OS AUDIT OBSERVATION MANAGEMENT REPLY REMARKS

NO.
1. Employees mentioned in the
Overpayment of conveyance allowance during summer vacation Rs 15.071 observation was nominated
million as dengue focal person by
the District Education
Risk Categorization: High Authority and perform their
duties during the period of
Criteria summer vacations. Hence
According to Clause 7-A of Sub-Treasury Rules 1947, conveyance allowance is not conveyance allowance is
admissible during leave period. According to School Education Department, admissible to them.(Annex-I)
Government of Punjab notification No SO (A-I) 1-31/2008 (P-1) it is
hereby notified that all public schools shall remain closed w.e.f. 1.6.2022
to 31.7.2022.
Facts

During certification audit of annual account of DEA Sheikhupura for the FY 2022-
23, it was revealed that conveyance allowance was paid to the teaching staff during
summer vacations without admissibility as detailed in annexure-A.

Implications:
Audit is of the view that due to weak financial controls conveyance allowance was
paid during summer vacations.

Recommendations:
Audit recommends recovery of conveyance allowance paid during summer
vocations.

Management
Department that :conveyance allowance paid during vocation has totally been
response
replied
made.

Further Audit Comments

 During exist meeting held on 10.11.2023 between RDA and DAO
Sheikhupura it was decided that DAO would produce documentary
evidence in support of reply.

2. Recovery started through

Overpayment of conveyance allowance -Rs 120,000 regular payroll from the
month of October 2023.
Risk Categorization: High

Criteria
According to letter No FD.SR.1.9-4/66(P)(PR) dated 21-04-2014 of Government of
Punjab, Finance Department, conveyance allowance is not allowed to officers
availing facility of official vehicle/motor cycle and conveyance allowance earlier
allowed on the basis of certificate of not using vehicle from house to office was
withdrawn with immediate effect
Facts

During certification audit of annual accounts of DEA, Sheikhupura for the FY 2022-
23, it was observed from the HR data that Deputy District Education Officers were
provided official vehicles but they were drawing conveyance allowance as detailed
below:-
Cost Job
Cente Personne Descripti Jul-
r ACT Cost Center Desc l No Employee Name on 2022 Amount
SY60 DY DEO (EE-M) RASHID DEPUT
07 SHARAQPUR 30293251 AHMAD YDEO 5000 60,000
SY63 DY DEO (EE-F) RUKHSANA DEPUT
10 TEHSIL SHARAQPUR 30738174 CHIRAGH YDEO 5000 60,000
Total:- 120,000

Implications:
 Audit is of the view that due to weak financial management conveyance allowance
was paid.

Audit recommends recovery of conveyance allowance.

Department replied that recovery of conveyance allowance paid during summer

vocations have been made.

During exist meeting held on 10.11.2023 between RDA and DAO

Sheikhupura it was decided that DAO would produce documentary
evidence in support of reply.

3. As per SAP HR report

Overpayment of HRA 45% instead 30% Rs 150,524 (YPHRISN) Employees
mentioned in the
Risk Categorization: High observation were transferred
from Lahore to District
Criteria Sheikhupura in different
According to office memorandum No F.2(2)R-5/2020 dated 02-07-2018 (Regulations months during the financial
Wing) Finance Division para -7 of the Finance Division O.M No. F.1/7/Imp-II/87 year 2022-23.
dated 01-07-1987, the rate of house rent allowance will be 45% of the minimum of House Rent @45% was
BPS-2008 for the declared big cities and for other cities @ 30% of the minimum of admissible to them during
BPS-2008. the period of their posting at
Lahore. After joining at
District Sheikhupura House
Rent Allowance @ 30% has
been granted to them.
During Certification Audit of annual accounts of DEA Sheikhupura for the FY 2022- Hence no recovery involved.
23, it was observed from HR data that DAO Sheikhupura made payments to the staff
on account of house rent allowance @ 45% instead of 30% as detailed below;

Co ACT Cost Per Employee Job WAG Rat 35% Differ Over
st Center Desc son Name Discrip E e ence pam
Ce nel tion TYP 45 ent
nte No E %
r DES
CRIP
TIO
SY SENIOR HEAD 300 MUHAM HEAD HRA 871 5810 2905 3486
637 MASTER GOVT 676 MAD MAST 45% 5 0
9 HIGH SCHOOL 56 SIDDIQU ER
KAR E
SY PRINCIPAL 302 GUL E SENIO HRA 665 4433.3 2216. 2660
623 GOVT GIRLS 129 ADAN R 45% 0 33 667 0
9 HIGHER 38 HEAD
SECONDARY S MISTR
ESS
SY PRINCIPAL 302 MISBAH HEAD HRA 665 4433.3 2216. 2660
621 GOVT GIRLS 365 ZAHEER MISTR 45% 0 33 667 0
0 HIGHER 55 ESS
SECONDARY S
SY SR H MASTER 304 MUHAM SENIO HRA 665 4433.3 2216. 2660
612 GOVT ISLAMIA 424 MAD R 45% 0 33 667 0
5 HIGH SCHOOL 81 KHALID- HEAD
MEHMO MAST
OD ER
SY PRINCIPAL 304 MAHR DRIVE HRA 231 1544 772 9264
625 GOVT INTER 873 MUHAM R 45% 6
5 COLLEGE FOR 63 MAD
 DEAF RIAZ
SY PRINCIPAL 305 SHAIDA SR HRA 665 4433.3 2216. 2660
613 GOVT GIRLS 402 PERVEE SUBJE 45% 0 33 667 0
3 HIGHER 69 N CT
SECONDARY SPECI
ALIST
Total: 1505
24

Audit is of the view that due to weak financial controls HRA was paid @ 45%
instead of 30%.

Audit recommends recovery of overpayment besides fixing of responsibility

for excess payment.

Management replied that HRA @ 45% is stopped and recovery of over

payment of different is incorporated in the regular payroll for the month of
October 2023.

During exist meeting held on 10.11.2023 between RDA and DAO

Sheikhupura it was decided that department would produce documentary
evidence in support of reply.

4.
Payment of conveyance allowance against OSD posts- Rs 387,324
Risk Categorization: High Payment of conveyance
 Allowance to O.S.D posts has
Criteria been discontinued and
As per Govt. notification the family of the deceased Govt. employee is entitled to pay recovery of overpaid amount
and allowance till the date of superannuation against the post of Officer on Special has been started through
Duty (OSD) regular payroll from the
month of October 2023.

During certification audit of annual accounts of HR data of DEA Sheikhupura

for the FY 2022-23, it was observed that conveyance allowance was paid against the
post of OSD after the death of Govt. servant as detailed annexed.

Cost ACT Cost Center Personnel Employee Job WAGE TYPE Rate Amo
Center Desc No Name Description DESCRIPTI
O
SY7614 PRIMARY AND 30291882 MUHAMMAD OSD CA 2005 2856
MIDDLE ASHFAQ DECEASED
SCHOOLS LATE
MURIDKE MALE
SY7616 PRIMARY AND 30303662 SHAHZAD OSD CA 2005 2856
MIDDLE AHMAD DECEASED
SCHOOLS
FEROZWALA
SY6102 HM GGHS KOT 30544471 Asifa Aslam OSD CA 2005 2856
ABDUL MALIK DECEASED
SY7608 PRIMARY AND 30615656 KHALIDA OSD CA 2005 2856
MIDDLE PERVEEN late DECEASED
SCHOOLS
SHEIKHUPURA
SY6453 GGHS KALA 30732785 MOHD OSD CA 2005 1785
KHATAI NAWAZ late DECEASED
SY6236 HM GHS 30820105 MUHAMMAD OSD CA 2005 1932
KHANGAH NAWAZ DECEASED
DOGRAN LATE
SY7608 PRIMARY AND 30909175 HALEEMA OSD CA 2005 2856
MIDDLE BIBI LATE DECEASED
 SCHOOLS
SHEIKHUPURA
SY6121 HM GHS 31569578 MUHAMMAD OSD CA 2005 2856
RAFIQABAD SHAFIQUE DECEASED
NARANG LATE
SY6106 HM GGHS BURJ 31678102 SADIA OSD CA 2005 2856
ATTARI BASHIR DECEASED
SY7608 PRIMARY AND 31773236 UZMA OSD CA 2005 2856
MIDDLE MAQSOOD DECEASED
SCHOOLS LATE
SHEIKHUPURA
SY6121 HM GHS 32028069 ZAHEER OSD CA 2005 2856
RAFIQABAD AHMAD DECEASED
NARANG (LATE)
SY7614 PRIMARY AND 32057239 SAJIDA OSD CA 2005 2856
MIDDLE ISRAEEAL DECEASED
SCHOOLS
MURIDKE MALE

Audit is of the view that payment of conveyance allowance on OSD posts was due to
weak internal control.

Audit recommends recovery of conveyance allowance besides fixing of responsibility

against the persons at fault.
 Management replied that conveyance allowance to OSD posts has been
stopped and recovery of overpayment has been incorporated in the regular
payroll for the month of October, 2023.

During exist meeting held on 10.11.2023 between RDA and DAO

Sheikhupura it was decided that department would produce documentary
evidence in support of reply.

5. Corrections have been made

Payment of pay & allowances without joining dates in SAP

Risk Categorization: High

Criteria
According to Rule 2.31(a) of PFR Volume I, a drawer of bill for pay, allowances,
contingent and other expenses will be held responsible for any over charges, frauds
and misappropriations.

Facts

During Certification Audit of annual accounts of District Education Authority

Sheikhupura for the FY 2022-23, it was observed from HR data that employees were
recruited but joining dates were not mentioned in SAP system as detailed in
Annexure-B.

Implications:
 Audit holds that joining dates of employees were not mentioned in HR data of
SAP System due to weak internal controls and poor financial discipline.

Recommendations:
Audit recommends corrections in SAP data.

Management replied that necessary corrections has been made.

During exist meeting held on 10.11.2023 between RDA and DAO

Sheikhupura it was decided that department would produce documentary
evidence in support of reply.

6. Corrections have been made

Irregular payment of pay & allowance with wrong CNICs in SAP.

Risk Categorization: High

Criteria
According to Rule 2.31(a) of PFR Volume-I, a drawer of bill for pay, allowances,
contingent and other expenses will be held responsible for any over charges, frauds
and misappropriations.

Facts
 During Certification Audit of annual accounts of District Education Authority,
Sheikhupura for the FY 2022-23, it was observed that employees were drawing pay
& allowances with wrong CNIC numbers in HR data of SAP as detailed in
Annexure-C.

Implications

Audit is of the view that payments of pay & allowances with incorrect CNICs
numbers was due to weak internal controls.

Audit recommends correction of CNIC numbers in SAP.

Management noted the observation but did not offer any comments.

During exist meeting held on 10.11.2023 between RDA and DAO

Sheikhupura it was decided that department would produce documentary
evidence in support of reply.

7. There is no difference
Difference between appropriation account and schedule of authorized between budgeted figures of
expenditure-Rs 30.217 million Budget Book and
Appropriation Accounts
Risk Categorization: High figures as per copy of
 schedule of authorized
Criteria expenditure dully signed by
According to District Authority Budget rule 2017 Clause 51 “The Chief Executive CEO Education and Deputy
Officer shall forward a copy of authenticated schedule of authorized expenditure to Commissioner
Accountant General Punjab and District Accounts Officer. Further as per clause 52 (Administrative of Authority)
“The Chief Executive Officer shall as per Schedule of Authorized Expenditure, (Annex-II).
Communicate and distribute the grants to the head of offices or institutions and the As per information provided
Drawing and Disbursing Officers within the first two week of July.” by the Authority the
difference amount of Rs.
30.217 million mentioned in
the observation relates to
5% reserved closing balance
shown in the summery
During the certification audit of annual accounts of District Education Authority, prepared for approval of
Sheikhupura for the FY 2022-23 it was revealed that as per schedule of authorized Revised/Final Budget.
expenditure the revised/final budget was Rs 9418.115 million whereas Rs 9387.898 (Annex-III)
million was shown in the appropriation account. The difference of Rs 30.217 million
needs justification as detailed below;

(Rs in million)
Year Revised/Final as per Revised/Final as per Differenc
budget book appropriation e
account
2022-23 9418.115 9,387.898 30.217

Audit is of the view that difference between appropriation account and schedule of
authorized expenditure was due to weak internal controls.
 Audit recommends correction in the accounts.

Management replied that the difference was due to 5% reserved for closing
balance.

During exist meeting held on 10.11.2023 between RDA and DAO

Sheikhupura it was decided that the matter will be placed before the AG
Punjab.

8. As per information
Non-obtaining the approval of supplementary grant – Rs 774.424 million provided by the District
Education Authority all
Risk Categorization: High figures of supplementary
budget has been approved
Criteria by the Administrator of
According to Rule 65(1) & (2) and 66 of Punjab District Government Budget Rules District Education
2017 regarding supplementary grant, “in case a head of office or institution consider Authority as per
that need of additional funds has arisen for which no re-appropriation is available, he rules(Annex-IV)
shall submit a proposal for supplementary grant to the CEO. The B&F Officer shall
forward the request for supplementary grant to the CEO with the recommendation
specific to availability of funds to meet the request for supplementary grant”. The
form and manner in which the supplementary budget statement is presented to the
authority shall be the same as that of annual budget
Facts
During the Certification Audit of annual accounts of District Education Authority,
Sheikhupura for the financial year 2022-23, it was observed that budget estimates i.e
Original, Revised and Supplementary of Rs 9274.756 million, Rs 774.424 million
and Rs 9387.898 million respectively were approved. Approval of Supplementary
Budget of Rs 774.424 million was not on record. Approval of supplementary
budget was neither provided by the District Accounts Office nor by District
Health Authority. Audit infers that it may be the difference of excess and
surrender statement which was reflected as supplementary grant.
Presentation of supplementary budget in the appropriation account without
its approval is unjustified.
(Rs in million)
Year Original/ Supplementar Revised/final
annual budget y budget budget
2022-23 9274.756 774.424 9387.898

Audit is of the view that due to weak financial management approval of

supplementary grant was not obtained.

Audit recommended approval of supplementary grant.

Department replied that all the supplementary grants are approved by the
administrative of DEA Sheikhupura.
 During exist meeting held on 10.11.2023 between RDA and DAO
Sheikhupura it was decided that DAO would produce documentary
evidence in support of reply and matter will be placed before the AG Punjab
for discussion.

9. a. Figures of Public
Non-reconciliation of cheque’s clearing with charged expenditure & un- Account items i.e. GP
reconciled expenditure Fund and Trust
Accounts have been
Risk Categorization: High
shown at page No.02
Criteria of Finance Accounts
as well as in Financial
Statements.
Para 7.2.4.3 of the APPM states that the annual accounts is an annual b. Figures of
summary of the overall financial position of each Government as at the end of the
Expenditure shown
financial year.
in Appropriation
Accounts are same
Facts as shown in FI data
of SAP, further
During certification audit of DEA Sheikhupura for the FY 2022-23, scrutiny necessary
of FI data and appropriation account revealed that payments of Rs 1.096 million reconciliation has
made from NBP Cheque Clearing Account differed from payments shown in the been made with the
Appropriation Account as detailed below; (figures in Rs) monthly accounts.
Chq Clearing-FI Appropriation Differenc
Item Data Account e
1,096,03
Payment 9,216,496,619 9,215,400,588 1
 Details of object heads
1. Sr No 2. Head Expenditure

3. 1 4. A01 8,856,018,769

5. 2 6. A03 69,972,721
7. 3 8. A04 157,085,920
9. 4 10. A05 48,800,000
11. 5 12. A06 78,228,000
13. 6 14. A09 2,589,220
15. 7 16. A13 2,705,958
17. 18. Total: 9,216,496,619

Audit is of the view that difference between FI and appropriation account

was due to weak financial management.

Audit recommends reconciliation.

Management replied that the figures shown in appropriation account are

same as shown in FI data. Further, necessary reconciliation is also being
made with the DEA.
 During exist meeting held on 10.11.2023 between RDA and DAO
Sheikhupura it was decided that department would produce documentary
evidence in support of reply.

10. a. Amount of Income Tax

Un-explained items of finance account & SAP accounting record and Sales Tax has been
transferred to Federal
Risk Categorization: High Government in the following
month after compiling the
Criteria monthly accounts for the
According to Section 68 of the Punjab District Authorities (Budget) Rules 2017 read month of July 2023 as per
with Rule 7 (h) of Punjab District Authorities Accounts Rules, 2017, the primary sub section a & b of para 4 of
obligation of the collecting officer shall be to ensure that all revenue due is claimed, Finance Department
realized and credited immediately to the District Authority fund. And, to record Notification No. IT(FD)3-
entries under proper receipt head and all cash transactions shall be entered in receipts 4/2002 dated 27.08.2002
register and cash book and attested accordingly. According to Rule 5.3.4.4, (Annex-V).
repayment of expenditure from annual appropriation occurring in a sub-sequent b. Amount under Head
financial year to the original transaction must be credited to revenue. G01201 outstanding
commitments has been
shown at page 7 of Finance
Facts Account of District Education
During certification audit of DEA Sheikhupura for the FY 2022-23 scrutinise of Authority.
Finance Account and SAP accounting record revealed following observations:

a. Taxes amounting to Rs 2,256,489 & Sales Tax amounting to Rs 3,377,123

was not transferred to Federal & Provincial treasury respectively.
b. Head under G01201: outstanding commitments in SAP accounting system
amounting to Rs 85,806,684 were not explained.
 Implications

Audit is of the view that due to weak financial management Un-explained

items of finance account was made.

Audit recommends that taxes to be deposited in government treasury and unexplained

items be justified.

Management replied that Income Tax & Sales Tax have been transferred
during the month of July 2023. Amount under head G01201 outstanding
commitments has been shown at page 7 of Finance Account of DEA.

been recorded in the same.

During exist meeting held on 10.11.2023 between RDA and DAO

Sheikhupura it was decided that DAO would produce documentary
evidence in support of reply.

11. Funds amounting to

Misclassification of development expenditure – Rs 13.500 million Rs.13.500 million have
been transferred to XEN
Risk Categorization: High Building during the
financial year 2022-23 as
Criteria
As per rule 11(1) of The Punjab District Authorities (Budget) Rules 2017, per Finance Department
“The budget of the District Authority shall be prepared on the chart of accounts Notification No.BI-3(120)-
issued by the Auditor General of Pakistan”. As per para 4.4.5.1 of Accounting AGP/2021-22 dated
 Policies and Procedures Manual, in the computerized system the delegated officer in 23.11.2021. (Annex-VI)
the account section of the District Account office or the Accountant General office
must enter the claim and payment details into the computer system against the
appropriate expenditure head code (account code), as set out in the Chart of
Accounts.

Facts
During the certification audit of DEA Sheikhupura for the FY 2022-23, it was
observed that District Account Officer Sheikhupura transferred fund of Rs 13.500
million to Executive Engineer Building Division Sheikhupura on behalf of CEO
DEA. The transfer of funds was booked under the head “A05270-others” instead of
head A06-Transfer Payments in violation of guidelines quoted above. Detail of fund
transferred is annexed.
Cost Cost Center Documen Posting G/L Vendor Name
Cente Desc t No Date Amount
r
SY899 CEO DEA 19000820 19.09.20 A052 XEN Buildings 1,700,00
6 SKP 23 22 70 0
SY899 CEO DEA 19000820 19.09.20 A052 XEN Buildings 2,450,00
6 SKP 24 22 70 0
SY899 CEO DEA 19000820 19.09.20 A052 XEN Buildings 1,500,00
6 SKP 25 22 70 0
SY899 CEO DEA 19001300 19.09.20 A052 XEN Buildings 3,020,00
6 SKP 52 22 70 0
SY899 CEO DEA 19001540 19.09.20 A052 XEN Buildings 2,450,00
6 SKP 39 22 70 0
SY899 CEO DEA 19001540 19.09.20 A052 XEN Buildings 2,380,00
6 SKP 40 22 70 0
Total: 13,500,0
00
 Audit hold that due to weak financial controls misclassification was made.
.

Audit recommends for regularization of expenditure besides fixation of responsibility

on person(s) at fault under intimation to Audit.

Management replied that funds amounting to Rs 13.500 million have been

transferred to XEN Buildings Department during the FY 2022-23 as per FD
notification No. BI-3(120)-AGP/2021-22 dated 23.11.2023.

During exist meeting held on 10.11.2023 between RDA and DAO

Sheikhupura it was decided that matter will be placed before the AG Punjab.

12. Noted for compliance

Non-preparation of Trial Balance
Risk Categorization: High

Criteria
Para 7.4.4.7 of Accounting Policies and Procedures Manual (APPM) requires
that a trial balance report should be produced showing the closing balances of all
assets and liabilities and it is reviewed by the Accountant General and duly
authorized.

Facts
 During certification Audit of District Education Authority Sheikhupura (Account-V)
for the financial Year 2022-23, it was observed that Trial Balance was not prepared
in violation of the above accounting policies. Due to non-preparation of Trial Balance
significant errors may go undetected.

Audit hold that due to weak financial controls trial balance was not
maintained.
.

Audit recommends preparation of trial balance.

Management noted the observation for compliance.

During exist meeting held on 10.11.2023 between RDA and DAO

Sheikhupura it was decided that DAO will prepare trial balance.

13. Noted for compliance

Non-maintenance of accounting record of Assets and Liabilities
Risk Categorization: High

Criteria
As per Para 13.4.1.1 of APPM, all departments/entities will maintain a "Fixed
Assets Register" (form 13A) for the categories of assets, for which they are
responsible. Further the matter was also emphasized for maintenance of assets record
vide AGP office letter No.660/02/P&C/1-C/2014(PF-II) dated 19-08-2016.
 Facts
During certification Audit of District Education Authority Sheikhupura
(Account-V) for the financial Year 2022-23, it was observed that format of
Commitment, asset and liability accounting practices have not yet been implemented
and memorandum register for assets and commitments do not exit and accounting for
liabilities was not done in accordance with NAM.

Audit hold that due to weak financial controls Asset & Liability Register was
not maintained.
.

Management noted the observation but did not offer any comments.

Management noted the observation for compliance.

During exist meeting held on 10.11.2023 between RDA and DAO

Sheikhupura it was decided that department will prepare trial balance.