PRE-AUDIT CHECKLIST (1).pptx

SEQUENCE
Sr.
No.
Description Slide No.
1. SAMPLE IMPORTANT INSTRUCTIONS 4-6
2. SAMPLE CHECKLIST FOR PRE-AUDIT OF SALARY
EXPENDITURE
7-11
3. SAMPLE CHECKLIST FOR PRE-AUDIT OF TRAVELLING
EXPENDITURE
12-14
4. SAMPLE CHECKLIST FOR PRE-AUDIT OF MISCELLANEOUS
EXPENDITURE
15-29
I) Procurement of Stock and Stores
II) Bills for repair/ maintenance of machinery
III) Refund of Securities and Other Amount
5. SAMPLE CHECKLIST FOR PRE-AUDIT OF PENSION
PAYMENT
35-42
I) Pension Cases
II) Pension Payments

SEQUENCE
Sr. No. Description Slide No.
6. SAMPLE CHECKLIST FOR PRE-AUDIT OF WORKS
ACCOUNTS
43-56
I) Works Files
II) Works Bills
III) Payments to Project Committees
IV) Installments for C.C.B. Projects
7. DEBATABLE SAMPLE ROLE OF TAO 57-64
8. PROPOSED CHECKLISTS AND ROLE OF TAO BY
COLLECTIVE WISDOM OF THE WHOLE DIVISION
65

SAMPLE IMPORTANT INSTRUCTIONS
 Appropriation of funds under the relevant object and
Sanction of a designated competent authority are two
essential requirements before disbursement of public
money on any object or work.
 The pre-audit work shall not be carried out in hurry rather
reasonable time be given for scrutiny of each and every bill
before authorizing payment.
 On the other hand timelines fixed in each case may be
followed:
 The Receipt and Dispatch System shall be well established
and reviewed fortnightly to avert un-necessary delay in
payments:
 The internal checking of Bills by Finance Section may be
stressed upon and any retrenchment detected be
communicated to Head of concerned Institution in token
of their vigilance:

SAMPLE IMPORTANT INSTRUCTIONS
 Every paid voucher shall be stamped as “PAID AND
CANCELLED” with signature thereunder and original
vouchers returned in record room:
 The Staff in Tehsil Accounts Office carefully apply the
pre-audit checks before signing the Pay Order:
 The Auditor will tick the entries and the T.A.O. will
cross the tick in token of verification:
 The documents attached to vouchers will be signed by
the T.A.O. in token of evidence:
 The relevant registers shall be verified while pre-audit
of expenditure:
 Respectable liaison shall be maintained with the
concerned DDOs:
 Problem solving attitude ban compromise on quality
of work:

PROPOSED CORRECTION, ADDITION, DELETION,
MODIFICATION, UPDATION, REVISION AND
SEQUENCE IN THE SAMPLE IMPORTANT
INSTRUCTIONS
?

SAMPLE CHECKLIST FOR PRE-AUDIT OF SALARY EXPENDITURE
1. The Salary Bills have been duly signed by the Drawing and
Disbursing Officer.
2. The posts against which salary of incumbent have been claimed are
sanctioned in Schedule of Establishment and annual Budget of
concerned Branch.
3. The pay has been claimed in the Pay Scales duly approved in the
Schedule of Establishment/ and Budget and entered in the Service
Books. The rates of pay have been verified by Audit and pay/
allowances and Dearness Increases have been claimed at the rate
sanctioned by the Government.
4. The deductions including House Rent, Income Tax, G.P. Fund,
Benevolent Fund, Group Insurance Loans etc. (where applicable)
have been made from the monthly salary bills. The Pension
Contribution and other deductions have been transferred to the
relevant Accounts through Bank transfer instead of Cash payments.
`

5. In cases of Bills for payment of daily wages / contingent paid staff
and work charge establishment, the Attendance duly verified by
Drawing and Disbursing Officer has been attached and the work
charge staff has been paid at the monthly rates approved by the
Finance Department and by District Coordination Officer
concerned, as the case my be.
6. Comparison of Monthly Salary Bills with previous months Bills of the
same Branch/ Sector and preparation of a “Plus-Minus Statement”
for verification of any change in salary payments.
7. All changes in pay and service affairs have been recorded in the
Service Book of concerned employee.
8. The monthly payments as well as payment of arrears of pay and
allowances have been entered in the Establishment Check Register
under the signatures of Drawing & Disbursing Officer and verified by
Audit & provision of funds have been made separately.
9. The payment of arrears of pay and allowances has been entered in
the ECR and Service Book of the concerned employee.

10. In case of fresh appointees, appointments have been made in
accordance with Departmental Rules, Govt. policy with special
observance to Advertisement of the posts in press, Ban on
appointments, Qualification, Medical Fitness and Age of the
Appointment etc.
11. The Disbursement Certificates of Salaries/ Wages (Qabaz-ul-
Wasool) of previous month has been duly signed/ verified by DDO/
Authorized Officer.
12. The entry of Advance given to any employee has been made in his
Service Book, ECR and Advance Register simultaneously in order to
watch the recovery thereof.
13. The leave salary bill separately prepared and all relevant entries in
the leave account/ service book have been made. The leave title duly
verified by Finance and Accounts Offices.
14. The transfer orders, joining report and Last Pay Certificate issued by
the Authorized Officer verified in case of salary on transfer.
15. Calculations and arithmetical totals are correct and amount recorded
in payment order is within the sanctioned amount and admissible
under rules.

16. Revenue Stamps of appropriate value affixed.
17. Service Books must be maintained in duplicate.
18. Deduction of conveyance allowance during leave.
19. The transfer of an official from the jurisdiction of one DDO to other
should only be considered through last pay certificate and be
considered a regular transfer.
20. Certificate of residence in official residence should be obtained
invariably and got confirmed from estate branch occasionally.
21. Arrears for the period official have served in that institution only be
paid. The arrear for the period of posting else where should not be
paid.
22. Completion of Income tax and other rates, deductions should always
be checked and ensured.
23. Sanctions accorded simply on noting parts of files should be
discouraged and separate formal orders of sanctions are attached to
the voucher.
24. Fixed T.A should not be allowed on the pay bills.

PROPOSED CORRECTION, ADDITION,
DELETION, MODIFICATION, UPDATION,
REVISION AND SEQUENCE OF CHECKLIST FOR
PRE-AUDIT OF SALARY EXPENDITURE
?

SAMPLE CHECKLIST FOR PRE-AUDIT OF
TRAVELLING EXPENDITURE
1. The TA/DA claim has been duly countersigned by the Controlling
Officer, supported by necessary vouchers, prior permission,
Attendance Certificates a clear purpose of journey, Budget Provisions
and tour note.
2. The TA/DA is apparently not a source of Income.
3. The rates of travelling allowance and daily allowance have been
correctly claimed. Full daily allowance is admissible for spending a
night at outstation.
4. In case of claim for reimbursement of Hotel Charges, the GST No.
has been printed on the Invoice and 1/5th of GST amount has been
retained for deposit into Govt. Account as per Sales Tax Receipts
attached with TA Bill.
5. In case of claims for TA for personal Cars and Taxi (where
admissible) the original Toll Tax Receipts have been attached with
the TA Bill.

6. Shortest/ cheapest passage has been claimed.
7. The claim has been entered in TA Check Register and previous
entries have been checked to avoid double claims for one and the
same journeys.
8. Revenue Stamps of Appropriate Value have been affixed.
9. In case of transfer out of District, the claim of transportation of
personal effects is supported by the requisite voucher/ certificates.
10. It should strictly be checked as if the TA/ DA are not claimed for the
regular performance of duty. The officials/ officers who have touring
job are not entitled to open TA/DA , even if the touring is outside
16KM radius. They may be paid fixed TA instead.
11. Fixed TA should not be paid in the pay bill but be allowed on
separate TA bill form.`

PRE-AUDIT OF TRAVELLING EXPENDITURE
?

SAMPLE CHECKLIST FOR PRE-AUDIT
OF MISCELLANEOUS EXPENDITURE

PROCUREMENT OF STOCK AND STORES
1. The contingent bills for procurement of stock and stores articles are
supported by demand indent by the concerned quarters.
2. The budgetary allocation under the relevant object exists and
availability of funds has been given on the bill by the concerned DDO.
3. The specification of required articles have been approved by the
Competent Authority and proper arrangements for bringing it into the
notice of the bidders have been made;
4. The articles being procured are needed for the functions actually fall
within the bonafide functions of the institution;
5. The tenders / quotations have been invited under sealed cover with
due publicity as required under rules and all tenders / quotations are
accompanied with earnest money in shape of DCR ( Deposit at call
remittance ).
6. The tenders have been opened in transparent manner and rate quoted
have been vetted by Tender Opening Committee and necessary entries
recorded in the Tender Register,
7. For the supply of goods, the bidders are registered with Sales Tax
Department/Income Tax Department and they provided necessary
evidence in this regard;

8. The comparative statement has been correctly prepared and signed
with date by all members of the Procurement / Tender Opening
Committee and lowest rate has been accepted / approved by the
designated Authority;
9. The work / supply orders carrying full specification of required articles
and stipulated time for supply, were issued to the lowest bidder and
the rates accepted appeared to be reasonable as per rates prevailing in
the market. If the lowest tender has rejected, justification and reasons
thereof have been recorded by the Accepting Authority.
10. Agreement deed has been executed with the supplier on stamp paper
of appropriate value:
11. The stock entry of supplied articles has been made in Stock Register
and a certificate to that effect with page number of Stock Register has
been recorded on the Bill under the signatures of the DDO;
12. The Certificate of quality and quantity at the lowest market rate by the
DDO has furnished with Contingent Bill;
13. Printed Sales Tax Invoices duly machine numbered and carrying Sales
Tax Registration Number/NTN has been furnished by the Supplier;
14. 20% of the GST amount has been deducted for deposit into Govt.
Account as required under Sales Tax Rules;

15. Income/withholding tax at the prescribed rate has been deducted;
16. Professional Tax has been paid by the Supplier to the Provincial
Government for the financial year;
17. Revenue Stamps of Appropriate Values have been affixed;
18. The supplies have been received within fixed time limit and in case of
delay, the extension has been granted with/ without penalty by the
Competent Authority.
19. To avoid the double payments, all vouchers and bills have been crossed
with rubber stamp/ in writing while authorizing the payments. The
corresponding entries in relevant payment Register have been signed.
20. The temporary advances, if any released, have been recorded in the
temporary advance register under the signatures of DDO and a
certificate under his signature with serial and page number of said
Register has been recorded on the Voucher/ Bill.
21. The due amount of security (if needed) has been deducted from the
Supplier’s Bills and Warranties (if applicable) have been provided by
the Supplier.
22. Security deduction needs to be regularized. In case it is deducted in
pre-audit, the pre-audit staff will have to maintain its account till
release of security. In case the bill of the gross amount is admitted, the
security deduction would be the responsibility of the DDO and would
be a post-audit item.

23. The contract shall be entered into by those officers who have
been empowered.
24. A period of 15 days clear excluding the days of advertisement and
receipt of tender must be provided for notice for inviting tenders
in the news paper/ public notice, as the case may be.
25. The advertisement shall also be made in the news papers through
Director General Public Relations in the prescribed manner.
26. The vouchers must be in printed forms, filled in ink or
typewritten and in-variably signed/ verified by the responsible/
authorized officer.
27. Responsibility of a Withholding Agent
Agent intending to make purchases of taxable goods, shall
indicate in an advertisement or notice for purpose that the sales
tax to the extent as provided in these rules shall be deducted
from the payment to be made to the supplier as per illustration
given below: -

28)The provisions of these rules shall not apply to the supplies of the
following goods and services if made by a registered person.
i) Electrical energy.
ii) Natural gas.
iii) Petroleum products as supplied by petroleum production and
exploration companies, oil refineries and oil marketing
companies.
iv) Mild steel products.
v) Products made from sheets of iron or non-steel alloy, stainless
steel or other alloy steel, such as pipes, almirahs, trunks etc.
vi) Paper, in rolls or sheets.
vii) Plastic products including pipes.
viii) Vegetable ghee and cooking oil and
ix) Telecommunication services
(SRO 77(1) 2008, dated 23-01-2008)

ILLUSTRATION OF GST
21
Value of taxable supplies excluding sales tax Rs. 1000
Sales tax chargeable @ 17% Rs. 170
Sales tax to be deducted by the withholding agent Rs. 34 (i.e. Rs. 170 ÷ 5)
Sales tax payable by the withholding agent to the
supplier Rs. 136 (i.e. Rs. 170- Rs.34)
Balance amount payable to the supplier by Rs. 1136 (i.e. Rs. 1000 + Rs.136)
the withholding agent.

RESPONSIBILITY OF A WITHHOLDING AGENT
 A withholding agent, having Free Tax Number
(FTN) and falling under clauses (a), (b) or (c) of
sub-rule (2) of rule 1 shall, on purchase of taxable
goods form persons liable to be registered but not
actually registered under Chapter I of the Sales
Tax Rules, 2006, deduct sales tax at the at the
applicable rate of the value of taxable supplies
22

RESPONSIBILITY OF A WITHHOLDING AGENT
 DDO preparing the bill for the accounting office
shall indicate the amount of sales tax withheld as
prescribed above
 Departments /District governments, the District
Accounts Officer shall credit the amount
deducted at source during a month to the head of
account "GI2777-Sales Tax Deductions at Source”
by the 15th of the following month
23

GENERAL SALES TAX
 @17% of all the items are Sales Taxed except for
example… mentioned in sixth schedule to the
Sales Tax Act, 1990.
 @19% from the non-registered supplier
 @Zero rated sale taxed items. (Sec. 4 of STO,1990)
 Deduction of 1/5th of Sales Tax at source
 1/10th from Distributors and Whole sellers
 Deduction at Full Rates i.e. @ 17% from non-
registered by Withholding Agent (Govt. Dept.,
Autonomous Body, public sector Org. )
otherwise 19%
 Specified Goods are only taxed at Manufacturer
level Special Rules / (withholding) Rules, 2007)
24

25
DEDUCTIONS ON PAYMENTS
Deductions at approved rates on payments:-
 Professional Tax
 Contractors:
 Less than 1 million
 Less than 10 employees Rs. 1000/-
 More than 10 employees Rs. 2000/-
 Exceeding 1 million Rs. 3000/-
 10 million to 50 million Rs. 5000/-
 Exceeding 50 million Rs. 10000/-
 Engineer consultants Rs. 3000/-
 Rs. 200/- per year for civil servant whose income is
taxable
 (See Finance Act, 2000 for companies and firms and
Individuals)
 Token Tax on Vehicles before 31st July

26
Federal levies
Income Tax :
 In case of salaried as per slabs
 On supplies @ 4% (6% non-filer)for
Company &
 @ 4.5% (6.5% non-filer) (for others)
exceeding Rs. 25000/- in a financial year.
 For services @ 8% filer (12% non-filer) for
Company &
 @10% filer (15% non-filer) for others
exceeding Rs. 10000/- with in a financial
year.
 For Contracts @ 7%% for Company &
 @7.5% for others 10% in case of non-filer
(Sec.153 ITO, 2001 as amended)

Sales Tax on Services (Punjab) 2012
Services provided by: @ 16% … and 5% on some
services
 hotels, clubs and caterers
 Contractors
 Advertisement of TV, cables and Net
 Consultants
 Security providing agencies
 Stock Brokers
 Shipping agents etc
27

29.Payments for less than Rs.
100000/- should be made in favor
of DDO for onward disbursement
and more than Rs. 100000/- be
made to the Supplier through
crossed cheques.

PROPOSED CORRECTION, ADDITION, DELETION,
MODIFICATION, UPDATION, REVISION AND
SEQUENCE OF CHECKLIST FOR PRE-AUDIT OF
MISCELLANEOUS EXPENDITURE AND
PROCUREMENT OF STOCK AND STORES
?

SAMPLE CHECKLIST FOR PRE-AUDIT OF BILLS FOR
REPAIR / MAINTENANCE OF MACHINERY
1. History Sheets of Machinery/ Vehicles have been maintained and all
costs of repair/ maintenance previously incurred have been recorded
therein.
2. The repair charges claimed are justified with reference to the
expenditure incurred previously for the same purpose and also
according to the yard stick provided in the Delegation of Financial
powers Rules 2006 i.e. amount of bill viz-a-viz book value of vehicle.
3. The Machinery/ Vehicle being repaired is owned by the Institution. It
has been ensured that the repairs are economical and essential for the
smooth functioning of affairs of the Institution.
4. The return of old/ replaced parts or deduction of cost thereof has been
made by the DDO and a certificate to this effect is given on the voucher.
5. An estimate for repair work has been prepared and got sanctioned from
the Competent Authority to inure that expenditure.
6. The tenders/ quotations for repair have been invited in accordance with
rules and all codal formalities as required under rules have been
fulfilled.

7. A fitness certificate duly signed by concerned authority
has been annexed to the repair bill.
8. Income Tax at the prescribed rate has been deducted.
9. In case of purchase of new parts, Sales Tax Invoice has
been attached and 1/5th of the GST has been deducted
and deposited into Government Treasury.
10. Specification details should be copied from the
Registration Book of the vehicle.
11. Petrol Account and Record of mileage petrol and average
account of kilometers per litre on the last day of each
month are recorded in the Log Book by the end of
month.
12. Record of Tyres and tubes and other consumable stores
(apart from fuel)
13. Schedule of vehicle tools and equipments /accessories.

PRE-AUDIT OF BILLS FOR REPAIR /
MAINTENANCE OF MACHINERY
?

SAMPLE CHECKLIST FOR PRE-AUDIT OF REFUND OF
SECURITIES AND OTHER REFUNDABLE AMOUNTS
1. For release of securities deducted from suppliers /
contractors Bills: -
a) The period prescribed for retaining the security amount under
relevant rules has been expired.
b) The report / recommendations for sanction of the concerned
Officer for refund of security are attached.
c) The refund has been allowed / sanctioned by the Competent
Authority.
d) Necessary entries of refund have been made in Register of
Securities.
2. For other refundable amounts: -
a) The credit of amounts being refunded has been
verified in the cash book and bank statement.
b) The refund has been allowed/ sanctioned by
Competent Authority with valid reasons duly supported
by rules.
c) The refund is being made to the particular persons who
actually deposited the amounts.

PRE-AUDIT OF REFUND OF SECURITIES AND
OTHER REFUNDABLE AMOUNTS
?

SAMPLE CHECKLIST FOR PRE-AUDIT
OF PENSION PAYMENTS

PENSION CASES
1. The service of the retiring employee is covered under the provisions of
Punjab Civil Services Pension Rules, 1963 as amended from time to time.
2. In case of retiring pension after completion of 25 years service, the qualifying
service has been got verified from Audit before issuing the orders of
retirement by the Pension Sanctioning Authority and request made at least
three months before the date of retirement.
3. If the incumbent is retired on medical ground, the original certificate of
“Permanent Invalidation” was issued by the Authorized Medical Attendant
i.e. Medical Superintendent of the concerned District Headquarters Hospital
and duly countersigned by the Director General, Health Services, Punjab has
been attached to the Pension Case and the date of retirement is not before
the date of receipt of the invalidation certificate by the Pension Sanctioning
Authority.
4. The retiring official has remained posted against the permanent /pension
able post during the entire service and Service Verification Certificates has
been recorded in his Service Book under the signatures of the concerned
Drawing and Disbursing Officer.
5. The Pension Papers have been properly filled in and signed by the retiring
incumbent and pension has been duly sanctioned by the Pension
Sanctioning Authority.
6. In case of family pension, original death certificate issued by the concerned
Union Administration is annexed to the Pension Case and the original
Pension Papers / PPO (if any) equally verifies the particulars.

7. A declaration by widow of being single widow alongwith the undertaking for
non remarriage, duly countersigned by the Pension Sanctioning Authority
has been attached with the Family Pension Case. In case of family pension to
members other than widow, the aspect of entitlement and having no source
of income has been examined. Descriptive roll of each member of deceased
family has been attached and duly attested.
8. Before returning the Finalized Pension Case to the Administration, the PPO
number with date has been recorded with signatures of issuing Officer (in
ink) at first and last page of Service Book of the concerned pensioner. The
PPO has also been embossed and copy thereof retained by Audit.
9. List of Family Members provided with Pension Case has been verified and
supported by copies of CNIC/ Form- B of National Database.
10. No objection regarding over age at the time of appointment is to be raised at
the time of finalization of pension case. However, if any audit objection on
appointment or any other service matter of retiring official was outstanding,
has been settled.
11. At the time of revision of Pension Cases, in addition to issuing the Revised
Pension Payment Order, necessary entries in Pension Papers and Service
Book of concerned pensioner have been made by Audit.
Leave Account must be checked carefully.

12. The pension case is supported by necessary
documents like: -
i) Application for ordinary pension/ commutation in Form Pen-3
and Pen -6 as prescribed under rule 5.2 and rule 8.2 of the
Pension rules, respectively.
ii) Proforma bearing left hand thumb impression (in case of ladies
of right hand) in duplicate, duly attested by Gazetted Officer of
the Department, except in case of those who have been exempted
from this formality under the rules or by any special order.
iii) Specimen Signature, in duplicate, duly attested by Gazetted
Officer of the Department or concerned DDO.
iv) A statement showing extra ordinary leave (without pay) taken by
retiring official.
v) Two copies of passport size photographs, duly attested by
Gazetted Officer of the Department, unless any exemption is
provided in the rules in the case of particular class of Govt.
servants, ladies etc.
vi) A list of family members showing their names, their ages,
relationship with the retired /deceased employee and marital
status bearing certificate that there is no other member except
those mentioned in the list.

vii) Descriptive Rolls of family members eligible for family
Pension/ Commutation or and Registration Form-B of
National Database.
viii) A declaration of non-receipt of pension and commutation,
as the case may be.
ix) A certificate to the effect that no inquiry/ recovery and
audit objection is pending against the retiring/ deceased
employee.
x) In case of extra ordinary pension, a detailed statement of
circumstances in which the injury was received, the disease
was contracted or the death occurred, as the case may be.
xi) A copy of orders condoning interruption or deficiency in
qualifying service, if any.
xii) A statement showing the period of deputation/ Foreign
Service, if any alongwith deposit slip of Pension
Contribution duly verified by Finance and TAO/ DAO.
xiii) A statement showing the period of suspension, if any and
treatment of suspension period by the Authority.
xiv) A certificate to the effect that there is no break in service
duly signed by the Pension Sanctioning Authority.

xv) Income tax clearance certificate issued by Income Tax
Department.
xvi) A set of pension papers completed in all respects has been
retained by Audit.
xvii) Orders of the Pension Sanctioning Authority regarding
treatment of absent from duty as EOL have been attached.
xviii) Service verification certificate.
xix) 10 years / 25 years qualifying service certificate.
xx) In case of duplicate service book, the certificate of not
ignoring any service event like, leave, EOL or suspension etc.
xxi) Service Book in case (in case of Non-Gazetted employee)/ service
statement in case of Gazetted employee.
xxii) Retirement orders and pension sanction orders.
xxiii) Last Payment Certificate.
Family Pension (In service death case)
(In addition to above documents)
i. Death Certificate
ii. Affidavit of widow regarding Non-Marriage/ Non-Separation.
iii. CNIC of widow.

SAMPLE CHECKLIST FOR PRE-AUDIT OF PENSION
PAYMENTS
1. The amount of pension/ commutation has been approved by
the Audit in Pension Payment Order and necessary entries in
Pension Check Register with full particulars i.e. name, date of
retirement, Gross Pension, Commutation and monthly
pension payable with date, have been made under the
signatures of DDO.
2. The increases of pension as sanctioned by Govt. have been
worked out correctly.
3. Like wise Salary Bills, plus minus statement of each monthly
pension bill for comparing it with the previous months bill of
pension has been prepared to check any ghost payment..
4. The Disbursement Certificates of Pensions /Wages (Qabaz-ul-
Wasool) of previous month has been duly signed/ verified by
DDO/ Authorized Officer.
5. Claims of arrears of pension have been examined and entered
in the Pension Check Register.
6. Revenue Stamps of appropriate value have been affixed.

PRE-AUDIT OF PENSION CASES AND PENSION
PAYMENTS
?

SAMPLE CHECKLIST FOR PRE-
AUDIT OF WORKS ACCOUNTS

WORKS FILES
1. The Annual Development Program has been approved by the
council/ Board with detail of schemes /works instead of block
allocations have been provided in Annual Budget.
2. The Administrative Approval and Technical Sanction of the Project
scheme have been accorded by the designated Authority.
3. Tenders notice consisting on full details of the Projects has been
published in National Press through Director General Public
Relations, Punjab as per Govt. policy.
4. The Contractors participating in tenders were eligible and their
renewal/ registration fee as well as cost of tender form have been
recovered at prescribed rates.
5. The process of tenders was fair and transparent and tendered rates
have been vetted by tender opening committee and entered in the
Tender Register.
6. The comparative statement has been correctly prepared and signed
with date by all members of the Tender Opening Committee and
lowest rate (nor more than 4.5% of TS) has been accepted/ approved
by the designated Authority.

7. Agreement Deed has been executed with the supplier contractor on
stamp paper of appropriate value and it has been signed by both the
parties.
8. Professional Tax has been paid by the Contractors to the Provincial
Government for the financial year.
9. The nature of Development Work falls within the prescribed functions
of the Institution.
10. The site plans, analysis of rates, lead charts, L-section and X-section etc.
have been placed in the works file.
11. The Development Scheme has not been split up/ bifurcated only to
avoid any approval of higher authority or advertising for tendering
purposes.
12. The estimates have been prepared correctly on the basis of MRS of the
concerned quarter.
13. Proper record of running payments, if any, has been maintained.
14. The Development Scheme being executed on the Land owned by the
Institution. In case of land donated by Private Person, necessary legal
formalities to transfer the ownership have been fulfilled.
15. The analysis of rates for Non Schedule items have been prepared, got
approved from technical sanctioning authority and such analysis has
been framed on the basis of prevailing market rates and Input Rates
issued by Finance Department.
16. Performance Security has been deposited by Contractor, if the rates
tendered by him were more than 5% below.

17. Timeline chart attached.
18. Certificates in case of acceptance of single tender
attached and single tender approved by the next higher
authority.
19. Instructions for selection of Consultants observed where
consultant were engaged.
20. Check Measurement Book maintained in accordance
with the Rules.
21. Detailed Estimates sanctioned in accordance with the
BOQ (Bill of quantity)
22. All kinds of test reports attached.
23. Inspection reports of the Consultant, if any attached.
24. Rates analysis in case of non-standardized rates/
Itemized rates available.

WORKS BILLS
1. Forms of the C&W deptt. are used instead of forms of old MA code or
DBA code
2. The payment of works bill has been allowed by the Engineer In-
charge.
3. The works bill has been signed by concerned Officers as well as
Contractors and internally checked by the concerned Officer.
4. The record entries with reference to quantities of work done as made
in the Measurement Book have been checked and found correct by
the Engineering Staff according to prescribed quantum.
5. The full specifications of the items of work have been recorded in
Measurement Books and correct rates applied.
6. The dates of commencement, completion and measurement of work
have been recorded in the Measurement Book and it has been
signed/ countersigned by the concerned Engineering Staff.
7. The works bill has been entered in relevant Register like Works
Register and Contractor’s Ledger and all deductions like security and
income tax have been accounted for in the relevant Registers.

8. The bills have been supported by necessary Test Reports and prescribed
Completion Certificate duly filled in and signed by concerned Officers
has been attached with Final Bill.
9. The dues like hire charges of Machinery, electricity charges, water
charges, and rent of buildings etc. have been deducted from the
amounts payable to Contractors.
10. The quantities of items of work have been compared with that provided
in TS estimate and in case of variation. The sanction of the technical
sanctioning authority has been obtained.
11. The running payments, if any, have been deducted from the Bill.
12. The cost of old material as assessed/ provided in the TS estimate has
been deducted from the Works Bill.
13. The income tax, security and other dues as required under Rules have
been deducted at the prescribed rates.
14. The cost of work has not be enhanced/ revised beyond 15% of the
Estimated Cost.
15. No advance payment is included in the Works Bill, as any form of
advance payment is not admissible under Local Government Rules.
16. The earth work provided in the estimate/ work bill is reasonable and
necessary deductions of measurement like shrinkage, curst and 2/3rd of
excavated earth, where applicable, have been made at the prescribed
rates.
17. The calculations of Brick Pavement with reference to nominal thickness
of Bricks as provided in MRS have correctly been made.

PRE-AUDIT OF WORKS ACCOUNTS
?

PAYMENTS TO PROJECT COMMITTEES
1. The Project Committee has been constituted under the
provisions of relevant rules and decision regarding
execution of work through Project Committee has been
made by the Competent Authority.
2. The Technical Sanction from the Competent Engineer
has been obtained before the commencement of
departmental work.
3. The payments were being made to Project Committee
through crossed cheque and a project accounts has been
opened.
4. The Project Accounts has correctly been maintained it is
reconciled with Bank Statement.
5. The record relating to purchases and labour charges has
been correctly maintained and payments to the suppliers
have been made through crossed cheque by the Project
Committee.

6. The work done has been assessed /measured on the basis of
MRS of concerned period by the Engineering Staff and 20% on
account of Contractor’s profit and overhead charges have been
deducted from the total assessment of work done.
7. The purchases have been made from Suppliers duly registered
with Income Tax and Sales Tax Department.
8. The GST invoice has been furnished by the Suppliers and 20%
of GST amount has been retained and deposited into Govt.
Account by the Project Committee.
9. The GST has been deducted from payment if no GST invoice
furnished by Supplier and deposited into Govt. Account.
10. The income tax at prescribed rates has been with held at
source and transferred to Govt. Account by Project Committee.

INSTALLMENTS FOR C.C.B. PROJECTS
1. The CCB has been registered by concerned Authority
under the provisions of relevant rules and the scheme has
been approved as part of the ADP to be executed through
CCB..
2. 20% CCB share has been deposited in the form of a
Demand Draft.
3. The Technical Sanction from the Competent Engineer
has been obtained before the commencement of
departmental work.
4. The payments were being made to CCB through crossed
cheque and a CCB accounts has been opened in Bank.
5. The Project/ CCB Accounts has correctly been
maintained and it is reconciled with Bank Statement.
6. The record relating to purchases and labour charges has
been correctly maintained and payments to the suppliers
have been made through crossed cheque by the CCB.

7. The work done has been assessed/ measured on the basis of
MRS of concerned period by the Engineering Staff and 20% on
account of Contractor’s Profit and Overhead charges have been
deducted from the total assessment of work done.
8. The purchases have been furnished by the suppliers duly
registered with Income Tax and Sales Tax Department.
9. The GST invoices have been furnished by the Suppliers and
20% of GST amount has been retained and deposited into
Govt. Account by the CCB.
10. The GST has been deducted from payment if no GST invoice
furnished by supplier and deposited into Govt. Account.
11. The income tax at prescribed rates has been with held at
source and transferred to Govt. Account by CCB.
12. Certificate of a Bank or Post Office showing evidence of
deposit or 20% share of CCB has been obtained.
13. Copy of agreement duly executed with the Local Govt.
concerned as per CCB Form-5 has been obtained.
14. Request for first installment as per CCB Form-6 has been
obtained.
15. Approval of the Local Govt. is available for release of
subsequent installment.

16. A monitoring/ evaluation report of the Monitoring
Committee has been obtained. It is not a compulsory
requirement. Some local Govt. have ever not constituted
monitoring Committees.
17. See that CCB has completed the project within allocated
funds, agreement and in time.
18. Where two or more Local Governments are of the same
level are involved in a project, the concurrence of the
concerned Nazims has been included in the proposal.
19. See that the proposal of the project submitted by the CCB
relates to the functions of concerned Local Government.
20. See that the Projects Proposal is in conformity with the
classification issued by the Local Govt. concerned.
21. The Project Proposal submitted is in conformity with
CCB Form-4.
22. See that the Project Proposal has been included in the
ADP.

This part does not include instructions for the
cases in which CCB Can execute the project
through contractor.
Divisional Officers can give their own in-puts.

PRE-AUDIT OF PROPSED PAYMENTS TO
PROJECT COMMITTEES
?

DEBATABLE SAMPLE ROLE AS TAO
A part from the instructions issued in this regard, The
TAO should ensure that:
1. The Local Government prepares its budget on Chart
of Accounts as per requirement of the Govt.
2. Financial sanction is strictly brought in the purview
of the Delegation of Financial Powers, Rules 2006.
3. Accounts are maintained with reference to the Chart
of Accounts.

4)
i. TMA Fund retained in NBP/ BOP.
ii. Timely approval of budget.
iii. Issue of schedule of Authorized expenditure by the Nazim.
iv. Progressive decrease/ increase in OSR (own source Revenue).
v. Scheme-wise approval of development budget or block
allocations
vi. 25% Earmarking for CCB Projects and carrying over of
balances of previous years.
vii. Irregular diversion and utilization of CCB budget component
towards Non-CCB Project.
viii. Tax proposals placed before or approved by the council and
their fate.
ix. The cash Book was properly maintained and reconciliation
statement at the end of the month has been prepared.

5)
i. Procedure adopted for auction of leases was in accordance with the
rules.
ii. Bid accepted was competitive and transparent and in case of upward
revision of rates, fee/ taxes etc. proportionate recovery was affected.
iii. Earnest money received.
iv. Surety Bond or Band guaranty equal to bid money received from
successful bidder/s.
v. D&C Register maintained, installments received in time, penalty
recovered in case of delay, or penalty clause involved in the T&C and
Agreement Deed.
vi. Pay of staff recovered, if not, relaxation of Rules sought from the
Government.
vii. Arrears, if any, whether some connivance of staff found.
viii. Maintenance of Arrears Register and arrears of previous years
carried forward.
ix. Security released with or without clearance/ adjustment.
x. Extent of loss in departmental collections under each head of
account also inconsideration with officers received, if any.

xi. All receipts timely credited to TMA Fund.
xii. Stock Register of Receipts Books maintained and
departmental collection was made on the receipt books
properly issued on stock register.
xiii. Rate of taxes, fees, water rates, charges etc. applied in
departmental collections were correct.
xiv. Property of shops register maintained.
xv. Procedure for renting out shops transparent, D&C
Register maintained, arrears, if any.
xvi. Land Property Register maintained and physical
verification carried out as required under the property
rules. Allotment of Land, if any, is transparent and in
accordance with the rules.
xvii.Requisite certificates on the first and last page of the
receipt books have been numbered by the TO (Finance)
and all the receipt books have returned.

6)
i. Proper procedure adopted in purchase of goods &
services;
ii. Whether rates competitive or not;
iii. Goods & services purchased property entered in relevant
stock register;
iv. Propriety of purchase – whether purchase was essentially
required and as per demand / requisition by concerned
official or otherwise;
v. Expenditure on purchase was properly budgeted;
vi. Payments made to supplier/s through P/A (Payees
Account);
vii. Firms were registered with Sales Tax Department and
Sales Tax on invoice with sales tax number;
viii. Income Tax deducted;
ix. Professional Tax paid by the contractors/suppliers.

7)
i. AA, TS accorded before calling tenders;
ii. Open tender enquiry adopted for getting competitive rates or not;
iii. Performance security received where necessary before acceptance of
tenders;
iv. Acceptance of rates within permissible limit;
v. Item of works executed in accordance with the specifications and
quantities of items executed duly approved in TS;
vi. Scheme-wise budget provision available;
vii. Works completed or not and if completed was within time limit;
viii. Works executed fall in the Municipal function of TMA;
ix. Propriety of earthwork, X Sections, L Sections, Lead Chart available;
x. Release of security after the prescribed period for completion of works
and on the satisfactory report and recommendation thereof;
xi. Justification of each item of work executed;
xii. Income Tax deducted;
xiii. No advance payment including secured / mobilization advance paid;
xiv. Escalation / variation, if any, paid;
xv. Department recoveries etc. made;
xvi. Water supply through users’ committees / village council.

8)
i. Registration of CCBs;
ii. CCB projects executed fall within the purview of TMAs
function;
iii. Estimates of rates in CCBs projects in accordance with
the standardized; Assessments of CCBs;
iv. Projects, Stock Register maintained in case of projects
executed by CCB itself;
v. CCB projects was non-profitable ( for any individual )
and community service related;
vi. 25% of budget allocated and un-spent balance of
allocations carried over next year;
vii. 80% share released on receipts of 20% share of the CCB.
80% share released in installments on utilization of each
previous installment;
viii. Final accounts of each CCB project maintained.

9)
i. Grants-in-aid from District Government, Provincial / Federal
Government have been utilized for the purpose for which those were
received and executed in accordance with the works rules.
ii. Sanction of Schedule of Establishment including up-gradation, re-
designation, creation of posts, and keeping of Octroi Establishment
intact, as per Government Instructions. Nos. of employees equal to
the number of posts sanctioned by the Government.
iii. Procedure adopted for appointment of officials was transparent.
iv. Appointments made were in accordance with schedule of
establishment, approved by the Government.
v. Promotions made were in accordance with Government
Instructions/ Rules.
vi. Adjustment of LG Staff (in TMAs), if any, which was a part of
District Government.
vii. Work-charged establishment- particulars, CNIC, Muster Roll etc.
available or not, procedure adopted for appointment through wide
publicity, yardstick of strength of sanitation staff adhered to.

PROPOSED
CHECKLIST AND ROLE OF TAO
BY COLLECTIVE WISDOM OF
THE WHOLE DIVISION
?

PRE-AUDIT CHECKLIST (1).pptx

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