Ministries/divisions: MoF annoyed at absence of expense reconciliation

ISLAMABAD: The Ministry of Finance is reportedly annoyed with ministries/Divisions for not reconciling their expenditures with Accountant General Pakistan Revenue (AGPR) despite repeated reminders, well-informed sources told Business Recorder.

Finance Ministry’s Expenditure Wing, in a letter to all the Federal Secretaries/Additional Secretaries Incharge who are also Principle Accounting Officers (PAOs) of their respective Ministries/Divi-sions, has referred to AGPR’s letters of December 15, 2023, January 19, 2024 and February 15, 2024“ reconciliation of expenditure with AGPR to the month of December 2023“ wherein it has been reported that various Ministries/Divisions/Departments are not reconciling their expenditure with AGPR on regular basis, despite communication of the same to PAOs by Finance Division on December 14, 2023.

Finance Ministry’s Expenditure Wing has reiterated that the purpose of reconciliation is to identify any mismatch with actual expenditure, wrong booking, or shortfall in funding under the relevant head of account. This exercise results in timely corrections and re- appropriations of funds.

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The Regulations at paras 7 (1)(p) & 32(8) of Financial Management and Powers of Principal Accounting Officers (FM&PPAO) Regulations, 2021 thoroughly explain the mechanism of reconciliation of revenue/expenditure and also define the duties/responsibilities of CF&AO for carrying out the reconciliation of expenditure of Ministries/Divisions/ Departments. Proper compliance to the provisions of regulations leads to accounting/financial discipline and ensures smooth payments including salaries and operational expenses.Finance Ministry argued that all PAOs, being the head of financial management in terms of Regulations 3 & 7 of the FM&PPAO Regulations, 2021 should direct Chief Finance & Account Officers (CF &AOs) to carry out the monthly reconciliation of expenditure and receipts with AGPR on regular basis and send a copy of reconciliation statement to Deputy Secretary Expenditure concerned by 30th of every month.

Copyright Business Recorder, 2024