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R Agpr: Chapter No. 1
R Agpr: Chapter No. 1
Chapter No. 1
REPORT ON AGPR
an organization of repute. The internship is followed by report writing which is an integral part
in fulfillment requirements for degree of MBA a report encompasses the experience of the
internee, his learning, and analysis in light of which recommendations are made. The report is
then submitted to the supervisor in QAU. The report is properly analyzed and evaluated on its
This report is based on study carried out for the fulfillment of the degree requirement of the
The purpose of the study is to do practical work in field and apply the knowledge of classroom
The scope of my work is focused on the working of BUDGET and PIFRA Department. Review
Section of my report not only explains department’s working but also flow of work activities
among the sections. During the internship my observation was focused on internal managerial
No matter how efficiently a study is conducted, it cannot be perfect in all respects. This study
was conducted in accordance with the objectives of the study; the study may not include broad
explanations of facts and figures due to the nature of the study. Second: limitation, which affects
the study, is the availability of required data was problem all the documents and files are kept
strictly under lock and key due to their confidential nature. Third: the problem of short time
period also makes the analysis restricted as one cannot properly understand and thus analyze all
METHODOLOGY OF STUDY:
The data collected for analysis and review includes both primary and secondary data. The
methods used for collecting primary and secondary data are as follows:
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PRIMARY DATA:
Data collected for the first time is called primary data. The methods used to collect such data
include:
Personal observations.
SECONDARY DATA :
The data collected earlier by someone else and which has gone through mathematical and
statistical techniques after its collection, is called secondary data. Methods used to collect
AGPR manuals
Internet
AGPR stands for Accountant General Pakistan Revenues. The main task of the Accountant
General Pakistan Revenues or AGPR is to cover the federal transactions and accounting. It also
reports monthly account to finance division. There are different AGPR offices are also working in
Karachi, Quetta, Lahore and Peshawar under supervision of Islamabad head office.
The AGPR office has been shifted from Karachi to Jauharabad in 1961 and after that in 1968
shifted to Rawalpindi with camp office at Jauharabad and then in 1972 shifted to Islamabad,
camp office Rawalpindi at last in 1984 its office shifted to the present site.
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The construction of colony for employees was begun in 1977 and 250 flats completed out of 500
flats.
COMPUTERIZATION :
Initiatially through a presidential and modernized order and mechanization wings of the cabinet
division, work as under taken by UBL at Rawalpindi. As this payroll was first introduced in 1969
and Accounts in 1983 and in this way this type of work has been shifted from UBL to Pakistan.
This computer Bureau was located in Islamabad. Through legacy the housing process was started
in 1983.This way of processing through PIFRA was started in 2004 with legacy for initial few
months.
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ORGANIZATIONAL SETUP:
Geographical Setup
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21 01
20 02
19 04
18 06
17 IDC 11
17 AO 43
17 PS 01
16 141
15 05
14 06
12 37
11 977
07 03
05 191
1-4 217
WORKLOAD:
Bill Dairies
T.A. Register
Appropriation Register
Attendance Registers
Broad Sheets
Immediate Diaries
In the accounts offices the legacy accounting system being followed based on accounting policies
& procedures which are not in accordance with line international standards. The legacy system in
the changed environment has shown significant inadequacies in meeting the national and
information was not available. To meet the international standards of reporting the Government
launched the Project to Improve Financial Reporting and Auditing (PIFRA) in all the accounting
offices. At this site to bring new hanging in the legacy system to a new system was a traffic task
requiring extra effort by the Officers and staff. For this major change in their work this office has
to not only change the computerized system but also prepare its staff for this major change in
their working. Extensive training sessions were conducted for staff. In addition to this the
resources from this office also trained thousands of Federal DDOs. This activity is still going on.
VISION STATEMENT:
Opening of economy process and to free it from regularity controls, and also need of a good
governance and newly introduced financial management becomes a key point. Through direct
iterance the government should introduce appropriate fiscal mobile investigation for changing the
established rules and regulations. In these savior economics crises, transparency and
accountability has become more pronounce. The synergy of greater public-private sector
The government polices depends on the effectiveness and credibility, is critically dependent on
the availability of timely and accurate financial and management information, the existence of a
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cadre of competent professionals in the public and private sectors, a framework of financial and
The Government includes the following key elements of its strategy for the
innovation purpose:
A governance structure and legal framework consistent with international standards for an
reporting.
Increasing professionalization of the elements of its civil services because requiring key
competencies in staff training and appropriate human resource management policies improve
Increasing partnership between the private and public sectors in their respective areas of
comparative advantage and Adopting improved standards for private sector financial disclosure.
OBJECTIVES:
It will help to produce accurate, timely and meaningful accounts which meet to the needs of the
users. The project will help produce analysis of budgeted data reported in monthly accounts
producing significant deviation between actual budgeted account and total actual expenditures.
The improvements in the Audit component would help in enhancing accountability on the part of
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the Government of Pakistan and, consequently, more effective and efficient government.
OUTCOMES:
Improved HR functionality
Good Governance
IMPLEMENTATION SITES:
CGA
AGPR
For implementation PIFRA, the computerized software SAP is being used. Two main areas in
FI-(Financials)
HR-(Human Resources)
Receipts
Budgeting
Fixed Assets
Banking
Cash Forecasting
Development Projects
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Pay Roll
Pension
Staff Expenses
SAP is the biggest European software company headquartered in Walldorf, Germany. SAP was
Manheim, Germany. The acronym was later changed to mean Systeme, Anwendungen und
Produkte in der Datenverarbeitung but since the Annual General Meeting of 2005, the company's
REPUTATION:
Although not exactly a household name, SAP is the fourth-largest software company in the world.
It ranks comes after Microsoft, IBM and Oracle in terms of market capitalization. SAP is the
largest company in terms of revenue(in 2004 the company earned revenue of 7,154,000,000
Euros) as per latest data, and the largest ERP solution software provider (also in terms of
revenue).
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PRODUCTS:
SAP's products are in the Enterprise Resource Planning (ERP) business sector. The company's
main product is SAP R/3, where the "R" stands for real-time data processing, the number 3 relates
to the three tier application architecture: database, application server and client.
Processing of claims of different departments the claims are now processed through SAP and a
computerized cheque is issued. In the old system there was no role of computer in payment
processing till issuance of a manual cheque and the information for compilation of accounts was
punched after issuance of cheque so most of the works were manually in the old system. After
expenditure becomes part of accounts. This enables them to improve their efficiency. On the
other hand the salary of about 55000 employees is being processed through SAP.
Pension
GP Fund
FINANCIAL REPORTING:
Annual Reports
Financial Statements
Appropriation Account
Significant improvement has been made in the areas of accounting, financial reporting and
service delivery with the implementation of SAP (ERP). Adoption of International Public sector
Annual Financial Statements based on International Public Sector Accounting Standards (IPSAS).
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First time adoption of International Public Sector Accounting Standards (IPSAS) at Federal
Government for the year 2006-07 and the accrued benefits are following
Punching of bills
Account Preparation
Accounts Compilation
Proof Reading
Transfer Entries
Vendor Creation
Vendor Updation
Accounts Enquires
Proof reading
Mapping of DDO’S
Special Work
Deposit Section
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Book Section
Cancellation of cheques
HR SECTION:
Printing of payroll
Correspondence
PENSION PAYMENTS:
The SAP system has started from July 2006. Inputting the historical data of all employees in
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system was a challenging task but a significant achievement has made in this regards.
GPF module started working at AGPR from October 2006. Historical data needed to be entered in
the system.
They have accomplished the intricate task and have entered all the historical data of GPF in the
They have reduced processing time of final payment cases to just one week.
Budget section of AGPR Islamabad deals the matter of long term advances to Federal
Government Employees as per budget provision by the Finance Division. Finance Division
provides budget quarterly during the financial year for the issuance of advance to Federal
Government employees.
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CATEGORIES:
HBA Conveyance
Difference
Foundation
Eligibility Criteria
DOCUMENTS REQUIRED:
HBA:
Attested copies of the valid agreement deed made with the owner of the house/ plot/land to be
purchased
Attested copies of the documents establishing proprietary rights in the name of the seller of the
CONVEYANCE :
Chapter No. 2
I have done two months internship in the AGPR office Islamabad in this time I visited the
different sections of the AGPR and get information from that. But basically I have do the lot of
work in the two departments of the AGPR Budget and PIFRA (FI).
My finding from the budget section and PIFRA are the following respectively:
I have been started my working in the bill section of AGPR. I do reconciliation of the bills such
as if any bill of the one department has recorded in other department expenditure then this effect
the budget of that department so to avoid this thing we do the reconciliation of the bill and record
that in his own department expenditure. Such as if there are two different departments and the
expenditure of the one department has been recorded in the other department expenditure by
mistake or in any way then this false transaction will effects the transaction of the both
departments such in the way that the department which have the expenditure in the reality is
shows that its balance amount will be more than the reality due to the wrong transaction and the
I have checked the budget and expenditure of the different departments and their balances that
In the bill group of the AGPR there are 2 types operations can be done.
In the bill group there are two types of the bills process pay and allowances 2nd contingency
bills. Now after that these bills have been divided into two parts 1st TA and 2nd GA. The bills
of the pay and allowances of those employees which has scale above than 16 were check and
proceed in the GA section while all the bills of those employees how has below BPS than 16
Now first when the bill has been made then this is forward to the counter where the token
number is pasted on the bill and after that when the token number is assign to the bill then they
forward it and punch it(means they record it in the system ). After the punching of the bill they
send the bill for the sanction when the bill becomes sanctioned then after that they send the bill
for approval from the different level. In case of approval and rejection the bill will be sent to the
counter again. They do all types of the payments only with venders not directly by using the cash
due to auditing reasons. If the use directly cash then they will face the audit problems. The
contingences files were place in the bill group section of the AGPR. Contingences are related to
The bill must be passed from the following three levels for the approval.
Account officer
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Ist the bill is receive by their concern auditor he will accept or reject the bill if he accept it than
he forward it to the assistant account officer and after that the bill is sent to the account officer if
they all accept the bill then they forward the bill to the cheque. After that they will again sent the
The AGPR can also give three types of the advances to their employees such as the house
1: HBA (house building advance) this advance is given to the employees were 36 time of their
running basic pay. Running basic pay is the pay which is equal to initially basic plus increments
of the employee at that scale. But for it is necessary that the employee must have the 10 years
service and the maximum numbers of the installment are 120 that the employees will recover
their loan in 120 installments. The 1and 2 scale employees and also those who has selected on
FPSC base have no such limitations and the number of the installments were 240 for them. This
2: Car advance this advance can be taken by those employees who have the basic pay 8135 or
above if any employee has below from this range their basic then he could not take this advance.
3: Motor bike advance: limitation for this advance is that their basic must be 3100 or above from
this.
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The two similar advances cannot be used by any person at the same time. Such as car and bike at
the same time, HBA can be taken by any employee 2 time in his whole service life while the
convince advances can be taken by the employee if he has recover the previous advance
obligations. Interest on the advances can be made at the last after paying all the principle amount
of the loan. The interest rate will be used that one which is using that year in the country. All
those employees which have less in the grade then 15 on their advances there is no interest but
only on HBA on the convince advances the interest will be apply. The employee who has interest
free GP fund account their advances will be also interest free. The sheet which have been used
for the record of the allocation of the advances is known the broad sheet , it contain all the
information of the installments and other recovery of the loans and the amounts of the loan have
The formula which they have used for interest is the following:
Personal pay is that pay which is related to the parson such as if anybody take the amount greater
/increment after reached to the maximum range of the salary at that grade.
Qualification pay is that pay which will be give to the employees if he pass some exams which is
Senior post allowance this is given only to grade 20, 21, 22 officers.
Rent allowance is given to their employee by the AGPR up to 50% in the large cities and up to
Local compensatory allowance is that one which is given to those employees which are working
Adhoc reliefs are those allowances which are given to the employee the case of the inflation in
the country.
Pay and allowances included in the pension or not: all the pays will be included but the
PAY FIXATION :
The pay fixation in AGPR has been done in the following ways.
In this method only the scale of the employee change, the grade will remain unchanged.
In this method we see the pay of the previous stage and the pay of the next stage to which the
person was promoted if the pay of the new scale is higher than the old one at least of 2
increments than his pay will start directly from that grade otherwise if the new scale pay is less
from the old one than we see the stage at which he receive the pay as he receive in the old pay in
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equal amount. Then give the two increments to him from that place and start his pay from there
Pay fixation is done through service book in AGPR for the non gazette employees of the AGPR
the service book contain all the information about the employee and this information is verified
by the AGPR at the time of the revising the scale of the employees. In case of the Gazetted
officers they have not the service book they have only the file which is placed in the GA office.
Penalty and leave of the gazetted officer is done by the AGPR and the non gazetted by their own
administration.
PAY ACTIVATION:
For the pay activation of the employee in case of the transferring in the same province is done
only by changing the personal number of that employee but if the person has been transfer from
the other province than for the pay activation he must submitted the form one on the bases of
Pay slip is issue to the employee in the case of any changing in his salary and this slip is issued
These sections check the pay and allowances bills of only those employees which have BPS 17
and above or we can say that they check only the gazetted accounts bills. In this they check the
information about their pays. The following are the main documents which must be checked.
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Appointment letter
Medical certificates
Basic salary
They will give the increment to those employees only that has join before the 31 may, because
they have the policy to give the increment only to those employees who have completed the six
months at the date of the 1st dec from its joining date. If at this date any employee has not
completed the six months in the AGPR then he cannot take increment according to the rules he
will be receive the increment from the next year. If any employee has completed six month up to
1st dec from the joining date of that year then he /she is illegible to get the increment for that
year otherwise if the six month were not completed by that person then he was not illegible to
take the increment for that year. If the person has been transfer from any other place the he has
the right to get the increment. And in the case of the promotion if he has completed the six month
up to the given date at the new position then he would receive the incremental benefit at the new
scale otherwise they get the increment on the old grade basis.
when any person join the AGPR then the salary of that person can be paid in two ways to that
person, 1st direct with the bill and 2nd with computerize ID which will assign to the employees
after fill the FORM 1 and submitted them. These bills must be sign from the DDO (drawing and
PIFRA section of this office has been working since 2003. This office has completely turned
over to the new system and cheque generation has also been started through sap.
Accounts compilation through sap has also been also started from March 2004.
AGPR office completely switched over in new system form July 2005.
Cheque generation through system has also been started from July 2005.
Any one which does any type of the dealing with AGPR then this is become a vendor for the
AGPR. They may be the person; an organization (private or government) and the AGPR give
them a vendor number on the basis of which all the record has been keeping in the system.
The computer section of this office has been performing the function of vender creation
/updation of all gazetted employees, firms and third parties. For this purpose five officials /kpo’s
are working on it and almost 5000 vendors have been created so far.
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CREATION OF VENDOR :
They create the vendor number on the name of the person, organization etc. They write the name
of MR, MS or the organization, after that their A/C number, ID card number, ID (postal code),
They can also do the amendment in the already existing vendor such as to change the A/C
WORK FLOW:
Work flow is observed from level zero to level 2 (A.O level).to make it sure that the sections are
working properly in SAP and following functions are continuously observed by computer
section. There are four master trainers who have been deputed to resolve the issues of complete
workflow.
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CHART
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PAYMENT PROCEDURE:
Pass bill statement along with passed bills are forwarded to the cheque section for issuance of
cheque. Cheque section makes payment on those vouchers AAOs examine the information
printed on cheques with the data available on pass bill statement. After verification of data, a
BANK ADVICE:
A system generated bank advice mentioning vendors name, document number, amount, cheque
number, token number, is forwarded to the bank. Different layouts can be generated from the
The token numbers are now being printed on sequel. The cheque section puts a stamp on voucher
indicating its cheque number. Bundles are maintained on basis of this sequence of cheque
numbers.
COMPILATION OF ACCOUNTS:
After the printing of cheques the posted documents are taken in to account for the compilation
and report generation using different layouts as required by the Accountant General. This process
Section-III Reports
Compilation Account
Consolidated Abstract
Reconciliation Sheet
Exchange Account
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Chapter No. 3:
Manual data after generation of cheques is not found in sequence .due to this it is very hard to
tally amounts with bank advice. Because of the not proper recording of the manual data they
record the data in a very carelessly. They consider that the data has already available in the
system and there is no need of the recording it manually. This thing creates lot of problems
because most of the employees of the office have no knowledge about using of computers.
There is no proper transaction recording in the office of the AGPR because the employees
consider if the record is present in the computers then there are no need of further recording of
the transaction.
BILL RECORDING:
If the Bill is approve and posted in the system then this Bill is consider as expenditure in the
AGPR office regardless that the Bill has been passed from the cheaque section or not. The
Amount mentioned in delivery list is not matching with the posting date. The total of amount
NO INQUIRY :
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In the AGPR there is no inquiry done about any bill and statements that from where this Bill has
been made is there is reality in that or not. And most of the time false Bills have approve due to
The process of Cheque generation is slow as compared to the required speed. The problem
absorb by me is that servers currently installed are not up to the mark hence an early
replacement of the servers with bigger and better servers would enhance the efficiency to a great
extent.
There are only externally audit conducted in the AGPR no internally audit due which the
deficiencies are not detected completely. Because the external auditor are not so familiar to the
office and he has very short time for his audit due to which he is unable to find all problems.
This office has completely switched over to the new system and cheque generation has also been
started through system. Following are some problems which hamper the timely compilation of
accounts:
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Space in the existing Hard Disk has expired of server, there is need to install new hard disk. To
support further data for this purpose, System had been stopped to configure the data with new
hard The Disk, since 10.09.2007(Saturday) after 12:00’o clock. It was ensured by the basis
experts Of PIFRA that system will work on Monday 12:09.2005 at 9.00 AM sharp.
But they failed to restart the system in time, this office coordinated with PIFRA consultants and
There are a lot of problems which Computer section is facing in vendor creation due to a great
work load of work. Six officials have been deputed for vendor creation and they are working on
it.
To create vendors of gazetted employees it was decided that PIFRA consultant shall run a
command which would create the vendors for it. The commitment could not be fulfilled due
great number of technical difficulties and was decided to create the vendor data through KPOs
LAKE OF TRAINING:
They bring the most expensive systems and the technology to their offices but due to less
qualifications and skills the staff cannot use that system in the proper way. And the technology is
becoming useless for them because the staff cannot use it due to the lake of the training.
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Chapter No. 4
4.1: RECOMMENDATIONS :
It should be ensured by Pre Audit section that vendor number/GL accounts and the amount
which they are mentioning in the system are correct, moreover proof reading of punched bills
should be watched on daily basis which has already been notified to all pre-audit sections.
Cheque section should ensure that amount mentioned in the delivery list should clearly match
with posting date to make it sure that the total amounts are equal and accurate.
Cheque section is responsible to arrange the vouchers after cheque generation, according to the
Cheque number. Among various solutions one is to cheque problem and appoints two additional
Junior Auditors with Cheque section respectively to expedite the process, their only duty would
be to put all the vouchers and cheques in order and put Cheque and bundle number.
It is advised that PIFRA consultants may ask to resolve the issues of cheque section and also
they should pay their attention towards booking of account properly and compilation of accounts.
As we know that the employees are not so expert in the field of the technology. They have no
skill to handle that equipments for this they need to give them some proper training to their
employees about the new technology and also motivate and offer them qualifications.
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SYSTEM ADMINISTRATION :
Five persons of this office manage the system administration and have been deputed to perform
Miss arrangement of vouchers creates difficulty to find out any document for the reconciliation
To solve this issue process is under at the moment SAP experts have been consulted many times
they are working on the issue and it will be resolved very soon. Two options to be followed
either to put the vouchers in sequence as it is also being followed through Cheque and 2nd is the
posting date problem is strictly being observed through supervision. However it needs further
PROPOSED SOLUTION :
In order to avoid this situation in future PIFRA staff deputed with this office has been asked to
coordinate with administration of this office so that they keep the system up-to-date, and keep on
refreshing the existing servers to avoid and impediment in the workflow. To further increase the
efficiency of the workflow and keep the system up-to-date and ready to tackle with any
unforeseen situation like system breakdown, a responsibility Performa has been developed. It
outlines the responsibilities of the human resource working in system administration; also it
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would be an easy tool to measure the output of the people responsible for the smooth workflow
of the system.
4.2: CONCLUSION:
Infact these sections perform function according to rules, regulations and international
accounting standards. They have also drafted their work flows very effectively. Routine
transactions are recorded, manipulated. There is hardly any chance of mistakes but these
mistakes are adjusted with the recommendation of the heads. I felt that there has been a strong
coordination between all sections. My personnel experience during my internship reveals that the
working environment is very friendly and one can learn a lot even during his limited tenure.
4.3: REFRENCES:
http://www.agpr.gov.pk
http://www.cga.gov.pk/