ISLAMABAD: The federal cabinet has directed the Finance Division to ensure, in coordination with the Controller General of Accounts that all accounts are maintained and consolidated across the three tiers of government through computerized systems and the combined financial statements are submitted to the Cabinet well in time, sources in Finance Ministry told Business Recorder.
These directions were issued during discussion on a summary of Finance Division on combined financial statements of the federal, provincial and district governments for the Financial Year 2021-22.
The Ministry of Finance apprised the Cabinet that section 7(b) of the Controller General of Accounts ( Appointment, Functions and Powers), Ordinance, 2001, required the Controller General to prepare and submit to the Auditor General of Pakistan (AGP) a consolidated and general statement bearing summary of accounts of the Federation, all provinces and district authorities ; and that the AGP, after authentication, is required to forward the same to the Federal Government, the Provincial Governments and district authorities.
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It was added that in terms of Article 171 of the Constitution of Pakistan, the Auditor General had already submitted Appropriation Accounts and Financial Statement of the Federal, Provincial, and District Governments for the year 2021-22 to the President for laying before the Parliament and to the Governors for laying before the Provincial Assemblies, respectively.
The Finance Division apprised that to comply with statutory requirement of Section 7(b) of the Controller General of Accounts (Appointment, Functions & Powers) Ordinance, 2001, the Combined Financial Statements of the Federal, Provincial and District Governments for the Year 2021-22, prepared by CGA and duly authenticated by the AGP, were required to be placed before the Cabinet for its information and perusal, and that accordingly the same were being submitted before the Cabinet.
In the discussion that followed, it was observed that at places, especially in the case of districts, the accounts were consolidated manually, which could lead to errors and thus misinformation. The Finance Division clarified that the accounts were prepared and consolidated through computerised systems and that the margin for error was very low.
The Cabinet noted the position as explained by the Finance Division and directed that it should be ensured that all accounts of three tiers, ie, Federal, Provincial and Districts be consolidated.
Copyright Business Recorder, 2024