PIFRA

Introduction
The Govt. of Pakistan took an initiative to
address the shortcomings of the financial
reporting system and to ensure good
governance.
The IMF carried out a survey in

Government Accounting in early 1990s,

followed by a diagnostic study sponsored
by the World Bank.
As a result, the Project to Improve

Financial Reporting and Auditing (PIFRA)

was introduced by the Auditor General of
Pakistan in 1994.
 Main Objectives
 The main objective of this project is to
computerize the whole accounting and
auditing system.
 Improve public sector accounting and
financial systems
 Provide basis for enhancing public sector
accountability
 Support improved institutional capacity for
economic policy-making and management
country.
 There are three main things which a
common govt. employee comes to an
accounts office for, viz. salary,
general provident fund and pension.
Our experience shows that in the old
system a common man had a series
of unlimited problems and hurdles to
face in order to get his financial
claim. but with help of PIFRA it is
easy to fulfill the financial claim.
 PIFRA Components
Government Accounting and Financial
Reporting:

Development of accounting standards,

reporting systems and financial procedures
conforming to international accepted
principles and computer based financial
system based on complacent to
internationally recognized standards.
Government Auditing:
Focus on audit systems improvement and systems
development including

Audit Standards and Techniques :

1. Prepare guidelines for the introduction of
international auditing standards.
2. Introduce modern auditing techniques and concepts.

3. Review PAD’s audit policies, processes and

procedures, output, workload, efficiency and quality
assurance for the audit functions.
4. Advise on methodology to enhance PAD’s
communication with stakeholders, for internal audit
of PAD’s systems under development.
Administrative tool:
Provision of hardware and audit software for audit
planning, sampling and documentation as well as for
audit of automated accounting systems.

Capacity Development :
consultancy to support revised human resource
management procedures through international
training in a modern financial system environment
and through arranging attachments with other
Supreme Audit Institutions.

Use of Private Sector Firms:

Assistance with developing modality for utilizing
private sector firms and finance for private audit
firm’s fees.
Human Resource Management
1. Involves organization and systems
development.
2. To reflects needs for increased
professionalism and specialization.
3. Consultant Assistance.

4. Managing the process for change..

5. Preparation of job descriptions and

performance standards.
6. Installing an MIS system for HRM
planning and monitoring.
 Implementation
 There are number of functionalities
available in this ERP, which are
highly flexible in nature and can be
modified according to the
requirements of the particular
organization. Keeping in view the
requirements at the country level,
the Govt. of Pakistan has purchased
three most essential modules of SAP.
Basis (System Administration) Module
This module covers the overall system
administration. The user authorization, the
working of the main servers, the roles of
particular users, the connectivity between all
the sites in the country and various server-
related issues are covered in this module.
Financial Module
This module covers the financial side of the
system. The generation of various financial
reports, like monthly, quarterly and annual
accounts, etc.; the budget preparation and
maintenance and expenditure booking into the
system, project & commitment accounting are
some of the tasks which are performed using
this module.
Human Resource (HR) Module
In HR module, the update record of
the employee, the updated GP Fund
account, its calculation and payment;
the pension/commutation calculation
and payment; and salaries of the
govt. employees are operated
through the system.
 Targets Achieved
 In order to achieve the targets of PIFRA, New
Accounting Model (NAM) was introduced to
replace the old accounting practices.

The Salient features of NAM are:

 Integration of Budget & Expenditure Flow
 Accurate and Timely Reporting
 Cash Forecasting
 International Credibility
 Assets will be recorded
 Commitments will be Recorded
 Future prospects
The idea behind computerizing the
whole system is to generate timely
accurate and reliable financial
statements
 to monitor fiscal deficit;

 to forecast flow of cash;

 to manage public debt and to

achieve effective financial controls.