Audit Report on the Accounts of Chief Officer, District Council, Municipal Committees & Town Committees Mirpurkhas Divisio
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AUDIT REPORT ON THE ACCOUNTS OF CHIEF OFFICER, DISTRICT COUNCIL, MUNICIPAL COMMITTEES & TOWN COMMITTEES MIRPURKHAS DIVISION AUDIT YEAR 2014-15 AUDITOR-GENERAL OF PAKISTAN TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS .......................................................................... i PREFACE ....................................................................................................................... iii EXECUTIVE SUMMARY ............................................................................................. iv SUMMARY TABLES & CHARTS .............................................................................. vii Table 1: Audit Work Statistics .................................................................................. vii Table 2: Audit Observations Classified by Categories ............................................ vii Table 3: Outcome Statistics....................................................................................... viii Table 4: Irregularities Pointed Out ............................................................................ ix CHAPTER-I ...................................................................................................................... 1 1.1 MIRPURKHAS DISTRICT ........................................................................ 1 1.1.1 INTRODUCTION .............................................................................................. 1 1.1.3 Brief Comments on the Status of Compliance with PAC Directives ................. 3 AUDIT PARA ................................................................................................................ 4 1.2.4 DISTRICT THARPARKAR @ MITHI .................................................. 13 1.2.4.1 INTRODUCTION ....................................................................................... 13 1.2.4.2 Comments on Budget and Accounts (Variance Analysis) ............................ 14 1.2.4.3 Brief Comments on the Status of Compliance with PAC Directives ........... 15 AUDIT PARAS ............................................................................................................ 16 1.2.8 DISTRICT UMERKOT ............................................................................ 25 1.2.8.1 INTRODUCTION ....................................................................................... 25 1.2.8.2 Comments on Budget and Accounts (Variance Analysis) ........................... 26 1.2.8.3 Brief Comments on the Status of Compliance with PAC Directives ........... 27 AUDIT PARAS ............................................................................................................ 28 1.2.11 DISTRICT SANGHAR ............................................................................. 37 1.2.11.1 INTRODUCTION ........................................................................................ 37 1.2.11.2 Comments on Budget and Accounts (Variance Analysis) ............................ 38 1.2.11.3 Brief Comments on the Status of Compliance with PAC Directives ........... 39 AUDIT PARAS ............................................................................................................ 40 ANNEXURES .................................................................................................................. 47 I. Memorandum for departmental accounts Committee (MFDAC) ................. 48 i. Part-i Paras related to current Audit Year 2014-15 .............................................. 48 ii. Part-ii Paras related to previous Audit Year 2-13-14............................................ 50 II. Audit Impact Summary ................................................................................. 51 III. Non-Production of Record ............................................................................ 53 IV. Non-Posting of NIT on SPPRA Website ...................................................... 54 V. Non-Achievement of Targeted Receipts ....................................................... 67 VI. Non-Transparency in government spending ................................................. 68 VII. Payment of Bills without Pre-Audit .............................................................. 69 VIII. Loss Due to Non-Revision of Rent ............................................................... 70 IX. Splitting up of Procurements ........................................................................ 71 X. Cash payments .............................................................................................. 73 XI. Non-Imposition of Penalty ............................................................................ 74 XII. Expenditure without Tender ......................................................................... 75 XIII. Fraudulent Withdrawal of Public Money ..................................................... 76 XIV. Embezzlement on Account of Quotation Work ............................................ 78 XV. Non-Production of record ............................................................................. 81 XVI. Split up Purchase / Supply orders ................................................................. 82 XVII. Un-authorized Cash Payments ...................................................................... 93 XVIII. Award of Work without Contract Agreement .............................................. 96 XIX. Non-Production of Record ............................................................................ 97 XX. Doubtful Drawal of Cash from Bank ............................................................ 98 XXI. Un-authorized appointments of Employees ................................................ 100 XXII. Non-Transparency in Government Spending ............................................. 101 XXIII. Splitting up of Works .................................................................................. 102 XXIV. Non-Recovery of Outstanding Arrears ....................................................... 110 XXV. Loss due to Non-Revision / Increases of Rent ............................................ 110 XXVI. Non-Imposition of Penalty .......................................................................... 111 XXVII. Non-Accountal of Procured Articles into Stock Register ........................... 115 XXVIII. Non-Production of Record .......................................................................... 118 XXIX. Non-Transparency in government spending ............................................... 118 XXX. Splitting up Works to avoid tender ............................................................. 119 XXXI. Un-Authorized Cash Payment .................................................................... 133 XXXII. Non-accountal of articles ............................................................................ 138 XXXIII. Non-Achievement of Targeted Receipts ..................................................... 140 ii ABBREVIATIONS AND ACRONYMS CC Cement Concrete CMA Constitutional Miscellaneous Application CCB Citizen Community Board CMO Chief Municipal Officer CPWD Central Public Works Department CTR Central Treasury Rules DAC Departmental Accounts Committee DGA Director General Audit FD Finance Department M&R Maintenance & Repair MFDAC Memorandum for Departmental Accounts Committee NIT Notice Inviting Tender NBP National Bank of Pakistan NSUSC North Sindh Urban Services Corporation NTN National Tax Number NIT Notice Inviting Tender PAC Public Accounts Committee PAO Principal Accounting Officer POL Petroleum Oil and Lubricants PWD Public Works Department S&GAD Services and General Administration Department SBP Sindh Bank Pakistan/ State Bank of Pakistan SAMA Services and Assets Management Agreement. SFR Sindh Financial Rules SLGO Sindh Local Government Ordinance SPPRA Sindh Public Procurement Regulatory Authority SRO Statutory Rules and Orders i TMA Taluka / Town Municipal Administration TMO Taluka / Town Municipal Officer TO (F) Taluka/Town Officer (Finance) TO (I&S) Taluka/Town Officer (Infrastructure & Services) TO (P&C) Taluka/Town Officer (Planning & Coordination) TO (R) Taluka/Town Officer (Regulation) TS Technical Sanction TSE Technically Sanctioned Estimate UC Union Council ii PREFACE Articles 169 & 170 (2) of the Constitution of the Islamic Republic of Pakistan, 1973, read with Sections 8 and 12 of the Auditor General (Functions, Powers and Terms and Conditions of Service) Ordinance, 2001, require the Auditor General of Pakistan to conduct audit of the receipts and expenditure of the Secretary Local Government Department, Karachi Metropolitan Corporation, Karachi Water & Sewerage Board, Municipal Corporation/Committees, Town Committees and Union Councils. The report is based on audit of Municipal Committees / Town Committees of Mirpurkhas Division for the year 2012-13 & 2013-14. The Directorate General of Audit Local Councils Sindh, Karachi, conducted audit during 2013-14 & 2014-15 on test check basis with a view to reporting significant findings to relevant stakeholders. The main body of 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 Annexure-I of the Audit Report. The Audit observations listed in the Annexure-I 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.