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Auditor General of Pakistan Table of Contents Abbreviations and Acronyms

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Auditor General of Pakistan Table of Contents Abbreviations and Acronyms AUDIT REPORT ON THE ACCOUNTS OF LOCAL GOVERNMENTS DISTRICT ABBOTTABAD AUDIT YEAR 2018-19 AUDITOR GENERAL OF PAKISTAN TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS ...................................................................................... i Preface ........................................................................................................................................... iii EXECUTIVE SUMMARY .......................................................................................................... iv SUMMARY TABLES & CHARTS .......................................................................................... viii I: Audit Work Statistics .................................................................................................. viii II: Audit observations Classified by Categories .......................................................................... viii III: Outcome Statistics .................................................................................................................... ix IV: Table of Irregularities pointed out .............................................................................................. x V: Cost Benefit Ratio ....................................................................................................................... x CHAPTER-1 ................................................................................................................................... 1 1.1 Local Governments Abbottabad .......................................................................... 1 1.1.1 Introduction ......................................................................................................... 1 1.1.2 Comments on Budget and Accounts (Variance Analysis) ................................. 6 1.2 DISTRICT GOVERNMENT .............................................................................................. 10 1.2.1 Misappropriation and Fraud ............................................................................. 11 1.2.2 Irregularity/Non-Compliance ........................................................................... 14 1.2.3 Internal Control Weaknesses ............................................................................ 35 1.3 TMAs ABBOTTABAD/HAVELIAN ................................................................................. 63 1.3.1 Irregularity/Non-compliance ............................................................................ 64 1.3.2 Internal Control Weaknesses ............................................................................ 69 1.4 AD LGE&RDD AND VCs/NCs ABBOTTABAD ............................................................. 82 1.4.1 Irregularity/Non-compliance ............................................................................ 83 1.4.2 Internal Control Weaknesses ............................................................................ 87 1.5 ABBOTTABAD/GALIYAT DEVELOPMENT AUTHORITY ...................................... 89 1.5.1 Irregularity/Non-compliance ............................................................................ 90 1.5.2 Internal Control Weaknesses ............................................................................ 92 ANNEXURES ............................................................................................................................. 106 Annex-1 MFDAC ........................................................................................................... 106 Annex-2 Detail Of Irregular Bidding ............................................................................ 110 Annex-3 Detail of procurement and penalty for late supply .......................................... 111 Annex-4 Detail of Medical Equipment .......................................................................... 112 Annex-5 Detail of less recovery on account of penalty ................................................. 115 Annex-6 Detail of illegal occupation of Government property ..................................... 129 Annex-7 Detail of land not mutated in the name of Government .................................. 131 Annex-8 Detail of Income tax and sales tax need to be deducted ............................... 133 Annex-9 Detail of Medicines not supplied .................................................................... 137 Annex-10 Penalty due to non-completion of supply of medicines and equipments ....... 138 Annex-11 Detail Of HRA And CA In Respect Of Different Categories ........................ 142 Annex-12 Detail of supply orders ................................................................................... 144 Annex-13 Detail of cheques paid for different events up to June, 2018 ......................... 146 Annex-14 Detail of rent of shops and cabins .................................................................. 148 Annex-15 Detail of non-recovery of penalty .................................................................. 215 Annex-16 Detail of wasteful expenditure ...................................................................... 220 Annex-17 Detail of non-imposition/recovery of penalty ................................................ 225 Annex-18 Detail of developmental expenditure without material testing ...................... 228 Annex-19 Detail of Current Accounts ............................................................................ 229 Annex-20 Detail of pressure pumps ................................................................................ 230 Annex-21 Detail of penalty ............................................................................................. 231 Annex-22 Detail of rent of property and shops ............................................................... 233 Annex-23 Detail of non-recovery of rent/lease money and taxes ................................... 234 ABBREVIATIONS AND ACRONYMS AA Administrative Approval AAC Additional Assistant Commissioner AC Assistant Commissioner AD Assistant Director ADC Assistant Deputy Commissioner ADO Assistant District Officer ADP Annual Development Program AIR Audit and Inspection Report AOM&R Annual Operating Maintenance & Repair BCA Building Control Authority BHUs Basic Health Units BOK Bank Of Khyber BOQ Bill Of Quantity B&R Building and Road CCB Citizen Community Board C&W Communication & Works CMD Chief Minister Directives CPWA Code Central Public Works Account Code DAC Departmental Accounts Committee DC Deputy Commissioner DD District Director DDO Drawing and Disbursing Officer DEO F District Education Officer Female DEO M District Education Officer Male DG Director General DHQ District Head Quarter DO District Officer DHO District Health Officer DWSS Drinking Water Supply and Sanitation FD Finance Department F&P Finance and Planning GDA Galiyat Development Authority GFR General Financial Rules GGHS Government Girls High School i GGMS Government Girls Middle School GGPS Government Girls Primary School HRA House Rent Allowance IHP Integrated Health Projects KP Khyber Pakhtunkhwa KPPRA Khyber Pakhtunkhwa Public Procurement Authority LCB Local Council Board LGA Local Government Act LGE &RDD Local Government Election & Rural Development Department MFDAC Memorandum for Departmental Accounts Committee MHSDP Minimum Health Services Delivery Package MRS Market Rate System MS Medical Superintend NAB national accountability Buru NBP National Bank Of Pakistan NCs Neighborhood Councils NOC No Objection Certificate PAC Public Accounts Committee PAO Principal Accounting Officer PCC Plain Concrete Cement P&D Planning And Development PFC Provincial Finance Commission PLS Profit And Loss Sharing PSHT Primary School Head Teacher PTCL Pakistan Telecommunication Limited RDA Regional Directorate Of Audit TAC Tehsil Accounts Committee TMA Tehsil Municipal Administration TMO Tehsil Municipal Officer TS Technical Sanction UET University Of Engineering and Technology VCs Village Councils WSS Water Supply and Sanitation ZAC Zilla Accounts Committee ii Preface Articles 169 and 170 of the Constitution of the Islamic Republic of Pakistan, 1973 read with Sections-8 and 12 of the Auditor General’s (Functions, Powers and Terms and Conditions of Service) Ordinance, 2001 and Section-37 of Khyber Pakhtunkhwa Local Government Act 2013 require the Auditor General of Pakistan to conduct audit of the receipts and expenditure of Local Governments of each District of the Khyber Pakhtunkhwa. The report is based on audit of the accounts of various Local Governments i.e. offices of District Government, Tehsil Municipal Administrations, Assistant Director Local Government Elections and Rural Development, Village Councils and Neighborhood Councils and Development Authorities in district Abbottabad for the financial year 2017-18. The Director General of Audit, District Governments, Khyber Pakhtunkhwa conducted audit during 2018-19 on test check basis with a view to report significant findings to the relevant stakeholders. The main body of the audit report includes the systemic issues and significant audit findings. Relatively less significant issues are listed in the Annexure-1 of the Audit Report. The audit observations listed in the Annexure-1 shall be pursued with the Principal Accounting Officers at the DAC level. In all cases where PAOs do not initiate appropriate action, the audit observations will be brought to the notice of appropriate forum through the next year’s Audit Report. Audit findings indicate the need for adherence to the regularity framework besides instituting
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