Presentation PAC - 03

8/3/2019 Presentation PAC - 03

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Definitions Governance: the system by which organizations are directed

and controlled-manage the govt. business well.

Internal Audit: An independent and objective assurancedesigned to add value and improve an organizations

operations. Enterprise Risk Management: A process-effected by entitys

BoD and management-applied in strategy setting across theenterprise, designed to identify potential events that may

affect the entity, and manage risks to be within its riskappetite, to provide reasonable assurance regarding theachievement of entity objectives. [source: COSO Enterprise]


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FAOs Total Entities No. of Audited Entities % Coverage

DGA(FG) 2254 1200 53%

DGA(DS) 3703 511 14%

Foreign Audit 181 110 61%

Zakat Audit 39715* 3550 9%

DG RRA(Lahore) 196 196 100%

DG RRA (Karachi) 153 153 100%

DGA I. Tax 16 9 56%

DGA Railways 306 90 29%

DG CA&E Karachi 176 81 46%

DG CA&E Lahore. 322 174 54%

DGA WAPDA 646 624 97%

DGA PT&T 188 145 77%

DGA Works 792 542 68%

DGA ERRA 54 54 100%

DGA DRAPP 31 31 100%

Total 48733 7470 15 %


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Sanctioned strength = 472

Working strength = 299Shortage = 173 (37%)

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Policy Board

AGP, Addl. AGPs, CGA , All DAGs andtwo experienced professionals

Secretary

Secretariat

Approval of Strategic Plan andAnnual Audit Plan

Approve and Monitor HR,Training, IT, Performance,Quality and Integrity Policies

Award Incentives

Approval of AGPs AnnualReport

Quarterly Review of Progress


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EXPENDITURE

Title of irregularity

No. of Audit

ParasTotal amount

involved

Irregular/unauthorized retention of Govt. money. 32 Rs.2,315 m

Contract in non-transparent manner. 26 Rs.4,233 m

Purchase of vehicles during ban. 12 Rs.107 m

Non-production of record 12 Rs. 378 m &

US$ 4 m

Frauds/theft and mis-appropriation of funds. 10 Rs. 180 mNon-recovery of dues. 54 Rs.817 mOverpayments. 19 Rs.246 mRelease of grant in aid without verifying intended

utilization of previously released grants in aid.07 Rs.10,938 m

Non-obtaining of adjustment account of advances. 23 Rs.402 m

Irregular expenditure. 34 Rs.242 mInvestment of funds in violation of rules. 09 Rs. 562 m

Weaknesses in internal control system. 08 -

Total Rs.20,420 m &

US$ 4 m


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REVENUE

Title of irregularity

No. of AuditParas

Total amountinvolved

Direct taxes

Short-realization/less/in-correct/under assessmentof tax.

12 Rs.966 m

Non-assessment or not following statutoryprovisions of income tax

5 Rs.326 m

Non-levy of additional tax 5 Rs.165 mNon-imposing of penalties 3 Rs.141 m

Indirect taxesNon-realization of sale tax 4 Rs.391 mShort-realization of sale tax 7 Rs.284 m

Non-realization custom and central excise duty. 8 Rs.116 m

Non-realization and short realization of surcharge 4 Rs.460 mFailure of internal control system 1 Rs.4942 m

Total Rs.7,791 m


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Period Months

24/10/54 to 12/4/56 18

08/08/58 to 03/03/60 19

12/62 to 13/07/65 31

25/03/69 to 12/06/70 15

12/71 to 18/08/72 10

10/01/77 to 25/03/78 15

25/08/88 to 04/03/89 06

06/08/90 to 16/05/91 09

08/93 to 28/08/95 25

05/11/96 to 12/05/97 0612/10/99 to 28/08/00 11

11/2002 to 03/11/03 12

Total: 177 months= 14 years & 8months

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Year of Account No. of sittings.

1947-48 14

1948-49 14

1949-50 10

1950-51 13

1951-52 201952-53 201953-54 191954-57 141957-59 13

1959-62 141962-65 181965-66 211966-68 161968-70 43

1970-71 03 11


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1971-72 091972-73 081973-74 061974-75 04

1975-76 061976-77 061977-78 121978-79 121979-80 15

1980-81 191981-82 141982-85 421985-86 231986-87 14

1987-88 181988-89 231989-90 30

Total 516Average No. of sitting 10.75


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Year of

AuditReport

Total Paras Full

Compliance

Partial

Compliance

Nil

Compliance

2000-01 1133 429 165 5391999-00 903 261 103 5391997-98 337 66 24 2871996-97 657 278 18 3611995-96 159 34 49 771994-95 82 24 14 461993-94 329 94 102 133

1990-91 57 8 12 371989-90 58 - 12 461988-89 81 01 05 751987-88 26 08 09 9

Total: 3822 1203 513 2149

%age 31% 13% 56%


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DG Audit WorksYear ofAuditReport

Total

Paras

Full

Compliance

Partial

Compliance

NilCompliance

2000-01 732 337 102 293

1999-00 498 130 34 3341997-98 312 60 0 252

1996-97 182 50 6 126

1995-96 82 23 1 58

1994-95 38 24 0 14

1993-94 71 27 29 151990-91 9 6 0 3

Total: 1924 657 172 1095


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DG Audit WAPDA

Year ofAuditReport

TotalParas FullCompliance PartialCompliance NilCompliance

2000-01 110 16 20 74

1999-00 131 14 13 104

1997-98 60 4 24 32

1996-97 104 9 12 83

1995-96 23 - 4 19

1994-95 44 - 14 30

1993-94 29 7 8 14

1990-91 48 2 12 34

1989-90 58 - 12 46

1988-89 81 1 5 75

1987-88 26 8 9 9

Total: 714 61 133 520


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DG Corporate AuditYear of Audit

Report

Total

Paras

Full

Compliance

Partial

Compliance

Nil

Compliance2000-01 246 74 - 1721999-00 205 104 - 1011997-98 5 2 - 31996-97 282 130 - 1521993-94 144 40 - 104

Total: 882 350 532

DG Income Tax AuditYear of

Audit ReportTotal Paras Full

CompliancePartial

ComplianceNil

Compliance2000-01 45 2 43 -1999-00 69 13 56 -1996-97 89 89 - -1995-96 55 11 44 -1993-94 85 20 65 -

Total: 343 135 208 -


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Challenge` Key effort Output Outcome

Lack of trainedhuman resource.

Holistic andtargeted training

with primary focus

on BPS-16, 17 and

18.

Trained manpowerfully equipped with

modern auditing

practices.

High standard ofwork.

Creating high value

public sector

accountants,

auditors and finance

managers.

A professional

degree or

certification for the

probationers.

Professional

workforce.

Improved

government.

accounting, auditing

and financial

management.

1,289 senior

auditors do not havethe skill set to

conduct audit under

new Audit

Methodology.

Facilitating senior

auditors to acquirePIPFA qualification.

Availability of

professionalqualified auditors.

Facilitating the

implementation ofnew Audit

Methodology.

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Challenge Key Efforts Output Outcome

653 or 37 % vacant

posts in BPS-16

and 17.

Hiring staff on

contract basis to fill

the vacant postsduring transition.

Appropriate number

of audit workforce.

Increased audit

assurance.

Skill deficit in

emerging sectors

and new audit

areas.

Outsourcing in skill

deficit and areas for

knowledge sharing

where appropriate.

Special reports on

new and high risk

areas.

Value addition

through quality

audit.

Segmented

planning.

Establishment of

policy board with

full time secretariat.

Strategic audit plan. Government wide

reporting.

Increased scope ofaudit due to

devolution.

Establishment of aseparate wing for

district audit.

Timely auditcoverage of district

government.

Enhancedaccountability of

district

governments.


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Clerical based audit

party.

Strengthening audit

party structure by

involving B-18 and19 as supervisor and

team leader and

BPS16 and 17 as

members.

Reports based on

systematic issues

and sectoral studies.

Holistic and issue

based reports for

better decisionmaking by the

government.

Embedding core

values in our

culture.

Augmenting the

supervisory level

(BPS-19 and 20)

through continued

professional

trainings.

Strong supervision. Improved integrity

and quality of audit

process.

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Organization wide

implementation of

international

standards.

Establishment of

audit policy wing

and strengthening of

accounting policywing.

Uniform

implementation of

international

standards.

Credible audit

reports and

financial

statements.

New audit horizon. Establishment of

special sectoral audit

wing.

Audit reports on

Specialized High

Risk Areas.

Management well

informed on risks

and its mitigation.

Pendency of audit

report.

Establishing special

cells in field audit

offices to clear

backlog and conduct

DACs.

Reduced number of

audit paras of PAC.

Timeliness in

accountability.

Strengthening

AGPs presence in

international

audits.

Institutionalizing

DAG (international

Audit and

Communication).

Sustaining and

winning over audit

of international

agencies.

World wide

recognition of SAI

Pakistan.

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Accounting and Budgeting National Level Accounting model developed which is being

implemented.

Integrated Financial Management System using SAP R/3being implemented across all tiers of government.

Interface with SBP, NBP, CBR and Planning Commission.

Development and Implementation of Medium TermBudgetary Framework.

Implementation of Accounting System at TMA level. Development of Decision Support System for GoP.

Up-gradation of Accounting Offices


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Audit Financial Audit Manual (FAM) with a working paper kit and

sixteen sectoral guidelines developed and beingimplemented.

Implementation of Audit Management Information System.

Acquisition and Implementation of Computer AssistedAudit Techniques.

Up-gradation of Field Audit Offices.

Internal Audit Development of Internal Audit Manual

Appointment of twenty Chief Finance and Accounts Officers


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Training Masters Degree for 24 Officers from Reputed Foreign

Universities in Relevant Disciplines.

SAP Certification for Accounting Offices Staff.

Degree and Short Courses for OAGP and CGA Offices andStaff from Local Institutions.

Class Room and On Job Training for FAM Implementation.

Training for Accounting Staff in NAM, SAP and New Chart

of Accounts. Internal Audit Trainings.

Presentation PAC - 03

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