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Auditor General of Pakistan AUDIT REPORT ON THE ACCOUNTS OF GOVERNMENT OF KHYBER PAKHTUNKHWA AUDIT YEAR 2016-17 AUDITOR GENERAL OF PAKISTAN ABBREVIATIONS & ACRONYMS 1. ADB…………Asian Development Bank 2. ADP ............... Annual Development Program 3. APR ............... Actual Payee Receipts 4. AM&R ........... Annual Maintenance & Repair 5. ARS ............... Agriculture Research Station 6. AWKUM…….. Abdul Wali Khan University Mardan 7. AUP………… Agriculture University Peshawar 8. BOQ ............... Bill of Quantities 9. C&W………...Communication and Works 10. CCCPO .......... Chief Capital City Police Office 11. CPPA ............. Central Power Purchasing Agreement 12. CPPA………. Central Power Purchase Agency 13. CPO ............... Central Police Office 14. CPWA ............ Central Public Works Accounts 15. CPWD ............ Central Public Works Department 16. CSR ................ Composite Schedule of Rates 17. CTR………… Central Treasury Rules 18. CRBC ............ Chashma Right Bank Canal 19. Cft .................. Cubic feet 20. COD…………Commercial Operation Data 21. DCO………...District Coordination Officer 22. DRC………..Documents Review Committee 23. DAC ............... Departmental Accounts Committee 24. DAO………... District Accounts Office 25. DFC………… District Food Controller 26. DFO ............... Divisional Forest Officer 27. DDA………...District Director Agriculture 28. DDO .............. Drawing & Disbursing Officer 29. DSC ............... Developmental Steering Committee 30. DRAC ............ District Rate Committee Assessment 31. EGB ............... Empty Gunny Bag 32. EME…………Electro Mechanical Engineering 33. FDC ............... Forest Development Corporation 34. FTR ................ Federal Treasury Rules 35. FIR………….First Information Report 36. FATA………. Federally Administrative Tribal Area 37. FANA ............ Frontier and Northern Area 38. GFR ............... General Financial Rules 39. GHW………… 40. HPP………….Higher Power Project 41. HDF………….Hydel Development Fund 42. HOD…………Head Of Department 43. HED………..Higher Education Department 44. HEC ............... Higher Education Commission 45. HMC .............. Hayatabad Medical Complex 46. IFSP………...Insaf Food Security Program 47. IPC ................. Interim Payment Certificate 48. KP .................. Khyber Pakhtunkhwa 49. Kg .................. Kilogram 50. Km ................. Kilometer 51. LFA………….Literacy For All 52. LG&RDD ...... Local Government & Rural Development Department 53. MB ................. Measurement Book 54. MCC .............. Medicines Coordination Cell 55. MFSC……….Model Farm Service Center 56. MS ................. Medical Superintendent 57. MD………….Managing Director 58. MNCH………Maternal Newborn & Child Health 59. MOU………..Memorandum Of Understanding 60. NEPRA………National Electric Power Regulatory Authority 61. NIT ................ Notice Inviting Tender 62. NRC ............... National Reserve Centre 63. NSR ............... Non Schedule Rate 64. NSL ................ Natural Soil Level 65. NTDC………..National Transmission and Dispatch Co 66. NTN…………National Tax Number 67. O&M .............. Operation and Maintenance 68. OM………….Operations Manual 69. OFWM………On Farm Water Management 70. OPD ............... Out Patient Department 71. PD…………..Project Director 72. PAC ............... Public Accounts Committee 73. PASSCO ........ Pakistan Agriculture Storage & Supply ....................... Corporation 74. PESCO ........... Peshawar Electric Supply Company 75. PEDO……….Pakhtunkhwa Energy Development Organization 76. PHYDO………Provincial Hydro Development Organization 77. PC…………..Project Coordinator 78. PCC ................ Plain Cement Concrete 79. PLA ................ Personal Ledger Account 80. PPA ................ Power Purchase Agreement 81. POL ................ Petroleum, Oil & Lubricants 82. POF ................ Pakistan Ordnance Factory 83. PDWP ……... Provincial Development Working Party 84. RCC ............... Reinforced Cement Concrete 85. SDO ............... Sub Divisional Officer 86. SME’s……….Small & Medium Enterprises 87. SMEDA……. Small & Medium Enterprises Development ....................... Authority 88. SRSP………..Sarhad Rural Support Programme 89. S&EO ............ Storage & Enforcement Officer 90. Sft .................. Square Feet 91. SIP ................. Special Initiative Package 92. STN………….Sales Tax Number 93. TEVTA………Technical Educational & Vocational Training ....................... Agency 94. TS……………Technical Sanction 95. TTS ................ Tenure Track System 96. UA………….. 97. UAA .............. Un-attractive Area Allowance 98. VC .................. Vice Chancellor 99. Vol ................. Volume 100. WAPDA ........ Water and Power Development Authority 101. WUA……….Water User Association TABLE OF CONTENTS ABBREVATIONS & ACRONYMS PREFACE i EXECUTIVE SUMMARY ii SUMMARY TABLES & CHARTS viii I Audit Work Statistic viii II Audit Observations Classified by category viii III Outcome Statistics ix IV Irregularities pointed out x CHAPTER - 1 1 Public Financial Management Issues pertain to Appropriation Accounts and Finance Accounts compiled by the Accountant General and Finance Department Government of Khyber Pakhtunkhwa. ..................................................................... 1.1.1 Un-reconciled expenditure of Rs. 1,396.177 million .................................................. 1 1.1.2 Excess expenditure over the final grant - Rs. 168.180 million .................................... 2 1.1.3 Expenditure without final grant - Rs. 27.300 million .................................................. 3 CHAPTER - 2 Agriculture Department 2.1 Introduction ............................................................................................................... 4 2.2 Comments on Budget and Accounts (Variance Analysis) ..................................... 4 2.3 Brief comments on the status of compliance with PAC directives ........................ 6 2.4 AUDIT PARAS.......................................................................................................... 7 2.4.1 Non-production of record of the project expenditure – Rs.51.130 million ................. 7 2.4.2 Misappropriation on account of wheat seed/loading un-loading -Rs.292.813 million 7 2.4.3 Misappropriation on account of registration and share fee - Rs.220.140 million........ 8 2.4.4 Misappropriation on account of food insecticides - Rs 5.849 million ......................... 9 2.4.5 Loss to Government due to payment at higher rates for execution of construction work -Rs.1,320.527 million....................................................................................... 10 2.4.6 Loss due to non-deduction of sales tax from suppliers – Rs.32.254 million ............. 11 2.4.7 Loss due to non deduction of Income Tax - Rs.29.493 million ................................ 12 2.4.8 Loss on the construction/installation of sub-standard high roof tunnels in KP - Rs.15.334 million ...................................................................................................... 13 2.4.9 Loss due to mismanagement of farms - Rs 11.719 million ...................................... 15 2.4.10 Unauthorized expenditure on transportation of wheat seed - Rs.9.238 million......... 16 2.4.11 Loss due to showing less yield of milk – Rs 7.488 million ....................................... 16 2.4.12 Loss due to ill planning and irregular/un-authorized payment - Rs.3.017 million .... 18 2.4.13 Loss due to misappropriation on account of purchase of 3 tractors and transportation charges – Rs.2.250 million ................................................................. 19 2.4.14 Loss due to illegal excavation of soil of agriculture land worth millions of rupees .. 20 2.4.15 Non-recovery on account of sale of wheat – Rs.19.348 million ............................... 21 2.4.16 Non-recovery of sale proceeds of maize - Rs.7.790 million ..................................... 21 2.4.17 Non-recovery of 1% stamp duty on the purchase & supply of Parabolic Irrigation segments - Rs.2.780 million ...................................................................................... 22 2.4.18 Unauthorized/unauthentic distribution of wheat seed - Rs.295.091 million ............. 23 2.4.19 Unauthorized expenditure from Cess fund - Rs.7.730 million .................................. 25 2.4.20 Unauthorized and doubtful expenditure on daily paid labour from the receipts - Rs.1.373 million ........................................................................................................ 26 2.4.21 Loss due to non-deduction of income tax - Rs. 6.750 million ................................... 27 2.4.22 Irregular and unauthorized award of contract of Fishing Right in Tarbela Dam - Rs.105.030 million .................................................................................................... 27 2.4.23 Irregular drawl on account of purchase of concentrate for beef animals – Rs.7.290 million .................................................................................................... 29 2.4.24 Non-deposit of receipts amounting - Rs.6.135 million ............................................. 30 2.4.25 Excess payment on account of loading and unloading charges - Rs.20.962 million . 30 2.4.26 Excess payment due to purchase on higher rates-Rs.1.980 million and non-deduction of income tax- Rs.0.476 million ........................................................ 32 2.4.27 Outstanding dues against various sister offices/store keeper - Rs.13.910 million .... 33 CHAPTER - 3 Administration Department 3.1 Introduction ............................................................................................................
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