1

NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT
CITY ZONE

No. F._________/IAD/ZAP/CZ/2017 Dated:

Sub: - Physical verification and test check audit report on the account of Division
EE (Electric)-I, City Zone for the period 09.06.2015 to 31.03.2017

Please find enclosed herewith the Audit Inspection Report on account of records of the
office of Executive Engineer, (Electric)-1 City Zone, for the period 09.06.2015 to 31.03.2017.
Para wise replies/comments be sent to the office of the undersigned within a period of the four
weeks of the receipts of this report.

INTERNAL AUDIT OFFICER

ZAP/CITY SP ZONE
Ex. Engg. (Electric)-1
City SP Zone

Copy to:-

1. Supdt. Engineer(Electric) City SP Zone for n. a. please

2. D.C.A. (I.A.D.) for information pl.
3. Office copy

INTERNAL AUDIT OFFICER

ZAP/CITY SP ZONE
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NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT
CITY SP ZONE

No. F._________/IAD/ZAP/C SP Z/2017/ Dated:

Sub: - Physical verification and test check audit report on the account of Division EE
(Electric)-1, City Zone for the period 09.06.2015 to 31.03.2017

INTRODUCTION:-

The I.A.R. on the accounts of Division-EE (Electric)-I City Zone was conducted by the
ZAP/City Zone comprising of Smt. Swaran Kumari, IAO, Sh. K.K.J.R.K.Prasad , A.A.O. smt
Kiran Negi ASO, & Sh. Sandeep Kumar Acctt. Asstt., Achea lal LDC. The audit was conducted
during the period 08.05.2017 to 22.05.2017

Sh. A.K. Rathore was holding the post of Ex. Engg. (Electric)-1 City Zone at the time of
audit.

AIMS AND OBJECTIVES

The main aim of the Division is to provide facilities such as installation and maintenance
of lights w.r.t roads, street, Mpl. buildings etc. under the jurisdiction of City and S. P. Zone.

HOD/H.O.S/D.D.O’s/CASHIERS

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

S. No. HOD Head of Office DDO Cashier/TC

1. Sh. A.K. Rathore Sh. A.K. Rathore EE Sh. Sanjeev Choudhary
E-in C EE(Electric) -I (Electric)-I

Budget Allocation and Expenditure for the year

Budget Year Expenditure up to year ending Excess/Saving

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 sanctioned Filled Vacant

1 Group A 02 01 01
2 Group B 17 08 09
3 Group C 137 30 107
4 Group D 96 45 42
Daily wager Substitute -- 09
252 93 159

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.
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Old Audit Report

There were 74 audit paras outstanding in respect of EE. (Electric)-1 City Zone. The
department has not made compliance of these paras and as such nil paras have been settled.
These 55 paras have been incorporated with current audit report as part-I (old audit report).
Details of Old Recovery

Sl. Period of Date of No & date of letter under Paras settled Para Money value
No. account audit which report was issued outstanding
audited No of No. of G.P M.V.
paras paras P
settled
01 1991-92 to 18.11.1993 F.08/IAD/DAP-IV/94/388 06 05 01 Rs.11386/-
Nov. 93 dt. 18.02.1994
02 1993-94 11.11.1997 F.19/IAD/DAP-III/98/292 14 Nil 13 01 Rs.90650/-
dt. 30.06.98
03 1997-98 to 20.04.2000 F.53/IAD/DAP-III/KG/ 01 Nil 01 00 nil
1999-2000 2000/237 dt. 19.10.92
04 2001 to 19.01.2006 F./IAD/DAP-III/2006/94 16 Nil 16 00 nil
2005 dt. 31.03.2006
05 01.4.2012 09.6.2014 to F.1548/IAD/ZAP/CZ/2015 18 Nil 15 03 Rs.22,751/-
to 23.6.2014 dt. 18.02.2015
09.6.2014
06 10.06.2014 08.06.2015 to F.1565/IAD/ZAP/CZ/2015 19 nil 14 05 Rs.47961/-
To 19.06.2015 dt. 08.09.2015
08.06.2015
Total: 74 Nil 64 10 Rs.1,72,748/-

Current Audit Report

Details of Current Recovery (Audit Period 09.06.2015 to 31.03.2017):-
Para No.’s Total Recoveries (in Rs.) Amount Recoveries Balance (in Rs.)
04 Rs.30500/- NIL Rs.30500/-
10 Rs. 8700/- NIL Rs.8700/-

Total: - Rs. 39200/-

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/CZ/2015/01, dated 05.05.2017

1. Paid voucher (Plan & Non Plan)

2. Tender file/Account file
3. CEA register/Medical Reimbursement register
4. Work order register
5. MBs with stock register
6. Budget watch register
7. Unpaid voucher
8. Contractor’s register
9. Daily Diary of JEs, AEs and AEs who are drawing conveyance allowance
10. Stationary register
11. Hindrance register
12. Stock book
13. Circular file
14. Advance register
15. Imprest register
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16. Tender sale register

17. Tender opening register
18. Work register
19. Muster roll with register
20. Demand register along with copies of demand release
21. G-8 Book stock register
22. G-8 books with challan
23. Postage register
24. Temporary advance register
25. PF & SB of staff with ECR
26. Attendance register with biometric sheet
27. Certificate showing no fire, no theft, embezzlement during the audit period
28. Cash book
29. Property register
30. Log book of vehicles, if any
31. Any other auditable record

PARA No. 1: NON PRODUCTION OF RECORD

Out of the above requisitioned record, items numbers at S. No. 1(partly), 2,(P), 3, 4, 5, 6,
10, 12 (stationary register)13, 14, 15,17, 21(partly) 22, 23, 25(Partly) 28, & 29 were produced
by the department and provided certificate in respect of items mentioned at S. No. 08,
11,13,16,18,,19,24,26,27 and 30. The remaining record as mentioned in the requisition letter
were 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 given to Audit. In case any record
remained unchecked other than produced, then the entire responsibility will lie on the shoulders
of the concerned officers/officials of the deptt.

As a result of physical verification and test check of accounts of the office of EE

(Electric)-1, City Zone, whatever record was produced, the following discrepancies/
irregularities/ omissions/ errors etc. came to notice of the Audit.

PARA NO.-2: IRREGULARITIES IN BUDGET WATCH

REGISTER (2015-16, 2016-17).

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

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

Non maintenance of the Budget Register in accordance with the prescribed procedure be
explained to audit.
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PARA NO.-3: IRREGULARITIES IN EXPENDITURE UNDER BUDGET

ALLOCATION.

As per statement of budget allocation and expenditure provided by the department for the
year 2014-15, it was noticed that department had failed to keep proper watch on the allocations
& expenditure during the financial year. The detail of the same is given below:-

Budget Allocation and Expenditure for the year 2014-15

Budget Head Year Budget Allocation Expenditure up to Excess/Saving

year ending
LA–Road 2015-16 126.20 Lac Rs.95,06,062/- Rs.3113938/
XL-IX- Med. 2015-16 84.33 Lac Rs. 75,61,214/- Rs.871786/-
XL-IX-D- IV 2015-16 6.19 Lac Rs. 6,18,934/- Rs.66/-
XL VIII-Edu 2015-16 42.94 Lac Rs.43,82,959/- Rs.88959/-
67-1001 A 2015-16 35 Lac Rs.7,71,151/- Rs.2728849/-
67-1001 B 2015-16 80 Lac Rs.46,40,131/- Rs.3359869/-
67-1001 C 2015-16 370 Lac Rs.2,08,10,182/- Rs.16189818/-
67-1001 D 2015-16 260 Lac Rs.2,53,62,389/- Rs.637611/-
67-1119 2015-16 7 Lac Rs. 4,59,252/- Rs.240748/-
67-1156 2015-16 0.10 Lac Rs.3878/- Rs.6122/-
67-1193 2015-16 0.10 Lac Rs.1000/- Rs.9000/-

67-1018 2016-17 Rs.158 crores Rs158 crores Rs.00

46-1217 2016-17 Rs.1518053/- Rs1518053/- Rs.00
89-1155 (City 2016-17 Rs.15.12 Lac Rs.1512008 Rs.08
Zone
89-1155 City, 2016-17 Rs.10.46Lac Rs.1045951/- Rs.49
SP zone
66-3565 2016-17 Rs 0.97 Lac Rs.96947/- Rs.53/-
73-1083 2016-17 Rs 4.94 Lac Rs.493829/- Rs.171/-
67-3173 2016-17 Rs 5.91 Lac Rs.588548/- Rs.2452/-
89-1153 2016-17 Rs 4.14 Lac Rs.413538/- Rs.462/-
89-1214 (Ward 80) 2016-17 Rs 1.00 Lac Rs.99945/- Rs.55/-
89-1214(Ward 81) 2016-17 Rs 8.99 Lac Rs.198375/- Rs.625/-
89-1214(Ward 83) 2016-17 Rs 3.29 Lac Rs.328441/- Rs.559/-
89-1214(Ward 75) 2016-17 Rs 4.48 Lac Rs.447558/- Rs.442/-
89-1214(Ward 90) 2016-17 Rs 2.1 Lac Rs.209150/- Rs.850/-
67-3171 2016-17 Rs 22.08 Lac Rs.2205811/- Rs.2189/-
90-1107 2016-17 Rs 4.07 Lac Rs.406907/- Rs.93/-
66-3129 2016-17 Rs 3.99 Lac Rs398220/- Rs.780/-
66-1111 2016-17 Rs 13.62 Lac Rs.1300423/- Rs.61577/-
66-3011 2016-17 Rs 16.66 Lac Rs.1666000/- Rs.00
89-1214(Ward 88) 2016-17 Rs 5.75 Lac Rs.574039/- Rs.961/-
66-1109 2016-17 Rs 1.15 Lac Rs.114245/- Rs.755/-
45-1217 2016-17 Rs 1.16 Lac Rs.105938/- Rs.54062/-
41-1083(39-1083) 2016-17 Rs 664795/- Rs.664795/- Rs.00
89-1157(ward 80) 2016-17 Rs 20.00 Rs.1705309/- Rs.294691/-
89-1157(ward 81) 2016-17 Rs 20.00 Rs.1203435/- Rs.796565/-
89-1157(ward 84) 2016-17 Rs 20.00 Rs.471931/- Rs.1528069/-
89-1157(ward 82) 2016-17 Rs 20.00 Rs.1490056/- Rs.509944/-
89-1157(Ward86) 2016-17 Rs.20.00 Rs.873629/- Rs. 1126371/-
89-1157(ward 83) 2016-17 Rs 20.00 Rs.458853/- Rs. 1541147/-
89-1157(ward 73) 2016-17 Rs 20.00 Rs.413138/- Rs. 1586862/-
89-1157(ward 75) 2016-17 Rs 20.00 Rs.405572/- Rs. 1594428/-
89-1157(ward 76) 2016-17 Rs 20.00 Rs.451126/- Rs. 1548874/-
89-1157(ward 79) 2016-17 Rs 20.00 Rs.469389/- Rs.1530611/-
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89-1157(ward 85) 2016-17 Rs 20.00 Rs.465830/- Rs.1534170/-

89-1157(ward 87) 2016-17 Rs 20.00 Rs.472069/- Rs.1527931/-
89-1157(ward 88) 2016-17 Rs 20.00 Rs.399700/- Rs.1600300/-
89-1157(ward 89) 2016-17 Rs 20.00 Rs.454315/- Rs.1545685/-
89-1157(ward 90) 2016-17 Rs 20.00 Rs.663252/- Rs.1336748/-
LA road 2016-17 Rs 156 Lac Rs.14866466/- Rs.733534/-
XL-III-D IV 2016-17 Rs 15.00 Lac Rs.1493370/- Rs.630/-
XL-IX- Med. 2016-17 Rs 58.54 Lac Rs.5762862/- Rs.91138/-
XL VIII-Edu 2016-17 30.58 Lac Rs.3035212/- Rs.22788/-
XL-VII-A 2016-17 Rs 2.51 Lac Rs.250548/- Rs.452/-
67-1001 A 2016-17 Rs 71.00 Lac Rs.973552/- Rs.6126448/-
67-1001 B 2016-17 Rs 90.00 Lac Rs.4927492/- Rs.4072508/-
67-1001 C 2016-17 Rs 375.00 Lac Rs.20052812/- Rs.17447188/-
67-1001 D 2016-17 Rs 278.00 Lac Rs.26485596/- Rs.1314404/-
67-1119 2016-17 Rs 7.00 Lac Rs.562423/- Rs.137577/-
67-1156 2016-17 Rs 0.05 Lac Rs.2522/- Rs.2478/-

DDO is responsible for the control of expenditure against the sanctioned budget placed at
his disposal. No expenditure should be incurred during the financial year on any work/item not
covered by the budget grant. If any excess over the allocation of budget is apprehended, the
department should obtain additional allocation before incurring the excess expenditure. Similarly
all the anticipated savings should be surrendered by the prescribed date, before the close of the
financial year.

From the above, it is revealed that the department has violated the terms of GFR
for controlling the budget allocation & expenditure during the said year, as there is huge
difference in allocated budget and expenditure incurred during the financial year. Savings were
not surrendered and expenditure incurred without getting sanctioned additional budget under
their respective Head. Reasons for the above irregularities be explained to audit.
PARA NO. 4: NON DEPOSIT OF TENDER COST ON A/C OF DOWNLOADING OF
TENDER DOCUMENTS. (LOSS TO MCD AMOUNTING TO RS.30500/-)

While scrutiny of tender files, so produced to audit it was noticed that in a number. of cases,
the contractor had downloaded the tender document without depositing tender cost. The detail of
the same as under-:

S.No. Tender No. Name of Agency Tender Amount

1 268991 M/S ACE Engineering Bureau Rs.1000/-
2 Do M/S Chauhan Electricals Rs.1000/
3 257504 M/S Kamal Electricals. Rs.1000/
4 Do M/S ACE Engineering Bureau Rs.1000/-

5 267911 M/S Amit Elevator Services Rs.500/-

6 Do M/S fateh trading Co. Rs.500/-
7 Do M/S Mehul Enterprises Rs.500/-
8 260933 M/S Basal Electric Const. Rs.500/-
09 Do m/s/R.K.J.Electric Rs.500/-
10 Do M/S Chibba & co. Rs.500/-
11 Do M/S kafil Electric works Rs.500/-
12 Do M/S Kamal Electricals. Rs.500/-
13 253625 M/S Fire guard engineers Rs.500/-
14 260937 M/S Chibba & co. Rs.500/-
15 Do M/S Arpit Elect.Co. Rs.500/-
16 Do M/S Amit Elevator Services Rs.500/-
17 Do M/S Kamal Electricals. Rs.500/-
18 259353 M/S ACE Engineering Bureau Rs.500/-
19 270300 M/S Bharat Trading co. Rs.500/-
20 Do M/S Dev Engineers Rs.500/-
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21 Do M/S Arpit Electric Co. Rs.500/-

22 Do M/S Chibba & co. Rs.500/-
23 Do M/S G.D. Electricals Rs.500/-
24 261759 M/S Kamal Electricals. Rs,1000/-
25 Do M/S ACE Engineering Bureau Rs.1000/-
26 Do M/S Sheela Electric Works Rs.1000/-
27 273802 M/S Kamal Electricals. Rs.500/-
28 Do M/S Arpit Electric Co. Rs.500/-
29 Do M/S Chibba & co. Rs.500/-
30 Do M/S ACE Engineering Bureau Rs.500/-
31 264176 M/S Balaaji Electricals Rs.500/-
32 Do M/S Electrician Rs.500/-
33 Do M/S Kamal Electricals. Rs.500/-
34 278512 M/S Arpit Electric Co. Rs.500/-
35 270312 M/S Chibba & co. Rs.500/-
36 Do M/S Dev Engineers Rs.500/-
37 Do M/S G.D. Electricals Rs.500/-
38 267407 M/S Balaaji Electricals Rs.500/-
39 Do M/S Master Electric store Rs.500/-
40 Do M/S Technoview Electricals Rs.500/-
41 262906 M/S Balaaji Electricals Rs.1000/-
42 Do M/S Chibba & co. Rs.1000/
43 Do M/S Annupama Engineers Rs.1000/
44 Do M/S Illuminators & Circuiteers Rs.1000/
45 Do M/S Dev Engineers Rs.1000/
46 Do M/s M.J. Electricals Electronics Rs.1000/
47 Do M/S Master Electric store Rs.1000/

Total Rs.30500/-
Since the E_ tendering system has been introduced in the MCD w. e. f. 2005 onwards, all
the tenderers participating in the tender are required to pay the requisite tender cost as decided by
the department. During the course of audit, it has came to the notice that no record of Tender
cost/fee was being maintained in the department in respect of the sale/download of tenders and
also the scrutiny of the tender files disclosed that no document was kept in the tender files from
which it could be verified that the requisite tender cost had been paid by all the participating
tenderers.

Department Should maintain a register containing the detail of NIT wise sale/download
of tender documents, name of the person who has downloaded the tender document/to whom
tender document issued, amount realized on a/c of sale of tender documents etc. On one side of
the register computerized transaction list in which the detail of the contractors who have
downloaded the tender documents is given, should be pasted and on the other side amount of
tender cost realized from the contractor along with DD No. /G-8 No. should be mentioned. The
register should be checked and verified by the Officer concerned.

As per the above list, recovery amounting to Rs. 30500/- on a/c of sale of tender
documents is required to be effected. The cases mentioned in the list are only illustrative but not
exhaustive. Similar discrepancies in other cases are not ruled out. Hence, the Officer concerned
is requested that necessary action may be initiated to recover the tender cost from the
participating tenders from the date of introduction of “E” Tendering system to till date under
intimation to audit and the reason for the said irregularities be explained and justified to audit.

PARA NO.5:- 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
2014-15 ( Non Plan), however revealed a number cases where revenue stamps have not been
 8

affixed on the bills in which the amount was more than Rs.5000/-.Some vouchers are illustrated
as under in which Revenue Stamps were not affixed:-

S.No. Voucher no. Date Name of Agency Amount(Rs)

2016-17 Non Plan
01 02 EEE-1 11.08.2016 M/S Amit electric service Rs.268377/-
02 03EEE-1 11.08.2016 M/S Bharat trading Co. Rs.60903/-
03 04 EEE-1 11.08.2016 M/s R .k Enterprises Rs.164143/-
04 05EEE-1 11.08.2016 M/s Khanna sales Corp. Rs.82605/-
05 06 EEE-1 11.08.2016 M/s Khanna sales Corp. Rs.8300/-
06 07 EEE-1 11.08.2016 M/S ACE Engineering Bureau Rs.1372221/-
07 08 EEE-1 11.08.2016 M/S ACE Engineering Bureau Rs.35169/-
08 09 EEE-1 11.08.2016 M/S Sushma Electricals Rs.142256/-
09 10 EEE-1 11.08.2016 M/S Sushma Electricals Rs.124128/-
10 11 EEE-1 11.08.2016 M/S Sushma Electricals Rs.165998/-

Reasons for above irregularities be explained and justified to audit. Similar type of
practices be avoided in future.

PARA-06:- NON-VERIFICATION OF REMITTANCE INTO MUNICIPAL TREASURY:

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

PARA NO 7:- TENDER OPENING REGISTER

While checking the Tender opening register for the year 2014-15, the following
irregularities have been come to notice:-

1. Paging & paging certificate not available.

2. Contractor attendance not found on most of the cases.
3. It has been provided in CPWD Manual Vol. II that due publicity for inviting tenders be
made for a healthy competition at least three tenders should be entertained for healthy
competition. On scrutiny of tender’s cases it has been noticed that in almost all the cases
only two tenders have been entertained which cannot be taken as healthy competition.
Hence, there is violation of CPWD Manual and GFR.
4. Detail of Earnest Money amount & date with G-8 receipt no. was not shown in the tender
opening register.
5. At page no.09,15,22,23,25,26,27 overwriting and cutting made in the mentioned due
date of tender opening without any attestation of higher/competent authority.
6. At page no.23, due date of tender opening was 30.06.2016 as per given stamp but
signature of Accountant was made in 25.06.2016,whereas the EE(Electric)- I signature
made on 30.06.2016.
7. At page no.32, as per stamp ,due date of tender opening was 18.07.2016 against item
no.05 of NIT 06 dated 08.07.2016.but Accountant signed on 08.07.2016 tender opening
whereas EE(E)-I signed on 18.07.2016.
8. At page no.42, tender no.2682/NIT no.14 dated 31.08.2016 and due date 02.08.2016
against item no 01the date of tender opening was mentioned 02.08.2016 instead of
02.09.2016 and EE(E)-I not signed the entry of tender opening.

Reason for the above irregularities be explained to audit.

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PARA NO.-08: CHECKING OF THE G8 BOOKS AND STOCK BOOK REGISTER.

Department had provided the following G-8 books along withG-8 Book Stock Register
for scrutiny/checking of audit:-

1. CE 59401 to 59500 dated 24.07.2015 to 22.03.2016

2. CK 54001 to 54100 dated 22.03.2016 to 23.11.2016
3. CK 56201 to 56300 (used up to 56284) dated 23.21.2016 to 03.05.2017
During the course of audit while checking the G-8 books, it has been noticed that:

1. Most of the Original G-8 receipt found in the G-8 Book and not issued to the party.
2. Name and designation of person/official concerned is not mentioned even in a single G-8
receipt.
3. G-8 no 54001 to 54100 no closing certificate at the end of the G-8 receipt book.

The income verification certificate issued by the Zonal Treasury through Zonal
Accounts Authority with regard to income/money deposited by the department through
G-8 books/challans was not produced to audit. In case of non deposition of the money
realized through the G.8 Books, not produced to audit or any other discrepancy found
at a later stage, the sole responsibility will lie on the shoulders of the concerned
department.

Reason for the above said irregularities may please be explained to audit.

PARA NO: 09 LATE DEPOSIT MUNICIPAL FUND AFTER 24 HOUR

As per instructions issued by Worthy Commissioner, MCD vide Circular

No. PSC/790/2009 dated 6.8.2009, Section-IV of the Receipt and Payments Code of MCD
specifies that “All moneys receipt for credit to the Municipal Fund either in the sub-offices or the
treasury shall be remitted to the treasury or the Bank, as the case may be, the next day.”

During the course of audit while checking the G-8 books so produced to audit with
deposit challans, it was found that staff has deposited the Municipal fund after 24 hours as
mentioned under :-

S.No. G-8 No Date Amount

Deposit date
01 59427 08.10.2015 dated 12.10.2015
02 59428 to 59428 19.10.2015t to 23.10.2015 Dated 23.10.2015
03 59478 to 59486 18.02.2016 to 23.02.2016 Dated 24.02.2016
04 59493 to 59498 09.03.2016 to 14.03.2016 Dated 14.03.2016
05 54001 to 54007 22.03.2016 to 28.03.2016 Dated 28.03.2016
06 56218 to 56221 09.12.2016 Dated13.12.2016
07 56247 to 56249 03.02.2017 Dated 08.02.2017
08 56258 to 56267 09..03.2017 to 14.03.2017 Dated 15.03.2017
09 54008 28.03.2016 Dated 30.03.2016
10 54039 17.06.2016 Dated21.06.2016
11 54055 12.08.2016 Dated 16.08.2016
12 54057 26.08.2016 Dated 29.08.2016
13 54061 02.09.2016 Dated 05.09.2016
14 54068 16.09.2016 Dated21.09.2016
15 54081 14.10.2016 Dated 17.10.2016
16 54096 04.11.2016 Dated 08.11.2016
17 59403 31.07.2015 Dated 03.08.2015
18 59406 06.08.2015 Dated 10.08.2015
19 59408 14.08.2015 Dated 18.08.2015
20 59419 01.10.2015 Dated 05.10.2015
21 59428 19.10.2015 Dated 23.10.2015

Reason for late deposition of money may be clarified to audit.

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PART-10: IRREGULARITIES FOUND IN TENDER AND ACCOUNTS FILES

SO PRODUCED TO AUDIT FOR AUDIT SCRUTINY.

During the test check audit of Account and Tender files the following discrepancies /
irregularities were noticed –

W.O. No. EE(E)-I/16 dated 10.06.2016 M/S ACE Engineers Bureau.

i. As per s.n.25 of term and condition of tender the contractor has to depute the skill
and trained staff only but the contractor has deputed the 04 skilled, 04 semi skilled
and 08 unskilled workers as per labour report (date not mentioned )so given /
produced by M/S ACE Engineers Bureau. It is not as per terms and condition of
tender.
ii. As per labour report given by contactor total no of working days shown 160 days. As
per labour law after six working days ie Sunday (Rest Leave) must given to worker.
So deduction of the Sunday and national holiday (as A/C of 15 August) the total
working days comes up 142 days the amount paid Rs.107300/- to the worker the
contractor as per labour report.
iii. Total 11 labour report should be placed/ attached with the bill but single labour
report was attached so recovery of Rs. 2000/- (10X200) on account of labour report
for the contractor.
iv. At page no32 JOR checked for Rs. 1532550/- by D/Men (E) on dated 25.05.2016 but
JOR not approved /signed by AE(E) Planning/EE(E) planning.
v. Item no 03 supply of XLPE insulated and PVC sheathed around cable confirming to
(part-I) of size 2.5 squm three core aluminum conductor cable of 1.1 KV grade as
required .Detail of difference of cable used by the contractor are as under.

S.N. Name of item Qty.as per Qty As per Diff. Amount.

MB actual
01 Item No. 03 3X2.5squm.cable 743.50 713.50 mtr 30 mtr Rs.2700/-
Page 27, 28
of MB
(30x90)
no.19261

The excess payment of Rs.2700/- to the contractor may be recovered from the
contractor through G-8/ challan and deposit in the Municipal Treasury.
vi. Work completed on 28.11.2016 but JE put up the bill on 10.01.2017 whereas the bill
should be given with in 10 days after complete of work.

W.O.no EE(E)-I/45 dated 09.12.2016 M/S ACE Engineers Bureau.

i. Performa for preparation of estimate not filled up.

ii. Performa signed by JE/AE/EE(E)-I accept contractor /department as per Performa
iii. In the work order the agency and rate approved up to 04.02.2017 but work to be
completed 17.03.2017 as per agreement / work order.

W.O.no. EE(E)-I /32 dated 27.09.2016 M/S Chibba & Co.

i. Original bill passed on 31.03.2017 but bill not given to cashier for demand /payment.
ii. As per MB no. 19283 first and final bill given on 09.12.2016 by the JE at page no 01
of the MB without record entry of this bill.
iii. In the end of the bill JE certificate given on 03.12.2016 and also certificate by AE
that checked 50% and above and work satisfactory on 03.12.2016 the date of entry
of starting bill was 09.12.2016 both date were contradictory whereas the work started
05.10.2016 (as per actual) and completed on 03.12.2016 (as per actual)
iv. Work completion time was 02 month but labour report accept one report attached the
account file. Hence 03 more labour report should be attached with the bill the
recovery of Rs.600/- (200x03) should be made from the contractor and deposit in the
Municipal Treasury.
v. Completion report not pleased in the account file.
 11

Work order no. EE(E)-I /22 dated 23.06.2016 M/S Arpit Electric Co.
i. One fortnightly labour report in attached with bill instead of 10.Hence Rs.1800/-
(9X200) on account of labour report may be recovered from the contractor through
G-8/ challan and deposit in Municipal Treasury.
ii. In the given labour report period of work not mentioned’
iii. Item no.24/32( as per MB no.19267 page 31) work ‘providing lowering and fixing
/pleacing in vertical at all depth , both ends threaded as required
100 mm dia quantity 244 @616 P.m Rs.14784/-
Rs.14784/- not included in the bill no.26311 whereas it was mentioned in MB no
19267 at page no.31 but bill amount was found correct Rs.436510/

Work order no.EE(E)-I/07 dated 16.05.2016 M/S Chibba & Co

i. As per bill form work completed on18.11.,2016 but in the 3rd page of bill form ,bill
given by JE on 15.11.2016 instead of 18.11.2016. How it possible ?
ii. In the MB page no.01 work DOS 23.05.2016 and DOC 28.09.2016 (work in
progress) as per actual mentioned whereas the work completed on 18.11.2016 as per
bill form and JE given the first & final bill in the MB/Bill form.
iii. Test check done by EE(E)-Ion 19.12.2016 at page no. 03 of MB & at page no. 13 of
MB, test check done by EE(E)-I on 10.10.2016 whereas the work completed on
18.11.2016 as per bill form. The test check statement of AE/EE(E)-I not pleased in
the account file.
iv. Completion report not attached in the account file.
v. The single fortnightly labour report was pleased in the file whereas work duration
was 06 month (23.05.2016 to 18.11.2016) so 12 fortnightly labour report should be
attached with the account file. In the attached labour report, DOC 15.11.2016 was
mentioned the single fortnightly labour for 15 days. 11X200= Rs.2200/-
Hence, Rs. 2200/- may be recovered on account of fortnightly report from the
contractor through challan /G-8 and deposit in the Municipal Treasury.
vi. The bill entered on 05.10.2016 in the MB at page no. by the JE
vii. Bill and measurement not accepted by the contractor on the MB.

PARA NO.11: IMPROPER MAINTENANCE OF CASH-BOOK.

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

The following irregularities were noticed during the test audit of the Cash Book of EE (E)-1
CZ.
i. Payment of Rs.203355/- received through voucher no.585/G dated 13.10.2015 and
transfer from A/C no. 413701010141040 but transferred to M/S BSES Yamuna
power Ltd. on 12.10.2015 , the both dates are contradictory. Please clarify the reason
in this regard.
1. The cash book was not page numbered and also no certificate regarding no. of pages was
available on the cash book.
2. Entries in the cash book were not signed by the dealing assistant as well as by the DDO/EE.
3. The cash book must be balanced/ closed on daily basis and should be initialed by the person
maintaining it and also by the DDO concerned but the same had not been done for many
years by any of the official.
4. The hard copy of the Bank Statement for the account, also not shown to Audit for cross
check.
5. Bank Reconciliation Statement for the Bank Accounts being operated in the deptt. was not
provided to the audit. It was reported by the staff that the same had not been prepared.
Without BRS, the deptt. cannot keep proper check on financial transactions. Non
preparation of the BRS is a serious lapse on the part of the deptt.
6. Cash book are not maintained for a particular finical year.

Non-maintenance of cash book in accordance with the prescribed procedure be

explain to audit
 12

PARA NO. 12. NON –MAINTENANCE OF BANK RECONCILIATION STATEMENT

In compliance of Circular No.CA/FMBO/09/382 dated 30.03.2009, Bank Reconciliation

of bank account by every office maintaining bank account is mandatory. However, the
department is not maintaining the bank, reconciliation statement which is an irregular act. It is
mandatory for all the DDOs to maintain the bank reconciliation statement on monthly basis by
reconciliation of the cash book with the DDDs account. Reason for not maintaining the bank
reconciliation statement may be explained to audit and the department should maintain the bank
reconciliation statement immediately. In cases of any irregularity in the DDO`s account, if any
than the entire responsibility shall lie on the shoulder of the concerned official and DDO.

PARA NO.13: NON ADJUSTMENT OF ADVANCE.

During the course of audit of Advance Register so produced by the department it comes
to the notice of audit that the following advances had not been adjusted till date:
S.No. Advance paid Amount

1. DSIDC Rs. 1189650/-

2. Smt. Sandhya Bharti Rs.48316/- ( 90% LTC advance)

TO
Reason for non adjustment of above mentioned advances till date may be justified to
audit

PARA NO 14 .PAYMENT OF BILLS WITHOUT WRITING THE BUDGET SLIP ON

THE VOUCHERS

A review of paid vouchers for the previous year made available to the audit revealed that
the Budget slips were not noted in the paid vouchers in a number of some cases. Due to non
writing the Budget slip, the availability of Budget previous expenditure and the balance in the
particular head of account could not be verified .Some of the cases are as under:-

S.N Voucher no Dated Amount

13 EE (E) 19.06.2015 Rs.5080919/-
01
14 EE (E) 19.06.015 Rs.3939598/-
02
15 EE (E) 19.06.2015 Rs.2693648/-
03
16 EE (E) 19.06.2015 Rs.857060/-
04
17 EE (E) 19.06.2015 Rs.5080919/-
05
18 EE (E) 19.06.2015 Rs.3939598/-
06
19 EE (E) 19.06.2015 Rs.2393648/-
07
20 EE (E) 19.06.2015 Rs.857060/-
08
07 EE (E) 23.02.2017 Rs.918835/-
09
05 EE (E) 11.09.2015 Rs.6675644/-
10
11 06 EE (E) 11.09.2015 Rs.4069611/-
12 07 EE (E) 11.09.2015 Rs.1940716/-

The reason and circumstances under the payment of bills have been without writing
the the budget slip on the vouchers may be elucidated to the audit.
 13

PARA NO.15: VARIATION IN QUANTITIES OF ITEMS OF WORK.

During the test check of record it has been noticed by the audit that there are variation in
quantities performed by the contractor comparison to the quantities mentioned in schedule.
Normally, variations up to 33% only are allowed in any item of work. But there are number of
cases, as detailed under which variation in items is more than 33%.

Work Order No. 36 dated 30.09.2016

S.N Name of work/Item Quantity as Qty.

per schedule Executed
1(a) 2x10 to 16 sqmm for 1 day… 3950 mtr. 2251 mtr.
1(b) 2 x 10 to 16 sqmm for 10 days 3950 mtr. 2251 mtr.
6(a) For 1 day 500 nos. 1350 nos.
6(b) For 10 days 500 nos. 1350 nos.

Work Order No.22 dated 23.06.2016

S.N Name of work/Item Quantity as Qty.

per schedule Executed
3(a) 2x2.5 sqmm+ 1x2.5 sqmm earth 30 mtr, 10 mtr,
wire….
3(b) 4x2.5 sqmm+ 2x2.5 sqmm earth 20 mtr, 0 mtr,
wire….
3© 2x6 sqmm+ 1x6 sqmm earth wire…. 25 mtr, 0 mtr,
5 Supplying & fixing 3 pin 5 amp…. 1 nos. Nil
6(a) 5/6 amp switch… 2nos. 0 nos.
6(b) 3 pin 5/6 amps socket…. 2 nos. 0 nos.
10 Extra for fixing…. 2 nos. 0 nos.
11(a) 40 amp….. 1 nos. 0 nos.
16 Providing & fixing…… 4 mtr. 0 mtrs.
18 P & F 6 SWG ………. 60 mtrs. 15 mtrs.
19(a) Up to 35 sqm….. 10 mtrs. 218 mtrs.
20 (a) Lying of one number….. 50 mtrs. 11 mtrs.
27(a) 2 x 10 sqmm….. 60 mtrs… 239 mtrs.
39(a) 6 mm dia steel rope…. 120 mtrs 60 mtrs.
40 (a) 3x 2.5sq. mm……. 150 mtrs 70 mtrs.
41 (a) 25mm dia…… 140 mtrs. 61 mtrs.
42 (a) G I Elbow 25mm dia….. 12 nos, 2 nos.

Work order No. 29 dated 01.02.2017

S.N Name of work/Item Quantity as per Qty.

schedule Executed
01 Laying of one number PVC sheathed……..
1(a) Up to 35 sq, mm…. 880 mtr. 0 mtr.
04 Supply of XLPE/PVC insulated and ……. 880 mtr. 0 mtr.
05 S&l of IPC EP 95 LT ABC……. 132 each 79 each

The deviation beyond the limit may result into the change of departmental justification of
rates and undue benefit to the contractor. It was also noticed that in a few cases some of the
scheduled items were even not executed. It shows that either the estimates were not realistic or
the items taken in the estimate were not done. Reasons for the same may be justified to Audit.
 14

PARA NO. 16:-OBSERATION REGARDING PAID VOUCHER

A). Voucher no. 09 dated 16.06.2016

i. The street light bill for the month of April 2016 for Rs.18057487/- vide bill no
TPDDL/G& /A/2016-17/43 dated 13.05.2016 for passing the above mentioned bill
passed on 08.06.2016 but budget provided to this bill on 14.06.2016 . So bill passed
without Budget
ii. Contingent bill not signed by EE(E) Narela Zone
iii. Detail of bill (Electric consumption detail) not attached with the voucher.
iv. Bill passed in compliance of direction of CE(Elect) in the minutes of the meeting
circulated vide no.EE(E)-I/NDMC/14-15/479 dated 27.11.2015 but copy of
minutes not attached with the voucher.
v. As per detail of connection attached with the voucher , in the last Colum, NA
mentioned in place of ward no. and shown 99 connection no. with amount Rs.
936000/- which is verified the AE(E) Narela Zone.
In this connection, the department given the clarification that ward no. not allotted
to some area of Narela Zone. How it is possible? Although, the TPDDL was also shown NA
in the Electricity consumption sheet of 99 no. connection. Please give the clarification in this
regard.
B.). In the some paid voucher Budget was left unsigned by AAO
C). Paid voucher no.03/dated 19.05.2016 EM refund without original G-8 receipt /no
request, no Indemnity bond.
D). In the some voucher payment detail not attached the voucher.

PARA NO. 17 : OTHER AUDIT OBSERVATIONS:

i) In some of the cases, signature of the contractor on the bill for acceptance of the
measurement was not obtained,
ii) G-8 Book Stock Register was not paged number and no paging certificate was given. More
over periodic check was not done by the superior authority.
iii) Work Order Register for the was not paged number and no paging certificate was given.
More over periodic check was not done by the superior authority.

iv) Paging not found on PF of official/officer.

v) Most of the Agreement executed after so many days instead of prescribed period.
vi) In some cases Fresh photo of the officials not affixed in the SB after completion if 10 year
service.

vii) The audit has observed that most of the files were incomplete. The entries in respect of leave,
increment, payment of arrears had not been found made in the S.Bs, sanction of leave on
the noting side of the file was also not found available, increment columns had not been
signed by the DDO.

INTERNAL AUDIT OFFICER

ZAP/CITY SP ZONE
15