1

NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT
SADAR PAHARGANJ ZONE

No. F______IAD/ZAP/SPZ/2014/ Dated:

Subject: Physical verification and test audit of Accounts of Health Department Sadar
Paharganj Zone for the period from 07.09.2012 to 09.09.2013.

……………….

Please find enclosed herewith the Audit Inspection Report on account of Health
Department Sadar Paharganj Zone for the period from 07.09.2012 to 09.09.2013. Para wise
replies/comments be sent to the office of the undersigned within a period of the four weeks of the
receipts.

Internal Audit Officer

ZAP/ S. P. Zone
DHO/S. P. Zone

Copy to:
1 Dy.Commissioner/S.P.Zone, for information pl.
2 D.C.A. (I.A.D.) for information pl.

Internal Audit Officer

ZAP/SPZ.
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NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT
SADAR PAHAR GANJ ZONE

M.C.PRY.SCHOOL,
RAM NAGAR
NEW DELHI.110055

No. F________/IAD/ZAP/SPZ/2014/_____ Dated:-___________

Sub:- Physical verification and test check audit report on account Health
Department Sadar Paharganj Zone for the period from 07.09.2012 to
09.09.2013.

INTRODUCTION:-

The I.A.R. on the accounts of DHO/S P Zone. was conducted by Zonal Audit Party
/S.P.Zone comprising of Sh Manoj Kumar Naresh, A.O, Sh. Pradeep Rawat, A.A.O, Sh.Subhas
Chand Mishra, Accounts Asstt., Sh. Sant Raj UDC, & Sh. Satish Chand Sharma, UDC. The audit
was conducted 09.09.2013 to 25.09.2013.

Dr. P. K. Verma was holding the post of DHO (SPZ) at the time of audit.

AIMS AND OBJECTIVES

The primary aim of the department is to prevent the s[read malaria and dengue and
control/prevention of un-hygienic food in the SP Zone and issue licenses to entitled hotels,
restaurants, Dhabas etc, and take action as per DMC Act against unlicensed Dhabas, hotels
etc running in the zone as per DMC act.

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.
N.K.Yadav Dr. P. K. Verma Dr. P. K. Verma -----------

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 02 01 01
2 Group B Nil Nil Nil
3 Group C 10 07 03
4 Group D 16 12 04
Total 28 20 08

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 241 audit para’s outstanding the department has made compliance of as such
NIL para’s settled. The remaining 241 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 05 NIL NIL 05
2 1972 12 NIL NIL 12
3 1975-76 03 NIL NIL 03
4 1988-89 09 NIL NIL 09
5 1990-92 10 NIL NIL 10
6 1992-93 12 NIL NIL 12
7 1993-94 05 NIL NIL 05
8 1994-95 09 NIL NIL 09
9 1995-96 09 NIL NIL 09
10 1996-97 10 NIL NIL 10
11 1997-99 05 NIL NIL 05
12 1999-00 05 NIL NIL 05
13 2000-01 09 NIL NIL 09
14 2001-02 04 NIL NIL 04
15 2002-03 11 NIL NIL 11
16 2003-04 07 NIL NIL 07
17 2004-05 09 NIL NIL 09
18 2005-06 14 NIL NIL 14
19 2006-07 20 NIL NIL 20
20 2007-08 18 NIL NIL 18
21 2008-09 21 NIL NIL 21
22 2009-10 21 NIL NIL 21
23 2010-12 13 NIL NIL 13
Total 241 241

(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 2507.00 - 2507.00
2 1972 10323.70 - 10323.70
3 1975-76 NIL - NIL
4 1988-89 106849.00 - 106849.00
5 1990-92 48202.00 - 48202.00
6 1992-93 1394.00 - 1394.00
7 1993-94 20.00 - 20.00
8 1994-95 16.00 - 16.00
9 1995-96 100.00 - 100.00
10 1996-97 125.00 - 125.00
11 1997-99 654.00 - 654.00
12 1999-00 400.00 - 400.00
13 2000-01 579.00 - 579.00
14 2001-02 NIL - NIL
15 2002-03 640.00 - 640.00
16 2003-04 900.00 - 900.00
17 2004-05 100.00 - 100.00
18 2005-06 9430.00 - 9430.00
19 2006-07 NIL - NIL
20 2007-08 NIL - NIL
21 2008-09 700.00 - 700.00
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22 2009-10 14075.00 1325.00 12750.00

23 2010-12 2050.00 50.00 2000.00
Total 199064.70 1375/- 197689.70

Current Audit Report

During the course of current audit, 01 audit Memo’s highlighting various

regularities/discrepancies was issued. Department has shown no compliance to settle this audit
Memo. So all the audit objections have been incorporated in current audit report.

Details of Current Recovery (Audit Period 07.09.2012 to 09.09.2013.)

Para No.’s Total Recoveries (in Rs.) Amount Recoveries Balance (in Rs.)
09 Rs. 2000/- Nil Rs.2000/-
10 Rs 50/- Rs 50\- Nil
Total 2050/- Rs 50/- Rs 2000/-

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.

IAO/ZAP/SPZ
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PART-II (CURRENT AUDIT)

The following records were requisitioned for Audit/Scrutiny vide letter

No.IAD/ZAP/SPZ/2013/01 dated 09.09.2013:

1. Property Register
2. PF & SB with ECRs
3. Imp rest/contingency Register
4. Postage Register
5. Paid Muster Roll/ Substitute Register
6. Temporary Advance Register
7. Cash Book
8. Cheque/disbursement Register
9. OTA Register/sanction file
10. Stock Register
11. Medical Reimbursement Register
12. G-8 book/challans/G-8 Stock Register/
13. Income register
14. File relating to rejection of licence;
15. Token Register
16. Purchase files
17. Log Book of vehicles/
18. Indent book
19. Budget Watch Register
20. List of staff with sanction strength;
21. Record pertaining to U/A Guest House
22. Record pertaining to Raid by H/S
23. Prosecution books and register
24. Daily dairies of FHI/HI
25. Sanction file of Guest House
26. Attendance Register
27. L-I & L-II Record alongwith relevant files
28. Office order files containing various circulars issued from the various authorities
pertaining to the department/guidelines issued from time to time regarding the
department.
29. Auction file
30. Any other auditable records.

PARA NO.1: NON PRODUCTION OF RECORDS:

Out of the above requisitioned record, record at serial number 1,3,4,5,
6,8,9,10,11,13,14,15,16,18,19,20,21,24,26,28 and 29 were not produced to audit for
inspection and serial number 2, 12, 17,23, 25 & 27 were partly produced to audit . Rest of
the records either is not being maintained or the production of the same appears to have
been avoided, reasons to which may be explained to audit. It is further observed that no
complete/chain/linked record has been produced with regards to the record so produced
to audit inspite of repeated efforts, reason best known to the deptt.

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

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

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

VERIFICATION:

While conducting the physical verification, which could not be done of the store
of Health Department, it was found that the raid items pertaining to Health Department
SPZ & General Branch SPZ were lying in the same compound in a hotchpotch manner
resulting which audit was not able to verify the stock of raid items kept in the store.
However store in charge has been advised/ directed to maintain and segregate these two
stores and prepare a list of such articles pertaining to Health Department and serialized
the each item confiscated. Thus DHO/SPZ is requested to verify the stock at his own
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level, dispose off the unclaimed article as per rules under intimation to audit. It has also
been repeatedly mentioned in the previous audit reports but sorry to say nothing has been
done till date, the reason best known to the department itself.

PARA NO.3: IRREGULARITIES NOTICED IN L –I & L-II REGISTER SO

PRODUCED TO AUDIT:

During the course of test checking of L-I & L-II Register so produced to audit,
audit has observed as under:

1. The L-I & L-II entries were not made in the prescribed/printed register made for
the same purpose. These entries were found made in normal use register.
Moreover, whatever the registers were prepared by the deptt/officials i.e. L-I&L-
II register, the only seventeen entries of applicants/traders name and address were
found available in those registers, and other important particulars/entries, like
dates, signature of official and competent authority, status of file, License Fee,
specification of trade etc were not available in the L-I & L-II register.

2. No paging was done in the L-I Register, no paging certificate was found at the
first page of the register.

3. It also has been observed that in L-II register, the amount of license fee and its
renewal was not mentioned so audit was not in position to calculate the revenue
through renewal of licenses.

PARA NO.4: AUDIT OBSERVATIONS WITH REGARD TO LOG BOOK :

During the course of audit the log book of Ambassador Car bearing no DL1CJ-6814 was
produced to the audit, the following observations were noticed:-

1. No paging or paging certificate was given on the beginning of the log book.
2. No certificate was given that the meter of vehicle is in good working condition.
3. As the vehicle is running on the CNG fuel so a sanction of CNG is required which
was not shown to audit, it needs clarification.
4. Fuel refilling receipts were not produced to audit.

PARA NO.5: AUDIT OBSERVATIONS WITH REGARD TO STATIONERY

REGISTER:

The Stationery Register of DHO Office/Malaria was not produced to audit. It was
reported that this record was not being maintained but all material received from Malaria
Store (Jhandewalan) & issued/used the same without the entry made in any register. This
is being a serious lapse on the working of department itself. The matter may be look into
by the competent authorities as to from how the office is being run in the absence of
stationery items, and if the stationery is being received from HQ why a register is not
being maintained. Non-maintenance of Stationery Register is a serious lapse on the part
of the officer/officials.

During the course of audit, it was suggested/guided the staff to stop this practice
and prepare the required record immediately and also to keep the said mandatory record
with immediate effect. The reason/clarification for not maintaining the said record may
be given to audit.

PARA NO.-6: 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:-
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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.
4. Entries made in the budget register were not initialed by the official maintaining it
and also by the DDO.

Non maintenance of the Budget Register in accordance with the prescribed procedure
be explained to audit

PARA NO.7: LACK OF CONTROL OVER THE EXPENDITURE AGAINST THE

SANCTIONED BUDGET:

On scrutiny of Budget Watch Register for the year 2012-13, it has been noticed
that the department has failed to keep proper watch on the allocation and expenditure
during the said financial year. The details are given below:

2012-13

S.No. Head of A/C Allocation Expenditure Vatiation

(saving Excess
1 31/1001 14,00,000/- 11,51,566/- 2,48,434/-
2 34/1001 02,00,000/- 05,71,584/- 3,71,584/-
3 31/1003 14,00,000/- 33,32,743/- 19,32,743/-
4 31/1004 11,05,000/- 14,51,406/- 3,46,406/-
5 33/1004 07,00,000/- 8,75,325/- 1,75,325/-
6 40/1004 27,00,000/- 12,70,176/- 14,29,824/-
7 40/1003 09,00,000/- 2,28,816/- 6,71,184/-
8 34/1003 02,00,000/- 02,56,810/- 56,810/-
9 31/1193 33,000/- 11,437/- 21,563/-
10 31/1119 28,000/- 22,667/- 5,333/-
11 31/1196 1,50,000/- 19,500/- 1,30,500/-
12 31/1075 30,000/- 6,358/- 23,642/-
13 40/1119 1,00,000/- 52,228/- 47,772/-
14 40/1196 1,00,000/- 11,000/- 89,000/-

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.8:AUDIT OBSERVATIONS WITH REGARD TO ECR:

During the course of audit of ECR so produced to audit, it has been observed that:
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(a) No paging or paging certificate was given at the beginning of the register.
(b) Entries of salary were not made properly in the ECR;
(c) Entries of Bonus/DA were not found in the most of the pages and wherever
available were not signed by the DDO;
(d) Entries of pay details of employees were not made properly ;
(e) The mandatory columns were not filled up in most of the entries especially
DOB/DOR.
(f) Voucher no. and date of passed salary bill was not mentioned against the salary
drawn/released.
(g) Cuttings/ overwritings were not attested by the competent authority.

PARA NO.9: IRREGULARITIES IN THE CASH BOOK :

Cash Book is one of the most important accounts record 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 Deptt. the following discrepencies
have been noticed in maintenance of the cash book.

The following irregularities were noticed during the test audit of the Cash Book of
Division DHO (H&M).

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.
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
at many places such as on 05.07.2012.
4. No detail in r/o Permanent Advance of Rs.5000/- sanctioned for opening of DDO
account was also available in the Cash Book . DHO may clarify the situation to
Audit.
5. The hard copy of the Bank Statement for the account, also not shown to Audit for
cross check.
6. Bank Reconciliation Statement for the Bank Accounts being operated in the
Department for 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 deptt. cannot
keep proper check on financial transactions in the Department. Non preparation of
the BRS is a serious lapse on the part of the deptt.
7. Detail w.r.t. voucher of transfer/RTGS, cheque no., date, demand no. Head of account
etc was not given in the cash book due to which release of demand from time to time
could not be reconciled.
8. The copy of the demand should be attached with the paid vouchers but during the
course of audit of the vouchers it was noticed that the copy of the demand was not
enclosed with the vouchers and also the same was not made available to audit for
scrutiny. Which needs clarification.
9. Entry of Cheque no 212049 dt 28.05.2012 for Rs. 10060/- the pay of Sh. Sunil DEO
for April 2012 was shown on the receipt side but not on the payment side.
10. Cheque no 159312 shown cancelled but not pasted in the cash book.

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

to audit.

PARA NO.10: AUDIT OBSERVATIONS WITH REGARD TO UNCLAIMED

SEIZED ARTICLES:

During the course of physical verification of store, it was found that certain
unclaimed articles are lying in the store and require immediate disposal after adopting the
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proper procedure under the rules. Authority Competent may please take necessary action
in this regard under intimation to audit.

PARA NO.11: AUDIT OBSERVATIONS WITH REGARD TO RAID REGISTER:

During the course of test checking of Raid Register so produced to audit

27.08.2012 onwards; the following irregularities have been found:

1. The register is in a hotchpotch manner. No proper columns have been prepared;

2. There is only signature of Store Chowkidar in the Raid Register to whom seized items
had been handed over. But no sign of Raid in charge is available in the Raid Register.
3. Raided item lists were not provided to the audit, in absence of these lists it cannot be
ascertained that all seized items were entered in the Raid Register.
4. There is no signature of any official/officer in the Register who conducted the raid on
a particular date in a particular area and deposited the Raided items into the Mpl
Store.
5. There is no check of any supervisory officer whether the amount/charges being
collected from the recipient of items are correct or not.
6. In the absence of any supervisory check, there is chances of releasing the items
without being entered in the register causing revenue loss to MCD;
7. This practice needs immediate attention by the competent authority under intimation
to audit.

PARA NO.12: OBSERVATIONS ON ACCOUNT OF G-8 RECEIPTS:

During the course of audit of DHO (H&M), SPZ following G-8 books were
produced to audit for audit scruitiny:

1. BQ 069601 to BQ 069700
2. BI 048401 to BI 048500
3. BI 048501 to BI 045600
4. BD 003101 to BD 003200
5. BE 075401 to BE 075500
6. BE 075501 to BE 075562 (075563 to 075600 were blank)

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. Treasury.
(iii) The G-8 books were in torn condition.
(iv) There were so many cuttings and overwriting in many G-8 receipts without
attestation by the competent authority. Cuttings and overwriting in the G.8s
should be avoided.

The income verification certificate issued by the Zonal Treasury through Zonal
Accounts Authority with regard to income/money deposited by the depttt. through G-8
books/challan were not produced to audit so the remittance of above G-8 books could
not be authenticated due to non-availability of Income Verification Certificate. The
same may be obtained and shown to audit.

PARA NO.13: AUDIT OBSERVATIONS WITH REGARD TO SANCTIONED

FILES OF HEALTH TRADE LICENSES: (Loss of Rs. 250/-)

During the course of audit of sanction files of Health Trade Licenses of Guest Houses,
following observations were noticed:-

1. Hotel Elegante, No. 7885/34 A.K. Road, Ram Nagar, Pahar Ganj Delhi-55

A. Medical fitness certificate of the workers does not have photograph of the
employee.
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B. Structural Stability Certificate given by the architect doesn’t have measurement

and height of the building.
C. Sh. Saurabh Aneja, 7885/34, Arakansha Road, Ram Nagar, Pahar Ganj applied
for a new Health Trade License on 07.11.12 depositing processing fee Rs. 250/-
vide G-8 No. DZ-832551 dt. 07.11.12 but the deptt. had not taken any action on
this application within 90 days period. So applicant applied again depositing
processing fee Rs. 250/- vide G-8 No. DZ-1215894 dt. 06.03.13 and license was
issued to him on 01.04.2013. Reason for not taking any decision on first
application within 90 days period be clarified to audit.
D. Applicant applied for license renewal on 01.04.2013 but no action was taken on
his application till 15.09.2013 and no copy of G-8 receipt of renewal charges
deposited was enclosed in file. Reason to be clarified to audit for not taking any
action in such a long duration.

2. V V INN, XV/1015 Mantola, Pahar Ganj, Delhi-55 (Loss of Rs. 250/-)

A. Proof of notification of notified commercial/ mixed use of road under mixed

land use as per MPD-2012 not attached in the file.
B. Structural Stability Certificate given by the M/s R S Yadav (Architect &
Engineers) doesn’t have measurement and height of the building.
C. Medical examination report given by M/s Care Medical Centre had no
photograph and signature of the workers.
D. The applicant applied for Health Trade License on 11.06.2012 and License was
issued to him on 18.10.2012 after 90 days elapsed from the date of submission of
application. After 90 days elapsed a fresh application along with processing fee
Rs. 250/-was to be taken from applicant before issuing the Trade license to him.
So there is a loss of Rs. 250/-
This is also a case of serious violation of the Health Trade Licenses Rules
& Guidelines. A clarification be given to audit in this regard.
E. License renewal application was received on 13.04.2013 and License was
renewed on 21.05.2013. Reason for taking more than one month period to take
the decision on the license renewal application be clarified to audit.

3. City Star Guest House, 8718 D. B. Gupta Road New Delhi

A. In the E-stamp affidavit no. IN-DL-474359421-48470K dt. 22.11.12, the clause

no. 6 regarding that the said guest house was operating validity under provision of
MPD prior to 07.09.2006 to the extent no addition alteration has been made
thereafter was strike off at page no 64/c to 68/c. As per the rule no cutting and
alteration allowed in the affidavit, so validity of the affidavit/undertaking is null &
void. How DHO/SPZ had issued the Trade License to the Guest house without
having valid affidavit/undertaking from it, reasons be clarified.
B. Medical examination report given by M/s Care Medical Centre had no photograph
and signature of the workers and no detail of necessary injection/vaccination
given to them.
C. Pest control certificate given by M/s Himanshu Pest Control is incomplete as
there is no detail of validity period given.
D. No affidavit regarding eating house is running was enclosed in the file.

4. Guest House, 8703-06A, D.B. Gupta Road (Sh. Arun Kr. Vig Partner)

A. In the E-stamp affidavit no. IN-DL-15046227058203L dt. 15.05.2013, the clause

no. 6 regarding that the said guest house was operating validity under provision of
MPD prior to 07.09.2006 to the extent no addition alteration has been made
thereafter was strike off. As per the rule no cutting and alteration allowed in the
affidavit, so validity of the affidavit/undertaking is null & void. How DHO/SPZ
had issued the Trade License to the Guest house without having valid
affidavit/undertaking from it, reasons be clarified.
B. Medical examination report had no photograph and signature of the workers and
no detail of necessary injection/vaccination given to them.
C. No Pest control treatment was taken after 30.11.2008.
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D. Structural Stability Certificate given by the M/s R S Yadav (Architect &

Engineers) doesn’t have measurement and height of the building.
E. The submitted blue print map of building was not verified by the building deptt.
F. No affidavit regarding eating house is running was enclosed in the file.

5. Hotel Uppal International, Plot no. 28, 7884, Arakashan Road, Pahar Ganj, New
Delhi

A. Medical examination report had no photograph and signature of the workers and
no detail of necessary injection/vaccination given to them.
B. No certificate regarding Pest control treatment was made or not enclosed.
C. Structural Stability Certificate given by the Architect doesn’t have measurement
and height of the building.
D. The submitted blue print map of building was not verified by the building deptt.
E. No affidavit regarding eating house is running was enclosed in the file.

6. Hari Kiran Guest House, 4220 Tel Mandi, Pahar Ganj, Delhi

A. Medical examination report had no photograph and signature of the workers and
no detail of necessary injection/vaccination given to them.
B. No certificate regarding Pest control treatment was made or not enclosed.
C. Structural Stability Certificate given by the Architect doesn’t have measurement
and height of the building.
D. The submitted blue print map of building was not verified by the building deptt.
E. No affidavit regarding eating house is running was enclosed in the file.

7. Udhav Palace, 3317-21 Gali Hari Mandir Pahar Ganj, Delhi

A. Medical examination report had no photograph and signature of the workers and
no detail of necessary injection/vaccination given to them.
B. No certificate regarding Pest control treatment was made or not enclosed.
C. Structural Stability Certificate given by the Architect doesn’t have measurement
and height of the building.
D. Conversion charges receipt was of 2011-12 not for 2013-14.
E. Property tax receipt was of 2012-13 not for 2013-14.
F. No affidavit regarding eating house is running was enclosed in the file.

8. J P Inn, 4400 Katra Raiji, Basant Road, Pahar Ganj, Delhi

A. No measurement given in the structural stability certificate attached at page 23/c

& measurement was also not verified by the building deptt.
B. Electricity bill paid upto 12.10.11.
C. House tax paid upto 31.03.2013.
D. Conversion charges paid upto 2012-13.
E. Medical examination report had no photograph and signature of the workers and
no detail of necessary injection/vaccination given to them.
F. No affidavit regarding eating house is running was enclosed in the file.

PARA NO.14: IRREGULARITIES /DISCREPANCIES IN GRANTING HEALTH

TRADE LICENSE

On scruitiny of the sanctioned file of the Yatri Niwas Guest House, 1101 main bazaar
Pahar Ganj, Delhi-110055, the following observations/irregularities were noticed:-

1. Applicant applied for the new Health Trade License and deposited the processing fee
i.e. Rs. 250/- vide G-8 No. DZ-413826 dt. 27.04.2012 along with the required
documents. Applicant again deposited processing fee Rs. 250/- vide G-8 No. DZ-
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626254 dt. 13.08.2012 but deptt had not taken any action on these two applications
as per file within 90 days respectively.
2. The Deptt. had granted Health Trade License on 04.06.2013 as the applicant
deposited fresh processing fee Rs. 250/- vide G-8 No. DZ-1448744 dt. 31.05.2013.
The Concrned PHI inspected the site and recommended trade license for 15 rooms as
per his report at page no 3/N of the file, but license for trade granted for 20 rooms.
Apart from this, it is necessary to mention here that no date is mentioned under
the signature of any official/officer in the noting side of the file, which is very serious
lapse in view of the audit.
3. There is a provision to get the NOC from the Licensing Deptt. of Delhi Police before
granting Health Trade License to Guest Houses, but in this case no NOC from the
DCP Licensing was obtained before granting the Health Trade License, which is a
serious violation of the Health Trade Licenses Rules & Guidelines.
4. There is no measurement & height of the plot area given in the Structural Stability
Certificate nor any affidavit from the architect in this regard attached in the file.

The reason of the above said irregularities/discrepancies may be clarified to the audit
at the earliest. This case is an illustrative no exhaustive so it requested to direct the
concerned staff to scrutiny all such case immediately and take proper action in this regard
under intimation to audit.

PARA NO.15:AUDIT OBSERVATIONS ON ACCOUNT OF PERSNAL FILE AND

SERVICE BOOKS:

(A) PF & SB OF SURESH CHAND PARCHA, APHI:

(a) No photo of the incumbent is changed in the SB after 10 year of service;
(b) No paging has been found in personal file;
(c) No Police verification was found in the PF.
(d) Leave record is not completed;
(e) Entries of character and antecedent at page no 3 was not made.
(f) Annual Increment entries are not attested by DDO.
(B) PF & SB OF SH. DAVINDER KHARB S/o Sh. VED PRAKASH,PHI
(a) No photo of the incumbent is affixed in the SB;
(b) Documents placed in the file are not duly attested;
(c) No Police Verification is placed in the file;
(d) Leave record is not completed;
(e) Annual Increment entries at page 21 of SB not attested by DDO.
(C) PF AND SB OF SH. NAFE SINGH S/o SH. RAM KALA, MALARIA BELDAR
(a) No photo of the incumbent is changed in the SB after 10 year of service;
(b) No paging has been found in personal file;
(c) No Police verification was found in the PF.
(d) Leave record is not completed;
(e) No signature of employee in column 8 of SB.
(f) Annual Increment entries are not attested by DDO.
(g) No medical certificate was found in PF;
(D) PF & SB of SH. SITA RAM S/o SH. LAL SINGH,MALARIA BELDAR
(a) No photo of the incumbent is changed in the SB after 10 year of service;
(b) No paging has been found in personal file;
(c) No Police verification was found in the PF.
(d) Leave record is not completed;
(e) No signature of employee in column 8 of SB.
(f) Annual Increment entries are not attested by DDO.
(g) Entries of DA arrear, Bonus etc are not signed by Accountant;
(h) Service verification not attested by DHO/DDO.
(E) PF & SB of SH. RAJENDER S/o SH. KUNDAN LAL, MALARIA BELDAR
(a) No photo of the incumbent is changed in the SB after 10 year of service;
(b) No paging has been found in personal file;
(c) No Police verification was found in the PF.
(d) Leave record is not completed;
(e) No signature of employee in column 8 of SB.
 13

(f) Annual Increment entries are not attested by DDO.

(g) Entries of DA arrear, Bonus etc are not signed by Accountant;
(h) Service verification not attested by DHO/DDO.
;

PARA NO.16: OTHER IMPORTANT AUDIT OBSERVATIONS:

1. Paging in the Stock Books/registers or other records is not complete;

2. In the PF & SBs of other officials, leave accounts are not complete, there is no entry
of leave availed by the officials, there are no signatures of incumbent, DDO and other
Accounts officers in the columns prescribed in the SB..
3. There are no signatures of official/officers in the cash book;
4. While going through the files wherein licenses were rejected due to some reason, it
has been found that seniors officers never bothered to inspect the site to confirm
whether the report of the DA/PHI is correct or not. Thus it seems that there is no
supervisory control over the PHI who recommends for issue of license or rejection of
licenses. There should be some percentage of test check by the senior officers.

INTERNAL AUDIT OFFICER

ZAP/ S.P.ZONE
 14

FORM – I A – 2

ALLOTMENT OF DUTIES DURING INSPECTION

Office: D.H.O/S.P.ZONE
Period of Inspection :01.11.2010 to 06.09.2012.

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

1. Sh. Lalit Kumar, I.A.O. Overall Supervision, Auction file

2. Sh. Pradeep Rawat, Acctt. Supervision, Auction file, Sanction file of Guest
houses

3. Sh. Ashok Vats, UDC
4. Sh. Praveen Gangwal, LDC
G-8 Books, SB and PF, Attendance Register,Raid
Register and Release order forms, Challan Books
G-8 Books, SB and PF, Budget Watch
Register, Raid Register and Release order forms,
Challan Books

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
 15

FORM – I A -7

COMPLETION MEMO

Party No. DHO/S.P.ZONE:

1. Name of the Inspecting Officer: Sh. Lalit Kumar

2. Name and complete address of the office inspected, DHO/SPZ
3. Period of accounts inspected 01.11.2010 to 06.09.2012.
4. Dates of visit 11.05.2012 to 15.05.2012&17.08.2012 to
06.09.2012.
5. No. of working days availed of 16 days
6. No. of days for which extension taken, if any: NO.
7. No. of days suggested for future audit and reasons therefore: 15 days
8. Plan Non-Plan
a. Budget Provision: Mentioned in Report
b. Actual Expenditure: Mentioned in Report

Assistant/Jr. Accounts Officer

Camp & Date:

Countersigned IO
 16

FORM – I A – 8

INFORMATION SHEET OF THE INSPECTION REPORT ON THE ACCOUNTS

Office_:DHO/S.P.ZONE Period 01.11.2010 to 06.09.2012.

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

a. Pay Bills_______nil_______ b. TA Bills __________ C. Contingent Bills _________
c. Other Miscellaneous Bills ______ e. Works Bills _____ f. Suppliers Bills ______

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

3. No. of Provident Funds accounts checked. NIL

(a) Ledger accounts
(b) Final Payment cases.
(c) Advances and part-final withdrawals.

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.NIL

5. No. of pension cases checked.NIL

6. Names of officers due to retire within next 5 years whose SBs were checked:.Mentioned in
report

7. Paras which merit inclusion in the list of serious financial irregularities. .

8. Paras in which cash recoveries suggested.

9. Paras in which any embezzlement detected. Nil

10. No. of preliminary objection memoranda issued. 14

11. No. of objections settled on the spot. 01

12. General remarks whether the state of maintenance of accounts is satisfactory or not.
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
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

Details of Current Recovery (Audit Period 01.11.2010 to 06.09.2012).

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

(in Rs.) Recoveries
1 Rs. 50/- Rs. 50/- Nil
2 Rs. 2000/- Nil Rs.2000/-
Total= Rs.2000/-
 17

The internal Audit report has been prepared on the basis of information furnished and
available by the DHO/SPZ .Some wards missing disclaims any responsibility for any
misinformation and/of non-information on the part of auditee.

(IAO Party _________________)

Head of Office
 18

NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT
S.P.ZONE, DELHI

No.F _________/IAD/SPZ/2012 Dated:______________

Subject:- Audit report of DHO/SPZ for the period 01.11.2010 to 06.09.2012.

INTRODUCTION:-

The I.A.R. on the accounts of DHO/SPZ was conducted by Zonal Audit Party, S.P.ZONE
comprising of S/Sh. Lalit Kumar, IAO, Pradeep Rawat, Acctt, Ashok Vats, UDC & Praveen Km.
Gangwal, LDC,working days w.e.f.11.05.2012 to 15.05.2012 & 17.08.2012 to 06.09.2012. This
was the 30th audit of DHO/SPZ of the department upto 06.09.2012.

AIMS AND OBJECTIVES

The main aim of the DHO/SPZ is to provide basic health amenities facilities to the residents,seize
unhygienic foodof const. of roads, small nallahs, and to remove other problems of inhabitants
residing in the area relating to Engg. Deptt.

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 -

Budget Allocation and Expenditure for the year

Budget Year Expenditure up to Excess/Saving

year ending
Nil

Statutory Audit:-

No audit report of Statutory audit was provided to the audit party.

Vacancy Statement: Not provided.

S. No. Name of Post No. of Posts Filled Vacant

Sanctioned
1 Group A
2 Group B
 19

3 Group C
4 Group D
Total
 20

Maintenance of Records:-

The maintenance of records of JE(C-89), Pahar Ganj, Delhi, for the period
16.07.2010 to 30.06.2011 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 169 audit para’s outstanding the department has made compliance of as such
08 para’s settled. The remaining-161 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. 1969-76 13 - - 13
2. 1969-74 10 - - 10
3. 1976-80 08 - - 08
4. 1980-82 05 - - 05
5. 1982-83 06 - - 06
6. 1983-84 09 - - 09
7 1990-91 06 05 1,2,3,4&6 01
8 1991-92 05 - - 05
9 1992-94 05 - - 05
10 1992-94 03 - - 03
11 1993-95 03 - - 03
12 1993-95 04 - - 04
13 1994-96 05 - - 05
14 1994-96 05 - - 05
15 1995-96 06 - - 06
16 1995-96 06 - - 06
17 1996-98 06 - - 06
18 1996-98 06 02 2&3 04
19 1997-99 06 - - 06
20 1998-00 06 - - 06
21 1999-01 05 - - 05
22 2001-02 05 01 02 04
23 2002-03 06 - - 06
24 2003-04 05 - - 05
25 2004-05 05 - - 05
26 2005-06 04 - - 04
27 2006-07 07 - - 07
28 2007-09 05 - - 05
29 2009-10 04 - - 04

Total 169 08 161

(B) Details of Old Recovery

S. No. Year Total old Amount Recovered Balance

Recovery in Recovery
Rs. against Paras
(Amount in Rs.
Para wise)
1. 1969-76 1425/- - 1425/-
 21

2. 1969-74 30/- - 30/-

3. 1976-80 2792/- - 2792/-
4. 1980-82 40/- - 40/-
5. 1982-83 59/- - 59/-
6. 1983-84 297/- - 297/-
7 1990-91 154/- 154/- Nil
8 1991-92 620/- - 620/-
9 1992-94 177/- - 177/-
10 1992-94 48/- - 48/-
11 1993-95 96/- - 96/-
12 1993-95 177/- - 177/-
13 1994-96 161/- - 161/-
14 1994-96 153/- - 153/-
15 1995-96 324/- - 324/-
16 1995-96 247/- - 247/-
17 1996-98 295/- - 295/-
18 1996-98 198/- 198/- Nil
19 1997-99 206/- - 206/-
20 1998-00 356/- - 356/-
21 1999-01 256/- - 256/-
22 2001-02 275/- 275/- Nil
23 2002-03 355/- - 355/-
24 2003-04 228/- - 228/-
25 2004-05 239/- - 239/-
26 2005-06 245/- - 245/-
27 2006-07 222/- - 222/-
28 2007-09 34379/- - 34379/-
29 2009-10 600/- - 600/-

Current Audit Report

During the course of current audit, Nil audit Memo’s highlighting various regularities/short
recovery to the tune of Rs. 480/- 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 17.09.2010 to 12.102011.):-

Para No.’s Total Recoveries (in Rs.) Amount Recoveries Balance (in Rs.)
2. 250/- nil 250/-
3. 230/- nil 230/-
Total 480/- - 480/-

The internal audit report has been prepared on the basis of information furnished and made
available by the J.E.(works), Store, C-89, Pahar Ganj, Delhi.

Disclaims any responsibility for any misinformation and/of non-information on the part of
audittee.