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Report for the Year 2015-16 Comprising Two Hundred & Forty One (241) Paras in Its Twenty (20) Sittings and Made the Following Recommendations

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Report for the Year 2015-16 Comprising Two Hundred & Forty One (241) Paras in Its Twenty (20) Sittings and Made the Following Recommendations PROVINCIAL ASSEMBLY OF KHYBER PAKHTUNKHWA REPORT OF PUBLIC ACCOUNTS COMMITTEE ON THE ACCOUNTS OF GOVERNMENT OF KHYBER PAKHTUNKHWA FOR THE YEAR 2015-16 CHAIR’S FOREWORD The Public Accounts Committee (PAC) has a key role in exercising scrutiny over the execution of Budget that the legislatures approve and to assure that funds appropriated by the Assembly has been spent legally and as the Assembly intended. To achieve this goal and to have strong financial mechanism in the Departments, the PAC has played a very important role by giving guidance and recommendations from time to time. However it was noted that most of the Departments do not observe the financial discipline in its true spirit resultantly financial irregularities crop up, the Departments are therefore required to strictly adhere to the recommendations of PAC. The Report of the Auditor General of Pakistan for the year 2015-16 was referred to PAC by the Assembly on 29th October, 2018. The Public Accounts Committee has examined two hundred & forty one (241) Draft Paras in twenty (20) sittings. The Committee has performed its job; however, the efforts of the Committee and Audit will be fruitless until its recommendations are implemented in its true spirit by the Administrative Departments. If the recommendations of PAC are not implemented, the whole process of Audit and financial oversight would not be more than a futile exercise. During examination of the Audit Report it was noticed that no facilitation work was made in the Pre-PAC meeting only stereotype decisions were made on the Pre-PAC level. The purpose of Pre-PAC forum was to make preparation before coming to PAC as to whether some action or documents that needs to be produced before the PAC could be collected and such other short comings could be fulfilled to facilitate the job of PAC and to save the precious time wasted in petty nature issues. The forum of Pre-PAC has not served such purpose and start making decisions, which was the domain of PAC and creating mis-understanding during the meetings. Internal Audit is the key tool to prevent financial irregularities at the gross root level and its importance could not be ignored as it plays a vital role in management to improve performance, prevent losses, control mismanagement of public money and safeguard government assets. Being a requirement; it should be carried out regularly by each Department so that irregularities could be pointed out at an earlier stage and reduced if not avoid completely. I extend my thanks to those Members of PAC who regularly participated in the meetings throughout the series, officers of the Administrative Departments & Auditor General’s office, the representatives of Law and Finance Departments for their support in accomplishing the difficult and challenging assignment. I especially extend my commendations to the officers and staff of the PAC Cell for their support, facilitation, guidance to the Committee, untiring efforts in arranging meetings and compiling the data in this book form. -Sd- (MUSHTAQ AHMAD GHANI) Speaker/Chairman Public Accounts Committee. P R E F A C E The Report of the Auditor General of Islamic Republic of Pakistan on the accounts of Government of Khyber Pakhtunkhwa Province for the year 2015-16 comprising the Audit Report, Appropriation Accounts, Financial Statements, Audit Report on Revenue Receipts and Audit Report on Public Sector Enterprises was laid before the Assembly and for detailed examination was referred to the Public Accounts Committee (PAC) on 29th October, 2018. This report of PAC contains two hundred & forty one (241) Draft Paras, Follow- Up Business, report of Inter Departmental Committee and reports of Sub-Committees which were examined in twenty (20) sittings of PAC. In this Report, the Audit Paras pertaining to each Department are arranged separately. In addition, the Follow-up Business, report of Inter Departmental Committee, Inquiry Reports and reports of the Sub-Committees are also arranged separately. The Table showing details of total Paras and recommendations of PAC thereon has also been added for ready reference. The drafting and preparation of this report has been made possible due to the determined hard work of the officers and staff of the PAC Cell who kept trying to arrange frequent meetings and timely compilation of this Report. I deeply acknowledge their active services for giving briefing/assistance to the Members. Their sincere and devoted endeavors deserve appreciation and commendation. This report of PAC is presented to the Provincial Assembly of Khyber Pakhtunkhwa under Rule 161 of the Provincial Assembly of Khyber Pakhtunkhwa Procedure and Conduct of Business Rules, 1988. -Sd- (NASRULLAH KHAN KHATTAK) Secretary, Provincial Assembly of Khyber Pakhtunkhwa CHAIRMAN AND MEMBERS OF THE PUBLIC ACCOUNTS COMMITTEE Figure 1 TABLE OF CONTENT S.No Department Date of meeting Page No. 1. Introduction i-ix Audit Report 2. Higher Education 02-09-2020 1-66 03-09-2020 3. Communication & Works 09-09-2020 67-117 10-09-2020 4. Health 23-09-2020 118-188 24-09-2020 30-09-2020 01-10-2020 5. Environment 07-10-2020 189-229 08-10-2020 6. Food 14-10-2020 230-300 15-10-2020 18-11-2020 7. Elementary & Secondary Education 02-11-2020 301-306 8. Social Welfare 02-11-2020 307-310 9. Local Government 02-11-2020 311-324 10. Agriculture 03-11-2020 325-362 11. Public Health Engineering 04-11-2020 363-368 12. Home & Tribal Affairs 04-11-2020 369-402 05-11-2020 13. Provincial Housing Authority 19-11-2020 403-421 14. Irrigation 25-11-2010 422-461 26-11-2020 15. Reports of Sub-Committees 24-09-2020 462-503 02-11-2020 19-11-2020 25-11-2020 16. Report of Inter Departmental Committee 09-09-2020 504 17. Inquiry Reports 30-09-2020 505-507 15-10-020 INTRODUCTION INTRODUCTION The annual report of the Auditor General of Pakistan on the Accounts of Government of Khyber Pakhtunkhwa for the year 2015-16, received in the Assembly Secretariat on 01-10-2018, was laid before the House on 29-10-2018 in pursuance of Article 171 of the Constitution of Islamic Republic of Pakistan read with rule 198 of the Provincial Assembly of Khyber Pakhtunkhwa Procedure and Conduct of Business Rules, 1988. The House referred it to the Public Accounts Committee (PAC) on the same day for detailed examination. 2. The PAC started examination of this report in its regular meetings i.e meetings on each Wednesday & Thursday and examined Audit Paras pertaining to all Administrative Departments in its twenty (20) sittings. sixteen (16) sittings were held on 02-09-2020, 03-09-2020, 09-09-202, 10-09-2020, 23-09-2020, 24-09-2020, 30-09-2020, 01-10-2020, 07-10-2020, 08-10-2020, 14-10-2020 15-10-2020, 18-11-2020, 19-11-2020, 25-11-2020 and 26-11-2020 in the Conference Room of the Provincial Assembly of Khyber Pakhtunkhwa and four sitting were held on 02-11-2020, 03-11-2020, 04-11-2020 and 05-11-2020 in the Conference Room of the Khyber Pakhtunkhwa House, Abbottabad, wherein the PAC examined two hundred and forty one (241) Audit Paras pertaining to Higher Education, , Communication & Works, Health, Environment, Food, Elementary & Secondary Education, Social Welfare, Local Government, Agriculture, Public Health Engineering, Home & Tribal Affairs, Provincial Housing Authority and Irrigation Departments. In addition, the Follow-up Business pertaining to Higher Education, Communication & Works, Health and Food Departments, six (06) reports of Sub-Committees, two (02) Provincial Inspection Team reports, one Inter Departmental Committee report were examined and adopted by the Committee. 3. While examining the Audit Paras, the Committee observed lack of internal controls in the Procvincial Departments which resulted in the following short comings in the financial management system of the Privince: Non-observance of standards of financial propriety and non-compliance of rules & regulations; Non- recovery of government dues; Overpayments in pay & allowances; Loss to government due to negligence; Excess payments to suppliers/contractors; Irregular, unauthorized and unnecessary expenditure; Misuse of financial powers by the subordinate officials; Wastege of funds due to un-necessary purchase of store etc; Retention of public money outside the government account; DAC meetings not convened regularly; and The Directives of the DAC and PAC not implemented in its true spirit. 4. In order to overcome the above mentioned deficiencies, the Principal Accounting Officers were directed to assess the existing internal controls and strengthen it in the offices and organization working under their subordination. PAC Report 2015-16 Page i 5. For future guidance, they were directed to:- Prevent misuse of government assets; Avoid keeping of public money outside the government account and prevent unnecessary drawal of funds; Implement directives of DAC & PAC in its true spirit; Regularly convene effective DAC meetings; Maintain accurate accounting records and make it available to auditors at the time of the audit; Recover Government dues and deposit it timely in Government Treasury; Non-production of record by any person or authority responsible should be dealt with strictly by initiating disciplinary action under relevant Efficiency and Disciplinary Rules and section 14(3) of the Auditor General’s (Functions, Powers, and Terms & Conditions of Service) Ordinance, 2001; and Timely investigate the cases of losses and take remedial measures. 6. In addition to the recommendations on each Draft Para, the PAC recommended the following for the improvement of financial management
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