| 1 |
In December 2000, the New Accounting Model (NAM), which includes the New Chart of Accounts (CoA) was prescribed by the Auditor General of Pakistan, with the approval of the President of Pakistan, under Article 170 of the Constitution of the Islamic Republic of Pakistan. This had become necessary because the previous Chart of Classification (CoC) notified in 1981 had become inadequate.
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| 2 |
The new CoA provides ready information about entities, programs, projects and geographical distribution of resources etc. With the introduction of a uniform new CoA, it is expected that timely, accurate, comprehensive and reliable information will be available to the decision makers and for enforcing effective accountability and better financial governance. Increased financial reporting requirements of the NAM will also be met through timely and reliable information for better:
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Budgetary Management |
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Financial Control |
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Cash Forecasting and Trend Analysis |
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Fiscal Administration and Debt Management |
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| 3 |
The new CoA is expected to also provide a uniform basis for classification of Receipts, Expenditure, Assets, Liabilities and Equity (Residual Value) through elements such as:
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Entity |
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Function |
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Object |
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Fund |
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Project |
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| 4 |
By providing accurate and timely information to the finance managers at the Federal, Provincial and District levels the CoA will facilitate and accelerate the complete computerization of the entire accounting system.
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5 |
The undersigned will greatly appreciate if any error or omission that may come to notice, or suggestions for further improvement are sent to Deputy Auditor General (APR&SD)
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