NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT

SADAR PAHARGANJ ZONE

No.________/IAD/SPZ/2015/_____ Dated:________________

Please find enclosed herewith the audit inspection report on the physical verification
of Stores and audit of accounts maintained at Store J.E.(Store),C-90 B, Model Basti,
S.P.Zone for the period 13.05.2014 to 11.05.2015. Para-wise replies/comments may be sent
to the office of the undersigned within a period of four weeks.

INTERNAL AUDIT OFFICER

Z.A.P/S.P.ZONE

Sh.Ravi Gupta, JE (W)

C-90 B, Model Basti,
Through EE-(M)-I, S. P. Zone.

Copy to:-

1. EE-(M)-I, S. P. Zone for ensuring expeditious replies along with his comments.
2. D.C.A. (IAD) for information pl
3. Office Copy.

INTERNAL AUDIT OFFICER

Z.A.P/S.P.ZONE
 NORTH DELHI MUNICIPAL CORPORATION
INTERNAL AUDIT DEPARTMENT
SADAR PAHARGANJ ZONE

No.________/IAD/SPZ/2015/______ Dated:________________

Subject : Physical verification and Test checkAudit report of J.E.(Works)-Store, C-

90B, Model Basti,S.P. Zone for the period 13.05.2014 to 11.05.2015.

INTRODUCTION :
The I.A.R on the accounts of J.E.(Works)-Store,C-90B, Model Basti, S. P. Zone was
conducted by Zonal Audit Party, S.P. Zone, comprising of Sh Sandeep Kumar, I.A.O., Sh.
Pradeep Singh Rawat, A.A.O., Sh. Subhas Chand Mishra,Acctts. Asstt., and Sh. Satish
Chand Sharma UDC. The audit was conducted on 11.05.2015 in one working day.
Shri Ravi Gupta, JE was in-charge of the store during audit.

AIMS AND OBJECTIVE

The primary aim of the department is to Repair/Maintenance of Roads, Foothpath etc.
and other civil engineering works in Ward No. C-90 B, Model Basti, S. P. Zone.

H.O.O./H.O.D./D.D.O’s/CASHIER
The following officials have served as HOO/HOD/DDO/Cashier during

S.No. H.O.D. H.O.O. Incharge Cashier

1 Sh. S. K. Singhal, -- Sh Ravi Gupta, JE(W) --
EE(M-I)

BUDGET ALLOCATION AND EXPENDITURE FOR THE YEAR

Budget Year Expenditure upto year Excess/Saving

ending
-- -- -- --
Maintained in concern Division of J.E.(Store)

STATUTORY AUDIT :
Statutory audit report was not produced.
VACANCY STATEMENT:

S.No. Name of Post No. of Posts Filled Vacant

Sanctioned

Maintained in the office of E.E.(M)-I, S.P.Zone.

MAINTENANCE OF RECORDS :
The maintenance of records of J.E.(Works)-Store,C-90B, Model Basti, for the period
13.05.2014 to 11.05.2015, cannot be considered satisfactory, since most of the chain of
records were either not maintained by the department concerned or not produced to Audit
Party for the period covered by the audit.

OLD AUDIT REPORT:

There were 32 audit paras outstanding in respect of J.E.(Works) Store, C-90 B, Model
Basti, out of which NIL para has been settled. The remaining 32 paras have been
incorporated with current audit report as part-I (old audit report).

DETAILS OF OLD AUDIT REPORT:

(A)

S. Year Total Para Para No. of Outstanding Para’s

No. Para’s Settled settled para’s with Para No.
1. 2007-09 5 Nil --- 5
2. 2009-10 4 Nil --- 4

3. 2010-12 9 Nil --- 9

4. 2012-13 7 Nil --- 7
5. 2013-14 7 Nil --- 7
Total 32 Nil --- 32

(B) Details of Old Recovery.

S. Year Total old Amount Recovered Balance Recovery

No. Recovery Against paras
(Rs.) Para No. Amount (Amount in Rs.
Para-wise)
1. 2007-09 Rs 4555/- --- --- Rs 4555/-
2. 2009-10 Rs 1410/- --- --- Rs 1410/-

3. 2010-12 Rs 725/- --- --- Rs 725/-

4. 2012-13 Rs 840/- --- --- Rs 840/-
5. 2013-14 Rs 1220/- --- --- Rs 1220/-
Total Rs 8750/- --- --- Rs 8570/-
Details of Current Recovery (Audit period 13.05.2014 to 11.05.2015) :

Para No.’s Total Recoveries Amount Balance (In Rs.)

(In Rs.) Recovered at spot
2 Rs. 808/- NIL Rs. 808/-

The internal audit report has been prepared on the basis of information furnished and
made available by the J.E.(Works)-Store,C-90B, Model Basti, S. P. Zone.
This Zonal Audit Party disclaims any responsibility for any misinformation and/of
non-information on the part of auditee.

PART No. II(CURRENT AUDIT)

The following record was requisitioned for Audit/Scrutiny on test check basis vide the office
MemoNo.IAD/ZAP/SPZ/2015/01 dated 11.05.2015.

1. Stock Book,
2. Gate Passes/Indent,
3. M.Bs.
4. Property Register
5. Dismantle Article Register
6. Unserviceable Articles Register
7. Log Book of Vehicle
8. T&P Register
9. Muster Roll of labour with paper of initial appointment
10. Attendance Register with Biometric sheets,
11. Complaint Register
12. Other relevant records related to audit

PARA NO. 1: NON PRODUCTION OF RECORD.

Out of the above requisitioned record, items at S.No. 4, 6, 7, 8, 9 &10(p) were not
produced to audit for inspection & certificate given in r/o record at S.No. 3, 7 & 10. Either
the record is not being maintained or the production of the same appears to have been
avoided, reasons to which may be explained to Audit.
As a result of physical verification of the Store of JE(W), , C-90B, Model Basti, S.P.
Zone. And test check of accounts of whatever record was produced the following
discrepancies/ irregularities/ omissions/ errors etc. came to the notice of the Audit.
PARA NO.2: DISCREPANCIES NOTICED AS A RESULT OF PHYSICAL
VERIFICATION OF JE (W)-STORE C-90B, MODEL BASTI(LOSS
OF RS. 808/-)
While conducting the physical verification of Store, the shortages found in the store
have been tabulated below. The shortage approximately comes to Rs.808/- which may be
 made good by way of depositing the cost of articles shown against each item in the Municipal
Treasury through G-8 Book/ Challans and shown to audit.

S.No Page Item As per S.B As per Sh/Ex @ Rate Amount

No. site .
01. 23 Coarse sand 1.90 qm 1.70 qm 0.20 Rs.1350/ Rs. 270/-
qm
02. 32 Stone agg 20 1.60qm 1.35qm 0.25 Rs.1350/ Rs. 338/-
mm qm
03. 37 Big Ballies 14 nos 12 nos 02 Rs.100/ Rs. 200/-
nos.
Total Rs 808/-

PARA NO.3: CHECKING OF ATTENDANCE REGISTER

During the checking of attendance register, produced by the JE(W) Store C-
90B, Model Basti, S.P.Zone, the employees had been found on Half Pay Leave, E.L. &
absent (shown at Annexure A). As there were no Personal Files and Service Books kept in
the office of the JE (W) Store, and also no leave sanctioning/regularization orders were
produced so the leave availed could not be verified by the audit. ZE, S.P.Zone may please
ensure that the leave availed by the staff mentioned in annexure have been properly debited
in the leave account of the concerned staff and suitable action has been taken in case of
unauthorised absence from duty or overstayal of leave.

PARA NO.4: IRREGULARITIES IN STOCK BOOKS

According to Stock Book of J.E. Store, it was noticed that material had been received
through work orders but copy of the same was not provided by concerned J.E. to Audit Party,
hence the material received through work orders could not be verified/checked by audit party.
In case, at a later stage any material received through work order found not entered in Stock
Book, the whole responsibility will be of J.E. and A.E. concerned.

During the scrutiny of stock books it was also found that in many cases entries had
been strike off and re-written, also many entries were found to be rectified. These entries
were not initialled by the competent authority which is objectionable. The In charge is
therefore instructed to get all such types of entries attested by the competent authority and
also ensure that in future all the entries are recorded in stock books with utmost care so that
no cutting/overwriting is required in the entries at a later stage.

PARA NO.5: NON MAINTENANCE OF MOVEABLE PROPERTY

REGISTER
The department vide this office requisition No. IAD/ZAP/SPZ/2015/01 dt. 11.05.2015
was asked to provide the property register. But department has neither provided the said
register nor furnished any certificate in this regard. Hence, it seems that the deptt. has not
maintained any property register.
 So, in Compliance of CA-cum-FA circular no. CA/F&B/09/382 dt. 30.3.09, every
officer or employee of the corporation in-charge of moveable property of the corporation or
stocks of the articles or material kept or issue shall maintain a register of moveable property.

It is therefore, requested that a comprehensive list of all moveable property items

received in the office of JE (W) Store C-90B, Model Basti, SPZ from any source should be
entered in the moveable property register and then the officer in-charge is requested to review
and verify the property items received in the office from all sources and issue a certificate to
audit that all the items received has been entered in moveable property register.
If any discrepancy found in future regarding property items not entered in the property
register, the department shall be held responsible for any theft/pilferage of the property items
as audit is unable to physically verify the items in the absence of property register.

PARA NO.6: GENERAL OBSERVATION

1. Sign of recipient of stock items were not available in many places in Stock Book.
2. Cuttings/overwriting were found at many places in the Stock Book and it had not
been authenticated by the JE/AE.
3. Purpose/reason of the issue of item and also the name of work for which the
material was issued not mentioned.
4. There were many cuttings /overwriting in the M Bs produced for audit and it had
not been attested by the competent authority.
5. Stock Book/indent/gate passes of ward no 90A not produced since some of the
items had been shown received from ward no 90A.
6. The physical check of stores should be conducted by A.E. concerned time to time
and results noted in the stock book.
7. Material/Item received from site should also be attested by the AE concerned
while taking it in the respective stock register.
8. Record of Bio Metric attendance of employees marking their attendance in the
store was not produced to audit. The copy of the same be kept in the store &
produce the same at the time of audit.
9. The site for which material issued was not mentioned in the stock book.
10. Page No. of stock book not mentioned in Gate Passes.

INTERNAL AUDIT OFFICER

ZAP/S.P. ZONE