AUDIT REPORT ON THE ACCOUNTS OF TOWN MUNICIPAL ADMINISTRATIONS CITY DISTRICT MULTAN AUDIT YEAR 2015-16 AUDITOR GENERAL OF PAKISTAN TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS ....................................................................... i PREFACE ......................................................................................................................iii EXECUTIVE SUMMARY ........................................................................................... iv SUMMARY TABLES AND CHARTS .....................................................................viii Table 1: Audit Work Statistics ..................................................................................................... viii Table 2: Audit observations regarding Financial Management ................................................ viii Table 3: Outcome Statistics ............................................................................................................ ix Table 4: Irregularities Pointed Out .................................................................................................. x Table 5: Cost–Benefit ....................................................................................................................... x CHAPTER-1 ................................................................................................................... 1 1.1 Town Municipal Administrations, City District Multan .................................................. 1 1.1.1 Introduction ........................................................................................................................... 1 1.1.2 Comments on Budget and Accounts .................................................................................. 1 1.1.3 Brief Comments on the Status of Compliance of MFDAC Audit Paras of Audit Report 2014-15 .................. 3 1.1.4 Brief Comments on the Status of Compliance with PAC Directives .............................. 3 AUDIT PARAS ............................................................................................................................... 4 1.2 Town Municipal Administration, Bosan Town ................................................................. 5 1.3 Town Municipal Administration, Musa Pak ................................................................... 25 1.4 Town Municipal Administration, Sher Shah ................................................................... 37 1.5 Town Municipal Administration, Shah Rukn-E-Alam .................................................. 45 1.6 Town Municipal Administration, Jalalpur Pirwala ......................................................... 62 1.7 Town Municipal Administration, Shujabad ..................................................................... 72 Annex ................................................................................................................................. 87 Annex–A ........................................................................................................................ 88 Annex-B ....................................................................................................................... 105 Annex-C ....................................................................................................................... 107 Annex-D ....................................................................................................................... 109 Annex-E ....................................................................................................................... 110 Annex-F ........................................................................................................................ 112 Annex-G ....................................................................................................................... 114 Annex-H ....................................................................................................................... 117 Annex-I ......................................................................................................................... 119 Annex-J ........................................................................................................................ 121 Annex-K ....................................................................................................................... 124 Annex-L ....................................................................................................................... 128 Annex-M ...................................................................................................................... 132 Annex-N ....................................................................................................................... 134 Annex-O ....................................................................................................................... 136 Annex-P ........................................................................................................................ 137 Annex-Q ....................................................................................................................... 138 Annex-R ....................................................................................................................... 139 Annex-S ........................................................................................................................ 140 Annex-T ....................................................................................................................... 142 Annex-U ....................................................................................................................... 144 Annex-V ....................................................................................................................... 145 Annex-W ...................................................................................................................... 146 Annex-X ....................................................................................................................... 148 Annex-Y ....................................................................................................................... 149 Annex-Z ....................................................................................................................... 151 Annex-AA .................................................................................................................... 153 Annex-AB .................................................................................................................... 154 Annex-AC .................................................................................................................... 155 Annex-AD .................................................................................................................... 156 Annex-AE ..................................................................................................................... 158 ABBREVIATIONS AND ACRONYMS ADP Annual Development Programme APR Actual Payee’s Receipt BCR Budget Control Register CCB Citizen Community Board CCTV Close Circuit Television CPWA Central Public Works Account DAC Departmental Accounts Committee DGA Director General Audit FD Finance Department FIR First Information Report IPSAS International Public Sector Accounting Standards IP Immovable Property IPT Immovable Property Tax LG&CD Local Government & Community Development MEPCO Multan Electric Power Company MFDAC Memorandum for Departmental Accounts Committee NAM New Accounting Model NOC No Objection Certificate PAC Public Accounts Committee PCC Portland Cement Concrete PDG Punjab District Government PDSSP Punjab Devolved Social Services Program PFC Provincial Finance Commission P/F Providing/Fixing PLGO Punjab Local Government Ordinance POL Petrol Oil Lubricants PPRA Punjab Procurement Regulatory Authority PTCL Pakistan Telecommunication Company Limited RB Ramzan Bazar S ft Square feet TA Travelling Allowance i TAC Town Accounts Committee TMA Town Municipal Administration TMO Town Municipal Officer TO (F) Town Officer (Finance) TO (I&S) Town Officer (Infrastructure & Services) TO (P&C) Town Officer (Planning & Coordination) TO (R) Town Officer (Regulations) TS Technical Sanction TTIP Tax on Transfer of Immovable Property UA Union Administration UC Union Council VVIP Very Very Important Person ii PREFACE Articles 169 and 170 of the Constitution of the Islamic Republic of Pakistan, 1973 and Section 115 of the Punjab Local Government Ordinance, 2001 require the Auditor General of Pakistan to conduct audit of Receipts and Expenditure of the Local Fund and Public Accounts of District Governments. The report is based on audit of the accounts of Town Municipal Administrations of City District Multan for the Financial Year 2014-15. The Directorate General of Audit District Governments Punjab (South), Multan conducted audit during Audit Year 2015-16 on test check basis with a view to reporting significant findings to the relevant stakeholders. The main body of Audit Report includes only the systemic issues and audit findings carrying value of Rs 1 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 and in all cases where the PAO does not initiate appropriate action, the audit observations will be brought to the notice of the Public Accounts Committee through the next year’s