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Audit Re Port on the Accounts of Town Municipal Administrations District Rawalpindi

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Audit Re Port on the Accounts of Town Municipal Administrations District Rawalpindi AUDIT RE PORT ON THE ACCOUNTS OF TOWN MUNICIPAL ADMINISTRATIONS DISTRICT RAWALPINDI AUDIT YEAR 2015-16 AUDITOR GENERAL OF PAKISTAN Table of Contents ABBREVIATIONS AND ACRONYMS ........................................................... i PREFACE ......................................................................................................... ii EXECUTIVE SUMMARY .............................................................................. iii SUMMARY TABLE & CHARTS................................................................... vi TABLE 1: AUDIT WORK STATISTICS .................................................................... VI TABLE 2: AUDIT OBSERVATIONS REGARDING FINANCIAL MANAGEMENT .............. VI TABLE3: OUTCOME STATISTICS .......................................................................... VI TABLE4: IRREGULARITIES POINTED OUT ............................................................ VII TABLE 5 COST-BENEFIT ..................................................................................... VII CHAPTER 1...................................................................................................... 1 1.1 TOWN/TEHSIL MUNICIPAL ADMINISTRATIONS,DISTRICT RAWALPINDI ....................................................................................... 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 ON MFDAC PARAS OF AUDIT YEAR 2014-15 .............................................................................. 4 1.1.4 BRIEF COMMENTS ON THE STATUS OF COMPLIANCE WITH PAC DIRECTIVES ................................................................................................................ 4 1.2 TOWN MUNICIPAL ADMINISTRATION RAWAL TOWN............. 5 1.2.1 IRREGULARITY AND NON-COMPLIANCE .................................................... 6 1.2.2 PERFORMANCE ...................................................................................... 12 1.2.3 INTERNAL CONTROL WEAKNESSES ........................................................ 13 1.3 TOWN MUNICIPAL ADMINISTRATION POTHOHAR TOWN ... 15 1.3.1 IRREGULARITY AND NON-COMPLIANCE .................................................. 16 1.3.2 PERFORMANCE ...................................................................................... 18 1.3.3 INTERNAL CONTROL WEAKNESSES ........................................................ 19 1.4 TOWN MUNICIPAL ADMINISTRATION GUJAR KHAN ............ 20 1.4.1 NON-PRODUCTION OF RECORD .............................................................. 21 1.4.2 IRREGULARITY AND NON-COMPLIANCE .................................................. 22 1.4.3 INTERNAL CONTROLS WEAKNESSES ...................................................... 25 1.5 TOWN MUNICIPAL ADMINISTRATION KAHUTA...................... 29 1.5.1 IRREGULARITY AND NON-COMPLIANCE .................................................. 30 1.5.2 PERFORMANCE ....................................................................................... 33 1.5.3 INTERNAL CONTROLS WEAKNESSES ...................................................... 34 1.6 TOWN MUNICIPAL ADMINISTRATION MURREE ..................... 39 1.6.1 IRREGULARITY AND NON-COMPLIANCE .................................................. 40 1.6.2 INTERNAL CONTROLS WEAKNESSES ....................................................... 42 1.7 TOWN MUNICIPAL ADMINISTRATION KALLAR SAYEDAN .. 49 1.7.1 IRREGULARITY AND NON-COMPLIANCE .................................................. 50 1.7.2 PERFORMANCE ...................................................................................... 56 1.7.3 INTERNAL CONTROL WEAKNESSES ......................................................... 58 1.8 TOWN MUNICIPAL ADMINISTRATION KOTLI SATTIAN ....... 60 1.8.1 IRREGULARITY AND NON-COMPLIANCE .................................................. 61 1.8.2 PERFORMANCE ....................................................................................... 64 1.8.3 INTERNAL CONTROL WEAKNESSES ......................................................... 65 Annexure ......................................................................................................... 67 Annex-A .......................................................................................................... 68 Annex-B ........................................................................................................... 75 Annex-C .......................................................................................................... 77 Annex-D .......................................................................................................... 78 Annex-E ........................................................................................................... 79 Annex-F ........................................................................................................... 80 Annex-G .......................................................................................................... 80 Annex-H .......................................................................................................... 81 Annex-I ............................................................................................................ 82 Annex-J ........................................................................................................... 83 Annex-K .......................................................................................................... 85 Annex-L ........................................................................................................... 86 Annex-M .......................................................................................................... 89 Annex-N .......................................................................................................... 93 Annex-P ........................................................................................................... 94 Annex-Q .......................................................................................................... 95 Annex-R .......................................................................................................... 96 Annex-S ........................................................................................................... 96 Annex-T ........................................................................................................... 97 Annex-U .......................................................................................................... 98 ABBREVIATIONS AND ACRONYMS ADP Annual Development Program AIR Audit & Inspection Report B & R Buildings and Roads CCB Citizen Community Board CDG City District Government DAC Departmental Accounts Committee DDC District Development Committee DDO Drawing &Disbursing Officer FD Finance Department IESCO Islamabad Electric Supply Company LCS Local council Service LG &CD Local Government &Community Development MFDAC Memorandum for Departmental Accounts Committee NAM New Accounting Model PAC Public Accounts Committee PAO Principal Accounting Officer PCC Plain Cement Concrete PDG Punjab District Governments PEEDA Punjab Employees Efficiency, Discipline &Accountability Act PLGB Punjab Local Government Board PLGO Punjab Local Government Ordinance PPRA Punjab Procurement Regulatory Authority TDC Town/Tehsil Development Committee TMA Town/Tehsil Municipal Administration TMO Town Municipal Officer TO (F) Town Officer (Finance) TO (I&S) Town Officer (Infrastructure & Services TO (P&C) Town Officer (Planning & Coordination) TO (R) Town Officer (Regulation) TTIP Tax on Transfer of Immoveable Property UA Union Administration UIP Urban Immoveable Property i PREFACE Articles 169 and 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 expenditure of the Local Fund and Public Accounts of Town / Tehsil Municipal Administrations of the City District is the responsibility of the Auditor General of Pakistan. The report is based on audit of the accounts of various offices of the Town / Tehsil Municipal Administrations of the City District Government, Rawalpindi for the Financial Years 2014-15. The Directorate General of Audit District Governments Punjab (North), Lahore conducted audit during 2015-16 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 1.00 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 observation 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 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
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