GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT · · 2006-04-14GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 2nd July, 2002 NOTIFICATION No. FD (FR) ... Government

Compendium of Instructions for Local Governments 77

GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT

Dated Lahore, the 2nd July, 2002

NOTIFICATION No. FD (FR) 11-5/82 (P) Governor of the Punjab is pleased to allow powers of

Technical Sanction to Tehsil Officers (I&S) BS-17 up to the value of Rs.2.00 lac

(Rs. Two lac only). The Tehsil Officer (I&S) is also authorized to exercise the

drawing and disbursing powers.

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No. FD/SR-I/31-3/2001-I GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 8th July, 2002 Subject: INSTRUCTIONS/NOTIFICATIONS IN URDU FOR

DISTRICT GOVERNMENTS IN THE PUNJAB. I am directed to refer to the subject cited above and to enclose

herewith a copy on the Subject for your guidance.

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IMMEDIATE OUT TODAY

No. IT(FD)3-4/2002 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 15th July, 2002 Subject: LOCAL GOVERNMENT FINANCE SYSTEM – EFFECTIVE JULY 1, 2002.

Kindly refer to the subject cited above.

2. In order to give effect to the provisions of Sections 107, 108 and 109 of the Punjab Local Government (Fifth Amendment) Ordinance, 2002, the following procedure is prescribed in consultation with the LG&RD Department for the District Governments, the Tehsil Municipal Administrations, and the Union Administrations:

(i) ESTABLISHMENT OF DISTRICT FUND

(a) In pursuance of Section 107 ibid, all monies standing at the credit of respective Local fund of each District Government as on 30th June, 2002 shall form part of the respective District Fund (Account No. IV) w.e.f. July 1, 2002. This fund shall be maintained in the State Bank of Pakistan / National Bank of Pakistan.

(b) All valid accrued liabilities, as due on or after July 1, 2002 shall be discharged out of the District Fund in the prescribed manner. This would apply to all liabilities of District Government, whether pertaining to former Local Fund or the District Provincial Account.

(c) Pending reconciliation and closure of books of accounts pertaining to the erstwhile Local Fund of each District Government, and formulation of Major, Minor and Detailed heads of Accounts for receipts accruing to the District Governments, against devolved taxes, if any, all receipts accruing to the erstwhile local fund shall w.e.f. July 1, 2002 continue to be deposited and accounted for in the existing manner. Such accounts shall be non-chequing accounts. The aggregate collections accruing at the end of each month shall be deposited by transfer credit in the District Fund (Account No. IV), in the prescribed manner, against a separate receipt head (to be prescribed by the CGA).

(d) The payment of salaries of staff of the District government, whether belonging to the Provincial Government or the defunct Local Council shall w.e.f. July 1, 2002 be made out of

96 Compendium of Instructions for Local Governments

and charged to the District fund (Account No. IV), against the respective approved budgetary allocations. For this purpose each District Government shall approve a schedule of establishment of the staff previously paid out of the Local Fund, in the prescribed manner, and forward it to the Accountant General Punjab/ respective District Account Officer for ensuring smooth payment of salaried, after pre-audit and authorization.

All deductions out of the salaries on account of Income tax etc., shall be done in the prescribed manner.

(e) Likewise, all contingent expenditure of such establishment as hithertofore charged to the Local Fund shall be met out of the District Fund, in the prescribed manner, against approved budgetary allocations after pre-audit, and authorization by the A.G. (Punjab)/respective District Accounts Officer. (Requisite functional expenditure classification would be necessary).

(f) Meanwhile, all District Governments shall ensure that the cash balance of Local Fund in each account are reconciled with the respective cash books as prescribed to determine, and certify the balance before its transfer to the District Fund; This step shall be completed by all District Governments immediately.

(g) It is clarified that the cost of establishment being incurred on account of salaries of employees of the provincial government and the employees paid out of Local Fund shall remain on the respective schedule of establishment of the District Government.

(h) All taxes/fees etc., being credited to the erstwhile local fund shall continue to form the receipts of the newly created District Fund.

(i) All Provincial Government taxes/fees etc. (including UIP tax)

being collected by the devolved departments, which were being credited to the Provincial Account No.1, shall continue to be so credited to the same Provincial Account.

(II) ESTABLISHMENT OF TEHSIL/TOWN LOCAL FUND (a) In pursuance of the provision of Section 107 of the PLG (Fifth

Amendment) Ordinance, 2002, a Tehsil / Town Local Fund shall be established w.e.f. 1st July, 2002 for each Tehsil/Town Municipal Administration (TMA). Such accounts shall be maintained in the National Bank of Pakistan by the respective TMA.

(b) All resource transfers to TMAs shall be in the nature of grant-in-aid and would be straight transfers in the respective Tehsil/ Town Local Fund.


(c) Consequently, all Tehsil Provincial Accounts of TMAs shall stand closed w.e.f. 1st July, 2002 after due reconciliation with the respective District Accounts Officer / Tehsil Accounts Officer, and the SBP/NBP by 15th July, 2002.

(d) All certified balances in Tehsil / Town Provincial Accounts of respective TMAs as on 1st July 2002 shall form part of the Tehsil Local Fund and be transferred to the respective accounts, for which separate directions shall be issued to the SBP/NBP by the Finance Department.

(e) All valid accrued liabilities of the respective TMA as on 1st July, 2002 shall be met out of, and charged to the Tehsil/Town Local Fund.

(f) The operation of Tehsil/Town Local Fund shall be carried out in accordance with the Accounts Rules notified by the LG&RD Department.

(g) The Drawing & Disbursing authority given to Tehsil / Town Municipal Officers by the Finance Department shall cease to be valid from July 1, 2002.

(h) The staff of the departments devolved to TMAs shall be borne on the strength of the respective TMA and be paid out of the Tehsil/Town Local Fund, as the case be. Their terms and conditions of service shall be determined separately.

(III) UNION ADMINISTRATION

The operation and maintenance of Union Local Fund shall continue in the erstwhile manner. However, the pre-audit and authorization of expenditure shall be done by the Union Accountant in accordance with the Punjab Local Government Accounts Rules.

(IV) PENSION PAYMENTS FOR EMPLOYEES OF ERSTWHILE LOCAL COUNCILS

Instructions shall be communicated separately. ---------------

No. IT(FD) 3-4/2002


Dated Lahore, the 22nd July, 2002

Subject: CLOSING AUDIT OF LIABILITIES (ADP) AGAINST

ERSTWHILE DISTRICT LOCAL FUND AS ON 30.6.2002.

Kindly refer to Finance Department’s letter No. IT(FD)3-4/2002


dated 15.7.2002, regarding Local Government Finance system effective July 01, 2002.

2. The procedural arrangements outlined in para 2(i)(b) of letter under reference inter-alia provide that all valid accrued liabilities, as due on or after July 01, 2002, shall be discharged out of the District Fund in the prescribed manner. This would apply to all liabilities of District Government pertaining to former Local Fund as well.

3. In order to proceed in the given manner, it has been decided, in a meeting held on 17.7.2002, between the Secretaries Finance and LG&RD department and the Accountant General, Punjab, that a closing audit of all development schemes shall be conducted by the Local Fund Audit department, to verify and authenticate the validity of all accrued liabilities on the erstwhile District Local Fund as on 30th June, 2002. In order to obviate delay in the timely discharge of such liabilities, it was further decided to complete the assignment within a fortnight.

4. It is accordingly to request you to kindly issue necessary directions to all concerned to provide relevant record to the staff of the Punjab Local Fund Audit Department for the purpose of the said exercise. A format for eliciting the requisite information is appended.

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CLOSING AUDIT OF LIABILITIES (ADP) AS ON 30-06-2002 AGAINST LOCAL FUND OF DISTRICT GOVERNMENT

Sr. No.

Nomenclature of Works (liabilities)

Amount with Date of A.A./ revised A.A.

Amount with date of T.S/ revised t.s

Date of calling tenders

Date of Acceptance of tender

Date of Agreement work order

1 2 3 4 5 6 7

Amount of Agreement/work order

Name of contractor

Amount paid up to 30-06-2002 (No. of running bills)

MB No. and page (Last running bill)

Total Amount of Income tax deducted up to last bill

Amount of deducted income tax paid to T.T. Department

Amount of deducted income tax paid to I.T. Deptt:

8 9 10 11 12 13 14

Amount of security deducted up to last running bill

Name of bank where amount of deducted security retained

Any other deductions (details)

Security/ Mobilization advance payment made to contractor up to 30-06-2002

Amount of Advance payment adjustable as on 30-06-2002

Any other amount recoverable from Contractor

Balance amount of liability payable to Contractor as per Agreement after 30-06-2002

15 16 17 18 19 20 21 Name & Signature Name & Signature Name & Signature of XEN Name & Signature of EDO(F&P of Sub-Engr. Assistant Engineer

We have checked the record and certify Nos. liabilities as valid and correct Name & Signature of Auditor Name & Signature of Director(A)/ Assistant Director (A)/AO Note: In case information covers more than one page, every page shall be certified separately.


IMMEDIATE OUT TODAY

No. IT(FD)3-4/2002(A) GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 27th July, 2002 Subject: NEW LOCAL GOVERNMENT FINANCE SYSTEM

EFFECTIVE JULY 1, 2002, -- ESTABLISHMENT OF DISTRICT FUND

Dear Sir, As you are aware, the Punjab Local Government (Fifth Amendment) Ordinance, 2002 has been promulgated on 24th June, 2002 (copy enclosed). Accordingly, a new Chapter XI on “Local Government Finance” has been introduced, the financial provision whereof are effective July 1, 2002.

2. In pursuance of Section 107(1) of the said Ordinance, there shall be established a District Fund, a Tehsil Local Fund, a Town Local fund and a Union Local fund, as the case may be, for each respective local government............”

3. Accordingly, the “District Provincial Accounts” established under the pre-amended Ordinance, and operated during the financial year 2001-2002 shall stand discontinued w.e.f. July 1, 2002. Further, as required under Section 108 ibid, it has been prescribed by the Finance Department vide para 2(i)(a) of its letter No. IT(FD)3-4/2002 dated 15-7-2002 (copy enclosed) that the District Fund shall be maintained in the State Bank of Pakistan / National Bank of Pakistan and operated in the manner prescribed under Section 114 ibid.


4. In order to make the aforestated provisions operational, the Government of the Punjab in the Finance Department in terms of Sr. No. 2 of the agreement between the Governor of the Punjab, and the State Bank of Pakistan, advises to operate the following account with effect from July 1, 2002 for the District Government, in addition to the Provincial Accounts, as already in operation:

(i) “A District Fund, separately for each district in the province with the nomenclature “District Fund” – Account No. IV. All moneys placed in the District Fund shall constitute the composite cash balance of the Provincial Account No.1.

(ii) The separate Sub Nos./identification codes allotted to erstwhile District Provincial Account may be allotted to the respective District Fund under the new dispensation.

(iii) A separate procedure for effecting receipts of District Governments in District Funds shall be notified in due course.

5. Where there is no branch of SBP at the District level, the business shall be conducted by branches of the National Bank of Pakistan, as an agent of the State Bank of Pakistan.

6. The operation of the “District Fund” as, aforestated, shall be carried out in accordance with the detailed “transfer of funds and accounting procedure” notified by the Controller General of Accounts vide No. CGA/Dsitt-Govt./2001 dated 11-8-2001, and in accordance with the policy agreed by the State Bank of Pakistan vide No. AD Govt/3248/105(p) 2001 dated 28th September, 2001. The CGA, has meanwhile been requested to suitably modify the accounting procedure, referred to above, to be in consonance with the new Law.

As already stated in para 4(i) above the operation of “District Fund” Account No. IV shall be within the ambit of Provincial Account No. 1 – the over-all cash balance of the province being reflected inclusive of the operations under “District Fund” – Account No. IV. Therefore, while reporting daily cash balance position to the provincial Finance Department, the SBP shall be required to depict.

(a) cash balance in Account No. 1 inclusive of aggregate balance in each District Fund Account No. IV, and;


(b) separate cash balance in “District Fund” – Account No. IV for each district.

--------------- MOST IMMEDIATE No. IT(FD)3-4/2002(B)


Dated Lahore, the 27th July, 2002

Subject: NEW LOCAL GOVERNMENT FINANCE SYSTEM

EFFECTIVE JULY 1, 2002 -- ESTABLISHMENT OF TEHSIL/ TOWN LOCAL FUND

Dear Sir, As you are aware, the Punjab Local Government (Fifth Amendment) Ordinance 2002 has been promulgated on 24th June, 2002 (copy enclosed). Accordingly, a new Chapter XII on “Local Government Finance” has been introduced, the financial provision whereof are effective July 1, 2002.

2. In pursuance of Section 107(1) of the said Ordinance, “There shall be established a District Fund, a Tehsil Local Fund, a Town Local fund and a Union Local fund, as the case may be for each respective local government.......”

3. Accordingly, the “Tehsil Provincial Accounts” established under the pre-amended Ordinance, and operated during the financial year 2001-2002 shall cease to operate w.e.f. July 1, 2002.

4. In consideration of the above facts, it is advised as follows in terms of Sr. No. 2 of the agreement between the Governor of the Punjab and the State Bank of Pakistan: (i) The operation of Tehsil Provincial Accounts for each Tehsil /

Town Municipal Administration may be discontinued w.e.f. 1st July, 2002.

(ii) The cash balances in each Tehsil / Town Provincial Account as

on 1st July, 2002 may be worked out and intimated to this department after due reconciliation with the respective District Accounts Officer and the Tehsil / Town Municipal Administration.

(iii) Any financial transactions having taken place out of Tehsil /

Town Provincial Account after July 1, 2002, till to date may be worked out separately, and intimated to this department for advising necessary adjustments through the respective DAO/ AG, Punjab.


5. It is requested that appropriate instructions may kindly be issued to the National Bank of Pakistan and all other relevant quarters for the implementation of the provision of the new Law.

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No. IT(FD) 3-4/2002. Vol-I (C) GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 27th July, 2002 Subject: ESTABLISHMENT OF TEHSIL / TOWN LOCAL FUND –

POSTING OF TEHSIL ACCOUNTS OFFICER Sir, 1 am directed to refer to the subject noted above and to state that in order to give effect to the provision of Section 107(1) of the Punjab Local Government (Fifth Amendment) Ordinance, 2002, read with Section 114(3)(b) & (d) ibid, it is necessary to appoint a Tehsil Accounts Officer in each Tehsil/Town Municipal Administration for performing pre-audit and accounting functions in relation to the operation of the Tehsil /Town Local Fund.

2. I am, however, to state that this step is yet to be implemented and, meanwhile, the financial operations of the Tehsil / Town Municipal Administration have come to a stand still due to the non-posting of Tehsil / Town Accounts Officer, as envisaged in the Law.

3. Therefore, in order to keep the financial operations of the TMAs functional, I am to state that the LG&RD department may invoke the provision of Section 197 of the PLGO 2001, and allow the existing set-up of Resident Audit Schemes, manned by officials of the Punjab Local Fund Audit Department to continue pre-audit and accounting functions up to 31st August 2002. Meanwhile, necessary measures may kindly be taken for posting of TAOs in TMAs.

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No. IT(FD)3-4/2002. GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 2nd August, 2002


Subject: FINANCIAL OPERATIONS OF TEHSIL / TOWN

MUNICIPAL ADMINISTRATIONS IN THE PUNJAB.

Kindly refer to the subject noted above.

2. In accordance with the provision of Section 114 (3)(b) and (d) of the Punjab Local Government (Fifth Amendment) Ordinance, 2002, the financial operations of the Tehsil/Town Municipal Administrations are to be performed by the Tehsil/Town Accounts Officers in relation to the Tehsil/Town Local Funds established under Section 107(1) ibid.

3. While the appointment of Tehsil/Town Accounts Officers is in the process of finalization, it has been noted that the working of the Tehsil/Town Municipal Administration is being hampered due to the said factor. Therefore, in order to keep the financial operations of the TMAs functional, it has been decided, as an interim measure, to allow the existing set-up of Resident Audit Schemes, manned by the officials of the Punjab Local Fund Department to continue pre-audit and accounting functions up to 31st August, 2002, in the prescribed manner. Where a Resident Audit Scheme is not functional in a TMA, the Provincial Director LFA shall ensure immediate alternate arrangements.

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No. PS/DS(B)1-3/2002 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 2nd August, 2002 Subject: PAYMENT OF SALARIES TO THE EMPLOYEES OF PHE,

H&PP AND LG & RD DEPARTMENTS DEVOLVED TO TMAs.

The Provincial Finance Commission has since announced the interim PFC Award. However, modalities regarding transfer/utilization of funds are being finalized by the Finance Department in consultation with the LG&RD Department.

2. In order to avoid any difficulty for the payment of the salaries, to the employees of Public Health Engineering, Housing and Local Government


Departments which are now a part of TMAs, it has been decided to allow the disbursement of the salaries to these employees for the period June-July, 2002 from Provincial Account No.-1. The actual amount paid on account of salaries to employees of PHED, LG&RD and Housing Departments (TMAs) will be adjusted from the subsequent releases to the TMAs in due course.

--------------- IMMEDIATE OUT TODAY


FINANCE DEPARTMENT

Dated Lahore, the 8th August, 2002 Subject: LOCAL GOVERNMENT FINANCE SYSTEM IN THE

PUNJAB -- EFFECTIVE JULY 01, 2002

Kindly refer to this department’s letter of even number dated 15th July, 2002 on the above noted subject.

2. The cut-off date for the preparation and approval of annual budgets of the District/City District Governments, viz; 31st July, 2002, prescribed in terms of Section 112(4) of the Punjab Local Government (Fifth Amendment), Ordinance, 2002 having expired, the actions as envisaged in Paras 2(i)(d) and (f) of this department’s letter referred to above were required to be completed immediately thereafter.

3. Given the fact that the requisite steps are yet to be completed, provisional payments of salary for the months of June and July 2002 to the staff out of erstwhile Local Fund had to be allowed vide LG&RD’s departments Notification No. SOV(LG)5-3/2001, dated 29th July, 2002.

4. In order to obviate the aforestated position, it is to request you to kindly complete the following steps urgently:

(a) The approved schedule of establishments of the staff of the District/City District Governments, previously paid out of the


Local Fund, may immediately be communicated respectively to the Accountant General, Punjab/District Accounts Officer concerned. A copy of such schedule may also be sent to the Finance Department for scrutiny and certification.

(b) The aggregate cash balance of Local Fund in each account of the District/City District Government, along with details (reconciled/certified bank statements), may be sent to this department.



FINANCE DEPARTMENT

Dated Lahore, the August 10, 2002 Subject: DISBURSEMENT OF SALARIES/OTHER EXPENDITURES

OF ESTABLISHMENTS PERTAINING TO ERSTWHILE LOCAL FUND.


2. Certain District Accounts Officers have sought clarifications regarding the mode and manner of submission of claims, and their disbursements out of “DISTRICT FUND”, specially in relation to the establishments previously paid out of the Local Fund.

3. It is accordingly clarified as below:

(a) Disbursements of salaries and contingent expenditures of all establishments of district / city district governments previously charged to the defunct Local Fund, shall w.e.f. July 1, 2002 be done in the form and manner as applicable to the devolved departments of the district /city district governments.

(b) The salaries and contingent expenditures of all departments of the district / city district governments, including those charged to the erstwhile Local Fund, shall only be payable from the respective SBP/NBP branch located at district headquarters, regardless of the fact whether such offices/ establishments are located at district headquarters or not.

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MOST URGENT No. PS/FS/08-10/2002


Dated Lahore, the 10th August, 2002

Subject: MONTHLY RELEASE OF FUNDS BY THE PROVINCIAL

GOVERNMENT

In terms of PLGO 2001 (as amended), monthly release of funds by the Provincial government to the Local Governments is required to be made directly to the Local Governments concerned. In order to facilitate the Finance Department to place moneys directly in the accounts of the Local Governments, it is requested that the account numbers of the TMAs and the Union Administrations in your District may kindly be communicated to the Finance Department on a MOST URGENT basis.



FINANCE DEPARTMENT

Dated Lahore, the 12th August, 2002 Subject: LOCAL GOVERNMENT FINANCE SYSTEM -- EFFECTIVE

JULY 1, 2002.

Kindly refer to this department’s letter of even number dated 15th July, 2002, on the above cited subject.

2. In partial modification of sub-para 2(ii) (a) of the afore-stated letter, the last sentence occurring in lines four and five of the said sub-para may be ab-initio substituted as follows: “Such accounts shall be maintained in the Bank of Punjab/ National

Bank of Pakistan by the respective TMA.” ---------------

IMMEDIATE No. IT(FD)3-4/2002




Subject: PRE-AUDIT AND ACCOUNTING FUNCTIONS OF WORKS

AND SERVICES AND FOREST DEPARTMENTS OF DISTRICT GOVERNMENTS


2. In pursuance of Section 114(3)(a) and (c) of the Punjab Local Government (Fifth Amendment) Ordinance, 2002, the maintenance of accounts and performance of pre-audit functions of each District Government in relation to the District Fund Account No. IV have been entrusted to the respective District Accounts Officer. Consequently, the pre-audit and accounting procedures as applicable in the offices of the EDO (Works & Services) and District Officer Forest up to 29th June, 2002 shall no longer be admissible in the District Governments w.e.f. 1-7-2002.

3. The following procedural arrangements are accordingly prescribed for the pre-audit and accounting functions of the Works and Services, and Forest departments of the District Governments. Prior consultation with the LG&RD Department, the Accountant General, Punjab and the Controller General of Accounts has been made in this regard:

WORKS AND SERVICES DEPARTMENT

(a) The post of Divisional Accounts Officer, along with ancillary staff presently located in the offices of the District Officers (Buildings) and (Roads) under EDO (W&S) in the District Governments shall with immediate effect be relocated and placed under the administrative control of the respective District Accounts Officer.

(b) The nomenclature of the post after its relocation in the aforesaid manner shall be renamed as Assistant Accounts Officer (Works & Services).

(c) A new section with the nomenclature “Works & Services Section” would be created in the District Accounts Office to deal with the new assignment.

(d) All claims of the office of the D.Os(Buildings) & (Roads) of the District Governments shall be prepared by the accounts branch of the said offices in accordance with the existing Rules


and Procedure, and submitted to the respective District Account Office for pre-audit and issuance of cheque in the prescribed manner.

(e) The new cheque books for the purpose of pre-audited payments of the Works and Services department are under print. Therefore, the existing PWD cheque books shall be used by stamping them with the words “PRE-AUDIT CHEQUES OF WORKS & SERVICES DEPARTMENT - ACCOUNT NO. IV”

(f) All unused PWD cheque books, presently available with the offices of the D.Os (Buildings) & (Roads) shall be surrendered to the concerned District Accounts Officer after reconciliation of the used/un-used cheques.

4. (i) Till such time, a detailed accounting procedure is prescribed by the Controller General of Accounts, for the aforestated functions of the District Governments, the existing pre-audit and accounting procedure as applicable to the Public Works Division of the Provincial Government, as further detailed in Controller General of Account’s letter No. 169-CGA/Distt-Govt/2001, dated 11-5-2002, circulated by the FD vide No. IT (FD) 3-4/2001.Vol-l (B) dated 29-5-2002 shall remain applicable to the Works & Service Department of District Governments till further orders.

(ii) The drawing authority for the issuance of PWD cheques as hithertofore exercised by the Divisional Offices or other Public Works Officers, who were so authorized by the DG Accounts (Works) under Rule 4.87 of the Punjab Subsidiary Treasury Rules, shall with immediate effect be exercised by the District Accounts Officer under Section 114(3)(a)&(c) of the Punjab Local Government (Fifth Amendment) Ordinance, 2002.

FOREST DEPARTMENT 5. The pre-audit and accounting functions of the devolved departments of the Forest department shall also with effect from 1st July, 2002 be performed by the respective District Accounts Officer: (a) Till such time that a detailed pre-audit and accounting

procedure is prescribed by the Controller General of Accounts, the existing Rules and procedures as applicable to pre-devolved set-ups of the Forest Department shall remain applicable for the purpose of pre-audit and accounting of the devolved set-ups in the District Government. The instructions issued by the CGA vide No. 169-CGA/Distt-Govt./2001, dated 11-5-2002, reiterated by FD vide No. IT (FD) 3-1/2001.Vol-l (B), dated 29-5-2002 may also be kept in view.


(b) The Forest department cheque books available with the respective District Officer (Forest) shall be surrendered to the respective DAO, after due reconciliation of the used / unused cheques.

(c) Till a new section is established in the DAOs for the purpose

of the aforesaid assignment, the pre-audit and accounting work shall be performed by the Works & Services Section in the District Accounts Office.

(d) The payment of salaries, drawn / paid through Forest

Department cheques, under the existing procedure, shall also be pre-audited by the DAOs. The concerned District Officer (Forest) shall provide a verified schedule of establishment to the concerned DAO for future payments.

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No. PS/FS/2002 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 27th August, 2002 Subject: IMPLEMENTATION OF LOCAL GOVERNMENT FINANCE

SYSTEM 2001-2002 – FOLLOW UP ACTION. Kindly refer to the subject noted above.

2. From 15th of July, 2002, onwards, the Finance Department has been periodically issuing instructions and guidelines (detailed as Nos. even dated 15.07.02, 15.07.02, 16.07.02, 22.07.02, 22.0.02, 29.07.02, 2.8.02, 2.8.02, and Nos. Ps(DS)/B/1-3/02 dated 2.8.02, 8.8.02, 10,8,02, and 15.8.02) to facilitate the switch-over to Local Government Finance System 2001-2002 (as prescribed in Punjab Local Government (Fifth Amendment) Ordinance, 2002.

3. In order to obtain a feed-back on the actions taken by the District Governments, in pursuance of the instructions referred to above, a Check List is annexed which may be filled in and dispatched to the Finance Department at any of the following E-mail addresses: (i) [email protected] (ii) [email protected]

(This E-mail address may also be used for all references to the Finance Department.)

4. The difficulties, being faced by the District Government, in the


discharge of day-to-day functioning and delivery of services to the public, may continually be identified and communicated through the said E-mail address.

5. For any emergent query on Finance, Accounts and Audit, you are requested directly contact any of the following resource persons in the Finance Department:

(i) Mr. Muhammad Zubair, CIOT, FD, Telephone No. 9211093 (ii) Mr. Rab Nawaz, Director, Local Fund Audit, Tel. No. 9212533

6. For all other matters, you may contact your focal officers in the Finance Department as per list attached.

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CHECK LIST FOR DISTRICT GOVERNMENTS/DCOs

(i) Have you closed the District Local Fund Accounts after due closing audit and funds transferred to Account No.IV of the District Government?

YES NO

(ii) Have you made operative the non-chequeing accounts for collection/deposits of local taxes? YES NO

(iii) If yes, are you transferring the aggregate amounts from local tax deposit accounts to Account No.IV each month?

YES NO

(iv) Have the services of Divisional Accounts Officer of D.G. (Accounts) Works Department been physically placed under the charge of District Accounts Officers?

YES NO

(v) Have you got approved your Schedule of Establishment and transmitted it to F.D. for confirmation?

YES NO

(vi) Have you transferred the resources of TMA’s routed through District Governments in July & August 2002 to the Local Fund Account of respective TMA?

YES NO

(vii) Have you transferred the resources of U.A’s placed in your PLA Accounts to the Local Fund Account of respective U.A?

YES NO

(viii) Are you monitoring the Cash Balance of your District Government, on a daily basis, with the State Bank NBP?

YES NO

(ix) Have you internalized the instructions/guidelines YES NO


issued periodically by the Finance Department since 15th July, 2002?

(x) Are you still, facing any difficulty in the operation and utilization of the budget of your District Government despite the issuance of guidelines at (xi) above?

YES NO

(xi) If yes, kindly specify.

FOCAL PERSONS FOR DISTRICTS MENTIONED AGAINST EACH (Reference Para – 6)

Sr. No Name of Focal Person Designation District Assigned

1. Mr. Abdullah Sumbal DS(AB-I) Rawalpindi / Attock / Jhelum / Chakwal

2. Mr. Muzaffar Ahmad DS(AB-II) Sargodha / Mianwali / Bakhar / Khushab

3. Mr. Muhammad Mushtaq DS(LG) Lahore / Kasur / Sheikhupura / Okara

4. Mr. Muhammad Zubair DS(LA&T’) Gujranwala/Sialkot/ Narowal/Gujrat/Hafiz Abad/ Mandi Baha-ud-Din

5. Mr. Rab Nawaz DS(M) Multan/Sahiwal/ Pakpattan Sharif/ Vehari/ Lodhran/ Khanewal

6. Ch. Muhammad Arshad DS(Budget) Faisalabad/T.T. Singh/ Jhang

7. Mr. Bashir Ahmed Sabir SO(W&M) D.G. Khan/M. Garh/ Rajan Pur/ Layyah

8. Mr. Mehboob-ul-Haq Hamdani SO(Tax) Bahawalpur/ B. Nagar/ Rahim Yar Khan

IMMEDIATE/ OUT TODAY


FINANCE DEPARTMENT



Subject: LOCAL GOVERNMENT FINANCE SYSTEM - EFFECTIVE JULY 1, 2002.

Kindly refer to this department’s letter of even No. dated 15th July, 2002 on the above cited subject.

2. Various issues reported by the Local Governments and District Accounts Officers, vis-a-vis the implementation of financial provisions of the Punjab Local Government (Fifth Amendment) Ordinance, 2002, and other related factors have been examined by the Finance Department in consultation with the Controller General of Accounts (CGA), the Accountant General, Punjab, and the Director General, Accounts (Works).

3. Accordingly, the following procedures are prescribed, and clarifications made respectively:

(i) TRANSFER OF LOCAL FUND BALANCES TO DISTRICT FUND

As envisaged in sub-paras 2(i)(c) and (f) of this department’s letter under reference, all balances of erstwhile Local Fund are required to be transferred to the respective District Fund in the manner prescribed therein. Such balances may accordingly be credited immediately to the following Head of Account approved by the CGA:

DISTRICT FUND (ACCOUNT NO. IV)

1000000 Non-Tax Receipts 1300000 Miscellaneous Receipts 1390000 Others 1391000 Other (NES) 1391811 District Government Receipts from Local Fund

(ii) DEDUCTIONS FROM SALARIES OF EMPLOYEES OF DISTRICT GOVERNMENT

All deductions/recoveries from the salaries of the employees of the District Governments due on account of Income Tax, G.P. Fund, Benevolent Fund, Group Insurance, house rent, and excess drawal of pay and allowances, if any, shall be effected/accounted for in the following manner:

(a) Income tax deductions from salaries of employees charged to District Fund-Account No.IV shall be made, at source, in the same manner as done for provincial government employees in


Account No. 1. The aggregate deductions effected during a month shall be transfer credited, the following month, by the concerned DAO/AG(Punjab) to the respective Income Tax Commissioner, through a pre-audit cheque, also providing therewith the details of such deductions. Till such time that the pre-audit cheque system is formally introduced in the DAOs, such transfers shall be done through bills drawn by the payee. The following directions contained in Foot Note-4 in the Public Account .of the Chart of Classification may also be kept in view:

“Income Tax deducted at source from the salaries of the employees and from the bills of contractors/suppliers are credited to the respective head during the month in a separate register. On close of monthly accounts, the total amount deducted is paid to the concerned Commissioner Income Tax through cheque, by debiting this head, for deposit in the Federal Govt. Accounts.”

(b) The deductions on account of G.P. Fund, Benevolent Fund and Group Insurance shall also be made in the same manner as described in the para 4(a) above. After compiling the monthly accounts, the aggregate monthly deductions as aforestated shall be separately creditable/adjustable as respective receipts in the Public Account of the Province (Account No. 1).

The DAO/AG Punjab, shall issue separate crossed cheques, debitable to District Fund-A/C No. IV per contra-credit to the Public Account of the province. Till such time the pre-audit cheque system is introduced in DAOs, cash transfers, as above, shall be done by respective DAOs through an advice to the State Bank of Pakistan/ National Bank of Pakistan.

(c) Deductions on account of house-rent and excess drawal of salaries and allowances shall be a creditable /adjustable in Provincial Account No. 1. The DAO / AG(Punjab) shall mutatis-mutandis proceed in the manner described in the Sub-para-II(b) above.

The accounting treatment required for the aforesaid transactions shall be prescribed by the CGA in due course. (iii) SALARIES OF DISTRICT GOVERNMENT EMPLOYEES

FOR THE MONTH OF JUNE 2002

As per the provision of Rule 18.15(a) of PFR Vol-1 the establishment charges for the month of June are debitable to the budget of the next financial year. Accordingly, the salaries of the staff of District Governments for June 2002, are debitable to the respective budgets (f.y. 2002-03) under District Fund-Account No.


IV. However, where such salaries have been debited to Provincial Account No.1, necessary adjustments shall be made by the Accountant General, Punjab, under intimation to the Finance Department.

(iv) PRE-AUDIT AND ACCOUNTING FUNCTIONS OF THE

OFFICES OF EDOs’ (WORKS & SERVICES) AND D.O (FOREST) OF DISTRICT GOVERNMENTS

(a) The pre-audit and accounting functions of the aforesaid offices of the District Governments are to be performed in accordance with the arrangements notified vide this department’s letter of even No. dated 15th August 2002, and the posting orders issued by the office of the Director General, Accounts (Works).

(b) However, where physical relocation of staff in the prescribed manner is not immediately possible, the Divisional Accounts Officers, now-Assistant Accounts Officers, (W&S), may continue to discharge their functions in their erstwhile offices for the time being. They shall nevertheless work under the administrative control of the respective DAO/AG(Punjab), as already advised vide this department’s letter of 15th August, 2002.

(v) PROCEDURE FOR REFUND OF SECURITY OF

CONTRACTORS OUT OF THE PUBLIC ACCOUNT OF THE PROVINCE

Up to 30th June, 2002, securities of contractors were being, deducted and placed in the Public Account of the Province (A/C No. 1). These deferred liabilities shall be discharged through refunds, initially from the respective District Fund Account No-IV. The concerned District Officer (Buildings/Roads) shall for this purpose process each case of refund in the manner prescribed under the existing rules and procedures, meanwhile ensuring availability of credit balance in the “schedule of deposits” in Account No. 1, and indicating /certifying relevant details in the annexed proforma. The Assistant Accounts Officer (W&S) shall pre-audit the claims in the prescribed manner, and put up to the DAO/AG(Punjab) for authorization / issuance of cheque. At the time of pre-audit/authorization of refund of security, a note to this effect shall be recorded against the specific item outstanding in the “schedule of deposits” of the defunct provincial works division under the signatures of the AAO/DAO to obviate duplicate payment. The provincial government shall subsequently provide equivalent resource against payment of the securities, as above. For this purpose the DAO/AG(Punjab) shall provide certified details of such payments to the Finance Department on monthly basis.

(vi) DEDUCTION OF SECURITIES OF CONTRACTORS.

The deduction of securities from contractors required to be effected


by the D.O (Buildings / Roads) shall be done in accordance with the existing rules and procedure on the subject. Such securities shall, w.e.f. 01-07-2002 be placed under the relevant head of account in the Public Account of the District Government in Account No. IV.

(vi) REFUND OF SECURITIES OF CONTRACTORS RENDERING WORKS-IN TMAs’

The procedure as prescribed for the district government shall mutatis-mutandis apply to the refund of securities to contractors who have executed works for the PHE Department up to 30.6.2002, provided the Executive Engineer, PHE operated respective budgetary allocations made in Account No. I (N.F.). In such cases the Tehsil/ Town Officer (I&S) shall verify the claims, and send it to the respective Tehsil Accounts Officer (TAO) for the purpose of refund in the manner described in para(v) above. The refund shall be initially paid out of the respective Tehsil / Town Local Fund. The provincial government shall subsequently reimburse the amount equivalent to the refund of securities, initially deducted and placed in the Public Account of the province-A/C No. I (N.F.). For this purpose the TAOs shall provide details of such payments to the Finance Department on monthly basis.

(vii) DEPOSIT WORKS

Instructions regarding the operation of Deposits Works to be executed by the District Governments shall be issued respectively.

(viii) CLOSING AUDIT OF PUBLIC WORKS DIVISIONS

It has also been decided to undertake a closing audit of the all Public Works Divisions which have now been devolved/amalgamated to form the offices of the District Officers (Buildings/Roads) in the city District/City District governments, and Tehsil Officers (I&S) in the Tehsil/ Town Municipal Administrations. In this regard, the Finance Department would separately take up the matter with the office of the Director General Audit (Works) for formulating a modus-operandi, and a schedule for such an audit.

(ix) CUSTODY OF PUBLIC WORKS RECORD

The District Officer (Buildings/Roads) of the respective District/ City District Government shall be the successor-in-interest and the custodian of all records of the pre-devolution works divisions under the Communications & Works department. Likewise, the Tehsil/ Town Officers (I&S) posted in the TMAs, located at district headquarters, shall be the successor-in-interest and custodian of all records of the respective PHE Divisions, now devolved to the Tehsil/ Town Municipal Administrations. Necessary actions may accordingly be taken in this regard.

(x) OPENING OF BANK ACCOUNTS OF DRAWING AND


DISBURSING OFFICERS OF DISTRICT GOVERNMENTS.

(a) With the establishment of District Fund, the Cash Management of District Governments is restricted to the respective branch of SBP/NBP at the District headquarters only. Therefore, the payments to the offices of the district governments located at places other than district headquarters shall have to be made through such branches only. However, in order to obviate Drawing and Disbursing Officers (DDOs) from carrying cash from the SBP/NBP of district headquarter, it has been decided to grant permission under Rule 9(1) of the Punjab Treasury Rule for opening of a current bank account (by designation) in the nearest branch of National Bank of Pakistan, located close to their respective offices. The account number of such bank accounts shall be notified to the respective DAO/AG(Pb.) as soon as these are opened.

(b) The DDOs shall deposit the crossed pre-audit cheques issued in their favour by the Accountant General (Punjab)/District Accounts Officers for transfer of money in the respective account. However, till such time the pre-audit cheques are not introduced in the DAOs, the DAOs shall authorize bills “payees account only” for deposit into the bank account of the DDOs for transfer credit and encashment.

(c) The DDO shall draw amounts from their respective bank accounts for the purpose of disbursement under the Rules.

(d) All DDOs shall maintain a pass-book for the accounts operated with the bank so that all transactions are regularly entered and updated for the purpose of reconciliation and monitoring.

(e) The expenditure on the opening of bank accounts shall be met out of the respective contingent budget of the DDO.

----------------



DETAILS OF SECURITY DEPOSITS DEDUCTED FROM THE ACCOUNTS OF THE CONTRACTORS FROM TIME TO TIME TILL COMPLETION OF THE SCHEME. Name of the Scheme _______________________ Name of the Contractor _________________________

Date of commencement of work _______________ Date of completion of work _______________________

Due date to refund the security deposits_________

DEDUCTIONS

No. of bill

Voucher No. & Date

Gross amount of bill

Security deport

Income Tax

Other deductions

Total Net amount of bill

Cheque No. & Date

1 2 3 4 5 6 7 8 9

CERTIFICATE: It is certified that the amounts of security deposits as detailed above were actually deducted from the bills of the contractors concerned, and were neither refunded to the contractor no utilized towards adjustment or incurring expenditure of other work/scheme by not showing the same in respective Form-II.

District Officer (Buildings/Road) COUNTERSINGED DISTRICT/CITY DISTRICT GOVT. EDO (Works & Services) _______________________ _______________________


No. IT(FD) 3-1/95(Misc.)Vol-IV GOVERNMENT OF THE PUNJAB,

FINANCE DEPARTMENT

Dated Lahore, the 29th August, 2002 Subject: REVALUATION OF PUBLIC WORKS CHEQUES ISSUED BY

DISTRICT OFFICERS (D&R) OF DISTRICT / CITY DISTRICT GOVERNMENTS AND TEHSIL / TOWN OFFICERS (I&S) OF TEHSIL / TOWN MUNICIPAL ADMINISTRATIONS.


2. It has been brought to the notice of the Finance Department that certain contractors executing Public Works for the District /City District Governments and Tehsil/Town Municipal Administrations have failed to draw payments through cheques issued in their favour by the offices of the D.O.(B&R) in the District/City District Governments and T.Os (I&S) in the Tehsil/Town Municipal Administrations on or before 29-6-2002, during the financial year 2001-2002, in discharge of their validly accrued liabilities. This position has essentially emerged due to belated issuance of cheques by the respective authorities.

3. In order to alleviate the aforestated problem, it has been decided to allow revalidation of all cheques of works departments respectively issued by the aforesaid officers of the District/City District Governments and Tehsil/Town Municipal Administrations on or before 29-6-2002 during the financial year 2001-2002, which (i) though validly authorized for payment by the DAO/TO could not be encashed by the payees through bank clearance or (ii) the cheques issued could not be presented to the respective DAO/TO for authorization.

4. The revalidations in case of District /City District Governments shall be done by the respective DAO/AG (Punjab) on the submission of a formal request by the D.O. (B&R) of District/City District Government concerned, along with the original un-cashed cheques(s). Accordingly, a new cheque shall be issued, in the prescribed manner, by the DAO/TO/AG (Punjab) as the case may


be, in lieu of the un-drawn / un-cashed cheque(s) issued on or before 29-6-2002, after due scrutiny of the record relating to the original claim. The amount of cheque shall be debitable to the District Fund, Account No. IV against the respective budgets of the District/City District Governments for the financial year 2002-2003.

5. The revalidation of cheques in case of Tehsil/Town Municipal Administrations shall be, done by the respective Tehsil/Town Accounts Officers (TAO) on the submission of a formal request by the respective T.Os (I&S), along with the original un-cashed / un-drawn cheques issued on or before 29-6-2002, during the financial year 2001-2002. Accordingly, a new cheque shall be issued, in the prescribed manner, by the TAO in lieu of the under drawn/un-cashed cheque(s) issued on or before 29.6.2002, after due security of the relevant record relating to the original claim. The amount(s) of the cheques shall be debitable to the respective Tehsil/Town Local Fund against the respective budgets for financial year 2002-2003.

(a) that the cheques, under reference were validly issued by the concerned DO (B&R) and TO (I&S) of the District / District City Government, and TMA, respectively on or before 29th June, 2002, in discharge of valid accrued liability;

(b) that these cheque / cheques were duly presented to the respective DAO/TO on or before 29th June, 2002, in the prescribed manner, and were authorized for payment at the respective SBP/NBP branch. In case the cheques could not be got authorized, as aforementioned, the reason(s) for the same would be indicated;

(c) that the amount of each cheque, after its issuance, had been debited to the respective budgetary allotment of the scheme/work of the District/City District Government or the Tehsil/Town Municipal Administration, as the case be, for the financial year 2001-2002;

(d) that the expenditure corresponding to amount of each cheque had been entered and booked in the respective cash book of the DO (B&R) or TO (I&S) as the case be, in the respective date, falling on or before 29-06-2002, and that the cash book was closed on 29-06-2002, and duly verified thereafter by an authorized representative of the Director General Audit (Works), Lahore, as prescribed;


(e) that the serial number of the respective cheque (including the last cheque) preceded the number, of the last cheque issued by the DO (B&R) and TO (I&S) of the District / City District Government or the Tehsil /Town Municipal Administration, as the case be, on or before 29-06-2002 and communicated to the Director General Audit (Works), Lahore, on 29-06-2002 telegraphically in the prescribed manner.

Note: (i) The above policy shall only be applicable to PW Cheques

issued by the District/City District Governments or the Tehsil/ Town Municipal Administrations, pertaining to financial year, 2001-2002.

(ii) The re-issuance of cheques in the aforesaid manner would not be admissible in case of “self-cheques” issued on or before 29-6-2002.

(iii) The invalidation shall not be applicable in case of payment of arrears of electricity dues to WAPDA as stipulated in FD’s policy instructions No. SO(PD)/1-1/94-95, dated 20th July, 1998.

6. The policy regarding revalidation of PWD cheques of the Provincial Works Departments has been issued separately.

---------------


FINANCE DEPARTMENT

Dated Lahore, the 31st August, 2002 Subject: FINANCIAL OPERATIONS OF TEHSIL/TOWN MUNICIPAL

ADMINISTRATIONS IN THE PUNJAB

Kindly refer to this department’s letter of even number dated 2nd August, 2002 whereby the pre-audit and accounting functions of the Tehsil/ Town Municipal Administrations were temporarily entrusted to the Punjab Local Fund Audit department, through the existing set-ups of Resident Audit Schemes, up to 31st August, 2002. This interim arrangement was advised to keep the financial operations of TMAs functional.

2. Given the fact that the issue regarding the postings of Tehsil/Town Accounts Officers is under consideration, it has been decided the extend the


aforestated arrangement, as prescribed, up to 30th September, 2002. ---------------

No. TM.I/LG-Plan-2000/2002-03/830-43 OFFICER OF THE ACCOUNTANT

GENERAL, PUNJAB, LAHORE.

Dated Lahore, the 31st August, 2002 Subject: GUIDELINES FOR PRE-AUDIT &! ACCOUNTING SYSTEM

OF WORKS & SERVICES AND FOREST DEPARTMENT OF DISTRICT GOVERNMENT

Reference: No.IT(FD)3-4/2002 dated 15.08.2002 & No.IT(FD)3-4/2002 dated 27.08.2002.

Consequent upon introduction of devolved system of accounts in District Governments, the following procedure is prescribed for following by the respective offices:

1. After transfer of services of Divisional Accounts Officers (Works & Services) redesignated as Assistant Accounts Officer (Works & Services) under the control of respective District Accounts Officer/Accountant General Office, they will continue to sit along with their staff already attached with Accounts Branch in the offices of concerned District Officer (Building & Roads) till arrangements of their shifting to District Accounts Office building are finalized. The Assistant Accounts Officer, Works & Services (former Divisional Accounts Officers) will not be under any control of District Officer (Building & Works).

2. The District Officer (Building & Roads) will no more be Cheque Drawing Authority and the District Accounts Officer will henceforth issue cheques in respect of payments and receipts of Works & Services and Forest transactions. Accountant General will notify the signatures of such officer to the banks (State Bank of Pakistan/National Bank of Pakistan).

3. The District Officers (Buildings & Roads) will surrender the un-used cheque books to the respective District Accounts Officer.

4. The District Officer will forward to the concerned Assistant


Accounts Officer the contractors’ bills and other claims in triplicate pertaining to Works & Services under Development Grants viz 24-Civil Works, 25-Communication, 36-Development, 41-Roads & Bridges, 42-Govt. Buildings duly verified/certified along with relevant records such as Measurement Books, Contract Agreement, Sanction/Authority or Purchase Order (as the case may be), Technically sanctioned estimate etc. After the bills/claims having been pre-audited by the Assistant Accounts Officer (Works & Services) the same will be passed for payment by the District Accounts Officer concerned after due check in accordance with codal rules and standing orders subject to strict financial regularity. It will be ensured by the District Accounts Officers that no expenditure in excess of budget grants is allowed in any circumstances, otherwise they will be personally held responsible for this irregularity.

5. The concerned District Accounts Officer will sign and issue cheque in favour of the contractor/claimant and record necessary entry in the Main Cash Book to be opened and maintained by him in accordance with the instructions contained in Notes printed with Form PWA-I in Account Code Volume-III. He will then complete the voucher, cross the pages of the paid bills in the Measurement Book in red ink and record payment certificate by mentioning reference to Voucher Number and date under dated initials of District Accounts Officer. Thereafter a copy of the completed voucher will be returned by the District Accounts Officer to the concerned District Officer along with the Measurement Book and other records.

6. The District Officer (Buildings & Roads) will also present pay rolls of temporary work charge establishment and other petty claims along with the sanction of the competent authority to the Assistant Accounts Officer concerned, who will apply pre-audit checks and submit the same to the District Accounts Officer for authorizing payment.

7. A cheque against the passed pay bills/claims will be issued by the District Accounts Officer in favour of the respective District Officer. In term of Note-7 printed with Form PWA-I in Account Code Volume-Ill such transactions will be treated as Temporary Advance and should be entered in the Cash Book


(body column of payment side) in red ink. The concerned District Officer after encashment of cheque will make disbursements to the actual employees/claimants with attestation under dated initials. He will record entries of receipt of cash in lieu of cheque issued by District Accounts Officer and disbursements to actual persons/claimants on Receipt and Payment Sides respectively on actual date of occurrence of transaction in his Main Cash Book to be maintained by him for such transactions as well as for cash receipts, which on realization will immediately be remitted into bank as required under the rules.

8. At the end of month the un-disbursed amount will be treated as Cash Balance until disbursement is actually made to the person concerned. On the first of each month the District Officer will render the account of temporary advance and cash receipts to the District Accounts Officer along with attested copy of Cash Book, paid cash vouchers and receipted challans for incorporation in the monthly account to be compiled and prepared by Assistant Accounts Officer and signed ‘by District Accounts Officer. No fresh temporary advance can be allowed unless the previous one is got adjusted through vouched account to be rendered to the District Accounts Officer within the prescribed period. This will be District Accounts Officer’s personal responsibility to apply this control.

9. The claims under head “50000-Community and Services” will be submitted to the Office of the Accountant General, Punjab or District Accounts Officer concerned through contingent bill for pre-audit and issue of cheque in favour of the claimant.

10. The bills/claims relating to Part(b) Component of Development budget grants under various heads of accounts of Ex-District Council/Municipal Corporations will also be pre-audited by Assistant Accounts Officer (Works & Services) and passed by District Accounts Officer for payment as prescribed above.

11. The system in vogue for payment of pay and allowances of establishment will continue to be made through Computer Section of Accountant General Punjab and District Accounts Officer.

12. The Executive District Officer (Works & Services) will fix ceiling of


POL for each vehicle being maintained by the District Officer (Building or Roads) and convey the same to the District Accounts Officer.

13. Monthly civil accounts will be compiled by the Assistant Accounts Officer (Works & Services) and submitted to Accountant General (AAG, TDH Section) under the signatures of District Accounts Officer/Accounts Officer by 5th day of following month.

14. Under the new financial set up all payments are to be made against cash balances of the respective District Government under Account No. IV, hence no suspense head as such will be operated.

15. Deduction of Securities of Contractors shall be regulated under Para 3 (VI) of Finance Department letter No. IT(FD)3-4/2002, dated 27.08.2002.

16. As required under the rules, the following accounts books/registers with others on the prescribed form will be maintained by the Assistant Accounts Officer (Works & Services) in respect of each District Office (Buildings & Roads): (i) Register of Works. (ii) Contractors’ Ledger. (iii) Suspense Schedule, if required. (iv) Register of Miscellaneous Sanctions. (v) Register of Fixed charges. (vi) Register of Miscellaneous Recoveries. (vii) Register of Revenue Realized. (viii) Register of Interest bearing Securities. (ix) Register of temporary advances.

17. These instructions may be followed till further orders.

18. This issues with the approval of the Accountant General. ---------------

No. Exp. (G) 5-4/2001


Dated Lahore, the 6th September, 2002

Subject: SNE FOR THE YEAR 2002-03 IN RESPECT OF DISTRICT

GOVERNMENT OFFICES


I am directed to refer to the subject noted above and to state that Audit Copies bearing Nos. SOWII(S&GAD) 2-9/2001, dated 21-7-2002 regarding continuance/creation of various posts of District Governments through SNE 2002-2003 on permanent basis through regular budget under Grant No. 10-GA-01000-Organ of State-01801-District Administration-006-District Coordination Estt., authenticated by the Finance Department are hereby cancelled / withdrawn.

---------------


FINANCE DEPARTMENT

Dated Lahore, the 9th September, 2002 Subject: LOCAL GOVERNMENT FINANCE SYSTEM/EFFECTIVE

JULY 1, 2002 — EXECUTION OF DEPOSIT WORKS BY DISTRICT GOVERNMENTS

Kindly refer to this department’s letter of even No. dated 27th August, 2002 on the above cited subject. As per para 3 (vii) of the letter under reference, the instructions relating to execution of “Deposit Works” were to be issued by the Finance Department separately.

2. The matter has accordingly been examined in relation to the operation of District Fund Account No. IV by the District Governments, and it has been decided that “DEPOSIT WORKS” shall be undertaken by District Officers (Buildings & Roads) in the District Governments in accordance with the existing Policy/Rules, and instructions issued by the Government on the subject from time to time.

3. However, in view of the cash based management of funds by the District Governments, through Account No. IV, the amounts deposited by various agencies (other than a Local Government) for undertaking “DEPOSIT WORKS”, in the prescribed manner, shall be credited to the Public Account of the respective District Government in Account No. IV under the Head-1-3501005 -Public Works Deposits - District Governments, through bank challans


(in triplicate) for cash credit to Account No. IV. A copy of the challan shall be furnished to the respective executing agency for the purpose.

4. The D.O(B&A) shall respectively undertake the execution of works in the prescribed manner, and submit claims against accrued liabilities to the respective DAO / AG(Punjab), for pre-audit and issuance of cheques in the light of the policy contained in Finance Departments letter of even number dated 15.8.2002. The instructions issued by the Accountant General, Punjab vide No. TM-I/LG-Plan-2000-2002-03/830-43, dated 31st August, 2002 shall also apply mutatis-mutandis.

---------------

No. IT(FD)3-4/2002(B) GOVERNMENT OF THE PUNJAB,

FINANCE DEPARTMENT

Dated Lahore, the 9th September, 2002. Subject: OPERATION OF TEHSIL/TOWN LOCAL FUND.


2. In accordance with the provision of Section 107(1) of the Punjab Local Government (Fifth Amendment) Ordinance, 2002, a Tehsil/Town Local Fund has been established for the financial operations of the Tehsil /Town Municipal Administration respectively.

3. Further, in pursuance of Section 108 ibid, read with, para 2(ii)(a) of this department’s letter of even No. dated 15th July, 2002, and letter bearing same number dated 12th August, 2002, the Tehsil/Town Local Fund shall be kept in the National Bank of Pakistan or the Bank of the Punjab.

4. Certain quarters have, meanwhile, observed about the need for negotiating terms and conditions with the said banks for the proper handling of Local Funds of TMAs. It is accordingly clarified that the Tehsil / Town Municipal Administrations being independent entities as “BODY CORPORATES” shall act as an ordinary customer for the bank. Therefore, it is not necessary to enter into a centralized relationship with the authorized banks.


The TMAs shall, however, undertake their financial operations in accordance with the relevant provisions of the PLGO 2001/2002, and the Rules thereunder, notified by the Punjab Local Government & Rural Development Department.

--------------- No. SO(TT)26-1/86. Pt-III



Subject: DISTRCIT GOVERNMENTS EXPENDITURE

Sir,

I am directed to refer to the subject cited above and to enclose a copy of the letter No. 196-CGA/DISTT-Govts/2001, dated 31.8.2002, received from the Controller General of Accounts, for information and necessary compliance.

---------------

OFFICE OF THE CONTROLLER GENERAL OF ACCOUNTS TAIMUR CHAMBER 10-D WEST BLUE AREA

ISLAMABAD

No. 196-CGA/DISTT–Govts/2001 Dated 31.08.2002 Subject: DISTRICT GOVERNMENTS EXPENDITURE.

In the last meeting of FMC on 24.08.2002 it has transpired that some District Government authorities are sanctioning expenditure against Provincial Government Account-I, although District Fund - Accounts IV for District Government stand opened with effect from 1st July, 2002.

2. I shall be grateful if you could please direct all the DCOs and other concerned district authorities to stop issuing sanction which are in violation of Local Government Ordinance, 2002 which envisages the incurrence of expenditure only from District Fund Account-IV. Non-compliance of instruction will culminate into the wrong preparation of Appropriation Accounts, which will not be acceptable to Auditor General of Pakistan, who is responsible to certify the account of all Governments in Pakistan under the new Ordinance.

---------------



FINANCE DEPARTMENT

Dated Lahore, the 23rd September, 2002 Subject: LOCAL GOVERNMENT FINANCE SYSTEM EFFECTIVE

JULY 1, 2002 – PROCEDURE FOR EXECUTION OF DEPOSIT WORKS BY DISTRICT GOVERNMENTS RELATING TO PRE-1ST JULY, 2002 PERIOD.

Kindly refer to this department’s letter of even No. dated 9th September, 2002 on the above cited subject in which the procedure for execution of deposit works by District Governments w.e.f. 1.7.2002 was prescribed.

2. A question has arisen as to the status, and the mode/manner of utilization of funds lying in the books of District Officers (Building & Roads) of the District Governments against “Deposit Works” under the Head “Public Works Deposits” - Account No-1, for the works undertaken in hand on or before 30th June, 2002, during the financial year 2001-2002.

3. The matter has accordingly been examined in the Finance Department and it has been decided to prescribe the following procedure in this regard:

(a) The unspent balance on account of each “deposit work” pertaining to respective scheme/project as on 30th June shall be worked out by the District Officer (B&R) as appearing in the respective schedules of deposit.

(b) The information, as aforestated, shall be compiled in the following format:

DETAILS OF “DEPOSIT WORKS” OF DISTRICT GOVERNMENT…….. AS ON 30th JUNE, 2002.

1 2 3 4 5 6 Item No./ Name of

Month/year of

Total Deposit received up to

Total Expenditure

Unspent balance as

Works completed or


Project/ Scheme.

Origination of Deposit.

the close of financial year 2001-2002.

incurred as on 30th June,2002.

on 30th June, 2002

On going.

(c) The information, as above, shall be certified by the District Officer (B&R), and got reconciled with, and authenticated by the District Accounts Officer/Treasury Officer concerned.

(d) The reconciled final figure(s) of unspent balances pertaining to each “deposit work” shall, after due scrutiny by the Assistant Accounts Officer (W&S), be transfer credited in the prescribed manner, under the Head: 1300000 Misc. Receipt-1390000 Others (NES)-1391000-Others Receipts-1391001-Other Receipts-Unspent Deposits (Works) in Provincial Account No.1 by the concerned District Accounts Officer/Treasury Officer.

(e) After the completion of the aforestated steps, a complete statement (showing each deposit work separately), along with a certificate by the DAO/T.O./A.G. Punjab to the effect that the unspent balances have been credited, as advised above, the respective District Officer (B&R) shall be required to approach the Finance Department through the EDO(W&S) of the District Government for the provision of funds, equivalent to the unspent balances as on 30th June, 2002 against each “deposit work”, in District Fund-Account No. IV.

4. The aforestated actions may be completed by the respective District Governments expeditiously in order to obviate any further discontinuity in the execution of Deposit Works.

---------------

No. IT(FD) 3-4/2002 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 24th September, 2002 Subject: TRANSFER OF FUNDS FROM TEHSIL/TOWN

PROVINCIAL ACCOUNT (DEFUNCT) TO TEHSIL/TOWN LOCAL FUND

Kindly refer to the above noted subject.

2. With the establishment of Tehsil/Town Local Fund in the Tehsil/ Town Municipal Administrations under Section 107 of the Punjab Local


Government (Fifth Amendment) Ordinance, 2002 - effective July 1, 2002, the Tehsil /Town Provincial Accounts of TMAs established in the respective National Bank of Pakistan branches stand closed w.e.f. July 1, 2002 in the manner as advised in para 2(ii)(c) of this department’s letter of even No. dated 15th July, 2002. As further stated in para 2(ii)(d) ibid, the reconciled/certified balances (by respective DAO and the NBP) in Tehsil/Town Provincial Accounts of respective TMAs shall form part of the respective Tehsil/Town Local Fund after transfer from the Tehsil /Town Provincial Accounts.

3. The State Bank of Pakistan/National Bank of Pakistan were subsequently advised vide this department’s letter bearing No. 1T(FD)3-4/2002(B) dated 27th July, 2002 for undertaking closure of the respective Tehsil/ Town Provincial Accounts, in the prescribed manner for the purpose of effecting transfer of balance of funds to the Tehsil /Town Local Fund.

4. It is accordingly advised, that after the completion of the aforestated steps the respective Tehsil/Town Municipal Administration may formally approach the concerned District Accounts Office/Treasury Office or the office of the Accountant General, Punjab, as the case may be, with a request jointly signed by the Tehsil/Town Nazim and the TMO, along with the reconciled/certified balances statement, for issuing authority to the concerned branch of the National Bank of Pakistan for transferring the certified balance in the respective Tehsil/ Town Provincial Account (defunct) to the accounts of the Tehsil/Town Local Fund of the TMA opened in a branch of National Bank of Pakistan or the Bank of Punjab as notified. A copy of the request would also be furnished to the Manager National Bank of Pakistan maintaining the Tehsil/Town Provincial Account (defunct). The TMAs shall subsequently intimate the Finance Department about the completion of this step, and the aggregate amount so transferred in the Tehsil /Town Local Fund.

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GOVERNMENT OF THE PUNJAB FINANCEMENT

Dated Lahore, the 18th October, 2002


NOTIFICATION

No. FD.SR-I-7-l/82-I. In exercise of the Powers conferred upon him under Section 23 of the Punjab Civil Servants Act, 1974 (VIII of 1974), the Governor of the Punjab is pleased to direct that in the Finance Department’s Notification of even number dated 22.11.2001 regarding the amendment in the Punjab (Civil Service) Delegation of Powers Rules, 1983, the sanctioning authority for sanctioning of leave to “DISTRICT COORDINATION OFFICERS” in the Punjab would the Chief Secretary, Punjab.

2. The Sr. No. (i)(e) of the Finance Department’s notification referred to above shall be amended to the extent as mentioned above.

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No. IT(FD)3-4/2002(P) GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 22nd October, 2002 Subject: NEW LOCAL GOVERNMENT FINANCE SYSTEM

EFFECTIVE JULY 1, 2002 – ESTABLISHMENT OF DISTRICT FUND – RECEIPTS OF DISTRICT GOVERNMENTS.

Dear Sir,

Kindly refer to the correspondence resting with this department’s letter of even number dated 27.7.2002 (copy enclosed), advising about the operation of District Fund Account No. IV of the District Governments, w.e.f. 1st July, 2002, in accordance with the Punjab Local Government (Fifth Amendment) Ordinance, 2002.

2. In pursuance of the position stated in para 4(iii) of the aforestated communication, this department issued letter of even number dated 27.8.2002 (copy enclosed), directing the District Governments to inter-alia deposit their receipts in the given head of account for credit to the District Fund - Account No. IV. The District Governments have accordingly started depositing such receipts in the local branch of the State Bank of Pakistan / National Bank of Pakistan in the prescribed manner. Besides, the District Governments are affecting receipts


in District Fund-Account No. IV by transfer credit from Provincial Account No. 1 for the purpose of undertaking “Deposit works” etc. as per the policy contained in F.D’s letter No. IT(FD)3-4/2002(A), dated 9.9.2002 (copy enclosed).

3. However, certain District Governments have reported that the State Bank of Pakistan / National Bank of Pakistan branches, receiving the aforestated deposits, do not afford immediate credit to the cash balance of the respective District Fund, and instead report the aggregate receipts for the day to the State Bank of Pakistan, Karachi, and require an advice therefrom for necessary credit to the cash balance of the District Government concerned.

4. This issue was accordingly examined in this department, and consequently discussed in a meeting held in the Finance Department on 09.10.2002 attended by the Accountant General, Punjab, and the representatives of the State Bank of Pakistan, Lahore and Regional Headquarters, National Bank of Pakistan (East Region) Lahore. It was considered that since the cash management of District Governments in District Fund-Account No. IV is regulated centrally through the Central Accounts Section of the State Bank of Pakistan, Karachi, as such the procedure adopted by the State Bank of Pakistan/ National Bank of Pakistan branches while accepting the said receipts of the District Governments was in order.

5. Accordingly, in order to formalize and streamline the system regarding receipts of the District Governments in question the following procedure is prescribed:

(i) The transfer of Local Fund balances to District Fund as advised vide para 3(i) of this department’s letter No. IT (FD) 3-4/2002 dated 27th August, 2002 shall be got effected by the respective District Government in the branch of the State Bank of Pakistan / National Bank of Pakistan operating the District Fund Account No. IV, in the prescribed manner, and in the head of account as notified vide the said communication.

(ii) Likewise the amounts transferred to District Fund-Account No. IV from Provincial Account No. I for the purpose of “Deposit Works” through Personal Ledger/Assignment Accounts cheques, etc. in the given head of account shall also be accepted by the SBP / NBP branches, as aforestated.


(iii) The State Bank of Pakistan / National Bank of Pakistan shall accept such receipts of the District Governments in the prescribed manner and report the aggregate amount for the day to the State Bank of Pakistan, Karachi, on daily basis.

(iv) The Finance Department accordingly authorizes the SBP, Karachi to advise the respective branch of the State Bank of Pakistan / National Bank of Pakistan to afford credit to the cash balance of the respective District Government - Account No. IV against the aforestated receipts to be reflected in the respective date.

(v) The advice issued to State Bank of Pakistan / National Bank of Pakistan as per sub-para (iv) above shall also be communicated to the Government of the Punjab, Finance Department, the Accountant General, Punjab/District Accounts Officer and the District Coordination Officer of the respective District Government immediately for monitoring cash flow of each District Government.

(vi) The aggregate cash balance of the District Government shall accordingly comprise the amounts transferred by the provincial government, plus the local receipts effected, as above.

6. Meanwhile, in order to ensure effective and timely reconciliation of cash balance of the respective District Government, vis-a-vis that obtaining in the books of the SBP, Karachi, it is advised that the local branch of the State Bank of Pakistan/National Bank of Pakistan may carry out reconciliation with the respective District Accounts Officer/the A.G. Punjab on day to day basis as per the procedure outlined by the Controller General of Accounts vide letter No. 47-AC-III/8-38/92 dated 13-12-2000. The daily cash balance position may also accordingly be reported to this department in the prescribed manner.

--------------- IMMEDIATE/ OUT TODAY


FINANCE DEPARTMENT

Dated Lahore, the 28th October, 2002 Subject: LOCAL GOVERNMENT FINANCE SYSTEM – EFFECTIVE

JULY 1, 2002.

Kindly refer to this department’s letter of even number dated 27th


August, 2002 on the subject cited above.

2. Certain quarters have inquired as to the efficacy of the countersignatures by the EDO(W&S) of the District/City District Government on the proforma annexed to the circular instructions under reference, containing details of Security Deposits deducted from contractors for the purpose of refund.

3. It is .to clarify that the said requirement is not warranted. This action may, therefore, not be stressed while processing the cases or refund of security of contractors, in the prescribed manner.

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OFFICE OF THE CONTROLLER GENERAL OF ACCOUNTS FBC BUILDING G-5, ISLAMABAD

No. 16/DIR(D)/CGA/2002 Dated 21-10-2002 Subject: FORMATION OF A SUB-COMMITTEE UNDER THE

CHAIRMANSHIP OF CONTROLLER GENERAL OF ACCOUNTS TO SORT OUT TEETHING PROBLEMS IN ACCOUNTING FUNCTIONS UNDER THE DEVOLUTION PLAN.

A wrap-up meeting of World Bank’s PIFRA Mission for strengthen Accounting and Reporting (PSTAR) was held in the ministry of Finance under the chairmanship of Secretary General, Ministry of Finance on September 19, 2002.

2. In accordance with the minutes of the meeting, a Sub-Committee under the chairmanship of Controller General of Accounts is being constituted to sort out, teething problems in accounting functions under the Devolution Plan. Composition of the sub-committee is as follows:

1. Controller General of Accounts Chairman 2. Representative, Finance Division Member 3. Representative, NRB Member 4. Secretary Finance, Govt. of Punjab Member 5. Secretary Finance, Govt. of Sindh Member 6. Secretary Finance, Govt. of NWFP Member 7. Secretary Finance, Govt. of Balochistan Member 8. All Provincial Accountant Generals Member 9. DG Accounts CGA Office Secretary


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FINANCE DEPARTMENT

Dated Lahore, the 1st November, 2002 Subject: FINANCIAL OPERATIONS OF TEHSIL /TOWN MUNICIPAL


Kindly refer to this department’s letter of even number dated 1st October, 2002, whereby the pre-audit and accounting functions of the Tehsil/ Town Municipal Administrations were temporarily entrusted to the Punjab Local Fund Audit department through the existing set-ups of Resident Audit Schemes up to 31st October, 2002. This interim arrangement was allowed to keep the financial operations of TMAs functional.

2. Since the issue regarding the postings of Tehsil/Town Accounts Officers is still under consideration, it has been decided to further extend the aforestated arrangement, as prescribed, up to 30th November, 2002.

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No. IT(FD)3-4/2002/Vol-II GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 1st November, 2002 Subject: NEW LOCAL GOVERNMENT FINANCE SYSTEM – REFUND

OF SECURITIES TO CONTRACTORS OF WORKS AND SERVICES DEPARTMENTS OF THE DISTRICT GOVERNMENTS RELATING TO PRE-1st JULY, 2002 PERIOD.


2. As per the existing policy on the subject, the contractors executing works on behalf of the Public Works Departments, can request for the conversion of the security deposits into a recognized form of interest bearing securities at the cost of the contractor in terms of Clause 49 of the agreement form for execution


of work. Accordingly, such securities could be deposited in a designated bank, as nominated by the contractor, and pledged in the name of the Executive Engineer concerned, since designated as the District Officer (Building & Roads). These securities were subsequently refunded to the contractors in the prescribed manner under the Rules.

3. Likewise, the security deposits deducted from contractors executing works against scheme funded from “Local Funds” were kept in Post Office saving accounts / saving accounts of National Saving Centers in terms of Rule 17(4) of the Punjab Local Council (Accounts) Rules, 1981. Subsequently, similar provision was also made in Rule 45(4) of the Punjab Local Government (Accounts) Rules, 2001 issued under the PLGO, 2001, whereby such securities were to be invariably kept in a saving account of the National Saving Center or in a scheduled bank, with the approval of the respective Local Government.

4. However, with the introduction of cash based “single fund” concept for the Local Governments under Section 107(1) of the PLG Ordinance, 2001, and change in the pre-audit and accounting system of the Works and Services departments in the District/City District Government under Section 114(3)(a) and (c) ibid, read with F.D’s policy letter No. IT(FD)3-4/2002, dated 27th August, 2002 regarding execution of works by the District Officer (Building & Roads), queries have been raised as to the mode and manner of refund of securities of contractors originally deducted and placed in bank account/saving accounts for the works executed respectively, as referred to in paras 2 & 3 above.

5. The matter has accordingly been examined in the Finance Department, and the following procedure is prescribed for the refund of securities of contractors:

REFUND OF SECURITY DEPOSITS OF CONTRACTORS DEDUCTED ON OR AFTER 1st JULY, 2002.

The procedure for the deduction and refund of securities already stands prescribed in paras 3(v) & (vi) of this department’s letter of even number dated 27th August, 2002.

REFUND OF SECURITIES ORIGINALLY DEDUCTED IN THE PUBLIC ACCOUNT OF THE PROVINCE AND .PLACED IN COMMERCIAL BANK ACCOUNTS IN TERMS


OF CLAUSE 49 OF THE AGREEMENT FORM-PRIOR TO 1st JULY, 2002.

The amount of security deposits shall be refundable to the contractor concerned, on the expiry of the stipulated period, as stated in the contract, and after the issuance of certificate of completion of work. The District Officer (B & R) in the District/City District Government, after the security becomes due for refund in the manner prescribed in the existing rules shall be required to retrieve the amount of security from the concerned bank along with interest, through a cheque/pay-order.

The amount shall thereafter be deposited in the prescribed manner (through challan) in the Public Account of the District Government in Account No. IV under the Head of Account No. 1-3501005-“Public Works Deposits-Security Deposits of Contractors”, mutatis-mutandis, in terms of Rules 5.1 & 5.2 of Punjab Departmental Financial Rules. The claim for the refund, after due process in the manner prescribed in the existing Rules and credit of the amount in Account No. IV shall be submitted to the District Accounts Officer/the Accountant General, Punjab by the DO(R&B), as the case be, for pre-audit by the Assistant Accounts Officer (W&S) and issuance of cheque by the DAO/A.G. concerned, as prescribed, read with the instructions issued by the A.G., (Punjab) vide No. TM-I/LG-Plan-2000/2002-03/330-43, dated 31.8.2002.

REFUND OF SECURITY DEPOSITS DEDUCTED FROM CONTRACTORS EXECUTING WORK AGAINST SCHEMES FUNDED FROM “LOCAL FUNDS”

The procedure for the refund of Security, as above, shall mutatis-mutandis apply in the matter. The Security deposits reflected in columns 15 and 16 of the proforma annexed to this department’s letter No. IT(FD)3-4/2002, dated 22.7.2002 regarding “closing audit of liabilities (ADP) against erstwhile Local Funds” shall be scrutinized and referred to by the DO(B&R), as well as the DAOs/A.G.(Punjab) at the time of processing claims for refund of security, in the given manner.

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No. PS-AFS(B)/6770/02 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 7th November, 2002 Subject: SETTLEMENT OF AUDIT PARAS



2. With the implementation of “Devolution Plan” w.e.f. 14th August, 2001, the administrative and financial linkages of the departments de-centralized/ devolved to the Local Governments have been reconfigured according to the provisions of Punjab Local Government Ordinance, 2001.

3. Consequently, the responsibilities of the Local Governments in relation to audit have been redefined in the context of internal and external audit. The latter in respect of the District Governments is the exclusive responsibility of the Auditor General of Pakistan in terms of Section 115 of the PLGO, 2001 (as amended). 4. The matter regarding the settlement of audit paras of devolved government departments, pertaining to the pre-devolution period has been engaging the attention of the Finance Department. The administrative departments consider that the settlement of such audit paras are now the responsibility of the respective District Governments, given the fact that the District Coordination Officer is the Principal Accounting Officer in terms of Section 28(2)(e) of the PLGO, 2001, beside the fact that the relevant record pertaining to the audit observations is available in the respective department/ office of the District Government concerned.

5. In consideration of the above facts, it has been decided that the settlement/disposal of audit paras pertaining to the period prior to 14th August, 2002 is now the responsibility of the respective devolved departments of the District Government concerned. For the purpose of discharge of this responsibility the District Government may notify the District Accounts Committee (DAOs) with the following composition. The meetings of DAC may be held on fortnightly basis. (i) District Coordination Officer Chairman (ii) EDO of the concerned sector Member (iii) EDO(F&P) Member (iv) District Audit Officer Member

6. In order to make the aforesaid arrangements functional the details of pending audit paras may accordingly be obtained from the concerned District Audit Officer/Administrative Department. Progress reports may be sent to the


Monitoring Wing of the Finance Department on monthly basis, which shall review the matter in quarterly review meetings, to be inter-alia attended by the representative of the Director General, Civil Audit, Punjab.

--------------- No. SO(TT)2-2/72. Pt-I


Dated Lahore, the 27th November, 2002

Subject: SALARY OF THE EMPLOYEES OF’ CITY DISTRICT

GOVERNMENT, LAHORE FOR THE MONTH OF NOVEMBER 2002.

In view of the specific difficulties of the City District Government, Lahore in the matter of drawal and disbursement of salary to the employees, which normally takes ten to fifteen days in routine, and the ensuing Eid, it is necessary to ensure disbursement of salaries in time.

2. It has, therefore, been decided in relaxation of Rule 5.1 of the Punjab Financial Rules Vol-I to allow the encashment of salary cheque(s) of the employees of City District Government, Lahore issued by the A.G. (Punjab), Lahore for the month of November 2002, three days in advance to facilitate its timely disbursement.

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FINANCE DEPARTMENT

Dated Lahore, the 30th November, 2002 Subject: FINANCIAL OPERATIONS OF TEHSIL/TOWN MUNICIPAL


Kindly refer to this department’s letter of even number dated 1st November, 2002, whereby the pre-audit and accounting functions of the Tehsil/ Town Municipal Administrations were temporarily entrusted to, the Punjab Local Fund Audit department through the existing set-ups of Resident Audit Schemes up to 30th November, 2002. This interim arrangement was allowed to keep the financial operations of TMAs functional.


2. Since the issue regarding the postings of Tehsil / Town Accounts Officers is yet to be finalized, it has been decided to further extend the aforestated arrangement, as prescribed, up to 31st, December, 2002.

--------------- GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 10th December, 2002 NOTIFICATION

No. FD (FR)-II-5/82(P). Governor of the Punjab is pleased to delegate powers of technical sanction to Tehsil Officers (I&S) BS-17 up to the value of Rs.5.00 lac (Rs. five lac only) instead of Rs.2.00 lac already allowed vide notification of even No. dated 2.7.2002.

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No. IT(FD)3-4/2002-Vol-III (KC) GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 18th January, 2003 Subject: PAYMENT OF PENSION TO THE OFFICERS/OFFICIALS

OF FOREST DEPARTMENT FROM DISTRICT GOVERNMENT.

Kindly refer to your letter No. B&A/Pen/Distt:/1398, dated 17.12.2002, on the subject cited above, seeking clarification as to the finalization of pension cases, and issuance of pension payment orders in respect of the officers/officials of the Forest department working in the District Governments in the devolved set-ups.

2. The matter has accordingly been examined in this department, and it is to advise, that since a small percentage of officers/officials of the Forest department are working in the District Governments, and that their service records etc., are being maintained by the Forest department, the pension cases of such retiring civil servants shall be processed and finalized by the office of the Director (Budget and Accounts), Forest in the erstwhile prescribed manner on the basis of the last pay certificate/service statement issued to the office of the


Director (Budget & Accounts), Forest by the A.G. Punjab/respective District Accounts Officer in the prescribed manner. The Pension Payment Orders shall be issued by the Accountant General, Punjab, Lahore.

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No. FD(FR)11-2/89 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 1st February, 2003 Subject: CLARIFICATION ABOUT DISTRICT GOVERNMENT

EXPENDITURE – RE-IMBURSEMENT OF MEDICAL CHARGES TO RETIRED GOVERNMENT EMPLOYEES.

Please refer to the above and the Controller’s General of Accounts, Islamabad letter circulated vide No. SO(TT) 26-l/86.Pt-III, dated 13.9.2002 on the same subject.

2. Controller General of Accounts, Government of Pakistan has already informed that District Government authorities can only sanction expenditure from District Account No. IV which has been established w.e.f. 1.2.2002.

3. References have been made and clarification sought on the issue of sanctioning expenditure by District Government’s officers for re-imbursement of medical charges of retired government employees.

4. District Governments can only sanction expenditure from District Account No. IV, since it is clarified that the expenditure for reimbursement of medical charges of retired government employees does not fall within the purview of Account No. IV. These expenditures are chargeable to grant No. 28-Pensions, which is a part of the Provincial Account No. I. Finance Deptt: has not authorized the District Govts. to operate this grant. The entire expenditure on retired govt. employees including re-imbursement of medical charges is the responsibility of the Provincial Govt. There is also no provision in the Punjab Local Govt. Ordinance, 2001 which authorizes Distt. Govts. to manage expenditure of retired govt. employees.

5. Therefore, Distt. Govts. are advised not to sanction any expenditure which entails re-imbursement of medical charges to retired govt. employees and


any such case should be sent to the concerned Provincial Administrative Departments for obtaining sanction. After sanction by the relevant Administrative Secretary, the expenditure would be debited to grant No. 28-Pensions from account No. 1 of the Provincial Government.

--------------- No. IT(FD) 3-4/2002


Dated Lahore, the 1st Fbruary, 2003

Subject: FINANCIAL OPERATIONS OF TEHSIL/TOWN MUNICIPAL


Kindly refer to this department’s letter of even number dated 1st January, 2003, whereby the pre-audit and accounting functions of the Tehsil / Town Municipal Administrations were temporarily entrusted to the Punjab Local Fund Audit department, through the existing set-ups of Resident Audit Schemes up to 31st January, 2003. This interim arrangement was allowed to keep the financial operations of TMAs functional.

2. Since the issue regarding the postings of Tehsil / Town Accounts Officers is still under consideration, it has been decided to further extend the aforestated arrangement as prescribed, up to 28th February, 2003.

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No. IT(FD)3-4/2002-VIII-A GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 22nd February, 2003 Subject: PUNJAB LOCAL GOVERNMENT ORDINANCE, 2001-

OPERATION OF TEHSIL / TOWN LOCAL FUND AND UNION LOCAL FUND.

Sir, I am directed to refer to the subject cited above, and to state that under Section 107 of the Punjab Local Government Ordinance, 2001, a Tehsil Local Fund, a Town Local Fund and a Union Local Fund have been established. Further under Section 108 ibid, read with instructions contained in para 2(ii)(a)


of F.D’s letter No. IT(FD)3-4/2002, dated 15th July, 2002, and clarification issued vide letter of even number dated 12.8.2002, the Tehsil / Town Local Fund are maintained in the National Bank of Pakistan and the Bank of Punjab, while the Union Local Fund can be maintained in any commercial bank. Also, under Section 49 ibid, the Tehsil/Town Municipal Administrations and Union Administrations are BODY CORPORATE.

2. It has been brought to the notice of the Finance Department that certain branches of National Bank of Pakistan and the Bank of Punjab have deducted Zakat out of Tehsil/Town Local Funds, although these Local Governments do not fall in the definition of “Sahib-e-Nisab” as contained in Section 2 (xxiii) of the Zakat and Usher Ordinance, 1980. 3. The aforestated action is unwarranted, causing monetary loss to the Local Governments concerned. The matter is accordingly brought to your kind notice for issuing necessary directions to the National Bank of Pakistan and the Bank of Punjab (and also the commercial banks maintaining Union Local Fund) so that no deductions on account of Zakat are made in future from the bank accounts of Local Governments maintaining Tehsil/Town and Union Local Funds. Further, the amounts deducted may be refunded to the respective TMAs/ UAs as (he case may be.

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No. IT(FD)3-4/2002-Vol-III GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 22nd February, 2003 Subject: TRANSFER OF APPROVED BUDGETED AMOUNTS

BETWEEN THE LOCAL GOVERNMENT FOR VARIOUS PURPOSES


2. A question has arisen as to whether a Local Government can allocate and transfer funds to another Local Government, within the local area, for carrying out a project, service or activity falling in the exclusive jurisdiction of the recipient Local Government under Sections 52 and 54 of the Punjab Local


Government Ordinance, 2001.

3. In this regard your kind attention is invited to Section 109(2) of PLGO, 2001 which caters for the above eventuality by providing, that in case any tier of Local Government intends to finance a programme/scheme, not relating to its functions, out of its approved budget/ Annual Development Programme, it may enter into an agreement to undertake the scheme(s) with the other tier for the execution of a scheme/programme/function falling in the latter’s purview, and provide funds for the execution of the agreed scheme/programme etc. Of course, the performing tier would be required to render accounts to such tier of local government as is funding the said schemes etc.


No. IT(FD)3-4/2002/Vol-III GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 1st March, 2003 Subject: FINANCIAL OPERATIONS OF TEHSBL / TOWN

MUNICIPAL ADMINISTRATIONS IN THE PUNJAB

Kindly refer to this department’s letter of even number dated 1st February, 2003, whereby the pre-audit and accounting functions of the Tehsil/ Town Municipal Administrations were temporarily entrusted to the Punjab Local Fund Audit department, through the existing set-ups of Resident Audit Schemes up to 28th February, 2003. This interim arrangement was allowed to keep the financial operations of TMAs functional.

2. Since the issue regarding the postings of Tehsil/Town Accounts Officers is still under consideration, it has been decided to further extend the aforestated arrangement as prescribed, up to 31st March. 2003.

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No. IT(FD)3-4/2002-Vol-IV GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the March 17, 2003 Subject: LOCAL GOVERNMENT FINANCE SYSTEM - PROCEDURE

FOR EFFECTING DEDUCTIONS / RECOVERIES OF GP FUND/INCOME TAX/BENEVOLENT FUND / GROUP INSURANCE AND ADVANCES FROM CIVIL SERVANTS, POSTED IN TMAs.

Section 53 (4) of the Punjab Local Government Ordinance, 2001, provides for the appointment of officials of the decentralized offices, and civil servants from various provincial services in the Tehsil/Town Municipal Administrations (TMAs). Such officials are consequently borne on the schedules of establishment of the respective TMA, and draw their salaries from the respective tehsil / town local fund. The matter regarding the deduction / recoveries on account of Income Tax, General Provident Fund (GPF), Group Insurance, Benevolent Fund and recovery of advances / interest from the salaries of such employees have been under the consideration of the Finance department. The following procedure is accordingly prescribed:

a) In the event of posting of such employees in a Tehsil / Town Municipal Administration, they shall deem to fall under the audit jurisdiction of the District Accounts Officer of the district in which such TMA is located. Consequently, the last pay certificate (LPC) issued by the Accountant General, Punjab / District Accounts Officers/Drawing and Disbursing Officer (in case of non-gazetted officials) in the prescribed manner, in respect of their last posting in a district, shall after recording the G.P. Fund Account No. be sent/routed through the Accounts Office viz the A.G. (Pb)/DAO, (as the case be), in which the Tehsil/Town Municipal Administration is located, in relation to their current posting. The AG (Punjab)/DAO (as the case be) shall countersign the LPC, so presented, for onward transmission to the respective Tehsil/ Town Accounts Officer.

(b) Besides, the A.G. Punjab/DAO shall take the following steps in this regard:

(i) At the time of countersigning the LPC for onward transmission to the TMA concerned, the A.G. (Pb)/DAO shall allot a new G.P. Fund account number to such employees (both gazetted and non-gazetted), in the


prescribed manner, and communicate it to the Tehsil/Town Accounts Officer concerned, under intimation to the respective Tehsil/Town Municipal Officer, and each officer/official concerned.

(ii) A separate audit register shall be opened for each TMA located in a district. Each register shall have pages for registering particulars of all gazetted officers as per the LPC, and for recording deductions on account of Income Tax, Group Insurance, Benevolent Fund, G.P. Fund and advances/interest etc., on monthly basis in form S-98 (Annex-I), as done in the case of gazetted officers on deputation.

(iii) Similarly, a TMA-wise register shall be maintained, setting apart, separate pages of each office/establishment for such non-gazetted employee posted in TMAs and for maintaining record, of aforementioned deductions on monthly basis as prescribed hereunder in para-4,

2. On receipt of countersigned LPC and the G.P. Fund Account number from the A.G.(Pb)/DAO, the. Tehsil / Town Accounts Officer shall record the particulars of gazetted/non-gazetted employees in a register maintained for the disbursement of salaries from the Tehsil / Town Local Fund in the prescribed manner, on the same pattern, as done in the District Accounts Offices, meanwhile ensuring that the deductions on account of Income Tax, Group Insurance, Benevolent Fund, General Provident Fund and Advances/recovery of interest are made at source from the monthly bills of officers/establishment at the prescribed rates. The deduction so made shall be separately consolidated in a statement for each category (Annex-II). Such statements shall be prepared employee wise/department wise for the respective TMA.

3. After completion of the statements as aforestated, and reconciliation of the aggregate deductions with the monthly salary accounts, the Tehsil/Town Municipal Administration shall prepare separate cheques out of the Tehsil/ Town Local Funds, for an aggregate amount of each category of such deductions, and respectively deposit the same in the State Bank of Pakistan / National Bank of Pakistan, branch, as the case be, at the district headquarters in which the TMA is located, in the following heads of accounts not later than the first week of the following month to which such deductions relate:


(a) INCOME TAX (Central) -3000000 – Deposits & Reserves (not bearing interest). - 3600000 – Other Deposits. - 3601031 – ncome Tax Deduction from salaries. (b) GROUP INSURANCE (Provincial) - 3000000 – Deposits and Reserves (not bearing interest). - 3300000 – Reserve Funds. - 3316017 – Government Employees, Group Insurance Fund,

working in TMAs; (c) BENEVOLENT FUND (Provincial) - 3000000 – Deposits & Reserves (not bearing interest). - 3300000 – Reserve Funds Government Employees Benevolent

Fund. - 3315015 – Govt. Employees Benevolent Fund, working in TMAs. (d) GENERAL PROVIDENT FUND (Provincial) -1000000 – Deferred Liabilities. -1500000 – State Provident Funds. -1503001 – General Provident Fund, Govt. Employees working in

TMAs.

(e) Recoveries of Loans (Provincial) - 2000000 – Capital Receipt. - 2200000 – Recoveries of Loans & Advances. - 2250000 – From Government Servants. - 2251000 – *House Building Advance *as the case be -2251017 – Accountant General, Punjab.

4. A copy of the original credit challan, along with a certified statement showing details of such deductions, along with names/designations of such employees (Annex-II) shall be sent by the TMO, in duplicate, by registered post to the AG(Pb)/DAO concerned for record. The AG(Pb)/DAO/TO shall be required to post the aforesaid deductions in the prescribed manner, after an attested copy each of the challan, along with statement is respectively given to the GAD, the DA and the GP Fund sections for the said purpose. In case of non-gazetted employees, the statements and challan shall be pasted on the pages of the respective registers as referred to in paras 1 (ii & iii) above.

5. Such deductions, shall also be respectively reflected in the monthly accounts, by the DAO/T.O, as reported by the State Bank of Pakistan / National Bank of Pakistan in the prescribed manner.


(a) PENSION CONTRIBUTIONS Since the pension liability of civil servants posted in TMAs shall be

borne by the government, the TMA shall not be required to make any contributions to this effect.

(b) PENSION SANCTIONING AUTHORITY The Pension Sanctioning Authority in respect of civil servants posted

in TMAs shall remain the same as respectively prescribed for such category of officials, the sanction for encashment of LPR of civil servants posted in TMAs shall also be done by the same authority as done prior to their postings in the TMAs.

(c) LEAVE SANCTION The sanction of leave of civil servants posted in TMAs shall continue

to be regulated under the Revised Leave Rules, 1981. The sanction of such leave shall be done by the respective authorities in the prescribed manner, as done had they not been so posted in TMAs. Such leave shall however, be subject to recommendation of the Tehsil Municipal Officer concerned in case of gazetted officers, and Tehsil Officer concerned in case of non-gazetted officials.

---------------


(Annex-I) Form S-98 Name of the Officer ________________________ Designation __________________________________

Tehsil Municipal Administration________________ Date of Posting in TMA _________________________ Month Pay Local

Comp. Allowance

House Rent Allow

Dearness Allowance

Dear-ness Allow

Convy. Allow

Total GP Fund

Benev. Fund

Group Insur.

Income Tax

Total

June July August Septem. October Novem. Decem. January Febru. March April May (A) (B) (C) (D) Grant Total


Annex-II

MONTHLY STATEMENT OF DEDUCTION OF INCOME TAX/ GROUP INSURANCE/ BENEVOLENT FUND/ GENERAL PROVIDENT FUND/

ADVANCE FOR THE MONTH OF _____________ 2003

(Score out which is not applicable)

1 Name of Tehsil/Town Municipal Administration ---------------------------------------------------------------------------------------

2 Name of Office / Establishment ---------------------------------------------------------------------------------------

3 STATEMENT OF GAZETTED / NON GAZETTED EMPLOYEES ---------------------------------------------------------------------------------------

Sr. No.

Name of the Officer/Official

Nature of deduction

G.P. Fund A/C No. and Income Tax No. (which

ever is applicable)

Rate of Deduction (Monthly)

Remarks (if any)

1 2 3 4 5 6 Total:

Certified that the aggregate deduction of Rs. (Rupees ) have been effected from the salaries of the above listed employees and credited to respective head of account through cheque No. ____________ dated _______ drawn on the National Bank of Pakistan/Bank of Punjab __________ branch.

( Full Dated signature ) Tehsil/Town Municipal

Officer


No. IT(FD)3-4/2002-Vol-IV


Dated Lahore, the 18th March, 2003

Subject: RECONCILIATION OF RECEIPTS/EXPENDITURES AND

CASH BALANCES OF THE DISTRICT GOVERNMENTS

Under Section 18(g) of the Punjab Local Government Ordinance, 2001 (as amended), the Zila Nazim is responsible for maintenance of administrative and financial discipline in the District Government. Sections 28(2) (e) and 29 (k) ibid, outline the functions and responsibilities of the District Coordination Officers (DCOs), and the Executive District Officers (EDOs) in the matter of financial discipline and accountability.

2. As you would be aware, regular reconciliation of expenditures and receipts is a precondition for sound fiscal and financial management. In this context the importance of monthly reconciliation of receipts/expenditures of each group of offices of the District Government with the District Accounts Officer/Accountant General, Punjab and daily reconciliation of cash balance of the District Government with the DAO /A.G. (Pb), and the respective SBP/NBP branch cannot be overstated.

3. Till such time that the Budget Rules of the District Governments are formally notified, such reconciliation shall be mutatis-mutandis done in accordance with the general principles enunciated in the Punjab Budget Manual, and the mechanism prescribed by the Controller General of Accounts in the “Guidelines for District Governments Accounts under Devolution Plan” notified vide No. 72-CGA/Distt-Govt/2001 dated 11-09-2001 and Finance Department’s letter No. W&M/1-31/2002-2003, dated 4.9.2002.

4. The Fiscal Monitoring Committee, chaired by the Finance Minister, Punjab reviews the reconciliation status every month. You are, therefore, requested to forward consolidated reconciliation statements, separately for each aspect, (receipt, expenditure and cash balance), duly certified by the EDO(F&P), to the Finance Department and the A.G. (Punjab) on regular basis, not later than


the first week of the month following the month to which the reconciliation relates. The statements should depict the percentage status of reconciliation of each group of offices for receipts/expenditures, are cash balance of the district government, as a whole.



FINANCE DEPARTMENT

Dated Lahore, the 1st April, 2003 Subject: FINANCIAL OPERATIONS OF TEHSIL/TOWN MUNICIPAL


Kindly refer to this department’s letter of even number dated 1st March, 2003, whereby the pre-audit and accounting functions of the Tehsil / Town Municipal Administrations were temporarily entrusted to the Punjab Local Fund Audit department, through the existing set-ups of Resident Audit Schemes up to 31st March, 2003. This interim arrangement was allowed to keep the financial operations of TMAs functional.

2. Since the issue regarding the postings of Tehsil / Town Accounts Officers is still under consideration, it has been decided to further extend the aforestated arrangement as prescribed up to 30th April, 2003.

---------------

No. IT(FD) 3-2/2003 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 7th April, 2003 Subject: TAMEER-E-PUNJAB PROGRAMME, 2003 – FINANCIAL

PROCEDURE.


2. The Planning and Development Department has issued detailed guidelines pertaining to the scope, execution, funding and monitoring of various


schemes under the programme:

3. The success of the programme critically hinges on proper utilization of funds provided under the programme. The financial, accounting and reporting procedure as prescribed hereunder, will serve to facilitate the implementation of the programme:

(i) The funds for the Tameer-e-Punjab Programme have been provided in a distinct stream under Provincial Account No. 1. Under no circumstances shall these funds be amalgamated with Account No. IV of the District Governments;

(ii) The funds for the programme shall be released as a block district-wise, by the Finance Department on the advice of the Planning & Development for credit to the joint Personal Ledger Account (PLA) of the District Coordination Officer and Executive District Officer (F&P) of the respective District Government. This department has sanctioned lapsable PLA’s vide No. SO(TT)6-2/2000.Pt-IV, dated 24.03.2003;

(iii) The funds creditable to the PLA shall be debited to Grant No. 36 (Provincials):

Major Function-50000-Economic Services Minor Function-56000-Rural Development Detailed Function-56600-Tameer-e-Punjab Programme

Major Object 60000-Transfer Payments Minor Object 64000-Government Detailed Object 64900-Other

(iv) The Administrative Approval and Technical Sanction for the schemes shall be accorded by the respective competent authorities, as already provided in the guidelines of the P&D Department;

(v) The existing accounting procedures shall be respectively applicable for execution of schemes by the District Governments and Tehsil/Municipal Administrations;

(vi) The payments in connection with the execution of the scheme shall made on the submission of a claim, in the prescribed manner, respectively by the D.O(R&B)/T.O.(I&S), as the case be, to the District Accounts Officer (DAO) for pre-audit of each claim by the concerned executing officer/agency at the time of submission of claim(s);

(vii) The DAO shall pre-audit the claims in the prescribed manner under the relevant existing rules, and pass orders for payment


of such claim(s);

(viii) The amount of claim(s) as authorized by the DAO, shall then be forwarded to the DCO/EDO (F&P) for issuing a PLA Cheque in the name of contractor etc. All prescribed deductions like security/income tax, shall be ensured at the time of making each payment;

(ix) The DAO shall maintain accounts under the relevant rules, in the existing manner, for each scheme as above done for works relating to Works & Services department of District Governments and offices of Tehsil officer (infrastructure & Services) of the TMAs.

(x) The DCO/EDO (F&P), shall also maintain scheme-wise accounts for each payment made out of PLA;

(xi) The DAO and the offices of EDO (W&S) and T.O. (I&S) shall respectively submit accounts to the Accountant General, Punjab, Director General, Local Government & Rural Development, with a copy to the ADLG of the District Government concerned.

(xii) All expenditure shall be auditable by the Auditor General of Pakistan.

--------------- 3rd REMINDER No. FD(M-I) III-2/2001


Dated Lahore, the 11th April, 2003

Subject: SEGREGATION OF AUDIT PARAS.

Kindly refer to this department’s letter of even number dated 11th December, 2002 and subsequent reminder dated 19-12-2002 and 29-01-2003 on the subject noted above.

2. In order to monitor the progress, the outstanding list of audit paras has to be segregated into two portions viz-a-viz the provincial function audit paras and the district government audit paras.

3. The requisite information may be supplied to this department on top priority basis for discussion in the Quarterly Review Meeting, which would be held in near future under the chairmanship of Addl. Chief Secretary, Punjab.


---------------

No. Exp. (GEN)11-6/89-III GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 15th April, 2003 Subject: NON PAYMENT OF ADVERTISEMENT DUES BY THE

ADMINISTRATIVE DEPARTMENTS/ATTACHED DEPARTMENTS/DISTRICT GOVERNMENTS IN THE PUNJAB

It has been observed by the Government that various departments and District Governments owe significant amounts in outstanding advertisement dues to newspapers and other publications. As such the following instructions/ observations may kindly be noted:

(i) PROVINCIAL GOVERNMENT ORGANIZATION: Government organizations are required to route their advertisements

to newspapers/periodicals through Director General Public Relation (DGPR) according to their budgetary provisions. Any expenditure over and above the budgetary provision is violative of financial discipline. As such while forwarding a demand for advertisements to the DGPR, the departments should certify that budgetary provision exists to meet the cost of advertisement. In absence of such certification the DGPR may refuse to place the advertisement in the newspapers/periodicals etc. Regarding outstanding dues, the DGPR may forward a list of provincial government defaulters to the Finance Department, which would consider making payment on behalf of the concerned departments, and adjust the amount out of the budget of these organizations in the current year or in the next financial year.

(ii) DEFUNCT LOCAL COUNCILS For liabilities pending from the pre-devolution period i.e., before

August 14th, 2001, in accordance with the Provincial Local Government Ordinance, 2001, Local Governments being the successor-in-interest of defunct municipalities, town committees etc., inherit the assets as well as the liabilities of these defunct bodies. In such cases of non-recovery the DGPR may refer the list of such liabilities (local government wise) to the Finance Department for payments and subsequent adjustment in the monthly resource transfer of the concerned local governments.


(iii) DEVOLVED OFFICES OF PROVINCIAL GOVERNMENT The liabilities of pre-devolution i.e., before August 14th, 2001 will

be cleared by the Provincial Government. As such the Director General Public Relations may intimate date and department wise details for provision of requisite funds.

---------------



NOTIFICATION

No. FD (FR) Vl-9/2000. In exercise of the Powers conferred on him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab, is pleased to notify the enhancement of the Powers delegated to the Officers of the City District Government Lahore, as below with immediate effect:- OFFICER FINANCIAL POWER (i) DCO City District Govt. Lahore Administrative Secretary (ii) EDO City District Govt. Lahore Category-1 Officer

---------------

No. FD (M-I) III-2/2001.P-I GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 25th April, 2003 Subject: SETTLEMENT OF AUDIT PARAS.

Please refer to your letter No. DGA/SAP/Pb/2901 dated 17-03-2003, on the subject noted above.

2. In partial modification of this department’s letter of even No. dated 22-02-2003 on the subject, it is hereby clarified that the paras of PHED framed by the D.G. SAP Audit for the period from 14th August, 2001 to 30-06-2002 would be discussed by the committee comprising the following:- (i) Tehsil Municipal Officer (in chair) (ii) Tehsil Officer (Infrastructure and Service) (Member) (iii) Representative of the D.G Audit Works/D.G.


SAP Audit (Member) ---------------


Dated Lahore, the April 26, 2003

ORDER

No. PA/DS(AB-I)DSP/2003. All District Coordination Officers in their respective districts and Tehsil Municipal Officers in their respective Tehsils are hereby nominated as “focal persons” for their respective District Governments and TMAs for ADB funded Technical Assistance Loan1 “Local Government Performance Enhancement” under Decentralization Support Programme with immediate effect.

-------------- IMMEDIATE/ OUT TODAY

No. IT(FD) 3-4/2002 Vol-IV GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 1st May, 2003 Subject: FINANCIAL OPERATIONS OF TEHSIL / TOWN

MUNICIPAL ADMINISTRATIONS IN THE PUNJAB

Kindly refer to this department’s letter of even number dated 1st April, 2003, whereby the pre-audit and accounting functions of the Tehsil / Town Municipal Administrations were temporarily entrusted to the Punjab Local Fund Audit department, through the existing set-ups of Resident Audit Schemes up to 30th April, 2003. This interim arrangement was allowed to keep the financial operations of TMAs functional.

2. Since the issue regarding the postings of Tehsil/Town Accounts Officers is still under consideration, it has been decided to further extend the aforestated arrangement as prescribed, up to 31st May, 2003.

---------------


No. W&M (FD)-1-1/70-Vol-V GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the May 19, 2003 Subject: MAINTENANCE OF BANK ACCOUNTS BY AUTONOMOUS

BODIES.

In pursuance of the policy contained in the Government of Pakistan, Finance Division policy letter No. F.4(l)/2000-BR.II dated 12.11.2002 and in partial modification of the instructions issued by the Finance Department vide para 4(b) of letter No. IT(FD)3-l/94 dated 07.04.1994 regarding keeping of working balance and surplus funds in Nationalized Scheduled Banks etc., it has been decided to allow Autonomous Bodies, to keep working balance equal to 8% of their annual current budget, with any public or private bank subject to the following requirements:

(a) For the sake of the safety and security of deposits, the bank/financial institution taking a deposit should have a minimum “A” rating (long-term) as appearing on the website of the State Bank of Pakistan. This “A” rating refers to the rating scale used by Pakistan Credit Rating Agency and JCR-VIS Credit Rating Company for banks incorporated in Pakistan and Moody’s, Fitch Corporate, and Standard & Poors for foreign banks operating in Pakistan. Rating scale of other agencies acceptable to the State Bank should be equivalent to the rating of the above-mentioned companies. Information and clarification on this matter may be obtained from Banking Policy Department of the State Bank of Pakistan;

(b) The process of selection of bank(s) should be transparent. Therefore, prior to placing deposits with a bank under this new policy, and in case the total working balances exceed Rs. 10 million, the selection of the bank(s) as well as the terms of deposits will be approved by the concerned Board of Directors/Governing Body on the basis of competitive bids from at least three independent banks.

(c) The risk associated with keeping deposits should be diversified. Therefore, in cases where total working balances of an enterprise exceed Rs.10 million, not more than 50% of such balances shall be kept with one bank; and


(d) In case the rating of the deposit taking bank drops below “A”, the concerned autonomous body will shift new deposits within a period of one month and old deposits with a period of two months to a bank(s) with at least “A” rating, observing the general guidelines given in this policy.

2. All autonomous bodies in the Punjab will obtain prior guidance from the Finance Department before embarking on physical deposits of their authorized working balance up to the prescribed limit with any public or private bank, under the new policy.

3. The surplus funds over and above the working balances must be kept in the manner already prescribed by the government.

---------------

No. IT(FD)3-4/2002. Vol-lV GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 22nd May, 2003 Subject: LOCAL GOVERNMENT FINANCE SYSTEM - PROCEDURE

FOR EFFECTING DEDUCTIONS / RECOVERIES OF G.P. FUND / INCOME TAX / B.F. / GROUP INSURANCE AND ADVANCES FROM CIVIL SERVANTS POSTED IN TMAs.

Kindly refer to this department’s letter of even number dated 17th March, 2003, on the above noted subject.

2. Certain TMAs have raised questions (i) as to the authority for sanctioning G.P. Fund advances / final payments in respect of civil servants posted in the Tehsil / Town Municipal Administration and (ii) the fate of G.P. Fund balances of such employees pertaining to the periods prior to their present postings.

3. The issues have accordingly been examined in this department and are clarified as under:-

(i) Grant of G.P. Fund advance and final payments to civil servants posted in Tehsil / Town Municipal Administration shall be done by the respective Tehsil / Town Officers under whom the concerned civil servants are working in the TMA;


Likewise, advances / final payments in case of Tehsil / Town Officers in a TMA shall be sanctioned by the Tehsil / Town Municipal Officers;

(ii) As regard the previous G.P. Fund balances of such employees, it is stated that since the G.P. Fund accumulations of these employees are to be credited into the respective G.P. Fund accounts maintained by the concerned District Accounts Officer/Accountant General, Punjab, the previous G.P. Fund balances shall be consolidated by the DAO of the district in relation to their last posting in the TMA.

4. You are, advised to proceed in the matter accordingly. ---------------


No. IT(FD) 3-4/2002 Vol-IV GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 2nd June, 2003 Subject: FINANCIAL OPERATIONS OF TEHSIL / TOWN MUNICIPAL


Kindly refer to this department’s letter of even number dated 2nd May, 2003, whereby the pre-audit and accounting functions of the Tehsil / Town Municipal Administrations were temporarily entrusted to the Punjab Local Fund Audit department, through the existing set-ups of Resident Audit Schemes up to 31st May, 2003. This interim arrangement was allowed to keep the financial operations of TMAs functional.

2. Since the issue regarding the postings of Tehsil/Town Accounts Officers is still under consideration, it has been decided to further extend the aforestated arrangement as prescribed, up to 30th June, 2003,

---------------

No. FD(L)2-6/2002-03 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 17th June, 2003 Subject: RECOVERIES OF LOANS AND ADVANCES GRANTED TO

CIVIL SERVANTS POSTED IN LOCAL GOVERNMENTS.


Kindly refer to the subject noted above. 2. With the establishment of the new local government system, under the Punjab Local Government Ordinance, 2001, a number of employees of Punjab Government were transferred and posted in local governments. The loans and advances granted to such civil servants, prior to their postings, as above, were debitable to Provincial Government Account No. 1. Consequently, all recoveries from them for the principal amounts or interest thereof were creditable to the Provincial Consolidated Fund in Account No. 1, during the financial years, 2001-2002 & 2002-2003 in terms of their loan agreements.

3. However, it has been reported that such recoveries on account of principals/interests have been credited irregularly to District Fund Account No. IV of the District Governments. The matter has accordingly been examined in the Finance Department, and it is to clarify that all loans and advance granted to civil servants from Account No. 1 shall be recovered, and be creditable to Punjab Account No. l (N.F.) only.

4. Cases, where such recoveries have been credited to District Fund Account No. IV of District Governments, or the Local Funds of Tehsil Municipal Administrations/Union Administrations, may be immediately reviewed, and such resource re-credited to the Provincial Account No. 1 in the prescribed manner, under intimation to this department.

---------------

No. IT(FD)3-2/2003 (KC) GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 28th June, 2003 Subject: TAMEER-E-PUNJAB PROGRAMME. 2002-2003 –

FINANCIAL PROCEDURE

Kindly refer to your No. ADLG/03/1291-92, dated 20.06.2003, on the above noted subject.

2. In this regard it is clarified, that since the Tehsil Municipal Administrations are yet to be brought on the National Accounting System,


upfront payments to them out of TPP 2002-2003 is not advisable. Therefore, the procedure prescribed by the Finance Department for making payments against works, after pre-audit by the District Accounts Officer, would continue to remain in force.

---------------

OFFICE OF THE DISTRICT COORDINATION OFFICER, SIALKOT. Ph:0432-269624, 268590

Fax: 0432-262751

No.ADLG/03/1291-92 Dated: 26-06-2003. Subject: TAMEER-E-PUNJAB PROGRAMME 2002-2003 FINANCIAL

PROCEDURE.


It is submitted that with reference to Item (General) (v) of guidelines issued for the implementation of Tameer-e-Punjab Programme vide Planning & Development Department’s letter No.9(224)RO (RD)P&D/2003, dated 18-02-2003, some of the MPAs have desired that the development funds of their constituency may be transferred to respective Tehsil Municipal Administrations. However, the District Accounts Officer, Sialkot has made an observation that the funds of TPP cannot be transferred upfront in the account of TMA’s or District Government. He has invited attention to the prescribed procedure laid down vide Item (vi) of Finance Department instructions contained in their letter No.IT(FD)3-2/2003, dated 07-04-2003 wherein the payments in connection with the execution of the schemes under TPP shall made on the submission of a claim, in the prescribed manner, respectively by the D.O.(R&B)/ T.O.(I&S), as the case may be, to the District Accounts Officer for pre-audit of each claim by the concerned executing officer/agency at the time of submission of claim (s). Thus in case the funds are transferred to TMAs as per instructions of P&D Department, it will not be possible to comply with the procedure laid down by the Finance Department because the TMAs operate a separate account and financial procedure which is different from the one laid down for TPP.

In view of the above, it is requested that this office may kindly be


advised whether the relevant funds of TPP may be transferred to TMAs or not. ----------------


FINANCE DEPARTMENT

Dated Lahore, the 30th June, 2003 Subject: TAMEER-E-PUNJAB PROGRAMME, 2003 – FINANCIAL

PROCEDURE.

Kindly refer to this department’s letter of even number dated 7.4.2003, on the subject cited above.

2. Certain District Governments have approached this department for the conversion of the Personal Ledger Accounts, jointly sanctioned in the name of DCOs & EDO (F&P), for operation of the funds of the programme as non-lapsable.

3. It is clarified, that the unspent balance in the PLAs, as on 30th June, 2003, shall lapse. However, funds to the extent of lapsed amounts may be provided afresh m the prescribed manner in the financial year 2003-2004.

---------------

No. PS/AFS(M)/2001 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 2nd July, 2003 Subject: DDO POWERS FOR THE OFFICERS OF DISTRICT

GOVERNMENT DEPARTMENTS

In continuation of this department letter of even number, dated 01-01-2003, I am directed to convey the sanction that the District Coordination Officers are authorized to confer the powers of DDOs to the officers of District Government up till 31-12-2003.

2. The department-wise /sector-wise list of officers authorized the DDO powers at district level may be sent to the Monitoring Wing of Finance Department for confirmation.

3. The DDO powers are subject to further condition that reconciliation


of expenditure/receipts would be made with the DAOs on regular basis. In case of failure for reconciliation of monthly accounts the DDO powers would be reviewed.

---------------

No. IT (FD) 3-4/2002-Vol-IV GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 27th August, 2003 Subject: RETIRING AUTHORITY EMPLOYEES OF EX-LOCAL

FUND ACCOUNT ATTACHED WITH EDUCATION/HEALTH DEPARTMENT

Please refer to your letter No. 10/G-Lines/DO(A)/2002, dated May 2003, on the above noted subject.

2. The issue cited in the subject has been examined in this department, and it has been decided in consultation with the LG&RD/LFA departments that the employees charged against the erstwhile local funds, adjusted in the District Government have not been brought in the purview of the Punjab Civil Servants Act, 1974, and the rules operative there under, including the Punjab Pension Rules and the Punjab (Civil Service) Delegation of Powers Rules, 1983.

3. As such, the employees of the Education/Health Sector of erstwhile urban local councils, adjusted in District Government have been given special placement and dispensation with regard to sanction of pension and payment vide Notification No. SO-IV(LG)1-10/2002, dated 23.10.2002. Therefore, the sanction of pension payments to the said categories of employees shall be regulated in accordance with the Notification referred to above.

---------------

No. IT(FD) 3-1/93 (Misc) Vol-V GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 28th August, 2003 Subject: REVALUATION OF WORKS AND SERVICES

DEPARTMENTS CHEQUES ISSUED BY DISTRICT OFFICERS (B&R) OF DISTRICT/CITY DISTRICT


GOVERNMENTS AND TEHSIL/TOWN OFFICERS (I&S) OF TEHSIL / TOWN MUNICIPAL ADMINISTRATIONS.


2. It has been brought to the notice of the Finance Department that certain contractors executing Public Works for the District /City District Governments and Tehsil / Town Municipal Administrations have failed to draw payments through Works and Services Departments cheque(s) issued in their favour by the offices of the Accountant General, Punjab / District Accounts Officers or the Tehsil Officer(Finance)/Tehsil Accounts Officers respectively on or before 30-06-2003, during the financial year 2002-2003, in discharge of their validly accrued liabilities. This position has essentially emerged due to belated issuance of cheque(s) by the respective authorities.

3. In order to alleviate the aforestated problem, it has been decided to allow revalidation of all cheque(s) of Works and Services departments issued by the AG (Pb)/DAOs for the City District/District Governments and the T.O (Finance)/TAO for the Tehsil /Town Municipal Administrations, on or before 30-06-2003, during the financial year 2002-2003, which (i) though validly authorized for payment by the DAO/TO or the TO (Finance)/TAO, as the case be, could not be encashed by the payees through bank clearance or (ii) the cheques could not be issued by the AG(Pb)/DAO or the T.O(F)/TAO, in the prescribed manner.

4. The revalidations in case of City District Government/District Governments shall be done by the A.G.(Punjab)/DAO respectively, on the submission of a formal request by the D.O (B&R) of City District/District Government concerned, along with the original un-cashed cheque(s). Accordingly, a new cheque(s) shall be issued, in the prescribed manner, by the AG (Punjab)/DAO, as the case may be, in lieu of the un-drawn/un-cashed cheque(s) issued on or before 30-06-2003, after due scrutiny of the record relating to the original claim. The amount of cheque(s) in case of City/District Government shall be debitable to the District Fund, Account No. IV against the respective budgets of the City District Government/District Governments for the financial year 2002-2003.


5. The revalidation of cheque(s) in case of Tehsil/Town Municipal Administrations shall be done by the respective Tehsil Officer (Finance)/Tehsil/ Town Accounts Officers (TAO) on the submission of a formal request by the respective TOs (l&S), along with the original un-cashed/un-drawn cheque(s) issued on or before 30-06-2003, during the financial year 2002-2003. Accordingly, new cheque(s) shall be issued, in the prescribed manner, by the TO(Finance)/TAO in lieu of the under drawn / un-cashed cheque(s) issued on or before 30-06-2003, after due scrutiny of the relevant record relating to the original claim. The amount(s) of the cheque(s) shall be debitable to the respective Tehsil/Town Local Fund against the respective budgets for financial year 2002-2003.

6. The revalidations as above shall be further subject to the following conditions:

(a) that the cheques, under reference were validly issued by the AG(Pb)/DAO/TO for the City District / District Government, and TO(Finance)/TAO for TMAs respectively on or before 30th June, 2003, in discharge of valid accrued liabilities;

(b) that the amount of each cheque, after it’s issuance, had been debited to the respective budgetary allotment of the scheme/work of the District/City District Government or the Tehsil /Town Municipal Administration, as the case be, for the financial year 2002-2003;

(c) that the expenditure corresponding to amount of each cheque had been entered and booked in the respective cash book maintained by the AG(Pb)/DAO or the TO(I&S) as the case be, in the respective date, falling on or before 30-06-2003 and that the cash book was closed on 30-06-2003, and duly verified thereafter by an authorized representative of the Director General Audit (Works), Lahore, as prescribed;

(d) that the serial number of the respective cheque (including the last cheque) preceded the number of the last cheque issued by the AG(Pb)/DAO or the TO(Finance)/TAO of the City District/City District Government or the Tehsil/Town Municipal Administration, as the case be, on or before 30-06-2003 and communicated to the Director General Audit (Works), Lahore, on 30-06-2003 telegraphically in the prescribed manner;


NOTE: (i) The above policy shall only be applicable to Cheques of the

Works and services department issued by the District /City District Governments or the Tehsil /Town Municipal Administrations, pertaining to financial year, 2002-2003.

(ii) The re-issuance of cheques in the aforesaid manner would not be admissible in case of “self & special-cheques” issued on or before 30-06-2003.

(iii) The revalidation shall not be applicable in case of payment of arrears of electricity dues to WAPDA as stipulated in FD’s policy instructions No. SO (PD)/1-1/94-95, dated 20th July, 1998.

7. The policy regarding revalidation of PWD cheques of the Provincial Works Departments has been issued separately.

---------------


FINANCE DEPARTMENT

Dated Lahore, the 10th September, 2003 Subject: CLARIFICATION ABOUT DISTRICT GOVERNMENT

EXPENDITURE – REIMBURSEMENT OF MEDICAL CHARGES TO RETIRED GOVERNMENT EMPLOYEES

Kindly refer to this Department’s letter of even number dated 1st February, 2003 on the subject noted above.

2. In view of the difficulties and hardship to the retired civil servants in obtaining sanctions for re-imbursement of medical charges etc., the matter has been reviewed in consultation with the Controller General of Accounts, Islamabad. It has been determined, that the functionaries of the District Governments can exercise financial authority and operate Provincial Account No. I, if so directed by the Government under Sections 33 and 130 of the Punjab Local Government Ordinance, 2001. Suitable clarification has accordingly been circulated vide F.D’s letter No. SO(TT)26-1/86-Pt-IV dated 09-08-2003.

3. In pursuance of the aforestated developments it has accordingly been decided as follows:


(a) Finance Department’s instructions No. FD(FR)II-2/89 dated 1st February, 2003 shall stand withdrawn with immediate effect.

(b) The designated functionaries of District Government are authorized in terms of Sections 33 & 130 of Punjab Local Government Ordinance, 2001 to sanction medical reimbursement cases of retired civil servants of the Provincial Government from Account No. I. to the extent of the delegation of powers already conferred vide F.D’s letter No. FD(FR)11-2/89 dated 01-09-2001. Such expenditure will be debitable to Grant No. 28 - Pensions- 66200- Re-imbursement of Medical Charges to Pensioners.

(c) The respective functionaries of the District Government are also authorized to sanction pension cases of retiring civil servants as “Pension Sanctioning Authorities” as per delegations given under The Punjab Civil Services Delegation of Powers Rules, 1983 in the prescribed manner. They are also authorized to grant G.P. Fund advances to civil servants in the prescribed manner as per The Punjab Provident Fund Rules, 1978.

4. Further necessary action may please be taken accordingly.

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No. DSP/PA/PPD/24/2003 DECNETRALIZATION SUPPORT PROGRAMME PROVINCIAL PROGRAMME SUPPORT OFFICE

FINANCE DEPARTMENT GOVERNMENT OF THE PUNJAB


Subject: DECENTRALIZATION SUPPORT PROGRAMME – AN

UPDATE

This is in continuation of our earlier correspondence on the subject.

We are pleased to inform you that the Annual Work Plan, Phase-I for the year 2003-04 has been approved by the National Programme Steering Committee in its meeting held on 5th August, 2003. A one-page copy is appended for your information and record. We would like to point out that in the first phase only those projects have been taken up that relate to areas that are cross cutting across various Districts and Tehsils of Punjab. The emphasis is on


taking up projects in the first phase that are of overwhelming importance to majority of the District Govts./TMAs and have far reaching impact on service delivery. In the Second phase, we would be able to take up projects that would be of specific interests to various District Govt./TMAs.

2. The approval of the Annual Work Plan marks the beginning of a process of implementation. The following steps will now be undertaken:

(a) The Provincial Program Support Office will prepare the Terms of Reference (TOR) for the services required to implement the IP. This will be completed by 30th September, 2003. Once these TOR are firmed up, we will share them with the District Governments and TMA’s who submitted the IP’s to obtain their input.

(b) An advertisement will be placed in the national newspapers, inviting Expressions of Interest (EOI) and bids from the service providers. Once these bids and EOI are received, the Provincial Program Support office will evaluate them and the contract awarded on laid down criteria. This will be completed by 15th October, 2003.

(c) When the Contract is awarded, the Local Governments from where the IPs originated, will be informed simultaneously so that they can prepare in the manner required to implement the IP.

(d) During implementation, we will be in close coordination with the local governments so as to monitor the activity and also to ensure that the IP design and objectives are being fulfilled.

3. Furthermore, in the National Programme Steering Committee’s Meeting held on 5/8/2003 with the view to recognize the efforts of focal persons, the issue of payment of honorarium to the focal persons was decided. The excerpts of the meeting are reproduced below for your kind information:

After comprehensive deliberations, the following criteria were approved:

(a) For submission of satisfactory Investment Proposals (IPs) to PSOs an honorarium of Rs. 3000/- per focal person will be eligible.

(b) For each IP that was converted into a Technical Investment Project (TIP) and included in the approved AWP, an honorarium of Rs.7,000/- will be eligible per focal person.


(c) Top 20% of (Focal Persons) DCOs / EDOs who provide effective leadership and support in implementation of TIP and DSP. Rs. 50,000/- year, as honoraria, will be eligible subject to the condition that the officer should be in position for at least 6 months of AWP implementation.

(d) Top 20% of TMOs who provide effective leadership and support to the implementation of TIP and DSP. Rs. 40,000/- year, as honoraria, will be eligible subject to the condition that the officer should be in position for at least 6 months of AWP implementation.

(e) The formal approval to the payment of honoraria to the selected provincial Focal Persons would be accorded by PPSC and expenditures will be met from provincial resources.

4. I would also like to take this opportunity to remind you that the second phase of the IP development will begin from 1st September, 2003 and end by 30th November, 2003. We expect all the Focal Persons for the Program (DCOs/EDO F&P at District Level and TMO’s at TMA level) to hold at least 5 dialogue sessions and come up with at least 10 IP’s, submitting them by 30th November to this office.

In a very short time we would be undertaking an effort to establish contact with the elected political representatives in the District Governments and Tehsil Municipal Administrations to elicit support for Decentralization Support Programme. Therefore, we would be visiting you very soon. In the meantime, feel free to contact me or any one of my staff on the phone number 042-9211090 & email: [email protected].

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No. IT(FD)3-4/2002. Vol-VII GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore the 17th December, 2003. Subject: REQUEST FOR ADDITIONAL GRANTS BY LOCAL

GOVERNMENTS.

Kindly refer to this department’s notification of even number dated 8th September, 2003, outlining the policy parameters for regulating incidence of


one-time grant-in-aid to local governments from Provincial Account No.1.

2. Notwithstanding the said guidelines, the local governments are coming up with huge demands for providing additional funds, especially for development schemes. Such requests are generally made through the Governor/Chief Minister, and received in this department as directives. Consequently, the Finance Department, despite resource constraints, is hard pressed to create fiscal space to meet such additional demands.

3. The matter was accordingly brought to the notice of the Chief Minister, proposing that the provincial government may not encourage extra-budgetary allocations to the local governments, which otherwise too are a disincentive for them to improve their own resources, through improved user-charges etc. The Chief Minister has kindly agreed with this proposal.

4. It is, therefore, to request, that all local governments may be suitable informed, that the provincial government will not be in a position to fund their development projects beyond the Provincial Finance Commission’s Award, unless specific projects are picked up by the Provincial Government, as a matter of policy.

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No. No.PS/AFS(M)/2001 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 6th January, 2004 Subject: CONFERRING OF DDO POWERS TO THE OFFICERS OF

DISTRICT GOVERNMENT UNDER THE PUNJAB DISTRICT GOVERNMENT AND TEHSIL MUNICIPAL ADMINISTRATION (BUDGET) RULES, 2003.

Kindly refer to this department’s letter No. PS/AFS(M)/2001, dated 11.8.2001, inter-alia clarifying that the officers of the decentralized departments under the District Governments shall continue to exercise the existing powers of the Disbursing Officers (for expenditure) and Collecting Officers (for receipts) as already prescribed in Appendix D of the Punjab Budget Manual. However, in


case of change of nomenclature of the post or creation of a post with a new nomenclature, the DDOs/COs would be notified afresh. The District Coordination Officers were meanwhile authorized to confer powers of Drawing & Disbursing Officers to the officers of the District Governments, where necessary. This authorization was last extended up to 31-12-2003.

2. Meanwhile the Punjab District Government and Tehsil Municipal Administration (Budget) Rules, 2003, have been notified vide No. SOV (LG) 5-12/2003 dated 5th June, 2003. Rule 6 read with Rule 2 (xxiv) of the Rules ibid, prescribes that the Drawing & Disbursing Officer shall be designated by the respective Head of offices under his administrative control.

3. It is accordingly stated that Head of offices, as detailed in Rule 4 (I) (i-iii) of the Rules ibid, may designate Drawing & Disbursing Officer, as necessary, under his purview. A DDO shall, of course, be an officer in BS Scale-16 and above, and so designated in relation to his function in Rule 2 (xxiv) ibid.

4. Therefore in exercise of the Authority conferred under Section 16 of the PLGO, 2001 (as amended) read with Rule 6 of the Punjab District Government and Tehsil Municipal Administration (Budget) Rules, 2003, the District Governments are required to appoint Drawing & Disbursing Officers, as prescribed, under intimation to the Finance Department and respective Administrative Departments, the Accountant General, Punjab/District Account Officers/Treasury Officer Lahore, Director General, District Govt. Audit and Regional Offices of the District Government Audit in the Punjab. It is reiterated that the DDO shall only be so designated after due scrutiny by the DCOs after establishing the requirement.

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No. FD (M-l) 111-2/2001 (P) GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 14th January, 2004 Subject: SETTLEMENT OF AUDIT PARAS.


I am directed to refer to this Department’s letter No. FD-PS-AFS(B) 6770/02, dated 7.11.2002 whereby the District Governments were requested to notify their respective Accounts Committee comprising the members mentioned therein with the District Coordination officer as its chairman. The District Governments were further asked to hold District Accounts Committees meetings and DCO shall appear as Principal Accounting Officer before the Provincial Public Accounts Committee for the settlement of audit paras pertaining to the period prior to devolution in relation to the offices decentralized to the District Government.

2. Subsequently this Department’s letter No. FD(M-l)111-2/2001(P) dated 31.10.2003 clarified that the Administrative Secretaries/Heads of Attached Departments shall appear before the Public Accounts Committee as Principal Accounting Officer in relation to the audit paras under discussion, and that any receipts, accruing as recoveries shall form part of Provincial Consolidated Fund and deposited therein in the prescribed manner.

3. Finance Department has been receiving queries with regard to the settlement of proposed draft paras, Advance paras and Audit observations pertaining to the period prior to the devolution with regard to decentralized offices. The doubt has arisen because the arrangement discussed in Para-2 above, prima facie, lays down the course of settlement for Draft paras.

4. It is reiterated that the outstanding audit paras pertaining to the period prior to devolution, of decentralized offices are the liability of the Provincial Government under Section 180 of the Punjab Local Government Ordinance, 2001 (as amended). It is accordingly clarified that:

(i) the Proposed draft paras, Advance paras and Audit observations pertaining to the period prior to devolution, of the offices decentralized to District Government/Tehsil Municipal Administration, if any, shall be settled by the Administrative Departments through SDACs and / or DACs, as the case may be, as already constituted vide this Department’s letter No. FD (Monitonng)11-1/82, dated 27.3.1982. Needless to say that consequential recoveries shall form part of the P.C.F and credited thereto in the prescribed manner, and

(ii) The Proposed draft paras/Advance paras and Audit


observations pertaining to the period prior to devolution, of the decentralized offices, if already discussed and settled, in the prescribed manner, by the District Accounts Committee, may be considered as validly settled.

5. I am further directed to request you to get conducted the audit, if yet not undertaken, of the accounts of Drawing & Disbursing Officers/Collecting Officers pertaining to the period prior to devolution with regard to the offices decentralized, after making special arrangements with Audit Authorities auditing the accounts of provincial component.

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No. FD (M-I)111-2/2001-P GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 29th March, 2004 Subject: DECENTRALIZATION OF CIVIL DEFENCE DEPARTMENT

Kindly refer to your letter No. SO (Dev) HD/4-38/2003, dated 7.1.2004, on the subject cited above.

2. I am directed to state that all financial issues inclusive of those mentioned in Para 2 of your letter pertaining to the offices decentralized to District Governments are to be regulated under Punjab Local Governments Ordinance, 2001 (as amended), rules framed and policy made there-under. Your kind attention is invited to Section 120 (D) ibid; where-under District Governments are receiving grants in aid through PFC award. Furthermore under Section 112 ibid, Zila Council is competent to approve budget estimates and re-appropriations of a District Govt. Finance Department in their letter No. FD-PS/AFS (B) 6776/02, dated 7.11.2002 has inter-alia requested the District Governments to notify their respective Accounts Committee to settle the audit paras in District Accounts Committee in terms of Section 115 ibid. Finance Department in their letter No. even, dated 31.10.2003 and No. even, dated 14.1.2004 has further clarified that the audit paras pertaining to the period prior to 14.8.2001 will be the liability of the Provincial Government.

3. Nevertheless, the reply to these queries in seriatim is given below:


(a) Query (i) pertains to regularization of financial irregularities observed by Audit. The Audit Department usually observes certain types of irregularities. By and large these irregularities can be clubbed in following three categories:

(i) Serious irregularities involving embezzlement, leakage, void expenditure;

(ii) Procedural lapses and exercising powers beyond competence.

(iii) Irregularity pertaining to appropriations i.e., saving/excess.

The irregularities mentioned at i & ii above, would need regularization from the competent authority in FD/S&GAD besides adopting course of action laid down in RSO, 2000 & Anti Corruption Establishment Act. So far as the irregularity at serial iii is concerned, in the aforestated prescribed arrangement, excesses/ savings in the allocation beyond permissible limit would need regularization from the Zila Council besides any other action against the DDO by the District Government on the recommendations of respective Accounts Committee.

(b) Query at ii and iii is with regard to ex-post facto sanction. It is clarified that A.D. has been given the powers to ex-post facto sanction up to Rs. 1.00 lac, while the ex-post facto sanction beyond the value of Rs. 1.00 lac is granted by the F.D vide No. FD (M.I) III-2/87(P-V) dated 11.5.2002. The aforesaid arrangement will continue till further orders.

(c) Query at iv Advance Paras, Proposed Draft Paras and Ordinary audit observations shall be discussed in the District Accounts Committee as referred in para 2 of this letter.

(d) Query v and vii, the audit paras/audit observations of the decentralized offices pertaining to the period prior to 14.8.2001 is the liability of the Administrative Departments. The issue has already been addressed by the Finance Department vide Nos. even, dated 31.10.2003 and dated 14.1.2004.

(e) Query vi falls in the domain of LG&RD Department. A.D. may decide the issue in consultation with the LG&RD Department.

4. Administrative Department is requested to take action accordingly. ---------------



Dated Lahore, the 7th April, 2004.

NOTIFICATION

No. FD (FR) 11-5/82 (P). In partial modification of this Department’s Notification No. even, dated 11.8.2001, Governor of the Punjab is pleased to direct that the Tehsil/Town Municipal Officer of a Tehsil/Town Municipal Administration shall act as member of the District Development Committee to consider and approve development schemes of the respective Tehsil/Town Municipal Administration above Rs. 5.00 million, as prescribed under Rule 16 of Tehsil Municipal Administration (Works) Rules, 2003.

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No. FD(FR)II-2/89 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 26th May, 2004 Subject: RE-IMBURSEMENT OF MEDICAL CHARGES OF RETIRED

CIVIL SERVANTS OF THE PUBLIC HEALTH ENGINEERING DEPARTMENT DECENTRALIZED TO TMAs.


2. With the decentralization of the Regional/District Offices of the Public Health Engineering Department to the Tehsil/Town Municipal Administration under Section 52 of the Punjab Local Government Ordinance, 2001, the retired civil servants of PHE Department and their families have been facing difficulties in the matter of drawal of reimbursement of medical charges due to the absence of any Sanctioning Authority and Drawing and Disbursing Officers (DDOs) at District/Tehsil level. Meanwhile, the civil servants working in TMAs can only operate Tehsil/Town Local Fund and are not competent to


sanction any expenditure or act as DDO for the withdrawal of the monies from Provincial Consolidated Fund (Account No. 1) for the said purpose.

3. In order to alleviate the problem, as above, the following procedure is prescribed for effecting the reimbursement of medical charges of retired employees of the PHE Department and their families: (i) The retired civil servants of PHE Department and their

families shall get themselves registered with the District Officer (Buildings) of the respective District Government, where they presently reside, on the basis of the information contained in the proforma at “Appendix-A”. This information/data will be verified/ authenticated (one time) by the TO (I&S) of the TMA at respective District Headquarter on the basis of the record available with them. In case of existing pensioner a declaration/affidavit as prescribed in “Appendix-B” shall also be provided by the pensioner to the District Officer (Buildings).

(ii) The District Officer (Buildings) shall be responsible for referring the case of medical attendance of such pensioners and their families to the Medical Superintendent, District/Tehsil Headquarter, as the case may be, where the pensioner/his family is lastly residing. The District Officer (Building) shall also act as DDOs of PHC Department for such claims of the retired employees (non-gazetted only);

(iii) The DCO and EDO shall act as the designated functionaries, in

terms of Sections 33 and 130 of the Ordinance ibid to sanction reimbursement of medical charges of the retired civil servants of PHE Department from Account No. 1 to the extent of delegation of powers already conferred vide F.D’s letter No. FD(FR)11-2/89, dated 1.9.2001. The expenditure shall be debitable to Grant No.2 Pensions-66200-Re-imbursement of Medical Charges to Pensioners.

4. Further necessary action may please be taken accordingly. ---------------

No. FD (FR) 11-2/89 (Provl)


Dated Lahore, the 2nd June, 2004

Subject: CLARIFICATION ABOUT DISTRICT GOVERNMENT

EXPENDITURE - REIMBURSEMENT OF MEDICAL CHARGES TO RETIRED GOVERNMENT SERVANTS


Kindly refer to your Department U.O. No. B&A/Acctt/A-I-34/Vol-II/1241, dated 30.3.2004, on the subject as cited above.

2. I am directed to clarify that the policy contained in this Department’s letter No. FD (FR) 11-2/89 (Provl), dated 10.9.2003 shall apply to the retired/retiring government employees of the offices decentralized to the District Governments under Section 14 of the Punjab Local Governments Ordinance, 2001 (as amended).

3. Accordingly, 1 am further directed to clarify that the retired/retiring Government employees of the Forestry, Wildlife, Fisheries & Tourism Department (devolved component only) would get reimbursement of their medical charges, in the prescribed manner and in accordance to the procedure given in para 3 (b) of the letter referred to above. The District Officer (Forest) shall act as DDO, for the purpose, in respect of such pensioners (non-gazetted).

4. Further necessary action may please be taken accordingly. ---------------

GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 5th June, 2004 NOTIFICATION

No. FD (FR) 11-7/87. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in Punjab Financial Rules, Volume-I, following further amendments shall be made namely: Amendment

(i) RULE 12.20 PUNJAB FINANCIAL RULES VOL-I.

The Treasury Officer is responsible for seeing that each entry of receipt and payment in the pass book is correctly made and initiated by him. And at the end of each month the entries on each side of the pass book are totaled and the balance struck and agreed with the treasury accounts. The pass book should be signed in full by the Treasury Officer with date.

(ii) FOOT NOTE BELOW PUNJAB FINANCIAL RULES FORM


25

*Each entry of receipt and payment should be initiated after comparison with the credit challan and register of cheques paid respectively.

* to be balanced monthly and signed in full after being balanced.

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NO.IT(FD)3-4/2002-Vol-VII(KC) GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the June 11, 2004. Subject: PAYMENT TO GEPCO BY DISTRICT GOVERNMENT –

CLARIFICATION.

Kindly refer to your D.O. letter No. 3572, dated 15-05-2004, addressed to the Finance Secretary on the above noted subject.

2. The issue as to the mode of payment to GEPCO (WAPDA) for Rural Electrification Schemes against development funds by the District Governments from Account-IV has been re-examined.

3. It is reiterated that payments under reference shall not be made through simple Receipt Form out instead be made by the Drawing and Disbursing Officer of the District Government concerned in the prescribed manner.

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NO.IT(FD)3-4/2002-Vol-VII(KC) GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the June 12, 2004. Subject: DEVELOPMENT FUNDS OF TAMEER-E-PUNJAB

PROGRAMME – JOINT PLA OF DCO/EDO (F&P) – DEPOSIT OF SECUTITIES INTO COMMERCIAL BANK AS INTEREST BEARING SECURITIES.

Please refer to your letter No.DAO/SLK/TRY/ATO/623, dated


22-03-2004, on the above noted subject.

2. The issue as to the mode and manner of retention of securities, deducted from contractors, rendering services in connection with the execution of development schemes pertaining to the Tameer-e-Punjab Programme, funded through the joint PLA of DCO/EDO (F&P), has been examined in this department.

3. Given the specific financial procedure prescribed for the Programme, it is clarified that the securities deducted from contractors in accordance with the existing rules/procedures/terms of contract, may if so requested, be connected into a recognized form of profit bearing security and amounts so retained from bills of contractors shall be deposited in any of the prescribed commercial banks and pledged in name of Executive District Officer (Finance & Planning)of the District Government concerned. All other existing conditions shall apply mutatis-mutandis.

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Dated Lahore, the 21st June, 2004

NOTIFICATION

No. FD (FR) 11-7/87. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in the Punjab Financial Rules, Volume-1, the following further amendment shall be made, namely:

Amendment:

In rule 5.3, for clause (b), the following shall be substituted:

“(b) Pay, allowances or pensions, to the extent of the amount claimed on behalf of deceased Government servant or pensioner, shall, after such enquiries into the right and title of the claims as may be deemed sufficient, be paid in the manner and by the authority as follows:

1. Deceased Government servant except those mentioned at item No. 2 below, last serving in the office of

District Coordination Officer of the district


the Provincial Government or a local government and pensioner, lastly residing in a district.

concerned.

2. Deceased Government servant lastly served in the Civil Secretariat or its Attached Departments at Lahore and pensioner thereof, lastly residing at Lahore.

Administrative Secretary or his designated nominee.

In case of doubt, payment shall be made only to the person producing legal authority”.

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Dated Lahore, the 30th June, 2004.

NOTIFICATION

No. FD (FR) 11-2/89. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in the Delegation of Financial Powers Rules, 1990, following further amendment shall be made, with immediate effect:

Amendment:

In Part-I, Powers Common To All Departments under Second Schedule to Delegation of Financial Powers Rules, 1990, the existing entries against Serial No. 4 shall be substituted to the following extent:

Sr. No.

Name of Powers To Whom Delegated Extent

4. (i) Powers of Administrative Approval to Works/Development Schemes (of Provincial Government).

Administrative Department in Sub-Committees

Up to Rs. 100 million

(ii) Powers of Administrative Approval to Works/Development Schemes (of Local

Administrative Department in Sub-Committees

Exceeding Rs. 20 million and up to Rs. 50 million.


Governments). ---------------

No. FD(PR)II-2/89 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 30th June, 2004 Subject: STREAMLINING OF PROCEDURES TO IMPROVE THE

PACE OF EXECUTION OF DEVELOPMENT SCHEMES –POWERS TO RE-APPROPRIATION APPROVED DEVELOPMENT SCHEMES WITHIN THE SECTOR

Sir, I am directed to invite your kind attention to Serial No. 5 of Part-I Powers Common to All Departments of the 2nd Schedule to the Delegation of Financial Powers Rules, 1990, read with Para 15.3 (b)(xi) of the Punjab Budget Manual, whereby Administrative Departments and Officers in Category-I are competent to sanction re-appropriation of funds of development schemes, while observing the following conditions:

(a) Re-appropriation will not be made except for approved schemes, and

(b) the approved cost of the scheme will not be exceeded, through re-appropriation by more than 10% of the amount for which the scheme has been administratively approved.

2. However, as a necessity of purpose, the role of the P&D department was deliberately built in, to formally approve re-appropriations of development schemes, as it is not only responsible for preparing the ADP, but also tasked to monitor the utilization of ADP funds during the financial year. Therefore, from this perspective, it was considered imperative to keep the P&D department fully abreast in the matter of re-appropriation of ADP funds by the Administrative Departments, within their respective sectors.

3. In order to streamline the procedure and to improve the pace of execution of development schemes, it has been decided, after the approval of the competent authority, that while the Administrative Departments and Officers in


Category-I shall carry out re-appropriation of funds, relating to the development schemes within their sectoral allocations, in the prescribed manner, however, all re-appropriations done in the said manner shall promptly be intimated to the P&D and Finance Departments for the purpose of monitoring the utilization of ADP funds.

4. I am further directed to state, that under the existing provision contained at Serial No. 4 of Part-I of the Schedule ibid, an Administrative Department in Sub-Committees is empowered to accord Administrative Approval to works/development schemes up to Rs. 20.00 million, it has been meanwhile, further decided, with the approval of the competent authority, to enhance the powers of Administrative Approval to Works/Development Schemes of Administrative Departments through Departmental Development Sub-Committees, from Rs. 20.00 (Twenty) million to Rs. 100.00 (Hundred) million. Moreover, the powers of Administrative Approval of the District Development Committees shall remain up to Rs.20.00 million as already provided vide Finance Department’s No. FD (FR)II-5/82, dated 12.01.2002. Further, the projects of the Local Governments costing between Rs. 20.00 million to Rs. 50.00 million shall be approved by the Departmental Development Sub-Committees, whereas those exceeding Rs. 50 million shall be approved by the Provincial Development Working Party. Accordingly, necessary amendments in the Delegation of Financial Powers Rules, 1990 shall follow.

5. Administrative Departments and District Governments arc requested to take necessary actions accordingly.

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No. IT(FD)3-4/2002.Vol-VII GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 23rd August, 2004 Subject: STATEMENT OF MONTHLY AND ANNUAL ACCOUNTS

OF LOCAL GOVERNMENTS – PLACEMENT AT CONSPICUOUS PLACES FOR PUBLIC INSPECTION



2. Under Section 114(t) of the Punjab Government Ordinance, 2001, the respective tier of a local government is required to place statement of monthly and annual accounts at a conspicuous place for public inspection.

3. This mandatory requirement is however, not being observed, whereby the respective Accounts Committees of the Councils are not able to hold public hearings as required under Section 114(6) ibid, and to take appropriate actions thereon in the prescribed manner.

4. It is, therefore, to reiterate that the above requirements may kindly be carried out in letter and sprit to enable the public at large to be aware of the financial affairs of the local governments with regard to its propriety and accountability.

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FINANCE DEPARTMENT

Dated Lahore, the 27th September, 2004 Subject: FINANCIAL PROCEDURE FOR THE IMPLEMENTATION

OF CHIEF MINISTER'S ACCELERATED PROGRAMME FOR SOCIAL DEVELOPMENT


2. In pursuance of the decisions inter-alia taken in the meeting chaired by the Chief Minister on 10.8.2004, the following financial, accounting, reporting and auditing procedure is prescribed for the implementation of the subject programme:-

(A) FLOW OF FUNDS

(i) The funds for the Chief Minister Accelerated Programme for Social Development shall be provided to each district in a distinct stream in Account No. 1, Sector wise / scheme wise on the advice of the Planning & Development Department, and placed at the disposal of the respective District Coordination Officer (DCO).

(ii) The DCO’s shall be authorized to operate Account No. 1 in


terms of the policy contained in F.D’s letter No. SO(TT)26-1/86 Pt-IV dated 9.8.2003 for the utilization of funds relating to the programme.

(iii) A lapseable joint Personal Ledger Account (PLA) of DCO and the EDO (F&P) shall be sanctioned by the F.D. for the placement and utilization of the funds under the Programme in each district, as above.

(iv) The funds creditable to the PLA shall be released from, and debited to the following head of account:

Grant No.36-Development Major Function- 8-40000 – Social Services

Minor Function-

8-41000 – Education 8-42000 – Health 8-43000 – Population Planning 8-44000 – Manpower & Labour

Management 8-45000 – Housing & Physical

Planning 8-46000 – Sports and Recreation

Facilities 8-47000 – Social Security and

Social Welfare 8-48000 – National Calamities and

other Disasters 8-49000 – Religious Affairs

(to be indicated at the time of each release of funds)

Detailed function

(to be indicated at the time of each release of funds)

Major Object 60000 – Transfer Payments Minor Object 64000 – Grants Detailed Object 64900 – Others

(B) IDENTIFICATION / APPROVAL AND EXECUTION OF SCHEMES

(i) The Schemes shall be identified by the respective Administrative and the Planning and Development Departments, as per the approved criteria for the district concerned.

(ii) The Administrative Approval of the schemes under the programme shall be accorded by the District Development Committee, headed by the respective DCO. However, schemes costing more than Rs. 20/- million will be approved by the Departmental Development Sub-Committee.


(iii) The Technical Sanction of the schemes shall be accorded by the prescribed competent authorities of the executing agencies viz; the Provincial Buildings Department, as per their respective delegated powers.

(iv) The execution of schemes shall be done through the set ups of the Provincial Building's Department in a district viz; XENs/SE Buildings.

(C) ACCOUNTING PROCEDURE

(i) On the basis of the Administrative Approval and Technical Sanction granted by the competent forum, the District Coordination Officer shall transfer requisite funds of each scheme from the Personal Ledger Account to the executive agency as a “deposit work” in terms of Rule 7.128 of the Punjab Departmental Financial Rules read with the policy contained in F.D’s letter No. IT(FD)3-8/95, dated 18.4.1996.

(ii) The Rules / Policy / Procedures, as applicable to the Works Departments of the Provincial government, shall mutatis-mutandis apply in the matter of execution of the schemes under the programme.

(iii) The concerned executing agency viz; the XEN shall maintain the monthly accounts of each executed scheme under the programme in accordance with the existing Rules / Policy / Procedures on the subject.

(D) MONITORING & REPORTING PROCEDURE:

(i) The DCO/EDO (F&P) shall maintain scheme wise account of each payment made out of the PLA in the prescribed manner. Such account shall be reconciled with the respective DAO/T.O.

(ii) The DCO/EDO (F&P), shall at the end of the each month, send to the Finance & Planning Development and the respective Administrative Department sector wise/scheme wise statement containing details of each transfer of funds from their PLA to the executing agency.

(iii) The Divisional Officers of the respective executing provincial division shall render monthly accounts of each scheme maintained, as above, and submit it in the prescribed form and manner, to the office of the Director General Accounts (Works), on due dates. A copy of the monthly Accounts shall also be provided to respective DCO.

(E) AUDIT All expenditures incurred with regard to the schemes under the


programme shall be audited by Auditor General of Pakistan. ----------------


Dated Lahore, the 30th September, 2004.

NOTIFICATION

No. FD (FR) 11-5/82. In exercise of the powers conferred upon him under Article 119 of the Constitution or Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in Part-I OFFICERS IN CATEGORY-I of the First Schedule to the Delegation of Financial Powers Rules, 1990, the following shall be added, with immediate effect:

Amendment: The Programme Director, Teachers Training Programme, Directorate of

Staff Development (DSD), Punjab, Lahore, attached with the Education Department, Government of the Punjab.

---------------

No. FD (FR) II-36/79(Vol-ll) GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 1st October, 2004 Subject: REVIVAL OF DIVISIONAL DISPOSAL COMMITTEE TO BE

RE-NAMED AS DISTRICT DISPOSAL COMMITTEE,

Sir, I am directed to refer to the subject as cited above and to state that the District Officer Planning, Bahawalpur has drawn the kind attention of the Chief Secretary, Government of the Punjab, on the issue and intimated that since the inception of present District Government set-up a big junk of unserviceable and condemned machinery is lying, in most of the cases, under open sky, in all the Governments Departments. The machinery is being rusted away on one hand and the likely auctioned price is dwindling day-by-day on the other. If the decision for its disposal is not taken in time, it would lead not only to


deterioration of the present stock of unserviceable/condemned machinery but also to a great financial loss to the Government. The D.O (P) has further suggested to revive the Divisional Disposal Committee to be re-named as District Disposal Committee.

2. Under Part-I of Second Schedule to Delegation of Financial Powers Rules, 1990 the powers to dispose of unserviceable and condemned items by auction stand as under:

Sr.# Name of Power To whom delegated Extent 7. Powers to sell surplus or

unserviceable motor vehicles, T&P, machinery, equipment, spares and stores by auction.

(i) Administrative Department.

(ii) Officers in Category-I

(iii) Officers in .Category-II

(iv) Officers in Category-III.

Full Powers. Full Powers. Up to Rs. 1 lac at a time. Up to Rs. 5,000 at a time

Given the normal powers as above, the Departments are competent and responsible for the disposal of machinery, equipment etc.

3. Under Section 180 of PLGO, 2001, the properties and assets of the defunct local councils have been succeeded by the respective Local Governments. However, the Ordinance is silent on the point of succession of the properties of the Provincial Government. It can be safely inferred that the ownership of the properties and assets of the Provincial Government including machinery, equipment, tools and plants of the offices decentralized to the District Government or TMA have not been transferred to the respective Local Government although those are in the operative management of the respective Local Government and the Provincial Government is bearing the cost of their operations/management in the form of grants-in-aid through P.F.C. award. Accordingly, the Government machinery/tools/plants of the decentralized offices is to be disposed of, on its condemnation, by the designated officers in the respective Provincial Departments in the prescribed manner.

4. However, after reported reluctance on the part of the departments to


exercise these powers for disposal of the redundant machinery and equipment and to ensure the transparency in auction. Finance Department is contemplating to sell surplus or unserviceable vehicles, machinery etc., by auction through District Disposal Committee (DDC). The DCO will be the Convener of the Committee where stores of devolved offices (both/District Governments and TMAs) and Category-I Officer of the office/Department where stores pertain to Provincial set up. The proposed constitution of the D.D.C. and procedure of selling stores by auction by the delegates, as at Para-2 ante, through the D.D.C. is at Annex-A. However, the surplus/condemned machinery etc. as succeeded by the Local Governments under Section 180 ibid, shall be disposed of by the respective Local government, in the prescribed manner, as its own level and proceeds whereof shall be credited to the Local Government Fund.

5. I am further directed to request you to give your comments on the proposal as at Para-4 ante, before the proposal is apprised to the Chief Secretary, Punjab and finally adopted as a policy. In case the requisite comments arc not received within fortnight, it would be presumed that the A.D/District Government/TMA is in agreement on the subject, with the Finance Department.

---------------

THE PROPOSED CONSTITUTION OF DISTRICT DISPOSAL COMMITTEE

1. The DCO of the District Convener Government/Category-I Officer of the concerned Department, as the case may be.

2. Superintending Engineer Irrigation of the Member concerned Zone or his representative not below the rank of BS-18

3. A representative of Agriculture Engineering (do) Department not below the rank of BS-18.

4. The EDO (W&S) or his representative not (do) below the rank of BS-18

5. A representative of the department not be (do) below the rank of BS-18.

6. The Executive District Officer (F&P) Member/Secretary

The function of the District Disposal Committee would be to dispose


of unserviceable and redundant equipment/machinery that is declared unserviceable or surplus in the Province by the Competent authority of the respective department.

2. The Committee would follow the following course of action:

(i) Disposal of surplus machinery/equipment by inviting sealed offers/tenders after due publicity. The District Committee would have special powers of accepting or rejecting an offer.

(ii) The tenderer would be required to deposit earnest money @ 2% of the value of their offers. This could be in the form of “deposit at call” or “Bank Draft” in the name of Convener District Disposal Committee.

(iii) Each Department will furnish list of equipment/machinery with full description, its conditions, location and reserve price (worked out in the light of Para 4.31 of B&R Code) to the Secretary District Committee on month-to-month basis. The lists after scrutiny and consolidation would be cyclostyled for supply to the bidders at Rs. 50/- per page.

(iv) The sale proceeds of tenders and equipment would be credited to Punjab Government Revenue under head:

1000000 NON-TAX RECEIPTS 1300000 MISCELLANEOUS RECEIPTS 391000 OTHER RECEIPTS 1391002 OTHER RECEIPTS - SALES OF STORES AND

MATERIALS

(v) The General terms and conditions for sale would be drafted by each Committee and cleared from the Convenor before calling tenders.

(vi) The cost of Advertisement/Auction, if any, would be borne by the respective Department, whose machinery/tools, plants etc. would be under auction.

(vii) The Convener would submit quarterly progress reports to the respective Administrative Department and Finance Department for monitoring purpose.

(viii) The record of sale proceedings would be retained by the respective Department for audit scrutiny etc.

---------------



Dated Lahore, the 16th October, 2004

NOTIFICATION

No. FD (FR) VI-9/2000. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to delegate the financial powers of an Administrative Department, as prescribed in Part-I of the Second Schedule to the Delegation of Financial Powers Rules, 1990, to the District Coordination Officers of the District Governments in the Punjab. These powers shall be in addition to the existing powers of a Category-I Officer already conferred on the DCOs vide even No., dated 30.7.2001.

2. The Governor of the Punjab has been further pleased to delegate the financial powers pertaining to the departments of Forest, Fisheries and Education, as prescribed in Part-II of the Second Schedule to the Delegation of Financial Powers Rules, 1990, to the officers of the District Governments in the Punjab, in the following manner:

Sr. #

Depart-ment

Powers delegated to Officer in Provincial set up

Powers to be exercised in the District Government set-up

Remarks

1. Forest Deptt.

(i) Chief Conservator of Forest

(ii) Conservator of Forest

(iii) Divisional Forest Officer

(i) D.C.O (ii) EDO

(Agriculture) (iii) District Officer

(Forest)

The powers shall be exercised subject to the fulfillment of the conditions as laid down in the Punjab Forest Department Manuals.

Note: The powers at serial No. 12 under heading “sanction of leases for specific purposes such as Mills, Timber Depots etc.” in the Special powers of the Forest Department shall continue to be exercised by the delegatee in the Provinical set-up.


2. Fisheries Deptt:

(i) Director General Fisheries

(ii) Director Fisheries (iii) Deputy Director

Fisheries (iv) Assistant Director

Fisheries

(i) D.C.O. (ii) E.D.O. (Agriculture)

3. Education Department

(i) Administrative Department/DPI (Schools/Colleges)

(ii) Divisional Director Education

(iii) District Education Officer (Schools)

(i) D.C.O. (ii) E.D.O. (Education) (iii) District Officer (School)

Note: The powers of administrative approval, technical sanction and acceptance of tenders of the above cited offices shall be exercised, in the prescribed manner, by the District Government functionaries in Works & Services Department.

---------------


Dated Lahore, the 10th December, 2004.

NOTIFICATION

No. FD(FR)11-5/82 (P). In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in the Delegation of Financial Powers Rules, 1990, the following amendment shall be made with immediate effect:

Amendment

In Second Schedule, Part-II, Special Powers to certain Departments and Officers - Local Government & Rural Development Department, the following shall be added:

S. # Name of Power To whom Delegated

Extent


1. Technical Sanction (original works/repair works)

Assistant Engineer (BS-17)

Up to Rs. 5.00 lac proved the excess over the amount for which the administrative approval has been accorded does not exceed 10 percent. In case the excess exceeds 10 percent fresh administrative approval will be required.

2. Acceptance of tenders (original works/repair works)

Assistant Engineer (BS-17)

Up to Rs. 5.00lac These powers are subject to the conditions that: (i) The rates quoted and /or

amounts tendered are such that the total cost of a project/work will not exceed the amount for which technical sanction has been accorded by more than 4.5%; and

(ii) Where competitive tenders are invited under the rules, in case the lowest tender from an approved contractor is not accepted, reasons should be recorded and further approval should be obtained from (a) the Chief Engineer (of relevant sector and areas) for tenders up to the value of Rs. 10 lac (b) the Administrative Department, if the value of the tender is more than Rs. 10 lac, but not more than Rs. 20 lac, and (c) the Finance Department if the value of the tender exceeds Rs. 20 lac.

No. Exp (Agri-II)1-88/94-Vety



Dated Lahore, the 4th December, 2004

Subject: OPERATION OF REVOLVING FUND ACCOUNTS BY

PROVINCIAL GOVERNMENT DEPARMENTS.

Operation of Revolving Fund Accounts (RFA) by government departments is a special dispensation, allowed as an exception to Rule 7(1) of the Punjab Treasury Rules, which inter-alia requires that direct appropriation of governmental receipts may not be done to meet departmental expenditures, nor such receipts be kept apart from the Provincial Consolidated Fund or the Public Account of the Province.

2. Notwithstanding, the provision of the aforestated Rule, the government may allow direct appropriation of departmental receipts, in specified cases, in terms of Rules 7(2) ibid. Revolving Fund Accounts are allowed to certain departments under this Rule, thereby making provision for the direct usage of specified receipt(s) which are credited to the Public Account of the Province in a prescribed head of account.

3. The following procedure is accordingly prescribed for the operation of Revolving Fund Accounts allowed, as above:

GENERAL (i) The operation of a Revolving Fund Account by a department

shall be sanctioned by the Finance Department, on case to case basis, in consideration of the specific requirement and circumstances of each request;

(ii) Revolving Fund Accounts shall be operated in the Public Account of the Province, for which a specified Head of Account shall be allotted by the Controller General of Accounts (CGA) on the recommendation of the Finance Department. Such accounts shall be NON-LAPSEABLE;

(iii) Revolving Fund Account shall be allowed to a department (to be operated through a designated functionary/DDO) for a specific services / purpose, which may generally be in the nature of commerical operation, involving purchases of raw matrial and sale of funished product. Such Revovling Fund Account will partake the nature of a WORKING CAPITAL, which is revolved on INPUT-OUTPUT basis, with the intention that it would generate itself and grow through profits.


(iv) The Revolving Fund Account, where so allowed, may be initialized through a budgetary authorization / release in the form of a “seed money”, which may be recurring or a one time support;

(v) The Revolving Funds Accounts shall be operated by the department through the respective District Accounts Officer (DAO) / Treasury Officer, Lahore, as the case may be;

(vi) The operation of RFA at Lahore shall be done by the Treasury Officer, Lahore, without any intervention of the office of the Accountant General (Pb), barring authorization of seed money or subsequent releases made by FD, if any, for credit to the RFA;

(vii) It may be noted that the operation of the Revolving Fund Accounts shall be distinct from that of a Personal Ledger Account (PLA), an Assignment Account (A.A.) and Imprest/Revolving Fund Accounts sanctioned for projects etc. as a donor conditionality.

RECEIPTS

(i) All receipts (excluding those coming through budgetary authorization) accruing to a Revolving Fund Account in the prescribed head of Account, for the given service or purpose shall be made through a challan in duplicate (form STR-4/32-A), duly signed by a nominated functionary of the department (DDO), authorized to operate the Revolving Fund Account. The challan shall contain all prescribed information, and will be presented at the respective branch of the SBP / NBP, falling within the jurisdiction of the district where the Revolving Fund has been allowed to operate, along with the money for credit to the Public Account of the Province in the specific Head of Account (code) allotted for the purpose by the CGA. A PRE-FIX 1 shall be added to the left (beginning) of the code to denote RECEIPTS in the Revolving Fund Account;

(ii) The deposits, as above, may be made by the buyer of the service/goods himself, in the prescribed manner, provided that the receipt challan is duly signed by the designated representative/functionary of the department (DDO), providing such service, before the deposit of money in the bank. A datewise record of such verification shall be maintained by the DDO. However, in case the buyer of the service tenders money (in cash) to the departmental representative (DDO) for the service, the departmental representative shall give a receipt in form STR-3 to the depositor; whereafter the aggregate receipts for the day shall be immediately deposited by him (the DDO)


in the prescribed manner, in the respective branch of SBP / NBP, through a challan, showing full particulars / details of each amount so deposited, in the given head, after pre-fixing 1 at the left (beginning) of the code: The word “Provincial” shall be indicated at the top of the challan on both original and its duplicate.

(iii) All services provided, or products sold by the department shall only be done on the basis of production of the original receipt challan by the buyer of the service before the DDO, duty acknowledged by the bank (NBP / SBP) in the prescribed manner. In case of any doubt, the DDO may confirm the bonafides of such receipts from the concerned bank before providing requisite service

PAYMENTS

(a) Payments against receipts accruing to the Revolving Fund Account shall be drawn by the designated functionary (DDO) operating the Fund by submitting bills on simple receipt form/ contingent bill, in the prescribed manner, to the District Accounts Officer/Treasury Officer, Lahore as the case be, in whose audit jurisdiction the Revolving Fund is allowed to be operated by the FD.

(b) While submitting the contingent bill / simple receipt form, the DDO shall indicate the specific head of account, allocated to the Fund, and for the purpose of withdrawals / payments a PRE-FIX - 2 will be added to the .left (beginning) of the Code, duly mentioned on the body of the bill, to denote payments against the Revolving Fund Account;

ACTION BY DISTRICT ACCOUNTS OFFICER / TREASURY OFFICER, LAHORE

(a) The District Accounts Officer / Treasury Officer, Lahore concerned shall maintain a subsidiary register (Pass Book) in Form PFR-25 as done in case of PLAs, for recording date-wise receipts, and for making payment against the aggregate balance, in credit to the RFA on the given date. No payment shall be made against a claim, if the balance in the RFA is less than the amount of the claim.

(b) All receipts deposited in the RFA shall only be recognized as duly credited, after these are confirmed from the credit-scroll of the respective SBP/NBP received in the office of the DAO/TO, Lahore, along with the original copy of the challan, sent therewith by the bank, duly acknowledged in the prescribed manner. All payments drawn by the DDO,


operating the Revolving Fund Account shall only be authorized by the DAO/TO, Lahore as the case be subject to the availability of balance in the RFA on the given date a payment is drawn.

(c) At the end of each month, after the accounts of that month have been duly compiled, the DAO/TO, Lahore as the case be, in whose jurisdiction the RFA is operated, shall send a statement to the concerned DDO, detailing out particulars of each receipt and payment (date-wise), along with the aggregate balance, ( in words and figures) available at the end of the respective month. Such statement shall be signed by the DAO/TO. with his full dated signatures.

(d) The DDO operating the RFA shall maintain a Pass Book in form PFR-25 as done for Personal Ledger Account, The Pass Book shall contain date-wise details of each receipt and payment, effected during the month, and aggregate balance available in it, at the end thereof. The Pass-Book shall be reconciled with the statement provided by the DAO/TO, as above, and any discrepancies sorted out. The Pass-Book shall then be got verified/authenticated from the TO/DAO, with full dated signatures for the respective month, in token of its correctness.

MAINTENANCE OF ACCOUNTS, (BY DDOs)

(a) The DDO operating the RFA shall be required to observe all codal formalities, as prescribed in the Financial Rules, in the matter of operation of the RFA for credits into and withdrawals from the RFA. This shall inter-alia include maintenance of CASH BOOK, grant of sanctions for the incurrence of expenditure, and observance of purchase procedure, etc.

(b) The DDO shall also maintain a register of stocks for recording materials purchased and sales made, in the manner prescribed for commercial operations.

(c) Any other requirement, specially prescribed by the department for the peculiar operation of the service.

(BY DAO/TO)

1. The respective DAO/Treasury Officer, Lahore shall maintain the accounts of each Revolving Fund Account separately, as done for Personal Ledger Accounts.

2. All receipts accruing to the RFA and payments made their against shall be reflected in the respective subsidiary register / pass book in the prescribed manner, and aggregate transactions


respectively carried to the provincial cash books of receipts and payments for the month.

3. Such complied accounts shall be included in the Cash Account and the List of Payments in the monthly accounts sent to the Accountant General, Punjab in the prescribed manner.

AUDIT

The Statutory Audit of the Revolving Fund Accounts shall be undertaken by the Auditor General of Pakistan, through the Director General Audit Punjab, or the Director General, Commercial Audit, as the case be, depending upon the nature of operation of the RFA.

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No. So. Exp.(LG)1-29/2004 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the July 31, 2004 Subject: PERMISSION TO REPLACE/PURCHASE VEHICLES FOR

THE DISTRICT GOVERNMENTS.

I am directed to refer to the subject noted above and to inform that the competent authority has been pleased to allow purchase/replacement of vehicles for the newly established offices of District Coordination Officers/Executive District Officers, District Officers, Deputy District Officers etc., for effective government functioning.

2. District Governments may replace 25% of old vehicles out of their total sanctioned strength, through, purchase of standardized vehicles with reference to specifications laid down by Inter Departmental Standardization Committee/S&GAD as per S&GAD’s Notification No. SO (Proc.) (S&GAD) 8-2/2002 dated 10-09-2003.

3. District Governments are also allowed to purchase new vehicles to the extent of 0.5% out of 3% contingencies earmarked for the Development Schemes, in District ADP for the concerned Sponsoring Agency / E.D.O Office as per valid requirement on case to case basis after sanction by Finance Department, Government of the Punjab.

4. The District Governments are required to indicate their current status


of vehicle pool to the Finance Department on the enclosed performa for information and record. Moreover, the purchase/replacement of vehicles by District Governments in Punjab would be subject to the approval of Finance Department on case to case basis, and after fulfillment of necessary statutory and codal formalities as per Delegation of Financial Power Rules, 1990.

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No. FD.SR.I/3-10/2004 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 10th November, 2004 Subject: FINANCIAL ASSISTANCE TO THE FAMILY OF A CIVIL

SERVANT WHO DIES WHILE IN SERVICE.

I am directed to refer to the above mentioned subject and to say that in order to provide financial relief to the families of civil servants who expire during service, Administrative Departments, in absence of any criteria, recommend ex-gratia grants in certain cases, leaving an impression of disparity. Moreover, only a few families have been allowed financial assistance. Need has therefore, been felt to provide an umbrella cover to all bereaved families to meet the financial problems that crop up after the death of the only earning hands. Accordingly to bring ad-hoc dispensation within the framework of a prescribed policy, the competent authority has been pleased to approve with immediate effect a criteria for grant of financial assistance to the families of civil servants who expire during service as under:

BS Amount 1 – 4 Rs. 200,000 5 – 10 Rs. 300.000 11 – 15 Re. 400,000 16 – 17 Rg. 500.000 18 – 19 Rs. 800,000 20 & above Rs. 1,000,000

This will be in addition to other benefits admissible to the family of a deceased civil servant under rules.


3. Administrative Departments/Appointing Authorities will issue sanction in individual cases. All the cases initiated by or under process in the Administrative Departments may be disposed accordingly.

4. Expenditure involved will be met out of the existing budget grant of the Administrative Departments / District Governments. However, in case additional funds are required the case will be referred to Finance Department for provision of funds with justifications.

---------------


Dated Lahore, the 14th January, 2005.

NOTIFICATION

No. FD. (FR) 11-5/82. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of pakistan, 1973, the Governor of the Punjab is pleased to direct that in Part-I OFFICER IN CATEGORY-I of the First Schedule to the Delegation of Financial Powers Rules. 1990, the following shall be added, with immediate effect:

Amendment:

67. The Programme Director, Programme Support Unit (PSU). Devolved Social Services Programme (DSSP), attached with the Government of Punjab, Health Department.

----------------

No. Exp.(LG)1-41/2002 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore the 27th January, 2005. Subject: PROVISION OF FUNDS TO DISTRICT GOVERNMENT FOR

AD-HOC/SPECIAL RELIEF TO GOVERNMENT EMPLOYEES.

I am directed to refer to the subject noted above and to say that


various Local Governments are making requests for the recoupment of funds against (periodic) increase in the salaries allowed by them to their employees as Ad-hoc and Special Reliefs granted during the financial years 2003-2004 and 2004-2005. The District Governments are also submitting claims for revised allocations under the PFC (Interim Award).

2. In this regard, I am to clarify the position, as below, after approval by the Chief Minister: (i) The provision of additional funds to Local Governments on

account of salaries increases, as above, is linked to an equivalent resource transfer by the Federal Government to the province. Since no monies have been provided on this account, the Provincial Government is not in a position to meet this liability on behalf of Local Governments. This stance being consistent with Section 120 M of the PLGO, 2001;

(ii) Any mathematical distortions in the PFC Interim Award, if brought forth, and found justified, would be suitably rationalized. Besides, provision of additional moneys to Local Governments are made at the judicious discretion of the Chief Minister. The Local Governments are, therefore, advised to make out their cases with adequate statistical reasoning only.

----------------

No. FD(M-I) 1-1/2001 GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 29th January, 2005 Subject: SETTLEMENT OF DRAFT PARAS.

Sir, I am to refer to the Secretary Provincial Assembly of the Punjab’s letter No. PAP/PAC-II/2003/04/311, dated 13.1.2005, on the subject as cited above and to state that the Public Accounts Committee-II, in its meetings, has observed that in certain cases the Administrative Departments, instead of giving detailed explanation to the Draft Paras, only mention that the draft paras had been discussed in the DAC/SDAC meeting and was settled. The PAC-II has further directed that the Draft Paras which have been printed in the Audit Report may not be settled by the DAC/SDAC.


2. I am to invite your kind attention to Article 171 of the Constitution whereby the Audit Report of the Auditor General of Pakistan is to be placed before the Provincial Assembly. It is the prerogative of the Public Accounts Committee of the Provincial Assembly to consider and accept/settle the appropriation Accounts and Audit Reports thereof, referred to it by the Provincial Assembly under Rule 177 of Procedure of the Provincial Assembly of the Punjab, 1997. 3. I am, therefore, to request you that the Draft Paras included in the Audit Reports, should not be discussed and settled by the DAC/SDAC. However, the forums of DAC and SDAC would be utilized for settlement of the audit observations and advance paras before they are printed in the Audit Reports. The aforesaid instructions are in line with earlier instructions contained in F.D’s letter No. FD (M-I)1-1/2001, dated 12.1.2001.

4. The aforesaid instructions may please be complied with in letter and spirit.

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Dated Lahore, the 10th February, 2005

NOTIFICATION

No. FD (FR) 11-5/82. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in the Delegation of Financial Powers Rules, 1990, the following amendment shall be made, with immediate effect:

Amendment: In Second Schedule, Part-II, Special Powers to Certain Departments

and Officers- Public Health Engineering Department, at Sr. No. l (Technical Sanction) against (iv) under Column 3, ‘Executive Engineer’, the existing entry in Column 4 under heading “extent” the following shall be substituted:

“Works up to Rs.5.00 million.”


Further against Sr. No. 2 (Acceptance of Tenders) against (iv) under Column 3 ‘Executive Engineer’, the existing entry in Column 4 under heading “extent”, the following shall be substituted:

“Works up to Rs.5.00 million”

Note: The existing conditions applicable to accord Technical Sanctions and acceptance of Tenders shall remain the same.

---------------


FINANCE DEPARTMENT

Dated Lahore, the 11th February, 2005 Subject: PRESIDENTS RELIEF FUND FOR TSUNAMI VICTIMS –

CONTRIBUTION OF ONE DAYS BASIC SALARY BY ALL OFFICERS IN BS-17 TO BS-22.

Sir, I am directed to refer to the subject noted above, and to state that in pursuance of the policy directive received from the Federal Government, it has been decided that all officers of the Provincial Government, in BS-17 to BS-22 including those serving in the local governments, as well as autonomous and semi-autonomous bodies, shall contribute ONE DAY of their pay towards the Presidents Relief Fund for Tsunami Victims. This decision shall also apply to officers holding posts on contract in BS-17 and above equivalent, as well as those drawing lump-sum pay packages, including “M” salaries and MP salaries.

2. I am to state, that the deductions on account of said contribution shall be made against the salary for the month of February 2005, and shall be credited to the Federal Government in the following Head of Accounts: G 12-Special Deposit Fund G 127-Other Funds G 12765-Presidents Relief Fund for Tsunami Victims

I am to further state, that the amount of contribution shall be excluded from the emoluments of the concerned officers for the purpose of calculation of Income Tax, and deduction of recovery of the house rent charges.


After making deductions from salaries disbursed from Account No. IV of District Governments, and the Tehsil/Union Local Funds, the procedure as prescribed for crediting Income Tax deductions shall be followed mutatis-matandis.

4. I am to request an early action and strict compliance please. ---------------



NOTIFICATION

No. FD (FR) 11-36/79. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to make the following amendment in Part-I under Second Schedule to the Delegation of Financial Powers Rules, 1990, with immediate effect:

Amendment:

Sr. #

Nature of Power To whom delegated Extent

7. Powers to sell surplus or unserviceable motor vehicles, T&P, machinery, equipment, spares and stores by auction. (a) For Provincial

Government Departments.

(i) Administrative Department

(ii) Officers in Category-I in D.D.S.C.

(iii) Officers in Category-I

(iv) Officers in Category-II

(v) Officers in Category-III

Full powers Full powers Up to Rs. 1.5 lac at a time. Up to Rs. 1 lac at a time Up to Rs. 5,000 at a time.


(b) For District Governments through District Development Committees.

(i) D.C.O. in D.D.C.

(ii) DCO/Officers in Category-I

(iii) Officers in Category-II

(iv) Officers in Category-III

Full Powers. Up to Rs. 1.5 lac at a time. Up to Rs. 1 lac at a time. Up to Rs. 5,000 at a time.

Note I: The amounts indicated above refer to un-depreciated book value.

Note II: The constitution of the District Disposal Committee and procedure for auction/disposal of motor vehicles, T&P, equipment, spares by auction is being notified .separately.

---------------



NOTIFICATION

No. FD (FR) 11-36/79. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab has been pleased to approve the constitution of the District Disposal Committee and the procedure for auction/disposal of unserviceable, surplus and condemned machinery/equipment/stores in the manner as prescribed hereunder:

1. The DCO of the District Government/Category-I Officer of the concerned Department, as the case may be.

Convener

2. Superintending Engineer Irrigation of the concerned Zone or his representative not below the rank of a BS-18 Officer.

Member

3. A representative of Agriculture Engineering Department not below the rank of a BS-18 Officer.

Member


4. The EDO (W&S) or his representative not below the rank of a BS-18 Officer.

Member

5. A representative of the department not below the rank of a BS-18 Officer.

Member

6. The Executive District Officer (F&P) Member/Secretary

2. The function of the District Disposal Committee would be to dispose of unserviceable and redundant equipment/machinery that have been declared unserviceable or surplus in the department by the competent authority of the respective department.

3. The Committee would adopt the following course of action:

(i) To dispose of surplus machinery/equipment by inviting sealed offers/tenders after due publicity. The District Committee would have special powers to accept or reject an offer.

(ii) The tenderers would be required to deposit earnest money @ 2% of the value of their offers. This would be in the form of “deposit at call” or “Bank Draft” in the name of Convener District Disposal Committee.

(iii) Each department will furnish list of equipment/machinery with full description, its conditions, location and reserve price (worked out in the light of Para 4.31 of B&R Code) to the Secretary, District Disposal Committee on month-to-month basis. The lists, after scrutiny, and consolidation would be copied for supply to the bidders at Rs. 50/- per page.

(iv) The sale proceeds offenders and equipment would be credited to Punjab Government Account No. I under Revenue head:

1000000 NON-TAX RECEIPTS 1300000 MISCELLANEOUS RECEIPTS 391000 OTHER RECEIPTS 1391002 OTHER RECEIPTS - SALES OF

STORES AND MATERIALS (v) The general terms and conditions for sale would be drafted by

each Committee and got cleared from the Convener before calling tenders.

(vi) The cost of advertisement/auction, if any, would be borne by

the respective department, the machinery/tools, plants etc. whereof are to be auctioned.

(vii) The Convener would submit quarterly progress reports to the

respective Administrative Department and Finance Department for the purpose of monitoring.


(viii) The record of sale proceeds would be retained by the respective Department for audit scrutiny etc.

---------------



NOTIFICATION

No. FD (FR) 11-5/82. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in Part-I OFFICERS IN CATEGORY-I of the First Schedule to the Delegation of Financial Powers Rules, 1990, the following shall be added, with immediate effect:

Amendment:

68. The Head, Project Management Office/Project Director of the Project of Taunsa Barrage, Rehabilitation and Modernization attached with the Government of the Punjab, Irrigation and Power Department.

----------------


Dated Lahore, the 6th April, 2005.

NOTIFICATION

No. FD (FR) 11-5/82. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in Part-II OFFICERS IN CATEGORY-II of the First Schedule to the Delegation of Financial Powers Rules, 1990, the following shall be added, with immediate effect:

Amendment:

29. The Director, Project Management Office of the Project of Taunsa Barrage, Rehabilitation and Modernization, attached with the Government of the Punjab, Irrigation and Power Department.

----------------


GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 12th April, 2005 NOTIFICATION

No. FD (FR) 11-5/82 (P). The Competent Authority is pleased to authorize the Superintending Engineer, D.G. Khan Rural Development Project, Dera Ghazi Khan, the powers of Technical Sanction provided he possesses requisite qualification and experience. These powers will be equivalent to the powers already granted to the Executive District Officer (Works & Services), District Government in the Punjab and exercised, during the project period only, for Technical Sanction to the Sub-Projects pertaining to the Community Development component and Tubewells.

---------------


FINANCE DEPARTMENT

Dated Lahore, the 13th April, 2005 Subject: ACCOUNTING PROCEDURE FOR PUNJAB GOVERNMENT

SERVANTS’ HOUSING SUBSCRIPTION FUND.

Sir I am directed to refer to the subject noted above and to enclose the procedure for effecting deductions and accounting of subscriptions from eligible members under the Punjab Government Servant’s Housing Foundation Act, 2004. This procedure has been formulated in consultation with the Accountant General, Punjab and vetted by the Controller General of Accounts.

2. In pursuance of Sections 12 & 15 of the Punjab Government Servants’ Housing Foundation Act, 2004, and pending formulation of rules and regulations provided under Sections 21 & 22 ibid, the following procedure is prescribed in the matter of effecting monthly deductions from the eligible members of the Foundation for credit to the Subscription Fund, its custody and


maintenance of accounts.

1. ELIGIBILITY TO CONTRIBUTE TO THE SUBSCRIPTION FUND

All Government Servants, defined in Section 2(f) ibid, who subject to eligibility, opt to become the members of the Foundation, in the prescribed manner, shall be required to compulsorily subscribe to the Subscription Fund on monthly basis as per the rates of monthly subscription applicable to the different categories, detailed hereunder, from time to time in accordance with the relevant scale/group. The rate of subscription during a financial year shall be uniform.

(i) Group-I BS 1 to 4 (ii) Group-II BS 5 to 7 (iii) Group-III BS 8 to 12 (iv) Group-IV BS13 to 16 (v) Group-V BS17&18 (vi) Group-VI BS 19 to 22

2. PROVISION OF PARTICULARS/INFORMATION

The Punjab Government Servants Housing Foundation shall notify the Accountant General Punjab/the respective District Accounts Officer, the Tehsil/Town Accounts Officer or the Union Accountant, as the case may be. about the particulars of each member of the Foundation required to contribute to the Fund, while serving with the audit jurisdiction of these functionaries respectively. Such members shall also be allotted a distinct computerized account number for the purpose of maintaining the account of each subscriber.

The information/particulars as aforementioned, in the prescribed proforma (Annex-I) shall be signed by a notified functionary of the Foundation, whose specimen signatures shall be provided to the AG (Punjab)/DAOs/TAOs/ UAs and each DDO of the non-gazetted members of the Foundation.

3. AT SOURCE MONTHLY DEDUCTIONS

The Accountant General (Punjab)/respective DAO/TAO/UA shall be responsible for making at source deduction, at the prescribed rate, from the monthly pay of each eligible member government servant falling in the audit/administrative jurisdictions of these offices respectively in the following manner:

(a) Deductions at Lahore

The Accountant General (Punjab) shall effect monthly deductions from the salary of each government servant (gazetted/non-gazetted) contributing to the Fund, at the prescribed rates for each category, through the computerized


payroll, following the receipt of necessary computer change in his office, in the prescribed manner. Such deductions shall be made from all member government servants serving with the affairs of the province as well as the City District Government, Lahore and drawing salaries from Account Nos. 1 and IV respectively. At the end of the month, the aggregate deductions made shall be consolidated by the AG Punjab / DAO under the following heads of the Public Account:

Major Head 3000000 Deposit & Reserves (B- Not bearing interest)

Minor Head 3600000 Other Deposits 3601044 Contribution to Punjab Government

Servants' Housing Foundation from member civil servants of the Punjab Government serving the Provincial Government.

3601045 Contribution to Punjab Government Servants' Housing Foundation from member civil servants of the Punjab Government serving the District Governments.

3601046 Contribution to Punjab Government Servants’ Housing Foundation from member civil servants of the Punjab Government serving the TMAs.

(New) Detailed Head

3601047 Contribution to Punjab Government Servants’ Housing Foundation from member civil servants of the Punjab Government serving the Union Administrations.

However, such gazetted members who draw salary on pay bills shall be required to attach a schedule with the monthly pay-bill in the prescribed form (Annex-II). The DDOs in such cases shall append the schedule with the manual pay bills of the non-gazetted establishment. Deductions made from all such members shall be aggregated by the AG/DAOs in the prescribed manner.

The deductions of CDGL member civil servants (aggregated amount) shall be credited to the Provincial Public Account (Account No. 1) by issuing advice to the State Bank of Pakistan, Lahore by the Accountant General Punjab, per contra debit to the CDGL Fund (Account No. lV).


(b) Deductions at District Headquarters other than Lahore

(i) The District Accounts Officers, who operate computerized payrolls, shall also make deductions on account of monthly contributions to the Subscription Fund from each subscriber through the payrolls in Account No. I & IV, as the case may be, for employees of the provincial or the district government. The procedure as applicable in the AG (Punjab), as against Para-3(a) above, shall mutatis-mutandis apply for such deductions in districts.

(ii) The District Accounts Officers who authorize salaries on pay bills shall effect deductions from each member government servant from the respective monthly pay bills (gazetted/non-gazetted), wherefore, each gazetted government servant/DDO shall be required to attach a schedule (Annex-II) with such bills containing the following particulars of each employee:

(a) Name/Parentage

(b) Designation

(c) Individual Relationship Number on which all his/her deductions will be accounted for.

(d) Rate of monthly subscription as admissible to each employee.

The deductions so effected and credited to the Detailed Head 3601045 shall be aggregated and transfer credited to the head of account mentioned in para 3(a) ante, i.e., Detailed Head 3601044, by issuing an advice by the District Accounts Officers to the State Bank of Pakistan/National Bank of Pakistan, as the case may be, per contra debit to the respective District Fund (Account No. lV).

(c) Deductions from Member Government Servants working in Tehsil/Town Municipal Administrations/Union Administrations.

Tehsil/Town Accounts Officer/Union Accountant shall ensure at source deductions of the Housing Subscription Fund from the salaries in respect of the civil servants of the Punjab government serving the TMAs/UAs, who opted to become members and details of which shall be provided to them by the Foundation.

The TAO (Finance) and the Union Accountant shall deposit


the amount of such deductions in government treasury through Challan Form 32-A, indicating the respective Detailed Head. After completing the above steps, they shall be required to notify the AG (Punjab)/Treasury Office, Lahore in case of Town Municipal Administrations/Union Administration in Lahore and the respective DAO in case of other TMAs/UAs (other than Lahore) of all deductions deposited as above, for a particular month, along with a copy of the receipted challan whereunder the aggregate deduction were so deposited in the SBP/NBP. The Challan shall be supported by a detailed statement showing the name of each employee, along with his designation, individual relationship number and rate of monthly deduction, beside indicating the month to which these deductions relate. This information should reach the concerned DAO/AG(Punjab)/TO Lahore not later than the tenth of the following month to which such deductions relate.

(d) Deductions from Member Government Servants on Deputation/ Foreign Service

Member Government Servants of the Provincial Government serving on deputation and drawing their salaries from AG Punjab/DAO shall be subject to at source deductions in the manner stated in Para-3(a) ante.

The member civil servants who are serving outside the Province and drawing their salaries from source other than General Revenue shall be responsible to deposit their contribution in cash at the Government Treasury through Challan Form 32-A, detailing therein the respective Detailed Head and the month of contribution, by the 5th of the following month.

4. MAINTENANCE OF ACCOUNTS

(i) The Accountant General Punjab in case of Lahore, and the respective District Accounts Officer in case of other districts, shall be responsible for maintenance of accounts of monthly deductions made from member government servants serving at Lahore and other districts in the respective formations discussed in paras 3(a) to 3(d) above.

(ii) The Accounts shall be maintained in the same manner mutatis-mutandis as done for GP Fund deductions from civil servants.

(iii) For this purpose, a separate section/cell will be created in the office of the AG Punjab/each DAO which, with the approval of the Controller General of Accounts, shall be manned by officer/official (data-entry operator) deputed by the PGSHF. This dedicated officer shall be responsible for:


(a) Collecting aggregate figure of monthly deductions made towards the Subscription Fund from the Accounts Section of the AG Punjab/DAO respectively.

(b) Collecting details of monthly deduction in case of each subscriber. Such details shall be obtained from the pay rolls/computer slips/ schedules of such deductions.

(c) The information at (a) & (b) above shall be reconciled with each other.

(d) All such details shall be booked in a Broad Sheet department-wise.

(e) Collections made through local governments (TMAs & UAs) shall also be aggregated and accounted for in the same manner; as done for deduction made for Government servants serving in districts/district governments.

(iv) The Housing Subscription Fund Accounting System shall contain, in respect of all Foundation members, the following information:

(i) national identity number, (ii) name & parentage of members, (iii) pay scale, (iv) designation, (v) date of joining government service, (vi) date of birth, (vii) department, (viii) district of posting, and (ix) domicile.

(v) The Housing Fund Accounting System shall contain, in respect of subscription payments, the following information:

(i) the month-wise subscription payments, (ii) date of posting of individual monthly subscriptions, and (iii) total subscription payment of each member.

5. RECONCILIATION OF DEDUCTIONS & THEIR REPORTING TO AG PUNJAB BY THE DAO

In their monthly Cash Account sent to the AG, the DAOs shall include the aggregate amount credited to Detailed Heads 3601044, 3601045, 3601046 and 3601047 for inclusion in Monthly Civil Accounts.

6. MANNER OF REPORTING RECEIPTS TO THE FOUNDATION BY THE ACCOUNTANT GENERAL, PUNJAB


The deduction of subscription of the Housing Subscription Fund at the Treasury/DAO/AG level would be consolidated by the A.G. Punjab in its Monthly Civil Accounts and shall be reported to the Foundation by way of an extract called Housing Subscription Fund Receipt by not later than every 25th of the succeeding month. This extract shall indicate lump-sum deductions, DAO Treasury-wise, as well as the amount deducted by the Accountant General, Punjab at its own end.

7. RECOGNITION OF SUBSCRIPTION PAYMENTS

The subscription of members shall be recognized as receipts after the money has been deposited in the bank account by the Foundation subsequent to its drawal from the AG.

When a subscription from a member is by way of a Treasury Challan, the recognition shall occur after its inclusion in the Cash Account of the AG/DAO.

8. REMITTANCE OF DEDUCTION/WITHDRAWAL

Withdrawal of such amount by the Foundation shall be subject to presentation of a bill along with sanction, accorded by the competent authority. Sanction for drawal on bill will be signed by MD or GM (Finance) of the Foundation, as specified by the Govt. of Punjab through a Notification in the prescribed manner.

9. MONITORING & REPORTING PROCEDURE

There shall be located in each district (depending upon the number of members), a Data Entry Operator who would, on a monthly basis, generate an independent set of record relating to Housing Subscription Fund, as well as other information that would assist in updating members individual record.

Such record and information shall be compiled from the schedules and other connected records available with the DAO/Treasury/AG and shall be reported at the end of each month in the prescribed form and manner to the Foundation to enable its central compilation and subsequent reconciliation with the AG Punjab at the beginning of the succeeding month.

10. INTERNAL AUDIT.

Teams of PGSHF will carry out internal audit and random physical verification of records at the district level periodically.

11. RECONCILIATION OF ACCOUNTS

By the 25th of every month, the previous month’s consolidated figure of receipts, as reported by the Accountant General, Punjab (refer para 6 above), shall be reconciled with the accounts being


centrally maintained by the Foundation.

12. CHANGE IN SCALE-GROUP OF MEMBERS

As soon as a member moves from one scale-group to another, the deduction applicable to such higher category shall be made by the Accountant General Punjab/DAO/TMA as the case may be.

The AG/DAO shall intimate such a change in member’s scale-group to the Housing Fund section, located in the Foundation’s Head Office at Lahore, on a prescribed proforma (Annex-III).

The AG/DAO shall ensure that the Pay Slip issued to a gazetted employee upon change in his/her scale-group indicates change in the rate of Housing Subscription Fund deduction, if any, according to current monthly Housing Fund subscription rates. The delegated officer in the Housing Fund section shall post the changes in scale-group of members in the Housing Fund Accounting System, upon receipt from the competent authority.

13. TRANSFER/DEPUTATION OF MEMBERS TO OTHER DISTRICTS/ENTITIES

In case of transfer of a member from one department to another, within or to a different district, full monthly subscription shall be deducted from the pay bill by the Accounts Officer of the department where he has been transferred.

In case of promotion of a member from one scale-group to a higher scale-group, full monthly subscription shall be deducted according to that higher scale-group.

14. SUBSCRIPTION PAYMENTS DURING LEAVE

Full monthly subscription from a member while on earned leave with leave salary shall be deducted.

Subscription from a member on extraordinary leave shall not be compulsory. However, a member on extraordinary leave may choose to contribute towards his/her Housing Subscription Fund, in which case the contribution shall be by way of demand draft to the Foundation.

15. EXCEPTION HANDLING

In case of an error in respect of member in the Housing Fund Deduction Schedule, the Foundation may keep the money in a separate head known as the Exception Head. Such money would be transacted to the account of the individual after further verification.

---------------


Annex-I Specimen of Leger to be maintained by the Data-entry Operator for Each individual member of PGGSHF Name of the Officer _______________ NIC No. ____________________ PHSHF Membership No. ________ Father’s Name____________________ Date of Birth_________________ PGSHF Relationship No. ________ Designation ______________________ Date of Appointment __________ BPS ________________________ Personnel No. ___________________ Date of Superannuation _______ Category (as per foundation scale)_

Month July August Sep-tember

Oct-ober

Nov-ember

Dec-ember

Janu-ary

Feb-ruary

March April May June Total amount Rs.

1 2 3 4 5 6 7 8 9 10 11 12 Amount Rs.

Opening Balance _________________ As on 30th June ______________ Rs. _________________________ Receipt during year __________ Rs. _________________________ Total ______________________ Rs. _________________________ Space for recording events of service (i.e. Cancellation of Membership by the PGSHF, Change in Category, as per PGSHF’s scale, Leave, Suspension etc.) _______________________________________________________________________________________________________ _______________________________________________________________________________________________________


Annex-II Schedule for PGSHF Subscription deducted at source from the salaries of the members (for use by DDO and Gazetted Officer) Govt. of Punjab/District/City District Govt. __________________________ (please score-out which is inapplicable) Office of the _________________________________________________________________________________ DDO Code No. ________________________________ Schedule for the month of _______________________

Name Father’s Name

Desig-nation

NIC No.

Personal No. (in case of compute-rized pay roll

PGSHF Member-ship No.

PGSHF Relation-ship No.

BPS Category for Foun-dation scale

Rate of sub-scription

Amount Remarks (any charge of DDO/ Category etc. to be noted with authority)

1 2 3 4 5 6 7 8 9 10 11 12

Annex-III

OFFICE OF THE ACCOUNTANT GENERAL (PUNJAB)/DISTRICT ACCOUNTS OFFICE ____________________


Proforma for Reporting Change in the Category of PGSHF Member Civil Servant of the Punjab Government

S. No.

Name

Desig-nation

DDO Code No.

Personal No. (where applicable

PGSHF Member-ship No.

PGSHF Relation-ship No.

Old Cate-gory

New Cate-gory (changed)

Date of effect of change in cate-gory (1st of the month)

Amount of dedu-ction cate-gory (change)

No. & Date of auth-ority of the Deptt: chang-ing the Cate-gory

Remarks

1 2 3 4 5 6 7 8 9 10 11 12 13

No. A.G. Punjab/DAO Dated_______/2005 Name __________________ AAG/AO _______________ DAO __________________ To Mr. _____________ , PGSHF 14-A, Upper Mall, Lahore.


No. FD (FR) 11-2/89.



Subject: REVISION OF DELEGATION OF FINANCIAL POWERS

RULES, 1990.

Sir, I am to state that the existing Delegation of Financial Powers Rules were enforced w.e.f. 27.3.1990. With the time, the extent of powers delegated under various heads of expenditure has become incompatible. In order to update the powers to cater adequately to the present-day requirements, the Finance Department has drafted the revised financial powers under the Part-1 - Powers Common to All Departments of the Second Schedule to the Rules ibid.

2. While revising the financial powers, following factors have been kept in view:

(i) The existing powders to sanction the expenditure are inadequate;

(ii) Most of the audit paras pertain to splitting of indent and splitting of sanctions thereof, which are prohibited in terms of Rule 15.2 (b) of PFR Vol-I;

(iii) Approval of the rate and sanction of expenditure are two separate incidences. However, in rate or running contract, approved under Purchase Manual or under Rule 15.2 (a) & (d) read with Annex-D of P.F.R Vol-I, the sanction of expenditure becomes immaterial and the DDOs were asked to incur the expenditure subject to availability of their respective budget vide letter No. even, dated 11-10-2000. In spite of the said clarification, the DDOs as well as Audit usually consider approval of rates in rate contract/running contract and sanction of expenditure thereof, as two different issues. Resultantly the DDOs split the sanctions while making purchases under rate contract/running contract and invite audit observation on splitting of sanction although the indent was not split;

(iv) The general powers to incur the expenditure has been detailed at Sr. No. 3 (a) under Part-I of the Second Schedule to the Rules. The powers to sanction of expenditure on local purchase has been detailed from Sr. No. 3 (b) (i) to 3 (b)


(xxvii). In most of the cases confusion prevails that the powers at Sr. No. 3 (b) are independent and items are separate from the items of expenditure at Sr. No. 3 (a).

3. Keeping in view the factors as outlined above, the proposed powers carry the changes in Part-I “Powers Common To All Departments” under Second Schedule, as follows:-

(a) The powers to sanction the expenditure has been enhanced to make those compatible to the present day requirements. The existing powers and proposed powers have been given in juxta position.

(b) No limit on the sanction of expenditure have been fixed under Serial No. 3 (a) while making purchases on rate contract/running contract through the Purchase Manual subject to availability of budget under the specific object of classification. The sanctions so accorded would be operative only where the budgetary allocations are available in terms of rule 17.2 of the PFR Vol-I;

(c) The local purchase powers have been enhanced. Those powers would be available for whole of the financial year. An amendment in Rule 15.2 (b) (Annex-A) prescribing “at one time without splitting indent” has been proposed. The amendment proposes that if the indent is split up, the expenditure would not exceed the prescribed limit of local purchase during one financial year. The proposed amendment in Annexure-D of rule 15.2 is at Annex-B;

(d) The limit of small order has been enhanced from Rs. 2500/- to Rs. 5000/-(Refer Annex-B);

(e) Since the Stationery Department is not functioning, the condition to seek NOC from the Stationery Department for procurement of stationery has been omitted;

(f) The District Governments are competent to re-appropriate the allocations under Section 112 read with Section 193 (A) of PLGO, 2001 (g). Since the Rules would be applicable to the District Governments, they may re-appropriate the allocations under Section 112 of PLGO, 2001;

(g) The natures of powers have been proposed in conformity with the New Accounting Module (NAM) going to be adopted by the Provincial Government and District Government.

4. In order to formulate a comprehensible and compatible set of financial powers, I am directed to request the Administrative Departments to give


comments/views, on the powers proposed in Part-I of the second Schedule. I am further directed to request you to propose enhanced special powers of the department under Part-II of the Second Schedule ibid, if considered necessary.

5. It would be highly appreciated if comments on Part-I and proposals for Part-II of the Second Schedule to Delegation of Financial Powers Rules are sent to the undersigned within fortnight.

---------------


SCHEDULE

Name of the Department

Functional Unit Name of the Post Appointing Authority Minimum Qualification For appointment by

Method of Recruitment

Age for initial Recruitment

Exam. Training & other conditions required.

1 2 3 4 5 6 7 8 9 10 Health Department

1. Directorate of the Director General Health Services, Punjab. 2. Directorate of the Director General Nursing, Punjab. 3. The Medical Colleges in the Punjab. 4. The Teaching institutions in the Punjab. 5. The Special Institutions in the Punjab. 6. The Children’s Hospitals/Institutes of Child Health in the Punjab. 7. The Post Graduate Medical Institute, Lahore. 8. The Institute of Public Health, Lahore. 9. The Post Graduate Nursing Colleges in the Punjab. 10. College of Paramedics, Faisalabad. 11. Directorate of Blood Transfusion Services Punjab, Lahore 12. The Chief chemical Examiner’s Office. 13. Directorate of Drug Testing Laboratories,

1. Entamological Assistant (BS-11).

Additional Director Medical (Administration of Health Directorate Punjab/ Executive District Officers (Health) of District concerned/ Dean Institute of Public Health/ Medical Superintendents of Teaching Hospital/ Children Hospital concerned & Heads of the Special Institutes concerned.

B.Sc. with Zoology or Entomology as one of the subject or an equivalent qualification from a recognized University.

-- By initial recruitment

21 29 Higher technical qualification holder will be preferred.







Punjab. 14. Office of the Executive District Officers Health concerned in the Punjab. 15. govt. Medical equipment workshops in the Punjab. 16. The de’Montmorency Institute of Dental Sciences, Lahore 17. Office of the Surgeon Medicolegal Punjab, Lahore.

- do - - do - 2. Chief Radiographer (S-16)

Medical Superintendent of the Teaching Hospital/Children Hospital concerned/Executive District Officers (Health) of the District concerned/Heads of the Special Institutions concerned.

B.Sc. Imaging Science from recognized College/Institute OR Diploma in X-Ray Technician course from Punjab Medical Faculty Lahore or from any other recognized Institute with at least five years experience in the relevant field.



- do - - do - 3. Radiography Technician/ Angiography technician/ C.T. Scan Technician/ X-Ray Technician (BS-9)

Medical Superintendents of the Teaching Hospitals/ Children Hospital concerned/ Heads of the Special Institutions concerned & Executive Districts Officer (Health) of the Districts concerned.

(i) F.Sc. Pre-Medical from a recognized Board and; (ii) Two years Diploma in X-Ray Technician Course from Punjab Medical Faculty Lahore or from any other recognized Institute with two years experience in the relevant field.



- do - - do - 4. Radiogra-phy Operator/ Angiography Operator/ C.T.

Medical Superintendents of the Teaching Hospitals/ Children Hospital concerned/ Heads of the

(i) Matric with science from a recognized Board and;


18 25 Higher technical qualification holder will







Scan Operator/ Radium Custodian (BS-8)

Special Institutions concerned & Executive Districts Officer (Health) of the Districts concerned.

(ii) One year Diploma/ Certificate in Radiographer Course from Punjab Medical Faculty Lahore or from any other recognized Institute and; (iii) Two years experience in the relevant field.

be preferred.

- do - - do - 5. Technical Assistant Radiography/ X-Ray Assistant/ X-Ray Laboratory Assistant/ X-Ray Operator/ Radiographer. (BS-6)

Executive District Officer (Health) of the District concerned/ Medical Superintendent of the Teaching Hospitals/ Children Hospital concerned/ Medical Superintendent Dental Hospital Lahore & Heads of the Special Institutions concerned.

(i) Matric with science from a recognized Board and; (ii) Diploma/ Certificate in Radiographer/ X-Ray Technician Course from Punjab Medical Faculty Lahore or from any other recognized Institute



- do - - do - 6. Radiography Assistant/ Dark Room Assistant (BS-5)


(i) Matric with science from a recognized Board and; (ii) One year Diploma/ Certificate in Radiographer Course from Punjab Medical Faculty Lahore or from any other recognized Institute.



- do - - do - 7. X-Ray Attendant/ Dark Room Attendant (BS-2)

Executive District Officer (Health) of the District concerned/ Medical Superintendent of the Teaching Hospitals/ Children Hospital concerned/ Medical Superintendent Dental Hospital Lahore & Heads of the Special Institutions concerned.

Matric with science from a recognized Board.



- do - - do - 8. Assistant Physiotherapist

Medical Superintendents of the Teaching Hospitals/

B.Sc. in Physiotherapy or an


21 28 Higher technical







(BS-16) Children Hospital concerned/ Heads of the Special Institutions concerned & Executive Districts Officer (Health) of the Districts concerned.

equivalent qualification from a recognized College/ Institute.

qualification holder will be preferred.

- do - - do - 9. Occupational Therapist (M/F)/Assistant Manager Physio/ occupational Therapist cum Assistant Physiotherapist/ Physiotherapy Supervisor/ Physiotherapy Technical supervisor (BS14 & 15)


(i) B.Sc. from a recognized University, and; (ii) Two years Diploma in occupational therapy/ Physiotherapy Technician Course from Punjab Medical Faculty Lahore or from any other recognized Institute.



- do - - do - 10. Physiography Technician/ Occupational Therapy Technician (BS-9)


(i) F.Sc. Pre-Medical from a recognized Board and; (ii) Two years Diploma in Occupational Therapy/ Physiotherapy Technician Course from any recognized Institute/ College



- do - - do - 11. Physiography Assistant/ Physiography Aid Assistant/ Occupational Therapy Assistant (BS-6)


(i) F.Sc. Pre-Medical from a recognized Board and; (ii) Two years Diploma in Occupational Therapy/ Physiotherapy Technician Course from any recognized Institute/ College



- do - - do - 12.Physiotherapist Assistant/ Physiotherapy Aid (BS-5)

Medical Superintendents of the Teaching Hospitals/ Children Hospital concerned/ Heads of the Special Institutions concerned & Executive

(i) Matric with science from a recognized Board and; (ii) Diploma/ Certificate in









Districts Officer (Health) of the Districts concerned.

Physiotherapy Assistant Course from any recognized Institute/ College.

- do - - do - 13.Physiotherapy Attendant/ Occupational Therapy Attendant (BS-2)


Matric with science from a recognized Board



- do - - do - 14. Assistant Bacteriologist (BS-16)


M.Sc. Micro Biology or M.Sc. Bio-Chemistry with thesis on Microbiology.



- do - - do - 15.Paracitologist (BS-16)


(i) Graduation from a recognized University and; (ii) Diploma/ Certificate in Sanitary Inspector Course from Punjab Medical Faculty or from any recognized Institute and training certificate as CDC Inspector from National Malaria Training Institute, Lahore.



- do - - do - 16. Chemist/ Chemist Technician (BS-16)


(i) M.Sc. in Biochemistry or Organic Chemistry obtained on the basis of Thesis on Bio-Chemical Problems from a recognized Univeristy or (ii) M.Sc. Chemistry from recognized University with Bio-Chemistry as special subject.









- do - - do - 17. Analytical Assistant (BS-11)


B.Sc. with Chemistry as one of the subject or an equivalent qualification from a recognized University.



- do - - do - 18. Dietician (BS-9)


B.Sc. Home Economics or an equivalent qualification from a recognized University OR F.Sc. Pre-Medical/ Certificate Course in Dietician from Punjab Medical Faculty Lahore or from any other recognized Institute.



- do - - do - 19. Dental Technician (BS-9)


(i) F.Sc. Pre-Medical from a recognized Board and; (ii) Diploma in Dental Technician Course from Punjab Medical Faculty Lahore or from any other recognized Institute. (iii) One year experience in the relevant field.



- do - - do - 20. Dental Hygienist/ Ortho Dentist (BS-8)


(i) F.Sc. Pre-Medical from a recognized Board and; (ii) Diploma in Dental Hygienist Course from Punjab Medical Faculty Lahore or from any other recognized Institute.



- do - - do - 21. Dental Assistant/ Dental Mechanic (BS-6)

Executive District Officer (Health) of the District concerned/ Medical Superintendent of the Teaching Hospitals/ Children Hospital concerned/ Dean Institute

(i) Matric with science from a recognized Board and; (ii) Diploma in Dental Assistant/ Dental Mechanic Course









of Public Health/ Principal College of Dentistry & Heads of the Special Institutions concerned.

from Punjab Medical Faculty Lahore or from any other recognized Institute and; (iii) Five years experience in the relevant field.

- do - - do - 22. Assistant Dental Mechanic (BS-5)

Medical Superintendent of the Teaching Hospitals/ Children Hospital concerned/ Head of the Special Institutions concerned/ Executive District Officer (Health) of the District concerned/ Dean Institute of Public Health/ Principal College of Dentistry Lahore.

(i) Matric with science from a recognized Board and; (ii) Diploma in Dental Assistant Assistant Course from Punjab Medical Faculty Lahore or from any other recognized Institute.



- do - - do - 23. Dental Attendant/ Chair Side Attendants (BS-2)

Addl: Medical Superintendent (Administration) of the Teaching Hospitals/ Children Hospital concerned/ Head of the Special Institutions/ Executive District Officer (Health) of the District concerned/ Dean Institute of Public Health/ Principal College of Dentistry Lahore.

Matric with science from a recognized Board.



- do - - do - 24. Laboratory Technologist (BS-16)

Medical Superintendents of the Teaching Hospitals/ Executive District Officer (Health) of the District concerned/ Head of the Special Institutions concerned/ Dean Postgraduate Medical Institute, Lahore/ Chief Chemical Examiner Punjab, Lahore.

(i) Graduation in Laboratory Technology from National Institute of Health, Islamabad or from any other recognized Institute OR B.Sc. from a recognized University and (ii) Diploma in Laboratory Technician Course from Punjab Medical Faculty or from any









other recognized Institute

- do - - do - Higher technical qualification holder will be preferred.







- do - - do - Higher technical qualification holder will






Exam. Training & other conditions required. be preferred.

- do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do - - do -




STORES 1. ----GENERAL RULES (Proposed Amendment)

(i) Introductory

15.1. The departmental officers entrusted with the care, use or consumption of stores are responsible for maintaining correct records and preparing correct returns in respect of the stores entrusted to them. They are also responsible for keeping them in proper custody and in good and efficient condition and for protecting them from deterioration. They should also take proper precautions to prevent loss of public stores by fire or other accidents. Any loss of or damage to Government stores should forthwith be reported by them to their immediate superiors.

(ii) Purchase and acquisition of stores.

15.2. (a) “The purchases of articles required for the public service whether of indigenous origin or of otherwise shall be made by the Departments through their respective purchase agencies. The rules contained in the Purchase Manual issued by the Services & General Administration and rule 15.2(c)&d, shall be applicable.

(b) Subject to the provisions of sub-rule (a) above and note 3 & 4 under rule 8.3, the officers of various categories mentioned in the First Schedule of Delegation of Powers under Delegation of Financial Powers Rules, 2005 may make direct local purchase from within the country (not involving expenditure of foreign exchange) as authorized from time to time.

These powers would be available for:

(i) an article of store; or a class of similar articles of stores;

(ii) During a period of one year unless the requisite stores are controlled or covered by a Rate and Running Contract or are of such a special nature as cannot easily be procured or are exempted under special or general order of Government or by any other officer authorized on their behalf;

(iii) If the value of proposed purchase is beyond the prescribed financial competence of local powers during the financial year,


sanction of competent authority possessing the requisite local powers shall be required. Each sanction of expenditure shall carry the total amount of sanctions made during the year.

(c) Purchases should be made in the most economical manner; when stores are purchased from the open market the system of open competitive tender should as far as possible be adopted and the purchases should be made from the lowest tender unless there are any special reasons to the contrary which should be recorded in writing.

(d) The instructions regarding inviting tenders, clearance and forwarding of imported stores, submitting of necessary documents to the liaison officer at Karachi and recopying of the imprest placed at his disposal as contained in the said Purchase Manual, should be strictly adhered to.

Ch. XV. Punjab Financial Rules

ANNEXURE ‘D’ (Proposed Amendment)

Referred to Rule 15.2

While making purchases, the following instructions should be observed in addition to those given in Chapter XV of these rules:

(a) Unless a rate or running contract exists for the supply of the articles or unless the value of the order to be placed is small, or unless there are sufficient reasons, which should be recorded in writing to indicate that it is not in the public interest to call for tenders (such reasons to be confirmed by the next superior controlling authority within one week after the decision), purchases should be made by inviting tenders and tenders should be obtained by:

(i) Advertisement (open tender); (ii) Direct invitation to a limited number of firms (limited

tender); and (iii) Invitation to one firm only (single tender or private

purchase).

(b) The open tender system i.e., invitation to tender by public advertisement should be followed in all cases where the expenditure exceeds the local purchase powers of a sanctioning authority.

(c) For the local purchase limited tender system (viz Notices for bids shall be sent to the Firms/Suppliers) should be adopted subject to the following conditions:


(i) It does not involve foreign exchange; (ii) If the value of proposed purchase is beyond the

prescribed financial competence of local powers during the financial year, sanction of competent authority possessing the requisite local powers shall be required. Each sanction of expenditure shall carry the total amount of sanctions made during die year.

(d) The ‘single tender’ system may be adopted for small orders, or when the articles required are of a proprietary character and competition is not considered necessary.

(e) A ‘small order’ shall mean an order the total value of which does not exceed Rs. 5000/-.

(f) In all such cases, however, the purchasing office should consider whether it would not be feasible to enter into a rate or running contract for the articles in question or to avail of the running contract entered into by the competent authority, under Purchase Manual.

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No. FD (FR) VI-9/2000(P) GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 14th May, 2005 Subject: FINANCIAL PROCEDURE FOR INCURRENCE OF

EXPENDITURES IN CONNECTION WITH THE VISITS/ PUBLIC MEETINGS OF VVIPs

Sir, I am directed to refer to the subject as noted above, and to state that the expenditures on visits of the President of Pakistan, Prime Minister of Pakistan, the Governor and the Chief Minister of the Province are held to be a valid charge as per the Standing Operating Procedure regarding visits of VVIPs circulated by the S&GAD vide letter No. SO-CAB-1/12-3/2004 dated 08.07.2004.

2. Accordingly, in pursuance of Section 128 (i) of Punjab Local Government Ordinance, 2001 (as amended), it is directed that the District Governments in the Punjab, shall observe the following financial procedure in the matter of incurrence of expenditures on the subject:


(i) The expenditures shall be budgeted and approved by the Zila Council in term of Section 109 (i) of the Ordinance ibid;

(ii) The expenditures shall be a voted expenditure (current budget);

(iii) The expenditures shall only be incurred for the visits/public meetings of the VVIPs on objects; viz hiring of tentage, furniture, transportation, lighting, publicity and refreshments;

(iv) The financial sanctions for the expenditures shall be given by the competent authority in the prescribed manner;

(v) The DCO shall exercise full powers in the matter of advance drawals against amounts as required for immediate disbursement, to the extent of objects stated at Sr. No. (iii) above, such advances shall be drawn in relaxation of Rule 2.10(b)(5) of PFR Vol-1;

(vi) The expenditures shall be incurred in most economical manner as prescribed in Annex-D to Rule 15.2 of PFR Vol-1;

(vii) The expenditures shall be vetted by a Co-ordination Committee headed by EDO(R) and EDO (F&P) and EDO(W&S) as its members;

(viii) The concerned DDO shall be responsible for rendering vouched accounts, in the prescribed manner, in respect of the entire expenditures, including the expenditures against the amounts drawn in advance, duly certified by the Coordination Committee, for the purpose of final adjustment by the Accountant General, Punjab/DAOs concerned and;

(ix) The DDO shall also maintain complete record, as prescribed, and retain the vouched accounts for audit scrutiny;

3. Tile District Governments are requested to take action accordingly. ---------------

No. FD (FR) 11-2/89.


Dated Lahore, the 14th May, 2005

Subject: STREAMLINING OF PROCEDURES TO IMPROVE THE

PACE OF EXECUTION OF DEVELOPMENT SCHEMES - POWERS TO RE-APPROPRIATE APPROVED DEVELOPMENT SCHEMES WITHIN THE SECTOR.

Sir,


I am directed to refer to this Department’s letter No. even, dated 30.6.2004, on the subject as cited above.

2. I am to state that it has been observed that the connotation “Approved Schemes” occurring in Para 1 (a) of the said letter has been misconstrued as to its exact purview.

3. I am accordingly to clarify that “approved scheme” shall only include ‘development schemes reflected in the ADP/development budget as per the Schedule of Authorized Expenditures’.

4. All Administrative Departments/District Governments may also apply the policy in question, to the said extent only.

---------------


Dated Lahore, the 27th May, 2005

NOTIFICATION

No. (FD)11-5/82. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in Part-I OFFICERS IN CATEGORY-I of the First Schedule of the Delegation of Financial Powers Rules, 1990 the following shall be added, with immediate effect:

Amendment:

69. The Principal, Postgraduate College of Nursing, Lahore attached with Government of the Punjab, Health Department.

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No. IT(FD)3-1/95-Vol-III GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 2nd June, 2005 Subject: OBSERVANCE OF FINANCIAL DISCIPLINE IN THE

PROVINCIAL/DISTRICT GOVERNMENTS. SPECIALLY DURING THE MONTH OF JUNE.


Kindly refer to the standing instructions contained in this department’s circular letter No. IT(FD)3-1/95-Vol-II, dated 8th May, 2001 on the above cited subject, prescribing various stipulations (cut-off dates) in the matter of (i) utilization of budget (ii) contracts (iii) submission of claims to the Accountant General, Punjab/District Accounts Officer/Treasury Officers and (iv) payments through government cheques etc.

2. In order to facilitate maximum discharge of liabilities by government departments/district governments for the financial year ending 30th June 2005, it has been decided to relax and extend the stipulations (dates only),as prescribed in the circular letter of 8th May, 2001, up to 28th June 2005.

3. The policy instructions/relaxations, as above, shall only be applicable in the context of Provincial Account No. 1(Non-Food), Account No-II (Food), and District Fund, Account No. IV, unless otherwise restricted by the respective district government.

4. However, the provision regarding observance of normal office/banking hours as contained in para 2(e) of the circular letter under reference shall remain enforced, as before, for provincial and district government’s payments only.

5. These relaxations shall only apply to the financial year 2004-2005.

6. These instructions shall NOT apply to Federal Government payments.

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No. IT(FD)3-7/2001 Vol-I GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 8th June, 2005 Subject: SHARP DECLINE IN THE GROUP INSURANCE PREMIUM

OF PUNJAB GOVERNMENT EMPLOYEES, WORKING IN TEHSIL/TOWN MUNICIPAL ADMINISTRATIONS.



2. The State Life Insurance Corporation of Pakistan (SLIC) has expressed concerns about the shortfalls in the collection of monthly group insurance premium in respect of the Punjab Government employees, specifically after the implementation of the Devolution Plan. This decline is more pronounced in case of civil servants working in Tehsil/Town Municipal Administration, although such trend is also discernable in case of employees working in the district/provincial governments.

3. In this regard, the SLIC has provided relevant statistics showing visible decline in the collection of monthly group insurance premium. Besides, it has undertaken a survey of districts of Okara and Gujranwala which points out to serious shortcomings in the matter of effecting such deductions by the TMAs.

4. In most cases such deductions were either not being made altogether and deposited on monthly basis in the prescribed manner, or were made at lesser/varied rates and periodically deposited lump-sum in wrong heads of account. Besides, relevant record was not maintained to facilitate verification of such deductions. Also the relevant authorities in the TMAs were found generally unaware of their mandatory functions regarding these deductions. Even the relevant staff of the Local Fund Audit Department in TMAs showed indifference to the policy on the subject.

5. The above position has been viewed very seriously, given the fact that the FD had issued comprehensive instructions in the matter vide No. IT(FD)3-4/2002.Vol-IV dated 17.3.2003. These were also reiterated vide No. IT(FD)3-4/2002.Vol-VII dated 10.06.2004 and No. IT(FD)3-4/2002.Vol-VIII (KC) dated 22.12.2004 Therefore, there were no justifications to disregard the policy, in question, which is otherwise detrimental to the cause of the civil servants. In case the SUC were not in a position to meet their insurance claims etc., on the grounds of non-realization of insurance premium.

6. It, is therefore, reiterated that the policy contained in this department’s letter dated 17.3.2003 is implemented in letter and spirit, and that the monthly insurance premium in respect of civil servants working in TMAs is regularly deducted at the prescribed rates and deposited in the government account in the prescribed manner. Any disregard to this effect will be attributed


as a personal failing of the concerned, TMO/T.O (Finance) and Resident Audit staff.

7. As regard previous shortfalls non-deductions/arrears, it is advised that each TMA may overhaul the past record, in case of each employee (civil servants), and deposit the balance amount, separately listing out period/deductions for each employee in government accounts in the same manner as prescribed for the monthly deductions. This action may be completed by 30th June 2005.

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No. IT(FD)3-4/2002-Vol-VII GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the June 11, 2005. Subject: GUIDE LINES FOR BUDGET PREPARATION BY LOCAL

GOVERNMENTS IN THE FINANCIAL YEAR 2005-06.

Since the incumbent Local Governments are about to complete their terms of office as prescribed in Section 159 of the Punjab Local Government Ordinance, 2001, certain steps required of them with regard to their Financial and Budgetary responsibilities are iterated hereunder for guidance and implementation:

(A) Restriction on Expenditure All Local Governments shall strictly observe the provisions of

Section 109(6) of the PLGO, 2001 and may not commit or incur expenditures beyond the prescribed a percentage, per mensem.

(B) Budget Making for the financial year 2005-06.

(i) Under Section 111(6) ibid, all local governments are required to prepare the next budget, before the commencement of the new financial year, in the prescribed manner. However, the Government may impose any restrictions/prescribe change in the scope of activity under Section 128 ibid.

(ii) The out going local governments, may meanwhile, strictly observe the following guidelines in the matter of budget making for the next financial year 2005-06.

(a) All directions and schedules contained in the Punjab


Local Government Budget Rules, 2003 may be strictly followed.

(b) Appropriations of salaries and allowances shall be a first charge on the budget.

(c) Appropriation for maintenance and repair may strictly be made in accordance with the approved yardsticks.

(d) Re-appropriations of funds allocated under M&R shall not be done.

(e) Non-salary allocations in the current budget should NOT be less than 20-25 % of the total current budget.

(f) While making budgetary allocations in the new budget, specific yardsticks, where prescribed e.g., in the Health and Education Sectors may be respectively followed.

(g) Each district government may ensure that the monitoring mechanism for expenditures under the Annual Development Programme, based on the model of DAO, Faisalabad must be implemented. Necessary training/guidance has already been provided to all DAOs, and other concerned functionaries of the district governments.

(h) The percentage funds allocated for spendings through CCBs, under Section 109(5), read with Section 119 ibid shall not be budgeted or re-appropriated for utilization through any other mode.

(i) The guidelines formulated by the Planning and Development department for the preparation of Annual Budget Programme by the local governments may strictly be kept in view during the budget making process.

(j) The funds provided as conditional / specific purposes grants may be budgeted separately to meet the purpose of the grant.

(C) Other Aspects (a) As already advised vide letter No. IT(FD)3-4/2002.Vol-VII

dated 8.10.2004. Open ended grants-in-aid may not be given to other local governments in the local area.

(b) Transfer of resource to other local governments in the local area in terms of the policy contained in FD’s letter No. IT(FD)3-4/2002.Vol-VI! dated 22.2.2003 may not be done by the outgoing local governments in the month of June 2005.

(c) The funds provided to the District Governments under the


Tameer-e-Punjab Programme may be duly accounted for and reconciled up to 30th June 2005, in the prescribed manner by the outgoing local governments as per its responsibility.

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FINANCE DEPARTMENT

Dated Lahore, the 14th June, 2005 Subject: TAMEER-E-PUNJAB PROGRAMME 2003-FINANCIAL

PROCEDURE

In partial modification of the instructions contained in this department’s letter of even number dated 7.4.2003. the newly established Engineering Wing of LG&RD Department in each district, and the Divisional Offices of PHED (provincial set up at district level) are declared as the executing agencies for the Tameer-e-Punjab Programme (TPP). These shall be in addition to the existing executing agencies mentioned in para 3 (vi) of the letter under reference. The financial procedure etc. as already prescribed, shall also apply to the new executing agencies mutatis-mutandis.

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FINANCE DEPARTMENT

Dated Lahore, the 6th July, 2005 Subject: ENHANCMENT OF POWERS OF PROVINCIAL

DEVELOPMENT WORKING PARTY (PDWP)

Sir, I am directed to state that the National Economic Council (NEC), in its meeting held on 27-05-2005, decided to enhance the powers of the Provincial Development Working Party (PDWP) in the following manner:

“The power of Provincial Development Working Party(PDWP) were enhanced to sanction development schemes, costing up to Rs.5.00 million, for projects other than Irrigation sector, provided no Federal funding or


external financing was involved in the cost of project.”

2. The sanctioning powers of the Provincial Development Working Party (PDWP), and notified vide Planning & Development Department’s letter No. 35(231)RO(COORD)/P&D/2004, dated 12th April, 2004, shall stand amended, accordingly.

---------------- No. IT(FD)3-4/2002(A) Vol-VIII



Subject: GUIDE LINES FOR BUDGET PREPARTION BY LOCAL

GOVERNMENTS IN THE FINANCIAL YEAR 2005-06

Kindly refer to the policy guidelines/clarification, issued vide this departments letter of even numbers dated 11th, 24th, 25th and 29th June 2005 on the above noted subject.

2. Certain District Governments have raised the following questions with regard to the application of prorata budgetary expenditures under the relevant provisions of the PLG02001:

(i) Incurrence of expenditure on development schemes executed by the District Government against funds provided under Account No. I.

(ii) Incurrence of expenditures against tied grants / specific purpose grants, the funds whereof have been provided under District Fund Accounts No. IV.

(iii) Incurrence of expenditures against schemes under the CCBs.

(iv) Execution of ongoing schemes as referred to in para 2(vi) of this department’s letter of even number dated 24.6.2005.

3. It is clarified, as below, seriatim:-

(a) There are no percentage budgetary constraints in the matter of incurrence of expenditure on the execution of schemes against Provincial Account No. I.

(b) The execution of development schemes against funds provided for specific purpose as tied grants may continue unabated. The Local Government and Rural Development Department is being requested to invoke the provision of Section 197 of the


PLGO, 2001 to cater for this requirement in the existing circumstances.

(c) No expenditure shall be incurred on CCBs by the incumbent local governments. However, such cases, which are ripe for undertaking may be referred to the LG & RD Department for obtaining formal approval.

(d) The word 1st June. 2005 referred to in para 2(vi) of F.D’s letter of 24.6.2005 implies ongoing schemes as in place on or before 1st June, 2005. In case any of the mandatory steps provided under the Rules were not complete on 1st June. 2005, including issuance of work order, the same shall NOT be treated as an on-going schemes.

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FINANCE DEPARTMENT

Dated Lahore, the 20th July, 2005 Subject: FINANCIAL PROCEDURE FOR THE IMPLEMENTATION

OF CHIEF MINISTER’S ACCELERATED PROGRAMME FOR SOCIAL DEVELOPMENT.

Kindly refer to the policy instructions issued by the FD vide letters of even number dated 27.09.2004 and 10.1,2005 on the above noted subject.

2. In partial modification of the financial procedure outlined in the said instructions, it has now been decided as below:

(A) FLOW OF FUNDS.

The funds for the Chief Minister’s Accelerated Programme shall be provided in the following manner:

(a) Where the schemes are to be executed by the district

government, the funds shall be respectively released in District Fund Account No. IV as a tied grant. These funds shall be budgeted by the district government, and utilized through its executing agency in the prescribed manner.

(b) The funds released to the district governments shall be

debitable to Grant No. 36 (Development) under the relevant Entity/Function-cum-Object classification under the new Chart of Accounts.

(c) Where the schemes are to be executed by the provincial set-ups of the Communication and Works Department, the release of funds shall be made under Grant No. 42-Development in


Provincial Account No. 1 and shall be debitable to the relevant Entity/Function-cum-Object classification under the new Chart of Accounts.

(B) IDENTIFICATION, APPROVAL AND EXECUTION OF SCHEMES

(a) The schemes identified by the provincial government for execution by the district governments shall be approved by the respective District Development Committee as per its financial powers. However, approval of the schemes executed by the provincial government shall be made by the Departmental Development Sub Committee.

(b) The technical sanction for the schemes shall respectively be

granted by the prescribed competent authorities in the district/provincial governments as the case be.

(C) ACCOUNTING PROCEDURE.

The Accountant General, Punjab or the respective District Accounts Officers shall maintain accounts of all expenditures incurred in connection with the execution of schemes by the district governments in the prescribed manner. Likewise the concerned executing agency in the provincial government viz the XEN shall maintain the monthly accounts of each scheme executed under the programme by the provincial government in accordance with the existing rules/policy/procedures on the subject.

(D) MONITORING & REPORTING PROCEDURE

The monitoring and reporting procedure as already prescribed shall remain applicable to the execution of schemes under the programme.

(E) AUDIT

Audit of all expenditures under the programme shall be completed by the Auditor General of Pakistan, through his representatives.

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NOTIFICATION

No. FD(FR)11-5/82 (P-III). The Competent authority is pleased to authorize the Head, Project Management Office (PMO) and Director Technical, (PMO) of Punjab Barrages Rehabilitation and Modernization Project, to exercise the


powers of Chief Engineer and Superintending Engineer respectively, as figured out under Part-II – Special Powers to Certain Departments and Officers – Irrigation and Powers Department, of Second Schedule to Delegation of Financial Powers Rule, 1990.

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FINANCE DEPARTMENT

Dated Lahore, the 5th August, 2005 Subject: TAMEER-E-PUNJAB PROGRAMME 2004-2005.

I am directed to refer to the subject cited above, and to state that it has come to the notice of the Finance Department that the implementation of the Tameer-e-Punjab programme during the current financial year 2005-06 is partly held up due to the non-availability of funds in the joint PLAs of DCOs/EDO (F&P) on account of lapsing of unspent balances on 30th June, 2005.

2. I am to state, that in order to enable this department to provide the said funds expeditiously during the current financial year, the District Governments may be advised to take the following steps:

(a) Reconcile the expenditure incurred on the programme through the PLAs with the respective District Accounts Officer/ Treasury Officer.

(b) Workout the unspent balance in the PLA, and obtain a certificate of the aggregate amount lapsing on 30th June, 2005.

(c) Send the above information/certificate to the LG&RD department immediately.

3. The LG&RD may duly recommend each case of reinstatement of funds to the Finance Department for reauthorization during the current financial year 2005-06.

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No. IT(FD)3-4/2002(A)-Vol-VIII GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT



Subject: GUIDE0LINES FOR BUDGET PREPARATION BY LOCAL


Kindly refer to the policy guidelines/clarifications, issued on the subject by the Finance Department between 11th-29th June and 13th July 2005. 2. A question has further arisen as to whether the local governments are competent to incur expenditure on Maintenance and Repair, given the constraints applied on the development expenditures under the present circumstances.

3. It is clarified that the local governments may undertake emergent Maintenance & Repair works, provided that the expenditure under this object shall not exceed that incurred on Maintenance & Repair works, correspondingly undertaken during the last financial year, computed on pro-rata basis, plus an 8% increase (overall). Provided further that such expenditure shall not be incurred beyond the period specified in LG&RD Department’s letter No. SO.D-II (LG)4-1/2005, dated 26th July 2005.

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No. IT(FD)3-4/2002 Vol-VIII GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 16th August, 2005 Subject: GUIDE0LINES FOR BUDGET PREPARATION BY LOCAL


Kindly refer to the following clarification contained in para 3(c) of this department’s letter of even number dated 13th July 2005 on the above noted subject:

Para 3(c) “No expenditure shall be incurred on CCBs by the incumbent local governments. However, such cases, which are ripe for undertaking may be referred to the LG&RD Department for obtaining formal approval.”

2. The matter has been further considered in this department, and it has been decided to allow on-going CCB projects of the financial year 2004-05


during the current financial year 2005-2006, provided that the prorata budgetary constraints are observed by the respective local governments.

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No. IT(FD)3-4/2002 Vol-VIII GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 15th September, 2005 Subject: INCURRENCE OF EXPENDITURES IN EMERGENCY LIKE

FLOODS ETC.


2. In partial modification of para 2 and 4 of this Department’s letter of even number dated 13th July, 2005 the word “District Coordination Officer” appearing in line 1 and 3 respectively shall stand substituted with the word District Officer (Revenue).

3. All other provision of Rules, as prescribed shall apply. ----------------

No. IT(FD)3-11/2004


Dated Lahore, the 1st December, 2005

Subject: DEVELOPMENT EXPENDITURE STATEMENT OF THE

DISTRICT GOVERNMENT

Kindly refer to the policy instructions contained in this department’s letter of even numbers dated 9.10.2004 and 1.11.2005 on the above noted subject.

2. It is regretted to state that your office has failed to send the requisite report pertaining to the development schemes/projects of the respective district governments. This has been viewed seriously by the Finance Secretary.

3. It, is therefore, once again reiterated that the requisite report may


invariably be submitted to this department on regular basis. Any disregard to this effect will be considered as a personal lapse on the part of the respective DAO/TO.

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