Internship Report On DCO Office Chiniot

If you want that report contact on this number 0333-6519686
INTERNSHIP REPORT ON
DISTRICT COORDINATION OFFICE

BY
Your name
Roll #

Submitted in Partial Fulfillment of the
Requirements for the Degree of Master of Commerce

NATIONAL UNIVERSITY OF MODERN LANGUAGES,
ISLAMABAD, PAKISTAN.

September, 2014
ii

National University of Modern Languages
Faculty of Information Technology and Management Sciences

It is hereby certified that the report has been thoroughly and carefully read and
recommended to the faculty of Management Sciences for acceptance of Final Project
Report by Your name, Roll # F-53, Session (Sep 2012 to June 2014) Morning, in
partial fulfillment of the requirements for the degree of Master of Commerce at
National University of Modern Languages, Faisalabad.

Date ________________

Supervisor __________________________

Observer ___________________________

Head of Department __________________

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EXECUTIVE SUMMARY

I judge my time spent at City District Government Chiniot (Finance Department) as
being the most productive and exhilarating experience of my corporate life. Few of
the main highlights of my work experience while at Finance Department were
Good Leadership
Congenial Work Atmosphere
Challenging Tasks Assignment
Employee Empowerment
Proactive Problem Resolution
I am proud to have been associated but my true joy emanated from the fact that I had
the unique pleasure of working for CDG, an Organization where I have learnt much
and had the chance to implement my knowledge to solve real time problems. Three
factors have been crucial to making my internship experience a productive and a
memorable one
Mentors and Colleagues at Finance Department Chiniot I received very good
direction from my Department Lead, Mr. Tariq Lakh and Office Assistant, Mr. Arslan
and enjoyed immense support from my colleagues. The confidence placed in me was
quite motivating and the lessons learned were rewarding indeed. People in other
departments also have been a big help. To add to this, I am thankful to all the folks I
met daily who beamed me bright smiles that brightened my day.
Excellent Tools I was exposed to some of the cutting edge tools used in the IT
industry including SAP & Office 2007 Suite.
Potent mix of both the above reasons gave me a sense of accomplishment and pride in
my work. I came into the office with a smile, give my 200% and left with a smile. Yet,
I was in no way different than any other person at Finance Department. Employment
empowerment can do wonders to the employees and a happy workforce can do
wonders to a companys bottom-line.
I have learnt a great deal at CDGs Finance Department. My exposure to various
leading technological tools has enhanced my technical knowledge. My better
understanding of corporate protocols and working environment stems from the fact
that I was allowed ample working space and responsibilities to make my own
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judgments. Spending time on an internship is an excellent way to get into gear for the
corporate world after months of academics. It allows an individual to apply new skill
sets learned at school and warms up the mind for the coming years of career ahead.
I would like to conclude by saying that even though every person will have a different
story to tell, the common factor that binds us all is the good work done by our
predecessors in the NUML University. I have given more than 100% of my efforts to
keep up that good work and I am sure that my colleagues have done the same. I am
hopeful that as we pass through the corridors of this great institution into the real
world, this legacy will be kept and upheld by the future generation of Numlians.
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TABLE OF CONTENTS
Chapter Page
EXECUTIVE SUMMERYi
TABLE OF CONTENTS iii
ACKNOWLEDGEMENT... vi
DEDICATION.... vii

CHAPTER NO 1 .......................................................................................................... 1
BRIEF INTRODUCTION .......................................................................................... 1
1.1 Brief Introduction of the Organizations Business Sector ...................................... 2
1.1.1 Heads of Offices and Groups ................................................................................. 2
1.1.2 District Coordination Officer .................................................................................. 2
1.2 Brief History ........................................................................................................... 3
1.2.1 Structure of District Administration ....................................................................... 3
1.2.2 Nature of the Organization .................................................................................... 3
1.2.3 Business Volume .................................................................................................... 3
1.3 Finance and Planning.............................................................................................. 4
1.3.1 Planning Officer (PO) .............................................................................................. 4
1.4 Finance and Budget ................................................................................................ 4
1.4.1 Functions of Finance and Budget Officer ............................................................... 4
1.5 Budget ..................................................................................................................... 5
1.5.1 Budget Classification .............................................................................................. 6
1.6 Approval of Budget ................................................................................................ 6
1.7 Public Account ....................................................................................................... 7
1.8 Budget call letter ..................................................................................................... 8
1.8.1 Finance and Budget Officer to supply receipt Forms to Collecting Officers .......... 9
1.8.2 Consolidation of receipts by the Finance and Budget Officer ............................... 9
1.8.3 Preparation of Estimates of Current expenditure ................................................. 9
1.8.4 Instructions for preparation of estimates of Current expenditure ........................ 9
1.8.5 Submission of Estimates of expenditure by Drawing and Disbursing Officer to
Head of Offices ..................................................................................................................... 10
1.9 New Expenditure .................................................................................................. 10
1.9.1 New Current expenditure Proposals .................................................................... 10
1.9.2 Instructions regarding new expenditure ............................................................. 10
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CHAPTER NO 2 ........................................................................................................ 12
FINANCE DEPARTMENT ...................................................................................... 12
2.1 Introduction of finance ......................................................................................... 13
2.2 Local Finance ....................................................................................................... 13
2.2.1 Fiscal Decentralization ......................................................................................... 13
2.3 Fiscal Transfers from the Provinces ..................................................................... 14
2.4 Organizational Structure ....................................................................................... 18
2.4.1 Organizational Hierarchy Chart ............................................................................ 18
2.4.2 Number of Employees ......................................................................................... 19
2.4.3 Comments on the Organizational Structure ........................................................ 19
CHAPTER NO 3 ........................................................................................................ 20
PLAN OF INTERNSHIP PROGRAM .................................................................... 20
3.1 Brief Introduction of the Branch .......................................................................... 21
3.1.1 Period of Internship ............................................................................................. 21
3.1.2 Department & Duration ....................................................................................... 21
3.2 Training Program .................................................................................................. 21
3.2.1 Introduction to all Departments .......................................................................... 21
3.2.2 Detailed description of the department I worked in ........................................... 22
3.3 Detailed description of the project assigned ......................................................... 22
3.3.1 Preparation of Current Budget ............................................................................ 22
3.3.2 Lower Tier ............................................................................................................ 25
3.3.3 Cash Flow Statement management & Reconciliation.......................................... 28
3.3.4 Dealing the matters related to interns ................................................................ 35
3.3.5 Financial Assistance Cases ................................................................................... 35
CHAPTER NO 4 ........................................................................................................ 36
BUDGET ENTRY ON SAP ...................................................................................... 36
4.1 Original budget entry: ........................................................................................... 37
4.2 Supplementary budget entry: ................................................................................ 51
4.3 Budget Transfer: ................................................................................................... 56
4.4 Budget Return: ...................................................................................................... 60
Delete line using [shift+F2]: to delete one or many lines selected .......................... 65
Select all [shi ft+F3]: to select all lines in the grid .................................................. 65
Deselect all [shift+F4]: to deselect all the selected lines ......................................... 65
4.5 Releases ................................................................................................................ 65
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4.6 Budget Release Reports - FD/EDO Budget Release Information System: ....... 72
4.7 Budget Release Reports Quarter Wise: ............................................................. 75
Budget Release Reports FD/EDO Total Releases: ................................................ 77
CHAPTER NO 5 ........................................................................................................ 80
STRUCTURE OF DEPARTMENTS. ...................................................................... 80
5.1 Department Hierarchy .......................................................................................... 81
5.2 Number of Employees .......................................................................................... 81
5.3 Organ gram Of Offices Under Edo (F&P) ........................................................... 82
5.4 Main Functions of E.D.O (F&P) .......................................................................... 83
5.5 Finance & Budget & Accounts Wing ................................................................... 83
5.6 Planning & Development Wing ........................................................................... 83
5.7 Enterprise & Investment Promotion ..................................................................... 84
CHAPTER NO 6 ........................................................................................................ 88
SOWT ANALYSIS .................................................................................................... 88
6.1 Strength ................................................................................................................. 89
6.2 Opportunities ........................................................................................................ 89
6.3 Weakness .............................................................................................................. 90
6.4 Threat .................................................................................................................... 90
CHAPTER NO 7 ........................................................................................................ 91
RECOMMENDATION ............................................................................................. 91
7.1 Recommendation .................................................................................................. 92

APPENDIX

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ACKNOWLEDGEMENT.

I would like to acknowledge extremely valuable assistance provided by all the
Officers and other staff members for their great cooperation. They provide the proper
guidance and support time to time which helps me a lot to work in such competitive
environment and the timely completion of assignments. The office working
environment is very good.

Your Name

viii

DEDICATION

I dedicate my work to my most respectable parents whom prayer made me able to
have such an opportunity of working in the Government Sectors and get experienced.

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1 CHAPTER NO 1
BRIEF INTRODUCTION

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1.1 Brief Introduction of the Organizations Business Sector
City District Government (CDG) is a part of Government of the Punjab and tackles all
matters related to administration of the Chiniot city.
1.1.1 Heads of Offices and Groups
The District Coordination Group of Offices shall be added by the District
Coordination Officer.
A group of offices, other than the District Coordination Group of Offices, shall be
headed by an Executive District Officer.
The District Officers shall head the district offices.
The Government shall setup sub-offices of the offices decentralized to district
government in every tehsil or town in a city district depending upon the needs of
such tehsil or, as the case may be, town for such sub-office Provided that where
any sub-office exists or is set up in a tehsil or town in a City District the Deputy
District Officer shall head such sub-office.
1.1.2 District Coordination Officer
According to the Punjab local government rule, In every district, the Government
shall appoint a District Coordination Officer who shall be a civil servant of the
Federation or of the Province, as far as possible in Basic Scale 20 Provided that in a
City District, the District Coordination Officer may be a civil servant of the
Federation or Province in Basic Scale 21.
The District Coordination Officer shall be coordinating head of the District
Administration and shall-
Ensure that the business of the District Coordination Group of Offices is carried
out in accordance with the laws for the time being in force;
Co-ordinate the activities of the groups of offices for coherent planning,
synergistic development, effective and efficient functioning of the District
Administration;
Exercise general supervision over programs, projects, services, and activities of
the District Administration;
Coordinate flow of information required by the Zila Council for performance of
its functions under this Ordinance;
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Act as Principal Accounting Officer of the District Government and be
responsible to the Public Accounts Committee of the Provincial Assembly;
Call for information and reports from local governments in the district as required
by the Provincial Government or District Government through the Tehsil
Municipal Officer.
Assist the District Coordination Officer in accomplishment of administrative and
financial discipline and efficiency in the discharge of the functions assigned to
District Administration;
Prepare a report on the implementation of development plans of the District
Government for presentation to the Zila Council in its annual budget session;
Initiate the performance evaluation reports of the Executive District Officers and
shall be countersigning officer of such reports of the District Officers initiated by
the Executive District Officers and implement governments policy and to collect
and disseminate information on behalf of the Provincial or District Government
from other tiers of local governments.
1.2 Brief History
The CDG was established in 2001 during the process of devolution and the CDG
Administration was divided between District Coordination Officer & District Police
Officer.
1.2.1 Structure of District Administration
The District Administration shall comprise the district offices, including sub-offices
of the Departments of the Government decentralized to the District Government and
other offices set up by The District Government and roped under the Executive
District Officers and coordinated by the District Coordination Officer.
1.2.2 Nature of the Organization
CDG is purely a Governmental Organization which is established to solve out the
general public problem related to any field in the district.
1.2.3 Business Volume
CDG Covers the whole District and responsibilities are very high in volume because,
the area is very big and peoples to handle having a huge strength of 4.8 million
almost.
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For this purpose District Government Chiniot works with a department of finance &
planning - The responsibilities, sub offices and major and minor functions of the
departments are given below.
1.3 Finance and Planning
Planning & Development,
Accounts,
Enterprise and Investment Promotion
Finance & Budget.
1.3.1 Planning Officer (PO)
Planning Officer means in relation to-
District Government, the Executive District Officer (Finance and Planning); and
Tehsil Municipal Administration, the Tehsil Officer (Planning).
Enterprise and Investment Promotion
Industrial estates and technological parks Cottage, small and medium sized enterprise
promotion Investment promotion and protection.
1.4 Finance and Budget
Finally, the Department where I did work Finance and Budget and the detail
description with functioning is given below.
1.4.1 Functions of Finance and Budget Officer
(1) The Finance and Budget Officer shall be responsible for the coordination of the
budgetary process and for the consolidation and preparation of the budget documents
of the local government.
(2) The Finance and Budget Officer in the case of a District Government shall be the
Executive District Officer (Finance and Planning).
(3) The Finance and Budget Officer in the case of a Tehsil Municipal Administration
shall be the Tehsil Officer (Finance).
(4) The Finance and Budget Officer shall perform the following functions-
(i) Issue the budget call letter after approval of the DCO, which shall include-
(a) Date-wise budget calendar;
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(b) Instructions for preparing the budget;
(c) Forms to be used in the preparation of the budget; and
(d) Budget guidelines.
(ii) Provide figures of available resources for formulation of budget;
(iii) Examination and scrutiny of the budget proposals;
(iv) Examination and scrutiny of a new expenditure;
(v) Compilation and consolidation of the Budget;
(vi) Communication of Grants to Drawing and Disbursing Officers;
(vii) Monitoring of the budget and ensuring that funds are spent as approved by
the Council;
(viii) Examination and scrutiny of proposals for Re-appropriation and
Supplementary Grants;
(ix) Provide financial information to the Council relating to local government;
(x) Submit reports on budgetary performance;
(xi) Monitor the receipts and expenditure of the local government; and
(xii) Provide such other supervision and administration as may be required from
time to time in connection with or ancillary to any of the foregoing
aspects of the budgetary process.
a. Preparation of the estimates of expenditure for the offices under
his jurisdiction;
b. Incurring of expenditure as per rules;
c. Coordination with the concerned higher level officials; and
d. Monitoring his budget.
Finally, the budget preparation, the major function of department
1.5 Budget
The budget is a statement of receipts and expenditure during a financial year of a
local government and thus reflects the local government policies, priorities,
financial strategy and operational plans in financial terms.
The DCO shall ensure that the needs of the disadvantaged groups are reflected in
the priorities and gender issues are adequately addressed.

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1.5.1 Budget Classification
(1) The Budget shall be prepared in accordance with Chart of Classification of
accounts issued by the Auditor General of Pakistan.
(2) The expenditure shall be classified into Development or Current expenditure.
(3) The Development budget shall be divided into two parts, namely-
(i) Citizen Community Board Development budget; and
(ii) Local government development (Non-CCB) budget.
(4) The receipts shall be classified as follows-
(i) Major head;
(ii) Minor head; and
(iii) Detailed receipt head.
(5) Expenditure shall be classified as follows-
(i) Function classification; and
(ii) Object classification.
(6) Functional classification shall be as follows-
(i) Major function;
(ii) Minor function; and
(iii) Detailed function.
(7) Object classification shall be as follows-
(i) Major object;
(ii) Minor object; and
(iii) detailed object.
(8) The budget of the Council and its secretariat shall be reflected separately in
the Budget. A separate Drawing and Disbursing Officer shall be designated for the
Council budget.
1.6 Approval of Budget
The presentation of the budget of a local government to its respective council and
approval thereof by the Council shall be in manner as may be prescribed Provided
that the charged expenditure may be discussed but shall not be voted upon by the
Councils.
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When a Local Government assumes office for the first time it may, within ten
weeks, present to the respective Council a budget for the remaining part of the
financial year for approval.
The Budget of a local government shall be approved by the simple majority of the
total membership of the respective Council.
In case a budget is not approved by a council before the commencement of the
financial year to which it relates, the concerned local government shall spent
money under various heads on pro rata basis in accordance with the budgetary
provisions of the proceeding financial year for a period not exceeding thirty days.
In case the budget is not passed within the extended period the budget shall be
prepared, approved and authenticated by Government for the full year.
At any time before the expiry of the financial year to which a budget relates, a
revised budget for the year shall be prepared by a local government for approval
by its Council.
A budget shall not be approved if-
the sums required to meet estimated expenditures exceed the estimated receipts;
and
The constraints specified in Section 119 have not been complied with.
The DCO shall authenticate by his signature a schedule specifying -
the grants made or deemed to have been made by the District Council, Tehsil
Council, Town Council or Union Council; and
The several sums required to meet the expenditure charged upon the District
Fund, Tehsil Fund , Town Fund or Union Fund.
The Schedule so authenticated shall be laid before the Council but shall not be
open to discussion or vote thereon.
The Schedule so authenticated shall be communicated to the respective Accounts
Office as specified in Section 114 of this Ordinance substituted vide the Punjab
Local government(Eighth Amendment) Ordinance, 2002.
1.7 Public Account
Every local government shall maintain a Public Account.
The estimates relating to Public Account shall be prepared by the Finance and
Budget Officer on receipt of the figures from the concerned offices.
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The withdrawals from the Public Account shall be for the purpose for which funds
were deposited.
1.8 Budget call letter
The budget call letter shall be finalized after consultation with the relevant
stakeholders.
Explanation The expression stakeholders include Councils, elected
representatives, general public, women's organization, private sector, Citizen
Community Boards, District Mushavirat Committee, Non-Governmental
Organizations, Community Based Organizations, and other organizations.
The priorities identified by a Council shall be forwarded to the DCOs as under-
(i) The respective Council of the concerned local government may
provide their requirements to the DCO;
(ii) The Tehsil Councils and Union Councils may provide their
requirements relating to district functions to the District Coordination
Officer;
(iii) The Zila Council and Union Councils may provide their requirements
to Tehsil Administrator relating to Tehsil functions; and
(iv) The Zila Council and Tehsil Councils may provide their requirements
to Union Chairman relating to Union functions.
The Finance and Budget Officer shall consolidate the information received from
the stakeholders including the priorities identified by the Councils and the local
government offices in the draft budget call letter and submit it to the DCO for
approval.
After approval by the DCO, the Finance and Budget Officer shall issue to each
Head of Offices the budget call letter, including the budget calendar.
The Budget and Finance Officer shall issue the classification of projects and other
guidelines to the CCBs on approval of the budget call letter by the DCO.
Each Head of Offices shall prepare its budget in accordance with the budget call
letter approved by the DCO.
The timeframe provided in the budget calendar shall be followed by each office of
the local government.
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Filled forms shall be submitted by the Drawing and Disbursing Officers,
Collecting Officers and Heads of Offices in accordance with the timeframe
specified in the budget calendar to the Finance and Budget Officer.
1.8.1 Finance and Budget Officer to supply receipt Forms to Collecting Officers
The Finance and Budget Officer shall, each year along with the budget call letter,
supply to the Collecting Officers Forms BDR-1 to 4 relating to receipts as provided in
the First Schedule, in which the estimates of receipts for the coming financial year
shall be prepared.
1.8.2 Consolidation of receipts by the Finance and Budget Officer
Upon receipt by the Finance and Budget Officer of the estimates of receipts from the
Heads of Offices, the Finance and Budget Officer shall consolidate such estimates.
The estimates of receipts shall be incorporated in the budget documents and submitted
to the Budget and Development Committee for finalization prior to submission to the
Council.
1.8.3 Preparation of Estimates of Current expenditure
The estimates of Current Expenditure shall be prepared by Drawing and
Disbursing Officers (DDOs) in accordance with the budget guidelines according
to which directions may be provided by the respective Head of Offices.
The estimates of expenditure shall be provided on the Forms BDC-1 to 7 relating
to Current expenditure.
1.8.4 Instructions for preparation of estimates of Current expenditure
The following guidelines shall be followed for purposes of determining the Estimates
of Expenditure-
(i) Provision for each expenditure shall be included under the appropriate
function and object head;
(ii) Provision for any foreseeable expenditure shall be included while ensuring
that each provision is restricted to the absolute minimum necessary sum;
(iii) Each Drawing and Disbursing Officer shall develop the most realistic and
sound estimates;
(iv) The estimates for each financial year shall provide only for such expenditure
as are to be actually paid during the next financial year;
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(v) Provision should not be made in the estimates for posts which it has been
decided to leave unfilled;
(vi) A performance incentive bonus for employees shall be included in the
Budget; and
(vii) The budget shall include provision for honoraria and allowances for Chairmen
and Councilors.
1.8.5 Submission of Estimates of expenditure by Drawing and Disbursing
Officer to Head of Offices
After completing the forms the Drawing and Disbursing Officer (DDO) shall retain
one copy for record in his office and forward the original together with an explanatory
note on BDC-8 showing the reasons for his proposal to the Head of Offices.
1.9 New Expenditure
Expenditure on new activities shall include the recurring costs of the development
projects to be completed in the next financial year and expenditure relating to new
current activities. The expenditure is mainly on personnel and purchase of durable
goods.
The new expenditure shall be provided with the budget documents as a Statement
of New Expenditure (SNE).
1.9.1 New Current expenditure Proposals
Each Drawing and Disbursing Officer shall for the next financial year send to the
Head of Offices, all proposals involving new current expenditure along with their
estimates in Forms BDC-1 to 7.
An explanatory note justifying the new proposals shall be provided in Form BDC-
8.
The details of the recurring expenditure of the development projects to be
completed during the budget year shall also be communicated by the Drawing and
Disbursing Officer (DDOs) to the concerned Head of Offices.
1.9.2 Instructions regarding new expenditure
(1) The respective Drawing and Disbursing Officer (DDO), while preparing any
proposal for new current expenditure shall ensure that-
(i) All proposals specify the;
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(a) Number of required personnel;
(b) Rates of remuneration; and
(c) Duration of employment of any proposed officials.
(ii) All relevant revenue implications have been described, quantified and
included in the estimates of receipts; and
(iii) Detail of expenditure as Purchase of Durable Goods has been
specified.
(2) Drawing and Disbursing Officers shall forward the estimates of new
expenditure separately to the Head of Offices along with the current budget.
In submitting proposals for new expenditure administrative difficulties and delays in
sanctioning processes should always be borne in mind and not more should be
recommended for provision in the budget than is likely to be incurred during the
course of the financial year.

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2 CHAPTER NO 2
FINANCE DEPARTMENT

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2.1 Introduction of finance
Finance studies and addresses the ways in which individuals, businesses, and
organizations raise, allocate, and use monetary resources over time, taking into
account the risks entailed in their projects. The term "finance" may thus incorporate
any of the following
The study of money and other assets;
The management and control of those assets;
Profiling and managing project risks;
The science of managing money;
As a verb, "to finance" is to provide funds for business or for an individual's large
purchases (car, home, etc.).
The activity of finance is the application of a set of techniques that individuals and
organizations (entities) use to manage their money, particularly the differences
between income and expenditure and the risks of their investments.
An entity whose income exceeds its expenditure can lend or invest the excess income.
On the other hand, an entity whose income is less than its expenditure can raise
capital by borrowing or selling equity claims, decreasing its expenses, or increasing
its income. The lender can find a borrower, a financial intermediary, such as a bank or
buy notes or bonds in the bond market. The lender receives interest, the borrower pays
a higher interest than the lender receives, and the financial intermediary pockets the
difference.
2.2 Local Finance
2.2.1 Fiscal Decentralization
Under the previous financial system the identification, appraisal and approval of
development projects were centralized, leading to projects that had very little
relationship with the local priorities. The element of community participation was
totally missing. High technology projects were adopted where low-cost technology
shall have been used. The issue of sustainability was overlooked in most cases.
Projects were located where citizens did not want them with the result that they were
not used.
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The process of allocating funds was non-transparent and inequitable. The District did
not exist as a unit of action and analysis for development. The developmental projects
were undertaken with total disregard to recurring costs. One department would build
infrastructure that another department or level had no political will and/or financial
capacity to run. Infrastructure would be built and then not maintained or poorly
maintained. The system produced contracts, jobs, and money for the benefit of the
few. It did not produce development, no matter how many billions of rupees were
spent.
The results are there for all to see. As very substantial percentages of project budgets
went to corruption, all that exists is shoddy infrastructure that is providing highly
deficient services. The economic and social impact of these malpractices is that the
country has some of the lowest economic and social indicators in the world, especially
in the areas of education, health and water supply.
This lamentable state of affairs had been due to the causes, which can be easily
identified. Centralization, top-down decision-making and the lack of participation,
transparency, accountability, checks and balances, and responsiveness to citizens
demands could be counted as the most glaring factors which contributed to the
decline. All of this could exist because of the concentration of power in the hands of
the few rather than the empowerment of many.
Transforming these deficiencies has provided the basis for the new local government
financial system. The core of the design is the empowerment of local governments
and the constitution of the District/Tehsil/Town and Unions as a unit of analysis and
action for development.
The transformation of the financial systems was envisaged to take place in two
phases. The interim financial system covered the period August 14, 2001 to June 30,
2002. The final system was implemented from July 2002. The reason for this was that
the new financial system required further work and could not be finalized by August
14, 2001.
2.3 Fiscal Transfers from the Provinces
From fiscal year 2002-2003 a transparent, formula-based system determines funds
transfers to local governments. For this purpose as required by the LGO 2001, a
Provincial Finance Commission (PFC) has been established by each Province.
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The Finance Commission consists of ten members, including the Chairman as under
Four ex-officio members , namely
Provincial minister for Finance;
Secretary to Government, Local Government and Rural Development
Department;
Secretary to Government, Finance Department (as Member/Secretary of the
commission); and
Secretary to Government, Planning & Development Department;
One District Coordination Officer, one Tehsil or Town Administrator and one
Union Chairman.
Three professional members from the private sector.
A private sector person has been defined as a person, who is not in the service of
Pakistan or any statutory body or any other body, which is owned or controlled by the
Federal Government or the Provincial Government or a local government.
The functions, duties and powers of the Finance Commission are to make
recommendations to the Governor for
a formula for distribution of resources including
distribution between the Government and the local governments out of the
proceeds of the Provincial Consolidated Fund into a Provincial Retained Amount
and a Provincial Allocable Amount respectively
distribution of the Provincial Allocable Amount amongst the District
Governments, Tehsil and Town Municipal Administrations and the Union
Administrations as shares;
any other matter relating to finance for and of the local government referred to the
Finance Commission by the Governor, or the Government, or by a local
government.
The Order of the Governor based on the recommendations of the PFC remains in
force for a period of three years. The Provincial Allocable Amount and shares of the
local governments are determined on the basis of actual monthly receipts of the
Government.
The Finance Commission in consultation with the Provincial Government also
determines the requirements for certification of fiscal transfers. The certification
includes the following
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provincial Allocable Amount and its calculation;
transfer of funds in accordance with determined shares to the District
Governments, Tehsil Municipal Administrations, Town Municipal
Administrations and the Union Administrations in the Province;
transfer of funds in accordance with the decisions of the Finance Commission on
references made to it from time to time; and
Revenues and expenditures of the Government and local governments.
The Government or a local government may seek redressal of grievance relating to
any matter connected with fiscal transfers by the Government concerning itself or
another local government by making a reference to the Finance Commission along
with the grounds of such grievance
The Fiscal transfer mechanism considers various factors to come up with an equitable
distribution of funds. The main factors are population, under-development, fiscal
effort, area, revenue generation capacity, and expenditure requirement, besides others.
The objectives of fiscal transfers are to provide base line levels for essential services,
to encourage revenue generation efforts, to encourage spending in priority areas and
to promote efficient spending. The criteria mentioned are the design requirements for
the formula that will make the transfer system absolutely transparent and non-
arbitrary. Fiscal decentralization has brought into sharp focus the inequitable
geographical distribution of funds. The financial position of every District is now
clearly indicated, and this will allow the DCOs to politically defend the interests of
their Districts at a time when the Provincial Finance Commission determines
allocations. This also makes transparent the Provincial share of the total budget as
compared to the Districts.
The transfers to local governments during FY 2001-2002 did not include
establishment charges, which were maintained at the Provincial level. Under the new
Finance System implemented from FY 2002-2003 the establishment charges are also
to be transferred to the local governments.
Each local government has a single fund. It includes the monies received from the
Provincial Government and the own source revenue of the local government. The law
not requires that the transfer of shares is to take place directly from the Provincial
Governments to the bank account of each local government. In lieu of OZT grant the
whole of the 2.5% of GST will now be added to the "Provincial Allocable Amount"
17

Monies credited to the Fund are kept in the bank specified by the Provincial
Government. All revenues received by a local government form part of the respective
local government fund including
money transferred by another local government under this Ordinance;
grants made to or monies received by a local government from the Government or
other sources;
the proceeds of taxes or charges levied by a local government under this
Ordinance;
rents and profits payable or accruing to a local government from immovable
property vested in or controlled or managed by it;
proceeds or any other profits howsoever known or called from bank accounts,
investments or commercial enterprises of a local government;
gifts, grants or contributions to a local government by individuals or institutions;
income accruing from markets or fairs regulated by a local government;
fines paid with respect to offences under this Ordinance or by-laws or under any
other law for the time being in force in which provision is made for the fines to be
credited to the Funds established under this Ordinance;
proceeds from other sources of income which are placed at the disposal of a local
government under directions of the Government; and
all monies transferred to a local government by the Government.
All other monies including receipts accruing from trusts administered or managed by
a local government, refundable deposits received by a local government; and deferred
liabilities are credited to the Public Account of the respective local government.
A local government can transfer approved budgeted amounts to any local government,
Village Council or Neighborhood Council or Citizen Community Board, within its
local area, for expenditure for carrying out a project service or activity transferred to,
or managed by, the recipient local government, Village Council Neighborhood
Council or Citizen Community Board
No local government is allowed to transfer monies to a higher level of government
except by way of repayment of debts contracted before the coming into force of this
Ordinance.

18

2.4 Organizational Structure
2.4.1 Organizational Hierarchy Chart

D.C.O
E.D.O (F&P)
E.D.O
(Education)
E.D.O
(Health)
E.D.O
(Agriculture)
E.D.O (CD)
E.D.O
(W&S)
Zila Council
E.D.O
(Ravanue)
E.D.O (IT)
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District coordination Officer.
Executive District Officer (Finance & Planning)
Executive District Officer (Revenue)
Executive District Officer (Education)
Executive District Officer (Information Technology)
Executive District Officer (Works & Services)
Executive District Officer (Community Development)
Executive District Officer (Health)
Executive District Officer (Agriculture)
Zila Council
2.4.2 Number of Employees
The organization have minimum of 800 Employees.
2.4.3 Comments on the Organizational Structure
The organization is very well structured because by this way the work burden divided
towards the different departments and the inspection of the head (D.C.O) makes it
more prominent to go with.
All the departments have their own sub offices handled by the District officers, the
files or the problems are divided to the concern person and very rare chances of lost of
data.

20

3 CHAPTER NO 3
PLAN OF INTERNSHIP PROGRAM

21

3.1 Brief Introduction of the Branch
I did my internship in the office of District Officer (Finance & Budget) which is
responsible of taking care of all the financial matter of the District Chiniot and the
major function of this department is to prepare and distribute budget to all the
departments come under District Coordination Officers control.
The Second major function of the department is to check and maintain the
expenditure reports received from different departments in order to keep balance in
the record.
Thirdly, the office deals with all kind of financial matters of District Chiniot.
3.1.1 Period of Internship
I did internship supervision of NUML from 01-07-2014 to 10-08-2014.
3.1.2 Department & Duration
I had been working in the department of Finance & Planning for six
Weeks and duration of the internship was 8 00 am to 3 00 pm daily.
3.2 Training Program
3.2.1 Introduction to all Departments
As, I have already mentioned that, I am working in a Government Organization and
the departments working in this organization are as following

Department of (Finance & Planning)
Department of (Revenue)
Department of (Municipal Services)
Department of (Education)
Department of (Information Technology)
Department of (Literacy)
Department of (Works & Services)
Department of (Community Development)
Department of (Health)
Department of (Agriculture)
22

All the given departments have their own responsibilities and working properly. The
departments work as their duties and send the performances to the head (District
Coordination Officer).
3.2.2 Detailed description of the department I worked in
I did work in the Office of Finance & Budget which comes under Executive District
Officer (Finance & Planning). Firstly, a very brief functioning of departments
working under
3.3 Detailed description of the project assigned
Following is a list of projects or tasks assigned to me throughout the internship
period.
Preparation of Current Budget for the year 2013-14.
Lower tier.
Cash flow statements management & reconciliation, received from State bank of
Pakistan and Accounts Office Chiniot again A/c IV of City District Government
Chiniot throughout the internship.
Dealing the matters related to interns
Financial Assistance Cases
Budget Entry on SAP (Systematic Accounts Product) for the year 2006-07 revised
and current for the year 2014-15.
Attend District Budget Training Course arranged by the Department of Auditor
General of Pakistan at Audit and Accounts Training Institute, Lahore.
Preparation of revised Budget Estimates 2013-14.
Preparation of Current Budget Estimates 2014-15.
3.3.1 Preparation of Current Budget
3.3.1.1 Budget Preparation
(1) The annual budget for each local government shall contain estimates
(a) Grants-in-aid from the Government;
(b) amounts available in the respective Fund;
(c) Receipts for the next year; and
(d) Expenditures to be incurred for the next year.
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To enable the budget preparation by Local Government, the Government shall,
sufficiently before the beginning of each financial year, notify the provisional shares,
which may be credited to the Fund of respective Local Governments from the
Provincial Allocable amount.
The Auditor General shall prescribe the chart of classification of accounts to be
followed by District Governments from time to time. In respect of Tehsil Municipal
Administration/Town Municipal Administration and Union Administration, the
accounts shall be maintained in a manner as may be prescribed.
Each District Government, Tehsil Municipal Administration, Town Municipal
Administration and Union Administration shall re-appropriate budgetary provisions in
accordance with the re-appropriation powers delegated to them by the respective
Council Provided that at the end of a financial year a full statement of all re-
appropriations made shall be submitted to the Council.
No demand for a grant shall be made except on the recommendations of the local
government.
Conditional grants from the provincial retained amount shall be shown separately in
the budget and shall be governed by conditions agreed therein.
Before the commencement of a financial year each local government shall, for its
Fund, prepare in the prescribed manner, a budget for that year in conformity with the
provisions of section 119 substituted vide the Punjab Local Government (Eighth
Amendment) Ordinance, 2002.
3.3.1.2 Budgeting Process of Local Governments
Before the commencement of every financial year, a DCO within the prescribed
period presents the budget for approval by the respective Council. The charged
expenditure is discussed but not voted upon by the Council. When a local government
assumes office for the first time, it may within ten weeks present to the concerned
Council a revised budget for the remaining part of the financial year for approval.
The budget is approved by a simple majority of the total membership of the respective
Council. No other business is taken up by a Council during the budget session. In case
a budget is not approved by a Council before the commencement of the financial year
to which it relates, the concerned local government spends money under various
heads on pro rata basis in accordance with the budgetary provisions of the preceding
financial year for a period not exceeding thirty days. In case the budget is not passed
24

within the extended period the budget is prepared, approved and authenticated by the
Government for the full year
At any time before the expiry of the financial year to which a budget relates, a revised
budget for the year can, if necessary, be prepared by the District Government,
Tehsil/Town Municipal Administration, and Union Administration and approved by
the respective Council.
A budget is not approved if the sums required to meet expenditures exceed the
estimated receipts.
Local government budgeting involves the preparation of the budget for the
District/City District Government, Tehsil/Town Municipal Administration and Union
Administration. The Executive District Officer (EDO), Finance and Planning is
responsible for the consolidation of the District Government budget. The Tehsil
Officer Finance is responsible for the Tehsil/Town Budget. At the Union level, the
Union Chairman is to prepare the budget with the assistance of the Union Secretaries.
The budget is classified into two areas. One part covers the non-development
expenditures while the other part includes the development expenditure.
The budget documents contain detailed information relating to the proposed
expenditure and the anticipated receipts. The basic publications are as follows
Annual Budget Statement
Estimates of Receipts
Estimates of charged expenditure
Demands for grants
New expenditure
Development program
The documents mentioned above provide a complete picture of the budget of the local
government. The following information is included to assist in comparing the
previous and current position
Budget estimates of the next financial year
Revised estimates of the current financial year
Budget estimates of the current financial year

25

3.3.2 Lower Tier
Lower tier is the process of releasing funds to all union councils (188) and maintain a
record against their funds with inspection of their working against their funds and
administrative process.
The detail functionality which needs to be checked is given below
3.3.2.1 Composition of Union Administration.-
There shall be constituted a Union Administration for every Union which shall be a
body corporate and consist of Union Chairman, Naib Union Chairman and not more
than three Union Secretaries and, where required, the members of ancillary staff.
3.3.2.2 Structure of Union Administration.-
(1) The Union Chairman shall be the head of the Union Administration.
(2) The Naib Union Chairman shall deputize the Union Chairman during his
temporary absence.
(3) The Union Secretaries shall coordinate and facilitate in community development,
functioning of the Union Committees and delivery of municipal services under the
supervision of Union Chairman Provided that functions of the Union may be assigned
to one or more Secretaries.
(4) The Union Chairman may declare one of the Secretaries of the Union
Administration to act as the Principal Accounting Officer of the Union
Administration.
3.3.2.3 Functions of the Union Administration.-
The functions of Union Administration shall be-
(a) To collect and maintain statistical information for socio-economic surveys;
(b) To consolidate village and neighborhood development needs and prioritize them
into union-wide development proposals with the approval of the Union Council and
make recommendations thereof to the District Government or Tehsil Municipal
Administration, as the case may be;
(c) To identify deficiencies in the delivery of services and make recommendations for
improvement thereof to the Tehsil Municipal Administration;
(d) To register births, deaths and marriages and issue certificates thereof;
To make proposals to the Union Council for levy of rates and fees specified in the
Second Schedule and to collect such rates and fees within the Union;
(f) To establish and maintain libraries;
26

(g) To organize inter-Village or Neighborhood sports tournaments, fairs, shows and
other cultural and recreational activities;
(h) To organize cattle fairs and cattle markets
(i) To disseminate information on matters of public interest;
(j) To improve and maintain public open spaces, public gardens and playgrounds;
(k) To provide and maintain public sources of drinking water, including wells, water
pumps, tanks, ponds and other works for the supply of water;
(l) To maintain the lighting of streets, public ways and public places through mutual
agreement with the Tehsil Municipal Administration;
(m) To arrange facilities for the handicapped, destitute and poor;
(n) To provide protection against stray animals and animal trespass, and to establish
cattle pounds;
(o) To regulate grazing areas;
(p) To assist the relevant authorities in disasters and natural calamities, and assist in
relief activities, including de-silting of canals;
(q) To co-operate with the public, private or voluntary organizations, engaged in
activities similar to those of the Union;
(r) To execute the projects of the approved Union Annual Development Plan by
contracting out to the private sector in the manner as may be prescribed and to obtain
support of the Tehsil Municipal Administration or District Government for such
execution.
(s) To assist the Village Councils or, as the case may be, Neighborhood Councils in
the Union to execute development projects.
3.3.2.4 Development Planning through CCBs
In every local area (defined as Union, Tehsil/Taluqa, Town, District and City District)
a group of non-elected citizens may, for energizing the community for development
and improvement in service delivery, set up a Citizen Community Board. The Citizen
Community Boards contribute in project design, implementation, management and
monitoring at grass root level with a view to improve services. Community Boards are
registered with the Community Development Group of Office of the respective
district.
The decentralized framework makes all areas of development activities accessible to
the Citizens so that they can truly become masters of their own destiny. CCBs
27

mobilize communities and raise funds to solve local problems. The CCBs through
voluntary, proactive and self help initiatives take up -
energizing the community for development and improvement in service delivery;
development and management of a new or existing public facility;
identification of development and municipal needs;
mobilization of stakeholders for community involvement in the improvement and
maintenance of facilities;
welfare of the handicapped, destitute, widows and families in extreme poverty;
establishment of farming, marketing and consumers cooperatives;
Reinforcing the capacity of a special Monitoring Committee at the behest of the
concerned Council.
A Citizen Community Board is a non-profit organization and its income and are used
solely for the attainment of its objectives, and no portion of the income is to be paid
by way of salary, dividend, profit or bonus to any of its members or contributors. The
Citizen Community Board has a general body of its members who elect a Chairman,
Executive Committee and a Secretary of the Board for carrying out its functions. The
term of office of the Chairman, members of the Executive Committee and Secretary
of the Citizen Community Board is two year extendable through election for a similar
term or terms by the general body. The Chairman and Secretary are responsible for
safe custody and management of property and assets of the Citizen Community
Board.
The CCBs submit their proposal on a standardized application form. The CCBs
develop proposals, which are in line with the functions and objectives defined in the
Local Government Ordinance. The maximum share of the local government cannot
exceed 80%. The community share in cash must not be less than 20%.
3.3.2.5 Development Planning through Local Governments
In addition to the bottom up planning mechanism the Ordinance also caters to
development activities through the regular local government system. Under this
process also, the public participation concept is adhered to. Schemes are identified at
local level. The communitys input is solicited at the planning and design stage. The
schemes identified by the Union Councils are forwarded to the Tehsil/Town
Municipal Administration and District Government. Similarly schemes identified by
the Tehsil/Town Council are forwarded to the District Government and Union
28

Administration. District Council may also recommend schemes to the Tehsil/Town
Municipal Administration and Union Administrations. No share from the public is
required under this mechanism. All schemes need to be approved by the respective
Council.
3.3.2.6 Re-appropriations during the year
Re-appropriation means the transfer of savings in the provision of expenditure made
for a particular unit of appropriation to meet the excess expenditure anticipated by
another unit. The Councils have powers under the law for re-appropriation of the
budget at any time during the year. There are no restrictions on the Council with
regard to re-appropriation.
3.3.3 Cash Flow Statement management & Reconciliation
I was responsible to prepare and handle the cash flow statement of the City District
Government Chiniot. A statement was received on daily bases in this regard against
the receiving and expenditure from State bank of Pakistan and on the other hand the
expenditure statements were received from District Account Office. There reconciling
and record maintaining was the most important opportunity for me, whom I took
exceptionally well and it learnt me a lot. Detail of my learning is given below against
local governments Accounting system, expenditure system, taxation and auditing
system.
The reconciliation process is to check whether the withdrawal from the state bank and
Account office matches.
The process of Reconciliation and management is done on monthly bases and I was
responsible to receive and manage the record on daily bases and reconcile monthly. In
case of difference justification call from both offices was my responsibility.
3.3.3.1 Accounts
(1) The accounts of the receipts and expenditure of District Government shall be kept
in such form and in accordance with such principles and methods as the Auditor
General of Pakistan may prescribe with the approval of the President.
(2) The accounts of receipts and expenditure of Tehsil Municipal Administration,
Town Municipal Administration and Union Administration shall be kept in the
prescribed manner.
(3) The following procedure for maintenance of accounts shall be followed, unless
changed by the Government through a notification
29

(a) The District Accounts Officer or where District Accounts Office does not
exist, a Treasury Officer shall maintain the accounts of each District
Government;
(b) The Tehsil Accounts Officer or Town Accounts Officer and Union
Accountant shall maintain the accounts of the Tehsil Municipal
Administration or Town Municipal Administration or the Union
Administration, as the case may be;
(c) The District Accounts Officer shall perform pre-audit of all payments from
the District Fund before approving the disbursements of monies. In
accordance with the pre-audit checks prescribed by Auditor General of
Pakistan from time to time; and
(d) The Tehsil Accounts Officer, Town Accounts Officer and Union
Accountant shall perform pre audit of all payments from the Tehsil Local
Fund, Town Local Fund and the Union Local Fund as the case may be, before
approving the disbursement of monies in the prescribed manner.
(4) A statement of monthly and annual Accounts and such other necessary statements
shall be placed at a conspicuous place by the Local Government concerned for public
inspection substituted vide the Punjab Local Government (Eighth Amendment)
Ordinance, 2002.
3.3.3.2 Revenue Collection
The collection of provincial taxes at the district level has been entrusted to the
Revenue Group of Office. This group includes two offices. The first one is Land
Revenue and Estate while the second is Excise and Taxation. The tax collection
machinery has been reorganized to make it more effective. A major function under the
Land Revenue & Estate is assessment and collection of land taxes. The Excise &
Taxation office is also responsible for the assessment and collection of taxes/duties
and fees, which are in the purview of the District Government. It is also responsible
for the collection of Federal and Provincial taxes when directed by the Provincial
Government. The tax collection is to be improved by increasing the tax base and
bringing about an improvement in the collection mechanism.
The taxes approved by the Zila Council are collected by the District Government
through the Revenue Group of Office. The District Government may adopt any
mechanism for the collection of these taxes, e.g., contracting or collection by its own
30

staff. The amount collected is deposited in the District Fund under their respective
revenue heads.
The Tehsils/ Towns and Union Administration also have their own arrangements for
tax collection.
3.3.3.3 Expenditure Management
The monies credited to a Fund are expended by local government in accordance with
the annual budget and Supplementary Budget approved by its Council. Once the
Annual Budget Statement has been approved by the Council, the local governments
Offices are in a position to spend the budgeted funds. This process requires the
following steps
preparation of the Schedule of Authorized Expenditure for the year;
provision of the authenticated copy of the Schedule of Authorized Expenditure to
the District Accounts Officer; and
Communication of the sums authorized to the offices.
An important function of the local governments is procurement. The rules for the
delegation of Financial Powers have been issued to the local governments.
The focus of the devolution and fiscal decentralization efforts is to improve services.
This is to be achieved through a people-centered approach. To manage and control
expenditures, the Ordinance provides for a number of checks and balances. The
Monitoring Committees of the Councils plays an important role in ensuring that the
public funds are spent judiciously. The monitoring of the performance of the local
governments is a critical function and has been covered thoroughly in the Ordinance.
The District Coordination Officer is required to present a report of the performance of
the District Government in person to the Zila Council at least twice a year. Likewise,
the Tehsil/Town Administrator has to present a similar report to his Council. The
DCO has to prepare a report on the implementation of development plans of the
District Government for presentation to the Zila Council in its annual budget session.
3.3.3.4 Taxation by Local Governments
In addition to the fiscal transfers from the Province, the local governments have been
authorized to levy certain taxes. The Councils may increase, reduce, suspend, abolish
or exempt the levy of any tax for such period as may be specified by the Council after
vetting by the Provincial Government. The taxes provided in the Second Schedule of
the LGO, 2001 are as follows
31

PART I ZILA COUNCIL
Education tax.
Health tax.
Any other tax authorized by the Government.
Local rate on lands assessable to land revenue.
Fees in respect of educational and health facilities established or maintained by
the District Government.
Fee for licenses or permits and penalties or fines for violations.
Fees for specific services rendered by a District Government.
Collection charges for recovery of tax on behalf of the Government, Tehsil
Municipal Administration and Union Administrations as prescribed.
Toll on roads, bridges, ferries maintained by the District Government
Rent for land, buildings, equipment, machinery and vehicles.
Fee for major industrial exhibitions and other public events organized by the
District Government
PART II ZILA COUNCIL IN CITY DISTRICT
Education tax.
Health tax.
Any other tax authorized by the Government.
Local rate on lands assessable to land revenue.
Fees in respect of educational and health facilities established or maintained by
the City District Government.
Fees for specific services rendered by City District Government.
Toll on roads, bridges, ferries maintained by the District Government.
Fee for major industrial exhibitions and other public events organized by the City
District Government.
Fee on advertisement.
Collection charges for recovery of any tax on behalf of the Government, Town
Municipal Administration, Union Administration or any statutory authority as
prescribed.
32

Fee for approval of building plans, erection and re-erection of buildings.
Charges for execution and maintenance of works of public utility like lighting of
Public places, drainage, conservancy and water supply operated and maintained
by City District Government.
PART III TEHSIL COUNCIL
Local tax on services as prescribed.
Fee on sale of animals in cattle markets.
Market fees.
Tax on the transfer of immovable property.
Property tax rate as specified in Section 117.
Fee on advertisement other than on radio, television and bill boards.
Fee for fairs, agricultural shows, cattle fairs, industrial exhibition, tournaments
and other public events.
Fee for approval of building plans and erection and re-erection of buildings.
Charges for development, betterment, improvement and maintenance of works of
public utility like lighting of public places, drainage, conservancy, and water
supply by Tehsil Municipal Administration.
Fee on cinemas, dramatical, theatrical shows and tickets thereof and other
entertainment.
Collection charges for recovery of any tax on behalf of the Government, District
Government, Union Administration or any statutory authority as prescribed.
Fee for specific services rendered by a Tehsil Municipal Administration.
Tax on vehicles other than motor vehicles registered in the Tehsil.
PART IV TOWN COUNCIL
Local tax on services.
Fee on sale of animals in cattle markets.
Market fees.
Tax on transfer of immovable property
33

Fee for fairs, agricultural shows, cattle fairs tournaments industrial exhibitions and
other public events organized by the Town Municipal Administration.
Collection charges for recovery of any tax on behalf of the Government, City
District Government, Union Administration or any statutory authority as
prescribed.
Fee on cinemas, dramatical, theatrical shows and tickets thereof, and other
entertainment.
Fees for specific services rendered by a Town Municipal Administration.
Property tax rate as specified in Section 117.
Fee for approval of building plans and erection and re-erection of buildings with
the approval of the City District Government.
Tax on vehicles other than motor vehicles registered in the Town.
PART V UNION COUNCIL
Fee for licensing of professions and vocations as prescribed.
Fees for registration and certification of birth, marriages and deaths.
Charges for specific services rendered by the Union Council.
Rate for remuneration of Village and Neighbourhood guards.
Rate for the execution or maintenance of any work of public utility like lighting of
public spaces, drainage, conservancy and water supply operated by Union
Administration.
Collection charges for recovery of any tax on behalf of the Government, District
Government, Tehsil Administration or any statutory authority as prescribed.
The procedure for levying new taxes has been made transparent. No tax can be levied
without inviting public objections.
Under the Local Government Ordinance, changes have been made in the tax structure.
The tax on transfer of immovable property and cattle markets are at the Tehsil/Town
level. The fees for licensing of professions and vocations have been provided to the
Union level. Two new sources, Health Tax and Education Tax have been given to the
District Government. The main objective in devolving taxes to the lower level is to
34

bring about an improvement in the collection efficiency and the tax base. An
important change from the previous system relates to the rating areas. Under the Local
Government Ordinance the entire Tehsil or Town is the a rating area.
If people visibly see the benefits of their tax money and if they know that the funds
are being used for productive purposes, their predisposition to pay taxes rises. When
the inverse is the case, everyone has a justification for avoiding taxes with little or no
social stigma attached to being a tax evader. In sum, every District, Tehsil/Town, and
Union now has the opportunity to mould its local tax culture through their actions in
relation to transparency, accountability, and service delivery.
3.3.3.5 Auditing of Local Governments
The Local Government Ordinance provides a number of checks and balances for
ensuring that the expenditure is incurred judiciously and in accordance with the law,
rules and regulations. The Ordinance provides the institutional framework under
which the audit is to be conducted. The external audit is conducted by Auditor
General of Pakistan.
Under the LGO, 2001, the external audit of every District Government, Tehsil/Town
Municipal Administration and Union Administration is to be carried out once in a
financial year. The external audit report is to be placed before the Accounts
Committee of the respective Council. If required, a DCO can request a special audit at
any time during the year. The Local Government Commission of a Province can also
conduct a special audit of the accounts of a local government.
The Auditor General in the case of District Government and Director Local Fund
Audit in the case of Tehsil/ Town and Union Administration, as the case may be, shall
ascertain whether the monies shown in the accounts as having been disbursed were
legally available for, and applicable to, the service or purpose to which they have been
applied or charged and whether the expenditure conforms to the authority which
governs it;
audit all transactions of a local government relating to Public Accounts;
audit all trading, manufacturing, profit and loss accounts of a local government; and
audit all receipts which are payable into a local government Fund and to satisfy
himself that all such receipts which are payable into a local government fund have
been properly and correctly deposited and rules and procedures relating to such
receipts have been fully observed.
35

The Auditor General in the case of District Government and Director Local Fund
Audit in the case of Tehsil/ Town and Union Administration, as the case may be, shall
have the authority to local government including treasuries, and such offices
responsible for the keeping of initial or subsidiary accounts;
documents which deal with, or form the basis of or otherwise relevant to the
transactions to which his duties in respect of audit extend, shall be sent to such place
as he may direct for his inspection; and consider necessary, and to call for such
information as he may require for the purpose of the audit;
In addition to the external audit DCO of each District Government and each
Tehsil/Town Municipal Administration is to appoint an Internal Auditor. Internal
audit is an independent, objective assurance and consulting activity designed to add
value and improve a local governments operations and will help the local
government to accomplish the objectives by bringing a systematic and disciplined
approach to evaluate and improve the effectiveness of risk management, control, and
governance processes. The Internal Auditor serves as a principal support person to
respective DCO of District Government or Tehsil/Town Municipal Administration by
providing information to him on local government performance.
3.3.4 Dealing the matters related to interns
I was responsible to keep the record of all the interns working in the office and
maintaining the records of the interns. Their progress reports, evaluation, monthly
stipend matters were the biggest issues.
In accordance to this, all the matters related to District Account Office were handled
by me and I was responsible for preparing their pay bills and submission to the
account office.
The letters which came from Services & General Administration Department, Lahore
were marked to me and I had to deal with them accordingly.
3.3.5 Financial Assistance Cases
I was given the task to handle and forward all cases related to financial Assistance of
the dead persons who expires during their services. As cases receive, I was
responsible to check whether the file is complete from all aspects or not.
Secondly, making a note to the officers about the cases and informing them about the
current position of the case.

36

4 CHAPTER NO 4
BUDGET ENTRY ON SAP

37

SAP (Systematic Accounts Product), software especially designed for the large scale
Accounts problems and record keeping. Pakistan is the first country in Asia using this
software to control the Accounts on both the provincial and federal levels.

After preparation of Budget on MS Excel all the Finance Departments of the Pakistan
are responsible to upload or manually enter the data on that Software so that, the
budget could be check by the Accountant General and Finance Department.

Secondly, as the software is used to handle the accounts the District Account Office is
responsible to enter all the expenditures and re-appropriation of the funds on this
software.
Reports are automatically generated by the software and could easily print out.

Complete Evaluation of SAP Software:
During the internship period, Following are the main functions of SAP which were
self evaluated by me and were implemented also;

4.1 Original budget entry:

Budget Data Entry:
1. Business Process Overview:
Budget Preparation process is conducted for the coming fiscal year and starts in
the preceding fiscal year as soon as the Budget Call Circulars (BCCs) are issued.
Budget is prepared for only one coming fiscal year with revised estimates of
existing fiscal year. The new SAP system provides you with efficient ways to
enter the budget data. Data Entry in the SAP system begins as soon as FD receives
the Budget Call Circulars (BCCs) from the respective Drawing & Disbursement
Officers (DDOs) approved by concerned Deputy Financial Advisors. The BCC
contains the Budget Year, Type of Document, Fund (demand), Function, Fund
Center (DDO), Total Budget Amounts of Revised and Budget Estimates, Details
of Revised and Budget Estimates with respect to their commitment items, Details
of Foreign Exchange for Development Fund.
2. Process Steps:
38

a) Access main screen of Budgeting System by using:
Transaction Code ZFD

The following screen appears.

b) In Data Entry head, select the option i.e. Enter New Documents and press the
Next button.
39

c) Fill in the fields as shown in the table below:
Fields Description
Fiscal Year Automatically picked up by
the system

Fund 07 character field to enter
fund

Sector 02 character field to enter the
sector
Field of sector allows entry
only for Development
Funds
Sub Sector 04 character field to enter the
sub sector (first 2 character
represents sector)
Field of sub sector allows
entry only for
Development Funds
Function 10 character field to enter
superior fund center

Budget Type : Select appropriate type.
40

SNE (F)

SNE (C)

Permanent
Statement of New
Expenditure (Fresh)
Statement of New
Expenditure (Continued)
Regular Budget
Total Revised Estimates Amount of Revised Budget at
document level
Allows entry in case of
Permanent Expenditure
only.
Total Budget Estimates Amount of Budget at
Document Level

Match Totals Check if want to confirm
amounts at document level &
Object Level
It can be used to verify
budget at document level
with budget entered at
object level
Fund Center 06 character field to enter
fund center

Keep Intact It is used to hold information
for several entries in order to
avoid data entry

SNE No. A number that is allocated to
SNEs
Mandatory for SNE (F)
and (C). In case of
permanent budget this field
will not be used

Object Code 06 character field to enter
object code
A is by default
41

BS Scale Basic Pay Scale as per
document
If A01101 or A01106 is
used you can only enter BS
Scale ranging from 16-22
& 99 for A01151 or
A01156 BS Scales ranging
from 1 15 would be used
Designation Designation as per document
No. of Posts No. of posts as per document
Rev. Estimate Amount of Revised Estimate
at object level

Recurring An amount of expense which
is repeatedly used by DDO in
previous years.

Non-Recurring An amount of expense which
is only demanded in current
year.

Budget Estimate Total amount of budget at
object level (recurring plus
non recurring)
It is calculated at run time
Foreign Exchange Foreign funding for that
particular development DDO
Only used for
Development Funds
d) After entering information press F5 or Park Document button to post the
document.

42

e) You can edit the document afterwards by using the Diary Number assigned to
the document by the system as shown in the above message, Document with
Diary Number SNE P-2004-999997 has been posted successfully
3. Tips and Tricks:
F4 key can be used for Help Search
F8 key can be used to add budget
F5 key can be used to park the document
F7 key can be used to clear all fields
F9 key can be used to edit the document
4. Conclusion:
You can enter budget data into the system successfully.
b) Editing Budget:
5. Business Process Overview:
The new SAP system provides you with efficient ways to edit budget documents
already entered into the system. The documents that are parked as well as posted
can be viewed and then edit if required.
6. Process Steps:
a) Access the Budgeting System main screen by using:
43



b) In Data Entry head, select the option i.e. Edit Documents and press Next
button.
44


c) Enter the Old Doc. No. and press Enter.
The following screen appears displaying all previous information related to the
document.

45

d) If you want to edit an entry select it from extreme left as shown below:

e) After selection press , first button at extreme right. The system then
allows you to edit the amount entered for the selected document as shown
below:

f) After editing press F5 to park the document.
46

g) If you want to edit number of documents then check the Push Key and press
enter as shown below. The system allows you to edit the amounts of all entries
turn by turn

h) After editing, press F5 to post the document.

47

7. Tips and Tricks:
F4 key can be used for Help Search
F5 key can be used to park a document
To delete an entry button can be used
To edit a single entry button can be used
F8 key can be used to add budget
F7 key can be used to clear all fields
8. Conclusion:
You can successfully edit the documents.
Budgeting-FD Maintain Sector/Sub Sector:
Business Process Overview:
The new SAP system provides you facility to maintain Sector and its Sub Sector
wise development budget. With the help of this system you can create, modify,
and delete the information related to Sectors and their Sub Sectors.
Process Steps:
FD-Budgeting System main screen can be accessed by using:

48


a) In Maintain Sector/Sub-Sector head, select the option i.e., Add/Edit/Delete
Sector/Sub Sector for FD and press NEXT button.


49

b) To create a Sector, in Sector Maintenance head, enter a new Sector Code and then
Sector Description and press Create button. The system displays the message as
shown in the next screen.

c) To create Sub Sector of the new sector, enter the new information in Sub Sector
Maintenance head as shown below:

50

d) After entering information, press Create button. The system displays the
message as shown in the next screen.

e) To view description of any Sector/Sub Sector, enter the Sector/Sub-Sub Sector
Code and press Display button. The system then displays the description of the
sector/sub sector.
f) To modify any data related to Sector/Sub Sector, edit it and press Modify
button, the system then updates the information.
g) To delete any entry, enter the information and press Delete button, the system
then deletes the information from the system.
h) To clear all fields, press the Clear All button.
Tips and Tricks:
F4 key can be used for Help Search.
Conclusion:
You can maintain Sector/Sub Sector successfully.

51

4.2 Supplementary budget entry:

If funds provided to a particular DDO (Fund Center) for a particular object are not
sufficient in original budget then supplementary budget is approved or granted to
that DDO. The new SAP system provides you with efficient ways to enter
supplementary budget in the system. Supplementary Budget is entered into the
system as soon as it is approved by the authorities.
In order to enter data for supplementary budget, the information that is required
to enter in the system includes: Fund, Function, Budget Type, Budget Estimate on
Fund Center (DDO) level, Fund Center, Object Code, Recurring Amount, and
Non Recurring Amount.
Process Steps:
a) In the SAP Easy Access screen enter:
Transaction Code ZFDSUPPP

52

b) In Data Entry head select the option, Enter New Documents and press the
NEXT>> button.

c) Enter the information in the Input Screen as shown in the table below:
53

Fields: Description:
Fund* 07 character field to enter fund
Function* 10 character field to enter superior fund centre
Budget Type:*
Regular

Token
Technical

Others
Select your required budget type from the options
The supplementary approved for already funded objects in original budget
for a particular DDO.
The supplementary approved for an unfunded object for a particular DDO.
The supplementary awarded to a particular DDO when another DDO in the
same fund surrender his funded object.
Any other supplementary which does not fall in above mentioned categories
Budget Estimates* The total amount of budget estimate
Fund Center* 06 character field to enter Fund Centre
Object Code* That object code for which supplementary budget is to be allocated
Recurring Amount An amount of expense which is of repeatedly used by DDO in previous
years.
Non-Recurring Amount An amount of expense which is only demanded in current year.
Note: Fields marked with an asterisk (*) are mandatory.
d) In the above screen the field of Budget Estimate shows the running total for
the document level if the option of Match Totals is not checked.
54

e) If you check the Match Totals option given with the Budget Estimate field
then you must enter the amount of total supplementary budget against the
document in Budget Estimate field. The system then matches the total amount
of budget estimate on document level with the amount entered as Recurring
Amount and Non-Recurring Amount on object level. In this case, posting
would only occur when both are equal otherwise would be parked in error
mode.
f) If the document contains errors, the system parks the document in error mode
and displays a window which shows the difference of amount and displays a
message that the document is parked in error mode as shown below:

55

g) If the document is correct, the system validates it and posts it and displays a
message as shown in the next screen.

Tips and Tricks:
F4 key can be used for help search.
Enter key can be used to move from one field to another.
56

If you want to see the running total of the amounts of supplementary budget
keep the Match Totals option uncheck and if you want to match the total then
keep it check.
You can use the Keep Intact option to avoid repetition of writing same Fund
Center and Object Code for that particular document.
F8 key or Add Budget button can be used to add budget.
F5 key or Park/Post Document button can be used to Park or Post the
document.
To clear all fields use F7 key or Clear Fields button.
To see the List of Parked Documents press Shift+F2 or List of Parked
Documents button.
To edit the document press Ctrl+F1 or Edit button.
To move to the first field, last field or if you want to change the document or
want to go to the next field, you can use buttons given in the extreme right at
object level.
Conclusion:
You can successfully enter the Supplementary Budget information in the system.

4.3 Budget Transfer:

It may happen that one fund center is running short of funds while another still has
plenty. Transfers are a tool in Funds Management, which you can use to place budget
from one budget structure plan element at the disposal of another. In budget transfer,
budget amounts are debited for one budget address and credited at another.
The budget can be divided into two different value types:
Commitment Budget
Payment Budget
Process Steps:
a) Budget Transfer screen can be accessed by using:
Menu Path Accounting Financial Accounting Funds Management
Budgeting Transfer Payments
57

Transaction Code FR14


b) Fill in the above fields as shown in the table below:
Fields Description
Document Date* Issue date for the original document
FM Area* An FM area is an organizational unit which plans,
controls and monitors funds and commitment budgets
Version* Key that uniquely identifies the required budget version
58

Sender Fund* Key that uniquely identifies the fund
Receiver Fund* Key that uniquely identifies the fund
Sender Year* The year from which sender object takes the budget
fund
Receiver Year* The year in which the receiving object receives
additional budget funds
c) After entering data into above fields press Enter.

d) Fill in the above fields as shown in the table below:
Fields Description
Sender Fund Center* Alphanumeric code for the funds center, which you are
creating, changing, or displaying, or to which you are
assigning budget.
Commitment Item* Alphanumeric code of the commitment item you are
creating, changing, displaying, or to which you are assigning
budget
Receiver Fund Alphanumeric code for the funds center, which you are
59

Center* creating, changing, or displaying, or to which you are
assigning budget
Commitment Item* Alphanumeric code of the commitment item you are
creating, changing, displaying, or to which you are assigning
budget
Amount* The budget amount that is to be transferred
e) After entering data into above fields press Enter.

f) Now press Ctrl +S or button to save the transaction.

60

Tips and Tricks:

Use F4 key for help search
Use or [shift+F2] to delete one or many lines selected
Use or [F5] to cut line(s) selected
Use or [F6] to copy a line(s) selected
Use or [F7] to paste objects previously cut or copied
Use or [F2] to access the detail screen for the selected line
Use or [F9] to check budget consistency for the entered data
Conclusion:
You can successfully transfer budget.

4.4 Budget Return:

Within the execution of the approved budget additional budget amendments need
to be made which includes:
Supplementary Budget
Budget Returns
Budget Transfers
To clearly separate return budget from the other budget categories, separate
transactions allow its registration.
SAP provides 2 transactions to enter the budget figures:
A transaction for hierarchical treatment
Direct entering with automatic rollup
Within the transaction, you only need to identify the budget hierarchy to be
effected and the amount. The system automatically rolls up the budget to the next
higher levels within the budget hierarchy until the top is reached.
61

The transactions aim to provide:
Easy data entry
Quick data entry
Automatic roll-up (always consistent) capabilities
In contrast to the hierarchical budget transactions, the rollup transactions should
be used:
To avoid blocking of complete/partial hierarchy and allow multiple users to
enter budget data at the same time
To allow quick data entry
To keep the budget consistent due to automatic rollup
To minimize impact on performance
Process Steps:
a) Roll up Returns Payment screen can be accessed by using:
Menu Path Accounting Financial Accounting Fixed Assets Funds
Management Budgeting Return Payments Roll up
Transaction Code FR29

62

b) Fill in the above fields as shown in the table below:

Fields Description
Document Date* Issue date for the original document
FM Area* An FM area is an organizational unit which plans,
controls and monitors funds and commitment budgets
Version* Key that uniquely identifies the required budget version
Fund* 10 char field to enter fund
Year* Budget year
c) After entering data into above fields press Enter.
63


d) Enter data into above fields as shown in the table below:

Fields Description
Fund Center* Alphanumeric code for the funds center, which you are
creating, changing, or displaying, or to which you are
assigning budget.
Commitment item* Alphanumeric code of the commitment item you are
creating, changing, displaying, or to which you are
assigning budget
Amount* The budget amount that is to be returned
e) After entering data into above fields press Enter.

64

f) Now press Ctrl + S or button to save the transaction.

65

Tips and Tricks:
Use F4 key for help search
Delete line using [shift+F2]: to delete one or many lines selected
Incase the user wants to delete any of the entered data entries, select the line
items which are to be deleted by clicking on the check boxes at the extreme
left of the data grid. After selecting all the required lines, press the delete
icon.
Select all [shi ft+F3]: to select all lines in the grid
This facility allows the user to select a number of lines at the same time
without having to mark each line separately, one by one. This can be done by
pressing the select icon (as shown below in the screen shot)
Deselect all [shift+F4]: to deselect all the selected lines
Another facility provided to the users is the option to deselect all the items all
the together without having to do them separately, one by one. This can be
done by pressing the deselect all icon.
Conclusion:
You can successfully enter budget returns into the system.

4.5 Releases

Budgeting FD/EDO Releases Budget Compile
The budget compilation is necessary before releasing the budget. It is based on the
current budget i.e. the original budget as amended by supplements, returns and
transfers.
The budget compilation is user specific i.e. user of specific site (FD/ EDO) can
only release his own budget. It presents a consistent data structure within itself
and within the current budget.
Process Steps:
a) Access the Budget Release screen by using
66

Menu Path in YPMAIN Budget Release System Budget Data Compile
Transaction Code YPFDRE


67

3. Enter the year for which releases to be made. In addition, if there is any activity in
budget, then check the box update the same year is must. This will compile the
additional budget and make it available for release.
After entering data press F8 or to execute the transaction.
Conclusion:
You can compile budget successfully.
Budgeting FD/EDO Releases (Step # 2):

In many organizations distributing a budget is not the same as releasing the funds.
For this reason, Funds Management includes a release option which can be used to
release the budget bit by bit. Releases can be expressed in percent or as absolute
amounts.
68

The Release is based on the current budget i.e. the original budget as amended by
supplements, returns and transfers.
The budget release is user specific. The budget releases present a consistent data
structure within themselves and within the current budget. Budget availability
control is set on funds released. Budget cannot be made available for use unless
released
Process Steps:
b) Access the Budget Release screen by using:
Menu Path in YPMAIN Budget Release System Budget Released
Transaction Code YPFDBUDREL

69

70

a) Enter data into above fields as shown in the table below:
Fields Description
Document Date* Budget release date
Year* 4 characters field to enter the year
Company Code* 1 character field to enter company code (F, P, S, B, N, D)
Fund* 7 characters field to enter a fund
Sector 2 characters field to enter a sector
Sub Sector 4 characters field to enter a sub sector
Function 10 characters field to enter a function
DDO 6 characters field to enter a fund center
Commitment Item 6 characters field to enter a commitment item ( Object code)
Sub Item 3 characters field to enter a sub item #
District/ Province Code* Enter a district/ province code
Budget Percentage Release Enter the percentage of budget to be release
Reference* Reference of letter by which release is allowed
T_Amount Used to enter an amount of a commitment item when budget
release is manually done. Also check the Manual Release
Box.
Manual Release Used for manual release
Reverse Used to reverse an already made release
First, Second, Third & Fourth
Quarters
Used to specify the quarter for the budget release. For monthly
release, check the quarter and give the date in first field for
every month.
71

* Fields are mandatory
Part (A) of Screen Below

Part (B) of Screen by dragging the horizontal scroll.

c) Click on Release push button

Conclusion
You can release budget successfully.
72

Important Note:
Whenever the release upload session is run and that session breaks due to any
reason e.g electricity or problem in master data etc. Points to remember are that:

1. The system executes the data till the breakage of session.
2. When the session is again created from the beginning, it gives the error screen
e.g FR33, FR35 etc for the already created data.
3. Therefore you have to exclude the already created data/input (released) and
then run the session.

You can use FR05 standard screen to see that the system has actually released
the budget for the executed data before the breakage of session.

4.6 Budget Release Reports - FD/EDO Budget Release Information
System:

The budget release information system provides the top management various
display of budget releases. It also operates to view budget releases in many
customized manner.
Process Steps:
d) Access the Budget Release screen by using:
73

Menu Path in YPMAIN Budget Release System Reports Budget
Release Information System
Transaction Code YPBUDREL
The following screen will appear.
74

* Fields are mandatory. All other fields are optional.
e) After entering data press F8 or to execute the transaction.
Fields Description
Year* Enter the year
Status* Enter status of posted budget i.e P
Budget Type* Enter budget type (1 to 6)
Fund* Enter a fund code
75

Part (A) of screen below
Part (B) of screen: By dragging the horizontal scroll bar from left to right.

Conclusion
You can view various customized reports by using budget information system
successfully.

4.7 Budget Release Reports Quarter Wise:
The budget release can be viewed quarter wise. It provides a detailed report of
budget releases made during different quarters of a budget year.
Process Steps:
Access the Budget Release screen by using:
Menu Path in YPMAIN Budget Release System Reports Quarter Wise
76

Transaction Code YPFDREL_02
77

Fields are mandatory.
Conclusion
You can view quarter wise budget releases successfully.

Budget Release Reports FD/EDO Total Releases:
The budget releases of an organization during the budget year can be viewed
and a record can be kept to keep track changes accordingly.
Process Steps:
Access the Budget Release screen by using:
Menu Path in YPMAIN Budget Release System Reports Total
Releases
Transaction Code YPFDREL_01
Fields Description
Fund* Enter a fund
Budget Year* Enter the year
Starting Page No Enter starting page number
78

79

Fields Description
Fund* 7 characters field to enter a fund
Budget Year* 4 characters field to enter the year
Starting Page No Enter starting page number
District Code* Enter a district code
Reference Enter the reference of the letter by which the release is
authorized.
* Fields are mandatory.
Conclusion
You can view total releases successfully.

80

5 CHAPTER NO 5
STRUCTURE OF DEPARTMENTS.

81

5.1 Department Hierarchy

5.2 Number of Employees
There are total of 52 employees in the Department of Finance & Planning while 30
are in the Department of Finance & Budget.

82

5.3 Organ gram Of Offices Under Edo (F&P)

Executive District Officer (Finance & Planning) BS-19
District Officer
(E & IP) BS-18
ADO = 1
BS-16
Assistant = 1
BS-11
Assistant
Industrial
Development
Officer = 1
BS-11
Stenographer = 1
BS-12
Stat. Assistant = 1
BS-11
S / C J/C = 6
BS-07/05
N Q = 2
BS-01
Driver = 1
BS-04
Chowkidar = 1
BS-01
Sweeper = 1
BS-01
District Officer (P)
BS-18
DDO (P) = 1
BS-17
Superintendent = 1
BS-16
DDO (Tech.) = 1
BS-17
Stenographer = 2
BS-12
Sub-Engineer = 1
BS-11
Assistant = 1
BS-11
J / C = 1
BS-05
N Q = 3
BS-01
Driver = 1
BS-04
Chowkidar = 1
BS-01
Sweeper = 1
BS-01
District Officer
(F&B) BS-18
DDO (B) = 1
BS-17
Stenographer = 3
BS-12
DDO (Exp.) = 1
BS-17
Assistant = 2
BS-11
Driver = 1
BS-4
District Officer
(Accounts) BS-18
DDO (Monitoring /
Regulation) = 1
BS-17
Stenographer = 2
BS-12
Assistant = 1
BS-11
Driver = 1
BS-04
N Q = 3
BS-01
Personal Asst. = 1
BS-15
Computer Operator =
1
BS-12
S/C &J/C = 4
BS-9/7
Daftari = 1
BS-2
Personal Asst. = 1
BS-15
Computer Operator = 1
BS-12
S/C &J/C = 3
BS-9/7
P.A. = 1
BS-16
Assistant=1
BS-11
Comp. Opt./
Stenographer=
1 BS-12
J.C=1
BS-05
Storekeeper=1
BS-05
Driver=1
BS-04
Naib Qasid =1
BS-01
Bill Messenger
(BS-01)
Chowkidar=1
(BS-01)
Sweeper=1
(BS-01)
83

5.4 Main Functions of E.D.O (F&P)
To ensure that the business of group of offices under his administrative control is
carried out in accordance with law and the rules.
To co-ordinate and supervise the activities of the offices and ensure efficient
service delivery by the functionaries.
To prepare development plans and proposed budgetary allocations for their
execution.
To implement approved plan and policies.
To prepare proposals for expenditure necessary for the proper conduct programs,
projects, services, and other activities.
To act as Departmental Accounting Officer for his respective group of offices.
5.5 Finance & Budget & Accounts Wing
Preparation & release of District Budget.
Processing & approval of re-appropriation, supplementary grants.
Examination of schemes of new expenditure.
Issuance of final sanctions in accordance with the Delegation of Financial Power
Rules.
Examination & advice on financial maters.
Monitoring the Ways & Means positions / account of District with SBP liaison
with Pakistan Audit Department.
Creation / up gradation of posts with the approval of Finance Department.
Implementation of pay / pension policy / rules.
Purchase of store & capital goods for District Government
5.6 Planning & Development Wing
Preparation of Annual Development programs.
ii). Approval of Developments Schemes up to Rs.50.00 (M) through District
Development Committee Composition of DDC is as under -
1. DCO Chairman
2. EDO (F&P) Member.
3. EDO (W&S) Member.
84

4. EDO (Concerned Department) Member.
5. DO (Concerned) Member.
6. DO (P) Member/ Secretary
Coordination with the District Government offices & with Provincial Government
on policy issues.
Monitoring of developments schemes through holding meetings of review
progress of implementation of Development schemes with the District
Government quarterly or by month & site visit of schemes.
Processing of re-appropriation proposals of development schemes.
Processing of lower tier cases for grant of funds for their development schemes.
Approval of Tamir-e-Punjab & Tamir-e-Pakistan schemes through DDCs.
Submission of monthly progress reports of development schemes to P&D
Department.
5.7 Enterprise & Investment Promotion
Registration of Societies under Societies registration act 1860 under the control
of EDO (F&P)/ Registrar Joint Stock company.
Collection of Industrial Data of Chiniot District for pre-investment study and
Industrial Directory.
Registration of Firms under Partnership act.
Submission of reports to the Punjab Government regarding daily prevailing
prices.
Liaison with Chambers of Commerce and Industry and feedback to Provincial
Government.
Locations Clearance Certificate for Establishment of Industrial Units.
Development of Industrial Estates.

85

DISTRICT BUDGET (2013-14)

SUMMARY OF ESTIMATES OF RECEIPTS (2013-14)
DISTRICT CHINIOT

(Rs.in Millions)
Sr.No. Description
Estimates
(2013-14)
1 2 3
1 Opening Cash Balance as on 01-07-2013 366.995
2 Local Incomes/Receipts 16.692
3 PFC Share District Chiniot (2013-14) * 2560.234
Resources Available 2943.921
* Current = Rs. 2463.211 Millions + Development = Rs. 97.023 Millions

86

ESTIMATES OF LOCAL RECEIPTS (2013-14)
DISTRICT GOVERNMENT CHINIOT

(Rs. in
Millions)
S
r.
N
o.
Description Source
Budget
Estimates
(2012-13)
Revised
Estimates
(2012-13)
Actuals
(2012-13)
Budget
Estimates
(2013-14)
1 2 3 4 5 6 7
1 Zila Council
License Fee, Ferries Fee,
Rents of properties, Shop,
land etc.
5.900 5.000 4.595 6.180
2 Health
Parchi Fee of DHQ, THQ's,
RHC's, BHU's, MCH's,
Ambulance Charges,
Canteen and recovery of
Payments etc.
3.000 4.115 4.162 3.507
3 Agriculture
Parchi Fee of Veterinary
Hospital, Rent of Laser land
leveling, Auction of Trees,
Sale of Nursery Stock,
Compensation of Damage
of trees and NOC fee for
Petrol Pump.
3.700 2.775 0.875 3.190
4
Works &
Services
Income from tender fee
Enlistment / renewal fee of
and other Misc fees of W&S
Department
3.500 3.245 3.223 3.815
Total 16.100 15.135 12.855 16.692

87

DISTRICT BUDGET (2013-14)
SUMMARY OF ESTIMATES OF EXPENDITURE (2013-14)
DISTRICT CHINIOT

(Rs. in
Millions)

Sr.No. Description
Estimates
(2012-13)
Revised
Estimates
(2012-13)
Expenditure
(2012-13)
Allocation
(2013-14)
1 2 3 4 5 6
A. Current 2360.499 2331.799 2274.32 2664.142
B. Development 72.714 72.714 62.748 40.375
C.
Tied / Purpose
Specific Grants
259.866 259.866 162.805 97.061
D. 5% Closing Balance as per Budget Rule. 142.343
G.Total (A+B+C+D) 2693.079 2664.379 2499.873 2943.921

88

6 CHAPTER NO 6
SOWT ANALYSIS
89

6.1 Strength
Have authority to issue domicile to general public
No competitor
Manage overall district
Perform Encroachment
Issue all Government funds for construction.
Issue weapon license and Receive renewal fee
Authority to control prices of consumer products
Authority to seal theft of Natural Recourses.
Manage funds and donation in case of Natural Disasters.
Held a public court to resolve public disputes related to Land, Water and Legal
Paper (Stamp Paper) Issues.
Have Authority to seal illegal Businesses
Can impose fines in case of voiding any rule and regulation.
6.2 Opportunities
Strict and solid rules and regulation related to legal documentation and avoid
disputes of selling and purchasing through Stamp Paper.
Can control and pull out roots of corruption by strict supervision, check and
balance over all federal bodies.
Decoration and improve infrastructure could make city more beautiful.
Lot of improvement is required in health and safety department.
Educational department could be more functional and enhanced
Agricultural sector can be made more productive.
Water and Drainage system can be mold in order to avoid flood disasters
Community and development department is far behind many improvements could
be conducted in this department.
Tax imposing and collecting process can be made more solid.

90

6.3 Weakness
Decentralized decision making process
Low salaries.
Lack of motivation.
Week collaboration between higher and lower management.
Shortage of Staff.
Low Professional Knowledge.
Needs capacity building of staff.
Shortage professional/Technical staff.
Provision of service facilities in the negative areas by WAPDA, SNGPL & TMA,s
without the approval of E&IP Department.
Shortage of Funds.
Shortage of Qualified staff in Education Department.
Improvement of Sewerage & Drainage system.
Awareness of People.
Mega Projects.
Improvement of Water & Sanitation System.
Improvement of Road Infrastructure.
Inappropriate use of Funds in various Schemes.
Delayed approval of Funds.
Inappropriate check & balance of various issues.
Technological Backwardness in Offices.
One Window Operation for General Public.
6.4 Threat
Backwardness of technology can be proved as major hurdle in efficiency and
effectiveness of whole department.
Week check and balance leads towards corruption which cause huge damage to
state as well as public.
Decentralized decision making cause lack of motivation in employees.

91

7 CHAPTER NO 7
RECOMMENDATION

92

7.1 Recommendation
Internees play very vital role in the improvement of office working and for the
continuation of this improvement the permanent job status should be given to
Internees.
A monitoring team/committee should be established to evaluate, examine and
ensure the individual performance/progress of the Internees working in different
departments. After evaluation a summary/report should be prepared, which
contains the names of those Internees who successfully completes their
assignments and are working in the good benefit/profit of their Departments.
This summary should send to S&GAD with a suggestion or proposal to adjust
them to fill out the vacant posts in their respective departments, at least
enlargement of their internship period or hiring them on contract basis.
Proper training should be given to all the employees (specially technical and
managerial staff) for the purpose of improving office working quality, output and
efficiency.
Human Resource and I.T departments should play their respective roles for
improvement.
The Officers should motivate other Staff for the enhancement of their working
output and quality.
The Office record should be maintained in the Computer as well for the sharpness
of office working.
Technological advancement needed in Offices .i.e. Introduction and use of I.T
tools in Offices.
Proper check and balance of all the Issues.
Funds should be provided in time.
More Funds should be required for Development sector to improve Infrastructure.
Special attention is needed to standardize three major departments; Health,
Education and Solid Waste for the purpose of giving relief and ease to General
Public
More and more data should be computerized in order to increase the efficiency of
work. Specially, the dairy system should be computerized so that, the people
93

could easily trace out their cases without facing problem of being travel behind
their files. .

94

Reference

The Local Government Rules 2001 book is used as helping material in this internship
http://punjab.gov.pk]
http://www.punjab.gov.pk/?q=taxonomy/term/40&page=1
http://www.papersblog.com/tag/dco-office-chiniot-jobs-2014
http://wikimapia.org/12503603/DCO-OFFICE-OF-DISTRICT-CHINIOT

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