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Audit Report on the Accounts of C&W, Hud&Phe, Irrigation

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Audit Report on the Accounts of C&W, Hud&Phe, Irrigation AUDIT REPORT ON THE ACCOUNTS OF C&W, HUD&PHE, IRRIGATION, DEPARTMENTS, DAANISH SCHOOLS & CENTERS OF EXCELLENCE AUTHORITY, AND CHOLISTAN DEVELOPMENT AUTHORITY GOVERNMENT OF THE PUNJAB AUDIT YEAR 2015-16 AUDITOR GENERAL OF PAKISTAN TABLE OF CONTENTS ABBREVIATIONS & ACRONYMS...................................................................................................................................... i PREFACE EXECUTIVE SUMMARY .................................................................................................................................................. vii SUMMARY TABLES & CHARTS xv 1 Audit Work Statistics .......................................................................................................................................... xv 2 Audit Observations Classified by Categories xv 3 Audit Outcome Statistics xvi 4 Irregularities Pointed Out xvii 5 Cost-Benefit xviii CHAPTER - 1 1 PUBLIC FINANCIAL MANAGEMENT ISSUES 1 DIRECTORATE GENERAL ACCOUNTS WORKS LAHORE 1 1.1 Introduction .......................................................................................................................................................... 1 1.2 AUDIT PARAS .................................................................................................................................................... 1 1.2.1 Non-utilization of funds/budget - Rs 60,582.43 million ........................................................................................ 1 1.2.2 Expenditure in excess over budget allocation - Rs 31,137.88 million ................................................................... 2 1.2.3 Expenditure without budget allocation - Rs 72.01 million .................................................................................... 2 CHAPTER - 2 ........................................................................................................................................................................ 5 COMMUNICATION AND WORKS DEPARTMENT ......................................................................................................... 5 2.1 Introduction .......................................................................................................................................................... 5 2.2 Comments on Budget and Accounts (Variance Analysis) ..................................................................................... 5 2.3 Brief comments on the status of compliance with PAC directives 8 2.4 AUDIT PARAS 11 2.4.1 Loss to government due to misappropriation of funds and non-recovery of surplus amount - Rs 241.70 million 11 2.4.2 Non-obtaining of performance securities - Rs 5,552.25 million .......................................................................... 11 2.4.3 Non-recovery of risk and cost amount from defaulting contractors - Rs 2,500.10 million .................................. 13 2.4.4 Overpayment due to application of incorrect rate - Rs 142.97 million ................................................................ 19 2.4.5 Non-recovery on account of de-escalation in price of diesel and bitumen - Rs 126.65 million ........................... 33 2.4.6 Application of higher input rate in rate analysis of item pre-mixed carpeting - Rs 85.38 million ....................... 45 2.4.7 Approval of rate analysis at higher rates - Rs 59.94 million ............................................................................... 46 2.4.8 Overpayment due to allowing inadmissible dumper truck in item sub base and base course - Rs 46.59 million. 48 2.4.9 Non/less recovery of dismantled material - Rs 35.25 million ............................................................................. 51 2.4.10 Non-recovery on account of dismantled material - Rs 31.32 million .................................................................. 54 2.4.11 Irregular payment due to execution of work beyond the approved scope - Rs 28.81 million .............................. 57 2.4.12 Unjustified payment for defective work - Rs 28.02 million ................................................................................ 58 2.4.13 Overpayment due to adoption of longer route for crushed stone - Rs 24.53 million ........................................... 60 2.4.14 Non-recovery due to less use of bitumen - Rs 23.57 million ............................................................................... 63 2.4.15 Overpayment due to approval of excess rate in TS estimate - Rs 23.23 million ................................................. 67 2.4.16 Loss due to procurement of bitumen from distant refinery - Rs 21.16 million .................................................... 68 2.4.17 Non-auction of unserviceable machinery and surplus store - Rs 20.91 million ................................................... 69 2.4.18 Irregular payment of mega allowance - Rs 20.30 million ................................................................................... 72 2.4.19 Overpayment due to approval of higher rate by including income tax - Rs 16.65 million .................................. 73 2.4.20 Excess payment due to non-deduction of available earth - Rs 14.32 million ...................................................... 75 2.4.21 Overpayment due to allowing higher percentage - Rs 9.61 million .................................................................... 78 2.4.22 Non-recovery of general sales tax from the consultants - Rs 8.92 million .......................................................... 80 2.4.23 Loss due to allowing higher rates in T.S. Estimate - Rs 7.04 million .................................................................. 82 2.4.24 Overpayment due to allowing price variation on inadmissible item - Rs 6.95 million ........................................ 83 2.4.25 Overpayment due to non-reduction in composite rate - Rs 6.25 million ............................................................. 84 2.4.26 Application of incorrect MRS rates for approval of TSE - Rs 5.99 million ........................................................ 87 2.4.27 Irregular Expenditure - Rs 5.68 million .............................................................................................................. 90 2.4.28 Inadmissible payment on account of temporary works i.e. engineer’s office - Rs 5.09 million .......................... 91 2.4.29 Irregular release of performance/additional performance security - Rs 4.25 million........................................... 93 2.4.30 Un-justified provision of media charges in TSE - Rs 3.49 million ...................................................................... 94 2.4.31 Non-recovery due to excess measurements of size of bricks - Rs 3.35 million .................................................. 95 2.4.32 Non-recovery of pre-shipment inspection charges - Rs 3.26 million .................................................................. 96 2.4.33 Non-recovery of penalty imposed by the enquiry officer - Rs 3.00 million ....................................................... 97 2.4.34 Loss due to non-reduction in composite rate - Rs 2.95 million ........................................................................... 98 2.4.35 Irregular payment due to allowing undue increment - Rs 2.89 million ............................................................. 100 2.4.36 Overpayment due to excess measurement - Rs 2.39 million ............................................................................. 101 2.4.37 Irregular payment on account of banners and steamers without open tendering - Rs 2.36 million .................... 102 2.4.38 Loss due to allowing higher rate of bitumen (packed) than available on website - Rs 2.14 million .................. 103 2.4.39 Loss due to late handing over of collection of toll tax rights to contractor - Rs 1.64 million ............................ 104 2.4.40 Non-recovery of mobilization advance and interest - Rs 1.59 million .............................................................. 105 2.4.41 Unjustified provision of contingency - Rs 1.46 million .................................................................................... 106 2.4.42 Overpayment due to incorrect measurement - Rs 1.36 million ......................................................................... 106 2.4.43 Loss due to acceptance of tender at higher rates - Rs 1.09 million ................................................................... 108 CHAPTER - 3 .................................................................................................................................................................. 111 HOUSING, URBAN DEVELOPMENT & PUBLIC HEALTH ENGINEERING DEPARTMENT ............................... 111 3.1 Introduction of Department ............................................................................................................................... 111 3.2 Comments on Budget and Accounts (Variance Analysis) ................................................................................. 111 3.3 Brief comments on the status of compliance with PAC directives 115 3.4 AUDIT PARAS 117 LAHORE DEVELOPMENT AUTHORITY (LDA) ........................................................................................................ 117 3.4.1 Non-recovery of commercialization fee and penalty - Rs 450.51 million ......................................................... 117 3.4.2 Loss due to sanction of incorrect rate analysis - Rs 126.21 million .................................................................
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