NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT

CITY ZONE

No. F__________/IAD/ZAP/CZ/2016 Dated:-_____________

Sub:-Physical verification and test audit report on the account of Pension Cell, Civic
Centre, NDMC for the period 01.04.2012 to 14.5.2015.

Please find enclosed herewith the Audit Inspection Report of Physical verification and test
check audit on account of Pension Cell North MCD under the jurisdiction of City Zone for the
period 01.04.2012 to 14.05.2015. Para wise replies/comments may be sent to the office of the
undersigned within a period of four weeks of the receipts of this report.

Internal Audit Officer

ZAP/City Zone

AO/PENSION CELL (NDMC)

Civic Centre

Copy to:-
.
1. DCA/Pension (NDMC) Civic Centre for n. a. please
2. DCA/IAD(NDMC) for information pl.
3. Office copy.

Internal Audit Officer

ZAP/City Zone
 NORTH DELHI MUNICIPAL CORPORATION
INTERNAL AUDIT DEPARTMENT
CITY ZONE

No. F__________/IAD/ZAP/CZ/2016 Dated:-_____________

Sub:-Physical verification and test audit report on the account of Pension Cell, Civic
Centre, NDMC for the period 01.04.2012 to 14.05.2015.

INTRODUCTION

The I.A.R. on the accounts of Pension Cell under the jurisdiction of City Zone for the
period 01.04.2012 to 14.05.2015 was conducted by the following audit parties.

ZAP/City Zone ZAP/SP Zone ZAP/KBZ

Sh. Pradeep Rawat, AAO Sh. Pradeep Rawat, AAO Smt. Jai Shree, AAO
Sh. Sandeep Kr., A. Asstt. Sh. S.C. Mishra, A. Asstt. Sh. Surender Kr. Soni, UDC
Sh. R.K. Yadav, UDC Sh. Satish Chand Sharma, UDC Sh. Kulbhushan, UDC
Sh. Chander Shekhar, LDC _______________ Sh. Vipin Gupta, LDC

This audit comprises of Smt. Swaran Kumari AO, Sh. Sandeep Kumar, AO and Ms. Meenu
Mongia, AO. The audit was conducted during the period 14.05.2015 to 30.05.2015.

Sh. G. Ramesh was holding the post of AO/Pension Cell at the time of audit.

AIMS AND OBJECTIVES

The main aim and object of Pension Cell department is to maintain the record and
distribution of pension to the pensioners who have been retired from Municipal Services.

HOD/H.O.S/D.D.O’s/CASHIERS

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

S. HOD Head of Office DDO

No.
1. Sh. Pankaj Kr. Singh, Addl. Cm. (FA&P) Sh. S.K. Sachdeva, DCA Sh. G. Ramesh, AO

BUDGET ALLOCATION AND EXPENDITURE FOR THE YEAR 2012-13 TO 2014-15

Budget Year Expenditure up to year ending Excess/Saving

Incorporate in the report.

STATUTORY AUDIT

No audit report of statutory audit department was provided to the audit party.
VACANCY STATEMENT

S.No. Name of Post Group No. of Posts sanctioned Filled Vacant Remarks
1. DCA A 1 1 ---
2. AO B 1 1 ----
3. AAO B 1 1 ----
4. Jr. Accountant B 1 1 -----
5. Head Clerk B 1 0 1
6. UDC C 2 1 1
7. Account Asstt. C ------ 2 ---- Working on
diverted capacity.
8. DEO/Direct C 1 1 ----
9. DEO/NIELT C 1 1 ----
10. Peon D 2 2 ----
11. Casual Labour D 1 1 ---

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

As per available record/register (started w.e.f. 2006)there were 08 audit paras

outstanding mentioned at page number 113 of the register in respect of Pension Cell. The
department has not made compliance of these paras and as such nil paras have been settled.
These 08 paras have been incorporated with current audit report as part-I (old audit report).

DETAILS OF OLD RECOVERY

Sl. Period of audit Report No. & Date Total Gen. M. Val. M. Val.
No. Paras Para Para
01 1990-91 to F-746/IAD/CZ/95/37 dated 05 05 nil nil
28.12.1994 31.3.1995
02 01.4.2001 to F-1176/IAD/CZ/03/519 dated 03 03 nil nil
11.11.2002 20.6.2003

TOTAL 08 08 ------ ------

CURRENT AUDIT REPORT

Details of Current Recovery (Audit Period 01.04.2012 to 14.05.2015):-

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

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 mis-information and of non-
information on the part of auditee.
PART NO.-II (CURRENT AUDIT)

The following record was requisitioned for Audit/Scrutiny on test check basis vide letter
No.IAD/ZAP/CZ/01 dated14.04.2015.

1. P. File & S. Book with ECR.

2. Pension case files.
3. Imprest Account.
4. Cash Book.
5. Cheque Book.
6. Stationary Stock Book.
7. Postage Register.
8. Advance Register.
9. Record relating to payment to retired employees.
10. Cases of deceased employees.
11. G-8 Books and Challan.
12. Money order record.
13. Files of policy matter.
14. Files regarding appointment policy of the employees of DDA and Delhi administration
15. Office Order and Circular File.
16. List of Bank Accounts alongwith Bank Statements for Audit period
17. List of pending court cases, if any
18. List of reemployed pensioners alongwith relevant records with a certificate that DA on
pension is incorporated in the Form 16 of concerned reemployed employees issued by the
DDO
19. Bank Reconciliation statement of all Bank Accounts of pension cell
20. Records of arrears released to Pensioners
21. Pension Fund-Regulations & Monthly contribution from different zones
22. Copy of agreement with PNB/ICO Bank
23. PPO Ledger
24. Cash Book w.e.f. 2001-02
25. List of Pensioners of NDMC alongwith List of pensioners transferred to EDMC & SDMC after
trifurcation
26. Any other auditable record required during the course of audit.

PARA NO.-1 NON-PRODUCTION OF RECORDS

Out of the above requisitioned records, items at Sl. No. 01(P), 02(P), 04(P), 07, 12, and
15 16(P),19(P),20(P), 23(P)24(P) were produced to audit and department furnished a certificate
vide no. AO(Pension)/NDMC/ 456 dated 15.5.2015 regarding non maintenance of record
mentioned in the requisition letter of audit vide non. 01/IAD/ZAP/CZ/2015 dated 14.5.2015 at Sl.
No. 03, 06, 08 and 11. Moreover audit has issued a letter vide no. 06/IAD/ZAP/CZ/2015 dated
18.5.2015 regarding production of further important records mentioned on it for scrutiny but the
department produced the record mentioned at Sl. No. 01(P), 04(P), 08(P) and 09(P) of the said
letter. Rest of the records requisitioned vide above mentioned requisition has not been produced
to audit for inspection despite of personal efforts/verbal request by audit and by issuing audit
memo vide No. 09, 12 and 14/IAD/ZAP/CZ/2015 dated 21.05.2015, 28.05.2015 and 29.05.2015
respectively Either the above said records were not maintained or the production of the same
has been avoided, the reasons of which may be explained and justified to audit. In case of
irregularity, if any, is found by any agency at anytime in the non-produced records, then the
concerned official /officer will be responsible for all the irregularities.

It is further observed that no complete chain/linked record has been produced to audit
due to which audit is not in a position to check the record properly.

However, as a result of test audit of the records whatever produced to audit, the
following discrepancies/omissions/errors etc. came to the notice of the audit.

Non Production of Mandatory Record

During the course of audit of records pertaining to Pension (HQ), it is noticed by audit
that mandatory record like mentioned below are not maintained by the department:-

1. Cash Book of bank Account no. 200005679 of UCO Bank, Account No. 0113002103049857 of
PNB (old for unified MCD), Account no. 0113002107358692 PNB and Account no.
00700210001349 of UCO Bank(used for disbursing pension)
2. Master record showing detailed information of total number of pensioners of unified
MCD/NDMC and record of PPO files transferred to EDMC and SDMC at the time of trifurcation
being nodal officer
3. Bank Statement of Account no. 0113002103051010(PNB), Account No. 200005679 UCO
Bank , A/C no. 0113002103049857 of PNB(Old for unified MCD)
4. Bank reconciliation statement of A/c no. 0113002107358601(PNB) bank A/c no.
0113002107358692 PNB and A/c no.00700210001349 UCO Bank (used for disbursing
pension)
5. Record of FD’s
6. List of reemployed pensioners

An audit memo vide no. 12/IAD/ZAP/CZ/2015 dated 28.05.2015 issued to the

department in this regard with the request to produce the same, but no reply has been made by
department till date.

Hence, concern department is again requested to take necessary steps to

maintain/produce the above mentioned record immediately & intimate the same to
Audit.

Para No. 02:- Irregularities in disbursement of pension through Money Order and
maintenance of Money Order Register.

During the course of test check audit of money order register as produced by department
w.e.f. 13.4.2013 onwards, it comes to the notice of audit that:-

1. Money Order Register not completely paged numbered. Only weighed paging from 01 to 46
found in the register. Paging certificate at the beginning of the register was also not given by
the competent authority.
2. The important column of the M.O register was not filled up by the department and the
column of payment of pension per month shown completely blank.
3. As per proviso to sub-rule(1) of rule 80-B “if the claimant or any of the claimants desire the
payment of provisional family pension or of gratuity or of both through money order or bank
draft, the same shall be remitted to him or her through money order or bank at his own
cost.” But the department is not following the rule as disbursement of pension instead of
provisional pension is being sent to pensioner through money order at their postal address.
4. As per circular no. AO (Pension)/NDMC/1616 dated 08.11.2013 “Monthly pension of all these
cases will be released from the pension headquarter through PNB/UCO Bank”. The
department is suggested to comply according to the circular.
5. No any acknowledgement of receipt of money order from the pensioner is found in the
money order file, needs clarification.
6. The efforts be made from the department to open the account of the pensioners in the post
office from where they are getting money order for feasibility and fair disbursement of
pension.
7. “If the payment is by postal money order, identification is required twice a year as prescribed
otherwise annually”, but no record of postal money order identification is found in the
provided record.
8. Signature/thumb impression of pensioner on the first payment made thereon found blank in
most of the cases and no signature of AO(Pension) found on the pension payment order
distribution portion in M.O register. It is not clear to audit how the department is verifying
the signature/Thumb impression of the pensioner.
Reason for above said irregularities be justify to audit at earliest.

An audit memo vide no. 10/IAD/ZAP/CZ/2015 dated 22.05.2015 issued to the

department in this regard but no reply has been made by department till date.

Para No. 03:- Non preparation of Bank Reconciliation Statement of Pension

disbursement A/C’s

During the course of audit of record pertaining to Pension (HQ), it is stated that as per list
provided by the department five numbers of bank A/Cs are being maintained in pension HQ. Out
of them department is maintaining cash books of only two accounts viz. A/C no.
0113002107358601 and A/C no. 0113002103051010 (PNB) (old account unified Corporation,
Pension disbursement A/C) operated in the name of Comm.(MCD). But no Bank Reconciliation
Statement of any Bank Account was prepared except Bank Account no. 0113002107358601
which is also from August 2012 to Feb2014. Even Cash books of the remaining three
disbursements A/C vide no’s. 0113002107358692(PNB), 00700210001349(UCO) and
01130021030449857 (PNB) were not produced to audit party. It seems that such record is either
not maintained or willingly not shown to audit.

In this concern, it is pertinent to mention here that as per record a lump sum amount of
Rs. 22.00 Crore on monthly basis is being transferred to different banks for disbursement of
pension/family pension but department has not maintained any master record of such payments.
Even, the department failed to provide the list of pensioners whose pension/ family
pension are regularly disbursed on monthly basis. There may be possibility of huge
amount lying in bank accounts without any claim which could be found out only after competing
of upto date Bank Reconciliation of these accounts.

An audit memo vide no. 13/IAD/ZAP/CZ/2015 dated 28.05.2015 was issued

in this regard to the department and requested to take necessary action to complete
upto date Bank Reconciliation without any delay. But no reply in this regard has
been received by the audit till date.

Hence, concern department is again requested to take necessary steps to

complete the up-to-date Bank Reconciliation immediately & intimate the same to
Audit.
Para No. 04:- Non-Production of Cheque Book Stock Register

While checking the Cash Books produced to audit, it is noticed that huge number of
cheques are being issued from the old Bank accounts of Pension HQ. But, the link records such
as cheque book stock are not shown or are not prepared by the Pension deptt. In the absence of
such a mandatory record, it is not possible for audit to reconcile the number of cheque books
received from bank, the number being issued and the balance in stock.

Pension cell deals with huge transactions relating to disbursement of pensions and
cheques are being issued to pensioners. There are always chances of misuse of unused cheques
and also the possibility of embezzlement of Mpl. Fund also cannot be ruled out. As the BRS for
the bank accounts is not being prepared regularly and the record for cheque book stock and
disbursement register is also not being prepared/produced, the fund position and the cheques
realized in the bank cannot be reconciled/checked.

However, as per the cashbooks produced to audit, the following cheques are either not
issued or missing:

Bank Account no. Period of Cash Book Cheque no.s

7358601 03.05.12 to till date 103927, 103930
3051010 PNB 140564,140573,140584 03.05.12
3051010 PNB 140601 to 604, 140646 to 140700 09.05.12
3051010 PNB 140810, 140842 11.05.12 to 07.06.12
3051010 PNB 140622, 140627 03.05.12

The competent authority is again requested to get the above mentioned record prepared
so as to keep a close watch on the cheque books received and issued and also signatures of the
cheque book issuer and recipients be taken along with date and shown to audit for verification.

Para no. 5: Cheque Issue Register for Bank ac no. 0113002107358601

(Disbursement a/c) w.e.f. 03.2.14 to till audit date

Cheque Issue Register started w.e.f 03.02.2014 to till date of North NDMC maintained for
the Bank Account no. 0113002107358601 (Disbursement Account) produced by the department.
On scrutiny of the register, the following irregularities/discrepancies were noticed by audit:-

1. Paging of the register is not done.

2. Paging certificate is not given.
3. All the relevant columns like sl. no., cheque issue date, signatures of issue of D.A.,
signatures of recipients, date, and voucher nos. are not shown.
4. For cheque Book 103801-103900, it is noticed that the column for cheque no.s 103828,
103878, 103880 are left blank; no remarks are mentioned against them. If they are
cancelled the same should be recorded in the register.
5. Again, cheque no.s 103927 & 103930 are not shown in the Cheque issue register.
6. Cheque no. 103942 is shown as unused.
7. Relevant record of cheque book stock register and cheque disbursement register was not
provided by the department. In the absence of relevant record it could not possible to audit
to reconcile the number of cheques un-disbursed and used/ un-used. Misuse of un-used
cheques, if any cannot be denied.

The following mentioned cheques were not found in the cash book as used cheques:-
 Cheque no. 7358601, 140564, 140573, 140584, 3051010 dated 03.5.2012, 140601 to
604, 646 to 700 dated 09.5.2012, 140810, 140842 dated 11.5.2012 to 07.6.2012, 140622,
140627 dated 03.5.2012.

It is clear from the above mentioned observations that the register is not maintained
properly. The competent authority is requested to advise the dealing hand to prepare the
Cheque Issue Register showing all the columns as mentioned and if any cheque is cancelled or
otherwise, remarks are given for the same.

Above said observation may justify to audit.

Para No. 06:- Observations noticed in the Bank Reconciliation Statement of Main
Accnt. No. 0113002107358601, PNB

BRS for the above mentioned account was produced to audit for verification. It is noticed
that:

1. Bank Statement for the period 01.06.2012 to 27.05.2015 was produced to audit. The balance
as on 27.05.2015 was Rs. 1,62,21,716.70
2. BRS for the period August 2012 to Feb. 2014 only was produced to audit.
3. As per the BRS for Feb. 2014, it is noticed that there are many corrections which are to be
done in the Cash Book and are pending for more than 2 years old. But, no efforts are been
made to correct the cash book, after proper verification.
4. Uncashed Cheques as on 28.02.2014 is Rs. 3,37,274.00, but the detail or the same is not
produced to audit so as to check the amounts which more than 3 months old.
5. An amount of Rs. 1.80 crores is shown as “less income taken”, in cash book but no date is
mentioned in the BRS and also no any detail is shown for such huge amount as “less taken”
is not known to audit.
6. Bank charges amounting to Rs. 2501.85 is shown as charged by the PNB, till Feb. 2014,
which are not got refunded by the bank. As this is a Mpl. loss, and MCD being a Govt.
agency, efforts may be done to get the same refunded back from the bank, at the earliest.
Also, the detail of bank charges is not shown to audit.
7. Again, Rs. 1250.00 charged by the PNB as Cheque book charges as on 16.07.2012 is
shown to audit, which is also a mpl. loss and may be recouped from the bank.
8. It is noticed that Rs. 1,60,000.00 are shown as “excess amount debited by bank on
05.09.2012 in favour of Comm. NDMC”. The said transaction was more than 2 years old, at
the time preparation of BRS, but the same is not credited back into the account till the audit
period.
9. It may be clarified to audit the reason for not making corrections in the cash book.

As per the above mentioned observations, the competent authority may advise the
concerned Dealing Asst. to make efforts to get the amounts debited by the bank which are a
mpl. loss. And also to make corrections in the cash book for the amounts which are less or
excess booked and may be shown to audit for verification. Further, Bank Reconciliation for the
above mentioned account may be prepared upto the audit period and shown to audit.

Para No. 07:- Irregularities in expenditure under budget allocation.

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.
Department was request to provide the budget register to audit party for scrutiny but not
provided to audit, the reason best known to department.

As per statement of budget allocation and expenditure provided by the department for
the year 2012-13 to 2014-15, it was noticed that department had failed to keep proper watch
on the allocations & expenditure during the financial year. The detail of the same is given
below:-

Budget Allocation and Expenditure for the year 2012-13 to 2014-15.

2012-13

Budget Head Allocation Expenditure up to year ending Excess/Saving

i-A-d-i ,10-1001 group A 60,000 1,81,436 -1,21,436

i-A-d-ii,10-1002 group B 4,00,000 9,19,321 -5,19,321
i-A-d-i ii,10-1003 Group C 2,15,000 6,81,337 -4,66,337
i-A-d-iv ,10-1004 Group D 60,000 1,13,918 -53918
i-A-d-III-ii-10-1193 Telephone 3,000 2,878 122
i-A-d-III-iii-10-1156 Postage 1,000 567 433
i-A-d-III-iv-10-1119 Misc. 7,000 72,289 -65,289

2012-13

Budget Head Allocation Expenditure up to year ending Excess/Saving

i-A-d-i ,10-1001 Group A 6,00,000 1,91,061 4,08,939

i-A-d-ii,10-1002 Group B 6,00,000 22,13,690 -16,13,690
i-A-d-i ii,10-1003 Group C 10,00,000 16,51,971 -6,51,971
i-A-d-iv ,10-1004 Group D 2,00,000 3,20,508 -1,20,508
i-A-d-III-ii-10-1193 Telephone 10,000 0 10,000
i-A-d-III-iii-10-1156 Postage 3,500 3,156 344
i-A-d-III-iv-10-1119 Misc. 55,000 2,04,847 -1,49,847
10-1149 Computerization 18,000 16,062 1,938

2013-14

Budget Head Allocation Expenditure up to year ending Excess/Saving

i-A-d-i ,10-1001 Group A 10,00,000 0 10,00,000
i-A-d-ii,10-1002 Group B 50,00,000 59,87,853 -9,87,853
i-A-d-i ii,10-1003 Group C 55,00,000 54,24,495 75,505
i-A-d-iv ,10-1004 Group D 11,00,000 11,14,581 -14,581
i-A-d-III-ii-10-1193 Telephone 20,000 0 20,000
i-A-d-III-iii-10-1156 Postage 2,000 1,973 27
i-A-d-III-iv-10-11119 Misc. 3,00,000 2,76,583 23,417
10-1149 Computerization 50,000 39,558 10,442

2014-15

Budget Head Allocation Expenditure up to year ending Excess/Saving

i-A-d-i ,10-1001 Group A 10,80,000 9,33,759 1,46,241
i-A-d-ii,10-1002 Group B 50,00,000 80,11,668 -30,11,668
i-A-d-i ii,10-1003 Group C 45,00,000 71,83,508 -26,83,508
 i-A-d-iv ,10-1004 Group D 9,50,000 23,40,931 -13,90,931
i-A-d-III-ii-10-1193 Telephone 20,000 0 20,000
i-A-d-III-iii-10-1156 Postage 2,500 10,649 -8,149
i-A-d-III-iv-10-11119 Misc. 2,10,000 1,52,353 57,647
10-1149 Computerization 70,000 57,271 12,729

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: Irregularities found in the maintenance of Postage Register.

On scrutiny of Postage Register for the w.e.f 23.12.2014 to till date of this audit as
produced by the department, the following irregularities were notice by the audit party:-
The register was not paged numbered and no paging certificate was given at the
beginning of the register:-

1. No supervisory check/signature of DDO are found anywhere in the register.

2. No recoupment of postage money has been made and no sanction of
recoupment/expenditure of the competent authority was placed in the register.
3. Requisition for recoupment for postage money was not made in the register.
4. The balance of amount in hand and amount of sanction of postage money could not be
verified in the absence of above mentioned record.
5. Dispatch numbers found mentioned in some places without date so that it may ascertained
whether the dispatch of letters were in time or not.
6. Dispatch number D-1210 is mentioned two times in the register.
7. Cutting and overwriting in the entries were not attested by the competent authority.

The above said irregularities in maintaining the Postage Register be clarified to audit.

Para no. 09:- Irregularities /Discrepancies in 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 Books so produced by the department the following
discrepancies have been noticed in maintenance of the cash book.

1. The Cash Book for the period 06.11.2012 to 07.5.2015 maintained for old Bank
Account no. 0113002103051010, in the name of Commissioner MCD (Unified A/c) was
not page numbered and also no certificate regarding no. of pages was available on the cash
book. On scrutiny of the cash books of above said Bank Account Audit has observed the
following:-
a) There was no signature of the competent authority in the balancing amount and BRS found
not done. Closing balance of the cash book as on 11.7.2013 was Rs. 47,73,78,268.98/- but
opening balance as on 12.9.2013 was shown Rs. 43,71,45,478.18 needs clarification.
Moreover interest occurred by the department was not mentioned in the cash book.

b) As per the said Cash Book, the bank account was made “Zero Balance” on 23.07.2014 by
transferring the balance of Rs. 21,44,02,050.23 to Bank A/c No. 0113002103049857. But as
per Cash Book closing balance shown on 23-7-14 was Rs. 15,15,83,868.08. No detail of
difference in the closing balances between Bank Account & Cash Book, is
enclosed/pasted/produced. Even the detail of uncashed amounts & Direct debits, like
RTGS/Cheque Book charges etc. (which is a mpl. loss to be recovered from bank being Govt
Bank Account) which have been debited from the account as per Bank Statement not shown
in the Cash Book.
c) As per bank statement produced to audit it is noticed that amount was shown received
regularly as recoveries made by bank. But some entries are not shown in cash book.
d) Many letters are pasted in the cash book, showing huge amounts being transferred to a/c
no. 3049857, but the cash book of the same or any link record is not produced to audit for
cross verification.
e) As per bank statement Rs. 2,00,00,000/- are shown received through RTGS on 01.01.2015
but the transaction of the same are not reflected in the income side of the cash book. In this
concern, it is pertinent to mention that till date no any RTGS shown received in the bank
account, only old recoveries shown received in the above said Bank Account, per bank
statement produced to audit, needs clarification.
f) Further, as per the bank statement, entries of withdrawal on 12.01.2015, for Rs. 7000/-
,7230/- shown due to rejection of cheque No. 26323 & 661558 respectively & Rs. 2000/-
shown withdrawal for statement charges. Again, withdrawal of Rs. 8760/- Rs. 29200/- & Rs.
51887/- on 28.02.2015 due to rejection of cheque Nos. 300263,903465 & 49811 respectively
are shown in the bank statement. Reasons of these withdrawls due to rejection of cheques &
non-treatment of the same in the cash books may be elucidated to audit.
g) As per bank statement, balance of Rs. 3,65,82,534.94/- is lying in the above said bank
account. But, as per cash book the balance is shown as Rs. 1,66,60,755/- which does not
tally with the bank account, needs clarification. In this concern, audit is in a view that the
amount of Rs. 3,65,82,534.94/- may be further invested by making FDR in the bank. So that
income from interest can also be earned.

An audit memo vide No. D-15/IAD/CZ/2015/N dated 29.05.2015 issued to the

department in this matter but no reply made by the department till date.

2. The Cash Book for the period 01.08.11 to 06.02.12 maintained for old Bank
Account no. 0113002103051010

Paging of the register is not done and certificate is not given. Cheque no. 116259 dt
07.07.11 amounting to Rs. 44,151/- is pasted without proper cancellation. Clearing charges :Rs.
5 dt 02.08.11, Rs. 3/- dt 08.11.11, Rs. 5/- dt. 19.11.11 is levied by the bank, which are not
recouped till date. Cheque book stock register for the period not produced to audit. Cheque book
disbursement register is also not produced to audit; as such it is not possible to check the
genuinity of cheques issued to pensioners, as per CB.
3. CASH BOOK FOR Bank Account no. 200005679 UCO Bank, being maintained
July ‘13

The above mentioned bank account was being maintained by the department for the
disbursement of pension to the pensioners of outside Delhi. As per cash book an amount of Rs.
1,70,00,000/- was being regularly transferred to UCO Bank on monthly basis for the
disbursement of pension and no transfer of amount being made after July 2013.

As no further cash book having detail of disbursement of Rs. 1,70,00,000/- was being
maintained for above disbursement, the balance as on date could not ascertained by audit. It
seems that the said account was not closed as there are some pensioners were still drawing
pension from the said account without maintaining any cash book, needs clarification.

It was verbally known to audit by the officials of the pension cell that “the North
DMC, at present was not operating the account, but the South/East may be
operating.” But, no clear information or record was produced to audit and the bank balance as
on date was also not provided. In this concern, as huge amounts were shown transferred to &
disbursed from this bank account, the same should be monitored properly by the concerned
department. In view of above, it is requested that the matter may be taken up seriously and
steps be taken to stream line the same.

4. Cash book for the period 02.7.2012 to date of audit maintained for Bank
Account no. 0113002107358601 PNB

The above mentioned CB was not page numbered and also no certificate regarding no.
of pages was available on the cash book. Signatures of any official/officer not found on many
entries/pages. Daily opening and closing balancing is not done. Vouchers for the period
produced to audit were not bound and even not in order. On page no. 10: Advice no.1 for Rs.
27,13,719.00 is entered but on page no. 31, the same advice is entered again, without any
cancellations of the previous one or any remarks. As such, expenditure for Rs. 27, 13,719.00 is
booked twice needs clarification.

In view of above observations, the DA may be advised to maintain the CB as per above
suggestions like 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 in such cash books and above said irregularities/ discrepancies may clarified to audit.

PARA NO.10 NON RECONCILLATION OF FUND TRANSFER TO BANKS WITH THE BANK
SCROLLS

As per record a lump sum amount of Rs. 22.00 Crore on monthly basis is being
transferred to different banks of Delhi & Rs. 1.7 crores to UCO bank of outside Delhi for
disbursement of pension/family pension/arrears, irrespective of increase due to DA
increase/payment of arrears & decrease due to death of pensioners. But department has not
maintained/produced any master record of such payments. Even, the department failed to
provide the list of pensioners whose pension/family pension are regularly disbursed
on monthly basis. In this concern, it seems that the department is not reconciling/monitoring
the transfer of funds with the Bank scrolls having detail of disbursements of pensions properly,
due to non maintenance of mandatory records. There may be possibility of huge amount lying
in bank accounts without any claim which could be found out only after completing of upto date
Bank Reconciliation of these accounts.

Para No. 11:- payment of DA to re-employed school Principal and Teachers as per
produced record.

During the course of audit/scrutiny of pension files of re-employed principal/teachers so

produced to audit, audit has come to notice that according to resolution no. 844 dated
21.3.2008, regarding re-employment of the eligible retiring teachers/principals of the MCD/NDMC
for two years, till attaining the age of 62 years as recommended by Standing Committee and
guidelines/ instructions have repeatedly been issued regarding fixation of pay the re-employment
teachers/principals.

While checking the record of re-employed teachers by audit, audit has found that the
Education Department is giving the ad hoc bonus, annual increment that they are entitled after
completion of 6 month service as re-employed employee on 1th July of following year. As per
order issued by Zonal DDE to re-employee school principal/teacher for fixation of pay that the
pay fixed (BP+GP+DA) –(Pension+DA) on pension which are not deduction from the pay bill.
Therefore, the re-employed teacher have received the DA amount on full BP+OP from Zonal
Education Department as well as DA amount on pension received regularly from the Pension
department.

1. Smt. Premwati Sharma, Principal was retired on 30.4.2012 from Mpl. Primary School, Wazir
Pur, Village-I/RZ and allotted PPO no. 395/OP/11165. She was re-employed vide office order
no. D/DDE/RZ/2011/556/DDE/RZ dated 27.4.2012 for two years and joined duty w.e.f.
01.5.2012. At the time of retirement she was drawing salary @ Rs. 20,760 with Grade Pay
Rs. 4800. There were no any documentary record/documents by which it could be verified
that she was drawing salary after deduction of pension and DA only from salary or pension.

2. Smt. Savitri Devi, Teacher retired on 31.7.2013 and re-employed vide Office Order no. D-
2399/DDE/N dated 09.8.2013 in Mangesh Pur, (Girls) and allotted PPO no.
18702/1066/OP/N/NDMC. She was drawing DA with pension. It may be clarified from the
Account Department/Narela Zone, whether she is drawing DA with salary on re-appointment
or not.

3.
The above mentioned cases are just illustrative and not exhaustive, similar type of other
cases cannot be denied. The authority competent is requested to look in to the matter and direct
the concerned staff/official to check the records/files in the following manner:-

a) Basic Pay + Grade pay that given at last pay drawn of the re-employed principals/teacher for
pension purpose.
b) Recheck the Annual Increment that they are entitled after completion of 06 months service
as re-employed employees on 1st July of following year for annual increment.
c) Recheck the payment of Adhoc Bonus as they are not entitled for adhoc bonus on re-
employed employees.
d) DA should be paid on balance amount of LPC (BP+GF-Pension) as re-employed employees.

Appropriate action as per rule may be taken in this regard to avoid any discrepancies under
intimation to audit.
Para No. 12:- Delay in payment of pension/ pension arrear.

During the course of audit it come to the notice of audit that in some of the cases there
were delay in payment of pension/ pension arrears. One of the examples of the delay in
payment of pension/ pension arrears is given below:

Sh. G.D. Sharma H/O Late Smt. Padmawati-PPO no. 2551-G

1. Family Pension revised under VIth CPC w.e.f. 01.01.2006 vide AO (Pension) orders dated
07.5.2013 and bill for Rs. 68,807/- in r/o pension arrear w.e.f. 01.01.2006 to 30.4.2013 paid
on 17.5.2013.
2. Family Pension released w.e.f. 01.01.2006 onwards, @ Rs. 3,500/- GDR vide AO(Pension)
order dated 11.02.2013 and DC/CLZ order dated 29.01.2013, bill passed for Rs. 3,70,720/-
on account of family pension w.e.f. 01.06.2006 to 31.01.2013.
Reason in delay of payment may clarified to audit.

Para No. 13:- Irregularities/ Discrepancies in maintenance of Pension Files.

During the course of scrutiny of pension files so produced by department the following
irregularities/discrepancies were noticed by audit:

1. Smt. Suman Lata, Principal, PPO no. 15500/Z, Voluntary retired on 30.7.2009.

Smt. Suman Lata, Principal, voluntary retired on dated 30.7.2009 and drawing pension. After
expiring, her husband, namely Sh. Ravinder Kumar Kalra was authorized for family pension by
PNB, Tri Nagar, without any information to pension cell. It is clearly denial of circular no. AO
(P)2011/D/900 dated 03.6.2011, issued by CA-Cum-FA. As per this circular, it is clearly
mentioned that authorization of family pension should be subject to production of certain
documents such as original death certificate, family photograph, residence proof, form 40-A etc,
but no intimation in this regard was provided to the pension cell for the updation of PPO file kept
in the Pension Cell. As per record Pension Cell had corresponded many times to the concerned
bank for authorization of family pension but no reply so far was given by the bank.

2. Sh. Ram Niwas Sharma, Peon, retired on 30.4.2002 and expired on 27.5.2002.
File no. 21097/G.

As per the court decision pension w.e.f 01.5.2002 to 27.5.2002 & rest retirement Gratuity
has to paid on submission of court order, as shown in the noting of Acctt./P dated
13.5.2005, but no further noting regarding balance amount being made till date. It may
clarify whether balance amount paid to pension family or not as no entry of the payment
mentioned in the concern ledger and concerned file.

3. Sh Jagdish chander solanki, Retd. principal Edn. Deptt Rohini Zone DOB
30.04.2012 396/OP.

-Paging not done

-Sanction of pension Award Sheet so many column found blank
-Contingent bill in r/o Gratuity payment amount mentioned.
-pension bill found blank
-In option form submitted by the pensioner no bank dated available
-Form. 7 part iii found blank
4. Smt. Krishan Bala (Teacher), DOB. 30.04.2012 , 394/OP,

-paging of complete file is not done.

-Data sheet for sanction of pensioner awards to pensioner many columns found blank
-No amount mention in contingent bill in s/o gratuity payment
-Columns found blank in pension bill
-No bank dated found in option form
-Form 7 Part III found blank

5. Sh. Chander Singh s/o Sadhu Ram, DEMS/NZ, DOR 30.04.2012, 299/OP.

-No paging of complete file done

-Family photo of an pension payment order not found as well as rubber stamp of to, DCA

1. Sh. Satypal Verma, ZS/N ZONE, DOR 30.04.12, 264/OP.

-Complete paging of file not done

-Form 7 part III found blank
-option form not available
Contingent form for payment of gratuity payment not available whether the payment of
gratuity payment not available whether the payment of gratuity has been made or not

2. Sh. Bhoop Singh, Peon, DOP 31.07.2012. 261/OP

-Service book of the pensioner found with revised pension file should be returned to the
deptt concern.
-paging of pension file not don
-Main PPO file not found with this file.

3. Smt. Parkash Devi, SK, Narela Zone, DOB 31.03.12, 400/OP.

-Complete paging of the file not done

-family photo not found a payment order.

4. Satywati DOB 30.04.12 ,399/OP

-Family photo of pensioner not found an payment order.

-option form is not found in the PPO file.
- Complete paging of the file was not done.

10. Dr. Kamini Kapoor, CMO (Admn). /HRH, retired on 30.6.2013

She was occupant of Mpl. Accommodation (flat no. 09, Doctors flat, Hindu Rao) and had
not vacated the same at the time of her retirement, so the DR on pension was withheld. The
AO/CLZ vide letter no. D/53/CLZ/2014-15 dated 09.4.2014 released DR on pension w.e.f
01.7.2013 to till date i.e 30.4.2014. It was not clear that she has obtained No dues certificate
from Land & Estate Department of MCD or cleared all outstanding dues pertaining of overstayed
in Govt. Accommodation. It may clear on which ground AO/CLZ allowed to release withheld DR
to the retired Doctor.

Moreover it was also observed that in most of the cases, copy of pension payment order
to the manager, PNB/UCO bank has not been sent to the concerned Zonal Wing of the accounts
to upkeep the record. In some cases SB of the employees were kept in the pension department
and not sent back to the DDO concerned.

The above said irregularities/ discrepancies may clarify to audit.

Para No. 14: Improper maintenance of SB & PF.

During the checking of service book & personal files, it comes to the notice of audit that files
were not maintained up to date. Audit observed following irregularities in maintenance of the SB
& PF:-

1. Sh. Jitender Swami S/O Sh. S.N. Swami, Accounts Assistant.

i) Page no. 03 of the S. Book (part-I) , column no. 12 was not filled up and thumbs
impression of the employee was taken in this page.
ii) No signature of the competent authority found in the leave account and there were
cuttings & overwriting found without any attestation.
iii) Latest passport size photo of the employee was attached in the SB after completion
of every 10 years.
iv) Some of the leave applications applied and availed by the employee found without
having any diary number on it.

2. Sh. Nagender Kumar JAO

i) No proof of birth of the child for which paternity leave was claimed found not
available in the file and the application was also not found diarized.
ii) Concurrence of ACA Zonal in r/o of pay fixation after clearance of probation, pay
fixation at the time of promotion to the post of UDC, releasing of
increment/increments etc was not found in the file.
iii) Some of the leave application (availed and entered in the leave account) was not
found in the file.

The common irregularities found almost in every file were as under:-

-Photograph of employee affixed in Service Book but not attested by the DDO.
-Leave A/c of the employees not updated.
-There is no paging of personal files.
-No office orders/MACP orders placed in the personal file of concerned employee in some PF &
SB.
Form 3 having family detail not placed in the PF.

The above mentioned SB & PFs may be completed immediately, under intimation to audit.

PARA NO.15 OTHER OBSERVATIONS

1) Bank reconciliation statement of all the Bank Accounts should be prepared.

2) Cash Books of all the bank Accounts should be maintained
3) Daily balancing of the cash books should be done to ascertain the Cashbook balance
4) List of pensioners under North DMC be prepared & shown to audit.
5) List/record of reemployed teachers/employees should be maintained & ensure that no
payment of double DA was paid to reemployed teachers/employees after reconciling the
same from Zonal Authorities.
6) Efforts should be made to recoup the bank charges debited from all the Bank Accounts
by personnel contacting the Managers of Bank Accounts as it is MPL Loss, under
intimation to audit.

INTERNAL AUDIT OFFICER

ZAP/CITY ZONE