Lapse of Deposit Work – DG Works 10.07.2017
OFFICE MEMORANDUM
Subject: Lapse of Deposit Work
It has been consistently noticed that when a Public Works Division gets a work executed from another Public Works Division following practice is adopted:
- The work so executed is treated as Deposit Work which is against the very definition of “Deposit work”. According to the definition of a deposit work “Deposit work is the work the cost of which is met not out of Government Funds but out of funds from non-Government sources” whereas such work is funded out of Government Funds (PI see definition of Deposit works at Article 9 (9) of Account Code Volume-III and Para 4 (14) of Central Public Works Accounts Code). Further as per works codes Deposit Works are categorized as “Non Government Works” (Please see definition of “Non Government Works” at Article 31 of Accounts Code Volume-III and Para 404 of Central Public Works Accounts Code);
- Funds are transferred to the Works Executing Division who places these funds (received from Division requiring the work) in a Public Account Head G-10113 “Public Works Deposits”;
- Both the Divisions involved in this process do not lapse funds thus placed under G-10113- “Public Works Deposits” at the close of financial year on the pretext that funds lying in Public Account Heads are not lapsable. The fact is that these funds were originally part of “Consolidated Fund” for works execution. These funds were authorized and placed by the Provincial Assembly to the Executive up to the close of the financial year for which these were allocated. Both the Transferring and Receiving/Executing Divisions were responsible to ensure the lapse of such unspent/unutilized funds at the close of the financial year. Carrying such funds in the next financial year by placing them in a Public Account Head is an irregularity of the highest grave nature;
- As per record of this office Rs. 140,861/- was lying as unspent balance in Public Health Engineering Division, Chiniot on 30/06/2016 (F) under Part- III of G-10113 “Public Works Deposits” for Deposits of Works to be done which were required to be lapsed on 30th June, 2016 and could not be carried forward in the next financial year, i.c. 2016-17. These funds were not lapsed at the close the financial year and carried forward in the next financial year 2016- 17, which is an irregularity of a serious nature.
- .Besides necessary steps to stop this practice which are taking separately, the worthy Director General has ordered to call for your explanation for not taking necessary action/steps to fulfill your responsibility in this regard as a representative of this office. Your reply should reach this office within fifteen days of the receipt of this letter failing which necessary disciplinary action will be taken against you.
The letter dated 10.07.2017 regarding the “Lapse of Deposit Work” from the Director General (DG) Works refers to the unspent balances or deposits that were provided for specific government construction or infrastructure projects. When funds are allocated to a government department for a particular project, they are expected to be utilized within a set time frame. If the funds are not spent by the end of the fiscal year, these unutilized amounts are typically returned or “lapsed,” as per government financial regulations.
In this context, “deposit work” refers to projects where funds are placed in advance by a client department with the Public Works Department (PWD) for executing a project. If the work is not completed within the agreed time or the funds remain unspent, the unutilized deposits lapse, meaning they are sent back to the client department or are no longer available for the project.
Conclusion:
The letter serves as a reminder that any unspent funds for ongoing deposit works need to be accounted for before the fiscal year ends. If the funds are not used, they will lapse, affecting the continuation of the project. To avoid disruption, departments are encouraged to either expedite project completion or request extensions if necessary.
