KPMG's appointment as PRAL auditors approved

The Federal Board of Revenue (FBR) has approved the appointment of KPMG as auditors of Pakistan Revenue Automation Limited (PRAL) for the next financial year. Sources told Business Recorder here on Saturday that the decision had been taken in a recent meeting of the Board of Directors of PRAL held at the FBR House, Islamabad. The meeting was chaired by Tariq Bajwa, Chairman FBR/ Chairman PRAL BoD.
The agenda of the meeting included confirmation of minutes of the last meeting of the BoD held on June 30, 2014; release of gratuity to Ex-CEO PRAL; approval of financial statements for the year ended June-2014; appointment of auditors for the next financial year and approval of code of conduct of the company. According to the decisions of the PRAL board of directors, FBR Chairman issued directives that there should be at least one meeting of the BoD every quarter and that the next meeting should be held latest by December, 2014.
The Board appreciated CEO PRAL as the company had declared a profit after running into loss for two years. The Board unanimously confirmed minutes of the last meeting of the BoD held on 30.06.2014. The Board also unanimously approved financial statements for the year ended June-2014 with the directions that the legal position should be reiterated to the Auditors that approval of the BoD is not required where the BoD had delegated its powers to the BoM (Board of Management).
An inquiry should be conducted into the purchase of software for Rs 20.3 million to ascertain the legality of the transaction, sources said. It has also been decided that the NHA should be pursued for recovery of doubtful debts. As per decisions of the PRAL BoD, unspent amount from TEPI Project should be spent for development of Customs Check Post, Sust, as decided in the Board of Management meeting held on 24th January 2008; Amount received for E-payment system to be spent on the development of new E-Payment system which should be developed and launched within 60 days.
The meeting also decided that the management should get legal opinion on discontinuation of gratuity. The Board unanimously approved the appointment of KPMG as auditors for the next financial year, for a remuneration of Rs 220,000 (Audit fee Rs 200,000/- plus 10 percent out of pocket expenses). As far as approval of Code of Conduct is concerned, the item was deferred till the next BoD meeting, they added.