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No.F.______/IAD/ZAP/SPZ/2016/______ Dated_____________

Subject: Physical verification & test check audit on account of Accounts

Department, S.P.Zone, for the period 01.4.2012 to 31.3.2015.

Please find enclosed herewith the Audit Inspection Report on account of Accounts
Department, S. P. Zone for the period 01.4.2012 to 31.3.2015. Para wise
replies/comments be sent to the office of the undersigned within a period of the four
weeks of the receipts.

Internal Audit Officer


Account Oficer./NDMC,

Copy to :
1 DCA. S.P.Zone, for information pl.
2 D.C.A.(I.A.D.) for information pl.
3 Office Copy.

Internal Audit Officer





No.F____/IAD/ZAP/SPZ/2016/_____ Dated_______

Subject: Physical verification & test check audit on account of Accounts

Department, S.P.Zone, for the period 01.4.2012 to 31.3.2015.


As per approved programme the physical verification and test audit on account of
Accounts Department, SP Zone, for the period 01.4.2012 to 31.3.2015 was conducted by
the Zonal Audit Party, S. P. Zone , during the period 11.9.2015 to 30.09.2015 . The Audit
Party consisting of the following staff working under the control and supervision of Sh.
Sandeep Kumar, Internal Audit Officer, S. P. Zone conducted the audit of the said office.

1 Sh. Pradeep Singh Rawat Accountant

2 Sh.Subhash Mishra Acctt. Asstt.
3 Sh. Satish Sharma UDC
4. Smt. Rama LDC

Sh. Bhola Ram was holding the post of Accounts Officer at the time of audit.


The aim and objectives of the Accounts Department is to control and maintain the
account of receiving the fund from HQ and expenditure according to budget
allocation by way of passing the bills received from the various department of the
concerned Zone as well as other important works such as fixation of pay of the
zonal employees, distribution of pension to the pensioners, sending demand to HQ
for release of fund etc.


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

S. No.HOD Head of Office DDO Cashier

Shri Balwinder Shri Bhola Ram. Shri Bhola Ram
Shri Nawab Ali

Budget Allocation and Expenditure for the year

Budget Year Expenditure Excess/Saving

up to year
Mentioned in the

Statutory Audit:-


No audit report of statutory audit was provided to the audit party.

Vacancy Statement:

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

1. DCA 01 01 Nil
2. AO 01 01 Nil
3. AAO 01 01 Nil
4. JAO 01 01 Nil
5. Head Clerk 01 Nil 01
6. UDC 05 03 02
7. LDC 04 03 01
8. Peon 02 nil 02

As per vacancy statement provided by the department, there was 02 Accounts Assistant
were posted against the post of UDC on adhoc basis in the Grade Pay of Rs. 2800/- and
only one daily wager working as Peon through CED.

Maintenance of Records:-

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

Old Audit Report

There were 68 audit para’s outstanding the department has made compliance of as such
NIL para’s settled. The remaining 68 Para’s have been incorporated with current audit report as
part-I (old audit report).

S. No. Year Total Para Para no. of Outstanding
Para’s Settled Settled Para paras with
Para No.
1 1972 to 1977 12 Nil Nil 12
2 1985 to 1987 4 Nil Nil 4
3 1988 to 1989 6 Nil Nil 6
4 1993 to 1995 9 Nil Nil 9
5 1995 to 1997 7 Nil Nil 7
6 1997 to 1999 5 Nil Nil 5
7 1999 to 2002 9 Nil Nil 9
8 2002 to 2005 4 Nil Nil 4
9 2005 to 2006 12 Nil Nil 12

Total 68 Nil Nil 68


(B) Details of Old Recovery

S. No. Year Total old Recovery Amount Recovered Balance

In Rs. Recovery
against Paras
(Amount in
Rs. Para
1 1972 to 1977 Nil Nil Nil
2 1985 to 1987 Nil Nil Nil
3 1988 to 1989 Nil Nil Nil
4 1993 to 1995 Nil Nil Nil
5 1995 to 1997 Nil Nil Nil
6 1997 to 1999 Nil Nil Nil
7 1999 to 2002 Rs. 2185/- Nil Rs. 2185/-
8 2002 to 2005 Nil Nil Nil
9 2005 to 2006 Rs. 228/- Nil Rs. 228/-

Total Rs. 2413/- Rs. 2413/-

Details of Current Recovery (Audit Period 01.4.2012 to 31.3.2015.):-

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

The Internal Audit Report has been prepared on the basis of information furnished
and records produced by the department concerned.

This party disclaims any responsibility for any misinformation and/of non-
information on the part of audittee.


The following records were requisitioned for audit/scrutiny on test check basis vide
this office memo no. IAD/ZAP/SPZ/2015/01, dated 11.9.2015.

1. Cash Book
2. Cheque register
3. Advance register
4. Security Register
5. Imprest register
6. GPF/CPF/NPS records
7. Income cash book along with challan
8. G-8 Books along with challan
9. ECR
10.Bank Reconciliation Statement
11.Monthly Accounts
12.Property register
13.Paid vouchers


14.Dishonor cheqe register

15.Transfer entry register
16.PF/SB of officers/ officials
17.Pension cases for the audit period
18.Budget watch register with allocation
19.Demand register
20.Bill register
21.Stationary record
22.Circular file
23.Contingency register
24.Children education allowance re-imbursement register
25.Medical re-imbursement register
26.Any other auditable record required during the course of audit.


Out of the above requisitioned records, the records at Sl. No.01(P), 03, 06(NPS
only), 09(P), 13(P), 16(06 files only), 18, 21 and 23 only were produced to audit for
inspection. No any record as required by the audit was provided by the department.
Production of said records has been avoided for the best reasons known to the
department. An audit memo vide no. 05/IAD/ZAP/SPZ/2015 dated 21.9.2015 regarding
non production of record was also issued to the department. The Commissioner MCD has
issued a circular dt 19/08/2003, where in it has been instructed all the departments to
provide records to audit. It was informed that the department has violated the orders of
Worthy Commissioner. If, any irregularity/discrepancy is found in the non-produced
record, at any stage, the whole responsibility will lie on the department itself.


During the course of audit of Accounts Department/ SPZ for the period 01.4.2012
to 31.3.2015, it came to the notice of audit that cheques from the different department.
Viz. Property Tax Deptt, Building Deptt, EE(M)-I etc, being received from different
agencies/ parties (specially relates to Property Tax Department) were deposited in to
authorized banks-ICICI and Axis Bank by treasury/ SP Zone and out of these deposited
cheques some cheques were dishonored by bank. A list/ record of these dishonored
cheques (enclosed herewith report as Annexture-A page 01 to 12) returned by the banks
which were further sent/ received back to concerned departments.
Audit has requested to Accounts Department/ SPZone through Audit Memo
no.05/IAD/SPZ/2015 dated 28.9.2015 to direct the concerned departments i.e. Property
Tax Deptt, Building Deptt, EE(M)-I, Accounts Deptt etc to clarify on the following points
on urgent basis:-
1. Whether dishonored cheques were being recovered or not, provide cheque wise
details.( recovered/ not recovered).
2. Action taken against defaulting parties/ property.
3. Whether any penalty imposed against defaulting parties/ property or not.

No reply in this regard has been provided to audit till date, needs justification.




As required by audit party, department has provided the list of re-employed teaching
staff duly signed with stamp by DDO/Education Department/SPZ with details of payment
of DA on salary as made by department. In this regard audit has observed that department
was not adopting uniformity in payment of DA as in some cases DA was being paid
100% on salary and in some cases it was being paid 50% of DA on salary and 50% on
pension which was not according to rule of payment of DA to re-employed teaching staff.
The possibilities of excess payment of DA on salary could not be denied due to non
adopting of uniformity.
Secondly, as per rule of FR&SR, Dearness relief will be admissible to the pensioner
who was re-employed if he did not hold group A post or post of the rank of
Commissioned Officer at the time of his retirement and whose pay on re-employment is
fixed at the minimum of the pay scale but as per the list of payment made to re-employed
staff provided by the department shown that pay fixed @ 50% of pay last drawn by
pensioner re-employed.
Reason for above said irregularities may clarify to audit.
An Audit Memo vide no. 06/IAD/SPZ/2015 dated 29.9.2015 issued to the
department to justify the reason for un-uniformity in payment of DA on salary but
no reply received to audit till date.


SANCTIONED BUDGET 2012-13 TO 2014-15 :

During the test audit of the Budget Watch Register for the year 2012-13 to 2014-15,
the following irregularities were noticed:

In the cases shown below, the department has incurred excess/less expenditure than
the allocation:


S.No. Head of account Total Expenditure Difference

Allocation (Rs.) Short
( Lac) Excess
1 10/1001 06.00 7,80,090/- 1,80,090/-
2 10/1002 10.00 13,34,482/- 3,34,482/-
3 10/1003 26.00 30,18,568/- 4,18,568/-
4 10/1004 05.00 3,80,419/- 1,19,581/-
5 10/1193 00.40 44,734/- 4,734/-
6 10/1156 00.05 998/- 4,002/-
7 10/1119 01.50 1,50,057/- 57/-
8 10-1149 00.50 1,02,223/- 52,223/-


S.No. Head of account Total Expenditure Difference

Allocation (Rs. (Rs.)
In Lac)
1 10/1001 12.00 7,62,518/- 4,37,482/-
2 10/1002 15.00 17,60,022/- 2,60,022/-
3 10/1003 35.00 32,80,666/- 2,19,334/-
4 10/1004 06.00 2,58,121/- 3,41,879/-


5 10/1193 00.20 49,378/- 29,378/-

6 10/1156 00.01 Nil 1,000/-
7 10/1119 01.80 1,78,691/- 1,309/-
8 10-1149 00.50 22,760/- 27,240/-


S.No. Head of account Total Expenditure Difference

Allocation (Rs. (Rs.)
In lac)
1 10/1001 10.00 9,79,133/- 20,867/-
2 10/1002 10.00 16,08,783/- 6,08,783/-
3 10/1003 35.00 37,37,611/- 2,37,611/-
4 10/1004 06.00 1,00,449/- 4,99,551/-
5 10/1193 00.20 37,679/- 17,679/-
6 10/1156 00.01 260/- 740/-
7 10/1119 01.50 1,33,837/- 16,163/-
8 10-1149 00.50 32,960/- 17,040/-

DDO is responsible for the control of expenditure against the sanctioned budget
placed at his disposal. No expenditure should be incurred during the financial year on
any work/item not covered by the budget grant. If any excess over the allocation of
budget is apprehended, the deptt., should obtain additional allocation before incurring the
excess expenditure. Similarly all the anticipated savings should be surrendered by the
prescribed date, before the close of the financial year.

From the above, it is revealed that the department has violated the terms of GFR
for controlling the budget allocation & expenditure during the said year, as there is huge
difference in allocated budget and expenditure incurred during the financial year.
Savings were not surrendered and expenditure incurred without getting sanctioned
additional budget. Reasons for the above irregularities be explained to audit.



During the course of audit of Accounts Department/SPZ, it came to the notice of

audit that bills from the various departments of the Zone passed through establishment
check register without having a watch on allocation and expenditure as no expenditure
control register required to be maintained with a view to keep a watch over to progress of
expenditure incurred by DDO of various department under different budget heads
allocated to tem.
Account Officer/ SP Zone was requested to exercise his check and expenditure
control register be maintained henceforth under intimation to audit.

Reason for non-maintenance of said register may clarify to audit.



In the ECR’s so produced by the department, the following irregularities were

noticed by audit:

1. ECR Teachers ward no. 85 and 88 (2012-13):-It was observed that ECR
maintained by the department was incomplete and it failed to provide vital
information with regards to Date of Birth, Date of Appointment, Date of
Retirement, GPF numbers, details of Mpl. Accommodation allotted if any, etc.
Moreover Pay and Grade Pay were not mentioned in ECR so it could not be
ascertained that whether correct pay has been distributed and amount deducted for
GPF and GIS being sent to appropriate account.

2. ECR ADH/SPZ, 2012-13:- Voucher number for the salary of the month March
2014 at page no. 20 and for the month of November 2013 at page no. 56 of the
register. At page no. 30 of the ECR the salary of Sh. Shyam Sunder Mali for the
month of June 2013, August 2013 to December 2013 and February March 2014
shown Nil without mentioning any reason.

3. ECR ADH/SPZ, 2014-15:- Cutting were made without attestation at page no. 05,
41 and 42 and voucher numbers at page number 05 and 22 were not mentioned.

4. ECR General-I, 2013-14:- At page number 11, a bill of Rs. 7,025/- passed on
06.8.2013 on a/c of cash handling allowance to Sh. Nawab Ali, LDC for the period
July 2012 to July 2013 @ Rs. 25/- per day and at page number 12 on a/c of Sh.
Gopinath. T.K/Head Clerk, without obtaining signature of AO/SPZone. At page no.
12, Earned Leave encashment bill for Rs. 10,912/- passed on 26.12.2013 entered
without mentioning period of leave. At page nu. 03 and 16 voucher no. for the
salary of March 2013 and 2014 were not mentioned.
The matter now please be looked in to and concerned officials/officer be
directed for necessary steps at the earliest under intimation to audit.



As per circular no. F. No. 31.11/4/2014-Estt. (A.IV) Government of India, Ministry

of Personnel, Public Grievances and Pension Department of Personnel and Training
related which is instructions issued from time to time regarding purchase of Air Ticket
from authorized Travel Agent for the purpose of LTC and say that the Government
employees are required to book their air tickets directly from the airlines ( Booking
counters, website of airlines) or by utilizing the service of Authorized Travel Agents viz.
M/S Balmer Lawric & Company, M/S Ashok Travels & Tours and IRCTC( to the extent
IRCTC is authorized as per DoPT’s O.M. No. 31011/6/2002-Estt.(A) dated 02.12.2009)
while undertaking LTC journey/s. Moreover some of the officials/ officers travelled by
GO Air Lines and Indigo by G-Economy G-Spl80 fare and G-EconomyLTC 80 Fare
classes whereas as per LTC Rules, the journey can only be performed by the Economy
Class and not by the Special Class but the claim were passed and reimbursed.
Most of the Air Tickets were booked through various Travel Agent and creates
suspicion that the officials got booked their tickets under package scheme and
possibilities of payment of much lesser amount to the Airlines than the amount claimed/
paid could not altogether be ruled out by audit. The amount so reimbursed to such
officials held under objection as irregular.
In number of cases as test checked by audit, for example, the LTC claim bills vide
voulcher number 47 dated 10.11.2014, 50/09.5.2014, 51/09.5.2014, 49/09.5.2014,
38/5.5.2014, 18/5.5.2014, 37/6.5.2014, 17/5.5.2014, 64 and 65/23.4.2014, 49,


187/20.10.2014, 166, 167 and 168 dated 20.12.2013 and 30 dated 6.8.2013 it has been
noticed that the aforesaid instructions were not being followed and as a result various
departments continue to make references of DoPT seeking relaxation of the conditions
for one reason or the other.
Department was requested to look in to the matter i/r of each and every LTC claim
bills on complete manner and recovery be made from the officials/ officers whose Air
Travel on LTC found irregular/ unjustified under intimation to audit at earliest.


As per instructions issued by the Commissioner MCD vide Circular No.

CA/Adv./188/66/1235 dated 20.8.66 and reiterated from time to time, the provisional
advances are required to be adjusted by the concerned DDO soon after the transactions
for which the advances drawn were completed in any case with in one month of its drawl.
On scrutiny of records maintained by Zonal Accounts Department/SPZ for the
period 01.4.2012 to till date of audit revealed that advances were lying outstanding/ not
adjusted ( as tabulated below) in contrary to above instructions.

S.No. Page no. of Serial number. Amount to Date of bill

Register. be Passing.
1 11 50 61,650/- 7/2/2013
2 13 63 50,000/- 9/7/2013
3 15 79 1,51,200/- 2.12.2013
4 20 103 6,75,000/- 11.4.2014
5 20 105 1,88,414/- 12.5.2014
6 21 106 3,60,000/- 13.5.2014
7 21 108 1,19,800/- 22.5.2014
8 21 110 1,11,340/- 2.6.2014
9 21 111 66,175/- 2.6.2014
10 23 115 1,12,500/- 11.11.2014
11 23 118 76,600/- 12.12.2014
12 24 121 7,85,880/- 14.1.2015
13 24 122 6,36,553/- 15.1.2015
14 24 124 80,000/- 3.2.2015
15 25 127 54,700/- 18.2.2014
16 25 131 6,11,294/- 17.3.2015
17 26 134 50,000/- 25.3.2015

The matter may please be looked into and circumstances and reason to be
justified to audit under which these advances remained outstanding/not adjusted up to
such a long time.


During the course of test audit of the service books and personal files as provided
by the department, the following irregularities were noticed in the records produced:

A. PF & SB of Sh. Duli Chand s/o Late Ganga Ram, UDC:


The following irregularities were found in the PF & SB;

(a) Leave account had not been completed;
(b) Personal file was not paged numbered.
(c) In some places the signature of Acctt. Was not found available in the entries
of DA arrears in the SB
(d) S.No. 01 to 09 at page no.4 of the SB such as Medical Examination, Police
verification etc, was not filled up and left blank.
(e) New photograph after completion of 10 year was not pasted in the IInd SB.

B. PF & SB OF Sh.Ashesh Nim s/o Sh. Vinod Kumar Nim, LDC:

(a) Personal file was not paged numbered.
(b) Leave account was not upto date and signed by the competent authority.
(c) Cutting and overwriting in the leave account was not attested by the
competent authority.
(d) In some places the signature of Acctt. Was not found available in the entries
of DA arrears in the SB.
(e) S.No. 01 to 10 at page no.4 of the SB such as Medical Examination, Police
verification etc, was not filled up and left blank.

The similar irregularities as mentioned in the above said cases found in the SB and P.Files of
Smt. Anju Lilothia w/o Sh. Manish Lilothia LDC, Sh. Nawab Ali s/o Sh. Basheer Khan LDC,
Sh. Narender Kumar s/o Sh. Dhir Sing, Sh. Devender Chawdhry s/o Sh. T.N.Chaudhry JAO and
Sh. Munna Lal s/o Sh. Krishna Psd.

Suitable remedial steps to correct above said irregularities may be taken under
intimation to audit.


During the course of scrutiny of Demand Register maintained by department for

the period 03.01.2013 to till date of audit as produced by the department, the following
observations came to the notice of audit;-
1. Paging certificate at th beginning of the register was not given by the competent
2. Signatures of the DCA/SPZ were not obtained in the register.
3. The order of the releasing of demand was not mentioned in the register.
4. Register found in torn and bad condition.
5. In the register only the demand sent to HQ shown and other important entries
regarding releasing of fund/ action taken not shown/mentioned in the register.
6. No periodic checks by competent authority were made as per register.
7. Cutting and overwriting in the register were not attested by the competent
8. Most of the entries at column no. 01 to 07 were not made and column no. 12 found
left blank.

Reason for non proper maintenance of the register may clarify to audit.


The following observations were noticed in the records maintained in the Accounts
Department/ S.P.Zone:-


1. Cutting and overwriting found in some entries made in the stock register which
were not attested by the competent authority.
2. Postage register for the period 05.12.2011 to 11.9.2015 was not paged numbered
and paging certificate was not given by the competent authority and no periodic
check also done. Sanction of recoupment of postage money by CA was not shown/
pasted in the register.
3. Budget register was not paged numbered and paging certificate was not given by
the competent authority as well as no periodic check made by the CA.Cutting and
overwriting at page no. 41 and 50 were not attested. Moreover signature of Dealing
Asstt. And Accountant was not found available in the entries of expenditure.
4. In the Budget register for the year 2013-14, special contingency or Rs. 1,78,691/-
shown without mentioning any purpose for which the expenditure incurred and
register for the year 2014-15 expenditure occurred on office contingency but no
stock entry, expenditure sanction, payment records etc. shown to audit.

Internal Audit Officer

ZAP/S P Zone