Reference en of CHAPTER-1 caapren—2 mussaay) i contents ue Preface Contents Use ‘FART 1 - PROCEDURES ORGANIZATION OF INTERNAL AUDIT DIVISION = Organtzation = Functions = Scope = Audit Parties - Composition and Duties = butt Programme = Anditable Documents = Results of Inspection ~ Discussion of Audit Objections with offi- cers incharge of offices inspected = Submission of Inspection Reports to Deputy Chief Auditors Submission of Summaries to Deputy Chie Auditors = Settlement of Audit objections = Adsinistration of Audit Parties AUDIT OF CASH ACoOUNTS i = General = Custody end escorting of Cash ry 2 2 25 6cheques Receipts Paynents Vouchers Payee's Acknowledgement cash Books: mprest Cash Book Superscribed Cheques Miscellaneous Receipts Cash Books Audit of Cash Books HNPTER-3 AUDIT OF WoRKS_accouwrs Categories of Works Method of Control and Syaten of Accounting Adaiatetrative Control Testinteal Control Financial Control Sanction of Estimates Regularisetion of Excess Expenditure through Appropriation Accounts Audit of Adnintatrative Approval and Tech= ical Sanetion Method of Execstion of Works Daily babour/Morkeharged Staff and rela~ ted record i.e. Muster Roll Type of Contracts Work Orders ‘Tenders for Horks renderg, their Circulation aid Opening @Conditions of Acceptance of Tenders Earnest Money Tenders/Quotations for Local Purchase of Stores etc. and Conditions of their Accep~ Amendment of Contracts Audit of Muster Roll Audit of Tenders and Related Record Measurement Books and Instructions for their Maintenance Electrical Measurement Books Small and Check Measurement Books Standard Measurement Books Stock Measurement Books Review of Measurements Goods Received Notes Audit of Measurenent Books and Goods Received Notes Advances to Contractors Security Deposit Issue of Stores to Contractors Deductions from Goatractor Bills for Mate- rial Sesued Liquidaced Damages Audit of Advances to Contractors, Security Deposits, Material issued to Contractors and Deductions for Liguidated Damages Contractor Bilis Contractor Ledgers Works Abstract and Register of Works Suspense Accounts any 38 38 60 6 66 66 6 os a oa “6 n 2 8 m ” 16 9 80 aReview of Register of Works Audit of Contractor 8111 ‘Audie of Contractor Ledger Audit of Works Register CHAPTER- —qUDIT OF STORE ACCOUNTS = Receipt of Stores Issue of Stores Stock Adjustnents Store House Records Direct Purchases and Related Records Linking of Receipts and Issues of Stores in Store Houses Functions of Concurrent Check Auditor Functions in Deputy Chief Auditor Office Functions of Audit Parties Linking of Stores received from Contractor Checking of Stores dravn for Final Con Audit of Stock Ledgers Audit of Store Account Accounting of Packing Material Common Irregularities in Store Accounts Physical Vert #ication of Stores Duties of Stock Verstier Physical Check of Material Installed at Site of Work Stock Verification Report Joint Examination of Discrepancies Adjustment of Surpluses and Shortages aw0 » » » ” >) 1; ORGANIZATION OF INTERNAL AUDIT DIVISTON ‘ORGANIZATION OF INTERNAL AUDIT DIVISION toh ene Anternal Audit Division, headed by a Chief Auditor, te responsible arant jtuthority for the examination of accounte and related reverts of MUM Formations. However, ‘the accounts of Pover, and Vater Preiece, Setting ‘over Re.2 crores “are preaudited by Director WAPDA Acco oe Fepresentative of the Auditor General of Palistens these projects/offices 8 8 special case when considered sation chart of Internal Audit Division de given in sizsston Stitt of WAPDA formations carried out by Internal Audit taragion ts known as Internal Audit and 16 conducted through the follovicg three types of audit parties. (4) Local Audte Parties (LAPs) These Parties audit the elect rFicity consumer bills/records tained by Revenue Officers (P) WAPDA, (4) Test check Parties (tePs) Parties audit the accounts maintained by sub divisto Andependent sub offices of the £.0.8. of Power Wing. (443) audit Parties (APs) These Parties audit (a) the accounts of the offices of XENe and all other offices of Distribution Branch of Poves Wines Sub-Divisionsl Accounts and ali ‘of Water Wing. G.S.0. Organization, Byéel/ Thermal Gas Pover Stations and Comon Services, 3 air TE, MEernal Audie of Revenue Offices, Sub Divistonal Offices Io" ci ether offices under the control of General Manager (Distribetton) Maietrrted Out under the supervision of the respective. Deraty erie Auditor posted in each Region/AcE-B,Lud the Toternal Audit of Divistonel Accounts, Sub-Divistonal Accounss 14 say Uiner offices of Water Wing, 6.8.0. Organtzation, Bydel/Therse! god all otpercjons and Common Services is carried out by Audit Fartion Gas ported by Deputy Chtef Auditor (Special Audit and Head Quarter) 15 Local Audie Parties, Test Check Partion and Audit Partise Sre LZ, ene Sibintetrative control of thei respective Beputy Chief Auditors weer Nor transfer of staff outeide Togion. The Regional Deputy Chist re erie the appointing authority. for the staff eaployed under chew Audttort (re. apto audit Clerk, therefore, competent for their promos ton wet or ae aad eating disciplinary action against them under WAFDA Eff Cleney and Discipline Bul 1.6 The Internal Audit Division is also responsible for coordinating 1S tes SE MAPDA to the report of the Auditor General of Pakistan on, the replies of othe huchority £0 be discussed by the Public Accounts Committee ae eat caving replies to the Draft/Advance Paras prepared by the Director and for WaPDA Hudit after obtaining replies from the executive offices. 1.7 Yor this ‘a Draft Para Section hes been created in the dures of the Chief Auditor. Peripatetic teams are also sanctioned ¥y Office ity in order to assist the executive in settlement of Inspection Reports by Director General WAPDA Audit. 2. ‘FUNCTIONS OF It 7 DI 2a te carrying out audit, Internal Audit Division has, to anmure 2d rule sal pedere framed/adopted by the Authority from time to tine foe crecetion with execution of works, pay and allovance! in connectfatentace of various accounte,books etc. are followed by cnc ted the defects and irregularities noticed in re tectified ae far sn possible. Besides the Authority REP ESiletcatiy order, the Taternal Audit Division (a) to examine te MY oiised ond new procedure with e view to find out their adequsct/95 a eeeer tte, and advise the Authority regarding improvenents therein, (>) othervias that financial rules and ordere satiofy the provisions of the to eet scr therefore, free from audit objections, and chese rules end orders are followed. Te de not otherwise the function of Internal Audit to prescribe att such roles sod orders should be or to suggest their administrative application. 2.2 ‘The tuthority has laid dova that the Internal Audit Division 2:2 dd covey out precentage and test checks of the accounts and boots dave aT Ly WADA, formations of Power, Mater and Common Services. Theos checks “are quarterly, half yearly and yearly #6 under: (a) ALL Mayenne Offices are (Prior to.1.7.1978 these: were faudived quarterly. audited annually)‘ing the iby tho (44) AN Sub-Divisions of (Prior to 1.71978 these were Operation Branch of Pover audited b1-anavally) Wing are audited half yearly. (444) AU1 other formations and offices are audited annu- ally. 2.3 During the course of scrutiny of accounts and transactions of WAPDA, Internal Audit 1s entitled to make such queries and obsevations and to call for such vouchers, documents (including confidential. docu ents), statements returns, ete, and explanations in relation to then 23 it my’ const: wry’ in the interest of proper discharge of ite duties. The language of all queries and observations shall be eiuple and to the potne. 3. SCOPE OF INTERNAL AUDIT Bel The scope of Internal Audit as prescribed by the Authority is as (a) Revenue offices (which are audited on (A) 12 check of general con- quarterly basis). suners in each month #0 fas to cover every cons fuer with bill above Re. 200 (41) 100% check of comercial consumers in each month. (411) 100% check of industrial, tubewelis, bulk supply consumers’ and street Light connections in exch onth. (b) Sub Divisions of opera- Detailed check of one sonth's {on Branch of Power Wing accounts and general scrutiny of (witch “are audited on remaining 5 months accounts. half yearly basis) (c) AI1 other formations and (4) Detatted check of one offices (which are audi- ‘month's accounts ane gen- ted on annual basis). efal scrutiny of remata— ing 1! month's accounts, (44) Wate audteing divistonal Accounte analysis of one major work or in ite absence, two ninor vorks VIII algo be carried out.NOTE: General Scrutiay means checking of 10% of total transactions of ceoe rete cad. ieeues/paynente of remaining 5/11 months’ accounts of sub-diviston/division. 3.2 If the state of atcounte in a particular office desande s nore Gotaited audit or less audit of any particular aspect of the sccounts detetled aiientage checks can be curtailed or increased by Audit Partie Gitn the prier approval of the Chief Auditor, WAPDA. 3.3. Tm addition to the above regular audits, the Taternal Audit Divteion has also to carry out Spectal Audit of Accounts and Performance seston of certain forastions under the orders of the Authority and cra ntope and period to be covered in cuch spectal audits ts specified ty" che "huthority. The result of euch spectal audite and Ferfornsace By ieions submacted to the Authority for necessary action. Such special Ridles end. performance evaluations are conducted by audit parties under SGnerol of Deputy Chief Auditor (Special Audite end Hesd Quarters) 4 CCOMPOSUTTON AND DUTIES OF AUDIT PARTIES bc Wormally the composition of the three types of audit parties Sch soned te para I-2 is ae under, This composition, hovever, can be cRaMEeE by ‘the Chiet Auditor, WAPDA according to the volume of the work. (4) Local aedte party grade Assiotant Audit officer 16 1 hedie Anstatant La Audie Clerk 2 atb gasta a ie. % (44) Tost check Parey, hudit Officer Tot Aeelseane Audit officer 16 1 odie Asotocent in Stock Verifier % ot posts Clerk ea Nath eats ia total: 6 (ai) avdse party Sentor Audit officer 18 1 adit Officer 161 ba 1 Nai Qasid acs Total: 6ae eeeRe les “ Jofesenen KEE Ip beeen 2 The duties of cribed below, The devatl These duties can, hovever, be readjusted anon of each party. ive Local Audis Party, aud ava stant Audit Officer Clerk Test check party Audie officer Assis nt Audit Officer tous members of Audit Parties are briefly é Guties are shown in Appendices - + B2, BS. tthe menbere by the heed Auétt of accounts of 11 Indus trial Consumers tncluding Sea sonal Consumers above 70 KW, audit of important documents, "I/6th test check of vork done by his staff and settlement of outotan ding Audit Notes. Audit of accounts of all Indus trial and Tubewell Consumers upto and including 70 KW. Audit of 100% accounts of all Commercial Consumers and It of all General Consumers with bills above Re. 200/ ‘Audit of cash accounts, 1/iith test check and general. scrutiny ‘of work done by his staff, ment of old Taapection Verification of reaudit remarks regarding pares settled pending verification in respect of sum mariec, surprise check of work Of Stock Verifier. Audit of 1002 of detatied wonth and Ceneral scrutiny of remaining months. of | tndustrial /tubewell ft site account register and DMB entries of industrial and tubevell connections, Registers of motere-Ch-21 and CA-22, Aug~ sentation and replacement vorks, 1/6th test check and general sera tiny of work done by staff. Set tlenent of Stock Verification Report and Audit Reports.Acdit of 100% of detaited month ind general gerutiny of remaining —_ TT mouths of ‘nev connections of commercial and domestic consu- mere, materiel at site account Tegister and EAB entries of com hnefeial and donestic consumers, Service register, Job order, Hist fof all nev connections/job orders Sent to Revenue Office, Vehicle Aecount, TSP register etc; (work Of Assistant Audit Officer vhere Audit Assistant have got less load fof work oF vice versa). ods A Avast Clerk Audit of material consumption record ledger of maintenance Works, S.J.0s-, meter reading record, Disuantied mater‘a! Fegister, store accounts, atten dance register;(Work of Audit Assistant where Audit Clerks have got less load of work or vice versa). 3. Audie Parey Senior Audit officer Audit of cash accounts, 1/11th test check and general scrutioy of work done by staff, verifice- tion of reaudit remarks of old ‘runmaries Assistant Audit Officer Audit of 1/6th test check and gen~ Gral. scrutiny of work done by Staff, verification of reaudit remarks of old audit reports, a Tyaie of | major work or 2 minor works. 100% audit of detatied month's accounts and general scrutiny of Fenaining sonths’ accounts, pre~ pare Liat of outstanding balances fn euapense account, excess over estimates/funds, List of unsanc~ toned estimates, ete. 4.3 the Senior Audlt Officer/Audit Officer/Assistant Audit officer Aad his staff are expected to audit completely and intelligently alltransactions of receipts and expenditure which fall vithin their scope of check. Be 5. AuprT PRoceaere 5.1 The programme for the prescribed regular audit are chalked out on quarterly basis by the office of the Deputy Chief Auditor concerned. According to -hese programmes, each audit party is allowed fixed mandays, for audit of accounts of each foraation/office during which it hse te complete the audit. The time alloved for the audit should ot be exceeded sslthout prior permission of the Deputy Chief Auditor concerned, Such perission should be obtained before the expiry of the allotted tine se far as possible. 5.2 The head of the office to be audited should be given soffictent notice of the probable dates of audit and requested to be present at his hetd quarters to meet the head of the audit party in tine to diacuss the Fesults of the audit with him and also to inform hie euboréin. station,if any, to be present at their headquarters and to keep ready all the booke, etc. for audit on date(s) thon in the audit programe, The noxt Senior Officer of both Executive and Audit should be informed to be present on the final discussion of the Inspection Report. The Authority has also {ssued instructions to all WAPDA formations vide its Letter Wo. KGA-L(161.B)Admn/A(E)/104075 dated 20.12.1963, reproduced in Appendix-C to extend full cooperation to statutory/Internel Audit Parties, Gare should be taken not to disclose the nane of the month, the sccoust of which are proposed to be audited in detail, nor to specify the works which are to be analysed, 5.3 Requests of audit parties for extension in time beyond the approved Progrause, after availing of the same, vill be taken ao «serious 1 on the part of the Head of the Audit Party, S.4| The extension n time should be assessed by the tachar party and prior permission in period obtained from Deputy Chief AuJitor, However, any increase in tine exceeding 252 of the sllovable time will be subject to the approval of chief Auditor. 5.54 review of the quantum of audit work in the offices to be ingpected nay show that there is scope for readjuetnent of the tim slready being alloved. ‘The officer-in-charge Audit Party should, there, fore, closely examine the vork involved in each office and mialaun tine required for the audit should be intimated to the Deputy Chief Auditor is the form of a separate note at the time of subniesion of the Inspection Report of the concerned formation. This report should contain reel istic coments about the increase/decrease in mandays duly supported with facts and figures. Waile doing so, it should be kept in wind that the dcresse fs ime should not, in any vay, affect the efficiency of audit works Increese, {F any recommended, should be justified by « Fealletic apprects tion of the quantum of work, 5.5 Accounts of WAPDA formations are also post audited by Director WAPDA Audit on behalf of the Auditor General of Pakiotan. This avéit tecalled statutoty audit. The Deputy Chief Auditor while preparing audit Programes of internal audit parties, should eneure that Internal Audit Programme donot clash vith those of Director WAPDA Audit forvarde copies of tour programes of Ma Audit Parties to the Internal Audit Division. Similarly, the Internal Audit Division algo sends copies of tour programes of ite audit parties to ‘the Director WAPDA Audit. AUDITABLE DOCUMENTS 6.1 The term ‘Auditable Documents’ means those docunents/accounts which a WAPDA fornation/office ia required to maintain under instructions of the Authority. Ae the function of WAPDA fornations/offices are different from each other, Auditable documents are also different for different types of fermations/offices. Liste of auditable documents required to be ‘aaintained by the sane type of Foraation/offic given in Appendices Dil, D.2, D.3, D.4, D.5 and D.6, These ligte broadly fall under the felloving main’ head: ‘Auditable documents required to be maintained by: (a) Sub-Divistons of distribution side of Power Wing. (Sub-Divi- stone of Water Wings are audited alongwith their Divisions). (b) Regional Stores and Store Sub-Divisions (A.B. & D type Stores). (e) A11 WAPDA offices/Divisions. (Pover & Water Wings). G@) Spectfic offices. These offices will also maintain documents meant for all WAPDA offices/divistons. (e) Revenve Offices, and (£) Aros Blectrictty Boards. 6.2.1 Cg) Audit Party should hand over a list of auditable documents to the head of the office or in his absence to the next Senior Oficer, Office Superintendent/Divistonal Accountant as the case may be of th office to be audited. A list of auditable documents is favariably filed with each Inspection Report. The list of auditable docimente {= also @tscussed with the head of office inspected to ensure that the list Prepared by Audit Party contains all accounting documents and no document being maintained under orders of the Authority, i missing from the Met. If any document 1s missing the sane should be added to the list quoting proper authority for ite maintenance, 6.2.1 (b) The of ficer-tm-charge of Audit Party should atudy the previous year's Inspection Report of the formation to know the pattern on which audit was carried out during last year and to advise the etaff accordingly. The Tnapection Report and Draft/Advance paras issued by the Director WAPDA Audit, available tn the formation concerned, should aiso be consulted to enoure that the objections already incorporated in these reports arenot repeated in the Internal Audit Inspection Report. 6.2.2 The officer-inecharge Audit Partion should note thet Audit has fo authority to require the maintanence of fresh docunente and any ouch Suggestion in the audit objection should be avoided, 6.2.3 The documents mentioned in the list of auditable documents for the formation under audit vill be checked by the monbere of Audit Party as per duties of staff detatled in Appendix-B. The members of audit party are required to initial all documents, vouchers, ete. audited, fest checked or scrutinized by then. The folloving audit enfacenent vill algo be sade on the outer cover of each document audited, test checked or scrutinized. Audit Enfacenent Andited/test checked/scrutintzed for the period from___to (Deatiled sonth Nase, Designation Name, Designation Name, Designation and dated initials and dated Initiale and Of the auditor Of the officer who of the officer: test checkes chars ‘An enfacenent stamp as per specimen given above should be with the incharge of audit party and stamped on each documeat checked. 6.2.4. The officer incharge of Audit Party vill ensure that all documents pentioned in the list of auditable documents have been audited. He will Also append to the Inapection Report sent to the Deputy Chief Auditor concerned « list of auditable docunente endorsed vith Audit Certificate As per proforma given below: Audit Certificate 1. Name of Formation. 2. Period of audit. 3. Monta's account Certified that: the following documents which are required to be audited have been audited to the extent and in accordance vith the’ instruc= tions contained in WAPDA Audit” Manual a other orders issued from tine to time by 1 Authority and the Chief Auditor. UAPDA.Se.]tane of [Nature of | Period [Nane, Desig-] Name, Desia-| Name, Desig No. | docunenc| work vith| covered| nation and | nation and” | nation and ~ | sudiced/| reference | by the [Initials of | Taitials of | dated signa~ [xo. ‘of [to the | docu |the Aeditor | officer who | tures of the volumes | docunencs | ments test checked| officer in- | audirea| Charge of the | Audit Party | Tsbipst z z 3 ~ 7 6.3 Mon-production of auditable documents 6.3.1 Some times certain auditable documents are not produced to audit parties and it is pronised by the staff of the offices audited that Gocuments will be produced on next audit visit. In such cases, the officer-in-charge of Audit Party should insist on the production of the documents on the spot. This ts a serious irregularity on the part of the offices inspected, and the officer-in-charge of Audit Party should, there Fore, attach due’ importance to this aspect and obtain full and cogent Feasons for omission to supply the auditable documents for inclusion in the inspection report, by discussing the matter personally with the officer-in-charge of the office inapected, 6.3.2 If, after discussing the matter with the officer-in-charge of the office’ inspected, the documents are not produced, the officer next above the officer-in-charge whose office is being audited, should be contacted by the officer-in-charge audit party, either on phone or by telegram so that the record is arranged to be produced. In case satisfac~ tion 1s aot obtained from the next superior officer, the officer-in-charge audit party should contact Deputy Chief Auditor on phone or by telegrar So that he may assist by making contacts with the executive superior officers. 6.3.3. It is Iikely that certain records may not be produced intention ally. As Internal Audit has to function more at a corrective than a - eritictztng agency, the officer-in-charge Audit Party should not neglect fo report, this failure on the part of the formation inspected, both £0 its sentot officer and to head office, for taking corrective action. 6.3.4 During the course of audit, audir partion may notice that certain documents e.g. Purchase Orders/Work Orders issued during the yesr under audit, alonguith the Purchase Orders files, atc. have been taken sway by the Complainté and Investigations/Folice Departeenta, and therefore, such audttable doconents sre not produced for scrutiny. In'such cases, officer in-charge Audit Party shoud find out full facts of the case and voror the same in the inspection report, together with list of documents and the name/nases of the offictals involved/suepectad to be Savolved therein Receipts of the docunente obtained from these agencies should be examined 6.4 Non-esintenance of auditable documents Sone tines euditable documents are aot prepared and aaintained in certain offices. In auch a case it vill be necessary for the officer-in-charge Audit Party to ask for the reasons for non-maintenance of guditable documents. Omissions to maintain and produce the auiiabie documents is a sertous lapse. The officer-in-cherge Ault Party tse therefore, required to bring home the importance of maintenance of adie. able documents to the office concerned and in case of omissions, reasona leading to the fatlure brought out and recorded in the Inspection Report? Draft Summary. 2, RESULTS OF INSPECTION ~ WRITING OF ROUGH AUDIT OBJECTIONS ‘RESULTS OF INSPECTION ~ WRITING OF ROUGH AUDIT OBJECTIONS ALL Audit Parties (excluding those on local audit of Revenue shall prepare rough audit observations tn duplicate by esrhon The top copy will be issued datly to the office inspected tor copies of the rough audit observations are lost or with leid the gifice concerned, the Inspection Report should be prepared fre cre duplicate copies, Bach rough audit observation should ‘be given cor Ae ind should be entered in a register bofore issue. The Officer-in-charge Audit Party will engure that no para is left unattended by the Office nee charge of ‘the office inapected and conplete replies to avdit obacevecions [osether with reasons in support are invariably obtatned and inceryoreted fn the audit Report. When the points under objection have alveesy tees faken up for investigation by the offices inepected, the ‘tact theory objection to avoid giving wrong Te should be recorded that "the matter te already wndee action” end any suggestion to expedite matters may be made. 7.1.2 Local Audit Parties will tesue audit noter AprendixcE-1, op che irregularities, omissions, etc,, detected ty, thee to the R.0. in duplicate (Black and Pink Copies) on day-to-day bacie, Jui evenve Officer will retatn Ist copy (black tak copy) and return 2né copy (pink copy) to the LAP with XEN"e Yeply recorder thevese, an wisecaze [mtteate Bill Adjustment Hote ouaber and date when the scdie gbjection has been accepted. The disputed audit notes will be diecenecy Jointly by the R.o. and XEW with the LAP, weekly on every Senden ( tft Relidey, ‘then on next working day) and decisions there on Ge estat greed to by the RO. NOTE: On the concluding day, the Audit notes will be discussed in the Presence of next senior officer from the Executive sod Aadane sin, Meh Audit notes on which there 1s still dtfference of opinion Ogkrten audi and executive, will be referred by the AEV to bie S/0s,fof the report so that no offence may be taken. While it is necessary to fuake it clear ao briefly as possible hov loss had actually occurred or fo indicate the manner in which the lose occurred, ineinuations should be avoided. It de not sufficient to quote the rule or the order violated, the actual oF the possible effect of such deviation on the financial interests of WAPDA chould be explained intelligibly. The sanes of officers responsible for irregularities should not ordinarily be entered in the Incpection Report, but, in all cases of serious irregularities a note of the nanes should be invariably kept on the office copy of the Inspection Report, for inclusion in the Sumary of Important Pointe. 7.9 Audit Parties should treat all cases coming to their notice a strictly confidential and discuss then with employees vho are directly Concerned. They shovld not go about talking loosely on points which they say have discovered during audit. 7.10 Where more ths officer held charge of the office during the period subjected to audit, it will be necessary to indicate ageinst Charge holder the specific paras of the sumary of important points for ‘hich each one of then vas responsible. 8. DISCUSSION OF AUDIT OBJECTIONS WITH THE OFFICER-IN-CHARGE OF THE ‘OFFICE INSPECTED 8.1 The Officer-in-charge Audit Party will ensure that the objections taken during Anspection are discussed with the Officer-Ln-charge of the office ingpected and settled on the spot es far as possible. While Settling the objections through discussion, detailed reasons for settle- ent will be recorded and it vill not be sufficient merely to state “Discussed and settled’. The next Senior Officer from Executive and ‘Audit should be present in this discussion to be held on the last day of ‘the inspection by previous arrangenents 8.2 When, in che course of inspection, anounts due fron staff or Officers, e.g. on account of private trunk calls, rates, rent, private use of WAPDA Vehicles, etc. come to notice, the Avdit Party should, during disuession, ask the Officer-in-charge of the office inspected to enforce recovery. If recovery is made the fact should be stated in the Inspection Report. SimtJary, 19 case where any other omissions to maintain a register ete. are to be rectified, the Officer-in-charge Audit Party Should ask the Officer concerned to rectify thea forthwith and the action ‘Eaken should be mentioned in the Inspection Report. 5.3 Objections which are refuted away by the executive authorities im their initial replies must be discussed subsequently, so that the objections could either be accepted or withdrawn. 8.4 If the above ingtructions are scrupulously observed, the inspec tion reports vill contain serious and important pointe requiring further follov up and will not be voluminous. During discussion, it should also bbe ade clear to the Officer-in-charge of office inspected that important points will be reported to Authority for information and it vould be in their oun interest to explain thelr point of view in detail about thea £ inportant irregularities contained in the Inspection Report. The Authority fas also issued orders to the executives for carrying out purposeful. discussions which are reproduced in appendix-F- 9. DRAFTING AND _PREFARATION OF INSPECTION REPORTS BY AUDIT PARTIES ‘AND SUBMISSION THERECP TO DEPUTY CHIEF AUDITOR 9.1 while drafting the Inspection Report the Officer-in-charge Audit Party showld invartably give the Following information on the first page of the Inspection Report! 1, Mane of the Office/Diviston/Sub-Division Inspected. 2. Mame of $.¥6/KEN6/SD0s vho held charge of the office during the period covered by Lnspection. 3. Manes of 11 Divisional Accountants who held charge of the Accounts Section during the period covered by inspection. 4. Period of accounts inspected. Nonth/Period selected for detailed audit. 6. Name of AA0/AO/Sr.A0. Dates of Inspection. Dates of Last inspection. Telephone Ho. 9.2 The Inspection Report should contain points, which have to be Drought to che notice of higher authorities and replies to which are to Je routed through the next higher authority. It should contain important points, cases of sertous financial irregularities, matters. involving policy, arrears im accounts, delay in recoveries, delay in finalization of losses and heavy outstandings under suspense and remittance head Minor points should not find place in the Report. ‘The inspected offic should be made to understand that objections in the Inepection Report fare to be dealt with and routed through the next higher officer of the inspected offices. 9.3 The audit points should be settled to the maxtaun possible extent with the inspected offices through serious and purposeful discussione. Yolustnous reports franed under the erroneous ‘pression, that volume 1o evidence of good performance, will not be appreciated and Lengthy inspec tion reports should be avoided. The inspection report should be as conclec 4s possible and in plain language. The efficiency of Inspecting Officer veil be judged by their ability to frame concise and qualitative Inspection 4eport, and to settle and finalize mattere on the spot. 9.4 care should be taken vhtt nore than one pat drafting inspection reports that aot is included for objections of the sene nature. Differentparas for objections of the same nature in the Inspection Report reflect poor staff working on the part of the Assistant Audit Officer, Audis. Officer and Senior Audit Officer. The draft of the Inspection Report Should, therefore, be of high standard. The Assistant Audit Officer will also ensure that paragraphs of the Inspection Report are properly numbered. 9.3 The points raised tm the objections should be conclusive and not ere queries. The objections should be self contained, at the sane tine brief and precise and duly supported by relevant rules: 9.6 Audit objection in which a menber of the Authority may be con- cerned, need not be included in the Inspection Report. Such cases may be reported to Head Office through a confidential letter. 9.7 The Inspection Report should be subsitted so as to reach the Deputy Chief Auditor concerned within 7 days of the completion of audit ‘da of an offtce/formation. 9.8 Three copies of the Inspection Report should be prepared and distripured as undert 4. | copy to the Officer-in-charge of the office inspected. >. | copy to the executive next senior officer. €. | copy alongwith draft sumary of important points, if any, to the Deputy Chief Auditor concerned. The copy of Taspection Report sent to the Deputy chief Auditor should bear the Signatures of the Officer-in-charge of the office inspected over the words ‘seen, discussed and 1 copy of Inspection Report received” 9.9. The Inspection Report on receipt in Regional Office, will be scrutinized and short-coming, if any, will be pointed out to the Officer inceharge of Auéit Party and clarification obtained for short-coning or taking wrong objection. : 9.10 Those paras of the Inspection Report, which have been included Sh the aumary of faportant points should be dropped from the Inspection Report by the Deputy Chief Auditor concerned. While dropping a para from the Inepection Report, it sould be ensured that suitable remarks to the Effect that these have been taken wp through the Summary of important points, are given ageinst the relevant paras in the Inspection Report ind the formation informed accordingly. 10, DRAFTING _AND_PREPARATION OF SUMMARIES OF IMPORTANT POLNTS AND SUBMISSION THEREOP 10 DEPUTY CHIEF AUDITOR 10.1 The Officer-in-charge Audit Party ic also required to submit to D.Gske concerned # draft sumary of important points alongwith the Tnspec- tion Report. The oumary will be drafted by the Officer-ta-charge himself in the Folloving proforma.be ie /ROFORNA Summary of Important Points noticed during the inpection of the accounts of ‘carried out in Para | Points of | amount, iP aay] Action proposed | Ordere by New| Sonmary | involved by Ausit ce Pat As 3 is yoksee! tate 0.2 The Officer-in-charge Audit Party, will Lavariably quote relevant para No. of the Inspection Report belov the paras in the Draft Summary. 10.3 While drafting summaries, only important points of the Inspection Report should be extracted.Such points ney fall under the following categories: (4) Repeated disregard or misuse of Finenctal povers. (44) Deviation from authorised procedure having financial effects, 411) Loss of official documents and non-production of docunent (48) Non-verification of stock subsequently disclosing loss. (») Objections involving irregularities, defalcations and misap~ propriations, ete., and any other points which are considered fo be serious enough to be brought £0 the notice of the higher duthorities. (vi) Inregularities/objections involving ancunts above Re 5000 only will be included 4s the Summary. 10.4 While Drafting Sumaries, efforts shovlé be made to present the true position of irregularities instead of exaggerating thon. Only those cbjections shovld be taken in the Summaries of the important points which can be sustained during formal investigation 10.5 Replies of the executives should invariably be incorporated in the Sumaries so that their view point is placed before the Authority iad alae the same should be Kept im view, whenever the Feplice require farther verification. 10.6 The last para in the Sunmary of important pointe should be that of "State of accounts! of the office inspected. This para should contain the folloving information: a: Mane of Officer-in-charge of the office inspected during the period of inspection. bb. Mane of the Project Accountant/Divietonel Accountant, incharge of accounts during the period of inspection.‘The exact position of the arrears and maintenance of accounts of the office inspected. In case the {regularities are repea-— ted year after year, the quantum and magnitude of repeated irregularities should be recorded 20 that the Authority could take suitable disciplinary/renedia! neasures iu ouch casee. The nase of the officer responsible for repetition of trregu- larities should be mentioned. Were nore than one Officer/Divisional Accountant have held charge during the period ubjected to inspection, Para Nos of the Summary should be given against each officer for which he was responsible. 10.7 The Sumary vill be scrutinized in Regional Office and put up to the Deputy Chief Auditor concerned for approval within 2 veeks of its receipt. This tine schedule ts required to be maintained for ensuring what Amportant audit objections are promptly brought to the notice of the concerned Chief Engineer/Head of Division and remedial action 1s taken at the earliest possible tine. 11, SETTLIMMHWT OF PREVIOUS AUDIT OBJECTIONS CONTAINED IN INSPECTION REPORTS AND SOWARIES 11.1. Witte proceeding on inspection, the Officer-in-charge Audit Party should take vith him files of all previous outstanding inspection reports and sumaries for on the spot verification and discussion of the outs: Ging paras with the executive officer concerned. hen a file has been discussed and further re-audit renarks isaued on the spot, it should be sent back to Regional Office. Final renarke on pares of Summaries WiLL of, however, be issued by the Officer-in-charge Audit Party. In such cases he should give the present position of the pare in the form of a note, to be appended to the file, to enable Regionel Office to apprise the Deputy Chief Auditor concerned whose orders vill be obteined 5 fo settlement of the para. Piles should not be detained vith. the Parties for more than 4 to 5 daya of taking up the inspection of particular office 11.2 Paras of Inspection Reports, settled pending verification by, Regional Office will be verified by the Assistant Audit Officer of Audit Parties. If on audit verification, the position of any pars 1s found to be materially different, from that on the basis of which e para wes Gropped or settled pending verification, the fact should be clearly Drought out in the re-audit renarks {agued by the Officer-in-charge of avait Party. 11.3 All outstanding objections in the Inspection Reports vill be Asscussed with Officer-in-charge of office inspected with « view to obtaining replies on the spot and achieving settienent of objections far as possible. To ca points ts found wanting, the issist the executive authorities in = This action should be gor completed in his presence, 4 possible. In case of dlsagreenent with executives, full facts should= bbe faithfully recorded alongyith the Audit Party's om views as to vty ‘the point of view of the executive cannot be accepted. te me 114 If any oftice/tornation does not take interest in the settlenent oe Gf outetanding Inspection Reports and als in production of relvant a Ber pct verit ication ot. the tina of Aolit farty's vinit, the fact should ‘suitably be. counted pon in the Inspection Report and ars on this account be incieded in the draft summery. aa = U5 If, during the review of inspection Report and Sumariee, the z Officer-in-charge Audit Party finde that old objections are held up for tetion at the leve. of Sh/CH and are to be dealt with finally by then, 11 such cases should be brought to the notice of Regional Office indi” sting the latect position of the caves end. the Teanone duaco Which ie Dbjections are cutetanding. F ef M16 Im order to expedite the clearance of outstanding re ‘Hons, the Déticer-sn-charge Audit Party should pay pers Melibriig Yous? the sxecutive. so’ diocese, the cotsteniing reports, for terelesent of old objections. The Officor-tnccharge. Audit Perey, shovld fhelude s separate para in hia forvarding letter of the Inepection Report ‘0 Tegarding sctviencat of old objections, indicating the toval musber of hjections outstanding, the number of acttied and the balance: 2 & “12, MISCELLANEOUS POINTS CONCERNING AUDIT PARTIES . as & * ach Audi Party shall maintain an attendonce regioter and leave/ = late attendance vill invariably be entered in thie register. The repister 2 Will lsc be initiated. datly by the bead of each Audie Party and te 2 WiIl be nis persona! responeZbitity to walntain the register properly g tnd uprondate ta all respecte ‘i Hz “Grane ot isave 2 12.2.1 the head of cach audit Party 12 requited to inform Restonal a Office spout the leave eanctioned by Mm to" any meaber of his party ‘ Ancluding the Waid Oarid. We should do so by sending the leave applicetion > Z fo Hepional Office on the day any leave ie. sspetioneds Ie) will be . frregslar pot to send intimation Yo Negional Office en, and. when, any 2 leave Ls sanctioned to staff serving in the Audit erty. Tt vill also oe fmproper to tntor= the Regional Office after resumption of duty OY the person concerned. te F 12.2.2 hay officiai found abeont from duty at the tine of surprise 3 Wistt by any officer from Regional Office/tead Office vhove appiicetion : has not’ been sant to Regional Office a2 stated in 13.201 sbove will be % Ereated ao ‘absent without leave’. Decides dlecipliaary action taken a gninst the offictat found absent, the Tncherge Audie Terey will alee be a Mable to disciplinary actton.12.2.3 The officer-tn-charge Audit Party and bis party members are also expected to be available on phone at the formation in which they conduct _ the audie. 12.3 Procaeding to station of next audit visit 12.3.1 The Audit Party should ascertain its next audit programe from the Regtonal Office atleast 10 days before the date on vhich 1t expects to complete ito inepection in hand. 12.3.2 The Officer-tn-charge Aucit Party must proceed on tour not later than 2 daye after departure of bis party. He should never atay behind for nore than two days except with the prior approval of the Deputy Chief Audteor. tched by Regional Office/Head ‘may not Fenain undelivered and in order to avoid correspondence and waate of time and postage, the audit perties should leave their future addresses before leaving the formation For next station, with a request to pase op any dak Intended for them, to the new address, if received after their departure from that station. 12.4 Drawal of TA/DA advance by Audit Parties TA/DA advance can be dravn by meabers of any audit party only when they leave permanent Headquarters on temporary duty and not at any Subsequent occasion during the course of tour, They are also not allowed fo draw such advances from any WAPDA Feraation during tour.nd = CUAPTER-3 AUDIT OF WoRKS_accouwrs CCATEGORTES OF WORKS 14 WAPDA “Es Works in MAPOA, which fall within the purview of Internal Audit, [my be broadly divided into the following categories: () Givit orks Construction of buildings and roads, etc. b. Maintenance and repair of buildings and roads, etc. (11) ater Works: i.e, works connected with Ground Water Hydrology, Dams Moni to- rings Operation and Maintenance of Reservoirs, Watershed Mana— genent, liydrologic Monitoring, water Quality and Soil Montto- Fing, Dans Investigation, Surface Water Hydrology, etc. (414) Pover Works: i.e. works connected witht a. Construction of Service/Transnission Lint b. Renovation/Maintenance of Service/Transmission Lines and Power Houses: c. Supply of Pover eo Consumers. and Power Hou- 12 Classification of Works 1.2.1, The above works are of three types Major Works, Minor Works and Maintenance Works as defined belov: (4) Major Works ANI original works costing more than Re. 20,000.00 are called Major Works. (44) Minor Works All original work costing Ks. 20,000.00 oF less are called Minor Works: NOTE: Original vorks includes new works, additions and alterations 10 existing works and purchases. a(444) Repatr/Matntenance Works Maintenance vorks ween repair and maintenance of any WAPDA Mtoperty irrespective of the cost of repatr/naintenance, (4v) Deposit Works This term 1s applied to works of construction or repair the TEE of which f¢ met, aot out of Avthority's fund but out of feats fron non-AuthoFity sources, which aay either be deposi- ted in cash of othervise placed at the disposal of a competent etnSciGy, Works executed for Municipalities and other public , seer Pair under this category when the cost is chargeable Becher to cash deposits ‘made for the purpose, oF to their SUERTE Manences “st banks. However, the work of providing Stevice conection on paynent of cost thereof, does no fall 4 Gtinis the defination of ‘Deposit Works’. Administrative weenttal and Technical Sanction of deposit works shall be wreca by “officers of WAPDA es per their finanetal pocers Elven fo Book of Financial Povers ((WAPDA). 2, MBMWoD OF CONTROLLING SYSTEM OF ACCOUNTING FOR ENGINEERING WORKS. 2:1 The nethod of control and systen of accounting fer the engineering 4 works in WAPDA are designed: (4) to ensure the full adninistrative and technical control GE) TS Eiibte the officer incurring the expenditure to submit } secbuats of the expenditure to the Managers Finance con | ; cerned, and (tt) to enable expenditure to be compared with approval end with allotment of funds. sve Control /Adainietrative Approval 2.2 Adminter 2.2.1 Adninistrative Control ensures that the works proposed for execu tice are: (4) of real necessity, (Gt) in accordance with any authorised ecale, (LY) in accordance with any approved policy, (iv) token up 49 order of priority. 2.2.2. Admintotrative control is exercised by the authority empovered 2:22 then the execution of a Work at a stated cost. Such sanction ia {0 samc rieilatrative Approval. This term, therefore, denotes the formal woo atcc'uy WAPDA of the proposal for incurring any expenditure on ¢ secre chad with the requirenents of the Aulthority. The povers for were dine Adeiniatrative Approval of vorks are given in Book of Financial Pouers. not comenced within five years of the 2.2.3 1 an approved work {2 ‘fresh approval aust be obtained. date of administrative approval2idsb In case of maintenance vorks no adatniatrative approval is rec uires, An allotment given for the maintenance vorks tupliee aduinistraz ive approval fo the execution of works to that extent: The sémetion to fan annual repair estimate lapses on the last day of the working sears If any expenditure is incurred after the close of the year against repair Work of the previous year this expenditure should be treated agsinet fresh repair estimate for the next working year. 22.5 Eetinates for special repairs renain current till completion of the repairs in the sane manner as estimates for original works, 2.2.6 No administrative approval villbe required for PC-I Proforne Stands already approved vith sufficient detalls of componente, of the Work included in the project. Where, hovever, suffictent, details of components of the work have not been given (n the approved PC-1 Proforma, forma) approval of the General Manager concerned shall be obtained. 2.2.7 Where residential accommodation stands standardized, the scale ff accommodatfon shall not be executed without prior approval of the Authority. The standard design of residential outlding may, hovever, be Modified by General Manager concerned to suit local conditions where Considered necessary. 2.2.8 Administrative approval for constructing a restdenttal bus ding Foquired for the personal use of the conpetent authority shall be accorded by the next higher authority. 2.3 Technical Control/Technicel ction 2.3.1 Technical control conceras with the actual destgn and execution of the work and the accounting for all expenditure. Technical control thus ensures that: (A) the design and specifications are in accordance with soud gonineering practice and fulfil the object io view vith the least expenditure of funds, and generally that the utmost economy {s cbserved consistent with good vorknanship, materials, (41) the estinate represents the probable cost of the execution of the work and all {ts components and consequential services 4s accurately as ts possible at the time it te prepared, (tit) the materials for, and the execution of, the vork are in strict accordance with the plans and spectfteat ions, (4) 11 payments to contractors and employees correctly represent the services rendered (i.e. work done and. stores supplied) with the contract or other agreement under rrvices have been rendered, and (¥) the accounts are correctly ke 1, and the expenditure ts correctiy allocated.2.9.2 Tectniet ao escane ore a of technteal sanction. Jechntcal Sa0c% sn Spier of a conpetect. authority sanettowing 2 properly detstled Shue a8 oer ot Sroof work of construction oF Fepstr proposed to be SEEPmEGeSOE TBE SParacro'cen only be passed) by the officers of the Noone ania orae pouere are aelagated by se Asthority” Sanction soe neta ofthe work by an officer of any other Depert= seorris\ egardea'aerely te an Adniniaerative approval of the Works: 2.3.3. Povera for Technical Sanction of Works (other than Deposit Works) aie’ subject to the condition that excess over the anount for which Glninietrative approval bas been obtained is not more than 15 percent. fe lechoical sanceion involves excess of more than 15 percent, prior Approval of the Authority shall be required. 2.3.4 Where consul tante have been engaged for a work, technical sanction shall be accorded by competent authority in consultation with the consul saat) Ma case of « Aigagreement between the consultants and the competent SEUNSiety eechoteal sanction by next authority of WAPDA shall be required. 2.4 Financial Control/Control of Expenditure 2.4.1 Financial control ensures that: (4) the total estimate for each work is not exceeded beyond permissible Limit (at) no expenditure oF 1dability 18 incurred until funds to meet it are available, (Gti) the funds are expended on those duly authorised works for hich they are allotted and on no others, and (iv) the funds allotted in any year and available under any head OF sub-division of that head, are not exceeded. 2.8.2 Fands must be definitely allotted to each work before execution {b commenced. an allotment can be authorised at any tine before, but not After the expiry of the financial year, and is intended to cover all the Charges (including the Hab{lities of p } to be paid or adjusted String the year, After the close of the financial year, any unspent Salange lapses. ilo funds will be spent gnecononically merely to prevent then from lapsing 2.4.3 The fundamental principles for controlling the expenditure are ‘thus as under: (4) No vork wilt be executed vithout adnintstrative approval snd ‘Ceuaicel sanction having fAret been obtained from the autho- Fity appropriate in each case, oF without funds being avatl— Ublg to meet expenditure on it. Tf in eny case vhether on froude of urgency or othervise a Divistonal Officer ts Btguired ‘to carry out a work for which one oF nore of theabove requirements are not fulfilied, the orders of the offiz cer suthorisYng the work should be conveyed in wetting. On Fecetpt of the orders the officer vho is directed to carry out the vork should. tmuediately {ntimate to the secoun Officer concerned that he ts incurring a liability in anti pation of technical sanction and oF provision of funds. The Accounts Officer will then bring the position to the notice of the higher financial authority requesting it either to stop the progress or regularise 1te execution: (ii) No Officer vill, in the course of the financtal year, exceed the aggregate allotwent made to him on any work or any sub-hesd of maintenance. (1414) No Officer will exceed any specific allotments made to hie ‘under any minor or detailed head, except in so far as he say, within his povers of transfer’of funds, be able to mect excess expenditure on one item by equivalent ‘another. wvinge on aw) of any work which hat been adainistratively app officer will take no action to incur expenditure of the approved amount vhether such excess is due fo error in the approved estinate oF to alterations of the approved design or other causes without obtaining prior tance ‘fon from the competent authority. 3. Score OF saNcrrON 3.1 The sanction granted by an authority to an estimate must on all occasions be looked upon as strictly Liuited by the precise objects for Which the estinate was intended to provide. Accordingly, any anticipated (of actual savings on a sanctioned estimate for a definite project should ‘ot, without approval of the authority competent to give administrative: approval’ to the original estinate on which saving occurs, be applied to. carry out additional vork not contemplated in the original projects oF sot fairly contingent upon its actual execution. 3.2 Savings due to the abandonment of a section of any project adminis. trattvely approved by the Chief Engineer and above are not to be considered 4 available for work on other sections, if the cost of the sbandoned Atens 1s 5 percent or more of the estimated cost of the Project~ 4. ssTinaTes 41 To obtain administrative approval and technical sanction from coupetent authorities it is necessary that an estinate ie prepared for the work to be executed after keeping in view the design andthe specification thereof. The estinate vill be prepared by the officer che is charged with the execution of the work. The estimate should contain sufficient details to enable the officer competent to give adainistrative spprovel and techaical sanction to judge vhether the cost given 12 correct, The estinate will ordinarily contain report on (a) History, (b) Design,e) scope, (4) Ratea, (0) Cost and the Read to vhichar te charged, (0) £5), 00s) Soeabitotment, (b) Land, (4) Tine and (3) Expenditure, -SEEST Method, (6) Barer licen checked by the technical advisor of Divistonsl/ See eae eetces'it will be eubattted to the coupetent officer for BLvt0g Prosect Ortive approvel. Thereafter technical sanction vill be obtatned from the competent authority. 4.2 Revised and Supplenentary Estimates, 4.2.1 Excess Over Amount Administratively Approved 4.2.1. wen the expenditure on any vork exceeds oF Sf found likely to 421s) fe ttacunt aduintetratively approved for 1 by more than 10 percent, cocoa the Straiorrative epereval vill be obtained crow tia sadhority foapetent to approve the enhanced cost. gore: Yo revised adutntetrative approval ts necessary if the exoese te No revises the fonds appropriated of re-appropriated fer the work. 4.2.2 Excess over Technical Sanction ‘Excess over Technical Sanction 4.2.2.1 A revised eatinate mst be prepared when the sanctioned estinacs A:2-tikty go nual by sore then 5 percest of the snount techotcally fanctioned. 1.2.2.2 An officer of WAPDA may pase excesses provided the excess 12 10% 422 ae oicreent, of the eaount technically sanctioned end dogs ot Bere nae adent which he ie entitled to accord sanction on the original ferimace. 4.2.2.3 The powera of WAPDA officers to eccord technical sanction *° 4,2:2:3 The Lovee are the sume as their powers to accord original senc~ tons. 4.2.2.6 ven the excess occurs at such an advanced atage t= the constrasy, 4:2:26 Mien tijer the subatesion of « revised estimate purposeless» ant Tio" Seoleion ‘report iw cetiieed instead of « revieed enttnarss 62” Soe camer ee atacos of not Tower ‘than that of SvE. say pecs ezoesees cificer of sj expenditure is not greater than that which be 42 enpovered ‘fo sanction on the original estimate. 14:2.2.5 When the excess, as shovn in the cospletion report, is passed 9 Sco -tcooteent authority, no revised eatinate is necessary, The authortsiee the cemeettts ‘pose excenses over the eatinates through the completion Seporte are given below! (4) xs Upto 5 per cent but vithin their povers of sanctioning estineté (At) Sete and cu Above 5 per cent but within thetr powers of sanctioning estinates. (att) come Full Powers irrespective of the fotal seouat of sanctioned e=ti~© ar ing, to ay ay ts the vase My 4.2.2.6 No officer 1 entitled to pat by s higher authority than himself, any excess over eatinate sanctioned 4.2.2.7 If changes of additions becomes necessary through revision of scales or establ{siments or for other administrative reasone, s supple mentary ebtinate will be prepared and admintetrative approval accorded by the conpetent financial authority, competent to accord aduintatrative approval to the entire work (including both original and eupplenentary ‘estinstes). When according administrative approval in such cases, the competent financial authority will certify that the eupplenentary eotimate, has been necessitated by purely administrative reasons. The original and sty supplenentary estimates vill bet a8 a single service for the purpose of dealing with excesses and wings. 4.2.2.8 If during the course of construction, ‘t 1 felt to make stnor changes in the design of the vork or an additional eub-work 10 desired to be executed to which the expenditure {8 to be met frou the anticipated fsvings, the Divistonal Officers can do 20 with the approvel of the competent authority and by getting the abstract of cost of the estimate Fevised and approved before making any actual alteration in the design. 5+ REGULARISATION OF EXCESS EXPENDITURE THROUGH APPROPRIATION ACCOUNTS. 5.1 The excess over budget grant if any, {f not regularised during the course of the year through appropriation or reappropriation of Fondet will be regularised through the Appropriation Accounts. ‘The object of the Appropriation Accounts 1s to present to the Authority the audited setounts of expenditure from the appropriations for the year with full explanation of all important variations detveen the original and nodified ‘appropriations and expendi tur: 6. AUDIT _oF ADMINISTRATIVE CAL ONS ESTIMATES 6.1 Wile suditing the Administrative Approval, Technical Sanctions fod Estinates it ill be seen that: (4) the authority according the Admintetrative Approval and Tech ‘nical Sanction is competent to do a0, (44) the work 49 authorised, (444) the charge 18 for a bonafide prupose, (4v) the sanction is not accorded in piecemeal vith a view to bring the amount within the povers of the sanctioning author rity, (W) the Adnintstrative Approval/Techateal Sanction is supported by en estimate and that the snount sanctioned in the Former does not exceed that of the latter,(et) tn the estinate the authorised percentage for eatablishment ‘harges and concingenctes have been adopted, (uth) the eattnate covers A11 the ponstble commitments contingsat [ea'the execution of the work sanctioned, seimate are correct, (vitt) arithmetical calculations made in the (Ux) the scales of accomodation and services adopt [ioe those 1aid down by the Authority, (a) the rates of costing tn the costed schedules attached £0 188 Late Of fom eo the prevailing contract rates with due Segard to the local conditions, Je 1s ltd down in the Authority's Iccomodation technically fs building most analo- Jed do not differ (at) where no definite scals Shere for a particular building the Senctioned accords with the scales for ove to tt, (ait) ene funds. axe avettale. for the work, in ee year tm witch The vork 12 to be execated, (atid) the amount appr’ which it 4a allotted, jon of funds 19 issued by the S: (atv) the order for reapproprtat Competent authority, end hee been maintained to watch the Seon) a vogtater of estinats od Technical Sanctions of eatin. Adninistraeive Approval 7. METHOD _OF EXECUTION OF WORKS 7.1 Works are executed efther departaentally or through contractors 4.2. Execution of Works Through Department jiast Departeental Labour 12 suitable for rostine ductes and matacensnes 7.211 Deparinentstenance of service and tranamtecion linen, electrices orks, su a efrigeration and air conditioning works Works for whise at masericrle ox wosentranble’ co” eaxartatore: comerast 9€8 0}0%, 60 done departmentally, auch as dare unvilling to undertake the vork at re (4) when contractors ture ts reason to believe that free competi ‘sonable Fates oF Tion is not operative, oy (41) when there 19 difficulty tm foreccesting the work to Pe done Resn sesouring the vork when done- 4.2.2 pasly Labour and Work-charged Staff 7.2.2.1 when work 4s done depertoentally and regular staff t= insuftictet® 7.2.21) Wien toy Labour sod work-charged 'tofE-mey- have co be expleyed:ae aes al Me he a done sent Datly Labour (a1so known as casual Labour) 1s employed at daily rates on ‘2 Muster Roll and vork-charged staff 18 employed on monthly rates. Botit are enployed for specific works and for specific periods. The employment of work-charged staff and its audit have been expleined in chapter-8 of his mimual. 7.2.2.2 A Muster Roll 16 a record of daily attendance of the labour fetployed on daily rates, register of arrears of wages due to labour and the progress of work done by the daily labour. It ts prepared in form PA Form-21. It contains 3 pares as under: PAKT-1 Mowinal Roll In this part are recorded full particulars of the Labour employed, their day to day attendance, rate of pay per day, total amount due, acknowledgement of the labourers for payment received by then and dated initials of the paying officer for payment nade to then, NOTE: The term full particulars contains the name of the labourer, father's nane, Ma address, designation, nase and address of the introducer who introduces him to the employer and National Regis~ tration Indentity Card No. of the labourer. Part-I Register of arrears of wages due to Labour After making payment to labour employed on a Muster Roll, if sn Aten renaing unpetd, the details thereof ‘should be recorded in Part-II. Unpatd itens are subsequently carried forvard from Muster Roll to Muster Roll uatill they are paid. It ie, hovever, optional with che Divistonal Officer to keep a separate record of unpaid itens, provided a systenatic record 1e maintained on the baste of the ‘entries made in part-II of « particular Muster Roll. Usually a separate register of unpatd itene is mainteined and subsequent payments are made on Hand Receipt Form, and a note thereof is kept in the Register of Arrears by recording ca voucher No. and date on which payment ie eubsequently ma PartcIII Details of the Measurement of vork done by the labour in c: ‘ig viich the vork ie susceptible of neasurenent Individual weasurenente are recorded in the Measurement Sook. Hovever, abstract of the entries are recorded in this part of the Muster Roll. This information Le collected in order to find out whether there is sufficient justification for exploysent of Iabour paid for and thet the labour is employed for sone useful Work. If the vork {s not susceptible of the measurement, renarks to this effect are recorded in thie part of the Muster Roll. 7.2.2.3 The following are teportant instructions for the maintenance of Mister Rolle: (4) The blank forms should be Kept in Divisional office andshould be issued under the signatures of the Xen and his Divisional Accountant to the subordinates as end when ra- quires (1) Te subordinates should mark attendance twice in a day-once {in the morning and again in the evening, and he should inittel in the space provided for the purpose. (444) The Sub Divisional Officers should during their visits ro Site of work check the attendance of labour and initial the rolls in token of their having done so. (4v) The attendance should be continuous and free from cuttings, overvritings, disfigering, manipulation, etc. (v) th addition to the maintenance of Muster Rolls, the subordi- ute incharge.of work should prepare daily labour reports The reporte should show the No. of each class of labourers | Employed on each vork.or sub-head of a vork. The daily labour t Feporte should be sent to the $.D.0. daily. (vi) At the end of the month or on the date when sanction expires or at_an eetlier date, ae the case may be, the Muster Roll Should be completed, ‘totale struck both horizentally and vertically and vages for each labourer worked out. (vit) Separate Muster Rolls shoyld be issued for different works. (vitt) the attendance has been checked twice by the S.D.0. and once by the Xen in the period of employment if it ts less than fone month. 1.3 ype of Contracts 7.3.1 When a work or supply of material 1s to be given out to Contractor, one of various forms of agreenente is used. The recognised Gystens of carrying out work through contractors are ‘Piece Vork' and "Contract Mork" as described below: (a) Piece Work ~ Work Order (4) when Piece Work system of execution of work is adopted, Agreements are executed with contractors in the form of "Work Ofder". Such agreements are net ‘Contracts’ and contain only { the description of work, the rate to be paid without any ' Feference to the total quantity of work or any stipulation Of time for completion of work. (At) Work Orders for work against Limited enquiry in emergent Situation are given to contractors on ‘ork Orders’ in accor— fance vith che financial powers ae laid dovn in the Book of Financtal Fovers (WAPDA)(444) A Work Order 18 to indicate the folloving particulars: 1. Nae of the Contractor. 2. Name of the work and {te situation, 3. Rates allowed. 4. Any special provision as to the supply of certain mate- rials, such as, cenent, steel, ete. (>) Contracts, i (4) The term ‘Contract’ does not include agreenents for execution of vork by piece work, nor does it include more ordinary Purchases of materials or stores. The contracts should invari ably be in writing. There should be s atipulation as to the quantity of ork to be done and the period within which it An to be completed, ich differentiate. then frou. ‘Work (At) The kinds of Contracts are as unde: 1. Lumpsum Contract In a lumpsum contract the contractor agrees to execute the work with all {ts contingencies for s fixed sun. A Schedule of rate is agreed upon by vbich {s regulated the price to be paid or to be deducted for additions oF alterations to the vork for vhich the fixed sum has been agreed upon. 2 Percentage Rate Contract ‘This contract agrecnent 1s used for tendering at estimated & Fate ae well af at given parseotage above or below the o Sstinated rate or standard. Schedule hate of the area here work ts estuated. 3. deen nate Contract i The contract agreament 1s used for tendering rates for é sch ican of work. Tt is ot to be weed ehen’ percent £ coders are called for. 4 Supply of Materials contract é oly . ‘his 1s used when material is supplied by Contractors. 5 7.4 Tenders for vorks/Furchase of Centralised Store Materials, Instru- 8 noite, TOR, and Nort Orders and theif Acceptance fa 7.4.1 When the vork 1s to be got done through 2 Contractor and theestimated cost of Mork/Supplies 42 Re- 20,000 and above advertised tenders Shall. be invited from the WAPDA approved and Prequalified Contractors/ Supplicre/Manufacturers through the Director General, Public Relations, WAPDA, Lahore except in the Following cas (a) the stores are of @ proprietary nature,, and no alternative would be acceptable, (b) the number of suppliers of the iten/itens 1s five or less land no other supplier would be interested, (e) the ttens are standardised aaterials, and makes/stores/brand> from non-standard firas shall not be acceptabl (@) the denand 1s so urgent that normal tine epectfied for adver~ Used tenders (5 weeks for stores to be imported and 4 weeks for stores to be procured from vithia the country) cannot be given. 7.4.2 In all other cases Matted tender enquiries shall be issued to Jit ene contractors/suppiiers brought on the List of approved contractor: Single tender enquiries may be fasued in case of proprietary itens vhere fo alternative shall be acceptable, or where spares for existing machines Sr equipments are needed. All tenders sold are entered in Register of fuiec of Tenders’ and amount received ts entered in the Collection Cash Book’. Normally the price of tenders shall be as under: Upto Rs. 1,00,000 Re. 5.00 From Rs. 1,00,001 to Rs. 5,00,000 Re. 50.00 From Rs. 5,00,001 upvards Re. 100.00 1. A copy of advertised tender notice shall be endorsed to Gpproved contractors/firas. 2, Purchase Orders may be placed on unregistered contractors/ fires with the sanction of the Chief Engineer. ening of Tenders, Acceptance of Tender and Signing Contract J.4.3:1 Tenders or quotations above Rs. 5,000, whether limited or adver Ulssd, shall Loveriably be opened in public, i.e. in the presence of one veeebentative of each tendering firms, vho my care to be present at The Hime of opening of tenders. All tenders/quotattons received shal! Thin bev entered in "Tender Register’, a comparative statenent of tonders IMIr be prepared and the lovest offer shall be accepted. The tender SRA GS POPecetwed late, (ii) nsigned, (111) from an waregistered Fira without earnest money, (iv) from a black Iisted fire, and (v) [nbigsouss shail not be conetdered.tn case of advertised tenders, noof ih of ‘offer received subsequent to the opentng of tender shall be considered. If negotiation 1s to be opened vith any party, this should be opened with all the parties participating in the tender; alternately tenders Feceived should be cancelled and reinvited. After acceptance of the offer a letter of -acceptance hall be issued to the contractor/fire Whose vender/quotation has been accepted and a contract agreceent. shall be signed by the contractor/firm and the contracting Officer/Purchasing Otticer. 7.4.4 Conditions for Acceptance Te4e4.1 The lovest tender for works/supply shall normally be accepted subject Co the condition that the pid does not exceed the Adsinistrative céproval by sore than 15 percent 1.4.4.2 Prior approval of the next higher authority shall be necessary in the following eases: (a) Where the bid received exceeds by nore than 15 percent of the approved cost of the work (i.e. Adaintatrative Approval). (>) there tt 46 proposed not to accept the lovest tender vhich is technically unsound and hot responaive and it 2 tatended to accept a tender other than the lovest. (©) Where only one or two tenders have been received), and it 12 intended’ to place order on the only tender or on the lover of the two tenderers (4) Where competent authority considered it necessary and in the interest of the Authority to enter inte negotiation with the only tender or vith anyone or more tenderers, and (2) Where it ‘16 intended to place order on the basis of rates negotiated in accordance with (d) above. ding the conditions 7.4.4.2 above General Managers ‘shall be competent to take decieson in any of the four casos enunerated thereunder at (b), (c), (d), and (e) above only after duly recording reasons therefor. 7.4.4.4 The authorities coapetent to accept tenders in accordance vith the Book of Delegation of Powers (WAPDA) may also accept in connection therewith securities, and execute afd sign contract agreenents on behalf of the Authority. Where, hovever, standared foras of contract are not lused, prior concurrence of the Contral Contract Coll and the Legal Adviser, WARDA shall be necessary for entering into contract agreenont on unetanderd forms. 7.4.4.5 Repeat order may be placed by the competent authority on the basis of already accepted rates on the cane firm with whom an order has already boon placed, provided:(a) the value of repeat order is less than 50 percent of the Value of the original order of Rs. 1 lac, whichever is less, ane (0) the repeat order te placed within six months of the original order: 1.4.4.6 In case of materials to be purchased from Governnent Controlled Production Units, the requirement as to obtaining of tenders and quotations and as to making of enquiries, ete. shall be treated as waived and all Competent authorities have powers to do so freely, subject to the avail Sbility of necessary funds and Administrative Approval and Techatcal Senctton of the competent authority. If insisted by the Production Units Sforesaid, the payment for purchase of Vehicles, Cement and.other Govern Bene controlled materiale may be made in advance, subject to the avail~ SSUltey of neceseary funds, Administrative Approval and Technical Sanction Of the competent authority in each case. The advance payment shall be Pegulated fe accordance with the ters and conditions approved by the Authority. 7.4.4.7 Tenders for the purchate of locally manufactured materials shell be isaued to prequalified manufacturers only. 7.4.4.8 A1l materials to be purchased shall be subject to tnspection in Accordance vith the procedure laid dovn by the Authority from tise to tine. 7.4.4.9 Work Orders for works vithout calling for quotations shall not be given without previous approval of the next higher authority. However, General Managers and Chief Engineers ay take decision in such cas Chenselves. Sinilarly, Resident Engineers of Power Stations of the rank Of Superintending Engineer including Superintending Engineers (Generation) Hyderabad and Resident Engineers of the rank of Senior Engineer may Likewise take decisions thenselves for Work Order upto Rs. 7,000 and Re. 4,000 reopestively in each cage, under intimation to the next higher authority. 74-410 AL tenders and purchase orders shall ordinarily be issued in Accordance with the detailed instructions, and on the forms, prescribed {ie WAPDA Purchase Procedure, a¢ amended from tine to tine. In case af purchase of material of proprietary nature, such as, spares for Pover Rouses Machinery and equipaent, Air Conditioning Plant, ete. a11 General Managers and alt Chief Engineers shall, if interest of the Authority 50 Fequires, hive the povers to auend or delete such standard clauses of the Purchase Order form as are unacceptable to the suppliers of such material. J.4shell Each competent authority shall maintain a register recording therein the detatle ef the eanctione issued against various items under ead Avard of Contract/Work Orders for vorks against limited enquiry in tettgent situation to eneure thet the annual ceilings of maxtmum’ amounts Gre Bot exceeded. This register shall be considered as auditable doci~Tyivtel2 Rate contract shall be executed on annual basis for common, le items as far av possible. 74.5 Earnest Money/B14 Bond Fequired to submit any earnest money alongyith Varegistered firms/contractore/fires registered as approved foutrastors/suppliers vith contractors shall subait their tenders’ clongs with earnest money rectipt equivalent to « cum specified in the centr GRietn7 sepont ted in favour of the contracting officer through a Scheduled Draft or a Bank Guarantee valid for a period (a) Brom firms registered with chief Engineer (P6D)VAPDA (4) For foreign offer involving paynent by WAPDA in foreign ‘exchange: Bid Bond on prescribed fore of an amount not less than 5 Per cent of total value of their tender and to be inthe sane foreign currency in vhich rates are quoted. (418) Yor 1ocal offers involving paynent in Pakistan currency only i.e. without involving any payment. by UAPDA in foretgn exchanas Bid Bond on prescribed form of an amount not less then 5 er cent of the total value of thetr tender, 7-4-5.2 Earnest money deposit receipts/Bid Bonds of unsucessful tenderers shall be returned to then after acceptance of the tender, 7.4-5-3 Withdrawal or any modification of the original offer within the walidity period, shall entitle to UAPDA officer {aviting the teniers to forfeit earnest’ woney oF encash 81d Bond/Bank De Of the Authority or to take suitable action ageinat the registered tive Uke ‘petting © ban on future enquiries or femoval fromthe list oF ‘approved. contractors /sup! Ite {hiS.4 In case of accepted tender the Earnest Money Deposit Receipt shall be entered im the Cash Rook and treated a Security Deposit of the 75 Acceptance of Tenders/Quotations for Local Purchase of store Materials, Instruments, TéP for decentralised matevigt Materials, Instruments, T6F for decentralised material 7-5-1 All purchases over Re 20,000 shall be made through open or adver- tised tenders. Tenders/Quotations shall be invited froe WAPDA aperoted sid prequalified contractors/supplicrs/aanufacturers. Purchase of tater Hale through limited tenders/quotation or without inviting tenders/qoe. tations shall be resorted to only in case of unforseeable vork of emergency,‘nature to be certified by the purchasing authority or where the itens to Be purchased ave of proprietary character and competition in the market ~ Te for considered necessary. Tenders/quotations shall be opened, # comp seciGe statencne prepared and lovest offer accepted as stated under Para Tebs3e above: 7.5.2 Conditions for acceptance 7.5.21 The conditions for acceptance of tenders of centralized store Uitcriale given under Paras 7.4.4.1, 2, 3, 4) 5 and 6 above equally Tenly Here tcc. in case of acceptance of quotation in respect of decentra- {ised store seterials. 7.5.2.2 The local purchase of tyres and tubes for tamediate use without Tiliiag quotations, when there 4s no rate contract, shall normally be EL hod Manutacterers or ‘the stockists, as per thetr approved price Tete. 4 7.5.2.3 All purchase orders for materials with a value of over Rs. 20,000 tach and those for T6P articles. survey and draving instruments with « Sue of over Ro. 3,000 for each purchase order, shall be endorsed to The Chief Engineer (Inspection and Surveitlance), WAFDA, Lahore for ins~ pection of such aateriale before acceptance by the purchaser. As for the Perchase orders of the valve of Rs. 20,000 or less, purchasing authority Bhall ensure chat material already rejected by Chief Engineer (16S) {= hot accepted. “ 7.5.2.4 The decentralised items can be purchased locally after callin Lendeve/quotations either for Stock purposes to meet annual requtrenents seer mediate incorporation in works in energency oF othervise, but, {h either case, such purchases do not involve payment in foreign exchange. 7.5.2.5 Common vse {tens decentralised materials can be locally purchased provided (a) no rate contract has been executed by the Chief Engineer (bsp), for the dtea(s) to be purchased, oF (@) Af « rate contract has deen executed by the Chief Engineer (dep) “but the supplier cannot supply the materials within (hirty dave fron the date of issue of purchese order, Provided further that in case of purchase of these itens by officers of Distribution and Tranealssion Lines and Grid Stations, non- suilisbitity certificate will be obtained from the nearest Regional Store e oF 8.1 An officer competent to accept a contract ts also competent to Ghend it provided the contract as amended is within hs powers to accep gaend Cmope that the sanction of the next higher authority mst be obtained: (a) Af an amendnent involves enhancenent of contract rateket = ny 900 the bee Ine the ity Va Ling ein bby (®) to any anendnent after the contractor has signed the final DILL or im case of maintenance vorks after the expiry of” Period covered by the contract. If an anenduent should bring the value of the contract above Borers of the officer who accepted the tenders the auendaent vill te Referred tor acceptance to t value of the contract lies. In the sane inplicati 3 Authority vithin whose povers the revi. ich cases the anended contract will have a8 1£ 4 were originally concluded for the amended ‘The amenduent will be made in the forn of an annexure and not ta the fora of a correction to the original contract. ‘aRrAr30W ORDERS IN ORIGINAL CONTRACTS /UORKS ORDER 91 Every vork will be carefully const: order to comence work 1s given to the contractor so, that, wartation orders during the progress of the vork may be avoided av far 9.2 sible. Vartattons orders are not intended to carry out vholesale changes of specifications but minor changes vhich become necessary for constree: {ive reasons. Variation orders, vhen necessary, vill definitely stan how the ‘variations/deviations are to be measured and priced. 1a, sous cases it aay be neces to settle and to excesses will also be stated and the contractor’ a3 variation/change orders are linits given in the Book r order 0.1 to arrange 4 non-schedule item which requires Engineer. The omission of euch definite 8 may Fesult in claims which are difficult 8 allotments. Any additional tine allowed ‘Sgreement obtained. ‘The finanefai Povers of UAPDA Officers upto Vhich they can issue fiven in the Book of Financial Povers. ‘The fer to the aggregate amount of all such Assved against any one original coutract/work order AUDIT OF MUSTER ROLLS The following points will be seen in the audit of Muster Rolls: (4) The aritimetical calculations tn the Muster Rolls are correct. (41) Muster Roll is used for datly labour only and each Muster Roll has been approved and isgued by the Divisione! Officer shoving the Ho. of Labour, thetr categories, rates and period of eaployment. (114) The attendance has been marked by a responsible offictal. (4v) The attendance has been checked tvice by the 5.0.0. and once by the Ken in the period of euployment, if it is less then fone aonth. (0) The nanes, parentages, addresses and ational Registeration Hdentity Card Nos. of Labourer have been shown in the Muster Roll,t (vt) Corrections 4f any, have been properly made and attested. (vid) Measurements of the work are taken whenever possible and "ference to Meseurement Book and details of work done are given to Part-IIL of Muster Rolls. (vtit) Tey are preaudited and passed by the 8.0.0. before paynent. (ie) Te paynents are made and attested by the Officer of the highest standing available. (&) There ts no unusual delay in paynent of Muster Rolls. (x4) Unpaid amounts are dealt vith according to the rules. (x11) Thumb tapressions of the Labourer should be clearly obtained fon the acquittance rolls 11, AUDIT OF TENDER REGISTER, SCRUTINY OF TENDERS ETC ; 111 The foYlowtng points will be seen while auditing the above docu- 4) due pubrsctey has ben given t0 Savite competitive rates and | see mee sed Seuendarers. wae according to less neve~ ibete euttings are on repords (At) envelopes containing the tenders are on record, Wiis) the items put to tender are compared vith the items in the cetinates, (iw) the snount administratively and technically sanctioned has bean noted in the Tender Register, (w) all the tenders have been entered in the Tender Register. the negieter of approved contractors/suppliers has been main- Ealned and kept upto date, been cor~ (ut) the rates tendered by contractors/suppliers hat Fectly recorded from the original tenders, (vit) there are no faterpolarions and alterations in the tenders, (wii) the comparative statement has been completely checked with | the accepted and rejected tenders, bbeen deposited by (ix) earnest money prescribed in the tender hi the contractors/suppliers, \ 5 (x) for supply of material, Bid Bonds on prescribed form have \ iba Teleived from the tenderers; Bid Bonds/Deposit Recetpts/ permet Honey have been Teturned to the unsuccessful tendererset and the io ath sl after the decision of the purchase has been taken, (a4) cost of tender hae deen recovered at the prescribed rate and entered in the Miscellaneous Receipt Cash Book/Colicetion Gash Book, (14) reasons have been recorded on the comparative statenents for acceptance of other than the lovest tender, (x11) Earnest Money/Deposit Receipt in respect of successful tende- ers has been entered in the Cash Bock, (xiv) the arithmetical calculations, where involve: (xv) tn the case of a negotiated tender, it should be noticed that negottation hae been made with all the tenderers, wo epistles ete Dee eis si eae ste ey ee eed ned ee (xvii) the contractors on the approved 11st have deposited the annual fee as fixed by the Authority from tine to tine. Annuel fees of the various categories of contractors are es under as fixed under Authority's Office Order No. #0.1(W)RV(87)/2186— 2213 dated 3/6.7.1983: Lintt of tendering onus A Wo Line Rs. 500,00 3 Upto Rs. 5,00,000 (Maxima) Ry, 250,00, © Upto Re. 1,00,000 (Haxtnun) Xe. 100.00 D 50,000 (Haximun) Rs. 100.00 e 25,000 (Maximun) a. 100.00 (wviit) the procedure described under Paras 7.3 and 7.4 above hes been followed. ete. At wil (4) 46 the amount of the contract exceeds Re. 1 crore a clesrence from Central Contract Cell has been obtained, (it) the cerms of the contract are precise and definite and there 4s no room for anbtguity or aisconstrusion therein,(Ait) Finanekal advice has been taken tn the drafting off contracts before they are finally entered into, (av) standard forms of contracts nave been adopteds, end pric? seandare nce of the Central Contract Cell and the Legel Advi~ concurheDA hes been obtained for entering into contract agre— nents on unstandard forms, (w) when the lovest tender 19 not accepted, approval of the next Mgher authority has been obtained, (wt) even in cases, where « formal written contract 19 not nade, Se" uer for supplies, ete. should de placed without, st Teast, a written agreewent as to pricey cots yore ue Sua nae uh sone oreo ai ht oe agen ety ha nt frm raraeesr (4x) the rates secured are the Lowest obtainable keeping in view the effictency of the vork and suppliers, ete. Ufeopine raves atioved compare favourably wih chowe preratlins ime raten atloee eetviatone Tor iatlar w7pe of works nthe netanbour aay: will be comented vey et) the contract doen aot include uncertain oF fndetinkte HAbLII- SESE eee aise, Git) the Authority 4s not rendered able to toss due to ontseton Uy" fhe necessary elause oF insertion of any unauthorised Shaumce oF by feulty wording of any condition for supply of causes ie or Labour or other facilities to the contractor, the contract has not been made by or on behalf of « minor, ynere contract has been signed by a person holding Power of veers cy"on behalf of @ contractor or a firm, a copy of the seiernet attorney duly attested by a court of law, « notary pottic or aa officer of the Political Department in the case Ue drivel Areas, has been furnished, ‘the officer concluding the contract on behalf of the Authority te competent to do 20, it corrections tn the contract agreement have been attested by both the parties, the types end prices of stores and the rates of equipscnt to sersagbtted by WAPDA for incorporation in the vork are clearly Theieated in the Schedule annexed to the Agreenent,(Gvitt) provision for supply of stores by WAFDA Je made in the agree- Bent only when this vas notified in the Tender Notice, (im the absence of undertaking to supply stores the contrac tor. ’ are \skely to tender higher rates and the issue cf avi ; will be an undue benefit), (six) departure from the terms of the agreenent, e.g. supply of Imaterial to the contractor not stipulated, or in excess of the requirement should be investigated, selling at very high rates compared with the Stock Tesue Rate e.g. Cement, Steel, Coppers Mimber, etc. supplied to the contractor or issued direct to the works “are particularly checked with the quantities ae et " y BE so vcrace ae ose heme ies Hy, Belov the Schedule of Estes, the provision to the samition? Biceenes ee cahies (e pence ee ets) sen ene zi Oc tos nes stnioln sj es abeine meats ei Regerpte ere ie i ae ena s age schedule of rates, schedule af work to be done, ete. are also signed by both the partie: cso szsacnrvi= a diy cesta oh ER Sethe cna —_ailnialaat eis. se = ee es ere cae i ni ees eens Bein of ee rb vy hs aaah Beste, oon ena (earn eee soe areas pe ee Ess " (eevts) when an anenduent brings the valve of the, contract above the poer of the officer who accepted the tender, the anendnent has been approved by the authority within whose povere the revised value of the contract les, Ceri) the atdtctonet work te ordered in accordpce vith the conti- Eine of the contract vithin the peed apvered thoebye as iy (Gorn) the anendnent to the contract has been gede after both the parties have accepted the same,(vxxt) tho variations orders in the contracte/work orderg will be {eeued only when both the parties have accepted the sane, — (seit) the variations in the contracte/vork orders have) been made by the officer competent to do so. \ 13. MEASUREMENT BooKS 13.1 The measurement book provide a complete record of vorks performed under a contract and therefore, includes all itens having a financial velve, so that fall support ta given to the amount of the final sum due to the contractor. It te the baste of all accounts of measured vork and Of materiale recetved which have to be measured or counted, The new work done by department 1s alao measured and recorded in the Neasurenent Book. Such vorks are usually 1tke giving of service connections to consu- ere, augmentations of LT/AT lines, replacenents and renevals of electri- cel or building works: 13.2 Measurement Books are very important account records. All the books belonging to a Project/Divieion should be numbered Z My and regioter of these should be maintained in the Budget and Account Officer's office showing the serial No. of each book, the nane of the S.D.0. or Other officer to whom the book issved and the date of its return. The eventual return of all books should be vatched, and books no longer in Gee chould be withdraym promptly even though not completely written up. 13.5 On che occasion of transfer, 1¢ will be the spectal guty of the 5.0.0°s to see that the Measurement Books, with the relieved officer at the time, are recorded in the transfer papers by the numbers |they bear, fine are scknovledged by the relteving officer, and that necenyary correc” Hons are made in the name of the officer on the fly leaf of the Measurement Book. i 13.4 th case a Measurement Book 1s lost, an imediate report should be msde to the facte of the case, and this report must be promptly forvarded to. the, competent euthority with the explanation bf ‘the li parties concerned or Feeponstble for the loss. The loss of « Heasurenent Book is written off only by the Authority. i 13.5 tm recording. weassrenent, the folloving general ihetructions thoand be earetally shaarved ‘Vle) deratied seamoreents should be rezorded only by/Baesstine, Motstone tecettye or Ansietane Engineer oF bf Brecutive Subordinate dacharge of works to whom Heasurenent) Books have deen tasued for the prupose. ] SVs) 51"setnrmcte shuld woh gatrctom i ssmerenes Sook and no where else (©) Each set of measurenents should comence with entries stating: (4) Full name of work as given in estimate, “di Wea 2 F (144) name of costractor/aupplier, E HPht teat a ata ey amt, (a) i MRE ee as ar Se es ee est,, a arte coor oft eed eo Progestin aA 2 Sele tape at ¢ (ou) arp aes & viti) in case of a running account « reference to the previous = set of measurenent, and {et ak eue epg aetan ptoes oleate ae ‘ Sree 4. Purchases for Stock be Purch 8 for direct iseue to work (here enter full . ‘ene of the vork as given in eetinate). ' © Purchases for issue to contract (here enter full he nese of vork as given in estimate). Ths information should be folloved by the actual measurenents {akon and should end vith the dated signature of the person asking the 4. As all bills of contractors are to be verified, before Payment 19 made, with the quantities recorded in the Heasurenent Book, it is incumbent on the person taking the messurenents to record the quantitice clesis and accurately. He vill aleg work out and eater ip the Measurement Sook the Figures For the contents oF area column, + The pexes of the book should be machine-nunbered Entries should be recorded continuously, snd ne blank Page left or page torn out, Any pase left Slant inadvertently shovid be cancelled by diagonal ines, the cancellation being attested and dated, f, AM entries in the book should be tn ink. Xo entry say be erased. If a mistake te made, it should te corrected by crossing out the incorrect ‘words oF figures and tnserting the corrections, the corrections thus made being signed and dated by’ the responsibte officer. when any mesguronents are cancelled, the cancellation must be supported by the dated initials of the officer ordering the cancellation, the reason for cancellation being alee recorded. ad ay a fe13.6 Eleceriéa] Measurement Book cries] Measurement Book ii.o-1. THis Qook bas been tneroduced tm the department {0 "522" S0CT4og 15.6.1 Tie et ecteteal Works executed G€parimen tL oe rtas of of measiremen crerays ita paves eve aestgaed to factloraes Tm of TT oe es tbe eneakial, god tet of the mates) factually meksaronent SSO pramaterred fon anetler 300" Th cee er a cea aia estartah ena ince avd. weed work. SSrharative statement ts drave up £OF- cep yavaunctaeeeleas af Cee Teaubtrtah AMIRI SEPT” Gi) Modifications to the extsting services. (111) Transfer of aarvfees from one proatses ro the other: 13.6.2 Ae soon an the services are foatalteds seasstenents 916 S°°T2 vy 12.6.2, A 000 tad columns 1 to 7 completed by Mm. The ert placed aa renee acs welts cab ite OE UMD Sari ond See egalact afore par cont including costly 1teme and spends Te Anitiale against Upto 20 er rn apace provided for the paryene. AFSST OG the the Jems checked {2 Finn ep column 9 with reference oy ter So0oe ASon ov Material Tadent)/Stare Regutoteion Site ce “Transfer Heauisttton (00% Meer Guerant,. He elep records «certificate {hes the Warranty as pet coluan 9 hes been teaued to the work: vireis no tavlealt suede 06 DAigthonlancees uncer sr1= ZEN ME been we oaeh against one requisition only. cbc3 won Covune 9 te completed by the $:0.Co» the comparative reessesey 1956-9 UT aad approved by che 0.0. tenaring the ori6iN6 idtscrepencies te TUMa? of EB Commercial Tnstructions pagee 71-22) b.7 Check Nengurenent_ Sook/Seal1 Wensurenent Book Heasureacat Books, the $.0.0. has te Meamired in Paras 13.6.2 and 13-6-3 atisty biuself 100 jyusitty of stores received. As for Dement Book (this book ts used for recording mea jpplics wade in connection airs od ted cate) tom S:0.01 glare Tasciged:'2) Ca nbve boon recorded in the Measurenent Book, (iv) ail neasurenente have been made in inkjno eessurenent, {5 aaa aetedeach cutting/overwriting/cancelletion has been crased Moy the officer, competent to do so with his dated Soitial (w) ene vo-veed store has been either returned co the erore oF tranefered to sone vork, (vt) alt the store received/installed at site has been entered {9 TA, MMtacusenent Book and there 1s no delay in sssuing the GlR.N. for the stores recelved, (wit) entries regarding description and quanttttes of material nade entetet, rene Mcamurenent Bock and in G.R.N, have been compared ith the Purchase Order and Supplier's Invoice, (vitt) all the charges 26 shovn in the shipping document in respect sty Moree tnaterial and all charges. on internal purchases ‘Ampertted dn paras 16.2 and 14.3 have been incloded. in the valuation sheet (ix) calculations wade in, the Measurements Books are arithmerically calce tree aggregate, measurenent do not differ abnormally fron the estimated quantities, (x) deductions on account of doors, vindows, almirahe, venttle, deductions fave been nade fron the measurenents of walls of a ballaing, recorded in the (a1) payments made to the contractor/supplier ‘agonal Line to Rexsurement Book and entries cancelled by # Safeguard against double paynent, (att) weseurenents of maintenance and repair works of buildings weaeere Eavourably with the aggregate seasurenents of Standard Nessurenent Books, (eit) tn case Standard Measurenent Books are not maintained, the in caeueuts paid for the last year should be looked into cater eeeication which would naturally call for further probe, (xiv) Measurement Books have been received by the Divisional Officer pace # year for his reviewand (av) loss of & Measurement Book has been written off by the Autho- rity.ase he ute ay aay vot the 16. ADVANCES: 10 conrRacToRS Lj Tbst Advances to contractors ore an'a rule pruiibiced and ordigartiy fiery mdesvour should. be aide” to saintate. © epaten vader ontCh ne puyatrm are nade ‘acept for work sctually done: WWasyy however set Be fons to adhere strictly to thie rule in il eases) tnecever on enceytten favusin te. the rule sha_conerece decumut, shecid itary specify the Peete to br aivonteds ets gies Gee ar cnarge cape crested ta fete ae frother suitable and, for the huthortay, tafe met Gaesrcovery of tar sment either te e20t or by y, advanced, or by sd and the terme for jctiona from bills, 16.2 “An advance to a contractor may be made for acquisition by hin of equipment or material provided that euch goode are imperishable. Ko cumitnent should, however, be made for an advance in excess of 75 per ent of the value of the goods ro be acquired. Rayment for the goods Should be nade to no one other than the actual gupplier of the goods fither on delivery of goods or againet documents providing proof of consignment to project site, in the mane of the Authority but on contrac 16.3 Grior approval of the Authority vill bel feguized in any case where the terns’ of the proposed advance exceed 79 per cent of the value sf the goods to be acquired and where an advance ie/given athervioe than & secured advance or where the amount of advance is to be pald to the Séntractor and not to the sctual suplier of the goods. WOTE: The term secured advance is applied specifically to an advance pede, on the security of naterials brought to the site of work, fo a contractor whose contract is for the completed ‘tens of work. 1 164 An advance for purchase of equipnent should be recovered in fixed ‘astalments, with the final instalment falling due for repayment tefore the estinated date for completion of the contract. An advance for Purchase of materials, when not repayable in cash, should be recovered hy deduction fron running bills. The recoveries ms ‘be based on the mntities used in the vork done for which bille have been hhinelef, that goods of the value required, under the fers of the contract 16.6 where a contract requires advance payment {9 the contractor under sertain conditions, the Budget and Accounts Officer/ Divisional. Accoustane culd see that such conditions are fulfilled before the initial peyaent is made. One of the terme normally merrie acdntrast that rovides for an advance or initial paynenty {# the production by the fone wuthority. Ta such = ctor of a Bank Guarantee in favour of the‘case, the Budget and Accounts Officer/Divistonal Accountant should, before Setiis the advance payaent, receive the Bank Cuarantee and after careful BRASS Mtsety minselt that there ts no escape clause in the guarantee hich reduces tts apparent values 16.7 Where no provision exists in the contract for paysent of advance at financial asatetance in any other form to the contractor, interest Shout be charged on the prevalling bank rate on such advance of monetary Shtue of such asstatance granted to the contractor. 16.8 here competent authority 1s convinced that for proper execution Sta work, te 1s necessary to allow the contractor some advance Pinsnctal assletance, on intere"t free basis, then a stipulation to this cereal ould be given on the Tender Documents subjec: to approval by the Authority. 17, SBQURITY pEFOSITS 171 Some contracts may require the contractor to lodge vith che huthority 2 security deposit in cash, Bank deposit certificates, Govern ENC haper or other tnvestuent as approved by the Authority for the dve pertofeance of a contract. Sometimes security depoott is deducted 2 5 perfetee co 10 per cent from the gross amount of the contractor's Btls, Per “the value of the work done at contract rates. In case of supply of seer eiel, WAPDA nay, at ite discretion, ask the euccesoful bidder to mateTak one or ail the documents mentioned belov, before placing + forms) Grder on oF signing the contract with him: (a) For Foretga Contracts (4) Bank Guarantee to the extent of 10 per cent of the value of the purchase order, (40) Bank Reference, (Att) Previous experience or reference. (ay) Performance bond on prescribed form to the extent of 10 per cent of total .0.B, value of the Purchase Order. (b) For local Contracts not involving any foretgn exchange Perforance bond to the extent of 5 per cent of the total value of the Purchase Order 1 Security deposits received in cash or recovered in the form of juicentage decduction from contractor's bills will be entered as a receipt percentate we gook and credited to head "Deposit. In all cages the sector will be furnished with a departmental cash recetpt for the seiuat of the security deposit recovered or deducted from hi Gihtractor's receipt will be taken on the bili for the ful contr ransections relating to securities other than cach deposits Sat, WZ bare through the accounts of the Project/Diviston. The Divistone) n‘fore refol Officer will make arrangements for the custody or dispose! of security deposits and will draw any interest due thereon on behalf of the depositor, ~ 17-3 A contract agreement vhich requires a deposit in cash or tn securities or a bank guarantee, and which eapovere. the Authority to retain a fixed percentage of all bills as either additional as alternative security, ordinarily specifies the tine and conditions under viich the foney held is to be refunded and documents returied or the amounts to be forfeited or utilized by the Authority. Before approving any claim for the refund of such security deposit or retentions oF return of documents, the Project Officer authorised to pass an order to pay and Budget and Accounts Officer/Divisional Accountant should satisfy themselves that she specified terms and conditions have been fulfilled and thet, thers sre no outstanding counter claims by the Authority against the contractor, vance vetary xtion this va by 17.4 Ihe contracting officer has the right to-forfeit the security/ performance bond if the contractor commits any broach of contracts faite {2 supply the goods within the tine specified, fails to account for the Ssport licence issued on account of the purchaser, fells to return draws ings, design or any material belonging to the contracting officer vic wat to be returned in good condition to the contracting officer etter the successful termination of the contract. 17.5 A security deposit may be refunded to a contractor on his executing @ Wo Denand Certificate as soon as possible aftes the performance of work/aupply, contracted for, or after the expiry] of the maintocance period, {f ‘any, prescribed in the contract and with duc regard te the state of his accounts. 17.6 Wo security should be refunded t111 the particulars of the claim uve been verified vith the receipt entries in the relevant book and the receipt granted to the depositor for the security has been surrendered, Uf the receipts is not forth-coming the acknovledgeneat of the contractor on the cash payment voucher or on back of No Demand Certificate will be considered as sufficient. a 18, ISSUE OF stoRES 10 cowreacrons of z ie Sttee eye faded to a eonracer fo dp 0 work fr ish fhe contractor ta’ paid for erection only. In-thte! Cane. the core of the Bares at Stock ooce Rate on the date of eave wifi be chareed dines fod finaly to. the work, the. stores being glove to the areas Greet No recovery in respect of supply af tach seorge Whi ey eae ree fae cvcrestor™ t of the orm of 18.2 Stores may, in special case, be supplied for use tn vork for eeetpe which the contract is for the completed work (i.e. lat rates covering the se the sest of labour and stores). Such stores will be issued to the contractor or the {in cccordance with the teras laid down in his contrast. 1. The ane of posts Monat 18.3 Material is issued to che contractor ageinet|s Requisition S1ip/ Ystertal Indest approved by the Xen concerned. The Budget and ccsests Ofticer/Divisional Accountant on receiving the Requisition SiigitecernsIndent will price the {saves at the {soue rate at vh{ch they appear in the voluc ledger- The value of the matertal at thie price vill be debited to the contractor's personal account in the General Ledger and falso in the Contractor Ledge 18.4 Where under # contract the Authority is required contractor with materials at fixed rates, then on receiving a progres fr final btil from the contractor the quantity issued to him and used by hhim on the work will be valued at the agreed rates for the materials. The difference between this value end the value of actual issue rate ‘/transfer entry from the contractor's . ‘Progress Account. On the other hand, f firing the Authority to supply at {ised prices, the contractor will be asked of the material together with a curcharge of 10 pervcent for handling and storage charges or the current market price, hichover te higher” This surcharge will be credited te Srorage Charset provide the Recount. 18.5. Toole and plant may be temporarily lent to the contractor under Ghiers of the competent authority. In such cases hire charges should be Sretvered by the Project Director/Ken at the rates given in the 4.P.0- Sthedule of Rates end Credited to Miscellaneous Recetpt Account. 19, DEDUCTIONS. FROM. oR. Issue. 19.1. Where under the terms of a contract materiale are to be supplied by the Authority at fixed rates, then recoveries from the contractor “hould be at the agreed rates. Tf the quantities supplied exceed the satities consimed, the contractor should be asked to return the excess entities. If, im any case, it Le not possible to do so, then a deduction (auld be made from his bil for the higher of (1) the actual cost of Such excess material to the Authority plus « surcharge of 10 per cent For handling and storage, or (it) the current market price including pecking and transport. mere under the terms of the contract the materials are to be supplied at fixed rates, and there is a subsequent fall in market prices, then the contractor should sot be permitted to obtain the materials from Clsewhere. Tf he does, he should either be asked to receive from the Rothority the quentities which he should have taken tn tl Ghd 's deduction should be made from hie bill, for, the Guterials at. the fixed rates, or a deduction should bi ‘the difference berveen the value of the materials at the agreed Ja the value of the then current market prices. ‘LIQUIDATED DAMAGES, Fs ax 20.1 If the contractor fails to supply the material oF|any consignment thereof or execute the work within the specified peried/according to, the ShectFtemeton, design, etc. the contracting officer shall be entitled, BMG Sption, either (1) to recover fron the contractor liquiaated Janayes af the rates specified in the contract agreement, or (tt) to getthe ed, tated aget the work done at the risk and cost of the contractor or (111) to cancel the contract at the risk and cost of the contractor. In the event of faction being taken under (11) and (1it) above, the contractor shall be Mable for any loss which the Authority aay suffer on the account, bat the contractor shall not be entitled to any gain on getting the work done at the risk and cost of the contractor. 2, AuprT oF _apw ITY Det IssvE -EALLURE_AND TERMINATION OF CONTHACTS. 21 White auditing payments/recovertes of advances to contractors, receiving of security deposits and. their ae esue of stores and thetr deductions from contractors it will be seen that’ (A) the advance patd 1s either covered by the contract agreement or by a specific sanction of the Authority, (AA) the security to be given to the Authority against advance ‘paynenta has been obtained from the contractors, (Ait) the arrangenents for advance payments and secured advance are ouch ae not to involve risk of loss to Authority or as fot to permit unauthorised aid to the contractors, (Ay) the secured advance has been paid to the extent of 75 per cent of the value of imperishable material brought at the site of work, in case the amount of advance exceeds 75 per sent sanction of the Authority has been obtained, (¥) the advance patd is recovered in cash or in instalments by deductions from the contractors’ running bille before the estinated date for completion of the work, (vt) where no provision exists {n the contract agreement for pay ‘ment of advance to a contréctor, interest has been recovered on euch advance at the prevailing aarket rate, (tt) the security deposit, vhere needed under the terms of the contract agreenent, has been recovered from the contractor, (vitt) the security deposit has been refunded ito the contractor (a) after his obtaining « No Denand Certificate fron the depart. ment, (b) completion of supply/vork and (c) after the expiry of saintenance period, if any, prescribed in the contract agreement, (tx) the security deposit has been refunded after verifying the Felevant book and after contractor's surrendering the departs mental receipt granted to hin for the security, (2) stores have been issued to the contractor in accordance vith the terms Tad down in his contract, |(x1) Lf stores have deon ecued to the contractor at the fixed rates, the recovery has been made at the agreed rates, Af the otores are not to be {saued to the contractor at the Fined rate, the recovery should be made at the stock Tssve Rete plus 10 per cent for handling end storage charges oF the current market price, vhichever 1s higher, (Lt) hire charges for Tools, Plant tssued to the contractor have been recovered, (xiv) tf excess material hes been tssued to the contractor and he hhas not returned the sane, recovery of the excess material will ‘be ade se the Stock Teeue Rate plus 10 per cent for hhandling and storage charges or the current market price including packing and transport, whichever 1s higher, 4f the contractor has not dravn the material from Authority in the Contract Agreenent at the fixed rates for ‘andthe current market rate has been recovered from the if the contractor has comaitted any breach of contract under which security depostt/performance bond 1 to be forfeited by the Authority, it is to be ensured that this action has been taken, Af the contractor hes failed to supply the material or any consignment or execute the vork according to the terms of the contract and the Incomplete vork hae been executed at ‘the risk and cost of the contractor oF the contract has been cencelled at Ms risk and cost, the Joss sustained by the Authority Is recovered from the contractor (he 1s not, how ever, entitled to any gain on this account), (avilt) the liquidated damages, where Leviable, have been correctly recovered from the contractor, and (xix) the procedure laid dow {n Paras 16 to 20 above regarding Advances to contractors, security deposits, Issue of material to. contractors, deduction for material, liquidated danages, fatidres and termination of contracts, has been followed. 22, GOWTRACTORS" BILLS 22.1. The preparation of @ bill ts the function of a contractor. An ‘enployee of the Authority should aot prepare bills for contractors except those petty contractors vho are {1literate. Contractors should ordinartly be asked to submit thetr bills monthly for works done on a running account. For other works they should be asked to subsit their bills early as possible after the completion of the work. The bill should beon the contractors’ bill form which should preferably be 2 printed form. The bill should state the name and address Of the Contractor, number ande date of the contract, full name of work, sttuation of work, date of easvrenent, vhether it is completed ork’ or work-in-progress, and the number and date of the previous running bi11, 1f any. The bill should sive (a) full details of the vork done with actuel measurements, the lue of the claim for each item and the gross total amount (b}_ the deductions, separately for advances, for value of materials and services ‘supplied by the Authority end for retention moneye, and (c) the act gnount of bill. The DI11 should be signed and dated and ony opetcal Sostructions for payment to a bank, for which a Pover of Attorney has been previously registered with the project, should be noted os the san. 22.2 Contractor should be asked to subait separate bills in respect of each contract or work order. Transanctions relating to separate eon. {racks oF separate estinates of separate component unite of work shovld sot be brought on to the sane running bills oF final bills. Any except ios say be made where separate estimates or separate component units of work fre covered by the same contract but in such a cece the bills sheule show clearly and separately the value of the vork done against cach fatinate or component unit of work. 22.3 On receiving a bill the Xen or # Sub-Divisional Officer acting on Ms behalf will scrutinize 1t and check the particulars. gives with thoe recorded in the Measurement Book. The calculations of the contents or area should be checked arithnetically under the supervision of the Officer concerned, Each of the rates given on the bill should be checked individually by the officer hinself, and full rates as agreed to in the contract documents should be alloved’4f the quantity of the work Ls made upto the stipulated specification. When the vork falla short of chat standard and under the agreement it is permissible to mike © finel Payment {f the contract 1 determined, or on an account payneat if che contract is to run on, only such « fraction of the full reve should be allowed as is considered reasonable, vith due regard to the work remaining ‘to be done and the general terms of the agreenent. 2.4 Before approving the bill for payment the Executive Engineer or the Sub-Divisional Officer acting on hte behalf should compare the quanti. ties in the bill vith those recorded in the Heasurenest. Book snd. see that the rates are correctly entered and that all calculations have bess checked’ arithsetically. The No. and date of the Heasurement Book in hich the detatled measurements are recorded and the date ou vhich the Seasuregents vere made should be noted on the bill. When the bill 1s os Fonning account, t should be compared vith the previous Dill, if there is one. The gross ancunt of the bill, the deductions to be made for the advances, materials and services, and for retention moneys shoold be verified,or 1f not shovn on the bill should be written on ie, 22.5 If 4 contract provides for periodical progres should be taken that recoveries are made for the proportionate value of any natertals and services supplied to the contractor, and the contractor tuas, in fact, complied with the collateral obligations, tf any. tmposed synents, care 1vom him by the contract document. 22.6 After completing all the appropriate checke the Executive Engtacce see Mcaittstonal.citlcar, 1f beris:en)enpavared),suosidl recor oe Or the SuuDA Tact to pays, specifying. both da wande end figures hs aoe the MII) a oraetiye order which should be in tnk must be signed im end iSothe Officer concerned and should be dated 32.7 Fron the Measurenent Books all quantities should be clearly £102 227 cate uilies When, 20 order’ to pay has bees signed ons DATA». evecy one i ua: Meamurenens Book \conteiatng the detatln soeteietary ss) ase of vibe scored out by a dlagonal red ink Line, care being taven 6° invartavly Pe actual Figures for seasurenents renain clearly visible at The Budget and Accounts Officer/DivistonaT Accountant wilt chert 22. sTAaIEAt ealodtacions af! ‘eoe bIlIs mad Compare, Chen Wan oe ce artSETe aah,’ wisre’ the’ W11Y"-fe"oa' sewing accnit DE O00 toes Mensa ical ‘ealeulactons of not eae than 10 per cent of oo check MiLaof che relevant entries recorded An the Mesrureneas [008 ot najor items of Te certified by consultants, carry out such © check fet See eed te cvessd oe tinal Wall, Me(Aalh PAETY Oy the UY Atofot ene relevant entrien 10 che eerurement BOOk- Oo 002 complete check Of if that the paynent clained de in accordance vith toe a a eck werk’ teaar or wekdr! rolevadt” doceaaees (9s Wee Perere oe, Mast: voce, anda tron chm tan forthe! vengaah ERE 12° Giterials and services supplted. 422.9 1m checking she deductions by the badge and, Serretts officer! B29 cco eee teas dara poeta Se thkeal, nt (6, MOCHA ES Funatng bile to avotd the ‘advance Large than the Dr'done under a contract. Most contract value of the ge that the Authority hall, retain a stated pereestast Of documents Provide otra tilt afeer the end of the guarantee Periods 6o¢ he ene ory Aecounts Officer/Divietonal Accountant shall Verily £20) the Boduet, and Aowgade. from che: bill for“ehe correct, eurent f 508 He awit cleo verify that recoveries made for naterit]¢ retention 2207, for ene full quantieies supplied or shove in Be recores and services orga, and that in calculating the recoveries evel quarct is) Sued in accordance with the prescribed rul oe eer ne officer vho has passed the bill for payment gate ot of that Officer's authority to do eo. Were and shal) tee Sgretfication by Consultants: the Budget Sif beset’ DAD1e Teter oil Accountant shail see chat the required constftcete 1 Otttcron the Bill gr om the voucher or ts attached €0 ft: ra.a0 1m exceptional cance, where due to a delay on the pir} of Frovect Uiittere, eaeutenente have S26 tel aon by a contractor otiscar: oeanuemtts cunt nov ecendna 75 percent of che ext inced Provistonal payment of meine appropriate recoveries aay/be nade wich value of the work dont She praject birector piven in writing. on tht we rmseTsalT rendered by the contractor.‘SONTRACTORS' LEDGER. Dil The accounts relating to contracts are kept in the Contractors! Ledger, a separate folio or set of folios being reserved for all the ‘frmsanctions with each contractor for whom a personal account ts maine tained. 2.2 A personal account shall be opened in the ledger for every contrac- tor, whether or not a fornal contract has been entered vith Atm unl the vork o supply entrusted to him not important and no paynent is made to him except on a First and Final bill on completion, If any materials fare issued to the contractor or any payments are made on his behalf, ledger account must be opened. 23.3 the Contractors’ Ledger shall be written up in the Divistonal Office. Te 48 not neceasary for the Sub-Divieional Officer to aainealn Similar ledger in his office,but if he maintains one, the Divisional Office may not require hin to furnteh extracts therefron. B.4 The value of the work done or supplies made by a contractor shall be credited to his account only when his bill has been passed and Payment made thereon. Debit entries in the ledger should be made on the basis of transactions recorded in the accounts, the postings being made fron the supporting cesh, stock or adjustment vouchers; liabilities sot yet Hquidated shall be excluded altogether. The value of materiale, tf ‘ry, issued to the contractor shall be debited to his account on’ the tuthority of his acknovledgeucnts WE: Security deposits of contractors are not to be included in their Personal accounts in the ledger. 2.5 the Contractors’ Ledger shall be closed and balanced monthly. The closing balance of each personal account shall be detatied so as to shov in respect of each separate work the anouit outstanding, if any, tader each of the suspense accounts - (1) Advance payment, (2) Secared ances, and (3) Other Transactions, with a quotation, in each case, of ‘the last Tunning account bi11 and of all the vouchers supporting unadjested outstandings under ‘other transactions’ aot incorporated tn the last running account bill. jonal Accountant 1a respons ‘of ‘the contractors" ledger and for securing agreement, month by month, between the balance detatled in the vorks shetracts’ and the corresponding balance of the accounts tn the ledger, 4s shall forther soe that there te no indication of transaction per fsiming to a running account having been settled on a form of Bill net permitted to be used for the purpose. 27 Periodically 11 the personal accounts in the ledger shall be exantned to see (1) that balances do not renain outstanding Yor a long fine without justification, and (2) that in case of running accounts Bills are prepared at reasonable intervals.23.8 A contsactor requiring a copy of his runatng account {11 or @xtract from hts account in the Contractore' Ledger shall be furnished With the same, He shall be encouraged to look at hie account in the Jedger and sign 1t in token of his acceptance of tt. 24, MORKS ABSTRACTS AND REGISTER OP WORKS 24.1 The permanent and collective record of the expenditure incurred in the Division, during year, om each work, is the Register of Works. This Register 1s maintained in the Division and 1s posted from the Vorks Abstract. NOTE: I An account of all transactions relating to a work dufing a sonth tn respect of cash, stock or other charges is prepared by the 5.0.0, {n one of the Worke Abstract foras, as detailed below: (4) Works Abstract-A (Form CP-WA-33/PKA-10) for Major Works vhen accounts are kept separately each sub-head. (LL) Works Abstract-B (Form CP-WA-36/PWA-11) for Minor Works, when accounts of final outlay are not kept by sub-head. MOTE: 2 In electrictey departuent of Operation Branch the following forms of Works Abstract are used which are generally known by the nane Of Job Cost Aberract: (4) EBCA-SI-A For Major Works (44) EBCA-SI-B For Minor Works (4th) eBca-Si of works 26.9 The register for Major Works te maintained in Form CP-WA-40/B64-12 wha tor Minor Worke ins simple Form CP-WA-#1/PWA-13~ 24.10 One oF wore pages are allotted for each work. Postings: in the wiyloter for each work comences with the folloving tnfermatton: (4) Wane of workpata More werk ‘ary her: ‘open tonal hie ark at ie tthe after fe by Works ete etn trial fed to saz fa the (41) No. of estimate and sanctioned anount (1 Sanction Nox and date for estinate with name of sanctioning authority (iv) Funds allotted for the year. 211 After closing the accounts of the month the Works Abstracts are subaitted to the Divisional Officer in the Register of Yorke Cafe fetording entries therein). The Divistonal Officer then record he Fenarks with regards to the state of accounts of works and Nie Checn orien in commection vith actual execution of the worker After che nie iat Officer has signed the Regtster of Works in cohen of having exatin at secounts of the vorks, the Works Abstracts are returned to che oD for taking action required by the Divisional Officer as recorded on vay page of Works Abstract. Thereafter, the Work Abstracts are secerdes Vink the 5.0.0. 24.12 Walle reviewing the Re shall a ister of Works the Divisional officer the following points: (4) The ‘expenditure 18 posted by sub-heade of the sanctioned cstinate and besides posting the amount and quantity of work under cach sub-head, rate of coat has also been worked sur Tats is for Major Works only. (41) The causes of actual ‘sub-heads, vorking rat Works Slips" and also when oF probable excesses over estimates (rate of cost), are ascertained and are sent to the competent authority, when the the estimates are required to be regularised, ‘more funds are required to be asked For, (444) Te the expenditure te betag incurred vithout estimates, oF alotment of funds, acti fon 1 taken immediately to set right the irregularity. (4v) Ie any work 1s shown to have been completed, prompt action As, to have the Completion Report prepared and subaitead eo the competent authority through the Manager Finance son, serned/Director of Accounts AEB, as the case may be GP) Besides ooking into the progress of expenditure on each york, the Divisional Officer should see that the evepecse + ascounts of the Contractors do not shov sny unaueherines delay and the figures are gradually reduced so that on cose. letton of the works, co balance ts left under the suseoree NOTES: Works slip 1. It te a statement showing in excess of the esti likely to result ine 8 anticipated position of expenditure imated amount of the ork when tt is sxcess by wore than 5 per centTt ts prepared in the Divistonal Office for, submission to the competent. authority and should bring out the followtm, facts: (4) the anctctpated excesses, (A percentage of excess over the sanctioned estimate, (itt) reasons for the excess 3. The excess is due to either increase in rates or change in doetgn. hile submitting the works slip it shovld be seen Ghether a revised estimate should be prepared and submitted for sanction or the excess should be explained in the comp- Jetion report. [AUDIT OF CONTRACTORS BILLS, CONTRACTORS ' LEDGER AND REGISTER OF works White auditing the Contractors’ Bills, Contractors’ ledger and the Register of Works it will be seen that: (4) work Bu (4) the work bills have been submitted in the prescribed form and are in original, (44) they have boon duly recetpted by payees and that vernecu- lar stgnatares have beea transliterated, ‘The Contractor s receipt should be for the gross amount of the Bill, tse. inclusive of the azount if any, deducted on account of stourity deposits, (410) the detatio work upto the total and that the torals have been shown in words as well as in figures there are no erasures and that alterations in thetr totals have been attested by the officer concerned as many tines as they have been-made, the bt11 has been signed and passed for payment by autho- ised officer oaly and that so bil] or pay order enfacenent has been signed by a subordinate for an officer, the bills have been signed in ink, copies of documents, ete. supporting @ bi11 are original. Yn case in which duplicate copies are permitted to be dent, it will be seen that they have boon certified by fan authorised person, (wilt) the revenue stamps of proper denonination have beena bea the nt taal tobe aby been «wo w oa) oan ono, (sy) ow) cwt Gets) (wits) (xt) (xm) affixed to all. bile for sums in excess of Rs. 20 and the stanps should be punched or otherwise defared at the tine of audit, = the expenditure not covered by a contract or agreenent has been incurred wnder orders or eanction of the compe tent authority the expenditure does not involve a breach of any of the cannons of {inancial propriety, the Di] has been drawn tn favour of the proper persone, of agreement or contract have been adhered to, the rates charged in the DiI] are those given in the contract or the Schedules of Rates 1f the contract is based on the Schedule, ‘the unschedule items have been sanctioned by the competent authority and that there are not wide unexplained diver= gencies between the rates sanctioned for simtlar (tens Of work at different tines and for different stations, as far as potstble the nomenclature of the items of work billed for agrees with that given in the contract or in the Schedule of Rates on vhich the contract is based, the bille in which charges for demolition appear, have been supported by a denolition certificate. The demolition certificate vill be serutiniaed to eee that the materials obtained from the demolition have been measured and ‘accounted for in the books. If these have been shown as brought on charge, the fact vill be verified. If these have. been shown ae sold or transferred to other works, ‘the documents im support thereof, the credit or adjustaent Of the amount will be verified, a1) liquidated damages to which a contractor nay have become Iiable under the terme of hts contract have been recovered except vhen a recovery hao been waived under orders of the competent euthority, there has been no delay in the preparation and submission Of the Bil] after completion of vork or service, the Budget and Accounts Officer/Divistonal Accountant has exercised hie check on the work Bills as described in Para 22.8 and 22.9 above, fon the final Bi11, the contractor has completed a certifi- Gate at the end of the bill that he has no other clalas beyond those set forth in the bill and the net amount inserted by him(ori) Uf the contractor has refused to sign the 'No Claim Cortificate' or signe a qualified "No Clain Certificate’ in the final DiIl, after specifying his claim tn the bint iteelf, the amount due to the contractor, will be credited to head "Deposits", Vere under charges ave wun clateed vithin the statutory Nact"9f 9"yeare tron the date of final payeente (ot (citi) the payment to a contractor of a bonus or compensation, fas a result of sone arbitration avard, which is outside the terms of his contract has been made after obtaininy, sanction of the Authority, GxtvyVire secured advance 18 for the materia] collected for ‘use on a work Ln which the contract 1s for finished work fand ‘that “the amount of advance does not exceed 73 per cent of the value of the material as assessed by the Xen, and the advance in excess of 75 per cent has been sanctioned by the Authority, (8 eke sivas’ faysas a etter caviced bythe contact serecnent or ban been sanctioned by the Avthorieye (xxvi) the final bill of the contractor is compared vith the original tender, the comparative statement and the vari- ations in the quantities of work carried out in the form of nev or additional items are either covered by the contract or sanctioned by the competent authority, (xxvii) as per certificate of the Engineer-tn-charge the contrac~ tor has executed the whole and every part of the work strictly in accordance with the specifications which are part of the contract agreement, (xvilt) the consumption of material te according to specification and the vork has been declared to be below specification, if full quancity of material has not been utilized, no carriage has been claimed for the carriage of stores to the site of work unless spectally provided in the agreenent, Gost of stores, hiring charges, of machinery and equipment land advances have been recavred fron the bills security deposit lodged by the contractor in cash or by aiving performance bond or recovered in instalments from the Bills, is not refunded before che expiry of three months fron the date on which work is completed and in, Case of construction of bufldings after the maintenance period,(wxsi4) compulsory deduction of Income Tax has been made from the bt11 in accordance vith the requirenent af incone Tax Act. (2) Contractors’ Ledger: (4) The contractors! 1 iger has been properly maintained and ‘opening and closing balances of cach month of each cont (A) cost of material tecued by WAPDA has ben debited to the Personal account of the contractor and not to the works In-progress account, (411) tn the absence of rates of stores tn the contract agree- ent, the actual price of the matetal plus « surcharge of 10 per cent for handling and storage charges or the sarket price, whichever is Kigher, 1s recovered fron the (tv) hive charges of machinery and equipment lent to the con= tractor are debited every month in the ledger and recovery ‘made fron the contractor's running and final bills, w the monthly balances of the contractors tally with the contractors closing balances as shovn on the reverse of the Works Abstracts AGB (this vork is done monthly. by the Divisional Accountant)s (vt) Te following transactions are not passed through the contractor's ledger? (a) Bi11 for work done or supplies nade which have although been passed for payment but not actually pata. (b) value of stores, the cost of vhich ts debitable to tock but for which bills have not been receives should be credited to "Purchases" instead of contrac. tor'e account in the ledger, (©) recovery against court attachaent orders should be vatched through Reghtster of Miacellancous recoveries, @ security deposits and earnest money deducted or Feceived from contractors should be credited to Miscellaneous Deposits, (rt) the procedure 1atd dovn in Para 23 for melatenance of Contractor's Ledger has been observed,(©) Register of Yorks (4) two registers one for Major Works and another for Minor~ Works have doen maintained, (4s) the register is posted monthly from the Works Abstract, (iii) the progressive total of expenditure of each vork 1s ahown in the register, (iy) the repister ie reviewed monthly by the Divistonal offt~ (v) A report under the folloving heads is prepared and Steached to the Audit Report, (a) expenditure in excess of the sanctioned amount of each estimate, allotment of (b) expenditure in excess of the budgs cach estimate, ©) @ expenditure incurred vithovt preparation of estimate, expenditure incurred without badget allotment, Antenance jure latd down in Para 24 regarding been followed. (eb) the pros of Register of Works hi