NORTH DELHIMUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT

S.P. Zone

No.________/IAD/SPZ/2014/______ Dated:________________

Subject : Audit report of J.E.(store),C-76, Bara Hindu Rao , S.P.Zone for the period
29.12.2012 to 10.01.2014

INTRODUCTION :

The Test check and physical verification of the accounts of J.E(Store), C-76, Bara Hindu
Rao, S.P.Zone was conducted by Zonal Audit Party (S.P. Zone), comprising Sh Manoj Kumar
Naresh I.A.O., Sh. Subhash chand Mishra, Auditor, Sh. Sant Raj Hathwal, Auditor and Sh. Satish
Chand Sharma Auditor. The audit was conducted on 10.01.2014 in one working day.

AIMS AND OBJECTIVES

The primary aim of the department is to Repair/Maintenance of Roads, Foothpath etc.and other
civil engineering works of the area.

H.O.D./H.O.S./D.D.O’s/CASHIER

The following officials served as HOD/HOO/DDO/Cashier during the audit period.

S.No. H.O.D Head of Office Incharge Cashier

1 Sh. K.K. Sharma -- Sh. Ankur Tyagi --
Ex.Engg. Jr. Engineer

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)-II. S.P. Zone.

Maintenance of Records:-

Since most of the chain of records were either not maintained or not produced to audit, by the
concerned department, so the maintenance of record by the department concerned cannot be
considered as satisfactory for the period covered by the audit.
Part- I

Old Audit Report:

There were 180 audit paras outstanding in respect of JE(W)store, C-76, Bara Hindu Rao, S.P.
Zone. The department has made effective compliance of 17 paras settled. Remaining 163 paras
have been incorporated with current audit report annexed at I-A-9 format.(given below).

(A) Details of Old Audit Report:

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

Para’s Settled settled with Para No.
para’s
1. 1983-85 06 01 ’ 01 05
2. 85-86 07 02 1&2 05
3. 90-91 03 01 1 02
4. 91-92 04 - - 04
5. 92-93 03 - - 03
6. 93-94 04 - - 04
7 93-94 03 02 1&2 01
8 94-95 06 01 02 05
9 94-95 05 02 2&3 03
10 95-96 07 - - 07
11 95-96 07 02 2&3 05
12 96-97 07 - - 07
13 96-97 06 - - 06
14 97-98 05 - - 05
15 97-98 07 - - 07
16 98-99 05 - - 05
17 98-99 05 - - 05
18 99-2000 05 - - 05
19 99-2000 05 - - 05
20 2000-01 06 - - 06
21 2000-01 05 - - 05
22 2001-02 05 01 02 04
23 01-02 04 01 02 03
24 02-03 04 01 02 03
25 02-03 04 01 02 03
26 03-04 04 01 02 03
27 03-04 04 01 02 03
28 04-05 03 - - 03
29 04-05 03 - - 03
30 05-06 06 - - 06
31 05-06 05 - - 05
32 06-07 08 - - 08
33 07-09 05 - - 05
34 09-10 04 - - 04
35 10-11 05 - - 05
36 11-12 05 - - 05

Total 180 17 163

(B)Details of Old Recovery.

S.No. Year Total old Amount Recovered Balance

Recovery Recovery
Para No. Amount Against paras
(Amount in Rs.
Para-wise)
1. 1983-85 1092.70 92.70 1000.00
2. 85-86 52.40 52.40 Nil
3. 90-91 134.00 134.00 Nil
4. 91-92 331.00 - 331.00
5. 92-93 40.00 - 40.00
6. 93-94 111.00 111.00 Nil
7 93-94 75.00 - 75.00
8 94-95 325.00 325.00 Nil
9 94-95 111.60 111.60 Nil
10 95-96 224.00 224.00 Nil
11 95-96 186.00 - 186.00
12 96-97 209.00 - 209.00
13 96-97 420.00 - 420.00
14 97-98 356.00 - 356.00
15 97-98 156.00 - 156.00
16 98-99 207.00 - 207.00
17 98-99 179.00 - 179.00
18 99-2000 178.00 - 178.00
19 99-2000 226.00 - 226.00
20 2000-01 116.00 - 116.00
21 2000-01 129.00 - 129.00
22 2001-02 226.00 226.00 Nil
23 01-02 108.00 108.00 Nil
24 02-03 220.00 220.00 Nil
25 02-03 190.00 190.00 Nil
26 03-04 229.00 229.00 Nil
27 03-04 165.00 165.00 Nil
28 04-05 Nil Nil Nil
29 04-05 Nil Nil Nil
30 05-06 150.00 - 150.00
31 05-06 Nil Nil Nil
32 06-07 987.00 - 987.00
33 07-09 2900.00 - 2900.00
34 09-10 600.00 - 600.00
35 10-11 1100.00 - 1100.00
36 11-12 800.00 - 800.00
Total 12533.70 2188.70 10345.00

Current Recovery (Audit period 29.12.2012 to 10.01.2014)

Para No.’s Total Recoveries Amount of Balance (In

(In Rs.) deposited Rs.)
Recoveries
02 Rs.670/- NIL Rs.670/-
03 Rs.300/- NIL Rs.300/-
Total Rs.970/-
 The internal audit report has been prepared on the basis of information and records
furnished / made available by the JE(W), C-76,Bara Hindu Rao, S.P.Zone. The Internal Audit
department disclaims any responsibility for any misinformation and/of non-information on the part
of auditee.

DCA(Internal Audit) IAO/ZAP/SPZ

PART No. II (Current Audit)

The following record was requisitioned for Audit/Scrutiny on test check basis vide the office
Memo No. IAD/ZAP/SPZ/2014/01 dated 10.01.2014.

1. Stock Book.
2. Indent/Gate Passes.
3. MB’s
4 Property Register.
5 Dismantle Article Register.
6. Unserviceable article register.
7. Log Book of vehicle.
8. T & P register.
9. Muster Rolls with sanction.
10. Attendance Register with Biometric Sheets.
11. Complaint register.
12. Any other auditable records required during the course of audit.

The internal audit report has been prepared on the basis of information furnished and
records 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.

Para No. 1: Non production of Record.

Out of the above requisitioned record, items at S.No 3, 6 ,7,8, and 9 were not produced
and S.No. 10 & 11(partly) produced to audit. Either the record was not maintained or the
production of the same appears to have been avoided, reasons to which may be explained to
Audit. In case any record remained un-checked other than produced, then it will be the sole
responsibility of the concerned officer/official/incharge of the store .

As a result of physical verification of JE (W), C-76, Bara Hindu Rao, 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: Shortage noticed as a result of physical verification of JE(W)Store C-

76, Bara Hindu Rao, S.P.Zone.

During the physical verification of Store, the items of store as tabulated below were found
short. The shortage comes to Rs. 670/ - (approx.), 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 intimate to audit.
 S.No Page Item As per As per Sh/Ex. @ Amount
No. S.B(2011- site Rate
12 to
2013-14 )
01 14 Cement 76 75 01 short 270/- 270/-

02 143 Steel Belcha 12 10 02 short 200/- 400/-

Total 670/-

PARA NO-3: SHORT OF RS 300/- OF COSTING MISTAKE.

During the scrutiny of the Stock book 2013-14 maintained by the department, the following
mistakes in computing balances/casting have been noticed:-

STOCK BOOK 2013-14

S. Name of Pg. Date Open Issu Bal. Bal. Short/ Amt.
no article No. .bal. e Show actually Excess
. n as should
be
1 Stone 180 14.12.2 35.83 02.9 32.73 32.93cu 0.20cu Rs 300/-
Dust 013 cum cum cum m m Short
Total Rs
300/-

The shortage comes to Rs.300 /-(approx.), which may be made good by way of depositing
the cost of articles shown against each items in the Municipal Treasury immediately through G8
books/Challans and intimate to audit.

Para No.4: Checking of attendance Register

A statement showing the leave availed by the employees of JE(W)store C-76, Bara Hindu
Rao, S.P. Zone during the period under Audit as taken from the attendance register produced is
enclosed as Annexed’ A’ .The attendance register so produced to audit was for the period from
January 2012 to December 2012 only.

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. ZE (W) 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: Disposal of Unserviceable articles

During the course of physical verification of Store, it was found that certain items/articles
were lying in the Store in the unserviceable condition and require immediate disposal after
adopting the proper procedure as laid down in the Mpl. account code.
PARA NO.6: IRREGULARITIES IN STOCK BOOKS

According to Stock Book of J.E. Store, it was noticed that material had been received
through work order but copy of the same was not provided by concerned J.E. to Audit Party,
hence the material received through work orders could not verified/checked by audit party. In
case any material received through work order not entered in Stock Book, the whole responsibility
will be of concerned J.E. and the supervisory staff.
During the scrutiny of stock books it was also found that in numerous 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. 7 : NON MAINTENANCE OF MOVEABLE PROPERTY REGISTER RESULTING

INTO NON-ACCOUNTAL OF SUCH ITEMS

In terms of Clause-9 Chapter-IX of the Mpl. Account Code 1958 Part-I, every Officer or
employee of the Corporation in charge of moveable property of the Corporation other than stamps
or stock of articles or materials kept for issue shall maintain a register of moveable property in
Form G-31. However, no such register was stated to have been maintained in the store of J.
E(Works). Further all moveable property items are to be physically verified at least once in a
year. No such verification had been carried out. It needs clarification.

Para No.8: Other audit Observations:-

1. On scrutiny of the Stock Book maintained by the deptt. Following irregularities in

maintenance of the S.B. have been noticed.

There were so many cuttings and overwriting in the entries, which had not been
authenticated by the responsible officer. Cutting and overwriting is completely
forbidden and must be avoided.

In most of the entries in the Stock Book the material has been shown issued to
site/area but the name of the site/area has not been mentioned.

The periodical inspection of stores should be made by the A.E concerned and a
certificate of verification of stores with its results should be recorded but the
same has not been done the the AE concerned.

2. The record of marking attendance by the staff in the JE(Store), in the Biometric attendance
system, was not produced to the audit. JE(store) is advised to keep the copy of record of
Bio Metric attendance sheets of employees.

3. No record regarding the Casual Leave taken by the employees has been maintained in the
JE(Store).

4. Deptt. has not mentioned the page number of the stock book on the Gate Pass where the
same has been entered.

5. Sign of recipient of stock items were not available in many places in Stock Book.

Internal Audit Officer

Zonal Audit Party/S.P.Zone
 NORTH DELHI MUNICIPAL CORPORATION
INTERNAL AUDIT DEPARTMENT
S.P.ZONE, DELHI

Mpl. Primary School Bldg.,

Ram Nagar, Arakshan Rd.
Pahar Ganj, New Delhi-55

No.F._____/IAD/SPZ/2014/_____ Dated___________

Subject: Audit report of J.E.(store),C-76, Bara Hindu Rao , S.P.Zone for the period
29.12.2012 to 10.01.2014

Please find enclosed herewith the Audit Inspection Report on account of JE

(Works) Stores, C-76, Bara Hindu Rao, S.P.Zone for the period 29.12.2012 to
10.01.2014. Para wise replies/comments may be sent to the office of the
undersigned within a period of the four weeks of the receipts of the report.

Internal Audit Officer

Zonal Audit Party/S P Zone

Sh.Ankur Tyagi
JE, Works (Store),
C-76, Bara Hindu Rao,
S.P. Zone

Through EE-II (S.P.Zone)

Copy to:
1 SE/S.P.Zone for information with request to direct the staff to file the reply immediately pl.
2 D.C.A.(I.A.D) for information pl.
3 Office Copy

Internal Audit Officer

Zonal Audit Party/S P Zone