Document Sample
                    NEW DELHI

                              FOR THE PERIOD 2007-08

Inspection report on the audit of The Executive Engineer, Civil Road Maintenance
division – M-313, Govt. of NCT of Delhi, Majnu Ka Tilla, Delhi, for the period 01-04-07
to 31-03-08.

                                        PART – I
A        Introductory

       The accounts of the Executive Engineer, Civil Road Maintenance division (PWD
24) M-313, Govt. of NCT of Delhi, Majnu Ka Tilla, Delhi, for the period 01-04-07 to
31-03-08. were audited by audit party no. 08 headed by Sh. A.K. Prashar, IAO, A.O., Sh.
Munish Gambhir, JAO and Ms. Kamlesh Kalra, Head Clark w.e.f. 03.11.2008 to
18.11.2008 (11 working days)

    The following officials have held the charges of the respective posts as indicated
below for the period mentioned against each

    1.      Head of Office

            1. Sh. N.C. Garg, Suptt. Eng.          01-04-07 to till date

    2.      DDO

            2. Sh. A.K. Saini, Ex. Eng.            01-04-07 to till date

    3.      Executive Engineer

            1. Sh. R.S. Rao                        01-04-07 to till date

    4.      Divisional Accountant

            1. Sh. R.K. Sharma, AAO                01.04.07 to till date

    5.      Cashier

             1. Sh. V.K. Triwedi, UDC              01-04-07 to till date

        The division has five sub divisions under the Administrative control of the
Executive engineer of PWD Civil Road Maintenance division M-313 (PWD – 24), which
falls under the jurisdiction of the Chief Engineer Zone – III and the Superintending
Engineer, Circle –II and the major work of this division is the maintenance of Ring Road
and Outer Ring Road.


       The details of Allotment and Expenditure incurred during the audit period 01-04-
2006 to 31-03-2008 is as under
                                                                    ( in lacs)
    Year       Head of Account        Budget Allotted Actual Expenditure
    2007-08 MH – 5054                           840.00                   837.00
               MH – 3054                      1435.00                  1434.00
               MH – 2059 Estt.                    6.84                     6.83
               MH        –      2059              1.35                     1.33


      This is the first internal audit has been conducted by the Dte. Of Audit, Govt. of
NCT of Delhi.

AG (Delhi) AUDIT

AG (Delhi) has conducted the audit of this division up to 31-03-2007


       The general condition of the record of The Executive Engineer, Civil Road
Maintenance division (PWD 24) M-313, was found to be satisfactory, subject to the
observation made in the audit report. The inspection report has been prepared on the basis
of information/record furnished and made available. Dte. of Audit disclaims any
responsibility for any mis-information and/or non-information on the part of auditee.
                                         PART - I A

      This is the first internal audit has been conducted by the Dte. Of Audit, Govt. of
NCT of Delhi. The position of previous audit objections is NIL

  Year             Outstanding          Settled This Time       Still Outstanding
           Paras          Recovery   Paras        Recovery     Paras    Recovery

                                          PART - IB

Current audit report

        This time 11 preliminary audit memos were issued out of which 03 memos were
settled on the spot after verifying the compliance and the remaining 08 memos have been
converted into 6 paras and 2 Tan, and incorporated in current audit report as part – II.

              During the course of current audit no recovery has been pointed out,

                                                                        (A.K. Prashar)
                                                                           Party no 08
                                PART II
                         (CURRENT AUDIT REPORT)

Para No 1

Sub. :          Comprehensive Maintenance of Ring Road and Outer Ring Road

  Agreement No.                      :   17/E.E/PWD-XXIV/05-06
  Name of Work                       :   Comprehensive Maintenance of Ring Road
                                         and Outer Ring Road, Delhi
  Name of contractor                 :   M/s Maheshwari Brothers Ltd.
  Estimated Cost                     :   Rs.25,81,85,412/-
  Tendered Amount                    :   Rs.30,00,42,534/-
  Time allowed                       :   3 Years
  Stipulated Date of Start           :   24-08-2005
  Stipulated date of completion      :   23-08-2008
  Extended Date of Completion        :   23-12-2008

       The Govt. of Delhi, through the Hon’ble Minister of PWD in the meetings held on
28-02-03 and 06-03-2003 had desired a comprehensive maintenance contract on
important road corridors such as Ring Road and Outer Ring Road (approx 84 Km). Then
in year 2003 a proposal was moved to bring a new concept of Maintenance of Ring Road
and Outer Ring Road in Delhi for a period of 3 years, using machinery for sweeping
operations, citing the maintenance.

        A committee, consisting of Chief Engineer PWD Zone-3 as the chairman and
three Superintending Engineers with road maintenance back ground, was constituted by
the Engineer-in-Chief, The contract document was prepared by M/s RITES. The
technical sanction of the detailed estimate and the Notice Inviting Tender were approved
by the Chief Engineer, PWD Zone-III. The tenders were invited in two bid system and
four tenders were received from reputed / experienced firms from across the globe. The
work was awarded to M/s Maheshwari Brothers Limited, w.e.f. 24.08.05 for a period of
three years i.e. up to 23.08.08, approved by the Delhi Works Advisory Board.

        For the first time the work of Comprehensive Maintenance of urban roads has
been tried as a pilot project by this division, on most important road corridors of the
National Capital of India i.e. Ring Road and Outer Ring Road. Prior to the
comprehensive maintenance, the maintenance of Ring Road and Outer Ring Road used to
be done in a piecemeal manner through small contractors, wherein 8 Divisions, 16 sub
divisions & nearly 30 Junior Engineers were looking after the civil work, the horticulture
work was being looked after by the three Deputy Directors and their teams and sweeping
work was being carried out by MCD.

         The Comprehensive Maintenance is the Major Work of this Division.
        The above tender is an item rate tender (not a lump sum tender) and the payment
is made for actual quantities executed at site. It is one of the conditions of the agreement
that the bill of the work shall be computerised, which renders the minimum possibility of
human error in the accounting system.

       As per the record the work done up to 23-08-2008(i.e. for the stipulated period of
3 years), the details of the payment made through 15th R/A Bill (Cash Voucher No.64
dated 29-09-08 is as under:

     1) For the agreement quantities: Rs.28,96,62,036/-(Against the tendered amount of
     2) For Extra Items executed by the contractor: Rs.1,65,61,193/-
     3) Payment due to increase in prices/wages after receipt of tender : Rs.2,68,50,601/-
     4) Penalty imposed for non-performance of the work: Rs.49,12,832/-

        During audit it has been felt that the concept of the Comprehensive Maintenance
        is a new concept but at the same it is observed that:-

1.        It is not understood as to why the Department has not taken effective steps well
          in time so as to ensure the existence of new contract on or before completion of
          the existing contract and to rule out the possibility of extension or deviation of
          the existing contract.

2.        The Deviation Statement No. 3 to be approved by Superintending Engineer,
          being the competent authority, PWD CRMC M-31 in accordance with the in-
          principle approval of the competent authority is still awaited, whereas the
          deviation statement no. 4 & 5 have already been approved by the competent
          authority i.e. Chief Engineer, PWD Zone M-3.

3.        The new contract should have been put in place on 23.08.2008 but the same has
          not been put into effect even as on today despite Minutes of Meeting dated
          22.07.2008 held in the chamber of Pr. Secretary, PWD. Reasons for delay may
          be intimated to Audit.
Para No 2

Sub.:          Blockage of Fund amounting to Rs. 232 crores.

       The work Construction of Bridge and Approaches Over River Yamuna
Downstream of existing Bridge at Wazirabad was estimated to Rs 459 Crores. The
DTTDC agrees to under take the project as a deposit work, and will be completed within
a period of 48 months i.e. by August 2008 after the receipt of seed money i.e. Rs 115
Lakh. The Memorandum of Understating (MOU) between the Government of Delhi and
DTTDC was signed on 27.08.2004. As per MOU:

         (1)   Clause 2.07:- The funds are to be deposited in installments. 15% of the
               estimated cost shall be deposited as advance.
         (2)   Clause 2.10:- It should be insured by DTTDC that, in no case deposits
               received from PWD are diverted to work of other Department nor money
               received in respect of the deposit work is diverted to other deposit work.
         (3)   Clause 2.08:- DTTDC will send to the Government of Delhi the statement
               of expenditure along with schedule of deposit showing the progress of
               expenditure on deposit work settling forth the amount of the estimate the
               total deposit received and the progressive expenditure.

        The Administrative Approval and Expenditure Sanction to the tune of Rs 459
Crore issued by AHC (PWD-III) in March 2006. An amount of Rs 2.15 Crore was paid to
DTTDC during 2005-06 against the seed money of Rs 1.15 Crore and till date Rs 232
Crore has been paid to DTTDC which is more than 50% of the estimated cost.

        But till date the work has not been awarded. No such information has been
found/provided from which it can been seen that how much total amount has been
utilized by DTTDC till date and no progress report has been found in the file. If the
DTTDC is not sending the progress report, it is the violation of MOU Clause No. 2.08 &

        As per clause 2.10:-   The funds cannot be utilized for other work/deposit work

         1) As the amount of Rs 232 Crore is lying with the DTTDC, the interest
            amount thereon, if any, may be recovered or treated as a part of installment.
            As the work is still not awarded this resulted the blockage of Govt. money
            which could have been used for other projects. Department should take
            immediate steps.
Para No 3

Sub: Non-Settlement of Cash Settlement Suspense Account amounting to
     Rs. 7,42,118/-

        As per para 17.02.01 (b) of CPWD Account code with appendix -7-A, the
transaction on account of supplies made or services rendered, should be classified under
the head “cash settlement suspense A/C” and should be posted in the suspense register.
The claims (Outward and Inward) should be cleared with in 10 days of the receipt of the
claim and no balances should be remaining outstanding under this head at the end of
financial year.

      While scrutiny of monthly accounts and other related record it has been found that
an amount of Rs. 7,42,118/- is still recoverable from different divisions, as per detail

        Year         Name of the department/division               Amount
        1986-87      Executive Engineer Div.P, CPWD                     482402
        1987-88      Executive Engineer, PWD 7                           71458
        1988-89      Executive Engineer, Central         Division,       17206
                     CPWD, Shahdara
        1993-94      Executive Engineer, PWD 1                              5316
        1999-00      Executive Engineer, PWD 7                            165736

        Reason for not taking prompt action for the settlement of this amount may be
clarified to audit

Para No. 4

Sub:-     Time bared cheques amounting to Rs. 24,67,687/-.

        As per Receipt & Payment rule 47(2) a cheque remaining unpaid for six months
after the months of its issue for any cause, and not surrendered for renewal should be
cancelled, in the manner indicated under the rules with the difference that no
acknowledgement of the stop order may be insisted for the bank.

        While scrutiny of form 51 – “Schedule of Reconciliation of cheques drawn and
Remittances” and other related records for the month of March 2008, it has been noticed
that cheques amounting to Rs. 2467687/- which were issued by the division but not en-
cashed and became time barred.(list attached).These cheques relate to the period from
1991 to 2007, as these cheques have became more than six months old, because of no
claim/dispute there is no possibility of encashment of these cheques. HOO may please
take immediate steps to settle these accounts as per rule, under intimation to audit.
Para No 5

Sub:-    Public Works (suspense) Deposit.

        During the test audit of PWD-24 (M-313) for the audit period 2007-08, while
checking the monthly accounts and other related record of suspense deposit, it has been
found that a heavy outstanding/unclaimed/unadjusted balance is still lying in 8443-part-
I/III/V as per the detail.

   Sl. No. Suspense Account           Closing Balance as on March 08
   1       Part-II- Cash deposited by 2952565
           Contractor as security
   2       Part-III Deposit work      14500763
   3       Part-V Misc. Deposit       6077539

           While examining the balances under head Part-II - cash deposit by contractor
as security, with the reference to the balance shown in schedule of Deposit/suspense
deposit register it come to notice that the outstanding balance of part-II, include an
amount of Rs. 14.70 lakhs which is more than three years old and an amount of Rs.
1.00 lakh which is more than 22 years (March 86) old and are lying with the
department unclaimed/unadjusted.

         In pursuance of instruction contained in Receipt & Payment rules the
undisputed/unclaimed amount which is lying for more than three years old should have
been credited/ adjusted to Govt. accounts immediately.

Para No. 6

Sub: -    Payment to the Suppliers/Contractors through Electronic Clearing
          Service (ECS).

          As per the instruction issued by the central vigilance Commission, vide their
office order No. 20.04.2004 dated 06.04.2004 that the payment shall be made to all the
suppliers/Contractors through ECS, and keeping in view the above it was decided as a
policy by GNCT of Delhi vide office order No. F.4(39)/Fin(I&F)/2007-08/J.S. Fin/18-19
dated 10.01.2008 issued by Pr. Secretary (Finance) that all the payments to
suppliers/Contractors etc. will be made through ECS/EFT/RTGS by the self drawing
DDOs of PWD and I&FC Deptt. of GNCT of Delhi through their accredited bank.

        While audit it has been found that the above instructions have not been followed
by the division till date

                                                                   ( A.K. Prashar)
                                                                   Party No 08
                                       TEST AUDIT NOTES

Tan No. 01

Sub: Qualifying Service Verification

        As per the provision contained in the C.C.S.(Pension) Rule 32(1) the Head of the
office in consultation with the Accounts Officer shall verify the service rendered by a
Govt. servant, who has completed 25 years of service or with in 05 years of retirement,
determine the qualifying service and communicate to him/her. But in the following cases
qualifying service has not been verified, which may be verified in consultation with
P.A.O. concerned under the intimation to audit.

       Sl. No.         Name & Designation            Date of Birth     Date        of
       1.              Sh. Vishnu Singh, Driver          15.08.50         18.06.83
       2               Sh. Balraj Singh,                 26.02.49          20.07.72

Tan No 2

Sub.       Non Production of Record

                 The following records were not produced to audit

                 1.        Stock Register of TR - 5
                 2.        List of dead stock
                 3.        Register of review of M.B.
                 4.        T&P register/Stock registers of division/sub divisions
                 5.        Inspection report of sub divisions
                 6.        unpaid wages register of sub division
                 7.        Expenditure control registers.
                 8.        Broad sheet GPF class –IV
                 9.        Contractor Register
                 10.       Work abstract register
                 11.       Log books

                                                                        ( A.K. Prashar)
                                                                        Party no 08
                             PART III

1.   As per the GFR Rule 257(2) – The service book of a Govt. Servant shall
     be maintained in duplicate. First copy shall be retained and maintained by
     H.O.O. and second copy should be given to the Govt. servant for safe

2.   Annual physical verification of all the stores should be made once in every
     year as per GFR Rule.

3.   Inventory of the dead stock shall be maintained and report of surplus,
     obsolete and unserviceable store for disposal may be prepared as per the
     GFR Rules.

                                                         ( A.K. Prashar)
                                                         Party no 08