Finance Depatment Notifications-2002 (55-164)

Compendium of Instructions for Local Governments
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(a)
Time limits as already fixed for the disposal of cases pertaining to pay and allowances bills, contingent bills, G.P. Fund and Pension, cases may be observed meticulously. Authorization of refunds, cheques (PLAs/PWD) be done within the specific time limit prescribed for the purpose under the rules/instructions. The payment of pension and other claims to the senior citizens and families should be given top priority, through personal attention of the concerned DAOs. Stamp papers be issued to the general public from the double locks in the prescribed manner on daily basis, strictly observing rules and regulations on the subject. Functions, procedures and targets of all sections be conspicuously displayed, which should also depict the time period fixed for disposal of such cases. All office buildings and premises should be properly guarded and kept in proper shape and in immaculately clean conditions. The officer incharge shall be held responsible in case any laxity is shown in compliance to the aforementioned directions.
(b) (c)
(d)
(e) (f) (g)
4. You are advised to send a compliance report on implementation of Governors directive within a week positively for onward submission to the Governors Secretariat. ----------No. IT(FD)3-7/2001 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 3rd January, 2002 Subject: Sir, I am directed to refer to the subject cited above, and to enclose a copy of the instruction formulated by the Accountant General, Punjab for information and necessary action. MEASURES FOR TIMELY DISPOSAL OF CLAIMS OF GOVERNMENT SERVANTS I conveyed my keen interest regarding improvement of efficiency ensuring prompt disposal claims of government Servants, and emphasized upon quick disposal of pension and G.P. Fund final payment cases. The following instructions have already been issued and system has been redesigned in Accountant General Office and its District Accounts Offices to ensure speedy disposal of the claims and cases. MEASURES FOR TIMELY GOVERNMENT SERVANTS DISPOSAL OF CLAIMS OF
56
Finance Department
Late Payment of Salary Claims It has been experienced that the Salary of the Government servants, which ought to the disbursed on the 1st of the following month is very oftenly disbursed to them very late even upto the 15th of the following month. The issue has been examined and observed that the departments are in the practice of sending their salary claims to Accountant General / District Accounts Offices one week before the close of the month and the salary bills of the elementary education department should reach Accountant General Office / District Accounts Offices at least 10 days before the close of the month to enable us to process them and arrange payment on the 1st of the following month. All the Departments/DDOs are requested to follow the above mentioned schedule in the best interest of their staff and removing their undue anxiety. Late Disposal of Pension Cases It has been observed that pension cases of the government servants are received in AG / District Accounts Offices very late even years after their death or retirement. Attention of all the authorities in the Punjab is invited to para (1) of F.D Circular letter No.FD-SR-III-41/77 dated 14-04-1977, which provides that the pension sanctioning authorities are required to submit pension cases complete in all respect to Audit Office six months before the actual date of retirement without fail. Presently pension cases are being presented in Audit Office very late even after retirement of the government servant as a matter of routine and oftenly incomplete. According to Rule 6.1 to 6.4 of Liberalized Pension Rules, the Pension Sanctioning Authorities (PSAs) are required to sanction anticipatory pension in case pension papers are not verified by Audit Office one month before the date of retirement. To achieve the target of issuance of PPOs before the date of retirement, it is requested that a list of Government Officers / Officials who have been retired before 1-12002 but their pension cases have not yet been finalized, may please be sent to this office by the 10th of this month in the format given below to enable my office to ensure their prompt disposal. Personal No. Computer No. / Name of Govt. Servant 1 Date of No. & Date Present Remarks proceeding on through which Position of the retirement case was sent to case (if Audit Office known) 2 3 4 5
It is further requested that the G.P. Fund final payment cases may please be sent to AG / District Accounts Offices three (3) months before reaching superannuation/ retirement of a government servant. Late Disposal of G.P. Fund Cases It has also been observed that final payment cases of G.P. Fund of retired / died Government Officers / Officials are received in Accountant General Office / District Accounts Offices very late though the procedure prescribed therefore is very simple and short. The late payment of G.P. Fund emoluments causes unwarranted hardships to the retired Government Servants or the family of the deceased. To overcome these problems,
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it is requested that particulars of the officers / officials proceeded on retirement before 01-01-2002 and their cases have not yet been finalized may be sent to this office by the 10th of this month in the following format to enable my office to ensure their prompt disposal. Personal No. Computer No. / Name of Government Servant 1 Date of Retirement 2 No. & Date through Present. Remarks which case was sent Position of to audit office the case 3 4 5
It is further requested that the G.P. Fund final payment cases may please be sent to AG/District Accounts Offices three (3) months before reaching superannuation / retirement of a government servant. ---------No. IT(FD)3-4/2001 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 10th January, 2002 Subject: FINANCIAL GUIDELINES FOR THE DISTRICT GOVERNMENTS
The establishment of District / Tehsil / Town Provincial Accounts, passing of budgets by the respective District Governments and implementation of monthly cash transfer mechanism has effectively led to operationalization of the financial system prescribed under the Punjab Local Government Ordinance 2001 and rules / instructions on the subject. Various interim measures allowed by the Finance Department from time to time would accordingly be withdrawn gradually. 2. In order to facilitate the implementation of the system in the prescribed manner, and after taking into consideration the practical aspects regarding various steps required of the respective functionaries of the district governments, Finance Department has formulated financial guidelines for the District Governments, in consultation with the Accountant General Punjab, (copy enclosed). The specimen of draft orders/sanctions required to be issued by the DCO and other functionaries are also annexed for guidance and uniformity. 3. While efforts have been made to cover the entire spectrum of functions and financial activity of the district governments, the guidelines may not be exhaustive, as certain aspects may still require clarification/elaboration, as fresh problems are identified by the district governments. 4. Nevertheless, it is expected that the District Governments would be better poised in managing their financial affairs. Meanwhile, the FD would endeavour to address all issues relating to finance, budget and accounting, as and when referred to by the District Governments. ---------FINANCIAL GUIDELINES FOR THE DISTRICT GOVERNMENTS
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Finance Department
With the promulgation of the Punjab Local Government Ordinance, 2001, the provisions contained in Chapter XII Local Government Finance have become operational with effect from 14th August, 2001 requiring certain changes in the budgetary and accounting mechanism from that prevalent in the pre-devolution period. 2. The financial year 2001-2002, therefore, ought to be compartmentalized into three distinct periods: (i) From 1st July, 2001 to 13th August, 2001: This was the normal pre-devolution period. The provincial budget in this period was operated in the usual manner as before, with the only condition that the provincial departments and their lower formations, which were to be devolved to the districts were to incur expenditure for this period on proportionate/pro-rata basis, computed on the basis of the entire financial year. The accounting for this expenditure was to be done in the existing form and manner, and reporting done as per previous procedure. Such expenditures were debitable to the Provincial Account No. I. From 14th August, 2001 to 31st October, 2001: The second period, denotes the beginning of the devolution period. With the establishment of district governments, the provisions relating to Finance, Budget and Accounting as envisaged in Chapter XII of the Punjab Local Government Ordinance, 2001 (PLGO) were put into operation. However, as the district governments had yet to formulate their budgets, as envisaged in Section 111 of the Ordinance, the district governments were required to: (a) operate budgetary and accounting mechanism on the basis of budgetary authorizations as reflected in the District Budgets formulated by the Finance Department. incur expenditures out of their budgets on pro-rata basis, for each grant, worked out on the basis of the entire financial year 2001-2002.
(ii)
(b)
Since, separate accounts (Account-IV) for the district governments were established by the end of October 2001, expenditures of the district governments were temporarily debitable to Provincial A/c No. I. However, the Accountant General, Punjab (A.G.)/District Accounts Officers (DAOs) were required to keep a segregated account of expenditure relating to Provincial Government departments and those of the District Government (devolved departments) by sending separate drawing schedules to the banks. Likewise, the banks were to send separate debit scrolls for the payments authorized for provincial and district government departments. With this exercise in place, the A G (Punjab) is in a position to give segregated accounting details for the expenditure incurred out of provincial account No.I during the period 14th August, 2001 to 31st October, 2001 for the provincial and the district governments. Another position which emerged is with regard to the financial operations of departments which (i) already existed in the districts, and were devolved and (ii) those offices, which existed at district levels but were restructured or wound up in the devolved set ups. The first category of offices did not face any discontinuity in their financial activity in the new set up. However, the restructured/devolved departments had to
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realign their financial systems in the new set up. The financial liabilities of such departments falling in category (ii) for the pre-devolution period shall be borne by the provincial government, after such claims are scrutinized and authenticated by the respective administrative departments. Finance Department would accordingly provide requisite budgetary cover, where necessary. As regards departments which have continued in the new district set up, they would have to own their liabilities, and meet them from their existing budgets. (iii) From 1st November, 2001 to 30th June, 2002: After decision by the Ministry of Finance (MOF) / National Reconstruction Bureau (NRB) as to the mode of financial transfers to the district governments, the Finance Department established the District Provincial Accounts for every District Government, a Tehsil Provincial Account for every Tehsil Municipal Administration and a Town Provincial Account for every Town Municipal Administration, in terms of Section 107(1)(b), (c) and (d) of the PLG Ordinance, 2001. In effect separate Account No. for each District Government, Tehsil Municipal Administration and Town Municipal Administration was opened with a distinct Sub-No allotted by the State Bank of Pakistan (SBP)/National Bank of Pakistan (NBP), for the District Governments, and Tehsil/Town Municipal Administrations, respectively. It was also decided by the MOF and the NRB in consultation with the provincial governments and the State Bank of Pakistan that CASH BALANCES in account No.IV of the District / Tehsil / Town Provincial Accounts shall remain part of the Provincial Consolidated Fund (Account No.1), and that the composite cash balance of the said two accounts shall be considered as the aggregate cash balance of the province. 3. With the above arrangements in place the Finance Department authorized the; (a) b) establishment of District Provincial Accounts vide No. IT(FD)3-4/ 2001 dated 23rd October, 2001. establishment of Tehsil/Town Provincial Accounts vide No. IT(FD) 3-4/2001 dated 31st October, 2001.
4. Meanwhile, the Controller General of Accounts (CGA) circulated guidelines for opening, maintaining and transfer of funds to the bank accounts of District Governments, Tehsil and Town Municipal Administrations. Besides, the guidelines also prescribed the maintenance and reconciliation of accounts of these governments by the District Accounts Officers/Treasury Officers (T.O.). In order to cater for subsequent accounting requirements, the CGA has circulated amendments in the guidelines vide No. 122/116CGA/DISTT-GOVT/2001 dated 19.11.2001. The Finance Department has circulated these amendments vide No. IT(FD)3-4/2001 dated 1st December, 2001. TRANSFER MECHANISM 5. In accordance with the provisions contained in Section 107(3)(1), of PLG Ordinance, 2001, the Provincial Government is required to transfer from the Provincial Consolidated Fund by monthly instalments, moneys budgeted for the offices and functions decentralized to district government, for credit to the District Provincial
60
Finance Department
Accounts (Account No.IV). This does not include establishment costs of employees of the Government Offices decentralized to District Governments. 6. The cash transfers shall be authorized by the Finance Department for a month, on the first of the month for each district separately, consisting of the following components, for credit to the respective Sub No: in Account No. IV. (a) (b) (c) (d) (e) (f) Non-salary budget Annual Development Programme (ADP) Khushhal Pakistan Programme (KPP) Octroi Grant Zila Grant/Goods Exit Tax (G.E.T.) Urban Immoveable Property Tax Share (UIP)
7. The cash transfers pertaining to components listed at a, b and c above shall be available for utilization by the District Governments in accordance with the budgetary allocations, depicted in the district budgets. The unspent cash balance available in the respective District Provincial Account on the last day of the month shall constitute the opening balance, and would be added to the cash transfers of the next month, as afore stated, for the purpose of utilization in the said manner during the month. 8. The expenditure out of the cash transfers may only be incurred by the District Governments in accordance with their approved budgets and be strictly restricted to the respective budgetary appropriations, of each department proportionately allocated for the month under various grants/objects. 9. ACTIONS TO BE TAKEN BY THE DISTRICT GOVERNMENTS (i) Immediately on receipt of the monthly instalment of cash transfer from the Finance Department, the D.C.O. shall compute his cash balance pertaining to non-salary component available for the month. It shall comprise the cash transfer for the month received from the Finance Department for the nonsalary component. He shall accordingly notify each Executive District Officer, (E.D.O.) the proportionate share of cash balance vis--vis the prorata budgetary allocation for that month (Annex-I). This position would also be intimated to the DAO concerned. The EDOs shall in turn ensure to confine their expenditures within the budgetary allocation of the respective grant. All funds sanctioned by Finance Department through supplementary grants shall also be made available to District Governments in cash for credit and utilization through Account No.IV. (ii) As regards ADP funds, the DCO shall intimate the concerned EDOs in the same manner as for Sr. No. (i) above the cash balance available during the month, for incurrence of expenditure vis--vis the pro-rata budgetary resource releases under this head. This position would also be intimated to the respective DAO/AG/TO.
(iii) Regarding KPP, the DCO would make budgetary releases, after approval of the schemes, and also intimate monthly availability of cash to the respective executing agencies (Annex-II).
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(iv)
The DCO will also ensure the transfer of proportionate cash balance pertaining to the Public Health Engineering, Housing and Physical Planning and Local Government departments devolved to the Tehsil Municipal Administration for credit to Tehsil Provincial Accounts as required under Section 107(3)(b) of the Punjab Local Government, Ordinance, 2001. The requirements of Section 109 ibid shall also be kept in view. The DCO shall issue an advice to the local State Bank of Pakistan/National Bank of Pakistan branch of the concerned district on the third day of each month to transfer the proportionate amount for credit to Tehsil Provincial Account by debit to District Provincial Account (Annex-III). The transfer of Octroi Grant/UIP Tax Share to Local Fund Accounts of the Tehsil /Town Municipal Administration (T.M.A.)shall be done by the DCO, through sanctions (Annex-IV&V), requiring the TMA to draw the respective shares / allocation through their bank maintaining the Local Fund of the TMA, from the concerned DAO on Simple Receipt Form (Annex-VI). The position as clarified by Finance Department vide letter No. IT (FD) 3-4/2001, dated 29-12-2001 shall be kept in view (Annex-VII). The aforementioned procedure in para-9(v) above shall mutatis mutandis apply to the transfer of Zila Tax to the Local Fund Account of the Union Administrations.
(v)
(vi)
10.
ACTIONS TO BE TAKEN BY THE TEHSIL/TOWN MUNICIPAL OFFICERS (i) Tehsil / Town Provincial Account: On receipt of an advice from the DCO {as envisaged in para 9(iv) above} regarding the transfer of funds (non-salary, ADP/KPP etc) from the District Provincial Account to Tehsil/Town Provincial Accounts, the Tehsil/Town Municipal Officer (TMO) shall make arrangements for the distribution of budgetary allocation to the respective Tehsil/Town Officers according to the proportionate share of cash balance, vis--vis the pro-rata budgetary allocation for the month, under intimation to the District Accounts Officer concerned (Annex-VIII). The Tehsil/Town Officers shall ensure to confine their respective expenditures within the budget/resource availability. Octroi/UIP Tax Share The Tehsil/Town Municipal Officers shall proceed in the manner prescribed in para 9(v) above and ensure credit to the bank account as stated. ACTION BY THE UNION NAZIM
(ii)
11.
The procedure as prescribed in para 9(v) above shall mutatis mutandis apply to receipt of grant by the Union Administration in respect of Goods Exit Tax. FUNCTIONING OF FOREST AND WORKS DEPARTMENT IN THE DISTRICT SETUP
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Finance Department
12. The Forest and the Public Works Departments are peculiar in that they have the status of self-accounting entities. They have departmentalized accounts, in accordance with a separate system prescribed by the Auditor General of Pakistan. All payments of such departments are authorized through cheques specifically prescribed for these departments. 13. These two departments have not been devolved to the District Governments in their entirety as some functions have been retained at the provincial level, while others have been devolved to the District Governments. This position has affected the self-accounting status of these departments in respect of the offices, the functions whereof have been devolved to the district. 14. Consequently, the existing set up for undertaking pre-audit and accounting functions of these offices have ceased to be operational, while no alternate accounting mechanism has meanwhile been prescribed. Given the fact that the Works and Forest accounts are specialized functions, the DAOs who are envisaged to operate such functions are not in a position to take up this work unless an accounting unit is established in the DAOs from the persons drawn from the accounting set ups of the erstwhile Forest and Works departments. 15. Therefore, till such time that the Controller General of Accounts prescribes an alternate system, it is necessary that the existing accounting status of the Forest and the Works Departments is kept intact i.e., the pre-audit and accounting work is done by their respective accounting entities as hitherto-fore, and payments are made by their accounting units through cheques. The Accountant General, Punjab has accordingly issued instructions to this effect. ---------Annex-I From The District Coordination Officer ___________________________ To The Executive District Officer ________________________ Memo. No._________ Subject: BUDGETARY MONTH OF ALLOCATION Dated: __________ (CASH TRANSFERS) FOR THE
Finance Department has transferred a sum of Rs._________ (Rupees _____________________________) as cash transfer for the non-salary component for District ____________ for the month of _____________. 2. In accordance with the pro-rata budgetary appropriation available to the district during the month i.e., Rs. _________________________, the available cash transfers show an aggregate shortfall of (percentage) _________ vis--vis the approved budget.
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3. Therefore, a uniform cut of _______% may be applied to all grants/functions for the purpose of incurrence of expenditure on non-salary component (commodities & services) during the month of ______________. DISTRICT COORDINATION OFFICER ____________________________ No. & Date Even: 1. 2. 3. 4. A copy is forwarded for information and necessary action to: The Accountant General, PUNJAB Lahore. The Secretary, Government of the Punjab LG&RD Department, Lahore. The Deputy Secretary (Budget), Finance Department, Lahore. The District Accounts Officer______________. DISTRICT COORDINATION OFFICER _____________________ ---------Annex-II From The District Coordination Officer ___________________________ To The Executive District Officer ________________________ Memo. No. ____________ Subject: RELEASE OF PROGRAMME. FUNDS REGARDING Dated: ___________ KHUSHHAL PAKISTAN
It is to intimate that the District Development Committee has approved the following scheme(s) at the cost indicated against each for execution during the current financial year 2001-2002 in district____________: 1. 2. 3. _____________________________________ _____________________________________ _____________________________________
2. A sum of Rs.__________ (Rupees _____________________) are hereby placed at your disposal for the execution of schemes, as mentioned above. The expenditure involved will be debitable to Grant No. 36-Development, 50000-Economic Services, 56000-Rural Development, 56200-Rural Works Programme/IRUDP during the year 2001-2002.
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Finance Department
DISTRICT COORDINATION OFFICER __________________________ No. & Date Even: A copy is forwarded for information and necessary action to: 1. The Accountant General, PUNJAB Lahore. 2. The Director General, Accounts Works, Lahore 3. The Director General, Audit Works, Lahore. 4. The Deputy Secretary (Budget), Finance Department, Lahore. 5. The District Accounts Officer______________. DISTRICT COORDINATION OFFICER _____________________________ No. & Date Even: A copy is forwarded for information to: 1. The Chairman, P&D Board Punjab, Lahore. 2. The Secretary, Govt. of the Punjab, LG&RD Deptt: Lahore. DISTRICT COORDINATION OFFICER ______________________________ ---------Annex-III DISTRICT GOVERNMENT _____________________ To The Chief Manager, State Bank of Pakistan, or Manager, National Bank of Pakistan, (Name of city) Subject: RELEASE OF FUNDS TO THE TEHSIL MUNICIPAL ADMINISTRATION(S) FOR THE MONTH OF 2002 Dear Sir, In pursuance of Finance Departments release order vide letter No. _____________ dated ____________ allowing cash transfers for the month of ______, you are advised to credit Tehsil Provincial Accounts with a sum of Rs._______ million (Rupees ___________________ million) in respect of Public Health Engineering, Housing & Physical Planning and Local Government departments to Tehsil/Town Municipal Administration, per contra debit to the District Provincial Account No. ________ of District ________ as per following detail. The amount is adjustable in the accounts for 2001-02:-
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Sr. #
Name of TMA
A/C No.
Non-Salary
KPP
ADP
Others
Total
Total: 2. I am to request that necessary action may be taken under intimation to all concerned/Offices. Yours sincerely, District Coordination Officer ______________________ No. & Date Even: A copy is forwarded for information and necessary action to: (i) The Accountant General, Punjab, Lahore. (ii) The District Accounts Officer, ______. The amount of Rs._____ may be booked under the following heads of account during the financial year 20012002. ACCOUNTING BY BOOK ADJUSTMENT DR. 8309000-Funds remitted to Tehsil/Town Municipal Administration Rs.______ million CR. 9201000-State Bank Deposits (District Provincial Account IV). Rs._______ million
District Coordination Officer ________________________ No. & Date Even: A copy is forwarded for information and necessary action to: (i) The Chairman, National Reconstruction Bureau, Chief Executives Secretariat, Islamabad. (ii) State Bank of Pakistan / National Bank of Pakistan, Head Office, Karachi. (iii) The Secretary, Government of the Punjab Finance Department, Lahore. (iv) The Secretary, Government of the Punjab LG&RD Department, Lahore. (v) Tehsil Municipal Officer, _________. The department-wise breakup is being intimated separately. District Coordination Officer _______________________ ---------Annex-IV DISTRICT GOVERNMENT _____________________
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Finance Department
No. ______________ In pursuance of Finance Departments letter No.________ dated ______________ sanction is hereby accorded to the release of Octroi grant to the Tehsil / Town Municipal Administration(s) as per following detail. Sr. No. Name of T M A Amount of Octroi grant
Total 2. The expenditure involved shall be debitable to the grant No.31-Misc., 6-70000Debt servicing, investible funds and grants, 6-74000-Grant, and subventions, 6-74200grants to local bodies _______ 60000 Transfer Payments, 64000- Grants, 64200- Octroi / Zila Tax grants to local bodies during the year 2001-02. District Coordination Officer _________________________ No. & Date Even: A copy is forwarded for information and necessary action to: (i) The Secretary, Government of the Punjab, LG&RD Department, Lahore. (ii) The Secretary, Government of the Punjab Finance Department, Lahore. (iii) Accountant General Punjab, Lahore. (iv) The District Accounts Officer ___________ (v) The Tehsil / Town Municipal Officer ____________ District Coordination Officer ______________________________ ---------Annex-V DISTRICT GOVERNMENT __________________ No. ______________ In pursuance of Finance Departments letter No. ________ dated _________, sanction is hereby accorded to the release of Urban Immoveable Property Tax share to the Tehsil Municipal Administration(s) as per following detail: Sr. No. Name of TMA UIP Tax Share Total
TOTAL 2. The expenditure involved shall be debited by minus credit to the Head 0000000Tax-Revenue-0122000-Immovable property Tax (Urban share of net proceeds assigned to Corporations/Municipalities, 0122900-Deduct share of net proceeds assigned to Corporations/Municipalities etc. for the year 2001-2002.
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District Coordination Officer __________________________ No. & Date Even A copy is forwarded for information and necessary action to: (i) The Secretary, Government of the Punjab, LG&RD Department, Lahore. (ii) The Secretary, Government of the Punjab, Finance Department, Lahore. (iii) Accountant General Punjab, Lahore. (iv) The District Accounts Officer _____________. (v) The Tehsil Municipal Officer, _____________. District Coordination Officer ____________________ ---------Annex-VI A.T. No. 319
VOUCHER NO. ____________

_____________ Treasury. Month of ______________ 200 . __________________________________________________________________ Head of service chargeable ____________________________________________ __________________________________________________________________ __________________________________________________________________ Received this __________ day of _________ the sum of Rupees _____________ Being the amount due to me for ________________________________________ __________________________________________________________________ Examined and approved for payment for Rs. (words) ________ _______________ Accountant Treasury Officer/ DAO/ AO Rs. _________ __________________ Claimants Signature Admitted: Objected to: Auditor Asstt. Supdt. Supdt. ---------Annex-VII No. IT(FD)3-4/2001 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT
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Finance Department
Dated Lahore, the 29th December, 2001 To All the District Accounts Officers, In the Punjab. Subject: TRANSFER OF FUNDS PERTAINING TO OCTROI, GOODS EXIT TAX (ZILA TAX) AND SHARE OF URBAN IMMOVEABLE PROPERTY TAX Kindly refer to the subject cited above. 2. Feedback received by the Finance Department from the District Governments, reveals a lack of clarity at the latter level regarding the mechanism to be adopted for the transfer of funds by District Governments on account of GST in lieu of Octroi & Goods Exit Tax and on account of UIP Tax share. 3. According to the provision of Section 109(2) of the Punjab Local Government Ordinance, 2001, the funds released by the Finance Department to the District Governments on account of Octroi grant are to be transferred by the DCOs to the Local Fund of respective Tehsil Municipal Administration, or the Town Municipal Administration as the case be. 4. Likewise, according to Section 109(4) ibid, the funds released by Finance Department on account of Goods Exit Tax (Zila Tax) are to be transferred by the DCOs to each Union Administration for credit to the Union Local Fund. Also, the respective shares of UIP Tax, shall be transferred by DCOs for credited to the Local Fund of the Tehsil/Town/Union Administration. 5. It is clarified that all the three transfers as aforestated, are ultimately creditable to the respective Local Fund and NOT, repeat NOT to Tehsil/Town Provincial Accounts etc. You are, accordingly directed to ensure that while authorizing such transfers, through simple receipt forms, the pay orders should clearly denote that the payments are creditable to the payees account operated for maintaining Local Funds of the respective Tehsil/Town Municipal/Union Administration, as the case be. CHIEF INSPECTOR OF TREASURIES No. & Date Even. A copy is forwarded for information and necessary action to: 1. Mr. Daniyal Aziz, Consultant National Reconstruction Bureau, Chief Executive Secretariat, Islamabad. 2. The Secretary to Government of the PUNJAB Local Govt. and Rural Development Department, Lahore. 3. All the District Nazims in the Punjab. 4. All the District Coordination Officers in the Punjab. 5. All the Executive District Officers (Finance) in the Punjab.
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CHIEF INSPECTOR OF TREASURIES No. & Date Even. A copy is forwarded for information and necessary action the Accountant General, Punjab, Lahore. CHIEF INSPECTOR OF TREASURIES ---------ANNEX-VIII From *Tehsil/Town Municipal Officer, __________________________ To *The Tehsil /Town Officer, ________________________ Memo. No._________ Subject: BUDGETARY ALLOCATION MONTH OF --------------- 2002 Dated: _____________ (CASH TRANSFERS) FOR THE
The District Coordination Officer___________ has transferred in cash Rs.______ (Rupees ________) and Rs_______ (Rupees ________) ..as current Non-Salary, Development/KPP/Devolution cost respectively for the month of _____________ as Non Salary component in the Tehsil/Town Municipal Account. 2. In accordance with the pro-rata current non-salary budgetary appropriation available in respect of Public Health Engineering, Housing and Physical Planning and Local Government Departments i.e., Rs._______ (Rupees______), the cash transfer show an aggregate shortfall of _________% vis--vis the current non-salary approved budget. The said amount(s) is/are placed at your disposal with uniform cut of ______% on approved current non-salary budget against each grant/function, for incurrence of expenditure during the month. 3. Insofar Development/Khushhal Pakistan Programme/Devolution Cost funds are concerned, Rs.______ (Rupees _________) are placed at your disposal for the execution of the schemes mentioned below under ADP/KPP/Devolution Cost. Sr.# Name of Scheme Amount Total: *TEHSIL/TOWN MUNICIPAL OFFICER
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Finance Department
______________________ No. & Date Even: A copy is forwarded for information and necessary action to: 1. The District Coordination Officer _____________________. 2. The Secretary, Govt. of the Punjab, LG & RD Department, Lahore. 3. The Deputy Secretary (Budget), Finance Department, Lahore. 4. The District Accounts Officer _____________. 5. Tehsil/Town Accounts Officer _____________ *TEHSIL/TOWN MUNICIPAL OFFICER ______________________ *Score out where not applicable ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 12th January, 2002 NOTIFICATION No. FD(FR)11-5/82. In continuation of this departments notification of even No. dated 11-8-2001, the Governor of Punjab is pleased to further enhance the powers of District Development Committee to approve development schemes up to the value of Rs. 20.00 million, with immediate effect. The composition of District Development Committee already notified shall remain the same. ---------No. IT (FD)3-4/2001, GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 26th January, 2002 Subject: DEVELOPMENT PLAN 2001 ACCOUNTING SYSTEM OF THE DISTRICT GOVERNMENTS WITH THE SBP/NBP. Dear Sir, Kindly refer to this departments letter of even No. dated 11th Oct., 2001, whereby a list of Districts/Tehsil Headquarters was furnished for the subsequent operationalization of the District and Tehsil/Towns Provincial Accounts. With the establishment of said accounts, it has transpired that while the District Provincial Accounts have been rightfully operationalized at all District Headquarters in the Punjab as communicated vide your letter No. AD. Govt./ 3610/105-2001 dated 25th Oct., 2001, nevertheless there is a discrepancy with regard to the operationalization of the Tehsil/Town Provincial Accounts.
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As inferred from the response received from the National Bank of Pakistan Authorities, Tehsil/Town Provincial Accounts have not been operationalized for the Tehsil/Town Municipal Administrations (TMAs) located at District Headquarters, as well as at certain other TMAs which could not be indicated in our list sent on 11.10.2001. Consequently, in order to rectify this anomaly and fully operationalize all Tehsil/Town Provincial Accounts, a complete list of District Governments and Tehsil/Town Municipal Administrations is sent herewith with the request to direct the respective NBP authorities to operationalize all TMAs as indicated therein under intimation to this department. ---------LIST OF DISTRICT GOVERNMENTS AND TEHSIL/TOWN MUNICIPAL ADMINISTRATION
Sr. No. DISTRICT SUB ACCOUNT NO. TOTALS Sr. # TOWNs & TEHSILS SUB ACCOUNT NO.
Rawalpindi
Attock
Jhelum
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
1 2 3 4 5 6 1 2 3 4 5 1 2 3 1 2 3 1 2 3 4 5 1
Chakwal
Sargodha
Mianwali
Rawalpindi Gujar Khan Murree Kahuta Taxila Kotli Sattian Attock Fateh Jhang Pindi Gheb Jand Hassan Abdal Jhelum Sohawa Pind Dadan Khan Chakwal Talagang Choa Sayden Shah Sargodha Bhalwal Shahpur Sillanwali Sahiwal Mianwali
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Sr. No. DISTRICT
Finance Department
SUB ACCOUNT NO. TOTALS Sr. # TOWNs & TEHSILS SUB ACCOUNT NO.
Bhakkar
8 9
Khushab Gujranwala
24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 0 50 51 52 53
2 3 1 2 3 4 1 2 1 2 3 4 5 1 2 1 2 3 1 2 3 1 2 1 2 3 0 1 2 3 4
10 11
Hafizabad Gujrat
12
Sialkot
13 14
Narowal Mandi Bahauddin
15
Lahore
Isa Khel Piplan Bhakkar Derya Khan Mankera Kallurkot Khushab Noor Pur Thel Gujranwala City Gujranwala Sadar Nosherah Wirkan Kamoke Wazirabad Hafizabad Pindi Bhattian Gujrat Kharian Sarai Alamgir Sialkot Daska Pasrur Narowal Shakkar Garh Mandi Bahauddin Malikwal Phalia ( Lahore ) Ravi Town Data Gunj Bakhsh Town Shalamar Town Aziz Bhatti Town

Sr. No. DISTRICT SUB ACCOUNT NO. TOTALS Sr. # TOWNs & TEHSILS
73
SUB ACCOUNT NO.
16
Sheikhupura
54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86
5 6 1 2 3 4 1 2 3 1 2 3 1 2 3 4 1 2 3 1 2 3 1 2 1 2 1 2 3 4 1 2 3
17
Kasur
18
Okara
19
Multan
20
Lodhran
21
Vehari
22 23
Sahiwal Pakpattan Sharif
24
Khanewal
25
Faisalabad
Iqbal Town Nishtar Town Sheikhupura Nankana Sahib Ferozewala Safdarabad/ Ahmedpur Kasur Chunian Pattoki Okara Depalpur Renala Khurd Multan City Multan Sadar Shujabad Jalalpur Pirwala Lodhran Kahror Pacca Dunyapur Vehari Burewala Mailsi Sahiwal Chichawatni Pakpattan Sharif Arif Wala Khanewal Mian Channu Kabirwala Jahanian Faisalabad City Faisalabad Sadar Jaranwala
74
Sr. No. DISTRICT
Finance Department
SUB ACCOUNT NO. TOTALS Sr. # TOWNs & TEHSILS SUB ACCOUNT NO.
26
Toba Tek Singh
87 88 89 90 91 92 93 94 95 96 97 98
4 5 6 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 4 1 2 3 1 2 3 4 5 1 2 3 4 5 1
27
Jhang
28
Dera Ghazi Khan
29
Rajan Pur
30
Muzaffargarh
31
Layyah
32
Bahawalpur
99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119
33
Bahawal-nagar
34
Rahim Yar
Summandari Chak Jhumrah Tandlianwala Toba Tek Singh Gojra Kamalia Jhang Chiniot Shorkot Dera Ghazi Khan Taunsa Sharif De-Excluded area Rajan Pur Rojhan Jampur Muzaffargarh Ali Pur Kot Addu Jatoi Layyah Karor Lal Easan Chaubara Bahawalpur Ahmedpur East Hasilpur Yazman Mandi Khairpur Tamewali Bahawalnagar Fort Abbas Minchinabad Chishtian Haroonabad Rahim Yar

Sr. No. DISTRICT SUB ACCOUNT NO. TOTALS Sr. # TOWNs & TEHSILS
75
SUB ACCOUNT NO.
Khan 120 121 122 28-01-2002 ---------2 3 4
Khan Liaqatpur Khanpur Sadiqabad
No.PS/FS/01-31/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 31st January, 2002 Subject: OPENING OF TEHSIL / TOWN PROVINCIAL ACCOUNTS BY NATIONAL BANK OF PAKISTAN.
My dear District Coordination Officer, The National Bank of Pakistan have confirmed to us the opening of Tehsil/ Town Provincial Accounts as of 29.1.2002. The Code Numbers of the Tehsil/ Town Provincial Accounts, district-wise are enclosed. 2. It is requested that these accounts may now be operationalized and all funds earmarked for credit to Tehsil / Town Provincial Accounts may kindly be credited to these newly opened accounts at the earliest and a report submitted to the Finance Department, with a copy to the Local Government Department. With best wishes, ---------NATIONAL BANK OF PAKISTAN No. OPG SECTT/CS&GBW/2001/MAN/ January 29, 2002. Dear Sir, LIST OF CODES ALLOTTED TO DISTRICT AND TEHSIL/TOWN HEADQUARTERS DEALING WITH DPGA-IV Please enclosed the revised list of District and Tehsil/Town alongwith the codes dealing with District Provincial Account No.IV.
76
Finance Department
You are requested to furnish the same to the dealing NBP branches under your jurisdiction and concerned Provincial Finance Department and District Accounts Officers/Treasury Officers under intimation to this office. ---------NATIONAL BANK OF PAKISTAN No. OPG /CS&GBW/2002/ January 29, 2002. Dear Sir, DEVOLUTION PLAN OPENING OF DISTRICT GOVERNMENT ACCOUNT Please refer to our letter No. OPG/CS&GBW/LOCAL GOVT/6303 Dated 20-12001 on the captioned subject. We have received another letter from Chief Inspector of Treasuries, Government of the Punjab, Finance Department letter No. IT(FD)3-4/2001 dated 26-01-2002 enclosing therewith a revised list containing details of Tehsil of Punjab for opening Tehsil Account at our respective branches (copy enclosed). As the matter is very urgent nature, we shall be grateful if you could arrange to instruct the concerned branches to open the said account with respective code number. Please advise the names of branches with the code wherein Tehsil accounts are opened to us and concerned District Government/Treasury Officer and the Finance Secretary Punjab. This is most urgent. ---------S. No. 1 District Attock Code 1402 Tehsil Attock Fateh Jang Pindigheb Hasanabad Jand Jhelum Sohawa Pind Dadan Khan Chakwal Talagang Choa Sayaddan Shah Sargodha Bhalwal Code 1801 1802 1803 1804 1805 1806 1807 1808 1809 1810 1811 1812 1813
Jhelum
1403
Chakwal
1404
Sargodha
1405
77
S. No.
District
Code
Tehsil Shahpur Sillanwali Sahiwal Mianwali Issakhail Piplan Bhakkar Darya Khan Mankera Kalurkot Khushab Noorpur Hafizabad Pindi Bhattian Gujrat Kharian Sarai Alamgir Narowal Shakar Garh Mandi Bahauddin Malikwal Phalia Sheikhupura Nankana Sahab Ferozwala Safdarabd/AHM Kasur Chunnian Pattoki Okara Depalpur Renala Khurd Lodhran Caroor Pacca Duniyapur Vehari Burewala Mailsi
Mianwali
1406
Bhakkar
1407
7 8 9
Khushab Hafizabad Gujrat
1408 1410 1411
10 11
Narowal Mandi Bahauddin
1413 1414
12
Sheikhupura
1416
13
Kasur
1417
14
Okara
1418
15
Lodhran
1420
16
Vehari
1421
Code 1814 1815 1816 1817 1818 1819 1820 1821 1822 1823 1824 1825 1826 1827 1828 1829 1830 1831 1832 1833 1834 1835 1836 1837 1838 1839 1840 1841 1842 1843 1844 1845 1846 1847 1848 1849 1850 1851
78
Finance Department
S. No. 17 18 19
District Sahiwal Pakpattan Khanewal
Code 1422 1423 1424
Tehsil Sahiwal Chichawatni Pakpattan Arifwala Khanewal Mian Channu Kabirwala Jahaniyan Toba Tek Singh Gojra Kamalia Jhang Chiniot Shorkot Dera Ghazi Khan Taunsa Sharif De-excluded area Rajanpur Jampur Rojhan Muzaffargarh Alipur Kot Adu Jatoi Layyah Karorlal Easan Chaubara Bahawalnagar Fort Abbas Minchinabad Chishtian Haroonabad Rahimyar Khan Sadiqabad Liaquatpur Khanpur Rawalpindi Gujar Khan
20
Toba Tek Singh
1426
21
Jhang
1427
22
Dera Ghazi Khan
1428
23
Rajanpur
1429
24
Muzaffargarh
1430
25
Layyah
1431
26
Bahawalnagar
1433
27
Rahimyear Khan
1434
28
Rawalpindi
Code 1852 1853 1854 1855 1856 1857 1858 1859 1860 1861 1862 1863 1864 1865 1866 1867 1868 1869 1870 1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 1882 1883 1884 1885 1886 1887 1888 1889
79
S. No.
District
Code
Tehsil Marree Kahuta Tazila Kotli Sattian Gujranwala City Gujranwala Saddar Nowshehra Virkan Kamoke Wazirabad Sialkot Daska Pasrur Faisalabad City Faisalabad Saddar Jaranwala Samundri Chak Jhamra Tandlianwala Multan City Multan Saddar Shujaabad Jalapur Pirwala Bahawalpur Ahmedpur East Hasilpur Yazman Mandi Khaurpur Tamewala Ravi Town Data Ganj Baksh Town Aziz Bhatti Town Allama Iqbal Town Nishtar Town
29
Gujranwala City
30
Sialkot
31
Faisalabad
32
Multan
33
Bahawalpur
34
Lahore
Code 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921
---------No. IT(FD)3-4/2001 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 6th February, 2002
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Finance Department
Subject:
OPERATIONALIZATION ACCOUNTS.
OF
TEHSIL/TOWN
PROVINCIAL
Kindly refer to the subject cited above, and find enclosed a copy of letter No. OPG SECTT/CS&GBW/2002 dated 31st January, 2002, along with a revised statement, from the National Bank of Pakistan, Head Office, Karachi, notifying the operationalization of Tehsil/Town Provincial Accounts in the Punjab by allotting code Nos., to each. 2. You are accordingly requested to liaise with the respective National Bank of Pakistan branch for getting the Tehsil / Town Provincial Accounts functional, in the prescribed manner, without further loss of time. ----------No. (B&E-I)Misc-14/2001 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 12th February, 2002 Subject: POSTING OF STAFF IN THE DISTRICT GOVERNMENTS
Kindly refer to the subject cited above. 2. Pursuant to the directions given by the Governor of the PUNJAB it has been decided to provide officers to the offices under the EDOs (Finance & Planning), through emergent arrangements. 3. You are accordingly directed to immediately relieve one of the Assistant Treasury Officer/Assistant Accounts Officer (SAS qualified) for posting as Deputy District Officer (Accounts) in the respective office under the EDOs (Finance & Planning). 4. The officer shall join the new assignment with immediate effect. The name of the officer may be communicated to this department by 16-2-2002 along with his joining report. ---------No. SO (B&E-II) 12-2/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 16th February, 2002 Subject: SERVICE MATTERS OF NON-GAZETTED OFFICIALS OF THE PUNJAB TREASURIES ESTABLISHMENT.
Kindly refer to the subject cited above. 2. The administrative authority to regulate the service matters of the divisional cadres of provincial treasuries establishment had ceased to exist with the abolition of the offices
81
of the Divisional Commissioners and Deputy Commissioners with effect from 14th August, 2001. 3. In order to streamline the aforesaid position, the following decisions have been taken in the matter, pending final administrative restructuring of the provincial treasuries, and its staff:(a) All functions and powers, excluding that of the Appointing Authority and conduct of E&D proceedings, shall vest in the respective District Accounts Officer / Treasury Officer with regard to all service matter of the nongazetted treasury officials working under their control. Such functions shall be performed in the prescribed manner under the Rules, and on the basis of official record maintained In the defunct offices of the Commissioner of the Divisions. The seniority of treasury officials shall continue to be maintained on the basis of the erstwhile divisional cadres till such time that all pending cases of promotion/moreover, grant of selection grade etc; as on 14-8-2001 are decided/finalized. The DAO/TO located at the erstwhile divisional headquarters shall act as a focal point for the purpose of such exercise. Notwithstanding the above, inter-district transfers of treasury officials shall be done by the Finance Department. All other ancillary matters not affected by the abolition of the offices of the Commissioners/Deputy Commissioners shall continue to be administered in the erstwhile manner.
(b)
(c) (d)
4. Any other issue, not covered, under the aforestated instructions may be referred to this department for advice/clarification. ---------No. IT(FD)3-4/2001 Vol-I GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the 18th February, 2002 Subject: ESTABLISHMENT OF DISTRICT/ TEHSIL/ TOWN PROVINCIAL ACCOUNTS UNDER ACCOUNTS NO. IV
Kindly refer to the correspondence resting with this departments letter of even number dated 3.1.2002 and Accountant General, Punjabs letter No. TDH-Cell/AccountsIV/HM/95 dated 23.1.2002 on the above cited subject. 2. Funds to the District Governments are being provided thorough cash transfer mode since November 1, 2001. All expenditures by the District Governments thereafter are to be incurred only from the amount available in their respective Accounts No. IV opened in the State Bank of Pakistan/National Bank of Pakistan. A recent review of the District/Tehsil/Town Provincial Administration under Account No.IV indicated
82
Finance Department
discrepancies in proper credit of cash transfers to the respective accounts and debit of expenditures. 3. A statement to this effect prepared by the Finance Department on the basis of reports furnished by the SBP is contained at Annex-A. As evident, utilization in all the districts has been reported much less than the actual expenditures. What is more disturbing is that no expenditure has been shown against the District Provincial Accounts of Chakwal, Lodhran, Khanewal and T.T. Singh. 4. This situation clearly suggests that proper booking of expenditure is not being done in Account No. IV by the respective branches of the State Bank of Pakistan/National Bank of Pakistan and that such expenditures are probably being debited to Account No. 1 of the Provincial Government. 5. The aforestated situation can certainly lead to serious problems for the Provincial Government in its resource management. It is, therefore, again reiterated to kindly take up the matter with the concerned branches of the SBP/NBP making payments from District Provincial Accounts/Tehsil/Town Provincial Accounts for ensuring correct debit of expenditures to the relevant accounts. 6. It is, also requested that all payments made from Account No. IV to the districts may kindly be compiled from November 1, 2001 onwards, so that correct balances available in the districts respective accounts are reported. 7. A very early action in the matter is requested please. ----------
No. FD(FR)VI-9/2000 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 26th February, 2002 Subject: STREAMLINING THE FUNCTIONING OF TEHSIL MUNICIPAL ADMINISTRATIONS (TMAs) Sir, I am directed to state that in supersession of the instructions contained in Note 3 of Finance Departments notification of even number, dated 15.8.2001 all cases of acceptance of tenders/grant of technical sanction which are beyond the competence of a Tehsil Officer (I&S) (BS-18/19) in a Tehsil Municipal Administration (TMA) shall be referred to the Executive District Officer (Works & Services) of the same district, for the grant of the necessary acceptance/sanctions.
83
2. The powers to accept tenders and to accord technical sanction shall not vest in Tehsil Officer (I&S) (BS-17). Therefore, in the event of posting of a Tehsil Officer (I&S) (BS-17), in a TMA the powers of acceptance of tenders and grant of technical sanction may only be exercised by the Executive District Officer (Works & Services) of the same district. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 11th March, 2002 NOTIFICATION No. FD(FR)11-2/89. The Governor the Punjab is pleased to direct that in the Delegation of Financial Powers Rules, 1990 the following amendment shall be made namely:AMENDMENT In the First Schedule in Part-I Officers in Category-I, sub-part G-Other Officers, the following new entry shall be made:49-Medical Superintendent-Government Hospital for Psychiatric Diseases, Lahore. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 28th March, 2002 NOTIFICATION No. FD(FR)II-5/82. The Governor of the Punjab is pleased to delegate the following powers to the officers of Communication & Works Department and to the Officers of District Governments for technical sanction and acceptance of tenders:TECHNICAL SANCTION ORIGINAL WORKS Sr. No. 1. Name of powers Technical sanction in case of original works. To whom delegated. S.E. Highway / Works and EDO (W&S) XEN Highway / Works and DO (Roads/Buildings) Powers delegated. Up to Rs. 200 lacs Up to Rs. 50 lacs
ACCEPTANCE OF TENDERS S.E. Highway / Works and EDO (W&S) XEN Highway / Works and DO (Roads/Buildings) Up to Rs. 200 lacs Up to Rs. 50 lacs
TECHNICAL SANCTION ORDINARY / SPECIAL REPAIRS 2. The revised powers of technical sanction for ordinary and special repair of roads and buildings are as under:
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Finance Department
Sr. No. 1.
Name of powers Technical sanction in case of ordinary/& special repairs. Technical sanction in case of ordinary/and special repair to Roads.
(i) (ii) (i) (ii)
2.
To whom delegated S.E. (Works)/ EDO (W&S) XEN (Works)/ DO(Buildings) S.Es (Highways)/ EDO(W&S) XENs (Highway)/ DO(Roads)
Powers delegated Upto Rs. 10 lacs Up to Rs. 2 lacs Up to Rs. 20 lacs Up to Rs. 4 lacs
(i)
Note (1):
The existing conditions applicable to accord technical sanctions and acceptance of tenders shall also be applicable. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 2nd April, 2002
NOTIFICATION No. FD(FR)11-5/82. In continuation of this Departments notification of even number dated 15th August, 2001, the Governor of the Punjab is pleased to delegate following powers of technical sanction to the officers of Public Health Engineering Department in Tehsil/Town Municipal Administrations (TMAs): 1. 2. Tehsil/Town Officers (Infrastructure and Services) (BS-18) of District Headquarter, TMAs up to Rs.5.00 million (Rupees five million). All schemes of other TMAs in the District up to Rs.5 million will be submitted to Tehsil Officer (Infrastructure and Services) of District Headquarter TMA whereas schemes exceeding Rs.5 million and upto Rs.20 million will be submitted to EDO (Works & Services), of the concerned district for technical sanction. ---------No.PS/DS(B)1-3/02 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 11th April, 2002 Subject: UTILIZATION OF DEVELOPMENT FUNDS TRANSFERRED BY THE DISTRICT GOVERNMENTS The issue regarding the utilization of funds transferred by the District Governments, for works to be undertaken by the Tehsil Municipal Administration, has been engaging the attention of the Finance Department in the context of pre-auditing and
85
accounting aspects. Accordingly, consultations were undertaken with the Secretary PHE, the Accountant General, Punjab and the Director General Accounts (Works). 2. In pursuance of the said efforts the following position has emerged: (i) The problem regarding the utilization of the funds in question has not been reported from the TMAs where funds were placed at the disposal of the Executive Engineers of the department for execution. The divisional set-up of these offices has provided the requisite continuity in the system in terms of Section 187 of the Punjab Local Government Ordinance, 2001; The problem is only peculiar to the TMAs funds whereof were transferred in the Tehsil Provincial Accounts and consequently which have completed the execution process in the name of the TMA viz tendering, undertaking of contracts etc., and are now facing difficulties regarding payments due to nonavailability of the requisite infrastructure to implement the same, especially with regard to the pre-audit and accounting functions.
(ii)
3. In order to provide an immediate interim arrangement, up to 30th June, 2002, it has been decided in consultation with the Secretary HUD & PHE and D.G. Accounts (Works) to prescribe the following arrangements: (a) (b) The TMAs which are already working under the arrangement cited in para 2(i), may continue the same till 30th June, 2002; The TMAs falling in category (ii) above shall be sanctioned posts of Divisional Accounts Officers on temporary basis, in order to overcome the difficulties by assigning additional charge of these posts to the Divisional Accounts Officers attached with the existing divisional structure of the PHE.
4.
Order for sanctioning of posts on temporary basis would issue separately. ---------No. IT(FD)3-4/2001. GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 17th April, 2002
Subject: EXPENDITURES OF DISTRICT GOVERNMENTS AND TEHSIL MUNICIPAL ADMINISTRATIONS Kindly refer to the subject cited above. 2. With the operationalization of District and Tehsil Provincial Accounts for the District Governments and Tehsil Municipal Administrations respectively in the Punjab, normal financial activity of incurrence of expenditure has started out of Account No. IV. This is indicated by the daily cash-flow statistics furnished by the SBP/NBP. 3. However, the low expenditure profile, vis-a-vis the said accounts leads to apprehend that the expenditures may still not be rightfully being debited to Account
86
Finance Department
No. IV in the prescribed manner. And possibly, such expenditures are being debited to Account No. 1 of the Provincial Government for one reason or the other. 4. It is to clarify and reiterate, that starting 1st November, 2001, all expenditures of the District Governments and Tehsil Municipal Administrations are strictly debitable to the respective District Provincial Account / Tehsil Provincial Account, under Account No. IV only. Any departure from this position would constitute a financial irregularity. 5. It is to advise that the above position may kindly be observed, through active monitoring at all levels, to obviate distortion and mis-booking in respective accounts. ---------No. FD(M-1)III-2/87(P-V) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 11th May, 2002 Subject: Sir, Please refer to this departments letter of even number dated the 21st September. 1998 on the subject noted above, where under the policy for ex-post facto sanction was essentially linked to the holding of formal inquiry/E&D proceedings against those primafacie responsible for perpetrating the financial irregularity in question. 2. The matter has been reconsidered in the Finance Department, and it has been decided to leave it for the competent authority to decide whether to hold E&D proceedings against the persons allegedly responsible for a particular financial irregularity or not. In case the irregularities are attributable to the concerned official, due responsibility would be fixed by the department itself, and action taken accordingly. 3. Accordingly, all ex-post facto sanctions upto Rs. One lac shall be given by the Administrative Secretary concerned, in the light of delegation of powers under financial Rules 1990 while the case in excess of Rs. One lac shall be referred to the Finance Department with full facts, and the recommendations of the Administrative Secretary / Principal Accounting Officer concerned for consideration and approval. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 14th May, 2002 NOTIFICATION No.FD(FR)11-2/89. The Governor of the Punjab is pleased to delegate the following financial powers to sanction employment of work charged establishment to the Officers EX-POST FACTO SANCTIONS UNDER THE DELEGATION OF FINANCIAL POWER RULES.
87
of Provincial function & Officers of District Government against Serial No.3 in Part-II Special powers of C&W Department. (Second Schedule of Delegation of Financial Powers Rules, 1990):To Whom Delegated Superintending Engineers Executive Engineers DO (Roads & Buildings) Existing Limit On salaries upto Rs.2000/- per mensum On salaries upto Rs.1350/- per mensum --Enhanced Limit On salaries upto Rs.4000/- per mensum On salaries upto Rs.4000/- per mensum On salaries upto Rs.3000/- per mensum
Note: These powers would be subject to condition that:(i) Provision exists in the sanctioned estimates. (ii) The powers is exercised only when the order to commence the work has been received. (iii) The monthly wages allowed do not, exceed the emoluments including allowances admissible to regular establishment of the same category. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 16th May, 2002 NOTIFICATION No. FD(FR)11-5/82. In continuation of this Department's notification of even number dated 15th August, 2002, the Governor of the Punjab is pleased to delegate following powers of acceptance of tenders & according of technical sanction to the officers of Public Health Engineering Department in Tehsil/Town Municipal Administration (TMAs): 1. 2. Tehsil/Town officers (Infrastructure and Services)(BS-18) of District Headquarter, TMAs upto Rs.5.00 million (Rupees five million). All schemes of other TMAs in the District upto Rs.5 million shall be submitted to Tehsil officer (Infrastructure and Services) of District Headquarter TMA whereas schemes exceeding Rs.5 million and upto Rs.20 million will be submitted to EDO (Works & Services), of the concerned District for technical sanction and acceptance of tenders through Tehsil Officer (I&S)(BS-18) of PHE Department. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 20th May, 2002
88
Finance Department
NOTIFICATION No. FD(FR)11-5/82(P). The Governor of the Punjab is pleased to allow the powers of technical sanction and acceptance of tenders in favour of Superintending Engineers in Public Health Engineering Department, posted at Faisalabad, Multan, Lahore and Rawalpindi The powers of technical sanction and acceptance of tenders would be up to Rs. 20 million. The cases of technical sanction and acceptance of tenders beyond Rs.5 million would now be sent to the Superintending Engineers of Public Health Engineering Department instead of EDO (Works and Services). These powers would be exercised in case of Rural Water Supply/Urban Water Supply, Drainage and Sewerage schemes of the Tehsil Municipal Administrations. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 20th May, 2002 NOTIFICATION No. FD(FR)11-2/89. The Governor the Punjab is pleased to approve the following amendment pertaining to official entertainment in the Punjab Financial Riles Vol-II:Relevant Paragraph Paragraph 52 in Appendix 14 Existing Limit Rs.70/- per head Enhanced Limit Rs.130/- per head
Note: The existing condition for official entertainment shall remain the same. ---------No. IT(FD)3-1/98-Vol-I GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the May 21, 2002 Subject: REVISED SYSTEM TRANSACTIONS OF REPORTING GOVERNMENT
Kindly refer to the subject cited above, and find enclosed a copy of the letter No. 57-AC-III/8-38/92-Vol-II, dated 02.04.2002 from the Controller General of Accounts, addressed to the Provincial Accountant Generals sending therewith a copy of the National Bank of Pakistan Circular No. 15/2002, dated 15.03.2002 outlining the revised system of reporting and reconciliation of Government transactions, specially in the context of the operation of Account No.IV of the District Governments, and the Tehsil Municipal Administrations. 2. You are requested to strictly comply for with, and implement the prescribed procedure for undertaking effective reconciliation and minimizing reporting errors.
89
---------OFFICE OF THE CONTROLLER GENERAL OF ACCOUNTS TAIMUR CHAMBER 10-D WEST BLUE-AREA ISLAMABAD No. 57-AC-III/8-38/92-Vol-II Subject: REVISED SYSTEM OF TRANSACTION BY THE NBP. Dated 02.04.2002. REPORTING GOVERNMENT
Kindly refer to this office letter No. 21-AC-III/8-38/92-Vol-II dated 06-02-2002 with which copy of the instructions of the NBP head office directing its branches of all categories A, B & C to render daily account to the DAO/TO, was sent. Kindly find enclosed a copy of NBP circular bearing No. 15/2002 dated 15-03-2002 in which the Bank has accepted our demand that its branches conducting Government business, whether of Federal, Provincial or District Governments, will report to their Head Office daily, agreed figures of concerned Government receipts and payments next day after reconciliation with the concerned DAO/TO. 2. The two bottlenecks (i) non-reporting/rendering daily account by the category C branches to the DAO/TO and (ii) reporting daily receipts and payments to Head Office before check and reconciliation with the concerned DAO/TO, have now been addressed by the NBP. The implementation of this revised system, that mostly rests with DAOs/TOs as well as proper and vigilant monitoring by your office, will resolve the issue of huge variations in the book balance of cash with bank balance. 3. The DAOs/TOs may please be directed to observe the new system strictly and get daily and monthly reconciliation with the bank branch in accordance with the procedure prescribed in this office letter No. 47-AC-III/8-38/92 dated 13-12-2000. Your office may please watch that DAO/TOs monthly accounts are accompanied with a reconciled statement, as prescribed in aforesaid procedure. 4. This issues with the approval of Controller General of Accounts. ---------No. IT (FD) 3-4/2001 Vol-I GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the May 27, 2002 Subject: Sir, RELEASE OF FUNDS TO THE DISTRICT GOVERNMENTS FOR REFERENDUM 2002 ETC - REFUND OF UNSPENT BALANCES
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Finance Department
I am directed to refer to the subject cited above, and to state that the Finance Department had released the following sums to the District Governments in the Punjab for the purpose of Referendum 2002, and ancillary expenditures relating thereto:(i) A sum of Rupees 2.00 Million to District Lahore and Rs.1.5 Million to District Faisalabad for referendum 2002 vide Nos.(W&M)1-31/2001, dated 8-4-2002 and 11-4-2002 respectively. An aggregate sum or Rs.46-008 million to thirty four districts for the facilitation of voters vide No. (W&M) 1-31/2001, dated 26th April, 2002.
(ii)
(iii) An aggregate sum of Rupees 22.00 million to thirty two districts (excluding Lahore and Faisalabad) for referendum 2000 vide No. (W&M) 1-31/2001, dated 16th April 2002. (iv) A sum of Rs.2 million to District Multan for incurrence of expenditure by the DCO, Multan, through his PLA, vide No. Exp(Gen)7-4/2001, dated 13-42000.
2. I am to state that the amounts at Sr. No. IIII above were released through CASH TRANSFERS in Account No. IV of the respective District Government. As per the stipulations prescribed by the Finance Department, the amounts as referred to in these paras were to be drawn in advance, and placed in the respective National Bank of Pakistan branches for the incurrence of expenditure in the prescribed manner, under the Rules. 3. As further stipulated, the vouched accounts of all expenditures were to be maintained, beside the maintenance of a CASH BOOK for the purpose of audit. Meanwhile, the bank account was to be closed after the purposes thereof were completed. 4. In consideration of the above facts, I am to request that all District Coordination Officers may be advised to reconcile alt expenditures as above with the accounting record maintained by them with the respective bank statements, and that all unspent balances in the respective bank accounts be remitted in the following head of account, through a cheque, equivalent to the unspent balance in each, alongwith the treasury challans, for deposit in Provincial Account No. 1 as under: 1000000 - Non tax receipts 1300000 - Miscellaneous receipts 1390000 - Other (NES) 1391880 - Other receipts - Unspent balances of Referendum -2002. 5. As regards funds stated at Sr. No. IV of the Para-1 above, I am to state that the District Coordination Officer, Multan may reconcile the expenditure out of PLA with the District Accounts Officer Multan who shall thereafter be required to adjust the unspent balance in his accounts as deduct receipt under intimation to this department. ---------No. IT(FD)3-4/2001-Vol-1(A),(A) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT
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Dated Lahore, the 29th May, 2002 Subject: RECONCILIATION OF DISTT: PROVINCIAL ACCOUNT NO. IV
Kindly refer to the subject cited above and find enclosed a copy of reference No.167 CGA/DISTT-GOVT/2001, dated 08-05-2002, addressed by the Office of Controller General of Accounts, Islamabad to the Central Directorate, State Bank of Pakistan vis--vis certain problems relating to the reconciliation of District Provincial Account No. IV of the District Amounts Offices. This is for information and necessary action. ---------No. IT(FD)3-4/2001/Vol-I(B) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 29th May, 2002 Subject: PROCEDURE FOR MAINTENANCE OF PUBLIC WORKS AND FOREST DEPARTMENTS ACCOUNTS UNDER DEVOLUTION PLAN.
Kindly refer to the letter No. 169/CGA/DISTT-GOVT/2001, dated 11-05-2002 on the above cited subject and find enclosed a copy of the procedure/Guidelines formulated by the Controller General of Accounts for payment and accounting functions of Public Works Divisions and Forest Department, decentralized and attached with the District Government/Tehsil Municipal Administration. 2. You are requested to meticulously go through these procedure/guidelines for strict implementing the prescribed manner. ---------PROCEDURE FOR MAINTENANCE OF PUBLIC WORKS AND FOREST DEPARTMENTS ACCOUNTS UNDER DEVOLUTION PLAN The Guidelines issued by this office on 11.08.2001 for keeping and maintaining accounts of District & Tehsil / Town Municipal Administration (TMAs) under the devolution plan contained in para-12 that these accounts will be compiled by the District Accounts Officers (DAOs) & Tehsil / Town Accounts Officers (TAOs). It implies that accounts of PWD and Forest Divisions/Offices decentralized will also be compiled by the DAOs/TAOs, because the District Governments/TMAs accounts are incomplete without the same. But as rightly pointed out by the Government of PUNJAB Finance Department, the aforesaid Guidelines contain no detailed instructions/procedure for incorporation of these accounts in the District Governments/TMAs accounts. As such following procedure is devised in this respect:
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PUBLIC WORKS DEPARTMENT Payment 1. The pre-audit and payments of the PW Divisions decentralized and attached with the District Governments/TMAs will be made by the PW Divisional authorities in accordance with the rules and procedure laid down in the Central Public Works Account Code which were in vogue prior to decentralization and transfer to the District Governments/TMAs. The D.G. Accounts Works, in case of Punjab and respective AG in case of Sindh, NWFP and Balochistan Provinces, will arrange to post a Divisional Accounts Officer in each of these newly created divisions to perform functions as prescribed in the above code. In case of non-availability of a person, the Divisional Accounts Officers working in another Division may be entrusted the job of District/Tehsil Works Division as additional charge. This arrangement will, however, be temporarily and D.G. Accounts Works, in case of Punjab and Accountants General in case of other Provinces, will post a permanent Divisional Accounts Officers in the District / Tehsil Government Works Divisions as soon as possible. Accounts 2. The Divisional Officers of the PW Divisions decentralized and attached with the District Governments/TMAs will prepare monthly accounts of the disbursements, as well as receipts and public accounts, if any, relating to the District Provincial Account No. IV/Tehsil Provincial Account duly classified under functional-cum-object heads on the prescribed Forms with the assistance of Divisional Accounts Officer and submit the same to the respective DAO/TAO by 2nd of the following month. 3. The DAOs/TAOs will incorporate the same in their Classified/ Consolidated Abstract and include in the monthly account compiled for submission to the Zila Nazim and others by 5th of the following month. 4. The concerned Divisional Officers will also send the monthly Accounts relating to the District Provincial Account IV/Tehsil Provincial Account along with all vouchers/schedules by 5th of following month for central/post audit purpose to the D.G. Account Works, Lahore in case of Punjab & the respective AGs in case of Sindh, NWFP & Balochistan provinces. 5. PW division not decentralized and operating Provincial Account No.1, will continue to prepare and submit monthly accounts of the transactions pertaining to the Provincial Government to the D.G. Accounts Works as usual. The PW Divisions of Sindh, NWFP and Balochistan government will submit such accounts to the concerned Accountant General. FOREST DEPARTMENT Payment 6. The Director Budget & Accounts of the Forest Department will make arrangements for pre-audit and payments of the Forest Division/formation decentralized and attached with the District/Tehsil Governments in the similar manner and under same rules and regulation which were in vogue prior to the decentralization and transfer to District Governments. Accounts
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7. The Forest Division/Offices decentralized and attached with the District/Tehsil Governments will prepare monthly accounts of the payments, as well as receipts and public account, if any, relating to the District Provincial Account No.IV duly classified under functional-cum-object heads and submit to the respective DAO by 2nd of the following month. 8. The DAOs will incorporate the same in the same manner of PW Division accounts in their classified/Consolidated Abstracts and include in the monthly accounts compiled for submission to the concerned Nazim and others by 5th of following month. 9. The monthly account relating to District Provincial Account No.IV will also be sent to the Director Budget & Accounts, Forest Department along with all vouchers/schedules for central/post audit and preparing a Consolidated Account for the purpose of Appropriation Accounts. 10. The Forest Division/Offices not decentralized and operating Provincial Account No.1 will continue to submit their monthly account to the Director Budget & Accounts, Forest Department as usual for onward submission of Consolidated Account of such division/offices to the A.G. for incorporation in the monthly Civil Account to be submitted to the Government. The Director Budget & Accounts, Forest Department will, however, not include in this account the accounts of decentralized divisions/offices operating District Provincial Account IV, mentioned in paras 7 and 8. ---------No. IT(FD)3-6/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the June 05, 2002 Subject: DRAWAL OF PAY/ALLOWANCES BY GAZETTED GOVERNMENT SERVANTS. Kindly refer to the subject cited above.
2. As per the provision of Rule 6.1 of the Punjab Financial Rules, Vol-I, except as otherwise provided, pay and allowances are payable only upon the personal claim of the officer, and to his personal receipt, and not otherwise. 3. However, there may be cases, where an officer may not be in a position to sign his claim due to a serious medical condition. e.g. prolonged deep coma etc; this may aggravate the agony, and cause financial hardship to the family of the civil servant. In order to obviate such a situation, and afford possible comfort to the distressed family, it has been decided to provide the following procedure in terms of Rule 6.1 ibid. 4. In case an officer in BS-16 and above suffers from an acute medical condition, whereby he is unable to personally sign his claim of pay and allowances, the Administrative department, the Head of the Attached department or the District Coordination Officer, as the case may be, on the basis of a medical certificate issued by an Authorized Medical Attendant may nominate an officer of the respective department in BS-17 or above, to sign the claim on behalf of the handicapped officer, and draw the
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amount thereof for disbursement to the family, after obtaining an affidavit as the sole legitimate claimant. 5. The Accountant General Punjab,/respective District Accounts Officer shall be notified about the above action prior to the submission of the claim. The specimen signatures of the substitute/nominated officer shall also be provided for the purpose. ---------No. IT(FD)3-7/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 6th June, 2002 Subject: CHECKLIST OF INTERNAL CONTROL: GUIDANCE FOR THE PRINCIPAL ACCOUNTING OFFICERS BOTH AT THE CENTRE AND THE PROVINCE. Kindly refer to the subject cited above, and find enclosed a copy of the booklet formulated by the office of the Auditor General of Pakistan entitled Accountability in Government - The role of Internal Control. The booklet prescribes an introduction to internal control for government organizations. 2. This is for your kind information and necessary action please. ----------
ACCOUNTABILITY IN GOVERNMENT
The Role of Internal Control
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AN INTRODUCTION TO INTERNAL CONTROL PREPARED FOR GOVERNMENT ORGANIZATIONS
Office of the
Auditor General of Pakistan

Islamabad (Research & Development Wing)
Foreword
In order to improve accountability structure of executive agencies, instituting a system of control at all levels of Government has been acutely felt by Supreme Audit Institutions (SAIs) including the Department of the Auditor General of Pakistan. This booklet on the role of Internal Control in governmental organizations is an expression of this desire. The Booklet is an adapted version of the guidelines issued by the International Organization of Supreme Audit Institutions (1NTOSAI). The prime objective of Internal Control is to have such institutional arrangements in place whereby fraud and abuse are prevented and likelihood of error and waste is decreased. Its other main objectives are that: (i) all obligations and costs are incurred in compliance with laws;
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(ii)
all funds, property and other assets are safeguarded against waste, loss, unauthorized use or misappropriation; and
(iii) all revenues and expenditures of the agency are properly recorded and accounted for to permit preparation of accounts and reliable financial reports. It is earnestly hoped that the standards given in the booklet particularly the checklist, will become the benchmarks for managers of public funds in evaluating the existing arrangements and for taking the needed action. ( Manzur Hussain ) Auditor General of Pakistan
Overview
Internal Control is a management tool used to provide reasonable assurance that management objectives are being achieved. Guidelines for Internal Control Standards INTOSAI Managers are responsible for establishing an effective control environment in their organizations. Indeed, the tone managers set through their actions, policies, and communications can result in a culture of either positive or lax control. Planning, implementing, supervising, and monitoring are fundamental components of internal control. You may go about these activities routinely, without thinking of them as part of a broad control environment that helps ensure accountability. But they are essential for efficient arid effective management and, therefore, merit serious consideration. Internal control, or management control, helps to provide reasonable assurance that the organization adheres to laws, regulations, and management directives;
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promotes orderly, economical, efficient, and effective operations; safeguards resources against fraud, waste, abuse, and mismanagement; provides quality products and services consistent with the organizations mission; and develops and maintains reliable financial and management data and fairly discloses that data through timely reporting.
Therefore, it is essential that all managers in an organization understand the importance of establishing and maintaining effective internal control in order to: Provide an overall framework for establishing and maintaining effective internal controls, Describe internal control roles and responsibilities for government managers and auditors, Describe common, internal control practices, Provide a simple checklist to help you begin thinking about whether your organization has taken appropriate steps to ensure effective internal control, and Provide a list of references for further information.
FRAMEWORK OF ESTABLISHMENT AND MAINTAINING EFFECTIVE INTERNAL CONTROL Managers Internal Control Roles and Responsibilities Create a positive control environment by Setting a positive ethical tone Providing guidelines for proper behaviour. Removing templations for unethical behaviour Providing discipline when appropriate Prepared a written code of conduct for employees. Ensure that personnel have and maintain a level of competence to perform their duties. Clearly define key areas of authority and responsibility Establishment appropriate lines of reporting Establishment management control policies and procedures that are based on managements analysis of risk. Use training, management communications and day-to-day actions of managers at all levels to reinforce the importance of management control. Monitor the organizations control operations through annual assessments and reports to top management.
Auditors Roles and Responsibilities Maintain independence in fact and appearance Ensure professional competence of audit staff
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Advise management on areas at risk Establish auditing strategic plants and goals Perform studies of operations Evaluate information technology systems Recommend ways to improve operations and strengthen controls Follow up to ensure recommendations are fully and effectively implemented Coordinate audit activities with external auditors Implement an audit assurance system
Internal Controls Common Internal Control Practices Internal Control Practices are designed to comply with internal control standards developed and promulgated by a central authority usually designated by a legislative body. An organizations work force to effectively managed so as to achieve results. Performance indicators are developed and monitored. Key duties and responsibilities are divided among people to reduce the risk of error or fraud. This is duties are segregated. Management tracks major achievements and compares them to plans. Managers compare actual performance to planned or expected results and analyze differences. Information processing is controlled such as through edit checks of data entered. Physical control is established to secure and safeguard vulnerable assets. Access to resources and records is limited to authorize individuals Accountability for their custody and use is assigned and maintained. Transactions and other significant events are authorized and executed only by persons acting within the scope of their authority. Transactions and promptly recorded to maintain their relevance and value to management in controlling operations and making decisions. Internal control and all transactions and other significant events are clearly documented and the documentation is readily available for examination.
What are Internal Controls

Simply defined, internal control is the process by which an organization governs its activities to effectively and efficiently accomplish its mission. Internal control should not be looked upon as a separate, specialized system within a governmental organization. Rather internal control should be recognized as an integral part of each system that management uses to guide its operations. Establishing effective internal control involves an assessment of the risks the agency faces from both external and internal sources. A precondition to risk assessment is the establishment of clear, consistent entity objectives, which are the goals or purposes to be achieved. Risk assessment is the identification and analysis of relevant risk associated
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with achieving the objectives. Internal control practices (such as procedures, processes, physical arrangement, organizational structure, and assignment of responsibility and authority) should then be designed and implemented to achieve the goals. Also, information should be recorded and communicated to arrangement and others within the entity who need it and within a timeframe that enables them to carry out their internal control and other responsibilities. Internal control monitoring should assess the quality of performance overtime, and ensure that the findings of audits and other reviews are promptly resolved.
Managers Role in Internal Control

Managers should realize that a strong, internal control structure is fundamental to control of an organization and its purpose, operations, and resources. Providing an adequate and effective internal control structure rests with an organizations management. The head of each governmental organization must ensure that a proper internal control structure is instituted, reviewed, and updated to keep it effective. A positive and supportive attitude on the part of all managers is critical. All managers must be individuals of personal and professional integrity. They are to maintain a level of competence that allows them to understand the importance pf developing, implementing, and maintaining effective internal controls. Management establishes an independent audit function as a key part of the internal control structure. To ensure independence, the head of this audit unit should report directly to the manager heading the agency. Management should also select an experienced, well-qualified person to lead the unit and provide sufficient resources and a competent staff to carry out audit operations. In this regard, managers work constructively with auditors to identify risks and design mitigating controls, and they give auditors responsibility for periodically evaluating internal control operations to identify weaknesses and recommend corrective measures.
Role of Audit in Internal Control

Management often establishes an audit unit as part of its internal control and selfassessment framework. Auditors are a part of a governmental internal control framework, but they are not responsible for implementing specific internal control procedures in an audited organization. That is properly the managements job. The auditors role is to audit an organizations internal control policies, practices, and procedures to assure that controls are adequate to achieve the organizations mission. Although auditors may be part of the organization they audit, it is important and necessary that the auditors independence be maintained. For its part, management can demonstrate its support by emphasizing the value of independent and objective auditing. Management should also identify areas for improving performance quality and respond to information developed through audits. External audits role in auditing a governmental entitys internal control
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Governmental entities are also audited by an external audit function. This external auditor performs his functions under statutory provisions, and reports to parliament and the oversight body to which an entity is responsible. The external auditor may examine and suggest improvements to a governmental entitys internal control. Checklist for Managers In establishing your framework, have you Assessed the risks the organization faces? Identified control objectives to manage the risks? Established control policies and procedures to achieve the control objectives? Created a positive control environment? Maintained and demonstrated personal and professional integrity and ethical values? Maintained and demonstrated a level of skill necessary to help ensure effective and efficient performance? Maintained and demonstrated an understanding of internal controls sufficient to effectively discharge responsibilities?
For implementing internal control, have you Adopted effective internal control throughout the organization? Based the organizations internal control on sound internal control standards? Included in the organizations internal control structure appropriate and costeffective control practices? Prescribed control practices through management directives, plans, and policies? Established a means of continually monitoring the operation of the organizations internal control practices? Concerning the audit function, have you Shown an understanding of the difference between internal control and audit? Recognised that an audit function is integral to your organizations internal control? Established an audit function? Ensured the audit organizations independence? Given the audit organization responsibility for evaluating the effectiveness of the audited organizations internal control practices? Established a system to monitor the organizations progress in implementing auditor recommendations? References for Further Information Guidelines for Internal Control Standards Issued by the Internal Control Standards Committee. International Organization of Supreme Audit Institutions.
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Guidelines for Reporting on the Effectiveness of Internal Controls: SAI Experiences in Implementing and Evaluating Internal Controls Issued by the Internal Control Standards Committee. International organization of Supreme Audit Institutions. November 1998. Various professional accounting organizations can provide internal Control information. The American Accounting Association. (http://www.aaa-edu.org) The American Institute of Certified Public Accountants (http://www.aicpa.org index.htm) The Chartered Institute of Public Finance and Accountancy (http://www.cipfa.orp.uk) The Committee of Sponsoring Organizations of the Treadway Commission (COSO) (http://www.coso.org) The Institute of Chartered Accountants in England & Wales (http://www.icaew.co.uk) The Institute of Internal Auditors (http://wv/w.thciia.org)
No. SO(TT)13(1)/83 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 22nd June, 2002 Subject: RELEASE OF FUNDS OF SCHOOL COUINCILS.
Kindly refer to your letter No. SO(SAP-II) 24-1/99 Vol-II dated 22-06-2002 on the subject noted above. 2. The following procedure is prescribed for the drawal of funds pertaining to School Councils against grants budgeted by the District Governments for Maintenance and Repair, and Instructional material for Primary and Middle Schools during the financial year 2001-2002. 3. The aggregate budgeted amounts may be sanctioned and drawn on Simple Receipt Form by .the Executive District Officer (Education/respective Drawing and Disbursing Officer of the District Government concerned for transfer credit to the bank account of
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each School Council, as per the prescribed scale. A list of Schools Councils with the name of the banks and their accounts Nos, alongwith the respective amounts shall be attached with the claim for the purpose. 4. For the District Government, Lahore, the Accountant General, Punjab may authorize the Treasury Officer, Lahore for the above purpose, in the prescribed manner. 5. All District Governments may be informed accordingly. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT NOTIFICATION Dated Lahore, the 2nd July, 2002
No. FD (FR) 11-5/82 (P) Governor of the Punjab is pleased to allow powers of Technical Sanction to Tehsil Officers (I&S) BS-17 up to the value of Rs.2.00 lac (Rs. Two lac only). The Tehsil Officer (I&S) is also authorized to exercise the drawing and disbursing powers. ---------No. FD/SR-I/31-3/2001-I GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 8th July, 2002 Subject: INSTRUCTIONS/NOTIFICATIONS IN GOVERNMENTS IN THE PUNJAB. URDU FOR DISTRICT
I am directed to refer to the subject cited above and to enclose herewith a copy on the Subject for your guidance.
: :
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---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the July 13, 2002 NOTIFICATION No. FD(FR)11-2/89. The Secretary, Implementation & Coordination Wing, S&GAD is hereby authorized to exercise the financial powers of Administrative Secretary in terms of Schedule-II, Part-I, Serial No. 17 of the Delegation of Financial Power Roles, 1990 concerning re-imbursement of medical claims for Provincial Cabinet. These Powers are Specifically Delegated in respect of I&C Wing, SGA&I Department. ---------No. IT(FD)3-4/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 15th July, 2002 Subject: LOCAL GOVERNMENT FINANCE SYSTEM EFFECTIVE JULY 1, 2002.
Kindly refer to the subject cited above. 2. In order to give effect to the provisions of Sections 107, 108 and 109 of the Punjab Local Government (Fifth Amendment) Ordinance, 2002, the following procedure is prescribed in consultation with the LG&RD Department for the District Governments, the Tehsil Municipal Administrations, and the Union Administrations: (i) ESTABLISHMENT OF DISTRICT FUND (a) In pursuance of Section 107 ibid, all monies standing at the credit of respective Local fund of each District Government as on 30th June, 2002 shall form part of the respective District Fund (Account No. IV) w.e.f. July 1, 2002. This fund shall be maintained in the State Bank of Pakistan / National Bank of Pakistan. All valid accrued liabilities, as due on or after July 1, 2002 shall be discharged out of the District Fund in the prescribed manner. This would apply to all liabilities of District Government, whether pertaining to former Local Fund or the District Provincial Account. Pending reconciliation and closure of books of accounts pertaining to the erstwhile Local Fund of each District Government, and formulation of Major, Minor and Detailed heads of Accounts for receipts accruing to the District Governments, against devolved taxes, if any, all receipts
(b)
(c)
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accruing to the erstwhile local fund shall w.e.f. July 1, 2002 continue to be deposited and accounted for in the existing manner. Such accounts shall be non-chequing accounts. The aggregate collections accruing at the end of each month shall be deposited by transfer credit in the District Fund (Account No. IV), in the prescribed manner, against a separate receipt head (to be prescribed by the CGA). (d) The payment of salaries of staff of the District government, whether belonging to the Provincial Government or the defunct Local Council shall w.e.f. July 1, 2002 be made out of and charged to the District fund (Account No. IV), against the respective approved budgetary allocations. For this purpose each District Government shall approve a schedule of establishment of the staff previously paid out of the Local Fund, in the prescribed manner, and forward it to the Accountant General Punjab/ respective District Account Officer for ensuring smooth payment of salaried, after pre-audit and authorization. All deductions out of the salaries on account of Income tax etc., shall be done in the prescribed manner. (e) Likewise, all contingent expenditure of such establishment as hithertofore charged to the Local Fund shall be met out of the District Fund, in the prescribed manner, against approved budgetary allocations after pre-audit, and authorization by the A.G. (Punjab)/respective District Accounts Officer. (Requisite functional expenditure classification would be necessary). Meanwhile, all District Governments shall ensure that the cash balance of Local Fund in each account are reconciled with the respective cash books as prescribed to determine, and certify the balance before its transfer to the District Fund; This step shall be completed by all District Governments immediately. It is clarified that the cost of establishment being incurred on account of salaries of employees of the provincial government and the employees paid out of Local Fund shall remain on the respective schedule of establishment of the District Government. All taxes/fees etc., being credited to the erstwhile local fund shall continue to form the receipts of the newly created District Fund. All Provincial Government taxes/fees etc. (including UIP tax) being collected by the devolved departments, which were being credited to the Provincial Account No.1, shall continue to be so credited to the same Provincial Account. In pursuance of the provision of Section 107 of the PLG (Fifth Amendment) Ordinance, 2002, a Tehsil / Town Local Fund shall be established w.e.f. 1st July, 2002 for each Tehsil/Town Municipal
(f)
(g)
(h) (i)
(II)
ESTABLISHMENT OF TEHSIL/TOWN LOCAL FUND (a)
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Administration (TMA). Such accounts shall be maintained in the National Bank of Pakistan by the respective TMA. (b) All resource transfers to TMAs shall be in the nature of grant-in-aid and would be straight transfers in the respective Tehsil/ Town Local Fund. Consequently, all Tehsil Provincial Accounts of TMAs shall stand closed w.e.f. 1st July, 2002 after due reconciliation with the respective District Accounts Officer / Tehsil Accounts Officer, and the SBP/NBP by 15th July, 2002. All certified balances in Tehsil / Town Provincial Accounts of respective TMAs as on 1st July 2002 shall form part of the Tehsil Local Fund and be transferred to the respective accounts, for which separate directions shall be issued to the SBP/NBP by the Finance Department. All valid accrued liabilities of the respective TMA as on 1st July, 2002 shall be met out of, and charged to the Tehsil/Town Local Fund. The operation of Tehsil/Town Local Fund shall be carried out in accordance with the Accounts Rules notified by the LG&RD Department. The Drawing & Disbursing authority given to Tehsil / Town Municipal Officers by the Finance Department shall cease to be valid from July 1, 2002. The staff of the departments devolved to TMAs shall be borne on the strength of the respective TMA and be paid out of the Tehsil/Town Local Fund, as the case be. Their terms and conditions of service shall be determined separately.
(c)
(d)
(e) (f)
(g)
(h)
(III) UNION ADMINISTRATION The operation and maintenance of Union Local Fund shall continue in the erstwhile manner. However, the pre-audit and authorization of expenditure shall be done by the Union Accountant in accordance with the Punjab Local Government Accounts Rules. (IV) PENSION PAYMENTS FOR EMPLOYEES OF ERSTWHILE LOCAL COUNCILS Instructions shall be communicated separately. ---------No. IT (FD) 3-4/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 16th July, 2002
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Subject:
UTILIZATION OF UNSPENT BALANCES IN PROVINCIAL ACCOUNTS AS ON SO1 JUNE 2002
DISTRICT
Kindly refer to the subject noted above. 2. Certain District Governments have sought clarification as to their competence to utilize the unspent balance in the District Provincial Account No. IV as on 30th June 2002. 3. It is clarified that the unspent balance, as above, would inter-alia constitute the opening cash balance of the respective District Government as on 1s1 July 2002, and shall be available for utilization during the financial year 2002-2003, against the budgetary authorizations approved by the Zila Council in the prescribed manner. 4. Your kind attention is also invited to this departments letter of even No. dated 15th July, 2002 outlining the procedural mechanism in accordance with the Punjab Local Government (Fifth Amendment) Ordinance, 2002 for the implementation of the Local Government Finance system, effective 1st July 2002. ----------No. IT(FD) 3-4/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 22nd July, 2002 Subject: CLOSING AUDIT OF LIABILITIES (ADP) AGAINST ERSTWHILE DISTRICT LOCAL FUND AS ON 30.6.2002. Kindly refer to Finance Departments letter No. IT(FD)3-4/2002 dated 15.7.2002, regarding Local Government Finance system effective July 01, 2002. 2. The procedural arrangements outlined in para 2(i)(b) of letter under reference interalia provide that all valid accrued liabilities, as due on or after July 01, 2002, shall be discharged out of the District Fund in the prescribed manner. This would apply to all liabilities of District Government pertaining to former Local Fund as well. 3. In order to proceed in the given manner, it has been decided, in a meeting held on 17.7.2002, between the Secretaries Finance and LG&RD department and the Accountant General, Punjab, that a closing audit of all development schemes shall be conducted by the Local Fund Audit department, to verify and authenticate the validity of all accrued liabilities on the erstwhile District Local Fund as on 30th June, 2002. In order to obviate delay in the timely discharge of such liabilities, it was further decided to complete the assignment within a fortnight. 4. It is accordingly to request you to kindly issue necessary directions to all concerned to provide relevant record to the staff of the Punjab Local Fund Audit Department for the purpose of the said exercise. A format for eliciting the requisite information is appended. ----------
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One page landscape (Available)
No. IT(FD)3-4/2002(A) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 27th July, 2002 Subject: NEW LOCAL GOVT. FINANCE SYSTEM EFFECTIVE JULY 1, 2002, ESTABLISHMENT OF DISTRICT FUND Dear Sir, As you are aware, the Punjab Local Government (Fifth Amendment) Ordinance, 2002 has been promulgated on 24th June, 2002 (copy enclosed). Accordingly, a new Chapter XI on Local Government Finance has been introduced, the financial provision whereof are effective July 1, 2002. 2. In pursuance of Section 107(1) of the said Ordinance, there shall be established a District Fund, a Tehsil Local Fund, a Town Local fund and a Union Local fund, as the case may be, for each respective local government............ 3. Accordingly, the District Provincial Accounts established under the pre-amended Ordinance, and operated during the financial year 2001-2002 shall stand discontinued
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w.e.f. July 1, 2002. Further, as required under Section 108 ibid, it has been prescribed by the Finance Department vide para 2(i)(a) of its letter No. IT(FD)3-4/2002 dated 15-72002 (copy enclosed) that the District Fund shall be maintained in the State Bank of Pakistan / National Bank of Pakistan and operated in the manner prescribed under Section 114 ibid. 4. In order to make the aforestated provisions operational, the Government of the Punjab in the Finance Department in terms of Sr. No. 2 of the agreement between the Governor of the Punjab, and the State Bank of Pakistan, advises to operate the following account with effect from July 1, 2002 for the District Government, in addition to the Provincial Accounts, as already in operation: (i) A District Fund, separately for each district in the province with the nomenclature District Fund Account No. IV. All moneys placed in the District Fund shall constitute the composite cash balance of the Provincial Account No.1. The separate Sub Nos./identification codes allotted to erstwhile District Provincial Account may be allotted to the respective District Fund under the new dispensation.
(ii)
(iii) A separate procedure for effecting receipts of District Governments in District Funds shall be notified in due course. 5. Where there is no branch of SBP at the District level, the business shall be conducted by branches of the National Bank of Pakistan, as an agent of the State Bank of Pakistan. 6. The operation of the District Fund as, aforestated, shall be carried out in accordance with the detailed transfer of funds and accounting procedure notified by the Controller General of Accounts vide No. CGA/Dsitt-Govt./2001 dated 11-8-2001, and in accordance with the policy agreed by the State Bank of Pakistan vide No. AD Govt/3248/105(p) 2001 dated 28th September, 2001. The CGA, has meanwhile been requested to suitably modify the accounting procedure, referred to above, to be in consonance with the new Law. As already stated in para 4(i) above the operation of District Fund Account No. IV shall be within the ambit of Provincial Account No. 1 the over-all cash balance of the province being reflected inclusive of the operations under District Fund Account No. IV. Therefore, while reporting daily cash balance position to the provincial Finance Department, the SBP shall be required to depict. (a) (b) cash balance in Account No. 1 inclusive of aggregate balance in each District Fund Account No. IV, and; separate cash balance in District Fund Account No.IV for each district. ---------No. IT(FD)3-4/2002(B) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT
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Dated Lahore, the 27th July, 2002 Subject: NEW LOCAL GOVERNMENT FINANCE SYSTEM EFFECTIVE JULY 1, 2002 -- ESTABLISHMENT OF TEHSIL/TOWN LOCAL FUND
Dear Sir, As you are aware, the Punjab Local Government (Fifth Amendment) Ordinance 2002 has been promulgated on 24th June, 2002 (copy enclosed). Accordingly, a new Chapter XII on Local Government Finance has been introduced, the financial provision whereof are effective July 1, 2002. 2. In pursuance of Section 107(1) of the said Ordinance, There shall be established a District Fund, a Tehsil Local Fund, a Town Local fund and a Union Local fund, as the case may be for each respective local government....... 3. Accordingly, the Tehsil Provincial Accounts established under the pre-amended Ordinance, and operated during the financial year 2001-2002 shall cease to operate w.e.f. July 1, 2002. 4. In consideration of the above facts, it is advised as follows in terms of Sr. No. 2 of the agreement between the Governor of the Punjab and the State Bank of Pakistan: (i) (ii) The operation of Tehsil Provincial Accounts for each Tehsil / Town Municipal Administration may be discontinued w.e.f. 1st July, 2002. The cash balances in each Tehsil / Town Provincial Account as on 1 st July, 2002 may be worked out and intimated to this department after due reconciliation with the respective District Accounts Officer and the Tehsil / Town Municipal Administration.
(iii) Any financial transactions having taken place out of Tehsil / Town Provincial Account after July 1, 2002, till to date may be worked out separately, and intimated to this department for advising necessary adjustments through the respective DAO/ AG, Punjab. 5. It is requested that appropriate instructions may kindly be issued to the National Bank of Pakistan and all other relevant quarters for the implementation of the provision of the new Law. ---------No. IT(FD) 3-4/2002. Vol-I (C) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 27th July, 2002
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Subject: Sir,
ESTABLISHMENT OF TEHSIL / TOWN LOCAL FUND POSTING OF TEHSIL ACCOUNTS OFFICER
1 am directed to refer to the subject noted above and to state that in order to give effect to the provision of Section 107(1) of the Punjab Local Government (Fifth Amendment) Ordinance, 2002, read with Section 114(3)(b) & (d) ibid, it is necessary to appoint a Tehsil Accounts Officer in each Tehsil/Town Municipal Administration for performing pre-audit and accounting functions in relation to the operation of the Tehsil /Town Local Fund. 2. I am, however, to state that this step is yet to be implemented and, meanwhile, the financial operations of the Tehsil / Town Municipal Administration have come to a stand still due to the non-posting of Tehsil / Town Accounts Officer, as envisaged in the Law. 3. Therefore, in order to keep the financial operations of the TMAs functional, I am to state that the LG&RD department may invoke the provision of Section 197 of the PLGO 2001, and allow the existing set-up of Resident Audit Schemes, manned by officials of the Punjab Local Fund Audit Department to continue pre-audit and accounting functions up to 31st August 2002. Meanwhile, necessary measures may kindly be taken for posting of TAOs in TMAs. ----------
No. IT(FD)3-4/2002. GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 2nd August, 2002 Subject: FINANCIAL OPERATIONS OF TEHSIL/TOWN ADMINISTRATIONS IN THE PUNJAB. MUNICIPAL
Kindly refer to the subject noted above. 2. In accordance with the provision of Section 114 (3)(b) and (d) of the Punjab Local Government (Fifth Amendment) Ordinance, 2002, the financial operations of the Tehsil/Town Municipal Administrations are to be performed by the Tehsil/Town Accounts Officers in relation to the Tehsil/Town Local Funds established under Section 107(1) ibid. 3. While the appointment of Tehsil/Town Accounts Officers is in the process of finalization, it has been noted that the working of the Tehsil/Town Municipal Administration is being hampered due to the said factor. Therefore, in order to keep the financial operations of the TMAs functional, it has been decided, as an interim measure, to allow the existing set-up of Resident Audit Schemes, manned by the officials of the
112
Finance Department
Punjab Local Fund Department to continue pre-audit and accounting functions up to 31st August, 2002, in the prescribed manner. Where a Resident Audit Scheme is not functional in a TMA, the Provincial Director LFA shall ensure immediate alternate arrangements. ---------No. PS/DS(B)1-3/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 2nd August, 2002 Subject: PAYMENT OF SALARIES TO THE EMPLOYEES OF PHE, H&PP AND LG&RD DEPARTMENTS DEVOLVED TO TMAs
The Provincial Finance Commission has since announced the interim PFC Award. However, modalities regarding transfer/utilization of funds are being finalized by the Finance Department in consultation with the LG&RD Department. 2. In order to avoid any difficulty for the payment of the salaries, to the employees of Public Health Engineering, Housing and Local Government Departments which are now a part of TMAs, it has been decided to allow the disbursement of the salaries to these employees for the period June-July, 2002 from Provincial Account No.-1. The actual amount paid on account of salaries to employees of PHED, LG&RD and Housing Departments (TMAs) will be adjusted from the subsequent releases to the TMAs in due course. ---------No. IT (FD) 3-4/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the, August 6, 2002 Subject: DISBURSEMENT OF SALARIES / OTHER EXPENDITURES OF ESTABLISHMENTS PERTAINING TO ERSTWHILE LOCAL FUND
Kindly refer to the subject noted above. 2. Certain District Accounts Officers have sought clarifications regarding the mode and manner of submission of claims, and their disbursements out of DISTRICT FUND, specially in relation to the establishments previously paid out of the Local Fund. 3. It is accordingly clarified as below:(a) Disbursements of salaries and contingent expenditures of all establishments of district / city district governments previously charged to the defunct Local
113
Fund, shall w.e.f. July 1, 2002 be done in the form and manner as applicable to the devolved departments of the district /city district governments. (b) The salaries and contingent expenditures of all departments of the district / city district governments, including those charged to the erstwhile Local Fund, shall only be payable from the respective SBP/NBP branch located at district headquarters, regardless of the fact whether such offices/ establishments are located at district headquarters or not. ---------No. IT(FD)3-4/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 8th August, 2002 Subject: LOCAL GOVERNMENT FINANCE SYSTEM IN THE PUNJAB -EFFECTIVE JULY 01, 2002
Kindly refer to this departments letter of even number dated 15th July, 2002 on the above noted subject. 2. The cut-off date for the preparation and approval of annual budgets of the District/City District Governments, viz; 31st July, 2002, prescribed in terms of Section 112(4) of the Punjab Local Government (Fifth Amendment), Ordinance, 2002 having expired, the actions as envisaged in Paras 2(i)(d) and (f) of this departments letter referred to above were required to be completed immediately thereafter. 3. Given the fact that the requisite steps are yet to be completed, provisional payments of salary for the months of June and July 2002 to the staff out of erstwhile Local Fund had to be allowed vide LG&RDs departments Notification No. SOV(LG)5-3/2001, dated 29th July, 2002. 4. In order to obviate the aforestated position, it is to request you to kindly complete the following steps urgently: (a) The approved schedule of establishments of the staff of the District/City District Governments, previously paid out of the Local Fund, may immediately be communicated respectively to the Accountant General, Punjab/District Accounts Officer concerned. A copy of such schedule may also be sent to the Finance Department for scrutiny and certification. The aggregate cash balance of Local Fund in each account of the District/City District Government, along with details (reconciled/ certified bank statements), may be sent to this department. ---------No. FDSR.I-9-3/86 GOVERNMENT OF THE PUNJAB
(b)
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Finance Department
FINANCE DEPARTMENT Dated Lahore, the 9th August, 2002 Subject: Sir, I am directed to refer to this Departments circular letter No.EDSR-1-9-3/86, dated 20-07-1988 and to say that Governor of the Punjab has been pleased to grant Special Science-& Technology Allowance to Ph.D. degree holders working in R&D Organizations, Universities and Science 81 Technology Institutions/Centres w.e.f. 1-72001 in the subjects mentioned below subject to the criteria as mentioned (a to c) below:(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv) (xv) (xvi) (xvii) (xviii) (a) (b) (c) Agriculture. Animal Science/Veterinary. Biology. Biotechnology. Chemistry. Computer Science / Engineering Telecommunication. Electronics. Engineering. Food science & Technology. Geology. Material, Science/Metallurgy. Mathematics. Medical Science. Meteorology. Qcean Science. Pharmaceutical. Physics. Space Science. GRANT OF SCIENCE AND TECHNOLOGY ALLOWANCE TO PH.D. DEGREE HOLDERS
Information
Technology/
Scientists having Ph.D. degree in the relevant field and at least 5 years postdoctoral research experience in the relevant field. Research should be supported with tangible proof to be determined by the Pakistan Council for Science and Technology. Those Scientists who are working on administrative posts and are not actively engaged in research shall not be entitled to receive this allowance.
2. The rate of Special S&T Allowance would be Rs.5000/- P.M. and all those who shall receive this allowance on account of Ph.D. degree in specified subjects, shall cease to receive Ph.D. Allowance i.e. Rs.1500/-P.M. drawn by them presently. ---------No. IT(FD)3-4/2002 GOVERNMENT OF THE PUNJAB
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FINANCE DEPARTMENT Dated Lahore, the August 10, 2002 Subject: DISBURSEMENT OF SALARIES/OTHER EXPENDITURES OF ESTABLISHMENTS PERTAINING TO ERSTWHILE LOCAL FUND.
Kindly refer to the subject noted above. 2. Certain District Accounts Officers have sought clarifications regarding the mode and manner of submission of claims, and their disbursements out of DISTRICT FUND, specially in relation to the establishments previously paid out of the Local Fund. 3. It is accordingly clarified as below: (a) Disbursements of salaries and contingent expenditures of all establishments of district / city district governments previously charged to the defunct Local Fund, shall w.e.f. July 1, 2002 be done in the form and manner as applicable to the devolved departments of the district /city district governments. The salaries and contingent expenditures of all departments of the district / city district governments, including those charged to the erstwhile Local Fund, shall only be payable from the respective SBP/NBP branch located at district headquarters, regardless of the fact whether such offices/ establishments are located at district headquarters or not. ---------No. PS/FS/08-10/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 10th August, 2002 Subject: MONTHLY RELEASE GOVERNMENT OF FUNDS BY THE PROVINCIAL
(b)
In terms of PLGO 2001 (as amended), monthly release of funds by the Provincial government to the Local Governments is required to be made directly to the Local Governments concerned. In order to facilitate the Finance Department to place moneys directly in the accounts of the Local Governments, it is requested that the account numbers of the TMAs and the Union Administrations in your District may kindly be communicated to the Finance Department on a MOST URGENT basis. ---------No. IT(FD)3-4/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 12th August, 2002 Subject: LOCAL GOVT. FINANCE SYSTEM -- EFFECTIVE JULY 1, 2002
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Finance Department
Kindly refer to this departments letter of even number dated 15th July, 2002, on the above cited subject. 2. In partial modification of sub-para 2(ii) (a) of the afore-stated letter, the last sentence occurring in lines four and five of the said sub-para may be ab-initio substituted as follows: Such accounts shall be maintained in the Bank of Punjab/ National Bank of Pakistan by the respective TMA. ----------No. IT(FD) 3-1/93(Misc.)Vol-lV GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 12th August, 2002 Subject: PWD CHEQUES ISSUED BY PROVINCIAL WORKS DIVISIONS FOR PAYMENT ON OR BEFORE 29TH JUNE 2002 - REVALIDATION OF UNCASHED PWD CHEQUES
Sir, I am directed to refer to the subject cited above, and to state that it has been brought to the notice of the Finance Department that certain contractors of Public Works Department failed to draw payments through PWD Cheques pertaining to the financial year 2001-2002, issued by the respective divisional / sub-divisional officers of the Provincial Works Divisions on or before 29th June, 2002 due to their belated presentation to the respective DAO/TO for authorization, or to the State Bank of Pakistan/National Bank of Pakistan for encashment. 2. The above position has essentially emerged due to the fact that the concerned divisional/sub-divisional officers of the Provincial Works Divisions have once again failed to ensure timely clearance of such liabilities against the government in accordance with the deadlines inter-ana prescribed by the Finance department for the issuance of PWD Cheques vide letter No. IT(FD)3-1/95, dated 25th March, 1997, duly reiterated to ail Administrative Secretaries from time to time. This lapse on the part of the divisional/subdivisional officers of the Provincial Works Divisions has resulted in undue inconvenience to the payees who are now coming up with requests to the Finance department for the revalidation of such un-cashed PWD cheques relating to the Provincial Government. 3. Therefore, considering the legal aspect of the issue, as well as to alleviate the difficulties of the contractors, it has been decided to prescribe the following procedure for the revalidation of PWD Cheques, pertaining to the financial year, 2001-2002 which were validly issued by the Provincial Works Divisions in the prescribed manner, on or before 29th June, 2002, and were either duly authorized for payments by the respective DAOs/TOs or could not be so authorised, and therefore, remained encashed, through bank clearance, by the payees from the respective SBP/NBP branch upto 29th June, 2002.
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4. Requests for revalidation of PWD Cheques, as aforementioned shall be considered on case to case basis on the recommendation of the respective Administrative departments. While forwarding such cases to Finance Department, the AD would also be required to ascertain reasons and to fix responsibilities for the belated issuance of cheques by the concerned djvisional / sub-divisional officers, of Provincial Works Divisions in contravention of the time limits fixed by the Finance Department, and notwithstanding subsequent relaxation granted by it. An attested photocopy of uncashed PWD Cheque (both obverse & reverse) shall also be sent to ascertain its bonafides, as well as the fact as to whether it was authorized or otherwise, by the concerned DAO/TO upto 29th June, 2002. 5. The requests for revalidation shall be further subject to the following conditions;(a) that PWD cheques, as detailed above were validity issued by the concerned divisional/sub-divisional officer of the Provincial Works Divisions on or before 29th June, 2002, in discharge of accrued liability; that these cheque/cheques were duly presented to the respective DAO/TO on or before 29th June, 2002, in the prescribed manner, and were authorized for payment at the respective SBP/NBP branch. In case the cheques could not be got authorised, as aforementioned, the reason(s) for the same may be indicated; that the amount of each cheque, after it's issuance, had been debited to the respective budgetary allotment of the scheme/work of the provincial government for the financial year 2001-2002. that the expenditure corresponding to amount of each cheque had been entered and booked in the cash book of the division in the respective date, falling on or before 29-06-2002 and that the cash book stands closed on 2906-2002, duly verified thereafter by an authorized representative of the Director General Audit (Works), Lahore, as prescribed; that the serial number of the cheque (including the last cheque) precedes the number of the last cheque issued by the divisional/sub-divisional officer of the Provincial Works Divisions on or before 29-06-2002 and communicated to the Director Genera! Audit (Works), Lahore, on 29-06-2002 telegraphically in the prescribed manner; The above policy shall only be applicable to PWD Cheques issued by the Provincial Works Divisions pertaining to financial year, 2001-2002. The re-issuance of cheques in the aforesaid manner would not be admissible in case of self-cheques issued on or before 29-6-2002.
(b)
(c) (d)
(e)
Note: (i) (ii)
(iii) The revalidation shall not be applicable in case of payment of arrears of electricity dues to WAPDA as stipulated in FD's policy instructions No. SO(PD)/1 -1/94-95, dated 20th July, 1998. 6. All uncashed PWD Cheques pertaining to financial years, prior to 2001-2002, having remained unpaid for more than one year as on 30th June 2002 shall not be RE VALIDATED. Such cheques shall be cancelled by the respective divisional/sub-
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Finance Department
divisional officer and their amounts WRITTEN-BACK as prescribed under Rule 2.17 of PFR Vol-I, read with Article 262 of Account Code Vol-III Thereafter, they may come up with a request to the F.D. for allocation of fresh funds (GROSS AMOUNT OF UNPAID CHEQUE) through the respective Administrative Department in the prescribed manner. 7. NOTE: THESE INSTRUCTIONS ARE NOT APPLICABLE TO PWD CHEQUES OF DISTRICT GOVERNMENT OR THE TEHSIL /TOWN MUNICIPAL ADMINISTRATIONS ISSUED DURING THE FINANCIAL YEAR 2001-2002. SEPARATE INSTRUCTIONS ARE BEING ISSUED FOR THEM. ---------No. IT(FD)3-4/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 15th August, 2002 Subject: PRE-AUDIT AND ACCOUNTING FUNCTIONS OF WORKS AND SERVICES AND FOREST DEPARTMENTS OF DISTRICT GOVERNMENTS
Kindly refer to the subject noted above. 2. In pursuance of Section 114(3)(a) and (c) of the Punjab Local Government (Fifth Amendment) Ordinance, 2002, the maintenance of accounts and performance of pre-audit functions of each District Government in relation to the District Fund Account No. IV have been entrusted to the respective District Accounts Officer. Consequently, the preaudit and accounting procedures as applicable in the offices of the EDO (Works & Services) and District Officer Forest up to 29th June, 2002 shall no longer be admissible in the District Governments w.e.f. 1-7-2002. 3. The following procedural arrangements are accordingly prescribed for the pre-audit and accounting functions of the Works and Services, and Forest departments of the District Governments. Prior consultation with the LG&RD Department, the Accountant General, Punjab and the Controller General of Accounts has been made in this regard: WORKS AND SERVICES DEPARTMENT (a) The post of Divisional Accounts Officer, along with ancillary staff presently located in the offices of the District Officers (Buildings) and (Roads) under EDO (W&S) in the District Governments shall with immediate effect be relocated and placed under the administrative control of the respective District Accounts Officer. The nomenclature of the post after its relocation in the aforesaid manner shall be renamed as Assistant Accounts Officer (Works & Services). A new section with the nomenclature Works & Services Section would be created in the District Accounts Office to deal with the new assignment.
(b) (c)
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(d)
All claims of the office of the D.Os(Buildings) & (Roads) of the District Governments shall be prepared by the accounts branch of the said offices in accordance with the existing Rules and Procedure, and submitted to the respective District Account Office for pre-audit and issuance of cheque in the prescribed manner. The new cheque books for the purpose of pre-audited payments of the Works and Services department are under print. Therefore, the existing PWD cheque books shall be used by stamping them with the words PRE-AUDIT CHEQUES OF WORKS & SERVICES DEPARTMENT - ACCOUNT NO. IV All unused PWD cheque books, presently available with the offices of the D.Os (Buildings) & (Roads) shall be surrendered to the concerned District Accounts Officer after reconciliation of the used/un-used cheques. Till such time, a detailed accounting procedure is prescribed by the Controller General of Accounts, for the aforestated functions of the District Governments, the existing pre-audit and accounting procedure as applicable to the Public Works Division of the Provincial Government, as further detailed in Controller General of Accounts letter No. 169-CGA/DisttGovt/2001, dated 11-5-2002, circulated by the FD vide No. IT (FD) 34/2001.Vol-l (B) dated 29-5-2002 shall remain applicable to the Works & Service Department of District Governments till further orders. The drawing authority for the issuance of PWD cheques as hithertofore exercised by the Divisional Offices or other Public Works Officers, who were so authorized by the DG Accounts (Works) under Rule 4.87 of the Punjab Subsidiary Treasury Rules, shall with immediate effect be exercised by the District Accounts Officer under Section 114(3)(a)&(c) of the Punjab Local Government (Fifth Amendment) Ordinance, 2002.
(e)
(f)
4.
(i)
(ii)
FOREST DEPARTMENT 5. The pre-audit and accounting functions of the devolved departments of the Forest department shall also with effect from 1st July, 2002 be performed by the respective District Accounts Officer: (a) Till such time that a detailed pre-audit and accounting procedure is prescribed by the Controller General of Accounts, the existing Rules and procedures as applicable to pre-devolved set-ups of the Forest Department shall remain applicable for the purpose of pre-audit and accounting of the devolved set-ups in the District Government. The instructions issued by the CGA vide No. 169-CGA/Distt-Govt./2001, dated 11-5-2002, reiterated by FD vide No. IT (FD) 3-1/2001.Vol-l (B), dated 29-5-2002 may also be kept in view. (b) The Forest department cheque books available with the respective District Officer (Forest) shall be surrendered to the respective DAO, after due reconciliation of the used / unused cheques.
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Finance Department
(c)
Till a new section is established in the DAOs for the purpose of the aforesaid assignment, the pre-audit and accounting work shall be performed by the Works & Services Section in the District Accounts Office. The payment of salaries, drawn / paid through Forest Department cheques, under the existing procedure, shall also be pre-audited by the DAOs. The concerned District Officer (Forest) shall provide a verified schedule of establishment to the concerned DAO for future payments. ---------No. IT(FD) 3-4/2001-Vol-I GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 24th August, 2002
(d)
Subject
MANAGEMENT OF SUB-TREASURIES IN THE PUNJAB
Kindly refer to the subject noted above. 2. In accordance with the provision of Section 114 (l)(b) of the Punjab Local Government Ordinance, 2001 the Tehsil Provincial Accounts were to be maintained by the Tehsil Accounts Officers (TAO) to be notified by the Government. 3. The Accountant General, Punjab, however, issued orders regarding posting of TAOs, through an interim arrangement, which remained effective during the period of transition ending 30th June. Consequently, the orders issued by the AG (Pb) were withdrawn vide his office letter No. Admn.l /Tehsil/Town/5901, dated 07-08-2002. 4. In order to give effect to the provisions of Section 107(1) read with Section 114(3) (b) & (d), of the Punjab Local Government (Fifth Amendment) Ordinance 2002 effective July 01, 2002, the appointment of Tehsil/Town Accounts Officers would be notified by the LG&RD Department for the performance of pre-audit and accounting functions in relation to the Tehsil/Town Local Fund. Accordingly, the management of Sub-Treasuries shall be conducted by the Sub-Treasury Officers (ex-officio Tehsildars) in accordance with provision of Rule 5 of the Punjab Treasury Rules, read with the Rules/Procedures laid down in the Punjab Sub-Treasury Manual. 5. It is accordingly directed that the charge and management of the Sub-Treasuries may immediately be taken over by the Sub-Treasury Officers, in the prescribed manner, from the Tehsil/Town Accounts Officers appointed by the AG (Pb), since withdrawn. The District Accounts Officer, shall conduct a special inspection of the respective SubTreasury Office for ensuring that the management of respective Sub-Treasury Office during the period of transition ending 30th June 2002 had been carried out in accordance with the prescribed Rules and Procedures, beside, undertaking a detailed verification of stocks of stamps and valuables in the prescribed manner. ----------
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No. IT (FD) 3-4/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 26th August, 2002 Subject: LOCAL GOVERNMENT FINANCE SYSTEM - EFFECTIVE JULY 1 2002 -SCHEDULES OF ESTABLISHMENTS
Kindly refer to this departments letter of even No. dated 15th July 2002 on the above cited subject. 2. Your kind attention is also invited to the instructions given in the one-day Seminar held at Alhamra on 27th July, 2002 whereby you were requested to finalize your respective schedules of establishments, clearly indicating the staff of the provincial establishment working for you, and such staff which was previously paid out of the Local Fund. The latter to enable the Accountant General (Punjab)/DAOs to ensure smooth payment of salaries to the staff of erstwhile local councils. However, despite issuance of a reminder dated 8.8.2002, the exercise is not yet complete, with the result that certain employees of the District Governments/ City District Governments could not receive their monthly salaries, notwithstanding permission for provincial payment of salaries out of erstwhile Local Fund by the LG&RD Department. 3. Besides, due to the variation in the number of provincial posts communicated to you by the Finance Department in your respective budgets, and the actual number of posts as existing on ground, certain devolved staff working in the District/City District Governments may also be facing problems in the payment of their salaries. 4. Since the preparation of the schedules of establishments may not be finalized by the months end, it has been decided to allow provisional payment of salaries to both categories of employees of District/City District Governments for the month of August, 2002 by the Accountant General (Pb)/respective DAOs in the prescribed manner. 5. Meanwhile, it is requested that the schedules of establishments may kindly be prepared/reconciled respectively regarding the employees previously paid from the Local Fund and those borne on the strength of the District /City District Governments. ---------No. PS/FS/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 27th August, 2002 Subject: IMPLEMENTATION OF LOCAL GOVERNMENT SYSTEM 2001-2002 FOLLOW UP ACTION. FINANCE
Kindly refer to the subject noted above.
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Finance Department
2. From 15th of July, 2002, onwards, the Finance Department has been periodically issuing instructions and guidelines (detailed as Nos. even dated 15.07.02, 15.07.02, 16.07.02, 22.07.02, 22.0.02, 29.07.02, 2.8.02, 2.8.02, and Nos. Ps(DS)/B/1-3/02 dated 2.8.02, 8.8.02, 10,8,02, and 15.8.02) to facilitate the switch-over to Local Government Finance System 2001-2002 (as prescribed in Punjab Local Government (Fifth Amendment) Ordinance, 2002. 3. In order to obtain a feed-back on the actions taken by the District Governments, in pursuance of the instructions referred to above, a Check List is annexed which may be filled in and dispatched to the Finance Department at any of the following E-mail addresses: (i) gop_fd@hotmail.com (ii) fd_gop@yahoo.com (This E-mail address may also be used for all references to the Finance Department.) 4. The difficulties, being faced by the District Government, in the discharge of dayto-day functioning and delivery of services to the public, may continually be identified and communicated through the said E-mail address. 5. For any emergent query on Finance, Accounts and Audit, you are requested directly contact any of the following resource persons in the Finance Department: (i) Mr. Muhammad Zubair, CIOT, FD, Telephone No. 9211093 (ii) Mr. Rab Nawaz, Director, Local Fund Audit, Tel. No. 9212533 6. For all other matters, you may contact your focal officers in the Finance Department as per list attached. ---------CHECK LIST FOR DISTRICT GOVERNMENTS/DCOs (i) Have you closed the District Local Fund Accounts after due closing audit and funds transferred to Account No.IV of the District Government? Have you made operative the non-chequeing accounts for collection/deposits of local taxes? If yes, are you transferring the aggregate amounts from local tax deposit accounts to Account No.IV each month? Have the services of Divisional Accounts Officer of D.G. (Accounts) Works Department been physically placed under the charge of District Accounts Officers? Have you got approved your Schedule of Establishment and transmitted it to F.D. for confirmation? YES YES YES NO NO NO
(ii) (iii)
(iv)
YES
NO
(v)
YES
NO
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(vi)
Have you transferred the resources of TMAs routed through District Governments in July & August 2002 to the Local Fund Account of respective TMA? Have you transferred the resources of U.As placed in your PLA Accounts to the Local Fund Account of respective U.A?
YES
NO
(vii)
YES
NO
(viii) Are you monitoring the Cash Balance of your District Government, on a daily basis, with the State Bank NBP? (ix) Have you internalized the instructions/guidelines issued periodically by the Finance Department since 15th July, 2002? Are you still, facing any difficulty in the operation and utilization of the budget of your District Government despite the issuance of guidelines at (xi) above? If yes, kindly specify.
YES
NO
YES
NO
(x)
YES
NO
(xi)
FOCAL PERSONS FOR DISTRICTS MENTIONED AGAINST EACH (Reference Para 6) Sr. No 1. 2. 3. 4. 5. 6. 7. 8. Name of Focal Person Designation DS(AB-I) DS(AB-II) DS(LG) DS(LA&T) DS(M) DS(Budget) SO(W&M) District Assigned Rawalpindi / Attock / Jhelum / Chakwal Sargodha / Mianwali / Bakhar / Khushab Lahore / Kasur / Sheikhupura / Okara Gujranwala/Sialkot/ Narowal/Gujrat/Hafiz Abad/ Mandi Baha-ud-Din Multan/Sahiwal/ Pakpattan Sharif/ Vehari/ Lodhran/ Khanewal Faisalabad/T.T. Singh/ Jhang D.G. Khan/M. Garh/ Rajan Pur/ Layyah Bahawalpur/ B. Nagar/ Rahim Yar Khan
Mr. Abdullah Sumbal Mr. Muzaffar Ahmad Mr. Muhammad Mushtaq Mr. Muhammad Zubair Mr. Rab Nawaz Ch. Muhammad Arshad Mr. Bashir Ahmed Sabir
Mr. Mehboob-ul-Haq Hamdani SO(Tax)
No. IT(FD)3-4/2002 GOVERNMENT OF THE PUNJAB
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Finance Department
FINANCE DEPARTMENT Dated Lahore, the 27th August, 2002 Subject: LOCAL GOVERNMENT FINANCE SYSTEM - EFFECTIVE JULY 1, 2002.
Kindly refer to this departments letter of even No. dated 15th July, 2002 on the above cited subject. 2. Various issues reported by the Local Governments and District Accounts Officers, vis-a-vis the implementation of financial provisions of the Punjab Local Government (Fifth Amendment) Ordinance, 2002, and other related factors have been examined by the Finance Department in consultation with the Controller General of Accounts (CGA), the Accountant General, Punjab, and the Director General, Accounts (Works). 3. Accordingly, the following procedures are prescribed, and clarifications made respectively: (i) TRANSFER OF LOCAL FUND BALANCES TO DISTRICT FUND As envisaged in sub-paras 2(i)(c) and (f) of this departments letter under reference, all balances of erstwhile Local Fund are required to be transferred to the respective District Fund in the manner prescribed therein. Such balances may accordingly be credited immediately to the following Head of Account approved by the CGA: DISTRICT FUND (ACCOUNT NO. IV) 1000000 1300000 1390000 1391000 1391811 (ii) Non-Tax Receipts Miscellaneous Receipts Others Other (NES) District Government Receipts from Local Fund
DEDUCTIONS FROM SALARIES OF EMPLOYEES OF DISTRICT GOVERNMENT All deductions/recoveries from the salaries of the employees of the District Governments due on account of Income Tax, G.P. Fund, Benevolent Fund, Group Insurance, house rent, and excess drawal of pay and allowances, if any, shall be effected/accounted for in the following manner: (a) Income tax deductions from salaries of employees charged to District Fund-Account No.IV shall be made, at source, in the same manner as done for provincial government employees in Account No. 1. The aggregate deductions effected during a month shall be transfer credited, the following month, by the concerned DAO/AG(Punjab) to the respective Income Tax Commissioner, through a pre-audit cheque, also providing therewith the details of such deductions. Till such time
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that the pre-audit cheque system is formally introduced in the DAOs, such transfers shall be done through bills drawn by the payee. The following directions contained in Foot Note-4 in the Public Account .of the Chart of Classification may also be kept in view: Income Tax deducted at source from the salaries of the employees and from the bills of contractors/suppliers are credited to the respective head during the month in a separate register. On close of monthly accounts, the total amount deducted is paid to the concerned Commissioner Income Tax through cheque, by debiting this head, for deposit in the Federal Govt. Accounts. (b) The deductions on account of G.P. Fund, Benevolent Fund and Group Insurance shall also be made in the same manner as described in the para 4(a) above. After compiling the monthly accounts, the aggregate monthly deductions as aforestated shall be separately creditable/adjustable as respective receipts in the Public Account of the Province (Account No. 1). The DAO/AG Punjab, shall issue separate crossed cheques, debitable to District Fund-A/C No.IV per contra-credit to the Public Account of the province. Till such time the pre-audit cheque system is introduced in DAOs, cash transfers, as above, shall be done by respective DAOs through an advice to the State Bank of Pakistan/ National Bank of Pakistan. (c) Deductions on account of house-rent and excess drawal of salaries and allowances shall be a creditable /adjustable in Provincial Account No. 1. The DAO / AG(Punjab) shall mutatis-mutandis proceed in the manner described in the Sub-para-II(b) above.
The accounting treatment required for the aforesaid transactions shall be prescribed by the CGA in due course. (iii) SALARIES OF DISTRICT GOVERNMENT EMPLOYEES FOR THE MONTH OF JUNE 2002 As per the provision of Rule 18.15(a) of PFR Vol-1 the establishment charges for the month of June are debitable to the budget of the next financial year. Accordingly, the salaries of the staff of District Governments for June 2002, are debitable to the respective budgets (f.y. 2002-03) under District Fund-Account No. IV. However, where such salaries have been debited to Provincial Account No.1, necessary adjustments shall be made by the Accountant General, Punjab, under intimation to the Finance Department. (iv) PRE-AUDIT AND ACCOUNTING FUNCTIONS OF THE OFFICES OF EDOs (WORKS & SERVICES) AND D.O (FOREST) OF DISTRICT GOVERNMENTS
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(a)
The pre-audit and accounting functions of the aforesaid offices of the District Governments are to be performed in accordance with the arrangements notified vide this departments letter of even No. dated 15th August 2002, and the posting orders issued by the office of the Director General, Accounts (Works). However, where physical relocation of staff in the prescribed manner is not immediately possible, the Divisional Accounts Officers now Assistant Accounts Officers (W&S) may continue to discharge their functions in their erstwhile offices for the time being. They shall nevertheless work under the administrative control of the respective DAO/AG(Punjab), as already advised vide this departments letter of 15th August, 2002.
(b)
(v)
PROCEDURE FOR REFUND OF SECURITY OF CONTRACTORS OUT OF THE PUBLIC ACCOUNT OF THE PROVINCE Up to 30th June, 2002, securities of contractors were being, deducted and placed in the Public Account of the Province (A/C No. 1). These deferred liabilities shall be discharged through refunds, initially from the respective District Fund Account No-IV. The concerned District Officer (Buildings/Roads) shall for this purpose process each case of refund in the manner prescribed under the existing rules and procedures, meanwhile ensuring availability of credit balance in the schedule of deposits in Account No. 1, and indicating /certifying relevant details in the annexed proforma. The Assistant Accounts Officer (W&S) shall pre-audit the claims in the prescribed manner, and put up to the DAO/AG(Punjab) for authorization / issuance of cheque. At the time of pre-audit/authorization of refund of security, a note to this effect shall be recorded against the specific item outstanding in the schedule of deposits of the defunct provincial works division under the signatures of the AAO/DAO to obviate duplicate payment. The provincial government shall subsequently provide equivalent resource against payment of the securities, as above. For this purpose the DAO/AG(Punjab) shall provide certified details of such payments to the Finance Department on monthly basis.
(vi)
DEDUCTION OF SECURITIES OF CONTRACTORS. The deduction of securities from contractors required to be effected by the D.O (Buildings / Roads) shall be done in accordance with the existing rules and procedure on the subject. Such securities shall, w.e.f. 01-07-2002 be placed under the relevant head of account in the Public Account of the District Government in Account No.IV.
(vi)
REFUND OF SECURITIES OF CONTRACTORS RENDERING WORKS-IN TMAs The procedure as prescribed for the district government shall mutatismutandis apply to the refund of securities to contractors who have executed works for the PHE Department up to 30.6.2002, provided the Executive
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Engineer, PHE operated respective budgetary allocations made in Account No. I (N.F.). In such cases the Tehsil/ Town Officer (I&S) shall verify the claims, and send it to the respective Tehsil Accounts Officer (TAO) for the purpose of refund in the manner described in para(v) above. The refund shall be initially paid out of the respective Tehsil / Town Local Fund. The provincial government shall subsequently reimburse the amount equivalent to the refund of securities, initially deducted and placed in the Public Account of the province-A/C No. I (N.F.). For this purpose the TAOs shall provide details of such payments to the Finance Department on monthly basis. (vii) DEPOSIT WORKS Instructions regarding the operation of Deposits Works to be executed by the District Governments shall be issued respectively. (viii) CLOSING AUDIT OF PUBLIC WORKS DIVISIONS It has also been decided to undertake a closing audit of the all Public Works Divisions which have now been devolved/amalgamated to form the offices of the District Officers (Buildings/Roads) in the city District/City District governments, and Tehsil Officers (I&S) in the Tehsil/ Town Municipal Administrations. In this regard, the Finance Department would separately take up the matter with the office of the Director General Audit (Works) for formulating a modus-operandi, and a schedule for such an audit. (ix) CUSTODY OF PUBLIC WORKS RECORD The District Officer (Buildings/Roads) of the respective District/ City District Government shall be the successor-in-interest and the custodian of all records of the pre-devolution works divisions under the Communications & Works department. Likewise, the Tehsil/ Town Officers (I&S) posted in the TMAs, located at district headquarters, shall be the successor-in-interest and custodian of all records of the respective PHE Divisions, now devolved to the Tehsil/ Town Municipal Administrations. Necessary actions may accordingly be taken in this regard. (x) OPENING OF BANK ACCOUNTS OF DRAWING DISBURSING OFFICERS OF DISTRICT GOVERNMENTS. (a) AND
With the establishment of District Fund, the Cash Management of District Governments is restricted to the respective branch of SBP/NBP at the District headquarters only. Therefore, the payments to the offices of the district governments located at places other than district headquarters shall have to be made through such branches only. However, in order to obviate Drawing and Disbursing Officers (DDOs) from carrying cash from the SBP/NBP of district headquarter, it has been decided to grant permission under Rule 9(1) of the Punjab Treasury Rule for opening of a current bank account (by designation) in the nearest branch of National Bank of Pakistan, located close to
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their respective offices. The account number of such bank accounts shall be notified to the respective DAO/AG(Pb.) as soon as these are opened. (b) The DDOs shall deposit the crossed pre-audit cheques issued in their favour by the Accountant General (Punjab)/District Accounts Officers for transfer of money in the respective account. However, till such time the pre-audit cheques are not introduced in the DAOs, the DAOs shall authorize bills payees account only for deposit into the bank account of the DDOs for transfer credit and encashment. The DDO shall draw amounts from their respective bank accounts for the purpose of disbursement under the Rules. All DDOs shall maintain a pass-book for the accounts operated with the bank so that all transactions are regularly entered and updated for the purpose of reconciliation and monitoring. The expenditure on the opening of bank accounts shall be met out of the respective contingent budget of the DDO. ----------
(c) (d)
(e)
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No.PS/DS(B)1-3/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 28th August, 2002 Subject PAYMENT OF SALARIES TO THE EMPLOYEES OF PHE, H&PP AND LG & RD DEPARTMENTS DEVOLVED TO TMAs
Kindly refer to this departments letter of even number dated 2.8.2002 on the subject cited above, where under provisional payment of salary to the employees of the Public Health Engineering, Housing and Local Government Departments were allowed provisionally for the months of June and July, 2002. 2. Meanwhile, the Finance Department has released the requisite funds to the TMAs vide this departments letter No. SO Exp. (LG)1-9/2001(P) dated 19.08.2002 for payment of salaries to the aforementioned staff. 3. Accordingly, as far as the payment of salaries from August 2002 onward is concerned, the respective TMAs shall pay the same to the said staff in accordance with the schedule of establishment. ---------No. IT(FD) 3-1/95(Misc.)Vol-IV GOVERNMENT OF THE PUNJAB, FINANCE DEPARTMENT Dated Lahore, the 29th August, 2002
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Subject: REVALUATION OF PUBLIC WORKS CHEQUES ISSUED BY DISTRICT OFFICERS (D&R) OF DISTRICT / CITY DISTRICT GOVERNMENTS AND TEHSIL / TOWN OFFICERS (I&S) OF TEHSIL / TOWN MUNICIPAL ADMINISTRATIONS. Kindly refer to the subject noted above. 2. It has been brought to the notice of the Finance Department that certain contractors executing Public Works for the District /City District Governments and Tehsil/Town Municipal Administrations have failed to draw payments through cheques issued in their favour by the offices of the D.O.(B&R) in the District/City District Governments and T.Os (I&S) in the Tehsil/Town Municipal Administrations on or before 29-6-2002, during the financial year 2001-2002, in discharge of their validly accrued liabilities. This position has essentially emerged due to belated issuance of cheques by the respective authorities. 3. In order to alleviate the aforestated problem, it has been decided to allow revalidation of all cheques of works departments respectively issued by the aforesaid officers of the District/City District Governments and Tehsil/Town Municipal Administrations on or before 29-6-2002 during the financial year 2001-2002, which (i) though validly authorized for payment by the DAO/TO could not be encashed by the payees through bank clearance or (ii) the cheques issued could not be presented to the respective DAO/TO for authorization. 4. The revalidations in case of District /City District Governments shall be done by the respective DAO/AG (Punjab) on the submission of a formal request by the D.O. (B&R) of District/City District Government concerned, along with the original un-cashed cheques(s). Accordingly, a new cheque shall be issued, in the prescribed manner, by the DAO/TO/AG (Punjab) as the case may be, in lieu of the un-drawn / un-cashed cheque(s) issued on or before 29-6-2002, after due scrutiny of the record relating to the original claim. The amount of cheque shall be debitable to the District Fund, Account No.IV against the respective budgets of the District/City District Governments for the financial year 2002-2003. 5. The revalidation of cheques in case of Tehsil/Town Municipal Administrations shall be, done by the respective Tehsil/Town Accounts Officers (TAO) on the submission of a formal request by the respective T.Os (I&S), along with the original un-cashed / undrawn cheques issued on or before 29-6-2002, during the financial year 2001-2002. Accordingly, a new cheque shall be issued, in the prescribed manner, by the TAO in lieu of the under drawn/un-cashed cheque(s) issued on or before 29.6.2002, after due security of the relevant record relating to the original claim. The amount(s) of the cheques shall be debitable to the respective Tehsil/Town Local Fund against the respective budgets for financial year 2002-2003. (a) that the cheques, under reference were validly issued by the concerned DO (B&R) and TO (I&S) of the District / District City Government, and TMA, respectively on or before 29th June, 2002, in discharge of valid accrued liability;
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(b)
that these cheque / cheques were duly presented to the respective DAO/TO on or before 29th June, 2002, in the prescribed manner, and were authorized for payment at the respective SBP/NBP branch. In case the cheques could not be got authorized, as aforementioned, the reason(s) for the same would be indicated; that the amount of each cheque, after its issuance, had been debited to the respective budgetary allotment of the scheme/work of the District/City District Government or the Tehsil/Town Municipal Administration, as the case be, for the financial year 2001-2002; that the expenditure corresponding to amount of each cheque had been entered and booked in the respective cash book of the DO (B&R) or TO (I&S) as the case be, in the respective date, falling on or before 29-06-2002, and that the cash book was closed on 29-06-2002, and duly verified thereafter by an authorized representative of the Director General Audit (Works), Lahore, as prescribed; that the serial number of the respective cheque (including the last cheque) preceded the number, of the last cheque issued by the DO (B&R) and TO (I&S) of the District / City District Government or the Tehsil /Town Municipal Administration, as the case be, on or before 29-06-2002 and communicated to the Director General Audit (Works), Lahore, on 29-062002 telegraphically in the prescribed manner.
(c)
(d)
(e)
Note: (i) The above policy shall only be applicable to PW Cheques issued by the District/City District Governments or the Tehsil/ Town Municipal Administrations, pertaining to financial year, 2001-2002. (ii) The re-issuance of cheques in the aforesaid manner would not be admissible in case of self-cheques issued on or before 29-6-2002.
(iii) The invalidation shall not be applicable in case of payment of arrears of electricity dues to WAPDA as stipulated in FDs policy instructions No. SO(PD)/1-1/94-95, dated 20th July, 1998. 6. The policy regarding revalidation of PWD cheques of the Provincial Works Departments has been issued separately. --------------No. IT(FD)3-4/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 31st August, 2002 Subject: FINANCIAL OPERATIONS OF TEHSIL/TOWN ADMINISTRATIONS IN THE PUNJAB MUNICIPAL
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Kindly refer to this departments letter of even number dated 2nd August, 2002 whereby the pre-audit and accounting functions of the Tehsil/ Town Municipal Administrations were temporarily entrusted to the Punjab Local Fund Audit department, through the existing set-ups of Resident Audit Schemes, up to 31st August, 2002. This interim arrangement was advised to keep the financial operations of TMAs functional. 2. Given the fact that the issue regarding the postings of Tehsil/Town Accounts Officers is under consideration, it has been decided the extend the aforestated arrangement, as prescribed, up to 30th September, 2002. ---------No. TM.I/LG-Plan-2000/2002-03/830-43 OFFICER OF THE ACCOUNTANT GENERAL, PUNJAB, LAHORE. Dated Lahore, the 31st August, 2002 Subject: GUIDELINES FOR PRE-AUDIT &! ACCOUNTING SYSTEM OF WORKS & SERVICES AND FOREST DEPARTMENT OF DISTRICT GOVERNMENT
Reference: No.IT(FD)3-4/2002 dated 15.08.2002 & No.IT(FD)3-4/2002 dated 27.08.2002. Consequent upon introduction of devolved system of accounts in District Governments, the following procedure is prescribed for following by the respective offices: 1. After transfer of services of Divisional Accounts Officers (Works & Services) redesignated as Assistant Accounts Officer (Works & Services) under the control of respective District Accounts Officer/Accountant General Office, they will continue to sit along with their staff already attached with Accounts Branch in the offices of concerned District Officer (Building & Roads) till arrangements of their shifting to District Accounts Office building are finalized. The Assistant Accounts Officer, Works & Services (former Divisional Accounts Officers) will not be under any control of District Officer (Building & Works). 2. The District Officer (Building & Roads) will no more be Cheque Drawing Authority and the District Accounts Officer will henceforth issue cheques in respect of payments and receipts of Works & Services and Forest transactions. Accountant General will notify the signatures of such officer to the banks (State Bank of Pakistan/National Bank of Pakistan). 3. The District Officers (Buildings & Roads) will surrender the un-used cheque books to the respective District Accounts Officer. 4. The District Officer will forward to the concerned Assistant Accounts Officer the contractors bills and other claims in triplicate pertaining to Works & Services under Development Grants viz 24-Civil Works, 25-Communication, 36-Development, 41Roads & Bridges, 42-Govt. Buildings duly verified/certified along with relevant records such as Measurement Books, Contract Agreement, Sanction/Authority or Purchase Order
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(as the case may be), Technically sanctioned estimate etc. After the bills/claims having been pre-audited by the Assistant Accounts Officer (Works & Services) the same will be passed for payment by the District Accounts Officer concerned after due check in accordance with codal rules and standing orders subject to strict financial regularity. It will be ensured by the District Accounts Officers that no expenditure in excess of budget grants is allowed in any circumstances, otherwise they will be personally held responsible for this irregularity. 5. The concerned District Accounts Officer will sign and issue cheque in favour of the contractor/claimant and record necessary entry in the Main Cash Book to be opened and maintained by him in accordance with the instructions contained in Notes printed with Form PWA-I in Account Code Volume-III. He will then complete the voucher, cross the pages of the paid bills in the Measurement Book in red ink and record payment certificate by mentioning reference to Voucher Number and date under dated initials of District Accounts Officer. Thereafter a copy of the completed voucher will be returned by the District Accounts Officer to the concerned District Officer along with the Measurement Book and other records. 6. The District Officer (Buildings & Roads) will also present pay rolls of temporary work charge establishment and other petty claims along with the sanction of the competent authority to the Assistant Accounts Officer concerned, who will apply preaudit checks and submit the same to the District Accounts Officer for authorizing payment. 7. A cheque against the passed pay bills/claims will be issued by the District Accounts Officer in favour of the respective District Officer. In term of Note-7 printed with Form PWA-I in Account Code Volume-Ill such transactions will be treated as Temporary Advance and should be entered in the Cash Book (body column of payment side) in red ink. The concerned District Officer after encashment of cheque will make disbursements to the actual employees/claimants with attestation under dated initials. He will record entries of receipt of cash in lieu of cheque issued by District Accounts Officer and disbursements to actual persons/claimants on Receipt and Payment Sides respectively on actual date of occurrence of transaction in his Main Cash Book to be maintained by him for such transactions as well as for cash receipts, which on realization will immediately be remitted into bank as required under the rules. 8. At the end of month the un-disbursed amount will be treated as Cash Balance until disbursement is actually made to the person concerned. On the first of each month the District Officer will render the account of temporary advance and cash receipts to the District Accounts Officer along with attested copy of Cash Book, paid cash vouchers and receipted challans for incorporation in the monthly account to be compiled and prepared by Assistant Accounts Officer and signed by District Accounts Officer. No fresh temporary advance can be allowed unless the previous one is got adjusted through vouched account to be rendered to the District Accounts Officer within the prescribed period. This will be District Accounts Officers personal responsibility to apply this control.
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9. The claims under head 50000-Community and Services will be submitted to the Office of the Accountant General, Punjab or District Accounts Officer concerned through contingent bill for pre-audit and issue of cheque in favour of the claimant. 10. The bills/claims relating to Part(b) Component of Development budget grants under various heads of accounts of Ex-District Council/Municipal Corporations will also be pre-audited by Assistant Accounts Officer (Works & Services) and passed by District Accounts Officer for payment as prescribed above. 11. The system in vogue for payment of pay and allowances of establishment will continue to be made through Computer Section of Accountant General Punjab and District Accounts Officer. 12. The Executive District Officer (Works & Services) will fix ceiling of POL for each vehicle being maintained by the District Officer (Building or Roads) and convey the same to the District Accounts Officer. 13. Monthly civil accounts will be compiled by the Assistant Accounts Officer (Works & Services) and submitted to Accountant General (AAG, TDH Section) under the signatures of District Accounts Officer/Accounts Officer by 5th day of following month. 14. Under the new financial set up all payments are to be made against cash balances of the respective District Government under Account No. IV, hence no suspense head as such will be operated. 15. Deduction of Securities of Contractors shall be regulated under Para 3 (VI) of Finance Department letter No. IT(FD)3-4/2002, dated 27.08.2002. 16. As required under the rules, the following accounts books/registers with others on the prescribed form will be maintained by the Assistant Accounts Officer (Works & Services) in respect of each District Office (Buildings & Roads): (i) Register of Works. (ii) Contractors Ledger. (iii) Suspense Schedule, if required. (iv) Register of Miscellaneous Sanctions. (v) Register of Fixed charges. (vi) Register of Miscellaneous Recoveries. (vii) Register of Revenue Realized. (viii) Register of Interest bearing Securities. (ix) Register of temporary advances. 17. 18. These instructions may be followed till further orders. This issues with the approval of the Accountant General. ---------No. Exp. (G) 5-4/2001 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 6th September, 2002
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Subject:
SNE FOR THE YEAR 2002-03 IN RESPECT OF DISTRICT GOVERNMENT OFFICES
I am directed to refer to the subject noted above and to state that Audit Copies bearing Nos. SOWII(S&GAD) 2-9/2001, dated 21-7-2002 regarding continuance/creation of various posts of District Governments through SNE 2002-2003 on permanent basis through regular budget under Grant No. 10-GA-01000-Organ of State-01801-District Administration-006-District Coordination Estt., authenticated by the Finance Department are hereby cancelled / withdrawn. ---------No. IT(FD)3-4/2002(A) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 9th September, 2002 Subject: LOCAL GOVT. FINANCE SYSTEM/EFFECTIVE JULY 1, 2002 EXECUTION OF DEPOSIT WORKS BY DISTT: GOVERNMENTS
Kindly refer to this departments letter of even No. dated 27th August, 2002 on the above cited subject. As per para 3 (vii) of the letter under reference, the instructions relating to execution of Deposit Works were to be issued by the Finance Department separately. 2. The matter has accordingly been examined in relation to the operation of District Fund Account No. IV by the District Governments, and it has been decided that DEPOSIT WORKS shall be undertaken by District Officers (Buildings & Roads) in the District Governments in accordance with the existing Policy/Rules, and instructions issued by the Government on the subject from time to time. 3. However, in view of the cash based management of funds by the District Governments, through Account No. IV, the amounts deposited by various agencies (other than a Local Government) for undertaking DEPOSIT WORKS, in the prescribed manner, shall be credited to the Public Account of the respective District Government in Account No.IV under the Head-1-3501005 -Public Works Deposits - District Governments, through bank challans (in triplicate) for cash credit to Account No. IV. A copy of the challan shall be furnished to the respective executing agency for the purpose. 4. The D.O(B&A) shall respectively undertake the execution of works in the prescribed manner, and submit claims against accrued liabilities to the respective DAO / AG(Punjab), for pre-audit and issuance of cheques in the light of the policy contained in Finance Departments letter of even number dated 15.8.2002. The instructions issued by the Accountant General, Punjab vide No. TM-I/LG-Plan-2000-2002-03/830-43, dated 31st August, 2002 shall also apply mutatis-mutandis. ---------No. IT(FD)3-4/2002(B) GOVERNMENT OF THE PUNJAB,
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FINANCE DEPARTMENT Dated Lahore, the 9th September, 2002. Subject: OPERATION OF TEHSIL/TOWN LOCAL FUND.
Kindly refer to the subject noted above. 2. In accordance with the provision of Section 107(1) of the Punjab Local Government (Fifth Amendment) Ordinance, 2002, a Tehsil/Town Local Fund has been established for the financial operations of the Tehsil /Town Municipal Administration respectively. 3. Further, in pursuance of Section 108 ibid, read with, para 2(ii)(a) of this departments letter of even No. dated 15th July, 2002, and letter bearing same number dated 12th August, 2002, the Tehsil/Town Local Fund shall be kept in the National Bank of Pakistan or the Bank of the Punjab. 4. Certain quarters have, meanwhile, observed about the need for negotiating terms and conditions with the said banks for the proper handling of Local Funds of TMAs. It is accordingly clarified that the Tehsil / Town Municipal Administrations being independent entities as BODY CORPORATES shall act as an ordinary customer for the bank. Therefore, it is not necessary to enter into a centralized relationship with the authorized banks. The TMAs shall, however, undertake their financial operations in accordance with the relevant provisions of the PLGO 2001/2002, and the Rules thereunder, notified by the Punjab Local Government & Rural Development Department. ---------No. SO(TT)26-1/86. Pt-III GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 13th September, 2002 Subject: Sir, I am directed to refer to the subject cited above and to enclose a copy of the letter No. 196-CGA/DISTT-Govts/2001, dated 31.8.2002, received from the Controller General of Accounts, for information and necessary compliance. ---------OFFICE OF THE CONTROLLER GENERAL OF ACCOUNTS TAIMUR CHAMBER 10-D WEST BLUE AREA ISLAMABAD DISTRCIT GOVERNMENTS EXPENDITURE
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No. 196-CGA/DISTTGovts/2001 Subject:
Dated 31.08.2002
DISTRICT GOVERNMENTS EXPENDITURE.
In the last meeting of FMC on 24.08.2002 it has transpired that some District Government authorities are sanctioning expenditure against Provincial Government Account-I, although District Fund - Accounts IV for District Government stand opened with effect from 1st July, 2002. 2. I shall be grateful if you could please direct all the DCOs and other concerned district authorities to stop issuing sanction which are in violation of Local Government Ordinance, 2002 which envisages the incurrence of expenditure only from District Fund Account-IV. Non-compliance of instruction will culminate into the wrong preparation of Appropriation Accounts, which will not be acceptable to Auditor General of Pakistan, who is responsible to certify the account of all Governments in Pakistan under the new Ordinance. ---------No. IT(FD)3-4/2002(A) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 23rd September, 2002 Subject: LOCAL GOVERNMENT FINANCE SYSTEM EFFECTIVE JULY 1, 2002 PROCEDURE FOR EXECUTION OF DEPOSIT WORKS BY DISTT: GOVTS. RELATING TO PRE-1ST JULY, 2002 PERIOD.
Kindly refer to this departments letter of even No. dated 9 th September, 2002 on the above cited subject in which the procedure for execution of deposit works by District Governments w.e.f. 1.7.2002 was prescribed. 2. A question has arisen as to the status, and the mode/manner of utilization of funds lying in the books of District Officers (Building & Roads) of the District Governments against Deposit Works under the Head Public Works Deposits - Account No-1, for the works undertaken in hand on or before 30th June, 2002, during the financial year 2001-2002. 3. The matter has accordingly been examined in the Finance Department and it has been decided to prescribe the following procedure in this regard: (a) The unspent balance on account of each deposit work pertaining to respective scheme/project as on 30th June shall be worked out by the District Officer (B&R) as appearing in the respective schedules of deposit. The information, as aforestated, shall be compiled in the following format:
(b)
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DETAILS OF DEPOSIT WORKS OF DISTRICT GOVERNMENT.. AS ON 30th JUNE, 2002. 1 Item No./ Name of Project/ Scheme. (c) 2 Month/year of Origination of Deposit. 3 Total Deposit received up to the close of financial year 2001-2002. 4 Total Expenditure incurred as on 30th June, 2002. 5 6 Unspent Works balance as completed or on 30th On going. June, 2002
The information, as above, shall be certified by the District Officer (B&R), and got reconciled with, and authenticated by the District Accounts Officer/Treasury Officer concerned. The reconciled final figure(s) of unspent balances pertaining to each deposit work shall, after due scrutiny by the Assistant Accounts Officer (W&S), be transfer credited in the prescribed manner, under the Head: 1300000 Misc. Receipt-1390000 Others (NES)-1391000-Others Receipts-1391001-Other Receipts-Unspent Deposits (Works) in Provincial Account No.1 by the concerned District Accounts Officer/Treasury Officer. After the completion of the aforestated steps, a complete statement (showing each deposit work separately), along with a certificate by the DAO/T.O./A.G. Punjab to the effect that the unspent balances have been credited, as advised above, the respective District Officer (B&R) shall be required to approach the Finance Department through the EDO(W&S) of the District Government for the provision of funds, equivalent to the unspent balances as on 30 th June, 2002 against each deposit work, in District Fund-Account No. IV.
(d)
(e)
4. The aforestated actions may be completed by the respective District Governments expeditiously in order to obviate any further discontinuity in the execution of Deposit Works. ---------No. IT(FD) 3-4/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 24th September, 2002 Subject: TRANSFER OF FUNDS FROM TEHSIL/TOWN PROVINCIAL ACCOUNT (DEFUNCT) TO TEHSIL/TOWN LOCAL FUND
Kindly refer to the above noted subject. 2. With the establishment of Tehsil/Town Local Fund in the Tehsil/ Town Municipal Administrations under Section 107 of the Punjab Local Government (Fifth Amendment) Ordinance, 2002 - effective July 1, 2002, the Tehsil /Town Provincial Accounts of TMAs established in the respective National Bank of Pakistan branches stand closed w.e.f. July
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1, 2002 in the manner as advised in para 2(ii)(c) of this departments letter of even No. dated 15th July, 2002. As further stated in para 2(ii)(d) ibid, the reconciled/certified balances (by respective DAO and the NBP) in Tehsil/Town Provincial Accounts of respective TMAs shall form part of the respective Tehsil/Town Local Fund after transfer from the Tehsil /Town Provincial Accounts. 3. The State Bank of Pakistan/National Bank of Pakistan were subsequently advised vide this departments letter bearing No. 1T(FD)3-4/2002(B) dated 27 th July, 2002 for undertaking closure of the respective Tehsil/ Town Provincial Accounts, in the prescribed manner for the purpose of effecting transfer of balance of funds to the Tehsil /Town Local Fund. 4. It is accordingly advised, that after the completion of the aforestated steps the respective Tehsil/Town Municipal Administration may formally approach the concerned District Accounts Office/Treasury Office or the office of the Accountant General, Punjab, as the case may be, with a request jointly signed by the Tehsil/Town Nazim and the TMO, along with the reconciled/certified balances statement, for issuing authority to the concerned branch of the National Bank of Pakistan for transferring the certified balance in the respective Tehsil/ Town Provincial Account (defunct) to the accounts of the Tehsil/Town Local Fund of the TMA opened in a branch of National Bank of Pakistan or the Bank of Punjab as notified. A copy of the request would also be furnished to the Manager National Bank of Pakistan maintaining the Tehsil/Town Provincial Account (defunct). The TMAs shall subsequently intimate the Finance Department about the completion of this step, and the aggregate amount so transferred in the Tehsil /Town Local Fund. ---------No. IT (FD) 3-4/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the October 01, 2002 SubjectFINANCIAL OPERATIONS OF TEHSIL/TOWN ADMINISTRATIONS IN THE PUNJAB MUNICIPAL
Kindly refer to this departments letter of even number dated 31st August 2002, whereby the pre-audit and accounting functions of the Tehsil/Town Municipal Administrations were temporarily entrusted to, the Punjab Local Fund Audit department through the existing set-ups of Resident Audit Schemes upto 30th September, 2002. This interim arrangement was allowed to keep the financial operations of TMAs functional. 2. Since the issue regarding the postings of Tehsil/Town Accounts Officers is yet to be finalized, it has been decided to further extend the aforestated arrangement, as prescribed, upto 31st October, 2002. ---------GOVERNMENT OF THE PUNJAB
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Finance Department
FINANCE DEPARTMENT Dated Lahore, the 18th October, 2002 NOTIFICATION No. FD.SR-I-7-l/82-I. In exercise of the Powers conferred upon him under Section 23 of the Punjab Civil Servants Act, 1974 (VIII of 1974), the Governor of the Punjab is pleased to direct that in the Finance Departments Notification of even number dated 22.11.2001 regarding the amendment in the Punjab (Civil Service) Delegation of Powers Rules, 1983, the sanctioning authority for sanctioning of leave to DISTRICT COORDINATION OFFICERS in the Punjab would the Chief Secretary, Punjab. 2. The Sr. No. (i)(e) of the Finance Departments notification referred to above shall be amended to the extent as mentioned above. ----------
GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 21st October, 2002 NOTIFICATION No. D(FR)11-2/89. The Governor of the Punjab is pleased to delegate the following financial powers to sanction employment of work charged establishment of the Officers of the Irrigation & Power Department against Serial No. 3(b&c) in Part-II, special powers of Irrigation & Power Department (Second Schedule of Delegation of Financial Powers Rules, 1990):Superintending Engineer On salaries upto Rs.4000/- per mensum Executive Engineer On salaries upto Rs.3000/- per mensum Note: These powers would be subject to the condition that: (i) (ii) Provision exists in the sanctioned estimates. The powers is exercised only when the order to commence the work gas been received.
(iii) The monthly wages allowed do not exceed the emoluments including allowances admissible to regular establishment of the same category. ---------No. IT(FD)3-4/2002(P) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 22nd October, 2002
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Subject:
NEW LOCAL GOVERNMENT FINANCE SYSTEM EFFECTIVE JULY 1, 2002 ESTABLISHMENT OF DISTRICT FUND RECEIPTS OF DISTRICT GOVERNMENTS.
Dear Sir, Kindly refer to the correspondence resting with this departments letter of even number dated 27.7.2002 (copy enclosed), advising about the operation of District Fund Account No. IV of the District Governments, w.e.f. 1st July, 2002, in accordance with the Punjab Local Government (Fifth Amendment) Ordinance, 2002. 2. In pursuance of the position stated in para 4(iii) of the aforestated communication, this department issued letter of even number dated 27.8.2002 (copy enclosed), directing the District Governments to inter-alia deposit their receipts in the given head of account for credit to the District Fund - Account No. IV. The District Governments have accordingly started depositing such receipts in the local branch of the State Bank of Pakistan / National Bank of Pakistan in the prescribed manner. Besides, the District Governments are affecting receipts in District Fund-Account No. IV by transfer credit from Provincial Account No. 1 for the purpose of undertaking Deposit works etc. as per the policy contained in F.Ds letter No. IT(FD)3-4/2002(A), dated 9.9.2002 (copy enclosed). 3. However, certain District Governments have reported that the State Bank of Pakistan / National Bank of Pakistan branches, receiving the aforestated deposits, do not afford immediate credit to the cash balance of the respective District Fund, and instead report the aggregate receipts for the day to the State Bank of Pakistan, Karachi, and require an advice therefrom for necessary credit to the cash balance of the District Government concerned. 4. This issue was accordingly examined in this department, and consequently discussed in a meeting held in the Finance Department on 09.10.2002 attended by the Accountant General, Punjab, and the representatives of the State Bank of Pakistan, Lahore and Regional Headquarters, National Bank of Pakistan (East Region) Lahore. It was considered that since the cash management of District Governments in District FundAccount No. IV is regulated centrally through the Central Accounts Section of the State Bank of Pakistan, Karachi, as such the procedure adopted by the State Bank of Pakistan/ National Bank of Pakistan branches while accepting the said receipts of the District Governments was in order. 5. Accordingly, in order to formalize and streamline the system regarding receipts of the District Governments in question the following procedure is prescribed: (i) The transfer of Local Fund balances to District Fund as advised vide para 3(i) of this departments letter No. IT (FD) 3-4/2002 dated 27th August, 2002 shall be got effected by the respective District Government in the branch of the State Bank of Pakistan / National Bank of Pakistan operating the District Fund Account No. IV, in the prescribed manner, and in the head of account as notified vide the said communication.
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Finance Department
(ii)
Likewise the amounts transferred to District Fund-Account No. IV from Provincial Account No. I for the purpose of Deposit Works through Personal Ledger/Assignment Accounts cheques, etc. in the given head of account shall also be accepted by the SBP / NBP branches, as aforestated.
(iii) The State Bank of Pakistan / National Bank of Pakistan shall accept such receipts of the District Governments in the prescribed manner and report the aggregate amount for the day to the State Bank of Pakistan, Karachi, on daily basis. (iv) The Finance Department accordingly authorizes the SBP, Karachi to advise the respective branch of the State Bank of Pakistan / National Bank of Pakistan to afford credit to the cash balance of the respective District Government - Account No. IV against the aforestated receipts to be reflected in the respective date. The advice issued to State Bank of Pakistan / National Bank of Pakistan as per sub-para (iv) above shall also be communicated to the Government of the Punjab, Finance Department, the Accountant General, Punjab/District Accounts Officer and the District Coordination Officer of the respective District Government immediately for monitoring cash flow of each District Government. The aggregate cash balance of the District Government shall accordingly comprise the amounts transferred by the provincial government, plus the local receipts effected, as above.
(v)
(vi)
6. Meanwhile, in order to ensure effective and timely reconciliation of cash balance of the respective District Government, vis-a-vis that obtaining in the books of the SBP, Karachi, it is advised that the local branch of the State Bank of Pakistan/National Bank of Pakistan may carry out reconciliation with the respective District Accounts Officer/the A.G. Punjab on day to day basis as per the procedure outlined by the Controller General of Accounts vide letter No. 47-AC-III/8-38/92 dated 13-12-2000. The daily cash balance position may also accordingly be reported to this department in the prescribed manner. ---------No. IT(FD)3-4/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 28th October, 2002 Subject: LOCAL GOVT. FINANCE SYSTEM - EFFECTIVE JULY 1, 2002
Kindly refer to this departments letter of even number dated 27th August, 2002 on the subject cited above. 2. Certain quarters have inquired as to the efficacy of the countersignatures by the EDO(W&S) of the District/City District Government on the proforma annexed to the
143
circular instructions under reference, containing details of Security Deposits deducted from contractors for the purpose of refund. Para 3(v) refers 3. It is to clarify that the said requirement is not warranted. This action may, therefore, not be stressed while processing the cases or refund of security of contractors, in the prescribed manner. ---------OFFICE OF THE CONTROLLER GENERAL OF ACCOUNTS FBC BUILDING G-5, ISLAMABAD No. 16/DIR(D)/CGA/2002 Subject: Dated 21-10-2002
FORMATION OF A SUB-COMMITTEE UNDER THE CHAIRMANSHIP OF CONTROLLER GENERAL OF ACCOUNTS TO SORT OUT TEETHING PROBLEMS IN ACCOUNTING FUNCTIONS UNDER THE DEVOLUTION PLAN.
A wrap-up meeting of World Banks PIFRA Mission for strengthen Accounting and Reporting (PSTAR) was held in the ministry of Finance under the chairmanship of Secretary General, Ministry of Finance on September 19, 2002. 2. In accordance with the minutes of the meeting, a Sub-Committee under the chairmanship of Controller General of Accounts is being constituted to sort out, teething problems in accounting functions under the Devolution Plan. Composition of the subcommittee is as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. Controller General of Accounts Representative, Finance Division Representative, NRB Secretary Finance, Govt. of Punjab Secretary Finance, Govt. of Sindh Secretary Finance, Govt. of NWFP Secretary Finance, Govt. of Balochistan All Provincial Accountant Generals DG Accounts CGA Office ---------Chairman Member Member Member Member Member Member Member Secretary
No. IT(FD)3-4/2002 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 1st November, 2002 Subject: FINANCIAL OPERATIONS OF TEHSIL ADMINISTRATIONS IN THE PUNJAB /TOWN MUNICIPAL
Kindly refer to this departments letter of even number dated 1 st October, 2002, whereby the pre-audit and accounting functions of the Tehsil/ Town Municipal
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Finance Department
Administrations were temporarily entrusted to the Punjab Local Fund Audit department through the existing set-ups of Resident Audit Schemes up to 31st October, 2002. This interim arrangement was allowed to keep the financial operations of TMAs functional. 2. Since the issue regarding the postings of Tehsil/Town Accounts Officers is still under consideration, it has been decided to further extend the aforestated arrangement, as prescribed, up to 30th November, 2002. ---------No. IT(FD)3-4/2002/Vol-II GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 1st November, 2002 Subject: NEW LOCAL GOVERNMENT FINANCE SYSTEM REFUND OF SECURITIES TO CONTRACTORS OF WORKS AND SERVICES DEPARTMENTS OF THE DISTRICT GOVERNMENTS RELATING TO PRE-1st JULY, 2002 PERIOD Kindly refer to the subject cited above. 2. As per the existing policy on the subject, the contractors executing works on behalf of the Public Works Departments, can request for the conversion of the security deposits into a recognized form of interest bearing securities at the cost of the contractor in terms of Clause 49 of the agreement form for execution of work. Accordingly, such securities could be deposited in a designated bank, as nominated by the contractor, and pledged in the name of the Executive Engineer concerned, since designated as the District Officer (Building & Roads). These securities were subsequently refunded to the contractors in the prescribed manner under the Rules. 3. Likewise, the security deposits deducted from contractors executing works against scheme funded from Local Funds were kept in Post Office saving accounts / saving accounts of National Saving Centers in terms of Rule 17(4) of the Punjab Local Council (Accounts) Rules, 1981. Subsequently, similar provision was also made in Rule 45(4) of the Punjab Local Government (Accounts) Rules, 2001 issued under the PLGO, 2001, whereby such securities were to be invariably kept in a saving account of the National Saving Center or in a scheduled bank, with the approval of the respective Local Government. 4. However, with the introduction of cash based single fund concept for the Local Governments under Section 107(1) of the PLG Ordinance, 2001, and change in the preaudit and accounting system of the Works and Services departments in the District/City District Government under Section 114(3)(a) and (c) ibid, read with F.Ds policy letter No. IT(FD)3-4/2002, dated 27th August, 2002 regarding execution of works by the District Officer (Building & Roads), queries have been raised as to the mode and manner of refund of securities of contractors originally deducted and placed in bank account/saving accounts for the works executed respectively, as referred to in paras 2 & 3 above.
145
5. The matter has accordingly been examined in the Finance Department, and the following procedure is prescribed for the refund of securities of contractors: REFUND OF SECURITY DEPOSITS OF CONTRACTORS DEDUCTED ON OR AFTER 1st JULY, 2002. The procedure for the deduction and refund of securities already stands prescribed in paras 3(v) & (vi) of this departments letter of even number dated 27th August, 2002. REFUND OF SECURITIES ORIGINALLY DEDUCTED IN THE PUBLIC ACCOUNT OF THE PROVINCE AND .PLACED IN COMMERCIAL BANK ACCOUNTS IN TERMS OF CLAUSE 49 OF THE AGREEMENT FORM-PRIOR TO 1st JULY, 2002. The amount of security deposits shall be refundable to the contractor concerned, on the expiry of the stipulated period, as stated in the contract, and after the issuance of certificate of completion of work. The District Officer (B & R) in the District/City District Government, after the security becomes due for refund in the manner prescribed in the existing rules shall be required to retrieve the amount of security from the concerned bank along with interest, through a cheque/payorder. The amount shall thereafter be deposited in the prescribed manner (through challan) in the Public Account of the District Government in Account No. IV under the Head of Account No. 1-3501005-Public Works Deposits-Security Deposits of Contractors, mutatis-mutandis, in terms of Rules 5.1 & 5.2 of Punjab Departmental Financial Rules. The claim for the refund, after due process in the manner prescribed in the existing Rules and credit of the amount in Account No. IV shall be submitted to the District Accounts Officer/the Accountant General, Punjab by the DO(R&B), as the case be, for pre-audit by the Assistant Accounts Officer (W&S) and issuance of cheque by the DAO/A.G. concerned, as prescribed, read with the instructions issued by the A.G., (Punjab) vide No. TM-I/LG-Plan2000/2002-03/330-43, dated 31.8.2002. REFUND OF SECURITY DEPOSITS DEDUCTED FROM CONTRACTORS EXECUTING WORK AGAINST SCHEMES FUNDED FROM LOCAL FUNDS The procedure for the refund of Security, as above, shall mutatis-mutandis apply in the matter. The Security deposits reflected in columns 15 and 16 of the proforma annexed to this departments letter No. IT(FD)3-4/2002, dated 22.7.2002 regarding closing audit of liabilities (ADP) against erstwhile Local Funds shall be scrutinized and referred to by the DO(B&R), as well as the DAOs/A.G.(Punjab) at the time of processing claims for refund of security, in the given manner. ----------
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Finance Department
Proforma for Closing of liabilities attached in the new file of letters
147
No. PS-AFS(B)/6770/02 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 7th November, 2002 Subject: SETTLEMENT OF AUDIT PARAS
Kindly refer to the subject noted above. 2. With the implementation of Devolution Plan w.e.f. 14th August, 2001, the administrative and financial linkages of the departments de-centralized/ devolved to the Local Governments have been reconfigured according to the provisions of Punjab Local Government Ordinance, 2001. 3. Consequently, the responsibilities of the Local Governments in relation to audit have been redefined in the context of internal and external audit. The latter in respect of the District Governments is the exclusive responsibility of the Auditor General of Pakistan in terms of Section 115 of the PLGO, 2001 (as amended). 4. The matter regarding the settlement of audit paras of devolved government departments, pertaining to the pre-devolution period has been engaging the attention of the Finance Department. The administrative departments consider that the settlement of such audit paras are now the responsibility of the respective District Governments, given the fact that the District Coordination Officer is the Principal Accounting Officer in terms of Section 28(2)(e) of the PLGO, 2001, beside the fact that the relevant record pertaining to the audit observations is available in the respective department/ office of the District Government concerned. 5. In consideration of the above facts, it has been decided that the settlement/disposal of audit paras pertaining to the period prior to 14th August, 2002 is now the
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Finance Department
responsibility of the respective devolved departments of the District Government concerned. For the purpose of discharge of this responsibility the District Government may notify the District Accounts Committee (DAOs) with the following composition. The meetings of DAC may be held on fortnightly basis. (i) (ii) (iii) (iv) District Coordination Officer EDO of the concerned sector EDO(F&P) District Audit Officer Chairman Member Member Member
6. In order to make the aforesaid arrangements functional the details of pending audit paras may accordingly be obtained from the concerned District Audit Officer/Administrative Department. Progress reports may be sent to the Monitoring Wing of the Finance Department on monthly basis, which shall review the matter in quarterly review meetings, to be inter-alia attended by the representative of the Director General, Civil Audit, Punjab. ---------No. FD(FR)11-2/89 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 13th November, 2002 Subject: DELEGATION OF FINANCIAL POWERS
The Governor of the Punjab is pleased to delegate following powers to sanction expenditure for re-imbursement of medical charges to employees of Lahore High Court / District & Sessions Courts and other courts:Name of Power Powers to sanction re- (i) imbursement of medical charges (ii) (iii) To Whom delegated Extent Honourable Chief Justice, Lahore Rs.20,000/High Court up to Registrar Lahore High Court, up to District & Sessions Judges up to ---------Rs.10,000/Rs.10,000/-
No.PW-II-2-24/Tele/84(P) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 16th November, 2002 Subject: LIMITS OF RESIDENTIAL TELEPHONES - REVISED POLICY
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I am directed to refer to this departments letter No. Exp(G)11-11/98 dated 13-61998 and to state that the limits fixed during austerity period have been reviewed and the following revised limits for residential telephones are fixed:(a) Chief Secretary/Additional Chief Secretary, Senior Member BOR, Chairman P&D Board, Chairman Governor/Chief Minister's Inspection Team, Secretaries Home & Finance Deptt:, Secretary to Chief Minister, Principal Secretary/Secretary/Military Secretary to Governor, Inspector General of Police, D.G (PR), DG(Protocol) (b) No limit
Members Board of Revenue, Secretaries to Government (other 1000 local calls than those mentioned at a above), DIGs incharge of Ranges, per month I.G (Prisons) Additional Secretaries, SSP/DPO & SP of a District. Heads of Attached Departments, Regional Heads of the Departments other than covered above, Deputy Secretaries to Government, SDPOs. All other officers who are entitled to ORT facility in accordance with Finance Department's approval on case to case basis. The limits for District Governments will be governed by FDs notification No. FD(D-IV)28-l/Tele/Distt: Govt/2001 dated 9.4.2002 The revised limits will be deemed to be effective w.e.f. 01.07.2002. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 25th November, 2002 900 local calls per month 600 local calls per month 400 local calls per month
(c) (d)
(e)
(f)
NOTIFICATION No. FD(FR)11-5/82(P). Governor of the Punjab is pleased to delegate powers of technical sanction to Tehsil Officers (I&S) BS-17 up to the value of Rs.5.00 lac (Rs.Five Lac only) instead of Rs.2.00 lac already allowed vide notification of even number dated 02-072002. ---------No. SO(TT)2-2/72. Pt-I GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT
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Finance Department
Dated Lahore, the 27th November, 2002 Subject: SALARY OF THE EMPLOYEES OF CITY DISTRICT GOVERNMENT LAHORE FOR THE MONTH OF NOVEMBER 2002
In view of the specific difficulties of the City District Government, Lahore in the matter of drawal and disbursement of salary to the employees, which normally takes ten to fifteen days in routine, and the ensuing Eid, it is necessary to ensure disbursement of salaries in time. 2. It has, therefore, been decided in relaxation of Rule 5.1 of the Punjab Financial Rules Vol-I to allow the encashment of salary cheque(s) of the employees of City District Government, Lahore issued by the A.G. (Punjab), Lahore for the month of November 2002, three days in advance to facilitate its timely disbursement. ----------

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