NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT

ZAP/CITY SP ZONE

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

Subject : Physical Verification and Test Check Audit report of J.E.(Works)-Store, C-84N,
Chandni Chowk, City S.P. Zone for the period 31.01.2018 to 09.09.2019.

Please find enclosed herewith the audit inspection report on the physical verification and test
check audit of accounts maintained at JE Works store C-84N Chandni Chowk for the period
31.01.2018 to 09.09.2019. Para-wise replies/comments are sent to the office of the undersigned with-
in a period of four weeks.

INTERNAL AUDIT OFFICER

ZAP/CITY SP ZONE

J.E Works store,

C-84NChandni Chowk,
City Zone
Through E.E (M-II) CZ-SPZ

Copy to:
1. EE (M-II) CSPZ for expeditious reply and his comments
2. DCA (IAD) for information Pl.
3. Office Copy

INTERNAL AUDIT OFFICER

ZAP/CITY SP ZONE
 NORTH DELHI MUNICIPAL CORPORATION
INTERNAL AUDIT DEPARTMENT
ZAP/CITY SP ZONE

No .F. ____/IAD/ZAP/CSPZ/2019/____ Dated:__________

Subject : Physical Verification and Test Check Audit report of J.E.(Works)-Store, C-84N,
Chandni Chowk, City S.P. Zone for the period 31.01.2018 to 09.09.2019.

INTRODUCTION :

The A.I.R. on account of Physical Verification and Test Check audit of the accounts of J.E
(W)Store, C-84N Chandni Chowk, City SP Zone, was conducted by Zonal Audit Party, City SP Zone,
comprising Sh. Dharmendra Kumar I.A.O., Smt. Asha Rani,Prasad A.A.O., Smt. Kiran Negi, Auditor
and Sh. Subhas Chand Mishra, Auditor. The audit was conducted on 09.09.2019.

Sh. R. A. Goyal, A.E and Sh. S. K. Paharia, J.E was holding the charge of Store, C-84N,
Chandni Chowk, during the period of audit.

AIMS AND OBJECTIVES

The primary aim of the department is to Repair/Maintenance of Roads, Footpath etc .and oth-
er civil engineering works of the area.

H.O.D./H.O.O./D.D.O/CASHIER

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

S.No. H.O.D Head of Office In charge Cashier

1 Sh. K. P. Singh Sh. Kapil Gupta Sh. S. K. Paharia --
E in C Ex .Engineer Jr. Engineer

Budget Allocation and Expenditure for the year

Budget Year Expenditure up to year ending Excess/Saving

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 Sanctioned Filled Vacant

Maintained in the office of E.E. (M) City Zone

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 consid-
ered as satisfactory for the period covered by the audit.

Old Audit Report:

There were 221 (C-80 Old +JE Town Hall+C-77 Old) audit paras outstanding in respect of JE
(W) Store C-84N City SP Zone. The department has made effective compliance to settle only 09 pa-
ras. Remaining 212 paras have been incorporated with current audit report.

(A) Details of Old Audit Report: (C-80 old, Katcha Bagh)

S. Period of ac- Date of au- No & date of letter under Paras settled Para out- Money val-
N count audited dit which report was issued standing ue
No of No. G.P M.
paras of V.
pa- P
ras
set-
tled
01 1991-92 to 11.03.1993 F.651/IAD/ZAP/CZ/93/52 05 Nil 05 00 Nil
11.03.1993 Dated 15.06.1993
02 1992-93 to 11.04.1994 F.709/IAD/ZAP/CZ/94/36 03 Nil 02 01 Rs.80/-
11.04.1994 Dated 28.06.1994
03 11.04.1994 to 11.04.1995 F.765/IAD/CZ/96/25 01 Nil 00 01 Rs.54/-
09.04.1995 Dated 09.05.1996
04 1996-97 to 30.09.1997 F.842/IAD/CZ/97 06 Nil 05 01 Rs.115/-
30.09.1997 Dated 02.12.1997
05 30.09.97 11.11.1998 F.884/IAD/ZAP/CZ/98/23 08 Nil 06 02 Rs.313/-
to11.11.1998 to Dated 10.02.1999
13.11.1998
06 11.11.98 to 12.11.1999 F.1028/IAD/ZAP/CZ/2000/39 05 Nil 04 01 Rs.267/-
12.11.1999 Dated 03.04.2000
07 12.11.99 to 29.11.2000 F.1080/IADZAP//CZ/2000/261 04 Nil 03 01 Rs.222/-
29.11.2000 Dated 05.03.2001
08 30.11.2000 to 21.12.2001 F.1119/IAD/CZ/01/355 04 Nil 03 01 Rs.186/-
21.12.2001 Dated 05.02.2002
09 12.12.01 to 27.11.2002 F.1161/IAD/ZAP/CZ/03/475 04 Nil 03 01 Rs.100/-
27.11.2002 Dated 10.01.2003
10 22.12.04 to 05.12.2005 F.1299/IAD/ZAP/CZ/05/737 05 Nil 04 01 Rs.203/-
 05.12.2005 Dated 09.12.2005 (X)
11 06.12.05 to 27.12.2006 F.1363/IAD/ZAP/CZ/844 06 Nil 05 01 Rs.422/-
27.12.2006 Dated 07.02.2007 (X)
12 28.12.06 to 06.12.2007 F.1387/IAD/ZAP/CZ/08/962 04 Nil 03 01 Rs.232/-
06.12.2007 Dated 24.03.2008
13 07.12.07 to 30.12.2008 F.1448/IAD/ZAP/CZ/196 05 Nil 05 Nil Rs./-
30.12.2008 Dated 19.05.2010
14 01.01.09 to 30.09.2010 F.1463/IAD/ZAP/CZ/2011/ 07 Nil 06 01 Rs.362/-
30.09.2010 254 Dated 21.01.2011
15 01.10.10 to 31.10.2012 F.1488/IAD/ZAP/CZ/2013/38 07 Nil 05 02 Rs1964./-
31.10.2012 & Dated 07.02.2013 (X)
01.11.2012
16 02.11.12 to 29.10.2013 F.1525/IAD/ZAP/CZ/2014/ 07 Nil 05 02 Rs.1394/-
29.10.2013 452 Dated 10.07.2014
17 30.10.2013 to 30.10.2014 F.1551/IAD/ZAP/CZ/2015/10 07 Nil 06 01 Rs.2004/-
30.10.2014 Dated 18.03.2015
18 30.10.2014 to 30.11.2015 F.1582/IAD/ZAP/CZ/2016/66 07 Nil 06 01 Rs.615/-
30.11.2015 Dated 17.03.2016
19 01.12.2015 to 30.01.2018 09 1 08 Nil Rs.520/-
30.01.2018
(X) Amount deposit but Para
not settled
Total 95 00 76 19 Rs.5944/-

(B) DETAILS OF OLD AUDIT REPORT:- (Old JE Town Hall)

S. Period of Date of No & date of letter Paras settled Para Money

N account Audit under which report was outstanding value
audited issued No. No. of
of Paras G.P M.V.P
Paras Set-
tled
01 1987-88 to 19.04.90 F.534/IAD/DAP-/CZ/90/272 03 Nil 03 ----- --------
23.04.90 Dated 10.10.90
02 1991-92 to 11.06.93 to F.662/IAD/CZ/93 05 Nil 03 02 Rs. 64/-
11.06.93 14.06.93 dated 30.08.93
03 1993-94 to 13.06.94 F.714/IAD/CZ/94/67 04 Nil 02 02 Rs. 92/-
13.06.94 Dated 25.09.94
04 1994-95 to 13.05.96 to F.770/IAD/CZ/96/45 06 02 04 ---- ----
1995-96 14.05.96 Dated 04.07.96
05 1996-97 to 30.06.97 to F.832/IAD/CZ/97/139 04 Nil 02 02 Rs. 188/-
30.06.97 01.07.97 Dated 08.09.97
06 30.06.97 to 11.01.99 F.895/IAD/CZ/99/132 08 Nil 06 02 Rs.492/-
11.01.99 Dated 07.07.99
07 11.01.99 to 10.01.2000 F.1039/IAD/CZ/2000/123 06 Nil 05 01 Rs. 364/-
10.01.2000 Dated 07.07.2000
08 11.01.2000 12.02.2001 F.1092/IAD/CZ/2001/289 06 Nil 05 01 Rs. 503/-
to to Dated 29.05.2001
10.02.2001 13.02.2001
09 13.02.01 to 11.01.02 & F.1127/IAD/CZ/01/369 04 Nil 03 01 Rs. 532/-
11.01.02 14.02.01 Dated 13.02.2002
10 13.01.02 to 31.01.03 F.1170/IAD/CZ/03/500 04 Nil 03 01 Rs. 222/-
31.01.2003 Dated 06.05.03
11 14.01.03 to 14.01.04 F.1220/IAD/ZAP/CZ/2004/60 04 Nil 03 01 Rs.247/-
1401.04 3
Dated 08.03.2004
12 15.01.04 to 13.01.05 F.1265/IAD/ZAP/CZ/2005/68 04 Nil 03 01 Rs. 244/-
13.01.05 2 Dated 10.03.05 (X)
13 14.01.05 to 10.01.06 F.1320/IAD/CZ/6/709 08 Nil 08 --- -----
10.01.06 Dated 20.02.06
14 1101.06 to 09.01.07 F.1364/IAD/ZAP/CZ/2006/84 07 Nil 06 01 Rs. 110/-
09.01.07 5
Dated 07.02.07
15 10.01.07 to 29.01.08 F.1388/IAD/ZAP/CZ/2008/96 04 Nil 03 01 Rs. 160/-
29.01.08 4
Dated 31.08.2008
(X) Amount deposit vide G-8
no.351046 dated 19.12.2005
but Para not settled
16 10.01.07 to 10.04.2015 F.1598/IAD/ZAP/CZ/2016/96 05 Nil 04 01 Rs.1060/-
10.04.2015 Dated 09.11.2016
Total 82 02 63 17 Rs.4034/-

(C) Details of Old Audit Report: (C-77 Old, Kashmere Gate)

S.No. Report No. and Date Total Para Para No. Outstanding Pa-
Paras Settled of settled ra’s with Para No.
para’s
1. F.1287/IAD/CLZ/2009/593 10 01 02 09 (para no. 1, 3
dated 04.05.09 to 10)
2. F.1305/IAD/ CLZ/09-10/785 09 01 02 08 (para no. 1, 3
dated 10.02.10 to 9)
3. F.1344/IAD/ CLZ/2011/1074 09 01 02 08 (para no. 1, 3
dated 18.10.11 to 9)
4. 207/IAD/HQ/2013 08 02 02, 03 06 (para no.1, 4
dated 26.08.13 to 8)
F.19/IAD/HQ/2014/219 07 01 02 06 (para no. 1, 3
dated 22.08.2014 to 7)
Total 43 06 ------ 37
(D) Details of Old Audit Report: (C-84N Chandni Chowk)

S.No. Report No. and Date Total Para Para No. Outstanding Pa-
Paras Settled of settled ra’s with Para No.
para’s
1. F.1651/IAD/ZAP/CZ-SPZ/ 09 01 02 (MV 08 (para no. 1, 3
2018/229Dated 24.04.2018 Rs. 520/- to 09)
Total 09 01 ------ 08

Details of Current Recovery (Audit period 31.01.2018 to 09.09.2019):

Para No. Total Recoveries (In Rs.) Amount Recovered Balance (In Rs.)
02 Rs.410 /- Nil Rs. 410/-
TOTAL Rs. 410/-

The internal audit report has been prepared on the basis of information and records fur-
nished/made available by the JE (W), C-84N Chandni Chowk City SP Zone. The Internal Audit de-
partment disclaims any responsibility for any misinformation and/of non-information on the part of
auditee.

INTERNAL AUDIT OFFICER

ZAP/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/CSPZ/2019 dated 09.09.2019.

1. Stock Book.
2. Indent Book/Gate Passes.
3. Measurement Books
4. T & P registers.
5. Complaint Register
6. Muster Rolls with original sanctions.
7. Dismantle article register
8. Unserviceable article register
9. Attendance Register with biometric sheets
10. Property Register.
11. Log Book of vehicle
12. Any other auditable records

PARA NO. 1: NON PRODUCTION OF RECORD.

Out of the above requisitioned record, the record mentioned at S.No 3(only 3 MBs) was not
produced to audit. Either the record was not maintained or the production of the same appears to
have been avoided, reasons to which may be explained to Audit, it is further observed that no com-
plete/chain/linked records have been produced. In case any record remained un-checked other than
produced, then it will be the sole responsibility of the concerned officer/official/ in charge of the
store.

However, as a result of physical verification and test check on account of JE (W) C-84N
Chandni Chowk, on the basis records so produced to audit, the following discrepancies/ irregulari-
ties/ omissions/ errors etc. came to the notice of the Audit.

PARA NO.2: DISCREPANCIES NOTICED AS A RESULT OF PHYSICAL VERIFICA-

TION OF JE(W)STORE C-84N CHANDNI CHOWK (RECOVERY OF RS. 410/-)

During the physical verification of Store, the items of store as tabulated below were found
short. The shortage comes to Rs. 410/-, which may be made good by way of depositing the cost of
articles shown against each item in the Municipal Treasury through G-8 / Challans and be intimated
to audit. The cost of these articles were obtained by the JE(W) Store. A letter no.
02/IAD/ZAP/CSPZ/2019 dated 09.09.2019 was also issued to the JE(W) Store with regard to recov-
ery noticed amounting to Rs. 410/- which may be made good by way of depositing the cost of arti-
cles into the Municipal Treasury through G-8 / Challans but upto the preparation of Audit Inspection
Report no such intimation of recovery has been received by this office.
 STOCK BOOK 2019-20, I & II

Sl. Page No. Item As per As per Sh./Ex. Unit Amount

No. S.B site Rate Of
Shortage
01 30 PTMT Stop cock 12 10 02 short Rs. 60/- Rs. 120/-
15 mm
02 33 PTMT ball cock 32 30 02 Rs.85 /- Rs. 170/-
15 mm short
03 122 SW Pipe 100 mm 42 40 02 short Rs. 60/- Rs. 120/-
TOTAL Rs. 410/-

PARA No.3: NON-VERIFICATION OF RECEIPTS OF MATERIAL THROUGH MEAS-

UREMENT BOOK, GATE PASSES, INDENTS.

During the course of audit of record of JE Store only following Measurement Books and
Gate Passes were produced. Authority competent may ensure that the materials received through
other than below mentioned Gate Passes and Measurement Books (If any) is properly accounted for,
as the same could not be verified / checked by the audit due to non-production of other sources of
receipts, other than the below mentioned Gate Passes:

S. No. M. B. No. W. O. & Date

1. 32783 389 dt. 10.03.2019

2. 32786 392 dt. 10.03.2019
3. 32839 32 dt. 28.06.2019

S. Gate Date S. Gate Date

No. pass No. pass
No. No.
1. 10251 30.03.2019 16. 851 27.12.2018
2. 10170 28.03.2019 17. 822 07.12.2018
3. 9947 19.03.2019 18. 795 16.11.2018
4. 9915 18.03.2019 19. 763 18.10.2018
5. 9769 14.03.2019 20. 723 01.10.2018
6. 9594 09.03.2019 21. 651 06.09.2018
7. 9589 09.03.2019 22. 630 10.08.2018
8. 1023 25.03.2019 23. 613 26.05.2018
9. 997 08.03.2019 24. 01918 13.06.2018
10. 931 06.02.2019 25. 616 09.07.2018
11. 863 03.01.2019 26. 570 25.05.2018
12. 880 15.01.2019 27. 586 25.05.2018
 13. 01994 13.07.2018 28. 489 24.04.2018
14. 01992 13.07.2018 29. 463 05.04.2018
15. 706 20.09.2018 30.

As mentioned above only three Measurement Books were submitted for verification of pro-
curement of materials and somewhere in Stock Book M.B. Nos. were not mentioned e.g. PTMT Bib
Cock 15mm entry made in S.B-II dated 29.06.2019, 50 nos. of items were procured through M.B.
No. 32839 page no. 05 but M.B. No. was not mentioned in Stock Book like this Brass Feeuls 15mm
was also received on 29.06.2019 through M.B. No. 32839 at page no. 06 but the MB No. was not
mentioned in of SB-II page 179. AE concerned may take notice and ascertain the source of material
received in the store, scrutinize the detail of receipts and ensure entry of same in Stock Book.

PARA NO.4: CHECKING OF ATTENDANCE REGISTER

A statement showing the leave availed by the employees of said unit during the period under
audit from the attendance register produced to audit enclosed as Annexure ‘A’. The title of leave,
sanction thereof, and the entries in the service book leave account could not be verified by the audit
in the absence of the service book and personal file, since the PFs & SBs of the entire staff of store
are being maintained in the divisional office. Authority competent may please ensure that the leave
availed by the staff has been properly accounted for and furnish a certificate to this effect that all the
leave/ absence period have been regularized as per rules and the necessary entries have been made in
the leave account of the concerned employees and no over payment has been made in this regard.

PARA NO.5: DISPOSAL OF UNSERVICEABLE ARTICLES

A large number of unserviceable articles were lying in the store and require immediate dis-
posal after adopting the proper procedure as laid down in the Municipal Accounts Code. Department
may constitute a board under the approval of the competent authority who will declare whether these
articles are unserviceable and became condemn and then fix up the reserve price of these articles and
dispose off these articles through auction following the wide publicity of such auction as per laid
down procedure. Authority competent may please take immediate necessary action in this regard
under intimation to audit. The matter may be accorded top priority as the costs of unserviceable arti-
cles are decreasing day by day due to passage of time due to deterioration of articles lying unattend-
ed in the store.

PARA NO. 6:- CUTTINGS/OVERWRITINGS IN THE STOCK BOOK

During the checking of Stock Books, it was found that cuttings and overwritings were found
at many places in the Stock Books. All such cuttings/overwritings should be got verified and attest-
ed by the Supervisory Officer. While making entries in Stock Books the practice of cutting/ over-
writing should be avoided in future. The concerned EE & AE is also requested to check and verify
all these cuttings and overwritings made in the Stock Books and also take necessary remedi-
al/recovery action, if any, to ensure that there is no Municipal loss occurred to the exchequer on this
account.
PARA NO. 7:- NO PERIODICALLY CHECKING OF THE STOCK BOOKS

During the course of audit while checking the Stock Books, it was noticed that periodically
checking of the Stock Books with the store items has not been done by the Supervisory officer. Peri-
odical check by Supervisory Officer is necessary and it should be recorded in the Stock Books.

Reason for the above said irregularities be explained to audit.

PARA NO. 8:- IRREGULARITIES IN STOCK BOOKS

During the checking of the stock books, it has come to notice of the audit that signature
/thumb impression of the recipients were missing at many places, while issuing materials from the
store. Such Practice is irregular and same should be avoided in future. Signature /thumb impression
of the issuing authority as well as the recipients of materials should be made in the stock book. Sig-
nature/Thumb impression of the recipients may be obtained wherever it is missing and same may be
got verified by the supervisory officer under intimation to audit.

PARA NO. 8:- IRREGULARITIES NOTICED IN DRIVING OF CNG VEHICLE AND

MAINTENANCE OF ITS LOG BOOK

A CNG vehicle TATA ACE Registration No. DL1LAA 6429 has been allotted for day to day
maintenance of work, loading/unloading of material etc. from central store. But it was not driven by
a driver but it was being driven by Sh. Sonu, a Nala Beldar as a permanent drivernot posted at the
store. AE i/c of the store is requested to get deputed a permanent driver from the divisional office or
from some other store or from HQ to avoid any legal consequences in this regard.

Log Book of the vehicle TATA ACE No DL1LAA 6429 for the period from 13.06.2019 to
08.08.2019 was produced and it has been found that CNG taken entry was not made in the Log
Book. Signature of JE/Mate was not available in the Log Book and supervisory check of the con-
cerned officed was also not made. Paging was also not done in the Log Book.

PARA NO. 9:- GENERAL OBSERVATIONS

1. Material/Items received from site should also be attested by the AE concerned while tak-
ing it in the stock register.
2. Records of Bio-metric attendance of employees marking their attendance in the store, be
kept in the store & produce the same at the time of audit.
3. The name of site against which each material issued in the stock book be mentioned in
the stock book against the issue entry.
4. Page No. of stock book not mentioned in Gate passes.

INTERNAL AUDIT OFFICER

ZAP/CITY SP ZONE