OFFICE OF THE DISTRICT ACCOUNTS OFFICER RAWALPINOI.NO.DAO/RWP/PlA/HMI DATED

All the Administrators / Authorities Operating,SD" and Assignment Accounts.

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To

Subject: - POST .. AUDIT OF ASSIGNMENT ACCOUNTS AND SDAs (SPECIAL~MWING ACCOUNTS) BY THE DAO.

Dear Sir,

Kindly refer Finance Department's letter No.SOCIT)6-1/2007 dated 26.10.2007

regarding revised procedure; operation of PLAs.

2. Since the conversion of PLAs (Personal ledger Accounts) and issuance of

guidelines for operation of SDAs, the Accountant General Punjab Lahore vide letter

NoR&C/SDAs/70 11"12/CD-10316 dated 13.02.2012 observed that the procedure for operation

of SDA is not being observed by the concerned administrators / operators of

SO/\s/PLAs/ Assiqnrnent Accounts in letter and spirit. The Government of the Punjab Finance

Department endorsed the view point of the AG Punjab by reiterating the guidelines issued

therein vide letter No.sO(TT)6-1/2009.Pt-VII dated 05.03.2015, It was stressed upon the

concerned authorities to ensure submission of monthly expenditure reconciliation of SDAs/PLAS

AAs besides rendering of monthly expenditure / payment account with paid vouchers to the

perspective Accounts office / Treasury Office for post audit on regular basis.

3. In this connection, it may be pointed out that the SDAs, PLAs and Assignment

Accounts are sanctioned by exempting the pre-audit checks and instead of that (pre-audit), post

audit of the relevant accounts (SDA etc) is made applicable by submitting the vouched accounts

of a month's transactions in the next month for post audit purpose. Failure to do so does not

allow further payments against the SDAs Accounts.

4. In this connection; it may be clarified that the pre-audit is a "summary check" of

the bills / claims presented at the pre-audit counter of District Accounts Office; whereas post

audit of vouched accounts comprises upon certain additional checks and the accounts of the

offices; iiiStitutions, organizations etc maintaining SDAs accounts and effecting with drawls there}!,.,

from, can not be treated as closed or finally settled / accepted unless these are post audited by

the DAOs and observations / short comings, pointed out are removed / rectified by the

concerned Departments. Although, these accounts are opened with the prior permission and

approval by the FD subject to usual terms and conditions; yet the opening is further subjected

to be endorsed by the Accountant General Punjab Lahore, therefore the procedure or guidelines

issued by the AG Punjab from time to time regarding maintenance and operation of SDA

Accounts etc is a binding effect upon all concerned i.e DAOs and operators of funds of PLAs /

SDAs, AAs.

5 The post audit of the accounts comprises upon the checking or scrutiny of the

Accounts to examine the completion / fulfillment of the following requirements;

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L That all codal formalities as mentioned in relevant rules codes and manuals havebeen observed by the drawing & disbursing officers, (Joint siqnatures).

ii.rhc payments actually released to the payees legally entitled to receive thesame. The actual payees receipts and acquittance rolls will have to be producedfor verification of disbursements.

iii. That lh(~ funds drawn from treasury were utilized for the same purpose for whichsanctioned / released, under the relevant object code.

IV. That. the drawing & disbursing officer's accounts stands reconciled with Accountsoffice and verified statements submitted to all concerned i.e controlling officer'sprincipal accounting officer and Government of Punjab.

v, That special or general sanction to the incurrence of Expenditure of thecompetent authority exists and administrative approval technical sanction (whererequired) have been issued before initiating a work-

vi. Ihat the provisions of rules contained in purchase manual and PAPRA rules havebeen observed and compiled with in letter and spirit.

VII. That the Government of the Punjab FD has been issuing "austerity measures"applicable for the respective financial years; the implementation of the policyinstructions are also one of the important checks to be exercised during the postaudit of the vouched accounts.

viii. That the pass books of PLA/SDA is sent to treasury at least one a month andbalanced.

ix. That the budget is classified under respective grants functions and objects codesaccording to the chart of accounts and appropriation accounts for a financial yearmaintained by Grants (Development & Non-Development) in prescribed formats.

x. Any other checks other than those specifically mentioned above.

6. Ihe Inspector of Treasuries and Accounts, Government of the Punjab, Finance

D .partment in nis inspection report on surprise visit of this office observed as under.

NON VERIFICATION OF PLAS I SDAs PASS BOOKS

[t i~;mandatory for DAOs to get vouchers of PLAs/5DAs cheques for post audit so that

ar~in~ of misappropriation may be br~Ught in to the notice ~f the operator of the PLA/ SDA, but no

Verification of pass book and post audit was done- The offlcial dealing With SDA/PLA was not even

<l~<Jre of this mandatorv provision.

I 7- In view of the above, it is requested that the vouched accounl pertaining to the

SrAS/MS being operated by your good self may kindly be presented to this office through a

fc1sponSibie officer for Post Audit purpose at the earliest, besides getting the expenditure of the

accounts reconciled / verified at the earliest.

District Accounts OfficerRawalpindi

O.DAO/RWP/PlA/HM/ DATED

Copy is forwarded for information and necessary action to>1. The Chtcf Inspector of Treasuries & Accounts Government of the Punjab Finance

Department Lahore.2. The Dc'puty Accountant General (Accounts) Office of the Accountant General

Punjab r.ahore.

District Accounts OfficerRawalpindi

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(I)OFFICE OF THE DISTRICT ACCOUNTS OFFICER RAWAlPINDI.

NO.DAO/RWP/SDA/HMI DATED

Subject» POST AUDIT· OF ASSIGNMENT ACCOUNTS AND SDAs (SPECIALDRAWING ACCOUNTS) BY THE DAO.

The vouched account, of with drawls against SDA pertaining to your office for the period from

... to checked and observed as under:-

i. Under the tcrrnsand conditions regarding operation of SDA/MI no withdrawals from

Special Drawling Accounts are permissible as advance withdrawals or for enable transfer

of funds in commercial banks / DFIs (Development Financial Institution). A certificate to

that effect recorded on the chequeis), advices or form-II; while drawing payments out of

SDA but on receipt of vouched accounts it has been observed that there involved an

abnormal delay/ variation in the amounts withdrawn from the treasury and that disbursed

to the payees. It means that either the amounts withdrawn from treasury have been

placed in commercial banks or if otherwise the complete vouched account showing

disbursement. to Lhe legally entitled payees have not been produced to this office to meet

the requirement of post audit. The undisbursed / unutilized amount in any shape either

as cash with department or otherwise placed in commercial banks may be retrieved and

credited in to Government treasury. The expenditure may also be regularized with the

sanction of H) by rendering necessary justification. Similarly, the withdrawals of amounts

from treasury in order to avoid the lapsing of funds is not permissible under the rules.

II. In pursuance to procedure prescribed for payments out of SDA/AA, withdrawals from

Special Drawing Accounts shall only be admissible if these are required to meet validly

accrued liabilities / booked expenditure duly pre-audited where so required.

iii. In case lh(~ funds are transferred to any other executing agencies for initiating a

development scheme(s) or supplies etc, the audit of accounts / expenditure of such work

will be the responsibility of the "Executing Agency" concerned. On completion of the

work, the Divisional officer /DDO of the executing agency would render a completion

certificate, besides a sending a statement of accounts to the respective Drawing and

Disbursing otticer (DDO). Residual/un-spent balance amount, if any shall also be

refunded to tJ1C concerned drawing and disbursing officer (DDD), who would deposit the

same to this respective receipt head of account. Accordingly in case any funds transferred

to other agency for initiating a work, necessary action may be taken as mentioned above

and if otherwise necessary certificate to that effect may be issued and attached with the

vouched account.

iv. A list of development scheme(s) may be produced separately showing therein the funds

allocated, uUli/ed with remaining balance if any. Whether the work was initiated as

"Deposit work" or otherwise undertaken as original work being the Department's own

liability against the fund allocated for the purpose.

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c:vv. The vouched accounts rendered for developmental activities has not been supported with

Administrative approval; Technical sanctions and expenditure sanctions accorded by the

competent: authority. The needful may be done and the copies of the documents

produced to this office for audit.

VL Ihe breakup / distribution of budget by object codes for the financial year have not been

enclosed with copy of appropriation account of the authority showing allocation,

expenditure, percentage of excess I saving in various head of accounts and object codes

for the respective financial year.

vii. According to the pre-conditions sanctioning SDA, no cheques may be withdrawn for "self"

unless these are expressly meant for the recoupment of working balance where so

authorized The expenditure against pay and allowances including salary of work-charged

or contingent: paid staff is varied in different months and in some cases there is a huge

increase over and above the average cost of establishment charges, which may be

justified. /\ certificate to the effect may be issued that the persons to whom disbursement

made out of' contingences, were actually engaged within the minimum requirements of

the Department, office or authority and were actually paid at the prescribed rates.

viii. All payments through Special Drawing Account should be invariably made through

"Crossed Cheques" in the name of valid payees only. In case the amounts on account of

pay and allowances drawn against "self cheques" are placed in officially sanctioned bank

accounts of the DDO concerned, the payments disbursed there against to the staff may

be entered in the acquittance rolls accordingly and the receipts thereof should be singed

by the concerned staff. The copies of the acquittance rolls may be provided for scrutiny

and post audit.

ix. J'hat all codal formalities as mentioned in relevant rules codes and manuals have not

been observes by the drawing & disbursing officers, especially in case of the "advance

payment" where sanctioned in relaxation of relevant rules. The complete vouched

account is to be submitted for post audit alongwith all documents like expenditure

sanctions, /\/\, TS etc.

x. That the accounts may be maintained in a meaner showing that the payments actually

released to tJl(~payees legally entitled to receive the same and the entries in the accounts

book should be rnade inconformity with the actual payees receipts and acquittance rolls.

The vouched account produced for verification and post audit does not satisfy such very

purpose.

xi. Under the rules, the funds drawn from treasury are utilized for the same purpose for

which sanctioncd / released, under the relevant object code(s). The vouched account

does not show any indicator in this regard. Kindly issue a certificate to the effect that the

funds stands utilized for the purpose for which allocation made.

xri. That the drawing &. disbursing officer's accounts stands reconciled with Accounts office

and verified statements submitted to all concerned i.e controlling officer's prlnopa:accountinq officer and Government of Punjab.

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XIII. That special or general sanction to the incurrence of Expenditure of the competent

authority exists and administrative approval technical sanction (where required) have

been issued before initiating a work. No documents enclosed with the vouched account to

meet the audit requirement.

xiv. that the provisions of rules contained in purchase manual and PAPRA Rules 2014 have

not been observed and compiled with in letter and spirit. The vouched account has been

produced without enclosing any document showing that the compliance thereof is being

implement by the authority.

xv. That the Government of the Punjab FD has been issuing "austerity measures" applicable

for the respective financial vears: the implementation of the policy instructions I checks

have not been exercised during the period under post audit of the vouched accounts.

xvi. That the pass books of PLAjSDA is sent to treasury at least once a month and balanced.

The compliance in this regard may be made in letter and spirit. The administrator of

funds is required to issue an acceptance certificate of expenditure incurred during afinancial year and furnish to the District Accounts Office after having closed the accounts

of the year.

xvii. that the budqet is classified under respective grants, functions and objects codes

according to the chart of accounts and appropriation accounts for a financial year

maintained by Grants (Development & Non-Development) in prescribed formats.

District Accounts OfficerRawalpindi

TO

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