AUDIT REPORT ON THE ACCOUNTS OF CHIEF OFFICER, DISTRICT COUNCIL, MUNICIPAL CORPORATION/COMMITTEES & TOWN COMMITTEES SUKKUR DIVISION AUDIT YEAR 2014-15 AUDITOR-GENERAL OF PAKISTAN TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS .......................................................................... i PREFACE ......................................................................................................................... iii EXECUTIVE SUMMARY ............................................................................................. iv SUMMARY TABLES & CHARTS .............................................................................. vii Table 1: Audit Work Statistics .................................................................................. vii Table 2: Audit Observations Classified by Categories ............................................ vii Table 3: Outcome Statistics........................................................................................... i Table 4: Irregularities Pointed Out .............................................................................. i CHAPTER-I ...................................................................................................................... 1 DISTRICT SUKKUR ....................................................................................................... 1 1.1.1 INTRODUCTION .............................................................................................. 1 1.1.2.1 Comments on Budget and Accounts (Variance Analysis) .............................. 2 1.1.3 Brief Comments on the Status of Compliance with PAC Directives ................. 3 AUDIT PARAS .............................................................................................................. 4 DISTRICT NAUSHAHRO FEROZE ........................................................................... 27 1.2.4.1 INTRODUCTION ........................................................................................ 27 1.2.4.2 Comments on Budget and Accounts (Variance Analysis) ............................ 28 1.2.4.3 Brief Comments on the Status of Compliance with PAC Directives ........... 29 AUDIT PARAS ............................................................................................................ 30 DISTRICT KHAIRPUR ................................................................................................ 39 1.2.8.1 INTRODUCTION ....................................................................................... 39 1.2.8.2 Comments on Budget and Accounts (Variance Analysis) ........................... 40 1.2.8.3 Brief Comments on the Status of Compliance with PAC Directives ........... 41 AUDIT PARAS ............................................................................................................ 42 DISTRICT GHOTKI...................................................................................................... 54 1.2.11.1 INTRODUCTION ........................................................................................ 54 1.2.11.2 Comments on Budget and Accounts (Variance Analysis) ............................ 55 1.2.11.3 Brief Comments on the Status of Compliance with PAC Directives ........... 56 AUDIT PARAS ............................................................................................................ 57 ANNEXURES .................................................................................................................. 69 I. Memorandum for departmental accounts Committee (MFDAC) ...................... 70 i. Part-i Paras related to current Audit Year 2014-15 ...................................... 70 ii. Part-ii Paras related to previous Audit Year 2013-14 ................................... 74 II. Audit Impact Summary ...................................................................................... 75 III. Suspected Embezzlement on account of cash payment without details ............ 77 IV. Non-Production of Record ................................................................................. 78 V. Non-achievement of targeted receipts ............................................................... 78 VI. Award of work without observing of prescribed response time ........................ 79 VII. Technical sanction in violation of financial powers .......................................... 80 VIII. Irregular expenditure without inviting tender ................................................... 81 IX. Details of purchase of POL ............................................................................... 90 X. Splitting works in parts to avoid tenders........................................................... 91 XI. Non deduction of Sales Tax .............................................................................. 98 XII. Un-justified award of work prior to approval of Technical Sanction ............... 98 XIII. Un-authorized utilization of security deposit .................................................... 99 XIV. Unauthorized payment due to excess execution of items of works beyond permissible limit.............................................................................................................. 100 XV. Un-authorized payment of house rent allowance along with accommodation 101 XVI. Un-justified award of extra premium than permissible limit .......................... 103 XVII. Non-removal of illegal encroachment from limits of municipal committee .. 104 XVIII. Non-Production of Record (partial) ................................................................ 105 XIX. Details of POL consumption ........................................................................... 105 XX. Split of Work to avoid tender.......................................................................... 106 XXI. Non-recovery of Outstanding dues ................................................................. 119 XXII. Details of non-accountal in Relevant Stock Register ..................................... 121 XXIII. Details of payments through open cheques .................................................... 126 XXIV. Illegal occupations Govt property ................................................................... 128 XXV. Non-Production of Record .............................................................................. 129 XXVI. Detail of Transfer of Amount from one A/c to another A/c ........................... 130 XXVII. Unauthorized cash payment............................................................................. 133 XXVIII. Irregular award of work without Sanction of contract agreement .................. 134 XXIX. Details of POL consumption without maintaining Log Book ........................ 137 XXX. Non-achievement of targeted receipts ............................................................ 137 XXXI. Splitting up of work orders to avoid calling tender ........................................ 138 XXXII. Un-authorized Expenditure incurred without calling tender .......................... 139 XXXIII. Detail of Non Production of Record .............................................................. 139 XXXIV. Payment of bills without pre-audit ................................................................. 140 XXXV. Splitting of work to avoid tender .................................................................... 141 XXXVI. Non-Achievement of Targeted Receipts ........................................................ 157 XXXVII. Transgression of financial powers ................................................................. 158 XXXVIII. Non-transparency in public spending ............................................................ 160 ii XXXIX. Purchases with-out Constitution of Purchase Committee ............................... 160 XL. Irregular expenditure without inviting tender ................................................. 161 XLI. Details of less-deposit of income tax into Govt. treasury ............................... 163 XLII. Doubtful payment on account of installation of solar energy street lights ..... 163 XLIII. Irregular payment through Open Cheques ...................................................... 164 XLIV. Non-deduction of sales tax .............................................................................. 165 iii ABBREVIATIONS AND ACRONYMS ADP Annual Development Programme CC Cement Concrete CMA Constitutional Miscellaneous Application CCB Citizen Community Board CMO Chief Municipal Officer CPWD Central Public Works Department CTR Central Treasury Rules DAC Departmental Accounts Committee DGA Director General Audit FD Finance Department M&R Maintenance & Repair MFDAC Memorandum for Departmental Accounts Committee NIT Notice Inviting Tender NBP National Bank of Pakistan NSUSC North Sindh Urban Services Corporation NTN National Tax Number NIT Notice Inviting Tender PAC Public Accounts Committee PAO Principal Accounting Officer POL Petroleum Oil and Lubricants PWD Public Works Department S&GAD Services and General Administration Department SBP Sindh Bank Pakistan/ State Bank of Pakistan SAMA Services and Assets Management Agreement. SFR Sindh Financial Rules SLGO Sindh Local Government Ordinance SPPRA Sindh Public Procurement Regulatory Authority SRO Statutory Rules and Orders TMA Taluka / Town Municipal Administration TMO Taluka / Town Municipal Officer TO (F) Taluka/Town Officer (Finance) TO (I&S) Taluka/Town Officer (Infrastructure & Services) TO (P&C) Taluka/Town Officer (Planning & Coordination) TO (R) Taluka/Town Officer (Regulation)