Audit Uncovers Major Financial Irregularities in Mardan Social Welfare Department
An official audit has exposed significant financial irregularities exceeding Rs10 million within the District Social Welfare Department in Mardan, highlighting serious concerns over weak internal controls and financial mismanagement. The findings, detailed in the audit report for the fiscal year 2021–22, point to multiple instances of improper fund handling that have raised alarms about transparency and accountability in public spending.
Irregular Expenditures and Lack of Documentation
According to the audit report, an amount of Rs4.46 million was recorded as expenditure under the category "others and cost of stores". However, auditors discovered no evidence that goods were actually procured or delivered to Dastakari centres in exchange for these payments. The transactions were conducted in cash and lacked essential supporting documentation, including stock registers, indents, and demand notes, which constitutes a clear violation of established financial procedures.
Fraudulent Transactions in Katlang School
In a separate and equally troubling finding, auditors identified fraudulent transactions totaling Rs5.739 million linked to the accounts of a government school for hearing- and speech-impaired children located in Katlang. The report revealed that funds were withdrawn from the treasury based on forged invoices, signatures, and official seals, indicating a deliberate attempt to misappropriate public money.
Causes and Recommendations for Improvement
The audit attributed these irregularities to a combination of weak internal controls, inadequate monitoring, and administrative lapses within the department. These deficiencies created an environment conducive to financial malpractice, allowing such mismanagement to occur unchecked. To address these issues, the audit has recommended strict accountability measures and corrective actions to ensure transparency and the proper utilization of public funds. Key recommendations include:
- Strengthening internal audit mechanisms to prevent future irregularities.
- Implementing robust documentation and verification processes for all transactions.
- Enhancing oversight and training for staff to improve financial management practices.
The findings underscore the urgent need for reforms in the District Social Welfare Department to safeguard public resources and restore trust in its operations.
