NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT

S.P.ZONE.

No.F__________/IAD/ZAP/SPZ/2013/ Dated:-_____________

Sub:- Physical verification and test check audit report on the account of Division
EE-XVIII, kashmiri Gate, S.P.Zone for the period 07.01.2012 to 15.01.2013.

Please find enclosed herewith the Audit Inspection Report on account of records of
the office of Executive Engineer, Div. XVIII, Kashmiri Gate, for the period 07.01.2012 to
15.01.2013. Para wise replies/comments be sent to the office of the undersigned within a
period of the four weeks of the receipts of this report.

Internal Audit Officer

ZAP/S.P.Zone

Ex. Engg.-Div. XVIII,

Kashmiri Gate
S.P.Zone

Copy to:-
1. Supdt. Engineer/S.P.Zone for n.a. please
2. D.C.A. (I.A.D.) for information pl.
3. Office copy

Internal Audit Officer

ZAP/S.P.Zone
 NORTH DELHI MUNICIPAL CORPORATION
INTERNAL AUDIT DEPARTMENT
S.P.ZONE.

No.F__________/IAD/ZAP/SPZ/2013/ Dated:-_____________

Sub:- Physical verification and test check audit report on account of Division-XVIII ,
kashmiri Gate,, S.P.Zone for the period 07.01.2012 to 15.01.2013.

INTRODUCTION:-

The I.A.R. on the accounts of Division-XVIII, Kashmiri Gate of S P Zone. was conducted by the
ZAP/S.P.Zone comprising of Sh. Manoj Kumar Naresh, I. A. O, Sh. Pradeep Singh Rawat, A.A.O, & Sh.
Subhash Chand Mishra, Acctt. Asstt. The audit was conducted from 15.01.13 to 31.01.13.

Sh. S.C. Arya held the post of Ex. Engg. Div. XVIII at the time of audit.

AIMS AND OBJECTIVES

The main aim of the Division-XVIII is to provide basic facilities & const./maintenance of
roads, nallahs, footpaths, school buildings, community Centers, etc.

HOD/H.O.S/D.D.O’s/CASHIERS

The following officials have served as HOD/HOD/DDO/Cashier during

S. No. HOD Head of Office DDO Cashier

S/Shri S/Shri/Ms. S/Shri/Ms. S/Shri/Ms.
1. Sh. Anil Prakash Sh. S.C. Arya Sh. S.C. Arya Sh. Bhupender
Sharma

Budget Allocation and Expenditure for the year

Budget Year Expenditure up to year Excess/Saving

ending
Mentioned in the
Report

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 Vacant

Sanctioned
1 Group A 01 01 Nil
2 Group B 10 09 01
3 Group C 03 02 01
4 Group D 12 08 04
Daily Wager/ 05 05 Nil
Substitute
Total 31 25 06

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 589 audit para’s outstanding the department has made compliance of as such 30 para’s
settled. The remaining 559 Paras have been incorporated with current audit report as part-I (old audit
report).

(A)
S. No. Year Total Para’s Para Settled Para no. of Outstanding
Settled Para’s para’s with Para
No.
1 1968-69 25 13 1 to 13 12
2 1973-75 47 - - 47
3 1975-80 30 - - 30
4 1975-80 30 - - 30
5 1980-81 80 - - 80
6 1980-85 13 - - 13
7 1985-90 19 17 1,2,5 to 19 02
8 1987-88 05 - - 05
9 1989-90 06 - - 06
10 1991-92 04 - - 04
11 1992-93 05 - - 05
12 1990-94 22 - - 22
13 1994-97 17 - - 17
14 1994-96 04 - - 04
15 1994-97 04 - - 04
16 1997-98 16 - - 16
17 1998-00 16 - - 16
18 2000-01 11 - - 11
19 2001-02 17 - - 17
20 2002-03 18 - - 18
21 2002-03 17 - - 17
22 2004-05 18 - - 18
23 2005-06 29 - - 29
24 2006-07 19 - - 19
25 2007-08 27 - - 27
26 2008-09 29 - - 29
27 2009-10 32 - - 32
28 2010-11 29 - - 29
Total 589 30 - 559
 (B) Details of Old Recovery

S. No. Year Total old Amount Recovered Balance

Recovery Recovery against
In Rs. Paras (Amount in
Rs. Para wise)
1 1968-69 286.00 - 286.00
2 1973-75 2799.04 - 2799.04
3 1975-80 20068.82 - 20068.82
4 1975-80 20574.00 - 20574.00
5 1980-81 12.00 - 12.00
6 1980-85 19992.38 19992.38 Nil
7 1985-90 Nil - Nil
8 1987-88 Nil - Nil
9 1989-90 85.00 - 85.00
10 1991-92 107.00 - 107.00
11 1992-93 115.00 - 115.00
12 1990-94 2153869.00 - 2153869.00
13 1994-97 1911455.00 - 1911455.00
14 1994-96 440.00 - 440.00
15 1994-97 64.00 - 64.00
16 1997-98 2740.00 - 2740.00
17 1998-00 9251734.00 - 9251734.00
18 2000-01 807099.00 - 807099.00
19 2001-02 617130.00 - 617130.00
20 2002-03 Nil - Nil
21 2002-03 166369.00 - 166369.00
22 2004-05 2501.00 - 2501.00
23 2005-06 30.00 - 30.00
24 2006-07 Nil - Nil
25 2007-08 Nil - Nil
26 2008-09 Nil - Nil
27 2009-10 1000.00 - 1000.00
28 2010-11 41978.00 - 41978.00
Total 15020448.24 19992.38 15000455.86

Current Audit Report

Details of Current Recovery (Audit Period 07.01.2012 to 15.01.2013.):-

Para No.’s Total Recoveries (in Rs.) Amount Recoveries Balance (in Rs.)
16 25000/- Nil 25000/-
21 2767/- Nil 2767/-
22 31088/- Nil 31088/-
Total 58,855/- Nil 58,855/-

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.
PART NO.-II (CURRENT AUDIT)

The following record was requisitioned for Audit/Scrutiny on test check basis vide letter
No.IAD/ZAP/SPZ/2013/01, dated 15/01/2013.

1. Paid vouchers (Plan/Non-Plan)

2. Tender Files/Agreement Files
3. Accounts File
4. Work Order Register
5. Measurement Books of paid vouchers
6. Budget Watch Register along with Budget allocation file/letter
7. Unpaid Voucher Records
8. Contractor’s Ledger, (if any)
9. G-8 Receipt Books along with challans and G-8 Issue Register with requisitions;
10. Daily diaries of JE, AE and EE drawing conveyance allowances
11. PF & SB of Staff along with ECRs
12. Stock Books of the JEs of the Wards.
13. Stationery Register & MB Issue Register(old & new)
14. Hindrance Register
15. Circular File
16. Permanent Advance Register, if any
17. Imprest Register
18. Tender Opening Register
19. Cash Books
20. Tender Form Sale Register
21. Property Register
22. Certificate regarding losses due to theft and file etc. along with FIR, if any
23. Latest External Audit Report
24. Income verification certificate duly signed by the Zonal ACA
25. Work Register
26. sanction in original of initial appointment of Muster Roll employee;
27. Muster Roll Issue Register(blank)
28. Demand Register (verified /unverified demands)
29. Printed contractors bills/forms issue register with requisition
30. Earnest money Record
31. List of Black listed Contractors
32. Cheque Register
33. Disbursement Register
34. O.T.A. records, if any
35. Log Book of vehicles, if any
36. Children Education Allowance Register
37. Postage Register
38. Muster Roll unpaid amount record, if any
39. Uniform Record
40. Road cutting charges record
41. Records of purchases made by the sub division, if any
42. List of condemned articles and Auction Record
43. Attendance Register
44. Bill Diary Registert
45. Any other auditable records required during the course of audit.

PARA NO.-1 NON-PRODUCTION OF RECORDS

Out of the above requisitioned records, items at Sl. No.1, 2 & 3(Partly),4,6(Partly, only BWR),7,
9(P), 11(Partly),12,13,17,19,27,28.29(Partly) & 37 were shown/produced to audit for verification and test
check audit. Rest of the records requisitioned vide above mentioned requisition has not been produced to
audit for inspection. One reminders (audit memorandum) vide no. IAD/ZAP/SPZ/09 had been issued to
the deptt. for the production of record at the earliest, but the department failed to provide the complete
requisitioned record. Thus, Audit has observed that either the record is not maintained or the production
of the same appears to have been avoided, reasons to which best known to the department. If, any
irregularity/discrepancy is found in the non-produced record, at any stage, the whole responsibility will lie
on the department itself.

However, as a result of test check audit of the records whatever produced to audit, the following
discrepancies/omissions/errors etc., came to the notice of the audit.
PARA NO.-2: IRREGULARITIES IN BUDGET WATCH REGISTER.

Budget register is maintained to record the expenditure incurred on various items of expenditure
under different heads of account. It should be maintained in prescribed standard form to enable to keep
watch over the progressive expenditure under different heads of account. During the course of audit , the
following irregularities were noticed in the maintenance of Budget Register:-

1. Budget Register was not page numbered and certificate to the effect that the register contains
pages 1 to____was not given and initialed by the official maintaining it and by any superior.
2. It was not maintained in the prescribed standard form. The complete detail of expenditure
such as date, description of the expenditure, sanction/approval of the authority, voucher/bill
no etc. was not found.
3. Detail of Budget allocated under different heads of accounts from the HQ to the Deptt. and
also detail of subsequent allocations should be recorded in the register for ready reference so
as to keep a watch over the expenditure but the required detail was not given in the register.
4. Entries made in the budget register were not initialed by the official maintaining it and also
by the DDO.

Non maintenance of the Budget Register in accordance with the prescribed procedure be
explained to audit

PARA NO.-3: IRREGULARITIES IN THE G-8 BOOKS & NON-SUBMISSION OF INCOME

VERIFICATION CERTIFICATE:

During the scrutiny of the G-8 books of Div-XVIII, the following G-8 Books with challans were
actually produced to Audit:-

1. G-8 no.AL70901 to 70962(used) and 70963 to 71000(unused)

During audit of these G-8s, audit has observed the following irregularities: -

(i) The columns provided in the G-8 books were not properly filled up;
(ii) Complete narration not given while depositing the amount in Mpl. Treasury.
(iii) The G-8 books were in torn condition.
(iv) There were so many cuttings and overwriting in many G-8 receipts without attestation by the
competent authority. Cuttings and overwriting in the G.8s should be avoided.
(v) It was noticed that in many G-8’s receipts all three copies of G-8’s were found in G-8 books,
Even the copy meant for the applicant/contractor were also found enclosed in the G.8 books.
some examples are given below:

Sr. No. G-8 No. Name of Recipient Date Amount

1. AL 70940 Sale of six tender 02.03.12 3000/-
form@ Rs. 500/- each
2. AL 70941 M/s Design wall 02.03.12 18500/-
(India) Pvt. Ltd
3. AL 70943 M/s Design wall 14.03.12 3550/-
(India) Pvt. Ltd

The income verification certificate issued by the Zonal Treasury through Zonal Accounts
Authority with regard to income/money deposited by the depttt. through G-8 books/challan were
not produced to audit.

PARA NO.-5: IRREGULARITIES FOUND IN THE M.Bs. AND ITS ISSUE REGISTER:

The head of the office shall maintain the register of M.Bs. wherein all the M.Bs. received from
the HQ and further its subsequent issue to the officials of the deptt. Should be recorded.

During the course of audit of the deptt.the following irregularities were noticed:-

1) M.B. Stock register was not page numbered and no certificate regarding containing total page
no. was not given.
 2) There were so, many cuttings and overwritings in the stock register and had not been attested
by any superior authority.
3) M.Bs were being issued to the J.Es without any proper requisition and also acknowledgement
from the recipient was not obtained.
4) The receipt of the M.Bs. from the HQ should be verified by the Divisional Accountant but the
same was not done.
5) No supervisory check of the register was found.
6) DDO shall check the M.B. issue registers every month and record a certificate in token of the
verification but D.D.O. has nowhere verified.

The competent authority may look into the matter and issue necessary directions to the official
concerned for proper maintenance and upkeep of the register.

PARA NO.6: IRREGULARITIES FOUND IN THE MUSTER ROLL ISSUE REGISTER:

Muster Roll Issue Register was produced for 2012-13 to audit for scrutiny. Following
irregularities were noticed:-

(i) M.R. issue register was not page numbered and also paging certificate was not given.
(ii) Printed numbers of the Muster Roll Forms, got issued from the H.Q., were not found
mentioned in the Stock Register which is a mandatory requirement.
(iii) No details/particulars of the work/purpose for which the Muster Roll Forms issued, had been
mentioned on the requisitions, submitted by the J.Es
(iv) None of the requisition had been diarized.
(v) At the time of issue, the S.No of M/R forms should also be mentioned on the requisition slips
but during the scrutiny it was noticed that deptt. had not mentioned the S.Nos of M/Rs forms
on any of the requisition slips.
(vi) It came to the notice of audit that Nos of M/R employees was not mentioned in M/R Register,
for which Muster Roll form had been shown issued. Some examples are such as M/R no.
8236 issued on 13.01.2012, M/R no. 8237 issued on 14.02.2012 & M/R no. 8238 issued on
17.02.2012 and there was no mention of no of M/R employee in M/R register while issuing
M/R form. It needs clarification.
(vii) The deptt had not produced the record of the Requisitions/Indents vide which M/R forms
were got issued from the H.Q. Maintenance of the record of requisitions/indents is
mandatory. Reasons for non maintenance of the required record be explained to audit.

PARA NO.7: IRREGULARITIES IN THE CASH BOOK :

Cash Book is one of the most important accounts record of the department. It should be
maintained strictly in accordance with the rules/regulation & in prescribed format. All the monetary
transactions should immediately be entered in the cash book as soon as they occur. During the course of
audit of Deptt. the following discrepancies have been noticed in maintenance of the cash book.

The following irregularities were noticed during the test audit of the Cash Book of Division EE(Pr)
(Div-XVIII).

1. The cash book was not page numbered and also no certificate regarding no. of pages was
available on the cash book.
2. Though the signature of the DDO/EE and the Accountant is available after the total payment of
the particular day but no separate signature made for the payment to each contractor.
3. There were so many cuttings and overwritings in the Cash Book and had not been attested by any
superior authority.
4. The statement of daily & monthly income and expenditure not shown at the end of the each
day/month.
5. A cheque vide no 052425 dated 06.08.2012 had been shown cancelled and pasted in the cash
book but no signature of EE/Acctt was found in the said cheque and also the reason of
cancellation with complete detail was also not shown in the Cash Book.
6. The income Cash Book for each financial year has not been maintained separately and it was
noticed that the deptt. continued till date the cash book which was started w.e.f. 2008-09.
7. No detail in r/o Permanent Advance of Rs.5000/- sanctioned for opening of DDO account was
also available in the Cash Book . EE may clarify the situation to Audit.
8. The hard copy of the Bank Statement for the account, also not shown to Audit for cross check.
9. Bank Reconciliation Statement for the Bank Accounts being operated in the Division for
contractor’s payment and for Bank Account of DDO for current and previous periods was not
prepared & produced to audit. Either the same is not prepared or production to audit is avoided,
 the reason best known to the department. Without BRS, the deptt.cannot keep proper check on
financial transactions in the Division. Non preparation of the BRS is a serious lapse on the part of
the deptt.
10. Detail w.r.t. voucher of transfer/RTGS, cheque no., date, demand no. Head of account etc was
not given in the cash book due to which release of demand from time to time could not be
reconciled.
11. The copy of the demand should be attached with the paid vouchers but during the course of audit
of the vouchers it was noticed that the copy of the demand was not enclosed with the vouchers
and also the same was not made available to audit for scrutiny. Which needs clarification?

Non-maintenance of cash book in accordance with the prescribed procedure be explained to audit.

PARA NO.8: IRREGULARITIES/DISCREPANCIES NOTICED IN THE WORK ORDER.

W.O. No. 32 dated 18.09.08,.Name of Contractor-M/s Ajay Bros,

Cont. cost.-21,96,532/-, H/A:-XL-IX-E, Name of Work- Imp of toilet block, offices & Asthi Kalash
room at Pachkuian Cremation Ground …..

(a) As per agreement Date of start and completion of the work was 27.09.08 & 26.03.09
respectively but the work was started on 22.04.09. The work should have been started before
the date of completion (as per agreement). Since work had actually been started on 22.04.09
i.e. beyond the date of completion (as per agreement). It is a clear cut case of violation of
instructions of E-in-C. As per the above circular work could not be started after the date of
completion (as per agreement). Deptt. Should have started process for obtaining the approval
to close the work and initiation of action against the contractor as per the T&C of agreement
& standing instruction issued by the higher authoritiesw in this regard. It needs clarification.

(b) As per the V.No. 2P/XVIII dt. 20.09.12 , IIIrd R. A. Bill, loose sheets bearing measurement
and calculation of the work added in the bill were not signed by JE/AE/Ex.Eng. and also it is
evident that the calculation have not been checked, since the same were not found crossed by
Div Acctt & Acctts Clerk.
(c) On the IInd last page of the bill, JE recorded the date of measurement as 02.01.12 and the bill
form was got issued on 29.02.12 i.e. after one month & 29 days which establish the
violation of standing instructions of E-in-C & Commissioner issued vide Circular no ---------
----- dt.-------------.

WORK ORDER NO.15 dated 06.02.12, Name of Contractor-M/s M.C. Const., Time of completion-
01 month, Cont. Value-58,20,918/-, Name of work: Restoration of Panchkuian Road [……] by pdg
from Sucheta Kriplani Hospital to R.K. Mission Metro Stn. (LHS) furniture mkt side., S/H: stg of
carriage way by providing dense carpeting from Sucheta Kriplani Hospital to R.K. Mission Metro
stn in S.P.Zone, Rate-58% above

a. As per T&C no 02 of W. O. No.15 dated 06.02.12, agreement should be executed within

seven days of receipt of work order but stamp paper on which agreement made shows that it
was purchased on 19.04.12 i.e. after two month of work order issued, this needs clarification.
b. The Agreement so made between the contractor and MCD was without seal of Corporation.
The G-8 no. and date with regard to Earnest Money was not mentioned in the agreement.
c. No signature of Competent Authority at the test check report placed in the account file.

d. Site register was not signed by the AE.

e. Bitumen consumption report was not signed by the JE/AE.

WORK ORDER NO.5 DATED 08.07.11: Name of Contractor-M/s Satya Prakash & bros (P) Ltd.,
Period of completion-4months, Cont. Value-20,48,806/-, H/A:- L.A.ROAD, Name of work: C/o
grade separator at Rani Jhansi Road…. SH:- Imp of road surface by P/L bitumen macadam Rani
Jhansi Road in S.P. Zone.
 1. No Test Report in r/o the material used in the work was available in the file.
2. Third party test check report was not available except Mpl Lab.It needs clarification.
3. Labour report was not available in the file except engagement two Civil Engg.
4. The seal of the corporation was not found on the Agreement.
5. As per actual D.O.C. was 11.09.11 but the bill was prepared and entered in MB on
14.11.11 i.e. after two months of completion of work. Needs clarification.
6. As per transaction list only one contractor participated in the tender process. So it being
the single tender case approval from higher Competent authority was required to be taken
which was not taken. It is a case of violation of instructions of Finance, needs
clarification.

WORK ORDER NO.4 DATED 30.06.11: Name of Contractor- M/s Aggarwal Const Co.,Period of
completion-4 months, Cont. Value-1,66,02,539/-, H/A- 66-2882, Name of work: Restoration of
Panchkuian Road [……] by pdg from Sucheta Kriplani Hospital to R.K. Mission Metro Stn. (LHS)
furniture mkt …SH: Imp of drainage C/o footpath, cycle track Duet & widening of Panchkuian
Road from Sucheta Kriplani Hospital to R.K. Mission Metro Stn in S.P.Zone, Pahar Ganj. Rate :-
16.16% above

1. No supporting document regd. deposition of Tender cost by the contractor was available in the
file.

2. Loading and unloading time is not found mentioned in the RMC receipt no 1482, 1480, 1490,
1491, 1486,1487, 1488 of dated. 22.06.12, No. 549 of dt. 14.02.12, no 561 562 of dt 16.02.12, no
611,612 dt 21.02.12 & no 623, 324 of dt. 22.02.12 issued from M/s Vinod kumar for quantity
7cum each of M25 grade ready mix concrete. It needs clarification.

3. There were so many cuttings and overwriting in the M.B. and had not been attested by any
superior authority.

4. The agreement so made between the contractor and MCD was without seal of the corporation.
The G-8 no. and date with regard to Earnest Money was also not shown in the agreement.

5. In the delivery challan no 1248,1300,1251,1254,1257, 1260,1262,1264,1266 of dated 22.06.12 &

challan no. 1290,1292,1294,1296,1298 of dated 25.06.12 ( each for 7.5cum) of ready mix
concrete of M25 grade from M/s Raj Ready Conctrete Works the customer name, date, delivery
point, vehicle no etc. were filled up with ball point pen. It should be computerized.

6. The work order awarded on 30.06.11 and period of completion was 4 months, but the work was
still running i.e. on 16.01.2013. The sanction of extention of time was not available in the file and
also no Hindrance Register was not placed in the file. It needs clarification.

WORK ORDER NO.03 DATED 30.06.11: Name of work: C/o R.O.B on D.B Gupta road across
Qutub Road by pdg…… in place of arch bridge. S/H:- C/o footpath, cycle track, on approach of
rob (Sheila cinema) S.P.Z .

1. The Agreement so made between the contractor and MCD was without seal of Corporation. The G-8
no. and date with regard to Earnest Money was not mentioned in the agreement.
2. It may be ensured that the Tender cost from all the contractors who had downloaded the tender
documents had been recovered.
3. Labour report was not filled by the contractor.
4. Time of completion of the work was 4 months and no sanction for the extension of time was found in
the file so the reason for release the payment without EOT be explained to audit.

PARA NO.9 IRREGULARITIES FOUND DURING AUDIT OF PAID VOUCHERS.

During the course of test audit of the paid vouchers (plan/non plan) so produced to audit, following
irregularities were noticed.

1. No budget slip had been mentioned on the face of many vouchers e.g. V. No. 15P dt 31.03.12.
2. In many vouchers, no vouchers nos had been mentioned e.g. bill no 60049 w.o.no. 08 dt 29.08.11.
3. In V No. 6P dated 29.11.12 (W.O.No. 11 dt 30.06.08, bill no. 60099) the date of entry in the MB by
JE is not mentioned. Revenue stamp was also not affixed & signed by the contractor.
4. No date was mentioned in voucher no 6P & 7P of dated 14.08.12 (bill no 60026 & 60036).
5. Voucher no 6P dated 11.07.12 for security refund to M/s C Prakashan & Co. for Rs 6,48,096/- was
entered as V.No. 1P dated 11.07.12 in cash book (Plan/Non-Plan), needs clarification.
6. In V. No. 20P dt 31.03.12 (W.O.No 11 dated 26.09.11) of M/s Allied Engineers, the work was
completed as per actual on 01.11.11 and was entered in the MB by JE on 25.01.12 i.e. after one
month from the date of completion of work, needs clarification.
7. Revenue stamp also not affixed in V.No,. 20P dt 31.03.12.
8. In so many vouchers, the contractors had not dated their signatures, such as V. No. 15P dt 31.03.12,
(W.O. No. 03 dt 30.06.11), V. No. 1NP dt 23.03.12, (W.O. No. 04 dt 30.06.11), V. No. 14P dt
26.03.12, (W.O. No. 04 dt 24.02.06), V. No. 10P dt 20.03.12, (W.O. No. 03 dt 30.06.11).
9. Bill no 60069 issued to M/s Natraj Cons Co. for W.O.No.33 dt 26.10.11 do not bear voucher no and
date. In this Voucher D.O.A.C. was 28.01.11 and entered in the M.B. by JE on 18.01.12 i.e. after one
year needs clarification.
10. Bill no. 60049 issued to M/s Rajender kumar Gupta for W.O.No. 8 dt 29.08.11 has no voucher no and
date & entered in cash book in between 9P & 10P dated 18.01.12.
11. The date of voucher no 2P was written as 08.10.10 on the voucher and 09.10.12 in the cash book,
needs clarification.

PARA NO10: IMPROPER MAINTENANCE OF THE IMPREST REGISTER

During the course of audit, it was found that the imprest register (w.e.f. Dec. 2007 & Sept. 2012
to till date) had not been maintained in a proper way. It could not be explained to audit how much imprest
money was sanctioned to the deptt and how the bills were recouped. Heavy expenditure had been shown
incurred in Imprest register. On a particular day amount had exceeded Rs. 10,000/- like on 15.10.12
expediture incurred Rs 20,138/-, on 16.10.12 Rs. 73,838/-, on 28.03.12 Rs. 22,332/-. It seems that these
expenditures were of special contingency and sanction from the competent authority was needed to be
obtained. There were many such examples wherein the expenditure is more than Rs 10,000/-. Apart from
the above, following irregularities were noticed in Imprest Register:-

1. The register was no page numbered and No paging certificate was given in the beginning of the
register.
2. The total amount of the imprest had not been mentioned.
3. Recoupment of Imprest money had not been shown anywhere in the register.
4. Scrutiny of the imprest register revealed that an amount of Rs. 6906/- (Annexure “ “) had been
incurred on the purchase of water from the market which is irregular. So the
5. The bill of Rs.73,838/- was passed on 16.10.12 and paid under head of imprest for repair of Govt
vehicle no DL-2FDH0052 alloted to E.E. Sh. S.L. Bairva, needs clarification.
6. An huge amount spent on photocopy of papers from time to time needs clarification.
7. It was also observed that expenditure made in a month, and bills of the particular month had been
passed after clubbing of all bills during the month and passed at a single time only.
8. The requisition and sanction of the expenditure not shown in the register anywhere.
9. The purchase under imprest head had been made frequently, such as purchase of paper rim made
without noting that the same was not available in the stationary deptt.

PARA NO. 12: SANCTION PAPERS OF MUSTER ROLL EMPLOYEES

During the course of audit, the documents relating to the initial appointment of Muster Roll
employees were asked for by the audit for scrutiny but were not produced. In the absence of such record,
the authenticity and genuineness of the employees engaged in the division cannot be cross-checked.

The competent authority is requested to clarify the same and a proper record of Muster Rolls
employees engaged in the division be got maintained, (if it is not previously maintained). Otherwise, in
case of any irregularity found at a later stage, the responsibility shall lie on the department itself. Further
it may also be ensured that no undue payment to muster roll employees has been made.

PARA NO.13: NON-DEDUCTION OF DRINKING WATER CHARGES IN THE

CONTRACTOR BILLS

Clause 5 of the additional conditions of the tender document provides that the contractor shall
make his own arrangement of water for drinking purpose. In case, the contractor does not make his own
arrangement of drinking water, a recovery @ ½% of the gross amount of the work done will be made
from the bill of the contractor. But the accounts files produced to audit revealed that in most of the cases
neither any documents in support of the arrangement of drinking water by the contractor himself was
available in the files nor required drinking charges had been recovered from the bills of the contractors in
most of the bills, Therefore, recovery of ½% be made in all such cases under intimation to Audit.

PARA NO.14:AUDIT OBSERVATION ON ACCOUNT OF PRINTED BILL FORM STOCK

REGISTER:

The Printed Bill Form Register so produced was w.e.f. 20.01.11 to till date. Following
irregularities were found:-

(a) Bill Form stock register was not page numbered.

(b) No paging certificate was recorded.
(c) Copies of indent/requisition slips vide which Blank printed bill forms, from the Head Quarter,
were obtained by the the department, had not been produced to audit for scrutiny. Hence
quantity received from H.Q could not be checked /verfied.
(d) In the stock register for the printed bill form, complete detail regarding the receipt of printed
bill forms was not mentioned.
(e) Signature of the recipient should be obtained at the time of issue of Bill forms But not even a
single entry of issue of bill form was there where the acknowledgement of the recipient had
been obtained.
(f) There was not checked/verified by any of the authority as required.
(g) Signature of the Accountant should be obtained at the end of each month and sign of the
EE(Pr) should be obtained at the end of each quarter year which were not found in the Bill
form Issue Register/Stock book needs clarification.
(h) Instructions contained in Circular no. EINC/ENGG./HQ/RK/2005/2246 dated 15.03.05 were
not being strictly adhered to.
(i) Name, designation and signature of the official issuing bill form was not found mentioned in
the register.
(j) Bill form issue register should be verified by the concerned Divisional Accountant at least
once in a month and Ex. Engg. Once in three month but this procedure had not been
followed.
(k) Bill form no 60083 to 60100 of previous financial financial year 2011-12 had been issued in
2012-13. But no revalidation entry made in the Stock register to use these bill forms in the
year 2012-13 needs clarification.
(l) Date of receiving of 50 nos bill form from sr. no.85151 to 85200 was not mentioned, so it
was difficult to ascertain that whether these bill form were got received in financial year
2011-12 or 2012-13.

PARA NO.15: IRREGULARITIES IN THE PAID VOUCHERS.

During the course of audit of paid vouchers under Plan and Non-Plan H/A for the period 2011-12
to till date, it came to the notice that payment had been made without affixing budget slip on the
contractors’ bills due to that it could not be ascertained whether the payment was released as per the
allocation of budget.

Detail w.r.t. voucher of transfer/RTGS, cheque no., date, demand no. Head of account etc was not
given in the cash book due to which release of demand from time to time could not be reconciled.

The copy of the demand should be attached with the paid vouchers but during the course of audit
of the vouchers it was noticed that the copy of the demand was not enclosed with the vouchers and also
the same was not made available to audit for scrutiny. Which needs clarification?

PARA NO 16: NON MAINTAINENCE OF RECORDS OF SALE/DOWNLOAD OF TENDER

DOCUMENTS AND AMOUNT REALISED THEREOF.

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 division 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. Due the non maintenance of the
record it could not be ascertained that how many tenders were sold during the audit period and how much
amount was realized on a/c of sale/download of tender documents. 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 register should be checked and verified by the Divisional Officer
concerned.

A List of the files scrutinized during the audit in which no document was kept w.r.t. the
deposition of requisite tender cost is annexed at “A”. As per the 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 exhaustive. Similar discrepancies in other cases are not ruled out hence EE 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. 17: LATE EXECUTION OF AGREEMENT:

As per CPWD Mannual, the agreement between the Divisional office and contractor who are
mutually come under any contract should be executed/signed within seven days from the date of issue of
work order by the office. But during the scrutiny of accounts files, it was found that in most of the cases,
the agreement between the contractor and the MCD was executed after a long gap after issuance of Work
Order. This needs proper attention and this practice should be avoided in future.

PARA NO.18: NON MAINTENANCE OF CEMENT/BITUMEN/STEEL REGISTER:

As per Clause 10 of the contract/ agreement, the actual issue and consumption of cement on work
shall be regulated and proper accounts should be maintained as provided in the clause of the contract. The
theoretical consumption of cement shall be worked out as per procedure prescribed in the clause 42 of the
contract and shall be governed by the conditions laid thereon. In all the accounts files, produced before
the audit, the cement/steel/bitumen registers were not attached .The theoretical statement of
cement/steel/bitumen invoices could not be verified by the audit. The reasons for non-maintenance of
relevant records as per instructions issued in this regard may be given to audit.

PARA NO.19: NON MAINTENANCE OF BLACK LISTED CONTRACTOR’S RECORD:

As per Para 35.4 of CPWD Manual Code Vol.II, each Divisional Officer shall maintain register
having the enlistment of various contractors in different classification. Whenever contractor is blacklisted,
removed or temporarily suspended from the list of approved contractor, a remark shall be made in the
register against the contractor concerned, but the register was not found maintained in the Division.

PARA-20: NON-VERIFICATION OF REMITTANCE INTO MUNICIPAL TREASURY:

As per Para 22.3..2 of the CPWD Code for a payment made into treasury, a consolidated receipt
should be prepared in Form-5D for all those remittances made into the treasury and sent to Zonal
Accounts Branch & Zonal Treasury of the concerned zone for verification in the first week of the month
following the month to which the same pertains. But it was noticed that the department failed to do so.
No Income verification certificate was being maintained.

PARA NO.-21: OBSERVATION OF ECR AND RECOVERY OF MEDICAL ALLOWANCE

PAID TO GROUP B OFFICERS (RECOVERY OF RS 2767)

1. Biometric no. of employees was not mentioned against their name.

2. Entries on a/c of payment of bonus, arrear were not recorded in the ECR.
3. The ECR was not supervised/checked by any of the senior officer/ DDO.
4. So many cuttings/overwritings had been seen at many pages.
5. Details w.r.t.tuition fee paid to the employees was not entered in the ECR.
6. On scrutiny of P. File & S. Book of Sh. Mahender Singh HC it was noticed that Medical
Allowance to the officials who was drawing the Grade Pay Rs.4200 was being paid. Hence the
recovery from the following officials be made since they have been drawing the G.P. Rs.4200/- .
 Sh. Mahender Singh, HC:-

Rs.135/- P.M. w.e.f 01/06/11 to 30/06/11 Rs. 135/-

Rs.188/- P.M. w.e.f 01/07/11 to 31/08/12 Rs.2632/-
Total Rs.2767/-

However an Audit Memo was issued vide no IAD/ZAP/SPZ/2013/07 Dated 24.01.2013 in

this regard to EE (pr div-XVIII)/SPZ, but no reply was received from the deptt.

The recovery of over payment may be made good by depositing the same into Mpl. Treasury under
intimation to audit.

PARA NO.-22: IMPROPER MAINTENANCE OF THE S.BS/PERSONAL FILES AND

RECOVERY OF EXCESS PAYMENT MADE DUE TO WRONG PAY FIXATION IN VITH CPC
(Recovery of Rs.31088/-)

During the course of test check of PF & SBs of the officers/officials it was found that PF & SBs
were not being maintained in a proper way. Necessary entries page-wise were not being done and paging
of files was also not done. Some of the irregularities were noticed in PF & SBs while checking the
fixation of pay after VI th CPC recommendation adopted in MCD and recoveries are mentioned against
each employee given as under:-

(I) PF & SB OF SH. LALIT SHARMA, JE (D.O.A. is 29.03.04)

a. Cutting/overwriting seen in S.B.

b. Leave record was not completed after 31/12/10 (E.L & HPL);
c. Personal file was not page numbered.
d. No police verification report is placed in personal file.

(II) PF & SB OF SH. MUNESH KUMAR, BELDAR

a. Personal file was not page numbered.

b. Qualification certificates copies were without attestation.
c. Leave account was not completed after 31.12.11 (EL & HPL).
d. No police verification report is placed in personal file.
e. No copy of SC Certificate is placed in personal file.

(III) PF & SB of Sh. Jagbir Singh, Beldar

a. Photograph had not been changed after 10 years in service book.

b. No supervisory sign of EE(Pr) SPZ in EL/HPL account.
c. Personal file was not page numbered.
d. Leave account is not completed after 31.12.11
e. As per GOI,s financial & supplementary rules, the annual increment will be 3%
of total pay in running pay band and corresponding grade pay rounded of the
next multiple of 10. While rounding of paise should be ignored but any amount
of rupee of more should be rounded off to the next multiple of 10. On scrutiny
of P. File & S. Book of Sh. Jagbeer Singh Beldar, it was noticed that fixation of
pay under VIth CPC was not correct as the incumbent was being paid Rs. 10.
Excess in his salary as mentioned below

S.No. Period Pay fixed as Pay Should be Recovery

1 01.07.08 7020 7010
2 01.07.09 7280 7270
3 01.07.10 7550 7540
4 01.07.11 7830 7820
5 01.07.08 8120 8110
Total Recovery Rs 757/-

The recovery of over payment may be made good by depositing the same into Mpl. Treasury under
intimation to audit.
 (IV) PF & SB OF SH. Shiv Onkar, Beldar

a. Photograph had not been changed after 10 years in service book.

b. Educational qualification entry column on page 4 of SB were left blank.
c. Though the EL was taken from 10.11.08 to 23.12.08 & 22.06.09 to 30.06.09
but it was not deducted from the EL balance.
d. Leave account is not completed after 31.12.11(EL & HPL)

On going through the scrutiny of P. File & S. Book of the said employee, it was noticed that
fixation under VIth CPC was not correct as shown below:-

S.No. Period Pay fixed as Pay Should be Recovery

1 01.01.06 6060+1800 6060+1800
2 01.04.06 6300 6300 (ACP granted)
3 01.07.06 6550 6300 (no increment)
4 01.07.07 6810 6550
5 01.07.08 7070 6810
6 01.07.09 7340 7070
7 01.07.10 7620 7340
8 01.07.11 7910 7620
9 01.07.08 8210 7910
Total Recovery Rs. 30331/-

The recovery of the same may be made good by depositing the same into the Mpl. Treasury under
intimation to audit.

However an Audit Memo was issued vide no IAD/ZAP/SPZ/2013/08 Dated 24.01.2013 in this
regard to EE (pr div-XVIII)/SPZ, but no reply was received from the deptt.

(V) PF & SB OF SHIV KUMAR SHARMA, BELDAR:

a. Photograph had not been changed after 10 years in service book;

b. Cuttings/overwritings were seen many places in the Service Book without
attestation.
c. Leave account is not completed after 31.12.11(EL & HPL)
d. Columns for entry for educational qualification, police verification etc are left
blank in the service book.
e. Personal file was not page numbered.

(VI) PF & SB OF SH. MAHESH, PEON

a. Photograph had not been changed after 10 years in service book;

b. Cuttings/overwritings were seen many places in the Service Book without
attestation.
c. Earned Leave account is not completed after 31.12.11 & HPL account not
completed after 31.12.10.
d. Columns for entry for educational qualification, police verification etc are left
blank in the service book.
e. Personal file was not page numbered.
f. No supervisory sign of EE (Pr)/SPZ was available in EL and HPL account after
2010.

In most of the files the following irregularities were noticed by audit:-

A. It was observed that column no.-8 was not signed by the employee in almost all the SBs.
B. The leave record was incompleted & not maintained properly in most of the SBs.
C. The first page of the SB showing the personal details of the incumbent were not duly filled up in
many cases.
D. Paging of most of the Personal Files was not done. The PF.s were in torn condition.
Leave applications for the period of leave entered in the leave account were not found attached in
the P.Fs in most of the cases.

PARA NO.- 23: OTHER AUDIT OBSERVATIONS:

1. In most of the Accounts Files the completion certificates attached in the files were not duly filled
up and as per the columns provided.

2. In the Stock Book for Stationery items, the signature of recipient of the material were not
obtained in token of receipt. There were frequent Cuttings and overwriting seen these cuttings
and overwriting had not been attested by any superior authority.
3. M.B.s should be issued through A.E.
4. Any amount received by way of G-8s should be deposited in the Mpl. Try. within 24 hrs of
receipt.
5. The Cement Statement, Labour Reports were not placed in many files and where these reports
were enclosed did not bear the sign. Of the J.E., A.E. & contractor. The Authority Competent
may kindly issue instruction in this regard.
6. The Muster Roll bills were being passed in the M.B.s without mentioning the age of the M/R
employees.
7. As per the instructions of Commissioner vide no. PSC/1181/2000 dated 28/11/2000, the entry in
the MB should be made within 10 days of the completion of the work and demand be sent within
15 days for payment. But the said instructions were not being followed and in most of the cases
the entries of completion was being done after 3-6 months.
8. Cuttings and overwriting were seen in most of the record and were without attestations of the
competent authority.
9. In most of Service Books, the leave record of employees were incomplete. signatures of payment
of arrears of DA, bonus, etc had not been signed by the DDO as well as Accounts Officer. The
Personal Files were not maintained in a proper way and not duly paged. In most of the cases of
Class-IV employees, the police verification certificate was not available which is a mandatory
document to be obtained at the time of regularization.

Clarifications to the above mentioned irregularities may be given to the audit at the earliest.

INTERNAL AUDIT OFFICER

IAD/ZAP/SPZ