ISLAMABAD: The Auditor General of Pakistan (AGP) raised audit observations amounting to Rs599.93 million in the Establishment Division on account of employees-related irregularities, non-recovery as well as management of account with commercial banks.
The AGP in its audit report on the account of federal government (civil) audit year 2023-24 raised audit observations of Rs8.66 million on HR/employees-related irregularities, Rs14.539 million on management of account with commercial banks, Rs173 million on recovery, Rs51.90 million on internal recovery and Rs351.734 million on others.
The report noted that the final budget allocated to the Establishment Division for the financial year 2022-23 was Rs6.580 billion, out of which, the Division expended an amount of Rs6.500 billion.
The audit noted that there was an overall saving of Rs80 37 million, which was mainly due to saving in current grant. The audit observed that supplementary grants obtained without careful cash forecasting.
According to Para 71 of General Financial Rules (Volume 1), while framing budget estimates, the authorities should exercise utmost foresight. Rules of good governance demand that budget processes are carried out in accordance with clearly defined expectations and assumptions and a coordinated calendar of activity.
Bifurcating total allocation into current and development expenditure, it was observed that, in case of development grant, there was a 63.09 percent saving w.r.t original grant which was finally reduced to 0.05 percent saving original w.r.t final grant and in case of current grant 2.26 percent of excess was become 1.25 percent saving.
The management of the Establishment Division incurred an expenditure mounting to Rs8.665 million on payment of salaries to 28 persons appointed as Contingent Paid Staff (CPS) during the fiscal year 2022-23. The audit observed that the Establishment Division did not appoint the staff on a regular basis, as per instructions of the Finance Division from time to time; instead the expenditure was incurred on engagement of contingent/daily paid staff.
The audit was of the view that non-compliance of the Finance Division’s instructions regarding appointment of staff on regular basis and incurrence of expenditure (every year) on engagement of Contingent Paid Staff is irregular and unauthorised.
The AGP observed non-recovery of outstanding rent from Utility Stores Corporation amounting Rs12.379 million. Section 10(1) of the Islamabad Rent Restriction Ordinance, 2001 states that the rent of residential as well as a non-residential building shall stand automatically increased at the end of every three years of its tenancy by 25percent ofthe rent already being paid by the tenant.
The properties of Staff Welfare Organization (SWO), Islamabad primarily meant for setting up Lady Industrial Home and Library for the welfare of federal government employees and their families were rented to the Utility Stores Corporation on temporary basis on 01.07.1975 with monthly rent of Rs600.
No written/formal lease agreement had been signed since that time till now. The details of outstanding rent is as under: period (01-07-1971 to 31-07-2023), rent due (Rs20,275,292), rent paid (Rs7,896,240) and rent recoverable (Rs12,379,052).
The audit observed that: (1) the management did not recover outstanding rent of Rs12.379 million after applying 25 percent increase in rent after every three years, (2) the SWO management failed to make a lease agreement with Utility Stores Corporation.
Copyright Business Recorder, 2024