Office of the

ACCOUNTANT GENERAL
Khyber Pakhtunkhwa, Fort Road, Peshawar

Submitted by:

Sadam Hussain
BBA (Hons) Finance
Roll No. 844

Submitted to:

Controller of Examination
University Of Peshawar

GOVT. COLLEGE OF MANAGEMENT SCIENCES, PESHAWAR

Session: 2013-17

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 APPROVAL SHEET

Internal Examiner:

Signature: ________________________

Name: _________________________

Designation: ________________________

External Examiner:

Signature: _________________________

Name: __________________________

Designation: ________________________

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 DEDICATIONS

To my Parents, respectable teachers and

all those whom love encouragement and help
is always with me, at every step in my life

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 ACKNOWLEDGMENT

I humbly offer my thanks to almighty God, the compassionate, the merciful, who gave
me health, thoughts, able trackers and opportunity to complete my study.

I feel ecstasy in expressing my heartiest gratitude to my supervisor Dr. Ayaz khan Associate
Professor for his kind guidance, sympathetic treatment and have interest in this study.

I am extremely grateful to staff of G P Fund section of Accountant General Office, KPK,

and Peshawar for his compassionate behavior encouragement and continued guidance.

I do not have suitable / appropriate words, adequate to offer the grateful were to our loving
parents for inspiration to complete this study.

Faithful thanks are also extreme to my Thanks.

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 TABLE OF CONTENTS

PART I

Title Page 1

Dedication 3

Acknowledgement 4

PART II

Chapter 1 Introduction & History of Organization

1.1 Introduction 7

1.2 Background of study 8

1.3 Purpose of study 9

1.4 Scope of study 10

1.5 Methodology of study 11

1.6 Origin of Accounting 12

1.7 Brief History of Audit & Accounts Department 14-22

Auditor’s General (Functions, Terms & Conditions of

1.8 23-26
services)

Organization Structure of Accountant General Office,

1.9 23-26
KPK

1.10 Departments of Accountant General Office, KPK 27-31

Chapter 2 Work Experience

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2.1 GP Fund 32-39

Chapter 3 SWOT Analysis

3.1 Strength 40

3.2 Weaknesses 41

3.3 Opportunities 42

3.4 Threats 43

3.5 Recommendations & Suggestions 44

Reference 45

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 1. INTRODUCTION & HISTORY OF ORGANIZATION

1.1 INTRODUCTION

Accountant General Office, KPK, Peshawar is a sub office of the Accountant

General Pakistan Revenues Islamabad, and performing all the function on behalf of Accountant
General.

It is purely a public sector organization aimed at maintaining, controlling,

regulating and monitoring the public accounts of the Federal government department
working/functioning in the KPK. It implies a check of the Provincial government on the
functioning of Federal Government with respect to day-to-day incurrence of expenditure from
public exchequer. It’s a service industry and offers its products in the shape of a wide range of
financial advisory service to the Federal Government. The products it offers include not only
maintaining the detailed history of service of the employees, maintaining their salaries, GPF,
Pensions, Gratuity and Advances but also the authorization of all kinds of expenditures to the
Federal Government reconciliation of expenditure figures.

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1.2 BACKGROUND OF STUDY
The Accountant General offices are established in each Province and the Federal
Government, and each report to the Controller General of Accounts.

These offices are responsible for the overall operation of accounting offices
within their jurisdictions and deal with matters of accounting policy and procedure in those
areas. In case of Federal Government the Accountant General (AG) is located in Islamabad, with
sub offices in each of the Provincial Capital and other designated areas. All the Accountant
General Pakistan Revenue sub offices reports monthly accounting

information in respect of Federal Transaction to Accountant General Pakistan Revenue

Islamabad.

The Accountant General who is the head of Accounts Offices formal procedures for the
following type’s of expenditure.

Contingences Payment
Salaries
General Provident Fund Payment
Loan and Advances
Pension Payment
Responsibility of Accountant General Office in respect of centralized accounting entities
include;

Keeping the accounting records of their transaction

Performing pre-audit function on their payment other financial and accounting responsibilities of
the Accountant General offices include;

Preparation and submission to the Federal and Provincial Government of consolidated monthly
and consolidated quarterly accounts of the federal and for each Province.

Preparation for each year or half yearly and annual financial statement of the federal and each of
Provincial Government and the consolidated financial statement of the republic for submission to
the Auditor General of Pakistan.

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1.3 PURPOSE OF STUDY
The purpose of this study is to highlight the working, importance of Accountant
General Office and to realize that no Government can service without an effective accounting
system. An effort is made to know the role and importance of the Accountant General Office.

On the other hand this study is the requirement not only for the completion of
M.com degree, but also for acquiring some professionalism in an organization, so that one could
understand the actual practices of transaction of Accountant General Office.

In this manner internees are given a chance to spend time in different departments
/organization sections either it is Private or Government and learn to do actual transactions which
have already been occurred previously. Moreover, we are also required to analyze different
aspects of the organization and to forward our suggestion to put right problems, which are being
faced by the departments/ organization.

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 1.4 SCOPE OF STUDY
Though Government accounting is a vast subject and covers many field of
accounting. The following accounts statements are prepared;

i.Quarterly Accounts:
These accounts are prepared on quarterly basis. These accounts are to be
submitted before 20th of the month following the end of quarter after the approval by the
Accountant General or Accountant General Pakistan Revenue.

ii.Half Yearly and Annual Financial Statements:

Each Accountant General and Accountant General Pakistan Revenue will
required to produce their half yearly and annually financial statement.

iii.Half Yearly Financial Statement:

Accountant General and Accountant General Pakistan Revenue are required to
prepare half yearly financial statement before 20th February each year

iv.Annual Financial Statement:

Annual financial Statement are required to be prepared by Accountant General or
Accountant General Pakistan Revenue before August 20th of each year.

On the other hand this report may help students in future to understand the
Accountant General Office transaction and function in our country. It would also attempt to
evaluate the overall performance of the Accountant General Offices and detailed analysis of its
daily working.

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 1.5 METHODOLOGY OF STUDY

For the purpose of writing this report, the following methods of collecting
information have been used.

I.PRIMARY DATA:

The information which is collected for the first time and exists in raw form is
known as Primary Data. It contains the following;

Personal Observations

Discussion with staff of the various section involved in that specialized fields.

II.SECONDARY DATA:

The information which has undergone through statistical techniques and exists in
a refined form is known as secondary data. It contains the following;

Auditor-General’s (Functions and Terms and Conditions of service) Ordinance, 2001. Audit and
accounts Manuals.

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THE HISTORY & BACKGROUND OF ACCOUNTING.

1.6 ORIGIN OF ACCOUNTING

Since the dawn of civilization, having brought in its wake the give and take off
goods of every day necessity, the concept of keeping accounts and the related records in one
form or other has prevailed all through the ages. Responsible men of even ordinary prudence
have been well aware of the necessity of maintaining records of incoming and outgoing, being
taken in any shape, according to the dictates of times, circumstances, and locations. It is not a
fact of the remote past that housewives used to keep a complete and up-to-date account of all that
was given to the neighbors and other inhabitants of the locality as well as relatives on the
occasion of happiness or sorrow. The strange part of the story is that all this accounts was
maintained orally, with the aid of a completely dependable and unfailing memory.

1.7 BRIEF HISTORY OF AUDIT AND ACCOUNTS DEPARTMENT

The British Government introduced the Audit & Accounts department in the Sub-
Continent when they took the control of this region. For keeping the accounts of the
Government, the office of the Controller was established in Calcutta (India) in the sub-continent.
Later on to facilitate the Government Departments, the British India was divided in several
regions, and the office of the Controller for Northern Region was established in 1931 on Fort
Road, Peshawar Cantonment, since then office of the Controller General (Now Accountant
General KPK) has been working here. After the partition, the Government of Pakistan adopted
the 1935 Act for the interim period until the preparation of its own constitution. The Government
of India Act 1935 was adopted by the Government of Pakistan (Provisional Constitution) Order
1947. Then, the provisions contained in Articles 168 -171 of the Constitution of Islamic Republic
of Pakistan were proclaimed on 12th April, 1973. The Audit & Accounts Order 1973 also
strengthened the Pakistan Audit Department. After that, to facilitate the clients, the Government
Departments at the local stations, the District Accounts Offices/Agency Accounts offices
Scheme was introduced in 1969. The DAOs were opened in Districts of Mardan, Abbotaabad,
D.I. Khan, Kohat, Bannu, Swat and Dir at Timargarah in 1970.

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 Before 1989 both Federal and Provincial departments were dealt in Accountant
General Peshawar. Later on, in 1989, another office that is Accountant General Office Peshawar
was established, and the accounting matters of all the Federal departments were given to the said
office.

AGPR stands for Accountant General Pakistan Revenues. It is a subordinate

office of Accountant General Pakistan Revenues, Islamabad, which is an attached office of the
Auditor General of Pakistan. The Auditor General of Pakistan comes under the jurisdiction of the
Ministry of Finance.

In 1979 the Addl: AGPR (Sub Office) has been separated from Accountant
General but till under the administrative control of Auditor General of Pakistan. In 1983 the
Audit department has also been separated from Accountant General KPK Peshawar but it also
come under the Auditor General of Pakistan.

The Auditor General’s role and powers were established in the Constitution of
Pakistan 1973 (Articles 168 to 171) and further defined in the Pakistan (Audit and Accounts)
order 1973. While retaining overall responsibility for the accounts of the Federation and
Provinces, this responsibility is delegated to the Controller General in order to maintain
independence between the audit function and the accounting function.

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1.8 AUDITOR-GENERAL’S

(Functions, Terms and Conditions of Service)

And whereas the national assembly and the senate stand suspended in pursuance
of the proclamation of emergency of the fourteenth day of october,1999, and the provision
constitution order No. 1 of 1999;

And whereas the president is satisfied that circumstances exist which render it
necessary to take immediate action;

Now, therefore in pursuance of the proclamation of emergency of the fourteen

day of October, 1999, read with the provisional constitution (Amendment) order No.9 of 1999,
and the exercise of all powers enabling him in that behalf. The president of the Islamic Republic
of Pakistan is pleased to make and promulgate the following Ordinance:

Short title, extent and commencement (1) this ordinance may be called the Auditor General’s
(Functions and Terms and Conditions of service) Ordinance, 2001.

It extends to the whole of Pakistan.

It shall come into force of the first day of July 2001.

Definitions.– (1) in this Ordinance. Unless there is anything repugnant in the subject of
context,--

“Accounts” in relation to commercial undertaking of a Government. Includes trading.

Manufacturing and profit and loss accounts and balance sheets and other subsidiary accounts;

“Auditor- General” means the Auditor-General of Pakistan appointed under Article 168 of the
constitution of the Islamic Republic of Pakistan;

“Controller General of Accounts” means the controller General of Accounts appointed under the
Controller General of Accounts (Appointment, Functions and powers ) Ordinance 2001;

“Regulations” means regulation made under this Ordinance; and

“Rules” means rules made under this Ordinance.

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Salary, pension etc: The salary, pension and other terms and conditions of service of the
Auditor shall be as provided in the Schedule to this Ordinance.

Terms of Office: The Auditor-General shall, unless the sooner resigns or removed from
office in accordance with the constitution, hold office for a fixed term of five years from the date
on which he assumes such office or he attains the age of sixty-five years whichever is earlier.

Explanation. For the purpose of this section the terms of five years ;in respect of the Auditor-
General holding office immediately before the commencement of this Ordinance shall be
computed from the date on which he had assumed office.

Auditor-General to Certify Accounts. – the Auditor-General shall on the basis of such

audit as he may consider appropriate and necessary, certify the accounts, compiled and prepared
by controller General of Accounts or any other person authorized in that behalf, for each
financial year, showing under the respective heads the annual receipts and disbursements for the
purpose of the Federation, of each province and of each district, and shall submit the certified
accounts with such notes, comments or recommendations as he may consider necessary to
president or the Governor of a province or the designated District Authority, as the case may be.

Auditor-General to give information and undertake studies, etc. The Auditor-

General shall, in so far as the accounts enable him so to do. Give to federal Government, the
provincial Government and the District Government. As the case may be such information and to
undertake such studies and analysis as they may, from time to time, require.

Functions of Auditor-General in the case of grant or loans given to other

authorities or bodies.

(1) where any grant or loan is given for any specific purpose from consolidated fund of
federal Government or of any province or of any district to any authority or body, not being a
foreign state or international organization, the Auditor-General may scrutinize the account by
which the sanctioning authority satisfies itself as to the fulfillment of the conditions subject to
which such grants or loans were given and for this purpose have the right of access, after giving
reasonable previous notice, to the books and accounts of that authority or body:

15
Provided that the president, the Governor of a province or the authority of a district, as the case
may be, is of the opinion that it is not necessary to do so in public interest.

(2) While exercising the power conferred on him by sub-section (1). The Auditor-General shall
not have right of access to the book and accounts of any authority or body if the law, by or under
which such authority or body has been established, provides for the audit or the accounts of such
authority or body by an agency other then the Auditor-General.

Audit of companies and corporations established in the public sector.

(1) The Auditor-General shall perform functions and exercise powers in relation to the audit
including supplementary audit of the accounts of the public sector companies in accordance with
the provisions of the companies Ordinance 1984 (XLVll ).

(2) The duties and powers of the Auditor-General in relation to the audit of the account of
corporation (not being companies) established by, or under. Law shall be performed and
exercised by him in accordance the provision of the respective laws.

(3) The Governor of a province or the district authority may, where he is of opinion that it is
necessary in the public interest so to do. Request the Auditor-General to audit the accounts of a
corporation established under provincial law and where such request has been made. The
Auditor-General shall audit the accounts of such corporation and shall have. For the purposes of
such audit right of access to the books and accounts of such corporation.

Audit of accounts of certain authorities or bodies. Save as otherwise provided, in

section 11 where the account of any body or authority has not been entrusted to the Auditor-
General by or under any law. He shall, if requested so to do by the president, or the governor of a
province, as the case may be, undertake the audit of the accounts of such body or authority and
shall have, for the purpose of such audit, right of access to the books and accounts of that body
or authority.

Power to dispense with detailed audit. The Auditor-General may dispense with. When
circumstances so warrant, any part of detailed audit or any accounts or of transaction and to
apply such limited check in relation to such accounts or transaction as he may determine.

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Delegation of powers. Any power exercisable by the Auditor-General under the provisions
of this ordinance, or any other law may be exercised by such officer of his department as may be
authorized by him in this behalf by general or special order.

Budgetary provisions. The Auditor-General shall have the full powers to incur expenditures
within the budgetary provisions.

Power to amend the schedule. The federal Government may, by notification in the official
Gazette, amend the schedule so as to add any entry thereto or modify or omit any entry therein.

Power to make rules. The president may be notification in the official Gazette makes rules
for carrying out the purpose of this ordinance

Power to make regulation. The Auditor-General may, with the previous approval of the
Federal Government. By notification in the official Gazette. Make such regulation, not
inconsistent with the provision of this ordinance and the rules made there under as he may
consider necessary or expedient for carrying out the purpose of this ordinance.

THE SCHEDULE
PAY, ALLOWNCES AND PENSION

The Auditor-General shall be:-

Paid a salary which is twenty per cent higher than the maximum salary payable to an officer in
Basic pay Scale 22;

Entitled to all such benefits including entitlement pertaining to travel as are admissible to a
Minister of state; and

Paid, for each completed year of service. A pension at the rate of twelve thousand rupees per
annum:

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Provided that person entering into the office of Auditor-General of Pakistan who was previously
under Government service. Shall stand retired from government service and shall be entitled to
pension earned during that service;

Provided further that no provision herein contained shall have effected so as to give a
person who, immediately before the date of assuming office as the Auditor-General, was in the
service of Government less favor able terms in respect of any of the matters aforesaid than those
to which he would be entitled as member of the service to which he belonged:

Provided also that the Auditor-General holding office immediately before the
commencement of this ordinance may opt for the provisions of the Pakistan (audit and Accounts
order) 1973 (P.O. 21 of 1971) pertaining to, pension, leave, retirement from service, or
entitlements of they are more favorable to him and the provisions of the said order shall
accordingly apply.

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 ORDINANCE NO XXIV OF 2001

AN ORDINANCE

To provide for separation of accounting functions and appointment of controller General of

Accounts whereas it is expedient to provide for separation of accounting functions and
appointment of Controller General of Accounts and for matters connected therewith or incidental
thereto:

And whereas the National Assembly and the Senate stand suspended in pursuance or the
Proclamation of Emergency of the fourteenth day of October.1999, and the Provisional
constitutional Order No. 1 of 1999;

And whereas the President is satisfied that circumstance exists which render it necessary
to make immediate Acton;

Now, therefore, in pursuance of the Proclamation of Emergency of the fourteenth day of

October, 1999, and the provisional constitutional order No. 1 of 1999, read with the provisional
constitution (Amendment) Order No. 9 of 1999, and in exercise of all powers enabling him in
that behalf, the president of the Islamic Republic of Pakistan is pleased to make and promulgate
the following Ordinance:--

Short title, extent and commencement.(1) This Ordinance may be called the controller
General of Accounts (Appointment, Functions and powers) Ordinance, 2001.

It extends to the whole of Pakistan. It shall come into force on the first day of July, 2001.

2. Definitions. In this Ordinance, unless there is anything repugnant in the subject or context:

“Appropriation accounts ” means account relating to expenditure brought into account

during a financial year to several items specified in the schedules of expenditure authenticated
under the Budgetary provisions Order, 2000 (chief Executive’s Order No.6 of 2000);

“Auditor-General” means the Auditor-General of Pakistan appointed under Article 168 of the
constitution of the Islamic Republic of Pakistan;

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“Controller General” means the controller General of Accounts appointed under section 4; and

“Finance Accounts” means the accounts exhibiting annual receipts and disbursements as well as
balances of assets and liabilities of the Federal Government as on the thirteenth June of financial
year.

Transfer of accounting functions. On the commencement of this Ordinance, the Auditor-

General shall, by order published in the official Gazette, transfer accounting Functions to the
Controller General of Accounts.

Controller General of Accounts. There shall be controller General of Accounts who shall
be appointed by the president from amongst the officers of the accounts Group and shall be a
BPS 22 officer.

Function of the controller General. The function of the controller General shall be;

To prepare and maintain the accounts of the federation , the provinces and district
government in such forms and in accordance with such methods and principle as the Auditor-
General may with the approval of the president, prescribe from time to time;

To authorize payments and withdrawals from the consolidated fund and public accounts
of the Federal and provincial governments against approved budgetary provisions after pre-
audited checks as the Auditor-General may, from time to time, prescribe;

To prepare and maintain accounts of such organizations and authorities established, set
up or controlled by the federation or provinces as may be assigned to him by the president or as
the case may be, the Governor of a province;

To lay down the principles governing the internal financial control for Government
departments in consultation with the ministry of Finance and the Provincial finance departments
as the case may be;

To render advice on accounting procedure for new scheme, programs or activities

undertaken by the Government concerned;

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 To submit accounts compiled by him or any other person responsible in that behalf, after
the close of each financial year, to the Auditor-General, showing under the respective heads the
annual receipts and disbursements for the purpose of federation and of each Province within the
time-frame prescribed by the Auditor-general;

To provide, in so far as the accounts compiled by him permit, to the Federal Government
or, District government such information as such Government may from time to time require;

Develop and maintain an efficient system of pension, provident funds and other
retirement benefits in consultation with the concerned government;

To co-ordinate and ensure resolution of audit observation of the Audit Department with
the concerned departments; and

To prescribe syllabus, standards and provided facilities for the training of officers and
staff under his administrative control.

Certain officers to work under the control of the Controller General. (1) The Controller
General shall have such offices at the Federal, Provincial and district levels and such officers
working in these offices as may be notified for this purpose by the Federal Government and the
respective Provincial Government.

All accounting offices to assist and afford facilities. All Accounting offices shall
afford necessary facilities for efficient discharge and functioning of the office of Controller
General.

Delegation of Powers. The Controller General may, by general or special order, direct that
all or any of his powers under this Ordinance shall, under such conditions, if any, as may be
specified, be exercisable by any officer or officers of his organization.

Terms and conditions of service of Provincial employees not to be adversely effected.

Nothing Contained in this Ordinance shall be construed in any manner to impair or adversely
affect the terms and conditions of service of the Provincial Government employees working in
the Provincial and District accounts officers.

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Power to make rules. The Federal Government may, by notification in the official Gazette,
make rules for carrying out the purposes of this Ordinance.

Power to make regulations. The Controller General may, with the previous approval of the
Federal Government, by notification in the official Gazette, make such regulations not
inconsistent with the Provisions of this Ordinance and the rules made there under, as he may
consider necessary or expedient for carrying out the purpose of this Ordinance.

Removal of difficulties. If any difficulty arises in giving effect to any provisions of this
Ordinance, The President may make such Order, not inconsistent with the provisions of this
Ordinance, as may appear to him to be necessary for the purpose of removing the difficulty.

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1.9 ORGANIZATION STRUCTURE OF

ACCOUNTANT GENERAL OFFICE, KPK

The Accountant General assisted by four Deputy Accountant Generals B.P.S 18 viz.
Deputy Accountant General Senior, (pay rolls) Deputy Accountant General (Admn), Deputy
Accountant General (Funds & Pension), Deputy Accountant General (Accounts). The
Accountant General has constituted a consultative body of senior officer called Departmental
Promotion Committee or Departmental Section Committee. The Chairperson of this committee is
the Addl: A.G.P.R and DAG Senior, DAG Admn has member and Accounts Officer Admn: has.
Each D.A.G has clearly demarcated jurisdiction accordingly to the function performed by him
and reports directly to the Accountant General. In overlapping matters the DAG are to consult
each other.

All reference on pre Audit and accounts and the classification of receipts and payment
should be addressed to the Accountant General.

Demi Official letters on all important administrative including personal matters should
also be addressed to the Accountant General or DAG concerned. Then it should be sent to the
concerned section.

In addition there are three Assistant Accountant Generals and 5 Accounts Officer BPS 18
assisted the D.A.G. in main office.

In addition in main it counter about 34 District Accounts Offices and 7 Agency Accounts Offices
i.e.

Staffing. Head of Department.

The head of the District Accounts office and AAO are known as District
Accounts BPS 18 and Agency Accounts Officer BPS 17.

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STRENGTH OF EMPLOYEES OF ACCOUNTANT GENERAL

(A) Inter Department Cadre Posts.

Sanctioned Available (-)Shortage

S.No Designations / Scale
Strength Strength (+)Excess

BPS-21
1 01 01 -
Accountant General

BPS-19
2 01 01 -
Addl: Accountant General

BPS-18
3 04 04 -
Deputy Accountant General

BPS-17

4 Assistant Accountant General 04 04 -

(B) Departmental Cadre Posts

Sanctioned Available Shortage (-)

S.No: Designations / Scale
Strength Strength Excess (+)

BPS-18
1 12 12 -
Accounts Officer

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 BPS-17

2 Assistant Accounts Officer 67 67 -

BPS-16
17 17 -
3 Assistant Supervisor
591 567 24
Senior Auditor

BPS-14
4
Steno Typist 04 03 01

BPS-11
5 93 34 59
Junior Auditor

BPS-1 – 4
7 117 107 10
Driver/ Naib Qasid
/Sweeper/Chowkidar

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Composition of staff.

The Gazetted staff consists of officers of the Inter Departmental Cadre (IDC) i.e.
DAG, AAG, Accounts Officer, D.A.O. AAO, Divisional Accountant, PIPFA Assistant A/c
Officer and Senior Auditor.

The non gazetted staff consists of Junior Auditors, Steno typists, steno typists and
auxiliary staff in BPS 1 to 4.

Sub-Division of Work.

The Accountant General Office is divided into branches and sections as described
in the respective local manuals of each office.

Distribution of work among gazetted staff.

The Accountant General is to ensure that the mission of his office is to achieve
with economy, efficiency and effectiveness. He has to set an example and to manage his office
by planning for the future organizing through approved procedure, directing through his chain of
command and controlling though the management information system.

The scale of gazetted officers has been fixed by the Govt. and the distribution of work
among them is left generally to the discretion of the head of office.

Duties.
The Accountant General, DAO and AAO assist at relieving himself and his supervisory
officers as far as possible from the detailed work of ordinary and routine nature by delegating the
authority and monitoring its periodically so as to afford time for giving attention to more
important matters of policy and control.

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1.10 DEPARTMENTS OF ACCOUNTANT GENERAL
OFFICE, KPK

1. ADMINISTRATION BRANCH

a) Deals with all type of administrative function like:-

Recruitment, training, posting, transfer, promotions, reversion, retirement, deputation, drawl and
disbursement of pay and allowances of the staff.

b) Distribution of charge and assignment of duties to the Gazetted Officers

c) Preparation and submission of Budget Estimates/Revised Estimates and control
over expenditure of the office establishment, etc.
d) Maintenance of the Annual Confidential Reports, Service Books, Biodata, Personal
Files, Leave Account etc of the staff.
e) Arrangements for pre-service and in-service training of staff.
f) i)Holding of examination of the cadre of Divisional Accountants for appointments
in Communication and Works, Irrigation and Public Health Engineering Departments of the
Provincial Government and other relevant service issues of the cadre.
(ii) Holding of PIPFA Examination

g) All other personal cases of staff

2. RECORD SECTION

Deal with:-

a) Receipt, registration and distribution of all correspondence and service documents

received & sent from this office.
b) Copying, typing and dispatch of letters and documents sent out of the office.
c) Storage, maintenance and custody of records, files and documents not needed by
sections for current use.
d) Procurement, maintenance and supplies for upkeep and administration of office.

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e) Systematic destruction and disposal of old records material and stores expiring
their utility/use.
f) Keeping individual activities and functions of type branch. Old record Branch,
stationery.
3. W.A.D SECTION

The following procedure is adopted in Wad’s Section

a. Receiving of Accounts:-

First of all when accounts received from provincial in WAD section, checking of
WM-1 classification and receiving of 26/51 by WM-II section is essential to see. Then on the
part of section, we see whether all forms are in order or not, all forms are signed by the
competent authority or not.

To check the budget allocation recorded on the form with expenditure incurred in
the form that expenditure is exceeded from budget or not.

To tally the summary form (Form-74) with detail wise scheme Form-64.

To check the classification recorded on schedule

WM-1 & WM-II only responsible for Account-1 which relates to provincial expenditure and
they only check classification of Account-1.

In WAD another Account which is known Account-IV (District Account-IV)

which relates to district Government and funded by district Government.

In WM-1 do not check the same accounts and it deal with DAO and DCO offices
of concerned district where the division concerned submitted a copy of Account-IV in the
mentioned offices where a certificate is recorded that a copy of account received in DCO &
DAO offices and we are bound to see that certificate. The same checking is also applied on
Account-IV where we check Account-I.

After completion of accounts checking we enter book portion of account-1 in TR

of the section concerned and send it to WM-1 section where WM-1 section record the posting of

28
 Form-46 & the Form-74 in their relevant ledger we wait for the return of book portion from
WM-1 section.

b. Making of Audit Note;

The second step after receiving accounts, the preparing of audit note come on picture.

The following points are adopted for the audit note.

I.First of all in WAD three register are essential

a. Work Audit register
b. Summary register
c. Voucher selection register
II. In summary register we record summarize figure of expenditure during the month as well as
progressive figure also and (firn-46 receipt of the division) and also page marking in the register
III.In WAR register we open pages under head wise expenditure (schedule wise). Under various
head we record schedule wise expenditure during the month as well as during the year from
accounts we tally WAR figure with summary register.
IV.In voucher selection Register we record schedule docket series wise and voucher No: and
amount recorded in the schedule docket also write in voucher selection register.
V. After all the above work, auditors scrutinize the accounts and properly check the vouchers and
bills thoroughly and then mark Para’s one by one and also dug out serious irregularities in the
accounts in the shape of audit note. In audit not serious irregularities is communicated through
special letter and the remaining para’s is persuaded on proper form to division. One copy of the
special letter convey to director and the second to division concerned. When the irregularities
pointed out by section and it received in division then they reply and once again we take action
and commented upon the reply of division beet most of replies do not fulfill the requirement and
once again we send the commented letter by the section to concerned division and ask to give
annotated reply.

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4. BOOK SECION

A distinguished section having its unique importance in compiling accounts of numerous

nature for the preparation of civil account on monthly basis. All the accounts relating to Revenue
receipts, Expenditures, Public accounts receipts, Public account payment and other payments
relating to district government, and all agencies offices are received by the accountant general
office each month. These accounts reflect the overall receipts and expenditure position properly
recovered under specific Major, Minor, and detail function heads.

Each and every department has assigned proper heads by the Auditor General of Pakistan
under rules, which are in practice throughout the country. The list of payment shows all
expenditure heads. All consolidated expenditure whether developmental or non-developmental
are maintained under their relevant prescribed heads. Public account payment shows all public
money paid to under proper heads of account to public in terms of G.P.Fund state Bank deposits
etc. Cash account shows detail of cash related transactions in terms of receipts etc from various
sources that are contributable to the economy.

Public account receipts are the money received from public and contributions of
government employees in term of G.P Fund etc. Each and every Treasury and District accounts
offices including all agency accounts offices send list of payment and cash account to the
Accountant General office, till 5th of the month. Book section on receipt of all the list of
payment and cash account, compile a summary statement which reflects whole month
transaction

Under specific relevant head. These heads are classified accordingly, Major, Minor, and
function heads. The amounts are then calculated and totals are brought under each function head.
The totals are again calculated and Grand total figure is resulted to check the overall receipts and
payments. The figures in the summary book are also calculated against each Agency Accounts
Office District Accounts Office function wise. Both the consolidated fund payment and public
account payment are calculated and Grand total figure is compared to the Grand total Receipt
figure result from addition of cash account and public account receipt. Each function total are
then recorded in a book called Major Head. The current month amount under each relevant head
is added to deduct from the previous month progressive figures and the current month

30
progressive total is brought into account. On completion of the process the major head function
are totaled and finally a monthly civil account is prepared which shows the overall receipts and
payment position of the KPK. A copy of Monthly Civil account is forwarded to Controller
General of Accounts Islamabad , Finance division Islamabad , Finance Department KPK and
Additional Accountant General Pakistan Revenue Sub office Peshawar not later than 15th of the
month.

Beside all this process carried in book section, other information required to
management regarding financial position of KPK is provided to the authorities they require
Broad Sheets are also maintained and correspondence with various departments and other
subsidiary offices are done in book section. Detail Book is maintained in which detail of
payments and receipts monthly wise is summarized.

5. PENSION SECTION

“Pension means a periodical payment made by Government in consideration of the

service rendered by a Government servant in accordance with the rules.”

Article 41 of C.S.R.

6. GENERAL PROVIDENT FUND SECTION

The Accountant General keeps the following accounts of the subscriber.

1. Allotment of G. P Fund Accounts number to the subscribers;

2. Maintenance of G. P Fund Accounts of Federal government’s servants / employees;
3. Monthly posting of deductions in the Ledgers / Broad Sheets, its compilation as well as
closing on monthly/yearly basis;
4. Issuance of Balance Sheets, Annual Account Statement of G.P Fund;
5. Dealing with the refundable/non refundable advances from the GP Fund as well as that of
Final Payment cases of government employees; and
6. Transfer of G. P Fund accounts/balances to other DAOs in whose jurisdiction the
subscriber transferred.
7. To grant the temporary advances from GP Fund.
8. To sanction the advances for construction / purchase of house to employees.

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 1. WORK EXPERIENCE
General Provident Fund Section.

The Addl: Accountant General, keep the following accounts of the

subscriber.

 Allotment of G. P Fund Accounts number to the subscribers;

 Maintenance of G. P Fund Accounts of Federal government’s servants/employees;

 Monthly posting of deductions in the Ledgers/Broad Sheets, its compilation as well

as closing of monthly/yearly basis;

 Issuance of Balance Sheets, Annual Account Statement of G.P Fund;

 Dealing with the refundable/non refundable advances from the GP Fund as well as
that of Final Payment cases of government employees; and

 Transfer of G. P Fund accounts/balances to other DAOs in whose jurisdiction the

subscriber transferred.

It is the responsibility of Controller General of Accounts to maintain the

employees record. On behalf of Accounts General (PR) the Additional Accountant
General (PR) maintains the G. P Fund Accounts of the employees working under the
audit jurisdiction of KPK.

Monthly deduction is made of a certain portion of the employees’ salaries

as a compulsory contribution in order to encourage saving habits. The government on
these saving accounts also pays interest with a higher rate as compared to banks and other
financial institutions; for example, the Go Pakistan decided to pay interest on G. P Fund

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for the current year at the rate of 13.5%, which is much higher than commercial Bank.
The commercial Banks paying on the PLS @ 2-3% a year.

For the purpose, the subscribers have to open an account with the AGPR
concerned like an account with the commercial bank. In AGPR it is known as opening a
G. P Fund Account for the subscriber. The Auditors concerned open a page for the
subscriber and then record and maintain the monthly deductions on the page. It is all
manual.

The G. P Fund wing of this office also deals with the refundable/ non –
refundable advances and as well as the Final payment in case of retiring.

All such matters are operated in GP Fund Wing. Monthly contributions are
recorded in the respective ledgers along with calculation of annual interest. In this way
balances of the subscribers are kept updated. The updating of GP Fund balances provide
an opportunity to the subscribers that they can easily draw money from their GP Fund
accounts according to their needs. However, the government has laid down some rules on
the GP Fund. It is the property of the subscriber but they cannot withdraw all the moneys
from their accounts. They can only be allowed to withdraw 80% of the total money in
their account. The GP Fund Wing of the office is providing the service to the provincial
government employees/ subscribers like a bank. But operations in this wing are carried
out manually which are unable to cope with the needs of increasing number of
subscribers. The auditors all the time remain busy to locate the old worn out record of the
subscribers and sometimes fail to find it.

In routine, the government employees are transferred from one

district/agency to another in pure public interest. On transfer, from one place to another,
the subscribers have to shift all the money from the Account (G. P Fund Account) to the
place where he/she is moving. The transfers of balances are done through Credit Memos
and Sealed Authorities. Credit memos are just a letter, which shows the balances of the

33
subscriber. Transfer of balances to other DAOs/Governments through credit memos or
sealed authorities sometimes cause nuisance to the subscribers as most of the times the
documents go missing in the transit and the subscribers are pushed from pillar to post and
face greater hardships. To overcome this problem a complete computerized record of
database of GP Fund is required to be maintained and all the DAOs /Govt: are to be
interconnected with one another through computer so that a quick transfer of balances
and other information can be ensured. By way of these alterations the GP Fund wing can
add more to the value of the organization.

7.1. Grant of Temporary Advances from the G.P. Fund’

A temporary advance under Rule 15 of the GP Fund (NWFP) Rule may be made
to the subscriber from the amount standing at his credit in his General Provident Fund
Account subject to the following conditions:

(a) Advances will be granted only if the sanctioning authority is satisfied those he
pecuniary circumstances of the applicant justify it and that it will be expended on
the following objects or otherwise:

(i) To pay expenses incurred in connection with the prolonged illness of the
applicant himself or any person actually dependent on him.

(ii) To pay for the overseas passage for reasons of health or education of the
applicant or any person actually dependent on him.

(iii) To pay obligatory expenses on a scale appropriate to the applicants status in

connection with marriages, funerals or ceremonies, which by his religion it
is incumbent on him to perform.
(iv) To meet other expenditure which is considered by the sanctioning authority
to be essential and unavoidable.

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(b) The sanctioning authority shall recorded writing the reasons for the advance.

(c) The amount should not be exceeded three months pay or half of the amount at the
credit of the subscriber in the fund, which ever is less.

(d) A second advance cannot granted unless the amount already advance does not
exceed two-third of the amount admissible under (c) above or until at least 12
month after the final repayment of all previous advances together with interest
thereon.

7.2. Advances for Construction / Purchase of House

An advance for construction or purchase of a house for occupation by the

subscriber himself or his family or for making addition to or alteration in an existing
house, owned by the subscriber, whether or not constructed or purchased with a house
building advance, may be granted to him from the amount standing to his credit the
Account at the discretion of the appropriate authority subject to the following conditions.

a. The advance shall in no case exceed thirty-six months pay of the subscriber or (80)
eighty percent of the amount at he credit of the subscriber in the account or
whichever is less.
b. Advance granted for construction of a house shall be paid in two equal
installments.
c. If the first installment is not utilized for the purpose of construction of the house
within eight months of its withdrawals, it shall be refunded unless the sanctioning
authority extends this period.
d. For the purpose of withdrawal of the second installment the subscriber shall be
required to give under his hand a certificate to the effect that he has actually
utilized the first installment on the construction of the house.

35
7.3. Authority for Final Payment

For final payment the refund order is passed by the AGPR/branch officer of
GP Fund Section, prepared in duplicate and a note stating the amount to be withdrawn the
officer authorized to draw and the inward number of the letter of application for refund is
kept in the remarks column of the ledger folio of the subscriber concerned under the
initial of the Gazzetted Officer. The authority for payment should hold for three months.
Any delay in payment after the issuance of the necessary authority should be
investigated.

7.4. Check of Account closed during the year

The accounts closed during the year are checked in detail by the poster or
the auditor together with the respective accounts of the last preceding year in the same
detail so long as the closing balances of the year of the year are not proved and agreed. If
the closing balances of the year are agreed only the currents year’s account is checked in
detail. The AAO/Superintendent should see that this has been done.

7.5. Discovery of an Omission

When it is noticed that a credit has not been taken into account at the time
of closing either for refund of final withdrawal r for transferring the account to another
Accounts Office, action would be taken immediately to authorize a supplementary refund
or transfer the amount to the Accounts Officers, to whom the original account was
transferred. No interest should be allowed in respect of the credit unless it is due under
the G. P Fund Rules.

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7.6. Payment to Retired Officers

In the case of retirement the General Provident Fund deposits will be paid
to the officer on his personal receipt and proper identification if he is a Gazzetted officer
and if he is a non-gazzetted officer residing in the district where he was last employed on
a bill drawn by the head of office who should be acquaintance. If, however, the Non
Gazzetted officers resides outside the limits of the district where he was employed, the
officer named by the Head of his office, or the Treasury Officer of the District on which
payment is desired, being nearest to the place where is residing may be authorized to
draw and disburse the amount and to furnish the usual disbursement certificate in his next
bill. In the event of the subscriber’s death before retirement the money will be paid to the
person or person entitled to receive the payment on bills duly receipted by the them after
due identification. The procedure observed in the case of payment of gratuities should be
followed in such case.

7.7. Final Payment six months before retirement

A subscriber to the GP Fund Account may on application made to the

competent authority be permitted to withdraw finally the amount standing to his credit in
the funds six months before is retirement. Thus when a subscriber was preceded on leave
preparatory to retirement and while or such leave has been permitted to retire or been
declared by a competent medical authority to be unfit for further service or he desired
payment within six months before his retirement, the amount standing to his credit in the
account upon application made by him in that behalf of the Accounts Officer becomes
payment to the subscriber.

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7.8. Payment in another Province

When final payment of GP Fund deposits of subscriber is desired from

treasury in another province/circle of account the following particulars should be
furnished to the Account Office with a view to facilitate the identification of the payee:

a. Personal mark of identifications

b. Thumb and finer impression of the left hand

c. Specimen signatures.
7.9. Mode of Payment in case of Death of the Subscriber
On the death of the subscriber before the amount standing to has credit has
become payable or where the amount has become payable before payment has been
made.
1. When the subscriber leaves a family.

a. If a valid nomination made by the subscriber in accordance with the

provision of Rules submits, the amount standing to his credit in the fund,
the whole amount or the part thereof to which the nomination related would
be payment to his nominee or nominees in the proportion specified in the
nomination.
b. If no such nomination in favor of member or members of the family of the
subscriber subsist or if such nomination relates only to a part of the amount
standing to his credit in the account, the whole amount or the part thereof to
which the nomination does not relate, as the case may be, shall not
withstanding any nomination purporting to be in favour of any persons
other than the members of his family, become payment to the member of
his family in equal shares.

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2. Provided that no share shall be payable to:

a. Sons who have attained legal majority.

b. Sons a deceased son who have attained legal majority.

c. Married daughters who husbands are alive.

d. Married daughters of a deceased son whose husband is alive.

Provided further that the widow or widows and the child or children of a
deceased son shall receive between them in equal parts only the share which that son
would have received if he had survived the subscriber and had been exempted from the
provision of (1) above.

When the subscriber leaves no family, if a nomination made by him in

accordance with the rules in force in favor of any person or persons subsists, the amount
standing to his credit in the account or the part thereof to which the nomination relates
shall become payable to his nominee or nominees in the proportion specified in the
nomination.

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 3. SWOT ANALYSIS
S.W.O.T. is defined as Strength, Weaknesses, Opportunities and Threats. It shows the
overall department’s performance, efficiency, capability, shortcomings and challenges faced by
the department.

The certain features of S.W.O.T. with regard to Pakistan Audit Department are detailed
below:

3.1 STRENGTHS

i.The powers / functions of the Auditor General are derived from the constitution of Islamic
Republic of Pakistan 1973, under Articles 191 to 198 in which the Auditor General is entrusted,
subject to certain specified reservations, the duty of keeping the accounts of federation as well as
of provinces. Auditor General takes oath of his office for the period of five years. He has the
powers and privileges equal to the Minister of State.

ii.There is nationwide network of Audit and Accounts Offices under the control of the Auditor
General of Pakistan who deals in Audit and Accounts activity.

iii.The Accounts Group officers i.e. Pakistan Audit and Accounts Services are inducted through
FPSC, who provides new blood to the audit and accounts superior services.

iv.There are five Audit and Accounts Institutes, which trains the staff and officers to uplift their
audit and accounting skills.

There are fundamental and supplementary rules, audit manuals, Government Accounting
Volume-I to IV, General Financial Rules, Public Works Codes, Service

v.Rules, Pension Rules, G. P. Fund Rules, Manual of Standing Orders of Auditor General of
Pakistan, all these helps and assists in the day to day working of the field offices.

vi.The annual finance accounts of the federation are presented to the President of Pakistan and to
the Governors of the provinces in case of Provincial Finance Accounts.

vii.The Public Accounts Committee is chaired by the members of National Assembly who are
veteran politicians and have the skills, knowledge and experience of Audit and Accounts

40
 business. The Audit report is prepared by the office of the Auditor General of Pakistan obtained
from the field offices which is based on the audit paras comprising of serious irregularities
committed by the government departments. These audit paras are discussed before PAC in
presence of the principal accounting officer i.e., Secretary of the concerned ministry, Auditor
General of Pakistan and other government functionaries i.e., Finance Divisions representatives.

3.2 WEAKNESSES

i.Public Accounts Committee do not take strict action against the officials who are involved in
serious irregularities, so the officials cannot be apprehended which creates an atmosphere of
lawlessness in government departments.

ii.The work load has enormously increased due to which the proper control is lacking, causes
delays and unnecessary resultant loss of public trust and credibility.

iii.The staff of the department is not fully equipped to face the modern computer technology, which
are now being trained to same extent to serve the department better in future.

iv.The promotion policy is very slow for the staff, which creates disharmony and distress in the
departments.

v.There is a big gap between the salary packages of government and private sectors, which is also
a cause of discontentment and insecurity for the officials / officers.

3.3 OPPORTUNITIES

i.To grow as a disciplined Audit & Account institution for the government to control financial
irregularities.
41
ii.The project for improvement in financial reporting and auditing can bring accuracy in the
preparation of government reports and returns. It can also provide accurate reports to the donor
agencies i.e., IMF, World Banks. These reports can also create an atmosphere of trust and
confidence for the attraction of other countries.

iii.The Audit department can also control excess use of funds, morose of sanctions, improper use of
delegation of power, unauthorized expenditure, irregularities by some executive and politicians.

iv.To equip the staff with modern techniques of accounting and auditing according to the World
Standard. (SAI) Supreme Audit Institutions.

v.To adopt new techniques to facilitate the government servants who attend the audit offices for
service matters like:-

a. Easy disbursement of salary on 31st of each month through computer.

b. Instant drawl of G.P.Fund Advances, through computer.
c. Quick transfer of accumulated balance to the government servant service locations in
the province and country.
d. To open customer service centers to facilitate the clients for quick information about
their service record.
e. The transfer of pay and allowances, G.P.Fund balances, pension cases finalization
should be done through computer networking in the whole province and in the country.

3.4 THREATS

i.The rules and regulations adopted in the department are mostly of British Times, which are a
century old and cannot serve the purpose of modern times. These need review, modification and
standardization.

ii.The modern technology i.e. computerization, internet, e-mail are required to be adopted to fulfill
the modern day requirements. Extra efforts and resources are required to meet the modern day
requirements / needs.

42
iii.The salary structure is low as compared to the private sector which creates financial distress for
the officials / officers, who can not perform their duty satisfactory.

iv.Slow promotion policy is also of cause of disturbance for the officials, who look for bright future
and leaves the services to the private sector.

v.The non – availability of powers with the department to apprehend government officials
involved in over drawls misuse of authority, excess drawls of funds, which can be saved in the
exchequer.

vi.The Govt. plan to exercise its powers for downsizing, rightsizing to curtail the existing strength,
which is already overloaded due to heavy work.

3.5 RECOMMENDATION & SUGGESTIONS

1) Government does not pay attention to the problems faced by the employees of the Audit
Department. With the passage of time the work load has been increased enormously, the
available staff cannot cope up with the heavy load of work, which affects the work efficiency
and performance of the officials.
2) The pay structure of the officials is very low from that of private sector, due to which the
employees are not financially sound and cannot perform their duty with satisfaction.

43
3) The rules, procedures and codes available in the department for official use are of British
times, and cannot serve the purpose of the present day needs. The complexity of the rules and
procedure makes the working environment more different for the employees as well as for the
agencies, who applies for any legal financial benefit.
4) The strict government, instructions for financial discipline and effective control of funds
serves the purpose to some extent. But hinders the smooth working of office business, and gives
extra powers to the executives, which delays the work.
5) The National Projects are married by the Political influences and priority is given to the
National Projects for the versed interest by the politicians. The rule of merit is ignored, which
creates unhealthy environment for government department as well as for audit authorities.
6) The working culture in the government offices is not of standard due to political, regional
and social priorities.
7) The manual system of Accounts and payments is being computerized, the both systems
now running parallel to each other, which are creating disturbance for the time being, but it will
bring fruit in future.
8) The load of work has been increased enormously, due to which the work efficiency and
output is not up to the standard.
9) The employees union which was operating in the past, have left the organization with
very un healthy working condition. The nepotism / favoritism by the members of the association
was in vogue, which hindered the office work and efficiency of the staff. Now these association
are banned which is food for working environment.

REFERENCE

1. Personal Observation
2. agkhyberpakhtunkhwa.gov.pk

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