Audit Report on the Accounts of District Government Chakwal

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AUDIT REPORT ON THE ACCOUNTS OF DISTRICT GOVERNMENT CHAKWAL

AUDIT YEAR 2016-17

AUDITOR GENERAL OF PAKISTAN TABLE OF CONTENTS ABBREVIATIONS & ACRONYMS ...... I PREFACE ...... III EXECUTIVE SUMMARY ...... IV SUMMARY TABLE & CHARTS...... VIII TABLE 1: AUDIT WORK STATISTICS ...... VIII TABLE 2: AUDIT OBSERVATIONS...... VIII TABLE3: OUTCOME STATISTICS ...... VIII TABLE4: IRREGULARITIES POINTED OUT ...... IX TABLE 5: COST BENEFIT ...... X CHAPTER 1 ...... 1 1.1 DISTRICT GOVERNMENT CHAKWAL ...... 1 1.1.1 INTRODUCTION OF DEPARTMENTS ...... 1 1.2 AUDIT PARAS ...... 6 1.2.1 NON-PRODUCTION OF RECORD ...... 7 1.2.2 IRREGULARITY & NON-COMPLIANCE OF RULES ...... 9 1.2.3 PERFORMANCE ...... 63 1.2.4 WEAK INTERNAL CONTROLS ...... 73 ANNEXES ...... 78 ANNEX-A ...... 79 ANNEX-B ...... 87 ANNEX-C ...... 88 ANNEX-D ...... 90 ANNEX-E ...... 91 ANNEX-F ...... 92 ANNEX-G ...... 93 ANNEX-H ...... 98 ANNEX-I ...... 99 ANNEX-J ...... 100 ANNEX-K ...... 101 ANNEX-L ...... 103 ANNEX-M ...... 104 ANNEX-O ...... 106 ANNEX-P ...... 108 ANNEX-Q ...... 109 ANNEX-S ...... 114 ANNEX-T ...... 115 ANNEX-U ...... 116 ANNEX-V ...... 117

ABBREVIATIONS & ACRONYMS

B&R Buildings & Roads BHU Basic Health Unit CNIC Computerized Nation Identity Card C&W Communication and Works DAC Departmental Accounts Committee DAO District Accounts Office DCO District Coordination officer DDC District Development Committee DDO Drawing and Disbursing Officer DEO (EE-M) District Education Officer (Elementary Education-Male) DEO (EE-W) District Education Officer (Elementary Education-Women) DO District Officer DHQ District Headquarters DTL Drug Testing Lab EDO Executive District Officer F&P Finance and Planning GGES Govt. Girls Elementary School GGHS Govt. Girls High School GGPS Govt. Girls Primary School HRA House Rent Allowance HSRA Health Sector Reform Allowance LG & CD Local Government and Community Development MS Medical Superintendent NAM New Accounting Model NFBE Non Format Basic Education OFWM On Farm Water Management PAC Public Accounts Committee PAO Principal Accounting Officer PCC Portland Cement Concrete PFR Punjab Financial Rules i

PDG Punjab District Government PLGO Punjab Local Government Ordinance POL Petroleum Oil and Lubricants PPPRA Punjab Public Procurement Regulatory Authority PRSP Punjab Rural Support Programe PWD Public Works Departments RHC Rural Health Center RMR Regular Maintenance & Repair RTA Regional Transport Authority SDA Special Drawing Account SMO Senior Medical Officer THQ Tehsil Headquarters TS Technical Sanction WMO Woman Medical Officer W&S Works and Services

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 City 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, Chakwal 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 Rs1.00 million or more. Relatively less significant issues are listed in the Annexure-A of the Audit Report. The Audit observations listed in the Annexure-A shall be pursued with the Principal Accounting Officer at the DAC level. In all cases where the Principal accounting Officer (PAO) does not initiate appropriate action, the audit observations will be brought to the notice of PAC through next year audit report. The audit results indicate the need for adherence to the regularity frame work besides instituting and strengthening internal controls to prevent recurrence of such violations and irregularities. The observations included in this Report have been finalized in the light of discussion of DDO. Despite repeated efforts, executive authorities could not arrange meeting of Departmental Accounting Committee (DAC). 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 (Rana Assad Amin) Dated: Auditor General of Pakistan iii

EXECUTIVE SUMMARY The Directorate General Audit (DGA), 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, Rawalpindi has audit jurisdiction of District Governments, Tehsil / Town Municipal Administration and Union Administrations of one City District Government i.e. Rawalpindi and three District Governments i.e. Jhelum, Chakwal and Attock. The Regional Directorate has a human resource of 15 officers and staff, total 1292 man-days and the annual budget of Rs 18.063 million for the financial year 2016-17. It has mandate to conduct Financial Attest, Regularity Audit and Compliance with Authority & Performance Audit of entire expenditure including programmes / projects & receipts. Accordingly, Regional .Directorate of Audit Rawalpindi carried out audit of the accounts of various offices of the District Government, Chakwal for the financial year 2015-16. District Government, Chakwal conducts its operations under Punjab Local Government Ordinance, 2001. It comprises one Principal Accounting Officer (PAO) i.e. the District Coordination Officer (DCO) covering six groups of offices i.e. Finance & Planning, Works & Services, Education, Health, Community Development, and Agriculture. The financial provisions of the Punjab Local Government Ordinance, 2001 require the establishment of District Government fund comprising Local Government Fund and Public Account for which Annual Budget Statement is authorized by the Nazim / Council / Administrator in the form of budgetary grants.

Audit of District Government Chakwal was carried out with the view to ascertain that the expenditure was incurred with proper authorization, in conformity with laws / rules / regulations, economical procurement of assets and hiring of services etc. Audit of receipts / revenues was also conducted to verify whether the assessment, collection, reconciliation and allocation of revenues were made in accordance with laws and rules without any leakage of revenue in the Government Account / Local Fund. a. Scope of Audit. Total expenditure of the District Government Chakwal covering 272 formations for the financial year 2015-16 was Rs 5,924. 902 million. Out of this, DG District Audit (N) Punjab audited Rs 1,683.071 million of expenditure of which in terms of percentage 28.40% was total expenditure DG District Audit (N) Punjab planned and executed audit of 25 formations i.e. 100% achievement against the planned audit activities. Total receipts of the District Government Chakwal for the financial year 2015-16 was Rs 55.554 million. DG District Audit (N) Punjab audited receipts of Rs 6.10 million which was 10.98% of total receipts. b. Recoveries at the instance of audit Recoveries of Rs 42.793 million were pointed out, which were not in the notice of the executive before audit. c. Audit Methodology The audit year 2015-16 witnessed intensive application of Desk Audit techniques in this directorate. This was facilitated by access to live SAP/R3 data, internet facility, and availability of permanent files. Desk review helped auditors in understanding the systems, procedures, and environment, and the audited entity before starting field activity. This

v greatly facilitated in the identification of high risk areas for substantive testing in the field. d. Audit Impact A number of improvements as suggested by audit, in maintenance of record and procedures have been initiated by the concerned departments, however audit impact in shape of change in rules, has been less materialized due to non-convening of regular PAC meetings. Had PAC meetings been regularly convened, audit impact would have been manifold. e. Comments on Internal Control and Internal Audit Department Internal control mechanism of District Government Chakwal was not found satisfactory during audit. Many instances of weak Internal Controls have been highlighted during the course of audit which includes some serious lapses like withdrawal of public funds against the entitlement of employees. Negligence on the part of District authorities may be captioned as one of important reasons for weak Internal Controls. Section 115-A (1) of PLGO, 2001, empowers District Administration to appoint an Internal Auditor but the same was not appointed in District Administration Chakwal. f. The Key Audit Findings i. Non-production of Record of Rs 161.838 million noted in one case1. ii. Non-compliance of Rules of Rs 1171.834 million noted in forty nine cases2. iii. Performance related issues of Rs 171.683 million noted in ten case3 iv. Internal Control Weaknesses of Rs 12.508 million noted in five cases4 vi g. Recommendations i. Head of the District Government needs to conduct physical stock taking of fixed and current assets. ii. Departments need to comply with the Public Procurement Rules for rational purchases of goods and services. iii. Inquiries need to be held to fix responsibility for misappropriation, wasteful expenditure and unauthorized payment. iv. The PAO needs to make efforts for expediting the realization of various Government receipts. v. The PAO and his team need to ensure proper execution and implementation of the monitoring system. vi. The PAO needs to take appropriate action for non-production of record. vii. The PAO needs to rationalize its budget with respect to utilization. ______1 Para 1.2.1.1 2Para 1.2.2.1 to 1.2.2.49 3 Para 1.2.3.1 to 1.2.3.10 4 Para 1.2.4.1 to 1.2.4.5

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SUMMARY TABLE & CHARTS Table 1: Audit Work Statistics (Rs. in million) Sr. No. Description No. Budget 1 Total Entities (PAOs) under Audit Jurisdiction 1 6643.543 2 Total formations under Audit Jurisdiction 272 6643.543 3 Total Entities (PAOs) Audited 1 1683.071 4 Total formations Audited 25 1683.071 5 Audit & Inspection Reports 25 1683.071 6 Special Audit Reports Nil Nil 7 Performance Audit Reports Nil Nil 8 Other Reports Nil Nil

Table 2: Audit observations (Rs. in million) Sr. Amount Placed under Description No. Audit Observation 1 Asset Management 0 Financial 2 1,343.51 management 3 Internal controls 12.508 4 Others 161.838 Total 1,517.856 Table3: Outcome Statistics (Rs. in million) Total Sr. Physica Civil Total Description Receipts Others current No. l Assets Works Last year year Outlays 1 0 620.28 90.00 972.79 1683.071 1,877.53 Audited Amount Placed under 2 0 632.08 6.10 879.67 1,517.856 580.49 Audit Observation/ viii

Total Sr. Physica Civil Total Description Receipts Others current No. l Assets Works Last year year Irregularities of Audit Recoveries Pointed Out at 3 0 29.30 5.63 7.86 42.793 54.625 the instance of Audit Recoveries Accepted/ 4 Established at 0 29.30 5.63 7.86 42.793 4.692 the instance of Audit Recoveries Realized at the 5 0 0 0 0 0 0.842 instance of Audit *The amount in serial No 1 column of “total 2015-16” is the sum of Expenditure and Receipts, whereas the total expenditure audited for the year 2015-16 was Rs1683.071million Table4: Irregularities Pointed Out (Rs in million) Amount Placed Sr. Description under Audit No. Observation Violation of Rules and regulations and 1 1,129.04 principle of propriety and probity. Reported cases of fraud, embezzlement, 2 theft and misappropriations and misuse 0 of public funds. Quantification of weaknesses of internal 3 12.508 control systems Recoveries, overpayments or 5 42.790 unauthorized payments of public money. 6 Non-production of record to Audit. 161.838 7 Others, including cases of accidents, 171.683 ix

Amount Placed Sr. Description under Audit No. Observation negligence etc. Total 1517.859 Table 5: Cost Benefit (Rs. in million) Sr No Description Amount 1 Out lays Audited (Items1of Table 3) 1,683.071 2 Expenditure on Audit 1.602 3 Recoveries realized at the instance of Audit 0 4 Cost Benefit Ratio 0 ______

CHAPTER 1 1.1 DISTRICT GOVERNMENT CHAKWAL 1.1.1 Introduction of Departments Activities of City District Government are managed through offices of District Coordination Officer and Executive District Officers under Punjab Local Government Ordinance, 2001. Each group of District Offices consists of an Executive District Officer (EDO). The EDO by means of a standing order distributes the work among the officers, branches and / or sections of each district office. Following is the list of Departments which manage the activities of District Government. 1. District Coordination Officer (DCO) 2. Executive District Officer (Agriculture) 3. Executive District Officer (Community Development) 4. Executive District Officer (Education) 5. Executive District Officer (Finance & Planning) 6. Executive District Officer (Health) 7. Executive District Officer (Works & Services) Under Section 29(k) of the PLGO 2001, Executive District Officer (EDO) acts as Departmental Accounting Officer for his respective group of offices. 1.1.2 Comments on Budget and Accounts (Variance Analysis) Total budget of District Government Chakwal was Rs 6643.541million including salary component of Rs 5314.834 million, Non Salary component of Rs 730.789 million and development component of Rs 597.918 million. Expenditure against salary component was Rs 4,769.745 million, Non salary component was Rs 673.45 million and

1 development component was Rs 481.707 million. Overall savings were Rs 718.62 million which was 10.81% of total budget. (Rs in million) Excess (+) % of Excess / 2015-16 Budget Expenditure / Saving (-) Saving Salary 5,314.834 4,769.745 545.08 10.25% Non Salary 730.789 673.45 57.33 7.84% Development 597.918 481.707 116.21 19.43% Total 6,643.541 5,924.902 718.62 As per Appropriation Account 2015-16 of District Government Chakwal the original budget was Rs 5, 5711.475 million, supplementary grant was Rs 1,766.256 million whereas Rs 834.188 million were surrendered/ withdrawn and the final budget was Rs 6643.543 million. Against the final budget total expenditure incurred by District Government Chakwal during 2015-16 was Rs 5,924.902 million, as detailed in Annex- B. The Salary, Non Salary and Development Expenditure comprised 81%, 11% and 8% respectively of the total Expenditure

Budget Expenditure Savings Financial Year (Rs in million) (Rs in million) (Rs in million) 2014-15 5,999.89 5,178.96 -820.93 2015-16 6643.543 5,924.90 -718.64

The overall saving of Rs 718.64 million was 10.81% of the final budget. The comparative analysis of the budget and expenditure of current and previous

The comparative analysis of the budget and expenditure of current and previous financial year is depicted as under: There was 10.72% and 12.58% increase in Budget Allocated and Expenditure incurred respectively, while there was overall savings of Rs 718.64 million during 2015-16. 1.1.3 Brief Comments on the Status of Compliance on MFDAC Audit Paras of Audit Report 2015-16 Audit paras reported in MFDAC of last year audit report which have not been attended in accordance with the directives of DAC have been reported in Part-II of Annexure-A.

4 1.1.4 Brief Comments on the status of compliance with /PAC Directives The audit reports pertaining to following years were submitted to Governor of the Punjab: Status of Previous Audit Reports No. S. Audit Year of Status of PAC/ZAC Meetings No. Paras 1 2002-03 29 Not convened 2 2003-04 29 Not convened 3 2004-05 33 Not convened 4 *Special Audit Report 119 Not convened 5 2009-10 39 Not convened 6 2010-11 49 Not convened 7 2011-12 31 Not convened 8 2012-13 24 Not convened 9 2013-14 16 Not convened 10 2014-15 12 Not convened 11 2015-16 17 Not convened

* It is special audit report for the period 01/07/2005 to 31/03/2008 and also the title of the audit report reflects financial year instead of the audit year which was 2008-09

1.2 AUDIT PARAS

1.2.1 Non-Production of Record

7 1.2.1.1 Non-production of Record – Rs 161.838 million According to Section 14(1)(b) of Auditor General’s (Functions, Powers and Terms and Conditions of Service), Ordinance, 2001, “The Auditor-General shall have authority to require that any accounts, books, papers and other documents which deal with, or form, the basis of or otherwise relevant to the transactions to which his duties in respect of audit extend, shall be sent to such place as he may direct for his inspection”. Further, section 115(5) & (6) of PLGO, 2001 stipulates, inter alia, that auditee organization shall provide record for audit inspection and comply with requests for information in as complete form as possible and with all reasonable expedition. Various formations of District Government Chakwal did not produce auditable record amounting to Rs 161.838 million. In the absence of record, authenticity, validity, accuracy and genuineness could not be verified as detailed at Annex-C. Audit holds that due to defective financial discipline and non- compliance of rules, relevant record was not produced to audit by the auditee in violation of constitutional provisions. The matter was reported to the DCO / PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility for non-production besides ensuring submission of record under intimation to audit.

1.2.2 Irregularity & Non-Compliance of Rules

9 1.2.2.1 Irregular Payment on account of Development Schemes -Rs 498.409 million As per notification of Government of Punjab C&W Department No.SOH-II(C&W)/2-15/2007 dated 26.03.2007 “before finalization of work, Sub Divisional Officer to Chief Engineer would certify to the extent as mentioned against each that the work has been executed as per laid down specifications” SDO (Sub Divisional Officer) 100% Executive Engineer 75% Superintending Engineer 50% Chief Engineer 25% DO (Buildings) made payments against different schemes but their works were not certified by the Superintending Engineer and Chief Engineer in violation of rule above. This resulted in irregular payments for Rs 498.409 million on development schemes as detailed below. Period DDO Code Development (Rs.) 2015-16 CH 6660 (Development) 62,787,166 2015-16 CH 6695 (Development) 406,941,749 2015-16 CH6615 (Development) 28,680,339 Total 498,409,254 Audit is of the view that due to financial mismanagement and negligence, payments were made for different schemes without authorization of Superintending Engineer and Chief Engineer. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault besides regularization under intimation to Audit. PDP#08 10 1.2.2.2 Non-submission of Annual Accounts of Management Operation To District Government Chakwal By PRSP – Rs 100.865 million As per agreement Clause D(3) “the PRSP shall render Accounts of Management Operation to the District Government Chakwal within a period of 3 months after the conclusion of each financial year”. Further, as per clause D(4) of the agreement, “the accounts of the management operations shall be audited by the third party and a copy thereof shall be provided by the PRSP to the District Government Chakwal, as agreed upon by District Government Chakwal and PRSP. Further, according to Section 14(1)(b) of Auditor General’s (Functions, Powers and Terms and Conditions of Service), Ordinance, 2001, “The Auditor-General shall have authority to require that any accounts, books, papers and other documents which deal with, or form, the basis of or otherwise relevant to the transactions to which his duties in respect of audit extend, shall be sent to such place as he may direct for his inspection” Scrutiny of record of DO (Health) Chakwal revealed that an amount of Rs 100.864 million had been transferred by District Government, Chakwal to PRSP and PRSP authorities were required to submit the financial accounts of Management operations for the financial year 2015-16 to District Government Chakwal, but it was noticed that the audited accounts were neither submitted to the District Government Chakwal nor produced to Audit. In the absence of record, authenticity, validity and accuracy of the expenditure incurred, could not be verified. Audit is of the view that due to internal control failures and financial mismanagement, PRSP authorities did not submit the financial accounts of management operations to District Government Chakwal. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. 11 Audit recommends fixing responsibility of the person(s) at fault, for non-submission of annual accounts under intimation to Audit. PDP#01 1.2.2.3 Irregular & Unauthorized Expenditure on Bulk Purchase of Medicines without Tender Board – Rs 62.097 million Rule 12(1) of Punjab Public Procurement Rules, 2014 states that Procurements over one hundred thousand rupees and up to the limit of two million rupees shall be advertised on the PPRA’s website in the manner and format specified by regulation by the PPRA from time to time. These procurement opportunities may also be advertised in print media, if deemed necessary by the procuring agency. Further, according to Government of the Punjab, LG&CD Department notification No.SO.D.G(Dev)(LG)9-7/2009 dated 23.12.2010, District Tender Board comprising the following is hereby constituted in all the Districts of Punjab for issuing, receiving and opening of tender “EDO of client department as Chairman, Representative of Commissioner, DCO, EDO(F&P), EDO(W&S) members and DO of the executing agency will be the Secretary of the board. All works shall also be awarded within the District through this board. Various offices and Health Centers working under the control of District Government Chakwal made bulk purchases of medicines amounting to Rs 62.096 million from the firms whom rate contract were awarded by the Health Department Government of Punjab, as detailed at Annex-D. Audit noticed the following irregularities which made expenditure irregular. 1. Neither any advertisement for procurements by Procuring agency was made nor any record regarding Tender proceedings was produced.

12 2. Record of earnest money @ 2% amounting to Rs 40,311 was not produced against the supply orders valuing Rs 2.016 million 3. Record of stamp duty @ 0.25% amounting to Rs 5,039 was not produced against the supply orders issued. Non production of record showed that stamp duty was not deducted. 4. Performance Security @ 5% amounting to Rs 100,779 was neither obtained from the suppliers nor record was produced to Audit as directed by Health Department Government of the Punjab vide Notification No.SO(P-1)1- 1/2015-16 dated 16.10.2015, at the 2nd Paragraph. Non production of record revealed that performance security was not obtained from firms/suppliers. 5. Procurement as per rate contract of Health Department Government of the Punjab was unauthorized, unlawful and in violation of PPRA Rules 2014 where in rate contract did not fall under any specified methods of procurement. 6. Tendering process was not carried out by the “District Tender Board” in violation of above mention letter of LG & CD Department. Audit is of the view that due to financial mismanagement, the irregular expenditure of Rs 62.097 million was incurred on bulk purchase of medicine. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization besides fixing responsibility of the person(s) at fault under intimation to Audit.

13 1.2.2.4 Uu-justified Expenditure from District Government Budget - Rs 44.788 million According to District Government Rules of Business, 2001 there was no role of Secretary RTA in District Government. According to Rule4(2) of the Punjab Local Government (Property) Rules, 2003, the manager shall be responsible to the Local Government for any loss, destruction or deterioration of the property, if such a loss, destruction or deterioration occurs as a result of his fault or negligence in discharge of his responsibility. During audit of Secretary RTA Chakwal it was observed that expenditure of Rs 44.788 million was incurred on account of contingency and pay and allowance from the budget of District Government Account- IV without performing any duty for the District Governments. Detail is given below. Financial Year Particulars Amount (Rs) 2002-08 Contingency 1,752,652 2002-08 Pay& Allowances 38,916,476 2013-14 Contingency & pay & allowances 1,823,892 2014-15 Contingency & pay & allowances 1,422,361 2015-16 Contingency & pay & allowances 872,923 Total 44,788,304

Audit is of the view that due to weak managerial controls and wrong decisions of Government, irregular expenditure incurred from District Government, Budget. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommend regularization and action against the concerned under intimation to Audit. PDP#05

14 1.2.2.5 Doubtful Execution of Works – Rs 41.813 million According to clause at serial No.4 of work order of different schemes, bitumen will be arranged himself by contractor from National Refinery Limited, Karachi and documentary proof to the engineer in- charge before release of payment against the work done. DO (Roads) Chakwal did not provide the invoices of National Refinery Karachi or its authorized dealers against the bitumen purchased amounting to Rs 41.813 million for the following schemes in violation of the government instructions as detailed below. S Amount Sr Details of Scheme Qty (Rs.) No Widening0 & improvement tamman to Mial tehsil 631,229 30,930,250 1 talagang Cakwal Renovation/Maintenance0 of road length 4.0 KM 157,440 7,443,763 2 Mangwal to Latifwal and Park District Chakwal Rehabilitation0 of road from banjra to sadiqabad length 78,720 1,336,665 3 5.50 Construction0 of road from Noorpur wansal Road to 9,005 817,405 4 Dhok Hastal length 1.00 KM Rehab0 of road from chowkandi to Pira Fathial length 3 1,285,200 5 1.31KM 7,800 Total 41,813,283 Audit is of the view that due to negligence and mismanagement, documentary proof for purchase of bitumen was not provided. The matter was reported to DCO/PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault besides production of proper receipts record for detail verification. PDP#01 15 1.2.2.6 Non-surrendering of Savings – Rs 40.938 million According to Rule 71(3) of PDG & TMA (Budget) Rules, 2003 annually, one statement of excesses and surrenders shall be prepared and submitted, by the Heads of Offices to the Finance and Budget Officer. Further, Rule 6(iv) of PDG & TMA (Budget) Rules, 2003 stipulates the DDO shall ensure proper monitoring of his budget. According to rule 17.16 and 17.20 of PFR Volume-I, the anticipated saving must be surrendered by 31st March of the financial year so that the amounts so surrendered might be utilized for some other purpose. Various DDOs of the District Government Chakwal did not surrender the anticipated savings during the financial year in violation of the rule above resulting in blockage of government resources as detailed in Annex-E. Audit is of the view that due to weak financial discipline irregularity occurred, which resulted in non surrendering of savings. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization of funds besides fixing responsibility of person(s) at fault under intimation to Audit. 1.2.2.7 Un-justified Expenditure from District Government Budget - Rs 33.923 million According to District Government Rules of Business, 2001 there was no role of Excise & Taxation department in District Government. Further according to rule 4(2) of the Punjab Local Government (Property) Rules, 2003, the manager shall be responsible to the Local Government for any loss, destruction or deterioration of the property, if such a loss, destruction or deterioration occurs as a result of his default or negligence in discharge of his responsibility.

16 During audit of Excise & Taxation Officer Chakwal, it was observed that the expenditure of Rs 33.926 million was incurred on account of contingency and pay and allowance from District Government Budget without performing any duties for the District Governments. Audit is of the view that due to weak managerial controls and wrong decisions of Govt, irregular expenditure was incurred from District Government Budget. The matter was reported to DCO/PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit requires that action be taken against the concerned under intimation to Audit. PDP#07 1.2.2.8 Difference in Expenditure Statement and FI Data - Rs 29.663 million As per requirement of Rule 2.2 of PFR Volume-I and Rules 13.4 and 13.6 of the Punjab Budget Manual (sixth edition), schedule of payments / deposits should be obtained by each Drawing and Disbursing Officer from the District Accounts Office/ Treasury concerned for comparison of the entries in the cash book. According to Rule 67(2) of the PDG & TMA (Budget) Rules 2003 “the DDO shall reconcile the expenditure with Accounts Office by 10th of every following month for the previous month”. Scrutiny of record of DHQ Hospital, Chakwal, and study of FI data of expenditure incurred revealed that there was a difference of Rs 29.663 million in amount drawn (FI data of Accounts office) and recorded by DDO/ shown on expenditure statement verified from DAO Chakwal. Difference of amount drawn and shown resulted in doubtful drawn and misappropriation of Rs 29.663 million as detailed at Annex-F.

17 Audit is of the view that due to non-compliance of rules and financial mismanagement, expenditure difference was found in figure booked by DAO and expenditure statement maintained by DDO. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit desires reconciliation of expenditure with DAO to remove the difference under intimation to Audit. PDP#04 1.2.2.9 Irregular Payment on account of Establishment of IT Labs – Rs 17.86 million As per no 12 of terms and conditions specified in the supply order that the payment will be made after completion of the delivery and satisfactory inspection report. During audit of EDO (Education), Chakwal it was observed that a scheme for establishment of 20 IT Labs in High and High secondary was approved and executed by EDO (Education). Scrutiny of record revealed that amount of Rs 17.86 million was paid on completion of 12 IT Labs out of 20 IT Labs during 2015-16 @ Rs 1,488,337 per Lab. The completion reports from end user of said labs (Heads of the schools) were not provided till the date of audit. Non-availability of completion report showed that the labs were not completed and the payment made without completion of Labs is irregular and un-authorized. Audit is of the view that due to weak financial management and negligence, payment was released before completion of IT Labs. Audit recommends fixing responsibility against person(s) at fault under intimation to Audit. PDP#02

18 1.2.2.10Misclassified Expenditure – Rs 16.139 million According to NAM, the budgetary allocation be made according to the chart of accounts/classification approved by the Auditor General of Pakistan. As per Article 30 of Audit Code, all financial transactions are required to be properly recorded and allocated to proper heads of account, Furthermore according to Rule 12 of General Financial Rules, the expenditure may be incurred for the purpose for which the budget allocation is made. During audit it was observed that EDO (Literacy) had incurred expenditure of Rs 1.613 million on payment of remuneration/salary of teachers of NFBES & ALC projects of under head A03970-others for the year 2015-16 instead of proper head A03919. This resulted in irregular expenditure of Rs 16,138,791 as detailed below. s Name of Project Amount (Rs.) Sr.# 1 Remuneration Of Teachers NFBES 13,578,300 2 Remuneration Of Teachers, ALC, 2,560,491 TOTAL 16,138,791 Audit is of the view that due to financial mismanagement, expenditure was incurred under wrong head of account. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization of misclassified expenditure besides fixing responsibility of the person(s) at fault under intimation to Audit. Audit desires that the matter shall be probed and responsibility shall be fixed under intimation to Audit. PDP#06

19 1.2.2.11 Non-recovery of Penalty Due to Delay in Completion of Work – Rs 14.412 million According to Clause 39 read with Clause 37 of contract agreement “if a contractor fails to complete the work within stipulated period, he is liable to pay compensation @ 1% to 10% of amount of the agreement or any smaller amount as decided by the Engineer in-charge to be worked out per day but not exceeding maximum of 10% of the construction of contract. The contractor shall have to apply within one month for extension in time limit before the expiry of scheduled time of completion”. District Officer (Buildings) Chakwal awarded different works to various contractors. The works of Rs 144.118 million could not be completed within stipulated time. The contractors neither applied for time extension to the Engineer-in-charge nor any extension was granted resulting in doubtful progress of work. Consequently, neither penalty was imposed nor contractors were declared blacklist on account of delay in completion. This resulted in non-imposition of penalty of Rs 14.412 million due to non-completion of the schemes within the stipulated period as detailed in Annex-G. Audit is of the view that due to poor performance, works could not be completed with the due time. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends for recovery of penalty from concerned contractors due to delay in completion of works under intimation to Audit. PDP#01 1.2.2.12 Doubtful Purchase of Lab Machinery – Rs 13.953 million According to Rule 2.10(a)(5) of PFR Volume-I, no money can be drawn from the government treasury unless it is required for immediate disbursement. Further, according to Rule 32(b) of Punjab Local 20 Government (Accounts) Rule 2001, during incurring or authorizing expenditure from the Local Fund, the principle of financial property shall be observed, that is to say, “The expenditure shall not be prima facie more than the occasion demands” During audit it was noticed that EDO (Health) Chakwal had drawn amount of Rs 13.953 million from Development Budget on 25th June, 2016 for purchase of Medical Lab Equipment. It was found that the amount had been received and credited into bank account No.CD0153950005 Bank of Punjab, Chakwal on 26 June, 2016. Neither the equipments were received nor amount was paid to concerned firms by EDO office till the date of audit i.e 18.10.2016. This resulted in unauthorized drawl of funds amounting to Rs 13.953 million as detailed below. S Sr. Name of Firm Item Name Quantity Rate Total (Rs) No 1 Electric Autoclave 01 4,149,540 4,149,540 Celitron (Hungry) 2 OT Table (famed 01 1,336,221 1,336,221 M/s Sigma Poland) International3 Dental Unit with Lahore Chair (Diplomat, 01 1,838,406 1,838,406 Slovakia 4 Dental X-Ray 01 749,811 749,811 (ArdetItlay) Extra for Currency Fluctuation 403,697 5 X-Ray Machine 500 M/s Medequips MA (50KW) Floor (Pvt) LTD, 01 5,215,000 5,215,000 Mounted (Toshiba Lahore Japan) Extra for Currency Fluctuation 260,750 Total 13,953,425 Audit is of the view that due to internal control failures and financial mismanagement, amount had been drawn from treasury in advance and remained in bank account unauthorizedly. 21 The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization of expenditure besides fixing responsibility of the person(s) at fault under intimation to audit. PDP#01 1.2.2.13Non-recovery of Penalty Due to Delay in Completion of Work – Rs 12.453 million According to Clause 39 read with Clause 37 of contract agreement “if a contractor fails to complete the work within stipulated period, he is liable to pay compensation @ 1% to 10% of amount of the agreement or any smaller amount as decided by the Engineer in-charge to be worked out per day but not exceeding maximum of 10% of the construction of contract. The contractor shall have to apply within one month for extension in time limit before the expiry of scheduled time of completion”. District Officer (Roads) Chakwal awarded different works to various contractors. The works of Rs 124.519 million could not be completed within stipulated time. The contractors neither applied for time extension to the Engineer-in-charge nor any extension was granted resulting in doubtful progress of work. Consequently, neither penalty was imposed nor contractors were declared blacklist on account of delay in completion. This resulted in non-imposition of penalty of Rs 12.453 million due to non-completion of the schemes within the stipulated period as detailed at Annex-H. Audit is of the view that due to poor performance, works could not be completed with the due time. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report.

22 Audit recommends for recovery of penalty from concerned contractors due to delay in completion of works under intimation to Audit. PDP-03 1.2.2.14 Irregular Utilization of Closing Balance of Development Budget of Previous Year – Rs 12.193 million According to section 6.18(a) of The Punjab Budget Manual (Seventh Edition) 2008, as the closing balance of the Provincial Government, at the end of a financial year, will be its credit, in the books of the State Bank as composite cash balance, including the balances of the District Governments in A/C Number IV as on the last day of that year, i.e. 30th June no Inter-Government adjustments, relating to that financial year, can be carried out, after the 15th of July of the next financial year, on which date the books of the State Bank are closed for the month of June. Every endeavor must, therefore, be made to settle, as far as possible, all book transactions relating to a financial year before the close of that year, and reduce the number of the outstanding to the minimum, as the transactions that remain un-adjusted will be taken against the balance of the Government in the accounts of the subsequent financial year. Further, as per rule 13.8 of Punjab Budget Manual, anticipated savings should be surrendered in 2nd Excess & Surrender Statements so that the same could be utilized for any other purpose where required. During scrutiny of record of DO (OFWM) Chakwal it was observed that expenditure of Rs 17.427 million was incurred on development schemes/projects during finance year 2015-16 against development budget of Rs 20.787 million. This budget included closing balance of Rs 12.194 million of previous Financial Year 2014-15 in violation of above rules. This resulted in irregular expenditure of Rs 12.193 million against un-authorized budget as detailed below. (Amount in Rs.)

23 Carried over Fund Total Funds Total Expenditure from Last released for available for Expenditure against closing year 2014-15 2015-16 2015-16 2015-16 budget of 2014-15

12,193,535 8,954,000 20,787,535 17,427,413 12,193,535 Audit is of the view that due to poor financial management, saving of previous year were utilized unauthorizedly. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization of expenditure from competent authority under intimation to Audit. PDP#08 1.2.2.15 Irregular Purchase of Medicine without DTL Report – Rs 11.548 million According to Rule 23(1)(h)(i) of Drug Act 1976, “No person shall himself or any other person on his behalf shall sell any drug without having a warranty in the prescribed form bearing the name and batch number of the drug issued”. According to the Drug Act 1976 and the Drug Rules, 1988, made there-under, the payments for medicines shall be made after obtaining Drug Testing Laboratory (DTL) reports. Various offices under control of Health Department of District Government Chakwal did not provide valid DTL report against the medicine purchased. This resulted in irregular purchase of Rs 11.548 million. Detail is given at Annex-I. Audit is of the view that due to internal control failures and negligence, payment was drawn and medicines were accepted without DTL Reports.

24 The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization besides fixing responsibility of person(s) at fault under intimation to Audit. 1.2.2.16 Unauthorized drawl without Sanction of Finance Department on Payment of Pending Liabilities – Rs 11.039 million According to Rule 17.17(A) read with Rule 17.18 of PFR Volume- I, every disbursing officer shall maintain a register of liabilities in P.F.R form 27 in which he should enter all these items of expenditure for which payment is to be made by or through another officer, budget allotment or sanction of a higher authority is to be obtained or payment would be required partly or wholly during the next financial year or years. Scrutiny of record of MS DHQ Hospital Chakwal for the financial year 2015-16, revealed that pending bills for purchase of medicines pertaining to Financial Years 2012-13 to 2014-15 amounting to Rs 11.039 million had been claimed and paid from the budget of financial year 2015- 16 without approval of the competent authority and without seeking of separate budget. This resulted in irregular payment of pending liabilities of Rs 11.309 million as detailed at Annex-J. Audit is of the view that due to non-compliance of rules, previous year’s liabilities payments were cleared from budget of 2015-16, without seeking the additional budget from Finance Department and without sanction of competent authority. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends for regularization of expenditure besides fixing of responsibility under intimation to Audit. 25 PDP#03 1.2.2.17 Irregular Expenditure on PCC without Test – Rs 9.427 million According to terms and conditions of Contract Agreement, where necessary the contractor will perform test on his own cost. During audit of DO (Roads) Chakwal for the year 2015-16, it was observed that the following work of Rs 93.84 million was allotted to contactor and item of PCC valuing Rs 9.43 million was executed but the cubical test reports were not provided to Audit. In absence of the said reports, the quality of PCC work could not be ascertained. r Amount S. Qty Name of Scheme (Rs) No. Widening & improvement Tamman to Mial Tehsil 56,7141 cft 9,427,127 talagang Cakwal Audit is the view that, PPC cubic test had not been performed due to non-compliance of rules. In response to above no reply was submitted. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization under intimation to Audit. PDP-11 1.2.2.18 Un-Justified Approval of Development Schemes by DDC without Site Clearance – Rs 8.472 million According to Clause 7 of the Tender Guide lines (PWD) bidder will examine the site visit on his own expense and responsibility and will give his decision. Further according to Section 2.85 of B&R Code “No work should be commenced on land which has not been duly made over by the responsible civil officers”

26 During audit of DO(Buildings) Chakwal it was found that DDC had approved following development schemes valuing Rs 8.472 million during financial year 2015-16. The site for the construction of schemes was not got cleared by the client department which was the duty of responsible authority to see whether land was available/clear or not. Due to non site clearance work could not be started in time. The approval of schemes from DDC and tendering process as well as release of funds was gone wasteful and un-justified as detailed below. S Name of Scheme Amount (Rs) Sr. No 1 B/W in GGPS Gorah Tehsi C.S.Shah 0.311 2 B/W in GGES Lakhwal Ckl 0.940 3 Up Gradation of GGES Khuyian TG 7.221 Total 8.472 Audit is of the view due to lack of managerial control, schemes were approved without site clearance. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends responsibility be fixed for approval of schemes without site clearance under intimation to Audit. PDP#02 1.2.2.19 Non-supply of Computers – Rs 8.360 million As per EDO (Education) Chakwal supply order No.2111/Dev dated 23.05.2016 & 2115/Dev dated 07.04.2016 “the liquidated damages will be charged if the store will be not supplied within stipulated time”. Audit of accounts of EDO (Education) Chakwal revealed that a supply order for supply of 160 computers for IT Labs was place to M/S Choudhary General Traders @ Rs 52,250/computer. During audit it was noticed that the firm failed to deliver the complete consignment due to

27 which 8 IT Labs could not be functional. Neither any penalty was imposed on the said firm nor the case for black listing was initiated. Audit is of the view that due to mismanagement and negligence, neither liquidated damages was charged not legal action was initiated against the defaulting firm. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault besides black listing of firm under intimation to audit. PDP#03 1.2.2.20 Doubtful Issuance of Learning Kits – Rs 8.137 million According to Rule 15.4(a) of PFR Volume-I, “all materials received should be examined, counted, measured and weighed, as the case may be, when delivery is taken, and they should be kept in charge of a responsible government servant. The receiving government servant should also be required to give a certificate that he has actually received the materials and recorded them in his appropriate stock registers”. Moreover, Rule 15.17(b) of PFR Volume-I states that all discrepancies noticed must be properly investigated and brought to the account immediately, so that the stores account may represent the true state of store. Further according to Rule 15.5 of PFR Volume-I, when materials are issued from stock for departmental use the government servant in charge of the stores should see that the person authorized has issued an indent Literacy wing EDO(Education) Chakwal had incurred expenditure amounting to Rs8,137,381 on purchase of the learning kits for the centers established under “Punjab Non Formal Education Project”, during 2015- 16 as detailed below.

S Bill No. S. Name of Firm Particulars Amount (Rs) & Date No. Friends 361, Sign boards, Arm chair, Enterprises 02/05/16 mat & Attendance 1 4,624,650 Register, Stock Register and lead pencils Qutab Shahi 1292, Black Boards, Chalks, 2 1,145,581 Traders 03/05/16 charts Chaudhry General3 Order Mat 12 x 14 & slates 3 1,747,950 Supplier Zain Enterprises 99 dated Slates 4 619,200 22/4/16 Total 8,137,381 Scrutiny of record revealed that stock register in which the goods/ material were recorded and issued /disbursed, was not provided to Audit. In the absence of stock register purchase and disbursement of learning kits was held doubtful. Audit is of the view that due to weak managerial control, learning kits were issued without entering in stock register. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends to provide the proper record of receiving and issuance of stock items to verify the expenditure. PDP#08 1.2.2.21 Irregular Payment of Pay and Allowances From Head A01270-Others – Rs 7.013 million According to NAM, the budgetary allocation be made according to the chart of accounts/classification approved by the Auditor General of 29 Pakistan. As per Article 30 of Audit Code, all financial transactions are required to be properly recorded and allocated to proper heads of account, Furthermore according to Rule 12 of General Financial Rules, the expenditure may be incurred for the purpose for which the budget allocation is made. District Government Chakwal had paid Rs 7.013 million on account of Pay and Allowance of the officials/officers on account of different allowances under head AO1270-Others in violation of Government instructions. Negligence resulted in irregular payment of different allowances of Rs 1.894 million as detailed below. Sr. No. Name of DDO PDP No. Amount (Rs) 1 SMO RHC Jhatla 01 2,168,120 2 SMO RHC Balkasar 02 1,395,000 3 SMO RHC Buchal Kalan 09 1,555,777 4 MS City Hospital, Talagang 06 1,893,801 7,012,698 Audit is of the view that due to financial mismanagement, expenditure was incurred under wrong head of account. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization of misclassified expenditure besides fixing responsibility of the person(s) at fault under intimation to Audit. 1.2.2.22 Unauthorized Payment due to Exceeding the Prescribed Limit of Annual Repair and Maintenance – Rs 7.0 million According to Finance Department No.FD (D-I)-21/78 P-II dated 17-3-2007, “the Finance Department agrees to approve the financial yard stick for annual maintenance and repair of roads @ Rs 63,000 / per km / 10 feet width. Special repair, fixed charges and repair of structure (bridges

30 and culverts) @ 9%, 2.5% and 1% per annum respectively would be in addition of the yard stick.” Scrutiny of record of District Officer (Roads) Chakwal revealed that amount of Rs 7.35 million was incurred on the maintenance and repair works mentioned below Yard Expenditure Length Excess Name of scheme TS Cost Stick (million) KM (million) (Rs) Spl repair of Dhurnal 3.000 2.873 .59 70,000 2.803 city road Spl. Repair of road . from sarkalan to 2.624 2.089 70,000 2.019 0 mattan khurd Spl. repair of road from bhon to thoa 2.933 0.891 2.00 70,000 0.821 hummayun Restoration of breech on Dhumman Arrar 0.766 0.739 7,000 0.669 Road Special repair Mohra 0.756 0.758 380 rft 7,000 0.688 Alo to Miswal Total 10.079 7.35 224,000 7.000 As per yard stick maximum expenditure of Rs 70,000 could be incurred for annual maintenance and repair of road. But DO (Roads) incurred RS 7.00 million above the yard stick in violation of the instructions issued by the Finance Department. This resulted in unauthorized expenditure of Rs 7.0 million. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization besides disciplinary action for violation of the government instructions under intimation to Audit. PDP-02 31 1.2.2.23 Depriving the Poor Community Due to Delay in Purchase of Medicines – Rs 5.610 million According to Rules 8 of PPRA Rule 2014 “A procuring agency shall, within one month from the commencement of a financial year, devise annual planning for all proposed procurements with the object of realistically determining the requirements of the procuring agency, within its available resources, delivery time or completion date and benefits that are likely to accrue to the procuring agency in future. During audit it was noticed that DO (Livestock) Chakwal had incurred expenditure of Rs 5.60 million on account of purchase of medicines during financial year 2015-16. It was observed that rate contract for purchase of medicines for the Financial Year 2015-16 was finalized in January & May, 2016. Supply orders were placed in February & May, 2016 and delivery was taken during February & June, 2016. DTL Reports were received in June, 2016 at the end of financial year 2015-16. Non provision of medicines in same financial year resulted in depriving the general public from benefit and incurrence of irregular expenditure of Rs 5.610 million as detailed below. S Cost Center & Medicines Tender Supply Received Sr. Object Head (Rs) Date Order Date No. Ch1- 6605(AO 3927) 1,360,000 16.01.2016 08.02.2016 22.02.2016 Ch2- 6739(AO 3927) 4,249,620 05.05.2016 16.05.2016 24.05.2016 Total 5,609,620 Audit is of the view that due to weak managerial controls, medicines were purchased in last months of the financial year. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report.

32 Audit recommends responsibility be fixed for late purchase of medicines and distribution at the end of financial year under intimation to Audit. PDP-01 1.2.2.24 Irregular Purchase of Medicines without Bifurcation of Budget – Rs 5.00 million According to the Government of Punjab, Finance Department Notification No.FD(FR)II/89 dated 01.11.2001, DDOs are required to distribute the medicine budget in the proportion of (i)10% reserved for natural calamities (ii) 15% for day to day LP medicine (iii) 75% bulk purchase Contrary to above, it was noticed that the MS THQ C. S Shah, District Chakwal had utilized budget amounting to Rs 5.00 million on account of purchase of medicine without bifurcation according to the ratio mentioned in above criteria. This resulted in irregular expenditure on purchase of medicines. Audit is of the view that due to internal control failures and financial mismanagement, medicines budget was utilization without bifurcation as required. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization besides fixing responsibilities of the persons at fault under intimation to Audit. PDP#06

33 1.2.2.25 Irregular payment of Compensation – Rs 5.100 million Non-payment – Rs 500,000 According to the Rule2.32 (a) of PFR Volume-I, “it is essential that the records of payments and transactions in general must be clear, explicit and self contained” DCO Chakwal had drawn Rs 5.600 million on account of compensation to the affectees of natural calamities in the District Chakwal, out of which amount of Rs 5.10 million had been paid. Following irregularities were observed. 1. Death Certificate of the deceased persons was not available. 2. Copies of CNIC of the beneficiaries/payees were not on record. 3. Amount of Rs 500,000 of Mst. Kausar Yasmin widow of Sub. M. Nawaz (deceased) was neither delivered nor deposited back in the government treasury. This resulted in doubtful payments of Rs 5.10 million and un authorized retention of government funds Rs 500,000 in violation of government rules. Audit is of the view that due to poor managerial controls, payment was held doubtful. In response to above no reply was submitted by the management. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit requires that action be taken against the concerned under intimation to Audit. PDP#10

34 1.2.2.26 Doubtful Execution of Work – Rs 5.093 million According to Para 1.58 of B&R Code, Divisional Officer is responsible to organize and supervise the execution of works and to see that they are suitably and economically carried out with materials of good quality. Further according to Rule 2.10 (a) (3) of PFR Volume-I, same vigilance should be exercised in respect of expenditure incurred from government revenues as a person of ordinary prudence would exercise in respect of the expenditure of his own money. DO (Roads) Chakwal had paid Rs 5.093 for execution of developmental scheme “construction of carpeted road from Durbatta village to Murshad abad length 2.33 KM Tehsil Lawa”. Scrutiny of record revealed that the work was started on 15.6.2016 and measurement was taken on 21.06.2016. It means that all the work was done just in five days. The items executed i.e lying of earth, lying of base/sub base within 5 days clearly showed that the item was not properly executed and not properly compacted. Without proper compaction, the quality of work could not be assured and would be considered as sub-standard/below specification work. Audit is of the view that due to internal control failures and financial mismanagement, execution of work held doubtful. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends investigation besides fixing responsibility of the person(s) at fault under intimation to Audit. PDP-07 1.2.2.27 Abnormal Flow of Expenditure During in Last Month of the Financial Year – Rs 4.718 million Para No.2(b) of Finance Department, Government of the Punjab Notification No.FD(FR) 11-2/89 (P) dated 11.10.2000, stipulates that 35 purchases should be reasonably rationalized to be made into 3-4 installments spread over the whole year. Further according to Finance Department Letter No.IT(FD)3-95 dated 25.03.1997, “the expenditure should be uniform as far as possible and not post pond towards the end of financial year as a matter of convenience. As per rule 8.9 (b) of PFR- Volume-I, if in any month the monthly proportion of the appropriation in contingent expenditure had been exceeded, a report of special circumstances should be sent to countersigning authority for approval. During audit of General Nursing School, Chakwal, it was noticed that the Principal incurred expenditure of Rs 9.943 million during the last quarter of Financial Year 2015-16 out of which 48% of the expenditure amounting to Rs 4.718 million was incurred only during month of June, 2016 in violation of above rule. This resulted in abnormal flow of expenditure in last month as detailed below. (Amount in Rs.) April May, June, Total Expenditure of Period 2016 2016 2016 Last Quarter (2015-16) Expenditure 3,295,121 1,930,021 4,718,403 9,943,545 % Expenditure of Last 33% 19% 48% 100% Quarter Abnormal Flow during the month of June, 16 (48% Exp.) 4,718,403 Audit is of the view that due to financial mismanagement, 48% of total expenditure was incurred during month of June, 2016. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault besides regularization under intimation to audit. PDP#07

36 1.2.2.28 Unjustified Completion of Schemes – Rs 4.608 million According to Para 4.5(5) of B&R code “Every officer making or ordering payment on behalf of Government should satisfy himself that work has been actually done in accordance with the bill submitted for payment”. Further according to Rule 2.33 of PFR Volume-I, every Government servant should realize fully and clearly that he will be held personally responsible for any loss sustained by Government through fraud or negligence on his part. During audit of accounts of the DO (Buildings) Chakwal, it was observed that four (4) Schemes costing Rs 4.608 million were shown completed after incurrence of Rs 2.224 million only during 2015-16 as detailed below. Cost Expenditure Status of Name of Schemes Estimate Incurred Scheme (Rs) (Rs) Provision of water Supply in GPS Dhok 0.569 0.280 Completed Syedan Provision of water Supply in GPS Dhok 0.700 0 Completed Dand Cost; of Building Post office Shah Pur 1.113 0.636 Completed Syedan Cost; of Building Post office sir Kalan 1.113 0.637 Completed Cost; of Building Post office Ara 1.113 0.671 Completed Total 4.608 2.224 The completion of schemes less than agreement cost resulted in unjustified/doubtful completion of schemes. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends investigation besides the disciplinary action against the person(s) at fault under intimation to Audit. PDP#05 37 1.2.2.29 Purchase of Medicines Against Contract Agreement without Approval of Administrator – Rs 4.639 million According to Rule 29 of PLG (Accounts), Rules, 2001, “every DDO will be personally responsible for any erroneous payment or claim of the bill”. Further, subject to the provision of PLGO, 2001, and any other rules framed there under all contract on behalf of a local government shall be made by the Nazim concerned or any other officer authorized by the Nazim in this behalf according to section 191 of the ordinance read with Rule 4 of Punjab Local Government (Contracts) Rules, 2003. Following formations of District Chakwal had entered into contract for purchase of medicines but authorization by the Administrator was not on record. This resulted in unauthorized contract involving expenditure of Rs 4.639 million on purchase of medicines as complete detailed is at Annex-K. S Name of DDO PDP Amount (Rs) Sr. No. 1 SMO RHC Lawa 03 1,144,224 2 SMO RHC Tamman 02 814,982 3 MS THQ Chua Saidan Shah 08 2,679,479 4,638,685 Audit is of the view that due to financial mismanagement, expenditure was incurred under wrong head of account. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization of misclassified expenditure besides fixing responsibility of the person(s) at fault under intimation to Audit.

38 1.2.2.30 Expenditure in Excess of Approved Budget Allocation – Rs 80.550 million According to Rule 66(5) of (Budget) Rules 2003, Drawing and Disbursing Officer shall not authorize any payment in excess of the funds placed at his disposal. According to Rule 120 of PLG (Budget) Rules 2001, no expenditure shall be incurred without the necessary appropriation or in excess of sanctioned appropriation. Para 128 of the above rules also describes that “any expenditure incurred without sufficient appropriation would be considered as a financial irregularity”. Various DDOs working under the control of District Government Chakwal incurred expenditure amounting to Rs 80.55 million in excess of budget allocation during approved budget of the financial year, which resulted in un-authorized expenditure as detailed at Annex-L. Audit is of the view that due to internal control failures and financial mismanagement, expenditure of Rs 80.550 million was incurred in excess of budget allocation. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization besides fixing responsibility of the person(s) at fault under intimation to Audit. 1.2.2.31 Un-authorized Execution/ Expenditure on Construction of Provincial / Federal Buildings – Rs 3.979 million According to clarification of Finance Department Government of the Punjab during November, 2007, “Provincial buildings are provincial assets and their Construction and M & R function shall be undertaken by the Provincial Works Division”. District Officer (Buildings) Chakwal incurred expenditure amounting to Rs 3.979 million on account of Construction of the Post office Building in District Chakwal during 2015-16 which was the 39 property of the Federal Government and construction, repair and renovation of Provincial/ Federal buildings was responsibility of Provincial/ Federal Buildings Departments. This resulted in un-authorized expenditure on construction of Post Office Buildings as detailed below. Amount S.No. Name of Schemes (Rs. in million) 1 Construction of Post Office Building Sarkalan 0.636 2 Construction of Post Office Building Shah Pur 2.167 Syedan 3 Construction of Post Office Building Arra 0.096 4 Construction of Post Office Building Kotha Abdal 1.080 Total 3.979 Audit is of the view that due to non-compliance of rules, instructions of Finance Department were not followed and schemes for construction of post offices were executed. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization from the Competent authority besides disciplinary action under intimation to Audit. PDP#10 1.2.2.32 Irregular and Doubtful Payment of Stipend – Rs 3.80 million According to Section 14(1)(b) of Auditor General’s (Functions, Powers and Terms and Conditions of Service), Ordinance, 2001, “The Auditor-General shall have authority to require that any accounts, books, papers and other documents which deal with, or form, the basis of or otherwise relevant to the transactions to which his duties in respect of audit extend, shall be sent to such place as he may direct for his inspection”. Further, section 115(5) & (6) of PLGO, 2001 stipulates, inter alia, that auditee organization shall provide record for audit inspection and

40 comply with requests for information in as complete form as possible and with all reasonable expedition. During audit of General Nursing School, Chakwal, it was observed that the Principal incurred expenditure of Rs 3,799,730 on account of stipend for the period of April, 2016 to June, 2016 but the attendance register of said period was not produced to audit for verification. In the absence of attendance register, the expenditure could not be verified. This resulted in irregular expenditure of Rs 3.800 million as detailed below. (Amount in Rupees)

S Cash Book Date Period of Stipend Amount of Bill S.No.

1 30.06.2016 April,16 to June, 16 3,799,730

Audit is of the view that due to internal control failures and negligence, attendance register was not produced and expenditure on account of stipend of Rs 3,799,730 was held doubtful. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault besides production and verification of record under intimation to Audit. PDP#05 1.2.2.33 Un-authorized Shifting of Head Quarter – Rs 3.788 million As per Government of the Punjab Finance Department No.FD.SR 4-8-1/76 (Prov.) dated 16.03.1988, shifting of head quarter of a government servant for the period exceeding three months is a financial irregularity. 41 Various officials of different offices of District Government Chakwal was working in offices other than their original posting for a period in excess of three months without the approval of Finance Department resulting in un authorized expenditure of Rs 3.788 million as detailed at Annex-M. Audit is of the view that due to violation of government rules irregular payments were made. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault besides regularization under intimation to Audit. 1.2.2.34 Abnormal Flow of Expenditure during Month of June 2016 – Rs 3.548 million Para No.2(b) of Finance Department, Government of the Punjab Notification No.FD(FR) 11-2/89 (P) dated 11.10.2000, stipulates that purchases should be reasonably rationalized to be made into 3-4 installments spread over the whole year. Further according to Finance Department Letter No.IT(FD)3-95 dated 25.03.1997, “the expenditure should be uniform as far as possible and not postpone towards the end of financial year as a matter of convenience. As per rule 8.9 (b) of PFR- Volume-I, if in any month the monthly proportion of the appropriation in contingent expenditure had been exceeded, a report of special circumstances should be sent to countersigning authority for approval. Scrutiny of expenditure statements of DO (Livestock) Chakwal and paid vouchers, revealed that average expenditure of Rs 51,650 was incurred upto the month of May, 2016 under Cost Centre CH-6640. However vouched account showed that sum of Rs 3.548 million was incurred on account of machinery, equipment and furniture only during the month of June 2016. This resulted in abnormal flow of expenditure Rs 3.548 million during last month of the financial year. 42 Audit is of the view that due to financial mismanagement, abnormal flow of expenditure of Rs 3.548 million was found during last month of the financial year 2015-16. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization besides fixing responsibility of the person(s) at fault under intimation to Audit. PDP#08 1.2.2.35 Doubtful Expenditure on Use of Local Steel – Rs 3.042 million According to MRS “if invoice and manufacturer certificate is not provided by the contractor and not annexed with paid voucher, the rate of M.S bars shall be reduced by Rs 4,500 per Ton” During audit of DO (Roads) Chakwal for the period 2015-16, it was noticed that the item “P/L MS Deformed Bars” was executed and paid under different schemes. The expenditure was held unauthorized because the neither the invoices of manufacturer were provided nor the rate of steel was reduced @ Rs 4.5/kg (Rs 4,500 per Ton). In the absence of proper invoices of manufacturer, the quality of steel could not be verified and expenditure incurred Rs 3,042,320 was held doubtful as detailed below:

Qty Amount S.No. Scheme Details Rate (%KG) (Rs)

Widening & improvement tamman 1 18,310 11,573 84,738 to Mial tehsil talagang Cakwal

Renovation/Maintenance of road 2 length 4.0 KM Mangwal to Latifwal 732.21 11,037 2,020,874 and Park District Chakwal

43 Qty Amount S.No. Scheme Details Rate (%KG) (Rs)

Reh of road from Pir Phulai jand 3 awan Road at station llength 2,043.13 11,338 230,690 2.00KM

4 Constn of Dhok wasoo 5,517.50 11,233 619,829

Special repair from bhon chowk to 5 562.27 10,897 61,276 thoa hummayun the Kallar kahar

Special repair of road linking mohra 6 227 10,947 24,913 Alu miswal

Total 27,392.11 3,042,320

Audit is of the view that, over payment was made due to non- compliance of rules. In response to above no reply was submitted. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization along with recovery under intimation to Audit. PDP-09 1.2.2.36 Un-authorized Hiring of Consultancy Services Without Tender and Payment – Rs 3.038 million According to Rule 12 (1) & (2) of Punjab Procurement Rules, 2014, procurements over one hundred thousand rupees and up to the limit of two million rupees shall be advertised on the PPRA’s website in the manner and format specified by regulation by the PPRA from time to time. In case of procurements valuing above rupees 2.00 million, advertisement in two national dailies, one English and other Urdu, will 44 appear in addition to advertisement on PPRA website. Further, section 39 to 47 of chapter-VII “Procurement of Consultancy Services” of PPRA rules 2014 states about the process of hiring of consultancy Services in detail”. DO (Buildings) Chakwal awarded a contract of Consultancy Services to “M/S G3 Engineering Consultant Pvt. Ltd”, for resident supervision for construction of dangerous schools buildings in District Chakwal and made payment of Rs 3.037 million from development grant during 2015-16. Services of consultancy firms were not hired through calling tenders and adopting process as laid down in Chapter VII of PPRA Rules 2014 and prequalification of the firm as well as of the engineer. Neither such documents were available in the office nor produced to audit for verification. This resulted in un authorized payment of Rs 3,037 million as detailed below.

Vr No & Amount Schemes Contractor Quantity Date (Rs.)

1/ 2.6.16 Re construction of Class G3 Engineering Rooms/ Dangerous Consultants Pvt 6 jobs 1,422,500 Buildings Ltd

112/ 22.6.16 5 Schemes of Schools …do….. 5 jobs 1,615,000

Total Total 3,037,500

Audit is of the view that due to non-compliance of rules, huge expenditure was incurred in violation of codal provisions. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report.

45 Audit recommends regularization of expenditure from Competent authority and fixing responsibility of person(s) at fault under intimation to Audit. PDP#11 1.2.2.37 Irregular Advance Drawl of Funds from SDA and Non- maintenance of Vouched Account – Rs 3.0 million According to section 17.3.4.2 of Accounting Policies and Procedures Manual “Cheques shall only be drawn by the authorized cheque signatory where it is required for immediate disbursement or reimbursement of expenditures previously incurred”. Further according to para 2.1(b) Revised Procedure of SDA circulated by Government of the Punjab Finance Department Letter vide No.SO(TT)6-1/2007 dated 11th September, 2007 “The drawing authorities will ensure that no money is drawn from these accounts unless it is required for immediate disbursement. Moneys will not be drawn for keeping into a bank account or in chest. A certificate to this effect will be recorded on the Schedule of Payment. Moreover, cross cheques should be issued in the name of supplier/valid payee. Furthermore, according to the Rule 2.32 (a) of PFR Volume-I “It is essential that the records of payments and transactions in general must be clear, explicit and self contained. Further according to rule 2.20 ibid “As a general rule every payment must be supported by a voucher setting forth full and clear particulars of the claim. During audit of DCO Chakwal it was noticed that, according to Government of Punjab, Agriculture Department Letter No.SO(E)/1-1/2016 dated 26.05.2016, a grant of Rs 4.160 million was released to District Chakwal for setup of Agricultural Fair Shops under subsidy scheme of provision of fruits and vegetables to different market committee with the direction that the DCOs will maintain the vouched account and refund the balance amount to the Finance Department accordingly. Out of this grant Rs3.0 million was released to the following offices. (Rs. in million) 46 Cheque Name of Office Dated Amount No.

Market Committee Chakwal 397236 02.06.2016 1.20

Market Committee, Talagang 397237 02.06.2016 0.80

Market Committee, Chua Saidan Shah/ Kallar 1.00 397238 02.06.2016 Kahar

Total 3.00

Contrary to above rules, neither vouched account had been maintained nor the balance amount was refunded to the Finance Department in violation of above notification. Moreover, advance drawl and enbloc bank transfer was made in violation of Standard Operating Procedures of Special Drawing Accounts (SDA) which required that amount should be drawn to clear immediate liability and after pre-audit by the DDO himself. In addition, cheques were issued in the name of Market committee instead of suppliers/valid payee. This resulted in non maintenance of record, un authorized advance drawl and un authorized retention of government money in violation of government rules. Audit is of the view that due to weak managerial controls, neither vouched account was maintained nor balance amount was refunded. In response to above no reply was submitted by the management. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit requires that action be taken against the concerned under intimation to Audit. PDP#09 47 1.2.2.38 Abnormal Flow of Expenditure During Last Month of the Financial Year – Rs 2.813 million Para No.2(b) of Finance Department, Government of the Punjab Notification No.FD(FR) 11-2/89 (P) dated 11.10.2000, stipulates that purchases should be reasonably rationalized to be made into 3-4 installments spread over the whole year. Further according to Finance Department Letter No.IT(FD)3-95 dated 25.03.1997, “the expenditure should be uniform as far as possible and not postponed towards the end of financial year as a matter of convenience. As per rule 8.9 (b) of PFR- Volume-I, if in any month the monthly proportion of the appropriation in contingent expenditure had been exceeded, a report of special circumstances should be sent to countersigning authority for approval. Scrutiny of expenditure statements and paid vouchers of DHQ Hospital Chakwal revealed that average of expenditure incurred upto May, 2016 was Rs 313,141 under the following head during 2015-16. Vouched account showed that amount of Rs 2,813,411 was incurred only in the month of June 2016. This showed abnormal flow of expenditure incurred during the month of June, 2016 in violation of the above rule as detailed below. (Amount in Rs)

Sr. No Head of account Exp upto May, 16 Average per During month June 2016

1 AO 3970 Other 174,135 15,830 1,700,648

2 AO 3807 POL 3,270,427 297,311 1,112,763

Total 3,444,562 313,141 2,813,411

Audit is of the view that due to financial mismanagement, 45% of total expenditure was incurred during month of June, 2016.

48 The matter was discussed with DDO but no reply was furnished to audit The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault besides regularization under intimation to audit. PDP#06 1.2.2.39 Expenditure Incurred on M&R of Office Buildings Beyond Financial Competency – Rs 2.451 million As per rule 1(b)(iv) and 1(c)(iv) of Chapter “Communication and Works Department” of Punjab Delegation of Financial Powers Rules, 2009, “Executive Engineer can technically sanction and issue acceptance of tender for Maintenance & Repair of Residential buildings upto Rs 30,000 in each case. In case of Office Buildings & None residential buildings Rs 300,000 during a year”. District Officer (Buildings) Chakwal, executed the following schemes of M&R of Government Offices buildings and incurred expenditure amounting to Rs 2.451 million without obtaining the sanction from higher competent authority in violation of the above mentioned rule. This resulted in irregular expenditure of Rs 2.451 million as detailed below. (Rs in million) Sr. No Name of Scheme Amount 1 M&R To DCO Office 0.965 2 M&R to Block A 0.540 3 M& R to Zila council 0.946 Total 2.451

49 Audit is of the view that due to non-compliance of rules expenditure was incurred beyond the delegated financial power resulting in irregular expenditure. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization of expenditure from Competent authority. PDP#09 1.2.2.40 Irregular Release of Lapsed Securities – Rs 2.021 million According to paragraph NO.399 (III) of CPWA Code, balances unclaimed for more than three complete account years in the public works Deposits Account should be credited into Government account as lapsed Deposits. Further, according to article 170 of Account Code Volume-III and para 346(a)(i) of Audit Manual, “unclaimed balances for more than 3 years should be credited into Government Revenue” During audit of DO(Buildings) Chakwal for the year 2015-16, it was revealed that contrary to above, DAO Chakwal had released the lapsed securities to contractors amounting to Rs 2,021,206 which was unclaimed from more than three years. This resulted in irregular release of lapsed securities as detailed below. Date of Date of Name of Amount Name of work Deposit of payment of Contractor (Rs) Securities Securities Construction of Community Muhammad Ali 12/2007 10/2015 1,135,754 Center Chakwal. Const of 06 class room and Iftikhar Islam 02/2008 09/2015 293,816 Hall GGHS No.1 Chakwal Provision of missing facilities Tahir Naveed 04/2010 12/2015 241,722 GBHS Budhial Chakwal Up-Gradation GGPS to High Tahir Naveed 04/2010 12/2015 349,914 level Dorrey Chakwal. Total 2,021,206 50 Audit is of the view that due to internal control failures and financial mismanagement, unclaimed/lapsed securities were released to contracts. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault besides regularization under intimation to Audit. PDP#04 1.2.2.41 Un-Justified shifting of District Government Property to Provincial Government – Rs 2.00 million According to Property Rules 2001, Transfer of Property by the Government, Subject to such conditions as may be prescribed, the Government may, on its own accord or on a request by a District Government, transfer the management of ‘nazul land’, ‘auqaf land’ or any other Government or public property to it for administration as a trustee. Further, according to rule 4 (2) of the Punjab Local Government (Property) Rules, 2003, the manager shall be responsible to the Local Government for any loss, destruction or deterioration of the property, if such a loss, destruction or deterioration occurs as a result of his default or negligence in discharge of his responsibility. During audit of DO (OFWM) Chakwal it was noticed that the following property/assets including Tractors with lazer machines of OFWM District Government Chakwal had been shifted to Departments of Provincial Government un-authorizdly by DG Agriculture (WM) Punjab Lahore vide letter No.2198-2215/DGA/OFWM/ACS/8-F-v dated 11.02.2013. This resulted in un-justified shifting of assets/machinery valuing Rs 2.00 million as detailed below

Sr. Description Model Cost (Rs) Property shifted to No 1 Tractor No-CH- 2002 500,000 DO (Agri .Ext) Khusab 5931 2 Tractor No-CH- 2002 500,000 do 5932 3 Tractor No-CH- 2002 500,000 Barani Agr Research 5933 Institute Chakwal 4 Tractor No-CH- 2002 500,000 Asstt. Director Seed Corp. 5934 Piplan Mianwali Total 2,000,000 Audit is of the view that due to poor managerial control, assets of District Government had been shifted to departments of provincial Government unauthorizedly. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization besides fixing responsibility of the person(s) at fault under intimation to Audit. PDP#02 1.2.2.42 Unauthorized Expenditure without Sanction of Competent Authority – Rs 1.865 million According to Finance Department’s Notification No.FD (FR)11- 2/89 dated 1st November, 2001, Officer Category-II is competent to sanction expenditure on purchase of pharmaceuticals (Rate Contract) up to Rs150,000. During audit it was noticed MS THQ Hospital Chua Saidan Shah incurred expenditure of Rs1.865 million on purchase of medicines during financial year 2015-16. The expenditure was incurred in violation of above. The expenditure was held unauthorized because sanction of

52 competent authority was not available on record. The detail of expenditure is given below. Invoice No. Date Name of Vendor Amount (Rs) 18 26.11.2015 Star Laboratories 170,000 23 07.12.2015 Karim Industries 166,700 153 29.12.2015 Silver Surgical Complex 261,080 1004 16.01.2016 Arson Pharmaceuticals 438,000 171 18.11.2015 Cotton craft 311,500 59 04.01.2016 Unisa Pharmaceuticals 309,350 6 3.12.2015 Gulf Pharmaceuticals 208,324 1,864,954 Audi is of the view that due to weak financial management, irregular and un-authorized expenditure was incurred on purchase of medicines without sanction of competent authority. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization with the sanction of competent authority under intimation to Audit. PDP#01 1.2.2.43 Un authorized Drawl of Incentive Allowance – Rs 1.744 million According to Rule 2.31(a) of PFR Volume I, “a drawer of bill for pay, allowances, contingent and other expenses will be held responsible for any over charges, frauds and misappropriations”. Following specialists of THQ Hospital Chua Saidan Shah, Chakwal were drawing incentive allowance @ Rs 90,000 per month and a sum of Rs 1,744,194 had been paid on account of incentive allowance during the year 2015-16.

Name of the official Designation Dr Qasim Khan Surgeon Dr. Shaista Batool Gynecologist Dr. Imtiaz Begum WMO The incentive allowance drawn was unjustified due to the following reasons. 1. The authority to draw such allowance was not on record. 2. Notification of the District Government in this regard was not available. 3. No anesthetist was posted in the hospital since long, the utility of the services of the Surgeon and Gynecologist became wastage of government resources. 4. Dr. Imtiaz Begum WMO was not eligible to draw such allowance. Audit is of the view that due to financial mismanagement, unauthorized payment of Incentive allowance had been made. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization besides recovery under intimation to Audit. PDP#13 1.2.2.44 Non credit of public works deposits to Government Revenue – Rs 1.560 million According to paragraph No.399 (III) of CPWA Code, balances unclaimed for more than three complete account years in the public works Deposits Account should be credited into Government account as lapsed

54 Deposits. Further, according to article 170 of Account Code Volume-III and para-346(a)(i) of Audit Manual, “unclaimed balances for more than 3 years should be credited into Government Revenue”. Scrutiny of P.W.A. Form-34 (Part-III) appended with the monthly account of DO(Roads) for the month of June, 2016 revealed that Public Works Deposits of Rs 1,560,297 were lying for credit to Government revenue since more than three years as detailed below. Item No Month Amount (Rs) 1/190 12/11 554,681 2/219 10/2012 541,637 3/221 10/2012 226,503 4/186 10/2012 104,679 5/190 1/2013 132,797 Total 1,560,297 Non crediting of Un-claimable deposits and lapsable securities in to Government treasury after passage of long time was a sever managerial negligence resulting in blockade of Government revenue. Audit is of the view that due to internal control failures and financial mismanagement, unclaimed securities were not credited to the treasury. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault besides credit the securities to treasury under intimation to Audit. PDP#14 1.2.2.45 Non-credit of Lapsed Securities in Government Treasury - Rs 1.523 million According to paragraph No.399 (III) of CPWA Code, balances unclaimed for more than three complete account years in the public works 55 Deposits Account should be credited into Government account as lapsed Deposits. Further, according to article 170 of Account Code Volume-III and para-346(a)(i) of Audit Manual, “unclaimed balances for more than 3 years should be credited into Government Revenue”. During scrutiny of record of DO (Buildings) Chakwal for the financial year 2015-16, it was observed that securities amounting to Rs 1,522,792 of different contractors were lying unclaimed for more than three years which were not credited in the Government Treasury. This resulted in non credit of unclaimed securities in treasury as detailed at Annex-N. Audit is of the view that due to internal control, failures and financial mismanagement, unclaimed securities were not credited to the treasury. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault besides credit the securities to treasury under intimation to Audit. PDP#03 1.2.2.46 Irregular Grant of Advances to Contractor – Rs 1.50 million According to rule 2.98 of B&R Code “Advances to contractors are prohibited except in cases in which a contractor, whose contract is for finished work, requires on advance on the security of materials brought to site. Divisional Officers may, in such cases, sanction advances up to an amount not exceeding 75 percent of the value(as assessed by themselves) of such materials, provided that they are of an imperishable nature and that a formal agreement is drawn up with the contractor under which Government secures a lien on the materials and is safeguarded against losses due to the contractor postponing the execution of the work or to the shortage or misuse of the materials, and against the expense entailed for 56 their proper watch and safe custody payment of such advances should be made only on the certificate of an officer, not below the rank of Sub Divisional Officer, that the quantities of materials upon which the advances are made have actually been brought to site, that the contractor has not previously received any advance on that security and that the materials are all required by the contractor for use on items of work for which rate for finished work have been agreed upon. The officer granting such a certificate will be held personally responsible for any overpayment which may occur in consequence. Recoveries of advances so made should not be postponed until the whole of the work entrusted to the contractor is completed. They should be made from his bills or work done as the materials are used, the necessary deductions being made when ever items of work in which they are used are billed for. During audit it was noticed that DO (Roads) Chakwal had executed a developmental scheme “Construction of carpeted road from Durbatta village to Murshad abad length 2.33KM Tehsil Lawa” during financial year 2015-16. Amount of Rs 1,500,000 was paid to contractor as mobilization advance irregularly during execution of scheme. Mobilization advance could be granted before commencement of work but after execution of work and making payment of Rs 5.093 million, grant of mobilization advance was quite irregular and un authorized. Audit is of the view that due to internal control failures and financial mismanagement, advance was granted irregularly. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends investigation besides fixing responsibility of the person(s) at fault under intimation to Audit. PDP-16

57 1.2.2.47 Irregular Purchase of Furniture – Rs 1.356 million Non-verification of GST – Rs 162,402 According to Rules 10 (1) & (2) of PPRA Rules.2014 “a procuring agency shall determine specifications in a manner to allow the widest possible competition which shall not favour any single contractor nor put others at a disadvantage. The specifications shall be generic and shall not include references to brand names, model numbers, catalogue numbers or similar other classifications but if the procuring agency is satisfied that the use of, or a reference to, a brand name or a catalogue number is essential to complete an otherwise incomplete specification, such use or reference shall be qualified with the words “or equivalent”. Further, according to the (Central Board of Revenue (Revenue Wing), Islamabad letter No.4(47)STB/98 (Volume-I) dated 4th August, 2001) “the purchasing departments / organizations may forward an intimation together with copies of sales tax invoices to the concerned Collectorate of Sales Tax for the purpose of verification of deposits of tax by the suppliers” During the audit it was noticed that DO (Livestock) Chakwal incurred expenditure of Rs 1,397,137 on purchase of furniture under Cost Centre CH-6640 Grant No-CH-21C20 for Establishment of Model Hospital during Financial year 2015-16. It was noticed that expenditure was incurred without floating tender advertisement on three news papers. Further, specifications of furniture were not also specified. Department paid amount of Rs 1,356,537 Including GST amounting to Rs 162,402 (after deduction of 1/5th). Written intimation was also not forwarded to collectorate of sales tax to verify the Deposit of GST by suppliers. This resulted in irregular expenditure of Rs 1.397 million on purchase of furniture as detailed below.

58 (Amount in Rs)

GST Total Object Amount Total Gross Head of Suppliers Paid Expenditure Amount account 1/5th 4/5th Including 4/5th GST

AO9701- TEVTA Purchase Gujranwala, of Bill 1,397,137 1,194,134 40,600 62,402 1,356,536 Furniture No.1094 dated 01.06.2016

Audit is of the view that due to internal control failures and financial mismanagement, expenditure on purchase of furniture ignoring codal provisions of PPRAs and non-verification was held irregular. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization of expenditure and verification of GST deposit under intimation to Audit. PDP#05 1.2.2.48 Un-authorized Expenditure – Rs 1.183 million According to rule 42(1) & 4(3)(v) of PDG & TMA (Budget) Rules 2003, the head of office is responsible for ensuring that the funds are utilized on the activities for which money are provided. According to Rule 12(1) of Punjab Procurement Rules 2014, procurements over one hundred thousand rupees and up to the limit of two million rupees shall be advertised on the PPRA’s website in the manner and format specified by regulation by the PPRA from time to time. Furthermore, according to Rule 15.2(d) of PFR Volume I, “purchase should be made in the most

59 economical manner; when stores are purchased from the open market the system of open competitive tender should as far as possible be adopted and the purchase should be made from the lowest tenderer unless there are any special reasons to the contrary which should be recorded in writing”. DCO Chakwal had incurred expenditure of Rs 384,000 on account of transportation charges of Rangers / Army Personnel on security during Moharram “Shahdat Hazrat Imam Hussain”. Following irregularities were observed by Audit. 1. Security arrangements were responsibility of Provincial Government and expenditure from District Fund Account - IV was not justified. 2. Requisition by the Provincial Security Agencies for such arrangements was not on record. 3. Open tendering process as required under PPRA 2014was not followed. 4. Gross/Total amount was shown paid instead of the net amount after deduction of income tax Rs 345,600 resulting in loss to the government due to non deduction of income tax Rs 38,400.

Chq No. & Amount S. No. Date Item Date (Rs)

Chq# Provision of 12 pickup @ Rs 2 dt 1 2826634 dt: 4,000 per day for 8 days (4th to 384,000 17.10.15 13.11.2015 11th Moharram, 2015)

Similarly, DCO Chakwal incurred expenditure of Rs 798,720 on account of transportation charges of Chinese experts in different areas of Chakwal. Following irregularities were observed. 1. Transportation was the responsibility of Mines and Minerals Department (Provincial Department) and the expenditure from District Fund Account - IV was not justified. 60 2. Requisition by the provincial security agencies for such arrangements was not on record. 3. Open tendering process as required under PPRA Rules 2014 was not followed. 4. Copies of CNIC were not available. Sanction Chq No. & Amount Sr. No. Items No. & Date Date (Rs) Prov. of 14 vehicles for Chinese 1 experts in Distt. Chakwal 41,180 (27.1.15 & 11.3.2015) Prov. of 14 vehicles for Chinese 2 Chq# experts in Chua Saidan Shah 295,860 1 dated 2856345 (26.4.15 to 2.5.2015) 30.12.15 dated Prov. of 14 vehicles for Chinese 3 31.12.15 experts in Chua Saidan Shah 289,340 (03.5.15 to 9.5.2015) Prov. of 14 vehicles for Chinese 4 experts in Chua Saidan Shah 172,340 (10.5.15 to 13.5.2015) Total 798,720 This resulted in un-authorized expenditure of Rs 1,182,720 in violation of government rules. Audit is of the view that due weak managerial control unauthorized expenditure was incurred. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization besides action be taken against the concerned under intimation to Audit. PDP#01

61 1.2.2.49 Irregular Payment For Previous Year’s Delayed Completed Schemes – Rs 1.141 million According to Rule 17.17(A) read with Rule 17.18 of PFR Volume- I, every disbursing officer shall maintain a register of liabilities in P.F.R form 27 in which he should enter all these items of expenditure for which payment is to be made by or through another officer, budget allotment or sanction of a higher authority is to be obtained or payment would be required partly or wholly during the next financial year or years During audit of the accounts of DO (OFWM) Chakwal, it was noticed that amount of Rs 1.141 million had been paid for 39 schemes which were required to be completed during Financial year 2014-15 and required to be paid from the budget financial year 2014-15. The said schemes had been delayed completed and paid from the budget for Financial Year 2015-16 without seeking the separate funds as these schemes related to financial year 2014-15. This resulted in irregular payment of Rs 1.141 million as detailed at Annex-O. Audit is of the view that due to non-compliance of rules and financial mismanagement, payments of delayed schemes of Financial Year 2014-15 were made from budget of Financial Year 2015-16 without seeking the additional budget from finance department and without sanction of competent authority. The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends regularization besides fixing responsibility of the person(s) as fault under intimation to Audit. PDP#04

1.2.3 Performance

63 1.2.3.1 Non-reconciliation of Expenditure – Rs 85.213 million According to Rule 67(2) of the PDG & TMA (Budget) Rules 2003, “The DDO shall reconcile the expenditure with Accounts Officer by 10th of every following month for the previous month”. Following offices of District Government, Chakwal did not reconcile the expenditure amounting to Rs 85.213 million with the DAO Chakwal in violation of the rule above as detailed below. (Rs. in million) Sr. No. Name of the office Period PDP No Amount of Expenditure 1. SMO RHC Tamman 2014-16 10 24.819 2. SMO RHC Lawa 2014-16 09 24.176 3. Excise & Taxation Officer 2012-16 08 33.923 4. RTA Chakwal 2014-16 07 2.295 Total 85.213 Audit is of the view that due to weak financial control, the expenditure was not reconciled with District Account Office. The matter was reported to the DCO / PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends for immediate reconciliation with DAO under intimation to Audit. 1.2.3.2 Non-maintenance of Cash Book – Rs 53.075 million According to Rule 2.2 of PFR Volume - I, A simple Cash Book in P.F.R. Form I should be kept in every office receiving or disbursing money on behalf of Government regularly or frequently for recording all transactions of moneys received by Government Servants in their official capacity, and subsequent remittance to the treasury or to the bank, as well transactions of moneys withdrawn from the treasury or the bank by bills and their subsequent disbursement. Following offices of District Government Chakwal did not maintain the cash books during the financial years as mentioned below. It was observed that neither Employee Related Expenditure were entered in cash book nor Payroll data was provided for verification of expenditure amounting to Rs 53.075 million. Without entry in cash book and in the 64 absence of record, the expenditure cannot be reconciled with expenditure statement. This resulted in doubtful expenditure as detailed at Annex-P. Audit is of the view that due to internal control failures and financial mismanagement, expenditure was not entered in cash book. The matter was reported to the DCO / PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault besides proper maintenance of cash book under intimation to Audit. 1.2.3.3 Non-achievement of Targets of Drip and Sprinkler Schemes – Rs 10.350 million According to Director General Agriculture (Water Management) minutes of meeting dated 24.07.2015 No-34434-72 a target for drip and sprinkler irrigation schemes for District Chakwal was fixed 700 acre land. During audit of DO (OFWM) Chakwal, it was noticed that Director General Agriculture (Water management), Punjab Lahore had fixed target of 700 acre land for cultivation in District Chakwal during 2015-16. DO (OFWM) Chakwal had achieved target for cultivation 493 acre. This resulted in less achievement targets of 207 acre land of target costing Rs10.350 million. Per acre Total Target Achieved Non Achieved Cost of Non Cost (Acre) acre acre Achievement (Rs in million) 50,000 700 493 207 10.350 Audit is of the view that due to poor performance and lack of interest, targets for irrigation schemes for cultivation of 700 acre was not achieved. The matter was reported to the DCO / PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends that responsibility be fixed for non- achievement of targets for irrigation schemes. PDP#03 65 1.2.3.4 Loss to Government Due to Undue Facility of Free Lab Test - Rs 1.979 million According to rule 4(2) of PLG (Property) Rules 2003, the manager shall be responsible to the Local Government for any loss, destruction or deterioration occurs as a result of his default or negligence in discharge of his responsibility. During audit of the accounts of DHQ Hospital Chakwal for the financial year 2015-16, it was noticed that free Lab tests had been allowed to the extent of 36% of total tests performed during the year which resulted in loss to Government amounting to Rs 1.979 million as detailed below. Sr. No Nature of Test Amount (Rs) %age 1 Paid Cases 3,167,165 57 2 Free Cases 1,979,305 36 Audit is of the view that due to weak managerial control, Government sustained loss of Rs 1,979,305 due to free lab tests. The matter was reported to the DCO / PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends for regularization besides action be taken against the concerned under intimation to Audit. PDP#17 1.2.3.5 Wastage of Government Money due to Damage Inclinator Machine – Rs 5.90 million According to rule 4(2) of PLG (Property) Rules 2003, the manager shall be responsible to the Local Government for any loss, destruction or deterioration occurs as a result of his default or negligence in discharge of his responsibility. During audit of DHQ Hospital Chakwal it was noticed that a inclinator machine valuing Rs 5.00 million was installed to destroy the Hospital waste. During physical inspection, it was noticed that said machine was out of working. Inspite of incurrence of repair charges of Rs

66 900,000, the machine was still out of order which resulted in wastage of Government resources amounting to Rs 5.90 million as detailed below Description Amount (million) Cost /Value of Machinery 5.00 Repair Charges 0.90 Total 5.90 Audit is of the view that due to negligence and mismanagement, Government money had gone wasted. The matter was reported to the DCO / PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault under intimation to Audit. PDP#19 1.2.3.6 Non-verification of Government Receipt – Rs 4.591 million According to rule 2.4 of PFR Volume-I, all deposits into government account are required to be reconciled with the record of District Accounts Officer concerned. Following offices of the District Government, Chakwal did not get the deposits verified from the treasury office during the years 2014-16 resulting in un authentic receipts as detailed below. (Amount in Rs) PDP Sr. No. Name of the office Amount of un verified receipts No 1 SMO RHC Pir Pullahi 15 93,770 2 MS DHQ Chakwal 16 2,852,871 3 MS City Hospital, Talagang 07 1,144,464 4 SMO RHC Balkasar (2014-15) 171,836 03 5 SMO RHC Balkasar (2015-16) 280,067 6 SMO RHC Lawa 06 48,262 4,591,270 Audit is of the view that due to poor financial management, deposit of receipt was not got verified from the DAO Chakwal.

67 The matter was reported to the DCO / PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault besides verification of deposit of receipt under intimation to Audit. PDP#19 1.2.3.7 Non verification of Deposit of GST- Rs 3.433 million According to the (Central Board of Revenue (Revenue Wing), Islamabad letter No.4(47)STB/98 (Volume-I) dated 4th August, 2001) “the purchasing departments / organizations may forward an intimation together with copies of sales tax invoices to the concerned Collectorate of Sales Tax for the purpose of verification of deposit of tax by the suppliers”. Following office of District Government Chakwal did not get the GST paid to different suppliers verified from the Collectorate of Sales Tax resulting in doubtful collection of the tax in the government treasury. Complete detail is given at Annex-Q. Sr. No. Name of the office PDP No Amount of GST 1 DO OFWM 05 378,939 2 EDO Education 04 2,845,820 3 DO (Sports) 09 48,662 4. DCO 06 159,831 3,433,252 Audit is of the view that due to internal control failures and financial mismanagement, intimation was not forwarded to collectorate of Sales tax to verify the deposit of GST. The matter was reported to the DCO / PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault besides verification of GST under intimation to Audit.

68 1.2.3.8 Non-receipt of License Fee from Gas /Oil Companies - Rs 3.0 million Loss due to Less Collection of License Fee – Rs 714,000 According to Rule 76 of PDG & TMA (Budget) Rules, 2003, “The primary obligation of the Collecting Officers shall be to ensure that all revenue due is claimed, realized and credited immediately into the local government fund under the proper receipt head”. During audit Taxation Branch Zila Council, DCO, District Chakwal for the year 2014-16, it was observed that the office had collected less amount of Rs 714,000 on account of License Fee during the year 2015-16 under different license fee heads as compared to the year 2014-15 as detailed at Annex-R. The number of license holders decreased from 449 in the Financial Year 2014-15 to only 142 in the Financial Year 2015-16. It was pertinent to note that the Administrator had failed to recover even a single rupee on account of license fee 54 Professions and Business categories as per notification No.139/Distt Govt-CK dated 28.06.2014. Moreover, the license fee from different oil and gas companies working at the following sites of District Chakwal had not been collected. This resulted in loss of Rs 3.0 million (Rs 500,000 x 6 = Rs 3,000,000) Sr. No. Site Oil /Gas Filed 1 Chak Norang 2 Dhok Rajgan 3 Joy Khodey 4 Balkasar 5 Kham Kisar 6 Kot Sarang, Tala Gang

Audit is of the view that due to non-compliance of rules and mismanagement, Government sustained loss of Rs 3.714 million. In response to above no reply was submitted by the management. The matter was reported to the DCO / PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. 69 Audit requires that action be taken against the concerned under intimation to Audit. PDP#11 1.2.3.9 Loss due to Non-auction of Land – Rs 2.428 million Loss due to Non-utilization / Lease of Properties of District Government According to Rule 76 of PDG & TMA (Budget) Rules, 2003, “The primary obligation of the Collecting Officers shall be to ensure that all revenue due is claimed, realized and credited immediately into the local government fund under the proper receipt. During audit of the office of Administrator Zila Council / taxation Branch Chakwal, it was noticed that properties of the Zila Council, Chakwal were lying without any revenue generation since 2009. Further, it was estimated that government had sustained loss of Rs 2.428 million if the said 36 units of land had been sublet for cultivation as per prevailing market rate as per detail below. Year Acres Rate per Acre Amount (Rs) 2015-16 21.31 20,000 426,250 2014-15 21.31 18,002 383,625 2013-14 21.31 16,202 345,263 2012-13 21.31 14,582 310,736 2011-12 21.31 13,124 279,663 2010-11 21.31 11,811 251,696 2009-10 21.31 10,630 226,527 2,427,634 It is pertinent that along with these units of cultivable land mentioned above, variety of properties consisting of Land, Forest, Buildings, Fountains were lying without control of the District Government. It was apprehended that due to non utilization of properties, District Government Chakwal had suffered loss of millions of Rupees. Neither any survey was conducted for new assessment nor the condition / fate of such period was known. Rather it was interesting to note that DCO / Administrator District Government Chakwal had wrote many letters to not only the Board of Revenue (Ref: 648/Adm/Ckl dated

70 31-07-2013) but also the Assistant Commissioners of the Tehsils of Chakwal, Kallar Kahar, Choa Saidan Shah, Lawa & Talagang (Ref: P-189 dated 21.04.2015) regarding auctioning of the land under the Control of Zila Council and for verification of the condition of such properties but no response had been received from the concerned quarters. Audi is of the view that due poor managerial control, Government sustained a loss of properties and million of rupees. In response to above no reply was submitted by the management. The matter was reported to the DCO / PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit requires that action be taken against the concerned under intimation to Audit. PDP#14 1.2.3.10 Wasteful Expenditure on Dental Machinery due to Non- availability of Dental Surgeon and Other Staff – Rs 1.00 million According to rule 4(2) of PLG (Property) Rules 2003, the manager shall be responsible to the Local Government for any loss, destruction or deterioration occurs as a result of his default or negligence in discharge of his responsibility. During audit of RHC Kot Qazi, it was observed that, in Dental department of the RHC neither any Dental Surgeon nor any qualified Dental Technician was posted since long as mentioned below. Sr No Designation Since vacant 1 Dental Surgeon 18/2/2014 2 Dental Technician 10/02/2012 Due to non-availability of qualified staff, dental facility was not available for patients. This resulted in wasteful expenditure of Rs1.00 million. Audit is of the view that due weak managerial control, dental machinery was going wasteful.

71 The matter was reported to the DCO/ PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit stresses to post the doctor and relevant staff to facilitate the patients of allied area of RHC under intimation to Audit. PDP#02

1.2.4 Weak Internal Controls

73 1.2.4.1 Non-recovery of House Rent Allowance – Rs 4.31 million According to instructions contained in Finance Department, Government of the Punjab (Monitoring Wing) Lahore’s letter No.FD(M- I)1-15/82-P-I dated 15th January, 2000, the Government servant who is allotted a government residence is not allowed to draw House Rent Allowance and will have to pay House rent @ 5% of the basic pay. During scrutiny of record of allotment of official accommodation situated in District Complex under control of DCO Chakwal, it was noticed that no proof for deduction of House Rent Allowance and house rent @ 5% of basic pay from the pay of staff to whom official accommodations had been allotted was provided. This resulted in non- deduction f house rent allowance Rs 4,309,056 as detailed below. Sr. Type of Per month No. of Calculation Total BPS No. House deduction Houses of Amount (Rs) 1 A Type 18 & above 3873 10 10x3873x12 464,760 2 B Type 17 2955 50 50x2955x12 1,773,000 3 C Type 16 1818 6 6x1818x12 130,896 4 D Type 12 to 15 1476 60 60x1476x12 1,062,720 5 E Type 5 to 11 1146 40 40x1146x12 550,080 6 F Type 1 to 4 910 30 30x910x12 327,600 Total 196 4,309,056 Audit is of the view that due to weak internal control, house rent was not deducted from the officials allotted official residence. The matter was reported to the DCO / PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends recovery under intimation to Audit. PDP#05 1.2.4.2 Unauthorized Payment on account of Different of Allowances, Recovery thereof – Rs 3.460 million According to Rule 1.15 of Punjab Travelling Allowance Rules, conveyance allowance is not allowed during leave Further, according to Sub Treasury Rules 7-A, “conveyance allowance was not admissible during leave”. Mess Allowance and Dress Allowance is not admissible to

74 Charge Nurse during leave period. Further, according to Government of the Punjab health Department letter No.SO(ND)2-26/2004(Volume-II) dated 03.01.2013, “Governor of the Punjab extended the facility of Health Risk Allowance @ Rs1,500 per month for paramedics staff of BS-01 to Bs-04. According to (XIII)(i)(b) Contract Appointment Policy in 2004 issued by Government of the Punjab S&GAD circular vide No. DS(O&M)5-3/2004/Contract/MF dated 29th December, 2004, “Social Security Benefit @ 30% of minimum of basic pay is admissible only for the persons working on contract in lieu of pension” Following DDOs working under the control of District Government Chakwal made un-authorized payments on account of different allowances resulting in the loss to the government as detailed in Annex-S. Audit is of the view that due to negligence, allowances were drawn un-authorizedly. The matter was reported to the DCO / PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends immediate recovery from the defaulter under intimation to Audit. 1.2.4.3 Over Payment on account of Health Sector Reform Allowance (HSRA) – Rs 1.872 million According to Sr No.V of Health Department Government of the Punjab No.PO(P&E)19-1113/2001 dated 13.04.2007, Government approve the Health Sector Reform Allowance for the doctors posted at DHQ/THQ Hospitals with condition that “Specialist will be allowed only hospital based practice after duty hours.”HSRA is admissible to the doctors posted at DHQ/THQ in less attractive area. Scrutiny of accounts of DHQ Hospital Chakwal revealed that during financial year 2015-16 amount of Rs 1.872 million was drawn on account of Health Sector Reform Allowance and paid to the following Specialists/MO without performing hospital based practices as detailed at Annex-T. 75 Moreover HSRA was admissible only in less attractive THQ/DHQ Hospitals. DHQ Hospital Chakwal was not less attractive, so the HSRA was not admissible to Doctors posted in DHQ Chakwal. Audit is of the view that due to internal control failures and financial mismanagement, irregular payment on account of HSRA of Rs 1.872 million was made to doctors. The matter was reported to the DCO / PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault besides recovery under intimation to Audit. PDP#12 1.2.4.4 Loss to Government due to Non-deposit of Receipt and Taxes – Rs 1.601 million According to Rule 76 of PDG & TMA (Budget) Rules, 2003, “The primary obligation of the Collecting Officers shall be to ensure that all revenue due is claimed, realized and credited immediately into the local government fund under the proper receipt head”. Following formations/offices of District Government Chakwal did not recover and deposit the government revenue including income tax, sales tax and parchee fee resulting in loss of Rs 1,601,051 as detailed at Annex-U. Audit is of the view that due to weak internal control, receipt / auction money was neither collected nor deposited in treasury. The matter was reported to the DCO / PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit requires that action be taken against the concerned under intimation to Audit. 1.2.4.5 Non-recovery of Conveyance Allowance – Rs 1.275 million According to the Finance Department, Government of the Punjab letter No. FD.SR 19-86 (P)(PR) dated 21.04.2014, it is clarified that

76 officers/officials who are availing government vehicles including bikes are not entitled to draw conveyance allowance. Various vaccinators of DO (Health), Chakwal had drawn amount of Rs 1,275,120 on account of conveyance allowance during financial year 2014-15. It was noticed that said staff was availing official transport facility/Bikes along with POL. This resulted in unauthorized payment of conveyance allowance amounting to Rs 1.275 million. The detail is given at Annex-V. Audit is of the view that internal control failures and financial mismanagement, conveyance allowance amounting to Rs 1,275,120 was drawn unauthorizedly. The matter was reported to the DCO / PAO in November 2016. Neither any reply was furnished by DDO nor DAC meeting was held till finalization of this report. Audit recommends fixing responsibility of the person(s) at fault besides recovery from the concerned under intimation to Audit. PDP#02

ANNEXES

78 Annex-A Part-1 Current audit year 2016-17 Memorandum for Departmental Accounts Committee (Rs. in million) Sr Name of Nature of Title of Para Amount No. Formation Para DO Sub-standard Supply of Medicines 1 Irregularity 0.434 Livestock & Non-forfeiture of Security DHQ Irregular Expenditure under Wrong 2 Irregularity 0.543 Chakwal Head DCO Un justified Expenditure on 3 Irregularity 0.133 Chakwal Advertising - Zila Council, 4 Non-verification of GST Irregularity 0.009 Chakwal Irregular / Unjustified Payment of 5 Irregularity 0.336 Pay and Allowances - DO (Sports), Un justified Payments on Sports 6 Irregularity 0.036 Chakwal Activities Un justified Payments on account 7 Irregularity 0.706 of Sports Activities - Unjustified Purchases of Sports 8 DO (Sports) Irregularity 0.180 Items - Irregular Drawl on Account of Pay 9 Irregularity 0.075 Secretary of Contract Staff RTA Doubtful Payment without 10 Irregularity 0.247 Acknowledgment - EDO Doubtful Payment without 11 Irregularity 0.014 (Literacy) Acknowledgement Irregular Cash Payment instead of 12 EDO Irregularity 0.025 Bank Draft or Cheque (Agriculture) Doubtful/Unjustified Payments 13 Chakwal Irregularity 0.093 without Acknowledgment – DO(Livestoc Unjustified Expenditure of 14 Irregularity 0.439 k) Chakwal Payment of Pending Liabilities 15 DO(OFWM) Irregular Drawl of TA/DA - Irregularity 0.105 16 Chakwal Non-auction of vehicle - Performance 0.600 17 EDO Non-verification of Receipt - Performance 0.429 79 Sr Name of Nature of Title of Para Amount No. Formation Para (Health) Doubtful/Unjustified Payment 18 Irregularity 0.119 Chakwal without Acknowledgment Unauthorized Payment on Account 19 Irregularity 0.008 of Service Charges - Unauthorized Drawl of Non 20 Irregularity 0.100 Practicing Allowance (NPA)- DO(Health) Unjustified Expenditure due to 21 Irregularity 0.421 Chakwal Payment of Pending Liabilities - Irregular Payment on account of DO(Livestoc 22 Computer - Rs380,000 and Non Irregularity 0.435 k) Chakwal deduction of GST Unauthorized Payment on Account 23 Irregularity 0.011 of Service Charges DO (Health) 24 Shortage of Medicine – Performance 0.014 Chakwal Non verification of Government 25 Performance 0.584 Receipt - City Hospital Un-authorized Payment of Non 26 Irregularity 0.148 Talagang Practicing Allowance (NPA) Irregular Purchase of Local 27 RHC Pir Irregularity 0.044 Purchase (LP) Medicine Phullahi 28 Non-accountal of Medicines - Performance 0.024 Doubtful Expenditure on account 29 Irregularity 0.054 of Electricity Charges - Un-reconciled Bank balance with 30 Irregularity 0.574 Cash Book Difference Irregular Doubtful Expenditure on General 31 POL Charges and Repair of Irregularity 0.451 Nursing Transport School, Doubtful Cash Payment instead of 32 Chakwal Irregularity 0.314 Bank Draft Shortage of Computer Systems 33 Performance 0.120 (approx.) Unjustified Expenditure due to 34 Irregularity 0.020 Payment of Pending Liabilities Unjustified Expenditure due to 35 RHC Pir Irregularity 0.228 Payment of Pending Liabilities - Phullahi 36 Un-authorized payment of Non Irregularity 0.96 80 Sr Name of Nature of Title of Para Amount No. Formation Para Practicing Allowance (NPA) - Irregular Maintenance of Cash 37 Irregularity Book Irregular expenditure due to 38 Irregularity 0.056 RHC Buchal Misclassification Kalan Non-verification of Government 39 Performance 0.278 Receipt - 40 THQ Non-supply of Medicines - Irregularity 0.241 Hospital Non-verification of Government 41 Performance 0.379 Talagang Receipt - City Hospital Un-authorized Payment of Non 42 Irregularity 0.096 Talagang Practicing Allowance (NPA) Less utilization of Medicines 43 THQ Irregularity 0.166 Budget - Hospital Non-provision of Actual Payee 44 Talagang Irregularity 0.285 Receipt - RHC Kot Irregular Expenditure on POL 45 Irregularity 0.319 Qazi Charges - THQ Irregular Expenditure on Local 46 Hospital Purchase of Medicines Beyond the Irregularity 0.575 Talagang Prescribed Limit of 15% Non-verification of Government 47 RHC Kot Performance 0.158 Receipt Qazi 48 Non-supply of Medicine - Irregularity 0.045 Irregular Expenditure on Medicines 49 Irregularity 0.244 Beyond Financial Power Non Verification of Government 50 Performance 0.255 Receipt Irregular Payment of Salary During 51 RHC Jhatala Irregularity 0.290 General Duty Irregular expenditure on POL of 52 Irregularity 0.078 Ambulance - Irregular Payment without Actual 53 Irregularity 0.302 Payee Receipts/Acknowledgement Irregular payment on account of RHC 54 Practice Compensatory Allowance Irregularity 0.180 Dhudial (PCA) - 81 Sr Name of Nature of Title of Para Amount No. Formation Para Non-verification of Government 55 Performance 0.253 Receipt - 56 Doubtful Expense of Medicine Irregularity 0.586 Irregular Expenditure on Medicines 57 Irregularity 0.081 RHC Beyond Financial Power Balkasar Loss to Government Due to Non- 58 Irregularity functional X-Ray Machine Irregular Expenditure on Purchase 59 Irregularity 0.081 for X-Ray Department 60 Doubtful Consumption of Diesel Irregularity RHC Late Supply of Medicines Non- Dhudial recovery of 2% Liquidated 61 Irregularity 0.401 Damages for Late Supply of Medicines 62 Defective Supply of Medicines - Irregularity 0.006 RHC Non-verification of Deposited 63 Irregularity 0.149 Tamman Receipts From Treasury Office Un-authorized Local Purchase of 64 Medicines without Sanction of Irregularity 0.396 Competent Authority - Loss to the Government due to 65 Non auction / Non-condemnation Performance 0.250 THQ of Off Road vehicle - Hospital Irregular Expenditure on Utility Chua Saidan 66 Charges of Mines Labour Welfare Irregularity 0.798 Shah Department Hospital – Un justified drawl of Pay and 67 Irregularity 0.517 Allowances - Non reconciliation of Receipt with 68 Performance 0.403 Treasury - Unauthorized Payment on Account 69 Irregularity 0.451 of Sign Boards Unauthorized Payment on account 70 DO Irregularity 0.690 of Weather Shield (Buildings) Irregular payment of Non Schedule 71 Irregularity 0.825 Items - 72 Non-verification of GST Performance 82 Sr Name of Nature of Title of Para Amount No. Formation Para Unauthorized Payment on Account 73 Irregularity 0.246 of Sign Boards - Overpayment due to Allowing 74 Irregularity 0.752 Excessive Rate for RCC Work Overpayment Due to Non- 75 deduction of 6% Shrinkage on Irregularity 0.171 Earth Work DO (Roads) Non verification of the Earnest 76 Performance 0.823 Money of Contractors Non recovery of Rent of 77 Recovery 0.225 Approaches of Petrol Pumps Loss of million due to Inordinate 78 delay in disposal / auction of Performance unserviceable vehicles / machinery Unjustified Payment of Pending 79 EDO Health Irregularity 0.393 Liabilities - 80 Non-supply of Medicines Irregularity 0.450 DHQ Non-auction of Un-Serviceable 81 Hospital Performance 0.037 Store Article Non-comparison of schedule of 82 RHC Lawa Irregularity 24.176 Payments with the Cash Book Non verification of Balance of 83 SDA Cash Book with the Treasury Performance DCO Office Pass Book 84 Un-authentic Payment Irregularity 1.0 RHC Pir 85 Irregular Purchase of Medicine Irregularity 0.041 Phullahi Unjustified Payment of POL 86 DO Sports Charges without Maintenance of Irregularity 0.139 Log Book Unjustified Payment of POL DCO 87 Charges without Maintenance of Irregularity 0.597 Chakwal Log Book Unjustified Payment of POL DO (Excise 88 Charges without Maintenance of Irregularity 0.253 & Taxation) Log Book 89 EDO Not achievements of targets of Performance 83 Sr Name of Nature of Title of Para Amount No. Formation Para Literacy Literacy Programme Likely Misappropriation due to 90 Non 0.072 Non availability of T&P production Non-availability of Store and Stock 91 of record 0.120 of Closed Centers Non obtaining of Schedule of 92 Performance 33.125 Payments

84 Part-II [Para 1.1.3] Memorandum for Departmental Accounts Committee Paras pertaining to Previous Audit Year 2015-16 (Rs in million) Sr Name of Nature of No Title of Para Amount Formation Para . 1 EDO (F&P) Irregular payment Irregularities 0.049 DO Irregular Payment of salary Irregularities 2 (OFWM) 0.175 DO Agric Defective planning of Demonstration Irregularities 3 (Ext) Plant due to Non achieving of objective 0.000 4 DO (Forest) Non-achieving of objective Irregularities 0.060 EDO Irregular expenditure due to Irregularities 5 (Education) misclassification of account 0.179 -do- Non disbursement of scholarship Irregularities 6 money 1.881 -do- Non recovery of fine from private Overpayment 7 schools due to non renewal 0.288 Dy DEO Un-authorized Expenditure without Irregularities 8 (EE-M) verification from SMC 1.352 Choa Saiden Loss to government due to non Irregularities 9 Shah implementation of rationalization Policy 1.448 Dy DEO Irregular drawl of inspection Irregularities 10 (EE-M) allowance 0.580 11 Chakwal Non-utilization of SMC Irregularities 1.429 DHQ Over payment of Overpayment 12 Hospital 0.302 -do- Non deposit of X-Ray developer fixer Irregularities 13 waste water charges 0.067 -do- Non deduction of conveyance Overpayment 14 allowance 0.150 -do- Non deduction of Conveyance Overpayment 15 Allowance 0.115 16 -do- Overpayment of Overpayment 0.052 85 Sr Name of Nature of No Title of Para Amount Formation Para . City Hospital Irregular Purchase of medicines at Weak 17 Talagang Exorbitant Rates Internal Control 0.139 -do- Non issuance of regular license from Weak 18 Heath Care Commission Internal Control 0.200 RHC Irregular payment on account of pay Misclassificat 19 Munday and allowances ion 0.653 -do- Doubtful payment against purchase Weak 20 of medicines Internal Control 0.057 -do- Loss to government due to Irregularities 21 deterioration of X-rays plant 1.500 22 -do- Non verification of Expenditure Irregularities 15.310 THQ Irregular expenditure on utility Irregularities 23 Hospital charges of Mines labour welfare Choa Saiden hospital 0.659 Shah Non-utilizing of hospital buildings Irregularities 24 resulting in wastage of assets 0.000 DO (Roads) Wasteful/ misappropriation of funds Irregularities 25 on account of patch work under the TST & DST 0.296 26 -do- Un-Justified issuance of un-cashed Irregularities 0.608 -do- Irregular drawl of pay and allowances Irregularities 27 without performing duties 2.399 -do- Irregular, Unauthorized and Un- Irregularities 28 Justified Revision of Estimates - 1.985 -do- Irregular and Un-Authorized Award Irregularities 29 of Work - Rs1.189 million 1.189 DO Unauthorized payment on account of Irregularities 30 (Buildings) two coats of distemper on old surface 0.320 -do- Overpayment due to non-reduction in Irregularities 31 item rate due to use of local sand- 0.252 -do- Non Deduction of Additional Overpayment 32 Performance Security-Rs0.43 million 0.430

86 Annex-B Amount in Rs. Sr. GRAND SUMMARY OF APPROPRIATION ACCOUNTS BY GRANTS AND APPROPRIATIONS No FOR THE YEAR 2015-2016 OF DISTRICT GOVERNMENT CHAKWAL Final Actual Variation Supplementary Name of Grant Original Grant (+) Excess Grant Grant Expenditure (-) Saving 1 Provincial Excise 3,759,700 1,591,000 5,350,700 4,665,176 (-) 685,524 2 Forests 11,512,100 803,700 12,315,800 9,433,093 (-) 2,882,707 3 Charges on A/c of Motor (-) 2,734,700 45,010 2,779,710 1,804,141 975,569 Veh. Act 4 Other Taxes & Duties 2,887,800 199,000 3,086,800 2,932,229 (-) 154,571 5 General Administration 211,094,570 211,096,052 422,190,622 66,952,273 (-) 355,238,349 6 Education 3,986,230,203 559,745,293 4,545,975,496 3,965,215,871 (-) 580,759,625 7 Health Services 746,924,500 209,745,530 956,670,030 796,241,848 (-) 160,428,182 8 Agriculture 87,275,140 8,235,041 95,510,181 87,413,809 (-) 8,096,372 9 Fisheries 1,463,700 4,700 1,468,400 1,332,048 (-) 136,352 10 Veterinary 105,755,500 13,399,239 119,154,739 107,202,930 (-) 11,951,809 11 Co-operation 20,345,900 1,781,800 22,127,700 20,492,058 (-) 1,635,642 12 Industries 1,819,900 23,600 1,843,500 1,459,071 (-) 384,429 13 Miscellaneous Departments 1,535,800 264,200 1,800,000 976,684 (-) 823,316 14 Civil Works 53,893,300 19,236,008 73,129,308 63,944,512 (-) 9,184,796 15 Communications 87,807,600 4,418,305 92,225,905 61,287,470 (-) 30,938,435 16 Miscellaneous 18,138,900 1,138,200 19,277,100 16,836,020 (-) 2,441,080 17 Civil Defence 4,980,700 402,000 5,382,700 4,623,668 (-) 759,032 Total Non development 5,348,160,013 1,032,128,678 6,380,288,691 5,212,812,901 (-) 1,167,475,790 DEVELOPMENT 1 Development 171,795,425 347,488,956 519,284,381 230,678,810 (-) 288,605,571 2 Roads & Bridges 1,600,000 11,986,000 13,586,000 11,686,139 (-) 1,899,861 3 Government Buildings 189,919,950 374,652,700 564,572,650 469,724,915 (-) 94,847,735 Total Development 363,315,375 734,127,656 1,097,443,031 712,089,864 (-) 385,353,167 G.Total 5,711,475,388 1,766,256,334 7,477,731,722 5,924,902,765 (-) 1,552,828,957 NET Result -834,188,721 surrendered/withdraw NET TOTAL 5,711,475,388 1,766,256,334 6,643,543,001 5,924,902,765 (-)718,640,236

87 Annex-C Para-1.2.1.1 (Rupees in million) Sr Name of PDP Detail of Record Amount No Formation No EDO(Education) diverted and transferred funds to EDO DO(Buildings) Chakwal instead of school for construction 1 (Education) 1 of boundary walls and for other basic needs of schools but 55.89 Chakwal, vouched account along with the residual balance not produced Secretary Contingency 2002-08 1.753 2 RTA 4 Pay & Allowances 2002-08 38.916 Chakwal Contingency & pay 2013-14 1.824 Excise & Likely Misappropriation due to Non-maintenance of 3.228 Taxation Vouched Accounts of Contingency 2012-16 3 6 Officer Pay& Allowances 2012-16 37.151 Chakwal RHC Kot Pay roll /pay slips, along with supporting Financial year 4 3 8 Qazi 2015-16 6.1 metric ton bitumen was issued from main store during 5 4 the year 2015-16 but RMR / Consumption record was not 6.1 DO (Roads) produced to audit Chakwal Incurred under head “Other Roads” during 2015-16 but the 6 6 relevant supporting record was not produced to Audit for 7.783 detailed verification RHC 7 Buchal 1 Payment of financial assistance, Service Books 0 Kalan RHC Pir Vouchers pertaining to contingent expenditure, Budget, 8 1 0 Phulllahi Expenditure, Personal files etc Service Books, Personal Files and leave record of the staff, DO (Excise 9 1 Allotments register of residences, Stock Register, DDO 0 & Taxation) Bank Statement EDO Vouched Account of items purchased by Market 10 1 1 Agriculture Committee, Talagang THQ 11 Hospital 6 Arrears of pay & allowances of Dr. Sundas 0 Talagang 88 RHC 10 12 0 Dhudial Payroll, service books and personal files RHC 1 13 0 Tamman Superannuation Encashment of LPR Total 161.838

89 Annex-D Para-1.2.2.3 Sr. PDP Amount of Earnest money Stamp Duty Performance Name of DDO No. # supply orders @ 2% @ 0.25% Security 5% 1 09 DO Health 2,015,577 40,311 5,039 100,779 2 11 DHQ Hospital 39,928,000 798,560 99,820 1996,400 3 City Hospital, 04 4,978,167 99,563 12,445 248,908 Talagang 4 14 RHC Pir Phullahi 1,499,746 29,995 3,750 74,987 5 08 RHC Buchal Kalan 1,498,479 29,970 3,745 74,924 6 THQ Hospital, 02 3,509,280 70,185 8,773 175,464 Talagang 7 08 RHC Kot Qazi 1,291,913 25,838 3,230 64,595 8 01 RHC Balkasar 1,273,800 25,476 3,183 63,670 9 02 RHC Jhatla 1,472,000 29,440 3,680 73,600 10 04 RHC Lawa 602,339 12,047 1,506 30,117 11 05 RHC Tamman 1,348,399 26,968 3,371 67,420 12 THQ Hospitasl 03 2,679,279 53,590 6,690 133,947 Chua Saidan Shah Total Rs. 62,096,979 1,241,943 155,232 3,104,811

90 Annex-E Para-1.2.2.6 Sr. Expenditure Savings PDP Name of DDO Budget (Rs) No. (Rs) (Rs) 1 06 RHC Dhudial 36,861,270 34,842,726 2,018,544 2 02 EDO (Agriculture) 6,962,261 4,387,066 2,775,195 3 04 DO (Livestock) 92672200 86123206 6,548,994 4 11 EDO (Education - Literacy) 23139250 16811146 6,328,104 5 03 DCO Chakwal 17,748,000 6,724,072 11,023,928 6 02 DO (Excise & Taxation) 13499686 8454103 5,045,583 7 07 DHQ Hospital 54,310,180 51,741,734 2,568,446 Government City Hospital 8 03 4,810,687 2,319,468 2,491,219 Talagang 9 01 Principal School of Nursing 4,678,502 3,190,480 1,488,022 10 02 SMO RHC Buchal Kalan 18,755,937 18,371,267 384,670 11 05 RHC Kot Qazi 1,755,000 1,412,223 266,233 Total 275,192,973 234,377,491 40,938,938

91 Annex-F Para-1.2.2.8 Sr. Expenditure Figures as Head of Account Difference No Statement per FI Data 1 Pay of contract staff 5,357,107 15,501,561 -10,144,454 2 A 120Q Fixed daily 1044 2,991,211 allow -2,990,167 3 Risk allowance 1,493,950 4,731,195 -3,237,245 4 AO 1224 ETA 14,600 3,455,732 -3,441,132 5 Qualification apy 1,162,844 6,140,192 -4,977,348 6 NPA 1,383,270 1,551,330 -168,060 7 Potage 31,776 358,939 -327,163 8 Gass 246,655 737,717 -491,062 9 Electricity 2,157,570 6,844,188 -4,686,618 10 Printing 68,500 392,000 -323,500 11 Advertisement 6,000 661,600 -655,600 12 Other AO 3970 1,874,783 942,809 931,974 13 Repair of transport 42,022 1,118,484 A13001 -1,076,462 14 A13101 Repair of M&E 912,135 1,244,366 -332,231 15 Stationary 26,068 376,669 -350,601 16 Superannuation 0 598,947 -598,947 17 TAs 47,100 801,100 -754,000 18 Telephone 62,935 184,390 -121,455 19 POL 4,383,190 4,696,168 -312,978 20 Medicines 49,537,064 42,152,456 7,384,608 Total 68,808,613 98,472,265 -29,663,652

Annex-G 1.2.2.11 Detail of Penalty Sr Approved Physical Name Of Schemes Tehsil Expenditure Status No Cost progress Reconstruction of dangerous building of Primary portion in GPS Mohri Choa 4.542 At Roof 1 Agreement Amount: Saiden 1.853 55% 18.08.15 level. 4420195/- DOS: Shah 17.10.15 Time Limit: 05 Months. DOC: 16.03.16. Reconstruction of dangerous 01 At door 2 classroom with Talagang 1.1660000 0.159 40% level. veranda of GGHS Sukka Re-Construction of Dangerous Building of 06 Nos Class Room in GHS Karooli Flooring 6.784 3 Agreement Amount: Chakwal 5.509 80% in 18.08.15 6,619,216/- DOS: progress. 17.10.15 Time Limit: 08 Months. DOC: 16.06.16. Re-Construction of Dangerous Building of GBHSS Bharpur Rubbing (High Portion) Kallar 6.732 of floor 4 Agreement Amount: 4.534 95% Kahar 18.08.15 in 6575499/- DOS: progress. 17.10.15 Time Limit: 08 Months. DOC: 16.06.16. Reconstruction of dangerous building of Kallar 3.420 At door 5 03 Nos C/Room in 0.797 45% Kahar 31.03.16 level. GGHSS (High School Portion) Bharpur 93 Sr Approved Physical Name Of Schemes Tehsil Expenditure Status No Cost progress Agmt Amount: 3340545 DOS: 12.05.16 Time Limit: 04 Months. DOC: 11.09.16. Construction of additional class room in GHS Noorpur Plastering Agreement Amount: Kallar 1.125 6 1.124 85% in 1117985/- DOS: Kahar 18.08.15 progress. 16.10.15 Time Limit: 2-1/2 Months. DOC: 31.12.15. Construction of additional class room Plastering in GES Sethi & Agreement Amount: Kallar 0.907 7 0.376 85% Flooring 904551/- DOS: Kahar 18.08.15 in 16.10.15 Time Limit: progress. 02 Months. DOC: 15.12.15. Construction of additional class room in GPS Dhoke Dand Flooring Agreement Amount: Kallar 0.907 8 0.403 85% in 904551/- Kahar 18.08.15 progress. DOS:16.10.15Time Limit: 02 Months. DOC: 15.12.15. Construction of additional class room in GGES Tammay Flooring Agreement Amount: 0.907 9 Chakwal 0.504 85% in 904551/- DOS: 18.08.15 progress. 16.10.15Time Limit: 02 Months. DOC: 15.12.16. Construction of additional class room Finishing Kallar 1.125 9 in GBHSS Bharpur 1.122 98% in Kahar 18.08.15 Agreement Amount progress. 1,117,985 DOS: 94 Sr Approved Physical Name Of Schemes Tehsil Expenditure Status No Cost progress 17.10.15 Time Limit: 02-1/2 Months. DOC: 01.01.16. Construction of additional class room in GPS Chaki Rang External PurAgreement Kallar 0.907 10 0.912 98% dev. in Amount: 904551/- Kahar 18.08.15 progress. DOS: 16.10.15Time Limit: 02 Months. DOC: 15.12.15. Construction of additional class room in GGES Sethi Flooring Agreement Amount: Kallar 1.125 11 0.528 85% in 1117985 Kahar 18.08.15 progress. DOS:16.10.15 Time Limit: 02-1/2 Months. DOC: 31.12.15. Rehabilitation of GBHS No.1 Chakwal First floor UC No.4 Chakwal roof laid. City 39.822 Plastering 12 Agreement Amount: Chakwal 28.828 70% & super 20.04.15 41094011/- DOS: structure 09.05.15 Time Limit: in 12 Months. DOC: progress. 08.05.16. Upgradation of GGES Ratucha upto High level Scope of Work 1. Constn: of School Building 4665 Sft 2. Electric Choa Boundary Installation, Sanitary 8.222 13 Saiden 7.041 85% wall in Installation. 27.10.14 Shah progress. 3. Const: of B/wall 9'' thick 6' height 82 Rft 4. Retaining wall 120 Rft, Barest wall 120 Rft 5. Constn: of 02 Nos 95 Sr Approved Physical Name Of Schemes Tehsil Expenditure Status No Cost progress Toilet block ,Gate & Gate Pillar 6. External Development Agreement Amount: 8379229/- DOS: 31.12.14 Time Limit: 06 Months. DOC: 30.06.15. Upgradation of GGES Hasil upto High level Scope of Work 1. Constn: of High School Building 4665 Sft 2. Constn: of B/wall 9'' thick 6' height 282 Rft 3. Constn: of Retaining wall 295 Rft,Gate & Gate Pillar Flooring 8.425 14 4. Contn: of Toilet Chakwal 7.342 61% in 27.10.14 block 04 Nos progress. 5. Water supply,External Development, External Wapda connection with 25 KVA Transformer Agreement Amount: 8320692/- DOS: 10.12.14 Time Limit: 06 Months. DOC: 09.06.15. Upgradation of GGHS Bheen upto Higher Secondary level 18.940 At Roof 15 Chakwal 7.626 55% Agreement Amount: 27.10.14 level. 19074918/- DOS: 09.01.16 Time Limit: 12 Months. DOC: 96 Sr Approved Physical Name Of Schemes Tehsil Expenditure Status No Cost progress 08.01.17 Up-Gradation of BHU Basharat to Rural Health Center Scope of Work: Main Building of RHC 1. Residence Covered 26.196 area 3150 Sft 16-12-10 2. Residence Covered Choa 39.123 Work in 16 area 1650 Sft Saiden 0.253 10% 04.02.16 progress. 3. Qtr Covered Area Shah 39.052 ® 600 Sft 21.04.16 Agreement Amount: 26.425 (M) DOS: 01-02-10. DOC: 01.02.12 Time Limit: 24 Months 144.118 68.911

Penalty 10 % 14.412 million

97 Annex-H Para-1.2.2.13 Agreement Date of Date of Name of scheme Completed Penalty cost Start Completion Widening /improvement of road from 95.901 25/06/2013 24/6/2014 Not yet 9.59 Tamman to Mial Tehsil Talagng 30/6/16 Spl repair of road from bhon chowk to thoa 2.900 15/04/2016 (given by Not yet 0.29 Hmmayun the kallar kahar EDO (W&S) Renovation of road4.0 KM (Mangwal to 16.275 Not yet 1.628 latifwal) 15/05/2015 15/08/2015 Constn of road village latifwal length 1.25 6.293 10/06/16 0.6293 KM 13/05/2015 12/07/2015 Constn of road length 1.00 KM Mouza 3.15 Not yet 0.315 Bharpur tehsil Kalar Kahar District Chakwal 20/01/2016 19/04/2016 Total 124.519 12.452

98 Annex-I Para-1.2.2.15 Purchase of medicine without DTL Report Sr. No. Name of the DDO PDP Amount (Rs) 1 MS THQ Chau Saidan Shah 03 2,679,479 2 RHC Lawa 01 1,144,224 3 RHC Tamman 02 814,982 4 RHC Balkasar 04 290,507 5 RHC Dhudial 02 388,538 6 RHC Jhatla 04 284,111 7 RHC Kot Qazi 01 172,812 8 THQ Hospital Talagang 01 955,543 9 RHC Pir Phullahi 04 122,903 10 City Hospital Talagang 05 873,825 11 DHQ Hospital Chakwal 02 3,745,075 12 DO(Health) Chakwal 76,150 11,548,149

99 Annex-J Para-1.2.2.16 Sr. No Suppliers Invoice No/Date Supply Order Amount (Rs) No 9550-52/ 1 M/S Fynk Pharma T/088/ 28.02.13 446,240 17.12.12 9586-88/ 2 Adnan Traders 126/ 19.03.13 190,000 17.12.12 3 Eastern Traders 052/ 05.01.15 75,960 4 Valor Pharma 1023/ 21.03.13 162,750 5 Pgem 357/ 20.03.13 98,000 9577-79/ 6 Jawa 85/ 01.12.13 791,750 17.12.13 9586-88/ 7 Adnan Traders 098/ 26.03.13 1,695,000 17.12.12 8 Mediwin 318/ 19.02.13 19559/ 17.12.12 1,874,450 9 Mediwin 317/ 19.02.13 19559/ 17.12.12 3,449,180 10 Mediwin 543/ 20.03.15 613/ 15.01.15 230,000 1 Sunwin 101/ 20.03.15 Po-543/ 12.01.15 168,625 12 Adnan traders 325/ 23.06.15 607/ 15.01.15 205,950 13 Punjab pharmacy 885/ 27.06.15 616/ 15.01.15 84,375 9556-58/ 14 Mediwise 1254/ 20.03.13 356,750 17.12.12 9556-58/ 15 --do-- 1247/ 20.03.13 453,000 17.12.12 9556-58/ 16 --do-- 1255/ 20.03.13 757,000 17.12.12 Total 11,039,030

100 Annex-K Para-1.2.2.29 Contract without approval of Administrator-SMO RHC Lawa Date Inv. No. Vendor Name Amount (Rs) - 2333 Mediwise Pharma 118,977 8/4/2015 72 Eastern Trading Co. 50,755 8/4/2015 532 MEDWIN 47,500 14-02-15 358 Punjab Pharmacy 61,200 9/4/2016 2149 Stallions Pharmaceuticals 53,000 - 2520 Al-Kemy Pharmaceuticals 92,050 16-01-16 1005 Arson Pharmaceutical Co. 92,050 30-12-15 90136237 Macter International 85,500 16-12-15 207 Nisa Impex 42,700 7/12/2015 6034 Lisko Pakistan 145,000 9/4/2016 2208 Stallions Pharmaceuticals 116,700 8/1/2016 1916 Rasco Pharma 43,780 4/1/2016 71 Unisa Pharmaceuticals 75,550 25-01-16 091/2016 Sharooq Pharmaceuticals 74,000 11/6/2016 IP-3402 Amson Vaccines & Pharma 45,462 1,144,224 Contract without Approval of Administrator - SMO RHC Tamman Date Inv. No. Vendor Name Amount (Rs) 25.02.15 2334 Mediwise Pharma 100,223 27.02.15 398 Punjab Pharmacy 46,774 10.3.2015 74 Eastren Trading Corp. 59,255 20.03.15 533 Medwin 59,500 22.01.15 469 Eastren Trading Corp. 41,400 6.1.2016 1 Glitaz Pharma 62,150 . 2522 Al-Khemey Pharmaceuticals 57,560 29.12.15 174 Life Pharmaceutical Co. 48,000 7.12.2015 6032 Lisko Pakistan 106,875 16.12.15 210 Nisa Impex 42,700 3.12.2015 10 Gulf Pharmaceuticals 50,645 4.1.2015 67 Unisa Pharmaceuticals 139,900 814,982

101 Contract without approval of Administrator-MS THQ Chua Saidan Shah Invoice No. Date Vendor Name Amount (Rs) 54 26-05-15 Eastern Trading Corp. 84,500 323 23-05-15 Adnan Traders 137,300 90136231 30-12-15 Macter Int'l Ltd 111,500 205 16-12-15 Nisa Impex 91,000 18 26-11-15 Star Laboratories 170,000 6023 7/12/2015 Lisko Pakistan 62,425 101 15-01-16 Sharooq Pharmaceuticals 100,000 23 7/12/2015 Karim Industries 166,700 2015152 7/1/2016 Novamed Pharmaceuticals 118,000 153 29-12-15 Silver Surgical Complex 261,080 1004 16-01-16 Arson Pharmaceuticals 438,000 171 18-11-15 Cotton craft 311,500 59 4/1/2016 Unisa Pharmaceuticals 309,350 1986 30-01-16 Semos Pharma 109,800 6 3/12/2015 Gulf Pharmaceuticals 208,324 Total 2,679,479

102 Annex-L Para-1.2.2.30 Sr. Budget Expenditure Name of DDO Excess (Rs) No. (Rs) (Rs) 04 THQ Hospital Chua Saidan Shah 10,180,300 14,786,095 4,605,795 03 SMO RHC Tamman 4,132,700 4,934,559 801,859 02 RHC Lawa 21,880,700 11,658,631 11,825,787 07 SMO RHC Balkasar 14,288,900 15,075,612 786,712 03 SMO RHC Buchal Kalan 12,276,650 16,278,246 4,001,596 12 SMO RHC Pir Phullahi 15,618,300 18,362,775 2,744,475 03 Principal General Nursing School 4,676,306 5,111,878 435,572 Government City Hospital 02 13,071,100 25,933,860 12,862,760 Talagang 08 MS DHQ Hospital Chakwal 26,498,600 37,280,096 10,781,496 03 DO (Excise & Taxation) 122,623,556 149,421,752 14,593,766 08 DO (Sports) 122,623,556 149,421,752 14,593,766 04 DCO Chakwal 1,303,200 1,492,660 189,460 17 Administrator Zila Council, 2,799,200 3,310,780 511,580 03 EDO (Agriculture) 2,172,900 2,512,980 340,080 01 DO (OFWM) 11,514,000 12,989,000 1,475,000 385,659,968 468,570,676 80,549,704

103 Annex-M Para-1.2.2,33 General duty outside place of Posting RHC Tamman Name of the Official, & Monthl Total Pay for Posted Posting Office Designation y Pay 2 years since BHU Nafees Ahmad, Vaccinator 20,000 480,000 2 years Pitchnand DDOH Afzal Shaheen, Sanitary Patrol 25,000 600,000 6 years Talagang Muhammd Naeem, Sanitary BHU Kot 25,000 600,000 5 years Patrol Gulla 1,680,000

RHC Lawa Total Name of the Official, Monthl Posted Posting Office Pay for Designation y Pay since 2years Muhammd Ayub, Sanitary DDO (H), 19,708 472,992 Patrol Talagang 8 years Asad Ali Khan, Dispenser BHU Dhok Musab 18,152 435,648 2 years Total 908,640

RHC Balkasar Total Posted Monthl Name of the official, Designation Posting Office Pay for since y Pay 3years years DHQ Hospital Mohsin Khaliq, Radiographer 19,500 702,500 3 years Chakwal General Nursing School, Chakwal General Sr. Name of Duty Unauthorized Amount Designation No Staff Started Period Observed from 1 Mr. Zaheer Lab. Asstt. 01.03.15 June, 15 to June, 278,842 Ahmed 16 2 Mr. Nazar Chowkidar 01.12.14 March 15 to June, 218,318 Abbas 16 Total 497,160

104 Annex-N Para-1.2.2.33 Name of Date of Amount Name of Work Contractor Deposit (Rs) Provision of Drinking Facility GGHS Umer ud din Hasil & Repair of class room Ahmed kahoot 04/2004 38,424 Abad Construction of Tolit Block NO.2 Malik Ibrar 11/2006 48,804 Tentage City village karan Hussain MR TO G A Building DEF Residence Malik Gulzar 10/2006 90,082 Chakwal Ahmed Establishment of vocational Training Umer ud din 06/2007 174,183 Institute Murat kahoot Establishment of vocational Training Malik liaqat Ali 06/2007 274,672 Institute Dhok musahib Construction of Community Center CH. Muhammad 12/2007 280,084 Chakwal. Ali Establishment of vocational Training Umer ud din 02/2008 56,821 Insititue women village mureed kahoot Up gradation of GBPS To High Level Ch.Muhammad 06/2009 285,261 Muhammad Ali. Afzal Up gradation GGHS TO Higher Malik Sagheer 02/2010 127,256 Secondary School Thu marm khan Ahmed Provision of Missing facilities GGHS Zamir Ul Hassan 04/2010 147,205 Dulmail The Choa syedian Shah Total 1,522,792

105 Annex-O Para-1.2.2.49 Sr Expenditure Total . Khasr Name of Chairman Installments (Rs) Mauza Tehsil Expenditur N a No. WUA 2nd 3rd e (Rs.) o Mohammad Imran S/o 1 4847 Bheen 25,000 25,000 Mohammad Buksh Chakwal Malik Ahmed Basit 2 2411 Nadeem S/o Dhuman 25,000 25,000 Muhammad Aslam Chakwal Iftikhar Akram S/o 3 281 Dalilpur 25,000 25,000 Muhammad Akram Chakwal Pirzada Ghulam 4 1038 Mujtaba S/o Jehangir Dharabi 25,000 25,000 Sani Chakwal Mohammad khan S/o Thoha 5 1165 25,000 25,000 Manzoor Hussain Bahadar Chakwal Sohail Afraheem S/o 6 219 Khokhar 25,000 25,000 Ghulam Afraheem Chakwal Ghulam Hussain S/o 7 3600 Odharwal 25,000 25,000 Shah Wali Chakwal Mouza Malik Daud S/O Malik Dulmial 8 785 25,000 25,000 Atta Muhammad Tehsil Lawa Chakwal Muhammad Waris Khan Thoa Kallar 9 538 19,126 19,126 S/o Gulistan Khan Humayun, Kahar Muhammad Saleem 10 1921 Malik S/o Ghulam Runsial Kallar 8,594 8,594 Abbas Kahar Muzammal Ahmad Chakki 11 100 Awan S/o Fateh Dharokina Kallar 25,000 25,000 Muhammad , Kahar Muhammad Mehboob Kallar Kallar 12 210 4,756 4,756 S/o Muhammad Yaqoob Kahar Kahar Ghulam Muhammad S/o Kallar 13 1853 Bhoun 25,000 25,000 Juma Khan Kahar Kamal Muhammad 14 8728 Khan S/o Fazal Ul Bhoun Kallar 25,000 25,000 Rehman Kahar Ch.Haider Ali S/o Riaz 15 462 Hattar 25,000 25,000 Ahmad DO 16 2217 Ayub Khan S/o Sher Dil Khandoa DO 25,000 25,000 Basti Muhamad Ehsan Malik Khokhar 17 3185 S/o Muhammad Nishan 25,000 25,000 Bala Malik Khairpur, DO 106 Sr Expenditure Total . Khasr Name of Chairman Installments (Rs) Mauza Tehsil Expenditur N a No. WUA 2nd 3rd e (Rs.) o Ch.Tayyab Zaman S/o 18 516 Bhoun 25,000 25,000 Ch.Shair Zaman DO Rizwan Shabbir s/o 19 6624 Bhoun 8,570 8,570 Ghulam Shabbir DO Muhammad Sabd-e-Gul Chak 20 1819 50,000 25,000 75,000 S/o Gulzar Hussain Kharak Chakwal Ch. Habib Sultan S/o 21 1346 Parhal 50,000 25,000 75,000 Muhammad Khan Chakwal Muhammad Ajayb S/o 22 1240 Bhalla 50,000 25,000 75,000 Khizar Hayat Chakwal Ch. Ghulam Akber S/o 23 1504 Mureed 50,000 25,000 75,000 Ch. Ghulam Hussain Chakwal Sajjad Hussain S/o Fida 24 1006 Hasola 50,000 25,000 75,000 Hussain Chakwal Bidhar Mian Muhammad S/o 25 1405 Tehsil Talagan 25,000 25,000 Sher Zaman Talagang g Pirha Faiz Ul Rehman S/o Fatihal 26 2044 25,000 25,000 Fateh Khan Tehsil Talagan Talagang g Pirha Allah Ditta S/O Rab Fatihal 27 4225 25,000 25,000 Nawaz Tehsil Talagan Talagang g Sarwer Khan S/o Ajab Talagan 28 182 TM Khan 25,000 25,000 Khan g Muhammad Amin S/o Jabbi Shah Talagan 29 245 25,000 25,000 Fazal Din Dilawer g Farahat Ul Ain W/o Mouza 30 4272 Muhammad Aslam Talagan 25,000 25,000 TM Khan Khan g Chaki Kallar 31 90 Fida Hussain 50,000 50,000 Dharkna Kahar 32 15 Tanweer Hussain Khai DO 50,000 50,000 33 1555 Azher Mehmood Kal Kahar DO 50,000 50,000 Mian Muhammad S/o 34 4219 Laiti 50,000 50,000 Khan Baig Lawa Total 450,000 691,046 1,141,046

107 Annex-P Para-1.2.3.2 Sr. Financial Name of Formation PDP No. Expense Type Expenditure No Year Principal School of 1 2014-15 Employee Related 5,105,150 Nursing, Chakwal 02 2 2015-16 Expenditure 6,037,162 Total: 11,142,312

Sr. Financial Name of Formation PDP No. DDO Code Expenditure No year 1 2012-13 CH 6012 1983029 2 CH 6010 647238 3 CH 6007 667497 4 CH 6006 2379780 5 2013-14 CH 6012 2537892 6 CH 6010 946477 7 CH 6007 918296 8 CH 6006 2662752 ETO, Chakwal 03 9 2014-15 CH 6012 6837728 10 CH 6010 1869936 11 CH 6007 2400800 12 CH 6006 1617632 13 2015-16 CH 6012 2932229 14 CH 6010 856698 15 CH 6007 527346 16 CH 6006 4137830 Total 33,923,160

Sr. Financial Name of Formation PDP No. Expense Type Expenditure No Year Employee Related 02 8,001,482 EDO (Health), Chakwal 1 2015-16 Expenditure Total 8,001,482

108 Annex-Q Para-1.2.3.7 Non verification of GST, DO (OFWM), Chakwal Sales Amount of Total Sr. Khasra tax/FED in Name of famer Mouza pipe without Amoun No. No. ST Mode sales tax (Rs.) t (Rs.) 17% (Rs.) Muhammad Chakwal- 1 Nawaz S/o Sher 1538 214,270 36,426 250,696 Chattal khan Nadeem Iqbal S/o Kalar 2 6602 116,875 19,869 136,744 Ghulam Ali Bhoun Muhammd Iqbal Kalar- 3 381 116,875 19,869 136,744 S/o Shahra Khan Bhoun Bilal Ahmad S/o Chakwal 4 788 214,270 36,426 250,696 Allah Dita Chattal Chakwal- Amir Hayat S/o 5 1092 Chak 194,791 33,114 227,905 Umer Hayat Kharak Muhammad 6 Duraiz S/o Siraj 4430/39 Bhagwal 97,396 16,557 113,953 Khan Talagang- Noor Sultan S/o 7 2774 Tala 116,875 19,869 136,744 Khan Zaman Gharab Noor Muhammad TalagangJ 8 S/o Hayat 3397 abi Shah 254,000 43,180 297,180 Muhammad Dilawer Muhammad Khan Talagang- 9 S/o Muhammad 1162 233,750 39,738 273,488 Jassial Hussain Shah Noor ul Hassan 10 1646 Muhamm 194,791 33,114 227,905 S/o Bahader Khan ad Wali Muhammad Kalar 11 Nawaz S/o Haq 54 Khar- 85,580 14,549 100,129 Nawaz Kallu Haji Lal Khan S/o Talagang- 12 505 194,791 33,114 227,905 Noor Khan Jhali, D.S Bilawal 13 Asif Nawaz 301 194,791 33,114 227,905 tehsil Lawa 109 Sales Amount of Total Sr. Khasra tax/FED in Name of famer Mouza pipe without Amoun No. No. ST Mode sales tax (Rs.) t (Rs.) 17% (Rs.) 2,607,9 Total 2,229,055 378,939 94

Non verification of GST-EDO (Education), Chakwal Sr Name Qt Gross Total Items Date Rate Sales Tax # of Firm y Amount Amount 1 Hafsa internati LED Monitor 160 10390 1,420,854 241546 1,662,400 onal 2 ---do--- LED Monitor 6.05.16 160 10390 1,420,854 241546 1,662,400 3 ---do--- 22929 Inter smart 10 1,959,744 333156 2,292,900 0 board 4 ------do- 6.05.16 22929 complete set 10 1,959,744 333156 2,292,900 -- 0 5 Sicom UPS 10 91,200 912,000 155,040 1,067,040 Traders 6 Sicom 2.06.16 UPS 10 91,200 912,000 155,040 1,067,040 Traders 7 Chaudh 10.04.1 ry 6 Desk Top general 100 40,940 4,094,017 695,982 4,789,999 computer) Order supplier 8 ---do--- Desk Top 18.05.1 60 40,940 2,456,410 417,589 2,874,000 computer) 6 9 ----do--- --do-- AC (Spllit 8 43,589 348,718 59,282 408,000 - 10 Ummar 1.03.16 Computer Comput 160 3,102 496,410 84,390 580,800 chair er 11 -----do-- 14.4.16 ----do--- 80 3,630 248,204 42,192 290,400 - 12 Zahid Computer 4.6.16 160 3,738 511,180 86,901 598,081 Brother table Total 16,740,135 2,845,820 19,585,960

110 Non verification of GST- DO (Sports), Chakwal Amount Amount Inv. Sales Date Item / Vendor excluding including No. Tax GST GST Stationary / Minhas 4,270 726 4996 9424 24.10.2014 Enterprises Stationary / Minhas 11,040 1,877 12917 9423 24.10.2014 Enterprises Misc. items/ Minhas 7,513 1,277 8790 9422 24.10.2014 Enterprises Sports items/ Al Meezan 32,468 5,520 37988 2411 10.02.2014 Associates Sports items/ Al Meezan 69,145 11,755 80900 2318 24.11.2014 Associates Misc. items/ Al Meezan 7,500 1,275 8775 2737 02.02.2015 Associates Stationary / Minhas 11,040 1,877 12917 9593 02.02.2015 Enterprises Sports items/ Al Meezan 85,280 14,498 99778 2271 26.08.2014 Associates Stationary/ Al Meezan 11,050 1,879 12929 3063 13.05.2015 Associates Stationary/ Al Meezan 10,730 1,824 12554 3145 15.06.2015 Associates Stationary/ Al Meezan 13,520 2,298 15818 3146 15.06.2015 Associates Stationary / Minhas 12,885 2,190 15818 91 23.09.2015 Enterprises Stationary / Minhas 9,800 1,666 11466 90 23.09.2015 Enterprises Grand Total 286,241 48,662 335646

111 Non verification of GST- DCO, Chakwal

Value Inv. Sales Value incl. Date Vendor Name Item excl. No. Tax Sale Tax Sale Tax Qutub Shahi Glss , cloth 9 12.7.2015 42,690 7,257 49,947 Traders etc Qutub Shahi 61 17.08.2015 Battery 58,000 9,860 67,860 Traders Qutub Shahi 512 7.2.2015 Battery 58,000 9,860 67,860 Traders Plastic 707 13.01.2016 Rajput Traders basket, tub 20,850 3,545 24,395 etc Friends 421 30.05.2016 Crockery 41,790 7,104 48,894 Enterprises Qutub Shahi UPS 12 1780 18.06.2016 63,250 10,795 74,045 Traders Volt Qutub Shahi 5 6.7.2015 Stationary 76,280 12,968 89,248 Traders Qutub Shahi 33 7.8.2015 Stationary 73,565 12,506 86,071 Traders Qutub Shahi 135 7.9.2015 Stationary 77,140 13,114 90,254 Traders Qutub Shahi 245 7.10.2015 Stationary 85,175 14,480 99,655 Traders Qutub Shahi 373 6.11.2015 Stationary 75,470 12,830 88,300 Traders Qutub Shahi 497 5.12.2016 Stationary 65,430 11,123 76,553 Traders Qutub Shahi 643 6.1.2016 Stationary 68,320 11,614 79,934 Traders Qutub Shahi 874 8.2.2016 Stationary 68,768 11,691 80,459 Traders Qutub Shahi 1194 6.4.2016 Stationary 65,200 11,084 76,284 Traders 939,928 159,831 1,099,759

112 Annex-R Para-1.2.3.8 No of No of Head of License License License Difference Rate License License Fee Fee Fee (Rs) Holders Holders Furniture 2,000 26 52,000 7 14,000 38,000 Mobil Oil Agency 1,000 25 25,000 6 6,000 19,000 Diesel Oil Agency 3,000 85 255,000 28 84,000 171,000 Petrol Pump 7,000 23 161,000 7 49,000 112,000 Timber store/ Tall 500 108 54,000 50 25,000 29,000 Marble Works 5,000 4 20,000 1 5,000 15,000 Gas Agency - LPG(L) 3,000 22 66,000 8 24,000 42,000 Bricks Agency/ Bhatta 3,000 71 213,000 16 48,000 165,000 Gas Agency - LPG(S) 1,000 68 68,000 15 15,000 53,000 Printing Press 10,000 1 10,000 0 - 10,000 Cement by products 5,000 15 75,000 3 15,000 60,000 Textile Mills 30,000 1 30,000 1 30,000 0 Total 449 1,029,000 142 315,000 714,000

113 Annex-S Para-1.2.4.2 Sr. PDP Amount Name of DDO Nature of Overpayment No. No (Rs) 1 DO Sports 03 Conveyance Allowance 130,000 2 DO Sports 04 HRA 27,288 3 Zila Council Chakwal 13 Conveyance Allowance 42,840 4 MS DHQ Chakwal 09 5% House Rent 24,888 5 MS DHQ Chakwal 10 Conveyance Allowance 162,840 6 MS City Hospital, Talagang 9 Conveyance Allowance 25,000 7 SMO RHC Pir Pullahi 02 Adhoc Relief Allowance 2010 381,240 8 SMO RHC Pir Pullahi 06 Special Increment 93,500 9 SMO RHC Pir Pullahi 09 Conveyance Allowance leave 22,918 10 SMO RHC Pir Pullahi 10 SSB 30% 21,000 11 SMO RHC Pir Pullahi Dress Allowance leave 3,100 16 12 SMO RHC Pir Pullahi Mess Allowance leave 8,000 13 Principal Nursing School 13 Conveyance Allowance leave 17,735 14 Principal Nursing School Dress Allowance leave 5,970 14 15 Principal Nursing School Mess Allowance leave 16,883 16 SMO RHC Buchal Kalan 05 SSB 30% 133,860 10 Conveyance Allowance during 17 SMO RHC Buchal Kalan 27,856 leave 18 THQ Hospital Talagang 10 SSB 30% 47,250 19 MS THQ Talagang 11 Conveyance Allowance 15,000 20 SMO RHC Jhatla 09 Conveyance Allowance 5,000 21 SMO RHC Dhudhial 07 HSRA 555,752 22 SMO RHC Dhudhial 08 Mess Allowance during leave 131,467 08 Adhoc Relief Allowance 2011 23 SMO RHC Lawa 8,500 & 2012 11 Conveyance Allowance during 24 SMO RHC Tamman 7,835 leave 10 Adhoc Relief Allowance 2011 25 MS THQ Chua Saidan Shah 58,079 &2012 26 MS THQ Chua Saidan Shah HSRA 65,448 27 MS DHQ Hospital, Chakwal 13 Penal Rent 896,184 Mess Allowance during leave 296,484 28 MS DHQ Hospital, Chakwal 14 Conveyance Allowance during 228,436 leave Total 3,460,353

114 Annex-T Para-1.2.4.3 (Amount in Rs.) Rate Total Amount Sr. Name of Doctor Designation Per Period drawn during No Month 2015-16 1 Mustajab haider Consultant 2015-16 15,000 180,000 Physician 2 Saira Gul WMO 6,000 2015-16 72,000 3 Ali amir habib Anesthetist 2015-16 15,000 180,000 najaf 4 Arooj Khalid Dental Surgeon 6,000 2015-16 72,000 5 Farooq Afzal Opthalogist AFIO 15,000 2015-16 180,000 6 Umair Mehmood Chief Pathologist 15,000 2015-16 180,000 7 Asif Hayat Dental Surgeon 2015-16 8,000 96,000 Ganjua 8 Zafar Abbas Radiologist 23,000 2015-16 276,000 9 Syed Iqrar Surgeon 2015-16 15,000 180,000 Hussain 10 Dr.Amjad Anesthetist 2015-16 23,000 276,000 Hussain 11 Abida Yasmeen Gynecologist 15,000 2015-16 180,000 Total 1,872,000

115 Annex-U Para-1.2.4.4 Amount Name of Office PDP No. Nature of recovery (Rs) THQ Talagang 12 Income tax 6,210 RHC Kot Kazi 9 Income tax 5,699 DO (Livestock) 9 Purchee fee 9,673 DO (Livestock) 6 GST 259,284 EDO Education 5 GST 43,350 EDO Health 7 Income tax 4,428 City Hospital Talagang 8 GST 93,054 City Hospital Talagang 9 Income tax 31,543 SMO RHC Lawa 5 MLC fee 8,100 SMO RHC Lawa 7 Ambulance fee 6,124 SMO RHC Tamman 7 Misc, fees 3,588 SMO RHC Tamman 11 MLC fee 990 MS THQ Chua Saidan Shah 9 Fixer sale proceeds 2,450 MS THQ Chua Saidan Shah 17 X-Ray Fee 1,558 DO Roads Chakwal 13 Rent of approach road 225,000 Auction proceeds amount DCO Taxation Branch Chakwal 16 900,000 of Garden Grand Total 1,601,051

116 Annex-V Para-1.2.4.5 Rate of Sr. Name of Financial Amount Months Conveyance No Vaccinator Year (Rs) Allowance 1 Abdul Qayyum 2015-16 12 1,932 23,184 2 Abdul Rehman 2015-16 12 1,932 23,184 3 Abdul Wahid 2015-16 12 1,932 23,184 4 Abrar Hussain 2015-16 12 1,932 23,184 5 Adnan Roshin 2015-16 12 1,932 23,184 6 Aftab Ahmed 2015-16 12 1,932 23,184 7 Akhtar Parvaiz 2015-16 12 1,932 23,184 8 Amir Bashir 2015-16 12 1,932 23,184 9 Amjid Hussain 2015-16 12 1,932 23,184 10 Ansar Zaman 2015-16 12 1,932 23,184 11 Aqeel Ahmed 2015-16 12 1,932 23,184 12 Arshad Mehmood 2015-16 12 1,932 23,184 13 Asad Abbas 2015-16 12 1,932 23,184 14 Asif Iqbal 2015-16 12 1,932 23,184 15 Asif Nazir 2015-16 12 1,932 23,184 16 Asmat Kamal 2015-16 12 1,932 23,184 17 Azhar Abbas 2015-16 12 1,932 23,184 18 Azhar Ali 2015-16 12 1,932 23,184 19 Aziz Ahmed 2015-16 12 1,932 23,184 20 Ehsan ur Rehman 2015-16 12 1,932 23,184 21 Ejaz Hussain 2015-16 12 1,932 23,184 22 Ghulam Mustafa 2015-16 12 1,932 23,184 23 Gulnaz Khan 2015-16 12 1,932 23,184 24 Gulsher Khan 2015-16 12 1,932 23,184 25 Hayat Muhammad 2015-16 12 1,932 23,184 26 Javed Sultan 2015-16 12 1,932 23,184 27 Khalil ur Rehman 2015-16 12 1,932 23,184 28 Liaqat Ali 2015-16 12 1,932 23,184 29 Liaquat Hussain 2015-16 12 1,932 23,184 30 Manzoor Hussain 2015-16 12 1,932 23,184 31 Masood Iqbal 2015-16 12 1,932 23,184 32 Matloob Hussain 2015-16 12 1,932 23,184 33 Muhammad Akram 2015-16 12 1,932 23,184 34 M. Asghar Shahzad 2015-16 12 1,932 23,184 35 Muhammad Ayub 2015-16 12 1,932 23,184 36 M. Azeem 2015-16 12 1,932 23,184 37 Muhammad Bashir 2015-16 12 1,932 23,184 117 Rate of Sr. Name of Financial Amount Months Conveyance No Vaccinator Year (Rs) Allowance 38 M. Suleman 2015-16 12 1,932 23,184 39 Muhammad Saleem 2015-16 12 1,932 23,184 40 Nasir Ahmed 2015-16 12 1,932 23,184 41 Nasir Mehmood 2015-16 12 1,932 23,184 42 Rana M. Anwar 2015-16 12 1,932 23,184 43 Saad Ullah 2015-16 12 1,932 23,184 44 Saleem Iqbal 2015-16 12 1,932 23,184 45 Shamas Abbas 2015-16 12 1,932 23,184 46 Tahir Abbas 2015-16 12 1,932 23,184 47 Tajjammal Hussain 2015-16 12 1,932 23,184 48 Tariq Mehmood 2015-16 12 1,932 23,184 49 Wajid Maqbool 2015-16 12 1,932 23,184 50 Wasim Un Din 2015-16 12 1,932 23,184 51 Zafar Iqbal 2015-16 12 1,932 23,184 52 Zahoor Ahmed 2015-16 12 1,932 23,184 53 Zawar Hussain 2015-16 12 1,932 23,184 54 Zubair Abbas 2015-16 12 1,932 23,184 55 Arshad Ali 2015-16 12 1,932 23,184 Total 1,275,120

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