LAHORE, Jan 31: The Auditor-General of Pakistan has pointed out irregularities to the tune of Rs802 million in its first report on the Punjab University for the fiscal 2000-01.
Prior to the period, the Punjab Local Fund Audit Department used to audit the accounts of universities. The audit report has placed irregularities under five heads - recoverables, negligence, violation of rules, violation of property and non-production of record.
The audit report reveals that the financial irregularities were committed due to the weakness of internal control and violation of authorized procedures for processing transactions.
RECOVERABLES: A sum of Rs11 million was outstanding against shopkeepers and hostels on account of electricity and gas charges. Non-recovery of lease money and sale proceeds of fodder and vegetables, penal rent from the illegal occupants and outstanding fee from various classes amounted to Rs19 million.
The other recoverables include irregular payments of incentive allowance, orderly allowance to professors and pensioners and house rent allowance to the university residents, washing allowance to non-entitled officials, overpayment of medical allowance to gazetted staff, conveyance allowance to the employees residing on the university premises, non-deposit of utility charges by two branches of Habib Bank and income tax.
NEGLIGENCE: Under this head, the officials concerned did not put vouchers of advances paid to the different department, deduct and attach sales tax invoices, thus mismanaging about Rs8 million.
VIOLATION OF RULES: Irregular expenditure on unauthorized appointments and on purchase of goods in violation of austerity measures, unauthorized payment of entertainment allowances on monthly basis, irregular expenditures on the insurance of 13 vehicles and on account of fresh appointments and irregular payment of hot & cold weather charges, amounting to Rs31 million.
VIOLATION OF PROPERTY: Unauthorized purchase of Wapda bonds and defective control system and purchases beyond competency by splitting up the indent order, amounting to Rs729 million.
NON-PRODUCTION OF RECORD: Non-production of stock registers at users' end, consumption account of consumable articles and misappropriation of stocks, amounting to Rs4 million.
The recommendations in this regard include monitoring of monthly reconciliations of the university figures with book figures, upgrading skills of the drawing and disbursing officers and other staff, investigation of every financial irregularity and fixing responsibility.
The report also recommended that the government rules and departmental instructions should be followed in letter and spirit to ensure transparency and efficient use of precious resources.
It recommended to the finance secretary to pay attention to evaluate and install internal controls in the area of budgetary expenditure to avoid lapses of funds and unwarranted excesses, and initiate disciplinary action under SRO 2001 against those involved in corruption.
The report also pointed out that no formal periodical inspection of cash, account books and store record had ever been carried out nor any inspection report issued to adopt corrective measures.
"Besides, the flow of expenditure was not watched at administrative level and periodical reports to monitor the expenditure carried out from month to month were also not being regularly maintained as required by the Punjab Budget Manual. Bank reconciliation is seldom carried out which is necessary to provide safeguard against fraud."