This paragraph provides an introduction to an audit conducted in relation to the retirement of Mr.

Saeed
Ahmad, the Principal, from May 2021 to November 2024. It begins by referencing legal provisions for
auditing, such as Section-14 of the Auditor General Ordinance 2001, Para-17 of General Financial Rules
(GFR) Vol-1, and Para-72 of the Central Public Works Account (CPWA) code. These regulations mandate
the production of auditable records for verification, the need for vouchers with clear details for proper
classification of payments, and the accountability of government officers for losses due to fraud or
negligence.

The audit encompasses a review of various accounts such as Government funds, Pupils Fund, PTC,
Conditional Grant, MPA Fund, Stipend, and Sport Fund. The audit is conducted in line with Para-13 of
GFR Vol-1, specifically to issue a No Demand Certificate related to the retirement of Mr. Saeed Ahmad.
The paragraph concludes by noting that any observations from the audit are recorded in the subsequent
section.
Para-02: Explanation Based on Rule 77(i) of CTR
According to Rule 77(i) of the Central Treasury Rules (CTR), any officer receiving money on behalf of the
government is required to:
1. Maintain a cash book using Form TR-4.

2. Record all monetary transactions in the cash book immediately as they occur.

3. Ensure that the entries in the cash book are attested by the Head of the Office as a token of
verification or check.

Observations Regarding the Cash Book

Upon checking the cash book of the Drawing and Disbursing Officer (DOO) for the period starting from
May 2021 (05/2021), the following points were noted:
The cash book has been maintained since May 2021, indicating that entries have been recorded during
this period.
The cash book reflects a Nil Balance, which means that no outstanding balance is recorded in the cash
book as of the most recent entries.

Noted Irregularities

While maintaining the cash book, the following irregularities were observed
Para-03: Explanation Based on Para-23 of GFR Vol-1

Para-23 of the General Financial Rules (GFR), Vol-1, provides that every government officer must:

1. Realize fully and clearly that they will be personally held responsible for any loss sustained by the
government due to fraud or negligence, whether it occurs on their part or on the part of their
subordinate staff.

Irregularities in A.C. Bills

During the checking of contingencies records, the following irregularities were observed in the Drawing
and Disbursing Officer’s (DDO) handling of funds. The amounts drawn from the government treasury
and recorded as expenses on various items were noted. However, the following observations require
rectification with proper documentary proof for audit purposes:

PARA-04: Completion/Satisfactory Certificate Based on Para-72 of CPWA Code and Rule 77(ii) of CTR

Para-72 of the Central Public Works Account (CPWA) Code requires that:

All payments must be supported by vouchers that clearly detail the full particulars of the claim and
provide sufficient information for proper classification and identification in the accounts.

Additionally, as per Rule 77(ii) of the Central Treasury Rules (CTR):

Every officer receiving money on behalf of the government must maintain a cash book in Form TR-4,
with all monetary transactions recorded immediately as they occur and attested by the Head of the
Office to ensure proper checking.

Observations on PTC Accounts Record of GHSS Shinkiari Mansehra.

During the audit of PTC (Parent-Teacher…

Para-05: Irregular Drawl of Double Shift School (DSS) Amount and Observations

During the audit of the Double Shift School (DSS) program at Mansehra, the following key observations
and irregularities were noted:

Irregular Drawl of DSS Amount (Rs. 604,000 + 711,910)

Several amounts were drawn from the government treasury under the DSS salaries and other expenses.
However, significant audit observations were made regarding the utilization and management of these
funds.

Cheque Details

1. Cheque No. & Date: 1307953 (22.03.2003)

Amount: Rs. 604,000 Object: DSS Salaries & Others

2. Cheque No. & Date: 1123458 (19.06.2023)

Amount: Rs. 594,000

3. Cheque No. & Date: 1463198 (13.06.2024)
Amount: Rs. 711,910
Audit Observations
1. No Selection Criteria: No for…
Audit Findings and Recommendations
Para-09: Financial Discrepancies and Missing Documentation
1. Pupils Fund Observations:
June 2021 (Rs. 42,495): Shown as incurred on repair of doors, windows, etc., which is not allowed under
the rules. No approval from the competent authority was obtained.
June 2021 (Rs. 228,000 - 4,600 - 1,400): Amount drawn from Pupils Fund but not recorded in the Fund
register, and the whereabouts of the amount are unknown.
July 2021 (Rs. 79,975): Amount collected but not deposited into the Pupils Fund account.
August 2021 (Rs. 890,015): Amount collected but not deposited into the Pupils Fund account.
Required Actions:
The DDO must explain the discrepancies in the above entries and provide supporting documents to the
audit, inc…
: Audit Findings and Required Actions for Compliance
Para-12: Other Liability Certificate

Required Certificate: The District Education Officer (DEO) of Mansehra is required to issue a No Liability
Certificate for Mr. Saeed Ahmad, Principal of GHS Shinkyari, Mansehra, who is retiring on 14-08-2025.

Certificate Format:
It should state that no liability exists against Mr. Saeed Ahmad in any
Departmental/Anti-Corruption/Judicial case, and that no advance/draft para is outstanding against him
during his period as a Drawing and Disbursing Officer (DDO).

It should also confirm that he has not served as DDO in any other school except GHS Shinkyari,
Mansehra.
Required Action:
DEO (Male), Mansehra, must issue the certificate and submit it to the audit office wit…
Para-14: Physical Verification

Requirement:
As per GFR-Vol-1 Para-148, all materials or goods received by the school must be:
Examined, counted, measured, or weighed when delivered.
Properly recorded in a stock register by a responsible Government Officer.

The Officer must issue a certificate confirming that the items received match the delivery in quantity and
quality, and are entered into the appropriate stock register.

Audit Observations:
During the audit, it was found that the retired Principal/DDO had not maintained proper stock registers
for:

Science equipment

Library materials

Furniture

Sports items

IT equipment
Free Textbooks

Stipends

As a result, Annual Physical Verification of the store/stock, as required by Para 159 of GFR Vol-1, was not
conducted by the DDO or District Education Department (DED)

Para-15: Library Certificate

Requirement:
A Library Certificate is required, which should confirm the following:
No books are missing or due from any officer or official of the institution.
All the library books that have been purchased have been properly recorded in the stock register.
The books must be listed in alphabetical sequence.

The certificate should also confirm that all these books are physically available in the school library.

Required Action:

The DDO (or Principal) must issue the Library Certificate, ensuring that the books are recorded and
available as described.

The certificate should be attached with the annotated replies and submitted to the audit for verification.
This will help ensure that proper accountability is maintained for the library books and that no
discrepancies exist regarding their availability or the persons responsible for them.
Para-16: General Observation on Account Maintenance

Observation:
It has been noted that, subject to the previous observations outlined in the report, the accounts record
of the government institution (in this case, the local institution) has not been maintained satisfactorily.

Required Action:
The DDO (or Principal) is expected to ensure that the accounts are properly maintained in accordance
with the required rules and regulations.
The necessary corrections should be made to address the identified issues and improve the overall
financial management of the institution.

Detailed annotated replies, along with supporting documentary proof, should be provided to the audit
office for further review.
This emphasizes the importance of maintaining accurate financial records and ensuring compliance with
government regulations to avoid any future issues or discrepancies in the financial management of the
institution.