Investment adversely affected: ‘BoI not preparing financial statements, annual reports’

ISLAMABAD: The Auditor General of Pakistan has observed that non-finalization of audited financial statements and non-printing of Annual Reports is a serious lapse on the part of the Board of Investment (BoI) as it adversely affects its attempts to attract investment.

The AGP in its audit report for audit years 2019-2020 pointed out that the BoI has not been preparing financial statements and Annual Reports, and did not report receipts of Rs98.522 million Board’s fund for budget estimation.

The audit observed that the management of the BOI did not prepare its annual financial statements to be audited.

Moreover, the Annual Reports, since the year 2016-2017 were not been printed.

The management admitted the audit observation, and committed for preparation of Annual Report well before 31.12.2019 DAC on 13.11.2019 directed the management to prepare Annual Report, and display on Board’s website as well before 31.12.2019.

No progress was shared with audit till finalization of this report.

Audit recommends implementation of the DAC decision.

The Section 14(1) of the Board of Investment Ordinance, 2001 clearly states that the BoI will prepare and submit to the federal government, as soon as possible after the end of each financial year but not later than the last day of December of the next year, a report on the conduct of its affairs for the year.

Section 14(2) states that the report shall include (a) An audited statement of income and expenditure; (b) An audited balance sheet; (c) A short financial statement of the preceding financial year; (d) Activities of the BoI during the financial year; (e) An outline of the investment program for the year ahead; and (f) Any other matter which the federal government may direct or the BoI may consider appropriate.

The report also revealed about the non-reporting of receipts of Board’s fund for budget estimation of Rs98.522 million.

The report pointed out that Section 13 of the Board of Investment Ordinance, 2001, states that in respect of each financial year, the BoI will submit for approval of the federal government by such date and in such form as may be specified by the federal government, a statement showing the estimated receipts and expenditure, and the sums, which are likely to be required from the federal government during the next financial year.

The BoI, Islamabad incurred an expenditure of Rs98,522,281 during the period under audit from the Board Fund but neither the receipts nor the expenditure out of the Board was disclosed to the Finance Division by the management for obtaining budget for the next fiscal year.

Copyright Business Recorder, 2020