finance department notification-2004 (205-258)

Compendium of Instructions for Local Governments 205

No. IT(FD)3-9/2003GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 3rd January, 2004

Subject: REQUEST BY GOVERNMENTAL ORGANIZATIONS AGENCIES FOR WAIVER OF USER CHARGES IMPOSED BY THE PUNJAB GOVERNMENT.

Sir,

I am directed to refer to the subject noted above, and to say that the Punjab Government has prescribed user charges for provision of goods and services to public and private sector at the prescribed rates and on agreed terms/conditions.

2. It has, however, been observed, stated that there is a growing tendency on the part of governmental organizations/agencies of the Federal Government and other Provincial Governments to seek a remission of user charges imposed by the Punjab Government.

3. In order to obviate such situations, it has been decided, after approval from the competent authority, that requests for waiver of provincial user charges by Federal/Provincial governmental agencies/Armed Forces may be discouraged, and that such financial arrangements may strictly be undertaken as prescribed under Rule 2.36 of the Punjab Financial Rules (PFR) Vol-1, read with Appendix 4 of the PFR Vol-11. Any case not covered under these rules may be referred to the Finance Department for advice.

----------

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

FINANCE DEPARTMENT

Dated Lahore, the 6th January, 2004

Subject: CONFERRING OF DDO POWERS TO THE OFFICERS OF DISTRICT GOVERNMENT UNDER THE PUNJAB DISTRICT GOVERNMENT AND TEHSIL MUNICIPAL ADMINISTRATION (BUDGET) RULES, 2003.

Kindly refer to this department’s letter No. PS/AFS(M)/2001, dated 11.8.2001, inter-alia clarifying that the officers of the decentralized departments under the District Governments shall continue to exercise the existing powers of the Disbursing Officers (for expenditure) and Collecting Officers (for receipts) as already prescribed in Appendix D of the Punjab Budget Manual. However, in case of change of nomenclature of the post or creation of a post with a new nomenclature, the DDOs/COs would be notified afresh. The District Coordination Officers were meanwhile authorized to confer powers of Drawing & Disbursing Officers to the officers of the District Governments, where

206 Finance Department

necessary. This authorization was last extended up to 31-12-2003.

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

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

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

----------

No.IT(FD)3-13/2002GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 7th January, 2004.

Subject: FINANCIAL PROCEDURE FOR SCHOOL COUNCILS TO INCUR EXPENDITURE ON INFRA-STRUCTURAL IMPROVEMENTS IN SCHOOLS UPTO RS.2,00,000/-

Sir,

1 am directed to refer to the subject cited above, and to enclose a copy of the financial procedure formulated by the Finance Department in the matter of incurrence of expenditure by the School Councils on infra-structural improvements and other expenditures upto Rs.2,00,000/-. In this regard consultation was also done with the Accountant General, Punjab who, however, suggested that such operations may be done in the governmental mode, a position which is not acceptable to the donor. The AG(Pb) has been informed accordingly.

2. This procedure is, therefore, being notified as such by the Finance Department.----------


Annex-ALeft Hand Page

CASHBOOK OF SCHOOL COUNCIL

Month ______________________

RECEIPTSSr. No.

Date Full Particulars of receipt Amount (cash /

cheque)

Total Initial of DDO

Total _____________

Right Hand Page

Bank Account No.of School Council_________________________

Month ____________________

PAYMENTSSr. No.

Date Full Particulars of Payment Amount (cash /

cheque)

Amount Initial of DDO

Signatureof Head of institution ________

Closing Balance __________


FINANCIAL PROCEDURE FOR SCHOOLS COUNCIL

Following financial procedure shall be observed by the School Council (SC) in the respective District Government.

SOURCE OF FUNDING

(i) The funds to the School Council shall be transferred from PCF A/C No.1 to Account IV of respective District Government as a tied budgeted grant-in-aid.

(ii) The District Governments shall be required to budget the allocation each S.C.

(iii) Each School Council shall maintain a commercial bank account to be jointly operated by the Head Master of the School and a designated member of School Council.

(iv) The Executive District Officer (Education) of the respective District Government shall accord financial sanction for the transfer of funds from Account IV to the bank account of the School Council. These funds shall be transfer credited up-front in the bank account of the School Council by the DAO without any pre-audit etc.

FINANCIAL PROCEDURE

(1) The funds shall only be spent by the School Council on the purposes as prescribed including minor civil works upto Rs.200,000/-

(2) All expenditure shall be incurred with the prior approval of the School Council.

(3) All purchases /execution of work shall be carried out by the School Council in a transparent and economical manner.

(4) The Head Master, on behalf of the School Council shall maintain the accounts of receipts and expenditure on simple cash book in the prescribed format. (Annex-A)

(5) The cash book and allied details / vouchers shall be verified and approved by the School Council in a special meeting on a 6 monthly basis i.e. by 15th January and 15th July.

(6) The couched accounts shall be subject to inspection by the functionaries of the education department and to third party validation.

(7) The expenditure of the School Council shall not be subject to the provision of Financial Rules / Purchase Procedure of the Government.

(8) The expenditure on Civil Works shall be market based and shall be incurred by exercising general financial prudence.

----------


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

FINANCE DEPARTMENT

Dated Lahore, the 14th January, 2004

Subject: SETTLEMENT OF AUDIT PARAS.

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

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

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

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

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

(ii) The Proposed draft paras/Advance paras and Audit observations pertaining to the period prior to devolution, of the decentralized offices, if already discussed and settled, in the prescribed manner, by the District Accounts Committee, may be considered as validly settled.

5. I am further directed to request you to get conducted the audit, if yet not undertaken, of the accounts of Drawing & Disbursing Officers/Collecting Officers


pertaining to the period prior to devolution with regard to the offices decentralized, after making special arrangements with Audit Authorities auditing the accounts of provincial component.

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

FINANCE DEPARTMENT

Dated Lahore, the 14th January, 2004NOTIFICATION

No. FD(FR)11-5/82. In exercise of the powers conferred on him under Article 119 of Constitution of Islamic Republic of Pakistan 1973, the Governor of Punjab, is pleased to direct to insert, with immediate effect, the following new entry in Offices in Category-I of Part-I of First Schedule to Delegation of Financial Powers Rules, 1990.

Amendment“Head of Project Management Unit, attached with S&GAD, as Category-I Officer.”

The above mentioned officer shall exercise the financial powers as given in Part-I, Powers Common to All Departments of Second Schedule to Delegation of Financial Powers Rules, 1990.


FINANCE DEPARTMENT

Dated Lahore, the 19th January, 2004NOTIFICATION

No. FD(FR)11-5/82. In exercise of the powers conferred on him under Article 119 of Constitution of Islamic Republic of Pakistan 1973, the Governor of Punjab, is pleased to direct to insert, with immediate effect, the following new entry in Office in Category-I of Part-I of First Schedule to Delegation of Financial Powers Rules, 1990.

Amendment“Chairman Drug Courts, attached with Health Department, Government of the Punjab, as Category-I Officer.”



FINANCE DEPARTMENT

Dated Lahore, the 9th March, 2004NOTIFICATION

No. FD(FR)11-5/82. In exercise of the powers conferred on him under Article, 119 of Constitution of Islamic Republic of Pakistan 1973, the Governor of Punjab is pleased to


direct to insert, with immediate effect, the following new entry in Offices in Category-I of Part-I of First Schedule to Delegation of Financial Powers Rules, 1990.

Amendment52- “Project Director, Multan Institute of Cardiology, Multan attached with Health Department, Government of the Punjab, as Category-I Officer”

The above mentioned officer shall exercise the financial powers as given Part-I, Powers Common to All Departments of Second Schedule to Delegation of Financial Powers Rules, 1990.

----------

GOVERNMENT OF THE PUNJABFINANCE DEPARTMENT

Dated Lahore, the 9th March, 2004NOTIFICATION

No. FD(FR)11-5/82. In exercise of the powers conferred on him under Article 119 of Constitution of Islamic Republic of Pakistan 1973, the Governor of Punjab is pleased to direct to insert, with immediate effect, the following new entry in Offices in Category-I of Part-I of First Schedule to Delegation of Financial Powers Rules, 1990.

Amendment53-“Programme Director, Programme Management and Implementation Unit under Education Department, Government of the Punjab, asCategory-I Officer”


----------No. FD (M-I)111-2/2001-P


Dated Lahore, the 29th March, 2004

Subject: DECENTRALIZATION OF CIVIL DEFENCE DEPARTMENT

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

2. I am directed to state that all financial issues inclusive of those mentioned in Para 2 of your letter pertaining to the offices decentralized to District Governments are to be regulated under Punjab Local Governments Ordinance, 2001 (as amended), rules framed and policy made there-under. Your kind attention is invited to Section 120 (D) ibid; where-under District Governments are receiving grants in aid through PFC award. Furthermore under Section 112 ibid, Zila Council is competent to approve budget


estimates and re-appropriations of a District Govt. Finance Department in their letter No. FD-PS/AFS (B) 6776/ 02, dated 7.11.2002 has inter-alia requested the District Governments to notify their respective Accounts Committee to settle the audit paras in District Accounts Committee in terms of Section 115 ibid. Finance Department in their letter No. even, dated 31.10.2003 and No. even, dated 14.1.2004 has further clarified that the audit paras pertaining to the period prior to 14.8.2001 will be the liability of the Provincial Government.

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

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

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

(ii) Procedural lapses and exercising powers beyond competence.

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

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

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

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

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

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

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



Dated Lahore, the 7th April, 2004.NOTIFICATION

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

----------No. IT(FD)3-7/2001. Vol-I


Dated Lahore, the 12th April, 2004.

Subject SHORTFALL IN GROUP INSURANCE PREMIUM OF PUNJAB GOVERNMENT EMPLOYEES, SPECIALLY THOSE WORKING IN LOCAL GOVERNMENTS.

Kindly refer to this department’s circular letters of even numbers dated 8.6,2005 and 23.11.2005 on the above noted subject, expressing concerns regarding the continuous decline in the collection of monthly group insurance premium in respect of Punjab government employees, especially those working in District Governments and Tehsil / Town Municipal Administrations.

2. The State Life Insurance Corporation of Pakistan (SLIC) has once again approached the Finance Department, apprising that against the total premium receivable for the last four years i.e. Rs.58,28,74,967/-, a premium of Rs.1,95,78,19,020/- only has been received, causing a shortfall of Rs.373,680,848/- The SLIC has attributed this phenomenon to the non-cooperation and indifference of the District Accounts Offices as well as the Tehsil / Town Municipal Administrations. The following reasons have been specially cited:-

i) The District Accounts Officers are not promptly crediting the group insurance deductions against District Fund Account No.IV to Provincial Account No. 1 in the prescribed manner.

ii) The deductions made from provincial government employees working in TMAs are not given prompt effect in their books by the District Accounts Officers, besides transferring the amounts in Provincial Account No. 1 in the prescribed manner.

iii) The TMAs are not discharging their functions in the prescribed manner by ensuring 100% deductions on account of group insurance premium at the prescribed rates, and crediting the same to the respective head of account as prescribed in para 3(b) of this department’s letter No. 1T(FD)3-4/2002 Vol-


IV dated 17.3.2003. Besides, the action prescribed by this department for the computation and recovery of arrears vide para 4 of this department’s letter of even number dated 23.11.2005 has not been acted upon in letter and spirit, causing further decline in collection of group insurance premium from the TMAs.

3. The Finance Department has observed these lapses with serious concern and it is directed that District Accounts Officers as well as the Tehsil / Town Municipal Officers must take strict measures for implementing the prescribed instructions relating to the deduction of Group Insurance premium. Besides, it has been decided to monitor these deductions each month, wherefore the following additional mechanism is prescribed:-

(i) All DAOs shall be required to submit monthly statements in the form at Annex-A, indicating the amount of monthly deductions as effected / booked in the monthly accounts. This statement duly certified by the Assistant Treasury Officer and countersigned by the District Accounts Officer should reach the FD by the 10th of the following month to which the statement relates.

(ii) The Audit Officers/Assistant Director (Audit) Officer LFA, posted in each Tehsil / Town Municipal Administration shall submit a monthly statement in the form at Annex-B, indicating the amount of monthly deductions effected on account of group insurance from the civil servants working in the TMAs. This statement shall be countersigned by the TMO concerned and submitted to the FD by the 10th of the following month to which the deductions relate.

4. It is finally reiterated that the above instructions must be observed in letter and spirit, failing which, the concerned DAO, TMO and AO/AD LFA shall be held personally responsible for the lapse.

----------Annex-A

MONTHLY STATEMENT SHOWING THE AMOUNTS OF GROUP INSUTRNACE DEDUCTIOSN FOR THE MOTH OF ____________, 2006

(i) Total amount group insurance premium deducted from Provincial government employees in Account No. 1

Rs. ________

(ii) Total Amount of Group insurance premium accounted for and booked for District Government employees in Account No. IV for the month of __________

Rs. ________

(iii)

Total Amount of group insurance premium credited to Provincial Account No. 1 regarding deductions made by TMAs as at Sr. No. ii above.

Rs. ________

(iv) Total deductions Rs. ________

(v) Reasons for variations, if any under each item from monthly deductions made in the previous month

Rs. ________


CERTIFIFATE

It is certified that the deductions, as above, are correct as per the amounts under each item incorporated in the monthly account of ________ 2006.

Signature SignatureASSISTANT TREASURY OFFICER DISTRICT ACCOUNTS OFFICER

----------Annex-B

MONTHLY STATEMENT SHOWING THE AMOUNTS OF GROUP INSURANCE DEDUCTED FOR THE MONTH OF ______ 2006

Deductions made for the employees of Month Amount(i) LG&RD Department(ii) PHED Department(iii) H&PP Department(iv) Any other Department

Total deductions

CERTIFICATE

It is certified that an aggregate amount of Rs. _________ as group insurance deductions for the month of _________ have been deposited in the National Bank of Pakistan in the prescribed head of account through cheque No. __________ dated __________ vide challan No. ___________ dated _________ and communicated to DAO _______________ vide letter No. ______________ dated _____________

Signature SignatureAO/AD,LFA TMO

----------No. PA/AFS(M)/2001

GOVERNMENT OF THE PUNJABFINANC DEPARTMENT

Dated Lahore, the 5th May, 2004.

Subject: CONFERRING OF DDO POWERS TO THE OFFICERS OF DISTRICT GOVERNMENT UNDER THE PUNJAB DISTRICT GOVERNMENT AND TEHSIL MUNICIPAL ADMINISTRATION (BUDGET) RULES, 2003.

Sir,

I am directed to refer to this Department’s letter No. even, dated 6.1.2004, on the subject noted above, whereby the District Governments were advised to appoint Drawing & Disbursing Officers in terms of rule 6 read with Rule 2(xxiv) of the Punjab District


Government and Tehsil Municipal Administration Budget Rules, 2003. In pursuance of the afore-said instructions, the District Governments are in the process of appointing DDOs under intimation to the Finance department.

2. However, it has been observed that the DDOs are being appointed by name instead of by designation and separate orders are issued in respect of each DDO. This practice is likely to create administrative difficulties and hiccups in maintaining continuity, financial discipline, reconciliation of accounts and settlement of audit paras.

3. I am, therefore, directed to request you to kindly appoint the Drawing & Disbursing Officers by designation (instead of by name) and an officer once declared as DDO may not be changed as a matter of routine without concrete justification. 1 am, further, to request that a consolidated list of DDOs of the respective District Government may be notified which shall be appended to the District Budget for each fiscal. The District Governments are accordingly requested to take necessary action under intimation to the Finance Department and other quarters concerned.


FINANCE DEPARTMENT

Dated Lahore, the 6th May, 2004NOTIFICATION

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

AmendmentIn Second Schedule, Part-II, “Special Powers to Certain Department and Officers” under heading “Anti-Corruption Department” attached with “Services & General Administration Department”, the following enhancement in powers shall be made:-

Grant of rewards / honoraria for meritorious services

(i) Administrative Department

Upto Rs.20,000 in each case.

(ii) Director of Anti-Corruption Establishment

Upto Rs.20,000 in each case.

----------No. FD(FR)II-2/89


Dated Lahore, the 26th May, 2004

Subject: RE-IMBURSEMENT OF MEDICAL CHARGES OF RETIRED CIVIL SERVANTS OF THE PUBLIC HEALTH ENGINEERING DEPARTMENT DECENTRALIZED TO TMAS.


Kindly refer to the subject cited above.

2. With the decentralization of the Regional/District Offices of the Public Health Engineering Department to the Tehsil/Town Municipal Administration under Section 52 of the Punjab Local Government Ordinance, 2001, the retired civil servants of PHE Department and their families have been facing difficulties in the matter of drawal of reimbursement of medical charges due to the absence of any Sanctioning Authority and Drawing and Disbursing Officers (DDOs) at District/Tehsil level. Meanwhile, the civil servants working in TMAs can only operate Tehsil/Town Local Fund and are not competent to sanction any expenditure or act as DDO for the withdrawal of the monies from Provincial Consolidated Fund (Account No. 1) for the said purpose.

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

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

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

(iii) The DCO and EDO shall act as the designated functionaries, in terms of Section 33 and 130 of the Ordinance ibid to sanction reimbursement of medical charges of the retired civil servants of PHE Department from Account No. 1 to the extent of delegation of powers already conferred vide F.D’s letter No. FD(FR)11-2/89, dated 1.9.2001. The expenditure shall be debitable to Grant No.28-Pensions-66200-Re-imbursement of Medical Charges to Pensioners.

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


Annex-A

1. Name of the retired/DeceasedGovernment servant .................................................................

2. Father/Husband’s Name .................................................................

3. Marks of Identification .................................................................

4. Date of birth .................................................................

5. Pay drawn at the time of .................................................................retirement/death

6. Post and / or service from .................................................................which retired

7. Date of retirement / death .................................................................

8. Present Address .................................................................

.................................................................

9. DAO/TO from where .................................................................payment of Pension/MedicalCharges is required

10. P.P.O Number .................................................................

11. Dependents

Name Relationship Date of birth Remarks

(Pension Sanctioning Authority/T.O(I&S)as the case may be)

Date ..........................................

Place ..........................................

Note: (i) The PPO number will be intimated to the T.O(I&S) Officer by the pension on this receipt.

(ii) In case the pensioner subsequently reports for the payment from the district other than that mentioned against Sr. No. 9 above this appendix will be transferred by the D.O (Buildings) under intimation to the Treasury Officer / Audit Officer concerned. Likewise, the Treasury Officer / Audit Officer concerned will transfer appendix ‘A’ to the Treasury Officer / Audit Officer of the new District along with the P.P.O of the Pensioners.

----------


Annex-BAFFIDAVIT

I, ____________________________ S/O __________________________ holder of P.P.O No. _________________ make oath / affirm and say that the particulars hereinafter appearing relate to me and that these are completed to the best of my knowledge and belief.

PARTICULARS

1. Name of Retired / deceased Government servant .............................................................................................................................................................................................

2. Father’s/Husband’s Name ...........................................................................................

3. Marks of Identification ................................................................................................

4. Date of birth ................................................................................................................

5. Pay drawn at the time of retirement / death ................................................................

6. Post and / or service from which retired .....................................................................

7. Date of retirement / death ............................................................................................

8. Present address ............................................................................................................

9. DAO/TO from where pension is being drawn ............................................................

10. Dependents ..................................................................................................................

Name Relationship Date of birth Remarks1.2.3.

Date: ..........................................

Place:.......................................... Deponent

Some/affirmed and signed before me this ___________ day of _________ 2004 ___________ by Mr./Mrs./Miss. __________________________________ who is personally known to me for ___________ years ________ months.

Signature of the Identifying Signature and seal of OathWitness Commissioner* Score out if inapplicable* To be issued in the presence of the Oath Commissioner

Note: In case the pensioner subsequently requests for the payment from the district other than that mentioned against S. No.9 above, this appendix will be transferred by the District Officer (Building) to the new District Officer (Buildings) under intimation to the Treasury Officer / Audit Officer concerned. Likewise, the Treasury Officer / Audit Officer concerned till transfer Appendix ‘B’ to the Treasury Officer / Audit Officer of the new District alongwith PPO of the Pensioner.

----------


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

FINANCE DEPARTMENT

Dated Lahore, the 2nd June, 2004

Subject: CLARIFICATION ABOUT DISTRICT GOVERNMENT EXPENDITURE - REIMBURSEMENT OF MEDICAL CHARGES TO RETIRED GOVERNMENT SERVANTS

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

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

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

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


Dated Lahore, the 5th June, 2004NOTIFICATION

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

Amendment

(i) RULE 12.20 PUNJAB FINANCIAL RULES VOL-I.The Treasury Officer is responsible for seeing that each entry of receipt and payment in the pass book is correctly made and initiated by him. And at the end of each month the entries on each side of the pass book are totalled and the balance struck and agreed with the treasury accounts. The pass book should be signed in full by the Treasury Officer with date.

(ii) FOOT NOTE BELOW PUNJAB FINANCIAL RULES FORM 25*Each entry of receipt and payment should be initiated after comparison with the credit challan and register of cheques paid respectively.


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

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

FINANCE DEPARTMENT

Dated Lahore, the June 10, 2004

Subject: NON-DEDUCTION/LESS DEDUCTIONS OF MONTHLY CONTRIBUTIONS ON ACCOUNT OF GROUP INSURANCE BY CIVIL SERVANTS

Kindly refer to the subject noted above.

2. In a recent meeting held on 21,05.2004, between the Finance Secretary and the Executive Director (G&P), State Life Insurance Corporation of Pakistan, it was pointed out that:-

(i) deductions on account of monthly contributions of group insurance by civil servants were not being made at the prescribed percentage, in accordance with the latest pay scales;

(ii) deductions, made in District Fund Account No. IV from civil servants working in District Governments were not being faithfully transfer-credited to Provincial Account No. 1 (Non-Food) in the manner prescribed vide F.D’s policy letter No. IT(FD)3-4/2002 dated 27-08-2002. Para 3(ii) (b) of the policy letter ibid refers.

(iii) deductions as at Sr. No. 1 above made by civil servants working in Tehsil/Town Administrations were not being transfer credited to Account No. 1 in accordance with the procedure prescribed by the F.D vide policy letter No. IT (FD)3-4/2002-Vol-IV dated17-03-2003;

3. The representatives of the State Life Insurance Corporation of Pakistan further pointed out that there were serious problems in the matter of reconciliation of such deductions, and that the DAOs were not extending the desired cooperation in this regard. Meanwhile, there were huge variations in figures of group insurance deductions from month to month causing problems for the State Life Insurance Corporation of Pakistan.

4. This position has been viewed seriously by the Finance Secretary, and he has been pleased to desire, that all concerned may strictly ensure that deductions on account of group insurance are carefully scrutinized as to the correctness of the percentage’s per the respective rates of pay of each civil servant, and that these are classified and accounted for under the prescribed heads of account, and then promptly credited to Provincial Government Account No. 1 in the manner prescribed for the respective category.

5. Any laxity in this regard shall invoke strict disciplinary action against the respective officer/official/ Please give personal attention to the matter.

----------


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

FINANCE DEPARTMENT

Dated Lahore, the June 11, 2004.

Subject: PAYMENT TO GEPCO BY DISTRICT GOVERNMENT – CLARIFICATION.

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

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

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

----------

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

FINANCE DEPARTMENT

Dated Lahore, the June 12, 2004.

Subject: DEVELOPMENT FUNDS OF TAMEER-E-PUNJAB PROGRAMME – JOINT PLA OF DCO/EDO (F&P) – DEPOSIT OF SECUTITIES INTO COMMERCIAL BANK AS INTEREST BEARING SECURITIES.

Please refer to your letter No.DAO/SLK/TRY/ATO/623, dated 22-03-2004, on the above noted subject.

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

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

----------



Dated Lahore, the 12th June, 2004

NOTIFICATION

No. FD(FR)11-5/82. In exercise of the powers conferred on him under Article, 119 of Constitution of Islamic Republic of Pakistan 1973, the Governor of the Punjab is pleased to direct that in Part-III Offices in Category-III of First Schedule to Delegation of Financial Powers Rules, 1990, the following shall be added at Sr. No. 8, with immediate effect:-

Amendment8-The Treasury Officers / Accounts Officers in the Punjab.

----------

No. IT(FD)3-1/95-VoI-IIIGOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT


Subject: OBSERVANCE OF FINANCIAL DISCIPLINE IN THE PROVINCIAL/DISTRICT GOVERNMENTS, SPECIALLY DURING THE MONTH OF JUNE.

Kindly refer to the standing instructions contained in this department’s circular letter No. IT(FD)3-1/95-Vol-II, dated 8th May, 2001 on the above cited subject, prescribing various stipulations (cut-off dates) in the matter of (i) utilization of budget (ii) contracts (iii) submission of claims to the Accountant General, Punjab/District Accounts Officer/Treasury Officers and (iv) payments through government cheques etc.

2. In order to facilitate maximum discharge of liabilities by the government departments/district governments for the financial year ending 30th June 2004, it has been decided to relax and extend the stipulations (dates only), as prescribed in this department’s circular letter of 8th May, 2001, upto 28th June 2004.

3. However, the provision regarding observance of normal office/banking hours as contained in para 2(e) of the circular letter under reference shall remain enforced, for provincial and district governments payments only.

4. The relaxations, as allowed vide para 2 above, shall apply to Provincial Account No.I (Non-Food) and Account No-II (Food), as well as District Fund Account No.IV.

5. These instructions shall only apply to the financial year 2003-2004.

6. These instructions shall NOT apply to Federal Government payments.----------



Dated Lahore, the 21st June, 2004

NOTIFICATION

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

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

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

1. Deceased Government servant except those mentioned at item No. 2 below, last serving in the office of the Provincial Government or a local government and pensioner, lastly residing in a district.

District Coordination Officer of the district concerned.

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

Administrative Secretary or his designated nominee.

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

----------


Dated Lahore, the 30th June, 2004.

NOTIFICATION

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

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


Sr. No.

Name of Powers To Whom Delegated

Extent

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

Administrative Department in Sub-Committees

Up to Rs. 100 million

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

Administrative Department in Sub-Committees

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

----------No. FD(PR)II-2/89



Subject: STREAMLINING OF PROCEDURES TO IMPROVE THE PACE OF EXECUTION OF DEVELOPMENT SCHEMES –POWERS TO RE-APPROPRIATION APPROVED DEVELOPMENT SCHEMES WITHIN THE SECTOR

Sir,

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

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

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

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

3. In order to streamline the procedure and to improve the pace of execution of development schemes, it has been decided, after the approval of the competent authority, that while the Administrative Departments and Officers in Category-I shall carry out re-appropriation of funds, relating to the development schemes within their sectoral allocations, in the prescribed manner, however, all re-appropriations done in the said


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

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

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No. SO (TT) 3-34/68-Vol-XGOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the July 02, 2004

Subject: DDOS TRAINING AT THEIR DOORSTEPS ON THE NEW CHART OF ACCOUNTS (COA), AND NEW ACCOUNTING MODEL

Sir,

I am directed to refer to the subject cited above, and to state that the Director General, Audit and Accounts Training Institute, Lahore, Department of the Auditor General of Pakistan has formulated a training plan for the Drawing and Disbursing Officers (DDOs) of the Federal, Provincial and District Governments for imparting instructions at their doorsteps, regarding the New Accounting Model (NAM) and the Chart of Accounts (COA). The training sessions will be held between 19th July and 30th August, 2004 at all district headquarters in the Punjab, in accordance with the annexed district-wise detailed schedule prepared by the Directorate.

2. I am to request, that the respective Drawing and Disbursing Officers / Collecting Officers of your departments / district governments may compulsorily be nominated for the said training course, as it is extremely vital for the departments / district governments to prepare their budgets / accounts in accordance with the New Chart of Accounts prescribed under the New Accounting Model. Needless to add, that the earlier training


conducted in this regard did not produce the desired results due to lukewarm response in the matter.

3. Appropriate directions may kindly be issued to your subordinate offices for ensuring active participation in this endeavour.

----------


Dated Lahore, the 19th July, 2004.

NOTIFICATION

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

Amendment:57. “The Programme Director, Project Management Unit, Agriculture Sector,

Programme Loan-II (ASPL-II), attached with Agriculture Department, Government of the Punjab.”

----------

No.FD.SR-III.4-79/04GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 21st July, 2004

Subject: GRANT OF INCREASE IN PENSION TO CIVIL PENSIONERS OF THE PUNJAB GOVERNMENT

Sir,

1 am directed to state that the Governor of the Punjab has been phased to sanction an increase in pension with effect from 1st July, 2004 to civil pensioners of the Punjab Government at the following rates:-

(i) Pensioners who retired prior to revised Pay 16%Scales of 1994.

(ii) Pensioners who retired in revised Pay Scales 08%of 1994 and onwards.

2. Increase in pension is subject to (he following conditions:-

(a) For the purpose of admissibility of increase in pension sanctioned in this letter the term ‘Pension’ means ‘Pension being drawn’.


(b) The Increase will also be admissible on family pension granted under the Pension-cum-Gratuity Scheme; 1954, Liberalized Pension Rules, 1977, on pension sanctioned under the Punjab Civil Services (Extra Ordinary Pension) Rules as well as on the Compassionate Allowance under section 18(3) of the Punjab Civil Servants Act 1974.

(c) If the gross pension sanctioned by the Punjab Government is shared with any other Government in accordance with the rules laid down in Appendix-4 of the Punjab Financial Rules, Volume-II, the amount of the increase in pension will be apportioned between the Punjab government and the other Government concerned on proportionate basis.

(d) The increase in pension is an Ad-hoc Relief and shall not be reckonable for purposes of calculation of Commutation/ Gratuity.

(e) In case of re-employed pensioners/the increase in pension sanctioned in this letter shall not be admissible to them during the period of their re-employment.

(f) The benefit of increase in pension sanctioned in this letter will also be admissible to those Civil Pensioners of the Punjab Government who are residing abroad (other than those residing in India and Bangladesh) who retired on or after 15-08-1947 and are not entitled to, or are not in receipt of person increase under the British Government’s pension (increases) Acts. The payment will be made at the applicable rate of exchange.

-----------

No.FD-PC-2-1/2004GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 21st July, 2004

Subject: GRANT OF ADHOC RELIEF @ 15% OF BASIC PAY

Sir,

I am directed to state that the Governor of the Punjab has been pleased to sanction Ad-hoc Relief @ 15% of the basic pay per month to all the civil servants in BS-1 to BS-22, contingent paid staff and retired civil servants re-employed against civil servant Basic Pay Scales on standard terms and conditions of contract of contract appointment with effect from 1st July, 2004 till further orders.

2. The amount of this ad-hoc relief will be:-

(i) will be subject to income tax(ii) will be admissible during leave and entire period of LPR except during extra

ordinary leave.


(iii) Will not be treated as part of emoluments for the purpose of calculations of Pension / gratuity and recovery of House Rent.

(iv) will not be admissible to employees during the tenure of their posting/deputation abroad.

3. The above relief would be accommodated within the budgetary allocation for the year 2004-05 by the respective Administrative Departments/District Governments and no supplementary grants would be demanded on this account.

----------

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

FINANCE DEPARTMENT

Dated Lahore, the 29th July 2004

Subject: PWD CHEQUES ISSUED BY PROVINCIAL WORKS DIVISIONS FOR PAYMENT ON OR BEFORE 30TH JUNE 2004 – RE-VALIDATION OF UNCASHED PWD CHEQUES

Sir,

I am directed to refer to the subject cited above, and to state that it has been brought to the notice of the Finance Department that certain contractors of Public Works Department failed to draw payments through PWD Cheques pertaining to the financial year 2003-2004, issued by the respective divisional/sub-divisional officers of the Provincial Works Divisions on or before 30th June, 2004 due to their belated presentation to the respective DAO/TO for authorization, or to the State Bank of Pakistan/National Bank of Pakistan for encashment..

2. The above position has essentially emerged due to the fact that the concerned divisional/sub-divisional officers of the Provincial Works Divisions have once again failed to ensure timely clearance of such liabilities against the government in accordance with the deadlines inter-alia prescribed by the Finance department for the issuance of PWD Cheques vide letter No. IT(FD)3-1/95, dated 25 th March, 1997 duly reiterated to all Administrative Secretaries from time to time and NO IT(FD) 3-1 / 95-Vol-lll dated 14.06.2004, . This lapse on the part of the divisional/sub-divisional officers of the Provincial Works Divisions has resulted in undue inconvenience to the payees who are now coming up with requests to the Finance department for the revalidation of such un-cashed PWD cheques relating to the Provincial Government.

3. Therefore, considering the legal aspect of the issue, as well as to alleviate the difficulties of the contractors, it has been decided to prescribe the following procedure for the revalidation of PWD Cheques, pertaining to the financial year, 2003-2004 which were validly issued by the Provincial Works Divisions in the prescribed manner, on or before 30th June, 2004, and were either duly authorized for payments by the respective DAOs/TOs or could not be so authorised, and therefore, remained encashed, through


bank clearance, by the payees from the respective SBP/NBP branch up to 30th June, 2004.

4. Requests for revalidation of PWD Cheques, as aforementioned shall be considered on case to case basis on the recommendation of the respective Administrative departments. While forwarding such cases to Finance Department, the AD would also be required to ascertain reasons and to fix responsibilities for the belated issuance of cheques by the concerned divisional/sub-divisional officers, of Provincial Works Divisions in contravention of the time limits fixed by the Finance Department, and notwithstanding subsequent relaxation granted by it. An attested photocopy of uncashed PWD Cheque (both obverse & reverse) shall also be sent to ascertain it’s bonafides, as well as the fact as to whether it was authorized or otherwise, by the concerned DAO/TO upto 30th June,2004.

5. The requests for revalidation shall be further subject to the following conditions:-

(a) that PWD cheques, as detailed above were validly issued by the concerned divisional/sub-divisional officer of the Provincial Works Divisions on or before 30th June, 2004, in discharge of accrued liability;

(b) that these cheque/cheques were duly presented to the respective DAO/TO on or before 30th June, 2004, in the prescribed manner, and were authorized for payment at the respective SBP/NBP branch. In case the cheques could not be got authorised, as aforementioned, the reason(s) for the same may be indicated;

(c) that the amount of each cheque, after it’s issuance, had been debited to the respective budgetary allotment of the scheme/work of the provincial government for the financial year 2003-2004;

(d) that the expenditure corresponding to amount of each cheque had been entered and booked in the cash book of the division in the respective date, falling on or before 30-06-2004 and that the cash book stands closed on 30-06-2004, duly verified thereafter by an authorized representative of the Director General Audit (Works), Lahore, as prescribed;

(e) that the serial number of the cheque (including the last cheque) precedes the number of the last cheque issued by the divisional/sub-divisional officer of the Provincial Works Divisions on or before 30-06-2004 and communicated to the Director General Audit (Works), Lahore, on 30-06-2004 telegraphically in the prescribed manner;

NOTE:(i) The above policy shall only be applicable to PWD Cheques issued by the

Provincial Works Divisions pertaining to financial year, 2003-2004.

(ii) The re-issuance of cheques in the aforesaid manner would not be admissible in case of “self & special-cheques” issued on or before 30-06-2004.


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

6. All uncashed PWD Cheques pertaining to financial years, prior to 2003-2004, having remained unpaid for more than one year as on 30th June 2004 shall not be REVALIDATED. Such cheques shall be cancelled by the respective divisional/sub-divisional officer and their amounts WRITTEN-BACK as prescribed under Rule 2.17 of PFR Vol-I, read with Article 262 of Account Code Vol-III. Thereafter, they may come up with a request to the F.D. for allocation of fresh funds (GROSS AMOUNT OF UNPAID CHEQUE) through the respective Administrative Department in the prescribed manner.

7. NOTE: THESE INSTRUCTIONS ARE NOT APPLICABLE TO CHEQUES OF WORKS AND SERVICES DEPARTMENTS OF DISTRICT GOVERNMENTS OR THE TEHSIL/TOWN MUNICIPAL ADMINISTRATIONS ISSUED DURING THE FINANCIAL YEAR 2003-2004. SEPARATE INSTRUCTIONS HAVE BEEN ISSUED REGARDING SUCH CHEQUES

-----------

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

FINANCE DEPARTMENT

Dated Lahore, the 29th July 2004

Subject: REVALIDATION OF WORKS AND SERVICES DEPARTMENTS CHEQUES ISSUED BY DISTRICT OFFICERS (B&R) OF DISTRICT/ CITY DISTRICT GOVERNMENTS AND TEHSIL/TOWN OFFICERS (I&S) OF TEHSIL/TOWN MUNICIPAL ADMINISTRATIONS.


2. It has been brought to the notice of the Finance Department that certain contractors executing Public Works for the District /City District Governments and Tehsil / Town Municipal Administrations have failed to draw payments through Works and Services Departments cheque(s) issued in their favour by the offices of the Accountant General, Punjab / District Accounts Officers or the Tehsil Officer(Finance)/Tehsil Accounts Officers respectively on or before 30-06-2004, during the financial year 2003-2004, in discharge of their validly accrued liabilities. This position has essentially emerged due to belated issuance of cheque(s) by the respective authorities.

3. In order to alleviate the aforestated problem, it has been decided to allow revalidation of all cheque(s) of Works and Services departments issued by the AG (Pb)/DAOs for the City District/District Governments and the T.O (Finance)/TAO for the Tehsil /Town Municipal Administrations, on or before 30-06-2004, during the financial year 2003-2004, which (i) though validly authorized for payment by the DAO/TO or the TO (Finance)/TAO, as the case be, could not be encashed by the payees through bank


clearance or (ii) the cheques could not be issued by the AG(Pb)/ concerned DAO or the T.O(F)/TAO,. in the prescribed manner.

4. The revalidations in case of City District Government/District Governments shall be done by the AG (Punjab)/ concerned DAO respectively, on the submission of a formal request by the D.O (B&R) of City District/District Government concerned, along with the original un-cashed cheque(s). Accordingly, a new cheque (s) shall be issued, in the prescribed manner, by the AG (Punjab) / DAO, as the case may be, in lieu of the un-drawn / un-cashed cheque(s) issued on or before 30-06-2004, after due scrutiny of the record relating to the original claim. The amount of cheque(s) in case of City/District Government shall be debitable to the District Fund, Account No IV against the respective budgets of the City District Government/District Governments for the financial year 2003-2004.

5. The revalidation of cheque(s) in case of Tehsil /Town Municipal Administrations shall be done by the respective Tehsil Officer (Finance)/Tehsil/ Town Accounts Officers (TAO) on the submission of a formal request by the respective TOs (I&S), along with the original un-cashed / un-drawn cheque(s) issued on or before 30-06-2004, during the financial year 2003-2004. Accordingly, new cheque(s) shall be issued, in the prescribed manner, by the TO(Finance)/ TAO in lieu of the under drawn / un-cashed cheque(s) issued on or before 30-06-2004, after due scrutiny of the relevant record relating to the original claim. The amount(s) of the cheque(s) shall be debitable to the respective Tehsil/Town Local Fund against the respective budgets for financial year 2003-2004.

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

(a) that the cheques, under reference were validly issued by the AG(Pb)/DAO/TO for the City District / District Government, and TO(Finance)/TAO for TMAs respectively on or before 30th June, 2004, in discharge of valid accrued liabilities;

(b) that the amount of each cheque, after it’s issuance, had been debited to the respective budgetary allotment of the scheme/work of the District/City District Government or the Tehsil /Town Municipal Administration, as the case be, for the financial year 2003-2004;

(c) that the expenditure corresponding to amount of each cheque had been entered and booked in the respective cash book maintained by the AG(Pb)/DAO or the TO(I&S) as the case be, in the respective date, falling on or before 30-06-2004, and that the cash book was closed on 30-06-2004, and duly verified thereafter by an authorized representative of the Director General Audit (Works), Lahore, as prescribed;

(d) that the serial number of the respective cheque (including the last cheque) preceded the number of the last cheque issued by the AG(Pb)/DAO or the TO(Finance)/TAO of the City District /City District Government or the Tehsil /Town Municipal Administration, as the case be, on or before 30-06-2004 and communicated to the Director General Audit (Works), Lahore, on 30-06-2004 telegraphically in the prescribed manner;


Note: (i) The above policy shall only be applicable to Cheques of the Works and Services department issued by the District /City District Governments or the Tehsil /Town Municipal Administrations, pertaining to financial year, 2003-2004.

(ii) The re-issuance of cheques in the aforesaid manner would not be admissible in case of “self & special-cheques” issued on or before 30-06-2004.

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

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

-----------No. So. Exp.(LG)1-29/2004


Dated Lahore, the July 31, 2004

Subject: PERMISSION TO REPLACE/PURCHASE VEHICLES FOR THE DISTRICT GOVERNMENTS

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

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

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

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


FINANCE DEPARTMENT


Dated Lahore, the 12th August, 2004.NOTIFICATION

No. FD (FR) 11-5/82. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in Part-III OFFICERS IN CATEGORY-III of the First Schedule to the Delegation of Financial Powers Rules, 1990, the following shall be added at serial No.8, with immediate effect: -

Amendment:8- The Project Director/ Incharge of Punjab Emergency & Ambulance Services,

Lahore attached with the Government of Punjab Health Department.----------


Dated Lahore, the 17th August, 2004.

NOTIFICATION

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

Amendment:59. Officer Incharge, Aviation Flight (Rotary Wing), Government of the Punjab,

Home Department.----------


Dated Lahore, the 23rd August, 2004.

NOTIFICATION

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

Amendment:


60. Project Director, National Programme for Improvement of Water Courses in Pakistan (Punjab Component)/Additional Secretary to the Chief Minister, Chief Minister’s Secretariat, Punjab, Lahore.

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

FINANCE DEPARTMENT

Dated Lahore, the 23rd August, 2004

Subject: STATEMENT OF MONTHLY AND ANNUAL ACCOUNTS OF LOCAL GOVERNMENTS – PLACEMENT AT CONSPICUOUS PLACES FOR PUBLIC INSPECTION


2. Under Section 114(5) of the Punjab Local Government Ordinance, 2001, the respective tier of a local government is required to place statement of monthly and annual accounts at a conspicuous place for public inspection.

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

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

----------No. IT(FD)3-7/2001


Dated Lahore, the 24th August 2004

Subject: ENCASHMENT OF LEAVE PREPARATORY TO RETIREMENT (LPR)-AVAILING OF IDDAT LEAVE.

The matter regarding grant of “Special Leave” under Rule 12 of the Revised Leave Rules, 1981 to a female civil servant during the period surrendered in lieu of entire Leave Preparatory to Retirement (LPR), for the purpose of encashment of LPR, has been examined in the context as to whether a proportionate reduction of cash compensation equivalent to one half of the leave, as above, shall apply as done in the case of leave, if taken by a civil servant, during the surrendered period of entire LPR, on the grounds of illness or performance of Haj.

It is accordingly clarified, that given the unforeseen nature of the incidence (death of the husband of a female civil servant during the surrendered period of her LPR) the


mandatory Islamic injunction regarding the observance of IDDAT, and the fact the such leave is classified as a “Special Leave” not debitable to the leave account, the policy contained in the F.D’s letter No. S.R.111-1-53/83, dated 8th August, 1984 shall not apply to the “special leave” availed on account of IDDAT, as above i.e. no proportionate reduction of cash compensation shall be made, and the encashment in lieu of the surrendered period of entire LPR shall remain admissible for a maximum period not exceeding 180 days, subject to title.

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

FINANCE DEPARTMENT

Dated Lahore, the September 9, 2004

Subject: MONTHLY ACCOUNTS OF DISTRICT GOVERNMENTS RELATING TO DISTRICT FUND ACCOUNT NO.IV.


2. It has been observed that a copy of the monthly accounts of the respective District Government, in the prescribed form, relating to District Fund Account No.IV is not invariably sent to the Finance Department for the purpose of record and analysis.

3. It is, therefore, advised that a copy of the said accounts, including that relating to Development Budget, may be sent to the Deputy Secretary (Budget), Government of the Punjab, Finance Department on due dates as fixed by the Accountant General, Punjab / Director General (Accounts) Works.

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

FINANCE DEPARTMENT

Dated Lahore, the 13th September, 2004.NOTIFICATION

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

Amendment:27. The Regional Manager, National Programme for Improvement of Water

Courses in Pakistan (Punjab Component) at Lahore, Gujranwala, Faisalabad, Sargodha, Rawalpindi, Multan, D.G. Khan and Bahawalpur.

----------No. IT(FD)3-10/2004



Dated Lahore, the 27th September, 2004

Subject: FINANCIAL PROCEDURE FOR THE IMPLEMENTATION OF CHIEF MINISTER'S ACCELERATED PROGRAMME FOR SOCIAL DEVELOPMENT

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

(A) FLOW OF FUNDS(i) The funds for the Chief Minister Accelerated Programme for Social

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

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

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

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

Grant No.36-DevelopmentMajor Function- 8-40000 – Social ServicesMinor Function- 8-41000 – Education

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

8-42000 – Health8-43000 – Population Planning8-44000 – Manpower & Labour

Management8-45000 – Housing & Physical

Planning8-46000 – Sports and Recreation

Facilities8-47000 – Social Security and

Social Welfare8-48000 – National Calamities and

other Disasters8-49000 – Religious Affairs


Detailed function

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

Major Object 60000 – Transfer PaymentsMinor Object 64000 – GrantsDetailed Object 64900 – Others

(B) IDENTIFICATION / APPROVAL AND EXECUTION OF SCHEMES

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

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

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

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

(C) ACCOUNTING PROCEDURE

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

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

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

(D) MONITORING & REPORTING PROCEDURE:

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


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

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

(E) AUDITAll expenditures incurred with regard to the schemes under the programme shall be audited by Auditor General of Pakistan.


FINANCE DEPARTMENT

Dated Lahore, the 30th September, 2004.NOTIFICATION

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

Amendment:The Programme Director, Teachers Training Programme, Directorate of Staff Development (DSD), Punjab, Lahore, attached with the Education Department, Government of the Punjab.

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

FINANCE DEPARTMENT

Dated Lahore, the 1st October, 2004

Subject: REVIVAL OF DIVISIONAL DISPOSAL COMMITTEE TO BE RE-NAMED AS DISTRICT DISPOSAL COMMITTEE,

Sir,

I am directed to refer to the subject as cited above and to state that the District Officer Planning, Bahawalpur has drawn the kind attention of the Chief Secretary, Government of the Punjab, on the issue and intimated that since the inception of present District Government set-up a big junk of unserviceable and condemned machinery is


lying, in most of the cases, under open sky, in all the Governments Departments. The machinery is being rusted away on one hand and the likely auctioned price is dwindling day-by-day on the other. If the decision for its disposal is not taken in time, it would lead not only to deterioration of the present stock of unserviceable/condemned machinery but also to a great financial loss to the Government. The D.O (P) has further suggested to revive the Divisional Disposal Committee to be re-named as District Disposal Committee.

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

Sr.# Name of Power To whom delegated Extent

7. Powers to sell surplus or unserviceable motor vehicles, T&P, machinery, equipment, spares and stores by auction.

(i) Administrative Department.

(ii) Officers in Category-I(iii) Officers in .Category-II(iv) Officers in Category-III.

Full Powers.

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

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

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

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


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

----------

THE PROPOSED CONSTITUTION OFDISTRICT DISPOSAL COMMITTEE

1. The DCO of the District ConvenerGovernment/Category-I Officer of theconcerned Department, as the case may be.

2. Superintending Engineer Irrigation of the Memberconcerned Zone or his representative notbelow the rank of BS-18

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

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

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

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

The function of the District Disposal Committee would be to dispose of unserviceable and redundant equipment/machinery that is declared unserviceable or surplus in the Province by the Competent authority of the respective department.

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

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

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

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

(iv) The sale proceeds of tenders and equipment would be credited to Punjab Government Revenue under head:1000000 NON-TAX RECEIPTS


1300000 MISCELLANEOUS RECEIPTS391000 OTHER RECEIPTS1391002 OTHER RECEIPTS - SALES OF STORES AND MATERIALS

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

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

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

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

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


Dated Lahore, the October 08, 2004

Subject: BRIEFING FOR THE CHIEF MINISTER HELD ON 30TH AUGUST, 2004.

Kindly refer to the subject noted above and find enclosed the excerpts from the briefing given by the Finance Secretary. These contain the guidelines relating to some important aspects of Local Government Finance for your kind information and strict observance please.

GENERAL GUIDELINES

Preparing and publishing complete budget documents (Rule 47, Budget Rules 03)

Faithful allocation and application of O&M/M&R resources

Faithful allocation and application of C&S funds for Health Institutions (Rs.250 and Rs.200 per bed per day for DHQs and THQs)

Allocation of discretionary grants in the budgets of Local Governments is not admissible

Notify DDO powers by designation

Cash Transfers through grants in aid to other tiers of Local Governments is not admissible

Prepare Local Government ADP scheme wise; avoid block allocations


Avoid throw forward of development schemes beyond two years

Release ADP funds upfront instead of piece-meal releases

F&P Department of District Governments are not authorized to accept routing of bills relating to works

Display monthly civil accounts at conspicuous places

Reconcile accounts on monthly basis - DDOs/COs with DAOs

Reconcile cash balance on daily basis with Bank and DAO

Observe the difference in contingent paid staff and staff engaged on daily wages

Use the market rate system instead of CSR (defunct)

Address all queries and correspondence relating to the Finance Department to the Additional Finance Secretary (Local Government Finance)

----------No. IT(FD)3-11/2004


Dated Lahore, the 9th October, 2004

Subject: DEVELOPMENT EXPENDITURE STATEMENT OF THE DISTRICT GOVERNMENTS.

The District Accounts Officer, Faisalabad has prepared a “Development Expenditure Statement” of the District Government, Faisalabad in the annexed format. The Finance Secretary has been pleased to appreciate this effort and direct that the Accountant General, Punjab and all other District Accounts Officers in the Punjab should also prepare similar statements in respect of the development schemes / projects of the respective District Governments, and submit these to the Finance Department and the respective District Governments, alongwith the monthly accounts of non-development expenditure on the prescribed dates.2. Since the Divisional Accounts Officers, after their re-designation as Assistant Accounts Officers (Works & Services), have been placed under the administrative control of the District Accounts Officers / Accountant General, Punjab, and that all payments of development projects of the District Governments are made after due pre-audit by them in terms of Section 114 (2) (C) of the Punjab Local Government Ordinance, 2001 therefore, the requisite data for preparation of the “Development Expenditure Statement” is already available with the Assistant Accounts Officers (Works & Services). Besides, the Finance Department has provided computers to all the District Accounts Officers, to collate and compile the data for the purpose of the exercise.

3. To facilitate preparation of the “Development Expenditure Statement”, the following guidelines may be observed: -


(i) Obtain a soft copy of the development budget from the concerned EDO (F&P);

(ii) Arrange development projects as per their detailed functional classification;

(iii) Add columns, which are not available in the budget in accordance with the enclosed format;

(iv) Insert data regarding release of budget in the relevant column;

(v) Insert expenditure in the relevant column against the development project when cheques are issued and other instructions of payment e.g. bills, transfer credit advices are received from the bank after payment;

(vi) Insert formulae to analyze expenditures against releases and the budget;

(vii) Open a separate sheet to prepare summary of the “Development Expenditure Statement” and make links of this summary with the main sheet so that the summary is prepared and updated automatically; and

(viii) Copy the summary of the “Development Expenditure Statement” on a new sheet and minus cheques issued but not encashed during the month and add cheques issued during the previous month(s) but encashed during the current month. This summary may be added to the monthly “List of Payments” as development expenditure.

4. A one day training workshop shall also be arranged by the Finance Department shortly to facilitate further understanding of the matter by the District Accounts Officers. The schedule for this training shall be communicated separately.

----------



Dated Lahore, the 16th October, 2004

NOTIFICATION

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

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

Sr. #

Depart-ment

Powers delegated to Officer in Provincial

set up

Powers to be exercised in the District

Government set-up

Remarks

1. Forest Deptt.

(i) Chief Conservator of Forest

(ii) Conservator of Forest

(iii) Divisional Forest Officer

(i) D.C.O

(ii) EDO(Agriculture)

(iii) District Officer (Forest)

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

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


2. Fisheries Deptt:

(i) Director General Fisheries(ii) Director Fisheries(iii) Deputy Director Fisheries(iv) Assistant Director Fisheries

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

3. Education Department

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

(ii) Divisional Director Education(iii) District Education Officer

(Schools)

(i) D.C.O.

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

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

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No.FD (A&A) II-4/67GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 29th October, 2004.

Subject: DEPRECIATION AND REPLACEMENT OF GOVERNMENT OWNED VEHICLES

Sir,

I am directed to refer to the subject cited as above and to state that a uniform criterion in terms of distance covered has been prescribed for the replacement of motor vehicles vide Finance Department’s letter No. FD (FR) II-2/89, dated 27.3.90, as follows:-

“Minimum distance of two lacks kilometers for all motor cars, jeeps and motor cycle/scooter with engine power upto 1600 CC and 2.50 lack kilometers for all other motor vehicles”. Instead of expected life of the vehicle in terms of the years, which was 16 to 20% per year for different type of vehicles vide Finance Department’s No. (A)-II-4/67, dated 17.5.70 and 24.4.71.

2. Further, under para 4.3 of B&R Code, different rates of depreciation for different vehicles, tools, plants etc. have been adopted for a period of five years as mentioned below:-

Sr. #

Description Rate(Percent)

1 Science Instruments (including Electrical and Drawing instruments 5


2 Plants and Machinery 10

3 Tools 15

4 Navigation Plan (except country Boats) 5

5 Country Boats 12

6 Camp equipage 10

7 Livestock 15

8 Furniture in Offices Rest Houses and Bungalows (except enameled articles)

5

9 -do- 10

10 Motors, Lories and Cycles 20

3. Prima facie, the rates given in Para 2 above, are un-realistic. For instance, the book value of a motor vehicle, after covering a prescribed distance as required in Para 1 above would be calculated @ 20/5 i.e. 4% per year. The book value so calculated is likely to be quite higher than the market value of the redundant vehicle. Resultantly the competent officers, as prescribed at item 7 under Part-I of Delegation of Financial Powers Rules, 1990, usually face difficulty in disposing of the vehicle while receiving a lesser competitive bid vis-a-vis book value of the vehicle under auction.

4. Finance Department feels that both the yardsticks of replacement and depreciation prescribed under the Delegation of Financial Rules, 1990 and B&R Code as given in Para 1 and Para 2 respectively require to be reconciled and rationalized. I am therefore, directed to request you to give your comments/proposals within fortnight to up date the relevant provisions for regulating the replacement/depreciation of the vehicles.

----------


Dated Lahore, the 1st November, 2004.

NOTIFICATION

No. FD(FR)11-5/82. The Governor of the Punjab is pleased to delegate the following powers to the officers of Communication & Works Department and to the Officers of District Governments for technical sanction and acceptance of tenders.

TECHNICAL SANCTION – ORIGINAL WORKS

S. No. Name of powers To whom delegated. Powers delegated

1. Technical sanction in case of original works.

S.E. Highway/Works and EDO(W&S)XEN Highway/ Works and DO(Roads/Buildings)

Up to Rs.200 lacs

Up to Rs.50 lacs

ACCEPTANCE OF TENDERS


S.E. Highway/Works and EDO(W&S)XEN Highway/ Works and DO(Roads/Buildings)

Up to Rs.200 lacs

Up to Rs.50 lacs

TEHCNICAL SANCTION – ORDINARY / SPECIAL REPAIRS

2. The revised powers of technical sanction for ordinary and special repair of roads and buildings are as under:-

S. No. Name of powers To whom delegated Powers delegated1. Technical sanction in

case of ordinary & special repairs.

i) S.E. (Works)/ EDO(W&S)

ii) XEN(Works) / DO(Buildings)

Up to Rs.10 lacs

Up to Rs.2 lacs

2. Technical sanction in case of ordinary & special repair to Roads.

i) S.E. (Highway)/ EDO(W&S)

ii) XEN(Highway)/ DO(Roads)

Up to Rs.20 lacs

Up to Rs.4 lacs

Note: The existing conditions applicable to accord technical sanctions and acceptance of tenders shall also be applicable.

----------

No. SO(TT)3-34/68-Vol-XGOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the November 02, 2004

Subject: BACK-UP TRAINING OF DDOs ON THE NEW CHART OF ACCOUNTS (COA), AND NEW ACCOUNTING MODEL.

Sir,

I am directed to refer to the subject cited above, and to state that the Director General, Audit and Accounts Training Institute, Lahore, Department of Auditor General of Pakistan has formulated a BACK-UP training plan for the Drawing and Disbursing Officers (DDOs) of the Federal, Provincial and District Governments regarding the New Accounting Model (NAM) and the Chart of Accounts (COA). The training sessions will be held at the Audit & Accounts Training Institute, Government Offices Building, Gulberg-lll, Lahore, as per the Schedule given on the reverse.

2. I am to state, that the respective Drawing and Disbursing Officers/ Collecting Officers of your department / who had failed to avail the earlier opportunities of getting


the training may compulsorily be nominated for the BACK-UP training course, as it is extremely vital to prepare the budgets for the f.y 2005-2006 in accordance with the New Chart of Accounts, prescribed under the New Accounting Model.

3. I am to request that appropriate directions may kindly be issued to your subordinate offices for ensuring active participation in this endeavour.

----------

Training Programme


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

FINANCE DEPARTMENT

Dated Lahore, the 10th November, 2004

Subject: FINANCIAL ASSISTANCE TO THE FAMILY OF A CIVIL SERVANT WHO DIES WHILE IN SERRVICE

Sir,

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

BS Amount

1-4 Rs.200,000

5-10 Rs.300,000

11-15 Rs.400,000

16-17 Rs.500,000

18-l9 Rs.800,000

20 & above Rs.1,000,000

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

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

4. Expenditure involved will be met out of the existing budget grant of the Administrative Departments/District Governments. However, in case additional funds are


required the case will be referred to Finance Department for provision of funds with justification.

-----------

No. Exp (Agri-II)1-88/94-VetyGOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 4th December, 2004

Subject: OPERATION OF REVOLVING FUND ACCOUNTS BY PROVINCIAL GOVERNMENT DEPARMENTS.

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

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

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

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

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

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

(iii) Revolving Fund Account shall be allowed to a department (to be operated through a designated functionary/DDO) for a specific services / purpose, which may generally be in the nature of commercial operation, involving purchases of raw material and sale of finished


product. Such Revolving Fund Account will partake the nature of a WORKING CAPITAL, which is revolved on INPUT-OUTPUT-INPUT basis, with the intention that it would generate itself and grow through profits.

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

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

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

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

RECEIPTS(i) All receipts (excluding those coming through budgetary authorization)

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

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


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

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

PAYMENTS(a) Payments against receipts accruing to the Revolving Fund Account

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

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

ACTION BY DISTRICT ACCOUNTS OFFICER / TREASURY OFFICER, LAHORE

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

(b) All receipts deposited in the RFA shall only be recognized as duly credited, after these are confirmed from the credit-scroll of the respective SBP/NBP received in the office of the DAO/TO, Lahore, along with the original copy of the challan, sent therewith by the bank, duly acknowledged in the prescribed manner. All payments drawn by the DDO, operating the Revolving Fund Account shall only be authorized by the DAO/TO, Lahore as the case be subject to the availability of balance in the RFA on the given date a payment is drawn.

(c) At the end of each month, after the accounts of that month have been duly compiled, the DAO/TO, Lahore as the case be, in whose


jurisdiction the RFA is operated, shall send a statement to the concerned DDO, detailing out particulars of each receipt and payment (date-wise), along with the aggregate balance, ( in words and figures) available at the end of the respective month. Such statement shall be signed by the DAO/TO with his full dated signatures.

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

MAINTENANCE OF ACCOUNTS. (BY DDOs)

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

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

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

(BY DAO/TO)1. The respective DAO/Treasury Officer, Lahore shall maintain the

accounts of each Revolving Fund Account separately, as done for Personal Ledger Accounts.

2. All receipts accruing to the RFA and payments made their against shall be reflected in the respective subsidiary register / pass book in the prescribed manner, and aggregate transactions respectively carried to the provincial cash books of receipts and payments for the month.

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

AUDITThe Statutory Audit of the Revolving Fund Accounts shall be

undertaken by the Auditor General of Pakistan, through the Director General Audit Punjab, or the Director General, Commercial Audit, as the case be, depending upon the nature of operation of the RFA.



FINANCE DEPARTMENT

Dated Lahore, the 7th December, 2004NOTIFICATION

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

Amendment65. The Project Director, Children’s Hospital/Complex, Multan, attached with

the Government of the Punjab, Health Department.----------


Dated Lahore, the 10th December, 2004.NOTIFICATION

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

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

S. # Name of Power To whom Delegated

Extent

1. Technical Sanction(original works/repair works)

Assistant Engineer (BS-17)

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

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

Assistant Engineer (BS-17)

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


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

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


Dated Lahore, the 15th December, 2004.NOTIFICATION

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

Amendment:9. “The District Monitoring Officers (DMOs), of Social Sector Programme,

Monitoring & Implementation Unit (SSPMIU)”.----------

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

FINANCE DEPARTMENT

Dated Lahore, the 22nd December, 2004

Subject: DEDUCTIONS OF IT. BF. Gl. GP. FUND RECEIPTS OF ADVANCES/ INTEREST ETC.



The Accountant General, Punjab has reported, that the procedure regarding accountal of deductions made from the civil servants working in the TMAs, issued by the Finance Department, vide letter of even number dated 17.3.2003, is not being followed in letter and spirit, in-that the deductions are not being promptly and accurately deposited and credited to the Provincial Account No.I, in the prescribed manner.

3. This position has been viewed with concern, and it is reiterated that the prescribed procedure be faithfully observed.

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finance department notification-2004 (205-258)

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