The National Commission for Human Development (NCHD) has unauthorisedly utilised Rs 1.25 billion Endowment Fund, says audit report for the year 2005-06. The Auditor General report showed that NCHD had received Rs 2.23 billion during 2002-03 to 2004-05 and made the expenditure against the receipts.
Except the government grants, all other amounts were received as donations, aid, grants in foreign exchange. However, these were not reported to the government. Foreign aid had not been accounted for in government account due to non-reporting by the NCHD.
During audit of the accounts of Pakistan Human Development Fund (PHDF) and NCHD, it was observed that proper account of receipts and expenditure had not been maintained in accordance with the generally accepted accounting principles. The PHDF and the National Commission for Human Development (NCHD) had not provided complete record to the audit for inspection, according to the report.
From the record made available to the audit team, it was observed that there was vast difference in income generated and expenditure made, if compared with the funds available in the banks as on June 30, 2005, said the report.
According to a consolidated report for four year (2002 to 2005) printed by the PHDF and the National Commission for Human Development (NCHD), the cumulative funds generated by both organisations were Rs 2.98 billion, whereas the expenditure of the two organisations during this period came to Rs 1.349 billion, said the report.
The report observed that a balance of Rs 881 million should have been available in the bank, whereas according to the audit reports of both organisations, an amount of Rs 540 million was available as on June 30, 2005. The difference of Rs 338 million had not been explained by NCHD and PHDF.
The audit report also observed that pay and allowances of the employees on deputation were fixed in contravention of the provisions of the NCHD Ordinance.
The terms and conditions of appointment in NCHD had been approved or vetted by the Establishment Division. Without pre-settled terms and conditions by the government, total expenditure on salaries etc of 41 employees on deputation was viewed as irregular, said the report.
According to audit report, the NCHD published a tender notice on 16 December 2003 for the purchase of 24 Toyota Hilux re-conditioned double-cabin vehicles. In response, five firms quoted their rates, out of which rates quoted by Alamco were accepted by the National Commission for Human Development (NCHD), being the lowest bidder. The rate accepted for each reconditioned vehicle was Rs 625,000. On May 11 2004, an amount of Rs 14.6 million, as 50 percent advance, was paid to the company. However, the NCHD failed to provide a copy of the supply order and agreement to the audit. The firm (Alamco) supplied six vehicles on March 5 2005 and failed in supplying remaining 18 vehicles even after the passage of over one year.
It was observed in the audit report that 16 accounts were being maintained by NCHD and 13 accounts by PHDF. Amounts received from the government or other grants and donations should be deposited in PHDF account directly and as per requirement, these amounts should be released and transferred to NCHD account. The NCHD management was unable to provide any justification for opening 22 bank accounts only in Islamabad.
The audit report observed that there was lack of internal control in the NCHD. Only two meetings of the Commission's Advisory Council were held during three years as against the quarterly meetings as required under Section 9 (3) of the National Commission for Human Development (NCHD) Ordinance.