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Chapter No. 1

REPORT ON AGPR

1.1: INTRODUCTION TO THE REPORT:

This is an essential academic requirement to complete an internship program of eight weeks in

an organization of repute. The internship is followed by report writing which is an integral part

in fulfillment requirements for degree of MBA a report encompasses the experience of the

internee, his learning, and analysis in light of which recommendations are made. The report is

then submitted to the supervisor in QAU. The report is properly analyzed and evaluated on its

description and analytical capabilities of its writer by supervisor of QAU.

This internship report has been written on AGPR office Islamabad

PURPOSE OF THE STUDY:

This report is based on study carried out for the fulfillment of the degree requirement of the

master in business administration at the institute of QASMS.

The purpose of the study is to do practical work in field and apply the knowledge of classroom

lectures to the real life situations.

To analyze AGPR office Islamabad

To make possible recommendations in light of the analysis.

To improve long report writing skills.

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SCOPE OF THE STUDY:

The scope of my work is focused on the working of BUDGET and PIFRA Department. Review

Section of my report not only explains department’s working but also flow of work activities

among the sections. During the internship my observation was focused on internal managerial

matters of AGPR. In short, as my area of specialization is Finance, so my report revolves around

the financial aspects, it includes index analysis, common-size analysis.

LIMITATION OF THE STUDY:

No matter how efficiently a study is conducted, it cannot be perfect in all respects. This study

was conducted in accordance with the objectives of the study; the study may not include broad

explanations of facts and figures due to the nature of the study. Second: limitation, which affects

the study, is the availability of required data was problem all the documents and files are kept

strictly under lock and key due to their confidential nature. Third: the problem of short time

period also makes the analysis restricted as one cannot properly understand and thus analyze all

the operations of an organization just in eight weeks.

METHODOLOGY OF STUDY:

The data collected for analysis and review includes both primary and secondary data. The

methods used for collecting primary and secondary data are as follows:

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PRIMARY DATA:

Data collected for the first time is called primary data. The methods used to collect such data

include:

Interviews with Organization’s employees

Personal observations.

SECONDARY DATA:

The data collected earlier by someone else and which has gone through mathematical and

statistical techniques after its collection, is called secondary data. Methods used to collect

secondary data include:

AGPR manuals

Internet

1.2.1: INTRODUCTION TO ORGANIZATION:

AGPR stands for Accountant General Pakistan Revenues. The main task of the Accountant

General Pakistan Revenues or AGPR is to cover the federal transactions and accounting. It also

reports monthly account to finance division. There are different AGPR offices are also working

in Karachi, Quetta, Lahore and Peshawar under supervision of Islamabad head office.

HISTORY OF THE OFFICE:

The AGPR office has been shifted from Karachi to Jauharabad in 1961 and after that in 1968

shifted to Rawalpindi with camp office at Jauharabad and then in 1972 shifted to Islamabad,

camp office Rawalpindi at last in 1984 its office shifted to the present site.

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The construction of colony for employees was begun in 1977 and 250 flats completed out of

500 flats.

COMPUTERIZATION:

Initiatially through a presidential and modernized order and mechanization wings of the cabinet

division, work as under taken by UBL at Rawalpindi. As this payroll was first introduced in

1969 and Accounts in 1983 and in this way this type of work has been shifted from UBL to

Pakistan. This computer Bureau was located in Islamabad. Through legacy the housing process

was started in 1983.This way of processing through PIFRA was started in 2004 with legacy for

initial few months.

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ORGANIZATIONAL SETUP:

Geographical Setup

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OVERALL STRENGTH OF AGPR AND ITS SUB OFFICES:

BPS No. of Posts

21 01

20 02

19 04

18 06

17 IDC 11

17 AO 43

17 PS 01

16 141

15 05

14 06

12 37

11 977

07 03

05 191

1-4 217

Grand Total 1642

Islamabad only 651

WORKLOAD:

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Total No. of Federal Government Employees 284,549

Total No. of Federal Government Pensioners 206,761

Bills received in AGPR, Islamabad 213,399

Monthly payroll, Islamabad 54,000

Avg. vouchers punched (month) 24,000

DOCUMENTS MAINTAINED IN SECTIONS OF AGPR:

Bill Dairies

Scale Audit Register

T.A. Register

Appropriation Register

Attendance Registers

Broad Sheets

Audit Register in GA Sections

Immediate Diaries

Medical Re-imbursement Register

1.2.2: PROJECT TO IMPROVE FINANCIAL REPORTING AND AUDITING (PIFRA):

In the accounts offices the legacy accounting system being followed based on accounting

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policies & procedures which are not in accordance with line international standards. The legacy

system in the changed environment has shown significant inadequacies in meeting the national

and international requirements of fiscal reporting. Frequently timely, accurate and

comprehensive information was not available. To meet the international standards of reporting

the Government launched the Project to Improve Financial Reporting and Auditing (PIFRA) in

all the accounting offices. At this site to bring new hanging in the legacy system to a new system

was a traffic task requiring extra effort by the Officers and staff. For this major change in their

work this office has to not only change the computerized system but also prepare its staff for this

major change in their working. Extensive training sessions were conducted for staff. In addition

to this the resources from this office also trained thousands of Federal DDOs. This activity is still

going on.

VISION STATEMENT:

Opening of economy process and to free it from regularity controls, and also need of a good

governance and newly introduced financial management becomes a key point. Through direct

iterance the government should introduce appropriate fiscal mobile investigation for changing

the established rules and regulations. In these savior economics crises, transparency and

accountability has become more pronounce. The synergy of greater public-private sector

partnership has to be exploited to accelerate and enhance the development process.

The government polices depends on the effectiveness and credibility, is critically dependent on

the availability of timely and accurate financial and management information, the existence of a

cadre of competent professionals in the public and private sectors, a framework of financial and

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accounting principles and procedures designed according to internationally accepted standards,

and through a public accountability system.

The Government includes the following key elements of its strategy for the

innovation purpose:

A modern accounting system designed according to internationally recognized accounting

principles and standards.

A governance structure and legal framework consistent with international standards for an

independent comprehensive audit function which supports public accountability by timely

reporting.

Increasing professionalization of the elements of its civil services because requiring key

competencies in staff training and appropriate human resource management policies improve

performance, experience and knowledge.

Increasing partnership between the private and public sectors in their respective areas of

comparative advantage and Adopting improved standards for private sector financial disclosure.

OBJECTIVES:

It will help to produce accurate, timely and meaningful accounts which meet to the needs of the

users. The project will help produce analysis of budgeted data reported in monthly accounts

producing significant deviation between actual budgeted account and total actual expenditures.

The improvements in the Audit component would help in enhancing accountability on the part of

the Government of Pakistan and, consequently, more effective and efficient government.

OUTCOMES:

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For Internal Stakeholders:

Re-engineered Business Processes

Prompt processing of claims

Improved HR functionality

Improved monitoring of budget

Accurate, Transparent & Timely reports

Good Governance

Improved Decision Making Process

Cash Forecasting Systems

Automated Financial Management System with greater Internal Controls

Facilitating System based Audit

More visible Audit Trails

High Level of Accountability

For External Stakeholders:

Increased Assurance, Transparency and Accountability in terms of Public Spending

Compliance with International Accounting Standards

Dissemination of Information, Confidence, Reliability and Trust to the Public

IMPLEMENTATION SITES:

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PIFRA has been implemented in the following offices.

Budget Wing of Federal Ministry of Finance

CGA

AGPR

Provincial Finance Departments

Provincial Accountants General and District Accounts Offices

For implementation PIFRA, the computerized software SAP is being used. Two main areas in

which the activities relating to SAP are divided are:

FI-(Financials)

HR-(Human Resources)

SAP FINANCIAL (FI):

Comments and Payments

Receipts

General Ledger Adjustments

Budgeting

Aggregation and Reporting

Fixed Assets

Banking

Cash Forecasting

Development Projects

SAP HUMAN RESOURCE (HR):

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Pay Roll

General Provident Fund

Pension

Staff Expenses

APPLICATION SOFTWARE (SAP):

SAP is the biggest European software company headquartered in Walldorf, Germany. SAP was

founded in 1972 as Systemanalyse und Programmentwicklung by five former IBM employees in

Manheim, Germany. The acronym was later changed to mean Systeme, Anwendungen und

Produkte in der Datenverarbeitung but since the Annual General Meeting of 2005, the

company's official name is just SAP AG.

REPUTATION:

Although not exactly a household name, SAP is the fourth-largest software company in the

world. It ranks comes after Microsoft, IBM and Oracle in terms of market capitalization. SAP is

the largest company in terms of revenue(in 2004 the company earned revenue of 7,154,000,000

Euros) as per latest data, and the largest ERP solution software provider (also in terms of

revenue).

PRODUCTS:

SAP's products are in the Enterprise Resource Planning (ERP) business sector. The company's

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main product is SAP R/3, where the "R" stands for real-time data processing, the number 3

relates to the three tier application architecture: database, application server and client.

SAP IMPLEMENTATION IN AGPR:

Processing of claims of different departments the claims are now processed through SAP and a

computerized cheque is issued. In the old system there was no role of computer in payment

processing till issuance of a manual cheque and the information for compilation of accounts was

punched after issuance of cheque so most of the works were manually in the old system. After

implementation of PIFRA and processing of claims through a computerized system the

expenditure becomes part of accounts. This enables them to improve their efficiency. On the

other hand the salary of about 55000 employees is being processed through SAP.

ORGANIZATIONAL CHART PIFRA WING IN AGPR:

1.2.3: FUNCTIONS OF AGPR:

Financial reporting to stake holders

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Disbursements to Federal Government, Provincial Government

Pre audit of pay and allowances, utilities and contingencies

Pension

GP Fund

FINANCIAL REPORTING:

AGPR is preparing the following financial reports.

Monthly Civil Account

Quarterly Fiscal tables

Annual Reports

Financial Statements

Appropriation Account

Significant improvement has been made in the areas of accounting, financial reporting and

service delivery with the implementation of SAP (ERP). Adoption of International Public sector

accounting standard (IPSAS).

Monthly Civil Account

Annual Financial Statements based on International Public Sector Accounting Standards

(IPSAS).

Budget Execution Reports (BER).

Government Finance Statistics (GFS) reporting.

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Improvement in Monthly Civil Accounts

Reporting is convenient and multidimensional.

Accounts compilation is easy.

Inclusion of object wise report.

Availability of complete data at one server.

Enhanced data availability by providing access to ministries.

ANNUAL FINANCIAL STATEMENTS AS PER IPSAS:

First time adoption of International Public Sector Accounting Standards (IPSAS) at Federal

Government for the year 2006-07 and the accrued benefits are following

Availability of useful financial information for stakeholders and general public

Enhanced understandability and reliability

Enhanced quality of Government financial statements to international standard

Followings are the main statements prepared as per IPSAS:

Statement of receipts and payments

Cash flow statement

Statement of Comparison of Budgeted and Actual Amounts by Function

Statement of Comparison of Budget and Actual Expenditure by Division

Information related to assets and liabilities

Notes to the accounts

MAIN FUNCTIONS OF FI:

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Punching of bills

Account Preparation

Accounts Compilation

Proof Reading

Transfer Entries

Vendor Creation

Vendor Updation

Training of Officers / Officials in SAP

Accounts Enquires

Computer Accounts Section:

Proof reading

Creation of new DDO’S

Mapping of DDO’S

Data Controlling of accounts

Coordination with DDO’s

Coordination with Pifra

Opening of new head of accounts

Receipt of Accounts from different sections/ Departments

Special Work

Deposit Section

Book Section

AC-I & AC-II

Counting of Vouchers (Cheque I &II)

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Numbering of Vouchers according to DL

Cancellation of cheques

HR SECTION:

Punching of all kinds of Change statement and correction of Proofs

Printing of payroll

Process of payroll with all kind of reports with concerned to payroll

Process and printing of annual GP Fund ledger

Printing of Monthly reports

Correspondence

Preparation of Computer budget Estimates.

Maintain the stock.

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EXPENSE CLAIM CYCLE:

PENSION PAYMENTS:

The SAP system has started from July 2006. Inputting the historical data of all employees in

system was a challenging task but a significant achievement has made in this regards.

More than 80 percent data has been entered in the system.

All calculations are being done through the system.

Processing time of final payment has reduced to one week.

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GENERAL PROVIDENT FUND:

GPF module started working at AGPR from October 2006. Historical data needed to be entered

in the system.

They have accomplished the intricate task and have entered all the historical data of GPF in the

System except incomplete cases.

They have been paying GPF advance through the system.

They have reduced processing time of final payment cases to just one week.

LOANS & ADVANCES (BUDGET SECTION):

Budget section of AGPR Islamabad deals the matter of long term advances to Federal

Government Employees as per budget provision by the Finance Division. Finance Division

provides budget quarterly during the financial year for the issuance of advance to Federal

Government employees.

CATEGORIES:

HBA Conveyance

HBA (BPS 1-9) Islamabad Motor Car

HBA (BPS 1-9) Others Motory Cycle

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HBA (BPS 10-15) Islamabad Cycle

HBA (BPS 10-15) Others

HBA (BPS 16-22) Islamabad

HBA (BPS 16-22) Others

Difference

Foundation

Eligibility Criteria

Loan Category Criteria Amount

Motor Car Basic Pay Rs 8135/- and above 1,50,000/-

Motor Cycle Basic Pay Rs 2926/- and above 50,000/-

Cycle Basic Pay upto Rs 2925/- 3,000/-

HBA

GazattedNo minimum service required for only

FPSC fresh permanent employed

equals to 36 Basic +

any type of pays

Non-

Gazatted

- 10 years regular service, or Permanent.

- Class-IV employees can apply after

completing their probation period.

equals to 36 Basic +

any type of pays

DOCUMENTS REQUIRED:

HBA:

Original application proforma duly filled/ signed by applicant and DDO.

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Particulars & Attested copies of the Plot/House

Attested copies of the valid agreement deed made with the owner of the house/ plot/land to be

purchased

Attested copies of the documents establishing proprietary rights in the name of the seller of the

house/ plot/ land

Attested copy of the NIC

Attested copy of the latest Pay Slip

CONVEYANCE:

Original application proforma duly filled/ signed by applicant and DDO.

Attested copy of the NIC

Attested copy of the latest Pay Slip

FUNCTIONAL ORGANOGRAM OF AGPR:

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ACCOUNTANT GENERAL PAKISTAN REVENUES

DAG(COMPU

TER)

BRANCH

OFFICERS

BRANCH

OFFICERS

BRANCH

OFFICERS

D P CELLCOMPUTER CELLS I & IISYSTEM ADMINIS-TRATION

GA I TO VIIITA I TO VIH O S,R &DCHEQUE I & IIOLD RECORDTM/HA,CCCADMN IITYPING POOL

ADMN IE.C. SECTION

DAG ( FUND

& PENSION

)BRANCH

OFFICER

BRANCH

OFFICERS

CF I TO IIIPENSION I,IIPN INCREAS CESSPN POST AUDIT

REP. APPROP.REP FINANCEA/C I TO IVBOOK/COMPAR CELLDEPOSITCAA,AC I,II& CBC/RRCBUDGET

ADDL AG

(ADMN)DAG

(SENIOR)

DG (DM&E)

DAG(ACCOUN

TS)

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Chapter No. 2

2.1: INTERNAL ANALYSIS:

I have done two months internship in the AGPR office Islamabad in this time I visited the

different sections of the AGPR and get information from that. But basically I have do the lot of

work in the two departments of the AGPR Budget and PIFRA (FI).

My finding from the budget section and PIFRA are the following respectively:

BUDGET SECTION (BILL GROUP):

I have been started my working in the bill section of AGPR. I do reconciliation of the bills such

as if any bill of the one department has recorded in other department expenditure then this effect

the budget of that department so to avoid this thing we do the reconciliation of the bill and record

that in his own department expenditure. Such as if there are two different departments and the

expenditure of the one department has been recorded in the other department expenditure by

mistake or in any way then this false transaction will effects the transaction of the both

departments such in the way that the department which have the expenditure in the reality is

shows that its balance amount will be more than the reality due to the wrong transaction and the

other one will have less.

I have checked the budget and expenditure of the different departments and their balances that

they have recorded correct or not in their manuals.

In the bill group of the AGPR there are 2 types operations can be done.

Bills for pay and allowances

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Contingences (operating activities related)

In the bill group there are two types of the bills process pay and allowances 2nd contingency

bills. Now after that these bills have been divided into two parts 1st TA and 2nd GA. The bills

of the pay and allowances of those employees which has scale above than 16 were check and

proceed in the GA section while all the bills of those employees how has below BPS than 16

were proceed in the TA section and also the contingency bills.

JOURNEY OF THE BILL:

Now first when the bill has been made then this is forward to the counter where the token

number is pasted on the bill and after that when the token number is assign to the bill then they

forward it and punch it(means they record it in the system ). After the punching of the bill they

send the bill for the sanction when the bill becomes sanctioned then after that they send the bill

for approval from the different level. In case of approval and rejection the bill will be sent to the

counter again. They do all types of the payments only with venders not directly by using the cash

due to auditing reasons. If the use directly cash then they will face the audit problems. The

contingences files were place in the bill group section of the AGPR. Contingences are related to

the operating expenses of the AGPR.

The bill must be passed from the following three levels for the approval.

Junior auditor, senior auditors

Assistant Account officers

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Account officer

Ist the bill is receive by their concern auditor he will accept or reject the bill if he accept it than

he forward it to the assistant account officer and after that the bill is sent to the account officer if

they all accept the bill then they forward the bill to the cheque. After that they will again sent the

bill to the bill group counter.

ADVANCES TO THEIR EMPLOYEES:

The AGPR can also give three types of the advances to their employees such as the house

building advances, car advances, motor cycle advances.

1: HBA (house building advance) this advance is given to the employees were 36 time of their

running basic pay. Running basic pay is the pay which is equal to initially basic plus increments

of the employee at that scale. But for it is necessary that the employee must have the 10 years

service and the maximum numbers of the installment are 120 that the employees will recover

their loan in 120 installments. The 1and 2 scale employees and also those who has selected on

FPSC base have no such limitations and the number of the installments were 240 for them. This

advances must be approve from the budget sections.

2: Car advance this advance can be taken by those employees who have the basic pay 8135 or

above if any employee has below from this range their basic then he could not take this advance.

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3: Motor bike advance: limitation for this advance is that their basic must be 3100 or above from

this.

The two similar advances cannot be used by any person at the same time. Such as car and bike at

the same time, HBA can be taken by any employee 2 time in his whole service life while the

convince advances can be taken by the employee if he has recover the previous advance

obligations. Interest on the advances can be made at the last after paying all the principle amount

of the loan. The interest rate will be used that one which is using that year in the country. All

those employees which have less in the grade then 15 on their advances there is no interest but

only on HBA on the convince advances the interest will be apply. The employee who has interest

free GP fund account their advances will be also interest free. The sheet which have been used

for the record of the allocation of the advances is known the broad sheet , it contain all the

information of the installments and other recovery of the loans and the amounts of the loan have

been make and left of each year.

The formula which they have used for interest is the following:

Formula=Principle amount*(no of installments +1)*interest rate/ 2400

DIFFERENT PAYS AND ALLOWANCES WHICH ARE NOT SO POPULAR:

Personal pay is that pay which is related to the parson such as if anybody take the amount greater

/increment after reached to the maximum range of the salary at that grade.

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Special pay is related to some special position of the office.

Qualification pay is that pay which will be give to the employees if he pass some exams which is

offer to them in that organization behalf.

Senior post allowance this is given only to grade 20, 21, 22 officers.

Rent allowance is given to their employee by the AGPR up to 50% in the large cities and up to

30% in small cities.

Local compensatory allowance is that one which is given to those employees which are working

in the hard areas.

Adhoc reliefs are those allowances which are given to the employee the case of the inflation in

the country.

Pay and allowances included in the pension or not: all the pays will be included but the

allowances will not be including in pension.

PAY FIXATION:

The pay fixation in AGPR has been done in the following ways.

1: point to point formula:

In this method only the scale of the employee change, the grade will remain unchanged.

2: promotion/ appointment to the higher scale:

In this method we see the pay of the previous stage and the pay of the next stage to which the

person was promoted if the pay of the new scale is higher than the old one at least of 2

increments than his pay will start directly from that grade otherwise if the new scale pay is less

from the old one than we see the stage at which he receive the pay as he receive in the old pay in

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equal amount. Then give the two increments to him from that place and start his pay from there

in the new scale.

Pay fixation is done through service book in AGPR for the non gazette employees of the AGPR

the service book contain all the information about the employee and this information is verified

by the AGPR at the time of the revising the scale of the employees. In case of the Gazetted

officers they have not the service book they have only the file which is placed in the GA office.

Penalty and leave of the gazetted officer is done by the AGPR and the non gazetted by their own

administration.

PAY ACTIVATION:

For the pay activation of the employee in case of the transferring in the same province is done

only by changing the personal number of that employee but if the person has been transfer from

the other province than for the pay activation he must submitted the form one on the bases of

which his pay will be activated in the AGPR.

Pay slip is issue to the employee in the case of any changing in his salary and this slip is issued

to only the Gazetted officers not for non gazetted officers.

GAZETTED ACCOUNTS (GA):

These sections check the pay and allowances bills of only those employees which have BPS 17

and above or we can say that they check only the gazetted accounts bills. In this they check the

information about their pays. The following are the main documents which must be checked.

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Appointment letter

Medical certificates

Basic salary

The information about the pay and allowances

INCREMENT TO THE EMPLOYEES:

They will give the increment to those employees only that has join before the 31 may, because

they have the policy to give the increment only to those employees who have completed the six

months at the date of the 1st dec from its joining date. If at this date any employee has not

completed the six months in the AGPR then he cannot take increment according to the rules he

will be receive the increment from the next year. If any employee has completed six month up to

1st dec from the joining date of that year then he /she is illegible to get the increment for that

year otherwise if the six month were not completed by that person then he was not illegible to

take the increment for that year. If the person has been transfer from any other place the he has

the right to get the increment. And in the case of the promotion if he has completed the six month

up to the given date at the new position then he would receive the incremental benefit at the new

scale otherwise they get the increment on the old grade basis.

PAYMENT TO THE EMPLOYEES:

when any person join the AGPR then the salary of that person can be paid in two ways to that

person, 1st direct with the bill and 2nd with computerize ID which will assign to the employees

after fill the FORM 1 and submitted them. These bills must be sign from the DDO (drawing and

disbursing officer) of the AGPR office.

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2.2: INTRODUCTION TO PIFRA (FI):

PIFRA section of this office has been working since 2003. This office has completely turned

over to the new system and cheque generation has also been started through sap.

Few facts about FI are below:

This office has started pifra from March 2005.

Initially work flow was started in two sections.(TA1&TA2)

Accounts compilation through sap has also been also started from March 2004.

AGPR office completely switched over in new system form July 2005.

Cheque generation through system has also been started from July 2005.

VENDOR MASTER DATA:

Any one which does any type of the dealing with AGPR then this is become a vendor for the

AGPR. They may be the person; an organization (private or government) and the AGPR give

them a vendor number on the basis of which all the record has been keeping in the system.

The computer section of this office has been performing the function of vender creation

/updation of all gazetted employees, firms and third parties. For this purpose five officials /kpo’s

are working on it and almost 5000 vendors have been created so far.

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CREATION OF VENDOR:

They create the vendor number on the name of the person, organization etc. They write the name

of MR, MS or the organization, after that their A/C number, ID card number, ID (postal code),

and the region of the vendor creation.

They can also do the amendment in the already existing vendor such as to change the A/C

number or any other data in the previous vendor.

WORK FLOW:

Work flow is observed from level zero to level 2 (A.O level).to make it sure that the sections are

working properly in SAP and following functions are continuously observed by computer

section. There are four master trainers who have been deputed to resolve the issues of complete

workflow.

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CHART

Application comes to AGPR from Department for GPF Subscriptions.

Opening of Ledger AccountAccount number & Nomination confirmed to department.

In manual system after every 3 month posting to ledgerAfter SAP system once in a year posting to ledger.

Bills submitted at bill counter and token issued.

Senior Auditor would check the ledger, punch the whole GPF record of subscriber from ledger to system

Examiner to exam the GPF statement for accuracy. Pre-audit bill submitted to Computer / PIFRA section.Run the cycle on the specific days

1 2 3

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PAYMENT PROCEDURE:

Pass bill statement along with passed bills are forwarded to the cheque section for issuance of

cheque. Cheque section makes payment on those vouchers AAOs examine the information

printed on cheques with the data available on pass bill statement. After verification of data, a

protective entry is made and then forwarded to A.O for signature.

BANK ADVICE:

Application for final payment submitted on Performa by DDO Concerned.

Authority for payment issued to DDO.

Bill is submitted by DDO along with authority.

After checking the whole record of the employees taking into account all the permanent / temporary advances are drawn by him.

Cheques issued for final payment (statement to be checked for accuracy).

1

4

3

2

5

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A system generated bank advice mentioning vendors name, document number, amount, cheque

number, token number, is forwarded to the bank. Different layouts can be generated from the

system as per requirement of the counter, State bank, dealing sections.

MAINTENANCE OF VOUCHER RECORD:

The token numbers are now being printed on sequel. The cheque section puts a stamp on voucher

indicating its cheque number. Bundles are maintained on basis of this sequence of cheque

numbers.

COMPILATION OF ACCOUNTS:

After the printing of cheques the posted documents are taken in to account for the compilation

and report generation using different layouts as required by the Accountant General. This process

involves so many steps which are given below.

Tally the amount of vouchers with bank advice on daily basis

Counting of vouchers with bank advice

Cancellation of cheques after printing if required

FOR THE PURPOSE OF ACCOUNTS FOLLOWING REPORTS ARE GENERATED:

Civil Account Reports

Consolidated Fund Payment.

Public Account Payment.

Consolidated Fund Receipt.

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Public Account Receipt.

Section-III Reports

Consolidated Fund Payment.

Public Account Payment.

Consolidated Fund Receipt.

Public Account Receipt.

Compilation Account

Consolidated Abstract

Reconciliation Sheet

Exchange Account

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Chapter No. 3:

3.1: PROBLEMS IN OPERATION OF THE AGPR:

ARRANGEMENT OF MANUAL DATA:

Manual data after generation of cheques is not found in sequence .due to this it is very hard to

tally amounts with bank advice. Because of the not proper recording of the manual data they

record the data in a very carelessly. They consider that the data has already available in the

system and there is no need of the recording it manually. This thing creates lot of problems

because most of the employees of the office have no knowledge about using of computers.

There is no proper transaction recording in the office of the AGPR because the employees

consider if the record is present in the computers then there are no need of further recording of

the transaction.

BILL RECORDING:

If the Bill is approve and posted in the system then this Bill is consider as expenditure in the

AGPR office regardless that the Bill has been passed from the cheaque section or not. The

cheaque of that Bill has made or not.

DIFFERENCE OF AMOUNT IN DELIVERY LIST:

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Amount mentioned in delivery list is not matching with the posting date. The total of amount

should be equal to amount of that posting date.

NO INQUIRY:

In the AGPR there is no inquiry done about any bill and statements that from where this Bill has

been made is there is reality in that or not. And most of the time false Bills have approve due to

lake of the information about the Bills.

PROBLEM IN THE CREATION OF THE CHEQUE:

The process of Cheque generation is slow as compared to the required speed. The problem

absorb by me is that servers currently installed are not up to the mark hence an early

replacement of the servers with bigger and better servers would enhance the efficiency to a great

extent.

PROBLEM IN THE AUDIT:

There are only externally audit conducted in the AGPR no internally audit due which the

deficiencies are not detected completely. Because the external auditor are not so familiar to the

office and he has very short time for his audit due to which he is unable to find all problems.

PROBLEMS IN COMPILATION OF ACCOUNT:

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This office has completely switched over to the new system and cheque generation has also been

started through system. Following are some problems which hamper the timely compilation of

accounts:

Space in the existing Hard Disk has expired of server, there is need to install new hard disk. To

support further data for this purpose, System had been stopped to configure the data with new

hard The Disk, since 10.09.2007(Saturday) after 12:00’o clock. It was ensured by the basis

experts Of PIFRA that system will work on Monday 12:09.2005 at 9.00 AM sharp.

But they failed to restart the system in time, this office coordinated with PIFRA consultants and

intimation in this regard has been made to director (FABS).

They successes to reinstall the system on 13.09.2007 at 8:30 pm

There are a lot of problems which Computer section is facing in vendor creation due to a great

work load of work. Six officials have been deputed for vendor creation and they are working on

it.

To create vendors of gazetted employees it was decided that PIFRA consultant shall run a

command which would create the vendors for it. The commitment could not be fulfilled due

great number of technical difficulties and was decided to create the vendor data through KPOs

which again is too much difficult task.

LAKE OF TRAINING:

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They bring the most expensive systems and the technology to their offices but due to less

qualifications and skills the staff cannot use that system in the proper way. And the technology is

becoming useless for them because the staff cannot use it due to the lake of the training.

Chapter No. 4

4.1: RECOMMENDATIONS:

RESOLVE THE ISSUE OF ACCOUNT COMPLILATION:

It should be ensured by Pre Audit section that vendor number/GL accounts and the amount

which they are mentioning in the system are correct, moreover proof reading of punched bills

should be watched on daily basis which has already been notified to all pre-audit sections.

Cheque section should ensure that amount mentioned in the delivery list should clearly match

with posting date to make it sure that the total amounts are equal and accurate.

Cheque section is responsible to arrange the vouchers after cheque generation, according to the

Cheque number. Among various solutions one is to cheque problem and appoints two additional

Junior Auditors with Cheque section respectively to expedite the process, their only duty would

be to put all the vouchers and cheques in order and put Cheque and bundle number.

It is advised that PIFRA consultants may ask to resolve the issues of cheque section and also

they should pay their attention towards booking of account properly and compilation of accounts.

RESOLVE THE TRAINING PROBLEM:

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As we know that the employees are not so expert in the field of the technology. They have no

skill to handle that equipments for this they need to give them some proper training to their

employees about the new technology and also motivate and offer them qualifications.

SYSTEM ADMINISTRATION:

Five persons of this office manage the system administration and have been deputed to perform

the activity of system administration

VOUCHERS/DOCUMENTS TRACING SYSTEM

Miss arrangement of vouchers creates difficulty to find out any document for the reconciliation

as well as for the cancellation of Cheques.

To solve this issue process is under at the moment SAP experts have been consulted many times

they are working on the issue and it will be resolved very soon. Two options to be followed

either to put the vouchers in sequence as it is also being followed through Cheque and 2nd is the

posting date problem is strictly being observed through supervision. However it needs further

intervention at administrative level.

PROPOSED SOLUTION:

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In order to avoid this situation in future PIFRA staff deputed with this office has been asked to

coordinate with administration of this office so that they keep the system up-to-date, and keep on

refreshing the existing servers to avoid and impediment in the workflow. To further increase the

efficiency of the workflow and keep the system up-to-date and ready to tackle with any

unforeseen situation like system breakdown, a responsibility Performa has been developed. It

outlines the responsibilities of the human resource working in system administration; also it

would be an easy tool to measure the output of the people responsible for the smooth workflow

of the system.

4.2: CONCLUSION:

To conclude I learned a lot of practical experience in Finance Department of this organization.

Infact these sections perform function according to rules, regulations and international

accounting standards. They have also drafted their work flows very effectively. Routine

transactions are recorded, manipulated. There is hardly any chance of mistakes but these

mistakes are adjusted with the recommendation of the heads. I felt that there has been a strong

coordination between all sections. My personnel experience during my internship reveals that the

working environment is very friendly and one can learn a lot even during his limited tenure.

4.3: REFRENCES:

http://www.agpr.gov.pk

http://www.cga.gov.pk/

Sardaraz (personal communication), Accountant office Cash, July 2011

Ishfaq (personal communication), Accountant office Admin 1, July 2011

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Awan.A (personal communication), Budget office, July 2011

Saqib.M (personal communication), Budget office, July 2011

Aqeel (personal communication), Budget office, July 2011

Saeed (personal communication), FI office, Aug 2011

Abid.M (personal communication), FI office, Aug 2011

Sardaraz (personal communication), Accountant office Cash, Aug 2011Imran (personal communication), Accountant office PIFRA, Aug 2011