NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT,

ROOM NO. 56, ZONAL AUDIT PARTY,
CITY ZONE

No. F.________/IAD/ZAP/CZ/2016/ Dated:-

SUBJECT:- Physical verification & Test Check of records of Main Medical Store, Alipur
Road, City Zone for Period 09.08.2014 to 19.01.2016.

INTRODUCTION:
Physical Verification and Test audit on a/c of the Main Medical Store situated at Alipur
Road & Rohini Sec.-7 was conducted by Zonal Audit Party (City Zone), comprising of Smt.
Swaran Kumari, I.A.O. Sh. K.K.J.R.K. Prasad, AAO, Sh. Sandeep Vashist, Auditor and Sh.
Chander Shekhar, Auditor. The audit was conducted during 05 working days w.e.f. 19.01.2016
to 22.01.2016. This was the physical verification of store and test check of records of the
department for the period 09.08.2014 to 19.01.2016.

AIMS AND OBJECTIVES

The primary aim of the department is to receive medicines from agencies and duly
authorized by the approved Central purchase Board and issue to Colony Hospitals/Dispensaries
which comes under the jurisdiction of NDMC.

H.O.D./H.O.S./D.D.O’s/CASHIER
The following officials have served as HOD/HOO/DDO/Cashier during the period of audit.

S.No. H.O.D. Head of Office D.D.O. Pharmacist

1 Dr. D. K. Seth Sh. S.K. Gupta Dr. Ghanshyam, 1 Ashwani Rastogi
DHA Addl. DHA(Medical) CMO 2 Suresh Kumar Khatri

Budget Allocation and Expenditure for the year 2014-16

Plan/ Budget Head Year Budget Exp. upto Saving

Non Plan allocation year ending
Plan Not produced
Non Plan 42-1098 2014-15 390 Lacs Rs.29236281.00 Rs. 9763719/-
42-1187 2014-15 6.00 Lacs Rs.364500/- 235500/-
57-1098 2014-15 550 lacs 49544585/- 5455415/-
57-1187 2014-15 2.00 lacs 112250/- 87750/-
42-1098 2015-16 450 lacs 44692243/- 40530757/-
42-1187 2015-16 7.00 Lacs 66324/- 633676.00/-
57-1098 now H/A 2015-16 600 lacs 5947320/- 54052680/-
change to 52-1098
57-1187 now H/A 2015-16 2.00 lacs 0.00/- 2,00,000/-
change to 52-1098
Medical XL IV I C iii 2015-16 495.00 22878768/- 26621232/-
(This budget head is lacs
used by 03 stores &
HQ:- CMS/Alipur,
CMS/Plan Store Rohini,
Rohini TB Store &
Addl. DHA(Med. & TB)

Statutory Audit:
Report in regard to Audit conducted by Statutory Audit department was not
produced/provided to audit team by the authorities concerned.
 Vacancy Statement:

S.No. Name of Post Cat. No. of posts sanctioned Filled Vacant

01 GDMO A 01 00 01
02 NO B 00 00 00
03 Pharmacist C 03 02 01
04 Peon D 01 00 01
05 Chowkidar D 01 00 01
06 Daily Wager/Substitute D 00 00 00
TOTAL 06 02 04

Maintenance of Records:-
The maintenance of records of Main Medical Store, Ali pur Road, City Zone for the
period 09.08.2014 to 19.01.2016 was not found very satisfactory subject to observation
made in Current audit report and in Test audit note.
Old Audit Report:
There were 98 audit paras outstanding. Main Medical Store, Alipur Road, City Zone has
made compliance of only 06 paras which are settled. These 92 paras have been incorporated with
current audit report as part-I (old audit report)

DETAILS OF OLD AUDIT REPORT:-

S.N Period of Date No & date of letter under Paras settled Para Money
account of audit which report was issued outstanding value
audited No of No. of G.P M.V.P
paras paras
settled
01 1974-75 12.12.74 F.1570/IAD/KBZ/15 09 06 02 01 Rs.75000/-
to 21.12.74 dt. 27.12.74
02 1982-83 to 16/09 to F.243/IAD/DAP-III/84/K. gate 06 Nil 06 Nil
09/83 4/10/83 dt. 22.05.84
03 1988-89 to 21 to F.608/IAD/CZ/92/218 dt. 05 Nil 04 01 Rs.150/-
03/93 28/4/92 19.10.92
04 1992-93 to 22 to F.674/IAD/CZ/93/104 05 Nil 04 01 Rs.87/-
22.09.93 27.09.93 dt. 31.12.93
05 1993-94 to 17.10.94 F.757/IAD/CZ/95-96/03 02 Nil 03 Nil Nil
17.10.94 dt. 2204.96
06 1994-95 to 09.10.96 F.794/IAD/CZ/96/12 02 Nil 01 01 Rs.55/-
09.10.96 dt. 06.02.97
07 10.10.96 to 12.01.98 F.851/IAD/ZAP/CZ/98/16 02 Nil 01 01 Rs.100/-
12.01.1998 dt. 09.03.98 Rs.53/-
08 12.01.98 to 28.01.99 F.897/IAD/ZAP/CZ/02/99/134 05 Nil 04 01 Rs.238/-
25.01.99 dt. 09.03.98
09 26.01.99to 10.02.2000 F.1041/IAD/ZAP/CZ/2000/125 06 Nil 05 01 Rs.201/-
10.02.2000 dt. 09.03.98
10 11.02.2000 to 16 to F.1084/IAD/ZAP/CZ/01/281 08 Nil 07 01 Rs.348/-
15.03.01 21.03.01 dt. 29.05.01
11 17.03.01 11 to F.1138/IAD/ZAP/CZ/02/392 07 Nil 05 02 Rs.1951/
to 11.04.02 16.04.02 dt. 08.05.02
12 11.04.02 to 21 to F.1202/IAD/ZAP/CZ/03/559 05 Nil 04 01 Rs.222/-
21.05.03 23.05.03 dt. 08.05.02
13 22.05.03 to 11 to F.1237/IAD/ZAP/CZ/2004/ 633 05 Nil 04 01 Rs.340/-
11.05.04 16.05.04 dt. 04.08.05
14 12.05.04 to 07 to F.1281/IAD/ZAP/CZ/2005/ 05 Nil 04 01 Rs.388/-
07.04.05 15.04.05 705 dt. 09.03.98
15 08.04.05 to 19.04.06 F.1328/IAD/ZAP/CZ/2006/ 05 Nil 04 01 Rs.160/-
19.04.06 787 dt. 08.06.05
16 20.04.06 to 16.04.07 F.1371/IAD/ZAP/CZ/07/883 05 Nil 04 01 Rs.476/-
16.04.07 dt. 07.12.07
17 16.04.07 to 17 to F.1415/IAD/ZAP/CZ/2008/ 05 Nil 04 01 Rs.427/-
24.06.08 24.06.08 41 dt. 01.09.08
18 24.06.08 to 02 to F.1482/IAD/ZAP/CZ/2012/ 05 Nil 02 03 Rs.4883/-
29.08.11 09.09.11 372 dt. 28.12.12
19 30.08.11 to 21.03.13 to F.1508/IAD/ZAP/CZ/2014/ 06 Nil 04 02 Rs.2148/-
21.03.13 02.04.13 431 dt. 25.03.2014
20 22.03.13 to 08.08.14 to F.1547/IAD/ZAP/CZ/2015/ 04 06 Nil 04 02 Rs.2204/-
08.08.14 14.08.14 dt. 18.02.15
TOTAL 104 06 75 23 Rs.87396/-

Details of current Recovery (Audit period 09.08.2014 to 19.01.2016)

Para No. Total Recoveries (In Rs.) Amount Balance (In Rs.)
recovered

Total Nil Nil Nil

The Internal Audit report has been prepared on the basis of information furnished and
made available by the department. The Internal Audit Department of MCD disclaims any
responsibility for any misinformation and/of non-information on the part of auditee.

PART-II CURRENT AUDIT

Vide this office letter No. 01/IAD/ZAP/CZ2016 dated 19.01.16. Following record was
requisitioned for physical verification and test check.

1. Stock Registers
2. Indent/Challans
3. Purchase Files
4. Sample Register
5. Approval Register
6. Property Register
7. Attendance Register
8. Log Book of Vehicle
9. Any other auditable record

PARA No.1: NON PRODUCTION OF RECORD

Out of the record requisitioned, the record mentioned at S. No., 4(P), 8 was not produced
to audit for scrutiny as it was intimated that the records mentioned at S. No.4 maintained in the
office of Addl. D.H.A (M) and for the record mentioned at S. No. 8, the department had certified
that no Municipal /Govt. Vehicle was provided at CMS. The certificate submitted by the deptt, is
enclosed as (Annexure-“A”).

PARA NO.2: DISCREPANCIES NOTICED AS A RESULT OF PHYSICAL

VERIFICATION OF THE STORE (LOSS OF RS.1218/-)

While conducting the physical verification, following discrepancies were noticed

in the main store and sub-store, Rohini. An amount of Rs. 1218/- may be recovered from the
Concerned officer/official and Remitted into Municipal Treasury under intimation to Audit.

ALIPUR MEDICAL STORE (MAIN)

Sl. S. No. Name of items as Balance as per Balance Short Amt.

No. in list per computerized list Computerizes list as per site
01 13 Ampicillin Trihydrate 250 mg.+ 43000 42800 200 Rs.365.40/-
Cloxacillin Sodium 250 mg.
02 96 Levocetrizene Dihydrochloride 639600 63900 600 76.50/-
5 mg.
03 133 Para Dichlorobenzene 2% + 5300 5280 20 238.20/-
Benzocain 1 % + Chlorbutol 5 %
+ Turpentine ear drops 15%
04 165 Salbutamol Sulphate IP 4 mg. 475000 47400 1000 88.20/-
05 194 Xylometazolin 0.1% Nasal drops 11700 11670 30 234.60/-

Total Rs.1002.90/-
Say Rs. 1003/-

MEDICAL STORE ROHINI (2015-16)

S.N. Item Name SB page no Qty. as Qty. as per Short Amount

& year per SB actual

1. Tab. Atrovastatin 13-(2015-16) 48000 47900 100 No. Rs.51.98/-

2. Tab. Antacid 30-(2015-16) 57000 56800 200 No Rs.43/-
3. Sop. Deriphyline 97-(2015-16) 1350 1345 05 Rs.56.15/-
4 Tab. Losurtan H 167-(2015-16) 4400 4300 100 Rs.63.42/-

Total Rs. 214.55/- Says Rs. 215/-

The above mentioned shortage for Rs. 1003+215=1218/- was deposited vide G-8 No.
5201 dated 21.01.2016 & G-8 No. 5208 dated 25.01.2016 in Mpl. Treasury (copy of G-8 receipts
placed in the audit file). Hence, this Para may be treated as settled on the spot.

PARA NO.03: IRREGULARITIES NOTICED IN THE PURCHASING FILES

1. Supply Order No. 120 dated 09.10.2015 M/s Scott-EDIL Pharmacia Ltd.

Observations:-

1. As per delivery challan No. 64 dated 15.11.2015, following irregularities has been noticed:-
a. Delivery challan hand written/handmade instead of computerized delivery challan.
b. Date of issued delivery challan No. 64 was overwritten.
c. The date of signature of MSK-CMS(NDMC), Alipur Road, Delhi was overwritten. It seems
that 12.12.2015 instead of 15.11.2015 on the stamp of “Goods received subject to approval
which stamped on above mentioned delivery challan.
d. The signature of authorized signature for Scott-EDIL Pharmacia Ltd. was found without date
on the above mentioned delivery challan.
e. As per commercial Invoice No. 65 dated 07.12.2015, Invoice No. 65 dated 07.12.2015 was
computerized but delivery challan No. 64 not mentioned on the above mentioned Invoice No.
00294213 dated 05.09.2014 & 09.09.2014 respectively against supply order No.
207/28.07.2014 and delivery challan & Invoice No. 006010 dated 23.01.2015 & 10.02.2015
against supply order no. 282 dated 04.12.2014 were same but in the above mentioned case,
Invoice & challan no. were differ to each other.
f. As per record entry, stamped on the back side of the Invoice No. 65 dated 07.12.2015
certified that the supply received is good condition as per specification and entered in CMS
inventory vide computer entry No. 62351 dated 02.12.2015 bill verified for Rs. 2,85,600/-, it
means that the bill for Rs. 285600/- was verified on 02.12.2015 whereas the Invoice No. 65
of this amount was issued on 07.12.2015 by M/s Scott-EDIL Pharmacia Ltd.. How is it
possible that bill amount verified before issuing of Invoice.
g. As per condition No. 4 of supply order i.e. performance security @ 5% of the total cost of
order must be deposited with department inform of Bank FDR but in the given stamped,
amount of FDR not mentioned by the department. So audit not able to check the 5% security
amount in the bank.

2. Supply Order No. 93 dated 27.08.2015 M/s Krish Pharmayu(Recovery of Rs. 52058/-)

Observations:-

Less penalty due to non-supply- (-) 33,642/-

vide S.No. 176/24.07.2014
Less penalty due to non-supply- (-) 18416/
Vide 95/04.07.2014
 Net amount payable-241992/- & signed by CMO/M&TB but department was given the
contingency bill for Rs. 294000/-for payment & forwarded to Accounts Department. Hence, the
audit could not able to ascertain regarding one recovery of Rs. 52058/- from M/s Krish
Pharmayu. So produced the original voucher of recovery of Rs. 52058/- in this regard &
mentioned the pertaining Vr. No. of this recovery amount. If not recovered, may be recovered
from M/s Krish Pharmayu at the earliest, under intimation to audit.

PARA NO.4: CHECKING OF ATTENDANCE REGISTER

A statement showing the leave availed by the employees as per attendance register of J E
(W) store Main medical Store, Alipur Road, during the audit period is as under –

S.No. Name of employee & leave Leave Title

designation
01 Sh. Mohit Kumar, operator 13.01.15, 24.07.15, 12.44.15, 27.11.15, Casual Leave
24.04.15, 24.07.15, 24.08.15, 04.01.16 (X)No Leave title
02 Sh. S.K. Khatri, Pharm. 10.03.15 to 13.03.15, 25.03.15, Casual Leave
30.03.15,
31.08.15 to 01.09.15, 30.09.15 & (X)No Leave title
01.10.15,
28.12.15 to 31.12.15 Commuted Leave
03 Sh. Chanderveer, W/B 30.11.15 to 04.12.15 (X)No Leave title
04 Sh. Ganga Prasad, S/K 18.03.15, 26.03.15 to 27.03.15, Casual Leave
30.03.15, 09.07.15, 25.08.15, 07.01.16
21.04.15 to 29.04.15, 20.05.15 to
29.05.15, Commuted Leave
31.08.15 to 02.09.15, 30.11.15 to
03.12.15 Earned Leave
08.06.15 to 11.06.15, 11.08.15 to
13.08.15, 09.09.15 to 11.09.15, (X)No Leave title
17.09.15 to 24.09.15, 02.11.15 to
03.11.15, 12.11.15 to 13.11.15,
21.12.15 & 23.12.15, 28.12.15
05 Sh. A.K. Rastogi, 30.01.15, 02.03.15, 12.06.15, 23.06.15, Casual Leave
Sr. Pharm. 04.11.15, 17.12.15, 04.01.16

During the course of checking of attendance register so produced by the Main Medical
Store, Alipur Road,, some employees had been found on Earned Leave, Commuted leave as
there were no Personal Files and Service Books kept in the office of the Main Medical Store,
Alipur Road, and also no leave sanctioning/regularization orders were produced to audit, the
leave availed could not be verified by audit. Addl. DHA(M) may please ensure that the leave
availed by the staff have been properly debited in the leave account of the concerned staff and
suitable action may be taken in case of unauthorized absence from duty or overstay of leave
and intimated to audit. The title of leave sanctioned and its subsequent entries in the leave record
in the Service Book/Personal files of the concerned employees could not be verified by the audit
in the absence of the Personal Files & Service Books. Add.DHA (M) may please ensure that the
leave availed by the staff, has been properly accounted for and furnish a certificate in this regard
to the Audit.

PARA NO 5. SHORT DEDUCTION OF RS. 306/-

During the course of audit of the Supply bill provided to the audit party, the following
irregularities/discrepancies were noticed by the audit party
a) As per supply order no.484 dated 17.02.2014, Rs.154400/- M/S Panchsheel Pharma. Cream
Clobetasol Propionate 0.05% W/W total supply 20000/- no. but Firm fail to supply the said
cream as per terms & condition of R.C.2014-15, so the penalty @ 6% of total amount of
supply has to be deducted 6% penalty comes Rs.9264/- but the department deduct Rs.9240/-
so the authorities are requested to recover the balance amount of Rs.24/- in any upcoming
bill of the farm under intimation to audit.
b) As per supply order no.197 dated 13.11.2013, Rs. 28,245/- M/S Health Care Tab. Ramipril,
Tab Telmysartan 40 mg, Tab. Hydrophlothyroide. Firm fails to supply the said order in time
 i.e. supply should be received upto 01.01.2014, but the supply received on 06.01.2014, as
per Term & Condition of R.C.2014-15 the penalty @ 1% of total amount of supply has to be
deducted.1% penalty comes Rs.282/-. So, the authorities are requested to recover the
balance amount Rs.282/- in upcoming bill of the firm under intimation to audit.

PARA NO.6 NO PROPER ARRANGEMENT FOR SECURITY

As per rule No.189 of GFR, the office incharge of store having custody of goods &
materials, especially valuable, shall take appropriate steps for arranging their safe custody,
proper storage accommodation, including arrangement for maintaining required temperature,
dust free environment etc. While conducting the audit of Main Medical Store, Alipur Road as per
the vacancy position provided by the dept., it has come to the notice that post of chowkidar is
laying vacant. As medicine of Lakhs of rupees are lying in store in store, so deptt. should take
immediate action for appointment of chowkidar to avoid any Municipal loss in future.

PARA NO 7. OTHER OBSERVATION

1. There was no periodical check of record by the higher authorities.

2. Cutting/over writing in the Stock Books had not been attested by the higher authorities.
3. During the physical verification, it was noticed that some of the items of store were lying on
the floor and racks in loose boxes. The officer in-charge of the store to ensure that proper
arrangement is made out for the safe custody of store.
4. It was also noticed that certain articles in the store were in unserviceable condition which
needs to be kept in safe custody & disposed off immediately after adopting proper procedure
as laid down in the municipal account code and their protection from deterioration.
5. No fire safety measures/ arrangements were found in the main store as well as in sub- store.
6. Work/Supply order, concurrence register not closed in the ending of finical year.
7. The Supply order register was not page numbered and also certificate regarding no. of pages
was not available on the supply order register.
8. The electricity fittings were also not properly fitted as loose electric wire may occur short
circuit and catch fire/blaze in the store.
9. The deptt. may ensure that the online system must be run smoothly and take backup of the
system.

INTERNAL AUDIT OFFICER

CITY ZONE
 NORTH DELHI MUNICIPAL CORPORATION
INTERNAL AUDIT DEPARTMENT
CITY ZONE

No. F.____ __/IAD/ZAP/CZ/2016/ Dated:

Please find enclosed herewith the audit inspection report on the physical verification and
test check audit of accounts maintained at Central Medical Store Ali Pur road & Rohini store
(Plan) for the period 09.08.2014 to 19.01.2016. Para-wise replies/comments are sent to the office
of the undersigned within a period of four weeks.

INTERNAL AUDIT OFFICER

Z.A.P/CITY ZONE

Store Keeper (CMS)

Through Add. DHA (Medical)

Copy to:

1. DCA (IAD) for information pl.

2. Office Copy.

INTERNAL AUDIT OFFICER

Z.A.P/CITY ZONE