DRUG REGULATORY AUTHORITY OF PAKISTAN ACCOUNTING PROCEDURE AND FINANCIAL RULES, 2015
[Gazette of Pakistan, Extraordinary, Part-II, 11th March, 2015]
S.R.O. 213 (I)/2015, dated 9.3.2015.–In exercise of the powers conferred by Section 23 read with Section 19 and sub-section (2) of Section 22 of the Drug Regulatory Authority of Pakistan Act, 2012 (XXI of 2012), the Drug Regulatory Authority of Pakistan, with the prior approval of the Federal Government, is pleased to make the following rules, namely:–
1. Short title and commencement.–(1) These rules may be called the Drug Regulatory Authority of Pakistan Accounting Procedure and Financial Rules, 2015.
(2) They shall come into force at once.
2. Definitions.–In these Rules, unless there is anything repugnant in the subject or context,–
(a) “Act” means the Drug Regulatory Authority of Pakistan Act, 2012 (XXI of 2012);
(b) “Authority” means the Drug Regulatory Authority of Pakistan established under Section 3 of the Act;
(c) “civil servant” means a civil servant as defined in the Civil Servants Act, 1973 (LXXI of 1973);
(d) “Central Research Fund (CRF)” means the central research fund collected under clause (b) of sub-section (1) of Section 12 of the Drugs Act, 1976 (XXXI of 1976), and maintained by the Authority under Section 19 of the Act;
(e) “employee of the Authority” means an officer or official appointed under Section 14 of the Act and all employees of the Drug Control Administration, its sub-offices and its laboratories of the earstwhile Ministry of Health who opt to be included in the Authority under clause (b) of sub-section (5) of Section 15 of the Act;
(f) “Fund” means the Drug Regulatory Authority of Pakistan Fund created under Section 19 of the Act; and
(g) “Policy Board” means the Policy Board of the Authority constituted under Section 9 of the Act.
3. General.–(1) The accounts of the Authority shall be maintained on double entry system in accordance with the generally accepted accounting principles.
(2) The financial statements of the Authority shall be prepared in accordance with the approved accounting standards as applicable in Pakistan and in the manner as prescribed in Annex-A.
(3) All financial transactions shall be recorded in the respective head of account as specified in the chart of accounts of the Authority in Annex-B.
(4) The Director Budget and Accounts may change or create new accounting code in the chart of accounts with description for any new account.
(5) In case, the Authority shifts to Enterprise Resource Planning (ERP), the new chart of accounts may replace the existing chart of accounts, if required.
4. Drug Regulatory Authority of Pakistan Fund.–(1) The Fund which shall vest in the Authority.
(2) The Fund shall be utilized by the Authority to meet its expenses and charges properly incurred in connection with the carrying out of its functions and duties assigned or transferred to it under the Act, including but not limited to the payment of salaries and other remuneration to the CEO, Director, members of the different Boards, employees, experts, consultants and advisers of the Authority.
(3) The Fund shall be financed from the following sources namely:–
i. grant-in-aid in terms of salaries and retirement benefits of the existing staff to be provided by the Federal Government;
ii. donations and endowments;
iii. grants and loans by the Federal Government or a Provincial Government;
iv. loans and grants from the national and international agencies received by the Federal Government and Provincial Governments to finance the function of the Authority;
v. charges and fees collected by the Authority to recover the costs of regulated activities under the Act;
vi. proceeds of any investments made by the Authority;
vii. proceeds from any other service rendered by the Authority, including Inspection Services, foreign or local, or sale of any publication; and
viii. Central Research Fund collected from the pharmaceutical industry.
(4) Grant in aid from Federal Government shall be kept in Assignment Account lapsable on 30th June of every year. Assignment Account shall be operated as per procedure approved by Controller General of Accounts or Finance Division.
(5) Receipts from various sources shall be deposited in the designated bank accounts of the Authority.
(6) No person shall be authorized to receive cash on behalf of the Authority.
(7) Any demand draft, bank draft, pay order, cheque, etc. in the name of Authority shall be deposited forthwith in the designated bank account of the Authority.
(8) At the end of each financial year, the balance sheet shall be prepared and any un-spent remaining amount of the Fund shall be securely invested only in Government schemes in order to achieve self-sufficiency of the Authority.
(9) Assessment of the surplus funds and their investment shall be made in accordance with the mechanism given in the investment policy in Annex-C.
(10) All penalties and fines recovered by the Authority shall be credited to the Federal Consolidated Fund and not to the Fund of the Authority.
5. Budget.–(1) The Authority shall, in respect of each financial year prepare, on such date as may be determined, a statement of the estimated receipts and expenditure, including the revised and estimated budgets, requirements of grant-in-aid from Federal Government, and foreign exchange for the next financial year for consideration and approval of the Policy Board.
(2) The budget shall be prepared on incremental basis.
(3) Any foreign exchange requirements within the overall annual approved budget by the Policy Board shall be sent to Federal Government for appropriate provision and allocation.
(4) It shall not be necessary for the Authority to take prior approval from the Government to spend money from its own generated funds, and shall practice financial freedom as the Policy Board deem fit for furtherance of its functions.
(5) The budget shall be divided among the following cost or fund centers to ensure effective financial control:–
(i) Headquarters at Islamabad.
(ii) Federal Inspectorate of Drugs, Islamabad.
(iii) Central Drug Testing Laboratory, Karachi.
(iv) National Control Laboratory for Biologicals, Islamabad.
(v) Federal Drug Surveillance Laboratory, Islamabad.
(vi) Drug Regulatory Authority of Pakistan Sub-Office, Lahore.
(vii) Drug Regulatory Authority of Pakistan Sub-Office, Karachi.
(viii) Drug Regulatory Authority of Pakistan Sub-Office, Peshawar.
(ix) Drug Regulatory Authority of Pakistan Sub-Office, Quetta.
(x) Any other sub-office as approved by the Policy Board.
(6) The Chief Executive Officer (CEO) shall have the power to authorize expenditure provided for in the budget in accordance with the rules and regulations.
(7) The CEO shall have the power to re-appropriate funds within the approved budget.
(8) The CEO may delegate his powers to appropriate levels of management subject to such conditions as he may deem fit.
(9) The CEO shall not, except with the prior approval of the Policy Board in each case or unless already approved in the budget duly itemized, allow expenditure on items of civil works, or capital expenditure on office or laboratories equipments or automobiles.
6. Operation of bank accounts.–(1) Bank accounts of the Authority shall be opened with any scheduled bank or financial institution with the concurrence of Ministry of Finance.
(2) Bank accounts shall be operated by any two of the authorized signatories jointly among signatories authorized by the Authority.
(3) Subject to concurrence by the Ministry of Finance, Directors or Additional Directors at provincial capital offices and laboratories may also be authorized to open and operate bank accounts for official transactions with the approval of the Authority.
(4) The Directors or Additional Directors or Deputy Directors may be declared as DDOs. Bank accounts shall be jointly operated by the Director or Additional Director with another BPS 18 Officer and the Accounts Officer or Assistant Director (B & A) or Deputy Director (B & A).
(5) The two signatories authorized to operate the account should comprise of one officer each from the executive and from the Budget and Accounts Division. The powers of the Directors and Additional Directors shall be defined in the Authority’s Delegation of Administrative and Financial Powers.
7. Expenditure.–(1) Financial concurrence prior to the sanction of the expenditure for carrying out functions of the Authority shall be obtained as prescribed in the Delegation of Administrative and Financial Powers.
(2) The expenditure shall be incurred against specific budgetary allocation and amount released.
(3) Re-appropriation of funds released in main account heads or sub-heads can only be made with the concurrence of the Chief Executive Officer.
(4) Items involving cost below the financial limit for petty purchases prescribed under the Public Procurement Rules, 2004 may be purchased without collecting quotations.
(5) The officer shall conduct proper market survey and collect spot quotations and purchase the items at lowest available rates.
(6) The officer making the purchases shall certify that the purchase was made at the lowest rates available in the market on the back of the bill.
(7) Expenditure on procurement of petty purchases as prescribed under the Public Procurement Rules, 2004 may be made through temporary advance to an officer of not less than BPS-17 or equivalent.
(8) For procurement exceeding financial limit for petty purchases as prescribed under the Public Procurement Rules, 2004 and up to financial limit approved by the Policy Board in accordance with the Public Procurement Rules, 2004, limited sealed quotations may be called.
(9) The quotations shall be opened by three officers including a representative of Budget and Accounts Division.
(10) A comparative statement shall be prepared and after approval of the competent authority an order shall be placed on the lowest bidder.
(11) Purchases exceeding financial limits approved by the Policy Board in accordance with the Public Procurement Rules, 2004, as per sub-rule (8), shall be made after inviting tenders or bids either through placing on the Public Procurement Regulatory Authority’s website or through print media as prescribed under the Public Procurement Rules, 2004.
(12) The specification for items to be procured shall be generalized to allow the participation of maximum bidders. The Public Procurement Rules, 2004 rules shall be followed in all types of procurement cases.
8. Payments.–(1) All payments supported by Payment vouchers shall be made by a crossed cheque except the cash payments allowed under the Income Tax Ordinance, 2001 (XLIX of 2001).
(2) Payment vouchers shall be properly filled in with voucher number, date, cheque number, name of payee, account head number, particulars of payment, bill number and amount in figures and words.
(3) Income tax at source shall be deducted in accordance with Income Tax Ordinance, 2001 (XLIX of 2001).
(4) For internal control, a voucher shall be prepared after cent percent checking of these supporting documents, and verification of all additions and subtraction in the bill.
(5) The voucher shall then be checked or audited by an officer and shall be validated by another officer.
(6) Cashier shall not be allowed to sign a voucher.
(7) All relevant documents including following shall be attached with the payment voucher for payment against supplies:–
(i) Original invoice or bill of the supplier.
(ii) Supply order.
(iii) Inspection report.
(iv) Store receipt note.
(v) Approval of the competent authority.
(8) Payment pertaining to Headquarter’s expenditures shall be made by the Budget and Accounts Division.
(9) Director (Admn, HR & Logistics) shall be provided an imprest advance for defraying petty, emergent and contingent expenditures at Headquarter in accordance with his financial powers.
(10) Additional Directors or Incharge sub-offices and laboratories may be provided imprest advance for defraying petty, emergent and contingent expenditures at sub-offices and laboratories in accordance with their financial powers.
(11) The limit of imprest shall be subject to review after one year on the basis of petty expenditures incurred. The actual amount of one year divided by 24 shall be fixed as imprest money.
(12) Once the payment has been made, the invoice or bill of the supplier shall be stamped as “PAID”.
(13) Payments of salaries shall be made on the basis of pay authority issued by the Budget and Accounts Division.
(14) Taxes, utility bills, rent etc. shall be paid on the basis of actual and on due date.
9. GP Fund and Retirement benefits of civil servants.–(1) GP Fund and retirement matters of all those employees of Drugs Control Administration who opt to continue in as civil servants shall be maintained by the office of Accountant General of Pakistan Revenues.
(2) Subscriptions deducted from salaries of the civil servants working in the Authority shall be deposited as per Federal Government Rules.
(3) Payments with respect to pension contribution of civil servants shall be made by the Authority as per Federal Government Rules.
10. Maintenance of General Provident Fund (GP Fund).–(1) GP Fund accounts of the employees shall be centrally maintained at the Authority Headquarters under the supervision of Trustees of the GP Fund.
(2) Trustees of the GP Fund shall be appointed by the Federal Government and at least two trustees shall be among the employees of the Authority.
(3) All GP Fund payments including advances shall be approved at the Headquarters level.
(4) For payments from the GP Fund, authority shall be issued to the concerned DDO for disbursement to the individual.
(5) A separate GP Fund bank account shall be operated at the Headquarters level.
(6) Contributions from employees shall be deposited in a separate bank account. GP Fund contributions of at sub-offices level staff shall be transferred to this account immediately after closing monthly account, if any.
(7) Expected receipts and payments shall be synchronized and available balances in the fund shall be invested in Government securities.
(8) Subscriptions to be deducted from salaries of employees of the Authority shall be equal to Federal Government employees and procedure with respect to advances from the GP Fund shall also be as per Federal Government Rules.
Explanation.–Since the terms and condition of service of all officers and staff employed in the Drug Regulatory Authority of Pakistan, before the commencement of this Act shall not be varied to their disadvantage as provided in the Act, the Authority has to pay interest at the Government announced rates on the GP Fund balances of employees who opted to be included in the Authority.
11. Maintenance of Pension Endowment Fund.–(1) Employees of the Authority shall be entitled to pension or gratuity at par with the Federal Government employees.
(2) A separate fund shall be established for the purpose of pension of employees of the Authority and it shall be recognized under the Income Tax Ordinance, 2001 (XLIX of 2001).
(3) Trustees of the fund shall be appointed by the Federal Government and at least two trustees shall be among the employees of the Authority.
(4) The Authority shall make regular appropriations from its resources on the basis of actuarial calculations and it shall be deposited in a separate bank account.
(5) Expected receipts and payments shall be synchronized and available balances in the fund shall be invested in Government securities. The interest income to the fund shall reduce financial burden on the Authority in terms of its contribution towards the fund on account of pension payments.
(6) At the time of retirement or death of an employee, a notification to this effect shall be issued by the HR Division at Headquarters. The concerned employee shall collect pension application from the retired person or entitled member of the family and prepare pension paper on the prescribed format and submit to the Director (Admn, HR & Logistics) at Headquarters.
(7) On receipt of the pension papers the HR Division shall scrutinize and refer the complete case to Budget and Accounts Division for audit and payment.
(8) The Budget and Accounts Division shall check or audit the pension claim with the relevant record and prepare audit report showing amount of gross pension commutation or gratuity and net pension. Calculation of gratuity, pension or commutation shall be made as per prescribed rules.
12. Benevolent Fund and Group Insurance.–(1) Subscriptions with respect to benevolent fund and group insurance shall be deducted from the pay of employees of the Authority and civil servants at the rates specified in the Federal Government Employees Benevolent Fund and Group Insurance Act and paid to the Board of Trustees on monthly basis.
(2) In case of non-gazetted officials insurance premia shall be paid by the Authority to the Board of Trustees of the fund as per Federal Government Rules.
13. Preparation of books of account.–(1) In accordance with the budgetary head of accounts, all payments shall be recorded in the ledger and subsidiary ledgers.
(2) The following books of accounts shall be maintained for accounting record:–
(i) General ledger including separate account for each bank account
(ii) Petty cash book
(3) The following subsidiary registers or records shall also be maintained:
(i) Separate pay order register or record for payment of salaries to officers and staff.
(ii) House rent subsidiary payment record register or record.
(iii) Indoor medical payments register.
(iv) Utility bill payment register or record showing period (month) amount, meter reading etc.
(v) Rent payments register or record.
(vi) Suppliers register or record.
(vii) Contingency payments register.
(viii) Repair and maintenance register with respect to each type of fixed asset, i.e. individual building and equipment wise etc.
(ix) Maintenance of vehicles shall be recorded in their respective logbook and invariably be audited after every two months.
(x) Assets register or record (non consumable items).
(xi) Stocks register or record (consumable items).
(xii) Investments register or record.
(xiii) Register for advances to employees.
(xiv) Register for advances to contractors/supplier.
(xv) Check books register.
(xvi) Bank credit vouchers record.
14. Deposit of Deductions.–(1) Income tax deducted at source shall be deposited in the Government treasury as prescribed under the Income Tax Ordinance, 2001 (XLIX of 2001).
(2) The DDO shall ensure that income tax at source is deducted from all types of payments (if comes under taxable limits) in accordance with the rates prescribed in the Income Tax Ordinance, 2001 (XLIX of 2001).
(3) Schedule of deductions from salaries showing name and designation of employee and detail of his each type of deduction including G.P. Fund, Benevolent Fund etc. shall be sent to the Budget and Accounts Division by 5th of every month.
(4) The amount against G.P. Fund contributions shall be deposited in the central General Provident Fund Account.
15. Writing of Bank Book and Cash Book.–(1) Entries in the bank book and cash book shall be made immediately on making of payments through cheque or cash respectively. These books shall be balanced daily and be written clearly without overwriting. However, in case an error occurs, the same shall be crossed by drawing a line and correct entry be made over dated signature of DDO.
(2) The bank book shall never go overdrawn.
(3) Cheques shall be issued only if there is sufficient bank balance as per bank book. The checking of cash book shall be done by an officer other than DDO on 3rd working day of every month or on the day of receipt of Bank Statement whichever is earlier.
(4) Bank balance as per ledger shall be reconciled with the bank statement on monthly basis and bank reconciliation statements shall be prepared by 5th working day of every month. Imprest amount shall be checked with cash book balance.
(5) The cash balances shall be kept in an iron safe. The iron safe shall have two keys one with the cashier and other with DDO so that opening of iron safe is permitted in their presence.
16. Safe Handling of Cheque Book.–(1) Crossed or “Accounts Payee Only” Cheque Book shall be received from the bank and entered in the Cheque Book receipt register by mentioning Sr. No…………….to Sr. No……………Safe custody of the Cheque Book is the responsibility of the concerned DDO and this shall be kept in the iron safe.
(2) Cheque on the basis of approved voucher shall be written by the Accounts Officer or Assistant Director (B & A) / Deputy Director (B & A) only.
17. Preparation and Submission of Cash Accounts.–Cash account shall be prepared in accordance with the budgetary release and chart of accounts showing main head of accounts, sub-heads and submit to Director Budget and Accounts at Headquarters on 5th working day of every month. The following documents must be attached with the cash account:–
(i) Statement showing both bank and cash opening balance less payment during the month and likewise closing balance.
(ii) Bank statement.
(iii) Bank reconciliation statement.
(iv) Outstanding temporary advances list. The list must show the names of the concerned official and date when advance was drawn.
(v) Outstanding TA and DA advances.
(vi) Original Vouchers.
18. Loans.–(1) Subject to availability of the Funds for this purpose and subject to such conditions as it may consider proper, the competent authority may grant any one or more of the following categories of loans to an employee or a civil servant or a Director appointed on regular basis having more than ten years service on his application in writing for the grant of such loan:–
(i) Loan for purchase of a motor car, motor cycle or scooter (maximum for 2 times in entire service).
(ii) Loan for purchase of a house, flat, apartment or for house building (maximum for 2 times in entire service).
(2) The terms and conditions and procedure for sanction and recovery of loans are laid down in annex-D.
19. Central Research Fund (CRF).–(1) In this rule:–
(i) “Committee” means the Committee of experts constituted under the Drugs (Research) Rules, 1978;
(ii) “Chairman” means the Chairman of the Committee;
(iii) “Member” means Member, permanent or co-opted of the Committee;
(iv) “Secretary” Means Secretary of the Committee; and
(v) “investigator” means a person engaged in the investigation, research, development or evaluation of a drug on his own initiative or under the sponsorship of any other person or an institution;
(vi) “recipient” means a person or an institution who or which receives aid from the Fund; “sponsor” means a person, firm, an establishment or institution promoting research on a drug.
(2) CRF shall be administrated and utilized on the advice or recommendation of the Committee for the following purposes and objectives:–
i. Conducting basic and operational research, development or evaluation of drugs either by the Authority itself or through a research institution working under its control or among investigators or institutions for such purposes subject to such conditions as may be specified;
ii. Post marketing surveillance, evaluation and monitoring of safety, efficacy and quality of registered drugs and inactive materials including the clinical and toxicological studies.
iii. to meet capital or recurring expenses of research proposals or projects and strengthening the existing facilities of drug research and development, duly recommended by the Committee and approved by the Authority.
iv. Establishing a technical unit in the Authority, for evaluation and monitoring of the Research proposals and development projects and management of CRF.
v. Establishment and upgradation of Drug Research and Testing Laboratories.
vi. Engagement of investigators and evaluators for research and research projects.
vii. Any other activity related to research, development and evaluation of drugs as may be recommended by the Committee.
(3) CRF bank account shall be operated by any two of the signatories jointly authorized by the Authority.
(4) The sources of CRF shall be as follows:–
(i) Contribution by the licensed pharmaceutical companies under clause (b) of sub-section (1) of Section 12 of the Drugs Act, 1976.
(ii) Donation and endowments.
(iii) Income accruing through investment or any other legitimate source.
(4) CRF shall be applicable throughout Pakistan. The Committee shall advise or recommend utilization and disbursement keeping in view the merits and feasibility of research and development projects and for any other purposes advised or recommended by the Committee having due regards to the objectives.
(5) Contribution to CRF may be deposited by the licensed pharmaceutical companies at a scheduled bank in designated account on the prescribed bank credit voucher.
(6) The Authority shall draw up estimates for head-wise expenditure to be incurred on research, development, evaluation of drugs and management or monitoring of CRF during a financial year. The budget shall be approved by the Policy Board of the Authority.
(7) (i) Receipts already realized and credited to the head of account ‘3501000-Civil Deposits’ and Personal Ledger Account previously maintained vide AGPR, Islamabad Letter No. TM/10-21/PL(C)/Vol. XXVI/894 dated 19-09-1985 shall, after these are reconciled with the AGPR shall be transferred to bank account of CRF maintained by the Authority.
(ii) The Committee shall advise or recommend on the incurrence of expenditure from the Fund in the minutes of its meetings to be held from time to time. The process relating to the disbursement shall commence after approval of such minutes by the Authority. The funds shall be released to the quarter concerned on issue of proper financial sanction.
(iii) Budget and Accounts Division of the Authority shall be responsible to maintain accounts of CRF and keep up-to-date records of all the transactions made to or out of CRF in accordance with the rules or instructions applicable on the subject.
(iv) The accounts of CRF shall be maintained on double entry system in accordance with the generally accepted accounting principles.
(8) Surplus funds of CRF shall be invested in the Government securities as per investment policy placed at Annex-C.
(9) (i) In order to meet day to day requirements of expenses, the Secretary may have petty cash which shall be operated by using imprest system. At regular intervals the fund shall be recouped to the extent of shortfall between the sanctioned amount and balance in hand. The shortfall must be evidenced by duly authorized expenditure documents offset by legitimate cash receipts or vouchers.
(ii) Petty cash record shall contain the following details of payments:–
(a) Date of Payment
(b) Analysis of expense
(c) Payee
(d) Payment reference
(e) Amount of payment
(f) Approval for reimbursement.
(iii) Petty cash flow shall record fully all receipts and contain of the source of all transfer.
(iv) The Secretary shall ensure that:–
(a) petty cash expenses are allocated correctly and are subject to review procedure in the same way as other cheques or payments; and
(b) reimbursements of petty cash accounts are supported by properly authorized proof of payment.
(v) In order to ensure proper recording of petty cash expenses, a petty cash voucher shall be prepared to which the necessary support shall be voucher shall be signed by the person receiving the payment. Each voucher shall then be recorded in the petty cash book.
(vi) All payments made out of petty cash shall be recorded in the petty cash book and analyzed there. Then, by means of a general entry, the various accounts shall be dedicated.
(vii) The necessary procedures for operating the imprest system shall include approval of the predetermined amount by the committee according to receipt of cash by the petty cashier, preparation of necessary vouchers for expenses and recoding of the same in the petty cash book.
(10) In order to ensure that there is no ambiguity regarding the nature of an item of expenditure, the Authority shall distinguish between capital expenditure and revenue expenditure.
Explanation 1:–Capital expenditure is the expenditure resulting in the acquisition of an assent (tangible or intangible) or which results in an increase in the earning capacity of CRF. If the benefits of expenditure are expected to accrue for a long time, the expenditure shall be classified as capital expenditure.
Explanation 2:– Revenue expenditure is an item of expenditure whose benefit expires within the year of expenditure which merely seeks to maintain the activities of CRF or its assets in good working condition wages, fuel, utilizes, telephone, stationery etc.
(11) The closing date of the year-end of CRF shall be the 30th June each year.
(12) The Accounts of CRF shall be audited every year by the Auditor General of Pakistan.
(13) A copy of the Audit Report shall be sent to the Chairman of the Committee for the comments and remedial action.
(14) The Division of Budget and Accounts of the Authority shall carry out internal check and audit of accounts of CRF twice a year and submit report to the Chairman of the Committee.
(15) A statement of annual accounts of CRF together with the internal audit report thereon shall be submitted by the Chairman of the Committee to the Policy Board of the Authority after close of every financial year but before 30th September of following year for onward submission to the concerned division of Federal Government.
20. Closing of Books.–(1) Books of Accounts shall be closed at the end of every month and cash accounts with specified statements shall be sent to Budget and Accounts Division by 5th of every month directly by the concerned Director or Additional Director.
(2) The Officers who are delegated the power of DDO by their Directors or Additional Directors shall also send a copy of the cash accounts to them for review and financial control.
21. Steps Involved in opening and operating of the DDO’s Account at Provincial Capitals and Laboratories level.–(1) Request for Opening of the DDO’s Account– The concerned Directors or Additional Directors shall write to the Director (B & A) for opening of DDO’s Account. They shall send the following documents with their request:
(i) Specimen signature in two groups- Group ‘A’ shall contain specimen signature of the Director or Additional Director, Group ‘B’ shall contain specimen signature of Assistant Director (B & A) or Accounts Officer.
(ii) Photo copies of CNIC of the signatories.
(iii) Address of the nearest bank Branch.
(2) Approval of the Director (B & A)–If request for opening of new bank account is agreed by Director (B & A) as per policy, he shall attest photo copies of the CNIC and specimen signature of the signatories and get approval from Chief Executive Officer. The approval of the Chief Executive Officer shall be conveyed to the concerned bank through a resolution for opening of the bank Account with intimation to the concerned Director or Additional Director.
(3) DDO’s Subsidiary Bank Account.–For Provincial Office, DDO Account shall be opened in the same manner and shall also be operated jointly with at least one signatory from each group.
(4) Approval of Voucher.–Approval of vouchers shall be given as per delegation of Administrative and Financial Powers.
(5) Flow chart of the steps to open and operate DDO’s account is as specified at Annex-E.
22. Capital and Revenue Expenditure.–(1) In order to ensure that there is no ambiguity regarding the nature of an item of expenditure, the Authority shall distinguish between capital expenditure and revenue expenditure.
(2) Capital expenditure is the expenditure resulting in the acquisition of an asset (tangible or intangible) or an item which results in an increase in the earning capacity of the Fund. If the benefits of expenditure are expected to accrue for a long time, the expenditure shall be classified as capital expenditure.
(3) Revenue expenditure is an item of expenditure whose benefit expires within the year of expenditure which merely seeks to maintain the activities of the Fund or its assets in good working condition wages, fuel, utilizes, telephone, stationery etc.
23. Internal Check and Audit.–Budget and Accounts Division of the Authority shall carry out internal check and audit of accounts twice a year and submit report to the Chairman of the Policy Board of the Authority.
24. Audit.–(1) The Authority shall cause to be carried out audit of its accounts by one or more auditors registered as chartered accountants within the meaning of the Chartered Accountants Act, 1961 (X of 1961).
(2) The Auditor General shall have the power to audit or cause to be audited the accounts of the Authority. A copy of the audit report shall be sent to the Federal Government along with the comments of the Authority.
(3) The Authority shall take the requisite steps for the rectification of any objection raised by the Auditor General of Pakistan.
Annexure-A
[see Rule 3(2)]
DRUG REGULATORY AUTHORITY OF PAKISTAN BALANCE SHEET
AS ON.________________
| DESCRIPTION | AS ON | AS ON |
| JUNE 30, B | JUNE 30, A | |
| FUNDS AND LIABILITIES | ………………. | ………………. |
| Drug Regulatory Authority Fund | ………………. | ………………. |
| Excess of revenues over expenditure carried forward |
………………. | ………………. |
| G.P Fund | ………………. | ………………. |
| Pension Endowment Fund | ………………. | ………………. |
| Central Research Fund | ………………. | ………………. |
| LONG TERM LOANS | ………………. | ………………. |
| CURRENT LIABILITIES | ………………. | ………………. |
| Current portion of long terms loans | ………………. | ………………. |
| Creditors, accrued and other liabilities | ………………. | ………………. |
| Contingencies and commitments | ………………. | ………………. |
| TOTAL | ………………. | ………………. |
| ASSETS | ………………. | ………………. |
| LONG TERM ASSETS | ………………. | ………………. |
| Fixed Assets | ………………. | ………………. |
| Long term investments | ………………. | ………………. |
| Long term loans and advances | ………………. | ………………. |
| Long term deposits, pre-payments and deferred costs |
………………. | ……………….
|
| CURRENT ASSETS | ………………. | ………………. |
| Stores and supplies | ………………. | ………………. |
| Fees/Income receivable | ………………. | ………………. |
| Advances, pre-payments and other receivables |
………………. | ……………….
|
| Short term investments | ………………. | ………………. |
| Cash and bank balances | ………………. | ………………. |
| TOTAL | ………………. | ………………. |
DRUG REGULATORY AUTHORITY OF PAKISTAN STATEMENT OF INCOME AND EXPENDITURE
FOR THE YEAR ENDED JUNE 30, ________________
| DESCRIPTION |
YEAR ENDED |
YEAR ENDED |
| JUNE 30, B | JUNE 30, A | |
| REVENUE | ……………….. | ……………….. |
| Grant in Aid by the Federal Government | ……………….. | ……………….. |
| Charges and fees collected | ……………….. | ……………….. |
| Contribution to the Central Research Fund | ……………….. | ……………….. |
| Grants from National/International Agencies | ……………….. | ……………….. |
| Proceeds on investments | ……………….. | ……………….. |
| Other/Miscellaneous | ……………….. | ……………….. |
| OPERATING EXPENDITURE | ……………….. | ……………….. |
| Salaries, Allowances and Benefits | ……………….. | ……………….. |
| Rent | ……………….. | ……………….. |
| Utilities | ……………….. | ……………….. |
| Communication | ……………….. | ……………….. |
| Travel | ……………….. | ……………….. |
| Meeting and Entertainment | ……………….. | ……………….. |
| Depreciation | ……………….. | ……………….. |
| Vehicle Running Expenses | ……………….. | ……………….. |
| Inspection Expenses | ……………….. | ……………….. |
| Consultancy and Services | ……………….. | ……………….. |
| Legal fee/Law charges | ……………….. | ……………….. |
| Advertising & Publicity | ……………….. | ……………….. |
| Financial Charges | ……………….. | ……………….. |
| Others | ……………….. | ……………….. |
| SURPLUS OF REVENUE OVER EXPENDITURE |
……………….. | ……………….. |
| Prior year(s) adjustment(s) | ……………….. | ……………….. |
| Surplus/(Deficit) after adjustment(s) | ……………….. | ……………….. |
| Provision for Taxes | ……………….. | ……………….. |
| NET SURPLUS (DEFICIT) AFTER TAX | ……………….. | ……………….. |
| (CARRIED TO STATEMENT OF CHANGES IN FUNDS) |
……………….. | ……………….. |
DRUG REGULATORY AUTHORITY OF PAKISTAN CASH FLOW STATEMENT
FOR THE YEAR ENDED JUNE 30, _________________
| DESCRIPTION | YEAR ENDED JUNE 30, B | YEAR ENDED JUNE 30, A |
| CASH FLOW FROM OPERATING ACTIVITIES | ………………. | ………………. |
| Net surplus after tax | ………………. | ………………. |
| Adjustment for: | ………………. | ………………. |
| Depreciation | ………………. | ………………. |
| Amortization | ………………. | ………………. |
| Miscellaneous write offs and adjustments | ………………. | ………………. |
| WORKING CAPITAL CHANGES | ………………. | ………………. |
| Stores and spares | ………………. | ………………. |
| Fees/Income receivable | ………………. | ………………. |
| Loans, advances, deposits, pre-payments & other receivables | ………………. | ………………. |
| Creditors, accrued and other liabilities | ………………. | ………………. |
| NET CASH FLOW FROM OPERATING ACTIVITIES | ………………. | ………………. |
| CASH FLOW FROM INVESTING ACTIVITIES | ………………. | ………………. |
| Fixed capital expenditure | ………………. | ………………. |
| Long term investments | ………………. | ………………. |
| NET CASH FLOW FROM INVESTING ACTIVITIES | ………………. | ………………. |
| CASH FLOW FROM FINANCING ACTIVITIES | ………………. | ………………. |
| Long term loans–borrowing | ………………. | ………………. |
| Long term loans–repayments | ………………. | ………………. |
| NET CASH FLOW FROM FINANCING ACTIVITIES | ………………. | ………………. |
| NET INCREASE (DECREASE) IN CASH | ………………. | ………………. |
| CASH & CASH EQUIVALENT AT THE BEGINNING OF THE YEAR | ………………. | ………………. |
| CASH & CASH EQUIVALENT AT THE END OF THE YEAR | ………………. | ………………. |
DRUG REGULATORY AUTHORITY OF PAKISTAN STATEMENT OF CHANGES IN FUNDS
FOR THE YEAR ENDED JUNE 30,_______________
| Drug regulatory Authority of Pakistan Fund | Pension Endowment Fund | GP Fund | Central Research Fund | |
| Opening balance | ……………. | ……………. | ……………. | ……………. |
| Add: Surplus / receipts during the year |
…………….
|
…………….
|
…………….
|
…………….
|
| Transfer to/from appropriations |
…………….
|
…………….
|
…………….
|
…………….
|
| Investment income | ……………. | ……………. | ……………. | ……………. |
| Less: payments during the year |
…………….
|
…………….
|
…………….
|
…………….
|
| Closing balance | ……………. | ……………. | ……………. | ……………. |
Annex-B
[see Rule 3(3)]
DRUG REGULATORY AUTHORITY OF PAKISTAN CHART OF ACCOUNTS
| S# | Account | Description of Account Head | DEBIT | CREDIT |
| Code | Amount in Rs. | Amount in Rs. | ||
| 1. | 10100 | DRAP Fund | ……………. | ……………. |
| 2. | 10200 | GP Fund | ……………. | ……………. |
| 3. | 10300 | Benevolent Fund | ……………. | ……………. |
| 4. | 10400 | Pension Endowment Fund | ……………. | ……………. |
| 5. | 10500 | Central Research Fund | ……………. | ……………. |
| 6. | 20101 | Loan from International Agencies | ……………. | ……………. |
| 7. | 20102 | Loan from National Agencies | ……………. | ……………. |
| 8. | 20201 | Salaries payable | ……………. | ……………. |
| 9. | 20202 | Utility bills payable | ……………. | ……………. |
| 10. | 20203 | Tax deducted at source | ……………. | ……………. |
| 11. | 20204 | Taxes payable | ……………. | ……………. |
| 12. | 20205 | Accrued expenses | ……………. | ……………. |
| 13. | 20206 | Payable to suppliers | ……………. | ……………. |
| 14. | 30101 | Land | ……………. | ……………. |
| 15. | 30102 | Building | ……………. | ……………. |
| 16. | 30103 | Computer and IT Equipment | ……………. | ……………. |
| 17. | 30104 | Furniture and Fixture | ……………. | ……………. |
| 18. | 30105 | Air-conditioners | ……………. | ……………. |
| 19. | 30106 | Laboratory Equipment | ……………. | ……………. |
| 20. | 30107 | Generators | ……………. | ……………. |
| 21. | 30108 | Vehicles | ……………. | ……………. |
| 22. | 30109 | Accumulated Depreciation | ……………. | ……………. |
| 23. | 30201 | Softwares | ……………. | ……………. |
| 24. | 30202 | Accumulated Amortization | ……………. | ……………. |
| 25. | 40101 | Stocks (consumable items) | ……………. | ……………. |
| 26. | 40102 | Stocks (Laboratory Chemicals and Glassware) | ……………. | ……………. |
| 27. | 40201 | Advances to employee-House Building | ……………. | ……………. |
| 28. | 40202 | Advances to employee-Car/M. cycle | ……………. | ……………. |
| 29. | 40203 | Advances to employees- T.A/D.A | ……………. | ……………. |
| 30. | 40204 | Advances to employees- Others | ……………. | ……………. |
| 31. | 40211 | Advances to suppliers | ……………. | ……………. |
| 32. | 40301 | Fees/Income recoverable | ……………. | ……………. |
| 33. | 40302 | Accrued profit on investments | ……………. | ……………. |
| 34. | 40401 | Cash in hand | ……………. | ……………. |
| 35. | 40501 | Cash at Bank | ……………. | ……………. |
| 36. | 50101 | Grant in aid by the Federal Government | ……………. | ……………. |
| 37. | 50102 | Grant by the Provincial Governments | ……………. | ……………. |
| 38. | 50103 | Grant by the International Agencies | ……………. | ……………. |
| 39. | 50104 | Grant by National Agencies | ……………. | ……………. |
| 40. | 60101 | Drug Manufacturing License fee | ……………. | ……………. |
| 41. | 60202 | Drug Manufacturing License Renewal fee | ……………. | ……………. |
| 42. | 60203 | Site verification and layout fee | ……………. | ……………. |
| 43. | 60204 | Repacking | ……………. | ……………. |
| 44. | 60205 | Drug Registration fee | ……………. | ……………. |
| 45. | 60206 | Drug Registration renewal fee | ……………. | ……………. |
| 46. | 60207 | Variance to Registration | ……………. | ……………. |
| 47. | 60208 | Grant of Additional Pack (Price fixation) | ……………. | ……………. |
| 48. | 60209 | Fee for Price Increase | ……………. | ……………. |
| 49. | 60210 | Fee for Advertisement | ……………. | ……………. |
| 50. | 60211 | Fee for application for price increase | ……………. | ……………. |
| 51. | 60212 | Inspection services-International | ……………. | ……………. |
| 52. | 60213 | Inspection services-National | ……………. | ……………. |
| 53. | 60214 | Fee for clinical trials | ……………. | ……………. |
| 54. | 60215 | Fee for appeal | ……………. | ……………. |
| 55. | 60216 | Drug Import license fee | ……………. | ……………. |
| 56. | 60217 | Testing fee-Central Drug Laboratory | ……………. | ……………. |
| 57. | 60218 | Lot release fee/Testing fee-NCLB | ……………. | ……………. |
| 58. | 60219 | Testing fee-Surveillance Laboratory | ……………. | ……………. |
| 59. | 60220 | Fee for duplicate copy | ……………. | ……………. |
| 60. | 60221 | Sale of publications | ……………. | ……………. |
| 61. | 60301 | Miscellaneous application fee | ……………. | ……………. |
| 62. | 60501 | Income on investments | ……………. | ……………. |
| 63. | 60601 | Others | ……………. | ……………. |
| 64. | 70101 | Pay of officers | ……………. | ……………. |
| 65. | 70102 | Personal Pay | ……………. | ……………. |
| 66. | 70103 | Qualification Pay | ……………. | ……………. |
| 67. | 70104 | Basic pay of Staff | ……………. | ……………. |
| 68. | 70105 | Special pay of staff | ……………. | ……………. |
| 69. | 70106 | Senior post Allowance | ……………. | ……………. |
| 70. | 70107 | House Rent Allowance | ……………. | ……………. |
| 71. | 70108 | Conveyance Allowance | ……………. | ……………. |
| 72. | 70109 | Washing Allowance | ……………. | ……………. |
| 73. | 70110 | Dress Allowance | ……………. | ……………. |
| 74. | 70111 | Qualification Allowance | ……………. | ……………. |
| 75. | 70112 | Medical Allowance | ……………. | ……………. |
| 76. | 70113 | Entertainment Allowance | ……………. | ……………. |
| 77. | 70114 | Computer Allowance | ……………. | ……………. |
| 78. | 70115 | Orderly Allowance | ……………. | ……………. |
| 79. | 70116 | Over time | ……………. | ……………. |
| 80. | 70117 | Honorarium | ……………. | ……………. |
| 81. | 70118 | Deputation Allowance | ……………. | ……………. |
| 82. | 70119 | Health Allowance | ……………. | ……………. |
| 83. | 70120 | Monetization of Transport | ……………. | ……………. |
| 84. | 70121 | Rent-Residential Buildings | ……………. | ……………. |
| 85. | 70122 | Group Insurance Premia | ……………. | ……………. |
| 86. | 70123 | Reimbursement of Medical Charges to Pensioners | ……………. | ……………. |
| 87. | 70124 | Financial Assistance to the Families of Employees Who Expired during service | ……………. | ……………. |
| 88. | 70201 | Meeting Expenses | ……………. | ……………. |
| 89. | 70202 | Foreign inspection expenses | ……………. | ……………. |
| 90. | 70203 | Local inspection expenses | ……………. | ……………. |
| 91. | 70204 | P.O.L Charges, Staff Cars, Motor Cycles | ……………. | ……………. |
| 92. | 70205 | Conveyance charges | ……………. | ……………. |
| 93. | 70206 | CNG Charges | ……………. | ……………. |
| 94. | 70207 | Training-Domestic | ……………. | ……………. |
| 95. | 70208 | Traning-Foreign | ……………. | ……………. |
| 96. | 70209 | Travelling Allowance | ……………. | ……………. |
| 97. | 70210 | Rent-Office Buildings | ……………. | ……………. |
| 98. | 70211 | Stationery | ……………. | ……………. |
| 99. | 70212 | Printing & Publications | ……………. | ……………. |
| 100. | 70213 | Conference/Seminar/Work Shops | ……………. | ……………. |
| 101. | 70214 | Newspapers, Periodicals & Books | ……………. | ……………. |
| 102. | 70215 | Uniform & Protective | ……………. | ……………. |
| 103. | 70216 | Adverting and Publicity | ……………. | ……………. |
| 104. | 70217 | Law Charges/Legal Fee | ……………. | ……………. |
| 105. | 70218 | Payment to others for Services Rendered | ……………. | ……………. |
| 106. | 70219 | Purchases of Drugs & Medicine | ……………. | ……………. |
| 107. | 70220 | Other Stores-Computer Stationary | ……………. | ……………. |
| 108. | 70221 | Others | ……………. | ……………. |
| 109. | 70222 | Entertainment & Gifts | ……………. | ……………. |
| 110. | 70223 | Laboratory Chemicals and Glassware-CDL | ……………. | ……………. |
| 111. | 70224 | Laboratory Chemicals and Glassware-NCLB | ……………. | ……………. |
| 112. | 70225 | Laboratory Chemicals and Glassware-Surveillance Lab | ……………. | ……………. |
| 113. | 80101 | Interest on International Loans | ……………. | ……………. |
| 114. | 80102 | Interest on local loans | ……………. | ……………. |
| 115. | 80103 | Bank Charges | ……………. | ……………. |
Annex-C
[see Rule 4 (9) and Rule 19 (9)]
INVESTMENT POLICY
1. OVER VIEW
The purpose of Investment Policy of Drug Regulatory Authority of Pakistan (the Authority) would be to invest its surplus funds and to streamline the procedure for different heads of investment accounts. Investment Committee (IC) would be responsible for making recommendations regarding investments to the Policy Board of the Authority for its approval and thereafter supervise implementation of the decisions.
2. INVESTMENT SCOPE
The policy shall be applicable to all investment/divestments to be made by the Authority with reference to its surplus funds and the account of working capital.
3. INVESTMENT COMMITTEE
The Committee shall comprise of:
1. Chief Executive Officer, Chairman
2. Director Budget & Accounts, Convener
3. Director Costing & Pricing
4. FUNCTIONS OF COMMITTEE
1. To hold regular periodic meetings to review the investment requirements/opportunities.
2. To review legal implications and financial strategies.
3. To ensure timely collection of returns and reinvestments.
4. To maintain record of the committee proceedings.
5. To assess Working Capital requirement of the Authority.
6. To prepare comparative statement of rates of profit offered by different schemes of the National Savings and Government securities such as treasury bills, PIB’s, etc. and make recommendation for long term investments of the surplus fund.
5. WORKING CAPITAL
Working capital limit of the Authority shall be worked out quarterly on the basis of estimated capital and revenue expenditures of the Authority for next three months.
6. INVESTMENT OF SURPLUS FUNDS
All surplus funds shall be worked out quarterly. Total funds available as reduced by the working capital limit shall be considered surplus and invested as follows:–
1. Surplus funds considered to be available for up to one year shall be invested in short term schemes of national savings /Government securities.
2. Surplus funds considered to be available for more than one year shall be invested in short term in schemes of National Savings, Government Securities/PIB’s/treasury bills etc.
Annex-D
[see Rule 18(2)]
LOANS AND ADVANCES
1. Loans and advances.–Subject to availability of the funds for this purpose and subject to such conditions as it may consider proper, the competent authority may grant any one or more of the following categories of loans to an employee or a civil servant or a Director appointed on regular basis having more than 10 years service on his application in writing for the grant of such loan:–
i. Loans for purchase of a motor cycle/scooter / Motor Car (Maximum for two time in entire service).
ii. Loan for purchase of a house / flat / apartment or for house building advance (Maximum for two time in entire service).
2. Loan for purchase of a Motor Car/Motor Cycle/Scooter.–(1) Loan for purchase of motor car/motor cycle/scooter shall be admissible up to the following maximum limits:–
| S.No. | Type of Adv. | Eligibility | Amount of Adv. |
| 1. | Motor Cycle//Scooter Advance | On pay between Rs.75,000/- to Rs. 19,999/- p.m | Rs. 75,000/- |
| 2. | Motor Car Advance. | On pay between Rs.75,000/- to Rs. 19,999/-p.m.a |
Rs.450,000/- |
Provided that loan for purchase of a motor car shall not be admissible to an employee or a civil servant below the level of an officer in BS-17 or equivalent thereof.
(2) Before payment of the amount of loan granted to an employee, the employee shall execute a letter of authority, authorizing the Authority to adjust, at any time, the balance of loan amount together with the mark up and surcharge from the dues, if any, payable to him including the amount payable to him as pension, gratuity or provident fund. He shall also submit two sureties acceptable to the Federal Government or the Authority, as the case may be, guaranteeing the repayment of the loan amount. The vehicle and the documents pertaining to the vehicle shall be examined by the Authority and approved by the Officer authorized in this behalf by the competent authority:
Provided that where the competent authority is satisfied that comprehensive insurance was not possible in respect of the said motor car/motor cycle/scooter, the condition of comprehensive insurance may be waived by it.
(3) At the time of drawing the advance the civil servant or employee would be required to execute an agreement in Form 1 of this Annexure and, on completing the purchase, he should further be required to execute a mortgage bond in Form-2 of this Annexture hypothecating the car to the President or the Authority, as the case may be, as security for the advance. The cost price of the car should be entered in the schedule of specification attached to the mortgage bond.
(4) In the case of advances drawn outside Pakistan a similar agreement and a personal security bond in the prescribed form will be executed at the time of drawing the advance and at the time of purchase respectively.
(5) Mark-up at interest rate allowed on G.P. Fund by the Government from time to time is charged on amount of loan sanctioned. Moreover, if any civil servant is not obtaining interest upon GPF, no mark-up is loan of any kind sanctioned to him. The DRAP may amend its rules accordingly.
(6) In case, an employee is/or becomes entitled to loan for purchase of motor car but has already availed himself of loan for purchase of motor cycle/scooter, then he may avail himself of loan for purchase of motor car only when he adjusts the loan taken for purchase of motor cycle/scooter in full with mark up accrued thereon.
(7) Loan for purchase of Motorcycle/Scooter/Motor Car is recoverable along-with mark-up (if due) in 60 equal monthly installments).
(8) In case of the employee leaving the service of the Authority, for any reason whatsoever, the balance of loan amount outstanding against him shall become payable forthwith.
3. (1) No advance shall exceed 36th months pay of a former superior service Government servant and 36 months pay of a former class IV Government servant.
(2) The amount of loan sanctioned for purchase of a house/flat/apartment shall be paid by the Authority to the employee concerned on production of a duly executed sale agreement and on an undertaking by the employee. The employee shall mortgage the said property with the Authority by an equitable mortgage deed within two months of the payment of loan, failing which he shall refund the full amount of loan with mark up.
(3) Advances for the construction of new houses may be drawn in two equal instalments. The first instalment will be paid on the production of documents establishing proprietary rights in the land and the second instalment will be paid only when the house reaches plinth level. Advances granted for reconstruction, purchase extension or renovation of houses may, however, be drawn in one instalment, provided all other conditions governing the execution and registration of mortgage deed, etc., are duly fulfilled and the Government / the Authority interest is fully secured. The repayment shall commence from the month immediately after the grant of the second instalment or six months after the drawal of the first instalment whichever is earlier. The repayment shall be completed in 10 years in the case of a former superior service Government servant and in 20 years in the case of a former class IV Government servant, provided that the age of the Government servant concerned at the time of repayment of first instalment is below 47 years in the former case and below 38 years in the latter case. In the case of those who would at the time of such repayment be attaining the age of 47 years or 38 years, the case may be, the number of instalments by which recovery is effected, shall be so regulated as to enable the recovery of the total amount advanced, including interest, possible before the date on which the civil servant or employee or Director would be reaching the age of 60 years.
Note 1.–The bills for the drawal of the advances when presented to audit should be accompanied be a certificate in the following form from the Controlling Officer in the case of gazetted officers and the drawing officer in respect of non-gazetted civil servants or employees.
Certified that Mr. ……………… who has been granted a House-Building Advance of Rs ………………… has produced documents stating proprietary right in the land on which the house is proposed to be build *satisfied me that the house has reached the plinth level.
Signature of Controlling / Drawing Officer.
*This portion may be deleted if the bill is drawn for the second instalment.
Note 2.–Utilization certificate shall be furnished in the following manner:–
(i) Where the house building advantage is drawn in instalments,–At the end of six months of each instalment.
(ii) Where full advance is drawn in one instalment.–At the end of one year from the drawal of advance.
(4) Mark-up at interest rate allowed on GP Fund of DRAP employees from time to time. Moreover, if any employee is not obtaining interest upon GPF, no mark-up is required to be paid by him on the amount of loan of any kind sanction to him. The DRAP may amend its rules accordingly.
(5) In case of the employee leaving the service of the Authority for any reason whatsoever, the balance of loan amount outstanding against him together with the amount of mark up shall become payable forthwith and the Authority shall, the agreed rate with monthly rests from the date of his leaving the service of the Authority till its full adjustment / repayment.
4. General Conditions.–Notwithstanding anything to the contrary herein before contained, all loan grants shall be subject to the following conditions:–
(1) Loan under different provisions of this annexure may be granted simultaneously to an employee subject to the condition that the aggregate of the installments for repayment of the said loans and all other deductions under this annexure from the salary of the employee concerned shall not exceed 50% of his pay.
(2) In the case of those employees who become members of the provident fund trust, loans/advances may first be applied for under the regulations of that trust and they may get the loan under this annexure to the extent of the difference, if any, between the advance drawn under the provident fund trust regulations and the maximum limits prescribed in this chapter.
(3) In the case of those employees who are due to retire before the period over which the installments for repayment of loan are spread as per this annexure, the entitlement for such loan shall be reduced to such extent as may be fully repaid before his retirement.
(4) Loans shall be granted subject to allocation of funds by the Policy Board.
(5) Mark up and surcharge shall be calculated on the monthly diminishing balance of the loan and shall be recovered in monthly installments equal to the installments of principal amount, after the full recovery of the loan.
FORM I
[See Para 2 (3) of Annex-D]
FORM OF ‘AGREEMENT TO BE’ EXECUTED AT THE
TIME .OF DRAWING ‘AN ADVANCE FOR THE
PURCHASE OF MOTOR VEHICLE
AN AGREEMENT made _____________ day of _____ one thousand nine hundred and ______ BETWEEN of (hereinafter called the Borrower, which expression shall include his legal representatives and assignees) of the one part and THE PRESIDENT of the other part WHEREAS the Borrower has under the provisions of the General Financial Rules (hereinafter referred to as the said Rule which expression shall include any amendments thereof for the time being in force) applied to the President for a loan of Rs _____________ for the purchases of a motor vehicle and President has agreed to lend the said amount to the Borrower on the terms and conditions hereinafter contained NOW IT IS HEREBY AGREED between the parties hereto that in consideration of the sum of Rs ________________paid by the President to the Borrower (the receipt of which the Borrower hereby acknowledges) the Borrower hereby agress with the President (1) to pay the President the said amount with interest calculated according to the said Rules by monthly deductions from his salary as provided for by the said Rules and hereby authorises the President to make such deductions and (2) within one month from the date of these presents to expend the full amount of the said loan in the purchase of a motor vehicle or if the actual price paid is less than the loan to repay the difference to the President forthwith and (3) to execute a document hypothecating the said motor vehicle to the President as security for the amount lent to the Borrower as aforesaid and interest in the form provided by the said Rules AND IT IS HEREBY LASTLY AGREED AND DECLARED that if the motor vehicle has not been purchased and hypothecated as aforesaid within one month from the date of these presents or if the Borrower within that period becomes insolvent or quits the service of Government or dies the whole amount of the loan and interest accrued thereon shall immediately become due and payable.
IN WITNESS whereof the Borrower has hereunto set his hand the day and year first before written.
Signed by the said
in the presence of
FORM 2
[See Para 2(3) of Annex-D]
THIS INDENTURE made this………….. day of……………..one thousand nine hundred and ……………….BETWEEN ………….(here-in after called “the Borrower” of the one part and the PRESIDENT of the other part,
WHEREAS the Borrower has applied/applied for and has been granted an advance of Rupees …………….. to purchase a Motor vehicle on the terms of Paragraph 255 or 262 of the General Financial Rules of the Federal Government (hereinafter referred to as “the said Rules” which expression shall include any amendment thereof or addition thereto for the time being in force) AND WHEREAS one of the conditions upon which the said advance has been/was granted to the Borrower is was that the Borrower will/would hypothecate the said Motor vehicle to the President as security for the amount lent to the Borrower AND WHEREAS the Borrower has purchased with or
partly with the amount so advanced as aforesaid the Motor
vehicle particulars whereof are set out in the Schedule hereunder written.
NOW THIS INDENTURE WITNESSETH that in pursuance of the said agreement and for the consideration aforesaid the Borrower doth hereby covenant to pay to the President the sum of Rs ………… aforesaid or the balance thereof remaining unpaid at the date of these presents by equal payments of Rs …………….. each on the first day of every month and will pay interest on the sum for the time being remaining due and owing calculated according to the said Rules and the Borrower doth agree that such payments may be recovered by monthly deductions from his salary in the manner provided by the said Rules, and further pursuance of the said agreement the Borrower doth hereby assign and transfer unto the President the Motor vehicle the particulars whereof are set out in the Schedule hereunto written by way of security for the said advance and the interest thereon as required by the said Rules.
And the Borrower doth hereby agree and declare that he has paid in full the purchase price of the said Motor vehicle and that the same is his absolute property and that he has not pledged and so long as any money remain payable to the President in respect of the paid advance will not sell, pledge or part with the property in or possession of the said Motor vehicle. PROVIDED ALWAYS and it is hereby agreed and declared that if any of the said installments of principal or interest shall not be paid or recovered in manner aforesaid within ten days after the same are due or if the Borrower shall die or at any time ceases to be in Government service or if the Borrower shall sell or pledge or part with the property in or possession of the said Motor vehicle or become insolvent or make any composition or arrangement with his creditors or if any person shall take proceedings in execution of any decree or judgment against the Borrower the whole of the said principal sum which shall then be remaining due and unpaid together with interest thereon calculated as aforesaid shall forthwith become payable AND IT IS HEREBY AGREED and declared that the President may on the happening of any of the events hereinbefore mentioned seize and take possession of the said Motor vehicle and either remain in possession thereof without removing the same or else may remove and sell the said Motor vehicle either by public auction or private contract and may out of the sale money retain the balance of the said advance than remaining unpaid and any interest due thereon calculated as aforesaid and all costs, charges, expenses and payment properly incurred or made in maintaining, detending or reausing his agents hereunder and shall pay over the surplus if any, to the Borrower, his executors, administrators or personal representative PROVIDED FURTHER that the aforesaid power of taking possession or sewing of the said Motor vehicle shall not prejudice the right of the President, to use the Borrower or his personal representatives for the said balance remaining due and interest or in the case of the Motor vehicle being sold the amount by which the net sale proceeds fall short of the amount owing AND the Borrower hereby further agrees that so long as any moneys are remaining due and owing to the President be, the Borrower will ensure and keep insured the said Motor vehicle against loss or damage by fire theft, or accident with an Insurance Company to be approved by the Accountant-General, concerned and will produce evidence to the satisfaction of the Accountant-General, that the Motor Insurance Company with whom the said Motor vehicle is insured have received notice that the President is interested in the Policy AND the Borrower hereby further agrees that he will not permit or suffer the said Motor vehicle to be destroyed or injured or to deteriorate in a degree than it would deteriorate by reasonable wear and tear thereof AND further that in the event of any damage or accident happening to the said Motor vehicle the Borrower will forthwith have the same repaired and made good.
IN WITNESS whereof the said ……………… (Borrower) hath hereunto set his hand the day and the year first above written.
THE SCHEDULE
Description of Motor vehicle.
Maker’s Name.
Description.
No. of Cylinders.
Engine Number.
Chassis No. Cost price.
SIGNED by the Borrower,
in the presence of……………
Annex-E
[See Rule 21 (5)]
FLOW CHART SHOWLNG STEPS INVOLVED IN OPENING AND OPERATION OF THE DDO’s A/C AT PROVINCIAL CAPITALS/LABORATORY LEVEL
