Chapter 13: Defence Division

Chapter 13
Defence Division
Audit Period
Audit Year 2007-08
Auditable Expenditure
Grant No.

Particulars

Current/ Non-Development Expenditure

21
Defence division
22
Meteorology
23
Survey of Pakistan
24
Federal Government Educational

25

Institutional In Cantonment And

Garisson
Defence services

Development Expenditure
133
Defence Division
134
Federal Government Educational
Institutions in Cantonments and Garrisons

Rupees

1,730,915,000
308,281,000
351,794,000

1,181,174,000
250,984,241,000
254,556,405,000

1,032,105,000
23,060,000

1,055,165,000
Total

255,611,570,000

Audit Formations
Survey of Pakistan
Controlling & admin staf
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MAP publication and drawing office

Survey of Pakistan- survey parties Islamabad
PAKSAT ROJECT
Knowhow development and capacity building in satellite engineering an
technology
Human resource development for NSDP
Audit Team

S.No.
1.

Name
Dr. Akmal Minallah

2.

Nazar Rauf Rathore

3.

Quratulain Hadi

4.

Shoukat Ali Bhutta

5.

Hafiz Moin Ahmad

Designation
Role
Director
Finalization of Audit report,
Holding DAC meetings
Dy. Director Supervision of audit activities,
Planning of audit,
Review of audit findings,
Review of draft audit report
Audit
Technical support in planning,
Expert
execution & reporting
Audit
Audit execution,
Officer
Preparation of AIRs & draft
audit report
Update audit permanent file
Assistant
Audit execution,
Audit
Prepare audit working papers
Officer

Time Schedule
From 22 October 2007 to 30 January 2008
(For details refer page 167)

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I.

AUDIT OBJECTIVE AND SCOPE

The main objectives of the audit of the Ministry of Defence are:
To attain reasonable assurance whether the financial statements are

prepared in accordance with the identified financial reporting

framework and the sum expanded has been applied in all material
respect for the purposes authorized by the Parliament
To check the system of internal control and compliance with the

respective authorities
To provide certification for the foreign aided projects
To perform performance audit of the major defence projects, so that
efficiency, efectiveness and the impact of the project on the economy
can be assessed.

The audit scope in an annual audit plan is a statement of what areas

will be looked at, what work must be done and what will not be done and
the methodology to be used to achieve the audit objectives(s).
The resources are allocated to perform the financial audit of the ministry
which is corroborated by the regularity audit. The selection of the
departments/projects for the regularity audit will depend on the
following criteria, which include,

Materiality
Complexity of the project
Controversial issues
Government priority and etc

The following organizations of the Ministry of Defence are out of the

preview of the federal audit;
-

Pakistan international airline corporation

Civil aviation authority

Further the functions of Defence services are not in the preview of the
federal audit and separate director general of auditor general of Pakistan
is appointed for the same.
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The educational institutions are provided funds under Ministry of

Defence which are then managed separately by those institutions and yet
only transfers from the ministry are considered for audit purposes.

II.

UNDERSTANDING THE ENTITY

Ministry of Defence is strategically run by elected representatives of the
public and administratively controlled by the bureaucracy. Its mission is
to enable the armed forces to defend the national sovereignty and
territorial integrity of the Islamic Republic of Pakistan and protect its
national interests and assets through military means and other Defence
related capabilities.

A.

Status of Entity and its Core Operations

Ministry of Defence (MoD) comprises one Division, namely the Defence
Division. The Defence Division is the Administrative Division and
Secretariat of the Ministry of Defence responsible for the achievement of
its Mission Statement. The departments covered under the ministry are;

Civil aviation authority

Airport security forces
Pakistan meteorological department
Pakistan international airline corporation
Survey of Pakistan

Civil aviation authority and Pakistan international airline corporation are

out of the scope of the federal audit as operated by separate
ordinances/acts.

The main role of the ministry is to,

a) To formulate, coordinate and execute the Defence Policy of Pakistan
and other Defence related policies.
b) To provide-for and manage the national Defence needs through
Defence Budgeting.
c) To administer the Armed Forces of Pakistan.
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d) To promote and regulate Civil Aviation activities and related

infrastructure in Pakistan, so as to be compatible with the
contemporary global standards.
e) To assist the Civil Administration in the maintenance of Public Order,
combating the internal threats and battling the national disasters,
calamities and emergencies, if required and asked for.
f) To contribute towards the world peace and progress through the UN
Peace Keeping and other operations.

B.

SWOT Analysis
Strengths:

Full support from Federal Government

Support of people of Pakistan

Weaknesses:
Dependency on suppliers of strategic armed forces equipment.
Old aircraft/ machineries.
Opportunities:
Research and development in Defence equipment
The present government is from arm forces thus could take serious
actions to remove deficiencies
International assignments of trained personal and forces
Threats:
Withdrawal of support from supplier
Curtailment of budget.
Obsoleteness of strategic equipment
Tense cross border relations
C.

Intergovernmental Relationship

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Functionally ministry consists of one main division along with various

line departments/suboffices. The Ministry of Local Government and
Rural Development is responsible for matters concerning federal
functions pertaining to local government institutions and rural
development programs. Various programs are initiated by the
government under each division/department with a sharper focus on
poor and unprivileged segments of the society.
D.

Accounting System of the Ministry

The accounting of the selected entities of the Ministry of Defence rests
with the AGPR counter, However, separate PLA accounts are opened for
the projects where required.

E.

Organizational Chart
The organizational chart is annexed as Annexure A to the chapter

III.

RISK ASSESSMENT

A.

General Risk Assessment Procedures

Our risk based approach during the audit would be to plan and
document our risk assessment procedures performed so as to obtain an
understanding of the entity and its environment. Our risk assessment
procedures may include inquiries, observations and inspections, and
analytical procedures. The major risk factors that would commonly be
addressed to assess the risk of the entity are;

The adequacy of internal controls and the control consciousness

environment is in place;
Participation by those charged with governance

Management approach to taking and managing business risks

Changes in operating environment

Corporate restructuring

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Discussions with the management regarding any internal control

weakness, frauds and irregularities identified earlier.

Are changes in the design of internal controls documented and review

by a competent authority;

There is a clearly defined organization structure and the operating

functions are performed independently so as to create segregation of
duties;

The role and authority of the internal audit function (if any), and
review of internal auditors assessment of the corrective actions taken,
and to consider the impact on the nature, extent and timing of our
audit tests and procedures;

The nature of transactions (for example, the number and Rupee

volumes and the complexity involved);

Assessment of non-routine transactions and its adequacy of its

documentation and approvals;

Understanding of the financial reporting process;

The age of the system or applications used;

The physical and logical security of information, equipment, and

premises;

Susceptibility of assets to theft and misappropriation;

The adequacy of operating management oversight and monitoring;

Previous regulatory and audit results and

responsiveness in addressing the issues raised;

Human resources, including the experience of management and staf,

turnover, technical competence, managements succession plan, and
the degree of delegation; and

Senior management oversight.

managements

The auditor must be able to identify high risk areas and the high risk
areas may be identified from material weaknesses. Material weaknesses
will be;
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B.

Be evident at multiple agencies

Afect a significant portion of the governments total budget or other
resources
Stem from a deficiency that should be monitored and addressed
through individual agency actions as well as through Office of
Management and Budget initiatives
Major non-compliance of applicable laws and regulations.

Inherent Risk Factors

1) Inherent risk factors associated with activities/programmes

Complexity of programs;

Complex, unusual or high value transactions;

Activities involving the handling of large amounts of cash or high

value attractive goods - embezzlement or theft;

Activities of a nature traditionally considered to be particularly

prone to fraud or corruption (e.g. public works and technical
contracts, contracts for the delivery goods);

Urgent operations (e.g. emergency aid) and operations not fully

subject to the usual controls;

Historical evidence of a high incidence of intentional irregularities;

Eligibility criteria inconsistent with objectives (too wide, too

restrictive, not relevant);

Activities that are uninsurable and/or are subject to risks arising

from political, financial, ecological (etc) instability;

2) Inherent risk factors associated with the operating structure

Management approach
business risk;

to

Geographically dispersed organization, or organization operating in

areas where communications are difficult;

Unclear
division
Division/Department;

of
155

taking,

managing

responsibilities

and

mitigating

within

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Audit Plan 2007 - 08

Activities or projects involving numerous partners (coordination

problems, weaknesses in management and communications
structures);

Particular points mentioned in internal and external audit reports,

and in press reports etc.

3) Inherent risk factors associated with the beneficiaries

Operations where the conduct of beneficiaries is difficult to check,

or where the ultimate beneficiaries may be diferent from the
apparent recipient;

Beneficiaries highly dependant on public funds;

Activities which imply several levels of subcontracting, making the

identification of eligible beneficiaries difficult;

Historical evidence of a high incidence of intentional irregularities;

Political or administrative pressure exerted by beneficiaries or

participants in the activity;

Imposition of unwanted responsibilities

administrations or beneficiaries;

upon

organizations,

4) Inherent risk factors associated with the economic or technical

circumstances

Abnormal trends and ratios;

Results intangible or difficult to evaluate;

Activities that are starting up or coming to an end, or are subject

to rapid technological change;

Unstable sources of supply and variable prices of inputs (raw

materials, etc);

Over-dependence on one supplier (e.g. supplier of equipment has

exclusive maintenance contract, is sole supplier of parts and
materials, software, etc);

5) Inherent risk factors associated with the audited entity

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Lack of turnover of personnel and/or personnel not taking holidays

in a sensitive department/area;

Activities with which the audited entity has no or limited

experience;

Activities that are highly dependant upon a small number of key

personnel;

Insufficient staf, or staf and management under-qualified,

inexperienced or poorly motivated;

Peaks and troughs in work patterns and information flows;

Utilization of obsolete information technology systems;

6) Inherent risk

factors

associated with

the

audited

entitys

management policies and practices

C.

Badly defined or unrealistic objectives;

Strong pressure upon management to produce results, achieve

objectives, meet unrealistic deadlines, achieve high rates of
budgetary utilization at the year-end;

Short-term budgetary pressures (e.g. delay in

necessary maintenance imposes greater costs later);

Management, supervision and control functions poorly suited to

the activity;

Lack of management information system and/or cost accounting

system;

Unclear division of responsibilities within and between the various

departments;

Specific Audit Risks

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Illegitimate payments
Compliance with clauses of grant agreements
Misuse and mismanagement of funds
Inadequate control over cash payments and bank payments
Violation of PPRA rules
Proper utilization of development budget

Risks involved in operating expenses:

Illegitimate payments
Improper classification of expenses in the heads of accounts
Improper mode of payment
Improper allocation of expenses

Risks involved in the purchase of physical assets:

Violation of PPRA rules
In adequate measurement
In complete records
In adequate utilization of resources
In adequate disclosure

IV.

AUDIT APPROACH
The audit approach would include a combination of financial audit and
compliance audit. At the preliminary stage, the assessment of internal
control system would be performed to identify the weaknesses that
would lead to the assessment of audit risk. Materiality level is basically
determined at 2 percent of the budgeted amount, but nature of
expenditure is also considered. The departments, offices and projects
are selected on the basis of
-

the high budget appropriation

grants subsidies and write ofs involved
criticality of audit issues and
sensitivity of core operations
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The selection of each DDO of each division for current expenditure and
development expenditure is made on the basis of the level of materiality
that is established by determining its nature and its amount. The DDOs
selected have been mentioned individually and the areas to be focused
upon are also mentioned.
The audit approach for efficient and efective would encompass around
understanding of the financial reporting and internal control system,
checking compliance with applicable laws and regulations and
performing compliance testing (test of control) and substantive testing as
appropriate. The audit procedures may include any of the following, but
are not exhaustive of the all the procedures as some of the procedures
may be identified at the time of execution of the audit.

Understanding the client internal control system and identifying

internal control weaknesses and audit risks
Issues highlighted in the previous audit reports that are still
unresolved
Compliance testing to ensure that applicable policies, rules and
regulations and complied with.
Compliance with grant agreement.
Use of sampling to select items for compliance testing and substantive
testing
Vouching payments on a test basis and check the payments for
accuracy, completeness, valuation and ownership
Compliance of PC-1 document
Checking compliance with PPRA rules for the procurements made
during the year.
Comparison of actual expenditure with budgeted expenditure
Prepare analytical procedures and Investigate where actual are more
than budget appropriation.
Investigate transfer payments to sub-offices and there utilizations.
Understanding the client internal control system and identifying
internal control weaknesses and audit risks
Compliance testing to ensure that applicable policies, rules and
regulations and complied with.
Compliance with grant agreement.
Performance audit of ongoing and new PSDPs.
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Performance audit procedures, if performance audit needs to be

performed:
o Identification of cost savings
o Identification of services that can be reduced or eliminated
Identification of programs or services that can be transferred to
the private sector
o Analysis of gaps or overlaps in programs or services and
recommendations to correct gaps or overlaps
o Feasibility of pooling information technology systems within the
Department
o Analysis of the roles and functions of the department, and
recommendations to change or eliminate departmental roles or
functions
o Recommendations for statutory or regulatory changes that may
be necessary for the department to properly carry out its
functions
o Analysis of departmental performance data and performance
measures
o Financial, economic and technical appraisal of projects
o Identification of best practices.

The understanding of the accounting and internal control system will

enable the auditor to 1) identify types of potential material
misstatements, 2) considers factors that afect the risk of material
misstatements, and 3) design appropriate audit procedures. Therefore,
the auditor should obtain an understanding of the accounting and
internal control system to identify and understand:

Major classes of transactions

How such transactions are initiated

Significant accounting records and supporting documents

Accounting and financial reporting process, from the initiation of

significant transactions and other events to their inclusion in the
financial statements.

The audit procedures would include a combination of compliance testing

(tests of controls) and substantive procedures (test of detail). The
objective of test of controls is to evaluate whether a control operates

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efectively, whereas the objective of tests of detail is to detect material

misstatements.
The auditor is required to perform tests of control when the auditors risk
assessment includes an expectation of the operating efectiveness of
controls or when substantive procedure do not provide sufficient
appropriate audit evidence. The auditor selects procedures to obtain
sufficient appropriate evidence that the controls operated efectively
throughout the period of reliance. The more the auditor relies on the
operating efectiveness of controls in the assessment of risk, the greater
is the risk of the auditors test of controls. In addition, as the rate of
expected deviation from a control increases, the auditor increases the
extent of testing of the control. The matters that may be considered in
determining the extent of the auditors test of controls include the
following:

The frequency of performance of control by the entity during the

period.
The length of time during the audit period that the auditor is relying
on the operating efectiveness of the control.
The relevance and reliability of the audit evidence to be obtained in
supporting that the control prevents, or detects and correct, material
misstatements at the assertion level.
The extent to which audit evidence is obtained from tests of other
controls.
The extent to which the auditor plans to rely on the operating
efectiveness of the control in the assessment of risk.
The expected deviation from the control.

The following are the types of controls to test:

Financial reporting controls (including certain safeguarding and
budget controls) for each significant assertion in each significant
cycle/accounting application,
Compliance controls for each significant provision of laws and
regulations, including budget controls for each relevant budget
restriction, and
Operations controls for each operations control (1) relied on in
performing financial audit procedures or (2) selected for testing by the
audit team. The auditor also should understand performance
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measures controls, but is not required to test them. However, the

auditor may decide to test them
Substantive procedures are performed in order to detect material
misstatements and include tests of detail of transactions, account
balances, and disclosures and substantive analytical procedures.
Substantive procedures are generally applicable to large volume of
transactions that tend to be predictable over time, which includes a
combination of tests of detail and analytical procedures. The auditor
designs tests of details responsive to the assessed risks with the objective
of obtaining sufficient appropriate audit evidence to achieve the planned
level of assurance. In designing the tests of details, the extent of testing
is ordinarily thought of in terms of the sample size, which is afected by
the risk of material misstatement. However, the auditor may consider the
use of selective sampling such as selecting large or unusual items from a
population.
In addition to the above mentioned audit procedures, analytical
procedures may also be performed that would include analysis
significant ratios and trend, consideration of relationships among
elements of financial information and considering the relationship
between financial information and non-financial information. The auditor
will need to consider the testing of controls, over preparation of
information used in applying analytical procedures, accuracy and
reliability of information available.
Audit approach to address the risks involved in operating
expenses:
-

Illegitimate payments:
The risk could afect the management assertion regarding RIGHTS
and OBLIGATIONS.
Document the system for the sanction of expenditure and identify any
non compliance from general financial rules.
The expenses are compared against the budget allocations so that
excess especially in the utilities and general which includes
advertisement and miscellaneous can be critically analyzed.
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Ensure that each payment is supported by the proper contract duly

approved and authorized by the competent authority.
Ensure that the payments are made against the schedule of
authorized expenditure, and the applicable laws and regulation.
-

Improper classification of the expenses in the heads of the

account
The risk could efect the management
CLASSIFICATION and PRESENTATION.

assertion

regarding

Review the details of expenditure, select the sample from each major
classification and check the classification according to the new
accounting model.
-

Improper mode of payment.

The risk could efect the management
EXISTENCE and OCCURRENCE

assertion

regarding

Document the system recommended by the accounts manual and

check the compliance in the departments/division.
Verify on sample basis the expenditures from the bank statement.
Obtain the list of expenditure paid in cash and obtain their
justification.
-

Improper Allocation Of Expenses

The risk could efect the management assertion regarding VALUATION
and EXISTENCE
Ensure with focus on advertisement expenses and miscellaneous
whether the expenditure should be classified as capital expenditure or
revenue expenditure as detailed in the audit code and IPSAS.

Approaches to address risks involved in purchase of assets:

-

Violation of PPRA
This risk will afect the assertion of compliance with regulation and
inadequate disclosure of facts.
Document the system to call tenders and compare it with the bench
mark provided in the PPRA rules.
Inquire non-compliances
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In adequate valuation
This risk will afect the assertion of valuation
Check the useful life of the fixed asset and the depreciation rate
applied with the market information for similar assets.
Document the criteria for the recognition of the cost and compare it
with international standards.

Incomplete records
This risk could afect the assertion of EXISTENCE
Documents the system of recording the assets.
Document the internal control applied on recording the assets.
Check the items from records to ground and vice versa.

Inadequate utilization of resources

The risk will afect the assertion of Rights and Obligation.
Ensure that the assets are maintained properly
Ensure that assets are used for the purposes it is acquired.
Ensure that assets are in the name of the project/department.
Ensure that assets are insured or not.
Ensure that warranty services are acquired when required during the
warranty period.

Inadequate disclosure
This will afect the assertion of classification and presentation and
disclosure.
Select a sample and ensure that the items are properly disclosed in
the correct account as per the classification of New accounting model.
Ensure that the assets are disclosed in accordance with financial
reporting manual, and IPSAS.

Types of audits to be performed:

Financial audit
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Chapter 13: Defence Division

Compliance audit
Performance audit (if required)

System documentation:

Cash/bank payment and receipts system

Procurement of assets and other items
Payroll
Grant receipt and related expenditure
Transfers
Delegation of powers

A system based integrated audit approach is considered so that

regularity financial and compliance can be simultaneously performed.
The two separate teams are allocated for the same. The audit evidence
obtained on the compliance audit corroborates the evidence obtained on
financial audit or identifies the critical area for audit. Performance audit,
if any will be performed by the same team performing regularity audit.
Audit Approach for the non-development expenditure is discussed in the
following paras with respect to separate DDOs.
The verification of employee related expenses will be performed by the
financial audit team by applying CAAT.
V.

BUDGET ALLOCATION

A.

Current Expenditure
The total federal budget for current expenditure amounts to Rs.
2,390,990,000. Grant wise detail is as follows:

Grant
No.

Particulars

21

Defence division

22

Meteorology

Budget allocation
for current
expenditure (Rs.)
1,730,915,000
308,281,000

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23
24

Survey of Pakistan
Federal Government Educational
Institutional in Cantonment & Garisson

351,794,000

25

Defence services

250,984,241,000

Total

254,556,405,000

1,181,174,000

Function wise and object wise classification of expenditure under each

grant is as follows;
Grant No. 21: Defence division (Rs. 1,730,915,000)
Functional classification
Account
Codes
25
32
45

Revised Estimates
2006-07

PARTICULARS
Defence administration
Police
Construction and transport
TOTAL

513,492,000
1,202,977,000
14,446,000
1,730,915,000

Object Classification
Account
Codes
A01
A03
A04
A05
A06
A09
A12
A13

Revised Estimates
2006-07

PARTICULARS
Employee related expenses
Operating expenses
Employee retirement benefits
Grants, subsidies, and write of
Transfers
Physical assets
Civil works
Repairs and maintenance
TOTAL

166

1,157,276,000
291,916,000
500,000
7,200,000
1,575,000
130,220,000
5,916,000
136,312,000
1,730,915,000

Chapter 13: Defence Division

Grant No. 22: Meteorology (Rs. 308,281,000)

Functional classification
Account
Codes
41

Revised
Estimates
2006-07

PARTICULARS
general economic , commercial and labour
afairs

30
8,281,000

Object classification
Account
Codes
A01
A03
A04
A05
A06
A09
A12
A13

PARTICULARS

Employee related expenses

Operating expenses
employee retirement benefits
Grants subsidies and written of loan
transfers
Physical assets
Civil work
Repairs and maintenance
TOTAL

Revised
Estimates
2006-07
231
,196,000
56,356,000

35,000
12,663,000
2,223,000
5,808,000
308,281,000

Grant No. 23: Survey of Pakistan (Rs. 351,794,000)

Functional classification
Account
Codes
17

Revised
Estimates
2006-07

PARTICULARS
research and development general
public service
Object classification

167

351,794,000

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Audit Plan 2007 - 08

Account
Codes
A01
A03
A06
A09
A13

Revised
Estimates
2006-07
268,953,000
62,013,000
270,000
16,122,000
4,436,000
351,794,000

PARTICULARS
Employee related expenses
Operating expenses
Transfers
physical assets
Repair and maintenance
TOTAL

Grant No. 24: Federal government educational institutions in

cantonment (Rs. 1,181,174,000)
Functional classification
Account
Codes
91
92
93
96

Revised
Estimates
2006-07

PARTICULARS
Pre-primary and primary education afairs
and services
Secondary education afairs and
services
Territory education afairs and services
Administration
Object classification

Account
Codes
A01
A02
A06
A09
A13

B.

PARTICULARS
Employee related expenses
Operating expenses
Transfers
Physical assets
Repair and maintenance
TOTAL

Development Expenditure

144,122,000
734,384,000
229,522,000
73,146,000
1,181,174,000
Revised
Estimates
2006-07
1,100,818,000
70,301,000
20,000
7,584,000
2,451,000
1,181,174,000

The total federal budget for Decelopment expenditure amounts to Rs.

1,055,165,000. Grant wise detail is as follows:
Grant
No.

Particulars
168

Budget allocation
for current

Chapter 13: Defence Division

expenditure (Rs.)
1,032,105,000

133

Defence division

134

Federal Government Educational

Institutions in Cantonments and Garrisons

Total

23,060,000
1,055,165,000

Function wise and object wise classification of expenditure under each

grant is as follows;
Grant No. 133: Defence Division (Rs. 1,032,105,000)

Account
Codes

Revised
Estimates
2006-07

Particulars

Pak Rupees
1. Functional Classification
025
Defence Administration
032
Police
041
General Economic, Commercial and labour
afairs
045
Construction and Transport

2. Object Classification
A01
Employees Related Expenses
A03
Operating Expenses
A09
Physical Assets
A12
Civil Works
A13
Repairs and Maintenance

75,047,000
49,559,000
140,013,000
767,486,000
1,032,105,000

6,313,000
842,411,000
89,021,000
94,310,000
50,000
1,032,105,000

Grant No. 134: Federal Government Educational Institutions in

Cantonments and Garrisons (Rs.23,060,000)
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Account
Codes

Revised
Estimates
2006-07

Particulars

Pak Rupees
1. Functional Classification
093
Defence Administration
097
Police

20,000,000
3,060,000
23,060,000

2. Object Classification
A03
Operating Expenses
A09
Physical assets

3,060,000
20,000,000
23,060,000

The non development expenditure considered for the purposes of the

audit are;
DDO
code

ID2696

ID3231

Name of the project

Budgeted
amount
For the year

PAKSAT PROJECT

297,495,000 Operating
expensegeneral
85,089,000 Operating
expensegeneral

Knowhow
development
and
capacity building in
satellite engineering
an technology
ID 3239 Human
resource
development
for
NSDP

VI.

Critical
audit area

55,201,000 operating
expensegeneral

ISSUES HIGHLIGHTED IN PREVIOUS YEARS

Purchase at higher rates

Irregular / uneconomical expenditure
Irregular expenditure to clear liabilities of previous year
Unauthorized expenditure
170

Budgeted
amt. for
critical audit
area
297,495,000

85,089,000

55,201,000

Chapter 13: Defence Division

VII.

Expenditure on purposes for which funds were not legally available

Unauthorized fixing of ceilings of imprest
Suspected misappropriation of government funds
Non-transfer of funds to Federal consolidated Fund
Fraudulent drawl of General Provident Fund advance by SOP

employees
Non-reconciliation of expenditure on account of deposit works
Unauthorized deposits of receipts in commercial bank accounts
Audited statement of releases of funds not obtained
Wasteful expenditure

TIME SCHEDULE
Planning
Execution Fieldwork
Reporting
Holding DAC Meeting
Total

10 days
45 days
4 days
28 days
87 days
Duratio
n

Particulars

Start Date

Finish Date

87 days

22-Oct-07

30-Jan-08

Permanent File

5 days

22-Oct-07

26-Oct-07

Planning File

5 days

27-Oct-07

1-Nov-07

Execution

45 days

2-Nov-07

24-Dec-07

ASF Islamabad

6 days

2-Nov-07

8-Nov-07

Meteorological Department

3 days

9-Nov-07

12-Nov-07

Survey of Pakistan

10 days

13-Nov-07

23-Nov-07

PAKSAT Project
Knowhow development and capacity building in
satellite engineering an technology

10 days

24-Nov-07

5-Dec-07

10 days

6-Dec-07

17-Dec-07

Human resource development for NSDP

6 days

18-Dec-07

24-Dec-07

Reporting

4 days

25-Dec-07

28-Dec-07

Prepare AIR

3 days

25-Dec-07

27-Dec-07

Send AIR to PAO

1 day

28-Dec-07

28-Dec-07

DAC

28 days

29-Dec-07

30-Jan-08

Hold DAC meeting

21 days

29-Dec-07

22-Jan-08

Sign Minutes of meeting

1 day

23-Jan-08

23-Jan-08

171

DG Audit Federal Government

Audit Plan 2007 - 08
Complete Working Papers

2 days

24-Jan-08

25-Jan-08

Scan WP Evidence

2 days

26-Jan-08

28-Jan-08

Finalize Audit Report

2 days

29-Jan-08

30-Jan-08

Annexure-A

172

Chapter 13: Defence Division

173