Civil Services Academy, Lahore – Departmental Reply of the Audit Observations 2014-2015CIVIL SERVICES ACADEMY, LAHOREDEPARTMENTAL REPLY OF THE AUDIT OBSERVATIONS 2014-2015Para NoAudit ObservationDepartmental Reply02UN-JUSTIFIED PAYMENT OF 100% NSPP ALLOWANCE TO FACULTY MEMBERS RS:16.453 MILLION.Para-25 of General Financial Rules Volume-I describes that all departmental regulation inso far as they embody orders or instructions of a financial character or have important financial bearing should be made by or with the approval of Ministry of Finance.Management of Civil Service Academy Lahore has been making payment of N.S.P.P allowance @ 100% to the faculty i.e. officer in BPS 18 and above without the prior approval of the Federal Government/Finance Division.Audit further observe that this allowance is also being paid to the employees of BPS-17 & below @ 20% .It was noticed that anamount of Rs.16.453 million was spent on payment of the allowance during the audit period i.e. 01.07.2014 to 30.06.2015. Audit is of the views that payment of the N.S.P.P allowance against the spirits of Finance Division O.M.NO.F5(4) R-3/96 dated 16.04.1996 according to which any other allowance ,special pay, deputation pay allowance admissible to the instructional staff including head of organization cease to be admissible from the date of grant of instructional allowance. The irregularity on the same lines was also pointed out in the previous year audit and inspection report but the organization did not discontinue the payment of NSPP allowance. As such payment was held irregular as well as an extra burden upon the federal exchequer.Further Audit Comments: Management have allowed payment of NSPP allowance to all faculties, non faculty members and supporting staff without any approval of the Finance Division. Audit held payment as irregular and requested to discontinue but the payment was still being made.It is therefore requested to please justify the payment of N.S.P.P allowance without the approval of Finance Division. The Civil Services Academy is a premier training establishment of Federal Government under the National School of Public Policy as its constituent unit. All administrative and financial rules and regulations as adopted by the NSPP are applicable for officers and staff of this institution. It is intimated that, in pursuance of the decision taken in the 3rd Meeting of Board of Governors for NSPP, the Establishment Division, in concurrence with the Finance Division, approved a special allowance the faculty and staff of NSPP. This allowance, called, NSPP Allowance is equal to one month running basic pay for the faculty and 20% of the running basic for non-faculty officers and staff. The approval of the Establishment Division was conveyed vide its Notification No.3/7/2007-T-6 dated 05.05.2007 (copy attached). Attention of Audit is drawn to the Rule 22 (vii) of National School of Public Policy (NSPP) Service Regulations 2014 which is: “All employees of the School other than faculty will be given an additional School Allowance @ 20% of the basic pay (running) per month. For the academic employees, in addition, Special Allowance equal to the amount of one month basic pay (running) per month will be admissible”. Moreover as per rule 22(ii), the board may revise allowances as it deems fit. It is clarified that 20% instructional allowance is not being paid to the faculty members who are drawing 100%NSPP allowance.Moreover the Finance Div. has already approved above mentioned NSPP Allowances vide its UO.No.Dy.275/DFA(Estt)/2007, dated 05.05.2007 communicated vide Est. Div. letter No.3/7/2007-T-6 dated 05.05.2007. In view of the above, it is requested that the para may please be settled.CIVIL SERVICES ACADEMY, LAHOREDEPARTMENTAL REPLY OF THE AUDIT OBSERVATIONS 2014-2015Para NoAudit ObservationDepartmental Reply06IRREGULAR INVESTMENTOUT OF EMPLOYEES WELFAE GRANT.Para 7 of GFR Vol-I states that unless otherwise expressly authorized by any law or rule or order having the force of law moneys may not be removed from the Public Account for investment or deposit elsewhere without the consent of the Ministry of Finance.Para207 (1) further states that unless in any case Government directs otherwise, every order sanctioning a grant should specify clearly the object for which it is given and the conditions, if any, attached to the grant. In the case of non-recurring grants for specified objects, the order should also specify the time limit within which the grant or each installment of it is to be spent.Para 209 of GFR Vol-I also states that unleash it is otherwise ordered by Government, every grant made for a specific object is subject to the implied conditions :-(i). that the grant will be spent upon the object within a reasonable time, if no time limit has been fixed by the sanctioning authority and(ii). that any portion of the amount which is not ultimately required for expenditure upon that object, should be duly surrendered to Government.Management of CSA Lahore has invested a lump sun amount of Rs.10.00 million out of Employees Welfare Fund vide TDR NO.2712357 on 21.03.2015 in the Punjab Bank Walton Road Branch Lahore.Audit is of the opinion that the grant was received vide P.M. sanction No.PMDIR/2165/DS(imp)/PAW/11 dated 08.07.2011 meant for employees welfare project, as such investment of the fund in the TDR is irregular and against the aims and objective/sprits of the General Financial Rules of Federal Government.Further Audit Comments: Management of CSA Lahore received receipt PM grant Rs.10 million to be spent for the welfare of the employees. Audit however noted that the grant was invested in the TDR by the CSA against the purpose. Audit held that the investment is irregular and unauthorized. It is intimated that the said grant was received under Prime Minister’s Directive No.2713 as “Grant of Rs.10.00 million foe the employees of the Civil Services Academy, Lahore”. A meeting was held between the then Finance Secretary Mr.Wajid Rana and the then Director General (CSA), regarding issues pertaining to PM’s Grant of Rs.111.00 million announced on 30.06.2011. The meeting was also attended by Mr. Seerat Asghar (Additional Finance Secretary), Mr. Anwar Khan (FA-Finance) and Mr. Iftikhar Ahmad (DFA-Establishment Division). The issue of declaring the Rs.10.00 million grant for the Employees Welfare Association as non-lapsable was also discussed in the meeting. The Finance Secretary was requested for grant of permission to treat the Rs.10.00 million as an endowment fund, as it would not be possible to utilize this amount within the FY 2011-12 for the objectives it was meant for. It was also suggested that the academy might be allowed to open a separate bank account for this amount and only the interest accrued would be used for disbursements among the eligible employees according to the laid down criteria. The Finance Secretary said that the non-lapsable account is not permissible, but can be treated as an endowment fund after completing requisite formalities (copy of the Minutes of the meeting are attached). The CSA has invested this amount in the shape of TDR and the interest accrued therein is being disbursed to lower grade employees as a loan as per approved SOP. This loan is recovered from the salaries in easy installments. The SOP was approved by the then Director General, CSA. Recently the Director General, CSA held a meeting with the representatives of Employees Welfare Association on 16-12-2015. The members of Association a floated a proposal for using this grant on a project of Staff Colony. The DG has constituted a sub-committee to examine the feasibility of the proposal. Necessary action will be initiated on receipt of the recommendations of the sub-committee. In view of the above, it is requested that the audit observation may kindly be settled.CIVIL SERVICES ACADEMY, LAHOREDEPARTMENTAL REPLY OF THE AUDIT OBSERVATIONS 2014-2015Para NoAudit ObservationDepartmental Reply04IRREGULAR / UNSECURED INVESTMENT OF GENERAL PROVIDENT FUND RS.39.069 MILLION.Finance Division in his O.M No. F.4(1)/2002-BR-11 dated: 02-07-2003 states that investment of working balances/ surplus funds be made subject to fulfillment of various requirements such as investment in A rating banks, competitive bidding process, investment exceeding Rs.10 million shall not be kept in one bank, setting up of in-house professional treasury management functions, formation of Investment Committee, employment of qualified investment management staff, utilization of services of professional fund managers approved by SECP, annual certificates of the Chief Executive of the organization, etc.The management of Civil Services Academy, Lahore invested an amount of Rs.39.069 without observing the proper procedure.Audit observed that management of Civil Services Academy, Lahore invested an amount Rs:39.069 million out of G.P Fund and EWF Account through Term Deposit Receipts as per detail below:DATE OF INVESTMENTNAME OF BANK / FINANCIAL INSTITUTIONTDR/DSC. NO.RATE OF INTERESTAMOUNT OF INVESTMENTTERM OF INVESTMENT14-03-15The Bank of Punjab Walton Brach (GPF)27123608.00%14.20401 Year14-03-15The Bank of Punjab Walton Brach (GPF)27123598.00%4.86501 Year21-03-15The Bank of Punjab Walton Brach (EWF)27123577.70%10.00001 Year18-06-15The Bank of Punjab Walton Brach (GPF)00000154087.00%5.00001 Year28-06-15The Bank of Punjab Walton Brach (Pen)00000154337.00%5.00001 YearTOTAL39.069
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