National Rural Roads Development Agency

                                                                                                                                                                                                           

CHAPTER 13
FINANCE & ACCOUNTING SYSTEM

13.1 FLOW OF FUNDS

13.1.1 SRRDA to receive funds :

The State Level Autonomous Agency, designated as the SRRDA for each State shall receive the funds for the PMGSY from the MORD / NRRDA. These include the Programme Funds, Administrative Expenses Funds and Maintenance Funds. The Agency will be responsible for rendering its accounts to the State Nodal Department and the Ministry of Rural Development.

13.1.2 Bank : The SRRDA shall select a branch of any Public Sector Bank, or Institution based Bank, having a branch at the State Headquarters and Internet connectivity for operating the PMGSY’s OMMS. Once selected, the accounts shall not be changed to any other Bank or branch without the concurrence of the NRRDA. There shall be a written understanding from the Bank that it will follow the Guidelines of the Government of India for payments from PMGSY Fund. The concerned branch will maintain Internet connectivity and enter the data into the relevant module of the OMMS. The SRRDA shall communicate to the NRRDA and MORD the details of the Bank branch and the Account Numbers. There will be separate Account Number for the Programme Fund, for the Administrative Expenses Fund and the Maintenance Fund.

The Bank shall provide the following facilities to the PIUs by its branches at the Headquarters of PIUs.

  1. To draw self cheque by the PIUs.

  2. To accept deposit of moneys received by the PIU in the bank account of the SRRDA maintained at State Level.

  3. Clear the cheques issued on the account at par, the same day in the designated accounts.

  4. To furnish bank statement at the close of each month showing the opening balance of bank authorisation account, details of PIU’s cheques encashed during the month and the balance of bank authorisation account on the closing day of the month. This statement shall also be furnished to the SRRDA.

  5. For interest paid to SRRDA, the bank statement will show both the gross amount of interest and tax deducted at source.

13.1.3 PMGSY Programme Fund, Administrative Expenses Fund and Maintenance Fund:

The SRRDA will open with the selected bank and branch one bank account for the PMGSY Programme Funds, one for Administrative Expenses and one for Maintenance Funds. The MORD will release the funds only to these accounts, on the recommendations of the NRRDA, who shall satisfy itself that the requirements in the Guidelines have been met. All payments for work related expenses under the programme will be made from the programme fund account. No other administrative expenditure (such as purchase of vehicles and office equipment) shall be debitable to this account. Expenses on administration for items approved by MORD guidelines will be debitable to Administrative Account.

The Maintenance Fund will be used to manage the funding of the Maintenance contracts, and the State Government will release funds from the State Budget for the purpose.

13.1.4 Regulation of Programme expenditure:

Expenditure under the PMGSY Programme Fund will be regulated as under:

  1. The SRRDA will declare the Executive Engineers of PIUs/Heads of PIUs (who are the drawing and disbursing officers of the PIU) as its ex-officio members or officers so as to enable them to draw on the funds of the Agency from the Programme Fund Account. They shall be Authorised Signatories.

  2. There will be no separate bank accounts of the PIUs for the PMGSY Programme Fund.

  3. The SRRDA shall designate a senior officer as the Financial Controller of this Agency so that he can oversee the implementation of the accounting system. The Financial Controller would be a Senior Accounts Officer, with adequate experience in works accounting.

  4. The SRRDA will nominate one of its senior officers, normally of the rank of Finance Controller or Chief Engineer or Superintending Engineer, as the Empowered Officer. It shall be open only to the Empowered Officer to inform the Bank of the names of the Authorised Signatories, for issuing cheques on the Agency’s bank account.

  5. The Empowered Officer will furnish this list of Authorised signatories along with attested signatures to the Bank, apart from himself maintaining a record of it. This list will be verified quarterly and updated list supplied to the Bank each quarter. As soon as there is a change in the name of an Authorised signatory the Bank will immediately be informed, with instructions on disposal of cheques issued.

  6. The Bank will issue Cheque Books to each of the Authorised signatories on the basis of written requisitions from the Empowered Officer. Cheque Book numbers shall be intimated to the Financial Controller.

  7. When a work is awarded, the PIU shall obtain the Bank details and account no. of the contractors and intimate the Empowered Officer of all Account Payee information for each package, including the total amount admissible for each account payee. The Empowered Officer will inform the Bank of the names of Authorised Payees (contractors and suppliers with whom Agreements have been duly entered into, as well as Statutory Authorities, such as ITO etc) and their designated payee accounts. The Empowered Officer will authorise the payment of mobilisation and machinery advance admissible. He will authorise payment of running bills after obtaining a certificate of satisfactory mobilisation from the PIU, which will certify that the contractor has mobilised the required key personnel and equipment, has set up the site Quality Control Laboratory, and has got his work programme approved. A list of the authorised payees will be entered in the Master of the OMMS by the Empowered Officer enabling operations of the Accounting Module for the package.

  8. The Empowered Officer will lay down suitable limits on monthly/quarterly payments in line with the agreed Works Programme for the respective packages. Standing instructions will be issued to the Bank Branches by the Empowered Officer in this regard.

  9. The Authorised Signatories will make payments, as per the established PWD procedure, by Account Payee cheque mentioning the designated payee accounts. They will immediately enter the cheque and payee details in the Payment Module of the OMMS, and also issue an advice to the Bank which may consist of electronic advice available on the OMMS Accounting Module.

  10. On presentation of the cheque, the Bank would satisfy itself after checking the advice from the PIU that the payment details have been entered in the Payment module, and that the cheque meets with all other requirements, among others, like signatures agreeing with specimen signatures, the cheque amount being within the balance authorised limit, and the payee being the authorised payee, payee account details being fully and correctly specified etc. The Bank will then made payments and confirmatory entries in the OMMS Accounting Module.

  11. Normally, there will not be any self-cheque drawn on the PMGSY Programme Funds Account. However, in individual cases, the Empowered Officer may make the Executive Engineer/Head of PIU an authorised payee for a specified amount and also as one time measure only. There will not be any standing directions/ instructions to the Bank for this.

  12. The Bank will not allow the funds to be used by any person other than the Authorised Signatories and for any purpose other than the authorised payment for Works taken up under the PMGSY. Nor will it be open to the SRRDA to invest these funds in any other Bank Branch, whether for short or medium term, including under Fixed Deposits.

  13. The Bank will render monthly account, in respect of PMGSY Funds, to the SRRDA and the National Rural Roads Development Agency by processing the data on the Receipts and Payment Modules of the OMMS. It will also inform the concerned PIU of its cheques encashed.

  14. A tripartite Memorandum of Understanding will be entered into between the Bank, State-level Agency and the Ministry of Rural Development wherein the parties would agree to abide by the provisions of the Guidelines. In particular, the Bank will agree to abide by the instructions issued, from time to time, by the Ministry of Rural Development/ National Rural Roads Development Agency (NRRDA) regarding the operation of the Account. The Bank will not make any advance, overdraft or loans to any State Government or its agency or unit or corporation or any one else out of or against the security of the investments or funds or PMGSY account under any circumstances.

  15. All funds in excess of Rs. 50 (fifty) lakhs will be automatically maintained by the bank as Fixed Deposits, at an interest rate not below that of Treasury Bill for 91 days. The Bank may encash the Fixed Deposits in tranches of Rs. 25 lakhs by paying the interest for the days of the FDR without any reduction in the rate of interest (The Reserve Bank of India follows this procedure for investing in 91-day treasury bill the surplus funds of the State Government and Union Government).

  16. Money accruing as Interest will be added to the same account. The expenditure out of this interest amount will be guided by the instructions/ guidelines to be issued by the Ministry of Rural Development/ NRRDA from time to time. The Bank shall intimate to the SRRDA, the interest amount credited by it to the Account from time to time. The MORD or the NRRDA may, from time to time, issue such directives to the Bank/ SRRDA as necessary for smooth flow of funds and effectiveness of the Programme, and the Bank shall take note of the advice, and comply with such directives.

13.1.5 Regulation of Administrative Expenditure: Unlike the Programme Fund, the Administrative Fund may be credited with funds from both PMGSY and the State Grant-in-aid. These are funds necessary for the administration of the SRRDA and PIUs and for Quality Management. The operation of the Administrative Account will be as follows:

  1. The SRRDA will declare the Executive Engineers of PIUs/Heads of PIUs (who are the drawing and disbursing officers of the PIU) as its ex-officio members or officers so as to enable them to draw on the funds of the Agency from the Programme Fund Account. They shall be Authorised Signatories.

  2. There will be no separate bank accounts of the PIUs for the PMGSY Administrative Fund.

  3. The Bank will issue Cheque Books to each of the Authorised signatories on the basis of written requisitions from the Empowered Officer. Cheque Book numbers shall be intimated to the Financial Controller

  4. The position of the PMGSY administrative expenses and travel expenses which are meant for PIUs will be distributed in the form of limits under intimation to the Bank.

  5. The 2nd tier quality monitoring expenses shall only be used to the purposes specified in the guidelines. They shall not be used for defraying administrative and travel expenses except travel expenses of designated State Quality Monitors.

  6. The Authorised Signatories will make payments, as per the established procedure, by Account Payee cheque mentioning the designated payee accounts. They will immediately enter the cheque and payee details in the Payment Module of the OMMS, and also issue an advice to the Bank which may consist of electronic advice available on the OMMS Accounting Module. However, the Empowered Officer may allow drawal of self cheques by PIUs within an overall limit, to meet petty expenses.

  7. On presentation of the cheque, the Bank would satisfy itself after checking the advice from the PIU that the payment details have been entered in the Payment module, and that the cheque meets with all other requirements, among others, like signatures agreeing with specimen signatures, the cheque amount being National Rural Roads Development Agency within the balance authorised limit, and the payee being the authorised payee, payee account details being fully and correctly specified etc. The Bank will then made payments and confirmatory entries in the

  8. The Bank will not allow the funds to be used by any person other than the Authorised Signatories and for any purpose other than the authorised payment for Works taken up under the PMGSY. Nor will it be open to the SRRDA to invest these funds in any other Bank Branch, whether for short or medium term, including under Fixed Deposits.

  9. The Bank will render monthly account, in respect of PMGSY Funds, to the SRRDA and the National Rural Roads Development Agency by processing the data on the Receipts and Payment Modules of the OMMS. It will also inform the concerned PIU of its cheques encashed.

  10. A tripartite Memorandum of Understanding will be entered into between the Bank, State-level Agency and the Ministry of Rural Development wherein the parties would agree to abide by the provisions of the Guidelines. In particular, the Bank will agree to abide by the instructions issued, from time to time, by the Ministry of Rural Development/ National Rural Roads Development Agency (NRRDA) regarding the operation of the Account. The Bank will not make any advance, overdraft or loans to any State Government or its agency or unit or corporation or any one else out of or against the security of the investments or funds or PMGSY account under any circumstances.

  11. All funds in excess of Rs. 50 (fifty) lakhs will be automatically maintained by the bank as Fixed Deposits, at an interest rate not below that of Treasury Bill for 91 days. The Bank may encash the Fixed Deposits in tranches of Rs. 25 lakhs by paying the interest for the days of the FDR without any reduction in the rate of interest (The Reserve Bank of India follows this procedure for investing in 91-day treasury bill the surplus funds of the State Government and Union Government).

  12. Money accruing as Interest will be added to the same account. The expenditure out of this interest amount will be guided by the instructions/ guidelines to be issued by the Ministry of Rural Development/ NRRDA from time to time. The Bank shall intimate to the SRRDA, the interest amount credited by it to the Account from time to time. The MORD or the NRRDA may, from time to time, issue such directives to the Bank/ SRRDA as necessary for smooth flow of funds and effectiveness of the Programme, and the Bank shall take note of the advice, and comply with such directives.

13.1.6 Regulation of Maintenance Expenditure: SRRDA’s are required to have separate maintenance funds and operate a separate Maintenance Fund Account with the same bank which operates the other two accounts, namely Programme Fund Account and Administrative Expenses Account. Funds for this account will primarily flow from the State Government and may also come from other sources. The funds will be used for payments to contractors for the routine maintenance of rural roads for five year after construction. Guidelines for the management of this fund will be issued from time to time as required. Similarly, its accounting procedure will be laid down separately.

13.2 ACCOUNTING SYSTEM

13.2.1 Since the PMGSY funds are now administered by the SRRDA and are, therefore, outside the Government finances (with no role for the district treasury and the State Accountant General), it is necessary to maintain accounting system capable of on-line monitoring and management. This system has now been developed by the Institute of Public Auditors of India (IPAI), and a software for the accounting system has been developed by the C-DAC. Until the OMMS system becomes fully operational, the accounts will be kept on manual basis on the procedures and formats prescribed by IPAI

13.2.2. The new system, while retaining the basic structure of the PWD accounting system, incorporates the following:

  1. Bank authorisation account will be opened and operated both in the books of accounts of PIUs and the SRRDA.

  2. SRRDA shall maintain PIU-wise ledger account for the “Programme Fund, Admn. Fund and Maintenance Fund” as well as “Bank Authorisation”. The balances in these accounts kept by SRRDA must agree with the balances appearing in the monthly accounts of the PIU.

13.2.3 Chart of Accounts: Transactions under PMGSY works are further sub-divided according to the chart of accounts. The chart of accounts of PMGSY is like the List of Major and Minor Heads of Accounts for Government transactions. The prescribed chart of accounts for PMGSY is as follows:

CHART OF ACCOUNTS FOR PMGSY PROGRAMME FUND

Head of Account Credit/Debit Balance Account Head Number Entry To be made By
Programme Funds
Programme Funds received by SRRDA from GoI Credit 1.01 SRRDA
Programme funds transferred by SRRDA to PIU Debit 1.02 SRRDA
Programme funds received by PIU from SRRDA Credit 1.03 PIU
Bank Authorization Account (Books of SRRDA) Credit 1.04 SRRDA
Bank Authorization Account (Books of PIU) Debit 1.05 PIU
Incidental funds generated from interest and net Incidental Receipts etc. Credit 1.06 SRRDA and PIU
Funds transferred from interest income to Administrative Expenses Fund on orders of the Ministry of Rural Development Debit 1.07 SRRDA
Statutory Deductions from Contractors/suppliers
Income Tax and Surcharge from contractors/ Suppliers Credit 2.01 PIU
Commercial/Sales/Entry tax from contractors / Suppliers Credit 2.02 PIU
Any Other statutory deductions Credit 2.03 PIU
Deposits Repayable
Earnest Money Deposits from Contractors / Suppliers Credit 3.01 PIU
Security Deposit from contractors/ Suppliers Credit 3.02 PIU
Sums due to contractors on closed accounts Credit 3.03 PIU
Miscellaneous Deposits Credit 3.04 PIU
Purchases (Suspense) Credit 4.01 PIU
Spare number for future use
Expenditure on works
Construction of New Roads Debit 11.01 PIU
Up-gradation of existing Roads Debit 11.02 PIU
Expenditure on Plantation Debit 11.03 PIU
Expenditure on Sign Boards Debit 11.04 PIU
Technical Monitors Debit 11.05 PIU
Laboratory and Equipment Debit 11.06 PIU
Detailed Project Report Debit 11.07 PIU
Materials at Site Account (Material issued to Departmental Works)
Construction of New Roads Debit 12.01 PIU
Up-gradation of existing Roads Debit 12.02 PIU
Stores and Stock Debit 13.01 PIU
Misc. Works Advance
Against Contractors Debit 14.01 PIU
Against Staff Debit 14.02 PIU
For DPR Preparation
Cash Balance
Cash in Chest Debit 15.01 PIU
Imprest with Staff Debit 15.02 PIU
Bank Balance
Bank Debit 16.01 SRRDA
Advances
Advance Payment to Contractors Debit 17.01 PIU
Materials issued to contractors Debit 17.02 PIU
Secured Advance against materials Debit 17.03 PIU
Mobilisation Advance Debit 17.04 PIU
Machinery Advance Debit 17.05 PIU
Advances to Suppliers Debit 17.06 PIU
Other Advances Debit 17.07 PIU
Spare No.
Income Tax
Tax deducted at Source on the investments of SRRDA Debit 19.01 SRRDA
Balance Sheet
Balance Sheet Account NIL 20.01 PIU/ SRRDA
Incidental Receipts
Interest received from Bank Account Credit 21.01 SRRDA
Forfeiture of Earnest Money Deposit Credit 21.02 PIU
Fines, Forfeitures, Penalties etc Credit 21.03 PIU
Any Other non refundable Deductions from Contractor / Supplier Bill Credit 21.04 PIU
Miscellaneous Receipts Credit 21.05 PIU / SRRDA
Recoverable Administrative Expenses Debit 22.01 PIU / SRRDA
Spare numbers for future use

EXPLANATORY NOTES ON CHART OF ACCOUNTS PROGRAMME FUNDS

ACCOUNT CODE/HEAD

Explanatory Notes

1.01

Funds received by the SRRDA at State level from the Government of India shall be credited.

1.02

Programme funds transferred through Bank Authorisation by SRRDA to PIU shall be accounted for by Debit to this account code in the Transfer Entry Book of the SRRDA. Moneys if any, received by the PIU relating to Programme and deposited in the Bank Account of SRRDA by the PIU shall be accounted for by credit to this account on the receipt side of Cash Book of SRRDA in “Bank Column”.

1.03

Programme funds received through bank Authorisation by PIU from SRRDA shall be accounted for by Credit to this account code on the receipt side of the Cash Book of PIU in “Bank Authorisation” column. Moneys, if any, received by PIU relating to programme shall be accounted for on the receipt side of PIU Cash Book in “Cash column” by credit to related account code. On deposit of such moneys in the Bank account of SRRDA it shall be accounted for on the “Payment side” of the cash book in “Cash” column by debit to this account code.

1.02 & 1.03

Account code 1.02 & 1.03 shall be squared up and hence shall not appear in State Level Consolidated Balance Sheet of PIU and SRRDA.

Programme funds transferred through Bank Authorisation by SRRDA to PIU shall be accounted for by Credit to this account code in the Transfer Entry Book of the SRRDA.On receipt of the statement for the cheques drawn by the PIU during the month against Bank authorisation in the prescribed format the SRRDA shall account for the amount of cheques drawn by the PIU on the payment side of its cash book in Bank column by debit to this account code.

1.04

Programme funds received through Bank authorisation by PIU from SRRDA shall be accounted for by the PIU on receipt side of its cash book in Bank Authorisation column.All payments made by the PIU against Bank authorisation shall be accounted for by the PIU on the payment side of its cash book in “Bank Authorisation” column.No ledger account of Bank Authorisation account shall be maintained by the PIU as the Cash Book of PIU with column “Bank Authorisation” on the receipt as well the payment side will serve the purpose of ledger.

1.05

Account code 1.04 and 1.05 shall be squared up and shall not appear in State Level Consolidated Balance Sheet.

1.06

At the close of each financial year shall be adjusted by credit to this (1.06) account code.

2.01, 2.02 & 2.03

Statutory deductions viz. Income tax, Commercial Tax, Sales Tax, surcharge on tax and any other Tax etc. made from the payments to Contractors/Suppliers by the PIU shall be credited.The payment to the concerning authorities by the PIU shall be made by debit resulting in NIL balance.

3.01

Earnest money deposits received from Contractors/Suppliers shall be credited.

3.02

Security Deposits received/recovered from Contractors/Suppliers shall be credited.Refund of Earnest Money Deposit/Security Deposit shall be Debited resulting in NIL balance.

3.03

Sums due to Contractors on closed accounts shall be credited. The payment to Contractors shall be made by Debit resulting in NIL balance.

3.04

All other deposits received by PIU shall be credited and refund thereof shall be made by Debit resulting in NIL balance. Amount with-held and any other refundable deduction from the bill of the Contractor/Supplier shall also be credited to this account code.

4.01

Materials purchased from Suppliers remaining unpaid during the month shall be accounted for by debit to the concerned account code and credit to PURCHASES. The payments to suppliers in subsequent month shall be made by Debit to Purchases resulting in NIL balance. It is a suspense head to account for the unpaid materials at the close of the month.

11.01 & 11.02

Expenditure on works: The works have been classified as per guidelines of the Government of India, Ministry of Rural Development (MORD). Expenditure incurred for the execution of works shall be debited to the works concerned. Account Codes are self-explanatory i.e. Construction of New Roads and Up-gradation of Existing Roads.

11.03

Expenditure on plantation on both sides of the road shall be debited to this Account Code.

11.04

Expenditure of fixing of Sign Boards on the roadside as per guidelines of MORD shall be debited to this Account Code.

12.01 & 12.02

Materials required for the execution of works shall be routed through Stores and Stock Account. Materials issued from Stores shall be debited to Material and Site and its account shall be maintained by the Site Engineer. When the Materials are finally consumed on the works the expenditure shall be debited to works concerned under major code 11 by Credit to this account code.Unconsumed Materials/Tools & Plants, if any, left at the site of work shall be returned to Stores and the cost thereof shall be adjusted by debit to Account Code 13.01 “Stores & Stock” and Credit to this Account Code. This Account Code shall finally be closed with “NIL” balance. Scrap, if any, shall also be returned to Stores for auction.

13.01

Value of stores purchased shall be debited to this Account Code and issues thereof from Stores to site of work/Contractors shall be credited to this Account Code by debit to Account Code of works concerned under Major Head–12–”Expenditure on Materials directly charged to works (MAS) or Account Code 17.02-Materials issued to Contractors.Stock account code 013.01 shall be minus debited/minus credited in the following cases:

1. In the absence of the bill of Supplier approximate value of the unpaid materials received during the month is adjusted by debit to stock account code 13.01 and credit to purchase. Suspense account code 04.01. If the actual payment for the supplies is found to be less than the approximate value, the difference shall be adjusted by minus debit to account code 13.01 and debit to account code 04.01.

2. There may be some credit balance in stock account “Account Code 13.01” at the time of closing stores due to issue rates. Such credit balance (profit on stock) shall be adjusted by minus credit to account code 13.01 and credit to miscellaneous receipt account code 021.07 and stock account code 13.01 shall be closed with NIL balance.

Scrap in stores, if any, shall be sold by auction and sale proceeds thereof shall be credited to Account code 021.07 “Miscellaneous receipts”.At the close of scheme the value of stores and stocks, if any, shall be adjusted as per guidelines issued by Govt. of India, Ministry of Rural Development.

14.01 & 14.02

Any expenditure, which can not be debited to any Account Code and require investigation/recovery from the Contractor/staff shall be debited to Account Code number 14.01/14.02. Theft/losses shall also be debited to this account code. It is a suspense head and is to be adjusted by debit to final Account Code and credit to 14.01/14.02 after investigation. This Account Code is to be finally closed with NIL balance.

15.01

Account Code-Cash in Chest is self explanatory. Cash balance appearing in Cashbook at the close of month shall be shown against this Account Code.

15.02

Imprest issued to staff for petty expenses/purchases/labour payment shall be debited to this account code. On receipt of account this account code shall be adjusted by debit to final head of account code relating to expenses. This Account Code is to be finally closed with NIL balance.

16.01

Funds received by SRRDA from Govt. of India, Ministry of Rural Development shall be kept in an account opened in any one of the Scheduled Bank. The funds shall be transferred to PIU through “Bank Authorisations”. Bank account for the funds received from the State Govt. shall be opened in another Scheduled Bank, so that the transactions from Central and State funds may not be mixedup. Name of the Scheduled Bank in which account is opened shall be incorporated in the Chart of Account.Funds shall be released on the basis of requisition of PIU. Bank reconciliation statement shall be prepared at the end of each month by SRRDA as well as PIU to reconcile the difference, if any, in balance as per Bank and Cash Book.

17.01

Advance Payment if any made to the Contractor against his running bill shall be debited to this account code. Recovery as and when effected shall also be credited to this account code.

17.02

Materials issued to the Contractors from store shall be debited to this account code. Materials as per requirements of the work and as per terms and conditions of contract shall be issued and cost thereof shall be recovered on the basis of its consumption

17.03

Secured advance against imperishable materials brought to site of work shall be debited. Secured advance shall be limited to 75 per cent of value thereof and for the quantity actually required and brought to the site of work. Advance shall be given after signing indenture in the prescribed format and it shall be recovered on the basis of consumption.

17.04 & 17.05

These advances shall be debited to the concerned Account Code. The advances shall be given strictly as per terms and conditions of agreement after ensuring its recovery. Advance shall also be recovered as per terms and conditions of the Agreement.Interest recovered from the Contractor on the amount of advance shall be credited to Miscellaneous receipts account code 21.05.

17.06

Advances to Suppliers shall be debited to this account code. Advances shall be given as per conditions of supply order after ensuring its security and recovery. Recovery of advances shall be adjusted when supplies are received and accepted.

18.01

All payments relating to repairs and maintenance of the road after the expiry of Defects Liability Period as per terms and conditions of the contract shall be debited to this account code. Expenditure on repairs and maintenance of Sign Boards and maintenance of road side plantation shall also be debited to this account code.Schedule of works expenditure shall be prepared showing the road wise details of expenditure for the month and to end of the month etc. and the total of the schedule shall agree with that shown in the account.

19.01

Tax deducted at source by the Bank from the interest shall be debited to this account code. Refund for the same shall be claimed from Income Tax Department.

20.01

This account code shall be operated to account for the assets and liabilities of the programme if the SRRDA has been changed. The following adjustment shall be done to account for the assets and liabilities.

(i) Debit : Balance Sheet Account
Credit : Liabilities
(ii) Debit : Assets
Credit : Balance Sheet Account

This account code shall be closed with NIL Balance.

21.01

Gross amount of interest received on deposits etc. shall be credited to this head of account.

21.02 to 21.04

These account codes are self-explanatory. Account Code 21.03 will also include deduction on account of non-refundable liquidated damages etc. from the bill of Contractor.

21.05

All other receipts shall be credited. Sale proceeds of scrap etc. shall also be credited. Interest recovered from Contractor against mobilisation/ machinery advance shall also be credited. At the close of each financial year the total amount of incidental receipts shall be credited to Account Code 1.06 Incidental Funds generated from interest etc. and account code 21 shall be closed with NIL balance.

Note:

  1. Account Codes (1.02 and 1.03) and (1.04 and 1.05) while preparing the balance sheet of the state by the SRRDA will be normally squared up. Monthly meetings of the PIUs shall be arranged by SRRDA so that the differences if any may be reconciled and adjusted.

  2. Balances if any against major code numbers 3, 4, 13, 14, 16 and 17 at the close of the scheme shall be adjusted as per the guidelines issued by the Govt. of India, Ministry of Rural Development.

CHART OF ACCOUNTS FOR PMGSY – ADMINISTRATIVE EXPENSES FUNDS
The Chart of Account for Administrative Expenses Fund is as follows:
Charts of Accounts
PMGSY - Administrative Expenses Fund

Head of Account Credit/Debit Balance Account Head Number Entry To be made By
Administrative Funds
Central Administrative Expenses Funds received by SRRDA from GoI Credit 51.01 SRRDA
Central Administrative Expenses Funds transferred by SRRDA to PIU Debit 51.02 SRRDA
Central Administrative Expenses Funds received by PIU from SRRDA Credit 51.03 PIU
State Administrative Expenses Funds received by SRRDA from State Government Credit 51.04 SRRDA
State Administrative Expenses Funds transferred by SRRDA to PIU Debit 51.05 SRRDA
State Administrative Expenses Fund received by PIU from SRRDA. Credit 51.06 PIU
Bank Authorization Account(Books of SRRDA) Credit 51.07 SRRDA
Bank Authorization Account(Books of PIU) Debit 51.08 PIU
Incidental funds generated from interest and net Incidental Receipts etc. Credit 51.09 SRRDA/PIU
Cash and Bank Balance
Cash in Chest Debit 52.01 PIU/SRRDA
Imprest with Staff Debit 52.02 PIU/SRRDA
Bank Balance Debit 52.03 SRRDA
Fixed Deposits with Bank Debit 52.04 SRRDA
Income Tax ( Receivable)
Tax Deducted at source Debit 53.01 SRRDA
Administrative Expenses
Travelling expenses Debit 54.01 SRRDA/PIU
Telephone Expenses Debit 54.02 SRRDA/PIU
Maintenance of Computers Debit 54.03 SRRDA/PIU
Internet Expenses Debit 54.04 SRRDA/PIU
Data Entry Costs Debit 54.05 SRRDA/PIU
Other Office Expenses Debit 54.06 SRRDA/PIU
Quality Monitoring Expenses Debit 54.07 SRRDA
Bank Charges 54.08 SRRDA
Any other expenses with approval of MoRD 54.09 SRRDA/PIU
Expenses approved by the State Government to be incurred from Debit 54.10 SRRDA/PIU
Funds it provided. 54.19
Assets expenses allowed by the MoRD (i.e., computers) Debit 54.20-24 SRRDA/PIU
Assets expenses allowed by State Government Debit 54.25-54.30 SRRDA/PIU
Incidental Receipts
Interest received from Bank Credit 55.01 PIU
Miscellaneous Receipts Credit 55.02 PIU

EXPLANATORY NOTES ON CHART OF ACCOUNTS FOR PMGSY
ADMINISTRATIVE EXPENSES FUNDS

ACCOUNT CODE/HEAD

Explanatory Notes

51.01

Funds received from Govt. of India by SRRDA shall be credited

51.02

Funds Transferred during the year by SRRDA to PIU shall be debited to this account

51.03

Funds received during the year by PIU from SRRDA shall be credited to this account

51.04

Funds received during the year from State Government by SRRDA shall be credited to this account

51.05

Funds transferred during the year by SRRDA to PIU shall e debited to this account

51.06

Funds received during the year by PIU from SRRDA will be credited to this account

51.07

Administrative Expenses funds transferred through Bank Authorisation by SRRDA to PIU shall be accounted for by credit to this account in the Transfer entry book of SRRDA

51.08

Administrative Expenses funds received through Bank Authorisation by o PIU from SRRDA shall be accounted for by the PIU on receipt side of its cash book in the Bank Authorisation column.

51.09

At the close of each financial year all incidental receipts in Major account code 055 shall be adjusted by credit to this account code.

52.01

Account Code-Cash in Chest is self-explanatory. Cash balance appearing in Cashbook at the close of month shall be shown against this Account Code.

52.02

Imprest issued to staff for petty expenses/purchases etc. shall be debited to this account code. On receipt of account this account code shall be adjusted by debit to final head of account code relating to expenses. This Account code is to be finally closed with NIL balance.

52.03

Funds received from Govt. of India, Ministry of Rural Development and State Government shall be kept in one account opened in any one Scheduled Bank in accordance with PMGSY guidelines. Funds shall be transferred to PIU’s through ’Bank Authorisations’

52.04

The tripartite agreement wit the bank provides for automatic investment of surplus funds with the bank in fixed deposits. This head is for that purpose

53.01

Tax deducted at source from the amount of Interest on Deposits etc. shall be debited to this Head of Account.

54.01 to 54.30

These account codes are self explanatory

55.01

Gross amount of interest received on deposits etc shall be credited to this Head of account.

55.02

This account code is self explanatory.

Note:

  1. Account code number 51.01 and 51.02 for the receipt/transfer of funds shall be operated by the SRRDA only.

  2. Account head code 51.03 for the receipt of funds shall be operated by the PIUs only.

  3. At the close of each financial year:

    1. Administrative Expenses shall be adjusted by debit to account code number 54.01 or 54.19
    2. Incidental receipts shall be adjusted by credit to account code 51.02 or 51.04

  4. Balance sheet as on 31st March shall show only the unspent amount of the fund on liability side and cash/Bank balance on asset side.

  5. Subsidiary registers for administrative/incidental receipts shall be maintained as laid down by the State Govt.

  6. Unspent balance amount of the fund as on 31st March shall be carried forward in the next year.

CHART OF ACCOUNTS FOR PMGSY MAINTENANCE FUND

Head of Account Credit/Debit Balance Account Head Number Entry To be made By
Maintenance Fund
Central Maintenance Fund (received by SRRDA from GOI) Credit 101.01 SRRDA
Central Maintenance Fund transferred by SRRDA to PIU Debit 101.02 SRRDA
Central Maintenance Fund received by PIU from SRRDA Credit 101.03 PIU
State Maintenance Fund received by SRRDA from State Government Credit 102.01 SRRDA
State Maintenance Fund transferred by SRRDA to PIUs Debit 102.02 SRRDA
State Maintenance Fund received by PIU from SRRDA Credit 102.03 PIU
Maintenance Funds from Other Sources
Source A Credit 103.01 SRRDA
Source B Credit 103.02 SRRDA
Maintenance funds from Other Sources transferred to PIUs Debit 104.01 SRRDA
Maintenance Funds from Other Sources received by PIUs Credit 105.01 PIU
Bank Authorization Account (Books of SRRDA) Credit 106.01 SRRDA
Bank Authorization Account (Books of PIU) Debit 106.02 PIU
Incidental funds generated from interest and net Incidental Receipts etc. Credit 107.01 SRRDA/PIU
Statutory Deductions from Contractors/suppliers
Income Tax and Surcharge from contractors/ Suppliers Credit 108.01 PIU
Commercial/Sales/Entry tax from contractors / Suppliers Credit 108.02 PIU
Any Other statutory deductions
Deposits Repayable
Earnest Money Deposits from Contractors / Suppliers Credit 109.01 PIU
Security Deposit from contractors/ Suppliers Credit 109.02 PIU
Sums due to contractors on closed accounts. Credit 109.03 PIU
Miscellaneous Deposits Credit 109.04 PIU
Purchases (Suspense) Credit
Spare number for future use
Maintenance of Roads
Maintenance of newly constructed roads
First Year Maintenance Debit 120.01 SRRDA/PIU
Second Year Maintenance Debit 120.02 SRRDA/PIU
Third Year Maintenance Debit 120.03 SRRDA/PIU
Fourth Year Maintenance Debit 120.04 SRRDA/PIU
Fifth Year Maintenance Debit 120.05 SRRDA/PIU
Maintenance of up-graded roads
First Year Maintenance Debit 121.01 SRRDA/PIU
Second Year Maintenance Debit 121.02 SRRDA/PIU
Third Year Maintenance Debit 121.03 SRRDA/PIU
Fourth Year Maintenance Debit 121.04 SRRDA/PIU
Fifth Year Maintenance Debit 121.05 SRRDA/PIU
Spare Numbers
Renewal of Roads
Renewal of PMGSY roads Debit 126.01 SRRDA/PIU
Maintenance of Zonal Roads
First Year Maintenance Debit 127.01 SRRDA/PIU
Second Year Maintenance Debit 127.02 SRRDA/PIU
Third Year Maintenance Debit 127.03 SRRDA/PIU
Fourth Year Maintenance Debit 127.04 SRRDA/PIU
Fifth Year Maintenance Debit 127.05 SRRDA/PIU
Materials at Site Account (Material issued to Departmental Works)
MAS account Debit 131.01 PIU
Stores and Stock
Stores and Stock Debit 132.01 PIU
Misc. Works Advance
Against Contractors Debit 133.01.01 PIU
Against Staff Debit 133.02 PIU
Cash Balance
Cash in Chest Debit 134.01 SRRDA/PIU
Imprest with Staff Debit 134.02 SRRDA/PIU
Bank Balance
Bank Debit 135.01 SRRDA
Advances
Advance Payment to Contractors Debit 136.01 PIU
Materials issued to contractors Debit 136.02 PIU
Secured Advance against materials Debit 136.03 PIU
Mobilisation Advance Debit 136.04 PIU
Machinery Advance Debit 136.05 PIU
Advances to Suppliers Debit 136.06 PIU
Other Advances Debit 136.07 PIU
Spare No.
Income Tax
Tax deducted at Source on the investments of SRRDA Debit 139 SRRDA
Incidental Receipts
Interest received from Bank Account Credit 140.01 SRRDA
Forfeiture of Earnest Money Deposit Credit 140.02 PIU
Fines, Forfeitures, Penalties etc Credit 140.03 PIU
Any Other non refundable Deductions from Contractor / Supplier Bill Credit 140.04 PIU
Miscellaneous Receipts Credit 140.05 PIU / SRRDA
Spare numbers for future use

13.2.4 Accounting System for the SRRDA

  1. SRRDA shall maintain a two column cash book – one for cash and another for bank transactions.

  2. The funds received from Government of India will be accounted for on the receipt side of the cash book in bank column by showing classification Account Code No.1.01.

  3. On receipt of requisition of funds from the PIU in the prescribed format, SRRDA’s empowered officer will issue it a bank authorisation in the prescribed format with endorsement to the bank showing the amount, names of payees, etc.

  4. One signed copy of the bank authorisation will become the voucher for the entry in the “Bank Authorisation Transfer Entry Book”. No bank authorisation will be dispatched to a PIU before an entry is made in the Bank Authorisation Transfer Entry Book. Bank Authorisation authority to PIU will bear the entry number in the Register. Entry in the Bank Authorisation Transfer Entry Book will be debited to the account head 1.02 Programme Funds Transferred to the PIU; and credited to the head 1.04 Bank Authorisation. The detailed account of each PIU will be kept in the PIU Programme Funds Transferred and PIU Bank Authorisation Register.

  5. Each PIU will send to SRRDA monthly account, monthly balance sheet with the prescribed schedules including a statement of the cheques drawn during the month and bank reconciliation statement. The statements should reach the SRRDA latest by the 5th day of the next month. On receipt of this monthly bank reconciliation statement, the SRRDA shall pass an order for its acceptance and make an entry in the cash book, bank column, payment side, of the amount of the cheques issued during the month. It will treat the bank reconciliation statement as a voucher. Apart from posting the entry from the cash book to the Ledger of Credit Balances, Bank Authorisation Account, it will also make an entry in the PIU Bank Authorisation Register, make an entry of each cheque issued on the payment side of cash book showing the total amount of cheques drawn during the month by the PIU in bank column by debit to “Bank Authorisation Account” in the same month. It will post the amount to the PIU Bank Authorisation Register. Details of the cheques will always be available in the voucher, namely the bank reconciliation statement.

  6. Net credit balance in the PIU Bank Authorisation Register should agree with the amount shown in the balance sheet of the PIU. Any difference should be promptly investigated and set right.

  7. Moneys received by PIUs by cheques/ demand drafts/ pay orders, etc. against the PMGSY programme shall be deposited by the PIU in the branch of the bank at its Headquarter in the account of SRRDA. Intimation for such deposit shall be furnished by the PIU to SRRDA in the prescribed form along with photocopy of bank pay-in-slip. On receipt of such intimation the SRRDA shall pass an transfer entry order crediting the account head 1.02 Programme Fund transferred to PIU and crediting the head to which the receipt relates.

  8. Net debit balance of programme fund of the PIU in the accounts of SRRDA shall be in agreement with the net credit balance in the accounts of PIU. Any difference should be promptly investigated and set right.

  9. In order to avoid any difference there shall be no issue of bank authorisation during the last five working days of the month, to prevent difference, which arise because of delays in transit.

  10. Gross amount of interest received from bank on the balances shall be taken as receipt in bank column in the cash book Account Code 21.01. The tax deducted at source by bank shall be shown on payment side in the bank column “tax deducted at source” Account Code 19.01. Refund for tax deducted at source shall be claimed from Income Tax Department.
    (Note: It would be better for the SRRDA to obtain exemption from payment of income tax.)

  11. Each SRRDA will send monthly consolidated balance sheet to NRRDA by the 15th of the succeeding month.

  12. Each SRRDA will send to NRRDA a statement of closing balance in the Programme Account in the prescribed format by the 5th of the succeeding month.

13.2.5 ACCOUNTING SYSTEM FOR PIUS

13.2.5.1. The PIU entrusted with the task of PMGSY may be a Public Works Division under any Govt. Department like the Public Works Department, Panchayati Raj Department, Rural Development Department etc. or it may be an engineering division under DRDA or District Panchayat. It will be declared ex-officio part of the State SRRDA and it will keep the accounts in the manner described in this sub-section.

13.2.5.2 The PIU will keep three separate sets of books of accounts as follows:

Programme Fund: It will be for the execution of works.

Administrative Expenses: It will be for the administrative expenses given by the Ministry of Rural Development and by State Government.

Maintenance Expenses Account: It will be for maintenance of roads .Funds for this shall be provided by State Governments and the accounts shall be maintained as per guidelines issued by Ministry of Rural Development from time to time

13.2.5.3 Accounting for Programme Funds

  1. Since the PIU will work on Bank authorisation from the State SRRDA, its Cash Book would show the authorisation received and utilised and the balance available. The PIU does not have an independent Bank Account, therefore, its Cashbook will not have a Bank column. Instead it will have a Bank authorisation column. Thus, its Cashbook will have two columns on the receipt side, namely, Cash column and Bank authorisation column to show the cash received or the authorisation received. Similarly, its payment side will have two columns, namely, cash column and Bank authorisation column to show the cash payments and the cheques issued against Bank authorisation.

  2. The PIU will send to the SRRDA a statement of the cheques drawn by it during the month so as to reach the SRRDA latest by the 3rd of the next month.

  3. Moneys received by PIUs by cheques/demand draft/pay orders, etc. against the PMGSY programme shall be deposited by the PIU in the branch of the Bank at its Headquarters in the account of SRRDA. Intimation for such deposit shall be furnished by the PIU to SRRDA in the prescribed form alongwith photocopy of Bank pay-in-slip. On receipt of such intimation the SRRDA shall make an entry oh the receipt side of cash book in ‘Bank’ column by credit to Programme Fund transferred by SRRDA. Programme Fund balance of the PIU shall be reduced. Net debit balance of programme fund of the PIU in the accounts of SRRDA shall be in agreement with the net credit balance in the accounts of PIU.

  4. The PIU shall submit the requisition of funds for the next quarter in the prescribed format to the SRRDA showing the work-wise details and name of contractors/payees, etc.

  5. Contra entry shall be made for the self cheque drawn by PIU on both sides of the Cash Book. On payment side of Cash Book it shall be shown in “Bank Authorisation” column as cash received from Bank.

  6. The advances, if any, to the Contractors would be shown separately as advances. This will mean that that there is no variation between physical progess and the payments made for work done and measured. The expenditure on works will show the actual progress of works.

  7. The material issued shall be debited to the Material at Site account. Such materials on consumption shall be debited to the works concerned by contra credit to Material at Site account.

  8. General Ledger is the most important record for preparing the monthly account. It is a book of final entry containing all the accounts. Its purpose is to bring together all the related financial transactions with uniform account structure. It is the source for monthly account and Balance Sheet.

    Accounts opened in the General Ledger shall correspond to the order indicated in chart of accounts to facilitate preparations of monthly account. Separate ledger folio shall be given for each account code and work. Posting of the ledger shall be made from the Cash Book and transfer entry book. The Ledger shall be balanced at the close of each month and the balance of each account code shall be worked out for the month and to end the month.

  9. Operations Manual for Rural Roads Schedule of Works Expenditure in Form-53 shall be separately prepared for (a) Construction of New Roads; (b) Up-gradation of existing roads; (c) Roadside Plantation; (d) Road sign boards. Expenditure for all the works included in the schedule shall be totalled to work out the total works expenditure for the monthly account and balance sheet. Expenditure on completed works shall be transferred from the Schedule in Form-53 to Schedule in Form-54 . All the schedule have been provided for in the OMMS and can be generated online.

13.2.6 Initial Account Records, Subsidiary Registers, Monthly Account & Balance Sheet for Programme Funds: The PIU and the SRRDA will use the following forms for the Initial Account Records, Subsidiary Registers, Stores & Stock Account Records, Monthly Account and Balance Sheet. The forms pattern is broadly that the Central Public Works Account Code, with deviations sometimes for meeting the requirements of the Programme. Wherever changes have been made in the form of CPWA Code – “R” has been suffixed. The formats are available in the vol. III of Accounts Manual for Programme Funds.

S. No. Name of Record PMGSY Form No. Relevant CPWA Code Form No.
             MONTHLY ACCOUNT & BALANCE SHEET
1. Monthly Account (State) PMGSY-F-1 New
2. Monthly Account (SRRDA.) PMGSY-F-1A New
3. Monthly Account (PIU) PMGSY-F-1B Form-80 / R
4. Annual Account (State) PMGSY-F-1 (Annual) New
5. Annual Account (SRRDA) PMGSY-F-1A (Annual) New
6. Balance Sheet Monthly (State) PMGSY-F-2 New
7. Balance Sheet Annual (State) PMGSY-F-2annual New
8. Balance Sheet Monthly(SRRDA) PMGSY-F-2A New
9. Balance Sheet Annual (SRRDA) PMGSY-F-2Annual New
10. Balance Sheet Monthly (PIU) PMGSY-F-2B New
             INITIAL ACCOUNT RECORDS
11. Cash Book of SRRDA PMGSY/IA/F-3 Form-1 / R
12. Cash Book of PIU PMGSY/IA/F-3A Form-1 / R
13. Register of Cheques Received and Adjusted PMGSY/IA/F-3B Form 1A/R
14. Imprest Cash Book PMGSY/IA/F-4 Form-2
15. Money Receipt Book PMGSY/IA/F-5 Form-3 / R
16. Payment Voucher PMGSY/IA/F-6 Form-28/ R
17. Transfer Entry Book PMGSY/IA/F-7 Form-54 / R
18. General Ledger (Debit) PMGSY/IA/F-8 Form-61 / R
19, General Ledger (Credit) PMGSY/IA/F-9 Form-61 / R
20. Ledger for Funds Transferred by E.A./ GOI to PIU PMGSY/IA/F-10 New
21. Running Account Bill PMGSY/IA/F-11 Form-26 / R
22. Account of Secured Advance PMGSY/IA/F-12 Form-26A / R
23. Account of Advance against Machinery PMGSY/IA/F-13 New
24. Indenture for Secured Advance PMGSY/IA/F-14 Form-31 / R
25. Record Measurement Book PMGSY/IA/F-15 Form-23
26. Bill Measurement Book PMGSY/IA/F-16 New
27. Transfer Entry Order PMGSY/IA/F-17 Form-53
28. Contractor’s Ledger PMGSY/IA/F-18 Form-43 / R
29. Register of Works PMGSY/IA/F-19 Form-40 / R
30. Register of Departmental Works PMGSY/IA/F-19A Form 43A/R
31. Detailed Completion Report PMGSY/IA/F-20 Form-44
             SUBSIDIARY REGISTERS
32. Register of Statutory Deductions from Contractors/ Suppliers PMGSY/SR/F-21 Form-67
33. Register of Deposits Repayable PMGSY/SR/F-22 Form-67
34. Register of Miscellaneous Works Advance PMGSY/SR/F-23 Form-67
35. Register of Sale of Tender Forms PMGSY/SR/F-24 New
36. Register of Tenders Received PMGSY/SR/F-25 New
37. Register of Contract Agreements PMGSY/SR/F-26 New
38. Register of Interest Bearing Securities / Bank Guarantees PMGSY/SR/F-27 Form-85 / R
39. Account of Interest Bearing Securities PMGSY/SR/F-27A Form 86
40. Register of Measurement Books PMGSY/SR/F-31 Form-92
41. Register of Cheques/ Receipt Books PMGSY/SR/F-32 Form-52
42. Register of Miscellaneous Recoveries PMGSY/SR/F-32A Form 95
43. Register of Term Deposits PMGSY/SR/F-33 New
44. Ledger of Term Deposits PMGSY/SR/F-34 New
             STORE AND STOCK ACCOUNT RECORD FOR DEPARTMENTAL EXECUTION
45. Goods Received Sheet PMGSY/SS/F-35 Form-8A
46. Summary of Stock Receipt PMGSY/SS/F-36 Form-9
47. Stores Indent PMGSY/SS/F-37 Form-7
48. Summary of Indents PMGSY/SS/F-38 Form-10
49. Register of Indents PMGSY/SS/F-38A Form 7A
50. Bin Cards PMGSY/SS/F-39 Form-8
51. Priced Store Ledger PMGSY/SS/F-40 Form-12
52. Register of Goods Received Sheet PMGSY/SS/F-41 Form-12A
53. Register of Bin Cards PMGSY/SS/F-42 Form-12B
54. Sale Account form PMGSY/SS/F-42A Form 19
55. Statement of Receipts, Issues and Balance of Road Metal PMGSY/SS/F-42B
56. Register of Materials at Site Account PMGSY/SS/F-43 Form-35
57. Register of Issues from Material At Site Account PMGSY/SS/F-44 Form-35
58. Register of Materials Issued to Contractors PMGSY/SS/F-44A Form-35A
59. Register of Advances to Suppliers PMGSY/SS/F-45 New
60. Register of Purchases-Suspense PMGSY/SS/F-46 Form-67
61. First & Final Bill PMGSY/SS/F-47 Form-24
62. Muster Roll PMGSY/SS/F-48 Form-21
63. Register of Unpaid Wages PMGSY/SS/F-49 Form-21A
64. Register of Muster Rolls PMGSY/SS/F-50 New
65. Register of Scrap PMGSY/SS/F-51 New
66. Hand Receipt PMGSY/SS/F-51A Form 28
67. Bill for Refund of Lapsed Deposit PMGSY/SS/F-51B New
             SUPPORTING SCHEDULES WITH MONTHLY ACCOUNT/ BALANCE SHEET
68. Bank Reconciliation Statement PMGSY/SCH/F-52 Form-51 / R
69. Schedule of Programme Funds received PMGSY/SCH/F-52A New
70. Schedule of Incidental Funds/Misc. Income PMGSY/SCH/F-52B New
71. Schedule of Deposits Repayable PMGSY/SCH/F-52C
72. Schedule of Current Liabilities PMGSY/SCH/F-52D
73. Schedule of New Roads Constructed PMGSY/SCH/F-53E
74. Schedule of Up-gradation of Roads PMGSY/SCH/F-53E
75. Schedule of Other Expenditure on Roads PMGSY/SCH/F-53F
76. Schedule of Current Assets PMGSY/SCH/F-53G
77. Funds Reconciliation Statement (Funds in Transit) PMGSY/SCH/F-55 New
78. List of Schedules to be Annexed with Balance Sheet of PIU PMGSY/SCH/F-56 Form-83 / R
79. Schedule for Statutory Deductions from Contractors /Suppliers PMGSY/SCH/F-57 New
80. Schedule for Deposits Repayable PMGSY/SCH/F-58 New
81. Schedule for Incidental Receipts PMGSY/SCH/F-59 New
82. Schedule for Cash Balance PMGSY/SCH/F-60 New
83. Schedule for Materials At Site PMGSY/SCH/F-61 New
84. Schedule for Miscellaneous Works Advance PMGSY/SCH/F-62 New
85. Schedule for Advances to Contractors / Suppliers PMGSY/SCH/F-63 New
             GENERAL
86. Requisition for Funds PMGSY/GEN/F-64 New
87. Bank Authorisation PMGSY/GEN/F-65 New
88. Monthly Statement of Cheques issued by PIU against Bank Authorisation PMGSY/GEN/F-66 New
89. Advice for Amounts Deposited by PIU in Bank Account 97of SRRDA PMGSY/GEN/F-67 New

13.2.7 The Monthly Account will be compiled from Cash Book, the Ledger and Schedule for Works Expenditure in the following format:

Pradhan Mantri Gram Sadak Yojana
Monthly Account (for PIU)

Name of PIU_____________
Month________________200                                                                                                         PMGSY/F-1B

Account Code No Head of Account Ledger Folio Debit balances
To end of Previous Month For the Month To end of Month (4+5)
1 2 3 4. 5 6
1.05 Bank Authorisation Account
6.01 Cheques/Demand Drafts etc. received by PIU
6.02 Cheques/Demand Drafts etc. transferred by PIU to SRRDA
11.01 Expenditure on construction of New Roads A – In Progress Sch/F-53
B – Completed Sch/F-54
11.02 Expenditure on Up-gradation of Existing Roads
A – In Progress Sch/F-53
B – Completed Sch/F-54
11.03 A – In Progress Sch/F-53
B – Completed Sch/F-54
11.04 Expenditure of Road Sign Boards
A – In Progress Sch/F–53
B – Completed Sch/F–54
12.01 Expenditure on Materials At Site for Construction of New Roads
12.02 Expenditure on Materials At Site for Up-gradation of Existing Roads
13.01 Store and Stock
14.01 Miscellaneous Works Advance against Contractors
14.02 Miscellaneous Works advance against Staff
15.01 Cash in Chest CBF*
15.02 Imprest With Staff
17.01 Advance payment to Contractors
17.02 Materials issued to Contractors
17.03 Secured Advance against Materials
17.04 Mobilisation Advance
17.05 Machinery Advance
17.06 Advance to Suppliers
17.07 Other Advances
19.01 Tax deducted at source
TOTAL
*Cash Book Folio

Notes:

  1. Cash in chest “to end of the month” shall be the closing balance as shown in the Cashbook. Cash Balance for the month shall be worked by deducting the balance “to end of the previous month” from the balance “to end of the month” i.e. column 6 minus column 4.

  2. Schedule for Works expenditure (Work in progress)/(completed works) shall be enclosed with the monthly/annual account.

  3. Vouchers shall be retained by PIU for Audit

  4. Completed works shall be transferred from Sch/F–53 to Sch/F–54

Pradhan Mantri Gram Sadak Yojana
Monthly/Annual Account (for PIU)

Name of PIU_____________
Month________________200                                                                                                         PMGSY/F-1B

Account Code No Head of Account Ledger Folio Debit balances
To end of Previous Month For the Month To end of Month (4+5)
1 2 3 4. 5 6
1.03 Programme Funds Account
1.06 Incidental funds generated from interest and net incidental receipts (under the old system)
21.02 Forfeiture of Earnest Money Deposit
21.03 Fines, Forfeitures, Penalties etc.
21.04 Any Other Non-refundable deduction from Contractors/ Suppliers
21.05 Miscellaneous receipts
2.01 Income tax from Contractors/Suppliers
2.02 Commercial/Sales/Entry Tax from Contractors/Suppliers
2.03 Any other Statutory deduction
3.01 Earnest Money Deposits
3.02 Security Deposit from Contractor/Suppliers
3.03 Sums due to Contractors on closed Accounts
3.04 Miscellaneous Deposits
4.01 Purchases (Suspense)
21.02 Forfeiture of Earnest Money Deposit
21.03 Fines, Forfeitures, Penalties etc.
21.04 Any Other Non-refundable deduction from Contractors/ Suppliers
21.05 Miscellaneous receipts
TOTAL
Notes: Total amount of incidental receipts shall be credited to Incidental Funds generated from interest etc. in the annual account.

13.2.8 The monthly balance sheet from 1st April 2002 shall be prepared from the monthly account in the following format:

Pradhan Mantri Gram Sadak Yojana
Monthly/Annual Account (for PIU)

Name of Unit(PIU)_____________
Month________________                                                                                                         PMGSY/F–2B

Liabilities Amount Assets Amount
1. Programme Fund Control 1. Cash Balance
(i) Cash in Chest
(ii) Imprest with Staff
2. Incidental Funds generated from interest and net incidental receipts 2. Bank Authorisation account
3. Payables
(a) Statutory Deductions
form Contractors/ Suppliers
(b) Deposits repayable
3. Cheques/Demand Drafts Received by PIUs
4. Purchases-Suspense 4. Cheques/Demand Drafts Transferred to NA
5. Deposits with State Govt.
6. Construction of New Roads
A. In Progress (Sch/F-53)
B. Completed (Sch/F-54)
7. Upgradation of existing roads
A. In Progress (Sch/F-53)
B. Completed (Sch/F-54)
8. Roadside Plantation
A. In Progress (Sch/F-53)
B. Completed (Sch/F-54)
9. Roadside Sign Boards
A. In Progress (Sch/F-53)
B. Completed (Sch/F-54)
10. Materials At Site (Sch/F-61)
11. Stores and Stock
12. Miscellaneous Works advance (Suspense)
13. Advances to Contractors/] Suppliers
Enclosures: Schedule of Works Expenditure (Sch/F–53 & 54)

13.2.9 Accounting for Administrative Expenses Funds: Accounting for Administrative Expenses Funds is on the same principles as for the Programme Funds, with minor changes. Its Cash Book will also have a Bank authorisation column.. Chart of accounts Administrative Expenses Funds is given in 13.2.3. The Empowered Officer will intimate the Bank whether or not the PIUs will be the Authorised Payees for the amounts/cheques released by the Autonomous Agency. There is no objection if the other administrative funds of the Autonomous Agency including miscellaneous receipts and State Government grants are also held in the same account provided they are subject to the same procedure including computerisation. Other programme and maintenance funds of the State Govt. handled by the Agency shall not, however, be kept in this account.

13.2.10 Accounts procedure for Expenses: All the payments for various expenses like travel, stationery etc., after being recorded in the cash book, shall be posted to the relevant heads of accounts in the Ledger of Debit Balances. At the end of the year, the amount will be transferred to the Income and Expenditure Account, to close the balance to a nil amount. This will be done through a transfer entry. The net effect of the transactions in the Income and Expenditure Account will be transferred to the Central (or State) Administrative Expenses Fund, which will then appear in the Balance Sheet.

13.2.11 Accounts Procedure for Assets:The expenditure or purchase of assets will be booked to assets account and not carried to the Income and Expenditure Account. Assets will be shown in the Balance Sheet.

13.2.12 Ledger of Debit Balances: All the transactions appearing on the credit side of the Cash Book, or in the Debit column of the Transfer Entry Book will be posted in the debit column of the relevant head of account in the General Ledger. All the transactions appearing on the debit side of the Cash Book, or in the credit column of the Transfer Entry book will be posted in the credit column of the relevant head of account of the General ledger.

13.2.13 Initial Accounting Records, Subsidiary Registers, Monthly Account & Balance Sheet for Administrative Expenses Funds: The PIU and the SRRDA will use the forms for the Initial Account Records in the form of ledger accounts, and such registers for administrative expenses as are laid down by the State Government. The PIU will also prepare a Monthly Account and Balance Sheet in the form given overleaf:

Pradhan Mantri Gram Sadak Yojana
Monthly Account of Receipts and Payments (for PIU)
Administrative Expenses Fund

Name of Unit (PIU)_____________
Month________________200

Account Code No Head of Account Ledger Folio Debit balances
To end of Previous Month For the Month To end of Month (4+5)
1 2 3 4. 5 6
51.08 Bank Authorization Accountant
54.01 Travelling expenses
54.02 Telephone Expenses
54.03 Maintenance of Computers
54.04 Internet Expenses
54.05 Data Entry Costs
54.06 Other Office Expenses
54.07 Quality Monitoring Expenses
54.08 Bank Charges
54.09 Any other expenses with approval of MoRD
54.10-54.19 Expenses approved by the State Government to be incurred from Funds it provided.
54.20-54.24 Assets expenses allowed by the MoRD ( i.e., computers).
54.25-54.30 Assets expenses allowed by the State Government.
56.02 Miscellaneous Advances
52.01 Cash in chest CBF
52.02 Imprest with Staff
TOTAL

Accountant                                                                                                         Officer-in-Charge/PIU

Pradhan Mantri Gram Sadak Yojana
Monthly Account of Receipts and Payments (for PIU)
Administrative Expenses Fund

Name of Unit (PIU)_____________
Month________________200

Account Code No Head of Account Ledger Folio Debit balances
To end of Previous Month For the Month To end of Month (4+5)
1 2 3 4. 5 6
51.03 Central Administrative Expenses Fund received from SRRDA.
51.08 State Administrative Expenses Fund received by PIU from SRRDA
51.09 Incidental funds generated from Interest and net incidental receipts.
55.02 Miscellaneous Receipts
56.03 Unpaid bills
56.04 Deposits Repayable
TOTAL

Accountant                                                                                                         Officer-in-Charge/PIU

Note:- Amount of incidental receipts shall be credited to Incidental funds generated from Interest etc. in the annual account.

Pradhan Mantri Gram Sadak Yojana
Monthly/Annual Balance Sheet
Administrative Expenses Fund
As on____________________________

Name of Unit (PIU)_____________
AS ON___________________

CAPITAL FUND AND LIABILITIES
Central Administrative Expenses Fund
State Administrative Expenses Fund

Incidental Funds (from interest and other receipts)
Misc. Income
CURRENT LIABILITIES
Schedule Amount
1 ---
1 ---
2 ---
2 ---
---
Deposits Repayable 3 ---
Unpaid Bills 4
TOTAL 5
ASSETS
Miscellaneous Advances
Cash in Chest
Bank Authorisation
Imprest with Staff
---
---
---
---

The same procedure as for Programme Funds will be adopted for preparing the balance sheet as on the 31st December, 2002 and its incorporation in the accounts.

13.3 REPORTING AND MONITORING

13.3.1 For PMGSY works, it is mandatory to maintain the progress of expenditure on each of the major activity (called sub-head) of the works.

13.3.2 The C-DAC Pune has already made a provision for this in its software. It requires a public works division to fill, in the prescribed format, the activity-wise details when entries of payment of the Contractor’s claims are made in the online cash book. The following format of abstract of activities is recommended. This format should be part of the Contractor’s claim. Its details are:

  1. Earthwork
  2. WBM and hard shouldering work
  3. B.T. work
  4. Road furnishing work
  5. CC Road and Protection wall
  6. Cross Drainage work.

13.3.3 The Balance Sheet of the public works division will show the following information:

Liabilities Amount Assets Amount
1. Programme Fund Control Account PIUs

2. Incidental funds generated from interest and net incidental receipts

3. Payables
(a) Statutory Deductions from contractors/ Suppliers
(b) Deposits repayable
1. Construction of new roads

(a) In progress (Sch/F-53)
(b) Completed (Sch/F-54)
2. Upgradation of existing roads
(a) In progress (Sch/F-53)
(b) Completed (Sch/F-54)
3. Roadside Plantation
(a) In Progress (Sch/F-53)
(b) Completed (Sch/F-54)
4. Purchases-Suspense 4. Roadside Sign Boards
(a) In Progress (Sch/F-53)
(b) Completed (Sch/F-54)
5. Advances to Contractors
6. Material Issued to Works
7. Stores and Stock
8. Material Issued to Contractors
9. Deposits with State Govt. and others (for past balances)
Cash and Bank Balances
10. Cash in hand
11. Cash with Bank
12. Bank Authorisation
13. Imprest with Staff

The Balance Sheet has separate schedules showing the expenditure on each work. The Schedule will also show, whenever required, activity wise expenditure. Thus, the total expenditure on each work can be known at the end of each month.

13.3.4 Externally funded projects:- For externally funded projects, the funding agency meets part of the expenditure. It requires a funds flow statement both for the projects it funds, and other projects. Therefore, the expenditure on the road construction will need to be divided into two parts: roads funded by the Funding Agency and other works. The balance sheet will reflect the expenditure on the roads funded by the funding Agency as separate line expenditure.

13.4 AUDIT

13.4.1Statutory Audit: The Comptroller and Auditor General of India (CAG) is the auditor for Government accounts. He also audits the accounts of bodies receiving grant or loan if the amount from Government of India and State is more than Rs. 25 lakhs and not less than 75 percent of its total expenditure [Section 14 (1) of the Comptroller and Auditor General (Duties, Powers and condition of Services] Act, 1971. Therefore, all the funds received by the State level Rural Roads Development Agency will fall in his audit jurisdiction.

The SRRDA will also appoint its own auditors from the panel of Chartered Accountants the CAG maintains for the audit of Government companies. The auditors may be appointed for not more than 3 years at a time, with the approval of the Executive of the SRRDA. It may be ensured that the Audited Accounts are approved by the General Body of the SRRDA by 30th September, and printed along with the Annual Report.

The PIUs will function as ex-officio officers of the SRRDA. Therefore, their accounts will form part of its accounts, and thus subject to audit by the CAG and the Chartered Accountants.

13.4.2 Internal Audit: Internal audit can be entrusted to independent auditors. The SRRDA will appoint the independent internal auditors. The general methodology of the selection will be similar to that of selection of Statutory Auditors. The selection should be from a panel of auditors obtained from the office of the C&AG of India and approved by the State Government (Nodal Department).

13.5 ORGANISATIONAL SET-UP

At the central level, the NRRDA shall be responsible for the compilation of activity-wise progress reports of the PMGSY and the use of the funds.

At the State level, the SRRDA shall maintain the PMGSY accounts, prepare Balance Sheet, maintain ledger account of each PIU and reconcile each month the Bank account and PMGSY programme account. In order to install the new accounting system it is essential that each SRRDA have in place a Financial Controller and a Senior level Accountant having experience in works accounts. Each PIU should also have one Divisional Accounts Officer / Divisional Accountant.

13.6 PROCEDURE FOR RELEASE OF PROGRAMME FUNDS TO THE SRRDA

13.6.1 Since the PMGSY has adopted a Project approach where road works have to be completed within a stipulated time-limit, the cost of the projects for a State for each Phase of the PMGSY will be made available to the SRRDA in two instalments.

13.6.2 The first instalment amounting to 50% of the cleared value of projects, (for annual allocation whichever is lower) shall be released subject to fulfilment of conditions, if any, stipulated earlier.

13.6.3 Since the cost of only the contracted works have to be paid, the second instalment would be calculated on this basis, and would be equal to the balance due on the cost of the awarded works. Release would be subject to utilisation of 60% of the available funds and completion of at least 80% of the road works awarded in the year previous to the preceding year and 100% of the awarded works of all the years preceding that year, and fulfilment of other conditions, if any, stipulated while releasing the previous instalment. Works cleared and not awarded by the time of the 2nd instalment would be deemed as lapsed. Available funds will be the funds available with the SRRDA on 1st April of the Financial year (including interest accrued) plus the amount of the instalment released, if any, during the Financial Year.

13.6.4 The release of the second instalment in a year shall be subject to submission of the following documents:

  1. Utilisation Certificate for the funds released earlier, year-wise in the form prescribed.

  2. Certificate by the Bank Manager indicating the balance amount on date of issue of the Certificate and the interest credited.

  3. A Certificate regarding the requisite physical completion of works.

  4. 217 Operations Manual for Rural Roads For all releases after October of a year, production of an audited Statement of Accounts and a Balance Sheet and related Statements, duly certified by the Chartered Accountant for the accounts of the previous financial year.

  5. Outputs of the relevant modules of the OMMS, duly certified by the SRRDA as being correct.

13.6.5 For the purpose of releasing funds, the State would be the Unit.

13.6.6 The estimation of expenditure and of completed road works will be based on data entered in the OMMS.

13.7. PROCEDURE FOR RELEASE OF ADMINISTRATIVE EXPENSES FUNDS

13.7.1 At the District level, the Programme will be co-ordinated, and implemented through a dedicated Programme Implementation Unit (PIU). All PIUs will be manned by competent technical personnel from amongst the available staff or through deputationists. In exceptional cases and with the prior approval of NRRD, Consultants may be engaged to build up or enhance capacity. NRRDA’s Model documents shall be used for the purpose.

13.7.2 All staff costs will be borne by the State Government. The Pradhan Mantri Gram Sadak Yojana does not provide for any staff costs. However, the administrative and travel expenses of PIUs and SRRDA costs will be met to the following extent, with the State Government bearing any additional costs:

Item % of funds released
(a) Admin. Expenses for PIUs 1.00%
(b) Travel Expenses of PIUs 0.50%
(c) Admin. & Travel Expenses (SRRDA) 0.25% (Rs. 25 lakh maximum)
(d) Independent Quality Monitoring 2nd tier 0.50%

For this purpose:

  1. Administrative expenses shall, in addition to usual office expenses, include all expenses incurred in relation to the operation of the OMMS computers and their maintenance, including internet charges and data entry costs. Amounts paid on account of outsourcing of execution and management related functions may also be paid out of administrative expenses within the limits prescribed. However, expenditure on purchase of vehicles, payment of salaries & wages and purchase or construction of buildings is not permissible.

  2. The amounts shall be released to the SRRDA along with programme fund releases. The SRRDA shall further allocate the amounts (by way of limits set by the Empowered Officer) in respect of sl.no.a) & b) to PIUs generally in proportion to the funds released to them, also keeping in view the actual pace of work and requirement in the PIUs.

  3. In case works lapse or are dropped at a later stage, necessary adjustment will be made while releasing the next tranche of expenses.

  4. Funds for the purpose will be kept in a separate account (‘Administrative Account’) operated in a manner similar to the programme account (see Para 18 of the NRRDA Guidelines Nov. 2004). State Government funds for administrative expenses and incomes of the Agency used for administrative purposes may also be kept in the same account, but no other funds shall be credited to the account nor shall the account be used other than for defraying admissible administrative, travel and quality monitoring expenses.

  5. The releases of administrative and travel expenses shall be dependent on:

    • Continued updating of OMMS modules.
    • Appropriate dedication of the PIU and its clear linkage to the SRRDA;
    • Adequate institutional mechanism at the SRRDA level including nodal IT officer, State Quality Coordinator, Financial Controller and Empowered Officer.

13.7.3 No Agency charges will be admissible for road works taken up under this Programme. In case Executing Agencies levy charges in any form, such as Centage charges etc., it would have to be borne by the State Government.

13.8 UTILISATION CERTIFICATE

13.8.1 From 2003-04 onwards, each State will be treated as one Accounting Unit since the funds were released to single account of the State. As such from 2003-04 onwards the requirements are:-

  1. One Utilisation Certificate for the Programme Account and one single Utilisation Certificate for Administrative Account upto 31st March of each year.
  2. An interest accrual Certificate for each of the 2 accounts and.
  3. A certificate of closing balance in the accounts as on 31st March each year for each of the two accounts.
  4. Audit Report of the year.

Operations Manual for Rural Roads The format to be used for submission of the utilisation certificate of the programme and administrative expenses funds will be as specified from time to time.

     


Operations Manual for Rural Roads