos. , machine numbered
•
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details for cash balance at the end of month
Accounts / returns to be maintained /
submitted at division & subdivision levels of
P.W.D-
I Cash Account
4.Cash book
work cash book
• interpolation of entries should be avoided
• WCB to be closed once a month where as GCB daily
divisions month end
subdivisions 25th
each month
• cash to be counted & signed
24
Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
I Cash Account
5) Cheque book –PWG6– count –certificate
- register of cheques & receipt books to be
maintained
- under lock & key – personal custody of D.O
6) Cash - kept in strong chests
- double locking system
- duplicate keys in treasury
- duplicate key register to be maintained
- examination in every April
7) Imprest account – for payment of petty vouchers
- to be maintained & rendered by imprest holder
-in Form PWA3
- accounts to be rendered in the same month
8) Temporary – in form PWA 3
Advance - for payment of claims passed for payments
Account - accounts to be rendered within 2 days 25
Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
• Stores account :
 administration of all stores of a division is the responsibility of D.O
a ) acquisition of stores
b ) safe custody of stores
c ) distribution to the requirements of works
d ) disposal of stores
 receipts & issue transactions should be recorded in the order of
occurance then & there itself
 fictitious stock adjustments are strictly prohibited -serious
irregularity
Ex: -debiting to works in excess of requirements
-debiting to a work for which funds are
available intended to be utilized for
another work for which no funds are
available -writing back of
value of materials used on a work to avoid
excess outlay over appropriation - 26
Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
II. Stores account :

 stock receipt register to be maintained in form –PWA4

 stock issue register – to be maintained in form -
PWA4
 monthly abstract of receipts – PWA5
 monthly abstract of issues – PWA 6
 half yearly balance return of stores -PWG 13
 ½ yearly register of stock – PWG 15
 stores to issued on indents in form - PWG 11
 stores to be issued through invoices in form - PWG 12

27
Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
III.Suspense accounts:
A) Stock:
 Schedule of debits to stock – issues-values of
the month – PWA 28
 Stock account – OB, receipts, total, issues &
balance for the month – PWA 29
 RSL to be got sanctioned
B) MPSSA: for purchases
 Materials received & cost not paid in the same
month – credit to MPSSA
 When paid in subsequent months - debit to
MPSSA
28

 Register in form PWA 17 and schedule in PWA30

Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
III. Suspense accounts:
C) MPWA
 following transactions are to be accounted
for under MPWA
a) Sales on credit – with
authority b) Expenditure on
deposit works in excess of deposits
received c) Deficiencies in
cash or stock d) Actual losses of
cash or stock e) Errors in
accounts awaiting
adjustments f)
Retrenchments & losses of other
kinds recoverable from 29
Government
Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
III. Suspense accounts:
C) MPWA
 following transactions are to be accounted for
under MPWA
g) Debits, the allocation of which is not
known at once h) Which cannot be adjusted until
recovery or settlement is effected
i) Recoverable changes not
pertaining to the accounts of a work
j) Recoverable out
standings pertaining to works, the
accounts of which are closed k)
Municipal taxes paid on behalf of tenants
pending recovery.
 register to be maintained in form PWA17 &
schedule in form PWA 32
 prompt action is required to clear all suspense
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Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
IV. Reconciliation:-
Very important aspect
 Misappropriation & misclassifications can
be found out
a) Treasury account:-
i) form KFC 62 G
dispensed with ii) it is the responsibility
of the D.D.O to reconcile with
treasury figures before 10th of every
month through soft
copy.

31
Accounts / returns to be maintained /
submitted at division & subdivision levels of
P.W.D-
IV. Reconciliation:-
b) Cheques accounts:-
i) To be reconciled through
S.S.T (Schedule of
settlement with treasuries)
ii) Prepared
in form PWA 26 iii) to be
submitted to AG/CAO ZP/
concerned with in 8th every
month. iv)
32
Prompt action is required to clear
Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
V. Tools & plant account:-
 Two kinds
1. Ordinary - required for general use
2. Special - for Specific works
 Receipt account in form-PWA 4 –Examination, count,
 Issues account PWA 4 -
 Consolidated account of receipts, issues, & balance –
Register in form PWG 17)
in 3 parts-
I. articles on hand
II. temporarily lent or
sent out III. shortages awaiting
adjustments
 Accounts should be for 12 months ending September
 PWA 4 to be totalled & closed monthly
 PWG 17 to be totalled & closed yearly 33
 Reconciliation, verification, balance arrival, carried forward.
 Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
VI. Roadmetal account: (Para 396 of “D code, & 161 of
A” code)
Quantity accounts of road metal- PWG 18
Receipt, issues & balances – mile by mile
Monthly to be submitted to division with in 15 days of
submission of accounts by AE /JE
Unused balances should be verified in April every year &
consolidated report to division by May 15
Surplus should be brought to receipt in accounts
Deficit should be recovered
Collection to be made from January to May only
Consolidation to be made from June to December
No collection should be done while consolidation in progress
No metal spread in any one day, should be left
unconsolidated after the day’s of work is over 34
 Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
VII.MAS account (para 248 of A code):

 All materials brought to site to be accounted under MAS account

 Both quantity & value accounts to be maintained
 Section officer to maintain register in form- PWG 40 for receipts
- PWG 39 for issues & balances
- major
works - PWG 41for issue s &
balances
- minor works
 return to be submitted by section officer to the subdivision
in form PWG 42-major
works in form PWG43-
minor works
 to verify in subdivision with reference to previous balances
 surplus materials should be transferred to stock
 Shortages to be recovered
 register of clearance of MAS account is to be maintained by D.A at division
35

level and watch the final clearance of balances.

Accounts / returns to be maintained / submitted
at division & subdivision levels of P.W.D-
VIII . WORKS ACCOUNTS
I. Work abstracts (Para 260 of A code)
- cash or stock
transactions in respect of the works
during the month, estimate
component wise, sub head
wise
- To be maintained in form
PWA 10
– for major works. PWA 11
– for minor works.

36
Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
VIII . WORKS ACCOUNTS
II. Work registers (Para 284 of A code)
- The permanent &
collective records of the
expenditure incurred in the division
on each work. - To be
maintained in form PWA 12
– for major works PWA 13
– for minor works - Registers are
to be posted every month from S Ds /
work abstracts. - C.O.T. columns in
the register should be watched properly &
outstanding amounts are to be recovered
with fail. - Details of
payments with reference to voucher no.,
37
S.D No. with month should be mentioned in
Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
VIII . WORKS ACCOUNTS
II. Work register.
- After the work is completed & the
accounts of the work has been settled
the fact of completion should be
noted in the register at the end of the
transactions as “work completed during
_______” - Completion report should also be
sent to the higher authorities & the
fact of submission should also be
noted in the work register.
- And there after no expenditure
should be booked against such work.

38
Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
VIII . WORKS ACCOUNTS
III. Contractors ledger
- Personal account of a contractor’s all
transactions relating to the
contracts entrusted to him.
- Should be maintained in form PWA 14 as a
required in paras 299 to 304 KPW A
code.
- C.O.T. balances as per work register of all
works being executed by the
contractors should agree with the
balances shown in the contractor’s
register.

39
Accounts / returns to be maintained / submitted at
division & subdivision levels of P.W.D-
VIII . WORKS ACCOUNTS
IV. Deposit register
- deposits obtained / recovered from the
contractors are to be accounted in
this register.
- Comprises three parts,
I) EMD
II) FSD
III) Miscellaneous deposits
- Schedule of deposits to be prepared in
form PWA 34 & sent along with
monthly accounts.

40
 9.Preparation of bills:
I. Contract bills:-
 bills should be in prescribed form (para 212 of A code)
- PWG 32 1st & final
- PWG 33 R.A. bills
- PWG 33A for advancepayment
- PWG33b for secured advance payment
 Bills should be in triplicate
 Entires in M.B relating to description, & quantity should be
scruitinized by section officer
 Quantities entered in contents column of M.B should be
claimed in the bill
 Rates should be entered from the
-the contract agreement / schedule B
-S.R or
-Sanctioned estimate rates
 whether full rate can be allowed is to be verified 41
9.Preparation of bills:
I. Contract bills:-
 name of work in full as per sanctioned estimate
should be written on the bill
 estimate cost and sanction No. & date should be
noted on the bill without fail.
correct head of account should be mentioned on the
bill as per sanctioned estimate.
 whether peice work or tender work should be noted
on the bill
 Agreement No. & date should be noted on the bill
 R.A bill No. should be noted. (IRA, II RA, or final etc)
 name of the contractor should be there in the bill
 Date of commencement & due date of completion,
value of contract, & monthly stipulated
progress should be noted on the bill. 42
 9.Preparation of bills:
I. Contract bills:-

Full specification of item should be written in the bill as per

SR/schedule B/estimate
 contractor s signature should be obtained on the bill
 contractor s signature should be obtained on the bill
final measurements acceptance of the contractor should be
taken in all the final bills (accepted in full settlement of
all claims)
M.B. No./ page No. should be noted in the bill.
Date of measurements should be noted in the bill.
Date of check measurements should also be noted.
section officer should sign the bill

43
 9.Preparation of bills:
I. Contract bills:-
 AEE should also sign the bill with date for having check
measured the measurements taken by
AE/JE.
 previous paid voucher number & date should invariably
be noted in the bills for 2nd & subsequent bill.
 previous payment details such as item wise quantities &
cost including totals, should be there.
 Reference to S.D number of previous payments should also
be there in respect of 2nd & subsequent bills.

44
9.Preparation of bills:
II.Supply bills:
 Bills should be pucca bills
- bills in letter heads are not acceptable
- Bills in white paper with seal not acceptable
- Printed bills with bill No. & date,CST, KST No.s
are only acceptable
In triplicate
Name of work if supplies are for specific work should be
mentioned on the bill
 Estimate cost, sanction No. & date for specific works.
date of bill should be there invariably
Supply order No. & date on the bill
Purchase sanction No. & date should be mentioned on the bill.
Basis for rates should be noted on the bills-
quotation/tender/contacts/others.
Detailed description of materials supplied should be
mentioned in the bill. 45
 name of the supplier & his signature should be there
 10. Payment of contractors work bills & supply
bills. (Points to be observed)
I. Contract bills (work bills):
 whether the work included in approved budget/action
play/programmes.
 whether estimate administratively & technically sanctioned ?
Is sanction no. & date mentioned ?
 no work should be started without sanction to estimate
 whether the estimate sanctioned is current. -
Currency for estimates of original works- 5 years. -
currency for repairs & maintenance
works’ estimates – upto end of that financial year
 no expenditure should be incurred on works for which
currency of estimates are expired
 Whether grants are available. If work wise grant is provided
what is the total expenditure against it?
 Head of account to be mentioned for the bill as per 46
sanctioned estimate
 10. Payment of contractors work bills & supply
bills. (Points to be observed)

Contract bills (work bills):

 Basis for rates claimed.
 Full name of work as per sanctioned estimate is mentioned?
 Whether work taken up on piece work/tender/departmental
with authority & approval No. & date?
 Agreement. No. & date, date of commencement due date of
completion, monthly stipulated progress are
mentioned?
 Are quantities as per MB?
 RA bill No. mentioned?
 If 2nd & subsequent R.A bill previous quantity, rate, cost
entered in the bill?
 MB. No & page no and dates of measurements noted in the
bill?
47
 Are measurements DPQ’ed in M.B?
 10. Payment of contractors work bills & supply
bills. (Points to be observed)

Contract bills (work bills):

Are over all measurements recorded in M.B if it is a final bill
(not at all being recorded, just total quantities brought
forward with page no. reference. Over all measurements
- are must for final bill.
is shrinkage deducted in measurements in respect of quantity
for E.W for embankments?
Is date of handing over of site, due date - actual date of
completion mentioned?
Is extention of time given-if delay is on the part of the
department.
Is penalty levied - if the delay is on the part of the contractor?
reasons mentioned for extension of time are acceptable?
48
 10. Payment of contractors work bills & supply
bills. (Points to be observed)

Contract bills (work bills):

for extra items EIRL got approved from competent authority?

 In M B also
- Full name of work as per sanctioned estimate.
- situation of work
- Name of the contractor
- Agreement No. & date (P.W/ tender)
- date of measurements
- signature of the contractor
Should be there
Whether detailed measurements are there in M.B? (L.B.D)
 No lumpsum quantity without LBD is acceptable.
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 10. Payment of contractors work bills & supply bills.
(Points to be observed)
Contract bills (work bills):

Measurements should be lucid, clear & accurate.

Has JE/AE signed in the MB & bill with date?
Has AEE check-measured the measurements? & signed as
C.F.C with date in M B& bill?
Just noting “seen” “Verified” will not do.
It should be “checked & found correct (CFC) only
are specifications of each item recorded both in M.B & bill are
detailed specification as per schedule ‘B’/S.R/ sanctioned
estimate.
Arithmetical accuracy (calculation) of measurements in M.B.
and arithmetical calculations including totals in the bill
should be ensured 100% while auditing bill.

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 10. Payment of contractors work bills & supply bills.
(Points to be observed)
Contract bills (work bills):
Average measurements are not allowed in M.B.
Quantities in M.B should be traced to bill item wise as to the
correctness.
Quantities in the bill are to be compared item wise with
reference to schedule ‘B’/estimate quantities and to be
ensured that quantities are not exceeded over the sanctioned
quantities and also there are no abnormal savings in
quantity.
the rates claimed for each item should be as per schedule ‘B’
of the agreement/ sanctioned estimate/ SR.
payment at part rates should be avoided. If allowed, reasons
and rate analysis to be given by AEE.
Revision of rates after the work is carried out is not
admissible.
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 10. Payment of contractors work bills & supply
bills. (Points to be observed)

Contract bills (work bills):

 cement & steel calculation should be checked and verified
whether there is difference between purchase and actual
consumption.
supporting bills of the suppliers, for having purchased
materials such as steel, cement, pipe etc required for work
& used on work by the contractor should be attached to the
contractor’s bill with AE/J E’s certificate on it.
recoveries to be made form the contractors such as hire
charges of machineries, cement, steel etc, if any, are to be
effected before making payment after consulting work
register & other connected registers.

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10. Payment of contractors work bills & supply bills.
(Points to be observed)
Contract bills (work bills):
L.R, CBF, IT, ST (VAT) etc are to be deducted from all
bills at latest rates.
FSD is to be recovered at the prescribed rates.
Work register should be consulted before payment of
any bill to watch expenditure against
sanctioned estimate & budget provision.
reserved amounts in the bills should not be made on
the same original bill, if the subsequent
payments re made after the closure of the month after
first payment is made. Fresh bills are to be
prepared and paid. It is not correct to make payment
of such reserved amount by putting it under
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total column only.
10. Payment of contractors work bills & supply
bills. (Points to be observed)

Contract bills (work bills):

memorandum of payment should be drawn correctly by
deducting previous payment before pass
order
pass order to be put & signed both in MB & bill
payment endorsement with voucher No. & date and
cheque No. & date with amount paid with
attestation both in M.B and bill should be
made.
After the payment is made (during payment
endorsement while issuing cheque) measurements in
M.B should be crossed single diagonally. 54
 10. Payment of contractors work bills & supply bills.
(Points to be observed)
II. Supply bills:-
Is bill in pucca form?
Whether purchase sanction is obtained?
Whether grant is available?
Whether supplied against supply order? S.O. No. & date,
delivery note No. & date should be there in the bill.
Whether stock certificate furnished?
Whether certificate as to the quantity and quality of
the materials supplied is furnished?
Pass order
Payment endorsement
Fact of payment should be noted in the original receipt
entry in the stock receipt register to avoid double part.
Fact of payment should be noted on the original supply
order.
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PREPARED & PRESENTED
BY
K.GOVINDAIAH
ASSISTANT CONTROLLER (Retd)
LOCAL AUDIT CIRCLE
MYSORE

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