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Audit Report on the Accounts of District Government Hafizabad

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Audit Report on the Accounts of District Government Hafizabad AUDIT REPORT ON THE ACCOUNTS OF DISTRICT GOVERNMENT HAFIZABAD AUDIT YEAR 2017-18 AUDITOR GENERAL OF PAKISTAN TABLE OF CONTENTS ABBREVIATIONS & ACRONYMS ................................................................................ i PREFACE ......................................................................................................................... iii EXECUTIVE SUMMARY .............................................................................................. iv SUMMARY OF TABLES AND CHARTS ................................................................... viii Table 1: Audit Work Statistics .................................................................................................... viii Table 2:Audit observations regarding Financial Management ................................................... viii Table 3: Outcome Statistics ........................................................................................................ viii Table 4: Table of Irregularities Pointed Out ................................................................................ ix Table 5: Cost-Benefit ................................................................................................................... ix CHAPTER-1 ...................................................................................................................... 1 1.1 District Government, Hafizabad ..................................................................................... 1 1.1.1 Introduction of Departments ........................................................................................... 1 1.1.2 Comments on Budget and Accounts (Variance Analysis) .............................................. 1 1.1.3 Brief Comments on the Status of Compliance on MFDAC Audit Paras of Audit Report 2016-17 ........................................................................................................................... 3 1.1.4 Brief Comments on the Status of Compliance with PAC ............................................... 3 1.2 AUDIT PARAS...................................................................................................... 4 1.2.1 Non-production of record ............................................................................................... 5 1.2.2 Irregualirty / Non-compliance ......................................................................................... 7 1.2.3 Internal Control Weaknesses ........................................................................................ 14 ANNEXURES .................................................................................................................. 29 Annexure-A ................................................................................................................................. 30 Annexure-B ................................................................................................................................. 36 Annexure-C ................................................................................................................................. 38 Annexure-D ................................................................................................................................. 39 Annexure-E.................................................................................................................................. 46 Annexure-F .................................................................................................................................. 50 Annexure-G ................................................................................................................................. 55 Annexure-H ................................................................................................................................. 67 Annexure-I ................................................................................................................................... 69 Annexure-J .................................................................................................................................. 70 Annexure-K ................................................................................................................................. 85 Annexure-L.................................................................................................................................. 94 Annexure-M ................................................................................................................................ 96 Annexure-N ................................................................................................................................. 99 Annexure-O ............................................................................................................................... 105 Annexure-P ................................................................................................................................ 108 Annexure-Q ............................................................................................................................... 110 Annexure-R ............................................................................................................................... 114 Annexure-S ................................................................................................................................ 128 Annexure-T................................................................................................................................ 130 Annexure-V ............................................................................................................................... 149 ABBREVIATIONS & ACRONYMS BHU Basic Health Unit C&W Communication and Works CA Conveyance Allowance DAC Departmental Accounts Committee DCO District Coordination Officer DDO Drawing and Disbursing Officer DEO (EE-M) District Education Officer (Elementary Education-Male) DO District Officer DOH District Officer (Health) DHQ District Headquarter EDO Executive District Officer FCR Final Completion Report FD Finance Department F&P Finance and Planning HR Human Resource HRA House Rent Allowance HSRA Health Sector Reform Allowance LP Local Purchase LD Liquidated Damages MB Measurement Book MS Medical Superintendent MRS Market Rate System NAM New Accounting Model NPA Non Practicing Allowance PAC Public Accounts Committee PAO Principal Accounting Officer PFR Punjab Financial Rules i PDG & TMA Punjab District Governments & Tehsil Municipal Administration PHSRP Punjab Health Sector Reforms Programme PFR Punjab Financial Rules PIPIP Punjab Irrigated-Agricultural Productivity Improvement Project PLGO Punjab Local Government Ordinance POL Petroleum Oil and Lubricants PPRA Punjab Procurement Regulatory Authority PWD Public Works Department RDA Regional Directorate of Audit RHC Rural Health Center Rs Rupees SAP System Application Product S&GAD Services and General Administration Department SMO Senior Medical Officer TA Travelling Allowance THQ Tehsil Headquarter TMA Tehsil Municipal Administration TS Technical Sanction WUA Water User Association ii 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 Expenditures of the District Government Fund and Public Account of District Government is the responsibility of the Auditor General of Pakistan. The report is based on audit of the accounts of various offices of the District Government, Hafizabad for the financial year 2016-17. The Directorate General of Audit, District Governments, Punjab (North), Lahore conducted audit during 2017-18 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 significant audit findings. 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 framework besides instituting and strengthening internal controls to prevent recurrence of such violations and irregularities. The observations included in this Report have been finalized after discussion of Audit Paras with the management. However, no Departmental Accounts Committee meetings were conveyed despite repeated requests. The Audit Report is submitted to the Governor of the Punjab in pursuance of Article 171 of the Constitution of the Islamic Republic of Pakistan, 1973 to cause it to be laid before the Provincial Assembly of Punjab. Islamabad (Javaid Jehangir) Dated: Auditor General of Pakistan iii EXECUTIVE SUMMARY The Directorate General of Audit District Governments, Punjab (North), Lahore is responsible to carry out the Audit of District Governments, Tehsil / Town Municipal Administrations and Union Administrations of three City District Governments and sixteen District Governments. Its Regional Directorate of Audit, Gujranwala has Audit jurisdiction
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