2.12 REGISTER OF MISCELLANEOUS RECOVERIES

The register of miscellaneous recoveries prescribed in paragraph 22.2.9 of CPWA Code should be examined to see that : -

1. The register is properly maintained in form CPWA 95 and regularly reviewed
2. Orders regarding recoveries to be made from contractors or other persons which cannot be watched through suspense or other account are promptly entered in the register.
3. In the case of works the accounts of which are not kept by subhead , the credits anticipated in the estimates for works, for recoveries of expenditure etc. are posted in this register immediately on receipt of sanctions to estimates ( note 1 below para 22.2.10 of CPWA Code ) ; and
4. The timely realization of each item is correctly and carefully watched and references to voucher No., receipt no. etc. is given in case of realization through some bills of contractors or in cash respectively.

In the case of any item outstanding against a contractor it should be specially seen whether the recoveries have not been omitted to be made at the time of finalization of contractors accounts.

2.13 SCRUTINY OF DIVISIONAL CTE’S REGISTER

The Divisional CTE’s Register should be examined with a view to see whether the recoveries as pointed out by the CTE were effected/reduced /cancelled. For this purpose a copy of the statement of outstanding CTE’s recoveries should be obtained from the central office while collecting the other records.

The figures as per the statement should be verified with the Divisional Register and the statement returned along with each Draft Inspection Report with the latest position indicated against each item.

14. REGISTER OF P.A.O. ( NH ) MEMOS

The register of PAO ( NH ) memos should also be scrutinised and the divisional officers advised to take immediate action in adjustment of old outstanding memos.

2.15 REGISTER OF INTEREST BEARING SECURITIES

It should be seen while checking the register of interest bearing securities that : -

1. The security tendered by the Contractor is adequate
2. Security deposits of contractors have been paid into the savings bank or converted into interest bearing securities at the cost of the depositors when the depositors have expressly desired this in writing ( para 15.1.4 of CPWA Code ) ; and
3. Government paper tendered as security is taken at its face value or market price whichever is less at the time of deposit and in the event of its subsequent appreciation or depreciation in value a readjustment is made and that the security is returned or re-transferred only after the lapse of the stipulated period in the bond or agreement.

2.16 SCHEDULE OF RATES

A schedule of rates of each kind of work commonly executed is required to be kept in the Divisional Officer as per para 10.6.13 of CPWA Code. It should be intelligently examined to see that this is maintained properly and revised wherever necessary in conformity with the rates prevailing in each locality. The rates obtained for execution of works by call of tenders should be compared with the schedule of rates to see whether the rates obtained vary much from the schedule of rates necessitating the revision of the schedule of rate. ( See Para 7.4.4 of CPWA Code ).

2.17 EXAMINATION OF RECORDS RELATING TO WORKS

2.17.1 ( A ) MUSTER ROLLS

It should be seen :-

1. that a few muster rolls, paid in the test check month selected at random by the Inspection Officer are checked arithmetically ;
2. that muster rolls are maintained in accordance with the instructions contained in para 10.2.3 of CPWA Code.
3. that the payment is made through muster rolls only to daily laborers and not to permanent or temporary employees whose pay is charged to the head ‘establishment’ or members of work charged establishment ;
4. that payments of labour engaged through a contractor is not made or authorized on a muster roll as in such cases the use of the muster roll is not permissible ( paras 10.2.4 ) of CPWA Code )
5. that there are no unusual delays in payment
6. that a systematic record is maintained of the unpaid items and of their payment and the wages remaining unpaid for 3 months are regularly reported to the divisional officer vide para 10.2.3 of CPWA Code and are not thereafter paid without his orders ;
7. the duplicate copies of muster rolls are not prepared and that separate rolls exist for period of each payment ;
8. that casual labour rolls if any, are maintained only in exceptional cases and urgent cases and payment on them are made only by Gazetted Officer ;
9. that the progress of work done is shown in part – II of the muster roll form in all cases where work is susceptible of measurement.
10. That there is evidence that these records of attendance are checked at intervals by responsible officers of the sub-divisions and there are no interpolations in the attendance recorded ; and
11. That the cost of labour is not so largely in excess of the value of work done as to indicate either loss to Govt. or need for closer financial control.

2.17.2 (B) WORK CHARGED ESTT. PAY BILLS

The scrutiny of the work charged establishment pay bills will be made in the same manner as checking of pay bills of regular establishment. Sanctions to entertainment of work charged establishments are entered in the Register of fixed charges ( CPWA 58 ) vide para 22.2.5 of CPWA Code.

The pay bills and the register should be examined to see that : -

1. proper sanctioned exists for each post ;
2. provision for the purpose has been made in separate sub-head of the sanctioned estimate.
3. Pay of no such post exceeds the prescribed rates in cases where such rates have been definitely prescribed by a higher authority for any particular classes of posts ;
4. A proper acquittance is on record in respect of each such payment ;
5. The bills are prepared correctly and in proper form ;
6. A register is maintained to record the particulars of unpaid wages and their subsequent payment ;
7. The postings in the register are made with reference to the instruction and are attested by the Divisional Accountant ;
8. Reference to sanction, scale of pay and the name of work to which the establishment is charged are noted in the fixed charges register and attested by D.A. ; and
9. Reference to the payment voucher is recorded in the register in the column provided for the purpose.

2.17.3 ( C ) MEASUREMENT BOOKS

Payment for all work done otherwise then by daily labour and for all supplies required for specific works are made on the basis of measurements recorded in measurement books in Form CPWA.23. The measurement books should be numbered serially and entered in a register to be maintained in Form CPWA.92. This register should be examined to see whether it is maintained properly as per para 10.2.6 of CPWA Code, entries are correctly noted and whether generally there is no delay in recording of completed M.Bs.

During local inspection, special attention should be paid to the check of recorded measurements as the payments for work-done are mainly based on the measurements and any errors in recording of measurements may lead to faulty or double payments. For this purpose a test check of selected M.B.s should be conducted to see that :-

1. the entries in the M.B.s are made in accordance with the instructions on the fly-leaves of the measurement books and that no entries are made by officers other than those empowered to do so ;
2. the superior officers have exercised the requisite test check as laid down in the rules;
3. the works of excavation , foundation etc., which could not be test checked subsequently owing to their being covered up are test checked by the superior officers in time and entries regarding item carrying high unit rates etc. are made by the sub-divisional officers as laid down in C.P.W.D. Manual Vol. –II. The extent to which the superior officers are required to test check the measurements has been indicated in C.P.W.D. Manual Vol.II and it should be seen that these provisions have been strictly observed and a register of test check of measurements maintained in suitable form ;
4. there is generally no delay in payment after the measurements are recorded ;
5. by comparing the date of measurement with date of payment, inevitable payments are not postponed at the end of the year with a view to avoid excess over appropriation,
6. few payments made during the month selected for the test check should be checked with the connected measurement books to see :-

1. the comments column entered in the measurement book are arithmetically correct,
2. the rates shown in the abstract of cost are correct as per agreement.
3. Grand totals are correctly worked out ; and
4. The quantities and amounts have been correctly worked out and entered in the bills from the measurement books;

g) An intelligent scrutiny of the measurements will lead to detection of record of wrong measurements by a sectional officer or perfunctory test check of measurements by his superior officers. For this purpose the detailed sheet of measurements attached with the detailed sanctioned estimates should be compared with the actual recorded measurements. It also happens sometimes that some of the measurements recorded by the Sectional Officers might have been test checked after a lapse of considerable time and any corrections in the measurements as a result of local checking might escape notice at the time of preparing bills for subsequent payments. This aspect should be properly checked. It should also be seen that the quantities from one page to another are correctly carried over and whenever deductions are shown, the quantities are reduced to that extent. In the case of road works, it should be seen that necessary deductions for voids at the prescribed percentages have been made from the gross quantities of measurements in respect of collection of boulders, stone metal, etc. and also for settlement of earth in case of filling etc.

( D ) REVIEW OF MEASUREMENT BOOKS BY THE DIVISIONAL ACCOUNTANT

As per para 10.2.9 of CPWA Code, the measurement books in use in the division are required to be reviewed in general annually be the Divisional Accountant. It should be seen that the Divisional Accountant has discharged this duty properly and that the record of the review of M.B.s is kept by him in a register. Completed MBs which are required to be recorded should also be reviewed by the Divisional Accountant before they are finally recorded. It should be seen that all the completed MBs. Have been properly received and recorded and there are no arrears in this regard.

5. ( E ) STANDARD MEASUREMENT BOOKS

Standard Measurement books are maintained to facilitate the preparation of estimates for periodical repairs and also for the purpose of preparing contractors bills for such repair works without having to record detailed measurements on each occasion ( para 10.2.8 of CPWA Code ).

During the review of standard measurement books it should be seen that : -

1. they are serially numbered as distinct from the regular measurement books and a separate register maintained to watch the issue and receipt of these books.
2. The entries in the books are made legibly in ink and certified as correct by a responsible officer ;
3. The divisional officer inspects the books periodically to ensure that the entries have not been tampered with and that all corrections due to additions and alternations have been made and the standard measurement books are kept upto date. It should also be seen that a certificate to this effect is recorded by him in the register of SMBs and forwarded to S.E. and PAO ( NH ) in so far they relate to National Highways.
4. That the certificate as required under para 10.2.8 (iv ) of CPWA Code are recorded by the responsible officer at the time of preparing bills for payment and a suitable note regarding payment is endorsed in the SMB when the payment is made.

2.17.6 ( F ) CHECK OF CONTRACT DOCUMENTS

(a) The payments to contractors and suppliers are made on the basis of rates accepted and entered in the contract agreement, work order and supply orders. The accepted agreement, work orders and supply orders should , therefore, be examined carefully on the following lines :-

The agreement accepted by the Divisional and the Sub-divisional officer since the last inspection to date of present inspection should be scrutinized to see that the rules regarding entering into agreements as laid down in rule 12 of General Financial Rules are scrupulously adhered to. Wherever competitive rates have not been sought or where high tenders have been accepted or where other irregularities in procedure have come to light, the same should be brought to the notice of proper authority. Cases in which there is evidence that an officer or agent of a contracting department has an undue common interest with the contracting party, should be brought to the notice of higher authorities.

(b) Lump sum contracts should be examined to see that they are in conformity with the procedure envisaged in Chapter – II of CPWA Code, that there is no infringement of rule and that the checks prescribed at each level as given in para – under heading – P. Lump sum contracts are properly exercised. The inspecting officer is required to ensure that the above instructions in so far as they relate to local check are strictly complied with by the parties. They should also see that the Divisional Accountant carries out they should send a special report to headquarters along with the Draft Inspection Report, indicating clearing whether any lump sum contracts have been executed in the divisions and if so whether, they have been examined and checked according to the prescribed instructions. The result of check should also be reported with a view to enable the head quarters to know whether the system of lump sum contract is working properly and whether the checks exercised thereon at all levels are satisfactory. Even if there are no lump sum contracts a nil report should be given.

2.17. 7 ( G ) TENDERS AND COMPARATIVE STATEMENTS

The tenders received including the rejected ones should be checked to see that :-

1. wide publicity was given for calling tenders and due period of notice allowed consistent with the magnitude to the contracts ;
2. the tenders have been received on the prescribed forms in sealed covers ;
3. all tenders bear the dated initials of the officer opening them ;
4. the rates quoted by the tenderers have not been overwritten or changed without attestation by the tenderers ;
5. the tender documents are as per the approved N.I.T. and there are no deviations;
6. the conditions regarding earnest money deposits as given in Form PWD 6 have been followed strictly ;
7. the tenders have not been sold after the expiry of date upto which tenders were notified to be sold;
8. the tenders have been issued only to the registered contractors and in case of issue to unregistered contractors, proper authority exists;
9. all other formalities to be observed by the divisional officers as envisaged in CPWD Manual Vol.II vide para 6.3.40 have been properly observed.
10. The comparative statements have been got correctly prepared checked and certified by the Divisional Accountant as per provisions of para 4.2.4 of CPWA Code ; and
11. That in the case of contracts accepted after negotiations, the negotiations have been conducted by the authority competent to do so and have been done in accordance with the procedure laid down.

2. 17. 8 ( H ) REGISTER OF AGREEMENTS

The Register of agreements should be scrutinized so as to ensure ( i ) all the accepted tenders have been properly entered in the register of agreements according to the serial order and a number allotted to each agreement, (ii) all the columns are filled in and the date actual completion of the works noted in the respective column on competition of each contract ( iii) all the agreements entered in the register are physically available in the safe custody of the responsible official concerned and ( iv ) the copies of all agreements accepted by officers higher than the Divisional Officers are sent to PAO (NH)

2.17. 9 ( I ) REGISTER OF WORK ORDERS

It should be seen that the work orders are not sanctioned as a matter of routine as normally tenders are to be invited for works costing over prescribed limits. Only in cases of urgent necessity the officers are required to award works on work orders. The reasons specifying the urgency for dispensing with the call of tenders should be examined. It should also be seen that work orders are not issued for an amount in excess of the amount upto which an officer is competent to issue them as per the powers delegated to him, that the rates allowed in the work order are not in excess of the estimated rates or schedule rates and that the reasons justifying the acceptance of rates higher that the estimated schedule rates are on record. It should also be borne in mind during scrutiny that the rates allowed in the work orders are not in excess of those which might have been obtained if tenders had been called for the same or similar nature of work, for which the Jr. Accountant should make a comparable study of rates obtained in contracts entered into by Division.

It should be seen that all the work orders sanctioned during a year by the Divisional Officer and other superior officers are entered in a register and the annual limit as provided for in para 6.202 of CPWD Manual Vol. II is not exceeded.

2.18.1 ( J ) CONTRACTOR’S LEDGER AND REGISTER OF CONTRACTORS BILLS

It is very essential that the contractors' ledger should be subjected to a thorough scrutiny during local inspection. The contractors' ledger should be examined to see that :-

1. It is properly maintained as per instructions contained in chapter 10.7 of CPWA Code and is up to date ;
2. The postings are made as and when payments are made for works or supplies made and closing balance worked out at the end of each month and the work wise details of closing balance given and signed by the Divisional Accountant;
3. There is no delay in adjustment of secured advances outstanding for over 6 months ;
4. The Divisional Accountant has effected agreement month by month between the balances detailed in the works abstracts and corresponding balances of the accounts in the ledger ( para 10.7.7 of CPWA Code ) ;
5. Adequate action has been taken in the case of old outstanding accounts for the submission of a subsequent running bill or the final bill in the case of entries relating to running bills in col. 10 of the register not bearing the initial of the Divisional Accountant.
6. Debits for value of stock supplied during the selected month are made from the original receipts given by the contractors which should agree with entries in the monthly abstract of stock issued and with the rates stipulated in the agreement.
7. The unstamped receipts for issue of materials are duly acknowledged by the contractors and are properly filled ; and
8. There are no balances outstanding for a long period even after finalisation of contractors bill ; minus balances if any outstanding should be examined carefully and the divisional officers advised to clear the same expeditiously.
9. The register of contractors' bills should be examined to see that it is maintained in accordance with the instructions contained CPWD Manual Vol. II vide para 6.12.01. It should be seen that the register is reviewed regularly by the Divisional Officers, that there are no undue delays in the payment of bills and that reference to cash vouchers no. & date is given in respect of paid bills.

2.18. 2 ( K ) WORKS ABSTRACTS

The work abstracts and connected accounts relating to one or two selected works should be examined in detail from the commencement and all transaction recorded in them should be analysed and compared with the details of the sanctioned estimates and contract agreements.

It should be seen that :-

1. the work abstracts for major and minor works are kept separate as per para 10.5.1 of CPWA Code ;
2. the accounts of major works are kept by subheads wherever necessary ;
3. the charges are correctly allocated to the subheads concerned and transfers from one subhead to another are supported by a formal transfer entry order approved by the Divisional officer ( para 8.1.7 of CPWA Code ) ;
4. the balances under the suspense accounts ‘contractors’ and ‘laborers’ have been verified by the Divisional Accountant and sub-divisional officer respectively and they agree with the balances shown in the contractors ledger and in the unpaid wages register respectively, and
5. the works abstracts of the selected months should be compared with the postings in the register of works in order to see that they tally in all respects and with the schedule of works expenditure for the month.

2.18.3 ( L ) REGISTER OF WORKS

The register of major and minor works should be examined to see that they are maintained properly and up to date in accordance with the instructions given in para 10.6 of CPWA Code.

It should be seen that :-

1. the progress of rate of cost is struck under each subhead vide paragraph 10.5.6 of C.P.W.A. Code ;
2. monthly postings are examined and attested under the dated initials of the Divisional Officers ;
3. there is evidence to show that delays in closing the accounts in measuring work done or in settling up bills are enquired into ;
4. the works abstracts are returned to the sub-divisional officers promptly after entering in the register of works ;
5. all liabilities and assets are settled and suspense accounts cleared before the accounts of a work are closed ;
6. a note of completion of work is recorded in the register under the signature of Divisional Officer and that completion reports are submitted in all cases where required under para 10.6.11 of CPWA code and a note of sanction to the excess over estimate is kept in the folio concerned.
7. Action under para 10.6.12 for correction of errors has been taken wherever necessary ;
8. The subhead ‘ Additional Charges’ for materials issued to contractors has been opened in the accounts of major works ; a few charges falling under this category should be examined to see that they are correctly debitable to Government and not to the contractors account ;
9. Suspense items as shown in the register of works are traceable :-

1. in the contractors ledger as regards amount due to or from contractors ;
2. in the register of arrears of wages maintained by the SDOs ;

1. the postings in the register are readily traceable in the works abstracts, and
2. in cases of probability of excess of actual over estimated cost of work , work slips in form CPWA 39 have been prepared and submitted to the Superintending Engineer vide Para 10.6.3 of CPWA Code.

It should be seen that in case of accounts of annual maintenance estimates, necessary action as required under para 10.6.8 of CPWA Code has been taken and that the instruction vide para 10.6.4 to 10.6.7 ibid. regarding clearance of suspense accounts of the completion of work are followed properly.

2.18.4 ( M ) MATERIALS –AT – SITE ACCOUNTS

While scrutinizing the Materials at site Accounts it should be seen that the accounts of materials issued to a work are in accordance with the instruction contained vide paras 10.3.14 to 10.3.18 of CPWA Code. In general it should be examined that :-

1. the value of materials at site of each major work as shown in the register of works agrees with the balances shown in form 35 ;
2. the issue to materials to work are correctly classified under issues to contractors and issues direct to works, the issues to contractors being debited to the contractors accounts ;
3. proper numerical account of the receipts, issued and balances of surplus materials at the site of completed works or of dismantled materials are maintained properly and ;
4. the verification of unused balances has been done by the responsible officers and a report of verification submitted to the Divisional Office.

2.18.5 ( N ) REGISTER OF SANCTIONED ESTIMATES

The register of sanctioned estimates should be examined to see whether it is maintained in proper form and whether no estimate is technically sanctioned without getting prior administrative approval and expenditure sanction. The estimates for component parts of a project work sanctioned by the Divisional Officer should be seen that with reference to the detailed preliminary estimate and the sanction is with the competency of the Divisional Officer. The entries of sanctions to detailed estimates in the works register should be checked in the case of all works on which expenditure has been incurred without or in excess of the sanctioned estimates etc. 25% of the entries should be checked in respect of all other works.

The progressive expenditure and figures of sanctioned estimates and allotments etc. in respect of individual works given in the schedule of works expenditure ( From CPWA 64 ) for the month of March & September should be checked with the register of works to the extent of 50% in case of schedule for September and 100% in the case of schedule for March.

2.19 ( O ) RUSH OF EXPENDITURE DURING MARCH

(1 ) The expenditure brought into accounts in Divisional Officer’s A/cs towards the close of the year should be scrutinised with vigilance and care to see that :-

1. no unusually large expenditure is incurred during March as compared with the previous month ; and
2. there are no irregularities in the accounting procedure due, to the rush of payments.

(2) The type of irregularities which often accompany exceptionally heavy expenditure are :-

1. unreal payments i.e. payments charged off in the accounts but not actually made to the parties at the same time ;
2. Advance Payments, Payments of secured advances etc. on the last day of March should be specially examined with a view to see whether it has been done to avoid a lapse of the grant.

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Last modified: September 11, 2000 This page is designed and maintained by  Dy.CA(A) O/O Chief Controller of Accounts.