NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT

CITY ZONE

No .F________/IAD/CZ /2016/ Dated:________________

Please find enclosed herewith the audit inspection report on the physical verification of
Stores and audit of accounts maintained at Malaria Store, AMO City Zone for the period
25.06.2013 to 31.03.2016. Para-wise replies/comments be sent to the office of the undersigned
within a period of four weeks.

INTERNAL AUDIT OFFICER

Z.A.P/CITY ZONE

AMO, City Zone

Through DHO (H&M)

Copy to:-
1. DHO, City 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/CITY ZONE
 NORTH DELHI MUNICIPAL CORPORATION
INTERNAL AUDIT DEPARTMENT
CITY ZONE

No. F________/IAD/ZAP/CZ /2016/ Dated: ______________

Subject: Physical verification and Test check Audit report on the accounts of AMO,
City Zone for the period 25.06.2013 to 31.03.2016.

INTRODUCTION:
The I.A.R on the accounts of AMO, City .Zone was conducted by Zonal Audit Party,
City Zone, comprising of Smt. Swaran Kumari, I.A.O., Sh. K.K.J.R.K. Prasad, A.A.O.,
Sh. Sandeep Kumar Account Assistant and Sh. Chander Shekhar, LDC. The audit was conducted
on 21.03.2016 to31.03.2016 in eleven working days.
Sh. Karan Pal Singh, AMI was in-charge of the Zonal Malaria Store City Zone during
the audit.

AIMS AND OBJECTIVE

The primary aim of the department is to spray Anti Malaria medicines into open drains,
water logged places etc. & to make fogging arrangement for prevention of Malaria under
jurisdiction of City 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. In charge Cashier

1 Dr. Pramod Verma, -- Sh. Karan Pal Singh, AMI --
DHO, City Zone

BUDGET ALLOCATION AND EXPENDITURE FOR THE YEAR

Budget Year Expenditure up to year ending Excess/Saving

-- -- -- --

Maintained in the office of DHO, City Zone

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 DHO, City Zone.

MAINTENANCE OF RECORDS:
The maintenance of records of AMO (Store, for the period 25.06.2013 to 31.03.2016,
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 07 audit Para’s outstanding in respect of AMO. Office, City Zone and nil
Para’s have been settled. These 07 Para’s have been incorporated with current audit report as
part-1 (old audit report.)
 (A) Details of Old Audit Report:

The audit report of AMO store City Zone prior to 07.04.2011 are incorporated with DHO
(H&M) City Zone

S. Period of Date of No & date of letter under Paras settled Para Money
N account audit which report was issued outstanding value
audited No No. of G.P M.V.P
of paras
para settled
s
01 07.04.11 to 24.06.13 to F.1544/IAD/ZAP/CZ/2015/01 07 Nil 05 02 Rs.32286/-
24.06.13 30.06.13 Dated 06.01.2015
Total 07 Nil 05 02 Rs.32286/-

Details of Current Recovery (Audit period 25.06.2013 to 31.03.2016)

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

(In Rs.) recoveries
2 Rs.1538/- NIL Rs.1538/-

The internal audit report has been prepared on the basis of information furnished and
record made available by the AMO, City. Zone, and disclaims any responsibility for any
misinformation and/of non-information on the part of auditee.

PART No. II (CURRENT AUDIT)

The following record was requisitioned by Audit for scrutiny on test check basis vide
requisition letter No.01/IAD/ZAP/CZ /2016 dated 21.03.2016.

1. Stock Book ,
2. Indents/Gate Passes,
3. Property Register,
4. Muster Rolls Employee record
5. Attendance Register
6. Daily diaries of MI’s and other staff,
7. Notice Book/ Challans book
8. T & P register
9. Instrument register
10. Dismantle Article register/Serviceable Article record
11. Unserviceable Article register
12. Any other auditable records.

PARA NO. 1: NON PRODUCTION OF RECORD.

Out of the above requisitioned record, items at S.N 3,4,6,7,8,9,10,11 were not produced
and Sl. No. 05 (P) was partly produced for inspection. 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.

As a result of physical verification of the Store of AMO, City Zone .and test check of
records so 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 AMO( STORE), CITY ZONE.(RECOVERY OF
RS. 1538 /-)
During the physical verification of Store, the items of store as tabulated below were
found short. The shortage comes to Rs. 1538/- (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.
AMO STORE, CITY ZONE
S.
P.N& SB Year Item As per S.B As per site Short @ Rate Amount
N
01 57(15-16) I Colton Roll 23 22 01 Rs.110/- Rs.110/-
02 58(15-16)I Soap cake 46 44 02 Rs.22/- Rs.44/-
03 59(15-16)I Dry cell 566 564 02 Rs.15/- Rs.30/-
04 18(15-16)II Cotton duster 08 06 02 Rs.15/- Rs.30/-
91
05 Register 1 qr. 72 70 02 Rs.20/- Rs.40/-
(15-16)II
123
06 Pencil led 30 25 05 Rs.05/- Rs.25/-
(15-16)II
AMO STORE
C-80
90
01 Cell 10 05 05 Rs.15/- Rs.75/-
2015-16
94 Rs.25/-
02 Hand Bill 4700 4600 100 Rs.25/-
2015-16 (100)
99 Register
03 15 12 03 Rs.40/- Rs.120/-
2015-16 1 Quair
AMO STORE
C-82
135
01 Register 1 qr. 06 05 01 Rs.20/- Rs.20/-
2015-16
173 Rs.25/-
02 Hand Bill 4000 3900 100 Rs.25/-
2015-16 (100)
AMO STORE
C-83
138
01 Register 1 qr. 16 14 02 Rs.20/- Rs.40/-
(15-16)
140
02 Register 4 qr. 02 01 01 Rs.80/- Rs.80/-
(15-16)
197
03 Battery cell 12 09 03 Rs.15/- Rs.45/-
(15-16)
AMO STORE C-84
138
01 Register 2 qr. 14 11 03 Rs.40/- Rs.120/-
(15-16)
159
03 Battery cell 40 36 04 Rs.15/- Rs.60/-
(15-16)
AMO STORE C-79
107
01 Register 2 qr. 29 27 02 Rs.40/- Rs.80/-
(15-16)
149
03 Dry cell 22 19 03 Rs.15/- Rs.45/-
(15-16)
171
03 Gloves 40 35 05 Rs.20/- Rs.100/-
(15-16)
AMO STORE C-81
188
01 Register 1Quair 09 06+ 03 Rs.20/- Rs.60/-
2015-16
189
03 Register 2Quair 15 14 01 Rs.40/- Rs.40/-
2015-16
193
03 Battery cells 40 37 03 Rs.15/- Rs.45/-
2015-16
AMO STORE C-86
115 Flex shine
01 50 45 05 Rs.20/- Rs.100/-
(15-16) chart
123
02 Battery cells 20 15 05 Rs.15/- Rs.75/-
(15-16)
132
03 Soap 04 02 02 Rs.22/- Rs.44/-
(15-16)
137
04 Date calendar 25 22 03 Rs.20/- Rs.60/-
(15-16)

Total Rs.1538/-
PARA NO.3: ITEMS PURCHASED WHILE SUFFICIENT BALANCE IN THE STOCK
BOOK
Care should be taken not to purchase stores much in advance of/more than actual
requirement but on the scrutiny of the Stock Book-, 2012-2013, it has been noticed that in spite
of having sufficient balance in the store, the department made the purchases of the items.

S.N. Date Items Balance in ltr. Purchased in ltr.

01 25.11.2013 Diesel 1095 190
02 26.11.2013 Diesel 1285 190
03 27.11.2013 Diesel 1475 190
04 29.11.2013 Diesel 1665 190
05 30.11.2013 Diesel 1855 190
06 16.12.2013 Diesel 1076 230
07 17.12.2013 Diesel 1306 230
08 18.12.2013 Diesel 1536 230
09 19.12.2013 Diesel 1766 230
10 23.08.2013 Petrol 45 42
11 24.08.2013 Petrol 87 42
12 29.08.2013 Petrol 101 42
13 30.08.2013 Petrol 143 40
14 03.09.2013 Petrol 113 42
15 25.11.2013 Petrol 135 50
16 26.11.2013 Petrol 185 25
17 27.11.2013 Petrol 210 25
18 29.11.2013 Petrol 235 50
19 30.11.2013 Petrol 285 50
20 16.12.2013 Petrol 200 30
21 17.12.2013 Petrol 230 30
21 18.12.2013 Petrol 260 30
22 19.12.2013 Petrol 290 30
23 26.12.2013 Petrol 225 30
24 27.12.2013 Petrol 225 30
25 28.12.2013 Petrol 240 30
26 30.12.2013 Petrol 255 30
27 31.12.2013 Petrol 285 30

Reason for irregular/ excess purchases may be clarified to audit.

PARA NO.4: IRREGULARITIES IN STOCK BOOKS

During the scrutiny of Stock Books of AMO, City Zone Store, it was noticed that
Petrol/Diesel received /purchased through supply orders/purchase voucher but copy of supply
orders/purchase voucher not provided by the concerned MI, to Audit Party, hence in the absence
of the supply order/purchase voucher, the entries of receipt of material in the Stock Book could
not be ascertained by audit party. So the departmental authorities will be held responsible for
any shortage or excess in received material. and scrutiny of stock books it also came to the notice
that in numerous cases entries were struck of and re-written, and some entries were found
rectified. These entries were not initialed by the competent authority which is objectionable. The
In- charge concerned may be instructed to get all such types of entries be 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 occur on 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 AMO, City Zone Further all moveable property items are to be physically verified at
least once in a year. No such verification has been carried out and no Moveable Property
Register has been maintained. Reason for non-maintenance of the property register may be
explained to audit.
PARA NO.6: CHECKING OF ATTENDANCE REGISTER

A statement showing the leave availed by the employees as per attendance register of
AMO store, City Zone during the audit period is as under –

S.No. Name of employee leave Leave Title

& designation
01 Karan Pal Singh, 22.04.15 to 30.04.15 Earned leave
AMI
02 Mahi Pal, F/W 08.08.15 to 12.08.2015, 09.12.15 to 15.12.2015 Earned Leave
03 Mangal Singh 03.07.15 to 10.07.15, 14.07.15 to 25.07.15 Earned Leave
25.05.15 to 03.06.15 Commuted leave
04 Paras Ram, F/W 24.02.15 to 05.03.15, 20.04.15 to 01.05.15, Earned Leave
22.02.16 to 04.03.16
09.02.16 to 13.02.16 Commuted leave
05 Ambi Dutt, F/W 11.06.15 to 19.06.15 Commuted leave

During the course of checking of attendance register for the period January 2015
February 2016 so produced by the AMO store City Zone, some employees had been found on
Earned Leave, Commuted leave & Absent As there were no Personal Files and Service Books
kept in the office of the AMO Store, and also no leave sanctioning/regularization orders were
produced to audit, the leave availed could not be verified by audit. DHO (H&M), City Zone 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.7: GENERAL OBSERVATION

1. The stock book was not page numbered and paging certificate regarding no of pages
was not recorded.
2. Receipt of the material had not been got acknowledged from the recipient.
3. Cuttings and overwriting in the entries had not been authenticated by the MI.
4. Name of work/site for which the material issued was also not mentioned.
5. It was also noticed that material/item issued to MIs of other wards/circles were being
entered in their sub stock book on next day of the day of issue.
6. Digital camera issued to Smt. Babita Bisht Entonigilist on 05.05.2014 but no
signature of recipient was found.

INTERNAL AUDIT OFFICER

ZAP/CZ