Criteria For Advance para

Prepared by Anwar Zeb, Senior Auditor
CRITERIA FOR ADVANCE PARAS
1. According to para-7 of Central Treasury Rules, all moneys received on behalf of

government on account of revenues shall without delay be paid in full into government
treasury and government receipts should not be utilized towards expenditure.
2. Para-7 of CTR: all money received by Govt. on a/c of revenues shall without delay be paid
in full into Govt. Treasury &. Receipts should not be utilized towards expenditure.
3. Para 13 of GFR vol I provides that every controlling officers must satisfy himself not only
that adequate provision exists within the departmental organization for systematic internal
check calculated to prevent and detect errors and irregularities in the financial proceedings
of its subordinate officers and to guard against waste and loss of public money and also that
the prescribed checks are effectively applied.
4. Para-13 of GFR provides that controlling officer should see whether satisfactory
arrangement for systematic and proper maintenance of A/cs Books and ancillary record
related with initial accounts exists.
5. According to Para 13 of GFR Vol 1, every controlling officer must satisfy himself not only
checks calculated to prevent and detect errors and irregularities in the financial proceedings
of its subordinate officers but also that the prescribed checks are effectively applied. Each
head of the department will get the accounts of his office and those of the subordinate
disbursing officers inspected at least once in every financial year to see whether effective
system of internal checks exists for securing regularity and propriety in the various
transactions including receipts and issue of store etc.
6. Para 20 read with para 23 of GFR Vol I provides that every public officer is personally
responsible for any loss sustained by government through fraud or negligence on his part or
on the part of his subordinate. The loss shall be reported to audit.
7. Para 26 of G.F.R Vol 1 requires that it is the duty of the Departmental Controlling Officer to
see that all sums due to government are regularly and promptly assessed, realized and duly
credited in the Public Account.
8. Para 45 of GFR Vol 1 requires that no department or authority may, without previous
consent of the Finance Department, issue any orders which involve any grant of land or
assignment of revenue, or concession, grant lease or license of mineral or forest rights or
right to water power, or any easement or privilege in respect of such concession or in any
way involve any relinquishment of revenue.
9. Para-88 of GFR Vol-I, provides that the authority administering a grant is ultimately
responsible for watching the progress of expenditure in public service under its control and
for keeping the expenditure within the grant.
Criteria for Advance Para 1

10. According to rule 24 of appendix A para 144 of GFR Vol I, open tender system i.e. invitation
to tender by public advertisement should be used as a general rule and must be adopted for
tenders exceeding Rs.40,000/-.
11. According to Fundamental Rule 114, a government servant in foreign service will draw pay
from the foreign employer from the date on which he relinquishes charge of his post in
government service.
12. Para 23 of G.F.R Vol:I requires that every public officer is personally responsible for any
loss sustained by government through fraud or negligence on his part or on the part of his
subordinates.
13. According to clause 2& 5 of Land Lease Agreement executed between NWFP Agricultural
Research System and Nuclear Institute for Food and Agriculture Peshawar dated 13 th
January 2004, the lessee would be charged for electricity consumed for irrigation as share
of total wheat land planted and would be responsible for the harvest and storage of the
produce.
14. According to Rule 290 of CTR, no money should be drawn from treasury unless required for
immediate disbursement. It is not permissible to draw money from treasury in anticipation
of demand or to prevent lapse of budget grant.
15. The Board of Directors of Frontier Education Foundation in its meeting held on 13.02.2004
approved vide agenda item # 16, the proposal of Frontier Education Foundation
management to bring the contract employees under the revised Basic Pay Scales 2001, with
permissible fringe benefits and allowances with effect from 01.01.2004 and execute fresh
contract with each employee.
16. According to S.No. 04 of approved criteria for the grant of scholarships, only those students
will be eligible for the award of scholarship who are domiciled of NWFP and studying in
the recognized / registered private or Govt Educational Institutions in NWFP (Settled area)
17. According to S.No 7. The submission of acquaintance roll of awardees students will be the
responsibility of the concerned head of institution.
18. S.No 10 provides that , Scholarship will not be admissible to those who are admitted on self
finance basis.
19. The Government of NWFP Higher Education Department vide their letter No. CPO (HE)
SO/03-58/2003-04 dated 19.11.2004 had allocated Rs. 2.907 million for In-service Training
of their staff.
20. Sub-section-3 of Section-14 of the Frontier Education Foundation Act-III of 1992, provides
that when a borrower, who is under a liability to pay back the loan to the Board, makes any

default in re-payment or otherwise, fail to comply with any of the condition or terms of
agreement so imposed or executed, then notwithstanding any thing to the contrary
contained, the Board shall be at liberty to forthwith recover the loan as arrears of land
revenue.
21. Similarly Rule-9 of Frontier Education Foundation Rules envisages that the recovery of loan
or grant shall be made in the manner provided for in the agreement if any executed under
section 14-1 or as arrear of land revenue under section 14 of the Act as the case may.
22. According to Self Finance Rules framed by University Authority, 40% of generated income
should be deposited in University main Account No.125-9.
23. Para 10 of GFR vol I provides that every government officer shall exercise the same
vigilance in respect of expenditure incurred from public moneys, as a person of ordinary
prudence would exercise in respect of expenditure of his own money.
24. Para 26 of G.F.R vol I requires that it the duty of controlling officer to see that all sums due
to government are regularly and promptly assessed, realized and duly credited in the public
account
25. According to condition number 6 of tender notice advertised in the press on 01-04-2003,
10% performance security shall be forfeited in favour of government in case of non
completion of supply within stipulated time.
26. According to para 283 of CTR, the head of an office is personally responsible for the
amount drawn on a bill signed by him on his behalf until he has paid it the person entitled
to receive it and obtain a legally valid acquaintance on the office copy of the bill. Para 23
of GFR Vol I requires that every government officer should realize fully and clearly that he
would be held personally responsible for any loss sustained by government through fraud
or negligence on his part or on the part of his subordinates.
27. According to Revised Basic Pay Scales 1987, conveyance allowance at the prescribed rates
is admissible to employees posted in big cities only.
28. Para 28(2) of the CTR Vol:I requires that a Government officer supplied with funds for
expenditure shall be responsible for such funds until an account of them has been rendered
and that the payment are made to person entitle to receive them.
29. Director Curriculum & Teacher Education Abbottabad directives circulated vide memo
NO.7043-66 dated 10-12-03 read with para-10 (ii) of GFR Vol 1, provide that half daily
allowance will be paid on provision of hostel facilities at the venue. The expenditure
should not be prima facie more than the occasion demand.
30. In accordance with Finance Division Letter No.F 1(44)DFA (CAB)/AO/9495-272 dated 6 th
June 1995, the funds provided for the repair/maintenance were to be spent on Rehman
Baba Complex, while according to Chief Officer, District Council Nowshera Letter No.

1923/DCN dated October 1st 1996, funds provided were to be spent on the
repair/maintenance of Khushal Khan Khattak Heritage.
31. According to the spirit of para 283 of CTR, acknowledgement in support of payment should
be obtained from the payees.
32. Para 28 of GFR Vol-I provides that no amount due to Govt. should be left outstanding
without sufficient reason.
33. According to Rule 7 of CTR Volume I read with Financial Rules 2001, University of
Peshawar, all money received by or tendered to government officers on account of the
revenues of the government shall without delay be paid in full into treasury.
34. Para 4.1.1 of Peshawar University rules, 2001 provides that the university’s annual budget is
a detailed planning of activities involving financial aspects, which enables the University to
exercise an effective control over the actual expenditure, which is measured against the
budgeted targets and thus provide a useful guidance in planning the future financial
activities of the University.
35. Rule 290 of Central Treasury Rules provides that no money should be drawn from
government exchequer unless it is required for immediate disbursement.
36. In accordance with clause-7 of the contract agreement executed with the contractors for
transportation of wheat from Punjab to NWFP, during the years 2000-01 ,2001-02 and
2002-03, the contractor was to lift the allocated quantity within the stipulated period
failing which he was to pay a penalty equal to 20% of the freight value for the quantity not
lifted.
37. Para-23 of GFR provides that every govt. officer will be personally held responsible for loss
sustained by govt. through negligence or fraud on his part or on the part of his
subordinates. Para 148 of G.F.R Vol:1 requires that all materials received should be
examined, counted, measured or weighed and the responsible officer should see and certify
that the quantities are correct and their quality good. The purchase items should be entered
in the stock register.
38. According to para 31 of the GFR vol 1, when the maintenance of any rentable building is
entrusted to civil department other than Public Works Department, the head of department
concerned would be responsible for due recovery of rents thereof.
39. Para 148 GFR Vol I, requires that all materials received should be examined, counted,
measured or weighed as the case may be when delivery is taken and they should be taken
in charge by a responsible government officer who should see that the quantities are correct
and their quality good, and record a certificate to that effect.
40. Para 151 of General Financial Rules Vol 1 provides that the head of an office or any other
officer entrusted with stores of any kind should take special care for arranging their safe

custody, for keeping them in good and efficient condition and for protecting them from
loss, damages or deterioration.
41. According to para-167 of GFR Vol.1, each order declaring stores as unserviceable should
record full reasons for condoning them and how the condemned stores are to be disposed.
42. According to Para-2 (Viii) of GFR Vol I, and note to the Para ibid, all loans raised by
Government will form part of the consolidated fund and withdrawal of money there from,
shall be regulated by the Act of Parliament.
43. Accountant General NWFP, letter No. Note Book-I (P)/Food/Adv?2003-04, 5592-95 dated
07.04.04 depicts details of loans obtained from various commercial banks, by the Director
Food NWFP.
44. Para-168 of GFR vol provides that stores reported as surplus must be disposed off by sale or
otherwise under the sanction of the competent authority.
45. Para 28 of GFR vol I requires that no amount due to government should be left outstanding
without sufficient reasons and where any dues appear to be irrecoverable the order of
competent authority for their adjustment must be sought.
46. Para 13 of GFR vol I provides that every controlling officers must satisfy himself not only
check calculated to prevent and detect errors and irregularities in the financial proceedings
of its subordinate officers and to guard against waste and loss of public money and also that
the prescribed checks are effectively applied.
47. According to S.No.2 to the appendix of the NWFP, Finance Ordinance 2002, all the flour
mills owners are required to deposit Rs.10,000/- per flour mill per annum on account of
professional tax.
48. Para 26 of GFR vol I requires that it is the duty of the departmental controlling officer to see
that all sums due to government are regularly and promptly assessed, realized and duly
credited in the public accounts
49. According to Para 167 of GFR Vol 1, stores which are reported to be surplus may be
disposed off by sale under the orders of the competent authority.
50. Para 10 of G.F.R vol I provides that every officer incurring or authorizing expenditure from
public fund is expected to exercise the same vigilance in respect of expenditure incurred
from public money, as a person of ordinary prudence would exercise in respect of
expenditure of his own money.
51. According to para-23 of G.F.R. Vol.I, every government officer is responsible for any loss
sustained by the public exchequer through fraud or negligence on his part or on the part of
his subordinates.

52. According to work order No.FHA/CC/No.7/2002 dated 27-09-2002, the contractor had to
execute the Bituminous prime coat and surface course at rebate of 6%.
53. According to para 8 of G.F.R, it is the duty of administrative department to see that the dues
of government are correctly & promptly assessed, collected & paid into the treasury.
54. According to amended Section 21 (1),(4)(e), (6) of Frontier Highways Authority Ordinance,
2001, the Frontier Highways Authority Development Fund shall have to its credit all the
moneys received by the authority on any account including all other sums received by the
authority, such as fees, sales proceeds etc. The budget of the authority shall be formulated
in three separate parts, firstly construction/development budget, secondly operational
budget and thirdly repairs and maintenance budget provided that any re-appropriation
amongst the aforesaid three heads of budgets shall required recommendation of the council
and approval of Provincial Cabinet in the revised Budget Estimates. Para 9 of GFR vol.I
provides that no authority may incur any expenditure or enter into any liability involving
expenditure from public funds until the expenditure has been sanctioned by general or
special order of authority and the expenditure has been provided for in the authorized
grants and appropriation for the year. There shall be two separate non lapsable funds to be
known as Frontier Highways Authority Development Fund and FHA road maintenance
fund.
55. Article 120 of the Constitution of the Islamic Republic of Pakistan, 1973 read with para 66
of GFR Vol.I and amended section-22 of the Frontier Highways Authority Ordinance, 2001
expressly mentions that budget provisions are for that financial year. Any unspent balance
lapses and is not available for utilization in the following year. A copy of the accounts of
Frontier Highways Authority shall be rendered to the Accountant General, NWFP by 31 st
August each year for incorporation in civil accounts.
56. Amended section 21 of Frontier Highways Authority Ordinance, 2001 provides for two
separate fund (i) FHA Development Fund (ii) FHA Road Maintenance Fund.
57. In accordance with Section-23 of Frontier Highways Authority Ordinance 2001, in the
month of January each year, the authority shall submit to government for approval a
statement of the estimated receipts and expenditure in respect of the next financial year.
Section 6(d) of the ordinance provides that powers and functions of the FHA council shall
be to recommend the annual budget of the authority to government for approval.
58. According to the Civil Judge, Peshawar orders of dated 9 th September 2004, arbitration fee
of Rs.100,000/- was fixed for the announcement of award on 8 th November 2004 by the
arbitrator.
59. According to government of NWFP, Health Department office order No. E&A (Health) 2-61
dated 6th August 1996, the posts of steno typists BPS-12 offered would not confer any right

of regular appointment or absorption against the post of steno typist or any other post and
nor the services would be counted towards seniority, promotion and pension.
60. Para 148 GFR Vol I, requires that all materials received should be examined, counted,
measured or weighed as the case may be when delivery is taken and they should be taken
in charge by a responsible government officer who should see that the quantities are correct
and their quality good, and record a certificate to that effect.
61. Clause-17 of the Govt. staff vehicles (use and maintenance) rules 1997, circulated by the
S&GAD Deptt. vide notification No. SO(T)NP/S&GAD/97 dated 13.7.97 read with clause-
10 of the same notification, provide that no officer who is in receipt of a fixed conveyance
allowance shall not be entitled to the use of a government vehicle or vice versa.
62. According to Section 50 (4) of Sales Tax Act 1990, Sales Tax was required to be deducted
from the suppliers/dealers at prescribed rate.
63. According to para-6 of the Health Department notification No. SOH (I) 3-15/2001, dated
26.6.2001, monthly reconciliation should be carried out with the treasury/bank.
64. Para 26 of G.F.R Vol 1 requires that it is the duty of the Departmental Controlling Officer to
see that all sums due to government are regularly and promptly assessed, realized and duly
credited in the Public Account.
65. Para 151 of General Financial Rules vol 1 provides that the head of an office or any other
loss, damages or deterioration. Para 20 of G.F.R vol 1 provides for reporting of losses to
Director General Audit
66. According to para 283 of CTR, the head of an office is personally responsible for the
amount drawn on a bill signed by him on his behalf until he has paid it the person entitle to
receive it and obtain a legally valid acquittance on the office copy of the bill.
67. According to Para 88 of GFR Vol 1, the authority administering a grant is ultimately
responsible for watching the progress of expenditure on public service under its control and
for keeping the expenditure within the grant.
68. According to Sr. No.19.2 of the Delegation of Power under financials rules 1992, PC-1
should be approved from the competent authority. Schedule of Rates 1999 were introduced
to execute the works according to the rates provided.
69. Para-12 of GFR provides that controlling officer should see that all sums due to government
are assessed, realized and duly deposited into public account.
70. In light of clause 7 of contract agreement No. 7718/HMD dated 15 th October 1997 executed
between the hospital management and contractor, 10% penalty shall be recovered for non
execution of work.

72. According to Sr. No. 17- A of Rule 9 of the revised leave rules 1980, pay is not allowed
during extra ordinary leave.
73. Para 19 GFR Vol I provides that the award of contract must be in the most public and
transparent manner advantageous to government.
74. Para 151 of General Financial Rules vol 1 provides that the head of an office or any other
loss, damages or deterioration. Para 20 of G.F.R vol 1 provides for reporting of losses to
Director General Audit.
tenders exceeding Rs.40,000/-
76. Para 20 read with para 23 of GFR vol I provides that every public officer is personally
on the part of his subordinate. The loss shall be reported to Audit.
77. According to Government of NWFP Health Department Notification No.SOH(V)1-1/92

dated 02-09-1996, 2% of receipt realized in hospitals is admissible to the staff of
administrative setup in accordance with procedure prescribed by the government.
78. Para-149 of GFR Vol-I provides that the officer in charge of the store should see that an
indent in the prescribed form has been made by a properly authorized person, examine it
carefully with reference to the orders for the issue of store and sign it and a written
acknowledge should be obtained for authentication.
79. In accordance with, health department Notification No.SOR (V) 1-1/92 dated 2/9/1996, 2%
share for administrative setup is allowed.
80. Para 10 of G.F.R vol I provides that every officer incurring or authorizing expenditure from
public fund is expected to exercise the same vigilance in respect of expenditure incurred
from public money, as a person of ordinary prudence would exercise in respect of
expenditure of his own money
81. Schedule of Rates 1999 were introduced for execution of works according to the rates
provided therein.
82. In accordance with Government of NWFP Health Department Notification No.SO1(V)1-

1/92 dated 02-09-1996, share out of laboratory receipts should be distributed at ratio of
60% to government, 25% to doctors, 10% to paramedics, 2% for administrative setup and
3% for repair and maintenance.

83. Para 151 of GFR vol I provides, that the head of an office or any other officer entrusted with
stores of any kind should take special care for protecting them from loss, damage or
deterioration
84. According to Para 6 of GFR Vol I, a government officer receiving moneys is personally
responsible for seeing that they are disbursed in strict conformity with the rules, regulations
or orders governing the fund to which the money appertain, that a precise record of all the
transactions is kept in a form complying with the regulations of the fund concerned and
that the accounts are subjected to proper audit check.
85. Para-150 of G.F.R. provides that in case of transfer the officer in charge of stores should see
that the stores in his custody are made over correctly to his successor and a proper receipt
taken from him.
86. In term of Government of NWFP, Health department Notification No.6-117/SPO/PC-1-

11/2002, dated 17-10-03, share of the doctors out of user charges was discontinued.
87. Para-149 of GFR Vol.1 provides that when materials are issued from stock for departmental
use, the officer in charge of stores should see that an indent in the prescribed form has been
made by a properly authorized person, examine it carefully with reference to the orders for
the issue of store and sign it.
88. S.No.II of the sales tax ruling/instruction No.27/2002, (CNo.4 (47) STB/98(PT-II), dated 2-
4-2002 provides that there is no sales tax on repair of goods, vehicles etc. However, if the
person making repairs also provide spare parts, replacement parts, or any other taxable
goods, the same should be subjected to sales tax.
89. According to Para 11 of GFR Vol 1, each head of a department is responsible for enforcing
financial order and strict economy at every step. He is responsible for observance of all
relevant financial rules and regulations both by his own office and by subordinate
disbursing officers.
90. According to Sales Tax Ordinance, 15% and 16% sales tax should be deducted from the
supplier’s bills or bank return challan obtained. 5% Income Tax should be deducted from
the contractors / suppliers bills on account of services rendered.
91. Para-148 of GFR provides that store purchased should be checked that the quantity and
quality is good and according to the specification and a certificate be recorded on the bill
and entry in stock register.
92. According to Para 6 of GFR Vol I, a government officer receiving moneys is personally
responsible for seeing that they are disbursed in strict conformity with the rules, regulations
or orders governing the fund to which the money appertain, that a precise record of all the
transactions is kept in a form complying with the regulations of the fund concerned and
that the accounts are subjected to proper audit check.

93. According to rule 24 of appendix a para 144 of GFR Vol.I open tender system i.e. invitation
94. According to Rule 7 of CTR Volume I, all money received by or tendered to government
officers on account of the revenues of the government shall without delay be paid in full
into treasury
95. Para-167 of GFR provides that surplus or unserviceable store may be disposed off by
sale/public auction.
96. According to para 283 of CTR, the head of an office is personally responsible for the amount
drawn on a bill signed by him on his behalf until he has paid it the person entitle to receive
it and obtain a legally valid acquittance on the office copy of the bill. Para 23 of GFR Vol I
requires that every government officer should realize fully and clearly that he would be
held personally responsible for any loss sustained by government through fraud or
negligence on his part or on the part of his subordinates.
97. According to Government of NWFP S&GAD Notification No.DSA(G/GAD)6-2/98

dated:30/5/98, no expenditure in excess of the ceiling fixed for the residential telephone
may be incurred.
98. Para 23 of GFR vol I provides that every public officer is personally responsible for any loss
sustained by government through fraud or negligence on his part or on the part of his
subordinates.
100. Para-12-41(3) of police rules provides that the orderly Head Constable shall maintain a list
of vacancies in form 10.86 omitting columns-14 and 16 and constabulary number, except
on occasion of promotion to a rank bearing a provincial or range number or transfer to
another district, shall not be changed
101. Para-150 of GFR provides that in cases of transfers, the officer incharge should see that the
stores in his custody are made over correctly to his successor and a proper receipt taken
from him.
102. According to Para-167 of GFR, store which is surplus or unserviceable may be disposed off
by sale, or otherwise under the orders of the competent authority.
103. Rules 283(2) of Treasury Rules provides that if for any reason, payment cannot be made
within the course of the month, the amount drawn for the payee shall be refunded by short
drawing in the next bill.

104. Paras 12.40 and 12.41 of Police Rules provide that the orderly head constable shall maintain
a list of vacancies in form-10.86 omitting column 14 and 16 and constabulary number or
transfer to another district shall not be changed.
105. Para 12.15 of Police Rules provide that recruits shall be not more than of 25 or les than 18
years of age at the time of enlistment and shall have a minimum height of 5’ – 7” and
normal chest measurement of 33” with expansion of 1 ½ inches. These physical standards
shall not be relaxed without the general or special sanction of the commandant/ competent
authority.
106. Para-144 of GFR Vol-I provides that open tender system must be adopted in which the
estimated value exceeds Rs.40,000/-. Para-10 of GFR provides that every officer is
expected to exercise the same vigilance in respect of expenditure incurred from public
money as a person of ordinary prudence would exercise in respect of expenditure of his
own money.
107. Para 3.31 of Police Rules provides that value of produce of lands in the occupation of
government department should be realized for the benefit of government and credited into
the treasury. Rule-7 of FTR provides that all moneys received as revenue of the
government shall without delay be paid in full into treasury.
108. According to Para-13 of GFR Vol-I, it is the responsibility of the controlling authority to
apply internal check to prevent and detect error and irregularity in the financial proceeding
of its sub-ordinate officers and to guard against waste and lost of public money.
109. S&GAD criteria of selection for promotion/ initial appointments dated 5/2000 was to be
followed.
110. Para 10 of GFR vol I provides that every government officer shall exercise the same
vigilance in respect of expenditure incurred from public moneys, as a person of ordinary
prudence would exercise in respect of expenditure of his own money. Para 20 read with
para 23 of GFR vol I provides that every public officer is personally responsible for any
loss sustained by government through fraud or negligence on his part or on the part of his
subordinate. The loss shall be reported to audit.
111. According to para 145 of GFR Vol-I purchases must be made in the most economical
manner in accordance with the definite requirement of the public services. Care should be
taken not to purchase store much in advance of actual requirements, if such purchase is
likely to prove unprofitable to Government.
112. Paras 154 and 159 of GFR Vol-I provide that an inventory of dead stock should be
maintained in all government offices showing the number of items received, the number of
items disposed off and the balance in hand for each kind of article. A physical verification
of all stores should be made at least once in every year.
113. Paras 144 and 146 of GFR Vol-I provide that open tender system i.e. invitation to tenders by
public advertisement must be adopted in all cases where estimated value of tender is

Rs.40,000/- in order to achieve most economical and beneficial rate. The purchase orders
should not be split up to avoid the sanction of the higher authority.
114. The Government of Pakistan Collectorate of Sales Tax and Central Excise Peshawar letter
No. ST(Tech) Govt./31/2000/12379 dated 19-10- 2001 provides that all government
departments are required to purchase taxable goods from persons registered with Sales Tax
Department and against Tax Invoice showing name and address of the suppliers/recipients
description, quantity and value of goods with amount of Sale Tax charged.
115. Rule 290 of CTR Vol I requires that no money shall be drawn from the treasury unless it is
required for immediate disbursement. It is not permissible to draw money from the treasury
in anticipation of demands or to prevent the lapse of budget grants.
116. Clause-3 of Medical Rules, 2004 states that the University employees may stand entitled for
medical treatment in Government Hospitals. Hospitalization shall be allowed in the first
instance in the local public hospital. If the facilities are not available in the local hospital
treatment may be sought for in other hospitals in the Province. However a certificate to that
effect of non availability of the facilities shall have to be obtained from the local hospital
lacking the facility.
117. Clasue-8 of the contract agreement executed between university authorities and the
contractor, states that 1% Penalty of the cost of work order will be imposed per day on the
contractor in case the supply is not made within the stipulated time.
118. Para 144-GFR vol-1, Annexure-A (24) states that open tender system should be adopted
exceeding Rs.50, 000/- in order to observe vast competition among the bidders to ensure
economical purchases and in order to comply with the high standards of financial propriety.
119. According to Revised Pay Scales, 2001 medical Allowance at the rate of Rs.210/- PM was
allowed by the Government to (BPS-1 to BPS-15) employees.
120. Para 17-GFR vol-1 provides, it is the duty of every departmental and controlling officer to
see that the Accountant General is afforded all reasonable facilities in the discharge of his
functions and furnished with the fullest possible information for which he may ask for the
preparation of any account or report which it is his duty to prepare.
121. Para 106-GFR vol-1 provides, a disbursing officer may not on his own authority authorize
any payment in Excess of the funds placed at his disposal.
122. Rule-298 FTR vol-I states that a register of contingent expenditure shall be kept in each
office and the initials of the head of office, or of a gazetted officer, whom this duty has
been delegated to, shall be entered against the date of payment of each items. Standard
form of the contingent register TR-29 shall be maintained for the purpose of control of
expenditure under each object head.

123. With reference to FD SO (SR-11)8-2/70 (KC) dated 20/11/983, if any Government Servant
who is provided with official accommodation within Premises and he refuses to occupy
such designated accommodation will not be entitled to house rent allowance and the like.
124. Rule 290-FTR Vol-1 states, No money should be drawn from the treasury unless it is
required for immediate disbursement. It is not permissible to draw money from the treasury
in anticipation of demands or to prevent the lapse of budget grant.
125. Rule 283(1) FTR vol-1 provides the head of an office is personally responsible for the
amount drawn on a bill signed by him on his behalf or by authorized officer subordinate to
him until he has paid it to the persons entitled to receive it and obtain a legally valid
aquittance on the office copy of the bill.
126. Reference is invited to Got: of N.W.F.P S & GAD (General Wing) letter No. DSA (G)/S &
GAD 6-2/98 dated 30-05-98 where in payment of 5% on residential telephone bills to be
recovered from the subscribers.
127. Para 8.2 (Page 43) University Financial Rules 2001 read with Para 290 of CTR provides that
the advance holder should render the statement of expenses within a month duly supported
by vouchers.
128. No money shall be drawn from the Treasury Public accounts unless it is required for
immediate disbursement. It is also not permissible to draw money from the Treasury in
anticipation of demand or to prevent the lapse of Budget. In disregard of the aforesaid
rules, the University of Peshawar paid an amount of Rs. (as detailed) in advance to its
staff/components for different kind of Purchases and sanction of works etc. the advance
payments were not in order and clear notation of Rules. The huge amount of Rs.
26,851,580/- was paid in advances. This was not in accordance of basic purpose of
advances, which was, to meet the urgent and inevitable needs.
129. The process of adjustment was also not according to prescribed standards. The long delay in
adjustments, the concerned office failure to make adjustments in time, and absence of
proper adjustment mechanism showed weak internal controls and mismanagement. The
decades old advances awaiting for adjustment and absence of OB register clearly paves
way for embezzlement and fraud. The chances of misappropriation and production of fake
vouchers could not be overlooked in these cases.
130. Para 290, FTR stipulates that no money should be drawn from government exchequer unless
it is required to be paid immediately.
131. Section 373 of the University of Peshawar Act 1974, provides that the annual financial
statements of the University duly singed by the Treasurer and Resident Auditor shall be
submitted to the Govt. within six months of the Closing of financial year.
132. According to FTR-77, (i) Govt. receipts should be entered into the cashbook. (ii) All
monetary transactions should be entered and attested by the head of the office. (iii) Cash

book should be closed regularly and totaling verified by the head of the office or other
authorized persons, but not by the writer of the cash book.
133. According to GFR-89-4-viii the head of the department and AG (Director Finance in this
case) will be jointly responsible for the reconciliation of the accounts maintained by the
department.
134. Para 8-G.F.R Vol-1 states it is the duty of the head of the department concerned to see that
the dues of Govt. are correctly and promptly assessed, collected and paid into the treasury.
Para 26-G.P.R Vol-1 provides that it is the duty of the department controlling officer to see
that all sums due to Govt. are regularly and promptly assessed, realized and duly credited
in the public account.
135. According toGFR-4, all transactions of government must be brought to account without
delay. Similarly, GFR-26 stipulates that it is the duty of controlling officer to see that Govt.
dues are assessed, realized, and deposited into the treasury.
136. 12 GFR provides that funds allocated should be expanded in the Public interest and upon the
objects for which the same was provided.
137. According to FTR-7 (1), all money received to government by government officials shall
without delay be deposited in to treasury.
138. Para 17 GFR Vol-1 provides that all the auditable records must be provided on the demand
of auditors.
139. With reference to Auditor General Ordinance 2001.Auditable record may be provided as and
when demanded. Clause 4 of Darul-uloom Islamia Sarhad Peshawar (Trustees) Act,1954,
stipulates that income generated from the properties given under the management of the
Board shall be placed at the disposal of the University of Peshawar at such intervals of the
year as may be prescribed.
140. Rule 395 FTR Volume-1, provides, the payments of all works done shall be made of the
basis measurements recorded in measurement book kept for the purpose. Claims for such
payments shall be prepared by the claimant themselves in authorized forms of bills and no
payment may be authorized unless the correctness of claim in respect of quantities and
rates as well as the quality of the work done have been accepted.
141. Para-148 GFR Volume-1 states, all materials received should be examined, counted,
measured or weighed when delivery is taken and they should be taken in charge by a
responsible government officer who should see that the quantities are correct and their
quality good and record a certificate to that effect. The officer receiving the stores should
also be required to give a certificate that he has actually received the materials and
recorded them in the appropriate stock register.
142.

143. Article 147 Audit Code states, that the stores which are supplied by the supplier are duly
inspected by competent officer and certificate of quality and quantity are duly recorded
under the signature of the competent authority.
144. Para 106-GFR Vol-1 provides, a disbursing officer may not on his own authority authorized
any payment in excess of the funds placed at his disposal.
145. Para-8 GFR Volume-1 provides, it is the duty of administration/revenue department to

assess, realize and ensure credit all types of dues in to public account.
146. Para 7-GPR vol-1 states, unless otherwise expressly authorized by any law or rule or order
having the force of law, money may not be removed from the Public Account for
investment or deposit else where without the consent of the Ministry of Finance.
147. Rule 77 (ii) Provides, All monetary transactions should be entered in the cash book as soon
as they occur and attested by the head of the office in token of check. (iii) The cash book
should be closed regularly and completely checked by the head of the office. (iv) At the
end of each month the head of the office should verify the cash balance and record a signed
and dated certificate to that effect.
148. 95% compaction is not possible in ramming of earth.

149. According to para 179 of CPW A Code , when land or other property is let to a private
person, the full assessed rent must be recovered in advance. The public property should be
protected by the Divisional officer.
150. According to para-149 of GFR Vol-I the officer incharge of store should see that indent for
issue of article from store is from authorized person, carefully exams it and issue the
article.
151. General Financial Rule 10,12,13, & ,23 provide that public money my be utilized
economically should be utilized in Public interest and on objects for which provided and
the officer concerned will be personally responsible for the loss due to his negligence.
152. Para-66 GFR, all estimates of revenue and expenditure included in the budget are for the
financial year. Similarly para-106 of the GFR prohibits excess expenditure over allotment.
153. When ever offences of illicit cutting of trees in the area are committed and no case is filed in
the court of law, the confiscated property is put to auction and revenue realized on this
account is deposited in to government treasury.
154. According to Fundamental Rule-19, the pay of a government servant shall not be so
increased as to exceed the pay sanctioned for his post without the sanction of an authority
competent to create a post in the same cadre on a rate of pay equal to his pay when
increased.

155. According to Para 77 (ii) of Treasury Rules read with paras 89(4) (Viii) & 95 of GFR Vol:1,
all monetary transactions should be entered in the cash book as soon as they occur and
attested by the head of the office in token of check. The head of the department & the
Accountant General will be jointly responsible for the reconciliation of the expenditure. All
anticipated savings should be surrendered to government immediately they are foreseen.
156. According to Income Tax Ordinance, 1979, Income tax should be deducted from the bills of
contractors. 5% income tax was included in the schedule of rates in order to deduct income
tax from the bills of contractors.
157. Para-10 of GFR Vol.1 requires that every officer incurring or authorizing expenditure from
public funds should be guided by high standards of financial propriety.
158. Payments made in departure from the standards, codes, rules and regulations framed by the
government, authority or any other competent forum are term as unauthorized payments.
159. Para-95 of GFR Volume-I requires that unspent funds are to be deposited into government
treasury.
160. Para-397 of the Federal Treasury Rules Vol-I Prohibits payment to contractors without actual
work done.
161. According to S# 12.11 of the NWFP Delegation of Power Rules 2001, the DFO was
empowered to sanction 1/4th of the amount realized on account of compensation as reward
to staff.
162. Para-17 of GFR Vol.1 requires that it is the duty of departmental and controlling officer to
provide all auditable records to audit.
163. According to para-8 of GFR Vol-I, all government dues should regularly be assessed,
realized, and deposited into government treasury.
164. The Government of NWFP, Excise and Taxation Department vide memo No. SO (Tax)
PO/402-14 dated 15/5/99 has imposed professional tax at different rates on firms/
contractors executing works valuing more than Rs 200,000/-.
165. According to para 159 of G.F.R. Vol. I, physical verification of store should be carried out at
least once in every year. Similarly, para 6 of G.F.R Vol: 1 read with Para 13(iii) provide for
proper maintenance of record and satisfactory arrangement for maintenance of accounts
books and other ancillary records. Over and above, para 148 of G.F.R Vol.1 requires that all
materials received should be examined counted, and entered in the appropriate stock
register and physical verification may be carried out annually.

166. Para-6 of GFR Vol-I read with para 13(iii) provides for proper maintenance of record and
satisfactory arrangement for maintenance of accounts books and other ancillary record.
167. According to para-19(iv) of GFR Vol-I, no payment should be made to contractor out side
the strict terms of the contract or in excess of the contract rates.
168. According to G.F.R. Vol.I Para 11 each head of a department is responsible for enforcing
financial order and strict economy at every step. He is responsible for observance of all
relevant financial rules and regulations both by his own office and by subordinate
disbursing officers. Similarly, para 95 of G.F.R Vol-1 provides that unspent balances should
be surrendered before the close of financial year. According to para 19(iv) of G.F.R. Vol.I,
no payment should be made to contractor out side the strict terms of the contract or in
excess of the contract rates.
169. Finance Department letter # SO(HE)/2-4/IV dated 10.10.1995 provides that 60% of all funds
should be transferred to university main account.
170. According to para-6 read with para-9 of GFR Vol-I the government officer is personally
responsible to see that the money drawn from government treasury is disbursed in strict
conformity with the rules/regulations, orders and that a precise record of all transactions is
kept in a form complying with the regulations.
171. According to provision of para-290 of CTR, money may not be drawn from government
account unless required.
172. According to para-283 of CTR, each head of office is responsible for ensuring that the
amount drawn is duly paid to person entitled to receive it.
173. According to Delegation of Powers Rules 2001, no power has been delegated to
Superintending of Police for incoming expenditure of honorarium.
174. According to the NWFP Police Recruitment Rules, the posts of Foot Constables shall be
filled on the basis of at least Metric academic qualification, physique of 5’ x 6” height, and
32” – 34” chest after wide publicity through press.

175. According to existing recruitment rules circulated vide notification No.S.O(P-I)HD/13-1/83

dated:18/01/89, the minimum qualification standard for recruitment of a person in BPS-5
is Metric.
176. According to provision of para-150 of GFR Vol-I, in case of transfers the officer incharge
should see that the stores in his custody are made over correctly to his successor and proper
receipt taken from him.
177. According to provision of para 4&5of GFR Vol-I read with para-7 of CTR, the money
received as dues of government or for deposit should be credited into the public account
without delay.
178. According to provision of Para-243 of audit manual, the G.P.Fund advance which remained
un recovered should be communicated to the account circle to which a subscriber is
transferred.
179. Section 3(2) read with Section-22&24 of NWFP Highway Authority Ordinance, 2001
requires that the authority being a corporate body shall maintain complete and accurate
books of accounts in such form as may be prescribed. A copy of these accounts shall be
rendered to the Accountant General NWFP by 31 st August each year for incorporation in
civil accounts.
180. Article 14(2&3) of the Auditor General Ordinance, 2001 read with para-17 of G.F.R. Vol.I,
requires that all auditable record should be produced to the Inspection Officer.
181. Para-93 of GFR Vol-I requires that a department undertaking a work on behalf of another
should not exceed the sanctioned estimates. The department incurring the expenditure shall
be responsible not only for seeing that the allotment placed at its disposal is not exceeded
but also that any anticipated savings are notified and surrendered in time.
182. Para-276 of GFR Vol-I read with government of NWFP Finance Department letter # SOR-
III(FD)/2-59/95 provides that whenever private person or a firm contracts with the
government to supply store or execute a work he or it should be required to give security
for the due fulfillment of the contract and suitable provision regarding security should be
incorporated in the agreement. Moreover, the contractor on entering into agreement shall
pay stamp duty at the prescribed rate.
183. Para-93 of GFR Vol-I provides that the department incurring the expenditure shall be
responsible not only for seeing that the allotment placed at its disposal is not exceeded but
also that any anticipated savings are notified and surrendered in time.

184. Para-4.7,4.8 & 4.9 of B&R code require that every measurement must be recorded in the
measurement book at the time it is taken and nowhere\ else. The Superintending Engineer
is required to make it his special duty to see that measurement books are carefully kept and
measurements properly recorded, and that they are complete records of the actual
measurements of each kind of work done for which certificates have been granted. Every
officer or subordinate in charge of a work carried out under contract should furnish to the
Divisional officer at the beginning of each month a progress report of the measurement,
and calculation of quantities of work paid for during the previous month.
185. In accordance with Para-12, 84 & 88 of GFR Vol-I, the Principal Accounting Officer is
responsible to keep the total expenditure within the limits of authorized expenditure and the
funds allotted to spending units are expended in the public interest. He must be in a
position to assume before government and PAC complete responsibility for departmental
expenditure. The authority administering a grant is ultimately responsible for watching the
progress of expenditure on public service under its control and for keeping the expenditure
within the grant.
186. In accordance with para-9 of GFR Vol-I, no authority may incur any expenditure from
public funds until the expenditure has been sanctioned by general or special orders of the
president or by an authority to which power has been duly delegated in this behalf and the
expenditure has been provided for in the authorized grants and appropriation for the year.
187. Para-9 of GFR Vol-I provides that no authority may incur any expenditure from public fund
until the authority to which powers have been delegated has sanctioned the expenditure and
the expenditure has been provided in the grant for the year.
188. In accordance with para-94 of GFR Vol-I savings from completed schemes/non executed
schemes were required to be refunded to government account.
189. According to the provisions of Para-12 of GFR Vol-I, funds provided should be spent on the
purpose for which allocation has been made
190. Escalation should have been paid in accordance with contractual requirements.
191. According to the Finance Department letter No.B1/1-7/94-95/FD dated 15/10/1998, no work
will be approved in excess of 45-50% premium on the schedule of rates 1993.
192. Para-210 of GFR Volume-I read with Government of NWFP Finance Department
instructions issued on the subject of discretionary grant provides that all such expenditure
will be regulated by specifying the objects for which the grants can be made and any other
condition that should apply.

193. Para-106 of GFR Vol-I, provides that the drawing and disbursing officer may not on his own
authority authorize any expenditure in excess of the budget placed at his disposal.
194. Finance Department letter No.T-1578/PLA/DD/AGRI/471-88 dated 20.2.2002 provides that

no money should be drawn from the PLA and deposited elsewhere.
195. Finance Department letter No. SO (A/C) FD/2-3/97 dated 26.4.1997 requires that
expenditure on overhauling, purchase of batteries, tyres and repair over and above
Rs.15,000/- must be supported with an NOC from the Technical Officer of administration
department and Motor Vehicle Examiner, Peshawar.
196. According to the instructions issued by CBR vide letter # F.1.167(1)ITP/2001-EC/SAL

dated 04.07.2001, income tax was required to be recovered from the salaries of the officers.
197. In accordance with Finance Department letter # FD(PRC)1-1/1999 dated 22.11.1999 and
even # dated 10.08.2002, read with clause-3(9) of contract agreement, contract employees
are not entitled to the annual increment and Special Additional Allowance.
198. According to para-89 (3) (viii) of GFR Vol-I, reconciliation should be made monthly with
the treasury/DAO concerned.
199. NWFP Finance Act, 1995, provides that the stone crushing machines should be registered
with Industries Department and registration/renewal fee shall be paid to government at the
rate of Rs.2000/- per machine.
200. Finance Department letter # SO(FR)/FD/9-1/2001, dated 27.12.2002 asks for fulfillment of
all codal formalities for medical reimbursement charges.
201. Sales Tax Ordinance, 1999 and Section 50(4) of Income Tax Ordinance, 1979 provide that
15% sales tax and 3.5% income tax should be deducted from the supplier’s bills.
202. According to Article 14(2)(3) of Auditor General of Pakistan ordinance 2001, auditable
record should be produced to audit for scrutiny and in case of any hindrance created by the
auditee formation, disciplinary action shall be taken under Efficiency and Disciplinary
rules 1973.
203. Para-166 of G.F.R Vol-1, provides that prior sanction of the competent authority should be
obtained for the writing-off losses, deficiencies or depreciation in the value of store.

Similarly, para 20 asks for reporting all losses caused by defalcation or otherwise to
Director General Audit.
204. According to para-2 (viii) of G.F.R Vol-I, and note to the para ibid, all loans raised by
government will form part of the consolidated fund and withdrawal of money there from,
shall be regulated by the Act of Parliament.
205. Para-399(iii) of CPWD provides that balances for more than 3 complete account years
should be credited to government as lapsed deposit.
206. Para-151 of GFR Vol-I provides that head of an office or any other officer entrusted with
store of any kind should maintain a suitable account and inventories and prepare correct
return in respect of stores in his charge with a view to prevent losses through theft,
accident, fraud or otherwise and to make it possible at any time to check actual balances
with book balances.
207. Under Rule-28 (2) and 205 of the Treasury Rules Vol-I, a government officer entrusted with
payment of government money is responsible for seeing that payments are made to persons
entitled to receive these payments.
208. Clause-20 (e) (f) of the contract agreement executed with the contractor for the work
“restoration of Spur # 19&27” requires that boulders for road metal will be measured after
breaking as road metal, boulder for road bottoming will be measured after incorporation in
the work and when either of the above method of measurement of boulders collected is
impracticable, boulders will be stacked not less than 03 feet high and deduction 2 15% will
be made from gross measurement as void.
209. Para 3.12 of Execution of Works Rules, Accounting Manual of SHYDO requires that cash
book through which all receipts and payments are routed should be maintained and book
balance reconciled with balance shown in the bank statement at the end of the month.
Besides, payments made to or, funds received from are also required to be reconciled with
the parties concerned.
210. According to Rule-24 of Appendix-A Para 144 (R-24) APP 9 of G.F.R VoI-I , open tender
system i.e. invitation to tender by public advertisement must be adopted, in all cases in
which estimated value of tender is Rs:40,000/-.

CPWA Code
211. According to Para 228 of CPWA Code read with Finance Department Order No.SO(Dev-II)
12-15/2003-04/FD dated 28-06-2004, mobilization advances shall not be granted as a
matter of right. It shall be granted when absolutely necessary in public interest. The
sanctioning authority for mobilization advance shall be the Administrative Secretary. The
extent of mobilization advance should be determined by the Administrative Secretary
keeping in view the requirements of the project and sites. It should not be more than 2% of
the project cost or Rs.3.000 million which ever is less. Mark up at the rate of 8% per
annum will be charged on the advance. Recovery of the advance with mark up shall be
effected in five equal installments from the 1st five running bills or from the final bill if
running bills are less than five.
212. According to Para 228 of CPWA Code, advances to contractors as a rule prohibited and
every Endeavour should be made to maintain a system under which no payments are made
except for work actually done. Recoveries of advances made should not be postponed until
the whole of the work entrusted to the contractors is completed but they should be made
from his bills for work done as materials are used.
213. Para 395 of CPWA code requires that no security deposit should be repaid or retransferred to
the depositor without special orders of the competent authority except in accordance with
the terms of agreement or bond.
214. Para-208,209(d),220&221 of CPWA code provides that payments for all works should be
made on the basis of measurements recorded in the measurement book.
215. Provision of para-56 of the CPWA code requires preparation of proper estimate for technical
sanction of competent authority for execution of repair/construction work while S# 17.3(d)
of the 3rd schedule has vested the power of technical sanction of the construction work to
the IGP Peshawar.
216. Para-360 & 304(a) of CPWA code requires that items in the Miscellaneous P.W. Advances
accounts be cleared either by actual recovery or by transfer, under proper sanction of
authority, to some other head of account. Items or balances, which may become
irrecoverable, should not be so transferred until ordered to be written off. Periodically all
the personal accounts in he ledger should be examined to see that balances do not remain
outstanding for a long time without justification.
217. Para-353&354 of the CPWA code requires that general account of the receipts, issues and
balances of stock should be maintained in form-67 and at the end f each year, an account of
surplus or deficit store prepared.
218. Para-209 (d) of CPWA code provides that all payments for work or supplies are based on the
quantities recorded in the measurement book, it is incumbent upon the person taking the
measurement to record the quantities clearly and accurately.

219. Para-353&354 of the CPWA code requires that general account of the receipts, issues and
balances of stock should be maintained in form-67 and at the end f each year, an account of
surplus or deficit store prepared.
220. Para-111(1) of CPWA code provides that in case of deposit work, design and estimate of
each work will be drawn up in communication with the party depositing or administering
the funds, and must be submitted for the technical sanction of such department authority.
CPWD Code
221. Para-89 and 65 of the CPWD code read with S# 7.1 of the 3 rd Schedule of Delegation of
Financial Power Rules 1981 as revised in 1992 provide that where works are to be given
out on contract tender must be invited in the most open and public manner. The agreement
with the contractor should be definitely expressed, stating the quantity and quality of the
work to be done. The expenditure over the amount for which Administrative Approval has
been accorded does not exceed 10%. In case it does exceed, fresh administrative approval
will be required.
222. In accordance with para 95 of CPWD Code, a Divisional Officer is strictly prohibited to
deviate from sanctioned design in the course of execution of work. Paras 56 and 58 of
CPWD Code provide that technical sanction is a guarantee that the proposals are
structurally sound and that the estimates are accurately calculated and based on adequate
data. Proper detailed drawings & design have been sanctioned. Para 89(c) of the code
provides that the agreement with the contractor should states the quantity and quality of the
work to be done, the specification be complied with.
223. According to paras 56,58 and 95 of CPWD Code, proposals in the estimates must be
structurally sound and estimates are accurately calculated and based on adequate data.
Work should not be commenced until administrative approval and a properly detailed
design have been sanctioned. A public officer is strictly prohibited to deviate from
sanctioned design in the course of execution of work.
224. In accordance with para 95 of CPWD Code, a divisional office is strictly prohibited to make
deviation from sanctioned designs in the course of construction. Premium should not be
allowed on non BOQ items.
225. Para 56 of CPWD Code provides that the proposals in the estimates should be structurally
sound and that the estimates are accurately calculated and based on adequate data.
226. In accordance with para-95 of CPWD Code, a Divisional Officer is strictly prohibited from
commencing the construction of work in deviation from sanctioned design in the course of
execution.
227. Para-58 of the CPWD code read with para-178 (iii) of GFR Vol-I provide that no work
should be commenced until administrative approval has been obtained, and a properly
detailed design and estimate have been sanctioned.

228. Para-40 of the CPWD code requires that Divisional Officer is responsible for the execution
and management of all works within his Division. And para-10 of GFR Vol-I says that
every public officer is expected to exercise the same vigilance in respect of expenditure
incurred from public money, as a person of ordinary prudence would exercise in respect of
expenditure of his own money.
229. Para-111(1) of the CPWD code provides that in case of deposit works, design and estimate
will be drawn up in consultation with user department. Then it should be submitted for
technical sanction of such departmental authority as the extent of estimate 0would require
in the case of technical sanction to an ordinary central work. Besides S.No.21 of the 2nd
Schedule of the Delegation of Power Rules 2001, further requires that sanction of the Chief
Secretary is required to incur expenditure on ceremonial functions and entertainment
exceeding Rs 25,000/-.
230. Para-112 of the CPWD code read with item No.13 of appendix 8 of GFR Vol-II provides
that every public building should be provided with all necessary fixtures. However, the
electric, gas and water charges of the residential buildings shall be borne by the users.
231. Para-125 of CPWD code provides that store should be purchased only for works in progress
and no reserve stock should be kept except with the specific sanction of and to a money
limit prescribed by the government.
Finance Department Notification

232. According to Finance Department Notification No.FD(SRN08/2/70 dated 21-03-1995, the
employees who have been allotted/provided government accommodation are not entitled to
house rent allowance.
233. According to Finance Department letter No.FD(PRC) 1-1/99 dated 22-11-99 and even No
dated 10-08-2002 contract employees are not entitled to the Special Additional Allowance.
234. Finance Department letter No. SOSR-III/FD/I-27/2003 dated 23-04-2003 states that in order
to maintain uniformity and strict financial discipline within the province, all the
universities in NWFP must follow the provincial government’s pay package and other
financial policies and must not adopt independently any policy without the concurrence of
the provincial government.
235. In accordance with Sr. no. 5(ii) of Finance Division Regulation Wing O.M. No. F-1 (2)
IMP/94 (i) dated 15.6.1994, 45% house rent allowance is admissible to employees working
in Peshawar City, whereas in all other districts, employees are entitled to 30% of the
minimum time pay scale.
236. According to Finance Department NWFP letter No. SoR-III(FT) 2-64/98/FED Taxes dated
16-03-1998, 5% collection charges would be deducted from Federal Taxes by the
provincial government.

237. According to Finance Department letter No. FD(SOSR-(II)12-1/2002 dated October 26,
2002, pay in case of first appointment would be minimum of relevant pay scale as per
contract policy. This condition would be subject to relaxation by competent authority in
case of higher qualification and expense. It is further provided that all those appointments
where enlarge salaries and privilege packages are involved should be made by competent
authority in consultation with Finance Department.
238. Government of NWFP, Finance Department letter No. BO(RSF)FD/2-64/FFD dated 15-04-
04 provides that 5% collection charges on all Federal Taxes are to be deducted and
deposited into the provincial exchequer.
239. According to Finance Department orders circulated through the government of NWFP,
Works & Services Department No.35-Bud/99-2000/195-200 dated 02-08-1999, the rates of
stamp duty on contracts for execution of works were enhanced w.e.f. 01-07-2001.In
accordance with para 26 of G.F.R, no amount due to government should be left outstanding
without sufficient reasons.
240. Government of NWFP, Finance Department has approved 15% premium over schedule of
rates, 1999 vide No.BO1/1-17/2003-04/FD(CSR) dated 12-04-2004.
241. Finance Department letter No.FD/(SR-II) 2-1/78-Vol.V dated 15TH February 1987 requires
that recovery @ 5% of pay shall be made from the Government Servant who has been
provided Government residential accommodation.
242. The Government of NWFP Finance Department has imposed complete ban on detailment
vide letter No.FD/S-1/7-40/97 dated 22-06-1999.
243. Finance Department letter No.FD/(SR-II) 2-1/78-Vol.V dated 15TH February 1987 requires
that recovery @ 5% of pay shall be made from the Government Servant who has been
provided Government residential accommodation.
244. 5% collection charges in terms of Finance Department N.W.F.P letter No. BO (RFS) FD/2-
64/04/EED: TAXES dated.15/04/2004 had to be deducted from the total amount collected
under the head of income tax from salaries, suppliers and the like... and then this amount
would be credited to the provincial Government Exchequer.
245. Non-deduction of house rent and 5% deduction over house rent on the government
accommodation is the violation of Finance Department letter No. SO(SR-2)8-2/70/RC
dated 21-01-1993 provides that house rent allowance shall not be drawn for the officials
who have been provided government accommodation and 5% deduction should be made
from the pay of those officials. 5% Income tax should be deducted from the bills of
contractors in light of income tax Ordinance, 1979.
246. The Government of NWFP, Finance Department has approved 55% premium on Schedule of
Rates 1993 vide # 60008-28 dated 03.05.1997.
247. According to Supreme Court’s judgment 531 given in case of Israrul Haque & 23-Others
versus Islamic Republic of Pakistan, when a government servant is appointed or transferred
to a post in a department or service altogether different from the one to which he
permanently belongs, he is considered as deputationist (extract from PLD 1981 SC 531 S#

26 P# 375 of ESTA Code 2000).
248. Para 209 (ii) of GFR Vol I provides that the balance amount in the Grant-in-Aid should be
credited to Government account at the close of financial year.
249. Section 37.3 of the University of Peshawar Act 1974 requires that the annual financial
statements of the University duly signed by the Treasurer and resident auditor shall be
submitted to government within six months of the closing of financial year.
250. According to Sr. no. 4 & 10 of the revised policy framed under Frontier Education
Foundation Act III 1992, only those students would be eligible for the award of
scholarships who are domiciled in NWFP and are studying in recognized/registered private
or government educational institutions of NWFP, located in settled areas. Moreover, the
scholarship will not be admissible to those who are admitted on self-finance basis.
251. In accordance with Sr. no. 5(ii) of Finance Division Regulation Wing O.M. No. F-1 (2)
IMP/94 (i) dated 15.6.1994 (BPS 1-22) read with minutes of 63 rd meeting of Syndicate,
45% house rent allowance is admissible to employees working in Peshawar City, whereas
in all other districts, employees are entitled to 30% of the minimum time pay scale.
Similarly, in the Syndicate meeting of the Gomal University the member representing
Higher Education Commission in the Finance and Planning Committee clarified that the
financial directives of the federal government are to be followed in all matters where funds
are provided by the Federal Government through the Higher Education Commission.
252. Article 14(2&3) of the Auditor General’s (Functions, Powers, Terms and Condition of
Service) Ordinance, 2001 read with para 17 of GFR vol I requires that no such information
nor any books or other documents to which the Auditor General has a statutory right of
access may be withheld from the Director General/Accountant General.
253. According to FR-19 the fixation of pay is within the competence of a local government,
provided that except in the case of personal pay granted in the circumstances defined in
FR-9 (23)(a), the pay of a government servant shall not be so increased as to exceed the
pay sanctioned for his post without the sanction of an authority competent to create a post
in the same cadre on a rate of pay equal to his pay when increased.
254. According to clause 5 of the general conditions of auction, announced on spot at the time of
auction of timber, it was required that 1/4th of sale value would be deposited by the
successful bidder on the same date and the balance amount be deposited within 07 days.
255. According to S.No.12.7 of the 3rd schedule of NWFP Delegation of Powers under the
Financial Rules and Power of Re-appropriation Rules-2001, the Divisional Forest Officer is
competent to incur expenditure upto Rs.500,000 on sowing, planting etc. under 517-
Forestry development and non development budget.

256. According to Government of NWFP Agriculture, Food & Forest Department, notification
dated 14th March 1972; proportionate share out of royalty between the locals and
government is 60:40 respectively.
257. Clause 11 of contract agreement executed between Forest Department and Forest
Development Corporation in July 1991 requires that where Forest Development
Corporation seeks extension for completion of contract, extension fee upto 1% of the
balance value of contract, shall be paid.
258. In accordance with para 8 of auction conditions, if the purchaser fails to deposit sales value
within stipulated period i.e. 30 days after the date of acceptance, his 1/4 th security would be
forfeited in favour of government.
According to Rule-12 of GFR Vol-I, a controlling office must see that the funds allotted to
spending units are expended in the public interest and upon objects for which the money was
provided.
259. According to government of NWFP Forestry, Fisheries and Wildlife Department notification
# SOFT-1(FFD)V-177/87/Vol-V dated 14.05.1997 renewal fee of saw machines was fixed
as Rs.3000/- per annum.
260. According to Section-50 (4) of the Income Tax Ordinance 1979, 2% extra income tax is
recoverable from persons having no National Tax Number (NTN).
261. According to section 9(1) read with section 2 (a) of the Removal from Service (Special
Power) Ordinance 2000 & ancillary instructions, a person on whom a penalty is imposed
under section 3, may within 15 days from the date of communication of the order prefer a
representation to the officer or authority not below the rank of appointing authority
prescribed for the post held by the person against whom the action is taken.
262. Para 20 read with Para 23 of GFR Vol. I provide that every public officer is personally
on the part of his subordinate. The loss shall also be reported to audit
263. According to Finance Department letter No. FD (SR-V) 2-122-83 Vol-III dated 6 th February
1993, non-practicing allowance, teaching allowance and motorcar maintenance allowance
is not admissible during seasonal vacations.
264. According to government of NWFP Health Department notification No. SOH(V)1-1/92

dated 2nd September 1996, 60% of user charges collected are required to be credited to
government revenue being its share.
265. According to the Chief Executive, Khyber Teaching Hospital Peshawar, order No.
5878/KTH /PA dated 5th June 2004 Rs.1000/- per air conditioner per room were required to
be charged on account of electricity charges from the occupants of flats who used the
facility, for five months.

266. S.No.20 (Note 3) of the 2nd schedule (power common to all departments) of the Delegation
of Power Rules 2001, requires that TA claim more than 3 years old and claim of arrear of
pay and allowances other than TA more than six years old requires the sanction of Finance
Department.
267. According to Para 360 of CPWA code, items in the Misc. Advances account are cleared
either by actual recovery or by transfer, under proper sanction or authority, to some other
head of account. Items or balances which may be irrecoverable should not be so transferred
until ordered to be written off.
268. The government of NWFP had not allowed escalation on Composite Schedule of Rates
(CSR) 1999 during 2001-02.
269. The government of NWFP Finance Department vide letter No.B1/5-17/97-98/Fd dated 20 th
January 1998 on recommendations of the Public Accounts Committee has discontinued the
charging of POL/Repair and maintenance of government vehicles to developmental/
maintenance works.
270. Recovery of interest on mobilization advance and principal amount was required to be made
in term of Finance Department letter No.10-15/FD dated 24th April 1984.
271. Collectorate of Sales Tax & Central Excise, Peshawar vides his letter No.
ST(Tech)/Government (31)/200/12379 dated 19-10-2001 issued instructions that all Govt.
Semi Government Defense Department, DFIs, Banks etc are required to purchase taxable
goods from persons registered with Sales Tax Department. And the bills of unregistered
firms may not be entertained.
272. According to the Income Tax department letter No.IAC/R-II/coys-z/98-99/546 29-09-

98 that all types of suppliers and purchase of goods required deduction of Income
Tax on the prescribed rate i.e. 3.5% from the payments made on account of supplies
and purchases.
273. Income department vide their letter No.50 (7B) 1 dated 24-07-96, the rate of deduction of
income tax from rental income of house property under section 50(7B) has been increased
from 5% to & 7.5% to be deducted from payment to owner with the condition to recover or
make deficiency good if deduction has not been made according to new rates in the
previous months i.e. from July 1996.
274. According to the Sales Tax Act 1990 section 2(47), 14 23 and provision of section 7.1 (b) &
Provision No. 2 of Section 7-11 (a) of the Finance Act 1998 read with Sales tax department
letter No. ST (Recovery)/71/99/3279 dated 24-03-1999, Provide that the deduction of the
sales tax @ 15% from registered suppliers and 16% from non-registered suppliers
respectively.
275. According to the Govt. of N.W.F.P. Health department Notification circulated vide No. SO
(B) Health /10/12/3-4/user charges, dated 13-04-2005. that the existing formula of user
charges is revised in the hospital as deduction of 5% of depreciation cost, before the further

distribution of Govt. share, doctors, Paramedics, Admn, setup and Maintenance / repair i.e.
60%, 25%, 10%, 2% & 3%.
276. Rule 12 of Civil Servants (appointment, promotion and transfer) rule 1973 states that, “ a
candidate for initial appointment to a post must possess the educational qualification and
must be within the age limit as laid down for the posts.
277. Para 31 of GFR Vol. 1 provides that when the maintenance of any rentable building is
entrusted to a civil department the head of the department concerned will be responsible for
assessment and recovery of the rents of such building.
278. According to the Health Department letter No. SO(D) Health/2-43/2000, dated 24-1-2001,
the local purchase of life savings drugs was allowed upto 10% to be made through
purchase committee within the budget under relevant object, and
279. Govt. of NWFP Health Department letter No. SO(Vi)2-11/90-91, dated 2-7-1997, imposed
ban on provision/issue of medicines to O.P.D. patients.
280. Term & conditions of the Agreement Deed executed with M/S Ayaz traders, for the year
2003-04 were violated.
281. According to the Health Department letter No. SO(D) Health/2-43/2000, dated 24-1-2001,
local purchase of life saving drugs was allowed upto 10% to be made through purchase
committee within the budget under relevant object, read with:-
282. In term of Govt. of NWFP Finance Department order No. SOH(V)/11-1/97/FIC, dt. 7-5-
1997 the cardiology Department has been incurring expenditure from its receipt since 07-
05-1997.
283. Under Article-27 of Health Department notification circulated vide No. SOH (ii)3-15/2001
dated 26-6-01, all purchases of goods and services shall be made within the budgetary
allocation and after administrative approval of the competent authority.
284. Para-1.58 of B&R revealed that only Deputy Director Works (XEN) is authorized to
supervise the execution of work and to see that they are suitably and economically carried
out with materials of good quality.
285. Para-280 of CTR provides that all charges actually incurred, must be paid and drawn at
once, and under no circumstances be allowed to be paid from the grant of another year.
286. Para-96 of GFR Vol-I states that is contrary to the instead of the state that money should be
spent hastily or is an ill considered manner merely because it is available or that the laps of
a grant could be avoided.

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Prepared by Anwar Zeb, Senior Auditor

CRITERIA FOR ADVANCE PARAS

1. According to para-7 of Central Treasury Rules, all moneys received on behalf of

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77. According to Government of NWFP Health Department Notification No.SOH(V)1-1/92

82. In accordance with Government of NWFP Health Department Notification No.SO1(V)1-

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86. In term of Government of NWFP, Health department Notification No.6-117/SPO/PC-1-

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97. According to Government of NWFP S&GAD Notification No.DSA(G/GAD)6-2/98

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145. Para-8 GFR Volume-1 provides, it is the duty of administration/revenue department to

148. 95% compaction is not possible in ramming of earth.

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amount drawn is duly paid to person entitled to receive it.

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175. According to existing recruitment rules circulated vide notification No.S.O(P-I)HD/13-1/83

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194. Finance Department letter No.T-1578/PLA/DD/AGRI/471-88 dated 20.2.2002 provides that

196. According to the instructions issued by CBR vide letter # F.1.167(1)ITP/2001-EC/SAL

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Finance Department Notification

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permanently belongs, he is considered as deputationist (extract from PLD 1981 SC 531 S#

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264. According to government of NWFP Health Department notification No. SOH(V)1-1/92

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272. According to the Income Tax department letter No.IAC/R-II/coys-z/98-99/546 29-09-

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