Partner Profit Centre of Works Transactions dt 03.04.2010

Partner Profit Centre of Works Transactions dt 03.04.2010

A meeting concerning the implementation of a separate identification mark to efficiently retrieve works transactions under the Public Account was convened under the chairmanship of PIC/Advisor to CGA on 22.03.2010 in the Conference Room of the Office of the Controller General of Accounts, Works, Lahore. The list of participants is appended at Annexure-A.

The chairman welcomed the participants, and the proceedings began with the recitation of verses from the Holy Quran.

1. Identification of Works Account Transactions:

The primary issue discussed was the differentiation and retrieval of works transactions under the Consolidated Fund and the Public Account. While transactions under the Consolidated Fund can be identified due to different cost centers allocated to schemes, those under the Public Account pose a challenge as they share the same Profit Centre, making retrieval difficult.

It was resolved that distinct Profit Centres should be assigned to the Office of the Director General Accounts Works to facilitate accurate and separate retrieval of these transactions.

To address the reconciliation of records up to March 2010, it was decided that the concerned Executive Engineers and Divisional Accounts Officers should reconcile figures from the monthly printed accounts with those entered by the Accounts Officers into the system.

2. Proper Operation of Works Audit Suspense:

During the meeting, the Director General Accounts Works presented a comprehensive overview of the Works Audit Suspense. The presentation covered its operational significance prior to and after the introduction of the SAP/R-3 system, highlighting the issues encountered post-implementation and proposing a corrective framework for its operation under SAP/R-3.

The attendees agreed upon the proposal, recognizing the need for a systematic and accurate approach to ensure the integrity of the Works Audit Suspense operations.

Detailed Discussion Points and Resolutions

Introduction and Objective:

The meeting aimed to streamline the process of identifying and retrieving works transactions under the Public Account, addressing the current challenges posed by the shared Profit Centre. The objective was to enhance transparency, accuracy, and accountability in financial reporting and reconciliation.

Challenges Identified:

1. Homogeneity in Public Account Transactions:
   • The inability to distinguish between various transactions under the Public Account due to a unified Profit Centre.
   • This lack of distinction hampers the efficiency of financial tracking and audit processes.
2. Reconciliation Issues:
   • Discrepancies between the figures recorded by the Executive Engineers and those entered by the Accounts Officers.
   • The need for a standardized reconciliation process to ensure data consistency and reliability.
3. Improper Operation of Works Audit Suspense:
   • Issues arising from the introduction of SAP/R-3, leading to improper handling of the Works Audit Suspense.
   • The necessity for a revised operational protocol to align with the SAP/R-3 system requirements.

Proposed Solutions:

1. Allocation of Distinct Profit Centres:
   • Assigning unique Profit Centres to different departments within the Office of the Director General Accounts Works.
   • This will enable precise tracking and retrieval of transactions, mitigating the current issue of homogeneity.
2. Enhanced Reconciliation Protocol:
   • Implementing a thorough reconciliation process involving Executive Engineers and Divisional Accounts Officers.
   • Ensuring monthly printed accounts match the system entries, fostering accuracy in financial records.
3. Operational Framework for Works Audit Suspense:
   • Establishing a structured approach for the operation of Works Audit Suspense under the SAP/R-3 system.
   • This includes training personnel, updating procedural manuals, and integrating feedback mechanisms to continuously improve the process.

Expected Outcomes:

1. Improved Financial Management:
   • The adoption of distinct Profit Centres will streamline financial management, allowing for more effective tracking, reporting, and auditing of works transactions.
2. Increased Accuracy and Accountability:
   • The enhanced reconciliation protocol will ensure data integrity, reducing discrepancies and enhancing accountability across departments.
3. Optimized Operation of Works Audit Suspense:
   • A revised operational framework will align the Works Audit Suspense process with modern ERP systems like SAP/R-3, improving overall efficiency and accuracy.

Conclusion:

The meeting concluded with a unanimous agreement on the proposed solutions and a commitment to implement the necessary changes promptly. The attendees acknowledged the importance of these measures in strengthening the financial management system and ensuring robust oversight of works transactions.

Next Steps:

1. Immediate allocation of distinct Profit Centres to the Office of the Director General Accounts Works.
2. Initiation of the reconciliation process for records up to March 2010 by the concerned Executive Engineers and Divisional Accounts Officers.
3. Implementation of the proposed operational framework for the Works Audit Suspense under the SAP/R-3 system.