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Audit Report on the Accounts of Government of the Punjab Audit Year 2013-14

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Audit Report on the Accounts of Government of the Punjab Audit Year 2013-14 AUDIT REPORT ON THE ACCOUNTS OF GOVERNMENT OF THE PUNJAB AUDIT YEAR 2013-14 AUDITOR GENERAL OF PAKISTAN TABLE OF CONTENTS ABBREVIATIONS & ACRONYMS XV PREFACE XIX EXECUTIVE SUMMARY XXIII SUMMARY TABLES & CHARTS XXIX Table 1: Audit Work Statistics xxix Table 2: Audit observations classified by categories xxix Table 3: Outcome Statistics xxx Table 4: Irregularities pointed out xxxi Table 5: Cost Benefit xxxi CHAPTER 1 1 Public Financial Management Issues (Accountant General Punjab and Director Budget & Accounts Forest Department) 1 1.1 AUDIT PARAS 1 1.1.1 Unjustified negative balances of foreign debt- Rs. 41,543.55 millions 1 1.1.2 Excess payment against domestic debt-Rs.13,015.91 millions 2 1.1.3 Difference of cash balances between book and bank- Rs. 7,926.72 millions 3 1.1.4 Non-clearance of pre audit civil cheques-Rs. 4,782.27 millions 4 1.1.5 Expenditure against zero budget allocations-Rs. 2,567.89 millions 4 1.1.6 Expenditure excess than budget allocations-Rs.8,929.38 millions 5 1.1.7 Unjustified supplementary provision-Rs.2,231.69 millions 6 1.1.8 Un-utilized budget-Rs.170,791.08 millions 7 1.1.9 Excess payment against pay & allowances-Rs.11.06 millions 8 1.1.10 Non-reconciliation of receipts and payments 9 1.1.11 Unjustified forest advance-Rs.248.78 millions 10 1.1.12 Pre audit civil cheques-Forest Department-Rs.1,077.41 millions 11 i 1.1.13 Unjustified negative balance of Forest Department- Rs. 2,827.72 millions 11 CHAPTER 2 13 AGRICULTURE DEPARTMENT 13 2.1 Introduction 13 2.2 Comments on Budget & Accounts (Variance Analysis) 14 2.3 Brief comments on the status of compliance with PAC Directives 17 2.4 AUDIT PARAS 18 2.4.1 Theft of laptop and vehicle-Rs. 1.17 millions 18 2.4.2 Misappropriation/Shortage of POL - Rs. 319,318 19 2.4.3 Non production of vouched accounts-Rs. 527.27 millions 20 2.4.4 Irregular award of contract for civil works-Rs.30.28 millions 21 2.4.5 Irregular appointments in universities-Rs.17.06 millions 23 2.4.6 Irregular payment of pay & allowances-Rs.15.37 millions 24 2.4.7 Purchases without concurrence of austerity committee- Rs.7.280 millions 26 2.4.8 Irregular payment to professor emeritus-Rs.4.32 millions 27 2.4.9 Irregular/illegal payment to Ex-Vice Chancellor- Rs. 810,000 29 2.4.10 Loss due to purchase of services from non registered firm- Rs. 6.51 millions 30 2.4.11 Unauthorized occupation of designated residences Rs. 5.48 millions 32 2.4.12 Overpayment by allowing quantities in excess to Technically Sanctioned Estimates (TSE)-Rs. 2.68 millions 33 2.4.13 Less/non deduction of income tax-Rs. 1.98 millions 34 2.4.14 Non recovery of overpayments-Rs. 1.18 millions 35 2.4.15 Non recovery of outstanding dues-Rs. 1.03 millions 37 2.4.16 Non recovery of liquidated damages-Rs. 954,817 38 2.4.17 Overpayment of inadmissible allowances-Rs.952,788 39 2.4.18 Non disposal of unserviceable vehicles and other items/ stock- Rs. 16.16 millions 41 2.4.19 Non-adjustment of advances-Rs. 2.98 millions 42 ii CHAPTER 3 45 AUQAF AND RELIGIOUS AFFAIRS DEPARTMENT 45 3.1 Introduction 45 3.2 Comments on Budget & Accounts (Variance Analysis) 47 3.3 Brief comments on the status of compliance with PAC Directives 50 3.4 AUDIT PARAS 51 3.4.1 Non recovery of cost of pattadari- Rs. 3.24 millions 51 CHAPTER 4 53 FINANCE DEPARTMENT 53 4.1 Introduction 53 4.2 Comments on Budget & Accounts (Variance Analysis) 54 4.3 Brief comments on the status of compliance with PAC Directives 57 4.4 AUDIT PARAS 58 4.4.1 Outstanding loans against financial/non financial institutions and local bodies-Rs. 110,389 millions 58 4.4.2 Non receipt of return on investments-Rs. 2,065 millions 59 4.4.3 Outstanding recovery against Lahore Ring Road Authority- Rs. 140 millions 60 4.4.4 Outstanding recovery against Punjab Vocational Training Council-Rs. 25 millions 61 4.4.5 Loss due to non investment-Rs. 4,000 millions 62 4.4.6 Unauthorized release of loan to PSIC-Rs. 2,140 millions 63 4.4.7 Unauthorized release of loan to Lahore Meat Processing Company-Rs. 1,439.06 millions 63 4.4.8 Unauthorized release of loan to PLDC-Rs.839.92 millions 65 4.4.9 Irregular release of loan to PLDDB-Rs. 600 millions Outstanding recovery of interest-Rs. 1.88 millions 66 4.4.10 Irregular release of loan without execution of agreement- Rs. 100 millions 67 4.4.11 Unauthorized release of Loan to Engineering Consultancy Services Punjab (Pvt.) Ltd.-Rs. 83 millions 68 iii 4.4.12 Utilization reports not obtained for grants-in-aid- Rs.34,454 millions 68 4.4.13 Non framing of rules governing public debt 69 CHAPTER 5 70 FOOD DEPARTMENT 71 5.1 Introduction 71 5.2 Comments on Budget & Accounts (Variance Analysis) 72 5.3 Brief comments on the status of compliance with PAC Directives 75 5.4 AUDIT PARAS 76 5.4.1 Misappropriation of wheat and other stocks-Rs.100.96 millions 76 5.4.2 Non-production of record-Rs.6.45 millions 78 5.4.3 Irregular process for procurement of stores-Rs.2,097.42 millions 79 5.4.4 Irregular payment to daily wages employees-Rs.4.81 millions 80 5.4.5 Irregular expenditure on purchase of vehicle-Rs.3.11 millions 81 5.4.6 Irregular mode of payments-Rs.1.44 millions 83 5.4.7 Unauthorized sanction of expenditure beyond the prescribed limit- Rs.1.30 millions 83 5.4.8 Irregular expenditure on construction of plinth-Rs.1.15 millions 85 5.4.9 Irregular expenditure on dunnage material-Rs.1.14 millions 85 5.4.10 Irregular payment of market committee fee-Rs.1.13 millions 86 5.4.11 Loss to government due to damage of wheat-Rs.877,350 87 5.4.12 Non forfeiture of bardana security-Rs.832,335 88 5.4.13 Shortage of wheat-Rs.755,188 89 5.4.14 Non recovery of government dues-Rs.351.36 millions 90 5.4.15 Less/non deduction of income tax-Rs.5.96 millions 91 5.4.16 Overpayment of pay and allowances-Rs.929,149 93 5.4.17 Unauthorized de-classification of tarpaulins and jute bags- Rs.67.69 millions 94 5.4.18 Non-declassification and auction of unserviceable items- Rs. 2.67 millions 95 5.4.19 Un-economical/irregular procurement of loans without observing PPRA Rules 97 iv CHAPTER 6 97 FORESTRY, WILDLIFE & FISHERIES DEPARTMENT 99 6.1. Introduction 99 6.2 Comments on Budget & Accounts (Variance Analysis) 100 6.3 Brief comments on the status of compliance with PAC Directives 103 6.4 AUDIT PARAS 104 6.4.1 Irregular payment of pay & allowances-Rs.8.51 millions 104 6.4.2 Un-authorized purchase of vehicles -Rs.1.64 millions 105 6.4.3 Unauthorized mode of payments-Rs.1.61 millions 106 6.4.4 Purchase of machinery without immediate requirements- Rs.7.98 millions 107 6.4.5 Non-collection of government dues-Rs.396.28 millions 107 6.4.6 Unjustified expenditure on silt clearance-Rs.1.22 millions 108 6.4.7 Excess expenditure due to variation of rate-Rs. 894,638 109 6.4.8 Non recovery of loss-Rs.11.67 millions 111 6.4.9 Non finalization of inquiry cases of forest damages- Rs. 81.74 millions 112 6.4.10 Non-disposal of timber, fire wood, P-Bags and potted plants- Rs.38.76 millions 113 6.4.11 Non-finalization of forest offence cases-Rs.38.59 millions 114 6.4.12 Non clearance of amounts lying under the head P-deposits- Rs.21.79 millions 115 6.4.13 Loss due to mortality of animals/birds-Rs.5.31 millions 116 6.4.14 Non disposal/auction of unserviceable vehicles and machinery- Rs.5.25 millions 117 6.4.15 Loss to government due to encroachment of land 118 CHAPTER 7 120 HEALTH DEPARTMENT 121 7.1 Introduction 121 7.2 Comments on Budget & Accounts (Variance Analysis) 122 7.3 Brief comments on the status of compliance with PAC Directives 125 v 7.4 AUDIT PARAS 126 7.4.1 Fraud/misappropriation due to bogus issuance of lab kits-Rs. 1.47 millions 126 7.4.2 Fraudulent withdrawal through double claims- Rs. 672,435 127 7.4.3 Non production of record- Rs. 113.02 millions 127 7.4.4 Non deposit of income into PLA-Rs. 273.83 millions 130 7.4.5 Irregular receipt of user charges-Rs. 240.26 millions 131 7.4.6 Irregular procurement of medicine- Rs. 57.94 millions 133 7.4.7 Un-authorized payment of sales tax-Rs.45.19 millions 133 7.4.8 Irregular expenditure due to appointment of contingent paid staff- Rs. 31.58 millions 134 7.4.9 Blockage of capital-Rs. 21.75 millions 135 7.4.10 Drug testing of medicine/disposables not conducted-Rs. 15.59 millions 137 7.4.11 Un-authorized payments of share money-Rs.7.32 millions 138 7.4.12 Irregular procurement of medicine/surgical items-Rs.5.65 millions 140 7.4.13 Irregular purchase of medicine-Rs.
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