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Audit Report on the Accounts of Federal Government - (Civil)

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Audit Report on the Accounts of Federal Government - (Civil) AUDIT REPORT ON THE ACCOUNTS OF FEDERAL GOVERNMENT - (CIVIL) AUDIT YEAR 2015-16 AUDITOR GENERAL OF PAKISTAN TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS .................................................................... i PREFACE ................................................................................................................... v EXECUTIVE SUMMARY .............................................................................. 1 SUMMARY TABLES & CHARTS ................................................................. 1 SUMMARY TABLES & CHARTS ........................................................................... 7 I. Audit Work Statistics ...................................................................................... 7 II. Audit Observations Classified by Categories .................................................. 7 III. Outcome Statistics ........................................................................................... 8 IV. Irregularities Pointed Out ................................................................................ 8 V. Cost-Benefit..................................................................................................... 9 CHAPTER 1 ................................................................................................... 10 1. PUBLIC FINANCIAL MANAGEMENT ISSUES ............................... 10 1.1 ACCOUNTANT GENERAL PAKISTAN REVENUES (AGPR) ............... 10 1.1.1 Excess expenditure over and above budget allocation – Rs. 242,445.276 million ..................................................................................................... 10 1.1.2 Expenditure not reconciled - Rs. 49.004 billion ..................................... 11 1.1.3 A large amount of Supplementary Grants remained not printed - Rs. 84,537.918 million .................................................................................. 13 1.1.4 Actual expenditure in minus - Rs. 2.803 million .................................... 14 1.1.5 Payments by Third Party shown as Nil and no policy framed for Payments by Third Party ......................................................................... 15 1.1.6 Pensioners record not properly cataloged and secured ........................... 16 1.1.7 Expenditure pertaining to Capital Account (Civil Works) charged to Revenue Account - Rs. 15,055.645 million ............................................ 17 1.1.8 Non-utilization and retention of funds by CDA - Rs. 25.000 million..... 19 CHAPTER 2 ................................................................................................... 21 2. AVIATION DIVISION.......................................................................... 21 2.1 Introduction of Division ................................................................................ 21 2.2 Comments on Budget & Accounts (Variance Analysis) ............................... 21 2.3 Brief comments on the status of compliance with PAC Directives .............. 22 2.4 AUDIT PARAS ............................................................................................. 22 Irregularity & Non Compliance ........................................................................................ 22 2.4.1 Irregular expenditure without provision in PC-I and failure to achieve Project Objectives - Rs. 26.004 million .................................................. 22 CHAPTER 3 ................................................................................................... 24 3. BENAZIR INCOME SUPPORT PROGRAM (BISP) .......................... 24 3.1 Introduction of Program ................................................................................ 24 3.2 Comments on Budget & Accounts (Variance Analysis) ............................... 25 3.3 Brief comments on the status of compliance with PAC Directives .............. 25 3.4 AUDIT PARAS ............................................................................................. 25 Irregularity & Non Compliance ........................................................................................ 25 3.4.1 Non-establishment of the Council of the Program in violation of the BISP Act, 2010 ....................................................................................... 25 3.4.2 Irregular selection/appointment of commercial banks and payment of service charges - Rs. 2,192.17 million .................................................... 26 3.4.3 Irregular and unauthorized payment of salaries to deputationists - Rs. 1,257.858 million .................................................................................... 28 3.4.4 Un-authorized retention of government funds - Rs. 2,245.081 million .. 29 3.4.5 Irregular retention of funds after close of the financial year - Rs. 1,661.790 million .................................................................................... 31 3.4.6 Payment to NADRA in contravention of the Agreement - Rs. 67.345 million ..................................................................................................... 32 3.4.7 Differences in two sets of data - Rs. 608.103 million ............................. 33 3.4.8 Non-reconciliation of funds placed with Pakistan Post Office - Rs. 3,847.484 million .................................................................................... 35 3.4.9 Unauthorized payment of Monetization Allowance to officers of B-19 - Rs. 7.340 million ..................................................................................... 36 3.4.10 Un-authorized retention of House Rent Allowance and non-deduction of House Rent Charges - Rs. 4.565 million ................................................. 38 3.4.11 Irregular award of advance increments and overpayments - Rs. 1.588 million ..................................................................................................... 39 CHAPTER 4 ................................................................................................... 40 4. CABINET DIVISION ............................................................................ 40 4.1 Introduction of Division ................................................................................ 40 4.2 Comments on Budget & Accounts (Variance Analysis) ............................... 42 4.3 Brief comments on the status of compliance with PAC Directives .............. 44 4.4 AUDIT PARAS ............................................................................................. 45 Internal Control Weakness ................................................................................................ 45 4.4.1 Non-conducting of Physical Verification of the Tosha Khana ............... 45 4.4.2 Non-maintenance of Stock Registers of Assets received from devolved Ministries/Divisions/Departments .......................................................... 45 Irregularity & Non Compliance ........................................................................................ 47 4.4.3 Non-depositing of fee received from the students in government treasury - Rs. 21.252 million ................................................................................ 47 4.4.4 Un-authorized retention of hostel charges - Rs. 10.640 million ............. 48 4.4.5 Non-recovery of outstanding licenses fee from generation companies - Rs. 77.268 million ................................................................................... 49 4.4.6 Irregular and unjustified payment of Leave Fare Assistance - Rs. 3.084 million ..................................................................................................... 50 CHAPTER 5 ................................................................................................... 52 5. CAPITAL ADMINISTRATION AND DEVELOPMENT DIVISION 52 5.1 Introduction of Division ................................................................................ 52 5.2 Comments on Budget & Accounts (Variance Analysis) ............................... 53 5.3 Brief comments on the status of compliance with PAC Directives .............. 55 5.4 AUDIT PARAS ............................................................................................. 56 Irregularity & Non Compliance ........................................................................................ 56 5.4.1 Irregular retention of government money - Rs. 39.604 million .............. 56 5.4.2 Irregular and unauthorized payment of honorarium - Rs. 1.535 million 57 CHAPTER 6 ................................................................................................... 59 6. MINISTRY OF COMMERCE .............................................................. 59 6.1 Introduction of Ministry ................................................................................ 59 6.2 Comments on Budget & Accounts (Variance Analysis) ............................... 60 6.3 Brief comments on the status of compliance with PAC Directives .............. 61 6.4 AUDIT PARAS ............................................................................................. 62 Irregularity & Non Compliance ........................................................................................ 62 6.4.1 Overpayment of pay and allowances to Mr. Muhammad Irfan, Section Officer - Rs. 1.139 million ...................................................................... 62 CHAPTER 7 ................................................................................................... 64 7. COMMUNICATIONS DIVISION .......................................................
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