NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT

SADAR PAHARGANJ ZONE

No.______/IAD/SPZ/2014/____ 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-75, Vivekanad Puri, Padam
Nagar, S.P.Zone for the period 12.01.2013 to 31.03.2014. Para-wise replies/comments be
sent to the office of the undersigned within a period of two weeks.

INTERNAL AUDIT OFFICER

Z.A.P/S.P.ZONE

Sh.Ashok Kumar, JE (W)

C-75, Vivekanand Puri, Padam Nagar
Through EE-(M)-II, 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/2014/______ Dated:________________

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

75,Vivekanand Puri, Padam Nagar, S.P. Zone for the period 12.01.2013 to
31.03.2014.

INTRODUCTION :

The I.A.R on the accounts of J.E.(Works)-Store,C-75, Vivekanand Puri,Padam Nagar,

S.P.Zone was conducted by Zonal Audit Party, S.P. Zone, comprising of Sh M. K. Naresh,
I.A.O., Sh. P. S. Rawat, A.A.O., Sh. Subhas Chand Mishra, Acctts. Asstt., Sh. Sant Raj
Hathwal, UDC and Sh. Satish Chand Sharma, UDC. The audit was conducted on 31.03.2014
in one working days.
Shri Ashok Kumar, JE was in-charge of the store during audit.

AIMS AND OBJECTIVE

The primary aim of the department is to Repair/Maintenance of Roads, Footpath etc. and
other civil engineering works in Ward No.C-75, Vivekanad Puri, 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. K. K. Sharma, -- Sh Ashok Kumar, JE(W) --
EE(M-II)

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 :

The maintenance of records of J.E.(Works)-Store,C-75, Vivekanand Puri,Padam

Nagra, S P Zone for the period 12.01.2013 to 31.03.2014, 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 129 audit paras outstanding in respect of J.E.(Works)Store, C-75,
Vivekanand Puri, Padam Nagar, S P Zone out of which Nil paras has been settled. The
remaining 129 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. 1973-76 13 Nil - 13
2. 1990-91 06 Nil - 06

3. 1990-92 04 Nil - 04

4. 1991-93 05 Nil - 05

5. 1993-94 04 Nil - 04
6. 1994-95 04 Nil - 04
7. 1995-96 05 Nil - 05
8. 1996-97 05 Nil - 05
09 1997-98 05 N il - 05
10. 1998-99 05 Nil - 05
11. 1999-00 04 Nil - 04
12. 2000-01 06 Nil - 06
13. 2001-02 05 Nil - 05
14. 2002-03 06 Nil - 06
15. 2003-04 02 Nil - 02
16. 2004-05 06 Nil - 06
17. 2005-06 07 Nil - 07
18. 2006-07 07 Nil - 07
19 2006-07 08 Nil - 08
20. 2007-08 05 Nil - 05
21 2008-09 05 Nil - 05
22 2009-10 05 Nil - 05
23 2010-13 07 Nil - 07
Total 129 Nil - 129

(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. 1973-76 165 - - 165
2. 1990-91 156.50 - - 156.50

3. 1990-92 205 - - 205

4. 1991-93 50 - - 50

5. 1993-94 110 - - 110

6. 1994-95 65 - - 65
7. 1995-96 221 - - 221
8. 1996-97 248 - - 248
9. 1997-98 176 - - 176
10. 1998-99 227 - - 227
11. 1999-00 154 - - 154
12. 2000-01 149 - - 149
13. 2001-02 155 - - 155
14. 2002-03 285 - - 285
15. 2003-04 243 - - 243
16. 2004-05 236 - - 236
17. 2005-06 270 - - 270
18. 2006-07 729 - - 729
 19. 2006-07 1405 - - 1405
20 2007-08 590 - - 590
21 2008-09 2809 - - 2809
22 2009-10 530 - - 530
23 2010-13 1470 1470
Total 10648.50 - - 10648.50

Details of Current Recovery (Audit period 12.01.2013 to 31.03.2014) :

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

(In Rs.) recoveries
2 Rs 658/- Nil Rs 658/-

The internal audit report has been prepared on the basis of information/record
furnished/ made available by the J.E. (Works)-Store C-75, Vivekanand Puri, Padam Nagar,
S. P. Zone.
The ZAP/SPZ disclaims any responsibility for any misinformation and/of non-
information on the part of auditee.

INTERNAL AUDIT OFFICER

Z.A.P./S.P.ZONE

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 31.03.2014.
1. Stock Book of material,
2. Gate Passes,
3. M.Bs.
4. Property Register
5. Dismantle Article Register
6. Unserviceable Articles Register
7. Log Book of Vehicle
8. T&P Register
9. Record of Muster Rolls with initial appointment and orders of the competent authority
in original
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. 3, 6, 9, 10(P) & 11(P) were not
produced to audit for inspection. The J.E. has given the certificate in r/o the record at S.No.
3,7, 9 & 12. Either the record is not 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-75, Vivekanad Puri, 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, QUTAB ROAD (LOSS OF RS. 658/-)

During the physical verification of Store, the items of store as tabulated below were
found short. The shortage comes to Rs.658/ - (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 site Rate
01 64 M S Oxidised 35 31 04 Rs.22/ 88/-
Tower Bolt
02 96 G I Union 13 09 04 Rs.80/- 320/-
25mm
03 167 15mm Stop 142 132 10 Rs.13/- 130/-
Cock Iron
04 169 15mm G I 14 08 06 Rs.20/ 120/-
Socket
Total Rs 658/-

PARA NO.-3: CHECKING OF ATTENDANCE REGISTER

A statement prepared showing leave availed by the employees working in JE (Store),

as taken from the attendance register produced (attached at Annexure A). The title of leave,
sanctioned there and its subsequent entries in Service Book could not be verified by the Audit
in the absence of Personal Files and Service Books. ZE (W), S.P.Zone/DDO may please
ensure that the leave availed by the staff has been properly accounted for and furnish a
certificate for the same to audit. It has been observed that some staff are running absent for
months. DDO is requested to get the same checked and necessary administrative action may
be started against them.

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 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 initialed 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 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.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 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. Copies of work order & M B’s vide which material was received not produced to
audit.
5. The physical check of stores should be conducted by A.E. concerned time to time and
results noted in the stock book.
6. Material/Item received from site should also be attested by the AE concerned while
taking it in the respective stock register.
7. Bio Metric No. of the employees not mentioned on the Attendance Register. 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.
8. The site for which material issued was not mentioned in the stock book.
9. Page No. of stock book not mentioned in Gate Passes.

INTERNAL AUDIT OFFICER

ZAP/S.P. ZONE