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NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT
S. P. Zone

Mpl. Primary School Bldg.,

Ram Nagar, Arakashan Rd.
Pahar Ganj, N. Delhi-5

No.F.______/IAD/SPZ/2014/______ Dated_____________

Subject: Physical verification & test audit on account of SS (DEMS),

S.P.Zone, for the period 24.04.2012 to 08.11.2013.

Please find enclosed herewith the Audit Inspection Report on account of SS

(DEMS), S. P .Zone for the period 24.04.2012 to 08.11.2013.. Para wise
replies/comments be sent to the office of the undersigned within a period of the two
weeks of the receipt of this letter.

Encl: As above.

Internal Audit Officer

ZAP/S.P.Zone

Sh. Kaptan Singh,

SS (DEMS),
S.P.Zone

Copy to:
1 A.C., S.P.Zone, for kind information pl.
2 D.C.A. (I.A.D.) for information pl.
3 Office Copy.

Internal Audit Officer

ZAP/S.P.Zone

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NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT
ZONAL AUDIT PARTY/S.P.ZONE

No. F_______/IAD/ZAP/SPZ/2014/_____ Dated_______

Subject: Physical verification & test audit on account of SS(DEMS),

S.P.Zone, for the period 24.04.2012 to 08.11.2013.

INTRODUCTION:

As per approved programme the physical verification and test audit on account of
Building Department, SP Zone, for the period 24.04.2012 to 08.11.2013 was conducted
by the Zonal Audit Party, S. P. Zone , during the period 08.11.2013 to 27.11.2013. The
Audit Party consisting of the following staff working under the control and supervision of
Sh. Manoj Kr. Naresh, Internal Audit Officer, S. P. Zone conducted the audit of the said
office.

1 Sh. Pradeep Singh Rawat Accountant

2 Sh.Subhash Chand Mishra Acctt. Asstt.
3 Sh. Satish Sharma UDC
4. Sh. Sant RaJ UDC

Sh. Sh. Kaptan Singh was holding the post of SS (DEMS) S. P. Zone at the time of
audit.

AIMS AND OBJECTIVES

The main aim of the S S ( DEMS) S. P. Zone is to maintain cleanliness and remove
garbage from the streets, roads, schools, Community Centers, Hospitals, dispensaries,
Municipal Offices under jurisdiction of S P Zone. To take prosecution action against the
nuisance creators. 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. Mahabir Singh Sh.Kaptan Singh Sh.K.K. Lohat ------
AC/SPZ SS/DEMS CSI/DEMS

Budget Allocation and Expenditure for the year

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Budget Year Expenditure up Excess/Saving

to 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 Nil Nil Nil
2. Group B 15 09 06
3. Group C 71 58 (One DEO 13
Against vacant
Post)
4. Group D 1686 1230 456 (225 D/W
Sk’s are engaged
Against these
Vacant post of
Regular sk’s)
5. DW/Substitute nil nil nil
Total: 31 10 21

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 81 audit para’s outstanding & the department has made no compliance of
these paras as such Nil paras have been settled. The remaining 81 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 paras with
Para No.
1. 1989-90 5 Part V of Part V of 5
para 3 para 3
2. 1990-91 14 --- --- 14

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3. 1991-92 06 --- --- 06

4. 1992-93 07 --- --- 07
5. 1993-94 04 --- --- 04
6. 1994-96 05 --- --- 05
7. 1996-98 07 --- --- 07
8. 1998-01 06 --- --- 06
9. 2001-02 06 --- --- 06
10. 2002-03 08 --- --- 08
11. 2003-06 07 --- --- 07
12. 2006-09 06 --- --- 06
13. 2009-12 -- --- --- --
Total 81 --- --- 81

(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. 1989-90 Rs. 77,500.00 Rs. 20,000.00 Rs. 37,500.00
2. 1990-91 Rs. 37,396.00 --- Rs. 37,396.00
3. 1991-92 Rs. 28,382.00 --- --- Rs. 28,382.00 ---
4. 1992-93 Rs. 47,219.00 --- Rs. 47,219.00
5. 1993-94 --- --- ---
6. 1994-96 --- --- ---
7. 1996-98 --- --- ---
8. 1998-01 --- --- ---
9. 2001-02 Rs.1,540.00 --- Rs.1,540.00
10. 2002-03 Rs.10,002.00 --- Rs.10,002.00
11. 2003-06 --- --- ---
12. 2006-09 --- --- ---
13. 2009-12 --- --- ---
Rs.2,02,039.00 Rs. 20,000.00 Rs.1,82,039.00

Current Audit Report

Details of Current Recovery (Audit Period 24.04.2012 to 08.11.2013.):-

Para No.’s Total Recoveries (in Rs.) Amount Recovered Balance (in Rs.)
Nil Nil Nil Nil

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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 –II :CURRENT AUDIT

The following records were requisitioned for audit/scrutiny on test check basis
vide this office memo no, IAD/ZAP/SPZ/2012/01, dated 23.04.2012..

1. P.File & S. Books

2. Property Register;
3. Imprest Register;
4. OTA Register;
5. Budget watch register;
6. GIS Register;
7. Stationary Stock Register;
8. Temporary Advance Register;
9. LTC Register;
10. Cheque Registers;
11. Death/Retirement cases;
12. Record of Muster Roll;
13. Absentee Statement;
14. Cash book;
15. Prosecution Record of SS;
16. Record related pvt. Truck Hiring;
17. Office order/Circular Files;
18. Daily diary of staff;
19. G-8 book with challan;
20. Attendance register with biometric sheet;
21. Uniform Register;
22. Donation Register;
23. Water Elecricity Bill Record;
24. List of Substitute with Circle Wise;
25. Any other Auditable record.

PARA NO. 1 NON PRODUCTION OF RECORDS

Out of the above requisitioned records, the records at serial no. 1(P), 2, 3, 4,
5(P), 6, 7, 8, 9, 10, 11, 12(P), 13 to 20, & 22 to 24 were not produced to the audit for
inspection. Audit has issued several audit memos/reminders bearing no. IAO/ZAP/SPZ/
2013/05 , 07, 08, dated 12.11.2013, 18.11.2013 & 22.11.2013 respectively to produce
the complete records at the earliest to Audit for checking, but the department failed to
do so. Thus audit has observed that either, the remaining record is not maintained or

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the production of the same appears to have been avoided, Also, some chain/link-up
records were not produced to audit.

In case any lapses, embezzlement, malpractices or anything adverse, if arises at

a later stage in any record which is intentionally avoided to produce to the audit, the
individual concerned/department concerned himself/itself shall be held responsible for.

However, as a result of test check of record whatever produced to audit, the

following irregularities/omissions/errors/ lapses etc. came to the notice of audit which
are given below:

PARA NO.2:OBSERVATIONS REGARDING MUSTER ROLL STOCK BOOK:

During audit of muster roll stock book for the year 2012-2014 the following
irregularities were found:

1. Though the register was paged but no paging certificate was given in the
beginning of the register.
2. No copy of requisition letter for issue of muster roll forms sent to DEMS/HQ or
the requisition slips received from SI concerned, were produced before the audit,
hence it could not be ascertained whether the no. of Muster Roll forms
mentioned in the Muster Roll Stock Registers were correct or not.
3. No check by any supervisory officer was found in the stock book.
4. At many pages there were cuttings/overwriting without attestation by any
supervisory officer also needs to avoided with immediate effect.
5. Even the list of approved substitutes was not produced to audit to ascertain the
genuineness of engagement of substitute safai karamcharies in spite of repeated
personal requests and efforts.

PARA NO.-3: IRREGULARITIES IN BUDGET WATCH REGISTER.

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

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

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4. Entries made in the budget register were not initialed by the official
maintaining it and also by the DDO.
5. At page no 113 not a single entry made under head 61/1002 (Salary to class
II) allocated amount Rs. 15,00,000/- , 61/1193 (telephone expenses)
allocated amount Rs. 18,000/-.
6. Progressive total in some places found not correct. Moreover at page no 40
the progressive total reduced by Rs. 10, 00, 00, 000/- (Rs. Ten Crores) i.e.
Rs. 20, 25, 20, 778/-Rs. 10, 25, 20, 778/- = Rs. 10, 00, 00, 000/-. These
discrepancies occur due to non periodic check by the competent authority.
The necessary corrections be made immediately under intimation to
ACA/SPZ and audit.

Non maintenance of the Budget Register in accordance with the prescribed

procedure be explained to audit

Para No 4:- Lack of control over the expenditure against the Sanctioned Budget.
Budget Watch Register 2012-13

S.no. Head of Account Allocation Expenditure Difference

(Rs in Lac)
1 61-1002 - - Nil
2 61-1003 55.00 1,38,55,335.00 (-) 8355335.00
3 61-1004 4500.00 27,09,80,897.00 (-
)179019103.00
4 61-1119 1.00 20, 875.00 (-)79125.00
5 61-1193 0.15 Nil (-)15000.00
6 63-1003 65.00 2,62,42,669.00 (-)19742669.00
7 63-1004 23.00 Nil (-)2300000.00
8 63-1001 2.52 1,83,000.00 (-)69000.00

Budget Watch Register 2013-14

S.no. Head of Account Allocation Expenditure Difference

(Rs in Lac) upto
Jan-2013
1 61-1002 15.00 Nil (-)1500000.00
2 61-1003 150.00 6190347.00 (-) 8809653.00
3 61-1004 5400.00 169641236.00 (-
)370358764.00
4 61-1119 3.00 11069.00 (-) 288931.00
5 61-1193 0.1 Nil (-)1000.00
6 63-1003 100.00 5773308.00 (-)4226692.00
7 63-1004 140.00 30996.00 (-)13969004.00
8 63-1001 - 110000.00 (+)110000.00

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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 deptt. 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.

Reasons for the above irregularities be explained to audit.

PARA NO.-5: IRREGULARITIES FOUND IN THE ECRS:

The ECR of supervisory staff has been produced (2013-14 only)
containing details of SS, CSI, SI’s, ASI’s and LDC and following irregularities were
found:
1. The ECR shows that one computer operator Ms. Pooonam has been working
against the post of LDC but no record pertaining to her is available in this office
as per reported by the staff of SS/DEMS.
2. There is no detail regarding OPR or GPF loan, Society Loan etc.etc. In any of the
pages.
3. Cuttings/overwriting have been found at many pages.
4. Most of the mandatory columns like Date of increment, mpl accommodation are
not properly filled-up.
5. The was not paged numbered and no paging certificate was given at the
beginning of the register.
6. No supervisory check/signature of DDO are found anywhere in the ECR.
7. No Biometric No are mentioned against the name of employees.
8. Sh. Omprakash s/o Sh. Bansi Lal, ASI who is drawing his pay in the scale of Rs.
9300-34800+GP Rs. 4200 (present pay 13990+4200) was given bonus in the
year 2013-14 and his GIS deduction is made Rs. 30/- pm instead of Rs. 60/-
needs clarification.
9. Sh. Amardeep Kumar Chandrawanshi S/o Sh. Vijay Parshad, LDC who was
running absent since 02.06.2011 to till date sent his resignation in respose to call
back notices from deptt vide no 377/SS/DEMS/SPZ dated 24.06.2011 and its
reminder 728/SS/DEMS/SPZ dated 01.09.2011 on dated 27.09.2011. But the
deptt has not taken further action in this case which needs clarification.

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10. Smt. Nirmal W/O Sh. Om Shankar ASI is working in indoor duty in SS office and
she is paid conveyance allowance Rs. 725/- pm for outdoor duty and Rs. 75/- as
washing allowance which needs clarification.
PARA NO.-6: IMPROPER MAINTENANCE OF LEAVE RECORD:
On going through the scrutiny of Leave Record in the S. Book & P. File of Sh.
Padam Bhushan S/O Sh. Har Bhagwan, ASI, it has been noticed that Earned Leave
credited in the leave sheet w.e.f 01.07.1993 to 30.06.2009 seems entered in a single
day without verification from the competent authority i.e. SS/West Zone, from where the
said official has been transferred to S. P. Zone.
This deptt has nto got verification of Leave credited of the above said period from
the previous deptt. i.e. SS/West Zone and entered “Earned Leave Credit” to the
employee w.e.f. 01.07.2009.
It is pertinent to mention here that this case is an illustrative and not exhaustive.
There is a possibility of other cases of same nature in the deptt.
Reason for the above mentioned irregularities be clarified to audit and
official/officer in charge be directed to check other cases if any of same nature and take
necessary action/corrections under intimation to audit.
An audit memo bearing no. IAD/ZAP/SPZ/2013/06 Dated 12.11.2013 was
issued at the time of audit but no reply received till date.

PARA NO.-7: IRREGULARITIES IN THE UNIFORM STOCK BOOK-II

The following irregularities were noticed during the test audit of Uniform Stock
book –II (2001 to 2013) :-

1. The stock books were not page numbered and No paging certificate was
given.
2. Periodic check of the stock book had not been found conducted by the CSI or
SS/DEMS.
3. Overwriting and cuttings were seen in Stock Book, which were without
attestation of the competent authority. Overwriting in the Stock Book is not
permissible at all.
4. Thumb impressions had not been verified /attested by any authority.
5. The columns in the Stock Books were not in the prescribed format.
6. It was observed that 110 Gent sandle was issued to Sh. Ramesh Gulia ASI
C-75, Kishan Ganj on 06.10.2010 (page 6), 80 Gents sandle was issued to
Sh. Ashok Kumar, ASI, C-88 Kasab Pura on 04.08.2010 (page 6), 98 Gents
sandle was issued to Sh. Sanjay Kumar, ASI, C-88 Kasab Pura on
03.04.2012 (page 7), 78 Gents sandle was issued to Sh. Raj Kumar, ASI, C-
89 Pahar Ganj on 29.09.2013 (page 7). Similarly Paints, Khaki woolen,
Ladies Suits and Duppattas, Paint Coats, Gum Boot, Safety Googles and
Belts were issued directly to some ASI of various store instead of issuing it to
SI of the that store. It shows a pick and choose system was adopted in
distributing uniform items. Reasons for doing so be clarified to audit.

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PARA No. 8: NON- ADOPTION OF PROPER PROCEDURE IN RECEIVING AND

ISSUING MATERIAL IN STOCK BOOK.

The receipt of material from Central Store should be entered in the Main Stock
Register of the SS, Store and issued to concerned SI,s to the extent of their
requirement. After receiving the material from SS, Store the concerned SI,s should
have to issue the material to their respective ASI,s as per their requirement and ASI,s
have to follow the same procedure while issuing material to staff working under his
direct control as per the requirement of site/area, but the department was not following
the proper procedure of receipt & issue of material and issuing without ascertaining the
actual requirement, needs clarification.

PARA NO.-9: IRREGULARITIES FOUND IN THE PF AND SB OF THE EMPLOYEES:

During the course of audit, the following irregularities with regard to PF & SBs of
staff were found which are given as under:-
1. PF & SB of Sh. Rohtas S/o Sh. Dharam Singh ASI./SPZ (DOB 03.03.1967, DOR
31.03.2027)
(a) No new photograph was pasted after 10 year of service.
(b) Column no. 8 of not signed by the incumbent ;
(c) Leave record was not updated;
(d) Entry of medical & police verification not made in SB page No4.
(e) Personal file was not paged numbered.
(f) Cutting/ overwriting was not attested.

2. PF & SB of Sh. Padam Bhushan S/o Sh. Har Bhagwan ASI (DOB 27.10.1965
DOR 31.10.2025)
(a) No new photograph was pasted after 10 year of service.
(b) Column no. 8 of not signed by the incumbent ;
(c) Leave record was not updated;
(d) Entry of medical & police verification not made in SB page No 4.
(e) Personal file was not paged numbered.
(f) Cutting/ overwriting was not attested.
(g) Leave record was not signed by the Cometent authority

3. PF & SB of Sh. Neeraj Kant S/o Sh. Mahesh Kumar ASI (DOB 26.03.1969
DOR 31.03.2029)
(a) No passport size photo was pasted at the time of making Service Book, it needs
clarification.
(b) Mandatory entry of medical examination & police verification, permanent
address, marital status etc..had not been made in SB page No4.
(c) Signature/Thumb impression of employee in coloumn no.8 of service book
against entry of increments was not available.
(d) Personal File was not paged numbered.

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(e) Entry of payment of DA, Arrear, Bonus did not bear the sign. Of Accountant.
(f) Leave account was incomplete.
(g) No police verification report was placed in personal file;
(h) Copy of Educational qualification was not placed in personal file.
(i) Column no. 8 was not signed/verified by the incumbent.

4. PF & SB of Sh. Ved Parkash S/O Sh. Durga Parshad ASI (DOB 01.01.1970
DOR 31.12.2029)
(a) Mandatory entry of medical examination & police verification, permanent
address, marital status etc..had not been made in SB page No4.
(b) Signature/Thumb impression of employee in coloumn no.8 of service book
against entry of increments was not available.
(c) Many places in the Service Book, Cuttings and overwriting made without
attestation of competent authority.
(d) Entry of payment of DA, Arrear, Bonus did not bear the sign. Of Accountant.
(e) Leave account was incomplete.
(f) Though the entry of E/L w.e.f. 29.02.2000 to 04.03.2000 for five days was made
in SB but it was not deducted in leave balance.
(g) E/L credit of 15 days from 01.07.2000 to 31.12.2000 was not nade in E/L
account.

5. PF & SB of Sh. Anil Kumar Jawa S/o Sh Riju Ram Jawa ASI ( DOB
10.06.1967 DOR 30.06.2027)
(a) Mandatory entry of medical examination & police verification, permanent
address, marital status etc..had not been made in SB page No.4.
(b) No seal / stamp was available under the sign of competent authority on the first
page of SB showing personal detail.
(c) Signature/Thumb impression of employee in coloumn no.8 of service book
against entry of increments was not available.
(d) The entries of Annual Increment on 01.12.2000 & 01.12.2001 were not attested
by the SS concerned.
(e) Entry of payment of DA, Arrear and Bonus did not bear the sign. Of Accountant.
(f) Leave account was incomplete.
(g) Photograph was not changed after 10 year of service.
(h) No police verification report was placed in personal file;
(i) Copy of Educational qualification was not placed in personal file.

6. PF & SB of Sh. Suresh Chand Solanki S/o Sh Kallu Singh ASI ( DOB
16.12.1958 DOR 31.12.2018)
(a) No passport size photo was pasted at the time of making Service Book, it needs
clarification.
(b) Personal File was not paged numbered.
(c) Mandatory entry of medical examination & police verification, permanent
address, marital status etc..had not been made in SB page No 4.
(d) Signature/Thumb impression of employee in coloumn no.8 of service book
against entry of increments was not available.

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(e) Entry of payment of DA, Arrear and Bonus did not bear the sign. Of Accountant.
(f) Leave account was incomplete.
(g) No police verification report was placed in personal file;

7. PF & SB of Sh. Ashok Kumar S/o Sh Puran Mal ASI ( DOB 22.02.1962 DOR
28.02.1922)
(a) Mandatory entry of medical examination & police verification, permanent
address, marital status etc. had not been made in SB page No 4.
(b) Signature/Thumb impression of employee in coloumn no.8 of service book
against entry of increments was not available.
(c) No police verification report was placed in personal file;
(d) Leave account was incomplete.
(e) Personal File was not paged numbered.

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

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

PARA NO.-10: OTHER IMPORTANT AUDIT OBSERVATIONS:

1. In most of the S. Books & P.Files Paging in the noting side and
corespondance sides were not done.
2. VIth CPC fixation forms were not available in most of the files.
3. In some cases the leave account was prepared in the plain paper instead of
prescribed leave sheet. Moreover the EL/ML account not completed up to
date. An audit memo was issued in this regard but no reply from the deptt,
was given. The necessary steps may be taken up under intimation to audit.
4. In some cases the Grade Pay of the employee and ACP orders also was not
shown in the Service Book, even the increment columns were also not
completed up to date.
5. In most of the cases the leave application and its sanction were not found in
the Personal Files of the employee’s.
6. The recent photo of the employees was not affixed in their S. Book .
7. In most of the cases the signature of the DDO/Officer Incharge in the leave
sheet of the employees was not available.

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8. The cutting and overwriting in leave account and in the Service Book found
not attested by the competent authority.
9. The authority competent is requested to review all the relevant record to
review the DOB of the employees as this discrepancy is being shown in most
of the record, some of them have been shown in above audit paras of this
audit report.

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

Internal Audit Officer

ZAP/S.P.Zone

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