. FIN AN CIA L AT TE ST AU DIT RE PO RT ON TH E AC CO UN TS OF JOB S AND CO MP ETI TIV EN ESS PRO GR AM Loan No. 8600-PK WO RLD BANK PLA NNI NG AND DEV ELO PME NT DEP ART MEN T, A GOV ERN MEN T OF THE PUNJAB For The Fin anc ial Yea r 2016-17 Au dit or Ge ner al of Pak ista n Isl am aba d TABLE OF CONTE NTS Page No . 2 List of abbrevia tions ... 3 Preface 4 PART-I Project Overvie w 5 Auditor ' s Report 6 Financial Stateme nts 7 PART-II 8 MANA GEME NT LETTE R 9 COVER ING LETTE R TO THE MANA GEME NT LETTE R 10 EXECU TIVE SUMM ARY 11 1. Introduc tion 12 "' 12 . 2. Audit Objectiv es . 3. Audit Scope and Method ology 12 4. AUDIT FINDIN GS AND RECOM MEND A TIO NS 12-21 4.1 Organiz ation and Manage ment 4.2 Financial Manage ment 4.3 Procure ment and Contrac ting 4.4 Overall Assessment 22 CONCL USION 23 5. ACKNO WLED GEME NT 24 1 Abbreviations and Acronyms AG Accountant General DG Director General ECNEC Executive Committee of the National Economic Council EPD Environment Protection Department GoPb Government of the Punjab IPSAS International Public sector Accounting Standards INTOSAI International Organization of Supreme Audit Institutions ICRU Investment Climate Reform Unit ISSAI International Standards of Supreme Audit Institutions J&C Jobs and Competitiveness Program LO Lahore (Cost Centres) MTDF Medium Term Development Framework MoU Memor andum of Understanding PC-1 Planning Comm ission Form no. I PAD Project Appraisal Document PFR Punjab Financial Rules PLRA Punjab Land Record Authority PRMP Punjab Resource Management Program SDAC Special Departmental Accounts Committee ,.. 2 PREFACE The Auditor General of Pakistan conducts audit, in terms of articles 169 and 170 of the of the Constitution of the Islamic Republic of Pakistan, 1973, read with Sections 7, 8 & 12 ce, 2001. Auditor General's (Functions, Powers and Terms & Conditions of Service) Ordinan by This audit of Financial Statements of the Jobs and Competitiveness (J&C) Program financed out Government of the Punjab and the World Bank for the financial year 2016-17 was carried according! y. The Directorate General Audit, Punjab Lahore conducted audit of the J&C during to September, 2017 for the financial year 2016-17 with a view to report significant findings J&C. In stakeholders. Audit examined the economy, efficiency and effectiveness aspects of the d with addition , audit also assessed, on test check basis, whether the management complie specific applicable laws, rules and regulations in managing the entity. The audit report indicates has actions that, if taken, will help the management realize the intended objectives. The report been discussed with the J&C Management in September, 2017. The report consists of two parts i.e. Part-I contains Auditor 's Report (Audit Opinion) and Audit Financial Statements and Part-II consists of Executive Summary, Management Letter and Findings. The report has been prepared for submission to the World Bank in terms of agreement. Director General Audit, Punjab, Lahore Dated: Place: Lahore. 3 PART- I 1- Project Overvie w 2- Audito r's Report to the Manage ment 3- Financi al Stateme nts 4 PROJECT OVERVIEW Name of the Project Jobs and Competitiveness Program Sponsoring Authority World Bank Executing Agency Punjab Resource Management Program Loan No. IBRD-86000 Principal Loan Amount USD 100 million Date of Commencement 31-03-2016 Actual Date of Comm enceme nt: 17-06-2016 Date of Completion 30-06-2021 Grant Utilization Status: Amoun t utilized during 2016-17(Rs.) 2,574,017,771 5 AUDITOR'S REPORT Auditor's Report on J&C Financial Statements We have audited the accompanying Financial Statements of Jobs and Competitiveness Program that comprises of Statement of Recei ts and Payments, Statement of Comparison of Budget and Actual together with the notes forming part thereof for the year ended 3