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Audit Report on the Accounts of District Government Jhelum

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Audit Report on the Accounts of District Government Jhelum AUDIT REPORT ON THE ACCOUNTS OF DISTRICT GOVERNMENT JHELUM AUDIT YEAR 2016-17 AUDITOR GENERAL OF PAKISTAN TABLE OF CONTENTS ABBREVIATIONS & ACRONYMS .................................................................................................... I PREFACE ....................................................................................................................................... III EXECUTIVE SUMMARY ................................................................................................................ IV SUMMARY TABLES & CHARTS ................................................................................................... IX TABLE 1: AUDIT WORK STATISTICS .......................................................................................... IX TABLE 2: AUDIT OBSERVATIONS REGARDING FINANCIAL MANAGEMENT ....................... IX TABLE3: OUTCOME STATISTICS ................................................................................................... X TABLE4: IRREGULARITIES POINTED OUT ................................................................................. XI TABLE 5 COST BENEFIT ............................................................................................................... XI CHAPTER 1 ........................................................................................................................................1 1.1 DISTRICT GOVERNMENT, JHELUM ......................................................................................1 1.1.1 INTRODUCTION OF DEPARTMENTS ....................................................................................1 1.1.2 COMMENTS ON BUDGET AND ACCOUNTS (VARIANCE ANALYSIS) ..............................1 1.1.3 BRIEF COMMENTS ON THE STATUS OF COMPLIANCE ON MFDAC PARAS OF AUDIT YEAR 2015-16 ........................................................................................................................4 1.1.4 BRIEF COMMENTS ON THE STATUS OF COMPLIANCE WITH PAC DIRECTIVES ......................................................................................................................................5 1.2 AUDIT PARAS ..........................................................................................................................6 1.2.1 NON-PRODUCTION OF RECORD ...........................................................................................7 1.2.2 IRREGULARITY &NON COMPLIANCE OF RULES ............................................................. 10 1.2.3 PERFORMANCE ..................................................................................................................... 36 1.2.4 WEAK INTERNAL CONTROL ............................................................................................... 47 ANNEXES ....................................................................................................................................... 65 ANNEX-A ....................................................................................................................................... 66 ANNEX-B ....................................................................................................................................... 71 ANNEX-C ....................................................................................................................................... 72 ANNEX-D ....................................................................................................................................... 73 ANNEX-E ....................................................................................................................................... 76 ANNEX-F ....................................................................................................................................... 78 ANNEX-G ....................................................................................................................................... 81 ANNEX-H ....................................................................................................................................... 83 ABBREVIATIONS & ACRONYMS B&R Building & Road BHU Basic Health Unit DAC Departmental Accounts Committee DAO District Accounts Office DCO District Coordination officer DDO Drawing and Disbursing Officer DHQ District Headquarters DO District Officer DPC Damp Proof Course DTL Drug Testing Lab EDO Executive District Officer FD Finance Department F&P Finance and Planning GBHS Government Boys High School GGHS Government Girls High School HRA House Rent Allowance HSRA Health Sector Reform Allowance LG & CD Local Government & Community Development LP Local Purchase MRS Market Rates Schedules MS Medical Superintendent NPA Non Practicing Allowance OFWM On-Farm Water Management PAO Principal Accounting Officer PFR Punjab Financial Rules i PLGO Punjab Local Government Ordinance POL Petroleum Oil and Lubricants PPPRA Punjab Public Procurement Regulatory Authority RHC Rural Health Center SDA Special Drawing Account SMC School Management Council SMO Senior Medical Officer THQ Tehsil Headquarters TS Technical Sanction W&S Works and Services ii PREFACE Articles 169 and 170 of the Constitution of the Islamic Republic of Pakistan, 1973 read with Section 115 of the Punjab Local Government Ordinance 2001, require the Auditor General of Pakistan to audit the accounts of the Provincial Governments and the accounts of any authority or body established by, or under the control of the Provincial Government. Accordingly, the audit of all receipts and expenditure of the District Government Fund and Public Account of District Government is the responsibility of the Auditor General of Pakistan The report is based on audit of the accounts of various offices of the District Government, Jhelum for the financial year 2015-16 The Directorate General of Audit District Governments Punjab (North), Lahore conducted audit during 2016-17 on test check basis with a view to reporting significant findings to the relevant stakeholders. The main body of the Audit Report includes only the systemic issues and audit findings carrying value of Rs 1.00 million or more. Relatively less significant issues are listed in the Annex-A of the Audit Report. The Audit observations listed in the Annex-A shall be pursued with the Principal Accounting Officer at the DAC level. In all cases where the Principal Accounting Officer does not initiate appropriate action, the audit observations will brought to the notice of PAC through next year audit report The audit results indicate the need for adherence to the regularity framework besides instituting and strengthening internal controls to prevent recurrence of such violations and irregularities. The observations included in this Report have been finalized in the light of written responses and discussion in DAC meetings. 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 ,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 Administrations 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 1,292 man-days and the annual budget of Rs 18.063 million for the financial year 2015-16. It has mandate to conduct Financial Attest, Regularity Audit and Compliance with Authority & Performance Audit of entire expenditure including programs/projects & receipts. Accordingly, Regional Directorate of Audit Rawalpindi carried out audit of the accounts of various offices of the District Government, Jhelum for the financial years 2015-16. District Government Jhelum 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 iv 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, Jhelum 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, there was no leakage of revenue in the Government Account / Local Fund. a. Scope of Audit Total expenditure of the District Government Jhelum for the financial year 2015-16 was Rs 4,104.123 million covering 402 formations. Out of this DG District Audit (N) Punjab audited an expenditure of Rs 1,621.863million which
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