AUDIT REPORT ON THE ACCOUNTS OF CITY DISTRICT GOVERNMENT RAWALPINDI AUDIT YEAR 2017-18 AUDITOR GENERAL OF PAKISTAN TABLE OF CONTENTS ABBREVIATIONS & ACRONYMS .......................................................................................... I PREFACE ................................................................................................................................ III EXECUTIVE SUMMARY ...................................................................................................... IV SUMMARY TABLE & CHARTS........................................................................................... VII TABLE 1: AUDIT WORK STATISTICS ................................................................................ VII TABLE 2: AUDIT OBSERVATIONS..................................................................................... VII TABLE 3: OUTCOME STATISTICS ..................................................................................... VII TABLE 4: IRREGULARITIES POINTED OUT .................................................................... VIII TABLE 5: COST BENEFIT ................................................................................................... VIII CHAPTER 1 ...............................................................................................................................1 1.1 CITY DISTRICT GOVERNMENT, RAWALPINDI ....................................................1 1.1.1 INTRODUCTION OF DEPARTMENTS .....................................................................1 1.1.4 BRIEF COMMENTS ON THE STATUS OF COMPLIANCE WITH PAC DIRECTIVES ..............................................................................................................4 1.2.1 NON-PRODUCTION OF RECORD ...........................................................................6 1.2.2 IRREGULARITY & NON-COMPLIANCE ................................................................7 1.2.3 PERFORMANCE ..................................................................................................... 37 1.2.4 WEAK INTERNAL CONTROLS ............................................................................. 39 ANNEXURES .......................................................................................................................... 49 ANNEXURE-A ........................................................................................................................ 50 ANNEXURE-B ........................................................................................................................ 62 ANNEXURE-C ........................................................................................................................ 63 ANNEXURE-D ........................................................................................................................ 65 ANNEXURE-E ........................................................................................................................ 67 ANNEXURE-F......................................................................................................................... 74 ANNEXURE-G ........................................................................................................................ 75 ANNEXURE-H ........................................................................................................................ 85 ANNEXURE-I ......................................................................................................................... 86 ANNEXURE-J ......................................................................................................................... 89 ANNEXURE-K ........................................................................................................................ 90 ANNEXURE-L ........................................................................................................................ 91 ANNEXURE-M ....................................................................................................................... 92 ANNEXURE-N ........................................................................................................................ 93 ANNEXURE-O ........................................................................................................................ 99 ANNEXURE-P....................................................................................................................... 100 ANNEXURE-Q ...................................................................................................................... 109 ANNEXURE-R ...................................................................................................................... 123 ANNEXURE-S....................................................................................................................... 125 ANNEXURE-T ...................................................................................................................... 132 ANNEXURE-U ...................................................................................................................... 133 ANNEXURE-V ...................................................................................................................... 142 ABBREVIATIONS & ACRONYMS AC Assistant Commissioner ADLG Assistant Director Local Government AEO Assistant Education Officer B&R Building & Road BHU Basic Health Unit CA Conveyance Allowance CCB citizen Community Board CCTV Close Circle Television CD Community Development CDG City District Government CMH Combined Military Hospital DAC Departmental Accounts Committee DAO District Accounts Officer DCO District Coordination officer DDO Drawing and Disbursing Officer DEO (EE-M) District Education Officer (Elementary Education-Male) DEO (EE-W) District Education Officer (Elementary Education-Women) DGA Director General Audit DO District Officer DOH District Officer Health DHQ District Headquarters DTL Drug Test Lab EDO Executive District Officer FD Finance Department FIR First Investigation Report FTF Frogh-e-Taleem Fund F&P Finance and Planning HUD & PHE Housing, Urban Development & Public Health Engineering HPA Health Professional Allowance HRA House Rent Allowance HSRA Health Sector Reform Allowance LCS Local Council Service MB Measurement Book MEA Monitoring and Evaluation Assistant MFDAC Memorandum for Departmental Accounts Committee MS Medical Superintendent NIDA National Investment Daily Account NOC No Objection Certificate NSB Non salary Budget OFWM On Form Water Management i PAC Public Accounts Committee PAO Principal Accounting Officer PFR Punjab Financial Rules PDG Punjab District Government PHC Primary Health Center PLGO Punjab Local Government Ordinance POL Petroleum Oil and Lubricants PPPRA Punjab Public Procurement Regulatory Authority PST Primary School Teacher RDA Rawalpindi Development Authority RHC Rural Health Center S&GAD Services & General Administration Department SDA Special Drawing Account SMC School Management Council SMO Senior Medical Officer SSB Social Security Benefit THQ Tehsil Headquarters TMA Town Municipal Administration VIP Very Important Persons WASA Water And Sewer Authority W&S Works and Services ii PREFACE Articles 169 and 170 of the Constitution of the Islamic Republic of Pakistan, 1973 and section 8 and 12 of AGP’s Ordinance 2001 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 shall be conducted by the Auditor General of Pakistan. Accordingly, the audit of all receipts and expenditure 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 City District Government, Rawalpindi for the Financial Year 2016-17. The Directorate General of Audit District Governments Punjab (North), Lahore conducted audit during 2017-18 on test check basis with a view to reporting significant findings to the relevant stakeholder. The main body of the Audit Report includes only the systemic issues and audit observations of serious nature. 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 after issuing three reminders for written responses of management and holding of DAC meetings, no response was received till the finalization of this report. 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 (Javaid Jehangir) 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,