Department of the Auditor General of Pakistan
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AUDIT REPORT ON THE ACCOUNTS OF DISASTER MANAGEMENT ORGANIZATIONS (FEDERAL) AUDIT YEAR 2016-17 AUDITOR GENERAL OF PAKISTAN TABLE OF CONTENTS ABBREVIATIONS & ACRONYMS ........................................................................... i PREFACE .............................................................................................................. vi EXECUTIVE SUMMARY ........................................................................................ vii SUMMARY TABLES & CHARTS ..............................................................................1 I Audit Work Statistics ..............................................................................1 II Audit observations regarding Financial Management ...........1 III Outcome Statistics ............................................................................2 IV Table of Irregularities pointed out ..............................................3 V Cost-Benefit ........................................................................................3 CHAPTER-1 Public Financial Management Issues Earthquake Reconstruction & Rehabilitation Authority (ERRA) 1.1 AUDIT PARAS .....................................................................................4 CHAPTER-2 Earthquake Reconstruction & Rehabilitation Authority (ERRA) 2.1 Introduction of Authority .....................................................................12 2.2 Comments on Budget & Accounts (Variance Analysis) .....................12 2.3 Brief comments on the status of compliance with PAC directives ......12 2.4 AUDIT PARAS ...................................................................................13 Non-Production of Record..............................................................................13 Irregularity & Non Compliance .....................................................................15 Weak Internal Control ....................................................................................63 CHAPTER-3 National Disaster Management Authority (NDMA) 3.1 Introduction of Authority .....................................................................66 3.2 Budget and Expenditure .......................................................................67 3.3 AUDIT PARAS ...................................................................................67 Irregularity & Non Compliance .....................................................................67 CHAPTER-4 FATA Disaster Management Authority (FDMA) 4.1 Introduction of Authority .....................................................................82 4.2 Budget and Expenditure .......................................................................83 4.3 AUDIT PARAS ...................................................................................83 Irregularity & Non Compliance .....................................................................83 CHAPTER-5 Directorate General Civil Defence (DGCD) 5.1 Introduction of entity ...........................................................................95 5.2 Budget and Expenditure .......................................................................96 5.3 AUDIT PARAS ...................................................................................96 Non-Production of Record..............................................................................96 Irregularity & Non Compliance .....................................................................97 National Institute of Fire Technology(NIFT) 5.4 Introduction of entity ...........................................................................98 5.5 Budget and Expenditure .......................................................................99 5.6 AUDIT PARAS ...................................................................................99 Irregularity & Non Compliance .....................................................................99 Annexures ......................................................................................................102 ABBREVIATIONS & ACRONYMS A&P Administration & Procurement AFS Annual Financial Statements AGP Auditor General of Pakistan AGPR Accountant General Pakistan Revenues AIR Audit Inspection Report AJK/AJ&K Azad Jammu and Kashmir APNS All Pakistan Newspaper Society ASTM American Society for Testing and Materials BCDP Bagh City Development Project BHU Basic Health Unit BOQ Bill of Quantity CB Contingent Bill CBO Community Based Organization CDWP Central Development Working Party CE Chief Engineer Cft. Cubic Feet CGA Controller General of Accounts Co. Company CPC Closing Payment Certificate CPWA Central Public Works Accounts CPWD Central Public Works Department CSR Composite Schedule of Rates Cu.m Cubic meter CWE China International Water & Electric Company CXB China Xinjiang Beixin Construction & Engineering (Group) Co. Ltd. DAC Departmental Accounts Committee DAM Development Authority Muzaffarabad DC Deputy Commissioner DDO Drawing & Disbursing Officer DDR Deputy Director Reconstruction DG Director General Div. Division DLP Defect Liability Period DOR&E District Officer Revenue & Estate DHQ District Headquarter DRAC District Reconstruction Advisory Committee DIG Deputy Inspector General Dia Dia meter DRU District Reconstruction Unit i EA Engineering Associates EAD Economic Affairs Division ECIL Engineering Consultants International Pvt. Ltd. ECNEC Executive Committee of the National Economic Council EDO Executive District Officer EEAP Earthquake Emergency Assistance Project EOT Extension of time ERRA Earthquake Reconstruction and Rehabilitation Authority FBR Federal Board of Revenues FDMA Fata Disaster Management Authority FIDIC Fédération Internationale Des Ingénieurs-Conseils(French) International Federation of Consulting Engineers(English) FMIS Financial Management Information System FTO Federal Treasury Officer FTR Federal Treasury Rules FWO Frontier Works Organization GCC General Conditions of Contract GFR General Financial Rules GGMS Government Girls Middle School GMS Government Middle School GGPS Government Girls Primary School GHS Government High School GI Galvanized Iron GOP Government of Pakistan GPS Government Primary School GST General Sales Tax HP Horse Power HQs Headquarters HSD High Speed Diesel IB Instructions to Bidders IDB Islamic Development Bank IESCO Islamabad Electric Supply Company IPC Interim Payment Certificate IPSAS International Public Sector Accounting Standards JV Joint Venture KDR Kohala Dhirkot Road KFW Kreditanstalt Für Wiederaufbau (German Development Bank) KFAED Kuwait Fund for Arab Economic Development KICT Karachi International Container Terminal KKH Karakoram Highway Km Kilometer ii KP Khyber Pakhtunkhwa KPT Karachi Port Trust LD Liquidated Damages LGRDD Local Government and Rural Development Department LGSS Light Gauge Steel Structure Ltd. Limited LS Lump Sum MB Measurement Book MCC Mumtaz Construction Company (Pvt.) Ltd. MCDP Muzaffarabad City Development Project MDF Medium Density Fiberboard M&E Monitoring and Evaluation M/s Messer Mm Millimeter MTDF Medium Term Development Framework Mzd Muzaffarabad NBCDP New Balakot City Development Project NDMA National Disaster Management Authority NDMF National Disaster Management Fund NESPAK National Engineering Services Pakistan (Pvt.) Ltd. NHA National Highway Authority NFI Non Food Items NIDA National Income Daily Account No. Number NOC No Objection Certificate NSI Non-Scheduled Items NWFP North West Frontier Province O.M. Office Memorandum PAC Public Accounts Committee PAO Principal Accounting Officer PC-I Planning Commission form One PC-IV Planning Commission form Four PCC Particular Condition of the Contract PD Project Director P&D Planning & Development PDP Proposed Draft Para PE Polyethylene PEC Pakistan Engineering Council PERRA Provincial Earthquake Reconstruction and Rehabilitation Agency PHE Public Health Engineering PHED Public Health Engineering Department iii PICT Pakistan International Container Terminal PLD Personal Ledger Drawing Account P.M. Prime Minister PM Program Manager PMU Project Management Unit PMIU Project Management Implementation Unit PMT Project Monitoring Team POL Petrol Oil and Lubricant PPRA Public Procurement Regulatory Authority PSC Provincial Steering Committee PSDP Public Sector Development Program PST Project Supervision Team Pvt. Private PWD Public Works Department QAC Quality Assurance Committee Qty Quantity QS Quantity Surveyor RCC Reinforced Cement Concrete RCDP Rawalakot City Development Project RD Road Distance Rft Running feet Rm Running meter RHC Rural Health Centre ROW Right of Way Rs Rupees RWH Rain Water Harvesting RWHP Rain Water Harvesting Project SDO Sub-Division Officer SERRA State Earthquake Reconstruction and Rehabilitation Agency SPAPEV Saudi Public Assistance for Pakistan Earthquake Victims SFD Saudi Fund for Development SFD/IDB Saudi Fund for Development/Islamic Development Bank SFD&KF Saudi Fund for Development and Kuwait Fund Sft. Square feet SPC Special Project Cell Sq.m Square meter SRO Statutory Regulatory Order SSC State Steering Committee TOC Taking Over Certificate TQT Tajweed ul Quran Tax TS Technical Sanction iv US United States VO Variation Order Vol Volume Vs. Versus WAPDA Water and Power Development Authority WBBP West Bank Bypass WBM Water Bound Macadam WeBOC Web Based One Customs XEN Executive Engineer v PREFACE Articles 169 & 170 (2) of the Constitution of the Islamic Republic of Pakistan read with Sections 8 and 12 of the Auditor General (Functions, Powers and Terms and Conditions of Service) Ordinance