Government of the Punjab, Higher Education Department has issued a letter on 08-04-2021 in connection with Exclusion of Audit Paras Pertaining to College / School Funds.

Exclusion of Audit Paras Pertaining to College / School Funds

I am directed to refer to the subject cited above and to state that according to rule 2.1 now 1(a) of Punjab Subsdiary Treasury Rules, 1988 the funds collected Government Schools and Colleges (all authorized pupil’s fund declared as such as from time to time), are not the part of revenues of the Provinces. Subsequently, Finance Department has issued instructions bearing No. FD(M.-Rec)/2-39/2002, dated 16.07.2005, for exclusion of audit para pertaining to college/school funds from audit reports and discontinuation of the external audit conducted by Auditor General of Pakistan (Copy enclosed). As per the advice of the Finance Department, an internal audit is required for non-governmental funds of the educational institutions. In line with the above instruction, the Higher education department had notified the collection of eighteen (18) college funds vide notification No. SO(CA)1-44/2016, dated 16.05.2016 to bring uniformity in the application, maintenance, and utilization of such funds (copy enclosed).

2 The competent authority has observed that the audit reports of preceding years contain many audit observations relating to various college funds, many audit paras had been made against the concerned colleges in violation of the above-said instruction of the Finance Department.

I am further directed to request that the audit paras relating to the colleges of Higher Education Department from the date of issuance of instructions by the Finance Department i.e. 16.07.2005 and guidelines to exclude the college funds from the jurisdiction of an external auditor may be issued to avoid such situation in future.

Special thanks: Mr. Zahid Khan