NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT

S.P.ZONE

No.F_____/IAD/ZAP/SPZ/2014/ Dated:-_____________

Sub:- Physical verification and test check audit report on account of Advertisement
Department, Civic Centre for the period 08.11.2012 to 15.12.2013.

INTRODUCTION:-

The I.A.R.on the accounts of Advertisement Department, Civic Centre. was conducted by
ZAP/S.P.Zone comprising of Sh Manoj Kumar Naresh, I.A.O, Sh. Pradeep Singh Rawat, A.A.O,
Sh. Subhas Chand Mishra, Acctt. Asstt, Sh. Satish Kr. Sharma UDC and Sh. Sant Raj UDC. The
audit was conducted on 16.12.2013 to 31.12.2013.

Sh. C.L. Roy held the post of C.O.(Advertisement) at the time of audit.

AIMS AND OBJECTIVES

The main aim of the Advertisement Department is to earn revenue by giving contract
for displaying Hoardings on roadsides etc, to collect Advertisement tax on all advertisements
on buildings etc other than media and newspaper & to collect show tax from cinema halls.

HOD/H.O.S/D.D.O’s/CASHIERS

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

S. No. HOD Head of Office DDO Cashier

S/Shri S/Shri/Ms. S/Shri/Ms. S/Shri/Ms.
1. Sh. Jagdeep Chahar, Sh.C.L.Roy, Sh.C.L.Roy, -----
ADC/Advtt C.O. C.O.

Budget Allocation and Expenditure for the year 2012-13 and 2013-14.

Budget HeaddYear Allocation Expenditure up to year Excess/Saving

ending
17/1003 2012-13 16.40lac 11.94lac -04.46lac
17/1004 2012-13 11.40lac 15.76lac +04.36lac
17-1119 2012-13 22.80lac 18.53lac -04.27lac
17-1156 2012-13 0.38lac 0.25lac -0.13lac
17-1002 2013-14 12.40lac 07.85lac(up to Dec-13) -04.55lac
17/1003 2013-14 15.27lac 15.93lac(up to Dec-13) +0.66lac
17/1004 2013-14 28.79lac 12.78lac(up to Dec-13) -16.01lac
17-1956 2013-14 02.11lac 0.13lac (up to Dec-13) -01.98lac
17-1119 2013-14 36.26lac 24.60lac(up to Dec-13) -11.66lac

Statutory Audit:-

No audit report of statutory audit was provided to the Zonal Audit Party.
Vacancy Statement: Not Provided by the Department.

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

Sanctioned
1 Group A 01 01 Nil
2 Group B 02 02 Nil
3 Group C 09 05 04
4 Group D 06 06 Nil
5 D/W-Substitute 01 01 Nil

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 67 audit Para outstanding and the department has made compliance of as such
Nil para’s settled. The remaining 67 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 1987-89 02 - - 02
2 1996-00 05 - - 05
3 2000-01 06 - - 06
4 2001-03 06 - - 06
5 2003-04 06 - - 06
6 2004-05 12 - - 12
7 2005-07 19 - - 19
8 2007-07.11.12 11 - - 11

Total 67 - - 67

(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 1987-89 452.00 - 452.00
2 1996-00 Nil - Nil
3 2000-01 37.00 - 37.00
4 2001-03 Nil - Nil
5 2003-04 Nil - Nil
6 2004-05 103347.00 - 103347.00
7 2005-07 2069.00 - 2069.00
8 2007-7.11.12 12,64,693 - 12,64,693
Total 13,70,598/- - 13,70,598/-
Current Audit Report

Details of Current Recovery (Audit Period 08.11.2012 to 15.12.2013):-

Para No.’s Total Recoveries (in Rs.) Amount Recoveries Balance (in Rs.)
10 Rs. 6,81,844/- Nil Rs. 6,81,844/-
Total Rs. 6,81,844/-

The Internal Audit Report has been prepared on the basis of information furnished
and records produced by the department concerned.
This party disclaims any responsibility for any misinformation and/of non-
information on the part of audittee.

PART NO.-II (CURRENT AUDIT)

The following record was requisitioned for Audit/Scrutiny on test check basis
vide letter No.IAD/ZAP/SPZ/2013/01, dated 16/12/2013.
1. D & C Register
2. Renewal Register
3. PF & SB with ECR
4. Log book of vehicles
5. Daily Diary of field staff
6. G-8 Books with register
7. Private hoardings
8. Cash book
9. Negotiation files/Register
10. Record of creating new sites
11. Auction files/Records
12. Refund Register if any
13. Cinema files with show tax register
14. Daily Register
15. Tender Files with relevant records
16. Property Register
17. Stationary register
18. Budget Watch Register
19. Imprest Register
20. Uniform Register
21. Advance Register
22. OTA Register
23. Postage Register
24. Petrol Register
25. Dishonored Cheque Register
26. List of Debarred and Black Listed Contractors
27. Allotment Register
28. Tender Form sale Register
29. Tender Opening Register
30. Any other auditable records required during the course of audit.

PARA NO.-1 NON-PRODUCTION OF RECORDS

Out of the above requisitioned records, items at Sl. No. 1(P Narela Zone only),
3(P), 6(P only G-8 books), 7(P), 8, 13, 15(P), 18 and 29 were shown/produced to audit
for verification and test check audit of said record. Rest of the records as mentioned in
the requisition letter had not been produced to audit for inspection. Audit had issued three
reminders vide no.IAD/ZAP/SPZ/2013/03,&07 dated 20.12.2013, & 27.12.2013
respectively with the request to produce the record. In reference of requisition letter no.
01/IAD/ZAP/SPZ/2013 dated 16.12.2013, the department informed vide letter no. CO
(Advtt.) NDMC/2013/D-4670 dated 24.12.2013 regarding non maintenance of record
mentioned at s. no.04, 05, 11, 16, 21, 22, 24, 28, 19 and 20 of the requisition letter. The
non production of remaining records appears to have been avoided, reasons to which best
known to the department. If, any irregularity/discrepancy is found in the non-produced
record, at any stage, the whole responsibility will lie on the department itself.
 However, as a result of test check audit of the records whatever produced to audit, the
following discrepancies/omissions/errors etc., came to the notice of the audit.

PARA NO.-2: 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.
4. Entries made in the budget register were not initialed by the official maintaining it
and also by the DDO.
5. The date of issue of budget was not shown. The authority competent may direct the
official maintaining the register to mention the same which is mandatory.
Non maintenance of the Budget Register in accordance with the prescribed
procedure be explained to audit

On scrutiny of the Budget Watch Register for the year 2012-13 & 2013-14,
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 2012-13 and 2013-14.

Budget HeaddYear Allocation Expenditure up to year Excess/Saving

ending
17/1003 2012-13 16.40lac 11.94lac -04.46lac
17/1004 2012-13 11.40lac 15.76lac +04.36lac
17-1119 2012-13 22.80lac 18.53lac -04.27lac
17-1156 2012-13 0.38lac 0.25lac -0.13lac
17-1002 2013-14 12.40lac 07.85lac(up to Dec-13) -04.55lac
17/1003 2013-14 15.27lac 15.93lac(up to Dec-13) +0.66lac
17/1004 2013-14 28.79lac 12.78lac(up to Dec-13) -16.01lac
17-1956 2013-14 02.11lac 0.13lac (up to Dec-13) -01.98lac
17-1119 2013-14 36.26lac 24.60lac(up to Dec-13) -11.66lac

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.
 ARA NO.-3: IRREGULARITIES IN THE G-8 BOOKS & NON-SUBMISSION OF
INCOME VERIFICATION CERTIFICATE:

The following G-8 Books were produced to Audit:-

1. BI067501 to 600
2. BI059601 to 700
3. BI067201 to 300
4. BI066901 to 67000
5. BI074501 to 600
6. BI074401 to 500
7. BI074601 to 700
8. BI067601 ti700
9. BI074301 to 400
10. BI074201 to 300
11. BI059701 to 800
12. BI074001 to 100
13. BI067001 to 100
14. BI059301 to 400
15. BI059401 to 500
16. BI059501 to 600
17. BI66801 to 900
18. 67301 to 400
19. 67401 to 500

During audit of these G-8s, audit has observed the following irregularities:

(i) The columns provided in the G-8 books were not properly filled up;
(ii) Complete narration not given while depositing the amount in Mpl. Try;
(iii) The G-8 books were in torn condition,
(iv) Cuttings had been found at many G-8 receipts which were without any attestation
of the competent authority. Cuttings and overwriting should be avoided while
handling the G-8 books.
(v) The cancelled G-8 receipts were not got signed by the competent authority.
(vi) Challan vide no. 01, 43 and 68/AO/HQ dated 01.4.13, 08.8.13 and 14.8.13
respectively were found without certificate of cashier. The photocopies of these
challan were found in the file.
(vii) Challan no. 68, 73, 140, 316, and 317 of different dates were found in photocopy.

(viii) An amount of Rs.15,26,310/- was realized through G-8 No 074049 to 54 on

27.4.2013 and deposited to Mpl. Try. With verification of dealing assistant and
cashier but in the challan no. 167/AO/HQ dated 29.7.2013 the amount shown Rs.
13,46,365/- only. The difference of Rs. 1,79,945/- may be clarified to audit
immediately.

(ix) Rs. 5,07,256/- deposited by the department on a/c of Advertisement Tax, Cinema
Fee, Security etc through o7 numbers of DD and issued G-8 receipt from serial
no. BI059680 to 686. The said amount was deposited in to Mpl. Treasury on
dated 01.4.2013 by giving the certificate of deposit on the back side of G-8 receipt
no. BI059686 by cashier. The said amount was deposited through two challan
bearing no. 03/AO(HQ) dated 01.4.2013 amounting Rs. 3,87,256/- and
01/AO(HQ) dated 01.4.2013 amounting Rs. 1,20,000/- but challan no.
01/AO(HQ) was not acknowledged by the cashier of Mpl. Treasury, AO(HQ).
Reason may be clarified to audit for using two challan for depositing of DD
amounting Rs. 5,07,256/- and non acknowledgement of the receipt of the cashier for
Challan no. 01/AO(HQ). A memo vide no. 05/IAO/ZAP/SPZ/2013 dated 20.12.2013
issued to department but no reply has been received so far.

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.
 PARA NO.-4: DELAYED REMITTANCE OF MONEY COLLECTED
THROUGH G.8 RECEIPTS INTO THE TREASURY

Clause 4 of Chapter II of Municipal Account code Part I inter alia stipulates that all
moneys received for credit to Municipal Fund shall be remitted into treasury, the next day. It
was however noticed in Audit that amount collected through some of the G.8 receipts on
different dates as given below, was not deposited into the treasury immediately into the
municipal treasury

G-8 NO. DATE OF DATE OF DEPOSIT IN AMOUNT

ISSUE MPL TREASURY (Rs.)
1. BI059601-79 22.3.2013 26.3.2013 53,01,427
2. BI059687-94 03.4.2013 05.4.2013 9,55,836
3. BI067256-66 13.9.2013 16.9.2013 3,65,931
4. BI074477- 31.10.2013 04.11.2013 50,81,798
500
5. BI074601-19 21.10.2013 24.10.2013 15,47,620
6. BI074620-62 24,25.10.2013 28.10.2013 15,72,085
7. BI067022-28 23.5.2013 28.5.2013 24,750

From the above it is clear that the department had not followed the instructions issued
from time to time in this regard. Reason of late deposit may be clarified to audit.

PARA NO.-5: AUDIT OBSERVATION IN BUDGET REGISTER 2012-13

(HIRING OF GAS CUTTER AND ENGAGEMENT OF TEMPO ON HIRING
BASIS)

During test check of the Budget Register, (2012-13) it was observed that the
department incurred below mentioned expenditure on hiring of Gas Cutter and
engagement of Tempo:

EXPENDITURE ON GAS CUTTER

S NO PERIOD AMOUNT (RS.)

1. 06.3.12 to 27.3.12 45,500/-
2. 17.10.12 4,250/-
3. 07.11.12 8,000/-
4. 23.11.12 4,500/-
5. 08.02.13 4,500/-
6. 12.02.13 8,250/-
7. 13.02.13 8,250/-

EXPENDITURE ON TEMPO HIRING

S. NO PERIOD VEHICLE NO AMOUNT

1. Period not mentioned Tata 407 (DL-1LC-9045) Rs 6,000/-
2. Period not mentioned -do- Rs 49,500/-
3. Period not mentioned -do- Rs 43,500/-
4. Period not mentioned -do- Rs 9,000/-
5. Period not mentioned -do- Rs 9,000/-
6. Period not mentioned -do- Rs 9,000/-
7. Period not mentioned -do- Rs 9,000/-
8. Period not mentioned -do- Rs 9,000/-
9. Period not mentioned 15.01.2013 to 24.01.2013 Rs 9,000/-
 No file related to the above expenditure was produced to Audit by the department.
In absence of the required record/files related to above mentioned expenditure it could
not be ascertained whether:

1. The department had followed the prescribed procedure to incur the

expenditure in accordance with Rules in this regard.

2. The necessary sanction/approval of the Competent Authority was obtained

or not. Since no detail with regard to the expenditure was available in the
register.

No expenditure can be incurred by any authority without obtaining prior

sanction/approval of the Competent Authority and also without following the prescribed
procedure. In view of the above observation, the department may clarify/justify their
action and show the relevant record to the audit.

PARA NO.06: IMPROPER MAINTENANCE OF CASH BOOK.

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

The following irregularities were noticed during the test audit of the Cash Book for the
period 08.11.2012 onwards.

1. The cash book was not page numbered completely and also no certificate regarding no. of
pages was available on the cash book.
2. The cash book must be balanced/ closed on daily basis and should be initialed by the
person maintaining it and also by the DDO concerned but the same had not been done for
many years by any of the official.
3. No detailed narration of the expenditure shown in the Cash Book.
4. The hard copy of the Bank Statement for the account, also not shown to Audit for cross
check.
5. Bank Reconciliation Statement for the Bank Accounts being operated in the Division for
contractor’s payment and 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 Division. Non preparation of the BRS is a
serious lapse on the part of the deptt.
6. Cheque no. 9913 dated 31.7.2013, 9915 dated 07.8.2013 and 9917 dated 12.9.2013 were
cancelled and pasted in the cash book without signature of any competent authority on it.

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

to audit.

PARA NO.07: IMPROPER MAINTENANCE OF ECR(2013-14)

On scrutiny of ECR for the year 2013-14 so produced to audit, the following
irregularities were noticed in maintenance of the same:
1. The ECR was not page numbered completely and also no certificate regarding no. of
pages was available on the ECR.
2. In most of the pages the Cutting / Overwriting was found and the same were not attested
by the DDO. Fluid used at the record entry of Sh. Naresh Kr. LDC also not attested.
3. DNI and DOR were not shown in the record entry of Sh. Anil Kr. LDC.
4. No periodic check of the ECR by the competent authority was found available.
PARA NO.8: IMPROPER MAINTENANCE OF DEMAND & COLLECTION
REGISTER:

Chapter III of the Municipal Account Code I provides that a Demand &
Collection Register shall be maintained in form 2. At the beginning of the each year a fresh D&C
Register shall be opened in which shall first be entered the name of all leases against whom the
arrears are shown as due on a/c of previous years with the amount of such arrears after which the
entries relating to the demand of the current financial year shall be posted and the word “arrears”
being written in red ink in the column “Remaks” colums against the name of any person in the
list of current year. The department had produced the Register for Narela Zone only. A review of
the D&C register ( Narela Zone) maintained in the Advertisement Department disclosed that the
register was not being maintained properly. The detail with regard to office order number and
date vide which rate of MLF, security deposited, Interest, Penalty, total dues etc has not been
mentioned in the columns provided for the purpose and in most of the cases and also the amount
of arrears as dues on a/c of previous year has not been mentioned in red ink in the column “
remarks” by the department.
In the absence of mandatory entries in the D&C register, the amount on a/c of recovery of
license fee and outstanding dues cannot be ensured. It is a serious lapse on the part of the
department. The reason for the non maintenance of D&C register properly may be clarified to
audit and submit the statement of outstanding dues.

In view of the above the authority competent is requested to take action in this regard at
the earliest possible under intimation to audit.

PARA NO-9: IRREGULARITIES FOUND IN TENDER FILES SO PRODUCED

TO AUDIT FOR AUDIT SCRUTINY:(Recovery of RS. 12,64,693/-)

During the course of audit of Tender Files so produced to audit, the following
irregularities/discrepancies were noticed by the audit:-

(A) Name of Advertisement site:- Uniplole of footpath opp. Delhi University, Gate
no. 03,Vishwavidhyalaya Marg, FTC Malka Ganj(CLZ). Name of Contractor-
Pionear publicity Corp.(P) Ltd. MLF- Rs. 71,700/-. Allotment date-
16.12.2011.(Recovery of Interest Rs. 31,628/-)
1. Only single tender was received in this case.
2. Agreement was made on non-judicial stamp paper of Rs. 100/- purchased on
06.01.2012. All mandatory column like date of execution of agreement, date of
handing over physical possession, site number etc was not mentioned and
signature of any authority from MCD was not available in the agreement.
3. On the offer letter the signature of CO (Advt.) was found not available.
4. The contractor had not made payment of MLF etc, to MCD on their due date
w.e.f. December 2011 to July 2012, but paid after due date. The department had
not charged interest from the contractor for late payment @Rs. 2%pm. The
interest so calculated by audit amounting Rs. 31,628/- be recovered from
contractor under intimation to audit.

(B) Name of Advertisement site:- Unipole file of Bikaner Kids Gulab Singh
Marg(RZ), Name of Contractor- Pioneer publicity Corp. (P) Ltd, MLF-Rs. 55,900/-
(Loss of Rs. 2,01,122/- approx.)
1. DD no. 246455 dated 15.02.2011 for E/Money was not deposited in to the bank
and still enclosed in the file which is violation of instructions issued by the
Commissioner and GFR, needs clarification.
2. Offer letter no. CO(Advt.)/2010/D-8667 dated 22.02.2011 issued to advertiser
regarding deposit of three months MLF as security + one month advance LF
+Advt. tax+25% of EM as caution money at earliest on or before 28.02.2011
failing which offer stand withdrawn without any further reference.
3. Allotment letter given vide no. CO (Advt.)/2010/D-8804 dated03.3.2011.DD no.
824296 dated 05.5.2011 and 577025 dated 09.6.2011 was deposited in Mpl.
Treasury after lapse of 06 days needs clarification.
4. An amount of Rs. 1,000/- on a/c of tender cost paid by the contractor vide pay
order no. 686606 dated 14.02.2011 drawn on SBI Bank but no documentary
 evidence such as G-8 no. or G-8 receipt was available in the file from which it
could be ascertained that the amount had been deposited in the Mpl. Treasury.
5. Agreement was made on non-judicial stamp paper of Rs. 100/-M mandatory
column like date of execution of agreement , signature of Contractor and any
authority from MCD, non affixing of seal of the MCD etc was not mentioned
6. The contractor had not made payment of MLF for the period May-12, June-12
and September -12 (Rs. 1, 67,700) and MLF on their due dates w.e.f. May 2011
to November 2013, but paid after due date. The department had not charged
interest from the contractor for late payment @Rs. 2%pm. The interest so
calculated by audit amounting Rs. 32,422/- approx. and MLF as mentioned
above be recovered from contractor under intimation to audit.

(C) Name of Advertisement site:- Near Ashok Vihar Flyover behind

Aryabhatt Polytechnic opp. Electric poll and FTC GTK Road (CLZ). Name
of contractor- Pioneer publicity Corp. (P) Ltd, MLF Rs. 77,000/-pm.(
Recovery of Rs. 2,70,500/-)

a. An amount of Rs. 1,000/- on a/c of tender cost paid by the contractor vide pay
order no. 533746 dated 20.8.2011 but no documentary evidence such as G-8 no.
or G-8 receipt was available in the file from which it could be ascertained that the
amount had been deposited in the Mpl. Treasury.
b. Agreement was made on non-judicial stamp paper of Rs. 100/-M mandatory
column like date of execution of agreement, signature of Contractor and any
authority from MCD; none affixing of seal of the MCD etc was not mentioned.
c. As per clause 4 of T&C, advertiser who intends to submit tender shall have to
deposit in advance E/M. In this case E/M amounting Rs. 15,000/- was deposited
by advertiser through pay order no. 533702 dated 20.8.2011 and tender opened on
dated 26.8.2011, but pay order deposited through G-8 no. CZ1224247 dated
30.9.2011. Reason for late deposit may be clarified.
d. As per Offer letter issued to advertiser regarding deposit of three months MLF as
security + one month advance LF +Advt. tax+25% of EM as caution money. As
per clause 4 of T&C the 75% of the E/Money/ caution money will be adjusted
towards security as provided in clause 7 of the T&C and balance 25% amount will
be retained as caution money which will be refunded to the advertiser on a written
request after the end of contractual period. In this case it is seen that department
has violated this clause of T&C which needs clarification.
e. The contractor had not made payment of MLF for the period May-12, June-12
and December -13 (Rs. 2, 31,000/-) and MLF on their due dates w.e.f. December
2011 to December 2013, but paid after due date. The department had not charged
interest from the contractor for late payment @Rs. 2%pm. The interest so
calculated by audit amounting Rs. 38,500/- approx. and MLF as mentioned
above be recovered from contractor under intimation to audit.

(D)Name of Advertisement site:- On footpath behind taxi stand front of Dr. Ambedkar
Bhawan, Rani Jhansi Road, FTC, Link Road, Name of Contract- pratibha Advertiser(P)
ltd, MLF- Rs. 87,101/- (Recovery of Rs. 1,42,094/-)

a. Agreement was made on non-judicial stamp paper of Rs. 100/-M mandatory

column like date of execution of agreement, signature of Contractor and any
authority from MCD; none affixing of seal of the MCD etc was not mentioned.
b. DD no. 362147 dated 15.02.2011 for E/Money was not deposited in to the bank
and still enclosed in the file which is violation of instructions issued by the
Commissioner and GFR, needs clarification.
c. It was noticed that there was 05 days delay in deposit of three months MLF as
security+ one month MLF in advance+ caution money+ Advt. Tax after receiving
of DD needs clarification.
d. The Advt. Tax for the year 2012-13 and 2013-14 was not received by the
department, so the recovery of Rs. 495+495=Rs. 990/- be recovered from the
contractor.
f. The contractor had not made payment of MLF for the period April-12 (Rs.
87,101/-) and MLF on their due dates w.e.f. April 2011 to December 2013, but
paid after due date. The department had not charged interest from the contractor
 for late payment @Rs. 2%pm. The interest so calculated by audit amounting Rs.
54,003/- approx. and MLF as mentioned above be recovered from contractor
under intimation to audit.

(E) Name of Advertisement site:- Adjoining footpath, near Sri Ram Institute Bus
stand (CLZ). Contractors name- M/S Pioneer publicity Corp. (P) Ltd, MLF- Rs.
63100/- (Recovery of Rs. 36,560/-)

a. It was noticed that there was 11 days delay in deposit of three months MLF as
security+ one month MLF in advance+ caution money+ Advt. Tax after
receiving of DD needs clarification.
b. Contractor had deposited Rs.48,100/- on a/c of one month advance LF vide
DD no. 938799 (HDFC) dated 19.9.2011 after adjusting the EMD amounting
Rs. 15,000/- already deposited with the department vide DD no. 533791 dated
20.8.2011, whereas the G-8 receipt for DD no. has been mentioned as 533708
dated 20.8.2011 drawn of SBI, needs clarification.
c. As per Offer letter issued to advertiser regarding deposit of three months MLF
as security + one month advance LF +Advt. tax+25% of EM as caution
money. As per clause 4 of T&C the 75% of the E/Money/ caution money will
be adjusted towards security as provided in clause 7 of the T&C and balance
25% amount will be retained as caution money which will be refunded to the
advertiser on a written request after the end of contractual period. In this case
it is seen that department has violated this clause of T&C as full amount of
EMD ie Rs. 15,000/- was adjusted in one month LF which needs clarification.
d. MLF for the period 05.11.2011 to 30.11.2011(26days) amounting Rs. 52,923/-
deposited by advertiser vide DD no. 849681 dated 08.11.2011(HDFC) but
MLF for this period comes to Rs. 54,687/- hence short deposit amounting Rs.
1,764/- be recovered from the contractor.
e. Agreement was made on non-judicial stamp paper of Rs. 100/-, the mandatory
column like date of execution of agreement, signature of Contractor and any
authority from MCD; none affixing of seal of the MCD etc was not
mentioned.
f. An amount of Rs. 1,000/- on a/c of tender cost paid by the contractor vide pay
order no. 533771 dated 20.8.2011 but no documentary evidence such as G-8
no. or G-8 receipt was available in the file from which it could be ascertained
that the amount had been deposited in the Mpl. Treasury.
g. The Advt. Tax for the year 2012-13 and 2013-14 was not received by the
department, so the recovery of Rs. 492+492=Rs. 984/- be recovered from the
contractor.
h. The department had not charged interest from the contractor for late payment
@Rs. 2%pm. The interest so calculated by audit amounting Rs. 32,812/-
approx. and MLF as mentioned above be recovered from contractor under
intimation to audit.

In view of the above it is clear that the department had failed to bind the contractor under
provisions of T&C and had not recovered outstanding municipal dues from them so an
appropriate effective action be initiated against the defaulting contractor under the T&C of
allotment. The above said case are illustrative and not exhaustive and other cases of similar
nature cannot be denied. The concerned dealing assistant be directed to check all such type of
cases as illustrated above and municipal dues be recovered accordingly under intimation to audit.

PARA 10:- NON FOLLOWING THE GFR PROCEDURE WHILE CREDTING

MUNICIPAL MONEY INTO ACCOUNT.

During the course of audit it has been observed that department has failed to act in
accordance with the General Financial Rule “All moneys received by or on behalf of the
Govt. shall be brought into Govt. Account without delay”. In most of the cases the license fee
recovered from the advertiser had not been deposited into the Municipal treasury in time.
There was undue delay in deposition of license fee .
 Secondly as per terms and condition, the contractor had to deposit the license fee in advance
by 10th of the same month and on failure to make full payment/Late payment the contractor
was liable to pay late fee/interest @ 2% per month but in most of the cases it was seen that
the license fee was being paid after 10th of the every month but the department had not
charged the late fee/interest from the defaulting contractor. Hence it was evident that deptt.
failed to bind the advertiser to comply the term and condition of the contract and initiate any
action against the defaulter as per term and condition.
The reason for the above irregularities may be explained to the audit.

PARA NO.11: IMPROPER MAINTENANCE OF SHOW TAX D&C REGISTER.

During the course of audit of D&C register of show tax for the period 2012-13 and 2013-
14, the following irregularities were noticed by audit:

1. Paging of the register was not completed and paging certificate was not
verified by the competent authority.
2. Cutting and overwriting seen in some of the place without any
attestation from the competent authority.
3. Periodic check was not done by the any supervisory staff.
4. The outstanding dues which are to be collected from the different
cinema halls on a/c of show tax were not mentioned in the register.
5. Rate of show tax for each cinema was not mentioned against the column
provided due to which was difficult to ascertain the exact rate approved
for the show tax.
6. D&C was not updated by the department as in most of the cases the
department had not received the show tax since April 2012 on continuous
basis resulting and department had not taken appropriate action against in
this regard.
The reason for above said irregularities and none collecting of show tax
from the cinema halls be clarified to audit. The outstanding may also be
recovered under intimation to audit.

PARA NO.12: NON/MAINAINANCE OF NIT FILE, BEING A SEPARATE RECORD

During the course of test audit of the records of Advertisement Department it came to the
notice that the NIT file was not being maintained. In absence of such important record, it was
difficult for audit to requisite any link up record to audit. The competent authority was advised to
direct the dealing assistant to prepare a NIT file containing all the relevant record/information in
respect of each and every tender, under intimation to audit.

PARA NO.13: NO PRINTED SERIAL NUMBER ON TENDER FORMS SOLD AND

RECEIVED BACK

It came to the notice of the audit that the manual tender forms being issued to the
contractors were not machine numbered. Printed serial numbered Tender Forms should have
been used to avoid any manipulation/misuse. Hence the department may look into the matter
and take necessary action accordingly under intimation to audit.

PARA NO.-14: IMPROPER MAINTENANCE OF THE S.BS/PERSONAL FILEs

A test checks of PF &SBs of the officers/officials it was disclosed that PF & SBs were not being
maintained in a proper way. Necessary entries were not being made and paging of files was not
paged numbered. Some of the irregularities mentioned as under:-

(I) PF & SB of Sh. Rajesh s/o Sh. Ram Kishan UDC

a. Photograph has not been changed after the completion of 10 years of
service-I and existing photograph was not signed and stamped by the
DDO.
 b. At page no. 3 of SB-I the educational qualification was not filled up and
left blank and columns at page no. 4 were not filled up completely. The
mandatory columns of SB-II at page no. 3 and 4 were left blank.
c. E. L. account maintained up to 31.12.13.

(II) PF & SB OF SH. Akhilesh Kumars/o Sh. Brij Lal, Lorry Beldar

a. No sign and stamp of attestation officer found in page 3 of SB.

b. Photograph has not been changed after completing the 10 years of
service.
c. Qualification columns were not filled up.
d. Leave record of HPL was not opened till date.
e. E/L w.e.f 23.01.2012 to 27.01.2012 was not debited in the leave record.
f. No paging has been done in personal file.
g. At page no. 3 of SB-I the educational qualification was not filled up and
left blank and columns at page no. 4 were not filled up completely.

(III) PF & SB OF Sh Hari Kishan Sharma s/o Sh. Babu Lal Sharma, Lorry Beldar

a. No GPF no. was mentioned on the cover page of SB.

b. E.L account was not completed after 30.06.05 and also HPL account
was not opened till date.
c. E.L. taken w.e.f. 06.01.93 to 08.01.93 and 13.01.93 to 15.01.93 as per
application placed in Personal File but the same was not debited in leave
account, needs clarification.
d. No paging has been done.
e. Photograph has not been changed after completing the 10 years of
service
f. Signature of the employee on annual increment column in SB-II was not
found available.
g. Cutting/ overwriting not attested by DDO at page no. 14 and 15 of SB-I.

(IV) PF & SB OF SH. Raju Wilson s/o Sh. Pearson Wilson, Lorry Beldar

a. No GPF no. was mentioned on the cover page of SB.

b. No signature of employee against the entries of increment was found.
c. Photograph has not been changed after completing the 10 years of
service.
d. At page no. 3 of SB-I the educational qualification was not filled up and
left blank and columns at page no. 4 were not filled up completely.

SOME COMMON IRREGULARITIES FOUND IN MOST OF THE FILES

A. Column no.-8 was not signed by the employee in almost all the SBs.
B. The leave record was 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. Most of the Personal Files were not paged numbered. The PF.was in torn condition. In
many cases the leave applications for the Leave taken as per the Leave Account of the SB
were not attached. Audit has further observed that loose sheets were placed in the file in
the leave account of Service books for entries of leave period whereas it should be on
prescribed leave account Performa attached with the service books, needs immediate
compliance.

PARA NO.- 15: OTHER AUDIT OBSERVATIONS:

1. It was suggested that date of expiry of the advertisement contract be mentioned on the
advertisement board at the site, so that the validity be known at site instantly.
2. No test check was found by the competent authority in any of the records produced to
audit.
 3. Cuttings and overwriting were seen in most of the record, which were without attestations
of the competent authority.
4. In most of Service Books, the leave record of employees were not completed, Column 8
of the SBs were unsigned and there were no signatures of payment of arrears of DA and
bonus etc, of the DDO as well as Accounts Officer, the Personal Files were not
maintained in a proper way and not duly paged.

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

ACCOUNT OFFICER
IAD/ZAP/SPZ

FORM – I A – 4

PERFORMA FOR FURNISHING INFORMATION FOR THE UNIT AUDITED +

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

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

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

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

Period of Accounts 01.08.10 to 12.08.11

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

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

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

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

B Paras Settled 30 Recoveries effected Rs.19992.38

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

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

17. If any embezzlement case inviting Yes No

attention of higher authorities
(if yes, give details)
No

Signature of JAO:___________________
Name of JAO: _____________________

Signature of I.A.O.: ___________________

Name of I.A. O.: _____________________

Date:
 FORM – I A -5

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

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

S. No. PARTICULARS REMARKS

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

(ii) Examine the system of receipt custody and use of No cheque books were
cheque-books and offer comments. Prepare a list of Produced.
cheque-books received by the DDO for verification
with the office of issue. Have the balance books-in-
hand been verified by the DDO ?
(iii) Similarly, examine the system of receipt, custody No receipt books were
and use of the receipt book and offer comments. Produced.
Prepare a list of Receipt Books for verification with the
office of issue. Have the balance books-in-hand been
verified by the DDO ?
5 Bill for Pay & Allowances:- Mentioned in the
(i) Have the cheque been received as per Bill Register Observations regarding
(Form TR-28A) from the PAO and taken into each Cash book.
book ? Cases of delay in the receipt of cheque from the
PAO should be looked into and commented.
(ii) Have all the cheques issued by the PAO during the -do-
selected month (as per list received from the PAO been
ticked off with the Cash Book.
 (iii) Salary vouchers (including bills for advance and all Not produced
types of allowances etc.) for the selected month have
been closely scrutinized with reference to entitlements
and acquittance.
(iv) Are the rules regarding accounting of and Not provided
disbursement of unpaid salaries strictly followed and
register kept upto date and reviewed periodically by
DDO.
(v) Examine salary bills to see it there are variation in Not provided
rates of pay from these shown in the Service Books.
(vi) Examine the LPCs issued during the period of -do-
review to see that the rates of pay and allowances
admissible and recoveries due are shown correctly.
(vii) In the staff employed covered with sanctioned Not provided
strength. (Has the staff been employed for gainful
purpose or there is scope of economy ?)
6 Contingencies:- Mentioned in the report
(i) Is the register of contingent expenditure maintained
according to the provisions of CRs ?
(ii) Have the sub vouchers been cancelled after -do-
payment.
(iii) Is the expenditure covered by general/specific -do-
sanction ?
(iv) Are the rules regarding engagements of MR labour -do-
property followed ?
(v) Have the certificate of quality and entry of Stock Not provided
Register recorded on the vouchers ? (Entries should be
checked with the initial account records, i.e. Stock
Register, Stationery Register, Consumable Registers
and correctness verified, thereof).
7 Service Books and Leave Account:- The SBs were examined
(i) Review the service books and leave accounts to see And observations are made
that the entries therein are up-to-date; Calculation for In the report
leave-at-credit are correct, as per rules; and the annual
verification certificates recorded in the service books.
(A list of service books examined should be obtained
and kept for records).
(ii) Delays, if any, in the grant of annual increments -do-
should be pointed out and reasons ascertained from the
Head-of-office.
(iii) Has the pay fixation been correctly done ? Cases of -do-
wrong pay fixation should be indicated with brief note
the amount involved.
8 GPF account of Group-D:- Not provided
Have the GPF account of Group-D employees been
properly maintained ? If no, what are the main defects
(give references to para in IR)
9 Overtime Allowances:- Not provided
Has overtime been sanctioned by competent authority
and allowed in accordance with the current rules and
have all the subsidiary and initial records been
maintained ?
10 Stores and Stock:- Yes.
(i) Are stock register maintained for consumable and
non-consumable stores and rare the transaction posted
as and when they occurred ?
 (ii) Check all the purchase vouchers and verify the Not provided
purchase in these registers.
(iii) Check the supply orders with reference to 14 supply orders were
quotations and comparative statements. Checked and recoveries
Effected.
(iv) Are the issues made under proper authority ? yes
(v) Examine the physical verification report and Mentioned in the report
ascertain if any shortage has been reported therein and
if so, what action has been taken for its regularization ?
(vi) It should be seen that there is no unnecessary -
accumulation of stock
11 Log Books:- Not provided
(i) How many vehicles are there with the department ?
Check the log books and link the purchase of POL and
other accessories with the relevant paid vouchers ?
(ii) Is the vehicle maintaining normal mileage every -do-
month ?
(iii) Case of extra-ordinary repairs carried out should -do-
be investigated with reference to sanction of the
competent authority. Register of maintenance vehicle
should also be seen.
(iv) Are there journeys shown as “unofficial’s” so, -do-
what action has been taken to recover the amount from
the officers concerned ?
12 Examination of Reqisters:- -do-
List of records commonly required to be maintained by
each DDO has been indicated in Annexure-1(b).
Examine these registers/records.
13 Cheque books of cheque drawing DDOs:- Not provided
(i) Examine the record maintained for receipt custody
are use of cheque books received from PAOs
(ii) Has the DDO paid bills only in respect of items for -do-
which he was authorized to do so ?
(iii) Has the weekly scrolls been received on due dates -do-
from the bank ?
(iv) Have the Bank Reconciliation statements been No
prepared weekly got checked and sent to PAO ? Any
serious differences should be brought to notice.
(v) Examine as to whether the list of payments No
alongwith paid vouchers have been sent to the PAO on
due dates. Delay in sending should be pointed out.
14 Income Tax Deductions:- Not provided
Review cases to see that the Income Tax deducted-at-
source is correct and in accordance with the latest
Income Tax Rebates.
15 All Cases of sanctions issued by the office. e.g.. MCA, -do-
Festival Advances, Special Pay, etc. should be
examined to see that these have been granted in
accordance with GFR and all necessary documents and
formalities have been completed.
16 (i) See that a stock account of blank receipt books has -do-
been maintained check the balance and verify the
stock-in-hand by actual counting with the shown in the
stock book.
(ii) See that securities have been furnished by all the -do-
officials who handle money and property.
 (iii) See that annual store return has been prepared to -do-
shown how much capital is looked-up in the store
17 Furniture & other equipments, Machinery & Tools Not provided
and plant registers
See that the balance of articles of furniture and
machinery have been checked annually by officer
responsible for that and that the result of the
verification have been noted against the article
concerned.
18 Liability Register:- -do-
It should be examined whether suitable action is taken
to have the liabilities liquidation expeditiously.
19 Loans:- Not provided
Special care should be taken to examined that all
amounts drawn are properly accounted for and that
suitable record is kept to show that the loans have been
given to the persons entitled to receive this and
conform to the rules on the subject, it should be sent
that the recoveries are effected regularly. In case of
delay in repayment of loan it should be seen that the
penal interest has been charged at the rate prescribed
by government.
20 Register of watching the progress of expenditure:- Cash book was checked
Entries in this register should be checked with the cash
books, stock registers, etc. to see that the register is
being maintained properly. The allocation of the
expenditure between recurring and non-recurring
should be carefully checked.
21 The report may be called for to ascertain compliance to
the objection raised efforts should be made to get the
objection settled which relate to commissions/non-
maintenance of records over-payment of personal
claims.

Other irregularities which cannot be get right and still

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

JAO/AAO

Dated:- Signature of Inspecting Audit Officer