HYDERABAD, Sept 19: An audit report of the Hyderabad district government for the year 2002-03 has pointed out irregularities and anomalies in utilization of funds. It observed that the district government neither appointed internal auditor nor rules for internal audit were framed as the district nazim was required under section 115-A of the Sindh Local Government Ordinance 2001.
According to the audit report, the copy of which is available with Dawn, the stock register was not being maintained and stock taking not done as envisaged in section 123 of the ordinance.
It said departmental manuals had not been prepared to make officials concerned well aware of control mechanism and system of internal control as envisaged in para-13 of the General Financial Rules.
The audit report recommends disciplinary action against person(s) responsible for lapses and measures to improve internal control to avoid recurrence of such irregularities in future by properly observing government rules.
Internal audit offices may be set up as required under section 115-A of the SLGO 2001 and drawing and disbursing officers need to be trained in sphere of their duties.
Commenting on appropriation account the report said an overall saving of Rs421.843 million which is more than 14 per cent of final grant has been noted and analysis of appropriation accounts shows that major portion of budget was not utilized in sectors like finance, manpower, labour and land managements where there were savings of 64 per cent, 59 per cent and 70 per cent, respectively.
It pointed out that financial powers have not yet been delegated and notified.
It said capacity building is the main concern for good governance. Hence human resource management policies and programmes be developed for training and capacity building of manpower.
Discussing violation of rules, the audit report noted that in defunct directorate of college Hyderabad Rs3.190 million were neither utilized upon objects for which they were provided nor surrendered in time.
The irregularity was pointed out to DO colleges through audit and inspection report no reply was received.
The DO roads awarded contract of construction of link road for Rs2.584 million to a contractor not registered with the Pakistan Engineering Council and audit considered reply of the DO as untenable saying conditions for pre-qualification are not met unless a contractor was registered with the PEC.
The DO paid Rs800,452 to contractors on account of difference in cost of bitumen without obtaining supplier receipt from contractor to ascertain validity of payment.
Likewise, there is a payment of Rs474,242 on reduced rates for defective work done in respect of construction of link road.
The auditors were not satisfied with reply of the DO, saying engineer-in-charge did not identify nature of defects giving basis of that little reduction in rates.
An expenditure of Rs1.717 million incurred on salaries of officials appointed during ban period while expenditure of Rs1.040 million regarding purchase of furniture and scientific materials was without supporting vouchers by the DO colleges education.
The DO agriculture extension made new appointments of eight officials on various dates and monthly salary of Rs1.403 million were paid without obtaining permission from competent authority — the chief minister.
Discussing the Khushhal Pakistan Programme phase-I and II, the report found that Rs27.414 million were paid to contractors without pre-audit by divisional accounts officer (DAO) as the auditors noted that post-facto signatures were made on bills to fulfil formality as his office stamp was not affixed beneath his initials. The DAO said that bills were duly verified.