1.JIAP Observations

Government of Pakistan
Office of the Director General Audit, Inland Revenue &

Customs (South)
Pakistan Audit & Accounts Complex,
Near NIM, University Road, Karachi
Phone # 021-99244837, 99244839, Fax # 021-99244838
No. FAT-15/Obs./Exp./MCC JIAP/K/2020-21 Dated: -08-2020
Audit Observation No. 01
Sub: Unauthorized Expenditure under various heads due to non-compliance of Budget

Operational Guidelines-Policy Circular Rs- 236,060/-
As per Finance Division’s Budget operational Guidelines – Policy Circular dated 08-07-
2019 with the clear-cut directions as per para 2(i) that “current Expenditure in the first half of the
financial year shall be restricted upto 40% of the total budget allocation and spent in proportionate
manner”
During audit of Administrative Expenditure of the Model Customs Collectorate JIAP,

Karachi for the financial year 2019-20, it was observed that expenditure over the required limit of
40% is unauthorized due to non-compliance of financial discipline amounting to Rs. 236,060/.
(Detail annexed).
Action Required: -
Unauthorized expenditure amounting Rs. 236,060/- may be justified to Audit.
(Akbar Ali)
Audit Officer (FAT-15)
The Collector, MCC JIAP, Karachi

Expenditure Incurred Under Various Heads Due to Non-Compliance of Budget Operational Guidelines
MCC JIAP Karachi During 2019-20
Re- Re- Final Expenditure

Original Prescribed 1st Half
S.No Head of Account Appropriatio Appropria Budget upto incurred in Difference
Budget limit 40% Expenditure
n (+) tion (-) 31st Dec. %
A03902-PRINTING AND
1 144,000 0 0 144,000 57,600 140,000 97.22 82,400
PUBLICATION
2 A13001-TRANSPORT 800,000 0 -80,000 720,000 288,000 361,460 50.20 73,460
3 A03970-OTHERS 200,000 0 0 200,000 80,000 106,032 53.02 26,032
A13201-FURNITURE AND
4 325,000 0 0 325,000 130,000 145,650 44.82 15,650
FIXTURES
A03928-EXPENDITURE ON
5 184,000 0 0 184,000 73,600 85,000 46.20 11,400
CONFISCATED GOODS
A03919-PAYMENTS TO OTHER
6 400,000 0 0 400,000 160,000 169,000 42.25 9,000
FOR SERVICES RENDERE
7 A13701-HARDWARE 304,000 0 0 304,000 121,600 130,385 42.89 8,785
A03205-COURIER AND PILOT
8 143,000 0 0 143,000 57,200 63,362 44.31 6,162
SERVICE
A03942-COST OF OTHER
9 500,000 0 0 500,000 200,000 203,171 40.63 3,171
STORES
TOTAL Rs. 236,060
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Lapse of government money due to non-surrender of savings –Rs. 1,917,986/-
Para 95 of GFR Vol. – I, provides surrender of savings by 31st March. The funds received
after 31st should be surrendered immediately they are foreseen but not later than 30 June. Further
according to para 5(d) of system of financial control and budgeting 2006, the Principal Accounting
Officer is responsible for ensuring that the expenditure is not incurred in excess of the budget
allocation. Any anticipated excesses and savings should be readjusted by means of re-
appropriation to the extent powers have been delegated to the Principal Accounting Officer under
the new procedure.

Karachi for the financial year 2019-20 , it was observed form the expenditure statement for and up to
the month of June 2020 that there appeared a savings amounting to Rs. 1,917,986- under the
various head of accounts but was not surrendered and therefore lapsed. (list Annexed)
Non-surrender of savings is violation of above rule.
The matter may please be looked into and justified to Audit.
(Akbar Ali)

Lapse of Government Money Due to Non-Surrender of Savings
Expenditur
S.No Head Final e during the Savings
Detail Object Description
. A/C Budget year (Rs)
1,793,00 1,793,00
1 A01274 MEDICAL CHARGES 0 0 0
TRANSPORT MONETIZATION
2 A0121J ALLOWANCE 329,800 263,840 65,960
3 A03205 COURIER AND PILOT SERVICE 143,000 111,875 31,125
4 A01228 ORDERLY ALLOWANCE 70,000 56,000 14,000
5 A03302 WATER 7,500 0 7,500
6 A01201 SENIOR POST ALLOWANCE 6,250 5,000 1,250
7 A03806 TRANSPORTATION OF GOODS 350,000 348,849 1,151
8 A03201 POSTAGE AND TELEGRAPH 1,000 0 1,000
9 A03603 REGISTRATION 1,000 0 1,000
PAYMENTS TO GOVERNMENT
10 A03915 DEPARTMENT FOR SERVICE 1,000 0 1,000
11 A13703 I.T. EQUIPMENT 1,000 0 1,000
2,703,55 1,917,98
TOTAL 0 785,564 6
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838

Sub: Unauthorized expenditure without allocation of budget grant –Rs. 31,772/-
Paras 12, 88 and 106 of GFR Vol-I read with Para 5(b) of System of Financial Control and
Budgeting, 2006 provide that the expenditure in excess of the amount of Grant or Appropriation as
well as the expenditure not falling within the scope or intention of any Grant or Appropriation,
unless regularized by a Supplementary Grant or a Technical Supplementary Grant, shall be treated
unauthorized.
Karachi for the financial year 2019-20, it was observed that budget grant was not allocated under the
following head of accounts whereas as per expenditure statement for the month of June, 2020 , the
MCC incurred/booked expenditure of Rs. 31,772/- under these heads. This resulted in
unauthorized expenditure of Rs. 31,772/- without allocation of budget grant under the heads as
detailed below.
Expenditure
S.N Final Excess
Head of Account during the
o Grant expenditure
year
A0122W-Resedential Telephone Charge
2
Allowance 0 19,772 19,772
4 A0122L-Mobile Phone Allowance 0 12,000 12,000
TOTAL 0 Ra. 31,772 Rs.31,772
The excess expenditure over and above the final budgetary grants indicates that budget
was not prepared properly, and department was not aware of its actual expenditure for the
particular financial year.
(Akbar Ali)
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838

Sub: Excess expenditure over and above the budget grant – Rs. 980,227/-
Paras 12, 88 and 106 of GFR Vol-I read with Para 5(b) of System of Financial Control and
Budgeting, 2006 provide that the expenditure in excess of the amount of Grant or Appropriation as
well as the expenditure not falling within the scope or intention of any Grant or Appropriation,
unless regularized by a Supplementary Grant or a Technical Supplementary Grant, shall be treated
unauthorized.
During review of the expenditure accounts of the Model Customs Collectorate JIAP,
Karachi for the financial year 2019-20, it was observed that expenditure up to the extent of Rs.
980,227/- was incurred over and above the budgetary allocations under the various head of
accounts (list Annexed)
The excess expenditure over and above the final budgetary grants indicates that budget
was not prepared properly, and department was not aware of its actual expenditure for the
particular financial year.
(Akbar Ali)

Excess expenditure over and above the budget grant
Expenditur Excess
S.No Head Final
Detail Object Description e during the expenditure
. A/C Grant
year in Rs.
1 A01101 BASIC PAY OF OFFICERS 4,981,390 5,618,160 636,770

2 A0122Y AD-HOC RELIEF ALLOWANCE 2017 480,720 561,666 80,946
3 A0123G AD-HOC RELIEF ALLOWANCE-2018 480,720 561,666 80,946
4 A01202 HOUSE RENT ALLOWANCE 519,873 578,482 58,609
5 A0123P AD-HOC RELIEF ALLOWANCE-2019 284,869 327,509 42,640
6 A01217 MEDICAL ALLOWANCE 209,888 245,104 35,216
7 A01203 CONVEYANCE ALLOWANCE 352,500 387,500 35,000
8 A01105 QUALIFICATION PAY 9,000 17,500 8,500
9 A01224 ENTERTAINMENT ALLOWANCE 9,800 11,400 1,600
TOTAL 7,328,760 8,308,987 980,227
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Non-Adjustment of TA/DA advances – Rs.198,049/-
According to Para 269 of GFR Vol-1, TA/DA advances may be made to a government
servant, subject to adjustment upon the government servant’s return to headquarters or 30 th June,
whichever is earlier.
Contrary to the above, Model Customs Collectorate JIAP, Karachi paid TA/DA advance to
Mr. Irfan Ur Rehman Khan, Collector (BS-20), amounting to Rs. 198,049/- during the year
2019-2020, which was not adjusted till 30th June, 2020. This resulted in non-adjustment of TA/DA
advance of Rs. 198,049/-
It is requested that TA/DA advances may be adjusted through TA/DA bills under
intimation to Audit.
(Akbar Ali)

Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Non-reconciliation of annual financial statement with DGPR
According to revised procedure for operation of Assignment Account issued by Finance

Division No. SRO-1 (2008) dated23.09.2008 and para 3 of the instruction issued by CGA vide No.
AC-11/1-39/08-Vol-V/632 dated 24.09.2008 for implementation of revised procedure with effect
from 01.10.2008 the drawing authorities are primarily responsible for accounting of expenditure
on a daily basis. On the basis of this record the DDO will render classified accounts of expenditure
to the AG/DAOs on a monthly basis by 15th of each month and ensure its inclusion in the
AG/DAOs accounts. The verification if any is required to be reconciled and appropriate entries is
carried out to bring the accounting records up to date.
Contrary to the above, Model Customs Collectorate JIAP, Karachi, did not reconcile the
annual financial statement showing final grant and actual expenditure for the year 2019-20 (June-
final) with DGPR Sub-Office, Karachi, as no such reconciled statement was produced to Audit.
This resulted in non-reconciliation of annual financial statement with DGPR.
(Akbar Ali)

Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Non-disposal of parts purchased/replaced during 2019-20
According to rule 167 of General Financial Rules, subject to any special rules or orders
applicable to any particular department stores which are reported to be obsolete, surplus or
unserviceable may be disposed of by sale or otherwise under the orders of the authority competent
to sanction the writing off of a loss caused by deficiencies and depreciation equivalent to their
value.
During administrative audit of expenditure in respect to of MCC JIAP, Karachi for the
financial year 2019-20 it has been observed that the Collectorate incurred expenditure of
Rs.1,000,000// (List Attached) during 2019-20, on account of A-13101 repair of machinery and
equipment but disposal of parts replaced during the repair was neither done nor shown to Audit.
It was requested that the omission may be justified under intimation to Audit.
(Akbar Ali)

Expenditure Incurred on Account of Repair of Machinery and Equipment
MCC JIAP Karachi during 2019-20
Head of Cheque Amount

S.No. Description Vendor Name Date
Account No in Rs.
Machinery and M/s Zubair
1 A13101 7071360 27/09/2019 41,500
Equipment Enterprise
Machinery and
2 A13101 Bashiri & Co. 7544060 12/11/2019 24,500
Equipment
Machinery and M/s Sultan
3 A13101 7544064 12/11/2019 21,500
4 A13101 7544065 12/11/2019 47,750
5 A13101 7546665 25/11/2019 95,000
6 A13101 7547114 27/11/2019 11,200
7 A13101 7561609 31/01/2020 39,800
8 A13101 7573201 12/03/2020 80,800
Machinery and
9 A13101 Bashiri & Co. 7576903 17/04/2020 67,500
Equipment
10 A13101 7576904 17/04/2020 70,800
11 A13101 7576905 17/04/2020 49,700
12 A13101 7576906 17/04/2020 83,400
13 A13101 7732456 30/05/2020 24,900
Machinery and
14 A13101 Bashiri & Co. 7732468 30/05/2020 88,400
Equipment
Machinery and
15 A13101 Bashiri & Co. 7732469 30/05/2020 99,800
Equipment
16 A13101 7732470 30/05/2020 57,750
17 A13101 7732471 30/05/2020 24,400
18 A13101 7732472 30/05/2020 24,500
19 A13101 Machinery and M/s Zubair 7743162 14/06/2020 46,800
TOTAL 1,000,000
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Non-disposal of spare parts purchased/replaced on account of repair of

vehicles/transport during 2019-20
According to rule 167 of General Financial Rules, subject to any special rules or orders
applicable to any particular department stores which are reported to be obsolete, surplus or
unserviceable may be disposed of by sale or otherwise under the orders of the authority competent
to sanction the writing off of a loss caused by deficiencies and depreciation equivalent to their
value.
During administrative audit of expenditure in respect to of MCC JIAP, Karachi for the
financial year 2019-20 it has been observed that the Collectorate incurred expenditure of Rs.
1,299,906/- (Details Annexed) during 2019-20, on account of A-13001- repair of transport but
disposal of spare parts replaced during the repair was neither done nor shown to Audit.
It was requested that the omission may be justified under intimation to Audit.
(Akbar Ali)
Expenditure Incurred on Account of Repair of Transport

Head of
Cheque Amount
S.No. Accoun Description Vendor Name Date
No in Rs.
t
1 A13001 Transport Bashiri & Co. 7074463 11/10/2019 24,900
3 A13001 Transport M/s Sultan Enterprise 7074462 11/10/2019 24,500
5 A13001 Transport M/s Zubair Enterprise 7074453 11/10/2019 24,950
1,299,90
TOTAL
6
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Non-maintenance of Stationery Register
During audit of accounts of Administrative Expenditure of the MCC JIAP, Karachi for the
year 2019-2020, it was observed that the Collectorate incurred an amount of Rs. 1,199,894/- (List
Attached) on account of A-03901-Stationery for the financial year 2019-2020 but Stationery
Register was not maintaining. The same was not shown to the Audit team in the absence of the
Stationery Register, the amounts spend on purchase of stationery items cannot be verified.
Model Customs Collectorate JIAP, Karachi had to clarify its position under intimation to
Audit.
(Akbar Ali)

Expenditure Incurred on Account of Stationary
Head of
Cheque Amount
S.No. Accoun Description Vendor Name Date
No in Rs.
t
707136
1 A03901 Stationery Bashiri & Co. 27/09/2019 21,563
5
707136
6
707136
3 A03901 Stationery M/s Sultan Enterprise 27/09/2019 41,420
7
754333
6
M/s World Eye 754710
5 A03901 Stationery 27/11/2019 56,511
International 5
756159
5
756159
6
757425
9
757425
8
757692
1
772540
9
772541
4
772541
5
772532
0
772532
1
16 A03901 Stationery Bashiri & Co. 773245 30/05/2020 99,274
2
773245
5
773245
4
775263
0
TOTAL 1,199,894
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Non-carrying out of Internal Check
According to Rule-13 of GFR Vol.–I, internal check of expenditure accounts is to be
carried out at least once in a year by a nominee of the head of the office.
In disregard to the above referred provision of law, it has been observed during audit of
accounts of administrative expenditure in respect of the MCC JIAP, Karachi for the year 2019-
2020, that internal check of expenditure accounts had not been conducted during the period under
audit or ever before despite the fact that the lapse is regularly being pointed out by statutory audit
every year. The result is that the internal audit report for the year 2019-20 was not made available
to Audit. The matter is serious one and warrants immediate attention of the head of the office.
Non-carrying out of Internal Check is a clear violation of/ deviation from the financial rules.
It is requested that:
a) Internal check may be conducted immediately under intimation to Audit..
(Akbar Ali)
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Non-maintenance of dead stock/fixed assets register.
According to Para 13.4 (Fixed Assets Management) of the Accounting Policies and
Procedures Manual all departments/entities will maintain a "Fixed Assets Register" (form 13A) for
the categories of assets, for which they shall include the following information.
 Description.
 Classification of asset.
 Date of purchase or date of completion.
 Original purchase cost in Rupees.
 Cost in foreign currency (where applicable).
 Asset identification number.
 Current location.
 Ownership of/responsibility for asset.
The responsibility for fixed assets recording rests with the PAO which shall ensure that the
Fixed Assets Register kept in his/her department/entity and is properly maintained and up to date.
During audit of accounts of Administrative Expenditure of the MCC JIAP, Karachi for the
year 2019-2020, it was observed that dead stock register was not being maintained as required
under said rule by the MCC.
Audit stress that the dead stock register may be maintained properly.
(Akbar Ali)

Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Misclassification of Expenditure of Rs.16,019/-
According to Para 99 of GFR Vol.I provides that “re-appropriation, which implies the
transfer of funds from one primary unit of appropriation to another unit within a grant, can be
sanctioned under formal orders of the competent authority as specified in the financial control and
budgeting 2000. In no case it is permissible to re-appropriate from a unit with the intention of
restoring the diverted appropriation to that unit when saving becomes available under other units
later in the year”

Karachi for the financial year 2019-20, it was observed that expense of service charges and
membership fees incurred in wrong head of account. This resulted of misclassification of
expenditure of Rs.16,019/- as detailed below:
Brief Description Booked in Head of Appropriate Head Amount of

of Expenditure A/c of Account Expenditure
Service charges A03807-POL A03970-Other 12,769
Membership Fees A03807-POL A03970-Other 3,250
Total Rs. 16,019
Purchases made against irrelevant heads of account are not only violation of the approved
budgetary appropriation but also an act of financial indiscipline. The above irregularity may be
regularized from the competent authority under intimation to Audit.
(Akbar Ali)
Misclassification of Expenditure on Account of P.O.L

Service
Membershi
S.No Billing Month charges
p charges
Amount
1 Jul-19 - -
2 Aug-19 - -
3 Sep-19 - 2,750
4 Oct-19 1,958 -
5 Nov-19 1,832 -
6 Dec-19 1,675 -
7 Jan-20 1,886 -
8 Feb-20 1,628 -
9 Mar-20 1,370 -
10 Apr-20 1,322 -
11 May-20 1,098 500
12 Jun-20 - -
Sub-Total 0 3,250
Grand Total 16,019
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Non-Realization of Stamp Duty Rs 7,698/-
According to Section 3 read with Schedule-I of Stamp Duty Act, 1899 any instrument of
the nature of memorandum of agreement made or entered into by a contractor with Government,
controlled by Federal Government to produce stores and materials liable to pay stamp duty @ 25
paisas for every one hundred rupees or part thereof the amount of contract.
Karachi for the financial year 2019-20, it was observed that the contract was awarded to the M/s
Waqas Enterprises for procurements of Uniforms & Livery Items for worth payments of
Rs.3,079,400/- but the stamp duty as narrated above was not levied which comes to Rs. 7,698/
Action Required: -
1. The amount may be recovered and deposit into Government Treasury.

2. Non-observance of rules may be inquired into and appropriate action be taken against the
person at fault.
(Akbar Ali)
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Irregular Expenditure on Account of Purchase of Stationery Items of Rs. 1,199,894/-
According to rule 147 and 148 of GFR Vol-I, all stationery items required to be entered in
the stock register.
During scrutiny of record of MCC JIAP Karachi, for the financial year 2019-20, it was
observed that the department incurred an expense of amount of Rs. 1,199,894/ on purchase of
stationary items, without fulfillment of codal requirement and the following short comings were
noticed.
1. The stationary items register was not maintained which is violation of rule 147 of GFR
Vol.-1.
2. The stationary items were not accounted for in the relevant Stock Register, which is
violation of rule 148 of GFR Vol.-1
3. Acknowledgement of stationary items from the concern staff who has issued and received
the stationary items was not available in the record.
In view of the above facts, the entire expenditure of Rs.1,199,894/- seems as irregular. (List
attached)
Action required:
1. Explain the irregularity and fix responsibility against the person(s) at fault for failure to
Account for the Government stock.
2. Non – observing the codal requirement be justified to Audit.
(Akbar Ali)
Non-Accountal of Stationery Items MCC JIAP Karachi during 2019-20
Head of
S.No Cheque Amount
Accoun Description Vendor Name Date
. No in Rs.
t
27/09/201
1 A03901 Stationery Bashiri & Co. 7071365 21,563
9
27/09/201
9
27/09/201
3 A03901 Stationery M/s Sultan Enterprise 7071367 41,420
9
07/11/201
9
27/11/201
5 A03901 Stationery M/s World Eye International 7547105 56,511
9
31/01/202
0
31/01/202
0
0
02/04/202
0
17/04/202
0
05/05/202
0
05/05/202
0
05/05/202
0
05/05/202
0
05/05/202
0
30/05/202
0
30/05/202
0
30/05/202
0
25/06/202
0
1,199,89
TOTAL
4
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Irregular Expenditure on Account of Courier & Pilot Service-Rs. 103,388/-
According to the Government of Pakistan Cabinet Division’s U.O No.7-1/2018 DATED

20th March 2018 directed that all government offices shall use services of Pakistan Post for mailing
their domestic and international correspondence.
During the scrutiny, of record of office of the MCC JIAP, Karachi for the financial year
2019-20, it was observed that the expenditure incurred under the head (A03205- Courier & Pilot
Service) through different private courier companies without considering the government
instruction. This resulted into irregular expenditure of Rs.103,388/- (As detailed below)
S.No Head of Cheque Amount

Description Vendor Name Date
. Account No in Rs.
755633
1 A03205 Courier and Pilot Service Tcs (Pvt) Ltd 10/01/2020 30,186
7
754406
1
755103
2
Eastern Courier 775168
4 A03205 Courier and Pilot Service 18/06/2020 9,840
Services 0
707746
7
TOTAL 103,388
Action Required:-
Irregularities need to be justified under intimation to Audit.
(Akbar Ali)

Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Irregular Payment of Mobile Phone Charges – Rs. 12,000/-
As per Cabinet Division Mobile Phone Policy circulated vide OM No.3/(3)/T&M/2015-

RA-IV dated 15.04.2016 mobile charges as an allowance through salary to all entitled regular
emplyees working in the Ministries/Division in BPS-17-22. As per clarification regarding use of
mobile phone policy vide OM No. FNo.2/26/2005-RA-IV dated 11.06.2009 at S No.2, facility is
not admissible to the officer working in attached and subordinate department etc.
During the scrutiny, of record of the MCC JIAP, Karachi for the financial year 2019-20, it
was observed that following office was availing the mobile phone charges which was in
contradiction to the clarification issued by Cabinet division. This resulted in irregular payment of
mobile phone charged amounting to Rs.12,000/-
S. Personal No. of Amount
Name Period Rate
No. Designation ID Months in Rs.
Additional
Mr. Ameer 10118957 Nov-19 to Jun-19 800 08 6,400
Collector (BS-19)
1 Nawaz
Hamid Adj-Mobile Phone Charges in the Month of January (Adjustment Bill) 1,600
Mrs. Mariam Deputy Collector

2 50156267 Nov-19 to Jun-19 500 08 4,000
Mehdi Raja (BS-18)
TOTAL 12,000
The above irregularity maybe regularized from competent the authority under intimation
to Audit.
(Akbar Ali)
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Unjustified expenditure on maintenance of garden Rs. 149,493/-
The standards of financial propriety under para 10 of the GFR provide that the expenditure
is not prima facie more than the occasion demands and that every Government Servant exercises
the same vigilance in respect of expenditure incurred from public funds as a person of ordinary
prudence would exercise in respect of expenditure of his own money.
During audit of accounts of Administrative Expenditure of the MCC JIAP, Karachi, for the
financial year 2019-20, it was observed that the Collectorate incurred expenditure amounting to
Rs. 149,493/-(As Detailed Below) on maintenance of garden (A13801) whereas, no garden was
seen in the Collectorate. Hence, the whole expenditure stands unjustified.
Head of
S.No Cheque Amount
. No in Rs
t
Maintenance of 12/11/201
1 A13801 M/s Sultan Enterprise 7544068 33,000
gardens 9
2 A13801 M/s Zubair Enterprise 7576901 9,600
gardens 0
3 A13801 M/s Sultan Enterprise 7745009 66,500
gardens 0
4 A13801 Bashiri & Co. 7561614 40,393
gardens 0
TOTAL 149,493
The matter may be justified under intimation to Audit.
(Akbar Ali)
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Misclassification of Expenditure of Rs.14,950/-
According to Para 99 of GFR Vol.I provides that “ re-appropriation, which implies the
transfer of funds from one primary unit of appropriation to another unit within a grant can be
During the scrutiny, of record of MCC JIAP for the financial year 2019-20, it was observed
that an amount of Rs. 14,950/- was paid on account of Repair of Machinery & Equipment for
Repair of AC from Zubair Enterprises but that was charged under the head of account Repair of
Furniture & Fixture by the AGPR and the expenditure was not got corrected under proper head of
account as detailed below. This resulted misclassification of head of account as per details below.
Brief Booked in Head of Appropriate Head of Cheque Date Amount of
Description of A/c Account No. Expenditure
Expenditure
A-13201 Repair of A-13101 Repair of

Repair of AC 7077112 21.10.2019 Rs.14,950
Furniture & Fixture Machinery & Equipment
Payment against irrelevant heads of account is not only violation of the budgetary
appropriation as approved by the parliament, but also an act of financial indiscipline.
Action Required
The above irregularity may be regularized from competent authority under intimation to
Audit
(Akbar Ali)
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Misclassification of Expenditure of Rs. 631,484/-
During the scrutiny, of record of MCC JIAP, Karachi for the financial year 2019-20, it was
observed that an amount of Rs. 631,484/ was paid on account of Cost of Other Stores (A-03942)
but the expenditure was not incurred under proper head of account. This resulted misclassification
of head of account (List Annexed)
Action Required
Audit
(Akbar Ali)
Misclassification on Account of Cost of Other Stores
S. Amount of
Brief Description of Booked in Head of Appropriate Head Chequ
No Vendor Name Date Expenditur
Expenditure A/c of Account e No.
. e
773246
Colour Cartridges A-03942 Cost of A-09201 Purchase M/s Sultan 29.05.202
1 1 10,998
China Other Stores of Hardware Enterprises 0
772541
False Ceiling at A-03942 Cost of A-13301 Office Bashiri & Co. 05.05.202 99,017
2 0
Various Sections Other Stores Building 0
Cartridges for HP- A-03942 Cost of A-09201 Purchase M/s Sultan 772532 05.05.202
3 99,450
Laser Jet Other Stores of Hardware Enterprises 6 0
Window Roller
A-03942 Cost of A-09701 Furniture M/s Sultan 772532 05.05.202
4 Curtains for Executive 99,450
Other Stores & Fixture Enterprises 5 0
Office
Cartridges for HP- A-03942 Cost of A-09201 Purchase 757691 17.04.202
5 Bashiri & Co. 63,180
Laser Jet Other Stores of Hardware 1 0
Matt Finish Off White A-03942 Cost of A13301-Repair 757426 02.04.202
6 Bashiri & Co. 24,570
Colour Other Stores office building 4 0
Window Roller
A-03942 Cost of A-09701 Furniture 756161
7 Curtains for Executive Bashiri & Co. 31.01.20 99,450
Other Stores & Fixture 6
Office
Cartridges (HP-85A, A-03942 Cost of A-09201 Purchase 707711
8 Bashiri & Co. 21.10.10 73,125
83A, 15A, 53A) Other Stores of Hardware 3
A-03942 Cost of A13301-Repair 707136 27.09.201
9 Matt Finish Colour Bashiri & Co. 27,495
Other Stores office building 8 9
Removing of Broken
A-03942 Cost of A13301-Repair 707135 27.09.201
10 Tiles and Fixing New Sultan Enterprises 34,749
Other Stores office building 4 9
Tiles
TOTAL Rs. 631,484
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Unjustified expenditure on Repair of Photo Copier Machines Rs. 236,500/-
Rs. 236,500/-(List Annexed) on Repair of Photo Copier Machine under the head of account
Repair of Machinery (A-13101) whereas the expenditure could have been used on Purchased of
New Photo Copier Machines instead of incurring enough amount on its repair frequently Hence,
the whole expenditure stands unjustified.
The matter may be justified.
(Akbar Ali)
Expenditure Incurred on Account of Repair of Machinery (A-13101) for Repair of Photo Copier Machine
Head of
Vouche Voucher Cheque Cheque Amount
S# Accoun Description Details of Work Vendor Name
r No. Date No Date in Rs.
t
Machinery and Repair of Photo copier M/s Zubair 27/09/201
1 A13101 848 18.09.2019 7071360 41,500
Equipment Machine Enterprise 9
2 A13101 875 31.10.2019 7544065 47,750
3 A13101 974 23.01.2020 7561609 39,800
4 A13101 893 09.04.2020 7576905 49,700
5 A13101 1051 - 7732470 57,750
TOTAL 0
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Splitting of Expenditure to Avoid Tender Under the Head of Payment to Others
for Service Rendered -Rs. 2,000,000/-
According to Rule 10 of GFR Volume-I, no authority should exercise its powers of

sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage
and Rule 146 of GFR, purchase orders should not be split up to avoid the necessity for obtaining
the sanction of higher authority required with reference to the total amount of the orders.
observed that the payment was made under the head of account for payment to others for service
renders carried out frequently without observing codal formalities as under:
 The expenditure amounting of Rs.2,000,000/- was incurred by splitting the sanction of

expenditure to avoid necessity of obtaining the sanction of higher authority.
 Only in May 2020 and June 2020 the total amount of bills paid Rs.400,020/- and
Rs.1,200,000/- respectively. List annexed.
 Rates quoted for various services were abnormally high as compared with market rates.
Action Required: -
Irregularities need to be justified, under intimation to Audit.
(Akbar Ali)

Splitting of Expenditure to Avoid Tender Under the Head of Payments to Others for
Services Rendered
Head of
S.No Cheque Amount
. No in Rs.
t
1 A03919 Bashiri & Co. 7074459 11/10/2019 84,000
2 A03919 M/s Zubair Enterprise 7077116 21/10/2019 63,000
3 A03919 Bashiri & Co. 7547850 27/11/2019 22,000
4 A03919 M/s Sultan Enterprise 7558721 20/01/2020 26,880
5 A03919 Bashiri & Co. 7561598 31/01/2020 63,000
6 A03919 Bashiri & Co. 7561599 31/01/2020 92,600
9 A03919 Bashiri & Co. 7725314 05/05/2020 98,000
12 A03919 Bashiri & Co. 7731598 30/05/2020 13,720
13 A03919 Payments to Other M/s Zubair Enterprise 7732459 30/05/2020 89,000
for Services
14 A03919 rendered Bashiri & Co. 7741741 14/06/2020 99,600
15 A03919 Bashiri & Co. 7741742 14/06/2020 98,000
16 A03919 Bashiri & Co. 7741743 14/06/2020 99,700
17 A03919 Bashiri & Co. 7741744 14/06/2020 99,900
18 A03919 Bashiri & Co. 7741745 14/06/2020 99,000
26 A03919 Bashiri & Co. 7752548 24/06/2020 10,500
2,000,00
TOTAL
0
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Splitting of Expenditure in the Head of Repair of Vehicle to Avoid Tender Rs.
1,299,906/-


Karachi for the financial year 2019-20, it was observed that the repair of vehicle was carried out
frequently without observing codal formalities as under:
 The expenditure amounting of Rs. 1,299,906/- was incurred by splitting the sanction of
 Specially in Oct, 2019 and May, 2020 the total amount of bills paid Rs. 337,241/- and
Rs.609,200/- respectively. List annexed.
 Vehicles were not repaired from proper workshop instead bills were obtained from private
venders
 Only 6 out of 24 Bills showed Car Registration Number while on 18 bills no car number
was shown indicating doubtful repairing.
 Indent / requisition for repair of vehicles from concerned officers / section was not
obtained.
 Payee acknowledgment was not obtained.
 Rates quoted for various repair were abnormally high as compared with market rates.
 Record/disposal of the replaced part of transport was not available.
Action Required: -
(Akbar Ali)
Splitting of Expenditure to Avoid Tender Under the Head of Repair of Vehicle
Head of Car
S.No Cheque Amount
Accoun Description Vendor Name Registration Date
. No in Rs.
t No.
GP-4550 11/10/201
1 A13001 Transport Bashiri & Co. 7074463 24,900
9
GP-7104 11/10/201
9
GP-6015 11/10/201
3 A13001 Transport M/s Sultan Enterprise 7074462 24,500
9
GPA-034 11/10/201
9
GP-916 11/10/201
5 A13001 Transport M/s Zubair Enterprise 7074453 24,950
9
GP-3043 11/10/201
9
-Nil- 21/10/201
9
-Nil- 21/10/201
9
-Nil- 07/11/201
9
-Nil- 31/01/202
0
-Nil- 31/01/202
0
-Nil- 31/01/202
0
-Nil- 31/01/202
0
-Nil- 31/01/202
0
-Nil- 31/01/202
0
-Nil- 31/01/202
0
-Nil- 13/04/202
0
-Nil- 14/05/202
0
-Nil- 14/05/202
0
20 A13001 Transport M/s Sultan Enterprise -Nil- 7728694 14/05/202 89,000
0
-Nil- 14/05/202
0
-Nil- 14/05/202
0
-Nil- 14/05/202
0
-Nil- 14/05/202
0
TOTAL 1,299,906
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Splitting of Expenditure in the Head of Stationary to Avoid Tender-Rs. 1,199,894/-

that the purchase of Stationary was carried out without observing codal formalities as under:
expenditure to avoid necessity of obtaining the sanction of higher authority
 Specially in May, 2020 the total amount of bills paid Rs. 790,672/- (List annexed).
 Rates quoted for the articles were abnormally high as compared with market rates.
Action Required: -
Irregularities need to be justified under intimation to Audit
(Akbar Ali)
Splitting of Expenditure to Avoid Tender Under the Head of Stationary


. Account No in Rs.
3 A03901 Stationery M/s Sultan Enterprise 7071367 27/09/2019 41,420
M/s World Eye
5 A03901 Stationery 7547105 27/11/2019 56,511
International
TOTAL 1,199,894
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Splitting of Expenditure in the Head of Cost of Other Stores to Avoid Tender-Rs.
999,976/-

observed that the expenditure was carried out under the head of account of Cost of Other Stores
without observing codal formalities as under:
 The expenditure amounting of Rs. 999,976/- was incurred by splitting the sanction of
expenditure to avoid necessity of obtaining the sanction of higher authority
 Specially in May, 2020 the total amount of bills paid Rs. 500,795/- (List annexed).
 Rates quoted for the articles were abnormally high as compared with market rates.
Action Required: -
(Akbar Ali)
Splitting of Expenditure to Avoid Tender Under the Head of Cost of Other Stores

. Account No in Rs.
27/09/201
1 A03942 Cost of Other Stores Bashiri & Co. 7071353 56,745
9
27/09/201
2 A03942 Cost of Other Stores M/s Sultan Enterprise 7071354 34,749
9
27/09/201
9
21/10/201
9
07/11/201
9
31/01/202
0
31/01/202
0
02/04/202
0
02/04/202
0
17/04/202
0
11 A03942 Cost of Other Stores M/s Sultan Enterprise 7725325 05/05/202 99,450
0
05/05/202
0
05/05/202
0
05/05/202
0
05/05/202
0
30/05/202
0
TOTAL 999,976
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Splitting of Expenditure in the Head of Purchase of Furniture and Fixture to Avoid
Tender-Rs. 799,812/-
During the scrutiny, of record of MCC JIAP, Karachi for the financial year 2019-20 it was
observed that the Furniture was purchased without observing codal formalities as under:
 The expenditure amounting of Rs. 799,812/- was purchased by splitting the sanction of
 Specially in May 2020 the total amount of bills paid Rs. 399,906/- (List annexed)
 Rates quoted for various articles were abnormally high as compared with market rates.
 Record/disposal of the replaced furniture was not available.
Action Required: -
(Akbar Ali)
Splitting of Expenditure to Avoid Tender Under the Head of Purchase of Furniture and
Fixture

. Account No in Rs.
Purchase of Furniture
1 A09701 Bashiri & Co. 7071359 27/09/2019 97,110
and Fixture
Purchase of Furniture M/s World Eye
2 A09701 7547113 27/11/2019 62,829
and Fixture International
3 A09701 Bashiri & Co. 7561601 31/01/2020 90,675
and Fixture
Purchase of Furniture M/s Sultan
4 A09701 7574268 02/04/2020 70,200
and Fixture Enterprise
5 A09701 Bashiri & Co. 7576907 17/04/2020 79,092
and Fixture
6 A09701 Bashiri & Co. 7725407 05/05/2020 87,867
and Fixture
7 A09701 7725273 05/05/2020 98,280
8 A09701 7725324 05/05/2020 97,578
9 A09701 7725416 05/05/2020 99,450
10 A09701 Bashiri & Co. 7732460 30/05/2020 16,731
and Fixture
TOTAL 799,812
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838

Sub: Splitting of Expenditure in the Head of Repair and Maintenance of Furniture to
Avoid Tender-Rs. 725,000 /-

observed that the repair and maintenance of Furniture was carried out frequently without observing
codal formalities as under:
 Specially in May 2020 the total amount of bills paid Rs. 385,150 respectively. (List annexed).
 Record/disposal of the replaced part of repair and maintenance of furniture was not available.
Action Required: -
(Akbar Ali)
Splitting of Expenditure to Avoid Tender Under the Head of Repair and Maintenance of
Furniture
Head of
S.No Cheque Amount
. No in Rs.
t
1 A13201 Bashiri & Co. 7071361 27/09/2019 17,000
2 A13201 Repair of Furniture M/s Zubair Enterprise 7074454 11/10/2019 92,700
3 A13201 and Fixtures M/s Zubair Enterprise 7077112 21/10/2019 14,950
4 A13201 Bashiri & Co. 7544066 12/11/2019 21,000
7 A13201 Bashiri & Co. 7576902 17/04/2020 12,300
TOTAL 725,000
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Splitting of Expenditure in the Head of Repair and Maintenance of Machinery and
Equipment to Avoid Tender-Rs. 1,000,000/-
During the scrutiny of record of MCC JIAP for the financial year 2019-20, it was observed
that the repair and maintenance of Machinery was carried out without observing codal formalities
as under:
 Specially in April, 2020 and May 2020 total amount of bills paid Rs.271,400/- and Rs.
319,750/- respectively (List annexed).
 Record/disposal of the replaced part of repair and maintenance of Machinery was not
available.
Action Required: -
(Akbar Ali)
Splitting of Expenditure to Avoid Tender Under the Head of Machinery and Equipment

. Account No in Rs.
1 A13101 7071360 27/09/2019 41,500
Machinery and
2 A13101 Bashiri & Co. 7544060 12/11/2019 24,500
Equipment
3 A13101 7544064 12/11/2019 21,500
4 A13101 7544065 12/11/2019 47,750
5 A13101 7546665 25/11/2019 95,000
6 A13101 7547114 27/11/2019 11,200
7 A13101 7561609 31/01/2020 39,800
8 A13101 7573201 12/03/2020 80,800
Machinery and
9 A13101 Bashiri & Co. 7576903 17/04/2020 67,500
Equipment
10 A13101 7576904 17/04/2020 70,800
11 A13101 7576905 17/04/2020 49,700
12 A13101 7576906 17/04/2020 83,400
13 A13101 7732456 30/05/2020 24,900
Machinery and
14 A13101 Bashiri & Co. 7732468 30/05/2020 88,400
Equipment
Machinery and
15 A13101 Bashiri & Co. 7732469 30/05/2020 99,800
Equipment
16 A13101 7732470 30/05/2020 57,750
17 A13101 7732471 30/05/2020 24,400
18 A13101 7732472 30/05/2020 24,500
19 A13101 7743162 14/06/2020 46,800
TOTAL 1,000,000
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Splitting of Expenditure in the Head of Purchase of Plant and Machinery to Avoid
Tender-Rs. 799,686/-
During the scrutiny of record of MCC JIAP for the financial year 2019-20, it was observed
that Purchase of Plant and Machinery was carried out without observing codal formalities as
under:
 Specially in May 2020 total amount of bills paid Rs.299,783/- (List annexed).
 Rates quoted for various Machinery Items were abnormally high as compared with market
rates.
 Record/disposal of the replaced part of Machinery was not available.
Action Required: -
(Akbar Ali)
Splitting of Expenditure to Avoid Tender Under the Head of Purchase of Plant & Machinery
Head of
S.No Cheque Amount in
. No Rs.
t
Purchase of Plant
1 A09601 Bashiri & Co. 7074458 11/10/2019 87,750
and Machinery
Purchase of Plant
and Machinery
Purchase of Plant M/s World Eye
3 A09601 7547112 27/11/2019 94,185
and Machinery International
4 A09601 Purchase of Plant M/s Sultan Enterprise 7558072 17/01/2020 83,798
and Machinery
Purchase of Plant
5 A09601 Bashiri & Co. 7561600 31/01/2020 89,850
and Machinery
Purchase of Plant
6 A09601 Bashiri & Co. 7574267 02/04/2020 85,410
and Machinery
Purchase of Plant
7 A09601 Bashiri & Co. 7576908 17/04/2020 20,709
and Machinery
Purchase of Plant
8 A09601 Bashiri & Co. 7576909 17/04/2020 20,709
and Machinery
Purchase of Plant
9 A09601 Bashiri & Co. 7725408 05/05/2020 99,450
and Machinery
Purchase of Plant
10 A09601 Bashiri & Co. 7725413 05/05/2020 72,914
and Machinery
Purchase of Plant
11 A09601 Bashiri & Co. 7732457 30/05/2020 29,133
and Machinery
Purchase of Plant
12 A09601 Bashiri & Co. 7732458 30/05/2020 98,286
and Machinery
TOTAL 799,686
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838

Sub: Splitting of Expenditure in the Head of Purchase of Hardware to Avoid Tender-Rs.
782,989/-

that the Purchase of Hardware was carried out frequently without observing codal formalities as
under:
 Specially in June, 2020 the total amount of bills paid Rs.504,201/-(List annexed).
 Record/disposal of the replaced Hardware was not available.
Action Required:-
(Akbar Ali)
Splitting of Expenditure to Avoid Tender Under the Head of Purchase of Hardware

Head of
S.No Cheque Amoun
. No t in Rs.
t
Purchase of M/s Sultan 707135 27/09/201
1 A09201 44,109
Hardware Enterprise 8 9
2 A09201 25,681
Purchase of 754666 25/11/201
3 A09201 Bashiri & Co. 24,898
Hardware 6 9
Purchase of M/s World Eye 754711 27/11/201
4 A09201 18,486
Hardware International 1 9
Purchase of 756161 31/01/202
5 A09201 Bashiri & Co. 89,505
Hardware 8 0
Purchase of 757426 02/04/202
6 A09201 Bashiri & Co. 51,480
Hardware 6 0
7 A09201 24,629
Purchase of 774501 18/06/202
8 A09201 Bashiri & Co. 99,450
Hardware 2 0
Purchase of 774501 18/06/202
9 A09201 Bashiri & Co. 99,450
Hardware 3 0
10 A09201 49,433
11 A09201 49,433
12 A09201 99,918
13 A09201 99,450
Purchase of 775254 24/06/202
14 A09201 Bashiri & Co. 7,067
Hardware 4 0
TOTAL 782,989
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Splitting of Expenditure in the Head of Repair and Maintenance of Hardware to

Avoid Tender-Rs. 599,980/-

that the repair and maintenance of Hardware was carried out frequently without observing codal
formalities as under:
 Specially in May 2020 the total amount of bills paid Rs.295,180/-(List annexed).
 Record/disposal of the replaced Hardware was not available.
Action Required:-
(Akbar Ali)
Splitting of Expenditure to Avoid Tender Under the Head of Repair and Maintenance of
Hardware
S.No Head of Cheque Amount in
. Account No Rs.
707136
1 A13701 Repair of Hardware Bashiri & Co. 27/09/2019 24,995
2
707136
3
707445
3 A13701 Repair of Hardware M/s Zubair Enterprise 11/10/2019 24,600
1
754406
7
M/s World Eye 754711
5 A13701 Repair of Hardware 27/11/2019 30,900
International 5
756161
2
756161
3
757426
9
773246
2
773246
3
773246
4
773246
5
773246
6
775254
3
TOTAL 599,980
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Misclassification of Expenditure of Rs. 878,100/-
observed that an amount of Rs. 878,100/ was paid on account of Payment to Others for Services
Rendered (A-03919) but the expenditure was not incurred under proper head of account. This
resulted misclassification of head of account (List Annexed)
Action Required
Audit.
(Akbar Ali)
Misclassification on Account of Payment to Others for Services Rendered
S.No Brief Description of Appropriate Vendor Chequ Amoun

Booked in Head of A/c Date
. Expenditure Head of Account Name e No. t in Rs.
A-03919 Payment to
A-13301 Repair 774174 12.06.2
1 Repair of False Ceiling Others for Services Bashiri 99,000
of Office Building 5 0
Rendered
A-03919 Payment to
Repair of Bathroom, Tiles A-13301 Repair Zubair 772531 05.05.2
2 Others for Services 99500
Flash, Pipes of Office Building Enterprises 6 0
Rendered
A-03919 Payment to
A-13301 Repair 772531 05.05.2
Rendered
Repair of Broken Window A-03919 Payment to A-13201 Repair
754785 29.11.1
4 and doors, Frames, Handle, Others for Services of Furniture & Bashiri & Co. 22,000
0 9
Locks Rendered Fixture
A-03919 Payment to
A-13301 Repair 756159 31.01.2
Rendered
A-03919 Payment to
A-13301 Repair Sultan 774174 12.06.2
6 Repair of False Ceiling Others for Services 99,300
of Office Building Enterprises 6 0
Rendered
A-03919 Payment to
A-13301 Repair Sultan 774174 12.06.2
Rendered
A-03919 Payment to
A-13301 Repair Sultan 774174 12.06.2
Rendered
A-03919 Payment to
Repair of Bathroom, Tiles A-13301 Repair Zubair 774175 12.06.2
9 Others for Services 99,500
Flash, Pipes of Office Building Enterprises 2 0
Rendered
A-03919 Payment to
A-13301 Repair 774174 12.06.2
10 Matt Finish Colour Others for Services Bashiri & Co. 99,900
Rendered
878,10
TOTAL
0
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Doubtful Expenditure under various heads to Rs. 1,041,931/-
Rs. 1,041,931/- (List Annexed) on Colouring, False Ceiling and Tiles repairing whereas, the
vouchers were taken from general order suppliers instead of proper construction related vendor .
Hence, the whole expenditure seems doubtful.
(Akbar Ali)
Doubtful Expenditure Under Various Heads
MCC JIAP, Karachi Karachi during 2019-20
Brief
S. Vendor Cheque Amount
Description of Head of A/c Date
No. Name No. in Rs.
Expenditure
False Ceiling at A-03942 Cost of Other Bashiri &
1 7725410 05.05.2020 99,017
Various Sections Stores Co.
Matt Finish Off A-03942 Cost of Other Bashiri &
2 7574264 02.04.2020 24,570
White Colour Stores Co.
Matt Finish A-03942 Cost of Other Bashiri &
3 7071368 27.09.2019 27,495
Colour Stores Co.
Removing of
A-03942 Cost of Other Sultan
4 Broken Tiles and 7071354 27.09.2019 34,749
Stores Enterprises
Fixing New Tiles
Repair of False A-03919 Payment to Others
5 Bashiri 7741745 12.06.20 99,000
Ceiling for Services Rendered
Repair of
A-03919 Payment to Others Zubair
6 Bathroom, Tiles 7725316 05.05.20 99500
for Services Rendered Enterprises
Flash, Pipes
7 Bashiri 7725314 05.05.20 98,000
8 Bashiri 7561598 31.01.20 63,000
Repair of False A-03919 Payment to Others Sultan
9 7741746 12.06.20 99,300
Ceiling for Services Rendered Enterprises
10 7741747 12.06.20 98,900
11 7741748 12.06.20 99,000
Repair of
A-03919 Payment to Others Zubair
12 Bathroom, Tiles 7741752 12.06.20 99,500
for Services Rendered Enterprises
Flash, Pipes
Matt Finish A-03919 Payment to Others Bashiri &
13 7741744 12.06.20 99,900
Colour for Services Rendered Co.
TOTAL 1,041,931
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Doubtful Expenditure under various heads to Rs. 587,500/-
Rs. 587,500/- (List Annexed) on Shifting of Confiscated Vehicles, old office record, furniture,
Equipment, Office Record and Office Goods From Custom House, Arrival, Departure and Exports
to JIAP Karachi whereas, the vouchers were taken from general order suppliers instead of proper
Transportation related vendor . Hence, the whole expenditure seems doubtful.
(Akbar Ali)
Doubtful Expenditure on Shifting of Confiscated Vehicles, Office Record, Goods & Furniture
MCC JIAP, Karachi Karachi during 2019-20
Head of
Shifted Vendor Cheque Amount
S.No. Accoun Title Of Accunt Description Date
From Name No in Rs.
t
Expenditure on Shifting of Confiscated M/s Zubair 21/10/201
1 A03928 - 7077118 85,000
Confiscated Goods Vehicles Enterprise 9
Expenditure on Shifting of Old Record, Customs 17/04/202
2 A03928 Bashiri & Co. 7576912 99,000
Confiscated Goods Furniture and Equipment House 0
Expenditure on Shifting of Confiscated M/s Zubair 18/06/202
3 A03928 - 7744481 66,000
Confiscated Goods Vehicles Enterprise 0
Transportation of Shifting of Office Record, Customs 27/11/201
4 A03806 Bashiri & Co. 7547103 41,000
Goods Furniture House 9
Transportation of M/s Sultan 12/03/202
5 A03806 Shifting of Office Goods Arrival 7573203 18,000
Goods Enterprise 0
Transportation of M/s Zubair 12/03/202
6 A03806 Shifting of Office Goods Departure 7573202 23,000
Goods Enterprise 0
Transportation of 02/04/202
7 A03806 Shifting of Office Goods Exports Bashiri & Co. 7574257 14,000
Goods 0
8 A03806 Shifting of Office Goods Exports 7725322 60,000
Goods Enterprise 0
9 A03806 Shifting of Office Goods Departure 7725323 50,000
Goods Enterprise 0
Transportation of Shifting of Office Record, Customs 29/05/202
10 A03806 Bashiri & Co. 7732453 32,000
Goods Furniture House 0
Transportation of Shifting of Confiscated M/s Zubair 12/06/202
11 A03806 - 7741740 99,500
Goods Vehicles Enterprise 0
TOTAL 587,500
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Non-maintenance of Cash Book.
During audit scrutiny of the record pertaining to MCC JIAP, Karachi for the financial year
2019-20, it was observed that no Cash book was being maintained in the Collectorate as without
maintaining Cash Book the payment in respect of cheques other than Cross Cheques, pay bills,
arrear of pay bills and other cash payments through DDO account/Collector account cannot be
verified as required under Rule 77(i) of FTR Volume-1 read with para-6-27 of DDO Handbook.
This resulted into non-maintenance of Cash Book.
The Collectorate of MCC JIAP, Karachi was requested that omission may be justified.
Remedial measures may be taken in this respect and the Audit be intimated accordingly.
(Akbar Ali)

Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Expenditure Incurred on Pol Without Maintenance of Record for the Office Vehicle
Rs. 2,300,000/-
According to Para 10 (1) of GFR Vol- I states, “every Government officer is expected to
exercise the same vigilance in respect of expenditure incurred from public money, as a person of
ordinary prudence would exercise in respect of expenditure of his own money,
Further according to Rule15- Maintenance of Record, to the staff car rule 1980 the
following registers/Book shall be maintained.
1. Vehicle Log Book on Form-A and shall remain in the custody of the vehicle
2. Movement Register.
3. History sheet of the vehicle, a bond register containing about 50 pages which remain
in
the custody of officer Incharge.
4. Petrol Account, Record of mileage/Consumption Register separately in Form C

Karachi for the financial year 2019-20, it was observed that the expenditure amounting to
Rs.2,300,000/ incurred on POL (A03807) but neither the log book nor history sheet was
maintained by the department. (List attached).
In absence of fulfillment of formalities narrated above the expenditure incurred under the
head held irregular.
Action Required:-
1. Non-maintenance of relevant record may be justified to audit.
2. Expenditure incurred on POL without fulfillment of codal formalities be deposited into
Government Treasury.
(Akbar Ali)

Expenditure Incurred on Account of P.O.L Without Maintenance of Record
MCC JIAP, Karachi during 2019-20

. Account No in Rs.
1 A03807 P.O.L Charges New Aero Service Station 7070150 23/09/2019 196,632
2 A03807 P.O.L Charges Pakistan State Oil Co. LTD. 7077543 22/10/2019 2,750
TOTAL 2,300,000
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Doubtful Purchase of Uniforms and Protective Clothing Amounting to Rs. 3,407,803/-
According to Para -148 of GFR-VoI-I, “all materials received should be examined counted,
measured or weighed as the case may be, when delivery is taken, and they should be taken in
charge by a responsible Government officer who should see that quantities are correct and their
quality good, and record a certificate to that effect. The officer receiving the store should also be
required to give a certificate that he has actually received the materials and recorded them in the
appropriate stock register”.
During the scrutiny of record of MCC JIAP Karachi for the financial year 2019-20, it was
observed that the Uniforms worth Rs. 3,407,803/- were purchased under the head of Account A-
03906- Uniforms and Protective Clothing. The purchases are doubtful because no supporting
record/documents such as stock entries and demand-based consumption was available in record.
(List annexed).
Expenditure was incurred on purchases without any evidence of stock under the head
which is unauthentic and doubtful.
Action Required: -
The amounts drawn on unauthentic claims should be recovered or justify the position under
intimation to the Audit.
(Akbar Ali)

Doubtful Purchase of Uniforms and Protective Clothing
S.No Head of Cheque Amount in

. Account No Rs.
Uniforms and M/s World Eye
1 A03906 7547106 27/11/2019 62,419
Protective Clothing International
Uniforms and M/s World Eye
2 A03906 7547107 27/11/2019 99,403
Protective Clothing International
Uniforms and
3 A03906 Bashiri & Co. 7561597 31/01/2020 90,441
Protective Clothing
Uniforms and
4 A03906 Bashiri & Co. 7573198 12/03/2020 24,863
Protective Clothing
Uniforms and M/s Sultan
5 A03906 7574261 02/04/2020 23,154
Protective Clothing Enterprise
Uniforms and
6 A03906 Bashiri & Co. 7576916 17/04/2020 18,018
Protective Clothing
Uniforms and
7 A03906 Bashiri & Co. 7576917 17/04/2020 89,505
Protective Clothing
Uniforms and M/Swaqas
8 A03906 7752631 25/06/2020 3,000,000
Protective Clothing Enterprises
TOTAL 3,407,803
Customs (South)
Phone # 021-99244837, 99244839, Fax # 021-99244838
Sub: Unjustified Expenditure under the head of Repair & Maintenance of Machinery &
Equipment- Rs. 587,500/-
During scrutiny of record of MCC JIAP Karachi, for the financial year 2019-20, it was
observed that the Collectorate was established just one year ago and purchased Photo copy
machine, Printers, and various items while being a general standard that every machinery
equipment has minimum one warranty for claim. Instead of claiming warranty the MCC incurred
expenditure amounting to Rs. 1,000,000/- on its repair and maintenance which clearly shows loss
of government money therefore whole expenditure seems unjustified.
Action required:
Explain the justification and fix responsibility against the person(s) at fault for failure.
(Akbar Ali)

1.JIAP Observations

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1.JIAP Observations

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Government of Pakistan

Office of the Director General Audit, Inland Revenue &

No. FAT-15/Obs./Exp./MCC JIAP/K/2020-21 Dated: -08-2020

Audit Observation No. 01

Sub: Unauthorized Expenditure under various heads due to non-compliance of Budget

During audit of Administrative Expenditure of the Model Customs Collectorate JIAP,

The Collector, MCC JIAP, Karachi

Re- Re- Final Expenditure

No. FAT-15/Obs./Exp./MCC JIAP/K/2020-21 Dated: -08-2020

Audit Observation No. 02

Sub: Lapse of government money due to non-surrender of savings –Rs. 1,917,986/-

During audit of Administrative Expenditure of the Model Customs Collectorate JIAP,

Non-surrender of savings is violation of above rule.

The matter may please be looked into and justified to Audit.

The Collector, MCC JIAP, Karachi

No. FAT-15/Obs./Exp./MCC JIAP/K/2020-21 Dated: -08-2020

Audit Observation No. 03

No. FAT-15/Obs./Exp./MCC JIAP/K/2020-21 Dated: -08-2020

Audit Observation No. 04

The matter may please be looked into and justified to Audit.

The Collector, MCC JIAP, Karachi

1 A01101 BASIC PAY OF OFFICERS 4,981,390 5,618,160 636,770

No. FAT-15/Obs./Exp./MCC JIAP/K/2020-21 Dated: -08-2020

Audit Observation No. 05

Sub: Non-Adjustment of TA/DA advances – Rs.198,049/-

The Collector, MCC JIAP, Karachi

No. FAT-15/Obs./Exp./MCC JIAP/K/2020-21 Dated: -08-2020

Audit Observation No. 06

Sub: Non-reconciliation of annual financial statement with DGPR

According to revised procedure for operation of Assignment Account issued by Finance

The Collector, MCC JIAP, Karachi

No. FAT-15/Obs./Exp./MCC JIAP/K/2020-21 Dated: -08-2020

Audit Observation No. 07

Sub: Non-disposal of parts purchased/replaced during 2019-20

The Collector, MCC JIAP, Karachi

Head of Cheque Amount

No. FAT-15/Obs./Exp./MCC JIAP/K/2020-21 Dated: -08-2020

Audit Observation No. 08

Sub: Non-disposal of spare parts purchased/replaced on account of repair of

Expenditure Incurred on Account of Repair of Transport

No. FAT-15/Obs./Exp./MCC JIAP/K/2020-21 Dated: -08-2020

Audit Observation No. 09

Sub: Non-maintenance of Stationery Register

The Collector, MCC JIAP, Karachi

No. FAT-15/Obs./Exp./MCC JIAP/K/2020-21 Dated: -08-2020

Audit Observation No. 10

Sub: Non-carrying out of Internal Check

According to Rule-13 of GFR Vol.–I, internal check of expenditure accounts is to be

a) Internal check may be conducted immediately under intimation to Audit..

The Collector, MCC JIAP, Karachi

No. FAT-15/Obs./Exp./MCC JIAP/K/2020-21 Dated: -08-2020

Audit Observation No. 11

Sub: Non-maintenance of dead stock/fixed assets register.

The Collector, MCC JIAP, Karachi

No. FAT-15/Obs./Exp./MCC JIAP/K/2020-21 Dated: -08-2020

Audit Observation No. 12

Sub: Misclassification of Expenditure of Rs.16,019/-

During audit of Administrative Expenditure of the Model Customs Collectorate JIAP,

Brief Description Booked in Head of Appropriate Head Amount of

The Collector, MCC JIAP, Karachi

Misclassification of Expenditure on Account of P.O.L

No. FAT-15/Obs./Exp./MCC JIAP/K/2020-21 Dated: -08-2020

Audit Observation No. 13

Sub: Non-Realization of Stamp Duty Rs 7,698/-