FORM – I A – 2

ALLOTMENT OF DUTIES DURING INSPECTION

Office: Division III,Kashmiri Gate/S.P.ZONE

Period of Inspection :01.08.2010 to 12.08.2011.

S. No. Name & Designation Duties Allotted Signature of the IA Team

Member

1. Sh. S.K Sachdeva, I.A.O. Overall Supervision, Tender files & Account files,
Tender Opening Register, lapsed deposit etc.etc.

2. Sh. Nand Kishore Singh, Acctt. Supervision, Tender files & Accounts files,
Stock Books of stores, Muster Roll issue register,

3. Sh. Praveen K Gangwal LDC Tender Opening Register, Tender files & Account files,
Stock
Books of stores, vouchers, plan & non-plan, lapsed deposit,
PF & SB, Budget Watch Register, Income Cash, Book,
G-8, Stationery Stock Register,ECR,
,

1. Certified that Duties allotted to me above have been duly Discharged by me Effectively
2. Certified that I have not worked in the currently audited unit in the past Five Years.

Members of the Inspection Party

Inspection Officer
 FORM – I A -7

COMPLETION MEMO

Party No. ZAP/S.P.ZONE:

1. Name of the Inspecting Officer: Sh. S.K Sachdeva

2. Name and complete address of the office inspected: Division-III,Kashmiri
Gate, S P Zone
3. Period of accounts inspected 01.08.10 to 12.08.2011.

4. Dates of visit 12.07.11 to 12.08.11.

5. No. of working days availed of 24 days
6. No. of days for which extension taken, if any: 14 days
7. No. of days suggested for future audit and reasons therefore: 15 days
8. Plan Non-Plan
a. Budget Provision ] mentioned in the report
b. Actual Expenditure, ]

Assistant/Jr. Accounts Officer

Camp & Date:

Countersigned IO
 FORM – I A – 8

INFORMATION SHEET OF THE INSPECTION REPORT ON THE ACCOUNTS

Office_: Division-III,S.P.ZONE Period 01.08.10 to 12.08.2011.

1. No. of Biils checked for the selected month:-

a. Pay Bill Nil b. TA Bills __ Nil ________ C. Contingent Bills __ Nil _______
c. Other Miscellaneous Bills ___ Nil ___ e. Works Bills 20 - f. Suppliers Bills -20
___(mentioned in the report work order wise)

2. No. of service books examined as per list attached. 05

3. No. of Provident Funds accounts checked. No
(a) Ledger accounts -nil
(b) Final Payment cases.-nil
(c) Advances and part-final withdrawals.-nil

4. Balances as specified in the monthly annual statements in respect of short term advances
have been checked and the figures furnished to the PAO were found correct/wrong. Not
provided.
5. No. of pension cases checked. nil
6. Names of officers due to retire within next 5 years whose SBs were checked. Not
provided.
7. Paras which merit inclusion in the list of serious financial irregularities. 2,3,10,18,,22&23
.
8. Paras in which cash recoveries suggested.2,3,10,18,22&23
9. Paras in which any embezzlement detected. - No
10. No. of preliminary objection memoranda issued. 07
11. No. of objections settled on the spot. - Nil
12. General remarks whether the state of maintenance of accounts is satisfactory or not.
Due to non-production of most of the chain of records maintenance of records
cannot be said to be Satisfactory.
13. Actual date of submission of the report.

14. Difficulties experienced during the inspection if any, as per statement attached. -

Assistant/Jr. Accounts Officer (Inspection)

Countersigned Inspecting Officer
 NORTH DELHI MUNICIPAL CORPORATION
INTERNAL AUDIT DEPARTMENT
S.P.ZONE.

No.F__________/IAD/ZAP/SPZ/2012/ Dated:-_____________

Sub:- Physical verification and test check audit report on account of Division-
III(M-I) ,kashmiri Gate,, S.P.Zone for the period 13.08.11 to 15.10.2012.

INTRODUCTION:-

The I.A.R. on the accounts of Division-III(M-I), Kashmiri Gate of S P Zone. was

conducted by field Audit Party ZAP/S.P.ZONE comprising of Sh Manoj Kumar Naresh, A.O,
Sh. Pradeep Kumar Rawat, A.A.O, Sh.Ashok Kumar Vats, UDC, Sh. Subhas Chand Mishra,
Acctt. Asstt & Sh. Praveen Kr. Gangwal, LDC. The audit was conducted on 15.10.12 to
31.10.12 . This was the 29th report of Division-III(M-I), Kashmiri Gate of S P Zone.

Sh. Anil Dalal held the post of Ex.Engg.(M-I) at the time of audit.

AIMS AND OBJECTIVES

The main aim of the DivisionIII(M-I) is to provide basic facilities of roads, nallah,
construction of school, community Centres, maintenance of gallies in colonies, to remove
malbas from the public sites etc.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. Ravi Dass Sh.Anil Dalal Sh. Anil Dalal Sunil Kumar

Budget Allocation and Expenditure for the year

Budget Year Expenditure up to Excess/Saving

year 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 16 16 Nil
3 Group C 15 08 07
4 Group D 408 371 37
Total 440 396 44

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 para’s 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
In Rs. against 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

 During the course of current audit, 02 audit Memo’s highlighting various
regularities/short recovery to the tune of Rs. Nil were issued. Department has not shown any
compliance of any audit Memo’s as such no spot recovery was made. All the audit objections
have been incorporated in current audit report.

Details of Current Recovery (Audit Period 13.08.2011 to 15.10.2012.):-

Para No.’s Total Recoveries (in Rs.) Amount Recoveries Balance (in Rs.)
02 37168.00 Nil 37168.00
03 810.00 Nil 810.00
10 4000.00 Nil 4000.00
Total 41978.00 - 41978.00

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/2012/01, dated 15/10/2012.

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(P),4,6(P only
BWR),9(P), 11(P),13,19,22,27,29&43(P) were shown/produced to audit for verification
and test check audit of said record. Rest of the records as mentioned in the requisition of
record letter has not been produced to audit for inspection. Audit has issued four memos
vide no.IAD/ZAP/SPZ/02,03,4&5 of various dates with the request to produce the record
to Audit for checking at the earliest, but the department failed to do so . 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.3: LOSS OF RS.810/- ON ACCOUNT OF EXCESS PAYMENT TO THE

CONTRACTOR IN W.O.NO.427 DATED 10.12.10:

The total bill of contractor for supply of different items vide W.O.No.427 dated
10-12-2010 comes to Rs.2,82,502/- restricted to Rs.2,82,400/-. After deduction of
Income Tax, surcharge and URM fee, the amount comes to Rs.2,75,942/- but the
contractor was paid Rs.2,76,752/-, hence Rs.810/- was paid in excess to the contractor.
Competent Authority is requested to get this amount recovered from the contractor and
deposited back into the municipal treasury under intimation to audit.

PARA NO.-4: IRREGULARITIES IN BUDGET WATCH REGISTER.

The following irregularities were found during the test audit of the Budget Watch
Register.

1. Cuttings/overwriting found in many places without any attestations of the

authority competent.
2. Signature of the dealing assistant not found on any entry. Whereas each and
every entry should be signed by the official maintaining the register with
countersignature of the controlling officer.
3. The date when budget is issued is not shown. The authority competent may direct
the official maintaining the register to mention the same which is mandatory.
4. Complete details of each entry/expenditure of budget booking not shown.
 5. On scrutiny of the Budget Watch Register for the year 2011-12, it has been
noticed that department has failed to keep proper watch on the allocations &
expenditure during the financial year. The detail of the same is given below:-

Budget Watch Register 2011-12

S.no. Head of Account Allocation Expenditure Difference

1 66-1004 850.00 Lac 984.46 Lac (-)134.46 Lac

2 70-1001 7.00 Lac 2.11 Lac (+)4.89 Lac
3 70-1002 31.20 Lac 14.32 Lac (+)16.88 Lac
4 70-1003 60.00 Lac 52.72 Lac (+)7.28 Lac
5 70-1004 7.00 Lac 3.19 Lac (+)3.81 Lac
6 66-1171 5.00 Lac 20.55 Lac (-)15.55 Lac
7 66-1182 Not mentioned 0.17 Lac (-)0.17
Lac
8 66-1185 Not mentioned 0.25 Lac (-)0.25
Lac
9 70-1193 0.50 Lac 0.93 Lac (-)0.43 Lac
10 70-1119 5.00 Lac 4.71 Lac (+)0.29 Lac

Budget Watch Register 2012-13

S.no. Head of Account Allocation Expenditure upto Difference
Aug-2012
1 66-1004 350.00 Lac 426.66 Lac (-)76.66 Lac
2 70-1001 7.00 Lac 6.45 Lac ------
3 70-1002 30.00 Lac 30.98 Lac (-)0.98 Lac
4 70-1003 40.00 Lac 17.40 Lac ------
5 70-1004 7.00 Lac 1.00 Lac ------
6 66-1171 Not mentioned 12.82 Lac (-)12.82 Lac
7 66-1182 Not mentioned 0.13 Lac (-)0.13
Lac
8 66-1185 Not mentioned 0.20 Lac (-)0.20
Lac
9 70-1193 Not mentioned 0.43 Lac (-)0.43 Lac
10 70-1119 6.00 Lac 3.27 Lac -----

In view of the above, it is revealed that no complete budget register has been
maintained with regard to the Plan Head and non plan head and it also seems that no
complete entries of budget have been updated in the Budget Watch Register. Also the
department has violated the terms of GFR for controlling the budget allocation &
expenditure during the said year, as there is huge saving seen without surrendering in
some head of accounts. Where the expenditure incurred is in excess of allocation, the
sanctioning of additional budget in the particular heads, if obtained, may be brought to
the knowledge of Audit, and entry be shown in BWR if any, otherwise no expenditure
should be incurred in excess of allocation without the consent and sanction of competent
authority and subject to availability of additional budget in other head, in which saving
are there. Also no any allocation was shown in some heads but the expenditure is seen
made under these heads as above. The same requires to be updated and clarified. The
irregularities may be examined and regularized under intimation to Audit.
PARA NO.-5: IRREGULARITIES IN THE G-8 BOOKS & NON-SUBMISSION OF
INCOME VERIFICATION CERTIFICATE:

During the scrutiny of the G-8 books of Div-III, the following G-8 Books with
challans were actually produced to Audit:-
1. G-8 no.71001 to 71100
2. G-8 no.71101 to 71200
3. G-8 no.047001 to 047100
4. G-8 no.034401 to 034500
5. G-8 no.036901 to 036960(used) and 036961 to 037000(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. Try;
(iii) The G-8 books are in torn condition,
(iv) Cuttings have been found at many G-8 receipts which are without any
attestation of the competent authority. Cuttings and overwriting should be
avoided while handling the G-8 books.

(v) It is noticed that in many G-8’s all three copies of G-8’s are found in G-8
book, some examples are given below:

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

No.
1. 034499 M/s S.K. Builders 03.09.12 9500/-
II
2. 034493 M/s Islamuddin 21.08.12 15000/-
3. 034492 M/s Somdutt 21.08.12 14500/-
Dwedi
4. 034473 M/s Surinder 09.07.12 29600/-
Const. Co.
5. 034460 M/s S.K. Builders 20.06.12 26800/-
II
6. 034489 M/s Harish Kumar 21.08.12 32500/-

Apart from the above, there are many other cases of same nature. Further,
the department has not produced the income verification certificate issued from
Zonal Treasury through Zonal Accounts Authority with regard to income
deposited in said G-8 books/challan.

PARA NO.-6: IRREGULARITIES IN THE POSTAGE REGISTER:

During test check of the Postage Register, (produced w.e.f. 29.10.10 to till date)
following irregularities were found:

(a) The paging of the postage register has not been done;
(b) No paging certificate has been given at the beginning of the register;
(c) The details of recoupment of postage register is not shown anywhere in the
register;
(d) The Voucher no. and date of payment so received is not maintained anywhere
in the register;
 (e) It was found that the dispatch nos. mentioned in the register is of Division-III
and SE office, while there should be separate registers for both;
(f) It is not known, how much imprest is allocated/ incurred in this postage head,
needs clarification.

PARA NO.-7: IRREGULARITIES FOUND IN THE M.Bs. AND ITS ISSUE REGISTER:

It was observed that M.B.s have been received from HQ and issued to the
concerned JEs during the period 2011-12 & 2012-13 but on the perusal of the M.B Issue
Register, it was found that M.B no.44151 to 44200 received from Engg.(HQ) and in M.B.
issue register M.B no.44176 to 44200 are entered and shown issued, but no record of
M.B no. 44151 to 44175 found in M.B. Stock Register. Similarly M.B. no.46251 to 46300
received from Engg.(HQ) on 29.06.12 and in M.B. issue register M.B.no.46251 to 46275
shown entered and issued, but no further record of M.B no.46276 to 46300 are given in
M.B. Stock Register, which needs clarification.

As M.B. is a mandatory record for all the material procured and the work done in
the Division. Cuttings/overwriting have been found in the MB Issue Register at many
pages which must be avoided in future. No supervisory check of this register was found.
The authority competent may direct the concerned official for proper maintenance of said
record. So far as record of old MBs are concerned, were not produced before audit. The
Competent Authority is requested to look into the matter and pass necessary direction to
update accordingly.

PARA NO.8: IRREGULARITIES FOUND IN THE BLANK MUSTER ROLL ISSUE

REGISTER:

DURING test check of blank Muster Roll Issue Register produced w.e.f. 06-04-09
onwards (starting from Muster Roll No.19998 w.e.f.06.04.09) which is not proper, the
following irregularities have been found:
(i) No paging or paging certificate has been found.
(ii) No entry of Muster Rolls serial nos. received from Town Hall in the Stock
Register as to from which serial no. Muster Roll forms were received, is
shown, which is a mandatory requirement.
(iii) Though requisition slips from the concerned stores are available but it is not
mentioned on the form as to for the specific requisition which Muster Roll
Form has been issued.
(iv) None of the requisition slips have been diarized.
(v) No M/R no has been mentioned In the requisition slip dated 01.04.2012 to
28.04.2012 of Ward No.75, for strength of 5 beldar, whereas it is mentioned
in muster roll register 1895 dated 30.03.2012 at Sr. no 292. Similarly No M/R
no. has been mentioned in requisition slip for 7 Nalla Beldar of Ward No.
73/SPZ for the period 01/05/2012 to 31/05/2012. But No. mentioned in
Muster Roll Register is 4771 at Sr. no 298 needs clarification.
(vi) In M/R issue register, date against Sr. no. 314 dated 17.07.2012 for 7 Nalla
Beldar period shown 01.07.2012 to 31.07.2012 but as per requisition slip
period mentioned are 01.07.2012 to 28.07.2012 and no M/R no has been
mentioned in requisition slip, needs clarification.
(vii) The register, so maintained is not proper as the columns are not
prepared in a proper way , as against each issue of Muster Roll,
previous M.R. No. should be mentioned in separate column and shown
against each issue to make it link-up of old Muster Roll to New Muster
Roll with details. This column and formality is mandatory to make
each issue authentic.
(viii) The indent/requisition slips for receiving the supply of blank M.Rolls
from Town Hall is not obtained & shown to audit. This is being
mandatory record.
PARA NO.9: IRREGULARITIES IN THE CASH BOOK :

The following irregularities were noticed during the test audit of the Cash Book of EE-
III.
1. No paging of the Cash Book is being done. In case any page of the Cash Book is
been lost, or detached it shall be difficult to point out and find the same. The
dealing assistant may immediately put the page numbers.
2. No paging certificate given. The same be given with proper signatures of the
competent authority. The dealing assistant was given verbal directions by Audit
for the same, but no any action was taken during audit period.
3. No signature of the dealing assistant/ authority competent seen on many
transaction.
4. Day wise closing and opening with proper attestations is not done in the Cash
Book, which is mandatory. The very purpose of the Cash Book is to show the
balances, so that the payments made is within allocation. Even no supervisory
check has been carried out.
5. The Permanent Advance of Rs.5000 /- for DDO account is also not shown in the
Cash Book, or any details of the balance shown. EE may clarify the situation to
Audit.
6. The hard copy of the Bank Statement for the account, also not shown to Audit for
cross check.
7. Bank Reconciliation Statement of Bank Account being operated in the
Division for contractor’s payment and Bank Acctt 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 authority competent cannot keep
proper check on financial transactions in the Division.
8. In the cashbook, there is no entry of voucher of transfer grant and RTGS
with details like cheque no., date, demand no., Head of Accounts etc.etc.
at the income side of the cash book is shown which is a basic
requirement of cash book due to which audit is facing trouble even in re-
conciliation of releasing of demands from time to time. No budget slip is
shown on each and every vouchers of Plan and Non-plan, for which the
checking by way of reconciliation of demands released from time to time
is not possible by the audit.
9. The details of works have been mentioned in a very vivid condition in some
pages, not legible.
10.In most of the vouchers, the demand was not attached. On asking it was reported
that there was another file where the demand was maintained but the same was
never produced before the audit. It is not known to audit as to how the
expenditure was being incurred and what amount of demand was released for
expenditure.
11.The cash book so maintained is not proper. The expenditure so incurred
and shown are not authentic because the cash book so maintained is
improper. The income side is total incomplete, needs updation and
clarification. It has been stressed in the Monthly Meeting in Zonal
Accounts Branch and audit of 36 columns in every month but it seems
that nothing has been done, is very serious.
12.The Bank Reconciliation statement is not prepared and shown to audit, is also
very serious.

PART-10: IRREGULARITIES FOUND IN TENDER AND ACCOUNTS FILES SO

PRODUCED TO AUDIT FOR AUDIT SCRUTINY:LOSS TO MCD OF RS.4000/-
 During the course of Audit on test check basis, audit has furnished a list of 50
files to be placed before audit for test check but out of which, only 19 files were placed
before the audit. Rest of the files was not produced to audit for the reasons best known
to the department. However, audit has observed some of the irregularities in the said
files so produced to audi:-

1. W.O. No. 344 dated 09.12.11,.Name of Contractor-M/s Mohd. Rashid,

Abatment-34.99%above, Period of completion-3 months,Cont. Value-
2,74,617/-, H/A:-89/1077, Name of Work- Imp Dev of triangle by
providing MS Grill…..

(a) Agreement Stamp Paper are not signed by the contractor.( Stamp Paper
vide no. Z541149).
(b) The tender cost of Rs.500/-has not been obtained from M/s Mohd Rashid and
it may be recovered and deposited into the municipal try.
(c) Total items shown in the schedule of works and rate are 08 nos. but items
executed are 07 nos. (MB No.33018).
(d) Agreement is without seal from Corporation.
(e) Cement statement is not updated, no cement bags consumed shown in the
said statement;
(f) No cement register is prepared and placed in the file;
(g) RMC bills enclosed in the files are not on computerized bill form, as per
standing instructions from E-IN-C, RMC should be obtained through
computerized receipt.
(h) No test check report from concerned AE and EE is available in account file.
(i) No certificate from contractor is available in the file regarding water
arrangement.

WORK ORDER NO.513 DATED 03-03-2012:Name of Contractor-M/s Surender

Construction Co., Period of completion-3 months, Cont. Value-3,53,298/-,
H/A:-XL-VIII-S, Name of work: Imp Dev of Gali Munsi Abdul Rahim from
sadar nala rd to H.No. 7686….in C-88/SPZ in Kasab Pura, Abatement-
10.55% above

a. Earnest Money amount shown in comparative statement is Rs.6500/- but in Ist &
final bill (Bill no.88834) is Rs.6400/-, needs clarification.

b. No tender cost has been shown deducted in Ist & final bill from the contractor and
also E-tender document shows 08 contractors has downloaded the tender
document but no tender has been recovered from them, needs clarification.
c. Total items shown in the schedule of works and rate are 16 nos. but items
executed are 11 nos. (MB No.40163).

d. Cement has not been shown got tested from municipal lab. / Cement bill is also
not obtained and placed in the file.

e. No labor report signed by the contractor, is placed in the file.

f. The Agreement so made and placed in the file is not got sealed by MCD to give it
a legal shape.

3. WORK ORDER NO.515 DATED 03.03.12: Name of Contractor-M/s Surinder

Const. Co., Period of completion-3 months,Cont. Value-3,52,991/-, H/A:-
XL-VIIIS, Name of work: Improvement Dev of Road/Lanes and D/system
behind kallu wali masjid by pdg. From….C-88/SPZ. , Abatement-10.80%
above.
 a. Earnest Money amount shown in comparative statement is Rs.6500/- but
in Ist & final bill (Bill no.88836) is Rs.6400/-, needs clarification.
b. No tender cost has been shown deducted in Ist & final bill from the
contractor and also E-tender document shows 08 contractors has
downloaded the tender document but no tender has been recovered from
them, needs clarification.
c. Total items shown in the schedule of works and rate are 16 nos. but items
executed are 10 nos. (MB No.40165).
d. No labor report signed by the contractor, is placed in the file.
e. The Agreement so made and placed in the file is not got sealed by MCD to
give it a legal shape.
f. No signature of ACA, DCA ,SE/SPZ are available in scrutiny performa.
g. No. signature of SE/SPZ in schedule of work.

4. WORK ORDER NO.15 DATED 21.05.2012: Name of Contractor- M/s

Rakesh Gupta,Period of completion-3 months, Cont. Value-3,82,700/-, NIT
NO.29/5, H/A- 89-1152, Name of work: Imp of Road for day to day
maintenance……SH: Supply of material at mpl store.

1. No tender fee has been deducted in Ist & final bill.

2. Total items shown in the schedule of works and rate are 10 nos. but items
executed are 08 nos. (MB No.40187).

3. Initial Budget has not been shown booked in the Division itself.

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

5. No sample test of has been found in the file.

6. No signature of Competent Authority at the test check report placed in the

Account file.

7. The Authority Competent is requested to get and inspect the said relevant record
and check and verify the same so that further irregularities may be stopped in
future.

5. WORK ORDER NO.14 DATED 21.05.12: Name of Contractor-M/s Rakesh

Gupta, Period of completion-3 months,Cont. Value-1,90,800/-, H/A-66-
3565, Tender amount- Item rate, through E tendering.
Name of Work:Imp to surrounding area of Idgah in C-88/SPZ SH:- Supply of
material at mpl Store.

The nomenclature of supply order is different with supplied items. /Supply order’s
nomenclature and item of supply is not shown but quantity & rate shown;

1. The initial budget/estimate has not been shown booked in the Budget
Register in the Division itself as per history sheet placed in the file;

2. The Agreement so made between the contractor and MCD is without

seal of Corporation. The G-8 no. and date with regard to Earnest
Money is also not shown in the agreement and shown blank.
 3. The mandatory coloumns have not been shown filled up in the
agreement.

4. The deduction of tender cost may be ensure from all contractors who
have downloaded the tender form.

5. No sample test of items has been found in the file.

6. No signature of Competent Authority at the test check report placed in

the account file.

6.WORK ORDER NO.516 DATED 03-03-12:Name of Contractor-M/s Surender

Const. Co., Period of completion-3 months, Cont. Value-3,47,088/-, H/A:-XL-
VIII-S.,Name of work: Improvement Dev of lane and adj. lane and D/system
in Gali Chaudhary……., Abatement:- 8.74% above.

1. No tender cost has been shown deducted in Ist & final bill from the contractor and
also E-tender document shows 06 contractors has downloaded the tender
document so a recovery of Rs.3000/-(Rs.500/-X6=Rs.3000/-) be made from
them.
2. The Agreement so made between the contractor and MCD is without seal of
Corporation. The G-8 no. and date with regard to Earnest Money is also not
shown in the agreement and shown blank.
3. Total items shown in the schedule of works and rate are 12 nos. but items
executed are 10 nos. (MB No.40166).
4. M.B. is issued without sign of Accountant.

PARA NO.11: VARIATION IN ITEMS & QUANTITIES FOR WORKS PERFORMED

(A) During the course of test audit of the Tender and Accounts file of EE-III, it has
been noticed by the Audit that there are variations in quantities of work done by the
contractor, in comparison to the quantities mentioned in the schedule. Variations under
permissible limits only are allowed in any item of work. But there are no. of cases as
detailed below and mentioned above which contains variations in items in excess of
permissible limits. Either the work done is excessively high or not done at all. It seems
that

supervisory staff have not checked the bills properly the reasons for the same may be
intimated to audit.
(B) The variations with regard to contractual value up to Rs.5 lacs the variation of
10% is allowed and in case of contractual value above Rs.5 lacs the variation of 5% is
allowed with regard to contractual value.

In addition to the above, there are instructions from the Commissioner, MCD that
no any variation is allowed but audit has observed that in some cases instructions
are being violated. The authority competent is requested to look into the matter
and pass necessary instructions with regard to the above for compliance.

Work Order No.318 dated 30.11.2011:

S.No. Name of work/Item Qty. as per As per
schedule Exec.
1 Demolishing cement…. 81.00 cum 82.22 cum
2 Construction of B/M road galli…… 17 each 26 each
3 Const. brick mason…. 02 each 04 each
4 Providing and fixing in position precast…. 02 each 07 each
5 Providing and laying jointing glazed…. 30.00 cum 56.85 cum
6 Providing and laying cc pavement…. 81.00 cum 77.95 cum
7 Deduct using of M-20 grade….. 81.00 cum 77.95 cum

Work Order No. 516 dated 03.03.2012

S.No. Name of work/Item Qty. as per As per

schedule Exec.
1 Demolishing cement concrete… 49.50 cum 63.26 cum
2 Excavating trenches… 40.00 m 44.60 m
3 P/L road mix concrete…. 49.50 cum 52.72 cum
4 Constructing brick masonary…. 24.00 nos. 14.00 nos.
5 P/L non- pressure NP2 class…. 10.00 m 24.60 m
6 Deduct from using M20 grade…. 49.50 cum 52.72 cum
7 Carriage of material by mechanical…. 49.50 cum 63.26 cum

Work Order No. 243 dated 21.09.2011

S.No. Name of work/Item Qty. as per As per

schedule Exec.
1 Carriage of material by mechanical…. 69.36 cum 112.31 cum
2 Demolishing cement concrete… 69.36 cum 64.09 cum
3 Constructing brick masonary…. 17.00 nos. 31.00 nos.
4 Constructing brick masonary…. 7.00 nos. 11.00 nos.

The variation in the actual execution of work may result in the change of
departmental justification of rates and the same may result in undue benefit to the
contractor and it also shows that the estimates were not realistic. Reasons for the same
may be intimated to Audit. It is further noticed in some cases on test check basis that
some scheduled items were even not executed, if not executed then why it was taken in
the estimate resultantly either the estimate is not realistic or the items not
executed/done, then how the particular work/job is shown completed and contractual
value is consumed /exhausted, needs clarification.

PARA No12: IRREGULARITY IN WORK ORDER REGISTER 2011-12 & 2012-13.

1. The Work Order Register has not been maintained /filled up properly like
justification for abatement is not shown properly.
2. No proper entries were found anywhere as per columns requirement, even details
of work not shown in the work register.
3. Most of the work order are shown blank and no single entry has been made in the
register.
4. No paging certificate is given in the register by the competent authority.
5. Work register for the year 2012-13 is made in the dairy dispatch register, and not
in the prescribed register for work order.
6. The said register for 2011-12 has not been closed by the authority competent as
it has not been signed by any competent authority;
 7. In some cases, the column of justification of rates had shown blank but the col. of
abatement is filled up due to which it is difficult for audit to test check whether
the rate accepted by MCD is justified or not.
8. White fluid has been used in complete entry of work order register at many
places.
9. An scrutiny of the registers shows that out of 413 tenders 133 cases pertains to
URM which is against the instructions issued by MCD in this regard, also needs
clarification.

PARA NO.13: IRREGULARITIES FOUND IN TENDER OPENING REGISTER:

Tender opening register produced has not been maintained in a proper way. The
columns are not filled up properly. In most of the cases, no subject matter has been
mentioned, only the no. of the contractor with rate has been mentioned. No paging
certificate has been given regarding paging of the register. Even the names of all the
parties who have filled up tender forms have not been mentioned. In none of the pages,
the signature of Ex. Engg. is available. No time of tender opening is mentioned.

PARA NO.14: PAYMENTS MADE TO CONTRACTORS WITHOUT AFFIXING

REVENUE STAMPS:

As per the Government of India’s instructions, any payment exceeding Rs.5000/-

made to any recipient shall be made only after taking the acknowledgement of the
recipient on a Revenue Stamp of Rs.1/- as a token of payment having been received by
him. A review of paid vouchers, however revealed a number cases where revenue
stamps have not been affixed on the bills in which the amount was more than Rs.5000/-.
The following table shows some of the details of some of such bills:-
Non Plan Vouchers

S.N Voucher Date Name of Firm Amount Printed Bill

o. No. (Rs.) No.
1 1NP/RTGS 09.02.12 M/s Jatinder Builder 422038/- 62814
2 3NP/RTGS -do- M/s Durga Builder 418738/- 62816
3 1NP/RTGS 07.03.12 M/s Balaji Const. 165966/- 81492
Co.
4 101NP/RTGS 29.09.11 M/s Ajit Singh 412402/- 22440
Raina
5 111NP/RTGS -do- M/s Rakesh Bansal 329684/- 37169
6 122NP/RTGS -do- M/s Mohd. Rashid 256830/- 31544
7 141NP/RTGS -do- M/s Duaji 422835/- 62888
Enterprises
8 95NP/RTGS 30.03.12 M/s Gurukripa 422889/- 76307
Enterprises
9 97NP/RTGS -do- M/s Sonu Builder 422805/- 88850
10 99NP/RTGS -do- M/s RK Const. 397192/- 85297

Plan Vouchers
S.N Voucher No. Date Name of Firm Amount (Rs.) Bill No.
o.
1 7P/RTGS 27.02.12 M/s Mohd. Rashid 114033/- 81429
2 9P/RTGS -do- M/s Ravi Kumar 63385/- 81486
Malhotra
3 19P/RTGS -do- M/s P.C. 421016/- 81664
Developers
4 1P/RTGS 07.12.11 M/s Ansh Const. 422508/- 78816
5 7P/RTGS -do- M/s Naveen Const. 386655/- 45787
6 8P/RTGS 21.12.11 M/s Kochar Const. 422218/- 81469

PARA NO.15 :NON-MAINTENANCE OF PROPER RECORD WITH REGARD TO

R.R.CUT/DEPOSIT WORK:

During the course of audit, a register with regard to R/R cut/deposit work was
asked and the register so produced to audit is not complete in all respect. It contains
limited information in one or two clauses/columns i.e. name of work, deposited amount,
security and G-8 no. and date only. The information about estimated value given by the
concerned JE to the road-cutting agency being mandatory information and columns are
not shown maintained. Also it is not maintained against a particular deposit work that
how many NITs issued and its work orders awarded in the said register, which is a
mandatory requirement of the record to be maintained by the division itself. The
necessary instruction/guidelines were also given to the concerned dealing assistant
during the course of present and last audit. The record so maintained is mere a formality
and nothing else.

PARA NO. 16: SANCTION PAPERS OF MUSTER ROLL EMPLOYEES

During the course of audit, it was asked for scrutiny of the documents relating to
the initial appointment of Muster Roll employees were not shown to Audit, even after
repeated verbal requests. In absence of such relevant 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
the employees engaged in the division be got maintained, (if it is not previously
maintained) showing their complete details. Otherwise, in case of any adverse
consequences, if arises, the responsibility shall lie on the department itself. Further it
may also be ensured that no undue payment to muster roll employees has been paid
and engaged in the Division.

PARA NO.-17: NON REVIEW OF MEASUREMENT BOOKS BY THE AUTHORITIES

COMPETENT

During the course of scrutiny of the Measurement Books, it is seen that the
provisions contained in Para 7.84 of the C.P.W.D. Manual volume-II all the MBs should
be collected once in the month September every year for review by the authorities
competent to see the following aspects:-
1. To complete the books in use with Part-I of the Register of M.B.s
maintained in C.P.W.A. form 92 and to note necessary corrections in the
Register.
2. To see that no original sheet is turn out of a book nor any entry earned or
disfigured and the corrections made therein are properly initialed.
3. To see that original entries are not removed.
4. To test check the calculations and to ensure that instructions regarding
writing of M.B.s recording of measurement and their test checks are being
followed properly.

The above-mentioned irregularity was pointed out in the last Audit Report also, but
the authorities competent have taken no any action in the Measurement Books. The
above aspects may please be examined and comments may be offered to Audit, apart
from ensuring to adhere to the provisions mentioned above.

PARA NO.18: NON-DEDUCTION OF DRINKING WATER CHARGES IN THE

CONTRACTOR BILLS
During the scrutiny of the Accounts Files produced to Audit, it is seen that in most
of the files, the drinking water charges are not deducted. As per the Clause 5 of the
additional conditions of the tender, 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 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 reveals
that neither any documents in support of the arrangement of drinking water by the
contractor himself was available in the files nor required drinking charges have 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. Also, in some case, it is seen
that the recovery of construction water is neither accounted for nor recovered also needs
clarification.

PARA NO.19:AUDIT OBSERVATION ON ACCOUNT OF PRINTED BILL FORM

STOCK REGISTER:

The Printed Bill Form Register so produced is w.e.f. 07.04.11 to 30.03.12 &
02.05.12 to till date. Following irregularities were found:-

(a) No paging is done.

(b) No paging certificate is given in the beginning;
(c) No copy of indent/requisition slips for obtaining supply of blank printed bill
from Town Hall, Engg. (HQ) is kept and maintained in the department,
simultaneously produced to audit. Hence quantity received could not be
checked /audited.
(d) The requisition slip(duplicate) for issuance also not maintained/produced to
audit.
(e) No complete narration is mentioned in the entry of receiving the quantity from
Engg.(HQ);
(f) No signature of recipient is shown in the whole register.
(g) No supervisory check/verification has been found.
(h) It has been noticed that two pages after serial no.17 have been pasted
together to hide some discrepancies/mistakes occurred, which should be
avoided.
(i) Instructions contained in Circular no.EINC/ENGG./HQ/RK/2005/2246 dated
15.03.05 are not being strictly adhered to.
(j) No name and signature of official issuing bill form and signature of the
recipient official are not available in the register.
(k) 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 has not been followed.

PARA NO.20:IRREGULARITIES IN STOCK BOOK OF ISSUANCE OF NEW M.B.s

During the course of test audit of the M.B. Issue Register produced w.e.f. 04-05-
12 to 11-10-2012, following irregularities were found:

(I) No paging or paging certificate was available in the register

(II) Many cuttings/overwriting were found in the register which is objectionable; also
not attested by the competent authorities;
(III) At many places no signature of recipient were available in M.B issued register like
M.B no 33008, 33014, 33015, 33018 issued to Mr. D. P. Dahiya JE Ward 88 and
M.B. no 33022 issued to Sh C. P. Sharma JE but their signature is not found
against M.B. no.
(IV) It was noticed that M.B no.44151 to 44200 received from Engg.(HQ) and in M.B.
issue register M.B no.44176 to 44200 are entered and shown issued, but no
record of M.B no. 44151 to 44175 are shown entered and issued in M.B. Stock
Register. Similarly M.B. no.46251 to 46300 received from Engg.(HQ) on 29.06.12
 and in M.B. issue register M.B.no.46251 to 46275 shown entered and issued, but
no further record of M.B no.46276 to 46300 are given in M.B. Stock Register,
which needs clarification.
(V) M.B.s are being issued without proper requisition from recipient.

PARA NO.21: NON-MAINTENANCE OF PROPER BUDGET REGISTER AND BUDGET

SLIPS ON THE PAID BILLS/VOUCHERS FOR THE YEAR 2011-12 TO TILL DATE:

During the course of vouching of all the paid vouchers under Plan and Non-Plan
H/A for the period 2011-12 to till date, audit observed that neither the proper budget
register is maintained for the same nor budget slip is shown on the face of the paid
vouchers under the relevant Head of Account due to which audit could not reconcile the
payment released/paid to the contractors under various heads of accounts were proper
or as per allocation/release of funds.

Apart from the above, audit has also observed that no details/transfer of
grants/vouchers with regard to the payment released under the various heads of
accounts are being maintained/prepared in the Division whereas these are the
mandatory requirements of the maintenance of the Cash Book because without
mentioning any income, how the expenditure is being incurred in the cash book. In the
said circumstances payment made to the contractors or other agencies under various
heads of account cannot be authenticate or possibility of malpractice/embezzlement or
anything adverse can be there for which defaulters concerned and department itself shall
be held responsible. The authority competent is once again requested to look into the
matter at personal level and start maintaining the mandatory records under intimation to
audit. The Monthly meeting in Zonal Accounts is being attended by the staff and it has
been advised time and again to paste the release/ RTGS at income side. In spite of this
the cash book is not being maintained in a proper way even BWR are also not updated
accordingly.

PARA NO 22: NON MAINTAINENCE/MONITORING OF RECORDS OF TENDER

DOCUMENTS/ OF FEES ON ACCOUNT OF SALE/DOWNLOAD OF TENDER FORM,
LOSS TO MCD BEYOND CALCULATION: AN ESTIMATED LOSS OF REVENUE
AMOUNTING TO RS.21,000/-

Since the E tendering system has been introduced in the MCD w.e.f. 2005
onwards, audit has observed that department has not maintained/monitored the record
of fees on account of sale/download of tender forms, as no any record is being
maintained in the department. A register be maintained with pasting of computerized
transaction list at one side & on the other side amount with G-8 number & date from
whom the tender form is downloaded & participated in the sale of tender forms be
mentioned against each. In absence of said record the amount realized on account of
sale/download of tender form cannot be audited. There are losses to MCD, which is
beyond calculation in absence of said record. However audit has estimated loss
amounting to Rs.21,000/- on the basis of test check of some tender and accounts files
so produced to audit for the audit period.

The authority competent is requested to pass necessary instructions to follow-up

the procedure as mentioned above & recover the above recovery from the contractor
who had/has down loaded the tender documents from time to time, from the date of
introduction of ‘E’ Tendering system till today under intimation to audit.

PARA NO.23:NON CREDITING OF LAPSED DEPOSITS TO THE TUNE OF

RS.1122139/-
 As per instructions contained in CPWD Manual and the GFR the balance unclaimed
for more than three complete accounting years should be credited to Mpl. Try. as lapsed
deposit. During the course of audit, it was observed that deposits of EM/Security were
lying unclaimed/unverified/un-refunded for more than three completed accounting years.

The Ex.Engg.-III may ensure the credit of this amount into municipal treasury as
lapsed deposit and such lapses should be updated. The same was being pointed out
during last audit also. The competent authority is requested to take action accordingly.

PARA NO. 24: LATE EXECUTION OF AGREEMENT:

As per CPWD Mannual, the agreement between the 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 the vouchers,
accounts files, it was found that in most of the cases, the agreement between the
contractor and the MCD was executed after a long time of gap after issuance of Work
Order. This needs proper attention and this practice should be avoided in future.

PARA NO.25: NON MAINTENANCE OF CEMENT/BITUMEN/STEEL REGISTER:

As per Clause 10 of the 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.26: NON MAINTENANCE OF BLACK LISTED CONTRACTOR’S RECORD:

As per Para 35.4 of CPWD Mannual 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-27: 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 has been noticed that the department has failed to do so. No Income
verification certificate is being maintained, even during the period of previous audit also.

PARA NO.-28: OBSERVATION OF ECR AND RECOVERY OF MEDICAL ALLOWANCE

PAID TO GROUP B OFFICERS
1. No biometric no. of employees are mentioned against there name.
2. No entries of bonus, arrear paid are given in the ECR.
3. No supervisory check/sign of DDO found.
4. Massive cuttings/overwritings seen at many pages.
5. No details of tuition fee paid is given.
6. It is noticed that Sh. Ankur Tyagi, JE has drawn medical allowance @
Rs.150/- P.M w.e.f 01/08/08 to 31/08/11 (total Rs.5550/-)and @ Rs.
 188/- w.e.f 01/09/11 to 30/09/12(total Rs.2444/-) which is
recoverable from him as MA is not applicable to the official who is
drawing G.P Rs.4200/- or more. So a recovery of Rs.7994/- to be made
from his salary.
7. It is noticed that Sh. Ravi Kumar, JE has drawn medical allowance @
Rs.150/- P.M w.e.f 01/08/08 to 30/06/11 (total Rs.5250/-)and @ Rs.
188/- w.e.f 01/07/11 to 30/09/12(total Rs.2820/-) which is
recoverable from him as MA is not applicable to the official who is
drawing G.P Rs.4200/- or more. So a recovery of Rs.8070/- to be made
from his salary.
8. It is noticed that Sh. Inderjeet, Draft Man(Civil) has drawn medical
allowance @ Rs.150/- P.M w.e.f 01/08/08 to 30/06/11 (total Rs.5250/-
)and @ Rs. 188/- w.e.f 01/07/11 to 31/08/12(total Rs.2632/-) which is
recoverable from him as MA is not applicable to the official who is
drawing G.P Rs.4200/- or more. So a recovery of Rs.7882/- to be made
from his salary.
9. During the test check of ECR, it is revealed that sterilization increment of
Rs. 450/- are given to Sh. S.S. Arya S/o Sh. Sankar Singh(AE,Civil) and
to Sh. C.P. Sharma S/o Sh. Ram Phool, JE(Civil) w.e.f Sep 2011 to Aug
2012 and this sterilization increment reduced to Rs. 400/- w.e.f Sep
2012, needs clarification.
10.It is observed that following officers are drawing car allowance to whom
car allowance is not sanctioned. The necessary recovery to be made from
their salaries
Sr. No. Name and Designation Period Amount to be
recovered
1. Sh. S.S Arya, AE 01/11/10 to Rs.51456/-
31/10/11
@Rs.1225/-PM &
01/11/11 to
31/10/12
@Rs.3063/-PM
2. Sh. Shafiq Ahmed, AE 01/02/10 to Rs.62481/-
31/10/11
@Rs.1225/-PM &
01/11/11 to
30/10/12@Rs.3063/-
PM

PARA NO.-28: IMPROPER MAINTENANCE OF THE S.BS/PERSONAL FILES:

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
found in each PF & SBs are mentioned as under:-

(I) PF & SB of Sh. SHAFIQ AHMED, AE

a. No GPF no. has been mentioned in the service book.
b. Qualification entry coloumns in the service book are left blank.
c. No paging has been done in personal file.
d. Leave account is not completed.
(II) PF & SB OF SH. ANKUR TYAGI, JE
a. Qualification entry coloumns in the service book are left blank.
 b. Leave record is not completed after 31/12/09 (E.L);
c. No paging has been done in personal file.
(III) PF & SB OF SH. C.P. SHARMA, JE

a. No paging has been done in personal file.

b. Qualification certificates copies are not duly attested.
c. Leave account is not completed.
d. Office order no.724/E-XXII/99-2000 dated 13/01/2000
regarding special increment of Rs. 175/- for sterilization is
available in the file but no further order is available in the
file for drawing Rs.400/- as special increment as per ECR,
needs clarification.

(IV) PF & SB OF SH. S.S. ARYA, AE

a. As per order no. EEXXII/98-99/D-205 dated 09/06/98 a special

increment of Rs. 175/- for sterilization was granted to him in the
pay scale 5500-9000. But it was increased Rs. 450/- from Sep
2011 to Aug 2012 and reduced to Rs. 400/- from Sep 2012 to till
date, needs clarlification.
(V) PF & SB OF Smt. MEERA DEVI, COOLIE:

a. No police verification report is placed in personal file;

b. No GPF no. has been mentioned in service book
c. No Signature/Thumb impression of employee in coloumn no.8 of
service book against entry of increments is available.
d. The affidavit declaring DOB is not in original but photocopy is
placed in the file.
e. No paging in personal file has been done.

(VI) PF & SB OF SH. DINESH KUMAR SANGAL, JE

a. Leave account is not completed.

b. No paging has been done.

(VII) PF & SB OF SH. SHRIRAM, BELDAR

a. No signature of employee in coloumn no. 8 of service book

against entry of increment.
b. No signature of Acctt. In DA, Arrear, Bonus etc. in service book.
c. Leave account(E.L) is not completed after 30/06/2007.
d. No GPF no. mentioned in the service book.
e. No Photograph changed after 10 years in service book.

(VIII) PF & SB OF SH. DHARAM PAL SINGH, BELDAR

a. No signature of Acctt. In DA, Arrear, Bonus etc. in service book.

b. Leave account(E.L) is not completed after 30/06/2007.
c. No paging has been done.

SOME COMMON IRREGULARITIES FOUND IN MOST OF THE FILES

A. It is observed that column no.-8 is not signed by the employee in almost all the
SBs.
B. The leave record is not maintained properly in most of the SBs.
C. The first page of the SB showing the personal details of the incumbent are not
duly filled up in many cases.
D. Paging of most of the Personal Files is not done. The PF.s is in torn condition. In
many cases the leave applications for the Leave taken as per the Leave Account
of the SB are not attached. Audit has further observed that loose sheets are
placed in the file in the leave account of Service books for entries of leave period
whereas it should be on prescribed leave account proforma attached with the
service books, needs immediate compliance.

PARA NO.- 29: OTHER AUDIT OBSERVATIONS:

1. It has been seen that in many of the Accounts Files the completion certificates
attached in the files are not duly filled up and as per the columns provided.

2. In the Stock Book for Stationery items, the signature of recipient is not seen, in
many entries. Cuttings and overwriting are seen which are without any
attestations of the authority competent.
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, Labor Statement is not placed in many files and even if
they are placed, they are not signed by the J.E., A.E. & contractor. The Authority
Competent may kindly give instruction in this regard.
6. It is seen that the Muster Roll bills are being passed in the M.B.s without showing
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 it is
seen in most of the MBs that the entry of completion is being dome after 3-6
months.
8. Cuttings and overwriting are seen in most of the record, which are without
attestations of the competent authority.
9. In most of Service Books, the leave record of employees are not complete, there
are no signatures of payment of arrears of DA and other DAs and bonus, of the
DDO as well as Accounts Officer, the Personal Files are not maintained in a proper
way and not duly paged, in most of the cases of Class-IV employees, the police
verification certificate is 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.

ACCOUNT OFFICER
IAD/ZAP/SPZ
 FORM – I A – 4

PERFORMA FOR FURNISHING INFORMATION FOR THE UNIT AUDITED + COMPLETION

MEMO OF AUDIT PARTY TO HEAD QUARTER ALONGWITH THE AUDIT REPORT.

Division-III(M-I),Kashmere Gate,Delhi.
1. Name of the Unit Audited

S/Shri S.K.Sachdeva, IAO, N.K.Singh, Acctt. & Praveen Km.

2. Name of the I.A.O. and Party Gangwal, LDC
Personnel

Period of Accounts 01.08.10 to 12.08.11

3. Inspected/Audit Year Covered
Months selected for detailed
inspection
a. No. of bills checked nil
4. pay Bill
b. T. A. Bill ni
c. Contingency nil
d. Supplier bill etc. 20
5. Dates of Audit 12.07.11 to 12.08.11

6. (i) Total No. of Service Books 05((Subepal Singh,AE, Krishan Km.,LDC, Rishi Km,UDC, Sunil Ku
examined (enclose list) Khurg,LDC & Surender Singh,AE)

6. (ii) List of officers due to retire Not provided

within 5 years whose service
books checked
7. Pay Fixation Cases Checked 05
Actual time taken for 12.07.11 to 12.08.11 Time was sufficient.
inspection (State whether time
8. allowed was sufficient or
whether there was only saving
of time i.e. is any change
necessary)
Whether inspection report was yes
9. discussed with HOD/Head of
the Office inspected and
 departments view taken in
report.
Whether allocation of duties yes
10. amongst the members of the
party has been enclosed
prescribed proforma.
Whether correctness of the Not provided
11. maintenance of G.P. Fund
Account and accounts of
Loans and Advances checked.
12. Whether there are pending Not provided
pension cases, if so details
thereof.
13 Old Report
A Para Outstanding 560 Recoveries outstanding R.14978470.24

B Paras Settled 30 Recoveries effected Rs.19992.38

C Yearwise breakup
of paras settled
(enclose report in
Form-II M-8 also)
D Remaining paras of 530 Remaining recoveries 14958477.86
old report included included in this report
in this report

14
Current Report
A. (i) No. of preliminary objection memo 07
issued
(ii) No. of objection settled on the sport Nil
(iii) General remarks whether the
accounts are satisfactory or not. No. Recoveries have been effected.
B. Remaining paras included in current 30
report.
15. Recoveries
A Detected Rs.
B Recoveries effected on the Rs.NIL
spot
C Remaining recoveries pointed Rs.41978.00
out in current report
16. In any serious para pointed out, to be Yes. The para having financial No
brought to the notice of the higher Effect are serious.
authorities.
If yes, details given below:-
Serious para Number Brief detail
02,03,10. Mentioned in the report.
17. If any embezzlement case inviting Yes No
attention of higher authorities
(if yes, give details)
No

Signature of JAO:___________________
Name of JAO: _____________________

Signature of I.A.O.: ___________________

Name of I.A. O.: _____________________

Date:
 FORM – I A -5

Division-III(M-I),Kashmere Gate, Delhi.

(Name of office/unit)
Sh Anil Dalal, Ex. Engg.(C)
Non-cheque/cheque drawing DDO
01.08.10 to 12.08.11
Period of Accounts
12.07.11 to 12.08.11
Date of Inspection

S. No. PARTICULARS REMARKS

1 Obtained a list of records maintained by the office The records were
being inspected and audited Commonly required to be Requisitioned vide letter
maintained in each office is indicated in Annexure-1(b) Dated 12.07.11.
2 Scrutinize the system of drawing bills from the stage it The produced bills were
originated till paid off during the selection period of scrutinized/checked duly.
check with reference to entries made in the various
initial and subsidiary records as prescribed under the
rules.
3 Scrutinize the system to accounting of receipts from the The Cash book was also
stage if originated till credited to Government account checked .
with reference to the entries made in the various initial
and subsidiary accounts records and also see that the
receipts have not been utilized for payment.
4 Cash Book (Applicable also for non-cheque DDOs) The cash book was
(i) Examine the Cash Book to see whether it is checked and the
written, verified, maintained and balance in Observations are in the
accordance with the relevant provisions of audit report.
the Receipt and Payment Rules, 1983. In
addition it should be sent that :-
(a) Cash Balance is physically verified by Nil balance.
surprise periodical checks.
(b) Cash-in-hand is prima-facie not more Nil.
than the occasion demands.
(c) There is no delay in remittance of The lapses are mentioned
cash/cheque/DD/etc. To the bank. In the audit report.
(d) All amount received on account of Pay.
TA and contingencies. etc. are entered
on the payment side. Check the payment
side with the payment vouchers and the
contingent register.

(ii) Examine the system of receipt custody and use of No cheque books were
cheque-books and offer comments. Prepare a list of Produced.
cheque-books received by the DDO for verification
with the office of issue. Have the balance books-in-
hand been verified by the DDO ?
(iii) Similarly, examine the system of receipt, custody No receipt books were
and use of the receipt book and offer comments. Produced.
 Prepare a list of Receipt Books for verification with the
office of issue. Have the balance books-in-hand been
verified by the DDO ?
5 Bill for Pay & Allowances:- Mentioned in the
(i) Have the cheque been received as per Bill Register Observations regarding
(Form TR-28A) from the PAO and taken into each Cash book.
book ? Cases of delay in the receipt of cheque from the
PAO should be looked into and commented.
(ii) Have all the cheques issued by the PAO during the -do-
selected month (as per list received from the PAO been
ticked off with the Cash Book.

(iii) Salary vouchers (including bills for advance and all Not produced
types of allowances etc.) for the selected month have
been closely scrutinized with reference to entitlements
and acquittance.
(iv) Are the rules regarding accounting of and Not provided
disbursement of unpaid salaries strictly followed and
register kept upto date and reviewed periodically by
DDO.
(v) Examine salary bills to see it there are variation in Not provided
rates of pay from these shown in the Service Books.
(vi) Examine the LPCs issued during the period of -do-
review to see that the rates of pay and allowances
admissible and recoveries due are shown correctly.
(vii) In the staff employed covered with sanctioned Not provided
strength. (Has the staff been employed for gainful
purpose or there is scope of economy ?)
6 Contingencies:- Mentioned in the report
(i) Is the register of contingent expenditure maintained
according to the provisions of CRs ?
(ii) Have the sub vouchers been cancelled after -do-
payment.
(iii) Is the expenditure covered by general/specific -do-
sanction ?
(iv) Are the rules regarding engagements of MR labour -do-
property followed ?
(v) Have the certificate of quality and entry of Stock Not provided
Register recorded on the vouchers ? (Entries should be
checked with the initial account records, i.e. Stock
Register, Stationery Register, Consumable Registers
and correctness verified, thereof).
7 Service Books and Leave Account:- The SBs were examined
(i) Review the service books and leave accounts to see And observations are made
that the entries therein are up-to-date; Calculation for In the report
leave-at-credit are correct, as per rules; and the annual
verification certificates recorded in the service books.
(A list of service books examined should be obtained
and kept for records).
 (ii) Delays, if any, in the grant of annual increments -do-
should be pointed out and reasons ascertained from the
Head-of-office.
(iii) Has the pay fixation been correctly done ? Cases of -do-
wrong pay fixation should be indicated with brief note
the amount involved.
8 GPF account of Group-D:- Not provided
Have the GPF account of Group-D employees been
properly maintained ? If no, what are the main defects
(give references to para in IR)
9 Overtime Allowances:- Not provided
Has overtime been sanctioned by competent authority
and allowed in accordance with the current rules and
have all the subsidiary and initial records been
maintained ?
10 Stores and Stock:- Yes.
(i) Are stock register maintained for consumable and
non-consumable stores and rare the transaction posted
as and when they occurred ?
 (ii) Check all the purchase vouchers and verify the Not provided
purchase in these registers.
(iii) Check the supply orders with reference to 14 supply orders were
quotations and comparative statements. Checked and recoveries
Effected.
(iv) Are the issues made under proper authority ? yes
(v) Examine the physical verification report and Mentioned in the report
ascertain if any shortage has been reported therein and
if so, what action has been taken for its regularization ?
(vi) It should be seen that there is no unnecessary -
accumulation of stock
11 Log Books:- Not provided
(i) How many vehicles are there with the department ?
Check the log books and link the purchase of POL and
other accessories with the relevant paid vouchers ?
(ii) Is the vehicle maintaining normal mileage every -do-
month ?
(iii) Case of extra-ordinary repairs carried out should -do-
be investigated with reference to sanction of the
competent authority. Register of maintenance vehicle
should also be seen.
(iv) Are there journeys shown as “unofficial’s” so, -do-
what action has been taken to recover the amount from
the officers concerned ?
12 Examination of Reqisters:- -do-
List of records commonly required to be maintained by
each DDO has been indicated in Annexure-1(b).
Examine these registers/records.
13 Cheque books of cheque drawing DDOs:- Not provided
(i) Examine the record maintained for receipt custody
are use of cheque books received from PAOs
(ii) Has the DDO paid bills only in respect of items for -do-
which he was authorized to do so ?
(iii) Has the weekly scrolls been received on due dates -do-
from the bank ?
(iv) Have the Bank Reconciliation statements been No
prepared weekly got checked and sent to PAO ? Any
serious differences should be brought to notice.
(v) Examine as to whether the list of payments No
alongwith paid vouchers have been sent to the PAO on
due dates. Delay in sending should be pointed out.
14 Income Tax Deductions:- Not provided
Review cases to see that the Income Tax deducted-at-
source is correct and in accordance with the latest
Income Tax Rebates.
15 All Cases of sanctions issued by the office. e.g.. MCA, -do-
Festival Advances, Special Pay, etc. should be
examined to see that these have been granted in
 accordance with GFR and all necessary documents and
formalities have been completed.
16 (i) See that a stock account of blank receipt books has -do-
been maintained check the balance and verify the
stock-in-hand by actual counting with the shown in the
stock book.
(ii) See that securities have been furnished by all the -do-
officials who handle money and property.
 (iii) See that annual store return has been prepared to -do-
shown how much capital is looked-up in the store
17 Furniture & other equipments, Machinery & Tools Not provided
and plant registers
See that the balance of articles of furniture and
machinery have been checked annually by officer
responsible for that and that the result of the
verification have been noted against the article
concerned.
18 Liability Register:- -do-
It should be examined whether suitable action is taken
to have the liabilities liquidation expeditiously.
19 Loans:- Not provided
Special care should be taken to examined that all
amounts drawn are properly accounted for and that
suitable record is kept to show that the loans have been
given to the persons entitled to receive this and
conform to the rules on the subject, it should be sent
that the recoveries are effected regularly. In case of
delay in repayment of loan it should be seen that the
penal interest has been charged at the rate prescribed
by government.
20 Register of watching the progress of expenditure:- Cash book was checked
Entries in this register should be checked with the cash
books, stock registers, etc. to see that the register is
being maintained properly. The allocation of the
expenditure between recurring and non-recurring
should be carefully checked.
21 The report may be called for to ascertain compliance to
the objection raised efforts should be made to get the
objection settled which relate to commissions/non-
maintenance of records over-payment of personal
claims.

Other irregularities which cannot be get right and still

continuing may be take in the Inspection Report to be
handed over to DDOs bringing out that it was pointed
out by Internal Audit party also.

JAO/AAO

Dated:- Signature of Inspecting Audit Officer