Great!

I’ll begin providing a chapter-by-chapter detailed rewrite of the Kerala Public Works
Account Code (KPWA Code), 5th Edition (2013)—presented in a simplified, structured, and
learner-friendly format like a modern textbook. Each chapter will include:

● 📘 Chapter Title

● 🎯 Purpose

● 🔑 Key Concepts

● 📝 Rules Explained Simply

● 📌 Important Notes / Examples

✅ Let’s begin with Chapter 1: Extent of Application

📘 Chapter 1: Extent of Application

🎯 Purpose
To define where and to whom the rules of the KPWA Code apply, and its relationship with other
codes (like the Kerala Financial Code).

🔑 Key Concepts
● KPWA Code provides specific rules for the Public Works Department (PWD) related to
maintaining and compiling accounts.

● It is supplementary to the Kerala Financial Code, Volume 1, and applies to the PWD
unless something explicitly contradicts or overrides it.

● It applies to works executed under both State and Central Government in Kerala—
unless Central rules override.

📝 Rules Explained Simply

1. Applicability to PWD
The KPWA Code primarily applies to the Public Works Department and provides
detailed rules for accounting procedures specific to it.
 2. Relation with Kerala Financial Code (KFC)

○ KFC Vol. 1 contains general financial rules applicable to all departments.

○ KPWA Code adds specific rules for PWD.

○ If both codes discuss the same topic and there’s a contradiction, KPWA rules
take precedence for the PWD.

3. Application to Central Works Executed by the State

○ When the Kerala PWD undertakes works for the Central Government (like
Central Roads or Buildings), the KPWA Code will apply—except where the
Central Public Works Account Code (CPWA Code) has specific overriding
provisions.

📌 Example
Let’s say Kerala PWD is constructing a National Highway using Central Government funds:

● Accounting will follow KPWA Code.

● But if the CPWA Code has a specific rule (e.g., method of inter-state fund transfer), that
Central rule will apply.

📘 Chapter 2: Definitions
🎯 Purpose:
To define the technical terms and expressions used throughout the KPWA Code. These
standardized definitions ensure consistent understanding and application by all officers and
accountants in the Public Works Department (PWD).

📚 Glossary of Terms (Simplified)

⚠️Unless the context clearly implies something else, the following meanings apply.
🧾 A–E

Term Meaning

Accountant General Head of the state’s accounts and audit,

working under the Comptroller and Auditor
General (CAG) of India. Receives and audits
PWD accounts.

Administrative Approval Approval from the administrative department

(not PWD) to start a work. It's like a green
signal for PWD to execute the project.

Appropriation The amount allocated (in the budget) to a

specific purpose or officer. It sets the
spending limit.

Assets Expected or receivable income from a work

(e.g., sale of surplus materials or recoverable
advances).

Bank Refers to RBI or SBI or any authorized bank

handling government transactions.

Book Transfer An accounting adjustment made without cash

flow (e.g., inter-departmental transfers).

Charged Expenditure Expenses not subject to Legislative Assembly

vote. These are directly debited from the state
fund.

Commercial Department Departments which operate on commercial

principles (defined in Kerala Account Code
Vol. I).
Competent Authority Any officer/government body with delegated
powers to approve or sanction something.

Completion of Work Includes both full completion or abandonment

of a work.

🧾 F–L

Term Meaning

Contingencies (Works) Small, miscellaneous expenses related to a

work that don’t fit under a specific sub-head
(e.g., cleaning, tools).

Contract & Contractor A contract is a formal agreement (verbal or

written). The contractor is the person or firm
doing the work.

Department (PWD) Refers specifically to the Public Works

Department.

Deposit Works Works funded by non-government bodies

(like panchayats or public donations) but
executed by PWD.

Direct Charges Expenses directly linked to a project (e.g.,

cement purchase for a building).

Indirect Charges Overhead expenses not tied to any one

project (e.g., general office costs).
Direction Office/Officer Senior officer (like Chief or Superintending
Engineer) not involved in direct work
execution.

Direct Receipts Income received directly from a specific work

(e.g., toll from a specific bridge).

Indirect Receipts General income related to work but not

directly traceable to a specific one.

Division / Divisional Office The administrative unit headed by a

Divisional Officer. A division handles one or
more sub-divisions.

Divisional Officer The head of a division. Manages work,

budget, and staff. Equivalent to an Executive
Engineer.

Final Payment Last payment made to a contractor once work

is completed.

Grant A sum voted by the Legislative Assembly for

a particular service or work.

🧾 M–R

Term Meaning

Intermediate Payment Any payment to a contractor before final

payment (e.g., advance or running bill).
Issue Rate Rate (per unit) at which stock items are
issued from store. Includes handling and
storage.

Labour Manpower cost related to a work (excluding

material cost and carriage).

Liabilities Expenses yet to be paid but are due (e.g.,

unpaid contractor bills).

Major Estimate A work estimate costing over ₹50,000. For

Central Civil Works, it's above ₹1,00,000.

Market Rate Local purchase price of a material, including

carriage and incidental expenses.

Minor Estimate A work estimate not exceeding ₹50,000

(₹1,00,000 for Central Civil Works).

On Account Payment Partial payment for work done so far—based

on measurements but not final.

Operation Expense on manufacturing or repair activity

(used in workshop/manufacture accounting).

Out-turn Finished value of a manufactured item or

completed work.

Progress Physical progress of work done (e.g., 80% of

road paved).

Quantity Measurable output—like volume of concrete,

 number of items delivered, etc.

Rate Per unit price for items of work or materials.

Rate of Cost / Inclusive Rate Total expenditure divided by quantity.

“Inclusive Rate” includes material cost.

Re-appropriation Transfer of funds from one head to another

(e.g., from road maintenance to building
repairs).

Recoverable Payment An advance or overpayment that must be

refunded by the contractor.

Running Account A contractor’s account which shows multiple

part-payments over time, till work is
completed.

🧾 S–Z

Term Meaning

Sectional Officer A junior engineer in charge of specific works

under a sub-division.

Secured Advance Advance given to a contractor against

materials brought to site.

Special Officer Officers not heading a division but doing

special tasks (e.g., Architect).
Storage Charges Cost of keeping materials in store (includes
godown rent, watchmen, etc.).

Sub-divisional Officer Officer in charge of a sub-division under the

Divisional Officer.

Sub-head Cost categories under an estimate (e.g.,

Earthwork, Masonry, Plastering).

Sub-work Component part of a major work (e.g.,

Kitchen Block in a school building project).

Supervision Charges Overhead charges added to issue rate of

materials.

Suspense Account Temporary holding accounts for costs not yet

finalized or pending recovery.

Technical Sanction Approval by PWD authorities after verifying

the technical and cost details.

Unit of Appropriation Smallest budgeting head under which money

is sanctioned (e.g., "Repairs to Public
Buildings").

Voted Expenditure Expenses approved by the Legislative

Assembly.

Work / Works Any construction, repair, or maintenance task

or related service.

Works Expenditure / Outlay Total capital cost of construction or

 maintenance (excluding general expenses
like salaries or tools).

📌 Example
If a contractor brings steel rods worth ₹1,00,000 to a site, he can be given a Secured Advance
of 75% (₹75,000), which will be adjusted in future bills.

📘 Chapter 3: General Outline of the System of Accounts

🎯 Purpose:
This chapter explains the structure and classification of financial transactions in the Kerala
Public Works Department (PWD). It details how receipts and expenditures are categorized,
recorded, and reported, and outlines the role of the Divisional Officer in managing and
submitting accounts.

🔑 Section 3.1: Classification of Transactions

✅ What types of transactions happen in PWD?
All financial activities in PWD can be grouped into four main categories:

1. Expenditure Heads

○ Payments made for construction, maintenance, salaries, etc.

○ Recorded against sanctioned grants.

2. Revenue Heads

○ Income earned from sources like rent, water charges, tolls, etc.

○ Credited to the government’s account.

3. Remittance Heads
 ○ Cash/stores transferred between departments/divisions.

○ These are temporary entries, adjusted later.

4. Debt and Deposit Heads

○ Security deposits, earnest money, and suspense entries.

○ Held temporarily and cleared on settlement (e.g., refund or adjustment).

💡 Example:
● If a contractor submits a ₹10,000 security deposit, it is recorded under Deposit Heads.

● When refunded, it’s removed from the account.

🧾 How are these transactions classified?

Each transaction has a hierarchical classification:

Level Example

Major Head 2059 – Public Works

Minor Head 80 – General

Detailed Head Repairs to Government Buildings

Sub-Head (internal use) “Painting work” or “Roof replacement”

This classification helps in budgeting, tracking, and auditing each rupee spent.

🗂 Special Notes:
 ● Service Head: Internal departmental classification under a detailed head (not used for
official accounts).

● Departmental Head: Even more detailed internal breakdown.

📌 However, in accounts, everything from "Detailed Head" down is just called “detailed head.”

🏛 Works for Other Entities

PWD may take up works for:

● Other departments (Health, Education)

● Central Government (like National Highways)

● Non-Government Bodies (Panchayats, NGOs)

How are such works accounted?

● If cost is borne by State Government: Adjusted in State’s accounts.

● If it's a Central Government work: Adjusted by book transfer to Central Accounts.

● If funded by others: Adjusted against cash deposits received (Deposit Work).

📘 Key Guidelines:
1. All works, regardless of funding source, must follow KPWA accounting procedures.

2. Accounts must be maintained even if final settlement happens elsewhere.

3. Inter-divisional transactions (e.g., store supply from Division A to B) are settled

between divisions.

4. Workshops may manufacture or repair items for:

○ Other divisions

○ Local bodies

○ Private parties

○ In all cases, full cost must be recovered

🚧 Suspense Heads – Temporary Accounts
Sometimes it's unclear where a transaction belongs:

● If it’s a receipt → Temporarily record under Deposits

● If it’s a payment → Temporarily record under Miscellaneous P.W. Advances

This avoids delaying accounting while awaiting clarity.

🔑 Section 3.2: System of Accounts

🧾 Main Features of PWD Accounting

Who What They Do

Divisional Officer Primary disbursing officer. Withdraws funds,

makes payments, collects revenue.

Divisional Accountant Compiles and checks all accounts.

Accountant General (AG) Audits and incorporates accounts into the

State's master accounts.

📋 Step-by-Step Account Process

1. Funds Withdrawal: Divisional Officer draws funds from treasury/bank.

2. Receipts: Collected money (like rent) is deposited in the treasury.

3. Disbursements: Paid to contractors, staff, suppliers.

4. Compilation: All transactions recorded monthly.

 5. Submission: Divisional Accountant submits compiled accounts to the AG.

6. Audit & Integration: AG audits and incorporates into the state accounts.

📌 Important Points
● PWD must maintain project-wise accounts.

● Capital projects (like Irrigation) may have separate capital accounts.

● Some services (e.g., workshops) may require pro forma accounts.

● Personal pay & allowances of staff are handled by treasury, not directly by PWD.

⚖️Principles of Accuracy & Transparency

● Records should not just be accurate but auditable and legally sound.

● All transactions (cash, stores, assets, etc.) must be clearly documented.

● If the final head of account is unknown, record under suspense temporarily.

🧠 Key Takeaways:
● Every rupee spent or received by the PWD must be properly classified, recorded, and
reported.

● Even temporary or unclear transactions must be accounted for using suspense/deposit

heads.

● The system ensures transparency, auditability, and legal compliance.

📘 Chapter 4: Relations with the Accountant General

🎯 Purpose:
To define the working relationship between the Divisional Officer (PWD) and the Accountant
General (AG). It lays down rules for compiling, submitting, and auditing accounts and describes
the role and responsibilities of the Divisional Accountant.

🔑 Section 4.1: General Responsibilities

Role of the Divisional Officer
● He is the primary disbursing officer of the division.

● He is fully responsible for:

○ Accuracy of accounts

○ Financial regularity of all division transactions

○ Timely submission of monthly accounts to the AG

🗂 Submission of Records
● Must submit account returns (e.g., vouchers, bills, schedules) to the AG for audit and
compilation.

● AG can also ask for additional supporting documents.

🚨 If Issues Arise:
● If the division's accounts fall into confusion or arrears:

○ The Divisional Officer must report it immediately.

○ He may request help from the Accountant General, explaining why regular staff
cannot resolve it.

🔑 Section 4.2: Divisional Accountant – The Financial

Backbone
👤 Who is the Divisional Accountant (DA)?
A specially trained officer posted to each division to:

1. Compile accounts,

2. Internally check vouchers, and

3. Advise the Divisional Officer on financial matters.

📌 Only trained and approved candidates (as per Appendix 2) can be appointed as Divisional
Accountants.

🧭 The Three Roles of the DA

Role Responsibilities

1. Accountant Maintain and compile all accounts from bills,

vouchers, and data.

2. Internal Checker Verify correctness, legality, and compliance of

all financial transactions.

3. Financial Assistant Advise Divisional Officer on budgets,

estimates, spending limits, and audit
requirements.

📝 Duties of the Divisional Accountant

● Know all sanctions/orders relevant to accounts.

● Track grants, liabilities, and expenditure to avoid overruns.

● Review all tenders:

○ Ensure correctness of calculations.

○ Check comparison statements.

● Maintain Register of Divisional Accountant’s Objections:

 ○ If the DA disagrees with the Divisional Officer’s decision, they must record the
objection here.

○ These are reviewed annually by the Finance Department.

📊 Supervision Duties
The DA must:

● Check that sub-divisional accounts are accurate.

● Conduct annual inspections of sub-divisional offices along with the Divisional Officer.

● Explain errors to staff and guide them in correcting mistakes.

● Review:

○ Revenue registers

○ Interest-bearing securities register (KPW Form 81)

○ Verify if securities mentioned are physically present or properly acknowledged

🗃 Forms & Records

Form Purpose

KPW Form 57 Register of Accountant’s Objections

KPW Form 81 Register of interest-bearing securities

KPW Form 82 Annual summary of securities

🔒 Important Notes
 ● The DA should never be overruled casually.

● Any case where their advice is ignored must be documented.

● The DA is like an internal audit officer within the division.

🔍 Section 4.3: Inspections by the Accountant General

● The AG conducts periodic test audits and local inspections.

● The Divisional Officer must ensure that:

○ All books, records, vouchers, and ledgers are made available.

○ He (or a responsible officer) is present during inspection to clarify doubts.

● Audit findings are discussed on the spot when possible.

📑 Section 4.4: Communication of Sanctions to AG

✅ What must be sent to the AG?

Sanction Type To be Sent? Details

Administrative Approval ❌ Not required

Technical Sanction ✅ Yes Only for project works > ₹25

lakhs and non-project works
> ₹5 lakhs

Financial Sanction ✅ Yes Must be sent without delay

Tender Acceptance ✅ Yes If accepted by higher

authority (not Divisional
Officer), a copy must be sent
 to AG

⚠️No duplication of agreements is allowed. If an agreement is executed by

higher authority, it need not be redone by the Divisional Officer.

🧾 Section 4.5: Results of Audit

📬 Forms of Audit Communication
The AG communicates audit findings in one of the following ways:

● Audit Notes

● Objection Statements

● Inspection Reports

● Letters or Memos

🕐 Response Timelines

Document Must be replied within

Audit Note 15 days

Objection Statement 1 month

Inspection Report Through Superintending Engineer (SE)

Divisional Officer should provide detailed, accurate replies — not just forward subordinate
explanations.

🧠 Key Takeaways:
 ● The Divisional Officer is the chief custodian of accounts; the Divisional Accountant is
his internal watchdog and guide.

● Timely communication and cooperation with the Accountant General ensures

smooth audits and financial credibility.

● Sanctions and objections must be properly documented and communicated.

● Both the Divisional Officer and Divisional Accountant have a shared responsibility to
maintain the integrity of PWD accounts.

📘 Chapter 5: Appropriations and Control of Expenditure

🎯 Purpose:
To explain how budget allocations are made and controlled in the Public Works Department
(PWD), how funds are distributed, and how actual expenditures are tracked against grants to
ensure financial discipline.

🔑 Section 5.1: Introduction

🧾 What is a Grant?
● A grant is the amount sanctioned by the Legislature for a specific purpose (e.g., road
repair, building construction).

● Expenditure can only be incurred within the limits of the grant.

🚫 No Overspending
● Every PWD officer must ensure that expenses stay within the sanctioned grant.

● Spending without sufficient appropriation is a serious irregularity and can attract

disciplinary action.

🔑 Section 5.2: Grants and Their Distribution

💰 How are funds distributed?
1. Legislature sanctions total grants for the financial year.

2. The Finance Department allocates portions of this grant to various administrative

departments.

3. The PWD Head Office (Chief Engineer or Secretary) then:

○ Divides these grants between Divisions.

○ Issues Appropriation Orders to Divisional Officers.

🧷 Types of Appropriations
● Original Appropriation: Initial sanctioned amount.

● Supplementary Appropriation: Extra funds sanctioned during the year (if original is
insufficient).

● Reappropriation: Transferring funds from one sub-head to another within the same
grant.

📌 Example:
If ₹10 lakhs is sanctioned for “Building Maintenance” and ₹5 lakhs is underused, ₹2 lakhs can
be reappropriated to “Road Repairs” under the same division (with permission).

📝 What Must Be Done After Receiving Funds?

● Divisional Officers must record the grant amount under each head of account in their
office.

● They must also watch expenditure closely to avoid exceeding limits.

🔎 Section 5.3: Watching of Actuals (Tracking Real

Expenditure)
📊 What are Actuals?
● “Actuals” refer to real expenditure incurred and recorded in the accounts.
 ● These figures must be compared regularly with the sanctioned grants.

✅ Purpose of Watching Actuals:

● To ensure expenditure doesn’t exceed the grant.

● To monitor unspent balances for reallocation if needed.

● To enable timely requests for additional funds (supplementary grants).

📋 How is this done?

Divisional Officers must:

1. Maintain Appropriation Registers:

○ These record the sanctioned amount, actual expenditure, and balance available.

○ Updated month-wise or bill-wise.

2. Review Expenditure:

○ Regularly compare booked expenses with appropriations.

○ Especially towards the end of financial year, be cautious to avoid overspending.

3. Report Excess Requirements:

○ If more funds are needed, report early to the higher authority for supplementary
provision.

❗ Important Rules & Cautions

Rule Explanation

🔒 No Expenditure Without Grant Spending before allotment of funds is not

allowed.
🔁 Reappropriations Need Sanction You cannot shift funds from one head to
another without formal approval.

📉 Underutilization is Wasteful If you consistently underspend, your future

grants may be reduced.

🧾 Expenditure Must Be Booked Promptly Late booking may distort the real financial
picture.

⚠️Common Mistakes to Avoid

● Assuming administrative approval = financial sanction.

● Failing to track liabilities already incurred.

● Allowing sub-divisional officers to exceed their budget limits.

🧠 Key Takeaways:
● Appropriation = Permission to Spend under a specific head.

● Divisional Officers must track actual spending vs. allocation.

● No work should start unless funds are sanctioned and appropriated.

● Grant control is essential for budget discipline, financial planning, and audit
compliance.

📘 Chapter 6: Cash

🎯 Purpose:
This chapter explains how Public Works Department (PWD) officers handle government money
—from drawing funds from the treasury, receiving and making payments, to maintaining
accurate cash accounts and records.

🔑 Section 6.1: Introduction

Government money handled by the PWD must be:

● Drawn properly from the Treasury or Bank.

● Disbursed for authorized purposes only.

● Accounted for with accuracy and transparency.

💰 Section 6.2: Modes of Obtaining Cash from Treasuries

🔹 6.2.1 – General Procedure

● Divisional Officers (DOs) can draw funds by presenting cheques at treasuries.

● These cheques are based on actual needs—not in bulk or advance for convenience.

📌 Important: The treasury acts as a banker, not a cashier. DOs must estimate daily needs and
draw only that much.

🔹 6.2.9 – Limits on Drawing Powers

● Divisional Officers and Sub-divisional Officers have specific monetary limits up to
which they can draw cash.

● These limits are fixed by the government and vary based on the officer's role and
location.

🔹 6.2.10 to 6.2.20 – Cheques

 ● Cheques must:

○ Be written in ink or ballpoint pen.

○ Be signed by the authorized officer.

○ Not be used after 3 months from the date of issue.

● Cancelled cheques must be marked and preserved for audit.

● Counterfoils or cheque book stubs must be maintained.

💵 Section 6.3: Receipt of Money

🔹 6.3.1 – Accounting for Receipts

● All money received (rent, sale of materials, penalties, etc.) must be:

○ Immediately recorded.

○ Deposited in the treasury on the same day or next working day.

🔹 6.3.7 – Disposal of Receipts

● Receipts must be credited under correct heads of account (like revenue, deposit, etc.).

● Duplicate copies of receipts must be issued when receiving money.

💸 Section 6.4: Payments

🔹 6.4.1 to 6.4.5 – Manner of Payment

● Payments should be:

○ Made only against proper vouchers.

○ Authorized by competent sanction.

 ○ Clearly traceable in the Cash Book.

🔹 6.4.6 – Injunctions/Prohibitory Orders

● If a court prohibits a payment:

○ The amount must be withheld.

○ Compliance with legal orders is mandatory.

🔹 6.4.7 – Bills
● All payments must be supported by bills, prepared in prescribed formats.

● Bills should be thoroughly examined before approval.

🔹 6.4.8 to 6.4.19 – Vouchers

● A voucher is written proof of payment.

● It must:

○ Clearly show payee name, amount, nature of payment.

○ Be signed by the recipient.

○ Be serially numbered and filed properly.

🏦 Section 6.5: Remittances to Treasuries

● Unspent balances or receipts must be remitted back to the treasury.

● The Divisional Cash Book must reflect such remittances immediately.

📚 Section 6.6: Cash Accounts

🔸 6.6.1 to 6.6.2 – Upkeep of Cash Book
● Cash Book is the most important record.

● Every entry (receipt or payment) must:

○ Be entered on the same day.

○ Be supported by vouchers/receipts.

○ Include running balances.

🔸 6.6.3 – Balancing
● The Cash Book must be balanced daily.

● Total receipts minus total payments = Cash in hand.

🔸 6.6.4 – Rectification of Errors

● Errors must be:

○ Neatly corrected.

○ Not scratched out.

○ Duly initialed with remarks.

🔸 6.6.5 to 6.6.8 – Verification

● Daily cash balance must be physically verified by the Divisional Officer.

● Verification certificate should be recorded in the Cash Book.

🔸 6.6.9 to 6.6.13 – Imprest Account

● Small fixed amount advanced to a subordinate officer for minor expenses.

● Must be accounted for monthly.

● Can be recouped after submitting vouchers.

🔸 6.6.14 – Temporary Advance Account
● Given for specific tasks (e.g., field inspection expenses).

● Must be settled quickly after task is completed.

📖 Section 6.7: Cheque Books and Receipt Books

● Cheques and Receipt Books must be:

○ Serially numbered.

○ Kept under lock and key.

○ Issued and used in order.

● Record of usage must be kept for audit purposes.

🔐 Summary of Key Cash Management Rules

🔑 Area ✅ Good Practice

Cash Drawals Only draw what is needed, not in advance.

Receipts Issue receipt, record in cash book, and

deposit promptly.

Payments Made only against valid bills and vouchers.

Cash Book Maintain daily, balanced and verified.

Imprest/Advances Use only for intended purposes and settle

 promptly.

Security Keep cheque books and cash under lock with

proper logs.

🧠 Key Takeaways:
● Cash is public money. Handle with strict accountability.

● Every rupee received or paid must be traceable, documented, and recorded.

● The Cash Book is the legal record—its maintenance is non-negotiable.

● Regular verification and audits ensure no mismanagement or fraud.

📘 Chapter 7: Stores

🎯 Purpose:
This chapter explains how the Public Works Department (PWD) should receive, issue, value,
and account for all types of stores—which include materials, tools, and stock used for
construction and maintenance.

🧾 What Are “Stores”?

“Stores” in the PWD refer to materials purchased or manufactured for use in public works.
They include:

● Cement, bricks, steel

● Road metal (gravel, sand)

● Tools and Plant (T&P)

 ● Spare parts and other consumables

Classification of Stores
PWD divides stores into four main categories:

Type Description

1. Stock Materials bought in bulk and kept in store for

general issue.

2. Tools and Plant (T&P) Items like wheelbarrows, mixers, drills used
for work but not consumed.

3. Road Metal Loose materials for road works (like stones,

sand, gravel).

4. Materials Charged Direct to Works Materials bought specifically for one work (not
stored or re-used elsewhere).

📦 Section 7.1: Stock

🔹 What is “Stock”?
● Bulk materials bought and stored for regular issue.

● They are valued and tracked continuously.

📋 Stock Accounts Must Include:

● Opening balance
 ● Receipts during the period

● Issues (to works or other divisions)

● Closing balance

● Rate per unit

● Total value

🧾 Accounting Forms

Form Purpose

KPW Form 10 Stock Ledger

KPW Form 12 Register of Stock Receipts

KPW Form 13 Register of Stock Issues

KPW Form 14 Monthly Stock Account

🧰 Purchase of Stock
● Only authorized officers can purchase stock.

● Purchases must follow government rules (tenders, quotations, rate contracts).

📦 Receipt of Stock
● All receipts must be inspected, measured, and recorded immediately.

● Entries are made in Stock Receipt Register and Stock Ledger.

📤 Issue of Stock
● Issued through indents (formal requests).

● Entry must be made at issue rate (includes handling/storage charges).

● Must specify the work or purpose it is issued for.

🛠 Section 7.2: Tools and Plant (T&P)

🧾 What Are T&P Items?

Reusable items essential for execution of works. Not consumed during use.

Examples:

● Ladders, concrete mixers, spades, testing equipment.

📋 Records to Maintain

Form Purpose

KPW Form 15 Tools and Plant Ledger

KPW Form 16 T&P Register of Receipts and Issues

🧾 Guidelines
● T&P items are not valued as stock, but listed for control.

● Each item must be:

○ Numbered

○ Recorded with location and custodian

○ Verified annually
🔄 Issue & Transfer
● Transferred between divisions or sub-divisions via proper entries.

● Returns must be recorded.

Section 7.3: Road Metal

🪨 What is Road Metal?

Loose construction material:

● Stone aggregate, sand, gravel, earth, laterite, etc.

Used mainly for:

● Road works

● Filling, leveling, and foundations

📏 Measurement & Rate

● Valued by Schedule of Rates (SoR) fixed by PWD.

● Must be:

○ Measured by volume or weight.

○ Compared against sanctioned rates.

🗂 Records to Maintain

Form Purpose

KPW Form 17 Road Metal Account

KPW Form 18 Road Metal Measurement Register

🧱 Section 7.4: Materials Charged Direct to Works

🎯 What does it mean?

● Materials purchased exclusively for a specific work.

● Not taken into general store accounts.

Example: 100 bags of cement purchased directly for a specific bridge work.

🧾 Rules
● Cost is debited directly to the work.

● Must be measured, verified, and recorded in the Measurement Book (MB).

● Leftover materials:

○ May be returned to stock or

○ Transferred to another work with proper entries.

🔐 Section 7.5: Custody and Verification of Stores

🧍 Officer Responsible
● The officer who receives the store is responsible for:

○ Safe custody

○ Proper storage

○ Preventing loss or deterioration

📆 Periodic Verification
● Annual physical verification is mandatory.

● Surprise checks by superior officers are encouraged.

❌ Loss or Theft
● Any loss, damage, or misappropriation must be:

○ Reported immediately

○ Investigated

○ Recorded and adjusted

📜 Summary of Duties for Store Management

Responsibility Officer

Maintain stock records Sub-divisional/Divisional Officer

Approve purchases Divisional Officer / Higher authority

Verify and value stores Store Keeper / Sub-Divisional Officer

Submit monthly accounts Divisional Accountant

🧠 Key Takeaways:
● Stores are valuable public resources. They must be recorded, issued, and monitored
precisely.
 ● Separate accounting rules exist for:

○ Stock

○ T&P

○ Road metal

○ Materials charged directly to works

● Each item issued must be linked to a specific work or purpose.

● Accurate records prevent loss, misuse, or audit objections.

📘 Chapter 8: Transfer Entries

🎯 Purpose:
To explain how transfer entries are used to correct or shift amounts in accounts without actual
cash movement.

🔄 What is a Transfer Entry?

A transfer entry is a book adjustment:

● It shifts an amount from one head of account to another.

● No actual cash is received or paid.

● Used to correct classification mistakes or internal adjustments.

🧾 Common Uses of Transfer Entries:

Scenario Explanation
1. Correction of Errors Wrongly classified expenditure is corrected by
transferring to the correct head.

2. Apportioning Costs Common charges (e.g., shared stores or

transport) are divided among multiple works.

3. Recovering Charges Recover cost of stores, T&P, or services

rendered to another division or department.

4. Inter-Division Transactions When materials or services are supplied

between divisions.

🔐 Precautions in Transfer Entries

● Every transfer must have clear justification.

● Supporting documents must be attached.

● Should not be used to evade cash procedures.

● Must be authorized by the Divisional Officer.

📋 Records to Maintain

Record Purpose

Transfer Entry Order (TEO) Shows the head from which amount is
debited and the head to which it is credited.

Journal Book in which the TEOs are recorded.

🧠 Key Takeaways – Chapter 8
● Transfer entries keep accounts accurate and balanced.

● They ensure no double counting or misclassification occurs.

● Must be properly documented, approved, and entered in monthly accounts.

📘 Chapter 9: Adjustments

🎯 Purpose:
To outline the types of adjustments made in PWD accounting for recovery, reclassification,
and correction of financial records.

🔁 What Are Adjustments?

Adjustments are similar to transfer entries, but often involve:

● Recovery of advances

● Restoration of misbooked amounts

● Correction of balances

● Cancellation of unspent advances

🔍 Examples of Adjustments

Type Example

1. Material Recovery If contractor is overissued materials, excess

is recovered via adjustment.
2. Advance Clearance Temporary advance for fieldwork is adjusted
once final bills are received.

3. Incorrect Booking Work mistakenly charged to one estimate is

moved to the correct one.

4. Cancellation of Liabilities Work cancelled → unspent funds are

reversed from accounts.

📂 Adjustment Heads
Adjustments often involve “Suspense” or “Deposit” heads such as:

● Miscellaneous Public Works Advances (MPWA)

● Deposit Works

● Contractor's Advances

🧾 Guidelines for Adjustments

● All adjustments must be:

○ Approved by the competent authority.

○ Supported by vouchers or documentation.

○ Recorded in the journal and cash book if needed.

○ Notified in the monthly account to Accountant General.

⚖️Adjustments vs Transfer Entries

Feature Transfer Entry Adjustment

 Movement of Cash ❌ No ❌ Usually No

Purpose Correction between heads Recovery, clearance, or

cancellation

Documents TEO, journal Vouchers, journal, recovery

bills

Examples Shifting expense from Recovering secured advance

“Building” to “Road”

🧠 Key Takeaways – Chapter 9

● Adjustments correct or settle temporary or mistaken transactions.

● Must be done promptly, legitimately, and transparently.

● They help close balances, recover advances, and ensure accurate project accounting.

📘 Chapter 10: Works Accounts

🎯 Purpose:
To explain how public works—like buildings, roads, bridges, etc.—are accounted for from start
to finish: from taking measurements and preparing bills to making payments and maintaining
records.
🔨 What is a “Work”?
A work is any construction, repair, or maintenance task undertaken by the PWD. Each work
has:

● An estimate (cost plan)

● A sanction (approval)

● Execution (by department or contractor)

● Accounting (recording the expenditure and progress)

🔢 Section 10.1: Classification of Works

Works are divided into:

Type Description

Original Works New construction projects (e.g., new roads,

bridges, buildings)

Repairs & Maintenance Ongoing or one-time repairs to existing

infrastructure

Deposit Works Funded by outside agencies but executed by

PWD

Petty Works Very small works, often executed

departmentally

📏 Section 10.2: Measurement Book (MB)

📘 What is the MB?
The Measurement Book (KPW Form 23) is the most important record in works accounting.

It records:

● Measurements of work done (length, area, volume)

● Names of workers or contractors

● Dates of measurement

● Signatures of the person recording and verifying

📌 No payment can be made without MB entries.

✅ Rules for MB Use:

● Each officer must maintain separate MBs for different works.

● Entries must be:

○ In ink

○ Neat and dated

○ Not erased or overwritten

● Officer must sign and certify the measurements.

💵 Section 10.3: Types of Payments

🔹 1. First and Final Payment

For small works, full payment is made after completion.

🔹 2. Running/On Account Payment

For larger works, part payments are made as work progresses (based on measurements).

🔹 3. Final Payment
Paid after the entire work is completed, including all recoveries or adjustments.

🔹 4. Advance Payment
Rarely allowed—only in special circumstances and under conditions.

🧾 Section 10.4: Bills and Vouchers

📋 Bill Types

Bill Type Form Use

First & Final KPW Form 24 Small, one-time jobs

Running Account KPW Form 27 Part-payment for ongoing

work

Final Bill KPW Form 26 Final settlement

Hand Receipt KPW Form 28 For small payments (≤

₹5,000)

Abstract MB Bill KPW Form 25 Based on MB entries, without

detailed calculations

✅ Voucher Rules
● Must clearly show:

○ Name of work

○ Reference to MB page
 ○ Quantity and rate

○ Signature of payee

● Payments without vouchers are not allowed.

● Vouchers must be numbered, filed, and attached to monthly accounts.

🧱 Section 10.5: Materials Issued to Contractors

🎯 When Materials Are Issued:

Sometimes the PWD issues materials (cement, steel, etc.) to the contractor:

● Either free of cost, or

● At fixed issue rate

✅ Rules:
● Material must be mentioned in the agreement.

● Must be measured at issue and return stages.

● The value of materials is deducted from contractor’s bill, if chargeable.

📌 Improper issue of materials can cause audit objections and financial loss.

📊 Section 10.6: Work Abstracts and Register of Works

📈 Work Abstract
● A summary sheet showing daily or progressive quantities of work done.

● Used to prepare bills.

📚 Register of Works (KPW Form 40)
● Records:

○ Sanctioned amount

○ Total bills paid

○ Work progress

○ Balance available

● Helps monitor financial and physical status of every work.

📁 Section 10.7: Completion and Closing of Works

📦 When a work is complete:

● Final payment must be made.

● Leftover materials must be:

○ Returned to store, or

○ Transferred to another work

● Completion certificate is issued.

● All accounts are closed and archived.

🧠 Key Takeaways – Chapter 10

Topic Key Rule

📘 Measurement Book All payments must be based on MB entries

📄 Bills & Vouchers Must be clear, signed, and verifiable

🧾 Contractor Payments Only against valid MB-based bills

🛠 Materials Issued only if mentioned in contract and

accounted for

📚 Registers Work Abstract & Register of Works must be

maintained for every project

✅ Finalization Close accounts promptly after completion

📎 Summary
Chapter 10 is the heart of PWD accounting. It connects technical execution (measurements)
with financial documentation (bills and payments). It ensures that:

● Work done is accurately recorded.

● Contractors are fairly paid.

● Materials are accounted for.

● Public money is used transparently.

📘 Chapter 11: Lump Sum Contracts

🎯 Purpose:
To explain how lump sum contracts work in the PWD—covering how they are agreed upon,
measured, monitored, and paid for—since they follow a different system from regular item-rate
contracts.
💡 What is a Lump Sum Contract?
In a lump sum contract, the contractor agrees to complete the entire work (or a portion) for a
fixed total price, regardless of the actual quantities of materials or labor used.

📝 No per-item rates are quoted—only a total value for the entire job is agreed upon.

🔑 When to Use Lump Sum Contracts?

● For complex or composite works (like turnkey projects)

● When the scope of work is clearly defined

● If it is difficult to measure every individual component separately

Examples:

● Designing and building a bridge as a package

● Construction of an entire building with finishing

📄 Key Terms in Lump Sum Contracts

Term Meaning

Lump Sum Tender Offer by contractor to complete work for a

fixed total price

Schedule of Probable Items A list of expected tasks/components (not

individually paid, but for reference)

Design Responsibility Sometimes rests with the contractor under

such contracts
📋 Section 11.1: Procedure for Lump Sum Contracts

Sanctioning
● The Technical Sanctioning Authority must justify why a lump sum approach is
appropriate.

● The estimate is still prepared using departmental rates to:

○ Check cost reasonableness

○ Form the basis of comparison

📃 Tender Process
● Invite tenders with a detailed description of the total work.

● Include:

○ Specifications

○ Probable schedule of items (informative only)

○ Time frame

○ Payment stages

💵 Section 11.2: Execution and Payment

📐 Measurement
● Although the contract is lump sum, some measurement is still required to:

○ Monitor progress

○ Certify completion of parts

○ Handle changes in scope or quantity

📌 MB (Measurement Book) is maintained for reference and audit.

💰 Payment Process

Stage Payment

During Execution Running Account Bills (against certified

progress)

After Completion Final Bill based on total agreed lump sum

Advance (if any) Given only with specific sanction and properly
recovered

●
Use KPW Form 27 or 26 for such bills, with special remarks noting it’s a lump sum
contract.

📎 Section 11.3: Departures and Deviations

What if Scope Changes?

● If significant extra work arises outside the original scope:

○ Prepare separate estimate

○ Get fresh sanction

○ Execute as supplementary agreement or new item-rate agreement

Variations in Quantity
 ● Do not adjust the lump sum amount based on minor variations in item-wise quantities.

● Payment is still governed by the total contract value unless changes are substantial.

🔒 Section 11.4: Control and Safeguards

👮 Officer’s Duties
● Monitor execution through site inspections and MB checks

● Keep a watch on:

○ Time schedules

○ Quality of work

○ Material consumption

● Document everything to protect against audit objections

📋 Maintain Records

Record Purpose

Measurement Book Track actual work done

Work Abstract Verify physical progress

Bill Register Record of all payments made

Agreement File Original contract + correspondence

🧠 Key Takeaways – Chapter 11

Area Rule

✅ When to Use For full-scope or design-build projects

💰 Payment Made against progress, but fixed total cost

📏 Measurements Still recorded for monitoring and audit

🔀 Variations Substantial changes need fresh sanction

📒 Records MB, Bills, and Agreement must be maintained

🚧 Key Caution
Even though the contract is for a lump sum, PWD officers are still accountable for:

● Ensuring work is done as per scope and specifications

● Avoiding overpayments

● Keeping records transparent and auditable

📘 Chapter 12: Muster Rolls

🎯 Purpose:
To explain how the Public Works Department (PWD) engages and pays daily wage laborers
for departmental works by using a document called the Muster Roll—the official attendance
and wage record.
👷 What is a Muster Roll?
A Muster Roll (KPW Form 21) is a register used to:

● Record daily attendance of laborers.

● Track the wages earned.

● Serve as a basis for wage payment.

● Maintain a legal record of government labor engagement.

📌 Without a valid muster roll, no labor payment can be made.

📋 Section 12.1: Use of Muster Rolls

✅ When to Use?
● For departmental execution of work (not through contractors).

● Especially for petty works, emergency tasks, or maintenance jobs.

● Used when PWD directly employs laborers.

🧾 Form Used
● KPW Form 21

● Contains:

○ Name of work

○ Name and designation of laborers

○ Daily entries of attendance

○ Daily wage rate

 ○ Total wages due

🛠 Section 12.2: Preparation and Certification

📍 Who Prepares It?

● The Section Officer (Assistant Engineer or Overseer) prepares the muster roll.

How to Fill It?

● Each day, the number of laborers and hours worked are recorded.

● No blank spaces—if no one works on a day, write “NIL”.

● No overwriting or use of correction fluid.

● If a mistake is made, strike through neatly and initial it.

🔏 Certification Required
At the end of the wage period:

● The officer certifies that:

○ The entries are correct.

○ The work was actually done.

○ The laborers were genuinely engaged.

💰 Section 12.3: Payment of Wages

🔹 When?
 ● Wages are paid immediately after the wage period ends—usually every 7 or 15 days.

🔹 Where?
● Preferably on-site, in the presence of witnesses.

🧾 Process:
1. Calculate the total wages based on attendance and daily rate.

2. Prepare a bill using the muster roll.

3. Get approval from the Divisional Officer.

4. Pay the laborers.

5. Each laborer signs or gives thumb impression as receipt.

📌 The officer paying wages must certify that he has personally made the payments.

📑 Section 12.4: Important Rules and Safeguards

Rule Description

📝 Record Every Day Attendance must be recorded on the same

day, not in bulk.

🙅 No Proxy One person cannot sign or collect wages for

another.

🧍 Witness Required Payments should be made in front of a

witness, usually a senior worker or second
officer.
🔐 Safe Custody Used and unused muster rolls must be kept
securely.

🧾 Payment Register Entries should also reflect in the Cash Book

and Register of Works.

⚠️Misuse and Risks

● Fictitious names or false entries in muster rolls are considered serious misconduct and
fraud.

● Surprise inspections may be carried out to verify authenticity.

● Any suspicion must be reported and investigated immediately.

📦 Section 12.5: Closure and Submission

● After wages are paid and certified, the muster roll is:

○ Closed and signed by the responsible officer.

○ Forwarded to the Divisional Office for recording in accounts.

○ Attached to monthly expenditure records for audit.

🧠 Key Takeaways – Chapter 12

Area Rule

📘 Form Used KPW Form 21

 🛠 Use For direct labor by department (not through
contractors)

🧾 Attendance Must be recorded daily and honestly

💰 Wages Paid based on recorded attendance and daily

rates

🧍 Payment Made in person, with signature/thumbprint

and witness

🔐 Records Must be preserved and submitted for audit

📌 Tip for Field Officers:

Always keep an extra blank muster roll book safely but never pre-fill it. Fill it on-site and in
real time to avoid errors or suspicion.

📘 Chapter 13: Accounts of Tools and Plant (T&P)

🎯 Purpose:
To explain how the Public Works Department (PWD) manages Tools and Plant (T&P)—
equipment used for executing public works—including how they are accounted for, issued,
maintained, and verified.

🔧 What are “Tools and Plant”?

T&P refers to durable, reusable equipment used for construction, maintenance, or other PWD
functions.

🛠 Examples:
● Concrete mixers

● Wheelbarrows

● Bitumen boilers

● Drilling tools

● Testing equipment

● Survey instruments

📌 These are not consumables and are not charged directly to a specific work.

📋 Section 13.1: Classification of T&P

PWD classifies T&P into:

Category Description

🔹 Ordinary T&P For regular use in field divisions and sub-

divisions

🔸 Special T&P Costly or specialized machinery like road

rollers, bitumen sprayers, etc.

📘 Section 13.2: T&P Register and Ledger

🧾 Records to Maintain
 Form Purpose

KPW Form 15 T&P Ledger (Division Level)

KPW Form 16 T&P Register of Receipts and Issues

Stock Book / Label Book For physical tagging and identification

📑 Entries in T&P Ledger Must Include:

● Description of tool/equipment

● Quantity and cost

● Date of purchase or receipt

● Location and custodian

● Transfers or disposals

● Remarks on condition

📌 Each item must have a unique identification number.

🔄 Section 13.3: Receipts and Issues of T&P

🔹 Receipts:
● T&P is received via:

○ Direct purchase

○ Transfer from other divisions

○ Supply from central stores or workshops

 ● Must be recorded in the register on the same day.

🔸 Issues:
● Issued for:

○ Specific works

○ Use by section or sub-division

○ Use by contractor (in rare cases and under agreement)

● All issues must be:

○ Approved by Divisional Officer

○ Recorded in T&P Register

○ Returned and re-entered after use

🔐 Section 13.4: Custody and Maintenance

🧍 Officer Responsible
● The officer (usually Section Officer) receiving T&P is fully responsible for:

○ Safe custody

○ Regular maintenance

○ Preventing misuse or theft

🧰 Maintenance
● T&P should be cleaned, repaired, and stored properly.

● Breakdowns should be logged and attended to.

● Maintenance charges can be booked under general establishment or as specific work

overheads.
📦 Section 13.5: Verification of T&P

🔍 Physical Verification
● Must be conducted once every financial year.

● Conducted by:

○ Divisional Officer or Assistant Engineer

○ Verified against T&P Ledger

❌ Lost or Damaged Tools

● Any missing, damaged, or unserviceable item:

○ Must be reported immediately

○ Investigated and written off (if allowed) after proper sanction

○ Value recovered from responsible person if negligence is proven

🔁 Section 13.6: Transfer and Disposal

🔁 Transfers:
● T&P can be transferred between:

○ Sub-divisions

○ Divisions

○ Departments (e.g., to Panchayats, Irrigation)

● All transfers must be:

○ Properly approved
 ○ Documented in both divisions’ T&P Registers

Disposal:
● Unserviceable or obsolete tools may be:

○ Auctioned

○ Sold as scrap

○ Written off (with sanction)

📌 Disposal must follow Store Purchase Rules and be auditable.

🧠 Key Takeaways – Chapter 13

Area Rule

📘 What is T&P Durable, reusable tools used in works

🧾 Record Format KPW Forms 15 & 16

🔒 Custody Responsibility lies with the officer using it

🔍 Verification Must be done annually and discrepancies

reported

🔁 Transfers & Disposal Allowed with proper documentation and

sanction

🚨 Why Is This Important?

Improper accounting of T&P can lead to:
 ● Audit objections

● Misuse or theft

● Wastage of government assets

● Loss of accountability

📘 Chapter 14: Stock Accounts

🎯 Purpose:
To explain how construction materials (like cement, steel, sand, etc.) are accounted for in the
Public Works Department (PWD) when they are purchased, stored, issued, and used for
public works.

What is “Stock” in PWD?

“Stock” refers to materials bought and stored in government depots or stores for:

● General issue to various works

● Emergency or planned use

● Inter-divisional supply

📌 Stock materials are not charged directly to a work when purchased. They are charged
when issued.

📦 Section 14.1: Stock Ledger – KPW Form 10

📘 What is a Stock Ledger?

The Stock Ledger (KPW Form 10) is the main account book for stock management.
It records:

Item Description

Opening Balance Quantity and value of stock at the beginning

of the month

Receipts New stock purchased or transferred in

Issues Stock issued to works or divisions

Closing Balance Remaining stock at month-end

Rate Issue rate per unit

Value Total value = Quantity × Rate

✅ Separate Pages for Each Item

Each type of material (e.g., cement, gravel, steel rods) must have its own page.

📥 Section 14.2: Receipt of Stock

How Are Materials Received?

● By purchase through proper procedures (quotations/tenders)

● From inter-divisional transfers

● From returns of surplus materials by works

📋 Record in:
● Stock Receipt Register (KPW Form 12)

● Then entered into the Stock Ledger

📌 The rate is based on actual purchase cost plus freight, handling, and storage charges.

📤 Section 14.3: Issue of Stock

When Is Stock Issued?

● To a specific work (road, building, etc.)

● To another division

● For emergency or unforeseen works

📘 Record in:
● Indent for Issue (internal request)

● Issue Register (KPW Form 13)

● Stock Ledger: Deduct quantity and value

● Charge the cost to the appropriate work in the accounts

📌 Stock must be issued at the "Issue Rate" (see below).

📊 Section 14.4: Issue Rate

What is the Issue Rate?

The average rate per unit calculated monthly or periodically. It includes:
 ● Purchase price

● Transport cost

● Handling charges

● Storage charges

📌 The rate helps ensure uniform valuation when the same material is issued to different
works.

📅 Section 14.5: Monthly Stock Account – KPW Form 14

At the end of every month, each division must prepare a Monthly Stock Account in:

● KPW Form 14

This account shows:

Field Description

Opening Balance Quantity and value carried forward

Total Receipts During the month

Total Issues During the month

Closing Balance Remaining stock

Adjustments Shortages, overages, errors

📌 Must be submitted to the Accountant General along with the monthly divisional accounts.
🔄 Section 14.6: Transfer and Return of Stock

Stock Can Be:

● Transferred:

○ To other divisions (via Transfer Entry Order)

○ Within sub-divisions

● Returned:

○ From a completed work back to store (if surplus)

○ Must be measured, valued, and re-entered in stock

🔍 Section 14.7: Verification and Control

🎯 Purpose of Verification:
● To prevent pilferage, misuse, or loss

● To detect book-vs-physical stock mismatches

🧾 Verification Rules:

Type Frequency By Whom

Physical Check At least once a year Divisional Officer or

delegated officer

Surprise Checks Anytime Superintending Engineer or

Audit
📌 Any shortage must be:

● Investigated

● Reported to higher authority

● Written off only with sanction

📕 Section 14.8: Common Errors to Avoid

● 🔴 Not recording issues daily → leads to audit objections.

● 🔴 Not adjusting returned stock → leads to overvaluation of work.

● 🔴 Using incorrect issue rates → leads to cost mismatch.

● 🔴 Keeping unused or obsolete stock → wastes funds and space.

🧠 Key Takeaways – Chapter 14

Topic Summary

📘 What is Stock? Materials bought and stored for issue to

works

🧾 Key Ledger KPW Form 10 (Stock Ledger)

📋 Other Forms KPW 12 (Receipts), KPW 13 (Issues), KPW

14 (Monthly Summary)

💰 Issue Rate Includes purchase + handling + transport

🔐 Verification Physical verification is mandatory annually

🔁 Transfers Must be recorded and authorized properly

📘 Chapter 15: Accounts of Miscellaneous Works

Advances (MPWA)

🎯 Purpose:
To explain how temporary advances given for various purposes in the Public Works
Department (PWD) are recorded, monitored, and recovered. These are grouped under the
"Miscellaneous Public Works Advances" (MPWA) head.

💡 What is MPWA?
Miscellaneous Public Works Advances (MPWA) represent temporary payments or
unadjusted items that are:

● Not immediately chargeable to a specific work or head

● Expected to be recovered or adjusted later

📌 Think of MPWA as a “suspense account”—holding entries temporarily until they are settled.

📋 Common Types of MPWA

Type Explanation

🔹 Secured Advances to Contractors Advance for materials brought to site—

 recovered from future bills

🔸 Unpaid Wages or Bills Amounts not disbursed due to absence or

legal issues

🔹 Advances to Subordinates For urgent purchases, site expenses, etc.

🔸 Outstanding Imprests Fixed sums with officers for daily use,

pending adjustment

🔹 Losses Awaiting Write-off Pending sanction for writing off shortages,

damages, etc.

📘 Section 15.1: Why Are These Recorded Separately?

Because these are not final expenditures. They:

● Do not yet belong to a work

● Need follow-up and adjustment

● Help maintain accounting integrity

📁 Section 15.2: How Are MPWA Items Recorded?

📒 Record Used:
● MPWA Register: A separate register maintained at the Divisional Office

Entries must include:

 ● Name of the person to whom advance is given

● Amount and date

● Reason or nature of advance

● Adjustment details

● Balance outstanding

📌 Each item should have a unique reference number.

🔁 Section 15.3: Adjustment and Clearance

🔍 When and How to Adjust?

Type Adjustment Method

Contractor Advances Deducted from next running or final bill

Labour Wages Unpaid Paid later to rightful person and entry cleared

Temporary Advances Settled through vouchers or refund

Outstanding Imprest Adjusted via expenditure vouchers and

balance refunded

📌 All advances must be cleared as soon as possible, and within the financial year wherever
feasible.

🔐 Section 15.4: Control and Monitoring

📆 Periodic Review
● Divisional Accountant must review MPWA balances monthly

● Items pending more than 3 months need explanation

● Long-pending items must be escalated to higher authority

🛑 Irregular Practices to Avoid

● Keeping advances pending without follow-up

● Charging expenses to wrong heads to clear balances

● Treating advances as final expenditure without voucher

⚖️Section 15.5: Write-off of Irrecoverable Advances

If an item cannot be recovered (e.g., contractor absconded or item lost):

● It must be:

○ Properly investigated

○ Sanctioned by competent authority

○ Written off through Transfer Entry Order (TEO)

📎 Examples

Case MPWA Action

₹50,000 advance to contractor for bricks on- Recorded as secured advance and recovered
site from next bill
 ₹2,000 wage payment withheld (worker Held under MPWA and paid on return
absent)

₹10,000 given to overseer for field survey Settled through MB entries and receipts
expense

🧠 Key Takeaways – Chapter 15

Topic Rule

💼 What is MPWA Temporary suspense account for unadjusted

advances

🧾 Record Used MPWA Register (at Division)

🔁 Clearance Must be adjusted or refunded quickly

🔒 Monitoring Regular review by Divisional Accountant

🧯 Write-off Requires investigation and proper sanction

🚨 Why MPWA Matters:

If MPWA is not controlled:

● Advances may remain unrecovered

● Government money stays blocked

● Audit objections and financial irregularities may occur

📘 Chapter 16: Accounts of Deposit Works

🎯 Purpose:
To explain how the PWD handles works that are funded by outside agencies (like other
departments, public bodies, or individuals), but executed by PWD.

💡 What is a Deposit Work?

● A Deposit Work is any project not funded by the PWD budget, but executed using
external funds deposited into the government treasury.

Examples:

● Construction of a school funded by Local Self Government.

● Utility shifting for private institutions.

● Roads for public sector undertakings.

🏦 Procedure:
1. Deposit: Agency deposits full or part amount to the treasury.

2. Sanction: Estimate is prepared and sanctioned by competent authority.

3. Execution: PWD executes the work as per standard rules.

4. Accounts: Separate accounts maintained; expenditure adjusted from deposit.

📋 Records:
● Deposit Ledger: Tracks receipt, expenditure, and balance.

● Separate Work Register for each deposit work.

 ● Monthly Statements sent to depositing agency.

📌 Unused balance can be refunded.

📘 Chapter 17: Registers and Records

🎯 Purpose:
To list all the mandatory registers and records for proper financial and technical
documentation in PWD.

📒 Essential Registers:

Register Purpose

Measurement Book (MB) Measurement of work done

Stock Ledger (Form 10) Material inventory

Tools & Plant Ledger (Form 15) Equipment tracking

Register of Works Track financial & physical progress of works

Muster Roll (Form 21) Attendance & wages of labourers

MPWA Register Advances & suspense items

Deposit Works Register Track agency-funded works

 Contractor Ledger Individual contractor-wise record

Bill Register Track all bills paid in a division

📌 Rule:
● All entries must be dated, signed, and updated daily.

● Registers must be produced during audit.

📘 Chapter 18: Compilation of Divisional Accounts

🎯 Purpose:
To guide on how the monthly accounts of a Division are compiled and submitted to the
Accountant General.

🧾 Components of Monthly Accounts:

● Abstract of Receipts & Expenditure

● Work-wise Expenditure Statement

● Stock Account

● MPWA and Deposit Work Statements

● Schedule of Cheques Issued & Encashment

● List of Outstanding Liabilities

📌 All supported by vouchers, bills, and certified registers.

🔄 Submission:
● Accounts are compiled by the Divisional Accountant under the Divisional Officer's
supervision.

● Sent to AG’s Office by 10th of every month.

📘 Chapter 19: Audit and Inspection

🎯 Purpose:
To explain how PWD records are audited by the Accountant General or internal audit teams.

🔍 What Is Audited?
● Accuracy of accounts

● Proper classification

● Misuse or delay in payments

● Fraudulent entries or discrepancies

🔁 Types of Audit:

Type By Whom Frequency

Statutory Audit Accountant General Annually

Internal Audit Department Quarterly

Surprise Checks SE/CE Random

📋 Key Documents Checked:
● Cash Book

● Measurement Book

● Muster Rolls

● T&P and Stock Registers

● Vouchers & Agreements

📘 Chapter 20: Special Provisions for National Highways

🎯 Purpose:
To lay out the specific accounting rules for works related to National Highways (NH) in
Kerala, which are centrally funded.

💼 Key Points:
● Central Government Funds are used; routed through State Budget.

● Separate head of account for NH works.

● Use CPWD forms where applicable.

● Strict cost control and regular returns to Ministry of Road Transport & Highways
(MoRTH).

📋 Reports Required:
● Monthly progress & expenditure report

● Utilization Certificates (UCs)

● Asset Register for NH works

📘 Chapter 21: Accounts of Workshops

🎯 Purpose:
To describe how PWD Workshops (for fabrication, repair, etc.) are accounted for.

What Are Workshops?

Facilities that produce or repair items like:

● Doors/windows for buildings

● Road signs

● Mechanical parts for T&P

💰 Accounting:
● Treated as Commercial Accounts

● Maintain:

○ Job Register

○ Material Consumption Register

○ Workshop Ledger

● Recovery made from divisions for items supplied.

📌 Profit & loss calculated annually.

📘 Chapter 22: Accounts of Stores Depots

🎯 Purpose:
To explain how Central Stores (which supply materials to divisions) maintain their accounts.

📦 Key Concepts:
● Bulk purchase of materials

● Supplied to divisions on indent

● Valued at average issue rate

● Maintain:

○ Bin Cards

○ Stock Ledger

○ Issue Register

📌 Stores Depot is treated like a central warehouse; divisions debit the cost upon receipt.

📘 Chapter 23: Miscellaneous Rules

🎯 Purpose:
To provide a set of special cases and clarifications not covered in earlier chapters.

🧾 Topics Covered:
● Rounding off figures in bills

● Handling court attachments and garnishee orders

● Payment through e-payment platforms

● Disposal of serviceable but surplus materials

 ● Use of digital registers (as per latest orders)

🧠 Combined Key Takeaways (Chapters 16–23):

Area Summary

💰 Deposit Works Agency-funded works, accounted separately

📒 Registers Vital for transparency and audit readiness

📋 Monthly Accounts Compiled by 10th of every month

🔍 Audits Ensure correctness and legality of records

🚧 NH Works Centrally funded with stricter compliance

🧰 Workshops Commercial units – operate with cost

recovery

🏪 Stores Depots Centralized material hubs for divisions

📜 Miscellaneous Rules for unique cases and modern systems