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TMA 14. Chakwal AY 2016-17.Pdf AUDIT REPORT ON THE ACCOUNTS OF TEHSIL MUNICIPAL ADMINISTRATIONS DISTRICT CHAKWAL AUDIT YEAR 2016-17 AUDITOR GENERAL OF PAKISTAN Table of Contents ABBREVIATIONS AND ACRONYMS .......................................................................... i PREFACE…………. ................................................................................................ii EXECUTIVE SUMMARY ...................................................................................... iii SUMMARY TABLES & CHARTS ............................................................................. vi Table 1: Audit Work Statistics ....................................................................................... vi Table 2: Audit Observations Regarding Financial Management .................................................... vi Table3: Outcome Statistics .......................................................................................... vii Table4: Irregularities Pointed Out ................................................................................... vii Table 5: Cost-Benefit ...............................................................................................viii CHAPTER 1 ......................................................................................................... 1 1.1 TEHSIL MUNICIPAL ADMINISTRATIONS, DISTRICT CHAKWAL .................. 1 1.1.1 Introduction.............................................................................................. 1 1.1.2 Comments on Budget and Accounts (Variance Analysis) ............................................. 2 1.1.3 Brief Comments on the Status of Compliance of MFDAC Audit Paras of Audit Report 2015-16.. 4 1.1.4 Brief Comments on the Status of Compliance with PAC Directives .................................. 4 1.2. TEHSIL MUNICIPAL ADMINISTRATION CHAKWAL................................... 6 1.2.1 Irregularity and Non-compliance ...................................................................... 7 1.2.2 Performance .......................................................................................... 12 1.2.3 Internal Controls Weakness .......................................................................... 14 1.3 THESIL MUNICIPAL ADMINISTRATION CHOA SAIDAN SHAH ................... 16 1.3.1 Irregularity and Non-compliance .................................................................... 17 1.3.2 Performance .......................................................................................... 20 1.3.3 Internal Controls Weakness .......................................................................... 21 1.4 TEHSIL MUNICIPAL ADMINISTRATION TALAGANG ............................... 23 1.4.2 Irregularity and Non-compliance .................................................................... 24 1.4.3 Internal Controls Weakness .......................................................................... 28 1.5 THESIL MUNICIPAL ADMINISTRATION KALLAR KAHAR ......................... 32 1.5.1 Weak Internal Controls ............................................................................... 33 ANNEXURE .............................................................................................. 34 to 51 ABBREVIATIONS AND ACRONYMS ADP Annual Development Program CCB Citizen Community Board DAC Departmental Accounts Committee FD Finance Department IPSAS International Public Sector Accounting Standards LG &CD Local Government & Community Development MB Measurement Book MFDAC Memorandum for Departmental Accounts Committee NAM New Accounting Model PAC Public Accounts Committee PDG Punjab District Governments PLGO Punjab Local Government Ordinance PLG Punjab Local Government PDSSP Punjab Devolved Social Sector Program PPRA Punjab Procurement Regulatory Authority TAC Tehsil Accounts Committee TMA Tehsil Municipal Administration TMO Tehsil Municipal Officer TO (F) Tehsil Officer (Finance) TO (I&S) Tehsil Officer (Infrastructure &Services) TO (R) Tehsil Officer (Regulations) TO (P&C) Tehsil Officer (Planning &Coordination) TTIP Tax on Transfer of Immoveable Property PREFACE Articles 169 & 170 of the Constitution of the Islamic Republic of Pakistan, 1973 read with 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 Local Fund and Public Accounts of Tehsil Municipal Administrations of the Districts is the responsibility of the Auditor General of Pakistan. The report is based on audit of the accounts of Tehsil Municipal Administrations of District Chakwal for the Financial Year 2015-16. The Directorate General of Audit District Governments Punjab (North), Lahore conducted audit during 2016-17 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 Annex-A of the Audit Report. The Audit observations listed in the Annex-A shall be pursued with the Principal Accounting Officers at the DAC level and in all cases where the PAO does not initiate appropriate action, the Audit observations will be brought to the notice of the Public Accounts Committee through the next year’s Audit Report. The audit results indicate the need for adherence to the regularity framework 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 intimated responses without DAC meetings which the respondent entities did not convene despite repeated reminders. 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 EXECUTIVE SUMMARY The Directorate General Audit, District Governments, Punjab (North), Lahore is responsible to carry out the audit of District Governments, Tehsil Municipal Administrations and Union Administrations of nineteen (19) districts. Its Regional Directorate of Audit, Rawalpindi has audit jurisdiction of District Governments, Town / Tehsil Municipal Administrations and Union Administrations of four Districts i.e. Rawalpindi, Jhelum, Chakwal and Attock. The Regional Directorate of Audit, Rawalpindi had a human resource of sixteen officers and staff, total 3,984 man-days and the annual budget of Rs 19.22 million for the Audit Year 2016-17. It had mandate to conduct Financial Attest, Regularity Audit and Compliance with Authority & Performance Audit of entire expenditure including program / projects & receipts. Accordingly, the Directorate General of Audit District Governments Punjab (North), Lahore carried out audit of the accounts of four (04) Tehsil Municipal Administrations of District Chakwal for the Financial Year 2015-16. Each Tehsil Municipal Administration, in District Chakwal is headed by a Tehsil Nazim / Administrator who carries out operations as per Punjab Local Government Ordinance, 2001. Tehsil Municipal Officer is the Principal Accounting Officer (PAO) and acts as coordinating and administrative officer, responsible to control land use, its division and development and to enforce all laws including Municipal Laws, Rules and By-laws. The PLGO, 2001 requires the establishment of Tehsil Local Fund and Public Account for which Annual Budget Statement is authorized by the Tehsil Nazim / Tehsil Council / Administrator in the form of Budgetary Grants. Audit of TMAs of District Chakwal was carried out with the view to ascertaining that the expenditure was incurred with proper authorization, in-conformity with laws / rules / regulations, economical procurement of assets and hiring of services etc. Audit of receipts / revenues was also conducted to verify whether the assessment, collection, reconciliation and allocation of revenues were made in accordance with laws and rules, resulting in no leakage of revenue and it did not remain outside Government Account/Local Fund. a. Scope of Audit Total budget of Four TMAs of District Chakwal for the Financial Year 2015-16 was Rs 710.59 million. Total expenditure for the financial year 2015-16 was Rs 578.30 million, covering 4 PAOs, and 4 entities. Out of this, DG Audit District Governments (N) Punjab audited expenditure of Rs 364.33 million which in terms of percentage was 63 % of auditable expenditure. Total budgeted receipts of four TMAs of District Chakwal for the Financial Year 2015-16 was Rs 585.54 million. Total actual receipts of the four (4) TMAs of District Chakwal for the financial year 2015-16, were Rs 585.41 million. Directorate General of District Audit (N) Punjab audited receipts of Rs 351.25 million which was 60 % of total receipts. b. Recoveries at the instance of audit Recovery of Rs 16.37 million was pointed out through various audit paras, out of which Rs 3.42 million was not in the notice of the executive before audit but no recovery was effected till compilation of report. c. Audit Methodology Audit was performed through understanding the business process of TMAs with respect to functions, control structure, prioritization of risk areas by determining their significance and identification of key
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