Monday, October 18, 2010

Information about Pakistan Military Accounts Department.

Pakistan Military Accounts Department (PMAD) is an attached Department of Ministry of Defence mainly responsible for making payments to the Armed Forces, maintaining accounts thereof and rendering financial advice to defence authorities. It also has a well established internal audit mechanism in the form of Local Audit offices functioning under the Controller of Local Audit (Defence Services).
Military Accounts Department deals with payments, accounting and internal audit in respect of three Defence Forces, Defence Production Division and Inter Services Organizations Establishment. 

  • Maintenance of Accounts of Defence Services.
  • Payment of Pay & Allowances to Commissioned Officers, JCOs / ORs and civilians paid from Defence Services Estimates.
  • Audit and Payment of Stores indigenous and imported.
  • Audit and Payment relating to the Works of Defence Services.
  • Internal Audit.
  • Compilation of Defence Services receipts / Expenditures.
  • Preparation of Appropriation Accounts.
  • Payment of Railway and PIA Claims relating to the Defence Side.
The P.M.A.D is performing dual duties i.e. accounting as well as internal auditing.

  • PMAD is a professional organization comprising of Accounts Officers, Assistant Accounts Officers and Auditors at the operational level and Deputy Controllers of Military Accounts/ Controllers of Military Accounts at the supervisory level. Organization chart follows.
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The quality of P.M.A.D's functioning is judged through various reports submitted on fortnightly/monthly/quarterly/half yearly and yearly basis. The reports are prepared at sub office level and submitted to the Controller Office for scrutiny and consolidation. These reports are then submitted by the Controller to the M.A.G and then in certain cases sent to the Ministry of Defence. The accuracy and correctness of these reports is judged through inspection of sub-offices as well as by cross checking with reference to the reports submitted by Services Headquarters to the Ministry of Defence as the working of the Department is monitored by the Ministry of Defence. No other Accounts Department faces the channels of accountability like the P.M.A.D. The M.A.G's accountability is a three fold activity done through the following means:-

a. The principal accountability/activity is done by the Ministry of Defence through financial reporting.
b. The accountability activity is also done by the Defence Audit Department on behalf of the Auditor General. Although financial audit is the basis yet the work of Defence Audit Department encompasses the entire ambit of the P.M.A.D. Audit Reports, Advance Paras, Draft Paras and discussions etc. are the major tools of accountability by the Defence Audit.
c. Other activity is done by the Services Headquarters, as they have their own scientific sources of information which remain on task to watch the functioning of the P.M.A.D. Where required, the P.M.A.D's working, activities, decisions, policies are reported to the Ministry of Defence either directly or through J.S. Headquarters. Annual inspection of all CsMA is carried out by inspection parties of Dy. M.A.G.
d. In order to check the efficiency and working of CsMA office, yearly inspection is carried out by the teams deputed by the M.A.G and CMAs are bound to ensure the rectification of errors pointed out in the Inspection Reports. The reports are discussed with the CMAs and irregularities are corrected.
e. In addition to above complaint and guidance Cell is working in the M.A.G office, as it is open to every body to write his grievances directly to the M.A.G. The complaints so received are attended on priority and the remedial action is taken.
It will be appreciated that the M.A.G's Organisation is having comprehensive chain of accountability as compared to any other Department.
Monthly Account of Defence Services is compiled through “All Pakistan Compilation” by the M.A.G's Office and it is rendered to the Ministry of Defence with a copy to all Service HQs, Military Finance and other user agencies. Appropriation Account of the Defence Services is prepared and submitted to Ministry of Defence and Ministry of Finance, who are responsible for its submission to the Auditor General. The Appropriation Accounts deals with:
• A general review of expenditure on Defence Services.
• Changes in form of the Accounts or in their classification (where involved).
•  Misc observations and

•  Appropriation Accounts (showing the figures for original modified appropriation and actual) by Major Heads.
•  The Accounts are maintained/completed in compiled form through Computer System installed in the M.A.G's Office.
The state of accounting in the P.M.A.D is highly satisfactory as its correctness is verified at different Quarters i.e. Ministry of Defence, Military Finance, Service HQs and Auditor General. This is verified from the facts that the accounts of Defence services prepared by the Military Accountant General, are certified by the Auditor General and never any objection has been raised by the Department of the Auditor General.
All the accounts are prepared and submitted to concerned authorities on time.
As stated above neither the Department of Auditor General nor the Ministry of Defence has raised any objection on the accounts prepared by the M.A.G's Office, which shows the degree of accuracy of the accounts.

The internal audit of all Units/formations is carried out by the CLA(DS) through LAOs working at the station. All cash and store accounts are audited by the LAOs . The audit of numerical store/cash accounts is generally carried out to the extent prescribed from time to time by the M.A.G. If during the visit to a Unit/Formation, difficulty is experienced in obtaining full and fair access to any essential account or record in obtaining any important explanation etc., the LAO reports full facts of the case to the CLA(DS); M.A.G to extend the scope of audit.


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