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NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT


CITY SP ZONE

No. F.______/IAD/ZAP/CSPZ/2019 Dated:

Please find enclosed the audit inspection report of the accounts of M&CW Store,
Gulabi Bagh, City SP Zone for the period 17.08.2017 to 06.12.2018 Para-wise
replies/comments are sent to the office of the undersigned within a period of two weeks.

INTERNAL AUDIT OFFICER


Z.A.P/CITY SP ZONE

Sh. Dharambir Dabas


Storekeeper (M&CW Store),
Gulabi Bagh, City Zone

Through Addl. DHA (M&CW)

Copy to:

1. DCA (IAD) for information please.


2. Office Copy

INTERNAL AUDIT OFFICER


Z.A.P/CITY SP ZONE
NORTH DELHI MUNICIPAL CORPORATION
INTERNAL AUDIT DEPARTMENT
CITY SP ZONE

No. F.______/IAD/ZAP/CSPZ/2019 Dated:

Subject: Physical verification & Test Check Audit of M&CW Store Gulabi Bagh, City
Zone for the period 17.08.2017 to 16.12.2018

INTRODUCTION:

The Test check and physical verification of the accounts of M&CW Store Gulabi Bagh,
City SP Zone, was conducted by Zonal Audit Party, comprising Sh. Dharmendra Kumar, I.A.O.,
Smt. Asha Rani, A.A.O.,Smt. Kiran Negi, Auditor & Sh. Subhas Chand Mishra, Auditor. The
audit was conducted during 06.12.2018 to 11.12.2018.

Sh. Dharambir Dabas was holding the post of store Keeper at M & CW Store, Gulabi
Bagh during the audit.

AIMS AND OBJECTIVES

The primary aim of the department is to receive medicine from approved agencies and
distribute medicine & General items to M&CW Centers of North Delhi Municipal Corporation.

H.O.D./H.O.S./D.D.O’s/CASHIER

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

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


1 DHA Dr. S.K Arora Sh. Dharambir Dabas --
Addl.DHA(M&CW)

Budget Allocation and Expenditure for the year 2014-15

Budget Year Expenditure upto year ending Excess/Saving


Incorporated in the report

Maintained in M&CW, Store.

Statutory Audit:
Statutory audit report was not produced.

Vacancy Statement:

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

Maintained in the office of Addl.DHA, M&CW.

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

Old Audit Report:


There were 118 audit paras outstanding in respect of M&CW store Gulabi Bagh, City
Zone. The department has not made effective compliance of these paras. These paras have been
incorporated with current audit report.

Period of Paras
Sl. Date of No & date of letter under
account Para settled Outstandin
No. audit which Report was issued
audited gMoney
Nos. Nos. of G.P MVP value
of Paras .
Paras Settled
01 1970 25.08 to F.130IA/R/G-1/71/1195 05 05 --------
03.09.1970 Dt. 16.01.1971
02 03 to No.138/IAD/DAP- 07 04 03 Rs.5240/-
09.04.1979 III/Engg/RG/79/994
Dated 02.05.1979
03 1979-80 08 to F.149/IAD/DAP/III/KG/80 12 09 03 Rs.26495.79
11.05.1980 Dt. 31.10.1980
04 01.09.83 to 24.02 to 261/IAD/DAP/III/86/265 04 02 02 --- -----
26.02.1986 04.03.1986 Dated 10.04.1986

05 01.04.82 to 12 to F.240/DAP/III/IAD/83/488 03 01 02 --- -----


31.08.1983 19.09.1983 Dated 05.12.1983
06 1988-89 to 25 to F.348/IAD/DAP/III/90/36 06 05 01 Rs.470/-
24.01.1990 30.01.1990 Dt. 01.03.1990
07 1992-93 to 14 to F.661/IAD/CZ/93/73 06 04 02 Rs.563/-
14.05.1993 20.05.1993 Dt. 36.08.1993
08 25.05.96 to 27 to F.825/IAD/ZAP/CZ/97-99 03 03 ------- --------
27.05.1997 30.05.1997 Dt. 11.07.1997
09 28.05.97 to 20.04.1998 F.860/IAD/ZAP/CZ/98/53 03 02 01 Rs.165/-
20.04.1998 Dt. 01.06.1998
10 21.04.98 to 15.06.1999 F.1002/IAD/ZAP/CZ/99/161 06 04 02 Rs.650-114=
15.04.1999 Dt. 09.09.1999 Rs. 536/-
11 16.06.1999 to 22.06.2000 F.1057/IAD/ZAP/CZ/2000/179 03 02 01
22.06.2000 Dt. 09.08.2000
12 23.06.2000 to 18.06.2001 F.1099/IAD/CZ/2001/303 03 02 01 Rs.96/-
17.06.2001 Dt. 08.08.2001
13 19.06.2001 to 13.05.2002 F.1145/IAD/CZ/02/421 03 02 01 Rs.105/-
13.05.2002 Dt. 24.07.2002
14 14.05.02 to 17 to F.1182IAD/CZ/2003/539 04 03 01 Rs.134/-
17.04.2003 23.04.2003 Dt. 16.09.2003
15 18.04.03 to 19 to F.1233/IAD/CZ/04/628 05 03 02 Rs.240/-
19.04.2004 23.04.2004 Dt. 08.06.04
16 20.04.04 to 25.04.2005 F.1283/IAD/ZAP/CZ/2005/708 05 05 ---- --- ---
25.04.2005 A Dt. 08.06.2005
17 26.04.05 to 20.04.2006 F.1332/IAD/ZAP/CZ/06/789 05 04 01 --- ---
20.04.2006 Dt. 07.06.2006
18 21.04.06 to 24.04.2007 F.1372/IAD/ZAP/CZ/2007/884 05 04 01 Rs.222/-
24.04.2007 Dt. 07.12.2007
19 25.04.07 to 19 to F.1411/IAD/ZAP/CZ/2008/37 06 05 01
23.05.2008 23.05.2008 Dt. 01.09.2008
20 24.05.08 to 22 to F.1432/IAD/ZAP/CZ/2009/169 06 05 01 Rs.187/-
28.05.2009 28.05.2009 Dt. 10.02.2010
21 28.05.09 to 31.08.2010 F.1468/IAD/ZAP/CZ/ 07 06 01 Rs.118/-
31.08.2010 2011-12/282 Dt. 12.09.2011
22 01.09.2010 to 10 to F.1509/IAD/ZAP/CZ/2014/432 05 04 01 Rs.238/-
10.07.2013 17.07.2013 Dt. 25.03.2014

23 11.07.13 to 19 to F.1534/IAD/ZAP/CZ/2014/463 08 nil 07 01 Rs.600/-


21.08.2014 21.08.2014
24 22.08.2014 to 27 to F.1596/IAD/ZAP/CZ/2016/92 05 nil 04 01 Rs.393.40
31.08.2015 31.08.2015 Dated 09.09.2016
25. 01.09.2015 to 16 to F.1622/IAD/ZAP/CZ/2017/185 05 nil 04 01 Rs.209.18
16.08.2017 21.08.2017 Dated 08.12.2017

130 12 89 26 Rs.35,822.18

Details of Current Recovery (Audit period 01.09.2015 to 16.08.2017)

As Store Keeper M&CW Store Gulabi Bagh has deposited the Amount Rs. 301/-
into Municipal Treasury vide G-8 No. CE 61982 dated 24.12.2018 so the para may be
treated as settled.

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


(In Rs.) Recovered
02 Rs. 301.00 301 Nil

The internal audit report has been prepared on the basis of information furnished and
records made available by the M&CW Store, Gulabi Bagh.

The ZAP/City-SPZ disclaims any responsibility for any misinformation and/of non-
information on the part of auditee.

INTERNAL AUDIT OFFICER


Z.A.P/CITY SP ZONE
PART No. II (Current Audit)

The following record was requisitioned for Audit/Scrutiny on test check basis vide the
office Memo No. 01/IAD/ZAP/CZ-SPZ/2018 dated 06.12.2018

1. Stock Book.
2. Indent/ Challan
3. Purchase File
4. Property register
5. Approval register
6. Sample register
7. Attendance register
8. Log Book of vehicle.
9. Budget register.
10. Any other auditable records.

PARA NO. 1: NON PRODUCTION OF RECORD.

Out of the above mentioned /requisitioned record, the record mentioned at. S.No.04,05 &
06 was not produced to audit and record mentioned at S.No 03 was partly produced. Either the
record was not maintained or production of the same appears to have been avoided. Reason for
which may be explained to Audit. In case any discrepancies found at any stage in the record
remained un-checked other than produced, then it will be the sole responsibility of the concerned
officer/official/In charge of the store.

As a result of audit of M & C.W store Gulabi Bagh & 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 M&CW STORE GULABI BAGH (RECOVERY OF RS.301/-

During the physical verification of Store, the items of store as tabulated below were
found short. The shortage comes to Rs 301.59 (approx.), the unit rate of which has been obtained
from the Store Keeper Incharge of the M&CW Store. An Audit Memo No.
02/IAD/ZAP/CSPZ/2019 dated 10.12.2018 regarding recovery of Rs. 301/- on account of
shortage found on physical verification of Medicines was also issued to the Store Keeper
Incharge of the M&CW Store 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 accordingly.

As Store Keeper M&CW Store Gulabi Bagh has deposited the Amount Rs. 301/-
into Municipal Treasury vide G-8 No. CE 61982 dated 24.12.2018 so the para may be
treated as settled.

Online Stock Status report on 06.12.2018 on closing basis

S.No S. No. @ online Stock Item As per S.B As per site short Amount
Book
01 28
Tab. Ferrous Sulphate 774000 773800 200 Rs.24.58
200 mg (Sugar
Coated)
02 32
Fusidic Acid 2% 31500 no 31498 no. 02 no. Rs.45.06
cream
42 Ofloxacin 50 mg 23400
03 23390 10 Rs.70.60
46 Oral Rehydration Salt 20800 20780 20 Rs.54.00
04

05 55
Oint Povidone 8080 8075 05 Rs.41.20
Iodine 5%

06 66 Tab. Calcium 2076000 2075850 150 Rs. 66.15


Carbonate

Total Rs.301.59 rounded off Rs. 301/-

PARA NO.-3: IRREGULARITIES IN EXPENDITURE UNDER BUDGET


ALLOCATION.

As per statement of budget allocation and expenditure provided by the department for the
year 2017-18 & 2018-19, it was noticed that department had failed to keep proper watch on the
allocations & expenditure during the financial year. The detail of the same is given below:-

Budget Allocation and Expenditure for the year 2017-18 & 2018-19

S. Budget Budget allocation Year Expenditure upto Excess Saving


No. Head year ending

2017-18

1. 50-1098 400 Lac 2017-18 Rs. 3,73,57,551/- -------- Rs.26, 42, 449/-

2. 50-1122 25 Lac 2017-18 Rs. 11,55,105/- -------- Rs.13, 44, 895/-

3. 50-1187 50 Lac 2017-18 Rs. 35,52,506/- -------- Rs.14, 47, 494/-

2018-19

4. 50-1098 450 Lac 2018-19 Rs. 2,72,32,706/- -------- Rs.1, 77, 67, 294/-

5. 50-1122 20 Lac 2018-19 Rs. 12,26,691/- -------- Rs.7, 73, 309/-

6. 50-1187 50 Lac 2018-19 Rs. 17,69,153/- -------- Rs.32, 30, 847/-

Addl.DHA (M&CW) 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 department 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 under their
respective head. Reasons for the above irregularities be explained to audit

PARA NO.4: CHECKING OF ATTENDANCE REGISTER

A statement showing the leave availed by the employees as per attendance register of
M&CW store Gulabi Bagh, City Zone during the audit period is as under –

S.No. Name of employee leave Leave Title


& designation
01 Dalip Kumar, F.W.W. 13.11.17 to 24.11.17, 6.3.18 to 18.3.18 Earned leave
02 Surinder singh, 05.05.2017 to 18.05.2017, 19.6.18 to 29.6.18 Commuted leave
Cleaner 15.9.18 to 11.10.18 Earned leave
03 Joginder, Driver 11.12.17 to 22.11.17, 11.12.17 to 22.12.17 Earned Leave

04 Prem Singh, Sr. 30.5.18 to 20.6.18, Commuted leave


Pharmacist
05 Vijender Kumar, 12.12.17 to 21.12.17 Earned Leave
Cleaner
06 Rishi pal 08.05.17 to 17.05.2017 Earned Leave
Driver

During the course of checking of attendance register so produced by the M&CW store
Gulabi Bagh , 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 M&CW Store, and also no
leave sanctioning/regularization orders were produced to audit, the leave availed could not be
verified by audit. Addl.DHA (M&CW) 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 overstayal of leave.

PARA NO.5: OTHER AUDIT OBSERVATIONS:-

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


maintenance of the S.B.2017-18 & 2018-19 of M&CW Store had been noticed.

(i) There are cutting and overwriting in the entries, which had not been authenticated by
the responsible officer. Cutting and overwriting is completely forbidden and must be
avoided.
(ii) The periodical inspection of stores should be made by the competent authority and a
certificate of verification of stores with its results should be recorded but the same
had not been done.
(iii) Stock Book was not page numbered and paging certificate by the competent authority
at the beginning of the register was not given.
(iv) In some cases, copy of FDR which is mandatory to be submitted by the supplier has
not been obtained from the supplier by the department.
(v) No record regarding the Casual Leave taken by the employees had been maintained in
the store.
(vi) The deptt, had not produced the record i.e. Biometric Attendance Sheet in r/o of the
employees marking their attendance in the Biometric system, to the audit. It was
advice to keep the copies of Biometric Attendance Sheet in the M&CW Store, Gulabi
Bagh.
(vii) Some Medicines are lying on the floor.
(viii) One room was locked and store Incharge not opened the room.
(ix) In the Indent, the signature of Doctor not found.
(x) In the Budget Watch Register for the year 2017-18 & 2018-19 no supervisory
Officer’s signature and date were available and paging certificate was also not given
in the beginning of the Register.

INTERNAL AUDIT OFFICER


ZAP/CITY SP ZONE

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