INTERNSHIP REPORT ON DISTRICT

COMPTROLLER OF ACCOUNTS MANSEHRA

Submitted by Owais Shan

Roll #F-14/B-025

Supervised by Ikram Ul Haq

Government College of Management Sciences

Mansehra

SESSION
2014-2018

i
 INTERNSHIP REPORT ON DISTRICT
COMPTROLLER OF ACCOUNTS MANSEHRA

Submitted by Owais Shan

Roll #F-14/B-025

Supervised by Ikram Ul Haq

This internship report is submitted in partial fulfillment of

the requirements for the degree of Bachelor of Business
Administration awarded by the Hazara University,
Mansehra

Government College of Management Sciences

Mansehra
SESSION
2014-2018

ii
 Government College of Management Sciences
Mansehra

APPROVAL SHEET

Approval Committee
1. External Examiner

Mr.______________________Signature____________________

2. Supervisor

Sarda Muhammad Arshad Signature_____________________

3. Head of department

Mr. Arif Zahid _________ Signature________________

Designation Principal

iii
 Dedication
I dedicate this report to my parents without whose help and encouragement it would
not have been possible for me to accomplish this task within the specific time limit. I
was provided with every facility by my parents which was necessary in order to
complete this challenging assignment

iv
 ABSTRACT
BBA is a program In which we studied about business and finance. In Pakistan the
banking sector is at the maturity stage and banking sectors are the best institutes in
which we are easily understand the practical experience. BBA gives us an opportunity
to touch the practical experience about business and finance as the internship. The
internship program in an important part to give students an opportunity to have
experience of practical field. Unless and until the student experience the novelty of
practical work, their knowledge of what they study in theoretical courses remains
incomplete.
This internship report is on my 8 weeks practical training at DAO Mansehra. In this
report I have tried to give details about the DAO, working and the functions of
different departments of DAO

v
 TABLE OF CONTENTS

Acknowledgements.......................................................................................................ix
Abbreviations.................................................................................................................x
Executive Summary......................................................................................................xi
Chapter 1........................................................................................................................1
DISTRICT ACCOUNTS OFFICE................................................................................1
1.1 Background of Study............................................................................................1
1.2 Objectives of study...............................................................................................1
1.3 PURPOSE OF STUDY........................................................................................1
1.4 RESEARCH METHODOLOGY.........................................................................1
Chapter 2........................................................................................................................3
Overview of the Organization........................................................................................3
2.1 Background..........................................................................................................3
2.1.1Separation of Audit and Accounts.....................................................................4
2.1.2 Devolution Plan.................................................................................................4
2.2 Organ gram...........................................................................................................5
2.3 Sections................................................................................................................6
Payroll Sections..........................................................................................................8
2.4 Field Offices.......................................................................................................13
2.5 G.P Fund............................................................................................................17
2.6 Computerization.................................................................................................18
2.7 Pension...............................................................................................................20
2.8 List of Accountant Generals KPK......................................................................26
Chapter 3......................................................................................................................38
Financial Analysis........................................................................................................38
3.1 Financial Analysis..............................................................................................38
4.2 FINANCIAL REPORT OF THE AG STATEMENTS OF CASH RECEIPTS
AND PAYMENTS FOR THE YEAR ENDED 30/06/2014...................................38
3.3 HORIZONTAL ANALYSIS OF STATEMENTS OF RECIEPTS AND
PAYMENTS FOR THE YEAR ENDED 30/06/2014.............................................41

vi
 3.4 PERCENTAGE ANALYSIS OF CASH RECEIPTS AND PAYMENTS FOR
THE YEAR ENDED 30/06/2014............................................................................44
3.7 SWOT ANALYSIS............................................................................................47
Chapter 4......................................................................................................................53
Findings & Recommendations.....................................................................................53
REFRENCES...............................................................................................................56

vii
 Acknowledgements

With the name of ALLAH the Most Beneficial and Merciful. I completed my
internship in DAO Mansehra. I am really pleased to have a professional learning
experience in one of leading organizations of country. In these 8 weeks I worked in
different departments and I am truly thankful to all officers and staff who entirely give
assistance to me. I am also grateful to my honorable supervisor Ikram-Ul-Haq, and
all other teachers who motivated me to work hard and taught me techniques to learn
work. The account of acknowledgement will remain incomplete if I do not express my
sincere appreciation, indebtedness and gratitude to my parents and siblings. They
have always been a source of encouragement for me.
And last but not the least I would like to express my gratitude to all the staff of DAO
Mansehra.

Owais Shan

viii
 ABBREVIATIONS

AG ACCOUNTANT GENERAL

AAG ADDITIONAL ACCCOUNTANT GENERAL

DAG DEPUTY ACCOUNTAN GENERAL

DAO DISTRICT ACCOUNTS OFFICERS

DCA DISTRICT COMPTROLLER OF ACCOUNTS

AAO ASSISTANT ACCOUTS OFFICERS

ADO ASSISTANT DISTRICT OFFICERS

TWR TEMPRARY WITHDRAWALS REGISTER

TA BILL TRAVELLING ALLOWANCE BILL

DA BILL DAILY ALLOWANCE BILL

GP FUND GENERAL PROVIDENT FUND

PIFRA PROJECT FOR IMPROVEMENT IN FINANCIAL REPORTING

AND AUDITING.

SWOT STRENGTH, WEAKNESS OPPORTUNITIES, THREATS.

ix
 EXECUTIVE SUMMARY

The Office of the Accountant General NWFP was established on 1st April, 1929 as a
small Pay & Accounts Office and was responsible for Audit & Accounts of both
Federal and Provincial transactions in NWFP. Subsequently it was re-designated as
Comptroller, NWFP on 1st November 1931. It continued to function as such till July,
1973, when its status was raised to that of Accountant General because of the
tremendous increase in the scope of its activities and load of work. 

Apart from NWFP and its adjacent Tribal Agencies, the audit jurisdiction of this
office also covered Northern Areas (Gilgit & Baltistan). The audit of Northern Areas
was, however, transferred in 1974 to the Accountant General, Pakistan Revenues
Islamabad. Similarly, in the case of Frontier Irregular Corps (Scouts & Militia), the
audit jurisdiction of this office extended to Baluchistan. But on the formation of
separate office of the Inspector General, Frontier Corps of Quetta in 1974, the audit of
the Units in Baluchistan was transferred to the Comptroller, Baluchistan.

On the formation of one Unit, the audit of two adjacent Districts in Punjab (Attock
and Mianwali) was transferred to this office from office of the Accountant General,
Punjab. Correspondingly, owing to centralization of works audit in office of the
Director, Works Audit, Lahore, the works portion was transferred from this office.
These arrangements were reversed in 1970, owing to dismemberment of One Unit.
During that period the audit of ex-States of Dir, Swat and Chitral was also taken over
by this office due to merger of these States.

The “District Accounts Office” scheme was introduced in NWFP in 1970. Initially it
was experimented in one District  i.e Mardan. By now there are 24 Districts and 7
Agency Accounts Offices, in NWFP and FATA respectively.

x
xi
xii
1
 CHAPTER 2
OVERVIEW OF THE ORGANIZATION

2.1 Background

The Office of the Accountant General NWFP was established on 1st April, 1929 as a
small Pay & Accounts Office and was responsible for Audit & Accounts of both
Federal and Provincial transactions in NWFP. Subsequently it was re-designated as
Comptroller, NWFP on 1st November 1931. It continued to function as such till July,
1973, when its status was raised to that of Accountant General because of the
tremendous increase in the scope of its activities and load of work. 

Apart from NWFP and its adjacent Tribal Agencies, the audit jurisdiction of this
office also covered Northern Areas (Gilgit & Baltistan). The audit of Northern Areas
was, however, transferred in 1974 to the Accountant General, Pakistan Revenues
Islamabad. Similarly, in the case of Frontier Irregular Corps (Scouts & Militia), the
audit jurisdiction of this office extended to Baluchistan. But on the formation of
separate office of the Inspector General, Frontier Corps of Quetta in 1974, the audit of
the Units in Baluchistan was transferred to the Comptroller, Baluchistan.

On the formation of one Unit, the audit of two adjacent Districts in Punjab (Attock
and Mianwali) was transferred to this office from office of the Accountant General,
Punjab. Correspondingly, owing to centralization of works audit in office of the
Director, Works Audit, Lahore, the works portion was transferred from this office.
These arrangements were reversed in 1970, owing to dismemberment of One Unit.
During that period the audit of ex-States of Dir, Swat and Chitral was also taken over
by this office due to merger of these States.

The “District Accounts Office” scheme was introduced in NWFP in 1970. Initially it
was experimented in one District  i.e Mardan. By now there are 24 Districts and 7
Agency Accounts Offices, in NWFP and FATA respectively.

Till July, 1979, this office was responsible for the audit and accounts of both Federal
and Provincial transactions in the Province (including Agencies). On the formation of

2
the Sub-Office of the Accountant General, Pakistan Revenues, in July, 1979, the audit
and accounts of the Federal transactions were transferred to that office.

2.1.1Separation of Audit and Accounts

Office of the Accountant General, NWFP, till 30th June, 1989 was responsible for the
local audit of accounts of the Provincial Govt departments and its autonomous bodies
and corporations and performance of audit of projects etc. The audit reports too
thereon were being prepared by this office. The function of local audit of accounts
was however withdrawn from it and assigned to newly established office of the
Director General, Audit NWFP in July 1989.

All the accounting transactions both for the Federal as well as Provincial Govts were
under the administrative and functional control of the Auditor General of Pakistan.
The separation of Audit & Accounts departments were promulgated vide Auditor
General’s ordinance  2001 and Controller Generals Ordinance 2001, since then the
Accounts Departments were independently kept under the newly created office of the
Controller General of Accounts.

2.1.2 Devolution Plan

Since the introduction of Devolution Plan on 14th August, 2001. it was a challenge for
this office to respond to the needs within the existing human and financial resources.
This office delegated preparation of accounts of 13 devolved departments at the
District Accounts Office level, as required under the Local Govt Ordinance 2001.

3
2.2 Organ gram

4
 2.3 Sections
Administration Sections

 Personnel matters of employees, Logistic support and office security.

HAD Section

 Interpretation of rules, rendering advice to field offices and Departments on

implication of Government Rules.

Coordination and Monitoring Section

 Coordinating and monitoring working of 31 field offices.

 Inspection of field offices

 Pay fixation party

GP Fund

 Maintenance of GP fund accounts of the subscribers

Fund-I Section

– Education Department (District)

– Agriculture Department (District)

– Health Department (District)

Fund-II Section

– Environment Department

– Agriculture Department

– Health Department

Fund-III Section

– Police Department

– Irrigation Department

– Excise Department.

– Works & Services Department

5
 Fund-IV Section

– Establishment and General Administration Department

– Judiciary

– Education Department

– Labour Commerce and Industries

Pension Sections

 Pension Cases of Provincial Employees.

 Family pension cases of the deceased employees.

 Revision cases.

 Restoration cases of the Pensioners.

 Post Audit of Pension Payments.

 Pension Payment authorities from AG KP to other provinces and from other
provinces to AG KP

Compilation Section

 Recording of recoveries an account of advances like GP fund, House building,

Motor car and Motor cycle advance
Sorting of manual bills

 Preparation of payment of expenditure and receipt of the Govt of KP

Book Sections

 Preparation of monthly civil account.

 Compilation of accounts prepared by District/Agency Account Offices.

 Coordination of suspense/exchange accounts.

 Maintenance of SBD  Account I, II & IV

 Reconciliation of Accounts with State Bank of Pakistan Karachi.

DA Sections

 Reconciliation with Provincial  Departments at controlling level.

 Preparation of Classified abstract Received from various DAOs.

 Preparation of FMC Reports.

6
 Preparation of MIS Reports.

 Providing Expenditure Figures for Appropriation Accounts .

WAD Sections

 Accounting and post audit of works accounts

Deposit & Loan

 Advances i.e HBA, Motor cycle Advance and Cycle Advance to non gazetted
employees and watching their recoveries

 Maintenance of PLA/SDAs

 Assignment Accounts

 Reconciliation of the assignment Accounts & PLA of various Departments

and projects

 Lapsed deposits of revenue department/court cases

Payroll Sections

Payroll-I:

Deals with the claims of following Departments at District level:

 Excise & Taxation Department.

 City District Government.

 Deputy Commissioner, Peshawar.

 C&W Highway Division, Peshawar.

 District Sports Office, Peshawar.

 WS&S Department.

 Town Administration, Peshawar.

 Civil Defense Office,Peshawar.

 Revenue & Estate Department, Peshawar.

 Human Resource Development, Peshawar.

 Govt. High School Nakband, Peshawar.

Payroll-II:

Deals with the claims of following Departments at District level:

7
 District Officer (Female), School & Literacy Department.

 All Govt. Girls High & Higher Secondary Schools, Peshawar.

Payroll-III:

Deals with the claims of following Departments at District level:

 District Officer (Male), School & Literacy Department.

 All Govt. High & Higher Secondary Schools, Peshawar.

 Institute for Blind, Peshawar.

 City District Govt. Works & Services, Deptt. Peshawar.

 Social Welfare, Deptt. Peshawar.

Payroll-IV:

Deals with the claims of following Departments at District level:

 Executive District Officer, Health Department.

 Govt. High School for Deaf, Peshawar.

 Institute for Blind (Girls), Peshawar.

 Govt. Maternity Hospital, Peshawar.

 Govt. I.D Children Hospital, Peshawar.

 Social Welfare Deptt, Peshawar.

 District Officer, Labour Deptt, Peshawar

 District Officer, Agriculture Extension, City District Govt, Peshawar.

 District Soil Conservationist, Peshawar.

 District Officer, Fisheries, Peshawar.

 Municipal Corporation, Peshawar.

 Rehabilitation Center for Drug Addicts, Peshawar.

 Welfare Home for Children Baggers, Peshawar.

 Interrogated Social Development Center, Peshawar.

 Vocational Training Center for Disabled Persons, Peshawar.

 National Special Eduction Center, Peshawar.

8
 Payroll-V:

Deals with the claims of following Departments at Provincial level:

 Governor House, Peshawar.

 Chief Minister’s Secretariat, Peshawar.

 Establishment & Administration Department, Peshawar.

 KPK Public Service Commission, Peshawar.

 Home & Tribal Affairs Department, Peshawar.

 Anti Corruption, Peshawar.

 Local Govt. Elections & Rural Development Department, Peshawar.

 Pak Academy for Rural Development, Peshawar.

 Peshawar High Court, Peshawar.

 Senior Civil Judge, Peshawar.

 Inter Provincial Coordination Department, Peshawar.

 Environment Department, Peshawar.

 Provincial Highways and Bridges, Peshawar.

 Commissioner Peshawar Division, Peshawar.

 Provincial Building Maintenance Cell, Works & Services Deptt, Peshawar.

 Research and Development, Peshawar.

Payroll-VI:

Deals with the claims of following Departments at Provincial level:

 Police Department, Peshawar.

 Advocate General, Peshawar.

 Public Prosecutor, Peshawar.

 Agriculture Department, Peshawar.

 Public Safety Commission, Peshawar.

 Live Stock and Rural Development Department, Peshawar.

 Law Department, Peshawar.

 Provincial Transport Authority, Peshawar.

9
 Govt. Technical and Vocational Training Center for Women, Peshawar.

Payroll-VII:

Deals with the claims of following Departments at Provincial level:

 Provincial Assembly Khyber Pakhtunkhwa, Peshawar.

 Revenue & Estate Department, Peshawar.

 Secretary Excise & Taxation Department, Peshawar.

 Secretary Works and Services Department, Peshawar.

 Irrigation Department, Peshawar.

 Directorate of Information Technology, Peshawar.

 Small Dams Organization, Peshawar.

 Provincial Disaster Management Authority, Peshawar.

 Communication and Works Department, Peshawar.

Payroll-VIII:

Deals with the claims of following Departments at Provincial level:

 Secretary Education Department, Peshawar.

 Directorate of Schools & Colleges, Peshawar.

 Local Government Department, Peshawar.

 Information Department, Peshawar.

 Museum, Peshawar.

 Mines and Mineral Department, Peshawar.

 Peshawar High Court, Peshawar.

 Directorate of Technical Education, Peshawar.

 Archives and Libraries Department, Peshawar.

 Stationery and Printing Department, Peshawar.

 Industries, Commerce and Labour Department, Peshawar.

 Environment Protection Agency, Peshawar.

 Directorate of Fisheries, Peshawar.

 Transport Department, Peshawar.

10
 Higher Education Department, Peshawar.

Payroll-IX:

Deals with the claims of following Departments at Provincial level:

 Secretary Health Department, Peshawar.

 Directorate Health, Peshawar.

 Government City Hospital, Peshawar.

 Police Hospital, Peshawar.

 Lady Reading Hospital, Peshawar.

 Provincial Health Services Academy, Peshawar.

 Population Welfare Department, Peshawar.

 Public Health Schools, Peshawar.

 Nursing Schools, Peshawar.

Payroll-X:

Deals with the claims of following Departments at Provincial level:

 Secretary Excise and Taxation Department, Peshawar.

 Directorate Sports and Culture, Peshawar.

 Treasury Office, Peshawar.

 Directorate of Labour, Peshawar.

 Food Department, Peshawar.

 Provincial Health Services Academy, Peshawar.

 Population Welfare Department, Peshawar.

 Public Health Schools, Peshawar.

 Nursing Schools, Peshawar.

Cheque Sections:
Cheque Section implements the Cheque Module of the SAP System and prints
Cheques and send Scrolls to the State Bank
 Computer Coordination Section

 Coordination of computerization activities of AG and Field offices.

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2.4 Field Offices
District Accounts Offices
Phone Fax Date of
Sr. Station Name of Officer(s)
Number(s) Number(s) Establishment

Muhammad Hanif
(DCA) 
0992-
Aziz Ur Rehman 9310352
1 Abbottabad 9310219 01/04/1970
(ADAO I) 9310138
9310351
Sardar Muhammad
Saleem (ADAO II)

Fida Muhammad
0937-
(DCA) 
2 Mardan 9230229 9230209 01/03/1970
Muhammad Nisar
9230066
(DAO)

Slemm Khan
(DCA) 
0946-
Murad Ali (ADAO
3 Swat 9240346 01/01/1971
I) 
9240345
Momin Khan
(ADAO II)

Muhammad Imran
(DCA)  0928-
4 Bannu 9270068 01/09/1970
Muhammad Nazir 9270030
(ADAO)

Saeed Ur Rehman
(DCA) 
0966-
Muhammad
5 D.I.Khan 9280274 9280556 01/06/1970
Shakoor (ADAO I) 
9280273
Ijaz Ahmad Jatoi
(ADAO II)

Said Akbar (DCA)  0922-

9260302
6 Kohat Tasleem Badshah 9260316 01/06/1970
515243
(DAO) 9260302

Afsar Ali (DAO) 

0943-
7 Chitral Shakeel Ahmad 412109 01/01/1971
412625
(ADAO)

Sarzamin Khan 0945-

8 Dir Lower 01/01/1971
(DAO) 9250143

12
 Sardar Aftab Ahmad
(DAO) 0997-
9 Manshera Zulqarain Qureshi 920135 920136 01/01/1971
(ADAO) 920134

Syed Munir Hussain 0998-

10 Kohistan 01/01/1977
Shah (DAO) 407015

Nowshar Khan
0927-
11 Karak (DAO)  210710 01/07/1982
210529
Liaqat Ali (ADAO)

Muhammad Qasim
0923-
12 Nowshera (DAO)  9220266 01/07/1990
9220119
Zahir Shah (ADAO)

0939-
13 Buner Sajid Khan (DAO) 510448 01/08/1991
510484

Muhammad Haroon
0995-
(DAO) 
14 Haripur 615464 01/08/1992
Atta Ur Rehman
611568
(ADAO)

Muhammmad
Lakki Farooq (DAO)  0969-
15 538330 01/08/1992
Marwat Qayum Khan 538137
(ADAO)

Muhammad Ali 0963-

16 Tank 511713 01/08/1992
(DAO) 511226

Muhammad Hanif
(DAO)  0997-
17 Batagram 01/07/1994
Attz Ur Rehman 310413
Abbassi (ADAO)

0944-
18 Dir Upper Iqbal Ahmad (DAO) 890118 01/01/1998
880820

Aftab Ahmad 0938-

19 Swabi 01/07/1999
(DAO) 221253

20 Charsadda Amir Tayyab 091- 9220142 01/07/1999

Hussain 9220136
Shah(DAO) 
Wali Ur Rehman

13
 (ADAO)

Mir Zali Khan 0996-

21 Shangla 850773 01/07/2001
(DAO) 850773

Aitabar Khan 0925-

22 Hangu 01/07/2001
(DAO) 623290

Zulfiqar (DAO) 
0932-
23 Malakand Muhammad Yaqoob 411002 01/04/1970
411451
(ADAO)

Aman Ulla (DAO)  0997-

–
24 Tor Ghar Muhammad Azam 920137
–
(ADAO) –

14
 Agency Accounts Offices
Phone Fax Date of
Sr. Station Name of Officer(s)
Number(s) Number(s) Establishment

2 0942-
Bajaur Maqsood Jan (AO) 220388 01/07/1982
5 220356

2 Anwar Kamal(AAO)  0928-

Miranshah 300741 01/07/1982
6 Arif Ullah Jan (AAO) 300541

Gohar Ali (AAO) 

2 091-
Khyber Nawab Khan Afridi 01/07/1982
7 5827895
(AAAO)

Ghulam Ghaffar
2 0963-
Tank (AAO)  512553 01/07/1982
8 512553
Atta Ullah (AAAO)

Muhammad Rafiq 0924-

2 Mohmand
(AAO)  290176 290293 01/07/1980
9 Ghallani
Sajjad Anwar (AAAO) 290234

Abdul Waheed (AAO) 

3 0925- 621542
Orakzai S. Mujahid Hussain 01/07/1982
0 922920 620060
Shah (AAAO)

3 Muhammad Ismail 0926-

Kurram 01/09/1970
1 Khan 310497

15
 2.5 G.P Fund

Requirements for G.P Fund Withdrawal:

G.P Fund Final Payment:

1. Form-10 containing the following information:-

a. Name (with father’s name of the retired/deceased etc. civil servant.)

b. Designation of the post held.

c. G.P Fund Account Number/Numbers assigned by the Accounts Office.

d. Name, age, relationship of the Nominee (in case of death of

subscriber).

e. A certificate from the DDO stating whether any advance from the fund
was granted to the subscriber during the previous 12 months, and if so full
particulars of the advance.

f. Amount/month of Last Fund Deduction (copy of Pay Roll).

g. Duly signed by the applicant and DDO.

2. Photocopy of Computerized NIC.

3. Copy of Pay Roll in which G.P Fund deduction ceased.

4. Pay Stoppage Certificate duly signed by DDO concerned.

5. Application in original by the subscriber for Final Payment.

6. Number and date of Credit Memo balance thereby transferred from other
DAO/AAO.

Advance from G.P Fund:

1. Temporary/Refundable Advance:
The following documents are essentially be furnished to AG/DAO/AAO for
Temporary Advance.

a. Form TR-58 (for officials BPS-1 to 15).

b. Pay Bill (for BPS 16 and above).

c. Source-5 duly completed in all respects.

d. Sanction from the competent authority mentioning therein Number &

date.

16
 e. Copy of last Balance Sheet.

f. Copy of Computerized NIC.

g. Number & date of Credit Memo balance thereby transferred from other
DAO/AAO.

2. Permanent/Non-Refundable Advance:

a. Three advances are admissible 1st at the age of 45 to 50, 2nd at 50 to

55 years and 3rd at 55 to 58.

b. Form TR-58 (for non-gazetted).

c. Pay bill (for gazetted).

d. Source-6 completed in all respects.

e. Sanction from the competent authority with Number & date.

f. Copy of first page of Service Book for age verification.

g. Copies of Last Payroll and last Balance Sheet.

Note: All entries in the Form TR-58, Pay Bill and Source-5 or 6 complete in all
respects.

G.P Fund Transfer Case:

1. Name & designation.

2. G.P Fund Account Number.

3. Personal Number.

4. Copy of Computerized NIC.

5. Copy of last Payroll.

6. Application duly signed by subscriber.

7. Number & date of the balance transferred from any other DAO/AAO.

8. Copy of Last Pay Certificate (LPC).

 Note: The above requirements will be reduced/change after full computerization and
completion of Master Data of the subscribers.

17
2.6 Computerization
LEGACY SYSTEM (1983-APRIL-2003)
(PRE-SAP PHASE)

History of AG NWFP is replete with success stories and land mark achievements
especially regarding office automation. The first Computer Cell was established in
1983 with a purpose to computerize the salaries of the government servants. The cell
started functioning with “Detobe” as IT platform. The Computer Cell was manned by
a selected staff of six persons. The Computer Cell, using IBM data entry setup,
initially took over Federal Government Accounts for processing. The Computer
Center was located at PAF, Badaber as the processing activity had been out-sourced.
In the mean while the data base of the Provincial Government Accounts was also
placed at the service of the Computer Center for processing.

In 1985, the data processing activity was then shifted to Habib Bank Computer Centre
(IBM System-36) and their bureau services were utilized on payment.

In November 1985 Pay Roll computerization stared at AG NWFP (both Federal and
Provincial employees). All the Payroll data entry used to be done by Habib Bank
Limited staff on payment. The facility was later on extended first to DAO Mardan as
Pilot DAO.

Keeping in view the advantages and successful computerization process in AG NWFP

Provincial Government of NWFP funded for the computerization of DAO Swat,
Kohat, Bannu, D.I.Khan, Mansehra, Malakand and Dir as project of P&D Department
and single unit of IBM AS-400 was installed at these DAOs. This set up of
computerization was not integrated and there was no Centralized Networking and
Data Base.

In February 1994, the office become self sufficient in IT and the related human skills
and eventually the first in-house installation started with ICL as IT platform at AG
NWFP and DAO Abbotabad.

PIFRA

The land mark achievement took place in May 2003, when SAP/R03 was introduced
under the auspices of Project for Improvement in Financial Reporting and Auditing

18
(PIFRA) at AG NWFP and Abbotabad. After the initial efforts the salary for the
month of October 2003 was processed through SAP/R03.

The NWFP became the first Province to have online Accounting of all the 24 Districts
and AG, NWFP.

It progressed leaps and bounds due to the untiring and selfless efforts of officers, staff
and experts. Not only the accounts offices but the Finance Department, all the District
Finance and Planning Offices and a number of Principal Account Offices (Provincial
Departments) are interconnected.

The Departments can generate Financial and as well as employees related reports at
their own. The AG Office not only generate and compile Monthly Accounts from the
system but a number of other reports like IPSAS based Financial Statement,
Appropriation Accounts, Finance Accounts, Budget Execution Reports etc for the
benefit of the Government and the end users.

The AG Office can rightly claim to be the most modern, responsive, vibrant and
technically sound among the public sector organizations.

2.7 Pension
Pension Types
1. Retiring Pension:

Retiring pension is granted to a government servant who retires from service after
completing 25 years.

2. Superannuation Pension:

Superannuation pension is granted to a Government servant who is entitled or

compelled by rules to retire at a particular age. Currently a civil servant gets retired on
attaining the age of 60 years.

3. Invalid Pension:

Invalid pension is awarded to a government servant who due to physical or mental

infirmity is permanently incapacitated for the public service, or for the particular
branch of it to which he/she belongs. The infirmity has, however, to be certified by
duly constituted Medical Board.

19
 There are two different scenarios for this kind of pension.

1. If any employee declared unfit for the duty but his Service is less than 10
years than He/She will be Paid 1.5 month pay against each completed year as
Gratuity only.

2. If any employee declared unfit for the duty but his Service is more than 10
years than He/She will be paid 60% of his/her gross pension as a Net Pension Per
Month and 40% of his/her gross pension as commutation.

4. Family Pension:

Family Pension is granted to the family of the Government servant who dies.

There are two Scenarios in Family Pension case

1. Death Before Retirement:

If any employee dies before his/her retirement then Family Pension will be paid to
his/ her spouse / successor. If the service of the deceased employee is less than 10
years then he/she will be paid ONE & HALF MONTH Pay against each completed
year as a Gratuity only.
If service of the employee is more than 10 years before death then
⇒ 25% of the Gross pension will be paid to him/her as a Gratuity.
⇒ 75% of the Gross pension will be paid to his/her family as a family pension per
month.

2. Death after Retirement:

If any employee dies after his/her retirement then his/her spouse/successor will be
paid

a. Family Pension
75% of his/her Net Pension (drawn by deceased) as a Family Pension per month.

b. Life Time Arrears (LTA)

If any pensioner died and he/she could not draw his/her monthly pension for
some time, this un-drawn pension will be paid to his/her family.

5. Compensation Pension:

If a government servant is selected for discharge owing to the abolition of a

permanent post, he shall, unless he is appointed have the option of taking any

20
 compensation pension or gratuity to which he may be entitled for the service he has
already rendered.

6. Anticipatory Pension:

When a government servant is likely to retire before his pension could be finally
assessed and he can be allowed anticipatory pension. For this purpose the sanctioning
authority should furnish to the Audit office with all the particulars of service in
respect of the retiring Government servant. The Audit Office should sanction the
disbursement of the amount of pension to which after the most careful summary
investigation, he believes the Government servant to be entitled.

7. Gratuity:

A government servant who has rendered five years qualifying service or more but less
then ten years may be granted gratuity not exceeding one months emoluments for
each completed year of qualifying service. In case of invalidation and death the rate
will be 1-1.50 months pay for each completed year of service. This amount will be
paid to him at the time of his retirement or to his family in the event of his death while
in service death (special package)

8. Extraordinary Pension:

When a Government servant is injured, killed or dies of injuries received during the
execution of public duty, an extraordinary pension or gratuity may be granted to him
or to his family in accordance with the rules.

Pension Case Requirements

Documents to be presented to Audit office for grant of Pension.

(A)

1. Forwarding Memo from his/her department

2. Pension Papers (i.e. Relevant Form) in duplicate

 All columns of the Pension papers should be completed / filled.

 Page-2 should be signed by the Pensioner in case of family Page-3.

 Page-4 should be signed by Head of Office/ Department.

 Page-6 Section-7 should be signed by Sanctioning Authority.

21
. Three Photographs of the Pensioner (attested by the Department).

. Three Photo copies of Computerized National Identity Card (CNIC) of the

pensioner (attested by the Department).

. Photocopies of the Computerized National Identity Card (CNIC) of his/her

family members (attested by the department).

. List of family members showing their names, Age OR Date of Birth, Relation
with Pensioner (attested by the Department).

. Last Pay Certificate (LPC) in Non-Gazatted cases till date of Retirement and
pay stoppage certificate duly signed by the DDO. Overpayment if any be recorded
on reverse of LPC (signed by the DDO).

. Complete leave account duly signed by the DDO.

. Original Retirement order/notification.

. No-demand certificate signed by the Sanctioning Authority.

. Declaration, Undertaking and Option for commutation (signed by the

Pensioner and attested by the DDO/Sanctioning Authority).

. Last computer payroll (Attested Photocopy)

. Descriptive Roll and Specimen signatures, Thumb & Figures impression of

Pensioner, Postal Address / Contact Nos.

. In cases of Gazatted Govt. servants the following No demand certificates may

be attached i.e. certificate regarding completion of recovery of all kind of
advances. No Demand Certificate from Income Tax as well Estate Office / S &
GAD.

(B)

15. In case of Non-Gazatted Govt. servants the Service Book should be attached
after completing the following…

 Page -03 of the Service Book may be completed in all respects i.e.
Name, Father Name, Date of Birth, Signature / Thumb Impression if the Govt.
servants, Nationality, Religion etc.

 Page-03 of the Service Book should be re-attested as per note printed

on front top of the said page with full dated signature.

22
  Appointment entry may be made in the Service Book with No. & Date.

 Service verification for the entire period of his service should be

recorded duly numbered.

 Periodical entries of Pay may be recorded in Service Book as well as

Leave Account.

 Entries of all kinds of leave should be recorded in the Service Book.

 Column-08 of all pages of Service Book should be signed by the

Government servant.

 Entries of Departmental Pay fixation/Move-over / up-Gradation /

reversion on the eve of Promotion/ Selection Grade (before 01.12.2001) may be
recorded in the Service Book.

 Entries of stoppage of increments etc. may be recorded in Service

Book.

 Entry of Suspension re-instatement, Removal, Dismissal reversion

wilful absence etc. should be recorded in the Service Book.

(C)

 Pay fixation by the Audit (Pay Fixation Party).

 Detail of recoveries of Overpayment Pointed out by the Audit (Pay

Fixation Party).

 In case the recovery has been made Good through Treasury Challan,
the same may be verified by the State Bank / Treasury Officer.

 Entries regarding transfer / deputation may be made in Service Book.

 Entry regarding retirement may be made in the Service Book.

 In case of invalid Pension, the original Invaliding roll and Form-8

(Pen) should be submitted with the case. Overwriting, erasing, tempering and
cutting in the recorded date of birth on Page-3 of the Service Book should
strictly be avoided (As well as in name, Father Name)

 Entry regarding court decision as well as entry of Departmental

implementation order may be made in Service Book.

23
  Present Postal Address in the relevant column of pension papers along
with contact telephone number of the pensioner.

 All entries should be neat & clear. Overwriting, cutting, remaining,

tempering, erasing should strictly be avoided.

(D)

16. In case of death during service the following documents should be submitted
in addition to the above (from Serial No. 1 to 14)…

 List of Family members showing their names age/ date of birth,

relation with Pensioners and Marital Status.

 Certificates of Non-Separation and Non-remarriage of widow

/widower (Signed by the Drawing and Disbursing Officer).

 Guardianship certificate in case of minor children (signed by the

DDO).

 A certificate to the effect that children mentioned in the list are

legitimate and not adopted (signed by the DDO).

 Death certificate (Original).

 Three photographs of widow / widows (attested by the Department).

 Three photo-copies of CNIC of widow/widows (attested by the

Department).

 Descriptive Roll (on proper form) duly attested by the department.

 Specimen signature / Thumb and fingers impression slip (attested by

the Department).

 In case of authorization of family pension to the un-married daughter /

daughters the non-marriage certificate (signed by the competent authority).

(E)

 A certificate to the effect that there is no other widow / widows, son /

daughter / daughters of the deceased except shown in the list (attested by the
DDO).

24
 In case of death after retirement, the application of the widow and
forwarding memo should be attached with the above documents.

 In case of Superannuation Pension ONE YEAR before the Date of

Retirement the Department shall initiate the case.

 And in case of Retiring Pension at least THREE MONTHS before the

Date of Retirement application shall be preferred.

25
2.8 List of Accountant Generals KPK

Sr. No. Picture Officer Name From To

30-10-
1 E.T Coates 30-10-1931
1930

31-10-
2 L.J Peck 10-04-1932
1931

11-04-
3 SH. Taj Muhammad 02-03-1933
1932

03-03-
4 A.B Cockburn 30-11-1933
1933

01-12-
5 Zahid Husain 23-12-1933
1933

26
 24-12-
6 A.B Cockburn 31-01-1935
1933

01-02-
7 Zahid Husain 14-07-1936
1935

15-07-
8 E.W Grindal 25-08-1936
1936

26-08-
9 Zahid Husain 25-02-1937
1936

26-02-
10 E.E.C Prince 31-03-1937
1937

01-04-
11 S.A Vaneswar 01-08-1937
1937

27
 02-08-
12 P.C Chaudhry 30-09-1939
1937

01-10-
13 Ishwar Dayal 09-08-1941
1939

10-08-
14 B.C Banerji 14-03-1944
1941

15-03-
15 Bashir Ahmad 22-08-1947
1944

23-08-
16 Fazal-e-Haq 16-07-1951
1947

17-07-
17 Abdul Hamid 08-11-1953
1951

28
 09-11-
18 Abdul Hamid Butt 08-03-1958
1953

18-06-
19 N.A Chaudhry 19-05-1960
1958

20-05-
20 M.A Khan 31-03-1964
1963

01-04-
21 Mazhar Husain 11-08-1965
1964

12-08-
22 Muhammad Sarfaraz 04-02-1966
1965

05-02-
23 Namet Ilahi 26-11-1968
1966

29
 27-11-
24 Mehboob Siddiqi 09-02-1970
1968

19-02-
25 K.U Faruqui 08-06-1970
1970

27-07-
26 Mushtaq Ahmad 01-11-1970
1970

02-11-
27 S. Iftikhar Shabbir 15-02-1971
1970

07-04-
28 Zia-u-Ahmad 01-03-1972
1971

18-04-
29 Inam-ul-Haq 23-11-1972
1972

30
 Charge held by
24-11-
30 Khursheed Ahmed 09-07-1973
1972
(D.C.I, D.A.G.I)

Accountants General of NWFP

Officer
Sr. No. Picture From To
Name

Zia-ul-Haq
31 10-07-1973 30-05-1975
Khan

M.I.R
32 31-05-1975 04-08-1975
Hashmi

S.A.K
33 05-08-1975 16-10-1976
Rehmani

31
 Mehmood
34 Ahmad 03-11-1976 09-02-1977
Lodhi

Syed
35 Shaukat 14-03-1977 19-09-1977
Hussain

Mehmood
36 Ahmad 20-09-1977 24-08-1982
Lodhi

Muhammad
37 Yousaf 25-08-1982 16-01-1988
Khattak

Iftikhar
38 Ahmad 17-01-1988 15-01-1988
Khan

32
 Raja
Mohammad
39 24-10-1988 18-02-1989
Saleem
Khan

Iftikhar
40 Ahmad 19-02-1989 23-04-1991
Khan

Sheikh
41 Naseer-ul- 24-04-1991 03-05-1995
Haq

Salah-ud-
42 04-05-1995 30-08-1997
Din

43 S.M Arif 08-09-1997 09-05-2001

33
 Syed
44 Moazzam 10-05-2001 04-05-2003
Hussain

Ahmed
45 Rasul 05-05-2003 31-05-2007
Bangash

Himayat
46 01-06-2007 23-08-2008
Ullah Khan

Fahim Ullah
47 24-08-2008 17-02-2009
Khattak

Charge held
by Sher
Bahadar
48 Arbab 18-02-2009 17-04-2009
Additional
Accountant
General

34
 Accountants General, Khyber Pakhtunkhwa, Peshawar
Post upgraded to BPS-21

Sr.
Picture Officer Name From To
No.

18- 31-
49 Fahim Ullah Khattak 04- 08-
2009 2009

01- 31-
50 Ahmed Rasul Bangash 09- 01-
2009 2012

01- 02-
51 Farhad Khan 02- 09-
2012 2013

Charge held by
02- 04-
Muhammad Asif
52 09- 10-
Khan (CAAF,
2013 2013
Peshawar)

35
 04- 24-
53 Najibullah Khan 10- 11-
2013 2014

24- 15-
54 Mrs. Hashmat Iqbal 11- 07-
2014 2015

15- 16-
Shahzada M. Taimur
55 07- 04-
Khusrow
2015 2016

17- 30-
Charge held by Yaren
56 04- 05-
Khan Deputy CGA
2016 2016

36
 30- 04-
Sharifullah Khan
57 05- 08-
Wazir
2016 2017

07- 18-
58 Sher Bahadar Arbab 08- 02-
2017 2018

26-
Muhammad Ajmal
59 02-
Gondal
2018

37
 CHAPTER 3
FINANCIAL ANALYSIS

3.1 Financial Analysis

4.2 FINANCIAL REPORT OF THE AG STATEMENTS OF CASH

RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 30/06/2014
2014 2013
Rupees in Millions Rupees in Millions
Receipt and
Payment Receipt and Payment
Contributed by Contributed by Govt
Govt
Operations
Salaries and Employees Benefits 140576 56982
Operating Expense 80109 55292
220685 112274
Transfer
Grands ,Subsidies and Write-off of
10890 4405
Loans
Other Transfer Payments 8279 6586
19169 10991
Expenditure on
Physical Assets 3383 998
Civil Works 28453 33174
31836 34172
Debt and interest payments
Principal Repayment of Debt 16952 13653
Servicing of Debt 6255 5692
23207 19345
Other Payments
Loan and Advance 6276 5996
Investments 9500 9000
15776 14996
Payments of Districtt Govt 54 84618
TOTAL PAYMENTS 310727 276396
NET PAYMENT OF PROVINCIAL
23664 (10335)
CONSOLIDATED FUNDS
NET RECEIPT OF PUBLIC
17334 2060
ACCOUNT
INCREASE/(DECREASE) IN CASH 40998 (8275)
CASH AT BEGINNING OF THE YEAR 14071 9607

38
DECREASE IN CASH 40998 (8275)
CASH AT THE END OF THE YEAR 55069 14071

Interpretation of horizontal analysis

Horizontal analysis of financial statements involves comparison of a financial ratio, a
benchmark, or a line item over a number of accounting periods. This method of
analysis is also known as trend analysis. Horizontal analysis allows the assessment of
relative changes in different items over time. It also indicates the behaviour of
revenues, expenses, and other line items of financial statements over the course of
time.
Accounting periods can be two or more than two periods. Accounting period can be a
month, a quarter or a year. It will depend on the analyst’s discretion when choosing an
appropriate number of accounting periods. During the investment appraisal, the
number of accounting periods for analysis is based on the time horizon under
consideration.
Horizontal analysis of financial statements can be performed on any of the item in the
income statement, balance sheet and statement of cash flows.
Horizontal analysis can be performed in one of the following two different methods
i.e. absolute comparison or percentage comparison.
Absolute Comparison
One way of performing horizontal analysis is comparing the absolute currency
amounts of some items over the period of time.

Percentage Comparison
In the second method of horizontal analysis, percentage differences in certain items
are compared over a period of time. The absolute currency amounts are converted into
the percentages for the purpose of comparison.
From the above mentioned data which I use for horizontal analysis following are my
result about the account office for the year 2014 salary and employees benefits
increase Rs.83594 million on the other hand operating expenses also increases to
Rs.24817 million, grand and subsidiaries increases Rs.6485 million and other
transfer payment increase Rs.1673 million to improves employee satisfaction and

39
also to meeting the day to day operating expenses, physical assets increases Rs.2385
million, civil works decreases by Rs.4721,principal repayments of debt and increase
Rs.3299 million ,servicing of debt increases Rs.563 million, loan and advances
increases Rs 280 million, investments increases Rs.500 million and in the same way
payments data is calculated. There are several reasons of increasing and decreasing
of receipt and payments accounts some are known and some are unknown primary
cause of increase and decrease is shifting of office building and record.

Horizontal analysis does not fully disclose the weaknesses or strengths of a company.
The following are the main purposes of horizontal analysis:

(1) To see the trend of various income statement and balance sheet figures of a
company.
(2) To evaluate whether the management is achieving its objectives or not.
(3) To investigate unexpected increases or decreases in financial statement items.
(4) To evaluate overall performance of the company

In a horizontal analysis the changes in income statement and balance sheet items are
computed (in dollars and percentage) and compared with the expected changes.

40
3.3 HORIZONTAL ANALYSIS OF STATEMENTS OF RECIEPTS
AND PAYMENTS FOR THE YEAR ENDED 30/06/2014

2014 2013
Dollar
Rupees in Rupees in
change
Millions Millions
Receipt and Receipt and
Payment Payment
Contributed by Contributed by
Govt Govt
Operations
Salaries and Employees Benefits 140576 56982 83594
Operating Expense 80109 55292 24817
220685 112274 108411

Transfer
Grands ,Subsidies and Write-off
10890 4405 6485
of Loans
Other Transfer Payments 8279 6586 1693
19169 10991 8178

Expenditure on
Physical Assets 3383 998 2385
Civil Works 28453 33174 (4721)
31836 34172 (2336)

Debt and interest payments

Principal Repayment of Debt 16952 13653 3299

Servicing of Debt 6255 5692 563
23207 19345 3862

Other Payments

Loan and Advance 6276 5996 280

Investments 9500 9000 500
15776 14996 780
Payments of Districtt Govt 54 84618 (84564)
TOTAL PAYMENTS 310727 276396 34331
NET PAYMENT OF 23664 (10335) 33999
PROVINCIAL CONSOLIDATED

41
FUNDS
NET RECEIPT OF PUBLIC
17334 2060 15274
ACCOUNT
INCREASE/(DECREASE) IN
40998 (8275) 49273
CASH
CASH AT BEGINNING OF THE
14071 22346 (8275)
YEAR
DECREASE IN CASH 40998 (8275) 49273
CASH AT THE END OF THE
55069 14071 40998
YEAR
Interpretation of horizontal analysis
Horizontal analysis of financial statements involves comparison of a financial ratio, a
benchmark, or a line item over a number of accounting periods. This method of
analysis is also known as trend analysis. Horizontal analysis allows the assessment of
relative changes in different items over time. It also indicates the behaviour of
revenues, expenses, and other line items of financial statements over the course of
time.
Accounting periods can be two or more than two periods. Accounting period can be a
month, a quarter or a year. It will depend on the analyst’s discretion when choosing an
appropriate number of accounting periods. During the investment appraisal, the
number of accounting periods for analysis is based on the time horizon under
consideration.
Horizontal analysis of financial statements can be performed on any of the item in the
income statement, balance sheet and statement of cash flows.
Horizontal analysis can be performed in one of the following two different methods
i.e. absolute comparison or percentage comparison.
Absolute Comparison
One way of performing horizontal analysis is comparing the absolute currency
amounts of some items over the period of time.

Percentage Comparison
In the second method of horizontal analysis, percentage differences in certain items
are compared over a period of time. The absolute currency amounts are converted into
the percentages for the purpose of comparison.

42
From the above mentioned data which I use for horizontal analysis following are my
result about the account office for the year 2014 salary and employees benefits
increase Rs.83594 million on the other hand operating expenses also increases to
Rs.24817 million, grand and subsidiaries increases Rs.6485 million and other
transfer payment increase Rs.1673 million to improves employee satisfaction and
also to meeting the day to day operating expenses, physical assets increases Rs.2385
million, civil works decreases by Rs.4721,principal repayments of debt and increase
Rs.3299 million ,servicing of debt increases Rs.563 million, loan and advances
increases Rs 280 million, investments increases Rs.500 million and in the same way
payments data is calculated. There are several reasons of increasing and decreasing
of receipt and payments accounts some are known and some are unknown primary
cause of increase and decrease is shifting of office building and record.

Horizontal analysis does not fully disclose the weaknesses or strengths of a company.
The following are the main purposes of horizontal analysis:

(1) To see the trend of various income statement and balance sheet figures of a
company.
(2) To evaluate whether the management is achieving its objectives or not.
(3) To investigate unexpected increases or decreases in financial statement items.
(4) To evaluate overall performance of the company

In a horizontal analysis the changes in income statement and balance sheet items are
computed (in dollars and percentage) and compared with the expected changes.

3.4 PERCENTAGE ANALYSIS OF CASH RECEIPTS AND

PAYMENTS FOR THE YEAR ENDED 30/06/2014

2014 2013
Rupees in Rupees in % Analysis
Millions Millions
Receipt and Receipt and

43
 Payment Payment
Contributed by Contributed by
Govt Govt
Operations
Salaries and Employees Benefits 140576 56982 146.70%
Operating Expense 80109 55292 44.88%
220685 112274 96.55%
Transfer
Grands ,Subsidies and Write-off
10890 4405 147.21%
of Loans
Other Transfer Payments 8279 6586 25.70%
19169 10991 74.40%

Expenditure on
Physical Assets 3383 998 238.97%
Civil Works 28453 33174 (14.23)%
31836 34172 (6.83)%

Debt and interest payments

Principal Repayment of Debt 16952 13653 24.16%

Servicing of Debt 6255 5692 9.89%
23207 19345 19.96%

Other Payments

Loan and Advance 6276 5996 4.66%

Investments 9500 9000 5.55%
15776 14996 5.20%
Payments of Districtt Govt 54 84618 (99.93)%
TOTAL PAYMENTS 310727 276396 12.42%
NET PAYMENT OF
PROVINCIAL 23664 (10335) (328.96)%
CONSOLIDATED FUNDS
NET RECEIPT OF PUBLIC
17334 2060 741.45%
ACCOUNT
INCREASE/(DECREASE) IN
40998 (8275) (595.44)%
CASH
CASH AT BEGINNING OF THE
14071 22346 (37.03)%
YEAR
DECREASE IN CASH 40998 (8275) (595.44)%

44
CASH AT THE END OF THE
55069 14071 291.36%
YEAR

Interpretation of Vertical analysis

Vertical analysis of financial statements is a technique in which the relationship
between items in the same financial statement is identified by expressing all amounts
as a percentage a total amount. This method compares different items to a single item
in the same accounting period. The financial statements prepared by using this
technique are known as common size financial statements.

This analysis is performed on the income statement as well as the balance sheet.

Balance Sheet

When applying this method on the balance sheet, all of the three major categories
accounts (i.e. assets, liabilities, and equity) are compared to the total assets. All of
the balance sheet items are presented as a proportion of the total assets. These
percentages are shown along with the absolute currency amounts.

Income Statement

And when applying this technique to the income statement, each of the expense is
compared to the total sales revenue. The expenses are presented as a proportion of
total sales revenue along with the absolute amounts.
Through percentage analysis following are my result about the account office salary
and employees benefits increase 146.70% while operating expenses increased
44.88% grand and subsidiaries increases 147.21% and other transfer payment
increase 25.70% to improves employee satisfaction physical assets increases
238.97%, civil works decreases by 14.23% ,principal repayments of debt and
increase24.16%,servicing of debt increases 9.89%,loan and advances increases
4.66%, investments increases 5.55% and in the same way payments data are
calculated. There are several reasons of increasing and decreasing of receipt and
payments accounts some are known and some are unknown primary cause of
increase and decrease is shifting of office building and record.
The central issue when creating a vertical analysis of a balance sheet is what to use
as the denominator in the percentage calculation. The usual denominator is the asset
total, but one can also use the total of all liabilities when calculating all liability line

45
item percentages, and the total of all equity accounts when calculating all equity line
item percentages.

3.7 SWOT ANALYSIS

SWOT ANALYSIS:
SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business venture.
INTRODUCTION
To carryout the SWOT and financial analysis of the Account Office through the help
of calculating the horizontal analysis is a situational which includes
 STRENGTHS

46
  WEAKNESS

 OPPORTUNITIES

 THREATS

That affects the organization performance.” The overall evaluation of a company

Strengths, Weakness, Opportunities and Threats is called SWOT analysis. SWOT
analysis is one of the most important steps in formulating strategy using the
organization mission. The goal is to then develop good strategies and exploit
opportunities & strengths, naturalize threats and avoid weakness.

STRENGTHS:

Strengths characteristics of the business or team that give it an advantage over

others in the industry.

OLDEST INSTITUTION

AG IS ONE OF THE OLD OFFICES IN THE PROVINCE. WORK FOR THE

LONGER PERIOD OF TIME IN THE PROVINCE.

Alternative Duties
DAO Perform alternative duties at the time needed.
Employee Benefits
The employee of the AG. Are offered reasonable monetary benefits are given
i.e. EID-UL-FITAR AND EID-UL –AZAH.This serves as additional benefits and
competency for the source of motivation for the employee.

Broad network
It has broad bases network of branches throughout the province, also one
office in every district. The subscribers are provided services at their nearest possible
place to confirm subscriber’s satisfaction.

STRICTLY FOLLOWED RULES AND REGULATIONS

The employee of the AG office are strict followers rules and regulation
imposed by the AG .the discipline environment at office bolster is image and also
enhance the over all out put of the organization.

47
HEALTHY ENVIRONMENT
The working condition in AG office branch here is very conductive and
favorable for batter output.
RELATION BETWEEN STAFF AND EMPLOYEES
The office enjoys a good plus point when it come to the employee officer
relationship, the hearing as removing of discrepancies if any, between the employees
And between the officer and employee.
Weakness under Political Pressure
The strong political hold of some parties and Government and their
dominance is affecting the Account office in negative way They have to provide
loan under the pressure , which leads to uneven and adjusted feeling in the office
employee.

FAVORITISM AND NEPOTISM

The promotion and allowances etc in office are often powered by senior’s
favoritism or depends upon their wills and decisions .This adds to negative factors,
which dominate the employees thus resulting in affecting their performance
negatively.

LACK OF FINANCIAL PRODUCT

The Accounts office falls far behind when the innovative new schemes are
considered. It has not been involved in the tug of war between the competitors to the
accounts and the strengthens the existing subscribers base. This stands out to be the
major incompetence and weakness of the office. Inefficient counter services in the
rush hours during the rush hours, the Accounts office is founded out to be a total flop
to handle the mob of people speaking from windows and doors .The office has
deficiency to operate in the stages of rush hours.

LACK OF COMPUTERIZED NETWORKS

The Accounts office lack the strength of being powered by the network of
computers, which have saved time, energy and would have lessened the mental

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 stress ,the employees have currently ,this would add to the strength if it were
powered by network of computers.

LACK OF MODERN EQUIPMENTS

The Accounts office lacks the modern equipments .Even if there is any
equipment they lack to fall in the criteria of being rearmed as update and upgraded.

Uneven work distribution

The work load in the Accounts office is not evenly distribute and the work load tends
to be more on some employees while other abscond away from their responsibilities ,
which serve as a demodulation factor for employees performance above average
works.

OPPORTUNITIES
In the organization where the weakness and also there the some opportunities
are exist. How the organization can achieve the opportunities? The opportunities are
necessary for the betterment of the organization.

Electronically work
The world today has become a global village because of advancement in the
technologies, especially in communication sectors .more emphasis is now given to
avail the modern technologies to work batter and improve their performances.

THREATS
In the organization where the opportunities are available and there also threats.
The threats can disturb the over all performance of the organization so that is the
quality of the organization how he can handle the threats of the organization and save
the goodwill of the organization. In the every organization threats are exist, the
organization faces the threats all the time.
There are fowling threats which is faces to the Accounts office
 Political pressures by the elected Govt
 Downsizing

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  Subscribers complaints

HUMAN RESOUCE MANAGENEN ANALYSIS

 Need for better traning program

 Developing managerial leadership
 Transfer
 Marketing at desk
 Lack of business
 Communication.

3.8 CRITICAL ANALYSIS

Introduction
This section has been divided in to four parts, which are as under. These
analyses are mainly based on practical experience at the district accounts office.

SUBSCRIBER’S SATISFACTION:
In district account office subscribers dealing is will, but during the rush hour
the subscribers has to wait for a long time for there turn, its quite hard for a new
subscribers or potential subscribers get the required information .

POOR RECORD MANAGEMENT AND FILING SYSTEM

During the internship it has been observed that filing system of office is not
good when certain record is needed the staff has to struggle to find it out and a lot of
time is wasted.

Unequal distribution of work

The work is equally distributed among the employees on one hand some
employee have to work all day without relaxing while some other have nothing to do
at all. This not only creates confusion among employees but hurting and disturbing for

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over all setup of the office and above all it results in dissatisfaction among subscribers
as well.

3.9 FUNCTION ANALYSIS

Formal organization
The formal organization comes into being when people are able to
communicate with one another or willing to act and share a purpose. In this formal
organization, the activities are carried out in a more formal way.
In theoretical terms, t provides basis for communication with one an
other but in practice it is not exercised because an employee at high level can no to
get straight away to the officers and asked him about of his problem faced by him,
because first he has to talk to his immediate superior and follow a proper channel of
communication.

Difference between theory and practice

A vast difference exists between theory and practice and accounts
office has written procedures but practical work done by employees is a big difference
from written procedures.

Excessive paper work:

It is notified that due to the lengthy procedures of paper work, the accounts
office employees are over burdened. They are unable to give proper attention to the
clients and face difficulties in getting their job done. One reason for lengthy
procedures and excessive paper work in the office is the lack of computerized
technology.

Delegation of Authority:
The District comptroller of accounts has a limited authority, he has
to take the approval from the AG Office.

ADMINISTRATIVE ANALYSIS
Job analysis is not effective

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Only on the basis of job analysis it can be decided how a right person could be hired,
trained, compensated or promoted. It is very important for an organization that nature
of job is described and job specification is mentioned. Most of the employee simple
graduate and do not have proper background about their job.
This creates problems both for the organization and for the employees.
Lack Of Specialized Training
District accounts office does not provide adequate facility of
specialized training to their staff. Training is generalized rather than specialized. As
the worker finishes his training, he is induced into a specific field without having
great deal of knowledge about the field.

Poor Job Rotation

There is absence of job rotation in District Accounts office Mansehra. A
person placed in one-departments remain their forever. It reduces career opportunities
as well boredom and in the end results in career plaguing. Job rotation is very
important for employees especially for those who are newly recruited .

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 CHAPTER 4
FINDINGS & RECOMMENDATIONS

4.1 Findings

During the internship, I have observed that employees are not much empowered to
take many of the decisions. They have to take approval from higher authorities for
any kind of proceedings.
Office structure follows strict rules and regulations. They work upon set procedures
and can exercise the power only in their domain and that too even very little.
Employees only know their own seat work, they know least about what’s going on in
the other departments of the office. They are trained to their routine schedule and are
resistant to change their procedures and work environment.
Leg pulling is common in almost all the government offices. Everyone tries to
plagiaries the work performed by other person.

4.2 Recommendations and suggestions

 DAO staff lacks the professionalism. They lack the necessary training to do
the job efficiently and properly.
 Although staff colleges are there in all major cities but they are not performing
well. For this purpose these staff colleges should be recognized and their
syllabus should be made in such a way to help to the employee to understand
the ever changing global economic scenario.

 Employees of the DAO should be given a task and authority and they should
be asked for their responsibility.

 District Accounts Officer should strictly monitor the performance of every

staff member. And all of them should be awarded according to their
performance because performance based appraisal bring in motivation and
incite the employee to work more effectively.

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 Transfer is not properly carried out. Some employees are continually serving
at the same post. They are simply rotated at the same office. Therefore it is
recommended that evenly rotation of every employee should take place after
every three years in different district.

 There should not be any abrupt policies by the upper management, as this
practice hurts the subscriber’s confidence in the Accounts Office.

 Required qualified staff should be provided to the accounts office in order to

improve the functioning of the office.

 I would like to suggest that at least all the Districts of the Accounts offices
should be fully computerized in order to expedite the dealing process among
the all ADO and their subscribers. Every DAO and ADAO and all the
employees must be familiar with the software being used in the office for the
accounting system.
 Daily records should be entered directly into these computers. It will not only
reduce transaction time but will increase the accuracy and efficiency.
Moreover, it will be economical and will also reduce the extra burden of work
at the disposal of every employee. It will also help in reducing the use of
excessive paper work.

 Proper work distribution leads to success in every organization and prevents

the employees from over and under work situation. So for smooth and
efficient operations of the office, proper distribution of the work should be
there to avoid burden over some employees.

 There are number of employees who are serving one seat for many years. It
can have a negative effect on the motivation of employees who are hard
working and intelligent.

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 There should be an information desk to provide the information and to receive
the complaints of the subscriber in the office. Moreover a website should be
maintained by the office through which it can handle the complaints as every
person can not go to the office. So it is suggested to management to install a
Complaint box and recruit a special person for that guidance of the subscriber
when they are unable mange some difficulties in office matter.

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REFRENCES

 http://agkhyberpakhtunkhwa.gov.pk/
 http://agkhyberpakhtunkhwa.gov.pk/gpf2.html
 Annual Reports 2013
 Annual Reports 2014
 http//:www.accountantgenralnwfp.com.pk.

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