1

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(CSE) store, for the period 09.04.2014 to 19.07.2017

Please find enclosed herewith the Audit Inspection Report on account of records
of office of Exec. Engineer (CSE) Store, for the period 09.04.2014 to 19.07.2017. 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. Engineer. ( CSE Store)

North Delhi Municipal Corporation

Copy to:-

1. Superintendent Engineer
2. DCA (IAD) for information pl
3. Office copy

Internal Audit Officer

ZAP/City SP Zone
 2

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 account of Division-
EE(CSE) Store, for the period 09.04.2014 to 19.07.2017

INTRODUCTION
The I.A.R. on the accounts of Division-EE (CSE) Store, was conducted by the ZAP/CITY
ZONE comprising of Smt Swaran Kumari ,I.A.O, Sh.K.K.J.R.K Parsad, A.A.O, Smt. Kiran Negi
ASO, Sh. Sandeep Kumar Vashist, Acctt. Asstt . The audit was conducted from 19.07.2017 to
31.07.2017.

Sh. P.K.Raja held the post of Ex. Engg. (CSE) Store at the time of audit.

AIMS AND OBJECTIVES

The main aim of the Division EE (CSE store) is to procure and store sanitary items such
as lime, brooms, acid, dustbins, phawda, wheel barrow etc. and issue these items to various
Divisions/offices engaged in the work of sanitation in North DMC areas as per their requision.

HOD/H.O.S/D.D.O’s/CASHIERS

The following officials have served as HOD/HOO/DDO/Cashier during

S. HOD Head of Office DDO Cashier

No.
D in C S/Sh./Ms. S/Sh. /Ms. S/Sh./Ms.
1. Sh. Devender Kumar Sh. P. K. Raja Sh. P. K. Raja Sh. Joginder Singh
D in C Ex. Engg. Ex. Engg.

Budget Allocation and Expenditure for the year

Budget Year Expenditure up to Excess/Saving

year ending
In corporate in the
Report

Statutory Audit:-

Statutory audit report not produced.

Vacancy Statement:

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

Sanctioned
01 Group -A 01 01 Nil
02 Group –B 01 0l Nil
03 Group –C 05 no. 04 01
04 Group –D 09 no. 02 no. 07 no
05 Daily wager/ 04 no. 04 no nil
Substitute
 3

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 116 audit Para’s outstanding the department has made compliance of as such
Para’s settled. The remaining 116 Para’s have been incorporated with current audit report .

Date of No & date of letter Paras settled Para Money

S. Period of audit under which report was outstanding value
account N issued No.of No. of
audited Paras Paras G.P M.V.
Settled P
01 1998-99 to 05 to F.46/IAD/DAP-III/99/147 13 Nil 13 nil Rs. /
05.07.1999 15.07.1999 Dated 21.09.1999
02 2000-01 24 to F./IAD/DAP-III/02/399 09 Nil 09 Rs. /
to 20.09.2001 30.09.2001 Dated 07.01.2002
03 2001-2002 17 to 25.02.2003 F./IAD/DAP-III/03/12 27 Nil 22 05 Rs.15071 /-
Dated 14.05.2003
04 2002 to 2004 24.01.2005 F./IAD/DAP-III/05/456 18 Nil 17 01 Rs.14965 /-
Dated 29.04.2005
05 2003-04 to 18.11.2005 F./IAD/DAP-III/06/33 11 Nil 11 Rs. /
18.11.2005 Dated 28.02.2006
06 2005-06 to 09.11.2006 F.1357/ 11 Nil 11 Rs. /
09.11.2006 IAD/ZAP/CZ
/06/835
Dated 19.01.2007
07 2006-07 17.05.2007 F.1399/IAD/ZAP/CZ/08 12 Nil 12 Rs. /
Dated 09.06.2008
18.05.2007 to 09 to F.1562/IAD/ZAP/CZ/2015/2 15 nil 13 02 Rs.50128/-
08 08.04.2014 20.04.2014 3
Dated 13.05.2015
116 nil 108 08
Rs. 80193/--

Details of Current Recovery (Audit period 18.05.2007 to 08.04.2014 ):

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

(In Rs.) Recovered
06 Rs.5500/- Nil Rs. 5500/-

13 Rs. 2944/- Nil Rs. 1688/-

Total: Rs. 7188/-

The internal audit report has been prepared on the basis of information furnished and
record made available by the EE (CSE) Store City Zone. Internal Audit Deptt. Disclaims any
responsibility for any misinformation and/of non-information on the part of auditee.
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CURRENT AUDIT

The following record was requisitioned for Audit/Scrutiny on test check basis vide letter
No. 01/IAD/ZAP/CZ/2017dated 19.07.2017

1. Paid vouchers (Plan &Non-Plan)

2. MBs
3. Unpaid voucher
4. Contractor Ledger
5. Daily diaries of JE, AE and EE drawing conveyance allowances
6. Stock Book
7. Hindrance Register & Diesel register
8. Work register
9. Muster roll
10. Demand Register along with demand released
11. Tender Opening Register
12. Attendance register along with biometric sheets
13. Tender Files/Agreement Files/Account file
14. Imprest money Register
15. Temporary Advance Register
16. Property register/register of theft, fire, loss of Embezzlement etc
17. Log book of vehicle
18. G-8 Receipt Books along with challans and G-8 Issue Register
19. E.M register
20. Circular File
21. Budget register
22. Cash Books/Cheque register
23. PF & SB with ECRs
24. Bank Reconciliation Statement
25. Income certificate duly signed by Zonal ACA
26. Latest External Audit Report
27. Stationery Register & MB Issue Register
28. NIT register
29. Work Order Register
30. Any other auditable record.

PARA NO.-1 NON-PRODUCTION OF RECORDS

Out of the above requisitioned records, items at Sl. No.1(Partly),02,06(partly), 09, 10

(partly), 12(partly), 13(Partly),14,15(P),18(Partly), 21, 22(Partly), ,27(Partly) & 29 were
shown/produced to audit for verification and test check audit. Rest of the records requisitioned
vide above mentioned requisition has not been produced to audit for inspection. Two reminders
vide No 02/IAD/ZAP/CZ/2017 dt. 25.07.2017 respectively had been issued to the deptt. for the
production of record at the earliest, but the department failed to provide the complete
requisitioned record. Thus, Audit has observed that either the record is not maintained or the
production of the same appears to have been avoided, reasons to which best known to the
department. If, any irregularity/discrepancy is found in the non-produced record, at any stage, the
whole responsibility will lie on the department itself.

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

audit, the following discrepancies/omissions/errors etc., came to the notice of the audit.
 5

PARA NO.-2 IRREGULARITIES IN BUDGET WATCH REGISTER.

The following irregularities were found during the test audit of the Budget Watch Register for
the year 2014-15 to 2016-17, , so produced to audit.

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

competent.

2. Signature of the dealing assistant not found on any entry. Whereas each and every entry
should be signed by the official maintaining the register with countersignature of the
controlling officer.

3. The date of issue of budget was not shown. The authority competent may direct the official
maintaining the register to mention the date, which is mandatory.
4. Particulars/Narration of the expenditure under all the budget head except salary were not
given, even Bill No. & Date were also not shown in columns provided for the purpose.
5. In many entries, the amount of the expenditure was shown only and other mandatory
columns were left blank.
6. The budget register was not page numbered and also no certificate regarding no. of pages
was available on the budget register cash book.
The irregularities may be explained and justified to audit and such type of irregularities be
avoided in future.

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 to 2016-17 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 to 2016-17

Budget Head Year Budget Allocation Expenditure up to Excess/Saving

year
ending
61/1001 2014-15 Rs.1000000/- Rs.781651/-
2015-16 Rs.1000000/- Rs.906493/-
2016-17 Rs.900000/- Rs.1310941/-
61/1002 2014-15 Rs.1000000/- Rs.721872/-
2015-16 Rs.1000000/- Rs.736128/-
2016-17 Rs.1000000/- Rs.1023230/-
61/1003 2014-15 Rs.1000000/- Rs.716220/-
2015-16 Rs.1000000/- Rs.903349/-
2016-17 Rs.1300000/- Rs.1447468/-
61/1004 2014-15 Rs.3000000/- Rs.2350192/-
2015-16 Rs.3000000/- Rs.2513084/-
2016-17 Rs.3000000/- Rs.2044698/-
61/1119 2014-15 Rs.850000/- Rs.758166/-
2015-16 Rs.100000/- Rs.156423/-
2016-17 Rs.100000/- Rs.80151/-
61/1119 (Petrol) 2014-15 Rs.180000/- Rs.28000/-

61/1119 Repair & 2014-15 Rs.50000/- Rs.7984/-

maintenance
61/1064 2014-15 Rs.60000/- Rs.44804/-
61/1156 2014-15 Rs.5000/- Rs.1273/-
2015-16 Rs.5000/- Rs.1955/-
2016-17 Rs.5000/- Rs.539/-
61/1193 2014-15 Rs.40000/- Rs.37218/-
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2015-16 Rs.38000/- Rs.37790/-

2016-17 Rs.38000/- Rs.33587/-
63/1171 2014-15 Rs.800000/- Rs.529045/-
2015-16 Rs.560000/- Rs.510185/-
2016-17 Rs.600000/- Rs.563602/-
XL-VIII-P-II 2014-15 Rs.7907000/- Rs.7765235/-
2015-16 Nil Nil
2016-17 Nil Nil
XL-III-D-IV 2014-15 Rs.26497000/- Rs.26484687/-
2015-16 Rs.9596000/- Rs.9594059/-
2016-17 Rs.16194000/- Rs.16192360/-

`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: CHECKING OF THE G8 BOOKS:

The department had not produced the G-8 Books’ Stock Register, so it could not be
ascertained that how many G-8 books were received and used by the division during the period
of audit. However, the dealing assistant produced the following G-8 books which had been duly
checked with the challans so produced by the department.

1. CE-50301 to 58400
2. 063701 to 63800 13.10.2009 to 07.09.2010
During the scrutiny of the above said G-8 Books it came to the notice that

(a) The head of office shall maintain the register of G-8 books received of G-8 books from
HQ and further its subsequent issue to the officials of the deptt.should be recorded ,but during
the audit for the period it has came to the notice that no record/register showing the number of G-
8 books received from HQ and their use has been maintained/produced to audit by the EE(CSE)
Store.
It was also noticed that in some cases the Draft/Cheque nos. were not mentioned on
the G-8 receipts.
(b) The G-8 books should be issued to the official against the proper requisition approved by
the competent authority and it should be ensured that the official dose not have more than one G-
8 book at a time and second book should not be issued to the particular official before the old
one is fully utilized and returned
(c). G-8 stock register made in plain register.
(d). No paging certificate given in the G-8 stock register.
(e). No signature issuing & receiving person.

Hence the deptt. may explain the above discrepancies to audit.

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.
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.
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PARA NO:-05 ;LATE DEPOSIT OF 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.N G-8 No G-8 Date Amount deposit date

58341 09.03.2016 17.03.2016

01
58342 09.03.2016 17.03.2016
02

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

Para No. 6: NON DEPOSIT OF TENDER COST ON A/C OF DOWNLOAD OF

TENDER DOCUMENTS.( LOSS TO MCD AMOUNTING RS. 5500 /-)

During the course of audit of tender files produced, It was observed the department had not
recovered the tender cost from the contractors who had downloaded the tenders but remained
unsuccessful. The list of the contractors who had not deposited the requisite tender cost with the
deptt is given below

S.No. Tender Name of the firm Tender cost

No.
20077 M/S Arzoo Concrete product Rs. 500/-
1.
2. Do M/S R.K. Construction Co.II Rs. 500/-

3 Do M/S Super sales Rs.500/-

4. 20095 M/S Katyal Brother Rs.500/-

5. Do M/S R.B.Saxena & Sons Rs.500/-

6. 20098 M/S Katyal Brother Rs.500/-

7. Do M/S R.B.Saxena & Sons Rs.500/-

8. 20099 M/S Eastern Chemical Centre Rs.500/-

9. Do M/S Katyal Brother Rs.500/-

10 20100 M/S Katyal Brother Rs.500/-

11 20123 M/S Arzoo Concrete product Rs.500/-

Rs.5500/-

amounting to Rs. 5500/- from the contractors who had not deposited the tender cost as
per the above list and deposit the recovered amount in the Municipal Treasury through
G.8/challan, under intimation to the Audit. The cases mentioned in the list are only illustrative
not exhaustive. Similar discrepancies in other cases are not ruled out hence EE concerned is
therefore requested to review all the tenders, from the date of introduction of E-tendering system
to till date, to ascertain the loss to department on the said account and effect necessary recovery
action immediately.

Reason for the said irregularities be explained and justified to audit.

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Para No.7:- IRREGULARITIES/DISCREPANCIES IN 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 the Deptt. the following discrepancies have been noticed in
maintenance of the cash book:-

i. The cash book was not page numbered and also no certificate regarding no. of pages was
available on the cash book.
ii. Entries in the cash book were not signed by the dealing assistant as well as by the
DDO/EE.
iii. 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 by
any of the official.

iv. The hard copy of the Bank Statement for the account, also not shown to Audit for cross
check.
v. 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.
vi. Complete details of expenditure was not available in the cash book e.g. Bill are being
paid without mentioning the work order No. & date of its issue, Status of the Bill i.e.
whether it is Ist or 2nd…… R/A Bill or Final Bill.
vii. No detail in r/o Permanent Advance of Rs.5000/- sanctioned for opening of DDO account
was also available in the Cash Book. EE may clarify the situation to Audit.
viii. Detail w.r.t. voucher of transfer/RTGS, cheque no., and 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.
ix. 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?
In addition to above, a number of voucher were found in the voucher file. But the
same was not entered in the cash book.
Reason for the above irregularities be explained to audit.

PARA NO.8: PAYMENTS MADE TO CONTRACTORS WITHOUT AFFIXING

REVENUE STAMPS:

As per the Government of India’s instructions, any payment exceeding Rs.500/-

made to any recipient shall be made only after taking the acknowledgement of the
recipient on a Revenue Stamp of Rs.1/- as a token of payment having been received by
him. A review of paid vouchers, however revealed a number cases where revenue stamps
have not been affixed on the bills in which the amount was more than Rs.5000/-.Some
vouchers are illustrated as under in which Revenue Stamps were not affixed:-

S.N. W O No Date Name of Agency Amount

1. 22 18.03.2015 M/S R.B. Saxena & Sons Rs.2162614/-

2. 07 09.02.2015 M/S Arzoo Concrete Product Rs.587769/-
3 06 09.02.2015 M/S Arzoo Concrete Product Rs.1144511/-
4 08 09.02.2015 M/S R.K. Construction Co. Rs.778830/-
5 09 09.02.2015 M/S R.K. Construction Co. II Rs.638800/-
6 10 09.02.2015 M/S Eastern Chemical Centre Rs.741000/-
7 04 03.06.2014 M/S R.K. Construction Co. II Rs.425917/-
8 01 05.05.2014 M/S R.B. Saxena & Sons Rs.1440285/-
9 23 18.03.2015 M/S Katyal Brothers Rs.522363/-

Reasons for above irregularities be explained and justified to audit. Similar type of
practices be avoided in future.
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PARA NO 9:- TENDER OPENING REGISTER

While checking the Tender opening register for the year 2014-15 & 2015-16 the
following irregularities have been come to notice:-

i. Paging & paging certificate not available.

ii. Contractor attendance not found on most of the cases.
iii. Name of work not written.
iv. Tender amount not shown.
v. Rate of tender (each item) not shown in the register.
vi. Detail of Earnest Money amount & date with G-8 receipt no. was not shown in the tender
opening register.
vii. Number of tender received not shown.
viii. NIT no. 01 dated 16.10.2014(Tender opening) not signed by EE on 24.12.2014
ix. Tender opening register not closed up to 26.07.2017.
x. Date/time of Tender opening not mentioned in the register.
xi. Prescribed Colum of the register not filled up properly.
xii. 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.

Reason for the above irregularities be explained to audit.

PARA NO.-10: IMPROPER MAINTENANCE OF THE S.BS/PERSONAL FILES.

During the course of test check audit of P. Files & S. Book of the employees, the audit
has observed that most of the files were incomplete I, 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. Some of the cases are illustrated below:-

(a) PF & SB of Sh. Dharamvir S/O Banwari SK

(i) The photographs should be changed every ten years but new photographs were not
pasted. In some cases IInd part of SBs was without photographs
(ii ) The columns no. 08 to 12 of the Service Book was incomplete.
(ii) The paging of Personal Files was not up-to-date.
(iii) In most of the leave sanction order not mentioned.
(iv). leave accounts were not up-to-date and were not verified by D.D.O

(vii) The detail of family in form III should be obtained/accepted by head of office & pasted in
service book of all employees as the same are not available in the PF/SB of the employees.
This information is very useful in deciding the claim in the event of death/retirement of the
Municipal Employees

(b) Ramesh Chand S/O Duli Chand Chowkidar

(c) ar The photographs should be changed every ten years but new photographs were not pasted. In
some cases IInd part of SBs was without photographs
(ii ) The columns no. 08 to 12 of the Service Book was incomplete.
(iii) The paging of Personal Files was not up-to-date.
(iii) In most of the leave sanction order not mentioned.
(iv). leave accounts were not up-to-date and were not verified by D.D.O

(iv) The detail of family in form III should be obtained/accepted by head of office &
pasted in service book of all employees as the same are not available in the PF/SB of
the employees. This information is very useful in deciding the claim in the event of
death/retirement of the Municipal Employees
(v) Commuted leave 22.12.2014 to 28.12.2014 (07 X02)= 14 not debit in the leave
account..
 10

PARA NO. 11 .PAYMENT OF BILLS WITHOUT PASSING THE BILL

A review of paid vouchers for the previous year made available to the audit revealed that
the following mentioned bills were paid without passing the same by the AAO and EE
concerned:-

S.N Voucher no. Dated Amount

01 05 store 20.06.2014 Rs.464075/-
02 17 store 31.03.2015 Rs.308000/-

The reason and circumstances under the payment of bills have been made without
passing the same be elucidated to the audit.

PARA NO. 12: SANCTION PAPERS OF MUSTER ROLL EMPLOYEES

During the course of audit, the documents relating to the initial appointment of Muster
Roll employees were asked for by the audit for scrutiny but were not produced. In the absence of
such record, the authenticity and genuineness of the employees engaged in the division cannot be
cross-checked.
i. Salary bill of MR employee made in MB.
ii. No record of bill passing (expect MB) in Division only record mention in MR and
MR sent to Account department for payment.
iii. MR stock register not mention & issue only a plain register.

The competent authority is requested to clarify the same and a proper record of Muster
Rolls employees engaged in the division be got maintained, (if it is not previously maintained).
Otherwise, in case of any irregularity found at a later stage, the responsibility shall lie on the
department itself. Further it may also be ensured that no undue payment to muster roll employees
has been made.

PART-13: IRREGULARITIES FOUND IN TENDER AND ACCOUNTS FILES SO

PRODUCED TO AUDIT FOR AUDIT SCRUTINY( RECOVERY OF RS.1688/-)

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

W.O. No. EE(DEMS/Store/NDMC/2016-17 /28 dated 28.03.2017

i. Supply received in MB no. 24361 on 29.03.2017 at P.N.1 & 2 of above said MB but
the bill given on 29.03.2017 whereas the committee ( in compliance of committee
constituted vide no.DNC/NDMC/2013-14/70 dated 24.03.2014) had checked
randomly few sample of supply vide letter no.EE/DEMS/store?2016-17/187 dated
30.03.2017. it means that the randomly checking of supply had done on 30.03.2017
by the committee but the bill given by contractor on 29.03.2017 by the JE. As well as
the test check of EE on 29.03.2017 and AE test check was done on
30.07.2017.Whereas the bill of this supply should be given to contractor after
checking of committee & test check of EE/AE .Member of committee SS(RZ),
SS(CLZ), & EE(DEMS) all member signed without date on the letter
no.EE/DEMS/NDMC/2016-17 /187 dated 30.03.2017.
ii. Edu. Cess 3% not deducted from this bill amount .So Rs.1270/- may be recovered
from the contractor and deposit the Municipal Treasury through G-8/ challan
iii. The invoice no.125 dated 30.03.2017 of M/S Eastern Chemical Centre with good
details, quantity and total amount of RS. 450000/- whereas the supply received on
29.03.2017as per MB & bill form.
iv. The challan no.369 dated 29.03.2017 (date was over writing) of M/S Eastern
Chemical Centre with good details and quantity , JE had mentioned the note “
Received 2000. No phawra kahi and entered in MB no.24361 a page no.02 on
29.03.2017 without verification of AE(store) it seems that the date of bill was
overwriting from30.03.2017 to 29.03.2017.
v. No completion report was found in the report.
 11

W.O. No. 10 dated 20.05.2016 M/S R.K.C construction Co.-II

i. Supply / work completed on 21.07.2016 whereas the supply/ quantity received up to

28.07.2016 vide challan no.299 dated 11.07.2016 and challan no.302 dated
21.07.2016. As per passed bill, the bill was given on 11.07.2016 in MB by the JE this
contradictory . Clarify the reason in this regard.
ii. As per comparative statement (8/n) the case was submitted for approval of rate &
agency in favour of M/s R. K. const. II for supply of reflective cross belt 9770.no @
Rs.128.58 each against justification @ Rs,184/- each . The contractual cost comes to
Rs. 1256227/- which chargeable under head of account XL-VIII-P-II and the validity
of rates of this case was valid up to 07.06.2016 which was approved by EE(store)
DEMS/SE(DEMS) NDMC/D in C (NDMC) / DEMS on dated 08.04.2016 . But
supply was completed during the period from 11.07.2016 to 21.07.2016 after the
invalidity of rate and agency.
iii. As per Annexure –II (146/C) the tender cost has been recovered from all the
contractor who have downloaded the document and action as per E in C circular has
been taken against those who have not put tender after downloading.
iv. In this bill 01% third party testing charge Rs.1256/- has been deducted but test report
not placed in the file.

W.O. No. 30 dated 28.03.2017 M/S Eastern Chemical Centre

i. As per invoice no.126 dated 30.03.2017 description of goods “panchagra with

wooden handle as per your specification “ quantity 2000 no.@ Rs.198/- each
total amount Rs.396000/- instead of ‘MS Panji “ whereas W.O.no.30 dated
28.03.2017 for supply of M.S. Panji as per your specification . so this invoice was
not for MS Panji supply against purchase order no.30 dated 28.03.2017( date was
overwriting)
ii. The challan of M/S Eastern Chemical Centre the work no. not mentioned and
bill amount not shown the signature of AE(S) not found in verification of supply
of MS Panji .
iii. Test check of EE/AE not placed in the file.
iv. Completion report not placed in the file.
v. Annual requirement of items received from zones for the year 2016-17 not found
in the file.
vi. Pay order for Rs. 396000/- & deduction of Rs. 7920/- on a/c income tax but 3%
of Edu. Cess not deducted from the 1st & final bill against WO no.30 dated
28.03.2017. Hence Rs.238/- may be recovered from the M/S Eastern Chemical
Centre and deposited in the Municipal Treasury through G-8/ challan

W.O. No. 27 dated 28.03.2017 M/S Eastern Chemical Centre

i. Supply of MS ring challan no 373 dated 29.03.2017 for MS ring was shown
Rs.20000/- made overwriting Rs.10000/- to Rs.20000/- MB no.24360 at page no 02
and supply received by JE on 29.03.2017.
ii. Edu. Cess of Rs.180/-(3% of Rs.6000/-) not deducted in the bill.
iii. Completion report not found in the file.

PARA-14: 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 Accounts Branch of the concerned zone for verification in the first week of
the month following the month to which the same pertains. But it has been noticed that the
department has failed to do so, needs clarification.
 12

PARA NO.15:- OTHER OBSERVATION

a. In the voucher no.2 WB dated 30.08.2016 fresh cheque issued vide v. n. 01 WB/store dated
09.12.2016 vide cheque no.006907 dated 09.12.2016 cheque issued without receiving a
letter from Bank regarding stoppage of payment and fresh voucher not issued in this regard.
b. Voucher no. 03 store dated 08.08.2016 page no 03 Measurement not accept by contractor.
c. Some electricity bill pass for payment only given Meter no site not mentioned.
d. Telephone bill no.27014051 w.e.f. 01.01.2016 to 31.12.2016 Rs.882X12= Rs.10584/- why
bill pass one year instead of month wise.
e. 04 MB no.44856 to 44859 issued to Gaurav JE without work order mentioned.
f. MB + Bill form register made in plan ruled register.
g. No signature of issuing and receiving person.
h. No supervisory check found in the MB & Bill form register.
i. 50 Bill form received on dated 02.03.2017 and issued 16 Bill form to JE why create new
demand.
j. In the MB register page no 95 , 101 MB balance in hand why the department received 50 no
MB received from Engg.(HQ)
k. No paging and Paging certificate at the binging of the Work Order Register issue register
by the competent authority available and no periodical check by the competent authority
was done.
l. Overwriting/cuttings be avoided in future and if made it should be got attested by the
concerned authorities

INTERNAL AUDIT OFFICER

ZAP/CITY SP ZONE