Road Maintenance Finance Quiz

Chapter 1: Definition

• Charged Expenditure is defined as expenditure subject to Lok Sabha vote, charged on the Consolidated Fund, Contingency Fund, or Public Account.
• Charged expenditure is mentioned in Article 112(4)
• Contingency refers to all indirect work charges, incidental expenses of a work, and petty/incidental expenses that cannot be categorized under a distinct subhead.
• Administrative approval in Public Work Department is the formal acceptance of a project by the Administrative or Finance department.
• Advance payment in a Public Work Division is a payment made to a contractor for a work that has been measured or done.
• Pick the best option for Advance Payment in a Public Work Division including advances to subordinate staff and contractor.
• Assets in a Public Work Division refer to high-value machinery, equipment, and buildings.
• Book transfer is the process of recording financial transactions without physical movement of cash or stock.
• Charged expenditures are generally not subject to voting by the House of the People, but in exceptional instances, they can be voted on by the House in terms of Article 112(1). This is considered true.
• Detailed head means a programme, function, scheme, or sub-scheme.
• Direct charges in Public Work Division relate to direct expenses of a job or project, including charges for regular establishment, and any expenses exceeding ₹1000.
• Indirect charges are incidental expenditures in a work.
• Total expenditure on account of a work includes both indirect and direct expenses.
• A Direction Officer refers to a Divisional Officer, Superintendent Engineer, Departmental Accountant, or Pay & Accounts Officer.

Chapter 2: General Outlines of System of Accounts

• The classification of transactions in Government Accounts shall have a closer reference to the function, programme or activity of the Government.
• Article 10 of GFR, 2005 & Article 29 of GAR, 1990 specifies this.
• When a division provides service or supplies material to another division, records should be maintained using book transfer, or advance payments.
• Various reference codes associated to accounts/transactions include 2059, 4210, 005, 4000, 8671 and 8782.
• The detailed classification of a Public Work under a Major Head must be introduced, and the booking system for such expenditure is presented by the CGA.
• Budgetary estimates and other governmental transactions are classified and categorized.

Chapter 3: Relations with Chief Controller of Accounts

• The Divisional Accountant is responsible to ensure divisional accounts do not fall into arrears.
• The Chief Controller of Accounts is responsible for posting a Divisional Accountant.
• The Controller General of Accounts, Controller & Auditor General of India and the concerned Government handle the posting of a Divisional Accountant.
• Divisional Accountant has three roles (Accountant, Financial Assistant, internal checker)
• A Divisional Accountant is always treated as a senior member of the establishment when working independently or not of the Divisional officer.
• Important processes and actions regarding financial transactions relating to projects and/or repairs and construction, with costs not covered by the government fund, are often described.
• The process of financial transactions ensures timely reporting and prevents delays in financial matters.
• Various other procedures related to official tasks and responsibilities, including financial transactions and records, are also described.

Chapter 4: Appropriation and Re-appropriation

• Government accounts are classified by function/program/activity
• Consolidated Fund of India, Emergency Fund, Contingency Fund and Public Accounts refer to different accounting parts.
• Public Account handles transactions booked not under Consolidated or Contingency Funds.
• Consolidated and Contingency Funds are managed by the Government of India
• The Revenue division of the Consolidated Fund of India has two subdivisions (Revenue Receipt and Revenue Expenditure).
• The Capital division of the Consolidated Fund of India has three subdivisions (Capital Receipt, Capital Expenditure, and Loans and Advances).
• The rules dealing regarding Contingency Fund of India, Public Accounts, and other matters of appropriation are reviewed.

Chapter 5: Cash

• Cash includes legal tender coins, cheques/drafts, and revenue stamps (Rs. 1 and Rs. 5).
• Items excluded from cash include personal cheques of DDO, Government Securities, and postage stamps.
• Final payment in PWD refers to payment to a contractor. The final settlement process for outstanding payments.
• Important processes associated with financial transactions through banking procedures, including the issue and processing of letters of credit (LoCs) and payments.
• Rules/regulations related to issuing, processing, and controlling cash transactions.
• A list of several items associated with cash transactions is provided, giving details of the items and processes.

Chapter 6: Store

• Store administration covers acquisition, custody, distribution, and disposal of stores.
• Any breach of store administration rule is a serious concern for the CPWD, handled by specific officers and authorities as per the rules.
• The fundamental principle of store administration is that the cost of acquisition should be debited to the particular work account.
• Several specific cases of store-related transactions and costs are discussed, including road metal, tools and plant, and other relevant stores.
• Procedure relating to the valuation, costing, and recording of store-related transactions is described involving multiple forms and procedures.

Chapter 7: Transfer Entry

• A transfer entry is a formal record of transferring a receipt or charge from to another account.
• It may be a correction of errors or to support transactions involving suspense accounts, deposits, remittances or other relevant accounts.
• All transfer entries are formally recorded within a specific time frame and must be checked and ratified by designated parties.
• Various types of entries and their purpose are detailed in the process of managing accounts.
• The requirements for completing the transfer entry process is clearly laid out in relevant forms.
• Various procedures in which a transfer entry is required. The procedures specify how to manage errors within the process, and the authorities to handle the adjustment process are indicated.

Chapter 8: Revenue Receipts

• The responsibility for ensuring demands, recovery, and record-keeping of outstanding dues to the Government rests with the Divisional Accountant.
• Processes of making recoveries (in case of revenues being owed to the government), with procedures to create receipts and maintain records.
• Rules for handling special cases of revenue realization (involving supervision costs, sale proceeds, etc.) with exceptions for prompt handling of these cases.
• Rules/procedures to manage the recovery of license fees from various categories of government employees and tenants and the subsequent procedures.
• Handling of cash receipts, and related accounting processes including payments for various services/items, and procedures to settle accounts, including processes of transfer/reconciliation of outstanding amounts.

Chapter 9: Works Accounts

• Expenditure related to construction or maintenance of a work are divided into Capital and Revenue.
• Works accounts are maintained separately to record individual works and contractor/supplier transactions.
• Records are maintained using various documents including Muster Rolls, Measurement Books, and Work-Charged Establishment Bills.
• Procedures for payment to contractors and other parties are described
• Issues regarding cost of special establishment for acquisition of land.
• Details on cost calculation for special or general purpose work and transactions, including handling of payments, are specified.
• Essential documentation for work accounts (like muster rolls, measurement books, and others) is indicated.
• Cases where multiple works are connected through a single contract is detailed.

Chapter 10: Financial Rules and Procedures

• Various aspects of financial rules and procedures for government dealings are reviewed.
• Procedures of reconciliation of financial transactions, and relevant approvals/authorizations for various financial transactions are highlighted.
• A summary of significant tasks and responsibilities for financial transactions relating to estimates, appropriations, and permissions.
• Some cases of when a transaction should be credited or debited

Chapter 11 : Manufacture Accounts

• The manufacture's transactions related to general and specific work orders are kept in separate accounts.
• History, job, and material cards are used to determine manufacturing costs.
• The progress of a manufacture is recorded in the Manufacture Register.
• Rules relating to handling capital charges associated with manufacture are explained, with a focus on distinguishing between issues relating to single-season and multi-season works.

Chapter 12: Suspense Accounts

• A suspense account holds transactions that cannot be immediately categorized into a particular account/category.
• Expenditure and receipts relating to various sub-heads are summarized before being transferred to the relevant accounts to track and manage transactions.
• Rules for updating the suspense account and reconciliation of charges with other accounts, and handling of transactions and balancing entries in these accounts.
• Explanation of rules regarding accounting operations, showing how to handle discrepancies and errors regarding payments or issues in the accounts.