Audit Report on the Accounts of District Government Mandi Baha-Ud-Din

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Audit Report on the Accounts of District Government Mandi Baha-Ud-Din AUDIT REPORT ON THE ACCOUNTS OF DISTRICT GOVERNMENT MANDI BAHA-UD-DIN AUDIT YEAR 2016-17 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 Observation 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, Mandi Baha-Ud-Din .......................................................... 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 2015-16 .................................................................................................. 3 1.1.4 Brief Comments on the Status of Compliance with PAC Directives ..................... 3 1.2 AUDIT PARAS ....................................................................................... 4 1.2.1 Irregularity / Non-compliance ............................................................................. 5 1.2.2 Internal Controls Weaknesses ........................................................................... 22 ANNEXES ...................................................................................................... 37 Annex-A ........................................................................................................................ 38 Annex-B ........................................................................................................................ 50 Annex-C ........................................................................................................................ 51 Annex-D ........................................................................................................................ 52 Annex-E ........................................................................................................................ 58 Annex-F ........................................................................................................................ 59 Annex-G ........................................................................................................................ 62 Annex-H ........................................................................................................................ 63 Annex-I ........................................................................................................................ 74 Annex-J ........................................................................................................................ 77 Annex-K ........................................................................................................................ 78 Annex-L ........................................................................................................................ 81 Annex-M........................................................................................................................ 83 Annex-N ........................................................................................................................ 86 Annex-O ........................................................................................................................ 87 Annex-P ........................................................................................................................ 88 Annex-Q ........................................................................................................................ 89 Annex-R ...................................................................................................................... 104 Annex-S ...................................................................................................................... 106 Annex-T ...................................................................................................................... 108 Annex-U ...................................................................................................................... 111 Annex-V ...................................................................................................................... 112 Annex-W ..................................................................................................................... 113 Annex-X ...................................................................................................................... 117 Annex-Y ...................................................................................................................... 120 Annex-Z ...................................................................................................................... 122 Annex-AA.................................................................................................................... 127 Annex-AB .................................................................................................................... 128 ABBREVIATIONS & ACRONYMS ADLG Assistant Director Local Government AIR Audit Inspection Report B&R Building & Road BHU Basic Health Unit CA Conveyance Allowance C&W Communication and Works CCB Citizen Community Board CD Community Development 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 Headquarters DSI District Sanitary Inspector EDO Executive District Officer EXT Extension FD Finance Department F&P Finance and Planning HR Human Resource HRA House Rent Allowance HSRA Health Sector Reform Allowance IPSAS International Public Sector Auditing Standards MB Measurement Book MS Medical Superintendent MRS Market Rate Schedule i NAM New Accounting Model PAC Public Accounts Committee PAO Principal Accounting Officer P&D Planning and Development PFR Punjab Financial Rules PDG & TMA Punjab District Governments & Tehsil Municipal Administration PHE Public Health Engineering PHSRP Punjab Health Sector Reforms Programme PLGO Punjab Local Government Ordinance PPRA Punjab Procurement Regulatory Authority PST Punjab Sales Tax PW Public Works RDA Regional Directorate of Audit RHC Rural Health Center Rs Rupees SAP System Application Product S&GAD Services and General Administration Department SMC School Management Council SMO Senior Medical Officer TA Travelling Allowance THQ Tehsil Headquarters TMA Tehsil Municipal Administration TS Technical Sanction TST Triple Surface Treatment W&S Works and Services 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, Mandi Baha-Ud-Din for the financial year 2015- 16. The Directorate General of Audit District Governments Punjab (North), Lahore conducted audit during 2016-17 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 audit findings carrying value of Rs 1 million or more. 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 without written responses of the departments because DAC meeting was not convened by the PAO despite written as well as verval 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
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