INTERNSHIP REPORT ON

DISTRICT COMPTROLLER OF ACCOUNTS HARIPUR

Submitted by
Aamir Zulfiqar

Roll # 0238

Supervised by
Abdul Waheed

Government College of Management Sciences Abbottabad

SESSION
2018-2019
 INTERNSHIP REPORT ON
DISTRICT COMPTROLLER OF ACCOUNTS HARIPUR

Submitted by
Aamir Zulfiqar

Roll #238

Supervised by
Abdul Waheed

This internship report is submitted in partial fulfillment of

the requirements for the degree of Master of Commerce
awarded by the Abbottabad University of science &
Technology

Government College of Management Sciences Abbottabad

SESSION
2018-2019
 Government College of Management Sciences
Abbottabad

APPROVAL SHEET

Approval Committee
External Examiner

Mr.____________________Signature_____________________

Supervisor

Mr. Abdul Waheed Signature______________________

Lecturer (Commerce and Business Administration)

GCMS Abbottabad

Head of department

Prof. Syed Arif Zahid Signature___________________

Principal
GCMS Abbottabad
 Dedication

To my Beloved Parents
&
Respected Teachers
&
my friends
 Abstract

As it is necessary for every M.Com student to work as a internee in any suitable

organization to their studies so I opted to join District Account Office as a internee
because of the fact that this is the part of the most successful organizational setup in
the country and had established the best accounts system in Pakistan with constant
innovations in its services, and by making use of the emerging technologies with the
latest changes in order to facilitate its customers.

Eight week time is not probably enough to understand the organizational operations,
but it was a great experience to have a feel of the practical world and keeping in view
the limitations of the study, this seems a reasonable attempt. This was true learning
experience for me. I experienced working in various departments and learned a lot
and it may be very useful for me as well as my professional degree is concerned.
 Table of Contents
Abstract.........................................................................................................................v
Acknowledgements...................................................................................................viii
Abbreviations................................................................................................................x
Executive Summary....................................................................................................xi
Chapter 1.......................................................................................................................1
Introduction to The Report.........................................................................................1
1.1 Background of the study......................................................................................1
1.2 Purpose of the study.............................................................................................1
1.3 Scope of study......................................................................................................1
1.4 Research methodology.........................................................................................2
1.5 limitation of study................................................................................................2
Chapter 2.......................................................................................................................3
Introduction to DISTRICT ACCOUNTS OFFICE Haripur...................................3
2.1 Introduction.........................................................................................................3
2.2 History..................................................................................................................5
2.3 Establishment of district account office in KPK..................................................5
2.4 Separation of Audit and Accounts.......................................................................6
2.5 History of I.T. Department...................................................................................6
2.6 District accounts office (Haripur)........................................................................7
2.7 Functions of the office.........................................................................................8
2.8 ORGANIZATIONAL CHART..........................................................................9
2.9 Overview of Administrative Arrangements.........................................................9
2.10 PIFRA (Project for Improvement in Financial Reporting and Auditing)........11
2.10.1 PIFRA in KPK..........................................................................................12
2.10.2 NEED OF PIFRA......................................................................................13
2.10.3 Components of Pifra................................................................................15
2.11 Pakistan Audit and Accounts Department......................................................15
2.12 Who is accountable to whom and for what?....................................................16
2.13 Reasons for keeping huge record....................................................................17
2.14 Purpose of audit & accounts department.........................................................19
2.14.1 Audit Department......................................................................................19
2.14.2 Accounts Department................................................................................19
 2.15 Functions & powers of auditor general of pakistan........................................20
2.15.1 Accounts:...................................................................................................20
2.15.2 Audit:.........................................................................................................20
2.16 Field Offices....................................................................................................28
Chapter 3.....................................................................................................................44
Departments Under ACCOUNTANT GENERAL (AG) PESHAWAR...............44
3.1 Department Of AG Peshawar:............................................................................44
3.2 Compilation and Functions................................................................................44
3.3 Pension and Functions of pension sections........................................................44
3.4 PAYROLL SECTION.......................................................................................45
3.5 DIFFERENT SECTIONS..................................................................................49
3.6 Book section and its functions...........................................................................50
3.7 DA section and its functions..............................................................................50
3.8 WAD section and function.................................................................................50
3.9 GP Fund Section and Its function......................................................................51
3.9.1 Types of G.p fund.......................................................................................51
3.9.2 Requirements for G.P Fund Withdrawal.....................................................51
CHAPTER NO 4........................................................................................................52
Financial Analysis......................................................................................................52
4.1 Financial Analysis.............................................................................................52
4.2 Percentage analysis of report..............................................................................57
4.3 Horizental (dollar change) analysis of report.....................................................57
4.4 SWOT ANALYSIS............................................................................................59
Chapter 5.....................................................................................................................62
Conclusion & Recommendations..............................................................................62
5.1 Conclusion..........................................................................................................62
5.2 The Recommendations.......................................................................................62
REFRENCES..............................................................................................................64
 List of Tables

Table 1 Balance Sheet..................................................................................................53

Table 2 Horizontal Analysis.........................................................................................55
Table 3 Percentage Analysis........................................................................................57
 Acknowledgements

I am highly Grateful to Almighty ALLAH for giving me the life and energy to
conceive and actualize the internship and this report.
Our learned and erudite Supervisor Abdul Waheed Government college of
Management Sciences Abbottabad for his inspiring guidance, keen interest, and
continuous encouragement through out my internship report making efforts.

All Staff of GCMS Abbottabad who implicitly or explicitly helped me in my

Internship Report.

Last but not the least I am highly indebted to staff of District Account Office Haripur
for providing me the opportunity and support to accomplish my Internship.

Aamir Zulfiqar
 Abbreviations

AG ACCOUNTANT GENERAL

AAG ADDITIONAL ACCCOUNTANT GENERAL

CGA CONTROLLER GENERAL OF ACCOUNTS

DAO DISTRICT ACCOUNTS OFFICERS

DAG DEPUTY ACCOUNTAN GENERAL

DA BILL DAILY ALLOWANCE BILL

GP FUND GENERAL PROVIDENT FUND

PIFRA PROJECT FOR IMPROVEMENT IN FINANCIAL REPORTING

AND AUDITING.

SAP SYSTEM APPLICANTS PRODUCT

SWOT STRENGTH, WEAKNESS, OPPORTUNITIES, THREATS.

TA BILL TRAVELLING ALLOWANCE BILL
 Executive Summary

I have done my Internship report in District Account Office situated near district
courts Haripur city. It is the place where accounts of government employees,
government receipts and payments or expenditures are maintained. District Accounts
offices from all over the country collect and compile the data about government
employees, government receipts and payments. These offices are controlled by the
District Accounts Officer which is the head of these offices. Assistant Accounts
officer (AAO) assists him. Assistant Accounts Officer is assisted by the Senior
Auditors and Junior Auditors. District accounts offices makes closings of accounts on
yearly, half yearly and on monthly basis. Financial year starts from 30 June and ends
on 1 July. I saw the yearly closings during my Internship. This was very busy period
for both accounts office staff and the other government employees of various
government departments who are concerned with it.
First Chapter includes the Introduction to the District Account Office.The second
chapter identifies the background of Account Office . The third chapter is about the
PIFRA. Fourth chapter includes the function of Account office and its departments.
Fifth chapter includes the Financial analysis. Sixth chapter includes role of Audit &
Accounts department in Pakistan. The Final Seventh Chapter includes the
Recommendation.
 Chapter 1
Introduction to The Report

1.1 Background of the study

For getting the M.Com degree, each student is required to spend at least 6-8 weeks as
an internee in a recognized organization. The students are required to work in their
specialized fields.

The main purpose of this program is to make students familiar with the practical
work, as there is great difference between the theory they have learnt during their
M.Com and how the job is practically done.

Another important aspect of the internship program is that the internee is placed in
most of the departments of the organization through job rotation. It provides them
with a glance of each department, as the working period is too short for learning in
detail.

1.2 Purpose of the study

 Fulfillment of the degree requirement of the M.Com, from AUST

 To analyze Functions at District Account Office Haripur

 To gain practical knowledge.

 To make relevant recommendations in the light of the analysis made.

1.3 Scof study

1) It is a compulsory requirement for the award of a Master Degree

2) It will help present and prospective students of the department in making

assignments and writing reports on the organization.

3) It can also provide help to the organizations management in identifying their

Strengths, Weaknesses, Opportunities and Threats.

4) It can also provide assistance to students seeking financial data for analysis.

1
1.4 Research methodology
The methodology that is adopted for this report is based on both the primary as well
as secondary data. The sources of primary data were:

1. Formally arranged interview/ discussions with Management, Staff of the DAO

2. Personal observations.

The sources of secondary data were;

1. Annual reports

2. Over view of the DAO

3. Official Website of DAO

A lot of time was spent in DAO at each department and the information was collected
from discussions and interviews with Managers Officers.

1.5 Limitation of Study

The span of operation is too large to be covered completely in short time of 8 weeks.
Which does not permit to fully analyze and understand the function, and the privacy
policy of DAO also limits access to the organizational data and information that is
termed as confidential.

2
 Chapter 2
Introduction to DISTRICT ACCOUNTS OFFICE Haripur

2.1 Introduction
The social and economic growth of any development country depends mainly on the
health of its financial institutions. Similarly, the non trading organization and
government institution or other charitable institutions like Govt school, Colleges,
Universities, Hospitals, Agriculture, Police, Social welfare, etc which work for only
human being not for earning profit. The main aim of these institutions is to provide
good education, health facility, safety of the people life etc. So these departments
work under the District Accounts Office in the district.
District Accounts Office records all the employees’ records up to the date of
appointment to the date of retirement. All record of the employees of (Govt
employees) which work in the district are kept in the ledger accounts, District
Accounts Office controls all activities of the employees and control the incomes and
expenditures of the district.
It plays very important role in the District. The salaries of the employees are done
through District Accounts Office and other benefits, like traveling allowances, daily
allowances etc are given by the District Accounts Office. District Accounts Office
also gives the General Provident Advances Facility to the employees at the time of
needs and also the other facilities to the employees. District Accounts Office plays a
very important role in the District and also in the Province for the development of the
country. It kept the detailed records of the income and expenditure of the district. The
entire districts work under the Accountant General Peshawar in K.P.K.

The office of the Director General MIS/FABS, working under the Controller General
of Accounts(CGA), is responsible for smooth functioning of the SAP-based Financial
Accounting & Budgeting System(FABS), which is an Integrated Financial
Management Information System(IFMIS) being run at government offices at federal,
provincial and district level. FABS was initiated and established under Government of
Pakistan and World Bank-funded Project to Improve Financial Reporting &
Auditing(PIFRA). PIFRA was implemented at federal, provincial and district levels of
the government in three phases between 1996-2018. After closure of PIFRA on

3
31.12.2018, its FABS component was mainstreamed into the o/o DG MIS/FABS on
01.01.2015.

Essentially, FABS comprises of the New Accounting Model(NAM), and a SAP-ERP-

based Information Technology platform. The New Accounting Model(NAM) was
introduced in year 2000, through approval by the Auditor General of Pakistan, to
improve the traditional government accounting system by bringing-in a shift towards
modified cash-basis of accounting, double-entry book-keeping, commitment
accounting, fixed asset accounting and a new multi-dimensional Chart of Accounts. A
key objective of FABS (i.e. NAM, along with the SAP-based IT platform) was to help
produce timely, relevant, accurate, reliable and comprehensive financial reports for
the decision makers to enable effective accountability and better financial governance.
Objectives of FABS include effective budgetary management, financial control, cash
forecasting, trend analyses, fiscal administration and debt management.

The SAP-ERP based system is being run at more than 500 sites across the country at
federal, provincial and district level. They include self-accounting entities like Pak
PWD, Pakistan Mint, Geological Survey of Pakistan and Directorate of Postal
Accounts. The District Accounts Offices(DAOs) and other district level offices, and
provincial line departments are linked through Wide Area Network(WAN) to servers
at Accountant General office and the Finance Department of the respective province.
All provincial servers are linked through WAN to the federal server lying at the office
of the Accountant General Pakistan Revenues(AGPR) in Islamabad, thereby creating
a seam-less and integrated system capable of providing real-time information on
financial transactions taking place on the system across the country at national and
sub-national level. Among other things, the FABS is being used to process (a)
monthly pay of more than 2.5 million government employees at federal, provincial
and district levels (b) monthly pension of more than 0.5 million government
employees (c) General Provident Fund payments of government employees (d)
thousands of payment claims of government departments across the country on a daily
basis (e) monthly and annual accounts of federal, provincial and district governments
(f) budgets of federal and provincial governments.

4
New services are being initiated which aim to utilize the system for providing useful
information to decision-makers in the government through dashboard reports.
Horizontal expansion of the system is also being undertaken through interfaces with
relevant government entities to capture comprehensive information related to receipts,
expenditures, domestic debt and external debt transactions of the government.

2.2 History
The Office of the Accountant General NWFP was established on 1st April, 1929 as a
small Pay & Accounts Office and was responsible for Audit & Accounts of both
Federal and Provincial transactions in NWFP. Subsequently it was re-designated as
Comptroller, NWFP on 1st November 1931. It continued to function as such till July,
1973, when its status was raised to that of Accountant General because of the
tremendous increase in the scope of its activities and load of work.
Apart from NWFP and its adjacent Tribal Agencies, the audit jurisdiction of this
office also covered Northern Areas (Gilgit & Baltistan).The audit of Northern Areas
was, however, transferred in 1974 to the Accountant General Pakistan Revenues
(AGPR) Islamabad.
Similarly, in the case of Frontier Irregular Corps (Scouts & Militia), the audit
jurisdiction of this office extended to Baluchistan. But on the formation of separate
office of the Inspector General, Frontier Corps of Quetta in 1974, the audit of the
Units in Baluchistan was transferred to the Comptroller, Baluchistan.
On the formation of one Unit, the audit of two adjacent Districts in Punjab, Attock
and Mianwali was transferred to this office from office of the Accountant General,
Punjab. Correspondingly, owing to centralization of works audit in office of the
Director, Works Audit, Lahore, the works portion was transferred from this office.
These arrangements were reversed in 1970, owing to dismemberment of One Unit.
During that period the audit of ex-States of Dir, Swat and Chitral was also taken over
by this office due to merger of these States.

2.3 Establishment of district account office in kpk

The “District Accounts Office” scheme was introduced in KPK in 1970. Initially it
was experimented in one District i.e. Mardan. By now there are 24 Districts and 7
Agency Accounts Offices, in KPK and FATA respectively.

5
Till July, 1979, this office was responsible for the audit and accounts of both Federal
and Provincial transactions in the Province (including Agencies). On the formation of
the Sub-Office of the Accountant General Pakistan Revenues, in July, 1979, the audit
and accounts of the Federal transactions were transferred to that office.

2.4 Separation of Audit and Accounts

Office of the Accountant General, NWFP, till 30th June, 1989 was responsible for the
local audit of accounts of the Provincial Govt departments and its autonomous bodies
and corporations and performance of audit of projects etc. The audit reports too
thereon were being prepared by this office.
The function of local audit of accounts was however withdrawn from it and assigned
to newly established office of the Director General, Audit NWFP in July 1989. All the
accounting transactions both for the Federal as well as Provincial Govt were under the
administrative and functional control of the Auditor General of Pakistan.
The separation of Audit & Accounts departments were promulgated vide Auditor
General's ordinance 2001 and Controller Generals Ordinance 2001, since then the
Accounts Departments were independently kept under the newly created office of the
Controller General of Accounts (CGA).
Plan
Since the introduction of Devolution Plan on 14th August, 2001. It was a challenge
for this office to respond to the needs within the existing human and financial
resources. This office delegated preparation of accounts of 13 devolved departments
at the District Accounts Office level, as required under the Local Govt Ordinance
2001.

2.5 History of I.T. Department

History of AG NWFP is replete with success stories and land mark achievements
especially regarding office automation. The first Computer Cell was established in
1983 with a purpose to computerize the salaries of the government servants. The cell
started functioning with “Detobe” as IT platform. The Computer Cell was managed
by a selected staff of six persons. The Computer Cell, using IBM data entry setup,
initially took over Federal Government Accounts for processing. The Computer
Center was located at PAF, Badaber as the processing activity had been out-sourced.

6
In the mean while the data base of the Provincial Government Accounts was also
placed at the service of the Computer Center for processing.
In 1985, the data processing activity was then shifted to Habib Bank Computer Centre
(IBM System-36) and their bureau services were utilized on payment.
In November 1985 Pay Roll computerization stared at AG KPK (both Federal and
Provincial employees). All the Pay Roll data entry used to be done by Habib Bank
Limited staff on payment. The facility was later on extended first to DAO Mardan as
Pilot DAO.
Keeping in view the advantages and successful computerization process in AG KPK
Provincial Government of KPK funded for the computerization of ;
 District Accounts Office Swat,
 District Accounts Office Kohat
 District Accounts Office Bannu
 District Accounts Office D.I.Khan
 District Accounts Office Mansehra
 District Accounts Office Malakand
 District Accounts Office Dir
As project of P&D Department and single unit of IBM AS-400 was installed at these
district account offices. This setup of computerization was not integrated and there
was no Centralized.
In February 1994, the office become self sufficient in IT and the related human skills
and eventually the first in-house installation started with ICL as IT platform at AG
KPK and DAO Haripur.

2.6 District accounts office (Haripur)

It is situated near district courts Haripur city but yet shifted near Police line
Abbottabd due to construction of its new building. Where I did my Internship. It is the
place where accounts of government employees, government receipts and payments
or expenditures are maintained. District Accounts offices from all over the country
collect and compile the data about government employees, government receipts and
payments. These offices are controlled by the District Accounts Officer which is the
head of these offices. Assistant Accounts officer (AAO) assists him. Assistant
Accounts Officer is assisted by the Senior Auditors and Junior Auditors. District

7
accounts offices makes closings of accounts on yearly, half yearly and on monthly
basis. Financial year starts from 1 July and ends on 30 June. This was very busy
period for both accounts office staff and the other government employees of various
government departments who are concerned with it.

2.7 Functions of the office

Main codified functions of Controller General of Accounts as envisaged in CGA
Ordinance 2001 are:

 To prepare and maintain the accounts of federation and provinces and district
governments.
 To authorize payments and withdrawals from the Consolidated Fund and Public
Accounts of the Federal and Provincial governments

2.7.1 Other functions contributing to sound financial management

 Formulating the principles governing the internal financial control for government
departments.
 Rendering advice on accounting procedure for new schemes, programs or
activities undertaken by the Government concerned.
 Providing the information required by the Federal, Provincial or District
Governments (in so far as accounts compiled permit).
 Developing and maintaining an efficient system of pension, provident funds and
other recruitment benefits.

8
2.8 Organizational chart

2.9 Overview of Administrative Arrangements

This section provides an overview of how the Government of Pakistan is organized
administratively to record, compile and reporting financial information.

2.9.1 Auditor general

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

2.9.2 Controller-general or comptroller-general

The Controller-General is responsible for matters of accounting policy and procedure
in relation to the accounts of the Federation and Provinces, as delegated by the

9
Auditor-General. The Controller-General is responsible for the overall operations of
the accounting offices within Pakistan Audit department and for the production of
timely financial reports of the Government and its accounting entities. Controller-
General is now called Comptroller-General due to the computerized accounting
system.

2.9.3Accountant
2.9.3Accountant generals
The Accountant Generals are established in each Province and the Federal
government, and each report to the Controller-General. These officers are responsible
for the overall operations of accounting offices within their jurisdiction (e.g. a
Province), and deal with matters of accounting policy and procedure in those areas. In
case of Federal Government the AGPR (Accountant General Pakistan Revenues) is
located in Islamabad with Sub-Office in each of the Provincial capitals and other
designated areas. All AGPR Sub-Offices (Now referred to as Deputy General
Pakistan Revenues), report monthly accounting information, in respect of Federal
transactions to AGPR Islamabad. As well as performing a consolidation function,
each AG Office and the AGPR have their own accounting offices for processing
accounting transactions arising within the locality of their office.

2.9.4 District accounts officer

Each Province is further divided into districts. Each district contains its own District
Accounts Office. The DAO’s are responsible for processing all accounting
transactions from the various departments in that district. The DAO’s maintains
records of payment and receipts for Federal and Provincial transactions (In separate
ledgers) and submit consolidated monthly accounts to the respective AGPR sub-office
or AG office. In Haripur DAO’s branch Attiq-ur-Rehman Lodhi is District Accounts
Officer.

2.9.5 Assistant
Assistant accounts officer
Accounts officer works under the District Accounts Officer. Senior and Junior
auditors work under his command. Or he deals with them. Assistant Accounts Officer
and Assistant Treasury Officer both are the subordinates of District Accounts Officer.
AAO is the federal employer and his head is the Auditor General. Where as Assistant
Treasury Officer is the Provincial Government employer. His head is Accountant
10
General of Province. There are five Accountant Generals in Pakistan. These all are
responsible to transfer complete reports to Auditor General of Pakistan. And Auditor
General is answerable and responsible to President of Pakistan. He also deals with
trainees. For instance, NIP trainees and as I went there for my 6 to 8 weeks M.Com
internship program.

2.10 PIFRA

The World Bank and developed countries provides financial aid to developing
countries. But they were not ready to provide more aid. They said that the system of
preparation of accounts and audit is not proper in Pakistan. They said that there is
misuse of financial aids and chances of manipulation are high. Now World Bank gave
a project named as PIFRA which stands for Project Improvement for Financial
Reporting and Auditing. So they prepare software for this purpose. The Govt. of
Pakistan took an initiative to address the shortcomings of the financial reporting
system and to ensure good governance. The IMF carried out a survey in Government
Accounting in early 1990s, followed by a diagnostic study sponsored by the World
Bank. As a result, the Project to Improve Financial Reporting and Auditing (PIFRA)
was introduced by the Auditor General of Pakistan in 1994. The main objective of this
project is to computerize the whole accounting and auditing system of the country.
The idea behind computerizing the whole system is to generate timely, accurate and
reliable financial statements; to monitor fiscal deficit; to forecast flow of cash; to
manage public debt and to achieve effective financial controls. The accounting system
of Pakistan was inherited from the century old accounting system of the Indian govt.
The old accounting system lacks timeliness, accuracy and most importantly
transparency. Accounts of any organization, large or small, are the most important
tool for curbing the corruption by keeping an eye on ins and outs of the money and
more importantly they give the overall inner picture of the organization to the
stakeholders which helps them take better financial decisions. While talking about the
country as an organization the importance of the accounts becomes much more vital.
The stakeholders are everyone, be that any foreign aid entity, any govt. department,
govt. employees, provincial or district govt., any bank, any foreign govt. etc. You
name it and they are there. So the importance of these accounts increases manifolds.
Furthermore, the old manual system was like a haunting monster also for a common

11
government employee. There are three main things which a common Govt. employee
comes to an accounts office for, viz. salary, general provident fund and pension. Our
experience shows that in the old system a common man had a series of unlimited
problems and hurdles to face in order to get his financial claims. His fever started a
week before he had to visit the accounts office for any of the financial claims. But,
unfortunately, till the recent past our governments did not pay proper attention to
overcome these problems. Due to which the exact and clear picture of the economy of
the country is still not visible to virtually anybody and on the other hand common
man face enormous difficulties in receiving his financial claims. After the
introduction of PIFRA this ultimate goal would be achieved soon. That is why this
project was introduced. The main objectives are to achieve timely, accurate and
complete accounts with transparency and most importantly to facilitate the common
govt. employee regarding their financial claims. But, there is a lot more to be done to
achieve this goal.

2.10.1 PIFRA in KPK

This project is being carried out in phases throughout the country. There are number
of steps in which the project is implemented in the provinces. The first and most
important phase is to computerize the accounting offices and then implement various
prescribed modules. There are 18 District in KPK province. PIFRA is being
implemented District wise. The implementation was divided in phases. Initially, Two
Districts were selected as Pilot Sites viz. Karachi and Hyderabad. After the successful
start of the PIFRA on these sites, three more sites were selected as Rollout Sites,
namely, Sukkur, Nawabshah & Larkana. The system here was also started with
success. In these sites, initially, the salaries of the govt. employees were computerized
through HR Module and then other financial claims from various offices were entered
into the computerized system through FI Module. Before starting the project at rest of
the Replication sites, the system of Workflow (Electronically Generated Cheque
System) was implemented at the already productive (online) sites, at the initiative of
the Accountant General KPK.
The land mark achievement took place in May 2003, when SAP/R03 was introduced
under the auspices of Project for Improvement in Financial Reporting and Auditing
(PIFRA) at AG KPK and Haripur. After the initial efforts the salary for the month of
October 2003 was processed through SAP/R03.

12
The KPK became the first Province to have online Accounting of all the twenty four
(24) Districts and AG, KPK. It progressed leaps and bounds due to the uniting and
selfless efforts of officers, staff and experts. Not only the Accounts Offices but the
Finance Department, all the District Finance and Planning Offices and a number of
Principal Account Offices (Provincial Departments) are interconnected.
The Departments can generate Financial as well as employees related reports at their
own. The AG Office not only generate and compile Monthly Accounts from the
system but a number of other reports like IPSAS based Financial Statement.

2.10.2 Need of PIFRA

1. The assessment of public sector accounting and auditing is generally meant to help
implement a more effective public financial management (PFM) through better
quality accounting and public audit Processes in Pakistan and to provide greater
stimulus for more cost effective outcomes of government spending. More specific
objectives are:
(a) to provide the country's accounting and audit authorities and other interested
stakeholders with a common, sound knowledge as to where local practices stand in
accordance with international standards of financial reporting and auditing;
(b) to assess the prevailing variances;
(c) to chart paths for improving the accordance with international standards; and (d) to
provide a continuing basis for measuring improvements.
2. As part of the general support program in South Asia for assessment and
improvement of public sector accounting and auditing, the World Bank, with the
cooperation of member governments, is conducting a Review of Public Sector
Accounting and Auditing Practices in member countries. In conducting this
assessment, a set of diagnostic questionnaires [developed to be consistent with the
context of the PFM Performance Measurement Framework used by the Public
Expenditure and Financial Accountability (PEFA) Program ], was used to gather
substantial insight into country performance with regard to the external auditing and
financial statement reporting PFM indicators. Annex A discusses the methodology
used for conducting the assessment in this report.
3. The diagnostic questionnaire was used to gather information on national standards
and practices for accounting, financial reporting, and auditing in the government
budget sector and in the state-owned enterprise (SOE) sector. Conducted in

13
cooperation with country authorities, the diagnostic questionnaires incorporate the
principles contained in the public sector accounting and auditing standards
promulgated by the International Federation of Accountants (IFAC) and the
International Organization of Supreme Audit Institutions (INTOSAI). Annex B
summarizes the international accounting and auditing frameworks that were used in
this assessment. The responses to these questionnaires stimulated further discussions
among the World Bank team and senior staff in the offices of the Auditor General of
Pakistan (AGP) and Controller General of Accounts (CGA). These discussions
examined accounts and audit reports and working papers as a means to jointly explore
the quality of processes and products.
4. The maintenance system for public accounts in Pakistan is long standing. Since
1997, the World Bank Project for Improvement of Financial Reporting and Auditing
(PIFRA) has supported the comprehensive reform efforts by the Government of
Pakistan to streamline its accounting and auditing systems and procedures, while
developing the institutional and individual capacities for better public financial
management. The initial reforms included some separation of audit and accounts
activities through promulgation of legislation relating to separate roles for the Auditor
General and the Controller General of Accounts. They also included designing
modern accounting and auditing processes and devising a comprehensive human
resource management plan. The replacement of inefficient manual and outdated
accounting processes in the general government sector by faster and updated
computerized programs (using the accounting software package SAP R/3) is
underway with a program to computerize all district accounting offices by the end of
2007. Annex C includes excerpts from Pakistan auditing and accounting legislation.
5. The second phase of the PIFRA project, PIFRA II, will help the government to
build capacity to improve the accuracy, comprehensiveness, reliability, and timeliness
of intra-year and year-end government financial reports at federal and provincial
levels. The PIFRA II will also initiate the process at district and sub district levels
thereby strengthening the financial accountability cycle. The project would therefore
directly support the commitment of the Government of Pakistan in improving public
financial management, accountability, and transparency, and enhance the capacity of
public sector managers to meaningfully use credible financial information for better
and informed decision-making. It will facilitate public oversight of the use of public

14
monies, and increase the national and international credibility of the national and
provincial governments' financial statements and assurance processes.
6. The reform efforts need to include identification of the relevant international
standards of accounting and auditing applicable to the public sector and help achieve
compliance with those standards. Adoption of International Public Sector Accounting
Standards (IPSAS) for accounting and financial reporting and the IFAC-issued
International Standards on Auditing (ISA) in addition to the INTOSAI Auditing
Standards are important steps in improving the basis for adequate public financial
management.

2.10.3 components of PIFRA

The main components of PIFRA are

2.10.3.1Audit Components
Audit wing of PIFRA Facilitates Department of Auditor-General of Pakistan in
modernizing its auditing process and to bring them at par with International best
practices.

2.10.3.2 Financial Accounting & Budgeting System

FABS is basically the largest public sector implementation in the world of SAP ERP
system. It facilitates automated input and output of budgets for Finance Division,
Provincial Finance Departments and Controller-General Accounts (CGA)
organizations. This is aimed at automation and integration of budgeting data,
payments, recording of revenue, compilation and integration of country-wide
accounting information for executive decision-making.

2.10.3.3 Training Components

Conducts training programs for all levels of officers, consultants and supporting staff
in the field of financial accounting budgeting and auditing.

2.11 Pakistan Audit and Accounts Department

In many cases the origin of many troubles in private life as well as the “Public
Administration can be traced back to the fact that money was not spent discreetly so it
is not difficult to earn money as to spend it well”. It is a fundamental principle that

15
every public officer should exercise same vigilance in respect of expenditure incurred
from public fund as a person of ordinary prudence would exercise in respect of
expenditure out of his own purse. Management of public funds and its control are a
task of magnitude and delicacy. A secretary to the government who is the principle
accounting officer in respect of his Ministry/Department and his subordinate small
offices are responsible to ensure that the funds controlled by him are spent in
accordance with the Financial Rules and Regulations. Financial powers are delegated
to the head of department, head of the offices and drawing & disbursing officers for
the purpose. If these powers are not exercised correctly due to non-observance of
rules of financial propriety then there is a danger for misappropriation and
embezzlement or undue delays in payment causing misery to the persons concerned.
Even the money has been sanctioned by the parliament, it has to see that the
government does not misuse the money or does not go beyond the sanctioned Limits.
For this purpose, there is appointed an Auditor General who exercises external control
over expenditure and audits the government accounts.

2.12 Who is accountable to whom and for what?

In matters of financial accountability both for money and property, such
accountability not only to the officers of high ranks but also to subordinates. This
problem of accountability pervades all activities where funds and property involved
whether the institution is a small shop, a big store, a corporation or a government
department. A store manager must see that his store inventory conforms to the record
of income and sale, a cashier must balance his cash, and a pharmacist must all times
account for his supply of medicines. Accountability of such type is accomplished by a
system of internal checks based upon record keeping. Thus when a store keeper
receives an order to issue a particular item of store, he makes an entry to that effect in
the Issue register and obtains acknowledgement of the person concerned. Similarly, if
a cashier has to pay some money, he has to get acknowledgement for it and to make
necessary entry in cash book. These entries are checked and rechecked by the
supervisors. This procedure may seem quiet elaborate to call for shortening the red-
tap. But it should be remembered that unless there is a system of internal check the
correct amount can not be vouch saved. For these reasons in matter of financial
transactions, there is a tremendous amount of record keeping whether in a private

16
business houses or in government offices. Government environment, however,
required and to tolerate more record keeping than private businesses. This is because
government departments are accountable to the public for the details of their
operations and do not have the degree of internal freedom as it is enjoyed in private
firms. The public business is every body’s business, whereas the private business is
concerned to an individual or a group of individuals.

2.13 Reasons for keeping huge record

The main reasons for the government to keep a large number of records are explained
below.
I. Many government records are required by law rather than the needs of
management.
II. There may be more record keeping for its own sake in government because of their
satisfaction.
III. There may be more record keeping for its own sake in government record keeping
a holy rite, because the rite has the sanction of time and was approved by the fore-
fathers, only the profane would suggest abolition or alterations and
IV. A vested interest record keeping may be easier to defend in government what is
the primary purpose of fiscal accountability namely democratic responsibility to the
public at large.
A public official has two types of such accountability:

 FIDUCIARY,
 ACCOUNTABILITY FOR THE EXERCISES OF WISDOM AND
JUDGMENT IN MAKING FISCAL DECISION.

Fiduciary refers to faith, trust and confidence. This is a quality expected of bankers,
trustees and treasures. Such accountability plays a very important role in these areas
where custodianship predominates, the work of treasurer and cashiers investment of
trust funds and warehousing. Loss in these areas is fairly well-guarded by traditional
bonding, auditing, record keeping, reporting and regulations by law. The other type of
accountability involves more discretion. It goes further than custody and stewardship
and enlists the dynamic policy determining quality of management. In other words

17
this kind of accountability asks whether the fiscal officers are “good managers”.
Much of the business of any government is conducted away from the capital in the
field offices and establishment, army installation and civilian institutions. Some of the
business of federal government has always been carried on overseas. In any case, it is
convenient and usually necessary to advance funds to disbursing officers to pay for
current services, supplies and equipment. They are accountable for the funds they
receive.
Collection of public revenue also occurs at many points out side the capital.
Collectors of customs, taxation officers and other receivers of public money are
scattered far and wide. They are accountable for the funds they collect. The general
rule is that every official or employee receiving, collecting or using public money is
accountable for its proper application. A head of department is as accountable as a
lower.
In modern times, the first accountability is to the employing agency by means already
described involving agency accounting and fiscal officers. The second and conclusive
accountability is to an independent audit. Finally every one is accountable to
Almighty Allah. Fiscal accountability in simple terms means that a receiving officer
must demonstrate that his collection was authorized by law, was correct, was
supported by authenticating documents and was deposited in full, all in accordance
with statutory requirements.
Similarly, a disbursing officer must demonstrate that the payments he made
were authorized by law, authenticated by supporting documents, correct and in strict
accord with all formalities. The proof of each case must be complete and must satisfy
an independent auditing officer whose business is to detect errors, irregularities or
misappropriation. Financial transactions must not only be correct in fact but must e
supported by proper documentary proof. For example, To determine the validity of a
payment, an auditor will have an evidence of the authority of the disbursing officer,
the funds on the basis of which the payment was made and the effect of any relevant
statutory language in appropriation act, the receipt of money by the proper person was
made was actually performed, proof that charge was not excessive and presence of the
signature of disbursing officer and such of his superior as may be required. The
auditor will also ascertain that funds were available in proper Head, that all the papers
were in order that the arithmetic Calculations were correct and that claims were not
duplicate.
18
2.14 Purpose of audit & accounts department
Now we discuss the purpose of accounts and audit departments.

2.14.1 Audit
Audit department
The term “Pakistan Audit department” means the officers and establishment,
subordinate to the Auditor General of Pakistan, that are employed upon the audit or
upon the keeping of accounts of the federal government and of provincial
governments. It is very essential that a watch should be maintained over the financial
transactions of government and that the agency employed for the purpose should be
independent of the servants of government who are entrusted with the realization and
utilization of public money or properties. The task is entrusted in Pakistan to
“Pakistan Audit and Accounts department”

2.14.2 Accounts
Accounts department
So far as its audit duties are concerned, the position of the Pakistan Audit department
in relation to government transactions is exactly the same as that of an “Auditor”. It
must ensure that the accounts maintained truly represent facts that the rules and order
framed by competent authority in regard to financial matters have been followed and
that the expenditure has been incurred with due regularity and propriety, and must
bring to the notice of competent authority and irregularity in connection therewith In
order to achieve the object stated above, it is laid down in article 168 of the
constitution of “Islamic Republic of Pakistan”, 1973 that
I. There shall be an Auditor General of Pakistan who shall be appointed by the
president.
II. Before entering upon office, the Auditor General shall make before the chief
justice of Pakistan oath in the form as set out in the constitution.
III. The terms and conditions of service including the term of office of the
Auditor General shall be determined by an Act of parliament and until so
determined by the order of the president.
IV. A person who has held office as Auditor General shall not be eligible for
further appointment in the service of Pakistan before the expiration of two
years, after he has ceased to hold that office.

19
V. The Auditor General shall not be removed from office except in the like
manner and on the like grounds as a judge of the Supreme Court.
VI. At any time, when the office of the Auditor General is vacant or the Auditor
General is absent or unable to perform functions of his office due to any
reason, such other person as the president may direct shall act as Auditor
General and perform the functions of that office.

2.15 Functions & powers of auditor general of pakistan

The auditor General of Pakistan performs two fold responsibilities with regard to
Accounts and Audit. He performs his duties through his subordinate Audit and
Accounts offices.

2.15.1 Accounts
Accounts
1. The auditor general shall be responsible for keeping of the accounts of the
federation and of each province other than accounts relating to defense and railway.
2. The auditor general shall prepare annual accounts showing the annual receipts and
disbursement for the purpose of federation and of each province and these annual
reports are submitted to the president and the governor of each province respectively.

2.15.2 Audit
Audit
The Auditor General is empowered:
1. He audit all expenditure incurred from the revenues of federal government and of
provinces to ascertain whether moneys shown in the accounts as disbursed were
legally available for and applicable to the service or purpose to which the have been
applied or charged and whether the expenditure conforms to the authority which
govern it.
2. The audit all transactions of federal government and of the provinces relating to
debts, deposits, sinking funds, advances and remittance business.
3. To audit all training, manufacturing and profit and loss account and balance sheet
in any department of central or provincial governments.
4. The receipts of any department of federal or provincial governments.

20
5. The accounts of stores and stock kept in any office of the federal or provincial
governments. He is empowered to make rules as to the nature and extent of audit to be
followed in the raising and pursuing objections. He has authority to inspect any office
of accounts in Pakistan which is under the control of federal government or provincial
government including treasuries and such offices responsible for keeping initial
accounts which are submitted to him. The Auditor General has authority to require
that any book or documents relating to the transactions to which the duties in respect
of audit entrusted to him. The Audit Reports prepared by the Auditor General relating
to the accounts of federal government are submitted to the president who cause them
to be laid down before the National Assembly and the reports of a province is
submitted to the governor of province who causes that to submit to the provincial
Assembly for further discussion and action through Public Accounts Committees. The
Auditor General of Pakistan performs his above mentioned duties and Responsibilities
through his subordinate office as depicted in the organizational chart. The audit of the
accounts of federal & provincial governments is conducted by the director general
audit according to schedule and at the end of a year after discussion in the
departmental accounts committee meetings necessary audit reports are prepared. In
these audit reports serious irregularities committed by the departments are pointed
out. These audit reports after thorough scrutiny are submitted by the Auditor General
to the federal and provincial governments as the case may be for placement before the
Public Accounts Committee in the National/Provincial legislative for further action
and advice.
The function of the Pakistan Audit department is strictly based on the Fundamental
principle of audit, that its primary function is to verify the accuracy and completeness
of accounts to secure that all revenues and receipts collected are bought to accounts
under proper heads of accounts and that all expenditure and disbursements are
authorized, vouched and correctly clarified. Principle of government audit is to
recognize the clear distinction between additional and administrative functions.

2.15.3 Accounting
Accounting in a general sense, may be considered as a process in which the
transaction of an operating entity are documented, classified and recorded, for the

21
purpose of accumulating and providing financial information essential to the conduct
of designated activities. This definition may be expanded to include such features as
system design, which involves the development of recording methods and necessary
internal central; the documentation and verification of financial transactions; the
maintenance of records and books of accounts (book keeping); the continuous testing
of accuracy and propriety of the records, and of the effectiveness of internal control
(internal auditing), the periodic summary review of transactions practices and
procedures (external auditing).
Another definition in some-what different words is also there. Accounting
may be defined as the composite activity of analyzing, recording, summarizing and
interpreting the financial transactions of any economic enterprise.
Government accounting may be said to comprise these same activities for a
government entity that organized legislative, executive and judicial machinery of the
state, which by law governs and provides certain public services for citizens in
established geographical areas.

2.15.5 Government Accounting

Accounting is the “language” employed to communicate the financial
information, such information is sought for a variety of reasons, owners and
perspective owners of a business enterprise need to know about its financial status and
its prospects for the future. Bankers and suppliers appraise the financial soundness of
business organization and weigh the risk involved before making loans or granting
credit. Government agencies are concerned with the financial activities of business
organizations for the purposes of taxation and regulation. Employees are also vitally
interested in the stability and profitability of the organization that employees them.
The managers of business enterprises need a wide range of data of every fact of
operation much of which is made available through accounting. The managers of
small business may be thoroughly familiar with all operating and financial details and
hence need relatively little accounting information. As the size of a business unit
increases, the manager becomes farther and farther removed from direct contact with
day-to-day operations. He must be supplied with timely financial information about
various aspects of the business. The growth of large business units and have the
importance of accounting in organization has given rise to the expression that
accounting provides the “eyes and ears of management”.
22
In the modern world fresh needs, social or economic are emerging everyday.
Government tries their best to respond to these needs. With this aim in view, they
have to assume new functions and activities. This new trend is particularly noticeable
in the developing countries. There the government provides direct support in
development and utilization of resources and sometimes even directly participate in
the production process in major sectors of economy. In such circumstances, a sound
financial base for planning, coordinating and carrying out various functions and
activities is necessary. This, in turn, necessitates the use of efficient and modern
methods in accounting for those functions and activities.
Government accounting satisfies the needs of accountability and administrative
control of funds. Those responsible for the incurrence of expenditure have had to
render proper accounts of their park ranger and prove that the funds were spent in
accordance with the authority under which they were provided by the legislature. Not
only that, accounting is today needed to provide that various kinds of financial data
which are essential for such purposes as planning, program analysis and selection
budgeting, efficient management and control of cost.

2.15.3 Commercial Accounting V/S Government Accounting

The principles of commercial and government accounting differ in certain
vital points. The main aspects of contrast are those of functions, principles, methods
and purposes. The main function of a commercial concern is to trade i.e. to take part
in production, manufacturing or inter change of goods or commodities between
different groups or individual and thereby to make profit. On the other hand, the
function of government is to govern a country and for the discharge of that function to
administer the several departments of its activities in the best possible way.

As far as the principles are concerned, a non government commercial concern

deals preliminary with the utilization of capital for the purpose of making profit and it
is interested to see at intervals how it stands in relation to its debtors and creditors
whether it is gaining or losing, what are the sources of its gain a loss, and whether it is
solvent or insolvent. In order to obtain ready answer to these questions, the concern
has to keep a system of detailed account. In respect of each person dealt with, each
class of asset held, each article dealt in, it maintains a separate account so that the
result of the transactions in each case may be ascertained.
23
 On the other hand, the activities of a good Government in any country are
determined by the needs of the country. The main branches of its activities being
known, it is a matter for decision what expenditure will be necessary during any year
in carrying out, these activities. After a decision has been reached on these points, it
becomes necessary to determine how to raise sufficient money to meet that
expenditure.

The classification in the accounts of the transactions of the Federal and

Provincial Governments is determined firstly by the administrative classification of
the activities and secondly by the classification of the nature of the transactions. The
accounting is, therefore, more elaborate than that followed in commercial accounts.
But the immediate objective of Government Accounts is not to ascertain the gain or
loss on the transactions of the Government as a whole in carrying out these activities.

In the two cases the methods utilized for preparing accounts also differs. It is
the Generally Accepted Accounting Practices (GAAP) in the commercial world to
maintain account books by the “Double Entry” system, which in based on the fact that
is every transaction or financial change two parties or accounts are involved, one
giving and the other receiving. Under that system every transaction requires two
entries in the books, one against the party or account giving and the other against the
party or account receiving.

The mass of the Government Accounts is kept by single entry. Single entry
system means a system under which single effect of financial transaction is recorded
in book of accounts. For example when revenue3 is realized only receipt entry is
recorded and its corresponding effect is not exhibited. Similarly when a payment is
made only the entry concerning the payment is recorded.

Non-Government commercial accounts are designed to show how much

money the concern can put in to the pockets of the proprietors consistently with the
maintenance of a profit earning standards of the concern. In contrast to this,
Government Accounts are designed to enable government to determine how little

24
money it need take out of the pockets of the tax payers in order to maintain its
necessary activities at the proper standard of efficiency.

2.15.4 Legislative Requirement

Overall control and release of funds is exercised by the legislature. All financial
matters in government are subject to consideration, approval and review by the
legislature. The extent and nature of this control by the legislature may vary among
countries for a number of reasons and may also differ according to the kind of
activities involved. The fact, however, the executives propose remains that plan of
expenditure while these are reviewed, sometimes modified, and approved by the
legislature. The approved proposals are executed as an executive responsibility, and
operation are in the last process, subjected to a past review by the legislature.
Executive authorities carry out the responsibility assigned to them with the funds
made available to them by the legislature. These authorities posses no intrinsic power
for raising revenue or incurring expenditure. In financial matters, they exercise only
the delegated authority, which comes from the legislature, basic law or the
construction of the country.

2.15.5 Accountability requirement

The government servants, entrusted with the performance of financial acts, of the
various rungs of the governmental setup, are accountable to the extent of their
respective assignments. In order to demonstrate this accountability some mechanism
is required. And it is these accounts, which prove the means of measurement of the
extent to which that accountability has been fulfilled.

2.15.5.1Control of funds requirement

The preparations of complete and accurate accounts are also needed as means
to facilitate an adequate control on funds allocated for the several purposes.

2.15.5.2International requirement
The maintenance of the correct, proper and complete and accurate in all senses
is required for the satisfaction of international bodies like the Internal Monetary Fund
(IMF), Aid to Pakistan consortium, Asian Development Bank (ADB) etc.

25
2.15.5.3Competition Requirement
Again in order to provide a sense of healthy competition in the efficient
working amongst the several departments of the government, the upkeep of accounts
on correct lines, is essential.
Features of accounting system of Pakistan
Accounting system of Pakistan has several features discussed as under.

2.15.5.4 Cash Book

Accounting system of Pakistan is based on actual receipts and payments of cash and
not on the basis of accruals of right and obligations. This book is maintained at
District Accounts Office.

2.15.5.5 Single Entry System

Accounting transactions are recorded on single entry system. Now government
has developed its system to New Accounting Model and doing double entry system
with help of computer software SAP. Now accounting transactions are recording on
double entry system.

2.15.5.6 Basic Accounting Unit

DAO’s of civil Government are the basic accounting units in Pakistan.
These offices perform the dual function of maintaining the accounts and auditing.
Therefore DAO’s are consisting of Audit staff under the AGP (Auditor General of
Pakistan) and Account staff under the Control of Finance Department of provincial
Government.

2.15.5.7 Closing the Accounts

Formally accounts of the Government of Pakistan are closed annually or at the
end of each financial year. But DAO’s closed its accounts on half yearly and monthly
basis which helps the DAO’s to constitute annually closing. Government financial
year starts from 1st July and ends on 30th June every year.

2.15.5.8 Compilation and Consolidation of Accounts

26
 After the basic accounting units have put together the figures of Expenditures
and receipts etc. In different heads of accounts these are sent to the accounts and audit
department for compilation. After compilation of accounts these are sent to executive
government.

2.15.5.9 Centralization of Accounts

The government accounts of Pakistan are centralized in the sense that while the
receipts are made by the administrative departments. The need to remove this
anomaly has been felt and duty of maintaining the initial and intermediate accounts is
being entrusted to the department concerned. So far this process has been completed
in respect of Defense, Foreign affairs, Railways, Forest, National savings, Post office,
Telephones and Telegraphs etc. Same process prevails in other departments and is
under review and study.

2.15.5.10 New Accounting Model

NAM has been adopted as the accounting model for Pakistan.
Recording of commitments, fixed assets and certain Assets and Liabilities are the
aspects and features of NAM.

2.15.5.11 Commitments
Recording of commitments did not have an immediate impact on the cash
position but do have effect on the budget availability.

2.15.5.12 Fixed Assets

NAM introduces recording of Fixed Assets which would help in effective
maintenance and monitoring. The availability of a list of Fixed Assets and their value
would greatly help in assigning responsibility for the care and maintenance of
accounts.

2.15.5.13Certain Assets & Liabilities

The recording of certain Assets and Liabilities as part of modified cash basis of
accounting will help in providing useful information for decision making and for
disclosure in the financial statements. The difference should be noted that using the
cash basis of accounting or previous system of accounting helps in controlling the
27
 cash against budget amounts and allows only the statement of receipts & payments to
be generated. The Modified Cash Basis of accounting or NAM on the other hand
helps in controlling not only cash but also commitments against budget allowing the
production of statement of Assets and Liabilities and a cash flow statement

2.16 Field Offices.

2.16.1 Six Posts of District Comptroller of Accounts(B-19)

Sr. Name of District Date of

District Phone No Fax Number
No. Comptroller of Accounts Establishment
Shahid Pervez Bhatti
(DCA) )  0992-9310219 9310352
1 Haripur 01/04/1970
Sardar Muhammad Saleem 9310351 9310138
(ADAO)
Muhammad Iqbal (DCA) 
0937-9230229
2 Mardan Raj Dali (DAO)  9230209 01/03/1970
9230066
Ashfaq Anwar (ADAO-II)
Habib ur Rahman (DCA)  0946-9240346
3 Swat 01/01/1971
Murad Ali (ADAO) 9240345
Muhammad Aamir Zulfiqar
(DCA) 
4 Bannu 0928-9270030 9270068 01/09/1970
Zaid Ullah (DAO) 
Muhammad Israr (ADAO)
Amanullah (DCA) 
0966-9280274
5 D.I.Khan Ghulam Ghaffar (DAO)  9280556 01/06/1970
9280273
Atta Ullah (ADAO)
Said Akbar (DCA) 
0922-9260302 9260302
6 Kohat Tasleem Badshah (DAO)  01/06/1970
9260316 515243
Anwar Kamal (ADAO)

28
 2.16.2 Eighteen (18) Posts of Senior District Accounts Officer(B-18)

Date of
Sr. No. District Name of District Accounts Officer Phone No Fax Number
Establishment
Afsar Ali (DAO)  0943-412625
7 Chitral 412109 01/01/1971
Shakeel Ahmad (ADAO) 412025
Iqbal Ahmad (DAO) 
8 Dir Lower 0945-9250143 01/01/1971
Sarzamin Khan (ADAO)
Muhammad Azam  0997-920175
9 Mansehra 920176 01/01/1971
Zahir Shah (ADAO) 920178, 920174
Sardar Haroon 
10 Kohistan 0998-407015 01/01/1977
Zulqarnain Qureshi (ADAO)
Noshar Khan 
11 Karak 0927-210529 210710 01/07/1982
Liaqat Ali Khattak (ADAO)
Sardar Aftab Ahmad (DAO) 
12 Nowshera 0923-9220119 9220266 01/07/1990
Muhammad Qasim (ADAO)
Sajid Khan (DAO) 
13 Buner 0939-510484 510448 01/08/1991
Muhammad Asad Khan (ADAO)
Sardar Muhammad Haroon (DAO)  0995-615464
14 Haripur 01/08/1992
Atta ur Rehman Abbasi (ADAO) 611568
Khalid Kamal 
15 Lakki Marwat 0969-538137 538330 01/08/1992
Qayum Khan (ADAO)
Muhammad Shakoor 
16 Tank 0963-511226 511713 01/08/1992
Arif Ullah Khan (ADAO)
Muhammad Ayaz 
17 Batagram 0997-310413 01/07/1994
Mushtaq Ahmad (ADAO)
18 Dir Upper Nisar Ahmad 0944-880820 890118 01/01/1998
Mirza Ali Khan 
19 Swabi 0938-221253 01/07/1999
Hassan Tariq Sheikh (ADAO)
20 Charsadda Muhammad Siyar (ADAO) 091-9220176 9220182 01/07/1999

21 Shangla Momin Khan 0996-850773 850773 01/07/2001

Saeed ur Rahman 
22 Hangu 0925-623290 01/07/2001
Syed Mujahid Hussain Shah (ADAO)
Saleem Khan (DAO) 
23 Malakand 0932-411451 411002 01/04/1970
Muhammad Yaqoob (ADAO)
0997-920177 -
24 Tor Ghar Aziz-ur-Rehman
- -

29
 2.16.3 Seven (07) Posts Agency Accounts Officer

Date of
Sr. Name of Agency
District Phone No Fax Number Establishmen
No. Accounts Officer
t
25 Bajaur Maqsood Jan 0942-220356 220388 01/07/1982
26 Miranshah Gul Moheet 0928-300541 300741 01/07/1982
Gohar Ali (AAO) 
27 Khyber Mukarram Khan (Addl. 091-5827895 01/07/1982
AAO)
28 Tank Ijaz Ahmad Jatoi 0963-512553 512553 01/07/1982
Mohmand Naseem Khan (AAO)  0924-290176
29 290293 01/07/1980
Ghallani Sajjad Anwar (Addl. AAO) 290234
621542
30 Orakzai Aitibar Khan 0925-922920 01/07/1982
620060
31 Kurram Nawab Khan 0926-310497 01/09/1970

30
2.17 Function of district account office
The district accounts offices in Pakistan are mini Accountant General’s
Offices in each district. These offices perform same function at district level as
performed by the Accountant General’s Office at provincial headquarter. The account
of federal/provincial government are compiled at district level and monthly account
after consolidation is submitted to the accountant general’s office at provincial
headquarter for merger in provincial account. Various functions of accounts office are
categorized and divided or converted into different sections due to huge amount of
work.

2.17.1 Main Functions

Following are the main function performed by the district account office Haripur.
 Maintenance the accounts pertaining to Federal departments in KPK.
 Pension
 Maintenance of G.P. Fund Accounts.
 Pre Audit of personal claims of all gazzetted/non gazzetted staff.
 Payment of various loans and advances, civil advances and permanent advances of
non-developed departments in ATD on behalf of Federal Govt and issuance of
cheques after processing claims on this account at National Bank of Pakistan at
ATD.
 Compilation of monthly accounts

Following are areas discussed where I have work during my internship I have
discussed these areas along with complete work procedures along with document and
forms in annexes .

2.17.2 GP Fund Section and Its function:

 Maintenance of GP fund accounts of the subscribers.
 Preparing balance sheet.
 Advance and Transfer of GP Fund
 Final Payment.

31
 2.17.3Basic function of GP fund
The district accounts officer is responsible to maintain Government Provident
Fund accounts of civil employees of his district like a banker. G.P Fund is a
compulsory saving scheme for the benefit of civil employees. A monthly deduction
at fixed rate, pay scale wise is made on this account form on the basis of salaries of
employees. These monthly deductions are maintained in the individual ledger
account in district account office. The total accumulation along with interest accrued
thereon is paid to employee on his retirement from service.

2.17.4 G.P Fund Advance

During the service an employee can take advance from his G.P Fund account
for some immediate reason. These advances are refundable by the civil employee and
accounted for in his ledger account. A civil employee can take three times 80% non
refundable advances during his entire service on reaching the age of 45years, 50 years
and 55 years. These advances are treated part of final payment of his G.P Fund
account. Deductions made from pay bills are regularly posted in ledger account by
the concerned auditor posted in G.P Fund section under the supervision of assistant
account officer.

2.17.5 Procedure to approve advance

A Subscriber is a person who desires an advance out of his G.P Fund.
Accounts officer, the head of accounts office is a person who sanctions such advancer
in his favor if admissible to him.
To issue advance to subscriber process is called OFFCYCLE that is

Step 1
 On the basis of balance sheet of subscriber bill are form by DDO of employee
department proper form is prepared by the department called source -5
Step 2
 The bill along with sanction letter is deposed at pre audit counter of district
accounts office i.e counter sanction The counter section issues a token/dairy
no

32
 Step 3
 Sends claim in G.P Fund section. This sanction passes bill in ledger account of
the subscriber and record a payment order on it. Pre audit claim on claim
verification Performa.
Step 4
 The D.A.O signs this payment order. D.A.O and special seal is embossed on
it.
Step 5
 This passed bill is sent to the HR for processing OFFCYCLE Entry on SAP
R/3.
Step 6
 After processing claim on system credit advice are prepare and sent to
subscriber bank.
Step 7
 After that deduction are made from subscriber in case of refundable GP fund
amount return in minimum 12 and maximum 36 installments.

2.17.6 Other Document requirement

The following documents are essentially be furnished to DAO for Temporary
Advance
The important information given below
 Pay Bill (for BPS 16 and above).
 Source-5 duly completed in all respects.
 Sanction from the competent authority mentioning therein Number & date
 Copy of last Balance Sheet
 Copy of Computerized NIC
 Number & date of Credit Memo balance thereby transferred from other
DAO/AAO.
2.17.7 G.P Fund Transfer Case

 Name & designation.

 G.P Fund Account Number.
 Personal Number.

33
 Copy of Computerized NIC.
 Copy of last Payroll.
 Application duly signed by subscriber
 Number & date of the balance transferred from any other DAO/AAO.
 Copy of Last Pay Certificate (LPC).

2.17.8 GP fund transfer form

DISTRICT COMPTROLLER OF ACCOUNTS HARIPUR.

NO.FUNDS/DCA/ATD TEL#

TO

THE DISTRICT ACCOUNTS OFFICER

DATED Ledger

Volume_________
Page___________

Subject: Transfer of GP Fund balance in respect of _________________

S/O________________ Account no _____________________

Memo:

Reference of your memo no ___________ Dated___________ a sum of

RS________ Rupees___________________________ stands at the credit of above
named subscribers up to Account no _____________is being transferred to your
officer for adjustments in the account for the month ___________________

34
 The interest on the amount transferred has been allowed up to _________

Note: In case of any difference of duplication the same may please be return in
original.

DETAIL OF CREDITS:

Credit From To @Rs Rs

Credit From To @Rs Rs
Credit From To @Rs Rs
Credit From To @Rs Rs
Total Rs
RUPEES:

Seal of

District Comptroller of
accounts ATD

Form 3.1

2.17.9 Claim Verification Performa

35
(GCVP)

     
   
Cost Center   DESCRIPTION  
   
Personal Number   Name  
   
   
GPF Account Number    
   
Bank Code   Bank Name  
   
Branch Code   Branch Name  
   
Bank Account Number    
   
   
verified by Junior
Serial Number of Fund Payment Control Register Auditor
   
   
   

   

Signature of Subscriber   Signature of DDO

Form 3.2

2.17.10 G.P Fund Final payment

On retirement of a subscriber his G.P Fund final payment case is prepared by
the department and sent to the district accounts office for final settlement of his
account. The district accounts officer after the rough verification of his account, issues
a G.P Fund final payment authority in his favor.

36
2.17.11Form 10 containing the following information

 Name (with father's name of the retired/deceased etc. civil servant.)

 Designation of the post held.

 G.P Fund Account Number/Numbers assigned by the Accounts Office.

 Name, age, relationship of the Nominee (in case of death of subscriber).

 A certificate from the DDO stating whether any advance from the fund was
granted to the subscriber during the previous 12 months, and if
so full particulars of the advance.

 Amount/month of Last Fund Deduction (copy of Pay Roll).

 Duly signed by the applicant and DDO.

 Photocopy of Computerized NIC.

 Copy of Pay Roll in which G.P Fund deduction ceased.

 Pay Stoppage Certificate duly signed by DDO concerned.

 Application in original by the subscriber for Final Payment

 Number and date of Credit Memo balance thereby transferred from other
DAO/AAO.

Final Payment Authority Form

OFFICE OF THE

COMPTROLLER OF ACCOUNTS HARIPUR

37
 NO. Funds/F.P_________ Phone
NO_______

Dated __________ Dated

_______

To The

Subject: FINAL PAYMENT AUTHORITY IN RESPECT OF ___________

Account No IV________________ Personal

No_________

Memo: Reference your form –10 bearing no_____Dated_______

The GP Fund account of above named subscriber of your Deptt:/office has been
checked and found that RS________

RUPEES_____ are available at his credit up to_____________________

For payment to him/her on this/Retirement etc.

You are requested to prepare his /her claim /direct the officer to prepare his/her
claim indicating Bank account ad submits at pre audit counter of his office along
with photo copy of this authority for authorizing payment.
After payment disbursement certificate along with payee receipt duly attested may
be furnished.
C: CZ_50 and Computer Form Source –06 May be attached

SEAL DISTRICT COMPTROLLER OF ACCOUNTS

From 3.3

2.17.12 G.P Fund Balance Sheet

The district accounts officer is required to issue a G.P Fund balance sheet in
each year after closing of yearly account showing G.P Fund balance up to 30th June

38
each year and interest earned by the subscriber. This balance sheet is for the
satisfaction of a subscriber.

2.17.13 BALANCE SHEET OF SUBSCRIBER

OFFICE OF THE_________________

YEARS OF ACCOUNTS___________

Name of Subscriber_______________ Account

No_____

OPENING DEPOSIT MONTH INTREST WITHDRAWALS

BALANCE DURING & FOR DURING YEAR
YEAR YEAR YEAR

RATE AMOUN
T

39
 Signature_________

Designation_______

Dated__________
Form 3.4

Note

1) Subscriber is requested to state whether he desires to make any alteration

in any nomination made under the rules of fund.

2) In case where the subscriber had made no nomination in favor of member

of his family owing to his having no family at the time but acquire a family thereafter
the fact should be reported to the accounts officer forth with together with a formal
nomination.

3)The subscriber is requested to satisfy himself as to the correctness of the

statement and to bring errors if any to the notice of account officer with in three
month from the date of its receipt.

Scale Wise GP fund deduction/rates

BPS 2003 2005 2007 2008 2010 2012 2018 2015
1 20 25 35 50 85 100 130 212
2 20 40 60 85 145 170 230 373
3 25 45 65 85 160 180 250 403
4 25 45 70 90 170 190 270 433
5 30 50 70 95 180 210 290 465
6 30 50 75 100 195 220 305 498
7 50 55 80 100 205 230 320 530
8 50 60 85 110 215 250 340 563
9 60 60 90 120 230 260 365 595
10 60 65 95 125 245 280 395 635
11 70 70 100 130 165 300 415 675
12 70 75 105 145 455 520 720 1160
13 80 130 180 250 495 580 780 1260
14 80 140 195 265 540 620 850 1372

40
15 100 150 225 285 585 670 925 1520
16 150 175 250 325 660 760 1050 1760
17 200 250 350 450 870 1000 1380 2240
18 250 300 425 460 1120 1290 1780 2800
19 350 400 575 780 1485 1700 2350 3760
20 400 500 675 920 1710 1970 2715 4196
21 450 550 775 1040 1905 2190 3025 4656
22 500 600 850 1120 2100 2410 3330 5148
Table 3.
2.17.14 GP FUND INTREST RATES
Year Rate of Interest Year Rate of Interest
1963-64 04.00 1989-90 15.93
1964-65 05.00 1990-91 15.93
1965-66 05.25 1991-92 15.93
1966-67 06.00 1992-93 15.93
1967-68 06.00 1993-94 15.54
1968-69 06.25 1994-95 15.44
1969-70 06.25 1995-96 15.49
1970-71 06.25 1996-97 16.76
1971-72 06.50 1997-98 17.51
1972-73 07.25 1998-99 17.35
1973-74 08.25 1999-00 16.11
1974-75 10.25 2000-01 15.00
1975-76 10.50 2001-02 15.00
1976-77 10.75 2002-03 14.50
1977-78 11.75 2003-04 13.50
1978-79 12.00 2004-05 12.00
1979-80 12.50 2005-06 10.50
1980-81 13.00 2006-07 11.00
1981-82 13.00 2007-08 12.50
1982-83 13.20 2008-09 15.00
1983-84 14.00 2009-10 14.00
1984-85 14.60 2010-11 14.20
1985-86 14.72 2011-12 13.70
1986-87 14.66 2012-13 12
Table 3.2

Interest calculation Formula: Progressive Total *rate of interest of that

year/1200

2.17.15 Process reports on SAP R/3

41
 SAP R/3 is use to process report on daily monthly semi annually quarterly
yearly basis
The reports I learn during my internship are FBVO /ZRP

FBVO by which Parked document are created which can be edit and ZRP post
document which can be edit only by transfer entry

42
 Chapter 3
Departments Under ACCOUNTANT GENERAL (AG) PESHAWAR

3.1 Department Of AG Peshawar:

 Establishment and General Administration Department
 Judiciary
 Education Department
 Labor Commerce and Industries
 Police Department
 Irrigation Department
 Excise Department.
 Works & Services Department
 Environment Department
 Agriculture Department
 Health Department

3.2 Compilation and Functions

 Recording of Recoveries on account of advances like GP fund
 House building
 Motor car
 Motor cycle Advance
 Sorting of manual bills
 Preparation of payment of expenditure & Receipt of the Govt of KPK

3.3 Pension and Functions of pension sections

 Pension Cases of Provincial Employees.
 Family pension cases of the deceased employees.
 Revision cases.
 Restoration cases of the Pensioners.
 Post Audit of Pension Payments
 Pension Payment authorities from AG KPK

43
  To other provinces And
 From other provinces
 To KPK

3.4 PAYROLL SECTION

PAYROLL-1
 Excise & Taxation
 City District Govt
 District coordination Office
 Deputy Director C & W Highway division
 District Sport office
 Deputy Director WS & S
 Town Administration
 Civil Defense Office
 District Project Manager
 DCO Urban Development
 District office Revenue & Estate
 Human Resource Development
 HM GHS Nkband Peshawar

PAYROLL-2
 District Officer (Female) School and Literacy
 Deputy District Officer (Female)
 Head Mistress GGHS Civil Quarters
 Principal GHHS Uri Town Peshawar
 Prlg GHS Sbagum shahabuddin
 Principal GHHS Dabgari Gate
 Head Mistress GGHS Nishter
 Head Mistress GGHS Umer Miana
 Head Mistress GGHS Tarnsh Farm
 Prl Govt Centennail Model High School for Girls Nauthia Peshawar
 Head Mistress GHHS Khyber

44
  Head Mistress GGHS Wazir Bagh
 Head Mistress Govt GHS Budni Peshawar

PAYROLL-3
 District Officer (male) School and Literacy
 Deputy District Officer (male) Primary Education
 Superindendent Govt Institute For Blind Peshawar
 Dv: Dir Distt Govt Works & Service, Peshawar
 Distt Officer Social Welfare

PAYROLL-4
 IG of Police,Peshawar
 Chief Capital City Police, Peshawar
 Commandant Frontier Reserve Police KPK
 Advocate General Kpk Peshawar
 SP Traffic Peshawar
 IG prisions KPK
 Asitt Agri Eng Tarnab Peshawar
 District Public Procsecuter Peshawar

PAYROLL-5
 Peshawar High Court
 District and Session Judge Peshawar
 Senior Civil Judge
 Special Judge Anti Corruption
 Governor House
 Governor Secretariat
 Governor Inspection Team
 Director PBMC
 Establishment and Administration department

45
PAYROLL-6
 Law department
 Home and Tribal Affairs department
 IG Police
 IG prisons

PAYROLL-7
 Secretary Provincial Assembly
 Irrigation department
 Excise and Taxation department
 Information department
 Revenue and Estate department
 Hajj and Aquadepartment
 Works and Services department
 Relief Commissioner

PAYROLL-8
 Education Department
 Higher Education
 School & Literacy
 Director Archives and Library
 Manager Employment Exchange
 Director Archaeology and Museum
 Director P&D World Food Programmed
 Assistant Director UPE/NCHD
 Project PFTB
 Project SWAP-II
 Project Basic Education
 RIT Education PITE
 RIT Education (Male & Female)
 Director ESRU
 Weight & Measurement

46
  Director Transport
 Labor Court
 Industries department
 Director EPA + Project
 Fisheries department

PAYROLL-9
 Health Department
 Planning and Development department
 Provincial Health Services Academy
 Bureau of Statistics

PAYROLL-10
 Agriculture Department
 Finance Department
 Sports, Culture and Tourism Department
 Social Welfare, Zakat and Usher Department

47
3.5 DIFFERENT SECTIONS
FUND-I
 Education Department (District)
 Agriculture Department (District)
 Health Department (District)

FUND-II
 Environment Department
 Agriculture Department
 Health Department

FUND-III
 Police Department
 Irrigation Department
 Excise Department.
 Works & Services Department

48
FUND-IV
 Establishment and General
 Administration Department
 Judiciary
 Education Department
 Labor Commerce and Industries

3.6 Book section and its functions

 Preparation of monthly civil account.
 Compilation of accounts prepared by District/Agency Account Offices.
 Coordination of Suspense/Exchange accounts.
 Maintenance of SBD Account I, II & IV
 Reconciliation of Accounts

3.7 DA section and its functions

 Reconciliation with Provincial Departments at controlling level.
 Preparation of classified abstract received from various Districts Accounts
Officers.
 Preparation of FMC Reports.
 Preparation of MIS Reports.
 Providing Expenditure Figures for Appropriation Accounts.

3.8 WAD section and function

Accounting and post audit of works accounts Deposit Loan and Functions Advances
for
 HBA
 Motor cycle Advance
 Cycle Advance to non gazetted employees
 Watching their recoveries
 Maintenance of PLA / SDAS
 Assignment Accounts

49
  Reconciliation of the assignment Accounts & PLA of variousDepartments and
projects
 Lapsed deposits of revenue department
 Court cases

3.9 GP Fund Section and Its function

 Maintenance of GP fund accounts of the subscribers.
 Preparing balance sheet.
 Transfer of GP Fund.
 Final Payment.
GP Fund section provides two types of advances to the subscriber

3.9.1 TYPES OF G.P FUND

a) Permanent /Non refundable loan.
b) Refundable loan / Temporary loan

3.9.2 REQUIREMENTS FOR G.P FUND WITHDRAWAL

G.P Fund Final Payment
Form 10 containing the following information:-
1. Name (with father's name of the retired/deceased etc. civil servant.)
2. Designation of the post held.
3. G.P Fund Account Number/Numbers assigned by the Accounts Office.
4. Name, age, relationship of the Nominee (in case of death of subscriber).
5. A certificate from the DDO stating whether any advance from the fund was
granted to the subscriber during the previous 12 months, and if so full
particulars of the advance.
6. Amount/month of Last Fund Deduction (copy of Pay Roll).
7. Duly signed by the applicant and DDO.
8. Photocopy of Computerized NIC.
9. Copy of Pay Roll in which G.P Fund deduction ceased.
10. Pay Stoppage Certificate duly signed by DDO concerned.

50
 CHAPTER NO 4
Financial Analysis

4.1 Financial Analysis

4.1.1 FINANCIAL REPORT OF THE AG STATEMENTS OF CASH

RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 30/06/2018
2018 2017
Rupees in Millions Rupees in Millions
Receipt and
Payment Receipt and Payment
Contributed by Contributed by Govt
Govt
Operations
Salaries and Employees Benefits 140576 56982
Operating Expense 80109 55292
220685 112274
Transfer
Grands ,Subsidies and Write-off of
10890 4405
Loans
Other Transfer Payments 8279 6586
19169 10991
Expenditure on
Physical Assets 3383 998
Civil Works 28453 33174
31836 34172
Debt and interest payments
Principal Repayment of Debt 16952 13653
Servicing of Debt 6255 5692
23207 19345
Other Payments
Loan and Advance 6276 5996
Investments 9500 9000
15776 14996
Payments of Districtt Govt 54 84618
TOTAL PAYMENTS 310727 276396
NET PAYMENT OF PROVINCIAL
23664 (10335)
CONSOLIDATED FUNDS
NET RECEIPT OF PUBLIC
17334 2060
ACCOUNT

51
INCREASE/(DECREASE) IN CASH 40998 (8275)
CASH AT BEGINNING OF THE YEAR 14071 9607
DECREASE IN CASH 40998 (8275)
CASH AT THE END OF THE YEAR 55069 14071
Table 1 Balance Sheet

52
4.1.2 HORIZONTAL ANALYSIS OF STATEMENTS OF RECIEPTS AND
PAYMENTS FOR THE YEAR ENDED 30/06/2018
2018 2017
Dollar
Rupees in Rupees in
change
Millions Millions
Receipt and Receipt and
Payment Payment
Contributed by Contributed by
Govt Govt
Operations
Salaries and Employees Benefits 140576 56982 83594
Operating Expense 80109 55292 24817
220685 112274 108411

Transfer
Grands ,Subsidies and Write-off
10890 4405 6485
of Loans
Other Transfer Payments 8279 6586 1693
19169 10991 8178

Expenditure on
Physical Assets 3383 998 2385
Civil Works 28453 33174 (4721)
31836 34172 (2336)

Debt and interest payments

Principal Repayment of Debt 16952 13653 3299
Servicing of Debt 6255 5692 563
23207 19345 3862

Other Payments

Loan and Advance 6276 5996 280

Investments 9500 9000 500
15776 14996 780
Payments of Districtt Govt 54 84618 (84564)
TOTAL PAYMENTS 310727 276396 34331
NET PAYMENT OF
PROVINCIAL CONSOLIDATED 23664 (10335) 33999
FUNDS
NET RECEIPT OF PUBLIC 17334 2060 15274

53
ACCOUNT
INCREASE/(DECREASE) IN
40998 (8275) 49273
CASH
CASH AT BEGINNING OF THE
14071 22346 (8275)
YEAR
DECREASE IN CASH 40998 (8275) 49273
CASH AT THE END OF THE
55069 14071 40998
YEAR
Table 2 Horizontal Analysis

54
 4.1.3 PERCENTAGE ANALYSIS OF CASH RECEIPTS AND
PAYMENTS FOR THE YEAR ENDED 30/06/2018
2018 2017
Rupees in Rupees in % Analysis
Millions Millions
Receipt and Receipt and
Payment Payment
Contributed by Contributed by
Govt Govt
Operations
Salaries and Employees Benefits 140576 56982 146.70%
Operating Expense 80109 55292 44.88%
220685 112274 96.55%
Transfer
Grands ,Subsidies and Write-off
10890 4405 147.21%
of Loans
Other Transfer Payments 8279 6586 25.70%
19169 10991 74.40%

Expenditure on
Physical Assets 3383 998 238.97%
Civil Works 28453 33174 (14.23)%
31836 34172 (6.83)%

Debt and interest payments

Principal Repayment of Debt 16952 13653 24.16%

Servicing of Debt 6255 5692 9.89%
23207 19345 19.96%

Other Payments

Loan and Advance 6276 5996 4.66%

Investments 9500 9000 5.55%
15776 14996 5.20%
Payments of Districtt Govt 54 84618 (99.93)%
TOTAL PAYMENTS 310727 276396 12.42%
NET PAYMENT OF
PROVINCIAL 23664 (10335) (328.96)%
CONSOLIDATED FUNDS

55
NET RECEIPT OF PUBLIC
17334 2060 741.45%
ACCOUNT
INCREASE/(DECREASE) IN
40998 (8275) (595.44)%
CASH
CASH AT BEGINNING OF THE
14071 22346 (37.03)%
YEAR
DECREASE IN CASH 40998 (8275) (595.44)%
CASH AT THE END OF THE
55069 14071 291.36%
YEAR

Table 3 Percentage Analysis

4.2 PERCENTAGE ANALYSIS OF REPORT
Roughly what percentage of individuals in a second sample from a population might
express a particular at- titude. ; and the Pearsonian r as a measure of resemblance
between the attitude patterns of two populations. Caution is urged in the use of tests of
statistical significance when applied to attitude data.
Through percent analysis of above stamens we know that salary and employee
benefits increase 146.70% , operating expense increase 44.88% , grands and subsidies
increase 147.21% , other transfer payment increases 25.70% , physical assets increase
238.97% , civil works decrease 14.23% , Principal Repayment of Debt increases
24.16% , Servicing of Debt increases 9.89% , Loan and Advance increases 4.66% ,
Investments increases 5.55% same way all the data is calculated.

4.3 HORIZENTAL (DOLLAR CHANGE) ANALYSIS OF REPORT

Horizontal analysis (also known as trend analysis) is a financial statement analysis

technique that shows changes in the amounts of corresponding financial statement
items over a period of time. It is a useful tool to evaluate the trend situations.

The statements for two or more periods are used in horizontal analysis. The earliest
period is usually used as the base period and the items on the statements for all later
periods are compared with items on the statements of the base period. The changes
are generally shown both in dollars and percentage.

Dollar and percentage changes are computed by using the following formulas:

56
Horizontal analysis may be conducted for balance sheet, income statement, schedules
of current and fixed assets and statement of retained earnings.

Through Horizontal analysis of above statements we know that salary and employee
benefits increase Rs. 83594 Millions, while operating expense increase Rs. 24817
Millions, Grand and subsidies increase Rs. 6485 Millions and other transfer payment
increase Rs. 1693 Millions, Physical assets decrease Rs. 2385 Millions, Civil works
decrease Rs. 4721 Millions, Principal Repayment of Debt increases Rs.3299 millions,
Servicing of Debt increases Rs. 563 Millions, Loan and Advance increases Rs. 280
Millions, Investments increases Rs. 500 Millions in the same way all the data is
calculated.

57
4.4 SWOT ANALYSIS
To carryout the SWOT and financial analysis of the Account Office through the help
of calculating the horizontal analysis is a situational which includes
 STRENGTHS
 WEAKNESS
 OPPORTUNITIES
 THREATS
That affects the organization performance.” The overall evaluation of a company
Strengths, Weakness, Opportunities and Threats is called SWOT analysis.
SWOT is a very important analysis for better implementation of over mission. It’s
goal is maximize over strength and opportunities. and minimize weakness and
threads.

4.4.1 STRENGTHS
 AG is one of the old offices in the province. Work for the longer period of
time in the Province.
 DAO Perform alternative duties at the time needed.
 The employee of the AG. Are offered reasonable monetary benefits are given
i.e. EID-UL-FITAR AND EID-UL –AZAH.This serves as additional benefits
and competency for the source of motivation for the employee.
 It has broad bases network of branches throughout the province, also one
office in every district. The subscribers are provided services at their nearest
possible place to confirm subscriber’s satisfaction.
 The employee of the AG office are strict followers rules and regulation
imposed by the AG .the discipline environment at office bolster is image and
also enhance the over all out put of the organization.
 The working condition in AG office branch here is very conductive and
favorable for batter output.
 The office enjoys a good plus point when it come to the employee officer
relationship, the hearing as removing of discrepancies if any, between the
employees And between the officer and employee.

58
4.4.2 WEAKNESS
 The strong political hold of some parties and Government and their
dominance is affecting the Account office in negative way They have to
provide loan under the pressure , which leads to uneven and adjusted
feeling in the office employee.
 The promotion and allowances etc in office are often powered by senior’s
favoritism or depends upon their wills and decisions .This adds to negative
factors, which dominate the employees thus resulting in affecting their
performance negatively.
 The Accounts office falls far behind when the innovative new schemes are
considered. It has not been involved in the tug of war between the
competitors to the accounts and the strengthens the existing subscribers base.
This stands out to be the major incompetence and weakness of the office.
Inefficient counter services in the rush hours during the rush hours, the
Accounts office is founded out to be a total flop to handle the mob of people
speaking from windows and doors .The office has deficiency to operate in the
stages of rush hours.
 The Accounts office lack the strength of being powered by the network of
computers, which have saved time, energy and would have lessened the
mental stress ,the employees have currently ,this would add to the strength if
it were powered by network of computers.
 The Accounts office lacks the modern equipments .Even if there is any
equipment they lack to fall in the criteria of being rearmed as update and
upgraded.
 The work load in the Accounts office is not evenly distribute and the work
load tends to be more on some employees while other abscond away from
their responsibilities , which serve as a demodulation factor for employees
performance above average works.

4.4.3 OPPORTUNITIES
 In the organization where the weakness and also there the some opportunities
are exist. How the organization can achieve the opportunities? The
opportunities are necessary for the betterment of the organization.

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  The world today has become a global village because of advancement in the
technologies, especially in communication sectors .more emphasis is now
given to avail the modern technologies to work batter and improve their
performances.

4.4.4 THREATS
In the organization where the opportunities are available and there also threats. The
threats can disturb the over all performance of the organization so that is the quality of
the organization how he can handle the threats of the organization and save the
goodwill of the organization. In the every organization threats are exist, the
organization faces the threats all the time.

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 Chapter 5
Conclusion & Recommendations

5.1 Conclusion
It was concluded during the internship that DAO Perform alternative duties at the
time needed.
Through Horizontal analysis of above statements we know that salary and employee
benefits increase Rs. 83594 Millions, while operating expense increase Rs. 24817
Millions, Grand and subsidies increase Rs. 6485 Millions and other transfer payment
increase Rs. 1693 Millions, Physical assets decrease Rs. 2385 Millions, Civil works
decrease Rs. 4721 Millions, Principal Repayment of Debt increases Rs.3299 millions,
Servicing of Debt increases Rs. 563 Millions, Loan and Advance increases Rs. 280
Millions, Investments increases Rs. 500 Millions in the same way all the data is
calculated.

5.2 The Recommendations

 There should not be any abrupt policies by the upper management, as this
practice hurts the subscriber’s confidence in the Accounts Office.

 Required qualified staff should be provided to the accounts office in order to

improve the functioning of the office.

 It should like to be suggested that at least all the Districts of the Accounts
offices should be fully computerized in order to expedite the dealing process
among the all ADO and their subscribers.
 Daily records should be interred directly into these computers, it will not only
reduced transaction time, will increase the accuracy but also be efficient as
well, not only it will be economical but will also reduced the extra burden of
work of the office.
 It will also help in reducing the use of excessive paper work.

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 Good relationship among staff member leads to the peak performance of the
any organization. I observed that the staff relationship was normal other wise
but some time it is noticed that there existed a little consistency among the
staff member.

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 REFRENCES

 Http://www.cga.gov.pk/cfsagkpp.php
 Http://www.agkhyberpakhtunkhwa.gov.pk/
 Financial Statements Of The Government Of Khyber Pakhtunkhwa 2017-
2018
 Http://www.pifra.gov.pk/

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Annexure

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