New Procedure For The Maintenance And Operation Of Revolving Fund Accounts Opended For IDA, IBRD, And ADB Credits/Loans
No.F.2(4)-B.S/2000-1146 GOVERNMENT OF PAKISTANFINANCE DIVISION(BUDGET STATISTICS SECTION) Islamabad, November 25, 2002 OFFICE MEMORANDUM Subject: NEW PROCEDURE FOR THE MAINTENANCE AND OPERATION OF REVOLVING FUND ACCOUNTS OPENDED FOR IDA, IBRD, AND ADB CREDITS/LOANS The undersigned is directed to refer to this Division’s O.M. No.F.2(3)-B.S/84-93, dated 23- 10-1993 and to say that a new foreign aid Accounting Procedure for donors share of financing have been devised (copy enclosed). The new Procedure would be applicable to the projects accounts opened after 1st December2002.2000-1146, dated 25-11-2002 on the subject noted above. It has been observed 2. The Executing Agencies for the ongoing projects shall be responsible to submit monthly classified account of expenditure (function and object-wise) to the concerned A.G./AGPR by the 10th of the following month with advice to adjust the same against their Budget Demand. Deputy Secretary (BR) ANNEX TO FINANCE DIVISION O.M. NO.F.2(4)-B.S./2000-1146, DATED 25-11-2002 Government of PakistanFinance Division(Budget Statistics Section) Subject: NEW PROCEDURE FOR THE MAINTENANCE AND OPERATION OF REVOLVING FUND ACCOUNTS OPENDED FOR IDA, IBRD, AND ADB CREDITS/LOANS Debit : “Head of Account and Demand No., as indicated in the copy of Withdrawal Application”. Credit : : “3905006-Assignment Account (for Revolving Fund under IDA/IBRD and 3905007-Assignment Account for ADB Credit/Loan No……. for Project ………………….. )”. The National Bank of Pakistan will immediately report the receipt in US Dollars as well as Rupees to the project director with copy to Provincial Finance and Development Departments, Economic Affairs Division and Finance Division, Government of Pakistan as well as to Accountant General of Pakistan Revenues. (VIII) a) The persons authorized to sign Withdrawal Applications and operate ‘Revolving Fund Accounts’ simultaneously shall furnish copies of the Withdrawal Applications to their Administrative Ministries / Divisions as well as to the Economic Affairs Division, National Bank of Pakistan, Head Office, Karachi and State Bank of Pakistan, (Accounts Department), Karachi. The endorsements of Withdrawal Applications shall indicate the Demand No. and head of account under which the rupee equivalent of the amounts authorized for credits into Revolving Fund Accounts in Dollars is to be debited. b) The person authorized to sign the withdrawal application and operation of Revolving Fund Account relating to the Provincial Projects, shall furnish copies of the withdrawal application to his administrative Department as well as to the Provincial Finance, Planning & Development Departments and State Bank of Pakistan, (Accounts Department), Karachi. The endorsements of withdrawal application will indicate the (Provincial) budget Demand No. and head of Account to which the rupee equivalent of the amounts authorized for credit to Revolving Fund Accounts in dollars, is to be debited. (b) The Project Director shall verify the expenditure reported by the National Bank with his record and prepare a function- cum-objective wise statement of expenditure and submit it to the concerned A.G alongwith vouchers by 21st of the following month. The A.G will get the expenditure agreed and reconciled with the figures reported by the State Bank. In case any variation is found, the Project Director will be asked by the A.G to reconcile and remove the said variation. (c) The A.G shall also carry out necessary post audit of the paid vouchers. The observations, if any, shall be communicated to the Project director with copies to Federal/Provincial Finance/Planning and Development Division/Department. After post audit, the A.G will return the vouchers to the Project Director for external audit purpose by the Auditor General of Pakistan. (XII) The Project Director shall be personally responsible for the adjustment of disbursements made direct by the donors/lenders in Government Accounts. On receipt of intimation of payments from donors/lenders duly supported with necessary documents, the Project Director will advise the AGPR and concerned A.G of the Provincial Governments to adjust the expenditure against his Budget Demand by credit to Account-I of the respective Government under head “2331000-Foreign Debt (Permanent)”. (XIII)(a) The National Bank of Pakistan will not require permission of the Finance Division (External Finance Wing) for making payments in Foreign Exchange from Revolving Fund Accounts on account of consultancy contracts under the credit/loan. However, in case of Foreign Training prior approval of concerned Ministries/Divisions will be required. (b) The consultancy charges payable by the donors shall be paid after verification of services rendered by the Consultant, by the concerned Project Director/ Ministries/ Divisions or by the Provincial Governments. (XIV) The advance payments made by the National Bank of Pakistan to the project authorities shall be reimbursed within two days by SBP to the Provincial Headquarters of the National Bank of Pakistan by debiting the head “Assignment Account”. (XV) The controlling Ministries/Divisions shall reconcile expenditure on account of Foreign aid with AGPR, EAD and SBP on monthly basis. The controlling departments of the Provincial Governments will similarly reconcile the expenditure on foreign aided projects with the AG/Provincial Finance Department. In case of non-reconciliation by 21st of the following month, AGPR/Provincial A.Gs to advise the donor through the EAD to take appropriate action as per the donor’s “Financial Management Guidelines”.
