Central Public Works Accounts (CPWA) Code

The terms below are grouped by theme for sense, but the clause numbers (1)–(66) are the Code's own numbering; the complete numbered index sits at the end of this chapter.

The "officer" hierarchy — read carefully, it is heavily tested. These designations are defined by what the officer controls and whether he handles public money. Each is set out separately below.

These five terms are easy to confuse and frequently tested together. The thread running through them is the running account — the account with a contractor where payments are made at convenient intervals subject to final settlement on completion or determination of the contract (clause 50).

1. Advance Payment (3): a payment on a running account for work done but not measured. [see 10.2.23]
2. On Account Payment / Payment on Account (40): a payment on a running account for work done or supplies made and duly measured — may or may not be the full value, and (if intermediate) is subject to final settlement.
3. Secured Advance (52): an advance made on the security of materials brought to the site, to a contractor whose contract is for the completed item of work. [see 10.2.20]
4. Intermediate Payment (30): any disbursement on a running account that is not the final payment — it includes an advance payment, a secured advance and an on-account payment (or a combination).
5. Final Payment (25): the last payment on a running account, made on completion or determination of the contract, in full settlement of the account.
6. Recoverable Payment (49): a payment to/on behalf of a contractor that is not value creditable to him for work/supplies — and so must be recovered by equivalent cash recovery or short payment.

• 🏗️Public Works (44): civil works and Irrigation, Navigation, Embankment and Drainage works, etc. Work (65): used comprehensively — not only construction/repair but also objects connected with the supply, repair and carriage of tools & plant, the supply/manufacture of stores, or the operation of a workshop.
• 🧱Sub-work (58): in a large work of several buildings/groups, a distinct unit kept separate for accounts (e.g. the outer wall, cells, cook-houses of a jail; head works, main line, each branch of a canal). Sub-head (57): the sub-divisions into which the total cost of a work (or sub-work) is split for financial control — e.g. excavation, brick-work, concrete, wood-work.
• 💰Works Expenditure & Works Outlay (66): respectively the expenditure and the capital charges on the special services of construction/repair/maintenance — may be net of receipts, but exclude general services, Tools & Plant, Establishment, and amounts kept under suspense.
• 🔧Contingencies — Works (14): incidental expenses of a miscellaneous character that cannot be classified under any distinct sub-head/sub-work, yet pertain to the work as a whole. Completion / Completed (13): "completion of work" includes abandonment; "completed work" includes abandoned work.
• 🤝Contract & Contractor (15): a "Contract" is any undertaking (written/verbal, express/implied) by a non-Government person/firm for construction, maintenance, repair, supply of materials or any service in connection with works; a "Contractor" is the person/firm that made it.
• 🏦Deposit Works (17): works whose cost is met not out of Government funds but from non-Government sources (e.g. for municipalities/public bodies against cash deposits). Local Loan Works (34): works the PWD executes for a Municipality/Port Trust/corporation where the cost forms part of a loan from Government. Takavi Works (61): works on water-courses (or others) whose expenditure is treated as a takavi advance (advance to cultivators), recoverable from the parties concerned.
• 💧Water Course (64): a channel supplying water from an irrigation work, falling within the Canal Act of the area — per the Northern India Canal & Drainage Act 1873, a channel supplied from a canal but not maintained at Government cost, with its subsidiary works. Commercial Department (11): a department functioning on a commercial pattern.

Every clause of Para 2.1.1 at a glance — useful for spotting which definitions you can recall on sight.

Para 3.1.1: the CPWD primarily executes works of all classes — the public-works buildings needed by all Civil departments — except works that are vested in, delegated under Chapter 5 of GFR 2005, or transferred to the departments concerned, or entrusted to a State Government or the MES. Defence, Postal, Telecommunication or Railway works may also be entrusted to the Department, occasionally or as a standing arrangement, and at times other Government and non-Government works are undertaken too. Petty services such as the manufacture or supply of stores are also undertaken by Divisional Officers.

• ✅Finally adjusted in the Divisional Officer's accounts: charges & receipts for the Government's own public-works services, against the funds placed at his disposal.
• ➡️Pass-through (not finally adjusted): transactions for other Government works eventually leave the Divisional Officer's accounts to be incorporated in the accounts of the departments/Governments concerned. Non-Government works are charged against the deposits received for them.

Revenue is realised and credited to Government as it falls due under the governing rules; expenditure can be incurred only against a grant voted by Parliament or against appropriations provided to meet charged expenditure — the incidence between voted and charged being fixed by the Constitution.

Under Rules 79–81 of the Compendium of Rules on Advances, a Head of Department or Head of Office may sanction an advance to the family of a Government servant (permanent or temporary, excluding casual/daily-rated) who dies while in service, to meet immediate needs where the family is left in indigent circumstances.

1. The Divisional Officer is the primary disbursing officer. Permitted by the CCA, through a Letter of Credit, to obtain by cheque on the banks the funds for all disbursements — works, pay & allowances of gazetted and non-gazetted staff, and contingent charges. Bills for long-term advances and GPF withdrawals (staff other than Group 'D') go to the PAO. He also collects some departmental receipts and remits them into the banks.
2. Accounts compiled by the Accountant and rendered monthly. The receipts and disbursements (including subordinates acting for him) are compiled under his supervision by an Accountant and submitted monthly to the Pay & Accounts Officer. The PAO for a division is decided by the CCA — generally the Zonal PAO corresponding to the Chief Engineer he reports to.
3. Stores accounts. He must keep clear accounts of all stores received and make them available for audit by the Accounts Officer.
4. Proforma accounts for commercial works. Under each Major Head the charges on each project/work/sub-work are recorded separately; for certain classes — (i) Irrigation etc. commercial undertakings and (ii) quasi-commercial undertakings (self-supporting workshops) — proforma accounts of all transactions are prepared annually by the PAO or the Divisional Officer, with receipts shown separately.
5. Personal payments at PAO counters. Except to the extent in feature (1), personal payments to all Government servants of the Department are made on bills presented at the counters of Pay & Accounts Offices under the CGRP, and are brought to account directly by the PAO.

Para 4.1.1: as the primary disbursing officer, the Divisional Officer is responsible not only for the financial regularity of the whole division's transactions but also for maintaining the accounts correctly and per the rules in force; he submits his accounts to the Pay & Accounts Officer for post-check and incorporation in the general accounts. The PAO may call for any additional accounts, registers and subsidiary papers needed for elucidation. Para 4.1.2: he must not let the accounts fall into arrears, and where arrears or confusion arise that he cannot clear alone, he must at once approach the PAO for assistance.

He keeps himself conversant with all sanctions, orders and proceedings affecting receipts and charges, advises on the financial effect of every expenditure proposal, and watches the liabilities against the division's grants. To let him discharge these duties, he is treated as the senior member of the office establishment, his position being analogous to a Sub-Divisional Officer (para 45, CPWD Code).

• 📑4.2.4 — tenders: the DA is responsible for the safe custody of documents in the Accounts Branch, for efficient checking of computed tenders, for a personal test-check of those tenders, and (for lumpsum tenders) for seeing that authenticated drawings/specifications form part of the Notice Inviting Tenders and that the comparative statement correctly carries the checked totals.
• ⚠️4.2.5 — excesses & cash: he must flag every instance where subordinate officers exceed the financial limits on their powers. As a rule he is not required to receive or pay out cash — only where transactions at headquarters are small may the Divisional Officer entrust this to him, with the CCA's prior consent and on his own responsibility; even then the DA is not normally authorised to sign final receipts in Form 3. He affixes his dated initials after the last entry of the day in the cash book / stock accounts in token of check.

The Audit/Accounts Officer, with the competent authority's approval, arranges the periodical test-audit and local inspection of divisional and sub-divisional accounts; the Divisional Officer must make the initial accounts and connected records available. Inspecting officers should, where possible, discuss the draft reports with the head of the office inspected before submitting them — so the head of office should ordinarily be present at the inspection.

As a general rule, every sanctioning authority is responsible for communicating all sanctions and orders (against which receipts/disbursements are audited) to the Audit Officer and/or PAO in the prescribed manner.

• 📝4.5.1: results come as Audit Notes, Inspection Reports, letters or memoranda; they need prompt attention (Rule 62, CGRP 1983) and the Divisional Officer's replies must rest on his own knowledge — merely passing on a subordinate's explanation only lulls suspicion and breeds later irregularity.
• 📤4.5.2: Part I of the Audit Note and the Inspection Report are returned through the Superintending Engineer after the Divisional Officer records his replies; the SE passes final orders where competent and records remarks elsewhere. (Exception: the first reply to an Inspection Report may go direct to the Audit/Accounts Officer, with a copy to the SE.)
• ⚖️4.5.3: once a transaction is challenged, the responsibility to remove the objection rests with the Divisional Officer; an objection is usually removed by obtaining sanction, making recovery, correcting the account/voucher, or furnishing documents. Where a protest is made, the objection stays in force until the Audit/Accounts Officer formally intimates its withdrawal.
• 🗓️4.5.4: the Audit/Accounts Officer objects to any transaction lacking adequate sanction or involving an excess — he cannot assume sanction has been accorded. So Divisional Officers should send the earliest intimation of their sanctions, ideally a single monthly note signed by the Divisional Officer himself; if it cannot precede/accompany the Monthly Account, it is sent within a week of the account's despatch. The Divisional Accountant must monthly flag all irregular transactions not yet acted on.

Para 5.2.3 — Sectors: within the Consolidated Fund, transactions are grouped into Sectors ("General Services", "Social Services", "Economic Services"), sometimes sub-divided into Sub-Sectors, then into Major Heads — each Sector distinguished by a letter of the alphabet. (For UT Governments there is no separate Public Account; those transactions are booked in the Central Government's Public Account.)

Transactions taking place abroad are accounted under the functional Major Head (and its minor/sub/detailed/object heads). Departmental receipts arising in the High Commission/Embassy accounts are passed by the PAO, Ministry of External Affairs to the department's PAO; likewise the debit for expenditure abroad (e.g. stores) is passed on by the PAO, MEA. With the average rate of exchange abolished w.e.f. 1-4-74, estimates use the composite rate of exchange notified by the Finance Ministry; the resulting loss by exchange is debited to the relevant capital head, while for revenue heads gain/loss is booked under "0075" (gain) and "2075" (loss).

• 👀5.5.1(a): the Divisional Officer must keep a constant watch over the progress of expenditure, since he is ultimately responsible for keeping it within the division's allotments — taking early steps to obtain extra funds or surrender probable savings.
• 🤝5.5.1(b): the Head of Department and the PAO are jointly responsible for reconciling the HoD's figures with the Accounts Officer's books — done monthly, with the initial responsibility on the PAO, who furnishes each DDO an expenditure extract (with progressive figures for May to March).
• 📊5.5.2: works with specific appropriations are watched individually month by month through the Register of Works / Contingent Register; for lumpsum appropriations, the DO keeps a progressive abstract of expenditure and a register of grants & re-appropriations. Undischarged liabilities and anticipated credits must be reckoned — the review is of special importance in the last three or four months of the year.
• 📝5.5.3: all liabilities and assets adjustable by transfer to remittance heads are registered in Form 57 (Register of Transfers Awaited) as soon as known, and marked off as cleared so that items awaiting adjustment are known at any time.

Divisional Officers are placed in direct account with the State Bank of India (or another accredited bank) and assigned a Letter of Credit (LOC) against which they draw cheques for all bills they pass. No expenditure may be incurred from the Consolidated Fund in anticipation of the Appropriation (or Vote on Account) Act.

Appropriation of departmental receipts to expenditure is strictly prohibited except as in para 6.3.5 (Rule 6(2)(d), CGRP). No officer may draw cheques on any bank other than his accredited bank; payments outside divisional headquarters are settled by bank drafts. Employing Group D to fetch/carry money is discouraged (guards for large amounts).

An expired cheque is received back and cancelled by the Divisional Officer, kept as a voucher for issuing a fresh one (not destroyed). 6.2.13: a cheque cancelled before issue is recorded on the counterfoil/record slip and destroyed; one issued and then withdrawn is defaced and forwarded to the PAO, the account entries reversed.

• 🧾6.3.1: money received is at once brought to the Cash Book and a receipt in CPWA Form 3 (or a Cash Memo in Form 3-A) granted to the payer; where realised by deduction from a bill, a receipt is given only if specially desired, the deduction being noted. Acquittance for private cheques/drafts is not given until cleared.
• 📑Earnest-money exception: earnest money in legal-tender notes / Deposit-at-Call receipts attached to tenders and returned the same day to rejected tenderers need not pass through divisional accounts, provided a stamped receipt is taken in the Register of Tenders (treated as a subsidiary cash book). Earnest money received earlier, or not refundable that day, is brought to account.
• 💳6.3.2: private cheques accepted for Government dues are treated as cash and entered in the Cash Book; when sent for encashment they appear as "Remittances into Bank". To relieve the Cash Book, frequent cheque receipts may be entered first in a "Register of Cheques Received and Adjusted" (Form CPWA 1-A), only daily totals going to the Cash Book; a dishonoured cheque is written back by minus entries on both sides.
• ❌6.3.3: Form 3 / 3-A receipts may be issued only by the Divisional Officer, a declared CDDO, or a specially-authorised officer; no duplicate receipts on a plea of loss (Rule 23, CGRP) — only a certificate of the sum received.
• 🏦6.3.5 — disposal: moneys realised are paid into the bank as soon as possible as miscellaneous receipts. If a Divisional Officer must temporarily use cash receipts for current expenditure, he may — but before month-end he sends the bank a cheque for the amount, drawn in his own designation and endorsed "Received payment by transfer credit to the Public Works Department."

Foreign payments (para 6.4.2, Note) follow Rule 129 CGRP: the DDO forwards the firm's bill after receipt/inspection checks; the Accounts Officer pre-checks and either buys a foreign-currency bank draft, opens a Letter of Credit, or arranges a telegraphic transfer for heavy payments. 6.5: all remittances (including cheques/drafts) to the accredited bank are entered in a Form 4 book.

• 📓6.6.1: cash transactions are kept in the Cash Book (Form 1); imprest/temporary-advance holders use the Imprest Cash Account (Form 2). The Cash Book is one of the most important records of the department.
• ⚖️6.6.3: the Cash Book is balanced on the closing date of the month (weekly/daily where transactions are numerous), the cash counted whenever a balance is struck.
• ❌6.6.4: an entry once made is never erased — a mistake found before closing is struck through and the correct entry written in red ink between the lines, every correction initialled and dated; after the month is closed, errors are fixed by a transfer entry, with a red-ink remark against the original.
• ✅6.6.5–6.6.6: the disbursing officer checks all entries, signs the Cash Book at month-end (fixing responsibility for the month including the closing balance), and the actual cash is counted on the last working day of the month (or the first working day of the next, before any disbursement). Details go in Form 5 with a signed, dated reconciliation certificate.
• ⚠️6.6.7 — surplus / deficit: if the counted balance differs from the book balance and cannot be set right at once, an entry is made — cash found surplus → "8443-Civil Deposit / 103-Public Works Deposits"; cash found deficient → "Miscellaneous Works Advances" under Minor Head 799-Suspense.

• 📝6.7.1: CDDOs send an annual requisition for all three categories (A, B, C) of cheque books to their PAO, who consolidates and forwards it to the accredited bank — the bank delivers directly to CDDOs/PAOs and bears the cost of printing/binding/despatch. A Stock Register of Cheque Books (CAM Form 1) is maintained; CDDOs intimate the first serial number of each category in use. Receipt Books (Form 3) and Cash Memo Books (Form 3-A) come from the Central Forms Stores, Kolkata.
• 🔐6.7.2–6.7.3: on receipt, the Divisional Officer counts the forms and certifies the count on the fly-leaf; cheque books are kept under lock and key in the personal custody of the Divisional Officer authorised to sign.

With certain exceptions, a numerical (quantity) account of receipts, issues and balances is maintained for all stores — even those debited to final heads — and is reconciled periodically with the value accounts. The principle: initial records and sub-divisional returns take account of quantities only, while value accounts are kept in the divisional office.

A Priced Vocabulary of Stores (correct descriptions + identifying numbers, uniform across the Department) underpins accurate posting and valuation of indents. The quantity flow runs through dedicated forms:

Materials may be received from suppliers (India/abroad), other sub-divisions/divisions/departments, manufacture, or works — always under written authority. Issues are for use on works, despatch to others, or sale; a register in Form CPWA 35 watches issues to works to prevent excess.

• 📊Profit & loss on stock (7.2.34): at year-end the annual excess/short-fall (from rate revision etc.) is worked out proforma and credited to Revenue / receipt on capital account, or charged off as "Losses on Stock"; differences are not allocated over works but taken into account when fixing next year's issue rates.
• 🔎Stock-taking (7.2.35): a physical verification at least once a year, never entrusted to the custodian/ledger-keeper/accountant of the stores or someone not conversant with the stores, and never to low-paid subordinates.
• ✅Discrepancies (7.2.36): a surplus is credited at once as revenue/capital receipt; a deficit is kept under "Miscellaneous Works Advances" pending recovery — when write-off is ordered it is cleared by debit to the detailed head "Minor Works".

Numerical accounts are kept in each sub-division: Tools & Plant Received Sheet (Form 13), Tools & Plant Indent (Form 14), and the Tools & Plant Ledger (Form 15) kept in three parts — Part I (articles in hand), Part II (lent/sent out), Part III (shortage awaiting adjustment). Hire charges on articles lent are recovered; on sale/transfer not recovered within the month, the amount is charged to "Misc. P.W. Advances". The cost of special T&P cannot be written back in anticipation of future use; write-off needs a Survey Report (Form 18).

• 🚧Road Metal: measured and paid like other materials, but a quantity account (Form 16) is kept kilometre-by-kilometre in the sub-division; a Schedule of Rates (Form 17) shows the lowest supply rate, revised as quarries change.
• 🏔️Charges for quarries (7.4.5): charges up to Rs 1,000 are debited direct to "Maintenance & Repairs" or "Construction"; charges exceeding Rs 1,000 for a series of years go to the sub-head "Land, Kilns, etc." of the Stock Account, gradually relieved by debit to each year's collection estimate.
• 📦Materials charged to works (7.5): the accounting is in Chapter 10; special tools & plant charged to works do not fall under "materials charged to works".

• 📝8.1.6 — authority: every TE needs a Transfer Entry Order in Form CAM 34 (or an order on another document such as a Survey Report Form 18) setting out all particulars; on one side of every TE there should be only one major head, and the nature of the adjustment and grounds for correction must be clearly stated.
• ✍️8.1.7–8.1.9 — who: a TE Order may be initiated by the Sub-divisional Officer (and must be, for clauses (a),(b),(c),(e) within his cognizance); the Divisional Officer ensures no inadmissible TE is made and countersigns SDO-proposed orders in token of acceptance.
• 📋8.1.10–8.1.11 — books: TEs prepared in a month are entered in the Transfer Entry Number Book (Form CAM 35), and a Summary of Transfer Entries (Form CAM 36) reflects the monthly effect, cross-checked head by head.
• ⚠️8.1.12 — within a work: no transfer between sub-heads of a work is made except on a formal TE Order approved by the Divisional Officer; it is filed with the Works Abstract for the month and not entered in the Transfer Entry Book (the exception being the "Land Acquisition" suspense clearance, which is entered and submitted with the monthly account).

• 📄Form 48 (Statement of Licence Fees recoverable in cash or by deduction) is sent before the close of each month; it also covers hire of Government furniture and the value of furniture/property lost or damaged.
• 🏠General Pool accommodation (9.3.6): for quarters managed by the Directorate of Estates, individual-wise accounts are kept but no monetary settlement is made — recoveries are booked directly against the final head "0216-Housing".
• 🕒Revision (Note 6 under 9.5.5): licence fee for Government residential buildings is revised once in three years by the Directorate of Estates (S.R. 324, F.R. 45-A); a pensioner licensee is treated as a private individual and pays in cash.

In recording the cost of an individual work, no charge for general services (Establishment, Tools & Plant) is included — those are adjusted in the general accounts under their own heads.

• 📝Muster Roll (Form CPWA 21): all departmentally-engaged persons are day labourers paid on muster rolls (except regular establishment and work-charged establishment on regular rolls). Muster rolls are never prepared in duplicate; a Daily Labour Report (Form CPWA 30) is sent each day (not needed for 15 persons or fewer).
• 💰Payment & unpaid wages: after a roll is closed, payment is made/witnessed by the official of highest standing available; unpaid items go to a Register of Unpaid Wages (Form CPWA 21-A) and are later paid on a Hand Receipt (Form CPWA 28). Wages unpaid for three months are reported to the Divisional Officer for decision.
• ⚡Casual / urgent labour: in urgent cases (silt clearance, breaches) a Casual Labour Roll (Form CPWA 22) may be used (names need not be given) but only a gazetted officer may pay. Paying daily labour through a contractor is objectionable in principle.
• 🚶Labour from a distance (10.2.6): labourers/artificers brought from a distance may be allowed wages for the days occupied in the journey to and from the site (if they join with proper despatch), and at the Divisional Officer's discretion bona-fide travelling expenses as well.
• 🔎Personal inspection: the officer must satisfy himself that the work/supply billed for was actually done as claimed, and must personally inspect all works of any magnitude before submitting final-payment claims.

• ✅Running account (10.2.19): payments are ordinarily monthly and treated as payments on account subject to final-bill adjustment; on final payment the payee adds "in full and final settlement of all demands". A separate running account is kept for each contract — a yellow-paper form is used only for final payments.
• 🔗Traceability (10.2.18): every measured page is scored out by a diagonal red-ink line when billed, with a red-ink reference to the voucher of payment — all quantities must be clearly traceable from the MB to the payment document.
• 💸Secured advance (10.2.20): for a contractor on a finished-work contract, on the security of imperishable materials brought to site — an Indenture (Form CPWA 31) is signed and the detailed account kept in Form CPWA 26-A, recovered as the materials are used.

• 📋Recovery: the cost of materials issued to a contractor is ordinarily recovered from the first bill; the rate charged follows the contract or the three-rate formula for materials not provided for in the contract (with the SE's authority).
• ♻️Surplus & clearance: surplus serviceable materials may be transferred to stock/other works (priced at current market rate, loss borne by the original work); after completion, the suspense head "Materials" is cleared on theoretical calculations in Form CPWA 38, any plus/minus balance borne by the work.

There is ordinarily one Works Abstract per working estimate per month. The accounts of petty works costing not more than Rs 5,000 each go on a single Petty Works Requisition and Account (Form CPWA 32). The divisional record of each work's progressive cost is the Register of Works (Form CPWA 40), maintained in the Divisional Office. Percentage charges (establishment, T&P, audit, pension) are not shown in the Works Abstract though eventually included in the cost of works.

Payments are never made except on the certificates of the officers in charge. The accounts of additions and alterations are kept quite distinct from the rest of the work, and payment for them may be made before completion if their detailed measurements have been made and the contract so provides.

A Manufacture Account is debited directly with (1) the value of raw materials issued from stock or otherwise, (2) the cost of labour employed, and (3) other incidental charges of the operations.

Road metal digging is NOT treated as a manufacture account — the charges for land and quarries follow paragraph 7.4.5.

The head "Stock" is opened in divisions maintaining stock for general purposes (and where no stock is kept, only when manufacture operations are undertaken). It is debited with all acquisition and manufacture expenditure and credited with the value of materials issued, sold or transferred; the balance is the book value of materials in stock plus unadjusted manufacture charges. The money limit for the stock reserve applies only to materials acquired/manufactured for stock — excesses are permissible only from unadjusted manufacture on sanctioned works.

Items are cleared by actual recovery or by sanctioned transfer; an item that becomes irrecoverable is not transferred until ordered to be written off. Detailed accounts are in Form 67; for the deposit-work class, details are taken from the Schedule of Deposit Works (Form 65). (Note: no charge is debited here merely for absence of sanction or appropriation, except class (2).)

• 🏭13.5.1 — what passes through it: all direct outlay on jobs and other workshop operations passes through "Workshop Suspense", with a separate account per job/operation so general charges can be distributed before the recoverable cost is fixed.
• ♻️13.5.2 — removal: recorded expenditure leaves the suspense head only when (and to the extent) an adjustment is made against the deposit received or the service head concerned; transfers between jobs are made by plus and minus debit entries.
• ✅13.5.3 — completion: on completing a job, outstanding charges are debited to the head concerned as soon as possible; where this cannot be done (e.g. excess over deposit), the unadjusted amount is transferred to Miscellaneous Works Advances pending settlement.

Capital charges on buildings, plant, machinery and stock — and their maintenance and the general establishment — are accounted for as ordinary Public Works transactions under the major head concerned (2059/0059 for Civil Works; 4701/0701/2701 for irrigation). All other operating expenses are debitable to the jobs and pass through the suspense head "Workshop Suspense": charges exclusive to a job are debited at once, general charges are apportioned by a definite procedure.

The Chief Controller of Accounts reviews the annual accounts in consultation with the officer-in-charge, reporting on the financial working and the need to revise the percentages fixed under 14.2.5.

Security deposits are covered by a bond or agreement setting the conditions of holding, refund or appropriation, referenced in the Deposit Register or Register of Securities. The Code recognises a long list of interest-bearing forms — Government promissory notes & stock certificates (accepted at 5% below market price or face value, whichever is less), Post Office certificates, Pass Books, municipal/Port Trust debentures, bank deposit receipts, bank guarantee bonds, Kisan Vikas Patra, and more.

Before a lapsed/confiscated deposit is credited to Government, the original realisation is traced to prevent a double claim. A lapsed or confiscated deposit cannot be repaid without pre-check by the Pay and Accounts Officer, who confirms the item was received, was credited as lapsed/confiscated, and the claimant's identity and title are certified by the Divisional Officer.

Every Non-Government Work needs a duly sanctioned detailed estimate or requisition, just like a Government Work. Contributions to/from local bodies are classified under the head most closely connected with the object (GAR 1990, Rule 68); a contribution towards a work that will become Government property is credited as a revenue receipt, and works already constructed or land already purchased that are transferred free of charge to a local body need no readjustment of cost (except Irrigation/Navigation/Drainage commercial works).

The same procedure applies to Deposit Works for District Boards, Municipal, Cantonment and Port Trust bodies.

• 🏦Classification: expenditure incurred against a sanctioned loan is accounted under "Loans and Advances pertaining to the Functional Major Head concerned", shown in the Schedule of Debits to Miscellaneous Heads (Form 76) supported by a Schedule of Works Expenditure (Form 64).
• 💵Timing: all charges debitable to a loan are brought to account as they occur so the interest may be correctly calculated; percentage charges are likewise adjusted monthly in Form 64.

• 💳17.2.1 — cash settlements: inter-departmental transactions with the Cabinet Secretariat & Ministry of Defence are settled in cash (cheque/draft), routed through the suspense head "107-Cash Settlement Suspense Account" under "8658" pending clearance; DGS&D purchases use the "129-MPSSA" mechanism.
• ✅17.2.3 — responding to a claim: the responding division examines every transfer claim; it may not reject a claim merely because a voucher is wanting, nor partly accept and partly reject. It is rejected altogether only if it does not pertain to the division; otherwise it is accepted provisionally in full and any dispute settled separately.
• 📎17.2.4 — support: a transfer to another department must be supported by proper vouchers or an Accounts Officer's certificate that the vouchers were audited and passed.
• 💸17.2.6 — inter-divisional: work done for another Division is settled directly between the divisions by Advance Payment (since 1-4-1993), without the PAO's intervention; vouchers still go to the PAO with the monthly account (Form CPWA 64).

In a CPWD division the Administrative Branch prepares the bills (maintaining the Bills Register, Form GAR 9) and presents them to the Accounts Branch under the Divisional Accountant for check; the pay order, once signed by the Divisional Officer, authorises the cheque for the net amount payable.

• 🧾Acquittance: acknowledgements are taken on office copies of bills, or on a consolidated Acquittance Roll (Form GAR 24) for scattered establishments; these are stamped "paid" and preserved (not sent to the Accounts Officer).
• 💳Cash discipline: establishment cash is not mixed with the department's works cash; a cash book in Form GAR 3 is kept, and undisbursed pay goes in a Register in Form GAR 25 — amounts undisbursed for three months are refunded (in cash or by short drawal).
• 📋Bill Register: a Bill Register (Form GAR 9) is kept by every Head of Office authorised to draw by cheque, reviewed monthly by a Gazetted Officer.

• ⚡Preventing delays: pay of subordinates in out-of-the-way places may be remitted by money order at Government cost or bank draft; an urgent transfer advance may be made from imprest/works cash as a temporary advance pending recoupment.
• 📤Communicating sanction: all orders revising scales or creating/abolishing posts are at once communicated to the PAO; transfers of charge are reported through the Superintending Engineer, who judges whether prolonged hand-over time is reasonable (FR 107).

Petty payments are made from the regular cash or imprest balances — never out of the undisbursed balances held for establishment pay — and other payments are made by cheque.

• 🏦Establishment bills (Rule 66(2), CGA(R&P) 1983) are presented for encashment at the Zonal PAO where the Accounts Officer is located, or at the authorised division elsewhere.
• 📦"Machinery & Equipment"-class articles — scientific instruments, drawing materials, camp equipage, motor cars — that would be capital in an executive office are treated as contingent charges in a special office.
• 📝Tools & Plant: the Chapter 7 accounting procedure need not be observed for these articles in a special office, but registers of receipt, disposal and balances are still maintained.

The Divisional Accountant scrutinises all cash, stock and transfer transactions of the entire division before they are incorporated into the registers, schedules and the Monthly Account.

The remittances made into the accredited bank and the cheques drawn on it are reconciled through the Schedule of Reconciliation of Cheques & Remittances (Form CPWA 51), the bank's dealing branch preparing daily Payment and Receipt Scrolls that flow to the Pay and Accounts Officer for settlement.

Cash vouchers and transfer-entry orders are posted into Schedule Dockets (Form CPWA 61); the percentage recoveries get a single docket in Form CPWA 62. From these the divisional schedules are built up:

• ⏱️Permissible remittance period: local transactions T+3 working days, outstation T+5 working days (T = day money is available to the branch).
• 💵Delayed-period interest: charged at Bank rate + 2% on delayed remittances and double/excess reimbursement, credited to "0075-Miscellaneous General Services-800-Other Receipts".
• 🧾Agency / turnover commission (w.e.f. 01-07-2005): Rs 45 per transaction for receipts, 9 paise per Rs 100 of turnover for payments other than pension, and Rs 60 per transaction for pension — claimed quarterly by the bank's link cell, and not payable for wrong scrolling.
• 🏦The remittance heads: receipts go to the receipt head with contra "Remittances into Bank", and cheque payments to the functional head with contra "Public Works Cheques" — both under "102-Public Works Remittances" / "8782-Cash Remittances".
• 📊March residual: RBI accounts stay open till 15 April; the monthly statement of March residual transactions reaches the PAO by 30 April.

The PAO routes bank scrolls through "108-Public Sector Bank Suspense" under "8658-Suspense Accounts", which the Principal Accounts Office clears by contra entries under "8675-Deposits with Reserve Bank" on receipt of the RBI "Put Through" statements.

When divisions are amalgamated, split or closed, the Divisional Officer applies to the CCA for instructions, and special attention is given to transferring the unsettled accounts — work-in-progress & suspense of works, appropriations & sanctions, stock and other suspense accounts, remittance accounts, deposits & cash balances, unrealised licence fee/revenue, and interest-bearing securities — the suspense and deposit balances being moved to the successor division by cash settlement.

The destruction of account records is governed by rules made with the CCA's concurrence (specific concurrence where not covered), and full details of all records destroyed are kept permanently in Form 97.