ISLAMABAD: The National School of Public Policy (NSPP) kept Rs22.35 million in public funds invested in Defence Savings Certificates for around 10 years instead of depositing the money in the government treasury, while an audit has raised an objection of Rs46.97 million and demanded recovery of the remaining amount along with the profit earned.
The audit report says the NSPP invested Rs22.35 million from its government budget in Defence Savings Certificates on March 31, 2014, and September 11, 2015. The money was held in the institution’s Assignment Account and was meant to be treated as public money.
Under the Cash Management and Treasury Single Account Rules, 2020, public money held in accounts must be transferred to the government’s Treasury Single Account. However, the audit found that the NSPP did not deposit the full amount in the government treasury when required.
The institution deposited only Rs11.4 million on November 20, 2024, after one of the savings certificates had expired. The audit said the remaining Rs10.95 million was still required to be deposited.
The audit also raised questions about the profit earned from the investment. It estimated that the profit on the Rs22.35 million investment should be at least Rs21.24 million. In addition, it calculated an estimated profit of around Rs14.78 million on the remaining Rs10.95 million.
The audit therefore recommended that the NSPP deposit the outstanding Rs10.95 million along with the estimated profit of Rs14.78 million in the government treasury without further delay.
The report says NSPP management agreed with the audit’s position during a meeting held before the report was finalised. However, the institution did not submit a written reply. The audit also noted that the money had been invested without proper authorisation and that the profit earned from public funds should also have gone into the government treasury.
The total audit objection against the institution stands at Rs46.972 million. The report classifies the entire amount under recovery, meaning the audit department has recommended that the money be recovered and deposited in the government treasury.
The report also raises questions about the institution’s record of dealing with earlier audit objections. According to its compliance table, 23 audit paragraphs from five audit years remain under non compliance or partial compliance, with no compliance recorded.
These include three audit paragraphs from 2011 to 12, one from 2013 to 14, two from 2015 to 16, two from 2018 to 19 and 15 from 2021 to 22. The table records zero compliance against all 23 paragraphs.
The audit figures put the institution’s handling of public money and its response to repeated audit observations under scrutiny. However, the report does not establish that any individual committed fraud or stole the money. It records an audit objection, a recovery recommendation and the institution’s agreement with the audit position.
The NSPP was established under the National School of Public Policy Ordinance, 2002, as Pakistan’s main institution for training and professional development of civil servants. It oversees training bodies including the National Management College, Executive Development Institute, National Institute of Public Administration and Pakistan Administrative Staff College.
The institution provides courses for government officers at different stages of their careers, including the National Management Course, Senior Management Course and Mid Career Management Course.
The audit report also shows that the NSPP received a final budget of Rs3,067.514 million for the financial year 2024 to 25 and spent the entire amount. The original grant was Rs3,368.514 million, while Rs301 million was surrendered. The final budget and actual spending were both recorded at Rs3,067.514 million, with no saving or excess expenditure.
The report further records that four of the institution’s seven formations were audited for the financial year 2022 to 23, with audited expenditure of Rs12,910.749 million.
The key concern raised by the audit is that public funds were kept invested outside the government treasury for years, while the required amount and profit had not been fully deposited. The audit has called for recovery of the outstanding money and its profit.
