M/s Pakistan Tehreek-e-Insaf, Punjab Office, Lahore.

28 March 2013

MANAGEMENT AUDIT FOR THE PERIOD FROM 1 JULY 2012 TO 25 MARCH 2013

Dear Sir, As desired by your good self we have conducted the management audit of PTI Punjab office Lahore of the receipts and payments. Our audit was based on the guidelines provided by you and the record available in the office in whatever form made available to us. We are provided bank statements for the period from July 2012 to March 25, 2013. The Receipt books for the period were not available and this fact was brought to your kind notice in the presence of staff members concerned. The receipts if any during the period if not recorded it is reported by the staff that there has not been any receipt on account of donation and the only receipts during that period on account of membership cards which has been recorded on separate register.

FINDINGS The purpose of management audit is to streamline the accounting activities. The following findings of concern areas that we believe would be improved by the implementation of the related recommendations. Our findings have been as reported below: 1. As already reported in our previous report dated 30 July 2012 the Receipt Books for the period mentioned above are missing. We dont understand why the matter has not been reported to higher authority and why new book has not been started. Recommendation The receipt books must be got printed immediately and started. The matter may be got investigated to ascertain if any donation has been received during that period for which receipt has not been issued. If directly received in the bank it may be noted.
2. Amount of Rs. 125,000/- paid to M Raza on behalf of Mr. Zeeshan Butt through cheque no. 5327821 dated 12 July 2012 out of which Rs. 69,800/- was received from Mr. Zeeshan Butt. Remaining amount of Rs. 55,200/- is still outstanding which may be demanded and got cleared. 3. Following is the detail of amount payable to M/S Ignite on account of conducting intra party election:

Particulars UC Elections District Election Punjab and National Election Total

Total Bill (Rs) 9,088,275 5,720,552 2,227,874 17,036,701

Amount Paid (Rs) 9,040,000 4,350,000 13,390,000

Amount Payable (Rs) 48,275 1,370,552 2,227,874 3,646,701

Note: We have only checked the rates charged with the list of approved rates by Mr. Tasneem Norani. We have not been in a position to see the comparative rates as prevailing in the market. We were given to understand that the matter was very urgent as the election were due to take place. Special procedures were adopted for the rates to be charged. 4. Amount of Rs. 200,000/- paid to Ms. Andleeb Abbas for Justice for women seminar through cheque no. 5327873 dated 13 December 2012 and received bills of Rs. 192,932/-. Remaining amount of Rs. 7,068/- received from her vide cross cheque but the cheque is still not deposited which should be deposited before it becomes stale. 5. Following payments are made to parties on various accounts but bills are still pending:
Date 13-Jul-12 30-Jul-12 12-Oct-12 12-Nov-12 13-Dec-12 08-Feb-13 14-Feb-13 05-Mar-13 06-Mar-13 05-Mar-13 06-Mar-13 14-Mar-13 Party Name Mr, Farrukh Habib Mr. M Rafi Khan Mr. Shadab Mr. Shadab Huma Maqsood Rana Zia, Lhr Mr. Zubair Sehore Mr. Zubair Sehore Mr. Shadab H Jafri Mr.Zubair Sehole Mr.Shadab Jafri Mr.Shadab Jafri Purpose For function with chairman For ISF compaign For ILF function For Lawer concert For DRM pilot project For office expneses For LSO Office Rent & pay of staff For LSO office expenses For office expenses For LSO Office For conducting Punjab Election For conducting Punjab Election Total Cheque No. 5327822 5327825 5327869 5327871 5327872 19740726 19740751 19740798 19740800 19740798 19740800 20932023 Amount (Rs) 300,000 27,000 200,000 400,000 170,000 50,000 244,652 244,652 100,000 244,652 100,000 45,000 2,125,956

Recommendation The above payments must be reconciled. A proper control should be implemented by the management on use of these funds by receiving complete details of expenses made by the said parties. 6. Following payments are made to various parties on account of Intra party election but the bills are not still received:
On A/c of Party Name Districts/ Regions Lahore/Centre District (Rs) 40,000 UCS (Rs) 472,000 Tehsil/Town (Rs) 240,000 Repolling (Rs) 168,000 Region (Rs) 350,000 Total (Rs) 1,270,000

Mr. Rana Zia/Fayaz Mahar

Mr. Zulqarnain Mr. Liaqat Ali Mr. Kashif Dogar Mr. Imtiaz Noor Mr. Ch. Azhar/Khawar Mr. Khalid Sindhu Mr. Farooq Khokhar Mr. Bilal Ranjha Mr. Khushbakht Khan/ Mr. Masood Sadiq Mr. Raja Sohail Zafar Mr. Rana Shoaib Asghar Mr. Malik Mazhar Mr. Saqib Tariq Mr. Pervez Ahmad Mr. Makhdom Zulifqar Mr. Younus Khatak/ Mr. Jaffar Hussain Mr. Agha Imam Raza Mr. Jam Farooq Mr. Kanwar Shafiq-ur-rehman Mr. Zubair Joya Mr. Syed Saleem Raza Mr. Sardar M. Iqbal Mr. Mian Shahid Ali Mr. Saleem Ansari Mr. Farooq Khan Mr. Mazhar Sharif Mr. Mkhdom Ghulam Ali Mr. Malik Azam Awan Mr. Malik Makhdom Taj Mr. Qaiser Abbas Shah Mr. Haroon Irshad Mr. Rafiq Khan Niazi Mr. Malki Abdul Ghafoor Mr. Abdul Majid Khan Niazi Mr. Ilyas-ur-Rehman Mr. Arshad Warrich Mr. Tariq warrich

Shiekhupura Kasur Nankana Gujranwala Gujarat Narowal Hafzabad Mandi B.Din Multan/South Khanewal Vehari Lodhran Bahawalpur Bahawalnagar Rahim Yar Khan DG Khan Layyah Muzafargarh Rajanpur Faisalabad Jhang Toba Tek Singh Chinyot Sahiwal Okara Pakpatan Sargodha Khoshab Bhakhar Rawalpindi Chakwal Attock Jehlam Mianwali Sialkot North West

40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 25,000 40,000 40,000 40,000 55,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 -

120,000 72,000 60,000 70,000 32,000 60,000 24,000 72,000 122,000 122,500 96,000 36,000 36,000 148,000 72,000 164,000 160,000 48,000 170,500 8,000 12,000 4,000 284,000 12,000 44,000 120,000 44,000 72,000 -

63,000 54,500 63,000 151,500 63,000 31,500 63,000 108,000 94,500 63,000 94,500 94,500 63,000 31,500 38,500 31,500 148,000 47,000 63,000 94,500 63,000 126,000 189,000 47,000 55,000 63,000 94,500 -

72,000 18,000 144,000 72,000 72,000 144,000 -

350,000 350,000 350,000

295,000 166,500 163,000 261,500 90,000 163,000 95,500 175,000 764,000 162,500 230,500 139,000 170,500 40,000 354,500 160,000 71,500 314,500 71,500 363,000 135,000 103,000 40,000 278,500 210,500 111,000 178,000 40,000 44,000 513,000 52,000 131,000 215,000 147,000 206,500 350,000 350,000

Total

1,440,000

2,757,000

2,338,500

690,000

1,400,000

8,625,500

Recommendation The above payments should be reconciled. A proper control should be implemented by the management on use of these funds by receiving complete details of expenses made by the said parties.

7. Following is the detail of amount received and receivable on account of membership books:
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Amount Due as on 1-7-12 (Rs) 5,000 20,000 22,500 21,250 2,500 100,000 15,000 7,500 250 10,000 3,500 10,000 116,500 125,000 25,000 75,000 10,000 25,000 12,500 100 5,000 1,250 30,000 50,000 25,000 25,000 5,000 50,000 82,500 5,000 885,350 885,350 Received during the period (Rs) (5,000) (20,000) (22,500) (21,250) (2,500) (22,500) (10,000) Amount Due as on 25-3-13 (Rs) 77,500 5,000 7,500 250 10,000 3,500 52,500 125,000 25,000 10,000 25,000 12,500 100 5,000 1,250 50,000 25,000 25,000 5,000 52,500 517,600 (33,700) 483,900

Party Name Dr. Yasmin Rashid Mr. Nadeem Nisar Mr. Malik Azam Mr. Abdul Sattar Wahla Mr. Inayat Karam c/o Mr. Zeeshan Butt Mr. Shezad Ashraf Youth Mr. Zubair Rasool Sehore, LSO Office Mr. Rana Azam c/o Mr. Zeeshan Butt Mr. Mian Asif Khudai c/o Ms Kanwal Mr. Khuram Shehzad c/o Mr. Zeeshan Butt Mr. Sohail c/o Nadeem Binder Mr. Ali Ashraf c/o Zeeshan Butt Mr. Zeeshan Butt Mr. Abrar ul Haq Rao M. Amjad Ali Mr. Jahangir Tarin c/o Zeeshan Butt Mr. Latif Joiya c/o Mr. Zaki sb Mr. M Rafiq Nisar c/o Dr. Shahid M Safdar Javad c/o Mr. Zeeshan Butt Ms. Atiya Sitara c/o Mr. Ali Raza Mr. Ejaz Jangua c/o Mr. Zeeshan Butt Mr. Irfan Hassan Mr. Mian Hamad Azhar c/o Mr. Zeeshan Butt Mr Hafiz Nazim c/o Mr. Zeeshan Butt Mr. Javed c/o Mr. Zeeshan Butt Mr. Rana Raheel Ahmad c/o Mr. Zeeshan Butt/ Mr. Ahsan Rashid Mr. Farooq Amjad Mir c/o Mr. Irfan Hassan PTI, Centre Office Mr. Moazam Mr. Tariq c/o Adnan Jamil Sub Total Unknown deposits Grand Total

(10,000) (64,000)

(75,000)

(30,000)

(50,000) (30,000) (5,000) (367,750) (33,700) (401,450)

Unknown Deposits: a) Deposit slip is not available against amount of Rs. 2,500/- deposited on 10-7-12 b) Deposit slip is not available against amount of Rs.10,000/- deposited on 8-10-12 c) Deposit slip is not available against amount of Rs.21,200/- deposited on 8-10-12

Recommendation The amount receivable must be recovered and deposited in the bank. 8. Following is the detail of amount received from PTI, Centre office and its utilization some amount released were higher than received for the purpose as shown in brackets. This is paid off out of bank balance:
Amount Received (Rs) 2,700,000 200,000 150,000 540,000 650,000 500,000 244,652 1,500,000 21,298,956 2,244,652 30,028,260 Amount Paid (Rs) 2,697,986 83,956 257,700 340,420 640,368 244,652 2,073,937 18,973,392 1,400,000 26,712,411 Balance In Bank (Rs) 2,014 116,044 150,000 282,300 309,580 (140,368) (573,937) 2,325,564 844,652 3,315,849

Particulars For Youth Convention For IPF For Mr. Asad Umer IT Professional For Women Convention For Rabta Mohim For ILF Shadab Jafri For LSO office expenses For Office expenses For Intra-party election For region election Total

9. Following is the district wise detail of (Receivables)/ Payables on account of election in Tehsils / Towns:
Towns/ Tehsils 6 5 3 3 3 4 3 8 3 4 3 7 3 2 4 2 3 10 4 4 Amount Due (Towns * 24000) (Rs) 144,000 72,000 72,000 72,000 96,000 72,000 192,000 72,000 96,000 168,000 72,000 48,000 96,000 48,000 72,000 240,000 96,000 96,000 Amount Paid (Rs) 94,500 94,500 63,000 31,500 94,500 31,500 252,000 63,000 63,000 157,500 94,500 31,500 94,500 63,000 63,000 260,000 63,000 94,500 (Receivable)/ Payable 49,500 (22,500) 9,000 40,500 1,500 40,500 (60,000) 9,000 33,000 10,500 (22,500) 16,500 1,500 (15,000) 9,000 (20,000) 33,000 1,500

Districts Bahawalpur Bahawalnagar Rahim Yar Khan D.G. Khan Layyah Muzaffar Garh Rajanpur Faisalabad Jhang Toba Tek Singh Chinot Gujaranwala Gujrat Hafizabad Sialkot Narowal Mandi bahauddin Lahore Sheikhupura Kasur

Nankana Sb Multan Khanewal Vehari Lodhraan Rawalpindi Jhelum Attock Chakwal Sahiwal Okara Pak Pattan Sargodha Mianwali Khushab Bhakkar Net payable

4 6 4 3 3 8 4 6 4 2 4 2 6 3 3 4

96,000 144,000 96,000 72,000 72,000 192,000 96,000 144,000 48,000 96,000 48,000 144,000 72,000 3,144,000

63,000 126,000 94,500 94,500 63,000 189,000 63,000 63,000 94,500 94,500 63,000 126,000 63,000 2,906,000

33,000 18,000 1,500 (22,500) 9,000 3,000 33,000 81,000 (46,500) 1,500 (15,000) 18,000 9,000 238,000

Special Notes: i. We have got the cash book and bank book started separately w.e.f. 1 July 2012 as it is now being maintained by the office from bank statement and reconciled with bank on monthly basis All advances made must be adjusted either through bills or cash deposits in all cases without any exception. We have tried to explain our observations very clearly in case you may require any more explanation we will be pleased to provide the same as and when so required. We are also enclosing our professional fee bill which may be cleared.

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Thanking you.

Yours truly,

SM Naim Mian Engagement Partner