KARACHI: Major anomalies found in KU accounts

KARACHI, March 8: Irregularities costing the government over Rs157.89 million were detected in the accounts of the University of Karachi by auditors in their report for 2005-06. These anomalies came to the fore in the form of a difference in the bank balance and cash book, non-adjustment of advances, payment without sanction, payment of medical allowances to non-gazetted officials, grant of honorarium, house rent, non-accountal of receipts and non-deduction of income tax. The biggest amount of Rs105.74 million pertains to negligence as on June 30, 2005, the closing balance of Rs106.71 million was shown in the cash book against the bank balance of Rs9.71m on the same day, revealing a huge difference of Rs105.74m between the cash book and the bank balance. During the DCA meeting on Feb 20, 2007, the university authorities stated that the difference in the balance of the cash book and the bank account would be cleared when the reconciliation process was completed. The university was asked to produce bank reconciliation statements for financial years 2002-03 to 2004-05 to the auditors for verification, but the same were not provided till the finalisation of the audit report. The report – which was sent to the Sindh governor and is now awaiting scrutiny by the Public Accounts Committee of the Sindh Assembly – also shows non-adjustment of advances of Rs28.08m in violation of Rule 668 of the Central Treasury Rules. The university had granted Rs29.38m in advances under the heads of general, medical and engineering to various employees. But only Rs1.29m adjustment in respect of general advances were verified. At the DAC meeting held on Feb 20, 07, the university sated that Rs6.36m was already adjusted, but the adjustment of vouchers in some cases was still in process. The university was asked to provide the record of the sanction for the medical advance and civil work, but by the time of finalisation of the report, they were not provided. Cooperative teachers Another irregularity detected pertains to the payment of Rs16.71m made in the absence of sanctioned strength in violation of Para 108 of the General Financial Rules, Volume 1, as it was noticed that 164 cooperative teachers were appointed for various departments during 2004-05, who were drawing salaries regularly and Rs16.71m was paid to cooperative teachers, while the post of cooperative teachers was neither sanctioned nor approved by the syndicate. However, at the DAC meeting, the university authorities stated that cooperative teachers were always appointed against vacant budgeted posts for limited periods and with the approval of the vice-chancellor. The university was asked why the posts of cooperative teachers were not published to provide an equal opportunity to aspirants and why all teachers continued even after the expiry of six months. Another anomaly pertains to unjustified payment of Rs3.08m medical allowance to 426 gazetted officers who were not entitled to it. The university took the plea that the allowance was granted by a syndicate resolution dated Sept 18, 1999. The university was asked to refer the matter to the Higher Education Commission but the authorities failed to do so. During the audit, it was found that the university had granted an honorarium of Rs2.06m to cooperative teachers and other staff of the university during 2004-05. The honorarium was not admissible to cooperative teachers as their remuneration was fixed. The record of acknowledgement receipts was also not produced. In the university accounts, it was noticed that Rs1.32m was realised on account of a CSS preparation programme, but the same was not accounted for in the cash book, neither was this income shown in the annual financial statements for 2004-05. The university incurred an expenditure of Rs16.636m on account of remuneration to invigilators, but income tax at 3.5 per cent – amounting to over Rs0.582m – was not deducted at source. At the DAC meeting, the university authorities stated that after consultation with the income tax department, income tax at six per cent was being deducted from the bills of invigilators, but no proof was produced in its support. Likewise, the university paid over Rs0.325m house rent allowance to various officers despite the fact that they were allotted university accommodations. At the DAC meeting, the authorities stated that the house rent allowance was being deducted from the pay of employees, but no record was produced in its support.