financial statements of azad government of the state of jammu ...

FINANCIAL STATEMENTS OF AZAD GOVERNMENT OF THE STATE OF

JAMMU & KASHMIR

FOR THE FINANCIAL YEAR 2016-17

ACCOUNTANT GENERAL AZAD JAMMU AND KASHMIR

Contents

Preface 1

Auditor's Report 3 Statement of Cash Receipts & Payments 5 Statement of Cash Flow 7 Statement of Comparison of Budget and Actual Amounts by Functions 8 Statement of Comparison of Budget and Actual Expenditure by Department 9 Notes to the Financial Statement 10

PREFACE

Financial Statements of Azad Government of the State of Jammu and Kashmir for the year

ended 30th June, 2017 have been prepared by the Accountant General Azad Jammu and

Kashmir under section 5 of the controller General of Accounts (Appointment, Functions and

Powers) Act, 2005 and are the responsibility of Controller General of Accounts (CGA).

In response to the changing nature of Stakeholders requirements for making informed

decisions based on financial information and development in the Public Sector Accounting

Standards, the role of CGA has transformed as now stakeholders expect high quality, reliable

and relevant Financial Reports. The focus of the CGA is not limited to reporting historical

results only, but is now constantly moving towards enhancing public value, by providing the

legislature and executives, through the financial statements an insight of the Government’s

financial performance .

Auditor General prescribed New Accounting Model (NAM), which conforms to international

best practices. It comprises of seven volumes and is based on Modified Cash Basis of

Accounting in which, though cash basis of accounting is followed for recording Receipts and

Expenditure the following additional concepts have also been introduced:-

Commitment Accounting

Physical and Financial Assets Accounting

Liabilities Accounting

Commitment Accounting and Assets recording practices are not yet implemented. These

Financial Statements have been prepared on cash basis of accounting and do not include

accrued receipts and liabilities.

The current year’s Financial Statements have been prepared under NAM and the format of

International Public Sector Accounting Standards (IPSAS) Cash Basis –Financial Reporting

under the Cash Basis of Accounting has been adopted for the preparation of these Financial

Statements.

These Financial Statements focus on Reporting the budgetary activity of the Government for

the Financial Year 2016-17 as laid down in the financial procedures of the Interim Constitution

Act, 1974, which describes the Government funds as AJK Consolidated Fund and Public Account

for which Annual Budget Statement is authorized by AJK Assembly in the form of Budgetary

Grants.

Finally, it is important to emphasise the value of sustained and dedicated efforts towards

excellence in Public Sector Financial Accounting and Reporting. Moving forward, management

and staff of CGA are working hard to overcome the challenges and issues which can limit the

quality, transparency and reliability of Financial Reports. Through excellent financial reporting,

we are committed to support the decision making critical to the State’s fiscal future

Islamabad, Pakistan

Dated: Controller General of Accounts

Auditor-General of Azad Jammu and Kashmir Audit House, Constitution Avenue

Islamabad, Pakistan

Auditor’s Report

I have audited the accompanying Financial Statements of the Government of Azad Jammu and

Kashmir for the year ended June 30th 2017, which comprises Statement of Cash Flows, Statement

of Comparison of Budget and Actual Amounts by Functions, Statement of Comparison of Budget

and Actual Expenditure by Departments for the year then ended and a summary of significant

accounting policies and other explanatory notes to the Financial Statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and proper presentation of these Financial

Statements in accordance with the applicable financial reporting framework.

Auditor’s Responsibility

My responsibility is to express an opinion on these Financial Statements based on my audit in

accordance with the requirements of Section 50-A of the Azad Jammu and Kashmir Interim

Constitution Act, 1974 read with Section 8 of the Auditor-General’s (Functions, Powers and

Terms and Conditions of Service) Act, 2005. I conducted my audit in accordance with the

International Standards for Supreme Audit Institutions (ISSAIs) and other guidance issued by my

department. The standards require that I perform procedures including ‘risk assessment’ to

obtain reasonable assurance whether the Financial Statements are free of material

misstatement. The audit process includes examining, on a test basis, evidence supporting the

amount and disclosures in the Financial Statements. It also includes assessing the accounting

policies issued, as well as evaluating the overall Financial Statements presentation. I believe that

my audit provides a reasonable basis for my opinion.

In my Opinion;

(a) These Financial Statements present, in all material respects, the financial position of the

Government of Azad Jammu and Kashmir as at June 30th 2017, and results of its

operations, its cash flows and its expenditure and receipts, by appropriation by the year

ended in accordance with the stated accounting policies of the Government of Azad

Jammu and Kashmir.

(b) The sums expended have been applied, in all material respects, for the purposes

authorized by the Azad Jammu & Kashmir Legislative Assembly and have, in all material

respects, been booked to the relevant grants and appropriations.

Other Reports

Reports covering significant aspects of the financial governance or economical and effective

unitization of public resources are submitted separately to the President of Azad Jammu and

Kashmir under Section 50-A of the Azad Jammu and Kashmir Interim Constitution Act, 1974.

Note

AJ & K CONSOLIDATED FUND

RECEIPTS

Taxation- Transfers from AJ & K Council 8 11,451 - 10,622 -

Taxation- AJ & K Government's own collection 9 4,548 - 12,616 - -

Non-Tax Revenue and Other ReceiptsGeneral Administration 10 682 - 571 - Economic Services 11 507 - 716 - Development Surcharge and Royalties 12 795 - 1,076 - Others 13 9,516 - 242 -

11,500 - 2,604 -

Grant in Aid 14 31,760 - 31,892 -

BorrowingsForeign Debt 15 656 368 - Domestic Debt 16 23,528 - 23,024 -

24,184 - 23,391 -

Capital ReceiptsRecovery of Loans and Advances 17 196 - 299 -

196 - 299 -

TOTAL RECEIPTS 83,638 - 81,426 -

AZAD GOVERNMENT OF THE STATE OF JAMMU AND KASHMIRStatement of Cash Receipts and Payments

2017Rupees

in Million

Receipt / Payment controlled by the

Government

Receipt / Payment by Third Parties

2016Rupees

in Million


Government


For The Year Ended 30th June, 2017

5

Note

PAYMENTS

OperationsSalaries and Employee Benefits 18 51,709 - 41,891 - Operating Expenses 19.1 11,473 - 11,961 - Repair & Maintenance 19.2 983 955

64,164 - 54,808 -

-

Expenditure onPhysical Assets 20 985 - 4,122 - Civil Works 21 13,257 - 11,103 -

14,242 - 15,225 -

Debt and Interest PaymentsPrincipal Repayment of Debt 22 12,076 - 12,023 -

Loans to others 705 - -

12,781 12,023

TOTAL PAYMENTS 91,187 - 82,056 -

(7,549) - (630) -

NET RECEIPT OF PUBLIC ACCOUNT 23 3,600 - 2,824 -

INCREASE / (DECREASE) IN CASH (3,949) - 2,194 -

CASH AT THE BEGINNING OF THE YEAR (2,147) - (4,341) -

INCREASE / (DECREASE) IN CASH (3,949) - 2,194 -

CASH AT THE END OF THE YEAR 24 (6,096) - (2,147) -

The annexed notes 1 to 28 form an integral part of these Financial Statements.

_________________________________________Accountant General Azad Jammu and Kashmir

Statements of Cash Receipts and Payments

2016Rupees

in Million

NET PAYMENT OF A J&K GOVERNMENT CONSOLIDATED FUND

2017Rupees

in Million Receipt / Payment controlled by the

Government



Government



6

2017 2016Note Rupees Rupees

in Million in Million

Taxation- Transfers from AJ&K Council 8 11,451 10,622 Taxation- AJ&K Government's own collection 9 4,548 12,616

Non-Tax Revenue and Other Receipts10,11, 12,13 11,500 2,604

Grants in Aid - Receipts 14 31,760 31,892 Operations- Payments (64,164) (54,808)

Cash from Operating Activities (4,906) 2,928

Recovery of Loans and Advances 17 196 299 Expenditure on Physical Assets 20 (985) (4,122) Expenditure on Civil Works 21 (13,257) (11,103) Cash used in Investing Activities (14,046) (14,926)

Receipt of Foreign Debt 15 656 368 Receipt of Domestic Debt 16 23,528 23,024 Principal Repayment of Debt 22 (12,781) (12,023) Net Receipt of Public Account 23 3,600 2,824 Cash from Financing Activities 15,002 14,192

DECREASE IN CASH AND CASH EQUIVALENTS (3,949) 2,194

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR (2,147) (4,341)

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 24 (6,096) (2,147)


_________________________________________ Accountant General Azad Jammu and Kashmir

CASH FLOW FROM OPERATING ACTIVITIES

CASH FLOW FROM INVESTING ACTIVITIES

CASH FLOW FROM FINANCING ACTIVITIES

AZAD GOVERNMENT OF THE STATE OF JAMMU AND KASHMIRStatement of Cash Flows


7

Original Revised Original Revised

RevenueTaxation 18,750 18,550 15,742 29,737 24,345 23,283 Non-Taxation 42,750 44,950 42,965 26,763 35,270 34,453 Total revenue receipts 61,500 63,500 58,707 56,500 59,615 57,735

CapitalDomestic Debt 24,750 24,280 24,275 23,250 23,274 23,323 Foreign Debt 500 500 656 500 500 368 Total capital receipts 25,250 24,780 24,931 23,750 23,774 23,690

- - - - - -

86,750 88,280 83,638 80,250 83,389 81,425

RevenueGeneral Public Service 23,419 25,707 26,945 22,130 23,645 23,604 Defence 145 171 167 138 138 135 Public Order and Safety Affairs 5,294 6,014 6,074 5,071 5,178 5,087 Economic Affairs 13,361 12,267 12,369 13,540 16,925 16,705 Environment Protection 10 10 11 9 10 10 Housing and Community Amenities 1,722 1,685 1,698 394 429 405 Health Affairs and Services 5,669 5,713 5,973 5,226 4,846 4,636 Recreation, Culture and Religion 288 300 295 216 216 181 Education Affairs and Services 19,898 20,819 21,485 18,548 18,342 18,309 Social Protection 3,694 2,841 2,913 3,228 1,910 1,882 Total Revenue Payments 73,500 75,528 77,930 68,500 71,639 70,953

CapitalGeneral Public Service 795 1,042 1,738 1,045 1,003 697 Economic Affairs 2,431 2,269 2,260 2,291 2,312 2,282 Environment Protection 50 28 27 50 30 29 Housing and Community Amenities 6,809 7,438 7,434 6,489 6,685 6,673 Health Affairs and Services 410 638 634 340 404 399 Recreation, Culture and Religion 155 163 163 140 140 140 Education Affairs and Services 1,270 943 973 1,105 894 852 Social Protection 80 30 28 40 32 30 Total capital payments 12,000 12,551 13,257 11,500 11,500 11,103

85,500 88,079 91,187 80,000 83,139 82,056



AZAD GOVERNMENT OF THE STATE OF JAMMU AND KASHMIRStatement of Comparison of Budget and Actual Amounts by Function

2017 (Rupees in Million )Budgeted Amounts Actual

Amounts

TOTAL PAYMENTS

RECEIPTS

TOTAL RECEIPTS

PAYMENTS

Budgeted Amounts ActualAmounts

2016 (Rupees in Million )For The Year Ended 30th June, 2017

8

Original Revised Original Revised

Agriculture, Livestock & Cooperation 1,163 1,276 1,280 1,123 1,126 1,112 Board of Revenue 706 931 931 628 674 663 Education 19,898 20,819 21,485 18,548 18,342 18,309 Environment, Forestry, Wild life 896 923 925 840 853 846 Finance 11,742 12,651 13,966 9,529 9,716 9,788 Food 3,179 1,451 1,349 3,171 5,300 5,112 Health 5,669 5,713 5,973 5,226 4,846 4,636 Home and Tribal Affairs 4,334 5,004 5,056 4,185 4,254 4,174 Industries 228 255 260 217 229 217 Information 97 102 102 91 93 90 Law 1,105 1,182 1,185 1,024 1,061 1,048 Local Governance 421 473 475 394 429 405 Population, Planning and Welfare Department 226 245 255 213 209 209 Administration and Establishment 1,700 1,953 1,938 2,141 2,081 1,955 Works and Services 3,157 3,234 3,335 2,423 3,400 3,468 Zakat and Ushr 129 133 129 126 124 120 Sports, Culture, Archeology & Museum 62 64 65 89 92 60 Relief Rehabilitation and Settlement 738 741 740 756 758 755 Energy and Power 6,050 6,350 6,453 5,775 6,028 5,960 Ways and means 12,000 12,028 12,028 12,000 12,024 12,024

73,500 75,528 77,930 68,499 71,639 70,953

Development Expenditure 12,000 12,551 13,257 11,500 11,500 11,103

TOTAL 85,500 88,079 91,187 79,999 83,139 82,056



ActualAmounts

2016 Rupees in Million

Budgeted Amounts

AZAD GOVERNMENT OF THE STATE OF JAMMU AND KASHMIRStatement of Comparison of Budget and Actual Expenditure by Department

For the Year Ended 30th June, 2017

2017 Rupees in Million

Budgeted Amounts ActualAmounts

DEPARTMENT

9

1 REPORTING ENTITY

a)

b)

1. Public Works Department-Works and Services, Irrigation & Public Health Engineering

2. Forest/Wildlife Department3 Electricity Department

2 BASIS OF CONSOLIDATION

3 STATEMENT OF COMPLIANCE

4 ACCOUNTING CONVENTION AND BASIS OF CONSOLIDATION

5 REPORTING AND BUDGET PERIOD

6 REPORTING CURRENCY

Government Accounting Entities; for which the Accountant General Azad Jammu & Kashmir has theprimary responsibility for accounting and reporting.

AZAD GOVERNMENT OF THE STATE OF JAMMU AND KASHMIRNotes to the Financial Statement

Azad Government - Azad Jammu & Kashmir (the Government) conducts its operations under the Rules ofBusiness 1985. These rules were made pursuant to Section 58 of the Interim Constitution Act 1974 of theAzad Jammu & Kashmir (the Constitution) and envisages Azad Government as comprising of departmentsand their attached departments. Financial procedures describes the Government Funds as ConsolidatedFund and Public Account of the Azad Jammu & Kashmir for which Annual Budget Statement is authorized bythe Azad jammu & Kashmir Assembly in the form of budgetary grants. These Financial Statements focuson reporting the budgetary activity of the Government for the financial year 2016-17.

Section 50-A of the Constitution confers the powers of defining the form, principles and methods of theaccounts of the Azad Jammu & Kashmir to the Auditor General , with the approval of the President. NewAccounting Model was prescribed by the Auditor General in 2001 which describes Government as anaccounting and reporting entity comprising of;

Self Accounting Entities; for which the Principal Accounting Officer has the primary responsibility foraccounting and reporting. The Self Accounting Entities are as under:-

The Financial Statements have been prepared by consolidating the accounts of all Government entities.

These Financial Statements have been prepared in accordance with the New Accounting Model (NAM) whichcomprises of seven volumes. In 2001, Auditor General prescribed NAM. Implementation of NAM is anongoing process. Commitment Accounting, asset and liability accounting practices have not yet beenimplemented.

These Financial Statements have been prepared under the Cash Basis of Accounting which recognizestransactions and events only when cash is received or paid by the entity. Assets and Liabilities in thedisclosed notes based on a historical cost.

These Financial Statements have been prepared as per the requirements of NAM that supports bestinternational practices. The statement of receipt and payments, statements of comparison of budget andactual amounts by function, statements of comparison of budget and actual expenditure by department andnotes forming parts thereof have been prepared on the format of Cash Basis IPSAS - Financial Reportingunder the Cash Basis of Accounting. The statement of cash flows, as required by IPSAS 2, has also beenpresented, as prescribed by Cash Basis IPSAS.

The Financial Statements for the financial year 2016-2017 have been prepared and presented in order tomake a fair presentation of all the relevant financial information without making any change in thefundamentals applied and all policies have been applied on a basis consistent with the previous year.

The reporting and budget period of these Financial Statements is the financial year 2016-2017( from 1 July, 2016 to 30th June, 2017).

The reporting currency of these Financial Statements is Pak Rupee, which is also the Azad Jammu &Kashmir Government's functional and presentation currency.


30th

10

7 SIGNIFICANT ACCOUNTING POLICIES

7.1. Revenue recognition

7.2. Recognition of expenditure

a)

b)

c)

d)

e)

7.3. Foreign currency

7.4. Employee benefits

a) General Provident Fund

b) Pension

c) Encashment of leave

7.5. Investments

Payments made through cheque

Revenue is recognized on the date of receipt of money by the bank or clearance of cheque. Revenue isrecognized on a gross basis and any related costs are recorded separately. Receipts representing recovery ofany previous overpayment are adjusted against relevant expenditure, if it occurs in the same financial year.

Expenditure is recognized on the date when payment is made or cheque is issued. Financial year to which thepayments pertain is determined by the date on which a cheque or payment advice is issued. Policies forrecognition of expenditure are as follows;

It is compulsory for employee to subscribe to the General Provident Fund from the date of appointmentand monthly subscription is by way of deduction from monthly payroll at a uniform rate of subscription, asadvised by the Government for a financial year as laid down in the Provident Fund Act and GeneralProvident Fund Rules.GP Fund in AJ&K is non Interest bearing.

Expenditure is recognized on the date the cheque is issued.

Inter government transfers

Expenditure is recognized on the date the transfer is made by the transferor.

Payments directly in bank accounts

In case of direct payments into bank account, expenditure is recognized on the date the payment advice isissued to the bank.

Direct payments by State Bank of Pakistan (SBP)

In case of repayment of loans and other direct payments by the SBP, expenditure is recognized on thedate State Bank of Pakistan advises the relevant accounting office.

Imprest payments

Expenditure is recognized when the required claim vouchers are submitted and imprest account isreimbursed.

Transactions in foreign currencies are recorded in the books at the rates of exchange prevailing on the date oftransaction. Exchange differences arising on settlement of these transactions are recognized in the statementof cash receipts and payments, but are not being disclosed separately.

The government has following plans for its employees:

It is the entitlement of Government employees to a stream of payments after they retire from service. Noliability for pension is recognized in the Financial Statements and pension payments made during the yearare recorded as expenditure.

This represents liability arising from entitlements to the various forms of leave earned by Governmentemployees. Provision is made and the expenditure is recognized on the basis of payments made duringthe year.

All investments made by the Government are initially measured at cost being the fair value of considerationgiven plus transaction costs that are directly attributable to their acquisition.

Subsequent to initial recognition, investments are carried forward at historical cost. Any dividends receivedagainst investments are recognized when received in the AJ & K Governmnet Consolidated Fund.

11

7.6. Cash and cash equivalents

7.7. Liability

7.8. Public Debt

7.9. Assets

7.10. Loan and advances

For the purpose of Cash Flow Statement, cash and cash equivalents comprise cash with State Bank ofPakistan lying in the AJ&K Government Account.

Liabilities are future sacrifices of economic benefits that the government is presently obliged to make as aresult of the past transaction. All liabilities are recorded at historical cash value.

Public Debt comprise cash inflows from banks, similar lending agencies, commercial institutions and amountsowing in respect of non-cash assistance provided by third parties and foreign borrowings. All debts raised areclassified as either floating or permanent debts depending on the nature of the transaction.

Assets are future economic benefits controlled by the Government as a result of past transactions or otherpast events.

Loans and Advances include loans and advances due from autonomous bodies, financial and non-financialinstitutions, to Government servants for house building, purchase of conveyances and other loans. Loans toGovernment servants are Non-interest bearing.

12

2017 2016

Rupees Rupeesin Million in Million

8 TAXATION - TRANSFER FROM AJ & K COUNCIL

Indirect TaxesSales tax 2,549 2,099

80%Share from Azad Jmmu &Kashmir Council 11,451 10,622

Federal excise 829 680

14,829 13,401

14,829 13,401

9 TAXATION - A J & K GOVERNMENT'S OWN COLLECTION

Direct TaxesIncom Tax-Agriculture

Property Tax 55 45

Land Revenue 42 162

Tax on Profession, Trade and Callings 7 7

Capital Value Tax on Immoveable Property104 214

104 214 Indirect Taxes

Receipts Under Motor Vehicles Act 111 113 Stamp Duties 178 148 Provincial Excise 37 66

Others Indirect Taxes 740 9,296

1,065 9,623

1,065 9,623

10 GENERAL ADMINISTRATION RECEIPTS

Fiscal Administration

Community Services 261 234

Social Services 207 196

Economic Regulations 10 15

Law and Order 195 119

Organs of State 9 7

682 571

682 571

11 ECONOMIC SERVICES RECEIPTS

Food and Agriculture 179 409 Fisheries and Animal Husbandry 81 76 Forest 166 170 Others 81 60

507 716

507 716

Notes

13

2017 2016


12 DEVELOPMENT SURCHARGE AND ROYALTIES

Water Usage Charges Mangla 795 1,076 795 1,076

12.1

13 OTHER RECEIPTS

Unclaimed depositsMiscellaneous Receipts 9,516 242

9,516 242

14 GRANTS in AID

14.1 Controlled by Govt:

Non- Development Grants Revenue Deficite 11,260 15,142 Non-Development Grants Fixed Grant in Aid 20,500 16,750

31,760 31,892

31,760 31,892

14.2 Third Party Receipts

Development Grants -

- -

15 FOREIGN DEBT - RECEIPTS


Federal Government/IDA 656 368

656 368

15.2 Third Party Receipts

Foreign Lenders -

- -

16 DOMESTIC DEBT - RECEIPTS

Permanent Debt Development Loan 11,500 11,000 Permanent Debt Ways and Means Advance 12,028 12,024 Loan From National Bank Of Pakistan - -

23,528 23,024

23,528 23,024

0

17 RECOVERY OF LOANS AND ADVANCES

Government Servants. House Building Advance 196 299 196 299

Notes

The water usage charges on Mangla Dam received from Government of Pakistan under the water usage Surcharge Ordinance. In pursuance of the siad ordinanace, the Federal Government has to fix the amount of water usage for financial year and payments are made in instalments to Azad Jammu & Kashmir Government through State Bank of Pakistan.

This represents borrowings from Federal Government. Repayment period and interest rate for these borrowings is determined in accordance with terms and conditions of each loan.

14

2017 2016


18 SALARIES AND EMPLOYEE BENEFITS

Pay of Officers 8,619 6,191 Pay of Other Staff 15,270 11,362 Allowances 16,667 16,236 Retirement Benefits 11,152 8,101

51,709 41,891

51,709 41,891

19 OPERATING EXPENSES

19.1 Controlled by Govt:Communication 34 32 Entertainments and Gifts 1,957 1,650 General Operating Expenses 9,482 10,280

11,473 11,961

11,473 11,961 19.2 Repair & Maintenance

Repair & Maintenance 983 955 983 955

19.3 Third Party Payments

General Operating Expenses - - -

20 PHYSICAL ASSETS

Purchase of Other Assets 985 4,122 985 4,122

21 CIVIL WORKS


Other Works Capital Expenditure 13,257 11,103

13,257 11,103

21.2 Third Party Payments

Other Works - -

14,242 15,225

22 REPAYMENT OF DEBTPrincipal Re-Payment Domestic Debt 2,691 2,672Foreign Debt 799 754

3,490 3,426

3,490 3,426

22.1 Debt Services Re-PaymentDomestic 8,421 8,461 Foreign 165 136

8,586 8,597

12,781 12,023

22.2 Loan & Advances

Other Loans 705 -

705 -

Notes

15

2017 2016

Rupees Rupees

in Million in Million

23 NET RECEIPT / (PAYMENT) OF PUBLIC ACCOUNT

Receipts

Trust & other Public Accounts 29,967 29,562 Special Deposits 3,835 2,514 State Provident Fund 1,098 933

34,900 33,009 Payments

Trust & other Public Accounts 28,713 27,707 Special Deposits 2,076 2,082 State Provident Fund 512 396

31,301 30,185

3,600 2,824

23.1

24 CASH AND BANK 2,158

AJ & K Government Balance (6,096) (2,147)

(6,096) (2,147)

24.1 AJ & K Government's Balance

Public Account Balance 3,600 2,824 Consolidated Fund Balance (7,549) (630)

(6,096) (2,147)

25 ASSETS AND LIABILITIES

Assets 3,000 Long Term Assets 137,329 124,073 Investments 1,000 1,000 Loans and Advances 1,371 863 Current Assets 4 28 Cash and Bank (6,096) (2,147)

133,608 123,816

Liabilities and equity

Public Debt 229,902 209,208 Special Deposits and Trust Accounts 14,924 11,935 Deferred Liabilities 5,607 5,022 Revenue Account Balance (116,825) (102,348)

133,608 123,816

25.1

Notes

The public Account consists of those moneys received by the Government for which it has a fiduciary duty, but not at liberty to appropriate for the general services of the Government, unless provided under an (Act of AJ&K Legislative Assembly or rules made by President). The balances in the Public Account are carried forward at year end, to be used for the specific purpose for which they are established.

These Financial Statements have been prepared under the cash basis of accounting, the information of assets and liability have been presented which are not mandatory disclosures as per IPSAS Cash Basis.

16

2017 2016


26 PUBLIC DEBT

Domestic Debt

Government SecuritiesOpening Balance 204,165 184,632 Add: Debt Receipts 23,528 23,024 Less: Principal Repayments of Debt (2,691) (3,491)Closing Balance 225,002 204,165

Foreign DebtOpening Balance 5,043 5,430 Add: Debt Receipts 656 368 Less: Principal Repayments of Debt (799) (754)

Closing Balance 4,900 5,043

229,902 209,208

26.1

27 AUTHORIZATION FOR ISSUE

28 GENERAL

28.1 Level of Precision

28.2 Corresponding Figures

_________________________________________

Accountant General Azad Jammu and Kashmir

The amount of foreign debt is recorded in Pak Rupees at the rate of exchange prevailing on the date of transaction, which is the historical cash value. The foreign debt has not been revalued at the year end in accordance with Government policy stated in note 7.7, nor any foreign debt revaluation exchange differences have been recognized in the Financial Statement except for principal repayment of foreign debt.

Under section 8 of the Auditor General's (Functions, Powers and Terms and Conditions of Service) Act, 2005, read with Section 50-A of the Azad Jammu and Kashmir Interim Constitution Act,1974, the Auditor General submits the certified Financial Statements of the Government of Azad Jammu & Kashmir together with the audit reports on these Financial Statements to the Presidant of the Azad Jammu &Kashmir who shall cause them to be laid before the Assembly. These Financial Statements have been authorized for issue on -------------.

Figures in these consolidated Financial Statements have been rounded off to the nearest million of rupees, unless otherwise stated.

Corresponding figures, wherever necessary, have been rearranged and reclassified for the purposes of comparison.

Notes

17

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