Audit report findings: Irregularities detected in ERRA accounts

Earthquake relief body received Rs14.71b, but AGPR has no reconciliation record of the amount.

ISLAMABAD:

Billions of rupees in financial irregularities were detected in the Earthquake Reconstruction and Rehabilitation Authority’s (ERRA) accounts, according to a draft audit report for 2011-2012.

Some Rs14.71 billion was shown as receipt in ERRA’s books but the reconciliation with the Accountant General of Pakistan Revenue (AGPR) was not available on record. The amount did not appear in the budget allocation of ERRA in AGPR’s records.

A similar observation of Rs1.234 billion as a difference of un-reconciled amount was also reported in the audit report for 2008-2009, but the source of this additional amount received by ERRA was never provided by the authority.

According to ERRA Accounting Procedure 18 (B), “All government receipts routed/processed through ERRA as well as releases of funds into the ERRA accounts will be reconciled with the AGPR on a monthly basis.”

However, contrary to this procedure, ERRA does not reconcile its budget and expenditure on a monthly basis despite repeated instructions of the government. The reconciliation of the statement of expenditure for June 2011 showed a difference of Rs569.98 million between ERRA’s books and AGPR’s accounts.



The audit report recommended that a full investigation into the matter of unrecorded receipts of the ERRA should be conducted in order to determine the source and manner in which the amount was kept hidden from the government system and records. It added that appropriate action should be taken against the person responsible and proper accounting procedures should be ensured in the Economic Affairs Division and Finance Division of the Ministry of Finance.

The ERRA management said in its reply at a meeting of the Departmental Accounts Committee on October 26, 2011 that the difference between the figures of AGPR and ERRA was due to the fact that AGPR did not accept the amount transferred by the Cabinet Division out of the President Relief Fund for earthquake victims.

The findings of the audit report included irregular and unauthorised payments and violation of rules worth Rs490.19 million were observed and brought to the notice of relevant authorities.

There were three cases of failure to produce records to the audit by ERRA officials. The audit report also observed a lack of internal control on finances in 13 cases. The report pointed out the need to recover Rs1.62 billion in 37 cases. Besides, there were also 7 cases of inappropriate, irregular asset management valuing at Rs205.42 million.

Published in The Express Tribune, January 27^th, 2013.