New Delhi Municipal Corporation

Internal Audit Department

Zonal Audit Party, Room No.6, City Zone.

No. F._______/IAD/ZAP/CZ/2012 Dated:____________

SUBJECT:- Physical verification & Test Check of records of Kasturba Hospital, City
Zone for Period 18.10. 2011 to 08.11.2012 .

Please find enclosed the audit inspection report on the accounts of the above mentioned unit
for the above mentioned period. Para-Wise replies/comments may be sent to the office of
undersigned within a period of four weeks from the date of receipt of this report.

Encl:- As above
Internal Audit Office
Z.A.P./City Zone
M.S.(Kasturba Hospital),
City Zone
Copy to:-
(1) Addl. DHA(M) - for information and necessary action Please.
(2) D.C.A. (I.A.) for information and record please.

Internal Audit Office

Z.A.P./City Zone
 New Delhi Municipal Corporation
Internal Audit Department,
Room No. 6, Zonal Audit Party, City Zone.

No. F._______/IAD/ZAP/CZ/2012 Dated:_________________

SUBJECT:- Physical verification & Test Check of records of Kasturba Hospital, City Zone
for Period 18.10.2011 to 08.11.2012.

INTRODUCTION :
Physical Verification and Test check of the records of Kasturba Hospital, City Zone was
conducted by Zonal Audit Party (City Zone), comprising of Sh. Manoj Kumar Naresh, I.A.O., Sh.
Pardeep Rawat, AAO., Sh.R.K. Yadav, Auditor and Sh.Sandeep Vasisth, Auditor. The audit was
conducted during 28 working days w.e.f. 17.10.2011 to 28.11.2011. This was the physical
verification of store and test check of records of the department w.e.f. 18.10.2011 to 08.11.2012.
AIMS AND OBJECTIVES
The primary aim of the department is to provide preventive & curative measures mainly to
general and natal patients including providing of prenatal and postnatal treatment.

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. Cashier

1 Dr. Sushma Gupta, Dr. Sushma Gupta, Sh. Raj Kumar, Suresh Kumar
(M.S.) (M.S.) A.O. Sharma

Budget Allocation and Expenditure for the year

Plan/ Budget Year Expenditure upto Excess/Saving

year ending
Non Plan

Non Plan Annexure “A” (2010-11) Annexure “B” (2011-12)

Statutory Audit :
Statutory audit report was not produced.
Vacancy Statement:

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

Sanctioned

Annexed as “C “

Maintenance of Records:-

Since most of the chain of records were either not maintained by the department concerned or not
produced to audit, so the maintenance of records by the department concerned can not be considered
as satisfactory for the period covered by the audit.
Old Audit Report:

There were 272 audit paras outstanding in respect of Kasturba Hospital, City Zone. The
department has not made compliance of these paras and as such Nil paras have been settled. These
272 paras have been incorporated with current audit report as part-I (old audit report)

(A)

S.No. Year Total Para Para No. of settled Outstanding Paras

paras with Para No.
Paras Settled

Detailed in formA-9

B) Details of Old Recovery.

S.No. Year Total old Amount Recovered Balance Recovery
Against paras
Recovery Para No. Amount (Amount in Rs.
Para-wise)

Detailed in
form A-9.

Current Recovery (Audit period 18.10.2011 to 08.11.2012.)

Para No. Total Recoveries Amount Balance

(In Rs.) recovered
2 Rs. 2886.25/- nil Rs. 2886.25/-
3 Rs. 363.31/- nil Rs. 363.31/-
5 Rs. 100/- nil Rs.100/-
10 Rs. 25,000/- nil Rs. 25,000/-

Total Rs. 28349.56/-

The Internal Audit report has been prepared on the basis of information furnished and record
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.

DCA (Internal Audit) IAO/ZAP/CZ

PART-II CURRENT AUDIT

Vide this office letter No.IAD/ZAP/CZ/01 dated 08.11.2012, following record was
requisitioned for physical verification and test check.

1 Stock book
2 Property Register
3 Uniform register
4 Linen and Laundry Register
5 Ident/Challans
6 Imprest register
7 Injection register
8 Daily consumption register
9 X-ray record
10 Repair account f X-ray and other equipment
11 Sale account of X-ray washing chemical
12 Unserviceable Article register
13 Donation Box Account register
14 G-8 books and challans
15 ECRs/Personal files/service books
16 Cash books, disbursement register
17 Cheque register
18 Temporary Advance register
19 Postage register
20 Log books with Petrol Indents
21 Allotment of Quarters record
22 Purchase/Agreement/Contract files/Tenders files/Tender Opening register
23 Blood Bank account
24 Kitchen account
25 Patient Admission account/Hospital charges account
26 Empty Container register
27 OTA account register, E.M. register
28 Instrument register
29 Attendance register
30 Auction file
31 Sanction of Muster Rolls
32 Budget register
33 Any other records maintained in the Hospital

The Internal Audit report has been prepared on the basis of information furnished and made
available by the department. The Internal Audit Department of NDMC 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 mentioned /requisitioned record, the record mentioned at. S.No. 01 Partly,
(Kitchen, S.I, wards & J.E.(E)), 02 Partly (Kitchen, S.I., ward & J.E.(E)), 04, 05 Partly, 07, 08, 09,
14 Partly, 16, 22, 24 Partly, and 28 Partly were produced to audit. The rest of the record was not
produced. Either the record is not maintained or the production of the same appears to have been
avoided. In this regard three reminders were issued by the audit to the department vide no. 06,12,and
14/IAD/ZAP/CZ/2012 dated 22.11.2012, 30.11.2012 and 03.12.2012 respectively but no further
records were produced to audit as requisitioned time to time.
Only 21 nos. of G-8 books with challans were produced to audit for scrutiny/checking (List
enclosed at Annexure-“D”). During the audit of G-8 Books, Rs, 10/- was found short deposited
vide G-8 receipt no.1040862 dated 08.02.2012 and a letter for depositing the short amount into the
Municipal Treasury was issued to the department vide no.15/IAD/ZAP/CZ/2012 dated 04.12.2012
& In response the department had deposited the said amount into Municipal Treasury vide G-8
No.030764 dated 06.12.2012. In case any G-8 is left unchecked other than produced, then the entire
responsibility will lie on the shoulders of the concerned officers/Officials of the division for any
irregularity and shortages.
 As a result of audit of M.S., Kasturba Hospital & 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 found during physical verification of store amounting to

Rs.2886.25.

During the course of physical verification of stores in Kasturba Hospital, City Zone, the
shortages noticed are tabulated in brief as under. The details of shortages have been annexed at “E”
to “L”.

S.No. Department Shortage (in Rs.) Annexure

1 General Store 280/-
E
2 Dispensary – Window 1 96/- F
3 Dispensary – Window 2 63.25/- G
4 Dispensary – Window 3 138/- H
5 J.E. (Electric) 95/- I
6 Medical Store List 1 1258/- J
7 Kitchen Deptt. 922/- K
8 MOPD Ward 34/- L
Total-
Rs.2886.25/-

The shortage approximately comes to Rs.2886.25/- may be made good by way of depositing
the cost of articles shown against each items in the Municipal Treasury through G8 books/challans
and shown to audit for verification.
Some items as mention below were found in excess in General Store at the time of physical
verification:-

Sr. No. Page No. Items Qty as per S/B Qty as per actual Excess
1. 10,11 Bed Sheet 797 806 09
2. 13 Cell Big 77 85 08
3. 21 Brooms Coconut 137 514 377
4. 33 Disp.Sharp Container 385 450 65
5. 35 Double Jack. Bucket 19 21 02
6. 93 Liquid HW Soap 17 18 01
7. 123 Printer Cartridge 08 09 01
8. 147-148 Toilet Cleaning Lotion 46 52 06
9. 156 Torch with cell 23 24 01

Reason for the above excess stock may be clarified to audit.

Para No.3: Casting mistake in stock book 2011-12,2012-13 of ANC ward and 2011-12
Kitchen Deptt. (amounting to Rs.98.55 + Rs.264.76 = Rs.363.31).

During the scrutiny of the stock book maintained by the department, the following mistakes
in computing the balances were noticed/found.

(A) ANC Ward.

S. Page No. Items O.Ba Issue Bal. as Bal. Sh./Ex. Amount

N l. Per SB Should
o be

1 58 Cap 200 10 180 190 10 (Sh) 12.50/-

dt.17.12.11 cepheixin

2 06 dt. 2.6.11 Ferololate 2000 250 1500 1750 250(Sh)

Tab
6 dt. 14.11.11 1000 500 nil 500 500(Sh) Rs85.05
-Do-

3 21 dt.8.4.12 PCM 70 15 45 55 10(Sh) Rs. 1.0

Total:-Rs.98.55/-
(B) Kitchen Deptt.

S. Page No. Items O.Bal. Issue Bal. as Bal. Sh./Ex. Amount

N Per SB shoud
o be

1 59 Tea 14.4kg 1.0 kg 12.4 kg 13.4 kg 1kg (Sh) 264.76/-

dt.20.3.12

Total:- 264.76/

The shortage approximately comes to Rs.363.31/- may be made good by way of depositing the
cost of articles shown against each items in the Municipal Treasury through G8 books/challans and
shown to audit for verification.

Para No.4: Non disposal of unserviceable articles in J.E.(Electric) Store.

During the course of physical verification of Store, it was found that certain items/articles are
lying in the Store in the unserviceable condition. Since the articles were not kept in proper manner
resulting in forced depreciation/loss of value. These require immediate disposal after adopting the
proper procedure as laid down in the Mpl. account code. This may be done at the earliest under
intimation to audit.

Para No.5: Short deposit of amount in Treasury K.H. (Recovery of Rs. 100/-)

During the audit of Private Ward of Kasturba Hospital it came to the noticed of the audit
party that Rs. 100/- (Rs. One hundred ) was deposited short in the treasury, Kasturba Hospital vide
G-8 receipt no. 1040382 dated 08.10.2011 and department was advised to deposit the short amount
into treasury vide memo no. 13/IAD/ZAP/CZ/2012 dated 03.12.2012, but the same has not been
deposited till date. It may be made good by way of depositing the above said shortage in the
Municipal Treasury through G8 books/challans and shown to audit for verification.
Para No. 6: Irregularities in purchase/ supply of patient Trolleys cum Beds.
Supply order no. KH/purchase/2012/05 dated 16.4.2012 (A.K.Sales Corpn.) for supply
of patient trolleys cum beds.
As per Invoice no. AKS/2012/014 dated 30.5.2012 the material was received by the
department on 30.5.2012 but the same was entered in the SB on 17.9.2012.
1. As per the Tender Notice copy placed at page 126/c, time of completion was given 60 days
where as the department has issued the supply order to the supplier giving the time of
completion 6-8 weeks. Time of completion should strictly be as per the Tender Notice.
2. Department may clarify the reason for contravening terms & conditions of Tender by altering
the period of supply and also for not mentioning a definite period of supply.
3. As per terms of agreement, supply should be subject to approval of Board and brought to use
only after the approval. On going through the tender file it appears that the department
started using the equipment before approval of the board as department in reply to the
observation of the finance deptt. dt. 01.08.12 at page 21/N of tender file has mentioned at
page 22/N dated 6.8.2012, that the supply has already been received and being used by the
department, where as department has not mentioned the date of approval/ placed any
supporting document of the approval. More over it was evident from the certificate regarding
receipt of goods and entry in the SB given by the department on the back of Invoice that the
equipment was entered in the stock book on dated 17.9.2012 where as it should be entered
in the SB as soon as the same was approved by the approval board. The equipment should be
brought to use after the approval ie entering the material in the SB.
4. There was no documentary evidence that the firm deposited performance warranty @5%,
available in the file.
The reason for above said irregularities may be clarified to audit.

Para No. 7: Marking of Attendance in irrelevant department.

During the scrutiny of attendance register of Kitchen Staff of Kasturba Hospital it came to the
noticed of audit that following employees of Kitchen Staff were marking their attendance in the
Register of Kitchen Staff but actually working in other departments of the hospital, as mentioned
below:
Sh. Ved Prakash, Mate Cook was working in X-Ray Department of the Hospital.
Sh. Nitin, Mate Cook was working in OT Department of the Hospital.
Sh. Azad, Mate Cook was working in Med.Suptd. Office.
Kitchen Incharge had informed that these employees were performing their duties from 8
PM to 4 PM whereas the duty time of Kitchen Staff is 6AM to 2PM and 12PM to 8PM (in
two shifts). Secondly the staff working in Kitchen Department were getting one day off after
every three working days having no any Gazzetted Holidays as their services comes under an
essential service but the employees mentioned as above were enjoying the Gazzetted
Holidays and Sunday and also one day’s off.
Reason for above said irregularities/discrepancies may be clarified to audit.

Para No. 8: Expenditure made in excess of sanctioned amount.

During the audit of Imperest Register of Kitchen Department as produced by the deptt,
for the period 01.4.2012 to till date, it was noticed that the department had made the
following expenditure in excess of sanctioned amount of Rs. 7200/- at a time to refill the gas
cylinder:
1. Rs. 10620/- dated 08.10.2012
2. Rs. 10750/- dated 12.10.2012
3. Rs. 11055/- dated 03.11.2012
Reason for making expenditure in excess of sanctioned amount may be clarified to audit.
Para No. 9: Non deposit of Tender Cost on a/c of downloading of tender documents. (loss to
MCD amounting to Rs.25000/-)

During the course of audit of tender files (only), audit has observed that Rs. 25,000/- has not
been deposited in municipal treasury, as tender cost by the contractors on a/c of download of tender
documents. The details are as under:

S.No. Tender No. & Date Name of Agency Tender Amount

1 1205 dated 14.2.12 A K Sales corp. Rs.500.

2 Do D V Enterprises Rs.500.

3 Do J M D Sales Corp. Rs.500.

4 11881 A K Sales Corp. Rs.500.

5 Do J M D Sales Corp. Rs.500.

6 12144 Solly Techncocrates Rs.500.

7 Do Adarsh Traders Rs.500

8 Do Ashok Enterprises Rs.500

9 Do Heanus Technocrates Rs.500

10 12111 dated 20.9.12 A K Sales Corp. Rs.500

11 Do Rohanika Enterprises Rs.500

12 Do Medical Systems Rs.500

13 Do J M D Sales Corp. Rs.500

14 Do Family Care Rs.500

15 12214 dated 11.1.12 Family Care Rs.500

16 Do A K Sales Corp. Rs.500

17 Do Aum Health Care Rs.500

18 Do Medical Engineers Rs.500

19 Do Baba Medicos Rs.500

20 Do I T Solutions Rs.500

21 Do Heanus Technocrates Rs.500

22 11845 dated 30.8.11 Family Care Rs.500

23 Do A K Sales Corp. Rs.500

24 Do Adarsh Traders Rs.500

25 Do D V Enterprises Rs,.500

26 11844dated 20.12.10 Family Care Rs.500

27 Do A K Sales Corp. Rs.500

28 Do Vijan Surgical &Gen Supplier Rs.500

29 Do Sigma Meditech Servies Pvt Ltd Rs.500

30 12110 dated 20.9.11 A K Sales Corp. Rs.500

 31 Do Aum health Care Rs.500

32 Do J M D Sales Corp. Rs.500

33 Do Family Care Rs.500

34 Do D V Enterprises Rs.500

35 12109 dated 16.8.11 A K Sales Corp. Rs.500

36 Do Sampark Medicare Rs.500

37 Do J M D Sales Corp. Rs.500

38 Do Abhijeet Associates Rs.500

39 Do Family Care Rs.500

40 12333 dated 7.2.12 A K Sales Corp. Rs.500

41 Do J M D Sales Corp. Rs.500

42 Do Abhjeet Associates Rs.500

43 11918 dated 8.3.11 Vishal Surgical Equipment Co. Rs.500

44 12233 dated 27.1011 Ranjeet Enterprises Rs.500

45 11815 dated 14.2.11 Family Care Rs.500

46 Do Anand Sons Rs.500

47 12213 dated 10.2.12 A K Sales Corp. Rs.500

48 Do A K Enterprises Rs.500

49 Do Abhjeet Associates Rs.500

50 Do Anand Sons Rs.500

Total :- Rs. 25000/-

Since the E tendering system has been introduced in the MCD w.e.f. 2005 onwards. All the
tenderers participating in the tender are required to pay the requisite tender cost as decided by the
deptt. During the course of audit of the deptt. it came to the notice that no record of Tender cost/fee
was being maintained in the deptt in respect of the sale/download of tenders and also the scrutiny of
the tender files disclosed that no document was kept in the tender files from which it could be
verified that the requisite tender cost had been paid by all the participating tenderers. It is a very
serious lapse of the part of the deptt.
Deptt. should maintain a register containing the detail of NIT wise sale/download of tender
documents, name of the person who has downloaded the tender document/to whom tender document
issued, amount realized on a/c of sale of tender documents etc. On one side of the register
computerized transaction list in which the detail of the contractors who have downloaded the tender
documents is given, should be pasted and on the other side amount of tender cost realized from the
contractor alongwith DD No./G.8. No should be mentioned. The registger should be checked and
verified by the Officer concerned.
 As per the above list, recovery amounting to Rs.25000/- on a/c of sale of tender documents
is required to be effected. The cases mentioned in the list are only illustrative not exhaustrive.
Similar discrepencies in other cases are not ruled out hence the M.S. Hospital concerned is therefore
requested that the necessary action may be initiated to recover the tender cost from the participating
tenderers from the date of introduction of “E” Tendering system to till date under intimation to
audit and the reason for the said irregularities be explained and justified to audit.

Para No.10: Non maintenance of record of empty containers remitting in loss

During the course of audit of kitchen department in Kasturba Hospital, it was noticed that the
vegetable oil was used in the following quantities:
November 2011 to March 2012 : 240 Cans
April, 2012 to October 2012 : 330 Cans
Total : 570 Cans

Though these 570 plastic cans were re-saleable packages but were not sold. Had the in
charge made efforts in this regard by selling it to the junk dealer at a minimum rate, it would have
fetched some income for the corporation. Non disposal of the empty containers resulted in loss to
the corporation.
It is advised to the department to maintain proper inventory of all such empty containers so
that income could be realized wherever possible. The inaction of the department leading to non
generation of municipal fund may be explained to audit.

Para No. 11: Checking of Attendance Register of Staff of JE(Electric) KH.

During the checking of Attendance Register of Staff of JE(Electric) KH for the
period 01.01.2012 to 21.11.2012 so produced by the department , the following leave were availed
by the staff. As there were no P.F./S.B. kept in the office of the J.E.(Elect.), leave availed by the staff
could not be verified by the audit. AE(E)/EE(E) may please ensure that the leave availed by the
staff have been properly debited in the leave account of the concerned employee and deduction of
pay be made if there is no leave at balance and a certificate to this effect be furnished to audit.
Sh. Vishwa Ratan E.Beldar-EL 24.1.2012 to 31.1.2012, 15.9.2012 to 27.9.2012
Sh. Mohan Singh E.Beldar- EL 06.1.2012 to 14.1.2012
Sh. Amar Singh E.Beldar—EL 02.3.2012 to 11.3.2012
Sh. Alam Ram - 01.3.2012 to 31.3.2012 Leave title not given, 01.4.2012 to 30.4.2012
Absent and Cross Mark on 11.5.2012
Sh. B.B. Thapa. E. Beldar—16.4.2012 to 304.2012 EL 01.5.2012 to 11.5.2012 EL
Sh. Sheesh Pal E. Beldar-- 18.6.2012 to 29.6.2012 EL
Anjum Parvez E.Beldar-- 19.6.2012 to 28.6.2012 EL
Sh. Ranvir Singh Fitter—11.6.2012 to 22.6.2012 EL

Para No.12: Irregularities/discrepancies found in stock register of various wards of Kasturba

Hospital.
During checking it was found that only some stock books were being maintained manually.
The computerized record could not be checked. If any discrepancy is found at any stage by any
agency then the entire responsibility will be of the officer in charge concerned. It was also noticed
that stock register of various wards of Kasturba Hospital were not being maintained in proper
manner. Items received from the store were being entered in the register, but entries of further
issue/use of these items in the ward were not made in the stock register, so that correct balance of
these items could not be ascertained. Moreover in some wards entries of condemn items was being
made in the stock register instead of maintaining a separate condemn article register. Moreover, the
cuttings/overwriting had not been attested by the competent authority.
The reason for improper maintenance of stock register be explained to audit.
Para No.13: Irregularities/Discrepancies found in Diet Demand Register 2012-13
1 During the test check of requisition for diet from various ward and diet demand register
2012-13, it was found that requisitions for diet for different medical wards were being
sent to kitchen without mentioning the name/designation of the indenting official and
these requisitions were also not signed/verified by the treating doctor, which is very
irregular.
2 On test check of fruits, paneer, eggs and bread register 2012-13, the fruits, paneer, eggs
and bread issued to various wards i.e. Labour Room and NICCU it came to the notice that
proper record of Issue/distribution was not being made properly as name, designation of
the officials issuing and receiving the material/items were not available in the register.
3 On the test check of milk register 2012-13, it was noticed that milk distributed to various
wards such as Labour Room and NICCU in morning and evening. In the milk register it
was noticed that on 27th and 28th oct. 2012, the milk had been shown issued to various
wards but dated signatures of the persons to whom the material was issued were not
obtained at all and also where signatures had been obtained the designation of the person
receiving the material were not shown and also the receipt of the material had not been
found verified by any of the superior authority. It is a very serious lapse on the part of the
Kitchen incharge/Dietician. Hence possibility of the misuse of the store items cannot be
ruled out.
The reason for such irregularity be explained to audit.

General Observations

During the course of Audit on the account of various department of Kasturba Hospital, the
following general discrepancies were also noticed by Audit:

1. In case of purchase of medicines/equipments etc, under rate contract, department should place
photocopy of the Rate/Contract Agency approved in the file for ready reference. In the absence
of the same verification or rates and agency could not be done.
2. No record was maintained for the General items like soap, vim etc. received from General
Store by the Kitchen Department. In the absence of stock book of these items, verification of
stock could not be done.
3. Cuttings and over writing in the stock books of the various wards were not verified by the
competent authority. No periodical check was done by the superior staff in the stock books.

Internal Audit Officer

Z.A.P. (City Zone)