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Audit Report on the Accounts of District Government Chakwal

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Audit Report on the Accounts of District Government Chakwal AUDIT REPORT ON THE ACCOUNTS OF DISTRICT GOVERNMENT CHAKWAL AUDIT YEAR 2017-18 AUDITOR GENERAL OF PAKISTAN TABLE OF CONTENTS ABBREVIATIONS & ACRONYMS .......................................................................................... I PREFACE ................................................................................................................................ III EXECUTIVE SUMMARY ...................................................................................................... IV SUMMARY TABLE & CHARTS........................................................................................... VII TABLE 1: AUDIT WORK STATISTICS ................................................................................ VII TABLE 2: AUDIT OBSERVATIONS..................................................................................... VII TABLE3: OUTCOME STATISTICS ...................................................................................... VII TABLE4: IRREGULARITIES POINTED OUT ..................................................................... VIII TABLE 5: COST BENEFIT ................................................................................................... VIII CHAPTER 1 ...............................................................................................................................1 1.1 DISTRICT GOVERNMENT CHAKWAL ...................................................................1 1.1.1 INTRODUCTION OF DEPARTMENTS .....................................................................1 1.2 AUDIT PARAS ...........................................................................................................5 1.2.1 NON-PRODUCTION OF RECORD ...........................................................................6 1.2.2 IRREGULARITY & NON-COMPLIANCE OF RULES ..............................................7 1.2.3 PERFORMANCE ..................................................................................................... 26 1.2.4 WEAK INTERNAL CONTROLS ............................................................................. 31 ANNEXURES .......................................................................................................................... 33 ANNEXURE-A ........................................................................................................................ 34 ANNEXURE-B ........................................................................................................................ 44 ANNEXURE-C ........................................................................................................................ 45 ANNEXURE-D ........................................................................................................................ 47 ANNEXURE-E ........................................................................................................................ 49 ANNEXURE-F......................................................................................................................... 51 ANNEXURE-G ........................................................................................................................ 52 ANNEXURE-H ........................................................................................................................ 53 ANNEXURE-I ......................................................................................................................... 54 ANNEXURE-J ......................................................................................................................... 59 ANNEXURE-K ........................................................................................................................ 61 ANNEXURE-L ........................................................................................................................ 62 ANNEXURE-M ....................................................................................................................... 63 ANNEXURE-N ........................................................................................................................ 64 ABBREVIATIONS & ACRONYMS AEO Assistant Education Officer AGP Auditor General of Pakistan ALC Adult Literacy Center B&R Building & Road BHU Basic Health Unit CA Conveyance Allowance DAC Departmental Accounts Committee DAO District Accounts Office DCO District Coordination officer DDO Drawing and Disbursing Officer DEO (EE-M) District Education Officer (Elementary Education-Male) DEO (EE-W) District Education Officer (Elementary Education-Women) DO District Officer DOH District Officer Health DHQ District Headquarters DTL Drug Testing Lab EDO Executive District Officer F&P Finance and Planning FTF Farogh-e-Taleem Fund GGHS Govt. Girls High School GGPS Govt. Girls Primary School GRDs General Rural Dispensary HPA Health Professional Allowance HRA House Rent Allowance HSRA Health Sector Reform Allowance MFDAC Memorandum For Departmental Accounts Committee MRS Market Rate System MS Medical Superintendent NFBE Non Format Basic Education NSB Non Salary Budget OFWM On Farm Water Management PAC Public Accounts Committee PAO Principal Accounting Officer PCC Plain Cement Concrete PFR Punjab Financial Rules i PDG Punjab District Governments PLGO Punjab Local Government Ordinance POL Petroleum Oil and Lubricants PPR Punjab Procurement Rules PPRA Public Procurement Regulatory Authority PST Primary School Teacher RHC Rural Health Center SDA Special Drawing Account SMO Senior Medical Officer SSB Social Security Benefit THQ Tehsil Headquarters TSE Technical Sanctioned Estimate UC Union Council WMO Woman Medical Officer ZC Zila Council ii PREFACE Articles 169 and 170 of the Constitution of the Islamic Republic of Pakistan, 1973 read with Section 8 & 12 of the AGPs Ordinance 2001 and Section 115 of the Punjab Local Government Ordinance, 2001 require the Auditor General of Pakistan to audit the accounts of the Provincial Governments and the accounts of any authority or body established by, or under the control of the Provincial Government. Accordingly, the audit of all receipts and expenditures of the District Government Fund and Public Account of City District Government is the responsibility of the Auditor General of Pakistan. The report is based on audit of the accounts of various offices of the District Government, Chakwal for the Financial Year 2016-17. The Directorate General of Audit District Governments Punjab (North), Lahore conducted audit during 2017-18 on test check basis with a view to reporting significant findings to the relevant stakeholders. The main body of the Audit Report includes only the systemic issues and audit observations of serious nature. Relatively less significant issues are listed in the Annexure-A of the Audit Report. The Audit observations listed in the Annexure-A shall be pursued with the Principal Accounting Officer at the DAC level. In all cases where the Principal Accounting Officer (PAO) does not initiate appropriate action, the audit observations will be brought to the notice of PAC through next year audit report. The audit results indicate the need for adherence to the regularity frame work besides instituting and strengthening internal controls to prevent recurrence of such violations and irregularities. The observations included in this Report have been finalized in the light of discussion of DDO. In spite repeated efforts, executive authorities could not arrange meeting of Departmental Accounting Committee (DAC). The Audit Report is submitted to the Governor of the Punjab in pursuance of Article 171 of the Constitution of the Islamic Republic of Pakistan, 1973 to cause it to be laid before the Provincial Assembly of Punjab. Islamabad (Javaid Jehangir) Dated: Auditor General of Pakistan iii EXECUTIVE SUMMARY The Directorate General Audit District Governments, Punjab (North), Lahore is responsible to carry out the audit of District Governments, Tehsil / Town Municipal Administrations and Union Administrations of three City District Governments and sixteen District Governments. Its Regional Directorate of Audit, Rawalpindi has audit jurisdiction of District Governments, Tehsil / Town Municipal Administration and Union Administrations of one City District Government i.e. Rawalpindi and three District Governments i.e. Jhelum, Chakwal and Attock. The Regional Directorate has a human resource of 14 officers and staff, total 3486 man-days and the annual budget of Rs20.087 million for the Audit Year 2017-18. It has mandate to conduct Financial Attest, Regularity Audit and Compliance with Authority & Performance Audit of entire expenditure including programmes / projects & receipts. Accordingly, Regional Directorate of Audit Rawalpindi carried out audit of the accounts of various offices of the District Government, Chakwal for the Financial Year 2016-17. District Government, Chakwal conducts its operations under Punjab Local Government Ordinance, 2001. It comprises one Principal Accounting Officer (PAO) i.e. the District Coordination Officer (DCO) covering six groups of offices i.e. Finance & Planning, Works & Services, Education, Health, Community Development, and Agriculture. The financial provisions of the Punjab Local Government Ordinance, 2001 require the establishment of District Government fund comprising Local Government Fund and Public Account for which Annual Budget Statement is authorized by the Nazim / Council / Administrator in the form of budgetary grants. Audit of District Government Chakwal was carried out with the view to ascertain
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