PPRA Procedure Pre Audit Checks –AG 08.09.2020
Ensuring compliance with procurement regulations is critical for maintaining transparency and accountability in public sector spending. On September 8, 2020, the Accountant General (AG) of Punjab issued an important directive to reinforce the pre-audit checks related to purchases and procurement. This directive emphasizes the need for due diligence in verifying claims and bills to ensure they adhere to the Public Procurement Regulatory Authority (PPRA) rules. This article provides a comprehensive overview of the directive, outlining the required procedures and their implications for procurement processes.
Importance of Pre-Audit Checks in Procurement
Enhancing Transparency and Accountability
Pre-audit checks play a vital role in:
- Transparency: Ensuring that all procurement activities are conducted openly and fairly.
- Accountability: Holding departments and individuals responsible for adhering to procurement regulations.
Preventing Fraud and Mismanagement
Thorough pre-audit checks help in:
- Fraud Prevention: Detecting and preventing fraudulent claims and expenditures.
- Efficient Resource Management: Ensuring that public funds are utilized effectively and for their intended purposes.
Key Components of the Directive
The directive issued by the Accountant General Punjab outlines several crucial components to strengthen pre-audit checks for procurement claims:
1. Attachment of Original Newspaper Cuttings
- Requirement: Only original newspaper cuttings showing advertisements must be attached with the claims.
- Verification: Before clearing any claim, it must be confirmed that the advertisement was also published on the PPRA website as per Rule-12 (1) of PPRA.
2. Thorough Check of Requisite Vouchers
- Detailed Inspection: All requisite vouchers must be thoroughly checked before admitting any claims.
- Compliance: This ensures that all documentation meets the required standards and regulations.
3. Annual Procurement Requirements Advertisement
- Advance Advertisement: Annual procurement requirements must be advertised in advance on both the authority’s website and the procuring agency’s website, in accordance with Rule-9(2) of PPRA.
4. Advertisement for Procurement Above Specified Amounts
- For Procurements Between Rs.300,000 and Rs.3 Million:
- Must be advertised on the authority’s website and in one national daily newspaper as per Rule-12 (1) of PPRA.
- For Procurements Exceeding Rs.3 Million:
- Must be advertised on the authority’s website, the procuring agency’s website, and at least two daily newspapers (one in English and one in Urdu) as per Rule-12(2) of PPRA.
5. Acceptance of Original GST Invoices Only
- Invoice Verification: Only original GST invoices are acceptable for the pre-audit of claims to ensure authenticity and compliance.
Procedures for Effective Pre-Audit Checks
To ensure compliance with the directive, the following standard operating procedures (SOPs) should be implemented:
1. Rigorous Documentation Verification
- Original Documentation: Ensure that all claims are supported by original newspaper cuttings and GST invoices.
- Comprehensive Review: Conduct a detailed review of all requisite vouchers and documentation to verify their authenticity.
2. Adherence to Advertising Requirements
- Advance Planning: Advertise annual procurement requirements well in advance on the relevant websites.
- Compliance with Advertisement Rules: Follow the specified rules for advertising procurements based on their value, ensuring publication in the required mediums.
3. Centralized Tracking System
- Record Maintenance: Maintain a centralized system for tracking all submitted, approved, and cleared procurement claims.
- Periodic Updates: Regularly update records to reflect the current status of each claim and ensure easy access for verification.
Benefits of Implementing the Directive
Improved Financial Management
Adhering to the directive will lead to:
- Better Budget Control: Enhanced ability to monitor and control procurement expenses.
- Efficient Resource Allocation: Ensures that resources are allocated and utilized effectively.
Increased Transparency and Accountability
Implementation of the directive promotes:
- Clear Documentation: Maintaining comprehensive records of all procurement activities.
- Audit Readiness: Ensuring that all documentation is readily available for audits and reviews.
Enhanced Fraud Prevention
By following the outlined procedures, organizations can:
- Detect and Prevent Fraud: Minimize the risk of fraudulent claims and expenditures.
- Ensure Compliance: Ensure all procurement activities comply with PPRA rules and regulations.
Conclusion
The directive issued by the Accountant General Punjab on September 8, 2020, marks a significant step towards strengthening pre-audit checks for procurement activities. By adhering to the outlined procedures, public sector organizations can ensure transparency, accountability, and efficient financial management in their procurement processes.
In summary, implementing these pre-audit checks will lead to better budget control, enhanced operational efficiency, and a reduced risk of fraud and mismanagement. It is imperative for all departments to comply with these procedures to achieve these benefits and maintain the integrity of their procurement activities.
