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Discrepancies in DTC software: CAG report

By Our Staff Reporter

NEW DELHI, APRIL 9 . An Information Technology audit of the payroll system in the Delhi Transport Corporation done by the Comptroller and Auditor-General of India has revealed that despite Rs. 7.30 lakhs being spent on the system, much of the work had to be done manually as it could not result in critical reports on Employees Pension Scheme, Provident Fund Update and Provident Fund Contributions Slips of each employee.

Incidentally, the failure of the system comes at a time when DTC had by March 31, 2004, already accumulated losses aggregating Rs. 2,420 crores which far exceeded its paid-up capital of Rs. 117 crore.

Stating that the management had issued a notice for breach of contract in January 2001 of to M/s Binary Systems Limited, which had developed the application software for payroll preparation, the Report of CAG for the year ended March 31, 2004, states that the payroll system was marked by lack of adequate physical and logical controls to safeguard against unauthorised access, theft and damage.

The audit scrutiny also revealed that no physical access register was being maintained to guard against unauthorised access to the system; only a single password existed for all users and the passwords were not being changed periodically.

Further the test check of the City Compensatory Allowance, Dearness Allowance and House Rent Allowance revealed that the calculations arrived at were not in consonance with the admissible rates or the prescribed formulas. As such, in 1,030 cases amounting to Rs. 24.83 lakhs, the CCA was not in order; in 7,363 cases amount to Rs. 1.18 crores, the HRA calculation was wrong; while in 153,179 cases the DA calculation was awry.

Pointing out that the Government had stated in October 2004 that there were no extra payments as there were three manual level checks to guard against the same, the CAG said, "it is clear that the data generated by the application system cannot be relied upon and manual checks have to be conducted thus defeating the very purpose of a computerised payroll system''.

The audit scrutiny, it said, also revealed that the Basic Pay fixed was more than the maximum of the time scale in case of 118 drivers due to grant of next scale under the Assured Career Progression scheme and that the system did not have any provision to record and exhibit Stagnation Increment and Dearness Pay. Also, "minus balances'' were exhibited by it under the Contributory Provident Fund of 639 employees.

The Report finally said that "the Government while accepting the audit observation that the payroll system was not fully operational, stated in October 2004 that in light of the audit observations and the discrepancies in the present software, the Corporation was considering either procuring a fresh payroll software from NIC or outsourcing the application to some outside agency''.

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