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PIPFA Final Level study materials
PIPFA Final Level study resources

PIPFA Final Level: Public Sector Syllabus: PFM, Government Accounting and Public Audit

PIPFA Final Level · Work through your exam, one topic at a time.

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Public Sector Syllabus: PFM, Government Accounting and Public Audit

Public Sector Syllabus

The Public Sector Syllabus tests public financial management, government accounting, public audit and accountability in Pakistan’s constitutional and legal framework. Questions are usually scenario-based: a grant is overspent, a procurement is split, an audit para is issued, or a department reports on a cash basis while the budget is commitment-based. You must identify the controlling rule, the accounting treatment and the accountability consequence.

Core rules and concepts

  • Constitutional audit mandate: Articles 168–171 provide for the Auditor General of Pakistan; the AGP audits public accounts and reports to the President or Governor for laying before the legislature.
  • Public Financial Management Act 2019: budget authorisation, releases, re-appropriation, surrender of savings and responsibility for financial propriety.
  • Budgeting: an Appropriation Act authorises expenditure by grant; expenditure cannot exceed the grant. Commitments consume available budget even before payment.
  • Government accounting: cash basis is common; IPSAS Cash Basis aids comparability. Accrual reforms require recognition of payables, receivables and assets.
  • Procurement: PPRA Ordinance 2002 and PPRA Rules 2004 require open competitive bidding, subject to limited exceptions; splitting to avoid thresholds is irregular.
  • Public audit: ISSAIs guide regularity, compliance and performance audit; findings need criteria, condition, cause and effect.

Worked example

A grant is Rs 100 million. The finance department releases Rs 80 million. The department spends Rs 75 million and has signed commitments of Rs 10 million. Available budget = 80 − 75 − 10 = −5 million. Although cash spent is only 75, the entity has overcommitted by Rs 5 million. It must not create further commitments; it should seek re-appropriation or an additional release within the authorised grant, and disclose the commitment.

Traps

  • Treating a budget release as expenditure.
  • Ignoring commitments when testing budget control.
  • Calling every audit observation a fraud without evidence.
  • Applying private-sector materiality without considering public accountability.
  • Missing that re-appropriation cannot exceed the total grant without new authorisation.