Ref. No. HUDCO/MRO/651/2019-20/ Dated 18.07.2019
Sub.:- APPOINTMENT OF CHARTERED ACCOUNTANT FIRMS AS INTERNAL
AUDITORS FOR UNDERTAKING COMPREHENSIVE INTERNAL AUDIT FOR THE
YEAR 2019-2020.
Housing and Urban Development Corporation Ltd. (HUDCO), a premier techno financing
institution under the Ministry of Housing and Urban Affairs, Govt. of India is engaged in
providing long term loans for financing of Housing and Urban Infrastructure Projects.
HUDCO, Mumbai Regional Office invites offers from eligible Chartered Accountant Firms as
Internal Auditors for undertaking Comprehensive Internal Audit for the year 2019-2020.
The following conditions are applicable with regard to submission of quotation for award of
work by HUDCO Regional Office Mumbai.
(I) The Scope of Work shall broadly cover the points as per enclosed Annexures as
detailed below :
(1) Scope of Work for appointment of Chartered Accountant Firms as Internal Auditors as per
ANNEXURE-I.
(2) Checklist of Scope of Work as per ANNEXURE-II.
(3) Eligibility Criteria for the Internal Auditor as per ANNEXURE-III
(4) Specimen Format of the Report as per ANNEXURE-IV
(II) :
(II) ELIGIBILITY CRITERIA :
1. The Chartered Accountant Firm should have at least three years' experience in
undertaking Internal Audit work of Public Sector Undertakings.
2. CA Firm should have minimum three number of partners (CAs) and minimum five
number of paid assistants {qualified (CA/CMA)/semi qualified(CA/CMA-inter)}
3. CA Firm should have local office not exceeding 30 kms. from HUDCO, Mumbai
Regional Office at Fort. It should also have minimum five working staff (including
one partner).
4. CA Firm should have at least two years' experience in handling Tax related matters
including filing of TDS in respect of Public Sector Undertakings.
5. The CA Firm is expected to undertake the review for each month's transactions in
the first week of succeeding month.
(III)
(III) SELECTION PROCEDURE :
:
The selection of consultant shall be based on Technical bid and Financial bid :
(1) The selection of CA firm is to be carried out by following two-bid system
i.e. tenderer shall be required to submit technical and price bid in separate cover
in overall sealed envelope.
(2) CA Firm to give an undertaking:
(i) That none of the partners has any relation with any employee of HUDCO and
also none of them has any relationship within the meaning of Section 2(76) of
the Companies Act, 2013 and also that none of them has any relationship
with the Statutory Auditors (M/s. Prem Gupta & Co.) and also will ensure
compliance under section 184 and 188 of the Companies Act, 2013.
(ii) Certified that we have not been appointed for carrying out
certification/consultancy of such related work of the same Regional office
which will have conflict of interest with the assignment as above as Internal
auditors of the said Regional Office.
(3) While evaluating the technical bids, CA firms' capability to perform the audit
related work should be assessed and inspection of their office may be carried so
as to establish the fact that the CA firms have local office.
(4) Firms will be shortlisted on the basis of Technical Bid.
(5) Financial bids will be opened from the shortlisted firms.
(6) If more than one firm selected as L1, then preference will be given to technically
sound firm.
(IV) :
(IV) TENURE OF THE APPOINTMENT :
The firm will be selected for the F.Y. 2019-2020. However, the appointment can be
renewed on yearly basis for another two years based on satisfactory work & with
approval from H.O.
(V) :
(V) MAXIMUM COST OF INTERNAL AUDIT WORK :
The upper tender limit of fees of Internal Auditor (excluding GST) is as under:-
(1) For audit and verification of imprest and project loan Rs. 10000/- per month.
(2) For audit and verification of HUDCO Niwas vouchers
(a) Less than 100 vouchers - Rs.5000/- per quarter
(b) 100 - 300 vouchers - Rs.7000/- per quarter
(c) 300 - 500 vouchers - Rs.8000/- per quarter
(d) 500 - 1000 vouchers - Rs.11000/- per quarter
(e) More than 1000 vouchers - Rs.13000/- per quarter
(3) For audit and verification of PDS vouchers
(a) Less than 500 vouchers - Rs.3500/- per quarter
(b) 500 - 1000 vouchers - Rs.6500/- per quarter
(c) 1000 - 2000 vouchers - Rs.13000/- per quarter
(d) More than 2000 vouchers - Rs.17000/- per quarter
(4) KYC and PML verification as per KYC and PML guidelines, pertaining to
Projects, PDS and HUDCO Niwas Rs. 300/- per month
(5) For audit and verification of sanction of project loans Rs. 100/- per case with a
ceiling of 10000/- per annum.
(6) For audit and verification of releases of project loans Rs. 100/- per case with a
ceiling of 10000/- per annum.
(7) For audit and verification of HUDCO Niwas sanction and release - Rs. 75/- per
case with a ceiling of 10000/- per annum.
(8) For audit and verification of PDS cases - Rs. 50/- per case with a ceiling of
10000/- per annum.
(9) Incidental Matters and other Miscellaneous work Rs. 300/- per month.
The Fees for aforesaid assignments has to be mentioned separately in Financial bid. No out
of pocket or other expenses shall be paid.
100% verification in case the number of vouchers in each category (as given in the
description of work in the eligibility criteria), is less than 100 in a month and sample
size of 50% in case the number is more than 200/250 per month.
The monthly/quarterly payments shall be made @80% of the due fees and balance
20% shall be released after audit of annual accounts by Statutory Auditors and
issuance of Tax Audit Report.
The CA Firm is expected to undertake the review for each month's transactions in the
first week of succeeding month.
(VI) :
(VI) GENERAL TERMS & CONDITIONS :
(1) The Consultant is expected to undertake the review for each month's transactions in
the first week of succeeding month.
(2) Internal Audit Department, Head Office has the right to replace CA firms if it is found
that the Internal Audit is not of required standard.
(3) The Internal Audit is to be conducted with the highest standard of professional,
ethical competence and integrity.
(4) Regional Office will also take the assistance of the Consultant in carrying out the
necessary rectifications promptly with a view to keep updated record.
(5) HUDCO has the right to replace consultant, if it is found that the reporting/verification
are not of required standard.
(6) Any modification in offer after the date of opening will not be considered.
(7) Offers received late will not be considered. HUDCO Regional Office Mumbai will not
be responsible for any postal delay or any delay whatsoever.
(8) HUDCO Regional Office Mumbai reserves the right to accept or reject any or all
offers without assigning any reason.
(9) / ,
( 10:00 5:00 )
(9) In case any information/clarification is required in respect of Tender, the same may
be obtained by visiting HUDCO Regional Office Mumbai during working days
(Monday to Friday between 10:00 a.m. to 5:00 p.m.).
(10) "
, 2019-20 "
2019-20 " -
(
)
(10) Quotations should be sent in a sealed envelope super scribing on top " Internal Audit
of Accounts of Regional Office, Mumbai for the Financial year 2019-20". Accordingly
you are requested to send Technical Bid and Financial Bid in two separate
envelopes (given as Annexure IV and Annexure V).
(11) " 2019-2020
" 2019-2020
(11) Bids should be submitted in a sealed envelopes clearly indicating "Technical Bid
for Internal Audit Work for the Financial Year 2019-2020" and "Financial Bid
for Internal Audit Work for the Financial Year 2019-2020" respectively.
(12) / , ,
, /
, ( , , )
(12) The offer/quotation should include the firm's detailed profile including the firm's
name, address, date of establishment, detailed profile of partners and brief details
of paid CA's associates/support staff, clientele (PSUs, Banks, Other Companies)
experience in handling work of PSUs.
(13) /
, , 175, , , - 400 001
29.07.2019 15:30 |
(13) Quotation/Offer can be sent by post or deposited in tender box available at
Reception on 2nd Floor in HUDCO Mumbai Regional Office at Shreyas Chambers,
2nd floor, 175, Dr. D.N. Road, Fort, Mumbai 400 001. The last date and time for
submission of offer is 29.07.2019 by 15:30 hrs.
(14) 29.07.2019 16:00
, ,
(14) The Technical Bid will be opened on 29.07.2019 at 16:00 hrs. Please submit copies
of Experience Certificate, Work Order, Registration Certificate etc. along with
detailed profile of firm in Technical bid.
(15)
,
(15) The Financial Bid of short listed firms on the basis of Technical Bid shall be opened
on a date and time to be communicated later on.
(16) . 3000/- /
. ... .. ,
...
. ... /
(16) EMD of Rs. 3000/- should be paid by RTGS / NEFT as per the bank details detailed
below. In case of CA firms registered as MSME, no EMD amount is required to be
paid subject to confirmation / submission of MSME registration certificate.
Name of the party : Housing & Urban Development Corporation Ltd.
Name of the bank : Axis Bank Ltd.
Branch : Fort Branch, Mumbai
Account No. : 911020033905070
IFSC Code : UTIB0000004
(17)
(17) EMD of successful bidder shall be retained as security Deposit and refunded on
satisfactory completion of the term. The EMD of unsuccessful bidders shall be
returned after finalization of appointment by HUDCO. Interest will not be paid on
EMD amount.
(18) / / ,
(18) Payment of fees/charges shall be made through RTGS/NEFT for which the bank
details will have to be submitted by the selected firm along with financial bid.
(19)
(), , , , 175, . , , -
400 001
(19) Location for submission of sealed quotation is Housing & Urban Development
Corporation Ltd. (HUDCO), Mumbai Regional Office, Shreyas Chambers,
2nd floor, 175, Dr. D.N. Road, Fort, Mumbai 400 001.
The above document is prepared both in Hindi and English. In the event of ambiguity or
conflict between the two versions, the English language version will be used for
interpretation in connection with these documents as may be required by HUDCO
,
Date :- 18.07.2019 .
()
ANNEXURE IV
TECHNICAL BID
(01) Name of the Firm ________________________________
(02) Status of the Firm
(Enclose supporting documents) ________________________________
(03) Date of Establishment of Firm ________________________________
(Enclose supporting documents)
(04) Address of the Firm ________________________________
________________________________
________________________________
(05) Telephone Numbers / Fax Numbers / E-Mail ________________________________
(06) Experience in undertaking Internal Audit Work ________________________________
of Public Sector Undertakings
(Please enclosed appointment letters)
(07) No. of Partners (CAs) & No. of paid assistants ________________________________
{qualified(CA/CMA)/semi qualified(CA/CMA-
Inter)} (Please enclosed list & their qualification)
(08) Staff including partner(s) at Local Office ________________________________
(List of staff & partners working in local Mumbai
Office along with their Phone no.)
(09) Experience in handling Tax related matters
Including filing of TDS in respect of PSUs (in yrs.) _____________________________
(Enclose copies of appointment letters)
(10) Name of paid CAs ________________________________
(11) Number of other paid staffs ________________________________
Date:
Place:
(Signature of the Authorized Signatory with seal)
ANNEXURE V
FINANCIAL BID
1. Name of Firm
2. PAN No.
3. Goods & Service Tax Registration No.
Sr. Particulars Maximum Fees Amount quoted
No.
1. For audit and verification of Rs. 10000/- per
imprest and project loan month
2. For audit and verification of
HUDCO Niwas vouchers
(a) Less than 100 vouchers Rs.5000/- per
quarter
(b) 100 - 300 vouchers Rs.7000/- per
quarter
(c) 300 - 500 vouchers Rs.8000/- per
quarter
(d) 500 - 1000 vouchers Rs.11000/- per
quarter
(e) More than 1000 vouchers Rs.13000/- per
quarter
3. For audit and verification of
PDS vouchers
Less than 500 vouchers Rs.3500/- per
quarter
500 - 1000 vouchers Rs.6500/- per
quarter
1000 - 2000 vouchers Rs.13000/- per
quarter
More than 2000 vouchers Rs.17000/- per
quarter
4. KYC and PML verification as Rs. 300/- per
per KYC and PML guidelines, month
pertaining to Projects, PDS
and HUDCO Niwas
5. For audit and verification of Rs. 100/- per
sanction of project loans case with a
ceiling of 10000/-
per annum.
6. For audit and verification of Rs. 100/- per
releases of project loans case with a
ceiling of 10000/-
per annum.
7. For audit and verification of Rs. 75/- per case
HUDCO Niwas sanction and with a ceiling of
release 10000/- per
annum.
8. For audit and verification of Rs. 50/- per case
PDS cases with a ceiling of
10000/- per
annum.
9. Incidental Matters and other Rs. 300/- per
Miscellaneous work month.
Date :
Place : (Signature of the Authorized Signatory with seal)
ANNEXURE I
SCOPE OF WORK
Projects :
Sanctions
Verifying the receipt of duly filled-in loan applications in prescribed formalong with
relevant documents and applicable documentation charges.
Verify that the state and individual agency exposure is within the prescribed limit by
NHB and HUDCO.
Verify whether the sanction of schemes has been accorded in line with the
parameters of financing pattern issued from time to time.
Releases
Verify compliance with all the pre-disbursement sanction conditions and required
running conditions and monitoring the achievement of required level of expenditure
for subsequent releases.
Verify receipt of all the charges as specified in the Loan Agreement.
Monitor the timely receipt of Completion certificate upon project completion
Verify whether default cases are being reviewed and followed up regularly.
DMRC & Pre-Audit
Verify whether DMRC meetings are being held regularly and minutes are forwarded
to RO as per the guidelines.
Preliminary Audit of accounts of the agency(s) before release of security/ initiating
legal action, shall be carried out. Compilation and forwarding of all copies of
documents relevant for pre-audit for final clearance by Internal Audit Wing (Head
Office).
Finance, Accounts, Administration, Real Estate and HR
Verifying monthly trial balance accompanied by audit report backed by verification of
books of accounts and verification of all the vouchers
Verification of reconciliation of bank accounts with reference to closing balances as
per ledgers.
Verification of actual expenses vis-à-vis budget
Verification that present Salary of employees has been calculated correctly in
accordance with 3rdPay Revision Orders.
Verification that award of AMC to the contractors and empanelment/engagement of
service providers have been done as per procedures/guidelines/O.O issued from
time to time and all terms of contract are duly complied.
Verify that Estate Maintenance of office building, residential houses, guest houses
etc. is being done as per procedures. Proper documents have been kept in lockers
and insurance and taxes etc. have been paid timely.
Verify whether Flats have been allotted as per the eligibility. Also, whether HRA for
all the occupied flats is being recovered.
Verify that debiting and crediting of leaves is in line with Leave rules and service
records are updated timely. Also, salary is being regulated after accounting for
leaves availed.
Checking capitalization made and its booking in appropriate account head.
HUDCO Niwas
Verification that loan application and its acceptance is in prescribed format
anddocuments submitted are as per guidelines
Verification of appraisal to check the credit worthiness, repaying capacity (individual
and rental income), credit appraisal ratios and fixing of repayment period
Verification of title documents and creation of security as per guidelines.
Verification of release of loan after compliance of sanction conditions, site inspection,
individual contribution and requisite financial and physical progress
Monitor that requisite number of post-dated cheques have been received as per
guideline and verification of conversion of PDCs with National Automated Clearing
house(NACH).
Verify that default cases are being reviewed and Default Recovery minutes are sent
to HO from time to time. Whether action under section 138 of Negotiable Instrument
Act, filing of civil and criminal cases including SARFAESI Act is being taken.
Identification of default/NPA cases.
Verify that penal interest, compound interestare calculated as per
practice/procedure/norm and NPA provisioning is being made as per prudential
norms
Verify that all insurances have been taken as per guidelines (Fire & Accident)
Verification of books of accounts and vouchers with regard to appropriateness and
correctness of heads of accounts
Verification of bank reconciliation statement and monthly cumulative report for
quarterly, half-yearly, nine-monthly and annual statements generated through
Softwarepackage.
Verify whether necessary provisions in HUDCO Niwas loans has been made as per
NHB norms
Verify Compliance of provisions of GST Act / Income Tax Act, 1961
Verification that eligible CLSS subsidy claims/releases to banks byHUDCO (as CNA)
and CLSS subsidy received from NHB by HUDCO (as PLI) is as per guidelines.
Verify the Rectification JV/Differential Entry passed by the RO in the HUDCONiwas
Accounting System (Software package), if any.
Verify TDS & GST of HUDCO Niwas / PMAY CLSS.
Certify all reports required by H.O. & NHB.
Public Deposit Scheme
Verification that application forms for deposits and its acceptance till 30th June, 2019
are in the prescribed format and documents submitted therein are as per the
guidelines.
Verifying that the renewal of deposits received under HUDCO Public Deposit
Scheme till 30th June, 2019are as per guidelines of HUDCO Public Deposit Scheme
.i.e. the renewal of deposit with retrospective effect is permitted provided fresh
application in prescribed form is submitted within a period of one month after the
date of maturity of the deposit.
Verify that application forms are duly stamped with respect to applications being
received directly or through broker. (till 30th June, 2019)
Verify whether maturity interest/pre-mature interest on FDR/Loan against FDR has
been calculated correctly
Verify that the TDS has been deducted correctly as per the applicable sections and
rates under the IT Act,1961 and in case of non-deduction/deduction at lower rates,
supporting documents have been received.
Verifying that reminder letters intimating the details of maturity of the deposit has
been issued to all the depositors at least 14 days before the date of maturity of
deposit
Verify that Tax deducted at source against interest on deposits and brokerage paid is
deposited with Income Tax department by 7th of succeeding month.
Verification of filing quarterly TDS Returns and uploading of the same with the Tax
Authorities for every quarter by 15th of the month succeeding the quarter
incorporating the details of total taxable interest viz details of Form 15-H /15-G and
exemption certificates submitted by the depositors.
Verify that the details of Assessment Year, Rate of TDS are correctly filled up in
challans deposited with I.T. department.
Verifying that the notices received from Income Tax Authorities are promptly
attended to.
Verification with respect to filing of correction statement/Rectification of TDS Returns
already filed, if required.
Verify that the PDS Deposit Holder Register is maintained as per the NHB
guidelines.
Verifying the PDS accounting heads such as interest on PDS, Interest Approved but
Not Due(IABN), brokerage payable/brokerage paid, unclaimed PDS/unclaimed
interest on PDS, TDS payable, PDS receipt control interest under various schemes,
LA PDS/interest on LA PDS/interest accrued on LA PDS, prior period brokerage,
prior period interest expenses, any other deferred expenses, stale cheques, any
other accounting head added to the PDS accounting during the financial year.
Verifying bank reconciliation on monthly basis.
Verifying outstanding under the PDS with confirmation to opening
balances, deposits during the year, redemption made during the year and closing
balance outstanding Scheme-wise, Period-wise and Maturity-wise.
Verifying that complaints of depositors under HUDCO PDS are maintained in the
prescribed format and report sent to PDS dept. HO on Quarterly basis.
Verifying the Cash Flow Statement on monthly / quarterly basis.
Verifying the interest and brokerage provision at the end of every quarter.
Verification with respect to timely transfer of all the unclaimed deposits and interest
amount which are due for transfer to IEPF account in compliance of section 125 of
Companies Act 2013.
Verifying that HUDCO PDS Control accounts i.e. GL 322080 and GL 322081 are
made NIL at the end of every quarter.
Assuring that all other NHB regulatory guidelines are being duly complied.
Income Tax Related
Verify deduction of tax at source from
1. Salary in reference to Savings & Investments, Income from House Properties
submitted by employees
2. Medical Bill payments to non-exempted hospitals
3. All other payments
are in compliance with the provisions and under applicable sections under Income
Tax Act,1961.
Verify timely deposit of TDS amount to the appropriate authorities.
Verification the correctness of the TDS returns before these are filed with the
appropriate authorities and timely filing of the above with Tax Authorities.
Verify from Income Tax site that the tax payment has been properly accounted for
with Income Tax Authorities and the proper credit for TDS on income is available to
HUDCO;
To verify the segregation of all the expenses heads in regard to deductibility / non-
deductibility of TDS.
Verification with respect to Filing of correction statement/Rectification of TDS
Returns already filed, if required
Verify that all the provisions of Income Tax Act,1961, amendments therein and
related circulars issued by Head Office from time to time are complied with.
Verification of Form 3CD as per the format of CBDT at the year-end along with all
the annexures required at the time of compilation of Tax Audit Report at Head Office.
Goods & Service Tax (GST) Related
Verify the Statements / Ledgers in regard to GST paid by RO on input services, GST
collected on output services, GST payable under reverse charge, adjustment of GST
on input service as per eligibility and GST payable on output services. Also verify its
booking under appropriate GL A/c.
Verify that the invoices have been raised as per applicable provision within the
prescribed time under GST Act in respect of output services / services covered
under RCM and accounted for in Books of Accounts properly.
Verify that Regional Offices are making monthly payments of GST timely to the
appropriate authorities after taking input tax credit as per applicable provision of GST
Act/ Rules.
Verifying timely filing of monthly GST returns as applicable with the concerned
authorities and verification of reconciliation of GST return with the financial data
available in GSTN.
Verify that appropriate and timely action is taken by Regional office in case of show-
cause notice / order if any received from the service tax / GST authorities.
Verifying compliance of various notifications/circulars / instructions issued by various
authorities/ Head Office in regard to GST from time to time.
Review/verify the Tax consultant report/ GST Audit Reports and comments, if any.
IND-AS Related
Verification that all the provisions of Indian Accounting Standards (IND-AS)
applicable to HUDCOalong with any instruction issued by HO from time to time in
this regard are timely complied with and furnished in prescribed format.
Verification of passing of necessary IND AS entries by RO in respective GL heads.
KYC & PML Certification
Verification of compliance of KYC and PML guidelines issued by NHB and HUDCO
from time to time in respect of applications for Project Loans including loans to
Government Agencies received at RO, HUDCO Niwas, PDS and furnishing the
certificate as prescribed by Principal officer / ED (IA), on monthly basis (as per IOM
dated 30.01.2018 issued by IA-wing).
Incidental matters
Verify that the receipt of Utilization Certificates under CSR is being regularly
monitored by the RO.
Verify that all the mortgaged properties under Niwas, Project Loans and Advances to
staff have been registered under CERSAI and with appropriate authority.
Compliance Status of outstanding observations of previous audit reports.
Any other issue raised by Statutory Auditors during the course of audit.
ANNEXURE II
Scope of Work /Checklist for the Internal Auditors to be appointed at ROs with
comments on observations and deviations, if any
S.No. Audit as per scope of work Auditor's Comments
Observation/Deviation
with justification
PROJECTS
1. Verify whether Loan application has been received in
prescribed format as per guidelines along with relevant
documents and documentation charges.
2. Whether the proposed scheme is eligible for HUDCO
funding as per HUDCO mandate.
3. Whether the agency is eligible to raise loan from HUDCO as
per its MoA/Constitution.
4. Verify whether the scheme is being processed within the
sanctioning powers of the Competent Authority.
5. Verify whether sanction of schemes has been accorded in
line with the financing pattern issued from time to time.
6. Verify whether the state and individual agency exposure is
within the limit prescribed by NHB and HUDCO.
7. Verify compliance with all the pre-disbursement sanction
conditions and required running conditions and monitoring
the achievement of required level of expenditure for second
and subsequent releases.
8. Verify receipt of all the charges as specified in the Loan
Agreement
9. Verify that loan releases to the borrowing agency Date of
release amount and rate of interest as per applicable
Financing Pattern
10. Verify that Loan Releases in Consortium funded project -
date of release, amount and Rate of interest as per terms of
Common Loan agreement (CLA)/Inter Credit Arrangement
(ICA)/consortium partners for verification of interest charged
by consortium partners/ Hudco guidelines.
11. Verify that the receipt/ recovery of application fee/ front-end-
fee/ Research and Development (R&D) , as applicable in
reference to the loan agreement and financing pattern and
checking of accounting entries with respect to the relevant
voucher passed
12. Verify the receipt of applicable GST on the receipts indicated
at (11) above.
13. Recovery of deferment charges and prepayment charges,
Commitment charges, conversion charges, as per
guidelines/norms, as and when applicable and applicable
GST thereon.
14. Repayments with respect to amount received, actual date of
receipt/credit of payments received from agency based on
the bank statement.
15. Verify the project property under project loan is registered
with appropriate authority.
16. Verify that valuation report of mortgaged property have been
obtained as and when required and in terms of guidelines
from empanelled valuers and duly accepted by competent
authority.
Verify that project property mortgaged to HUDCO is insured
17. v
as per LMC/Guidelines.
18. Accounting of Corporate Debt restructuring and waiver
implemented during the year.
19. Accounting of Restructuring /Deferment/Re-schedulement
and waiver implemented during the year.
20. Implementation of the revised interest rate on account of
revision in financing pattern and automatic reset falling due
on completion of specified period as per financing pattern.
21. Recovery of charges/fees as per terms of CLA/ICA or any
other agreement in case of consortium funded projects and
checking of accounting entries.
22. To review the status of receipt of Balance Confirmation
certificates from the borrowing Agencies at the quarter end,
which are not in litigation and also review the reconciliations
or the reasons for the difference in the Balance Confirmation
certificates carried out by the Department.
23. To check the receipt of Utilization Certificates from
Borrowing Agencies in respect of Loan released, Grant
released by Hudco.
24. 100% verification of calculation of interest & penal
levies in respect of all the agencies of RO.
25. 100% verification of appropriations of payment received
from agency in respect of all the agencies of RO.
26. To verify the OTS calculation before intimation to the
Head Office.
27. To check comprehensive implementation of
deferment/amendment/waiver in the loan card/ new loan
card/ loan Ledger with respect to OTS/ DRP/ Decree of
DRT/DRAT/
CDR/Restructuring/Deferment/reschedulement/Curtailm
ent of loan based on the amendment letter issued by
the Regional Office and its accounting entries.
28. To check loan recall notice implemented in the loan card
based on the loan recall notice issued by regional office
during the period and its accounting entries.
29. Verify the classification of assets/loan (Housing and Non
Housing) in respect of Project loans sanctioned during
financial year.
30. Monitor the timely receipt of Progress Reports, during the
course of project implementation and Completion certificate
upon project completion
31. Identification of default/NPA cases.
32. Verify whether default cases are being reviewed a0nd
followed up regularly.
33. Review the progress on the declared/identified fraud
cases.
34. Verify whether DMRC meetings are held regularly and
minutes are forwarded by RO to Hqrs. as per guidelines.
35. Preliminary Audit of accounts of the agency(s) before
release of security/ initiating legal action, shall be carried
out. Compilation and forwarding of all copies of documents
relevant for pre-audit for final clearance by Internal Audit
Wing (Head Office).
FINANCE
1. Verification of salary vouchers with regard to
appropriateness of heads of accounts along with its
calculation and deductions.
2 Verify whether employees tax calculation has been done as
per applicable provisions of IT Act and all exemptions
granted are under relevant sections of IT Act backed with
duly supported relevant documents for claiming such
exemptions
3. Verify that the present pay has been calculated correctly in
accordance with the 3rd pay revision order issued.
4. Verify that TA/DA is being granted as per HUDCO norms
and rules
5. Verification of staff loan advances and all other advances
and whether any advance is overdue and not settled within
the scheduled time
6. Verification that all income heads and expense heads have
been checked with regard to deductible/non-deductible TDS
and timely remittances and there are no arrears/late
deposits reported.
7. Physical verification of assets with the books is reconciled at
the end of the financial year
8. Review of status with respect to settlement of long
pending entries i.e. advances, provisions, etc.
9. Checking all capitalisation made and its booking in
appropriate account head.
ACCOUNTS
1. Verification of all bank and journal vouchers.
2. Verification of monthly trial balance accompanied by audit
report
3. Verification of maintenance of bank book, journal books and
other subsidiary records
4. Verification of actual expenses Vs. budget allocation
5. Verification of opening and closure of bank accounts as per
approval of competent authority.
6. Verification of reconciliation of bank accounts with reference
to closing balance of bank accounts appearing in monthly
trial balance
7. Verification of head office control account with reference to
remittances received from HO and disbursement made at
Regional Office
8. Verification of closing balances as per ledger appearing in
the trial balance at the close of the financial year (opening
balance + cumulative of net of monthly balances)
9. Verify whether requirement of fund has been assessed
before requisitioning from the head office and minimum
balances are maintained as per the direction of the head
office
ADMINSITRATION & REAL ESTATE
1. HUDCO's procurement guidelines are being complied for
procurement of items and services
2. All the purchases are made as per the delegation of power
and within specified budgetary limits
3. Award of Annual Maintenance Contracts and
empanelment/engagement of service providers and
payments therein are being regulated as per the HUDCO
guidelines and Purchase Manual and in compliance with the
tender document. The contractor for AMC has been
selected in terms of the eligibility criteria and financial bid
embedded in the tender document. The tender document
has been conceived as per the Government of India
regulations, HUDCO guidelines and other regulatory
authorities.
4. All the break-up of payments has been made as per relevant
head in the contract document and verify with the supporting
documents that the contractor has made statutory payments
like PF, ESI etc. within schedule time to the respective
authorities and the net payment released to his staff is also
be verified. Also, other terms of contracts have been
complied.
5. Flats have been allotted as per the eligibility and whether
HRA for all occupied flats is being recovered.
6. Maintenance and Insurance of all office assets. Proper
mechanism of insurance coverage of office asset is in place.
Insurance policies are renewed and taxes are paid timely.
7. Disposal of obsolete assets and weeding out of old records
as per the guidelines issued from time to time. There is a
system to identify unused/damaged assets with proper
approval and weeding out of old records as per guidelines
Verify whether minutes of Asset Disposal Committee is
available
8. Digitization of records and backup of data to be maintained
as per guidelines.
9. In case the supplier is a MSME agency, the certificate
issued by the competent authority for being MSME
needs to be verified and checked.
10. Verify Unique ID's is allotted to all the fixed assets and
Coding List is maintained for recording Unique IDs.
Also, such list and FAR should be updated on real time
basi
HUMAN RESOURCE
1. Verify that the loan advances granted to the employees
are as per eligibility and secured by mortgage of
property/hypothecation of vehicles and also the same
has valid insurance.
2. Whether original documents are kept in safe custody.
3. Proper record of credit/debit of leaves in line with leave rules
and proper updated maintenance of service book.
HUDCO NIWAS
1. Verification of duly filled in loan application and acceptance
is in prescribed format and documents submitted are as per
guidelines
2. Verification of appraisal to be done to check credit
worthiness including CIBIL, repaying capacity (individual and
rental income), credit appraisal ratios and fixing of
repayment period
3. Verification of title documents and creation & registration of
security as per guidelines.
4. Verification of ROI in the individual loan ledger.
5. Verification of release of loan after compliance of sanction
conditions, site inspection, individual contribution and
requisite financial and physical progress.
6. Verification that requisite number of post-dated cheques
have been received as per guideline and verification of
conversion of PDCs with NACH
7. Verification that default cases are being reviewed and
Default recovery minutes are sent to HO from time to time.
Whether action under 138 of Negotiable Instrument Act,
filing of civil and criminal cases including SARFAESI Act is
being taken.
8. Identification of default/NPA cases.
9. Verification that penal interest, compound interest calculated
as per practice/procedure/norm
10. NPA provisioning and interest reversal as per NHB
norms in respect of all default cases.
11. Verification that all insurances have been taken as per
guidelines
12. Verification of books of accounts and vouchers in regard to
appropriateness and correctness of heads of accounts
13. Verification of bank reconciliation and monthly cumulative
report for quarterly, half-yearly, nine-monthly and annual
statement generated through Software package
14. Verify whether necessary provisions in HUDCO Niwas loan
has been made as per NHB norms
15. Verify whether correct entries have been passed for interest
due and interest de-recognition.
16. Verifying Compliance of requirements as per GST Act /
Income Tax Act.
17. Verification that eligible CLSS subsidy claims/releases to
banks by HUDCO (as CAN) and CLSS subsidy received
from NHB by HUDCO (as PLI) is as per guidelines
18. Verify the Rectification JV/Differential Entry passed by the
RO in the Hudco Niwas Accounting System (Software
package), if any
19. Review the progress on the declared/identified fraud
cases.
PUBLIC DEPOSIT SCHEME
1. Verification that application forms for deposits and its
acceptance till 30th June, 2019 are in prescribed format
and documents submitted are as per guidelines
2. Verifying that the renewal of deposits received under
Hudco Public Deposit Scheme till 30th June, 2019 are as
per guidelines of HUDCO Public Deposit Scheme .i.e.
the renewal of deposit with retrospective effect is
permitted provided fresh application in prescribed form
is submitted within a period of one month after the date
of maturity of the deposit.
3. Application form are duly stamped with respect to
application being received direct or through broker (till
30th June, 2019)
4. Verify whether maturity interest/pre-mature interest on
FDR/Loan against FDR has been calculated correctly.
5. Verify that the TDS has been deducted correctly as per the
applicable sections and rates under the IT Act,1961 and in
case of non-deduction/deduction at lower rates, supporting
documents have been submitted.
6. Verifying that reminder letters intimating the details of
maturity of the deposit has been issued to all the depositors
at least 14 days before the date of maturity of deposit.
7. Tax deducted at source against interest on deposits and
brokerage paid is deposited with Income Tax department by
7th of succeeding month.
8. Verification of filing quarterly TDS Returns and uploading of
the same with the Tax Authorities for every quarter by 15th
of the month succeeding the quarter incorporating the
details of total taxable interest viz details of Form 15-H /15-G
and exemption certificates submitted by the depositors.
9. The details of Assessment Yea, rate of TDS are correctly
filled up in challans deposited with I.T. department.
10. Verifying that notices received from Income Tax Authorities
are attended to promptly.
11. Verification with respect to filing of correction
statement/Rectification of TDS Returns already filed, if
required.
12. Verify that the PDS Deposit Holder Register is maintained
as per the NHB guidelines
13. Verifying the PDS accounting heads such as interest on
PDS, Interest Accrued but Not Due (IABN), brokerage
payable/brokerage paid, unclaimed PDS/unclaimed interest
on PDS, TDS payable, PDS receipt control interest under
various schemes, LA PDS/interest on LA PDS/interest
accrued on LA PDS, prior period brokerage, prior period
interest expenses, any other deferred expenses, stale
cheques, any other accounting head added to the PDS
accounting during the financial year.
14. Verifying bank reconciliation on monthly basis.
15. Verifying outstanding under the PDS with confirmation to
opening balances, deposits during the year, redemption
made during the year and closing balance outstanding
Scheme-wise, Period-wise and Maturity-wise.
16. Verifying that complaints of depositors under HUDCO PDS
are maintained in the prescribed format and report sent to
PDS dept HO on Quarterly basis.
17. Verifying the Cash Flow Statement on quarterly basis.
18. Verifying the interest and brokerage provision at the end of
every quarter.
19. Verification with respect to timely transfer of all the
unclaimed deposits and interest amount which are due for
transfer to IEPF account in compliance of section 125 of
Companies Act 2013.
20. Verifying that HUDCO PDS Control accounts i.e. GL 322080
and GL 322081 are made NIL at the end of every quarter.
21. All the other NHB regulatory guidelines have been duly
complied.
INCOME TAX
1. Verify deduction of tax at source from salary in reference to
Savings & Investments, Income from House Properties
submitted by employees, Medical Bill payments and all other
payments in compliance of the provisions of the Income Tax
Act. Verify timely payment of TDS amount to appropriate
authorities. Verification the correctness of the TDS returns
before these are filed with the appropriate authorities and
timely filing of the same. Verify from Income Tax site that the
tax payment has been properly accounted for with Income
Tax authorities and the proper credit for TDS on income is
available to HUDCO
2. To verify the segregation of all the expenses heads in regard
to deductibility / non-deductibility of TDS.
3. Verification with respect to Filing of correction statement/
Rectification of TDS Returns already filed, if required
4. Verification that all the provisions of Income Tax Act,
amendments therein and related circulars issued by Head
Office are complied with.
5. Verification of Form 3CD as per format of CBDT at the year-
end along with all the annexure required at the time of
compilation of Tax Audit Report at Head Office.
GOODS & SERVICE TAX (GST)
1. Verify the Statement / Ledgers in regard to GST paid by RO
on input services and goods, GST collected on output
services, GST payable under reverse charge, adjustment of
GST on input service as per eligibility and GST payable on
output services. Also Verify its booking under appropriate
GL A/c.
2. Verify that the invoices have been raised as per applicable
provision under GST in respect of output services / services
covered under RCM and accounted for in books of Accounts
properly.
3. Verify that Regional Offices are making monthly payments of
GST timely to appropriate authorities after taking input tax
credit as per applicable provision of GST Act/Rules.
4. Verifying timely filing of monthly GST returns as applicable
with the concerned authorities and verification of
reconciliation of GST return with the financial data available
in GSTN.
5. Verify that appropriate and timely action is taken by
Regional office in case of show-cause notice / order if any
received from the service tax / GST authorities.
6. Verifying compliance of various notifications/circulars /
instructions issued by various authorities/ Head Office in
regard to GST from time to time.
7. Review/Verify the Tax consultant report and GST Audit
Reports and comments, if any.
IND-AS RELATED
1. Verification of provisions of Indian Accounting
Standards(IND-AS) applicable to HUDCO as per the
instructions issued by Head Office from time to time are
complied with and furnishedin the prescribed format
comprising of the following -
(a) Brokerage paid against Public Deposit
during the quarter.
(b) Security deposit and deposit for services
outstanding as on date.
(c) Lease rental paid against the leasehold
properties.
(d) FEF received against the project loans
during the quarter.
(e) Administrative fees received against the
HUDCO Niwas loans during the quarter.
2. Verification of passing of necessary IND AS entries by
RO in respective GL heads.
KYC & PML Certification in respect of Project Loans
1. Verification of compliance of KYC and PML guidelines
issued by NHB and HUDCO from time to time in respect of
applications for Project Loans including loans to
Government Agencies, PDS and HUDCO Niwas and
furnishing the certificate as prescribed by Principal officer/
ED (IA), on monthly basis (as per IOM dated 30.01.2018
and other instruction issued from time to time by IA-wing).
Incidental Matters
1. Verify that the receipt of Utilization Certificate under CSR is
being regularly monitored by RO.
2. Verify that all mortgaged properties under Niwas, Project
loans and advances to staff have been registered under
CERSAI
3. Verify that all activities relating to sanctioning of projects,
administration, HR etc. carried out in line with Delegation of
Powers.
4. Compliance Status of outstanding observations of
previous Audit Reports.
5 Any other issue raised by statutory auditors during the
course of audit.
ANNEXURE III
Eligibility criteria for the Internal Auditor
Regional Offices should start the process of appointment of chartered accountant firms
as Internal Auditors. This process should be in conformity with the HUDCO
guidelines/directions of CVC/CVO circular issued from time to time. While making
selection of CA Firm as Internal Auditor, following points (minimum technical criteria)
may be considered:
The Chartered Accountant Firm should have at least three years' experience in
undertaking Internal Audit work of Public Sector Undertakings.
CA Firm should have minimum three number of partners (CAs) and minimum
five number of paid assistants {qualified (CA/CMA)/semi qualified(CA/CMA-
inter)}.
CA firm should have local office within the region having minimum five working
staff (including one partner).
CA Firm should have at least two years' experience in handling Tax related
matters including filing of TDS in respect of Public Sector Undertakings.
The scope of work should broadly cover the points as given in Annexure I and
checklist (Annexure II) (for monthly trial balance, projects, Finance, Accounts,
Administration, Real Estate and HR, HUDCO Niwas, PDS Related, Income Tax
Related, Goods & Service Tax (GST) Related, IND-AS Related, KYC & PML
Certification and Incidental matters.
While evaluating the technical bids, CA firms' capability to perform the audit
related work should be assessed and inspection of their office may be carried
so as to establish the fact that the CA firms have local office.
It may be ensured that the quotations are invited by uploading the same at
HUDCO website and Central Public Procurement portal
(www.eprocure.govt.in).
CA Firm to give an undertaking
i) that none of the partners has any relation with any employee of HUDCO
and also none of them has any relationship within the meaning of Section
2(76) of the Companies Act, 2013 and also that none of them has any
relationship with the Statutory Auditors (M/s. Prem Gupta & Co.) and also
will ensure compliance under section 184 and 188 of the Companies Act,
2013.
ii) Certified that we have not been appointed for carrying out
certification/consultancy or such related work of the same Regional Office
which will have conflict of interest with the assignment as above as Internal
Auditors of the said Regional Office.
The selection of CA Firm is to be carried out by following two-bid system as
prescribed in the Purchase Manual i.e tenderer shall be required to submit
technical and price bid in separate sealed cover in overall sealed envelope.
RO to ensure that financial bids of those bidders should be opened who
qualified the technical criteria prescribed in the tender.
The firm may be engaged for a continuous period of 3years. However, the
appointment shall be renewed on yearly basis, based on the satisfactory
performance in the previous years with the approval of Head Office, RO may
send the recommendation for appointment of CA firm to head office for
approval along with the profile of the firm at the time of appointment.
Description of the work Amount (Rs.)
For audit and verification of imprest and project 10000/- per month
loan
For audit and verification of HUDCO Niwas
vouchers
1. Less than 100 vouchers 5000/- per quarter
2. 100 300 vouchers 7000/- per quarter
3. 300 500 vouchers 8000/- per quarter
4. 500 1000 vouchers 11000/- per quarter
5. More than 1000 vouchers 13000/- per quarter
For audit and verification of PDS vouchers
1. Less than 500 vouchers 3500/- per quarter
2. 500 1000 vouchers 6500/- per quarter
3. 1000 2000 vouchers 13000/- per quarter
4. More than 2000 vouchers 17000/- per quarter
KYC and PML verification as per KYC and 300/- per month
PML guidelines, pertaining to Projects, PDS
and HUDCO Niwas
For audit and verification of sanction of project 100/- per case with a
loans ceiling of 10000/- per
annum
For audit and verification of releases of project 100/- per case with a
loans ceiling of 10000/- per
annum
For audit and verification of HUDCO Niwas 75/- per case with a ceiling
sanction and release of 10000/- per annum
For audit and verification of PDS cases 50/- per case with a ceiling
of 10000/- per annum
Incidental Matters and other Miscellaneous Rs.300/- per month
work
GST charges will be additional
The monthly/quarterly payments shall be made @80% of the due fees and
balance 20% shall be released after audit of annual accounts by Statutory
Auditors and issuance of Tax Audit Report.
The CA Firm is expected to undertake the review for each month's
transactions in the first week of succeeding month.
Internal Audit Department, Head Office has the right to replace CA firms if it is
found that the Internal Audit is not of required standard.
The Internal Audit is to be conducted with the highest standard of
professional, ethical competence and integrity.
*****
ANNEXURE IV
Specimen format of the report to be followed
The Internal Auditor's report should contain a clear written expression of significant
observations, suggestions/recommendation based on the policies, process, controls and
transaction policies taken as a whole.
The Internal Audit is to be conducted in line with the standards and guidance notes on
internal audit issued by the Institute of Chartered Accountants of India, HUDCOs' guidelines,
prudential norms issued from time to time besides applicable guidelines issued by various
authorities and provisions of the applicable Acts. However, Chartered Accountants Firm
may suggest any more checks, as may be required.
The Auditor's report should contain the following elements ordinarily within the following
layout:
Part-I
a) Title;
b) Addressee
c) Firm registration number alongwith supporting documents
d) Coverage (Period)
e) Duration of audit
f) Composition of Audit Team**
g) Opening or introductory paragraph (including the work handle by the auditee unit)
h) Organizational structure of Auditee unit
i) Scope of audit
j) Checklist given in Annexure III to be mandatory filled-up
k) Non production of records, if any
l) Executive Summary of the audit observations
** The Audit team will consist minimum of one Chartered Accountant and one paid
assistant{qualified (CA/CMA)/semi qualified (CA/CMA- inter)}.
Part-II
a) Performance review of area(s)/business of the Auditee unit
b) Significant audit observation requires immediate action/attention
c) Audit observations (Audit Paras)
d) Recommendations
e) Annexure/exhibits to the Report
Part-III
a) Review of outstanding paras from earlier reports and its compliance status as on date
b) Concluding paragraph
Part-IV
a) The Audit report shall be submitted latest by 7 th of the ensuing month of the completed
quarter and the scanned copy of the report shall be submitted to the Internal Audit Wing.
The hard copy alongwith relevant annexures shall be submitted thereafter.
b) The Audit Report will be submitted after discussion of the all the audit observations with
the respective Regional Chief and a certificate to this effect is to be enclosed
(ANNNEXURE A).
c) The internal audit is to be conducted with the highest standard of professional ethical
competence and integrity.
d) CA firm shall not disclose to any person the confidential information relating to the
assignment or HUDCO's business or operations without prior permission of ED(IA),
Internal Audit Department , Head Office, New Delhi.
e) The pre-audit cases pertaining to private sector/consortium and one-time agency will be
sent to Internal Audit Head Office, for further due diligence.
f) In case of any dispute between HUDCO and the CA Firm regarding Internal Audit
assignment given to the CA Firm at Regional Office, the decision of the CMD, HUDCO
shall be final and binding on all the parties.
*****
|
