Audit Report on the Accounts of District Government Rahim Yar Khan Audit
Total Page：16
File Type：pdf, Size：1020Kb
AUDIT REPORT ON THE ACCOUNTS OF DISTRICT GOVERNMENT RAHIM YAR KHAN AUDIT YEAR 2016-17 AUDITOR GENERAL OF PAKISTAN TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS .............................................................. i Preface ................................................................................................................... iii EXECUTIVE SUMMARY .................................................................................. iv SUMMARY TABLES & CHARTS .................................................................... ix Table 1: Audit Work Statistics ............................................................................... ix Table 2: Audit Observations Classified by Category ............................................. ix Table 3: Outcome Statistics ..................................................................................... x Table 4: Irregularities Pointed Out ......................................................................... xi Table 5: Cost Benefit .............................................................................................. xi CHAPTER 1 .......................................................................................................... 1 1.1 District Government Rahim Yar Khan ......................................................... 1 1.1.1 Introduction ................................................................................................... 1 1.1.2 Comments on Budget and Accounts ............................................................. 2 1.1.3 Brief Comments on the Status of Compliance of MFDAC Audit Paras of Audit Report 2015-16 ................................................................................... 5 1.1.4 Brief Comments on the Status of Compliance with PAC Directives ........... 5 1.2 AUDIT PARAS ........................................................................................... 6 1.2.1 Non Production of Record ......................................................................... 6 1.2.2 Irregularities & Non Compliance .............................................................. 8 1.2.3 Internal Control Weaknesses ................................................................... 27 ANNEX ................................................................................................................. 48 ABBREVIATIONS AND ACRONYMS AEO Assistant Education Officer ARA Adhoc Relief Allowance BHUs Basic Health Units CD Community Development CFT Cubic Feet C&W Communication & Works EST Elementary School Teacher DAC Departmental Accounts Committee DAO District Accounts Officer DCO District Coordination Officer DDO Drawing and Disbursing Officer DEO (SE) District Education Officer (Secondary Education) DEO (EE-M) District Education Officer (Elementary Education-Male) DEO (EE-W) District Education Officer (Elementary Education-Women) DGA Directorate General Audit DHQ District Headquarters DO District Officer DST Double Surface Treatment DTL Drug Testing Laboratory EDO Executive District Officer F&P Finance & Planning FD Finance Department GST General Sales Tax HRA House Rent Allowance HSRP Health Sector Reforms Program INTOSAI International Organization of Supreme Audit Institutions IPSAS International Public Sector Accounting Standards Lbs Pounds LG&CD Local Government & Community Development MB Measurement Book MFDAC Memorandum for Departmental Accounts Committee MRS Market Rates Schedule i MS Medical Superintendent NSB Non Salary Budget OFWM On Farm Water Management PAC Public Accounts Committee PAO Principal Accounting Officer PCPS Pre-cast Parabolic Segment PDG Punjab District Government PESRP Punjab Education Sector Reforms Programme PFR Punjab Financial Rules PIPIP Punjab Integrated Production Improvement Project PLGO Punjab Local Government Ordinance PMIU Programme Monitoring and Implementation Unit POF Pakistan Ordinance Factory PPRA Punjab Public Procurement Regulatory Authority PTC Primary Teacher Certificate PWD Public Works Department RCC Reinforced Cement and Concrete RHC Rural Health Centre SE Superintending Engineer S&GAD Services & General Administration Department SMC School Management Council SMO Senior Medical Officer THQ Tehsil Head Quarter TMA Tehsil Municipal Administration TS Technical Sanction TST Triple Surface Treatment W&S Works & Services WUA Water Users Association ii Preface Articles 169 and 170 of the Constitution of the Islamic Republic of Pakistan, 1973 and Section 115 of the Punjab Local Government Ordinance, 2001 require the Auditor General of Pakistan to conduct audit of Receipts and Expenditure of the Local Fund and Public Accounts of District Governments. The report is based on audit of the accounts of various offices of the District Government, Rahim Yar Khan for the financial year 2015-16. The Directorate General of Audit District Governments, Punjab (South), Multan, conducted audit during the year 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 findings carrying value of Rs 1 million or more. 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 Officer 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. Audit findings indicate the need for adherence to the regularity framework besides instituting and strengthening internal controls to avoid recurrence of similar violations and irregularities. The observations included in this report have been finalized in the light of written responses of the management concerned. The Audit Report is submitted to the Governor of Punjab in pursuance of Article 171 of the Constitution of the Islamic Republic of Pakistan, 1973 read with Section 115 of the Punjab Local Government Ordinance, 2001 for causing it to be laid before the Provincial Assembly. Islamabad (Rana Assad Amin) Dated: Auditor General of Pakistan iii EXECUTIVE SUMMARY The Director General Audit (DGA), District Governments, Punjab (South), Multan, is mandated to carry out audit of the City District Governments and District Governments in Punjab (South). The Regional Directorate of Audit (RDA), District Governments, Bahawalpur, a Field Audit Office of the DGA, District Governments, Punjab (South), Multan, carries out audit of District Governments Bahawalpur, Bahawalnagar and Rahim Yar Khan. The Regional Directorate has a human resource of 27 officers and staff, constituting 4,830 mandays and the budget amounting to Rs 19.050 million was allocated in audit year 2016-17. The office is mandated to conduct financial attest audit, audit of sanctions, audit of compliance with authority and audit of receipts as well as the performance audit of entities, projects and programs. Accordingly RDA Bahawalpur carried out audit of the accounts of various formations of District Government, Rahim Yar Khan for the financial year 2015-16 and the findings included in the Audit Report. The District Government, Rahim Yar Khan conducts its operations under Punjab Local Government Ordinance, 2001. The District Coordination Officer (DCO) is the Principal Accounting Officer of the District Government and carries out functions of the District Government through group of offices as notified in Punjab Local Government Ordinance. According to the Ordinance, the District Government Fund comprises District Local Fund and Public Account. Owing to delay in electoral process Zila Nazim / Zila Council was not elected, therefore, the Annual Budget Statement was authorized by the DCO, who has been notified as Administrator by the Government of Punjab in February, 2010. District Rahim Yar Khan is administratively divided into four Tehsils namely Rahim Yar Khan, Sadiq Abad, Khan Pur and Liaqat Pur. iv Audit Objectives Audit was conducted with the objective to ensure that: 1. Money shown as expenditure in the accounts was authorized for the purpose for which it was spent. 2. Expenditure was incurred in conformity with the laws, rules and regulations framed to regulate the procedure for expending of public money. 3. Every item of expenditure was incurred with the approval of the competent authority in the Government. 4. Public money was not wasted. 5. The assessment, collection and accountal of revenue was made in accordance with prescribed laws, rules and regulations and accounted for in the books of accounts of the District Government. a) Scope of Audit Out of total expenditure of the District Government Rahim Yar Khan for the financial year 2015-16, auditable expenditure under the jurisdiction of Regional Director Audit, District Governments, Bahawalpur, was Rs 12,255.647 million covering one PAO and 425 formations. Out of this, RDA Bahawalpur audited an expenditure of Rs 2,541.123 million which, in terms of percentage, was 21 per cent of total auditable expenditure and irregularities amounting to Rs 23,142.123 million were pointed out. Regional Director Audit planned and executed audit of 30 formations, i.e. 100 per cent achievement against the planned audit activities. Total receipts of the District Government Rahim Yar Khan for the financial year 2015-16, were Rs 16.744 million. RDA Bahawalpur audited receipts of Rs 11.696 million which, in terms of percentage, was 70 per cent of total receipts and