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Chapter # 1: Introduction of Report This section of the report contains the introduction of the report, background of the

study, purpose of the study and scope of the work as main topics covered in this section.

This report is a little explanation of my two months internship carried out at as a compulsory

component of the BS-04 years degree program at Quaid-e-Azam college of commerce,

University of Peshawar. This report contains information about the organization and the

responsibilities I have performed at AGPR during my internship. The objective of this report is

to reflect upon the experiences collected during my internship.

1.1- Background of the Study : Accountant General Office Khyber Pakhtunkhwa

Peshawar

Internship Report is the most significant obligation for the completion of the degree of

BS(Hons) program at University of Peshawar. The internship allow the students to put their

theoretical knowledge into practice.

I have done my internship in AGPR Head office Peshawar and especially my area of focus was

its Pension department and Computer section where I have learned and put my theoretical

knowledge into practices.

Accountant General Khyber Pakhtunkhwa Peshawar is a provincial office of the Controller

General of Accounts, which has been performing delegated functions on behalf of Controller

General of Accounts ever since its inception. Created primarily for keeping and maintaining the

accounts of the provincial government, this office has been performing function in accordance

with provisions of the Constitution of the Republic of Pakistan, 1973 and the Presidential Order

2001.

Since the dawn of civilization, having brought in its wake the give and take of goods of

every day necessity, the concept of keeping of accounts and the related records in one form or

other has prevailed all through the ages. Responsible men of even ordinary prudence have been

well aware of the necessity of maintaining records of incoming and outgoing, being taken in any

shape, according to the dictates of times, circumstances, and locations. It is not a fact of the

remote past that housewives used to keep a complete and up-to-date account of all that was given

to the neighbors and other inhabitants of the locality as well as relatives on the occasion of

happiness or sorrow.

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1.2- Purpose of study

The practical implementation of knowledge, skill and abilities in AGPR was my core purpose of

study. The main purpose of the study is to observe the practices and procedures being followed

in the AGPR and to assist the management of AGPR and find out deficiencies and problems

faced by the management. Therefore we can say that the purpose of the study is to recommend

solutions for solving the problems faced by the management of AGPR and also recommend ways

for optimal utilization of its human resources in best possible manner. Based on the analysis,

short and long term recommendations are made at the end of this report.

1.3- Scope of work:

I started working as an internee in Pension section in AGPR Peshawar beside this I worked there

in computer section too.

My main focus in AGPR was on Work and Audit department but due to limited time I spared

just one week in W.A.D Section.

The report made on AGPR generally reviewed all the departments of AFPR, but honestly it was

not possible to gain knowledge of all the departments in my two months internship at AGPR,

therefore the main focus of the report is on Pension section and Computer section

Chapter # 2: An overview of the organization

2.1- Overview:

The Office of the Accountant General KPK 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 KPK. Subsequently it was re-designated as Comptroller, KPK on 1stNovember

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 KPK 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 Islamabad. Similarly, in the

case of Frontier Irregular Corps (Scouts & Militia), the audit jurisdiction of this office extended

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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.

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.

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.

2.2- Separation of Audit and Accounts

Office of the Accountant General, KPK, 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 there on 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 KPK in July 1989.

All the accounting transactions both for the Federal as well as Provincial Govts 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.

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The Accountant General Khyber Pakhtunkhwa Peshawar being a provincial office of the

Controller General of Accounts is, therefore, primarily entrusted with delegated power that

devolved on Controller General of Accounts vides Article 169 of the Constitution. As such, this

office is required to perform the following function on behalf of the Controller General of

Accounts, viz.

2.3- Functions of Accountant General Khyber Pakhtunkhwa Peshawar:-

i. Maintenance and keeping of main as well as subsidiary accounts of the Government of

K.P.K and any authority established by the Government of K.P.K as the case may be.

ii. Preparation of Annual Reports as Appropriation and Finance Reports with concurrence

of the Auditor-General of Pakistan for onward submission to the Governor of K.P.K

province or to the President of Pakistan in the case of federation.

iii. Pre-Audit or check of all bills/claims of the Provincial Government pertaining to a given

financial year through payroll, funds and pension sections.

Besides all the three main functions, the Accountant General also performs the following

function.

a) General supervision of various sections of main office at Peshawar, monitoring and

coordination of 24 districts and 7 agency accounts officers in K.P.K.

b) Finalization of Pension Cases.

c) Maintenance of G.P. Fund Accounts.

d) Pre audit of personal claims of all gazzetted/non gazzetted.

e) Maintenance of deposit register, personal ledger account and refund of lapsed deposit of non-

developed Departments.

f) Payment of various loans and advances, Civil advances and permanent advances of non-

developed departments at Peshawar and issue of cheques after processing claims on this

account at State Bank of Pakistan at Peshawar.

g) Compilation of monthly accounts

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h) Consolidation of account (budget head wise)

i) Preparation of monthly Civil Accounts after consolidation and its submission to Finance

Department, Go K.P.K.

j) Preparation of Finance Accounts of Provincial Government of K.P.K.of each financial year

and their submission to Finance Department as well as Controller General of Accounts,

Islamabad

k) Preparation of Appropriation Accounts of Provincial Government of K.P.K. of each financial

year and their submission to Finance Department as well as Controller General of Accounts,

Islamabad

l) Discussion of Finance Accounts and Appropriation Accounts in the meeting of Public

Accounts Committee Government of K.P.K.

m) Earmarking of Funds for House Building Advance, Motor Car Advance, Scooter Advance

and Cycle Advance.

n) Issuance of NOC and to authorize opening of Assignment Account at National Bank of

Pakistan and PLA’s at District/Agency Accounts offices in K.P.K. Monitoring of District

Government Accounts and Devolution plan and submission of various M.I.S. reports to

Controller General of Accounts and Auditor-General of Pakistan of Pakistan, Islamabad.

o) Maintenance of Financial Rules and Regulations and their circulation among District/Agency

Account Offices in K.P.K. and various section of Main office at Peshawar.

p) Maintenance of Computer Cell at Peshawar as well as in some District/Agency Accounts

offices established for computerization of pay roll, G.P. Fund and Accounts

q) Introduction of New Accounting Model (NAM) as well as computerization under project for

Improvement of Financial Reporting and Auditing (PIFRA).

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2.4- Sub-Division of Work:- DEPARTMENTS OF ACCOUNTANT GENERAL

OFFICE, KHYBER PAKHTUNKHWA

1) ADMINISTRATION BRANCH:-

2) RECORD SECTION:-

3) W.A.D SECTION:-

4) BOOK SECION:-

5) PENSION SECTION

6) GENERAL PROVIDENT FUND SECTION:-

7) Payroll Section:-

8) Gazetted Audit Department (GAD):-

9) Treasury Audit Department (TAD):-

10) Central Fund:-

11) Court Cases Cell /Legal cell:-

12) Computer Department:-

13) Personnel and Establishment Department:-

14) Foreign Aid:-

15) Accounts Department:-

16) Computer Account Department:-

17) Report Appropriation:-

18) Budget Section:-

19) Cheque Section:-

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2.5- Hierarchy of AGPR

Ministry of Finance

Finance Division

Auditor General of Pakistan

Controller General of Accouunts

AGPR IslamabadA.G/AGPR

Azad Jamu Kashmir

A.G/AGPR Punjab

A.G/AGPR Sindh

A.G/AGPR Balochistan A.G/AGPR

KPK

7 Agency Accounts Offices

24 District Accounts Offices

Revenue Division Economic Affairs Division

Statistic DivisionPlanning and Development

Division

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2.6- STAFF STRUCTURE OF ACCOUNTANT GENERAL OFFICE,

KHYBER PAKHTUNKHWA

Accountant General

Additional Accountant

General

Deputy Accountant

General

Assistant Accountant

General

Accounts Officer

Assistant Accounts Officer

Senior Auditor

Junior Auditor

Auxiliary Staff

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Chapter # 3: My learnings in AGPR

3.1- IN PENSION SECTION:-

“Pension means a periodical payment made by Government in consideration of the

service rendered by a Government servant in accordance with the rules.”

It deals with preparation of pension cases of all the retiring provincials Government

Employees.

It calculates their monthly pension admissible and net payable in lump sum on their

retirement. It prepares the pension payment books for the retired employees and makes

enhancement if there is any change from Government.

3.2- Duties of Pension Section:-

The work entrusted to the Pension Brach mainly consists of the following items of work:

1. The verification of service of applicants for pension and gratuity.

2. The reports on titles to pension and gratuities of the officers serving under the audit

control of this office and the allocation of pension charges between different

Governments.

3. The maintenance of pension contribution register and broadsheet of leave salary and

pension contributions due on behalf of officers on Foreign Service.

4. Keeping watch over regular recovery of contribution and recovery of interest on overdue

contributions.

5. The preparation and issue of the pension payment and gratuity orders.

6. The disposal of commutation applications for pension received from the pensioners

consisting of the report as to the amount of commuted value admissible and the issuing

of authorities for its payment on receipt of sanctions.

7. Adjustment of pension charges between different governments.

8. Audit of pension, commutation and gratuity charges.

9. The preparation of the budget estimates for pensions.

10. The compilation of periodical returns

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11. The classification of pension receipts and payments and the compilation of monthly

accounts relating to Provincial Payments of pension, gratuities, and receipt-in-aid of

Superannuation etc. and payments of commuted value of pensions provincial under the

heads commuted value of pensions and commuted value of pensions.

12. Appropriation Audit in regard to provincial expenditure under these heads.

3.3- Activities Performed in Pension Section:-

There are two Pension Sections in Main A.G Office. One is called DAO Pension and

another is called Pension Main Section. DAO Pension Section deals with the retired employees

of District Peshawar. And Pension Main deals with the retired employees of Provincial

Peshawar. I have performed my duties in Pension Main Section and undertake the following

activities during my job.

a) Receiving the Pension Cases

b) Recording of Pension cases in Diary, and hand over it to the Senior Auditors

c) Pension report generation on computer using SAP software

d) Pension report issuance

e) Pension Payment Order (PPO) generation

f) Pension Payment Order(PPO) issuance

g) Filling the Pension Payment Order

h) Recording the PPO in PPO register

i) Maintaining the Audit Register

j) Maintaining the Issue Register

k) Maintaining the Family, Adhoc Relief, and Special Revisions Registers

l) Issuance of List of family members and Descriptive Rolls

m) Affixation of Seal on the Authority

n) Pension Updation

o) Punching of Pension Cases in Computer

p) Finalization of Adhoc Relief Cases

q) Post Audit of Revison

r) And deals with other pension related matters.

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3.4- Maintenance of the Pension Register:-

The Pension Register is a record of Pension Payments made as well as details of

pensioners drawing payment.

And it is my responsibility to update the Pension Register whenever Pensioners are

added, amended, or removed from the system.

The following information shall be maintained for each person receiving pension

payment:

a) Pensioners name

b) Pensioners father’s name (or husband name)

c) Identification number (i.e National Identity Card number)

d) Pensioner’s address

e) Contact Phone number

f) Date of birth

g) Date of Appointment

h) Date of retirement

i) Grade at retirement

j) Monthly Pension Amount

k) Bank account details (for security reasons this may be controlled and accessed by a

separate officer)

l) Pensioner type (Federal, Provincial)

m) Record of each Pension Payment made, date, amount and accumulated balance

n) Last date of Pensioner status verification.

3.5- Basic learnings in Pension Section:-

a- Pension report generation on computer using SAP software

b- Post Audit of Revision

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c- Pension Updation

d- Punching of Pension Cases in Computer

e- Finalization of Adhoc Relief Cases

3.6- Classification of Pensions:-

a- Compensation pension

b- Invalid Pension

c- Superannuating pension

d- Retiring Pension

e- Family Pension

a- Compensation Pension:-

If a permanent Government Servant is selected for discharge owning to the abolition of his

permanent post or owing to a change in the nature of duties of the post, he shall, unless he is

appointed to another post the condition of which are deemed to be at least equivalent to those of

his own, have the option.

i. Of taking any compensation pension and/or gratuity to which he may be entitled for

the service he has already rendered; or

ii. Of accepting another post of transfer to another establishment oven on a lower pay if

officered and continuing to count his previous service for pension.

b- Invalid Pension:-

i. An invalid pension is awarded on his retirement from Government Service, before

reaching the age of superannuation to a Government Servant who by bodily or mental

infirmity is permanently incapacitated for further service on production of the

prescribed Medical Certificate.

ii. A Government servant, who wishes to retire on invalid pension, should apply to his

Head of Office or Department/Attached Department who should direct him to present

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himself before a Medical Board of an invaliding committee or (Medical

Superintendent District Head Quarter Hospital/Services Hospital for obtaining a

medical certificate of incapacity for further service.

Decision:-

When a medical board is convinced for invalidation of a Government servant that medical board

may also be specifically requested to report its recommendation in the prescribed Form-8 (PEN)

along with medical certificate under Supplementary to assess his expected age in accordance

with chapter VIII of the Civil Services Pension Rules and the government Servant retire on

invalid pension may be saved the trouble of second medical examination for the purpose of

commutation. These instructions shall take immediate effect and will also be applicable to cases

of invalidation already referred to medical board but medical certificate not recorded on the date

of issue of this letter.

c- Superannuation Pension:-

A superannuating pension is granted to a Government Servant on completion of age of

Superannuating, which under section-13 of the Civil Servants Act 1973 is sixty years.

d- Retiring Pension:-

A retiring pension is granted to a Government Servant, who not being eligible for superannuation

pension opts to retire after 25 years qualifying service or is compulsory retired form service

under E&D Rules.

Simply we cay say, subject to the provision of the Essential Services Maintenance Act, all

Government Servants shall have the right to retire on a retiring pension after completing 25 years

of service provided that a Government servant who intends to retire before attaining the age of

Superannuation, shall, at least three months before the date on which he intends to retire, submit

a written intimation to the authority which appoints him, indicating the date on which he intends

to retire. Such intimation once submitted shall be final and shall not be allowed be modified or

withdrawn.

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The right of retirement shall not, however be available to a Government servant against whom a

departmental Enquiry is pending.

A Government Servant compulsorily retired under the Government Servants (Efficiency and

Discipline) Rules, 1973, shall be entitled to pension of gratuity as admissible under normal rules

and the certificates of “thoroughly satisfactory service” is not be required in this particular case.

e- Family Pension:-

Family pension is admissible at the rate of 50% of gross pension in the event of death of a

civil servant before retirement (i.e. dies during service). The gratuity in lieu of one fourth of

gross pension on the basis of age next birthday of the deceased civil servants according to

commutation table will be paid.

If the civil servant dies after retirement, the family pension would be admissible equal to 50% of

the net or reduced pension. The family pension admissible to the widow for life or until her re-

marriage. In case, the widow dies, the pension will be admissible to the sons, if any, until they

attaint the age of 21 years and the unmarried daughters, if any, until they are married or attain the

age of 21 years, which ever is earlier.

Family for the purpose of payment of gratuity and family pension will include the following

relatives of the Civil Servants:

I. Wife or wives in the case of a male civil servants

II. Husband in the case of a female civil servant

III. Children of the civil servant

IV. Widow of widows and children of a deceased son of the civil servant.

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NOTE: A child means a legitimate child or an “adopted child” if under the personal law

of the Civil servant concerned adoption is legal recognized a conferring the status

of a natural child.

If it is proved that the wife has been judicially separated from the Government servant or has

ceased under the customary law of the community to which she belongs to be entitled to

maintenance, she will no longer be deemed a member of the family unless the Government

Servant has himself intimated in writing to the Accounts Officer/Head of the Office she will

continue to be so regarded.

In the case of a female Civil Servant, if the wife intimates in writing to the Additional

Accountant General/head of the Office that her husband should not be included as a member of

the family, then he will no longer be considered a member of the family unless subsequently she

cancels in writing here intimation excluding him.

I. Issuance of Pension Payment Order

II. Arranging First Payment of Pension in cases of Federal Government Servants (retired)

III. Payment of monthly pension to those pensioners who opts to get pension at DAO Office

IV. Restoration of commuted value of pension, whenever it due.

V. Maintenance/compilation of pension payments made by all branches of State Bank

/National Bank of Pakistan of the District as well as those made by the DAO himself.

3.7- Payment of Pensions at National Bank of Pakistan:-

Commutation:-

It should not be necessary to submit a medical examination if commutation is asked for

within one year of the date of retirement. The pensioner should apply to the Accounts Officer

who would authorize payment and a copy of authority issued to the treasury officer/branch of

NBP.

3.8- Un-Drawn Pension Arrears:-

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There should be no restriction for the drawl of pension if it falls in arrears. The disbursing

officers may pay the arrears without any reference to the Audit office of the pension sanctioning

authority.

3.9- Reckonable Emoluments:-

The following shall be treated as emoluments reckoning for pension under Article 486 CSR.

I. Pay as defined in FR-9 (21) (a) (b)

II. Senior post allowance

III. Special pay of all types and nature

IV. Personal pay

V. Technical pay

VI. Dearness Allowance

VII. Increments accrued during LPR

VIII. Any other emoluments, which may be specially classed as pay.

3.10- Verification of Service:-

On receipt of application for pension and on Gratuity in the prescribed forms, verification of

service qualifying for pension/gratuity will be made in the following manner.

a. In case of Gazzetted Officer, service verification will be made from the printed History of

Service of Gazzetted Government Servants. And/or from the service statement to be

requisitioned from and furnished by the GAD Section concerned.

b. In case of Non-Gazzetted Government Servants verification will be made from the

service book, of the employees and the certificates of certification of service recorded

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therein by the heads of offices and counter checked/verified by the Audit and Inspection

Parties of the Accountant General Office.

c. Service Verification will include inter-alia that

I. Interruption in service, if any, has been regularizes.

II. Suspension, if any, is followed by reinstatement and the period of suspension has

been treated as duly leave, etc as admissible

III. Continuity of service from date of appointment to date of retirement has been

maintained.

IV. In the case of a government servant who has been on foreign Service, the period of

service claimed for such employment, should be verified from the pension

contributions register and the Broad Sheet of pension contribution should be

examined to see whether the contributions for that period have been recovered in full.

V. Pay of a non-gazzetted employee revised from time to time has been checked by

Audit and audit enforcement of the check exists in the service book.

VI. Pay of extra ordinary Leave (with out Pay) are identified and excluded from the gross

qualifying service according to the rules.

3.11- Simplification of Procedure of Pension:-

With a view to simplify procedures for expeditious settlement of pensioned gratuity claim of

retired government servants, the Federal Government Department have issued orders that

verification of particulars of service shall be made thrice during employment of a Non-Gazzetted

government servants as under:

I. Once when a Government Servants complete 10 years of service;

II. Next, when he completes 24 years of service i.e. in respect of 14 intervening years since

last verification; and

III. Finally in respect of the period after 24 years when he is actually due to retire.

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The heads of offices in which the government servants are working shall ensure that the service

books of non-gazzetted employees are properly maintained and service verification is done and

the requisite services verification certificates are recorded in the service book annually indicating

therein the period of service actually verified with reference to pay bills and acquaintance rolls.

The Federal Government may sanction a pension, which is certified by the responsible Accounts

Officer to be clearly and strictly admissible under the rules, in the case of a Gazzetted

Government Servant unless powers in this respect are delegated to Heads of Department and

other sub ordinate officers who are authorized to fill the appointment vacated by the retiring

officer.

In case of Non-Gazzetted employees of the provincial government, the authority competent to

fill the appointment vacated by the retiring official may sanction a pension certified by the

responsible Audit Officer/Accounts Officer to be clearly and strictly admissible under the rules.

Sanction to Pension in case of non-gazzetted employees in the Police Department, all

sanctions to the grant of pensions to non-gazzetted government servants working in the

Police Department will be accorded by the Inspector General of Police Department will be

communicated by the Deputy Inspector General of Police (DIG) for the Inspector General

of Police (IGP).

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Chapter No:4 PROBLEMS AND RECOMMENDATIONS

4.1- Problems :-

1. Lack of Auxiliary staff (Peon) as compared to sections. One Peon control and handle more

than 5 sections individually which creates problems and resulting in delay of official work.

2. No one gives proper care to the manual records. Most of the ledgers are worn out and

vouchers are lying on the floor in shabby condition.

3. Public Accounts Committee do not take strict action against the officials who are involved in

serious irregularities, so the officials can not be apprehended which creates an atmosphere of

lawlessness in government departments.

4. The work load has enormously increased due to which the proper control is lacking, causes

delays and unnecessary resultant loss of public trust and credibility.

5. The manual system of Accounts and payments is being computerized, the both systems now

running parallel to each other, which are creating disturbance for the time being, but it will

bring fruit in future.

6. The staff of the department is not fully equipped to face the modern computer technology,

which are now being trained to same extent to serve the department better in future.

7. The promotion policy is very slow for the staff, which creates disharmony and distress in the

departments.

8. There is no proper parking for Motor Cars.

9. The rooms of A.G Office are not well furnished as compared to other offices.

10. The load of work has been increased enormously, due to which the work efficiency and

output is not up to the standard.

11. The departments are not applying internal audit checks. Even the requirements of the General

Financial Rules or Department’s accounts are overlooked, this hampers the output.

12. The subordinate staff is not equipped with job-oriented training which could have helped

them to go through the rule/regulations and procedures they are supposed to follow. They

learn their work form their seniors by listening, and then practicing without knowing the

actual background of the procedure as per flues. Similarly, by practice, they learned in 1993,

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2001 and in 2006 hundred & ten senior auditors were recruited in the office, who were and

are on the track of learning by acquiring practical experience.

13. The major junk of accounts keeping is done on manual basis i.e. computer technology is not

fully utilized and there is no modern linkage between AG, Provincial and Federal Accounts

Offices, D.A.O, D.D.O, through out the country.

14. Accounts are not transparent and do not match with proper accountability.

15. There is no critical analysis and review of accounts prepared either on annual or monthly

basis.

4.2- Recommendations/Suggestions:-

1. The management of Accountant General Office should create more post for Class IV in A.G

office to overcome the problems.

2. Proper care should be given to the manual records for their safety.

3. Strict disciplinary action must be taken against the officials who are involved in serious

irregularities.

4. The deficiency of staff should be avoided and strength of the employees must be fulfilled

upto the sanctioned strength due to which work load on an individual.

5. The computerized system of accounting must be accelerated because they are in initial phase,

therefore they maintain manual records along with the computerized record. When they will

reach at the final stages in implementation of the computerization so automatically they will

stop the manual records.

6. The promotion policy must be changed.

7. Each and every one should follow the rules and regulations of the office.

8. The rooms of A.G office should be furnished by providing new furniture.

9. A proper Car Parking must be established in the office or outside the office.

10. New rooms should be constructed to overcome the problems.

11. Salary package should be a reasonable amount to enable them to spend their life with

prosperity.

12. New software must be launched to improve the financial reporting and auditing.

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13. Surprise visit of each and every section must be made and should check their performance.

14. The persons who are efficient should be encouraged by providing them extra incentives and

the persons who are not efficient should be discouraged with different penalties.

15. New rules and procedures should be made in such way that they do not add to the existing

rules.

16. All the newly recruited staff should first be given their relevant future job oriented training so

that they could understand the consequences of their negligence if any occurring in the

discharge of their responsibilities.

17. Adoption of International Accounting Standards can easily address the unforeseeable

problems.

18. The accounting should have been on the basis of accrual concept of accounting i.e following

the GAAP like Matching Principle (matching the expenses with the relevant revenues

belonging to same accounting period) and Realization Principle. (to record the revenue as

and when it is accrued irrespective of the receipt/paid in the form of cash)

19. To promote transparency and accountability, the Accounts of the Government be released on

monthly basis for circulation to the stakeholders, including the Public at large, on the Finance

Ministry’s Website.

20. The proposed CGA should maintain a complete and current database in respect of Cash

Balances to be updated by the daily movements in the Government of Pakistan Accounts

with the state Bank of Pakistan. They will be required to monitor the daily movements in the

available funds and ensure that the fund flow management is being undertaken in compliance

with the laid down fiscal and momentary plans of the Government of Pakistan.

21. The proposed Controller-General of Accounts (CGA) shall be responsible to review the

monthly accounts and prepare critical analysis expenditure, revenue collection, borrowings,

deficit etc for the Finance Minister.

22. There should have been separate entity whose job should have been compiling the accounts

and providing reliable financial reports to the users.