OUTLINE OF P.W.D. SYSTEM OF
ACCOUNTS
Necessity of a system of
account: -
Public Works Department have to undertake execution of works of many types’
e.g.- (civil buildings, and roads), irrigation works, navigation works,
drainage works, embankment works and so forth. The annual cost of such works
all over India runs into hundreds of crores rupees. The works are scattered all
over the country and Lacs of people are entrusted with their supervision,
payments and maintenance of accounts. It is therefore essential that a
systematic way should be followed in keeping the accounts of all these works so
that there may be effective checks and no complications or losses may occur.
The systematic way of maintaining the accounts of the works is known as the
P.W.D system of accounts.
P.W.D system of Accounts: - The most important principles laid
down for this system of accounts are:-
[1] All the transactions, whether of
income or of expenditure, have to pass through certain specified heads of
accounts.
[2] A certain specified procedure is to
be followed in the entire accounting, which lays down the responsibility for
receipt drawings and depositing of money, spending it and maintaining accounts
according to rules, on the Divisional Officer.
Features of the P.W.D
system of Accounts: - The public work account has the following main features:-
[1] The Divisional Officer is the
primary Disbursing officer (Disbursing means “Paying out: and disbursing
officer means that officer, who is authorised to draw money and make payments.)
Of the division, who is permitted to obtain by cheques on the treasuries or the
Reserve bank (which includes State bank also) the funds require for all
disbursements in connection with the execution of work.
[2] The account of these receipts and
disbursements (including the transactions of subordinate’s officials acting on
his behalf) are compiled under his supervision By the Accountant posted to his
office by the Accountant general and are submitted monthly to the accountant
General.
[3] He is further required to maintain
clear accounts of all stores received by him and to make these accounts
available for audit by the Accountant General.
[4] Under each major head of
expenditure, the charges of each project, work, or sub-work are recorded
separately in the accounts of Divisional Officer.
[5] In the case Central Public Works
Department in exceptional cases, where civil treasuries are not conveniently
situated, Public Works Officers are placed in account with Military Treasury
chests.
CLASSIFICATION OF
TRANSACTIONS:
Necessity of maintaining
the accounts by Head of Accounts: - In the democratic form of Government, the Legislature has
entire control over the finances of a government. This control is exercised by
passing the budget estimates of the Government for a financial year. The budget
estimates show all the anticipated income of the Government under the head
‘Revenue’ and the expenditure on works of different categories as ‘Grants’. The
entire Revenue, which is realized, has to be credited under the head ‘Revenue’,
while expenditure can be incurred only against a ‘Grant’ voted by the
Legislature or against the sum provided under the budget estimates of the
Government concerned to meet “the expenditure charged on the revenues” or “non
voted expenditure”.
Head of Accounts: - According to their nature, all the
transactions of Public Works Offices can be grouped under the following four
heads.
[1] Expenditure Heads: - These include charges (here charges
means items of expenditure) which are finally included in the accounts of
Divisional Officers.
[2] Revenue Heads: - These include revenue receipts, which
are finally credited to thaze Revenue of the Government concerned in the
accounts of Divisional Officers.
[3] Remittance Heads: - These include receipts and payments for
cash, stores or other values, received from, or paid to or on behalf of, other
divisions, departments or Governments.
[4[ Debt Heads:- These include certain receipts and
payments, held in suspense till such time as they are cleared by payment or
recovery (as the case may be) in cash or otherwise.
The above groups are further divided for purpose of
accounts. In the case of Expenditure and Revenue Heads, the main unit of
classification is known as the major head. A major head is divided into minor
heads, each of which is further divided into detailed heads. In some cases,
minor heads are divided into sub-heads, which are again divided into detailed
heads.