1. 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

2. 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
produce
month’s
them
account
to
the
audit
and
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.
booking
of
This mitigates all the problems in
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
spent
for
the
the
amount
works
will
under
be
the

3. impression
available
that
under
the
amount
CAMPA
and
is
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
maintain call deposit register.
Accounts
Officer,
IA,
to
The
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
Due date for
completion
Actual date
of
completion
EMD
collected
@2.5%
7
8
9
13
14
15
16
17
Remarks
of
Orders
DFO
12
liability
11
Defect
period
10
Signature of the
contractor
of
Date
agreement
6
Amount
released/forfeit
ed
Agreement
amount
5
the
Works
entrusted
on
nomination/
tender
4
Remarks/report
of the FRO after
liability
defect
period
Name of the
work
3
Balance
(EMD+FSD)
S.O.no
2
released
FSD
with final bill
@5%
1
FSD collection
@ 7.5%/ 3%
Sl. no
by contractor/work wise.
18

4. 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
Conservator
on
of
nomination,
Forests
permission
to
execute
is
being
the
accorded
works
by
under
the
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.

5. 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.

6. 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

7. 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 15 th 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.

8. 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

9. 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

10. 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 Incharge 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.

11.  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 Incharge 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.

12. 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.

13. 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.

14. 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.

15. 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 checkmeasurement 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.
The contents mentioned in the previous page of M. Book are not
being brought forward in the next page.
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.
In respect of works costing more than Rs.5.00 lakhs, 30% of the
works has to be check-measured by the DFO.
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.

16. 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 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.
In respect of works costing more than Rs.5.00 lakhs, 30% of the
works has to be check-measured by the DFO.
The contents mentioned in the previous page of M. Book are not
being brought forward in the next page.
Vague recording of entries in the M. Book is not permitted. 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 check-measurement of the FRO is not done up to the
required percentage.

17. 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.

18. 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 / checkmeasurement 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.

19.  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
completed
authority
buildings
be
obtained.
respect
in
should
of
new
Likewise,
constructions
the
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