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OFFICE OF CHIEF CONTROLLER OF ACCOUNTS

MINISTRY OF SURFACE TRANSPORT

GOVERNMENT OF INDIA

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CONTENTS

A. DIRECT PAYMENT PROCEDURE

B. PRESENT PROCEDURE

C. RESPONSIBILITIES OF R.O.

D. RESPONSIBILITIES OF PAO

E. RESPONSIBILITIES OF P.W.D.

MANUAL OF DIRECT PAYMENT PROCEDURE FOR EXECUTION OF NATIONAL HIGHWAY WORKS

 

1 DIRECT PAYMENT PROCEDURE

1.1 The system of Direct Payment for maintenance work of National Highways and Payment Procedure for World Bank assisted project in Punjab was approved by C&AG vide his U.O. no.725-ACI/SPII/16-98, dated 15.12.99. The consent of C&AG for the said procedure was for the year 1999-2000. This system was introduced in eight states. Under this procedure Regional Officer (NH) was declared as Drawing and Disbursing Officer. All the Supervising Engineers were asked to submit the bills of contractors to the RO of MOST. He was required to verify the payments and accord necessary approval as per PWD procedure. Thereafter these were to be processed by RPAO(NH) and issue of cheques by him in favour of contractors as asked by RO and make necessary entries in his records. The payments were to be restricted as per allocations made by MOST for this purpose. Cheques for agency charges were sent to State Accountant General for credit to the State Account.

1.2 Now Ministry has decided to introduce the Direct Payment Procedure in 14 states for all works under the MH 3054, and MH 5054 : C&AG has accorded his approval for introduction of this procedure in 14 states w.e.f. 1.10.2000 vide his U.O. No._____________________________ )

 

 

2. PRESENT PROCEDURE :

2.1 At present the accounting procedure for maintenance of expenditure and capital work on National Highways is as per procedure formulated in 1977 by MOST in consultation with C&AG and Deptt. Of Expenditure. As per the said procedure, the expenditure is initially incurred by the State PWD and on receipt of the monthly compiled accounts from the Divisions, the A.G. sends to RPAO(NH) the monthly statement of receipts, if any, and expenditure on National Highways with all schedules, vouchers, supporting documents etc. for claiming reimbursement. The RPAO, thereafter reimburses the claimed amount to AG by cheque/Demand Draft after exercising the prescribed checks.

 

 

3. DIRECT PAYMENT PROCEDURE

3.1 Under this procedure, the Regional Officer (National Highways) has been declared as the Drawing & Disbursing Officer and arrange payments to State PWDs for incurring expenditure on National Highways.

3.2 All Supervising officers/Executive Engineers/Project Directors of State P.W.D. will submit the claims of contractors/department to the Regional officer, (NH) M/o Surface Transport in the prescribed forms for seeking payment from RPAO (Annexure I). In case bills are of different type forms prescribed by CPWD may be used.

3.3 The roles of the Regional Officer and Regional Pay & Accounts Officer (National Highways) in the procedure has been defined separately in para 4 & 5.

 

 

4. ROLE OF R.O.

4.1 In the revised procedure of Direct Payment the Regional Officers will execute and exercise the duties of D.D.O. as prescribed in Receipts & Payment rules/GFR and CAM. He will receive the Bills in duplicate, from the Divisions for arranging payments to contractors/divisions. After applying the prescribed checks as detailed below then he will sign the Bill in the capacity of DDO and send it to RPAO. RO should maintain a Bill Register in the proforma detailed in Annexure II.

4.2 R.O. should enter the bill in the above Bill Register and enter the Bill No. & Date on right corner on the first page of the Bill. He will also record the classification on the Bill.

4.3 Before sending the bill to PAO, RO should make entry of the Bill in Job Register/Expenditure Control Register in prescribed proforma/Annexure II.

4.4 R.O. should also countersign the certificates received with the Bill from PWD Divisions as per Annexure III.

4.5 On receipt of the cheques/DD from the PAO office, RO should enter the number of cheque/DD in the Bill Register and simultaneously will enter these cheques/DDs in the cheque delivered register to be maintained in the format as detailed in Annexure IV.

4.6 RO should also watch the proper acknowledgement from the party and ensure to get the stamped receipt from the payee.

4.7 It will be the responsibility of the RO to issue proper TDS certificates to the concern parties as well as to concerned Govt. agencies.

4.8 R.O. will also be responsible to get the compliance done to the bills returned by the RPAO(NH).

4.9 R.O. will ensure that all bills are in prescribed formats and the Supervising Engineer has exercised all checks as required under rules and recorded relevant certificates required of him.

4.10 R.O. will also ensure that Division conducts the reconciliation of expenditure with the figures/records being maintained in his office and RPAO (NH) and discrepancy, if any, settled on month to month basis. R.O. will depute an official and reconcile the figures with RPAO on a monthly basis.

4.11 Checks to be applied by the R.O. while examining the bills received from PWD (NH) Division.

  1. That the expenditure relates to National Highway work.
  2. That the bill is in prescribed printed form & supported with all necessary documents. (as shown in Annexure I.
  3. That the expenditure is for a sanctioned job.
  4. That the expenditure is covered with proper financial sanction/technical & approval of the MOST, New Delhi.
  5. That all the recoveries have been made as per rule.
  6. That the necessary entries have been made in the M.B.
  7. The rates are as per agreement.
  8. That the necessary certificates prescribed by the D.G. Roads MOST, New Delhi are attached with the bill.
  9. That the expenditure is within the budget allotment.

 

 

5. PAO’s ROLE IN THE DIRECT PAYMENT PROCEDURE

5.1 On receipt of bills from divisions duly verified and certified by the Regional officer (NH), the Regional Pay & Accounts Officer will process all the bills with reference to the sanctioned estimates, sanctioned Revised Estimates Budget allocations and other financial sanctions. He will see that bills are duly supported by vouchers, invoices, schedules and these are in prescribed format. The bill is complete in all respect. He will also see that all statements are attached with the bill, wherever necessary and as prescribed in different codes (CPWD-Manual, CPWA Code).

5.2 After prescribing all checks as required under GFRs, Receipts & Payments Rules, CTRs, CPWD Manual Vol II, CPW Account code, Delegation of Financial Powers and Civil Accounts Manual etc., he will pass the bill, make the necessary entries of expenditure in relevant registers (as detailed below) and then he will prepare a cheque and pass it on to RO for onward transmission to Divisions.

5.3 Thereafter, RPAO (NH) will compile the accounts of these payments and book the expenditure against the relevant Head of Account and send consolidated Accounts to Hqrs.. He will also ensure that expenditure has not exceeded budget grant, approved estimates and expenditure relates to National Highways.

5.4 RPAO(NH) will also account for all receipts received from Divisions on account of sales of lender forms, sale of forests, sale of empty drums and bags, Road cutting charges and DOT charges etc. All receipts will be accounted for against relevant receipt Head.

5.5 RPAO(NH) will return all such claims which are deficient of supporting documents, sanction, sanctioned estimate, not in prescribed format to R.O. for getting the compliance done from the State P.W. Division. He will also assist the Supervising Engineer in reconciliation of expenditure figures with that being maintained in his office.

5.6 RPAO will maintain the following registers for payments and accounts:

1. Jobwise/Expenditure Control Register (Annexure-II)

2. Payment Register - Form CAM 9

3. Compilation Register – Form CAM 33

  1. Cheque Delivered register (Annexure V)

 

5.7 RPAO(NH) will also maintain all other registers as being maintained now in the reimbursement procedure.

 

6. ROLE OF STATE P.W.. DIVISIONS

6.1 State PW Divisions will continue to execute the various schemes of Central Government on National Highways passing through their respective states. They will continue to be treated as agent to Central Government.

6.2 In the new procedure of Direct Payment System, the Regional Officer (National Highways) will be the Drawing and Disbursing Officer for all payments and receipts relating to National Highways. The Supervising Engineer (Ex. Engr. Or A. Ex. Engr.) will seek reimbursement from RPAO(NH) through the Regional Officer (NH). They (Supervising Engineer) will submit claims of contractors or of their own department (if some work has been undertaken departmentally) duly verified and certified to the Regional Officer (National Highways) for reimbursement in stead of going through State Treasury and State Accountant General. The Regional Officer (NH) in turn, after exercising necessary checks as prescribed in the foregoing pages, pass on the bills to the Regional Pay & Accounts Officer (National Highways) for process and issue of cheques in favour of contractors as desired by the Supervising Engineer. The RPAO(NH) will then process the claims and pass them for payment and issue cheques. If some claims are deficient in some respect, the same will be returned to the Supervising Engineer through the R.O. for doing the needful. On compliance of the observations raised by RPAO(NH) the Supervising Engineer will re-submit the claim for reimbursement.

6.3 On receipt of the cheques from RPAO(NH), the same will be entered in the cheque delivered Register by the Division. Supervisor will ensure proper acknowledgement of payment released to the contractors/parties/individuals.

6.4 The State PW Divisions will continue to maintain the same records for submission of bills to RPAO(NH) as is being done in the reimbursement procedure. (As prescribed in CPWD Manual Vol.II, CPWD Account Code, Receipts and Payment Rules, GFRs, Civil Accounts Manual etc.) They will continue to submit the claims of the contractors in the prescribed format as it was being done in the previous system. Some of the forms have been detailed in Annexure I.

6.5 In the Direct Payment System, all receipts pertaining to National Highways will be deposited with the Regional Pay & Accounts Officer (National Highways) by means of Cheque/Demand Draft. A receipt for this purpose will be issued by RPAO(NH). The following items will form part of National Highways Receipts :

  1. Sale proceeds of Tender Documents
  2. Sale proceeds of empty Bitumen Drums and cement bags
  3. Road cutting charges
  4. Sale of forest products
  5. Receipts from Telecommunication Department
  6. Misc. receipts

6.6 Agency Charges

The cheque for agency charges for executing the work of National Highways will be sent direct to the State Accountant General for credit to the accounts of the State.

6.7 The Supervising Engineer will send a monthly statement of Bills and Payments to the State A.G. so as to enable him to calculate the amount of the Agency Charges due to the State.

6.8 The Supervising Engineer will be required to reconcile the details of expenditure being booked in his office with that in the R.O. on month to month basis. This reconciliation work cannot be postponed. If there is any discrepancy between the two sets of figures, Division will depute an official reconcile the same and it will be sorted out in consultation with the RPAO(NH).

6.9 The Supervising Engineer will ensure that all claims are supported with proper sanction of MOST and there exists approved and sanctioned estimates of the project for which bills are being submitted to RPAO(NH) for payment that budget allocations for the financial year are available. The charge is rightly debitable to the National Highways. He will exercise all checks as prescribed in this system and as required of him under CPWD Manual II, CPWD Account code, GFRs, delegation of financial powers, Receipts & Payment Rules, CTRs and Civil Accounts Manual etc. He will also append all certificates with the bill as prescribed in this system. He will be responsible for correct and rightful submission of bills to RPAO(NH) through the Regional Officer. He will be answerable to the Drawing & Disbursing Officer for all payments and receipts.

  

 

 

ANNEXURE-I

 

 

TYPES OF BILLS AND RELATED FORMS TO BE PRESENTED TO RPAO(NH)

 

S.No. Name of Bill Form No. Authority

1. First & Final Bill CPWA 24 Para 10.2.12 of CPWA/Code

2. Running Account Bill CPWA 26 Para 10.2.12 of CPWA/Code

  1. Running Account Bill for Lump Sum contractCPWA 27APara 11.3.2 of CPWA/Code

4. Final Bill for Lump sum contract CPWA 27 B Para 11.3.3 of CPWA/Code

5. Secured Advance for lump sum CPWA 26 A Para 10.2.20 of CPWA/Code contract & 31

6. Supply of materials issued to Para 10.3.4 & 10.3.8

of Contractors CPWA 35 A CPWA/Code

7. Work Charge pay bills CPWA 29 Para 10.2.26 of CPWA/Code

8. Master Roll Bill CPWA 21 Para 10.2.3 of CPWA/code

9. Hand Receipts CPWA 28 Para 10.2.12 of CPWA/code

 

  

FORM MOST-I

ANNEXURE-II

PROFORMA FOR BILL/JOB/EXPENDITURE CONTROL REGISTER

S.No.& Date Name of division Name of work Name of contractor Amount of Bill Initials of DDO Dated initial of receipt in PAO office No. & date of cheque/DD received from PAO
1 2 3 4 5 6 7 8
 

 

 

 

 

FORM MOST-2

 

ANNEXURE-III

Certificates to be furnished with the Bill by the Executive Engineer of PWD (NH) Div. & to be countersigned by R.O.

Certified that :-

  1. The bill has been prepared in prescribed form.
  2. The 5% Bank guarantee has been deposited by the contractor vide no.__________________________ for Rs._____________ of______________Bank valid upto _____________________ .
  3. Entries of this bill has been made in the Measurement Book at page no. _______ to _________.
  4. All the deductions/recoveries have been made as per rates applicable.
  5. Recoveries of Income Tax and Sales Tax and surcharge thereon have been deducted as per rule.
  6. Works has been executed as per MOST's specifications.
  7. All the recoveries have been realised and credited to proper head of A/c.
  8. It is certified that the full rates have been allowed as the quality of work is as per MOST's specification.
  9. All statements such as deviation statement, extra items statements and substituted items statement duly approved by the competent authority (if any) are attached with the bill.
  10. Certified that the bill (measurements) has/have been compared with the previous bill.
  11. Certified that the unconsumed material has been returned by the contractor/firm and taken in the Material AT SITE accounts.
  12. Posting of this bill has been made in the contractor ledger.
  13. Certified that the Approved Lower Rates/Approved Higher Rates items requiring sanction have been sanctioned by the competent authority and attached with the bill.
  14. The secured advance/mobilisation advance to the contractor is covered by non-revokable bank guarantee furnished by the contractor.
  15. Certified that the measurement have been accepted by the contractor in full as recorded in measurement book.
  16. Contractor/firm has submitted the labour reports every fortnightly.
  17. Details of each months payment are being sent to A.G.
  18. Certified that as per para 33.12.3 of section 33 of CPWD Manual Vol-II, qualified engineer has been employed by the firm/contractor.
  19. Arithmatic checks of all measurement has been checked fully.
  20. MBs are attached with the bill.
  21. Sanction/approval for extension of time of competent authority (MOST) is attached with the bill.
  22. Theoratical consumption statement of material such as cement, bitumen, steel etc. have been attached with the bill.
  23. Secured advance and mobilisation advances have been released in acordance with the instructions by MOST or as per CPWD Manual Vol.II and their recovery is also as per instructions issued by MOST.

 

__________________ _______________________

Countersigned Executive Engineer

P.W.D. (NH) Division

 

__________________

S.E. (C) MOST

 

 

FORM MOST-3

ANNEXURE IV

Cheques/Demand Drafts Delivered Register

(to be maintained by R.O.)

 

S.No. & Date Bill No. & date Amount Cheque No. & date Signature of payee Signature of DDO
1 2 3 4 5 6
 

 

 

 

 

 

 

 

FORM MOST-4

ANNEXURE –V

CHEQUE DELIVERED REGISTER

(to be maintained by RPAO [NH])

S.No. Bill no. & date Name of division Name of contractor Cheque no. and date Amount No. of MB Acknowledgement of DDO Initial of PAO

 

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Last modified: October 05, 2000

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