Chapter 1: Introduction of Report

1.1 BACKGROUND OF STUDY

The Accountant General offices are established in each Province and the
Federal Government, and each report to the Controller General of Accounts.
These offices are responsible for the overall operation of accounting
offices with in their jurisdictions and deal with matters of accounting policy and
procedure in those areas. In case of Federal Government the Accountant General
(AG) is located in Islamabad, with sub offices in each of the Provincial Capital
and other designated areas. All the Accountant General Pakistan Revenue sub
offices reports monthly accounting information in respect of Federal Transaction
to Accountant General Pakistan Revenue Islamabad.

1.2 PURPOSE OF STUDY

The purpose of this study is to highlight the working, importance of

Accountant General Office and to realize that no Government can service without
an effective accounting system. An effort is made to know the role and importance
of the Accountant General Office, but also for acquiring some professionalism in
an organization, so that one could understand the actual practices of transaction of
Accountant General Office.In this manner interns are given a chance to spend
time in different departments / organization sections either it is Private or
Government and learn to do actual transactions which have already been occurred
previously. Moreover, we are also required to analyze different aspects of the
organization and to forward our suggestion to put right problems, which are being
faced by the departments/ organization, if possible.

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1.3 SCOPE OF STUDY

Though Government accounting is a vast subject and covers many field of

accounting. The following accounts statements are prepared;

1. Quarterly Account

These accounts are prepared on quarterly basis. These accounts are to be

submitted before 20th of he month following the end of quarter after the approval
by the Accountant General or Accountant General Pakistan Revenue.

2. Half Yearly and Annual Financial Statement

Each Accountant General and Accountant General Pakistan Revenue will

required to produce their half yearly and annually financial statement.

3. Half Yearly Financial Statement

Accountant General and Accountant General Pakistan Revenue are

required to prepare half yearly financial statement before 20th February each year

4. Annual Financial Statement

Annual financial Statement are required to be prepared by Accountant

General or Accountant General Pakistan Revenue before August 20th of each year.

On the other hand this report may help students in future to understand the
Accountant General Office transaction and function in our country. It would also
attempt to evaluate the overall performance of the Accountant General Offices
and detailed analysis of its daily working.

1.4 METHODOLOGY OF STUDY

For the purpose of writing this report, the following methods of collecting
information have been used.

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1.4.1 PRIMARY DATA

The information which is collected for the first time and exists in raw form
is known as Primary Data. It contains the following;
Personal Observations
Discussion with staff of the various section involved in that specialized fields.

1.4.2 SECONDART DATA

The information which has undergone through statistical techniques and

exists in a refined form is known as secondary data. It contains the following;
Auditor-General’s (Functions and Terms and Conditions of service) Ordinance,
2001. Audit and accounts Manuals

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 Chapter 2: Overview of the Organization
2.1 Brief History

The Office of the Accountant General NWFP was established on 1st April, 1929 as
a small Pay & Accounts Office and was responsible for Audit & Accounts of both
Federal and Provincial transactions in NWFP. Subsequently it was re-designated
as Comptroller, NWFP on 1stNovember 1931. It continued to function as such till
July, 1973, when its status was raised to that of Accountant General because of the
tremendous increase in the scope of its activities and load of work.

Apart from NWFP and its adjacent Tribal Agencies, the audit jurisdiction of this
office also covered Northern Areas (Gilgit & Baltistan). The audit of Northern
Areas was, however, transferred in 1974 to the Accountant General, Pakistan
Revenues Islamabad. Similarly, in the case of Frontier Irregular Corps (Scouts &
Militia), the audit jurisdiction of this office extended to Baluchistan. But on the
formation of separate office of the Inspector General, Frontier Corps of Quetta in
1974, the audit of the Units in Baluchistan was transferred to the Comptroller,
Baluchistan.

On the formation of one Unit, the audit of two adjacent Districts in Punjab (Attock
and Mianwali) was transferred to this office from office of the Accountant
General, Punjab. Correspondingly, owing to centralization of works audit in office
of the Director, Works Audit, Lahore, the works portion was transferred from this
office. These arrangements were reversed in 1970, owing to dismemberment of
One Unit. During that period the audit of ex-States of Dir, Swat and Chitral was
also taken over by this office due to merger of these States.

The “District Accounts Office” scheme was introduced in NWFP in 1970. Initially
it was experimented in one District i.e Mardan. By now there are 24 Districts and
7 Agency Accounts Offices, in NWFP and FATA respectively.

Till July, 1979, this office was responsible for the audit and accounts of both
Federal and Provincial transactions in the Province (including Agencies). On the
formation of the Sub-Office of the Accountant General, Pakistan Revenues, in

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July, 1979, the audit and accounts of the Federal transactions were transferred to
that office.

2.1.2 Separation of Audit and Accounts

Office of the Accountant General, NWFP, till 30th June, 1989 was responsible for
the local audit of accounts of the Provincial Govt departments and its autonomous
bodies and corporations and performance of audit of projects etc. The audit
reports too thereon were being prepared by this office. The function of local audit
of accounts was however withdrawn from it and assigned to newly established
office of the Director General, Audit NWFP in July 1989.

All the accounting transactions both for the Federal as well as Provincial Govts
were under the administrative and functional control of the Auditor General of
Pakistan. The separation of Audit & Accounts departments were promulgated vide
Auditor General’s ordinance 2001 and Controller Generals Ordinance 2001, since
then the Accounts Departments were independently kept under the newly created
office of the Controller General of Accounts.

2.1.2 Devolution Plan

Since the introduction of Devolution Plan on 14th August, 2001. it was a challenge
for this office to respond to the needs within the existing human and financial
resources. This office delegated preparation of accounts of 13 devolved
departments at the District Accounts Office level, as required under the Local
Government Ordinance 2001

2.2 Introduction the Accountant General kpk

Accountant General KPK Peshawar is a provincial office of the Controller
General of Accounts, which has been performing delegated functions on behalf of
Controller General of Accounts ever since its inception, AG is the head of an
office of Accounts subordinate to the comptroller and Auditor General of Pakistan
whether known as Accountant General, Comptroller or by any other designation.
Provincial Accountant General means as Accountant General who keeps the
accounts of a Province. Created primarily for keeping and maintaining the
accounts of the federation and provisional Government and , this office has been

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performing function in accordance with provision of article 168 to 171 of the
Constitution of the Republic of Pakistan, 1973 and the Presidential Order 2001

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2.3 Organization chart

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