1

Definitions

Governance: the system by which organizations are directed and controlled-manage the govt. business well. Internal Audit: An independent and objective assurance designed to add value and improve an organizations operations. Enterprise Risk Management: A process-effected by entitys BoD and management-applied in strategy setting across the enterprise, designed to identify potential events that may affect the entity, and manage risks to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives. [source: COSO Enterprise]

FAOs

Total Entities

No. of Audited Entities

% Coverage

DGA(FG) DGA(DS)

2254 3703

1200 511

53% 14%

Foreign Audit
Zakat Audit DG RRA(Lahore) DG RRA (Karachi) DGA I. Tax

181
39715* 196 153 16

110
3550 196 153 9

61%
9% 100% 100% 56%

DGA Railways
DG CA&E Lahore. DGA WAPDA DGA PT&T DGA Works DGA ERRA DGA DRAPP

306
322 646 188 792 54 31

90
81 174 624 145 542 54 31

29%
46% 54% 97% 77% 68% 100% 100%
5

DG CA&E Karachi 176

Total

48733

7470

15 %

Sanctioned strength = 472 Working strength = 299 Shortage = 173 (37%)

Policy Board AGP, Addl. AGPs, CGA , All DAGs and two experienced professionals

Secretary

Secretariat

Approval of Strategic Plan and Annual Audit Plan Approve and Monitor HR, Training, IT, Performance, Quality and Integrity Policies Award Incentives Approval of AGPs Annual Report Quarterly Review of Progress

EXPENDITURE Title of irregularity Irregular/unauthorized retention of Govt. money. Contract in non-transparent manner. Purchase of vehicles during ban. Non-production of record Frauds/theft and mis-appropriation of funds. Non-recovery of dues. Overpayments. Release of grant in aid without verifying intended utilization of previously released grants in aid. Non-obtaining of adjustment account of advances. Irregular expenditure. Investment of funds in violation of rules. Weaknesses in internal control system. Total

No. of Audit Paras 32 26 12 12 10 54 19 07 23 34 09 08

Total amount involved Rs.2,315 m Rs.4,233 m Rs.107 m Rs. 378 m & US$ 4 m Rs. 180 m Rs.817 m Rs.246 m Rs.10,938 m Rs.402 m Rs.242 m Rs. 562 m Rs.20,420 m & US$ 4 m 8

REVENUE Title of irregularity Direct taxes Short-realization/less/in-correct/under assessment of tax. Non-assessment or not following statutory provisions of income tax Non-levy of additional tax

No. of Audit Paras 12 5 5

Total amount involved Rs.966 m Rs.326 m Rs.165 m

Non-imposing of penalties Indirect taxes Non-realization of sale tax Short-realization of sale tax
Non-realization custom and central excise duty.

3
4 7 8

Rs.141 m
Rs.391 m Rs.284 m Rs.116 m

Non-realization and short realization of surcharge Failure of internal control system Total

4 1

Rs.460 m Rs.4942 m Rs.7,791 m

Period 24/10/54 to 12/4/56 08/08/58 to 03/03/60 12/62 to 13/07/65 25/03/69 to 12/06/70 12/71 to 18/08/72 10/01/77 to 25/03/78 25/08/88 to 04/03/89 06/08/90 to 16/05/91 08/93 to 28/08/95 05/11/96 to 12/05/97 12/10/99 to 28/08/00 11/2002 to 03/11/03 Total:

Months 18 19 31 15 10 15 06 09 25 06 11 12 177 months= 14 years & 8 months

10

Year of Account 1947-48 1948-49 1949-50 1950-51 1951-52 1952-53 1953-54 1954-57 1957-59 1959-62 1962-65 1965-66 1966-68 1968-70 1970-71

No. of sittings. 14 14 10 13 20 20 19 14 13 14 18 21 16 43 03
11

1971-72 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-85 1985-86 1986-87 1987-88 1988-89 1989-90 Total Average No. of sitting

09 08 06 04 06 06 12 12 15 19 14 42 23 14 18 23 30 516 10.75
12

Year of Audit Report 2000-01 1999-00 1997-98 1996-97 1995-96 1994-95 1993-94 1990-91 1989-90 1988-89 1987-88 Total: %age

Total Paras

Full Compliance 429 261 66 278 34 24 94 8 01 08 1203

Partial Compliance 165 103 24 18 49 14 102 12 12 05 09 513

Nil Compliance 539 539 287 361 77 46 133 37 46 75 9 2149

1133 903 337 657 159 82 329 57 58 81 26 3822

31%

13%

56%

13

DG Audit Works
Year of Audit Report 2000-01 1999-00 1997-98 1996-97 1995-96 1994-95 1993-94
1990-91 Total:

Total Paras
732 498 312 182 82 38 71 9 1924

Full Partial Compliance Compliance

337 130 60 50 23 24 27 6 657 102 34 0 6 1 0 29 0 172

Nil Complia nce 293 334 252 126 58 14 15

3 1095

14

DG Audit WAPDA
Year of Audit Report 2000-01 1999-00 1997-98 1996-97 1995-96 1994-95 1993-94 1990-91 1989-90 1988-89 Total Paras 110 131 60 104 23 44 29 48 58 81 Full Partial Compliance Compliance 16 14 4 9 7 2 1 20 13 24 12 4 14 8 12 12 5 Nil Compliance 74 104 32 83 19 30 14 34 46 75

1987-88
Total:

26
714

8
61

9
133

9
520
15

DG Corporate Audit Year of Audit Total Report Paras 2000-01 246 1999-00 205 1997-98 5 1996-97 282 1993-94 144 Total: 882 DG Income Tax Audit Year of Total Paras Audit Report 2000-01 45 1999-00 69 1996-97 89 1995-96 55 1993-94 85 Total: 343

Full Compliance 74 104 2 130 40 350

Partial Compliance -

Nil Compliance 172 101 3 152 104 532

Full Compliance 2 13 89 11 20 135

Partial Compliance 43 56 44 65 208

Nil Compliance 16

Challenge`

Key effort

Output

Outcome

Lack of trained Holistic and human resource. targeted training with primary focus on BPS-16, 17 and 18. Creating high value public sector accountants, auditors and finance managers.

Trained manpower High standard of fully equipped with work. modern auditing practices. Improved government. accounting, auditing and financial management. Facilitating the implementation of new Audit Methodology.

A professional Professional degree or workforce. certification for the probationers.

1,289 senior Facilitating senior Availability of auditors do not have auditors to acquire professional the skill set to PIPFA qualification. qualified auditors. conduct audit under new Audit Methodology.

17

Challenge

Key Efforts

Output

Outcome audit

653 or 37 % vacant Hiring staff on Appropriate number Increased posts in BPS-16 contract basis to fill of audit workforce. assurance. and 17. the vacant posts during transition. Skill deficit in emerging sectors and new audit areas. Segmented planning. Outsourcing in skill Special reports on Value deficit and areas for new and high risk through knowledge sharing areas. audit. where appropriate.

addition quality

Establishment of Strategic audit plan. Government policy board with reporting. full time secretariat.

wide

Increased scope of Establishment of a Timely audit Enhanced audit due to separate wing for coverage of district accountability devolution. district audit. government. district governments.

of

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Challenge

Key Efforts

Output

Outcome Holistic and issue based reports for better decision making by the government.

Clerical based audit Strengthening audit Reports based on party. party structure by systematic issues involving B-18 and and sectoral studies. 19 as supervisor and team leader and BPS16 and 17 as members.

Embedding values in culture.

core Augmenting the Strong supervision. our supervisory level (BPS-19 and 20) through continued professional trainings.

Improved integrity and quality of audit process.

19

Challenge Organization wide implementation of international standards.

Key Efforts Establishment of audit policy wing and strengthening of accounting policy wing.

Output Uniform implementation international standards.

Outcome Credible of reports financial statements. audit and

New audit horizon. Establishment of Audit reports on Management well special sectoral audit Specialized High informed on risks wing. Risk Areas. and its mitigation.

Pendency of audit Establishing special Reduced number of Timeliness report. cells in field audit audit paras of PAC. accountability. offices to clear backlog and conduct DACs.
Strengthening Institutionalizing AGPs presence in DAG (international international Audit and audits. Communication).

in

Sustaining and World wide winning over audit recognition of SAI of international Pakistan. agencies.
20

Accounting and Budgeting

National Level Accounting model developed which is being implemented. Integrated Financial Management System using SAP R/3 being implemented across all tiers of government. Interface with SBP, NBP, CBR and Planning Commission. Development and Implementation of Medium Term Budgetary Framework. Implementation of Accounting System at TMA level. Development of Decision Support System for GoP. Up-gradation of Accounting Offices

Audit
Financial Audit Manual (FAM) with a working paper kit and sixteen sectoral guidelines developed and being implemented. Implementation of Audit Management Information System. Acquisition and Implementation of Computer Assisted Audit Techniques. Up-gradation of Field Audit Offices.

Internal Audit
Development of Internal Audit Manual Appointment of twenty Chief Finance and Accounts Officers

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 and Staff 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.