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Audit Report on the Accounts of Municipal Corporations of Punjab (South)

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Audit Report on the Accounts of Municipal Corporations of Punjab (South) AUDIT REPORT ON THE ACCOUNTS OF MUNICIPAL CORPORATIONS OF PUNJAB (SOUTH) AUDIT YEAR 2019-20 AUDITOR GENERAL OF PAKISTAN TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS ............................................................................ i PREFACE......................................................................................................................... iii EXECUTIVE SUMMARY ............................................................................................... iv Introduction .................................................................................................................... viii 1. Municipal Corporation Bahawalpur ................................................................... 1 CHAPTER 1.1 .................................................................................................................... 1 CHAPTER 1.2 .................................................................................................................... 5 MC, Bahawalpur ................................................................................................................. 5 1.2.1 Introduction ........................................................................................................ 5 1.2.2 Comments on Budget & Accounts (Variance Analysis) .................................... 6 1.2.3 Classified Summary of Audit Observations ....................................................... 8 1.2.4 Comments on the Status of Compliance with PAC Directives .......................... 8 Audit Paras ......................................................................................................................... 9 1.3 Non-Production of Record ................................................................................. 9 1.4 Procedural Irregularities ................................................................................... 10 1.5 Value for money and service delivery issues ................................................... 13 1.6 Others ............................................................................................................... 23 2. Municipal Corporation Dera Ghazi Khan ........................................................ 27 CHAPTER 2.1 .................................................................................................................. 27 CHAPTER 2.2 .................................................................................................................. 31 MC, Dera Ghazi Khan ...................................................................................................... 31 2.2.1 Introduction ...................................................................................................... 31 2.2.2 Comments on Budget & Accounts (Variance Analysis) .................................. 33 2.2.3 Classified Summary of Audit Observations ..................................................... 35 2.2.4 Comments on the Status of Compliance with PAC Directives ........................ 35 Audit Paras ....................................................................................................................... 36 2.3 Non-Production of Record ............................................................................... 36 2.4 Procedural Irregularities ................................................................................... 37 2.5 Others ............................................................................................................... 56 3. Municipal Corporation Faisalabad ................................................................... 59 CHAPTER 3.1 .................................................................................................................. 59 CHAPTER 3.2 .................................................................................................................. 64 Municipal Corporation, Faisalabad .................................................................................. 64 3.2.1 Introduction ...................................................................................................... 64 3.2.2 Comments on Budget & Accounts (Variance Analysis) .................................. 64 3.2.3 Classified Summary of Audit Observations ..................................................... 66 3.2.4 Comments on the Status of Compliance with PAC Directives ........................ 67 Audit Paras ....................................................................................................................... 68 3.3 Procedural Irregularities ................................................................................... 68 3.4 Value for Money and Service Delivery Issues ................................................. 79 3.5 Others ............................................................................................................... 99 4. Municipal Corporation Multan ....................................................................... 106 CHAPTER 4.1 ................................................................................................................ 106 CHAPTER 4.2 ................................................................................................................ 111 Municipal Corporation, Multan ...................................................................................... 111 4.2.1 Introduction .................................................................................................... 111 4.2.2 Comments on Budget & Accounts (Variance Analysis) ................................ 113 4.2.3 Classified Summary of Audit Observations ................................................... 116 4.2.4 Brief Comments on the Status of Compliance with PAC Directives ............. 116 Audit Paras ..................................................................................................................... 117 4.3 Non-Production of Record ............................................................................. 117 4.4 Fraud and Misappropriations ......................................................................... 123 4.5 Procedural Irregularities ................................................................................. 127 4.6 Value for money and Service Delivery Issues ............................................... 140 4.7 Others ............................................................................................................. 168 5. Municipal Corporation Sahiwal ..................................................................... 179 CHAPTER 5.1 ................................................................................................................ 179 CHAPTER 5.2 ................................................................................................................ 184 Municipal Corporation, Sahiwal..................................................................................... 184 5.2.1 Introduction .................................................................................................... 184 5.2.2 Comments on Budget & Accounts (Variance Analysis) ................................ 186 5.2.3 Classified Summary of Audit Observations ................................................... 189 5.2.4 Brief Comments on the Status of Compliance with PAC Directives ............ 189 Audit Paras ..................................................................................................................... 190 5.3 Non-Production of Record ............................................................................. 190 5.4 Fraud and Misappropriations ......................................................................... 192 5.5 Procedural Irregularities ................................................................................. 194 5.6 Value for money and Service Delivery Issues ............................................... 205 5.7 Others ............................................................................................................. 209 ANNEXURES ................................................................................................................ 218 ABBREVIATIONS AND ACRONYMS ADP Annual Development Programme B&R Building and Road BOP Bank of Punjab C&W Communication and Works Cft Cubic Feet CO Chief Officer CO (MC) Chief Officer (Municipal Corporation) D&C Demand and Collection DAC Departmental Accounts Committee DDO Drawing and Disbursing Officer DFR Departmental Financial Rules DO District Officer GST General Sales Tax HQ Headquarters HR Human Resource INTOSAI International Organization of Supreme Audit Institutions JMF Job Mix Formula LED Light Emitting Diodes LG&CD Local Government & Community Development L-Section Longitude Section M&R Maintenance and Repair MB Measurement Book MCF Municipal Corporation Faisalabad MCM Municipal Corporation Multan MFDAC Memorandum for Departmental Accounts Committee MO Municipal Officer MO (I&S) Municipal Officer (Infrastructure & Services) MO (I) Municipal Officer (Infrastructure) MO (P) Municipal Officer (Planning) i MRS Market Rate System NSL Natural Surface Level OGRA Oil and Gas Regulatory Authority PAC Public Accounts Committee PAO Principal Accounting Officer PCC Plain Cement Concrete PC-I Planning Commission Performa-I PFR Punjab Financial Rules PLG Punjab Local Government PLGA Punjab Local Government Act PLGB Punjab Local Government Board PLGC Punjab Local Government Commission PMDFC Punjab Municipal Development Fund Company POL Petroleum, Oil and Lubricants PPRA
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