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Auditor General of Pakistan AUDIT REPORT ON THE ACCOUNTS OF LOCAL GOVERNMENTS DISTRICT MANSEHRA AUDIT YEAR 2018-19 AUDITOR GENERAL OF PAKISTAN TABLE OF CONTENTS Preface ......................................................................................................................... ii EXECUTIVE SUMMARY ......................................................................................... iii SUMMARY TABLES & CHARTS ........................................................................... vii I: Audit Work Statistics .............................................................................................. vii II: Audit observations Classified by Categories .......................................................... vii III: Outcome Statistics .............................................................................................. viii IV: Table of Irregularities pointed out ......................................................................... ix V: Cost Benefit Ratio .................................................................................................. ix CHAPTER-1 ............................................................................................................... 1 1.1 Local Governments Mansehra .......................................................................... 1 1.1.1 Introduction ................................................................................................... 1 1.1.2 Comments on Budget and Accounts (Variance Analysis) .............................. 5 1.1.3 Comments on the status of compliance with DAC / TAC Directives .............. 8 1.2 DISTRICT GOVERNMENT ......................................................................... 9 1.2.1 Mis-appropriation and Fraud ........................................................................ 10 1.2.2 Irregularity/Non-compliance ........................................................................ 12 1.2.3 Internal Control Weaknesses ........................................................................ 23 1.3 TMAs Mansehra/Balakot/Oghi ..................................................................... 46 1.3.1 Irregularity/Non-compliance ........................................................................ 46 1.3.2 Internal Control Weaknesses ........................................................................ 58 1.4 AD LG E&RDD & VCs/NCs MANSEHRA................................................. 82 1.4.1 Irregularity/Non-compliance ....................................................................... 82 1.4.2 Internal Control Weaknesses ........................................................................ 86 1.5 Mansehra Development Authority .................................................................... 95 1.5.1 Irregularity/Non-compliance ........................................................................ 95 1.5.2 Internal Control Weaknesses ....................................................................... 106 ANNEXURES .......................................................................................................... 116 Annex-1 MFDAC ..................................................................................................... 116 Annex-02 Detail of misappropriated amount ............................................................. 122 Annex-03 List of Non Supply Medicines .................................................................. 123 Annex-04 DETAIL OF BPS WISE SANCTION POSTs IN GOVT:BOYS MIDDLE SCHOOLs ................................................................................................ 124 Annex-05 Detail of unauthorized payment of House Rent Allowance and Conveyance Allowance ............................................................................................. 125 Annex-06 Detail of wasteful expenditure on account of pay and allowances ............. 127 Annex-07 Detail of less deposit of Government share ............................................... 129 Annex-08 Detail of unauthorized payment of HPA and conveyance allowance during leave .............................................................................................................. 130 Annex-09 Detail of non deposit of receipts by incharge Shino Trout Hatchery Kaghan ..................................................................................................................... 132 Annex-10 Detail of defaulter co-operative societies District Mansehra ...................... 134 Annex-11 Details of advances out of TMA funds ...................................................... 139 Annex-12 ................................................................................................................. 141 Annex-13 Detail of penalty ....................................................................................... 142 Annex-14 Detail of Sales Tax .................................................................................. 153 Annex-15 Detail of Penalty ...................................................................................... 156 Annex-16 Detail of Repair work .............................................................................. 168 Annex-17 Detail of expenditure of Sports, Youth and Women Development Allocation ................................................................................................................. 169 Annex-18 Detail of penalty ....................................................................................... 171 Annex-19 Detail of works ........................................................................................ 186 Annex-20 Detail of penalty ....................................................................................... 197 Annex-21 Detail of Scheme ..................................................................................... 217 Annex-23 Detail of Ecological Balances ................................................................. 234 Annex-24 .................................................................................................................. 236 Annex 25 Detail of payment in excess of Approved cost ........................................... 237 Annex 26 ................................................................................................................. 239 Annex 27 Detail of unauthorized and irreg. execution of works ................................ 241 Annex 28 Detail of overpayment due to higher rates ................................................. 242 Annex 29 Detail of income tax deducted during 2012-14 .......................................... 244 Annex-30 Detail of advances made by MDA during 2012-14 ................................... 246 Annex-31 Detaial of Bank account ............................................................................ 247 ABBREVIATIONS AND ACRONYMS AA Administrative Approval AD Assistant Director ADP Annual Development Plan AIR Audit and Inspection Report AG Accountant General BHUs Basic Health Units C&W Communication & Works CPWA Code Central Public Works Account Code CPWD Code Central Public Works Department Code CRC Classroom Consumables DAC Departmental Accounts Committee DEO District Education Officer DHO District Health Officer DO District Officer GFR General Financial Rules LGA Local Government Act LGE&RDD Local Government Election & Rural Dev Department MCC Medical Coordination Cell MFDAC Memorandum for Departmental Accounts Committee M&R Maintenance and Repair NOC No Objection Certificate PAC Public Accounts Committee PAO Principal Accounting Officer SDEO Sub Divisional Educational Officer SIDB Small Industries Development Board TMA Tehsil Municipal Administration TS Technical Sanction VCs/NCs Village Council/Neighborhood Council ZAC Zilla Accounts Committee i Preface Articles 169 and 170 of the Constitution of the Islamic Republic of Pakistan, 1973 read with Sections-8 and 12 of the Auditor General’s (Functions, Powers and Terms and Conditions of Service) Ordinance, 2001 and Section-37 of Khyber Pakhtunkhwa Local Government Act 2013 require the Auditor General of Pakistan to conduct audit of the receipts and expenditure of Local Governments of each District of the Khyber Pakhtunkhwa. The report is based on audit of the accounts of various Local Governments i.e. offices of District Government, Tehsil Municipal Administrations, Assistant Director Local Government Elections and Rural Development, Village Councils and Neighborhood Councils and Development Authorities in district Mansehra for the financial year 2017-18. The Director General of Audit, District Governments, Khyber Pakhtunkhwa conducted audit during 2018-19 on test check basis with a view to report significant findings to the relevant stakeholders. The main body of the audit report includes the systemic issues and significant audit findings. Relatively less significant issues are listed in the Annex-1 of the Audit Report. The audit observations listed in the Annex-1 shall be pursued with the Principal Accounting Officers at the DAC level. In all cases where PAO’s do not initiate appropriate action, the audit observations will be brought to the notice of appropriate forum through the next year’s Audit Report. Audit findings indicate the need for adherence to the regularity framework besides instituting and strengthening internal controls to avoid recurrence of similar violations and irregularities. The observations included in this Report have been finalized in the light of written replies of the departments, except in few cases mentioned
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