Overview
PEF Audit Department was established in year 2010. Prime focus of Audit Department is to provide transparent, efficient and effective utilization of public money while abiding by all applicable Laws, Rules & Regulations governing the Foundation. These goals are achieved through four different types of Audits carried out in PEF:
- Financial/ external Audit by Chartered Account Firm as per PEF Act
- Audit by Auditor General of Pakistan
- Internal Audit
- Any other audit including donor’s reviews/ special audits
Audit and Risk Management Committee
An Audit and Risk Management Committee has been established as subcommittee of the PEF Board of Directors which is responsible for the Foundation’s audit related matters along with associated risk management, ensuring appropriateness of Internal Control structures and safeguarding of assets of the Foundation. The Audit and Risk Managment Committee reviews in depth the annual financial statements of the Foundation, monitor the integrity of the Operations, financial reporting system and internal controls, review the statutory accounts and consider accounting issues arising in respect of the Foundation’s affairs and recommend them to the Board for approval.
Pre Audit
An in-house pre audit activity is carried out by PEF audit department for 100% payments made by the Foundation. The basic aim of pre audit is to ensure applicability of relevant taxation and procurement laws along with approval from Competent Authority as per financial matrix, adherence to prescribed process, attachment of necessary documents and occurrence of expenditures under budgetary limits.
Financial Audit
Clause 10(3) of PEF Act 2004 stipulates as “The accounts of the Foundation shall be maintained in such form and manner as may be prescribed and shall be audited by an auditor, to be appointed by the Government, being a person who is a Chartered Accountant within the meaning of the Chartered Accountants Ordinance, 1961 (X of 1961)”
At the close of each financial year, financial audit is carried out by a renowned Chartered Accountant Firm and annual financial statements of the Foundation along with Auditor’s Report are placed before the Board through Finance Committee.
Financial auditors are responsible to express an opinion on the financial statements of the Foundation. They conduct audit in accordance with International Standards on Auditing as applicable in Pakistan. These standards require that auditors comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An unqualified (clean) report of the Foundation has been issued by M/s Naveed Zafar Ashfaq Jaffery & Co. Chartered Accountants for FY 2015-16.
Audit by Auditor General of Pakistan
Annual AGP Audit is conducted by Commercial Audit Section of Auditor General of Pakistan which is an independent Department of Government to examine operational and financial activities performed in a financial year.
Commercial Audit issues Audit Inspection Report having observations for management response after which Draft Audit Paras are prepared for discussion/ decision of Special Departmental Accounts Committee (SDAC) chaired by Secretary/ Special Secretary/ Additional Secretary, School Education Department. Draft Audit Paras which remain unsettled/ pending in SDAC are printed in Audit Report on Public Sector Enterprises for discussion/ decision of Public Accounts Committee.
Internal Audit
Internal Audit provides an independent, objective assurance and consulting activity designed to add value and improve operations which helps to accomplish objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Internal audit activity of the Foundation is outsourced by the Board to a renowned Chartered Accountant Firm. Previously M/s Ernst & Young Ford Rhodes Sidat Hyder was hired to conduct internal audit for the year 2011-13, then onwards from 2013 M/s Grant Thornton Anjum Rehman Chartered Accountants has been selected with the approval of BOD for quarterly Internal Audit of Programs & Support Departments as per Internal Audit Plan.
Special Audit/ Donor’s reviews
Any other audit including donor’s reviews/ special audit of the Foundation is conducted as and when required by the Government/ Donors/ BOD/ Executive Management. World Bank and Department for International Development (DFID) continuously deploy renowned Chartered Accountant Firms to monitor the performance of Foundation.
Last Performance/ Special audit activity of the Foundation was carried out by Commercial Audit Section of Auditor General of Pakistan for FY 2011-12 to 2015-16. M/s Ernst & Young Ford Rhodes Sidat Hyder has performedf the Special Audit Assignment of PEF to comply with the requirements of Government and BOD.
Status update of Audit activities in PEF:
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Type of Audit
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Status
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Financial/ external Audit
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Completed upto FY 2015-16
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Audit by Auditor General of Pakistan
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Completed upto FY 2015-16
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Internal Audit
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Completed upto FY 2015-16
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