MEDIUM-TERM BUDGETARY FRAMEWORK - OVERVIEW

The annual budget of the Federal Government is based on a medium term budgetary framework (MTBF). The MTBF
is an approach to budgeting that integrates policy-making, planning and budgeting within a medium-term framework.

The MTBF has provided the framework for budget preparation in all Ministries/Division and Departments of the
Federal Government since 2009.

The MTBF has three main objectives:

 To further strengthen fiscal discipline by creating and orderly framework for management of the annual
budget over the medium term;
 To strengthen the alignment of federal resources by the government to the government’s policies and
strategies;

To build the capacity in federal ministries to prepare and manage their budgets in a manner which provides cost-
effective service delivery (outputs) and efficient use of public funds (value for money).

PRSP - SECRETARIATE

The Poverty Reduction Strategy Paper (PRSP) Secretariat housed in the Ministry of Finance was established in 2000
to prepare a holistic anti-poverty strategy for Pakistan. It provides secretarial support to the National PRSP
Implementation Committee. The Committee, headed by the Secretary Finance, comprises secretaries of Federal and
Provincial PRSP partner government agencies to oversee the implementation of Pakistan’s PRSPs.

District Accounts Officers (DAOs). The DAOs are responsible for the accounting functions of the
districts. They have authority to pre-audit bills, issue payments, and record government transactions at
the district level. They receive reports from the drawing and disbursing officers and bank scrolls from
the State Bank of Pakistan/National Bank of Pakistan. They report district and provincial transactions to
the Accountant General responsible for the province in which their districts are located. They also report
federal transactions to the AGPR.

Constitutional Provision - Constitution 1973

Article-160(1)Within six months of the commencing day and thereafter at intervals not exceeding five years, the
President shall constitute a National Finance commission consisting of the Minister of Finance of the Federal
Government, the Ministers of Finance of the Provincial Governments, and such other persons as may be appointed
by the President after consultation with the Governors of the Provinces.

(2) It shall be the duty of the National Finance Commission to make recommendations to the President as to:-

a) the distribution between the Federation and the Provinces of the net proceeds of the taxes mentioned in
Clause (3);
b) the making of grants-in-aid by the Federal Government to the Provincial Governments;

c) the exercise by the Federal Government and the Provincial Governments of the borrowing powers conferred by
the Constitution; and

d) any other matter relating to finance referred to the Commission by the President.

(3) The taxes referred to in paragraph (a) of Clause (2) are the following taxes raised under the authority of
[(Majlis-i-Shoora) (Parliament)], namely:-

i) taxes on income, including corporation tax, but not including taxes on income consisting of remuneration paid
out of the Federal Consolidated Fund;

ii) taxes on the sales and purchases of goods imported, exported, produced, manufactured or consumed;

iii) export duties on cotton, and such other export duties as may be specified by the President;

iv) such duties of excise as may be specified by the President; and

v) such other taxes as may be specified by the President.

(3A) The share of the Provinces in each Award of National Finance Commission shall not be less than the share
given to the Provinces in the previous Award.

(3B) The Federal Finance Minister and Provincial Finance Ministers shall monitor the implementation of the Award
biannually and lay their reports before both Houses of Majlis-e-Shoora (Parliament) and the Provincial Assemblies”.

(4) As soon as may be after receiving the recommendations of the National Finance Commission, the President
shall, by Order, specify, in accordance with the recommendations of the Commission under paragraph (a) of Clause
(2), the share of the net proceeds of the taxes mentioned in Clause (3) which is to be allocated to each Province, and
that share shall be paid to the Government of the Province concerned, and, notwithstanding the provision of Article
78 shall not form part of the Federal Consolidated Fund.

(5) The recommendations of the National Finance Commission, together with an explanatory memorandum as to
the action taken thereon, shall be laid before both Houses and the Provincial Assemblies.

(6) At any time before an Order under Clause (4) is made, the President may, by order, make such amendments or
modification in the law relating to the distribution of revenues between the Federal Government and the Provincial
Governments as he may deem necessary or expedient.

(7) The President may, by order, make grants-in-aid of the revenues of the Provinces in need of assistance and
such grants shall be charged upon the Federal Consolidated Fund.

An audit program, also called an audit plan, is an action plan that documents what procedures
an auditor will follow to validate that an organization is in conformance with compliance
regulations.
 There are generally four types of audit opinions rendered in accounting.
 Unqualified Opinion. An unqualified opinion means that the report is clean. ...
 Qualified Opinion. ...
 Disclaimer Opinion. ...
 Adverse Opinion.

Audit strategy. May 25, 2016. An audit strategy sets the direction, timing, and scope of
an audit. The strategy is then used as a guideline when developing an audit plan.
The strategy document usually includes a statement of the key decisions needed to properly
plan the audit.May 25, 2016

There are three types of modified opinion (which are discussed below): an "adverse" opinion; a
"disclaimer of opinion"; and. a "qualified opinion"

The scope of a post audit includes audit or review of transactions pertaining to the financial
operations of the various agencies of government on the state level, ...
A post audit, as defined by §4-2-2 of the West Virginia Code, is the audit or review of governmental finances after
they have been expended. The scope of a post audit includes audit or review of transactions pertaining to the
financial operations of the various agencies of government on the state level, with verification of state revenues at the
source and audit of expenditures all the way through the work to the recipient or beneficiary of the service.

A pre audit consists of scruitiny of claims before payment and provide a method of internal
control within the executive branch of govt:.

Post audit covers all financial records of the most recently completed fiscal period and represent
a method of independent external control.