Guide on maintenance of accounts

Prepared by Sri G.V.N.Murali Krishna, Accounts Officer,

Rajahmundry Circle, Rajahmundry

HAND BOOK ON MAINTENACE OF ACCOUNTS AND REGISTERS AND

RECORDS RELATING TO WORKS

1. Division Cash book:

2. Cheque Book Register

3. Cheques drawn register: As seen from the Cheques drawn

register it is observed that all the

cheques were issued on the last date

of a month and accounts obtained for

the same month. It is suggested to

issue cheques in a phased manner so

as to avoid to complications.

It is observed that many numbers of

cheques were cancelled. The DFO is

requested to preserve all the cancelled

cheques under attestation explaining

the reasons and produce the same to

audit.

3. AR Ledger: Whenever, AR advance issued to FSO

/ Dy. ROs, the FSO / Dy. RO has to

necessarily write the cash book. If

the payment is directly made by the

Forest Range Officer, he has to write

the cash book.

As seen from the AR ledger it is

observed that the date(s) of issue of

cheque (s) are not being written. It is

suggested to mention date and

cheque number for each cheque and

also to show the work recoveries at

the end of the month.

It is further observed that the AR

ledger at Range level are not being

maintained which should be insisted

up on.

4. Fund Application Register: The register is maintained. All the

fund applications must be filed in the

respective month’s account and

produce them to the audit for

verification.

1. Whenever, funds are advanced to Forest Range Officers,

proceedings along with a copy fund applications for which

the amounts were sanctioned and under what head of

service the expenditure has to be booked have to be sent to

Forest Range Officers. This mitigates all the problems in

booking of expenditure which should be scrupulously

followed in future

5. Bill War Register: A Register for the bills paid to the

Contractors has to be maintained in

the following proforma.

The deductions like FSD, IT, VAT,

CESS etc., are to be immediately paid

to the respective departments and/or

obtain call deposits in the name of

contractors so as to release them to

the respective contractors after the

defect liability period is over.

Otherwise the amount will be

spent for the works under the

impression that the amount is

available under CAMPA and the

payments to the contractors would be

held up.

6. Security/Call Deposit Register: After conversion of EMD and FSD in

the shape of Security/Call deposits,

the details can be written a Register

so as to release/forfeit the deposits as

the case may be after the defect

liability period is over. The PCCF, AP,

Hyd Ref. no. 6665/10-CAMPA,

dt.21.04.11 issued detailed guidelines

and a proforma is prescribed to

maintain call deposit register. The

Accounts Officer, IA, Rajahmundry

designed a proforma in continuation of

the proforma prescribed by the PCCF,

AP, Hyderabad. The following is the

proforma and it has to be maintained

by contractor/work wise.

Sl. n

o

S.O

.no

Nam

e o

f th

e

work

Work

s

entr

uste

d

on

nom

ination/

tender

Agre

em

ent

am

ount

Date

of

agre

em

ent

Due d

ate

for

com

ple

tion

Actu

al

date

of

com

ple

tion

EM

D

collecte

d

@2.5

%

1 2 3 4 5 6 7 8 9

FSD

collection

@ 7

.5%

/ 3%

FSD

re

leased

with

final

bill

@5%

Bala

nce

(EM

D+

FSD

)

Defe

ct

liability

peri

od

Rem

ark

s/r

eport

of

the F

RO

aft

er

defe

ct

liability

peri

od

Ord

ers

of

the

DFO

Am

ount

rele

ased/f

orf

eit

ed

Sig

natu

re o

f th

e

contr

acto

r

Rem

ark

s

10 11 12 13 14 15 16 17 18

mailto:[email protected]%25





TENDERS:

NOMINATION:

No work should be entrusted on Nomination without prior

approval of the competent authority.

Notices are being sent to the Registered Contractors to execute the

works. But in the past, it was seen that nobody come forward to take up

the works on nomination, permission is being accorded by the

Conservator of Forests to execute the works under Petty

Contract/Departmental method from the panel of Registered Contractors.

The Divisional Forest Officers are executing the works by giving work

order to a Registered Contractor by limiting the work bills to Rs.20,000/-

out of the estimate sanctioned. As such, the entire expenditure was

incurred by paying the estimated amounts to a 5-6 persons called as

petty contractors under departmental method. The work of extraction

and transportation on each estimate is ranging from Rs.4-5 and this work

is being executed by 4-5 persons by way of petty contract agreement by

splitting the work and voucher to the eligibility purview of a Section

Officer.

As per the guidelines issued by the Prl. Chief Conservator of Forests

in Manual of Instructions on Forest Works, the Schedule contract method

which is otherwise called as Petty contract system is in use mainly in

Forest Department for works costing not more than Rs.5,000/-. The

Divisional Forest Officer executing the works in piece meal by a work

order duly deducting Income Tax from the Contractors; this is not either

Schedule Contract Method or Piece Work Contract Method for in Piece

Work Contract method the value of the work is not more than one lakh

and EMD and FSD has to be collected.

More over the work has to be executed from the panel of Registered

Contractors of Forest Department.

With regard to transportation of bamboo or timber, the

transportation work is also being taken up with petty contract agreement

and as such the contractor need not have any vehicle and no specific

conditions were mentioned in the petty contract agreement. If the

transporter / petty contractor commits any unlawful activities or indulged

any breach of trust, as per the existing contract form no action could

initiated against them and as it is not properly recorded in which vehicle

the transportation was made and to whom the payment is made and who

is the actual owner of the vehicle. The whole issue has to be examined

in letter and spirit and detailed instructions/guidance may please be

issued.

EMD:

The Earnest Money Deposit given in the shape of DDs should be converted

into call deposits and enter into Security deposit Register. And 5% of deposit

shall be refunded to the Contractor along with the Final Bill after initial

observation and the remaining 5% deposit shall be refunded after the defect

liability period is over. There is delay in conversion of Security deposit in the

shape of call deposits which should be avoided.

The EMDs collected and refunded should be taken into Cash

Accounts of Division Office in the respective months and this can

be

FSD:

Further Security Deposit at 7.5% from the Contractor from each Running

Bill in case of the Contractor appointed on Tender and in case of Nomination, 3%

of the FSD shall be collected. The amount so collected shall be converted in the

shape of call deposits and enter in the Security Deposit Register.

And 5% of FSD shall be refunded to the Contractor along with the Final

Bill after initial observation and the remaining 5% deposit shall be refunded after

the defect liability period is over. There is delay in conversion of Security

deposit in the shape of call deposits which should be avoided.

7. Register of Contractors:

It is observed from the list of cheques

drawn register payments were made

to the contractors who are appointed

on nomination were other than the

contractors registered in the Division.

It is stated that those were appointed

as contractors in other divisions of

Rajahmundry circle. The DFO is

requested to entrust the works on

nomination only to the registered

contractors.

No work should be entrusted to

the contractor on nomination without

prior approval of the Conservator of

Forests. Even the works entrusted on

nomination agreement should be

entered and filed in the division.

8. Tender notices issued: The tender notices issued in a year

should be in chronological order by

issuing a number to the notice and

specifically note I / II Call.

9. Register of Tenders schedules sold: The register is to be updated. The

cost of tender schedules received was

not remitted into CAMPA account. It

should be done immediately. The

EMDs so collected from the successful

bidder along with the balance EMD

should be converted as call deposit

and entered in the Security Deposit

Register. It should be done

immediately.

10. Register of tenders received: The register is to be updated and all

the columns should be filled in with

the attestation of DFO.

11. Communication charges register : Instead of giving Rs.500/- as

communication charges to the

executive subordinates, the DFO has

obtained CUG telephone numbers and

given to the staff. The payments are

being made at division office. It is

however requested to update the

register and watch the payments

regularly.

12. Filing of TCS (Income tax) Return:

The quarterly return for tax collection has to be filed on 15th July,

15th October, 15th January and 15th May of every year and failure to file

the return will be viewed seriously by the Income Tax department. Each

collection of tax should be remitted within 7 days and delayed payment

also attracts penal provision. The DFO is also requested to file the income

tax return for all the collections in one return and obtain the PAN numbers

of the contractors and also to note the TAN number of the DFO failure to

which the remittance should not find place in the statements of the

income tax department and the refund claim by the Contractor is not

entertained by the Income Tax Department. In such situation the

contractor file the claim with the Forest Department for refund of such tax

collected from him.

13. Bank Reconciliation The DFO is requested to get the

reconciliation done with the cash book

and bank pass book duly obtaining

statement of account every month

and attest on the statement.

14.Acquittance Register : The DFO is requested to maintain a

Acquittances register for the payments

made by him.

15. BILLS UNDER CONTRACT SYSTEM:

The FROs who are sending the contractor bills to the division office

for payment, an office copy should be retained in the Forest range office

so as to know the payments made to the contractors for the works

executed in their ranges. They should enter the bill in a register duly a

giving a serial number of the year along with the connected records like M

book, bills, store/ seed registers to verify the receipt of stock and

execution of works with reference to M book so as to make payment. On

receipt of the bill, in the division it should be verified and pass and

payment order to be made under the attestation of the DFO. The cheque

should be sent along with the proceedings to the contractors and

immediately the same should be entered in the bill war register and the

action may be taken to send the deductions to the respective

departments and/or obtain call deposits.

16. VOUCHERS:

Vouchers are split for the same period of work to make

payment within the competency of Forest Section Officer.

This increases the work load thereby the vouchers are

increased. The payment can be made for the total work

completed up to the date of payment by cheque/DD duly

pre-auditing the voucher by the next higher authority who

is competent to make payment of the particular bill

amount. As seen from the vouchers, the following

observations are made.

Payments above Rs.5000/- are made in cash. No payment

should be made beyond Rs.5000/- in cash.

Whenever ARs are issued to Forest Section Officers and

making payment through them, the Cash Accounts are to

be written by the Section Officers. If the payment is

directly made by the Forest Range Officer, he/she has to

write the cash book.

Vouchers are split for the same period of work to make

payment within the competency of Forest Section Officer.

This increases the work load thereby the vouchers are

increased. The payment can be made for the total work

completed up to the date of payment by cheque/DD duly

pre-auditing the voucher by the next higher authority who

is competent to make payment of the particular bill

amount.

In some bills the deductions were not made properly and

payment is made in full, while reviewing the completion

reports this aspect has to be observed.

All the vouchers (Month-wise) as per LoP should be filed

duly signed by the staff, Forest Range Officer concerned

and countersigned by the Divisional Forest Officer.

No expenditure should be incurred beyond the budget

allotment.

The vouchers in respect of the payments made to the

different departments should be properly filed and file the

returns.

The voucher should contain all the details such as SO no,,

period of work done, name of the work, quantity of work

done, rate, amount paid, signature of the payee and the

officer making payment duly signed by the Forest Range

Officer concerned and the countersignature of the DFO.

17. Work Register:

While posting the Work Registers, the following shall be

attended for fool proof verification and accounting.

Index should be maintained.

The detailed Head of Service shall be written on the top of the

page.

The period of work done shall be noted so as to know the date of

commencement of the work and date of completion of work

M. Book page no. shall be written in red ink while posting the

register.

Month-wise and cumulative totals for each item of work should

be made and got the signature of the In-charge of Office shall be

taken.

The details of deductions such as collection of taxes, Further

Security Deposits etc. to be noted in the Work Register along

with the details of payments at the bottom of the page.

The filing of CRs should be written with the attestation of the In-

charge of Office and also the excess expenditure if any recovered

should also be recorded.

After filing, in the Index page, such work should be rounded with

red ink duly noting filing amount.

Component wise allocation as per the estimate should be noted in

the work register.

M. Book page no. shall be written in red ink while posting the

register.

Month-wise and cumulative totals for each item of work should be

made and the signature of the In-charge of Office shall be taken.

The expenditure should be posted as per the passed bill in case of

contractors.

The details of deductions such as collection of taxes, Further

Security Deposits etc., to be noted in the Work Register along

with the details of payments at the bottom of the page.

The filing of CRs should be written with the attestation of the In-

charge of Office and also the excess expenditure if any recovered

should also be recorded.

18. SANCTION OF ESTIMATES:

Estimates are to be sanctioned before commencement of the work.

Work either purchase / work should be commenced only after

sanction of estimates. No work should be commenced before

sanction of an estimate.

It is not correct to sanction estimates without obtaining and

accepting the quotations for the works/purchases.

The Forest Range Officers are empowered to sanction

estimates up to Rs.50000/- for works only.

Whenever expenditure to be incurred on other than works, Misc.

Sanction orders are to be issued. As such, for payment of oil

charges, repairs and replacement to vehicles sanction orders are to

be issued by competent authority

Wherever sanction orders are issued as per the data the data

should be approved by the competent authority and then only the

estimates are sanctioned.

Estimates were prepared basing on the quotations and sanction was

accorded. In this connection, it is suggested to prepare a data /

assess the rates as per the market rates for purchases and for

works a detailed data for material + transport + labour may be

prepared and then only approved the quotations.

Detailed description has to be written for each item of work with

reference to the FSR as well as in the Specifications prescribed in

the Special conditions should be noted.

The rate for each item of work separately is to be noted when

material and labour involved. No group of items shall be noted in

the sanctioned estimates but for each item separately and the rate

also to be noted accordingly.

While sanctioning the estimate the date of the sanctioning authority

must be noted on the sanctioned estimate.

While sanctioning the estimate if any material is available and for

further processing work / utilization is only made, the same should

be mentioned in the estimate.

As per the instructions of PCCF, AP, Hyderabad, copies of estimates

sanctioned by the Forest Range Officer and Sub-DFOs are to be sent

to the division office and the technical officer of division office has to

scrutinize those estimates and inform the objections before

incurring the expenditure.

In some estimates works executed in different areas are shown in

one estimate due to which lot of confusion prevails in execution

check measurement and watching the progress of expenditure.

Contingencies provided in the estimate are being paid to the

contractors. The contingencies should not be allowed to the

contractors beyond the sanction of estimates.

No item should be sanctioned other than the FSR. And if any

item/work to be purchased or executed, permission from the

Competent authority should be obtained.

Estimates were prepared basing on the quotations and sanction was

accorded. In this connection, it is suggested to prepare a data /

assess the rates as per the market rates for purchases and for

works a detailed data for material + transport + labour may be

prepared and then only approved the quotations.

Detailed description has to be written for each item of work with

reference to the FSR as well as in the Specifications prescribed in

the Special conditions should be noted.

The rate for each item of work separately when material and labour

involved. No group of items shall be noted in the sanctioned

estimates but for each item separately and the rate also to be noted

accordingly.

19. PURCHASES:

All items more than Rs.5000/- should be purchased through

open tenders.

Whenever purchase / works are to be made through quotations, to

avoid complications, the following procedure may be adopted.

i. Assess the desirability / essentiality of the work / purchases

to be made.

ii. Availability of budget

iii. Whether the work / purchases are within the approval of the

scheme under which the works / purchases are to be done.

iv. Enquire / publicize inviting tenders / quotations.

v. Quotations may be accepted only the firms having registered

with the concerned authority.

vi. Receipt of quotations to be field properly duly affixing the

date stamp and initials of the officer in which office they are

received.

vii. Prepare comparative statement duly noting the reasons for

accepting the rejecting the quotation/tender and also on the

quotations.

viii. Based on the approved quotations, sanction orders to be

issued.

ix. After sanction, the work order has to be issued to the

successful tenderer.

x. After receipt of goods / completion of work, the same can be

recorded in the prime registers, such as Store Register and M.

Book and recommended for payment duly satisfying the

goods/service rendered.

xi. After fulfilling the above condition, the payment can be made.

Whenever purchase / works are to be made through

quotations, to avoid complications, the following procedure

may be adopted.

20. MEASUREMENT BOOKS:

The M. Books for the works executed were produced. The following

are the observations.

The test-checking of Forest Range Officer has to be ensured in

most of the cases.

The detailed measurements like lat-longs, location, RF area,

Compartment no. etc., in respect of Ha/Running meters are to be

recorded in the M. Books.

After payment Voucher nos. are to be written across the M. Book

page duly depicting the Division / Range as the case may be.

The recording of pass order and payment order has to be clearly

understood while signing.

For a work one M. Book is to be preferred rather recording so

many works in one M. Book. After all, the M. Book can be used

for another work after the former is over.

Measurements are to be recorded up to date and then deduct the

previous measurements.

Payment should be after the check-measurement.

Dates of recording the FBO/FSO are not noted.

Dates of check-measurement of the FSO/FRO are not noted in

some instances.

The contents mentioned in the previous page of M. Book are not

being brought forward in the next page.

Whenever the Dy. Range Officer in-charge of a Range, the check

measurement should be done by the superior officer.

Detailed measurements in respect of rmt. are to be noted but for

lump sum recording which should be avoided.

One work can be recorded in one M. Book and after its

completion; it may be used for recording the subsequent work.

Index is not maintained.

Dates of recording the FBO/FSO are not noted. Dates of check-

measurement of the FSO/FRO are not noted.

Period of work done is noted.

S.O. No. and Voucher Nos. are not noted.

In respect of area, the details are not noted.

The signature of the payee is not obtained.

The check-measurement of the FRO is not done up to the required

percentage.

In respect of works costing more than Rs.5.00 lakhs, 30% of the

works has to be check-measured by the DFO.



Index is to be maintained.

Dates of check-measurement of the FSO/FRO are to be noted.

S.O. No. and Voucher Nos. are to be noted.

In respect of area, the details are to be noted.

The signature of the payee is to be obtained.

The check-measurement of the FRO is to be done up to the

required percentage.



Seigenorage charges are to be collected.

The contents mentioned in the previous page of M. Book are to be

brought forward in the next page. The test-checking of Forest

Range Officer has to be ensured in most of the cases.

The detailed measurements like lat-longs, location, RF area,

Compartment no. etc. in respect of Ha/Running meters are to be

recorded in the M. Books.

After payment Vr. Nos. are to be written across the M. Book page

duly depicting the Division / Range as the case may be.

The recording of pass order and payment order has to be clearly

understood while signing.

For a work one M. Book is to be preferred rather recording so many

works in one M. Book. After all, the M. Book can be used for

another work after the former is over.

Measurements are to be recorded up to date and then deduct the

previous measurements.

Payment should be after the check-measurement.


Dates of check-measurement of the FSO/FRO are not noted.




The signature of the payee is not obtained.





Vague recording of entries in the M. Book is not permitted. Index

is not maintained.


Dates of check-measurement of the FSO/FRO are not noted.




The check-measurement of the FRO is not done up to the

required percentage.

Seigenorage charges are not being collected.

21. STORES:

22. MATERIAL AT SITE ACCOUNT:

23. PETROL, OIL, LUBRICANTS:

1. All the bills received should be signed by the Officer as well as the

Driver who are in charge of the vehicle.

2. The log book page no. should be noted down on the bill and it

should immediately be noted in the Log book.

3. The oils purchased should be entered in the Oils Register also.

4. The consolidated report submitted to the Divisional Forest Officer (if

the bills are paid by the Officer in charge), the details should be

mentioned stating that the bills are paid by me.

5. The oils purchased in any other scheme also should be noted down

in the Log book.

6. The log book should be written update and without writing the log

book, incurring of expenditure is not correct.

7. All the other registers should be updated every month.

8. Abstract of consumption of oils should be written every month.

9.

24. BILDINGS:

A. PREPARATION OF STANDARD MEASUREMENT BOOKS:

B. DEMOLITION OF GOVERNMENT QUARTERS

Permission from the Principal Chief Conservator of Forests, AP,

Hyderabad has been obtained for demolition of the above quarters.

25. Plantation / Nursery Journals:

As seen from the Plantation / Nursery Journals, the following

omissions are noted.

1. Expenditure details are to be posted every month.

2. The dates of checking of Watch & Ward and watering are not

mentioned. Instead, they are preparing voucher for the total

period of month, which is to be corrected.

3. The observations of the FSO / FRO / DFO / or Other Superior

Officers are to be pasted.

26. DFLR:

The DFLR was not checked by the next higher authority in

common but the recordings in M. Book were checked. It is not

correct. As far as the extraction of Bamboo is concerned, the

next higher authority must necessarily check the DFLR as per the

prescriptions of the DE Manual.

The work of transportation of Bamboo by vehicle is being done

which should be recorded by date wise, permit wise, lorry wise, if

at all it has to be recorded in M. Book. But the work carried out

in a continuous period, the writing of recording / check-

measurement on the concluding day is not at all correct. The

Divisional Forest Officer is requested to examine this and submit

his remarks / report to the Principal Chief Conservator of Forests

through Conservator of Forests, Rajahmundry.

27. GENERAL:

The following further suggestions are made with regard to

maintenance of Accounts.

Wherever sanction orders are issued as per the data, the data

should be approved by the competent authority and then only the

estimates are sanctioned.

The date of sanction should invariably be noted in the estimate.

To maintain AR ledger promptly and obtain the signature of the

DFO/FRO.

To maintain a Bill-war Register to observe the deduction of Taxes

and EMD/FSD. To maintain a Tender received and sold.

To maintain a Register of Contractors update.

To maintain a Register of Contractor, by name posting the details of

all payments in a year to observe the I.T. deduction and to issue a

necessary certificate as required.

To maintain a Register for CALL DEPOSITS for the EMD/FSDs

collected and converted in the shape of call-deposits and to release

to the contractors.

To file TCS return for every quarter.

To maintain a communications charges Register.

The Range Works Registers are to be posted every month. The

monthly totals and cumulative are to be written at the end of the

month and this should be attested by the FRO/DFO.

No lump-sum depositing in VSS should be made but if the VSS

people are willing to work as labour, they may be engaged in the

execution of works.

To collect seigenorage charges for the bills already paid without

collecting the seigenorage charges.

To appoint Contractor with the prior approval of Conservator of

Forests.

To obtain Bank-reconciliation statement every month and verify the

balances.

Wherever dismantling of buildings was taken up, permission from

the competent authority should be obtained. Likewise, the

completed buildings in respect of new constructions and

renovations, the same may be immediately handed over to the

persons for whom the buildings are meant.

Prepared by - Sri G.V.N.Murali Krishna,

Accounts Officer, Rajahmundry Circle,

Rajahmundry

Technology

Guide on maintenance of accounts