For Assignment of Concurrent / Internal Audit- Janaseva Sahakari Bank Ltd., Hadapsar Pune has hosted online form for Assignment of Concurrent / Internal Audit to CA Firms.
The Term and Condition for Empanelment are as follows: - 1) The firm should be either a proprietary or a partnership firm having Chartered Accountant(s) as
proprietor partner(s). 2) The firm or its proprietor/partners have not been the subject of inquiries in the past by the Institute
of Chartered Accountants of India as per the provisions of Section 21 of the Chartered Accountants Act, 1949, and no such inquiry is pending, initiated, or contemplated by the Institute as on the date of application as well as date of acceptance of assignment. 3) Where there are group of firms of Chartered Accountants having common partners, only one of the firms in the group will be eligible for assignment of Audit. 4) The Firm would normally be allotted Audit of 7 or 8 branches of the Bank. 5) Besides Chartered Accountants, the firm should have other qualified and experienced staff, infrastructure and office within an approachable distance from the location of the auditee branch / office to undertake Concurrent Audit. 6) The firm which conducts Statutory Audit of Janaseva Sahakari Bank Ltd., Hadapsar Pune shall not be considered for appointment as Concurrent / Internal Auditor by the Bank during that year. 7) The firm which has a partner / proprietor who is also a partner / proprietor of the firm entrusted with the Statutory Audit of Janaseva Sahakari Bank Ltd., Hadapsar Pune shall not be considered for appointment as Concurrent / Internal Auditors in Janaseva Sahakari Bank Ltd., Hadapsar Pune. In other words, associate concerns of the firm carrying out Statutory Audit of Janaseva Sahakari Bank Ltd., Hadapsar Pune shall not to be considered for appointment as Concurrent Auditors as in (6) above.
8) If any of the Directors of Janaseva Sahakari Bank Ltd., Hadapsar Pune is a partner / proprietor in a firm, such firm shall not be considered for appointment as Concurrent / Internal Auditor. 9) The tenure of Auditor shall be for 06 months. The tenure may be extended on the basis of performance at the discretion of the Management. However, in case the performance of the Auditor falls short of the expectation of the Management or the Audit Committee of the Board, the Management may replace the Concurrent Auditor at any time. 10) The Concurrent / Internal Auditor shall not be entitled for any additional benefits or perquisites. 11) The Concurrent / Internal Auditor should visit on regular basis by audit assistant & Partner/Proprietor at least for 4 days in a month for branches respectively. 12) The eligibility criteria will be as under: -.
a. Professional Standing: More than 7 years. b. Minimum No. of Partners: 5 c. FCA/s: 2, DISA or CISA: 2 d. Minimum 5 Cooperative Banks as Concurrent Auditors. e. Audit firm has to be good staff strength.
Page 1 of 2 (Experience of the Firm only as Concurrent Auditors is to be taken and not that of individual partner shall be counted.)
13) The assignment of audit given by us should not be given to anybody on subcontract basis. 14) Mere submission of application for Audit & fulfilling the criteria thereof does not, in any way,
constitute guarantee for assigning any type of audit of the Bank. 15) Allotment will be made for the listed branches in the area of your choice, prioritizing and selecting
from the online applications. No correspondence shall be entertained in the matter. The Bank reserves the right to add / delete name of branch(s) from the list. 16) The online applications only shall be considered. All the applications submitted and received in physical form prior to this process of inviting online applications stand cancelled. 17) If firm or partners are availing any credit facility(s) from any branch of Janaseva Sahakari Bank Ltd., Hadapsar Pune or have guaranteed any credit facility, please furnish the following information in a letter addressed to CEO, and dispatch by Regd. Post. (Name of the partner, Name of Branch, Nature of dealings/Facilities, Banking since with A/c No.) 18) The Audit fee payable shall be evaluated on the business figures of the branches as on 31.03.2021. GST, if applicable, shall be paid separately provided the firm furnishes the GST registration number. TDS shall be deducted as per rules.
Important: 1) If we do not receive complete set of documents in a single lot as mentioned in assignment letter
within 10 days of receipt of the mail, assignment will stand cancelled automatically without giving any reason thereof and no correspondence shall be entertained on this issue. 2) If above terms and conditions are acceptable to you than only file your application “On-line”. Please don’t send hard copy of the On-line application to our office but save on your system, so that it can be retrieved, if required. 3) Please furnish address for communication only in the application. 4) Online Applications can be submitted up to 18/11/2021 only. 5) Bank reserves right to change / delete / add any term and condition at any stage regarding assignment of Concurrent Audit.
Page 2 of 2 (to be typed on the firm’s letterhead and submitted to the Chief Executive Officer.)
To, The Chief Executive Officer, Janaseva Sahakari Bank Ltd., Hadapsar, Pune., Plot No 14, Hadapsar Industrial Estate, Hadapsar, Pune – 411013.
Dear sir, Sub: Application for empanelment for concurrent Audit for FY 2021-22 We are submitting the application for empanelment of our firm for Concurrent Audit in your Bank for Head Office and branches. We enclose herewith our firm's profile for your perusal.
Yours faithfully, For Chartered Accountants
Name of Partner / Proprietor
Encl. – 1. Profile of the Firm for Empanelment for Concurrent Audit (as per enclosed format) 2. Self-Certified copies of the CA certificates of the Partners. 3. Self-certified copies of the CISA / DISA certificates of partners if applicable 4. Copy of the registration certificate of the Firm with ICAI. Scope of Concurrent / Internal Audit for Branches
➢ Objective of Concurrent / Internal Audit 1. To ensure compliance of laid down systems and procedures scrupulously. 2. To ascertain whether sanction for advances and expenditures is taken from competent authority. 3. To examine books of accounts, records and registers to ensure that they are maintained in accordance with the prescribed systems. 4. To ensure adequate measures are being taken in advance to prevent future frauds, etc., to avoid difficulties, which may arise. 5. To check cash, securities, etc. to ensure that they are in due order and in agreement with books. 6. To detect and arrest any leakage of income, if any. Evaluating the quality of customer services provided and giving useful suggestions. 7. To assess overall performance of the branch while assessing productivity and profitability and to offer useful comments on the basis of audit conducted. Restriction of matter discussed on the spot with the help of concerned official.
8. To report any inefficiency in any operational level. 9. To report any irregularity in working which may result in financial or other loss to branch. 10. To reporting to appropriate levels of management for appropriate actions for remedial measures. 11. To scrutinize the completeness of documents submitted for availing advances and other facilities and physical checking of stocks and other assets at relevant places. 12. To follow up with authorities to ensure timely rectification of irregularities reported which were not rectified on the spot. Verify prompt timely and regular submission of the periodical and statutory returns. 13. To certify quarterly NPA Statement with detail list, Balance-Sheet, Profit & Loss A/c, MOC, Segment wise report etc.
➢ CASH 1. Daily cash transactions with particular reference to any abnormal receipts & payments e.g. Deposit or withdrawal of Rs.50,000/- & above in a day or by way of splitting into various amount, pay orders made in cash. 2. To Adhere with provisions of I.T Act in relation to cash transactions. 3. Proper accounting of inward & outward cash remittances 4. Administration of RBI Clean Note Policy. 5. Reporting of counterfeit currency 6. Review of cash transactions of Rs.5 Lakh & above per month in a single account. 7. Expenses incurred by cash payment involving sizeable amount. 8. ATM cash verification.
Page 1 of 4 9. At least once in a month surprise physical verification of ATM cash. 10. Custody of ATM cash and keys 11. Preservation of used ATM roles (JP log) taken from ATM machines. 12. Audit of daily statement prepared by branch officials at the time of loading of cash/ Daily ATM
Cash loading Register 13. Settlement of old ATM cash differences. To check correspondence by branch in this respect. 14. CTR, STR & CCR report
➢ DEPOSITS 1. Adherence to KYC/AML guidelines in opening of fresh accounts and monitoring of transactions in such accounts. 2. Large term deposits received and repaid including checking of repayment of term deposit in cash beyond permissible limit. 3. Accounts opened and closed within a short span of time i.e., accounts with quick mortality. 4. Activation and operations in inoperative accounts. 5. Value dated transactions. 6. Settlement of claims of deceased customers and payment of TDRs against lost receipts and obtention of indemnities, etc. To check revival of dormant accounts and accounts with minimum activities. 7. Examination of multiple credits to single accounts.
• Loans & Advances 1. Report Bills/cheques purchased, if in the nature of accommodation bills. 2. Proper follow-up of overdue bills purchased/discounted/negotiated. 3. Fresh loans and advances (including staff advances) have been sanctioned properly and in
accordance with delegated authority. 4. Reporting of instances of exceeding delegated powers to controlling/head office by the branch
and have been confirmed or ratified by the competent authority. 5. Securities and documents have been received as applicable to particular loan. 6. Securities have been properly charged/ registered and valued by competent person. Whether the
same has been entered in the bank’s system. 7. All conditions of sanction have been complied with. 8. Master data relating to limit, rate of interest, EMI, moratorium period details have been correctly
entered and updated/modified in the system. 9. Value dated entries passed in advances accounts.
Page 2 of 4 10. Post disbursement supervision and follow-up is proper, such as timely receipt of stock and book debt statements, QIS data, analysis of financial data submitted by borrower, verification of securities by third parties, renewal of limits, insurance, etc.
11. Whether there is any misutilization of the loans and whether there are instances indicative of diversion of funds.
12. Compliance of prudential norms on income recognition, asset classification and provisioning pertaining to advances.
13. whether monthly updating of drawing power in the computer system on the basis of stock statements/book debt statement/ other financial data received from the borrowers.
14. Recovery in compromise cases is in accordance with the terms and conditions of the compromise agreement.
15. To check review and renewal of loans. 16. Verification of Share Capital 17. Minimum 2 Monthly visits mandatory to borrower’s place.
• Insurance 1. Insurance policies for main as well as collateral securities are on record. 2. Insurance policies for the securities hypothecated / mortgaged are in force and adequate. 3. In Transit insurance wherever applicable. 4. All locations where the securities are located are covered in the policies. 5. Bank’s hypothecation clause is incorporated in the Insurance policies. 6. Proper follow up by the branch has to be ensured for the renewal of the Insurance policies and
in the cases of under insurance. 7. In case of taking over the account from the other Bank / financial institution confirm that the
policy is transferred in the name of the bank. 8. Earthquake and flood risk are covered in the insurance policy wherever necessary.
• LC/BG 1. LC/BG issued/amended as per the approved format/model guarantee prescribed and standard
limitation clause incorporated. Whether counter indemnity obtained as prescribed. 2. Any deviation from the terms of sanction in regard to margin, security, purpose, period,
beneficiary, collection of charges, commission/fee, etc. 3. Whether payment is made to the debit of party's account on due date without creating
overdraft/debiting suspense, in case of deferred payment guarantee
Page 3 of 4 ➢ HOUSE KEEPING
• House Keeping. 1. Exceptional transaction reports are generated and verified by branch staff as prescribed. 2. Review of all balance sheet heads and outstanding entries in accounts, e.g., suspense, sundry and inter-bank accounts. Review of follow up of entries pending for reversal. 3. Scrutiny of daily vouchers with more emphasis on high value transaction including high value expenses and debit entries in Suspense account. 4. Debits in accounts where signatures are pending for scanning. 5. Whether records related to KYC/vouchers and other critical areas are sent to specific places like archival center, record room as per stipulated periodicity. 6. Adherence to KYC/AML guidelines in opening fresh account and subsequent modifications of records and monitoring of transaction. 7. To ensure proper upkeep of ATM machine, TV, Network, computers and other peripherals and dongles etc. 8. Verification of status of premises and other infrastructure.
• Customer Service 1. Customer complaints / grievance and reporting mechanism 2. Suggestion box utility 3. Nodal officer / ombudision information 4. Observation of RBI guidelines on customer issues. 5. Delivery channel / Cyber security / RTGS / NEFT issues raised by customer.
• Verification of Debit Cards 1. Application for the issue of Debit Card has been properly examined and record of issue of the same has been maintained. 2. Whether overdraft/debits arising out of the use of Debit Cards are promptly recovered and informed to higher authorities. 3. Whether undelivered Debit Cards are properly kept as security items and followed up with Debit Card department for further instructions. 4. Physical verification of ATM cards, passwords and PINS, control over issue & delivery, safe keeping and custody at all the locations. Report loss of any such items.
P.S – These are illustrative points for scope of audit.
Page 4 of 4 Scope of Concurrent / Internal Audit for H.O Departments
1. Accounts Department
1. Expenditure challans-Receipt/payments 2. Vendors bills calculations and payment details as per bill. 3. CTR/STR Report 4. Reconciliation of branches & Bank 5. Death claims related to saving accounts / FD / Shares. 6. Returns related to RBI & others 7. Trial balance / Profit & Loss statements abnormal balances 8. Shares new addition & deletion 9. Issue of share certificates. Share register should be tallied with GL. 10. Pending pay orders. 11. Sundry Debtors, Creditors, Advance checking. 12. Checking of recovery and remittance of various taxes such as GST, TDS etc. 13. 15 G & 15H forms 14. Deposit TDS. 15. Professional, Contractor, Rent TDS. 16. Income Tax calculation 17. GST audit – scope of GST audit mentioned separately. 18. All expenses voucher. 19. Consolidated audit classification quarterly
a. Bank as lead bank b. Bank as member bank c. Multiple bank finance 4. Report on big borrower cell a. Sanction by board meeting b. Review of sanction c. Outstanding BBC cases d. Overdue e. Outstanding balance f. NPA BBC cases 5. NPA Management 6. Classification of advances 7. Various reports to RBI (OSS) 8. Yearly NPA certificate 9. LFAR verification 10. Stock audit 11. Pre disbursement verification
Page 1 of 8 3. Admin Department:
1. Furniture & deadstock with insurance 2. Lockers /vacant lockers /Purchase of lockers 3. Vehicle & Insurance 4. Bank properties /leased properties 5. Stationery in hand/stock 6. Housekeeping 7. HO building (Expenses, WIP, Taxes etc.)
4. RTGS Department
1. RTGS/NEFT Onward & Outward 2. Reconciliation of Pending entries
5. Service Cell Department
1. Reconciliation clearing of difference (Clearing Payable & receivable.) 2. Cancellation of payment on HDFC Bank DD. 3. Process of Printing and distribution of cheque books. 4. follow-up for Clearance of Long pending entries in bank reconciliations, 5. Though the process of day end is not completed without the reconciliation of control accounts
it would be prudent to check such accounts. 6. The control returns of GST sent by NACH Clg. should be checked. 7. Checking of filing system of Department. 8. The review and necessity of cash retention limit of the department. 9. To check whether the various guidelines issued by RBI & NPCI and account department are
implemented properly. 10.Cash Checking, Cash Management 11.Checking of Log books of Cash vehicles 12.Checking of Cash 13.Cash Management 14.Duplicate Keys 15.Log books of Cash vans 16.Guards with cash van
6. Recovery Department
1. Quarterly information regarding overdues and remissions placed before Hon. Board of Directors.
2. Recovery in Write off accounts 3. Minutes of the meetings. 4. Checking and implementations of securitizations in various accounts 5. Filling and progress in various suit file accounts 6. Settlement cases/ awarded dues 7. Write off accounts certification (yearly)
Page 2 of 8 7. Audit Department
1. Status & Promptness of submission of various audit reports from branches 2. Submission of reports to RBI. 3. Checking of Forged bank notes detected at branches.
8. Para Banking Department
1. Commission received during the audit period. 2. Whether applicable taxes deducted/paid. 3. Agreements with insurance companies 4. Check on fair dealings 5. Campaigns/Rewards & Recognitions – its effectivity & ethical issues.
9. Credit Monitoring Department
1. Status of CIBIL – CERSAI - CPA (Credit Process Audit) 2. Status of overdue/SMA accounts 3. Various vetting’s-Legal/valuations etc. 4. ROC & other charges- Limitations. 5. Pre disbursement verification
10. Personnel Department
1. Taxes such as Professional tax, Income tax including form no.16 etc. 2. Staff leave record including leave encashment 3. Payment of various allowances 4. Provident fund deduction and remittance of various taxes to government. 5. Retirement benefits including gratuity 6. Provision of Gratuity 7. All returns related to personnel department such as gratuity, actuarial valuation report etc. 8. Punctuality & attendance 9. Financial discipline
i. Standard of ‘take home’ salary norms ii. Outside liabilities (Only that part where ECS/SIs/Inward clearing transactions reflected
in the account with our bank)
11. BMS Department 1. BMS integration 2. All AMC agreement
12. PRO / Secretarial Department 1. Board minutes 2. Review of calendar
Page 3 of 8 13. Shares Department 1. KYC completion 2. Share application forms 3. Nominal member ledger
14. IT Department 1. ATM cash difference 2. Daily marking of NPA 3. Various controls 4. Reconciliation of POS / Ecom / ATM / IMPS / BBPS 5. Other audit regarding IT department such as IS audit, VAPT audit scope will be given at that time.
15. Investment Department
1. RBI, is the main controlling & directive authority which comes up with regular notifications on Investment patterns and requisites on the part of UCB’s. Auditors will be conversant with such notifications and they will remain updated on their own in this matter. It’s mandatory for auditors to communicate changes, if any, notified by RBI time to time, to Investment department through its head.
2. MCS plays vital role in designing norms for Investment functions. Auditors are supposed to communicate changes to Investment Head at proper time.
3. Auditors will go through the formulated policy on Investment by the bank and suggest changes/ deletions/additions if required in such policy which may be contradictory to regulators goals and aims.
4. Interbank dealing in accordance with Investment Policy of the Bank & guidelines in this regard by RBI, SEBI, FBIL etc.
5. Check the Investment management in accordance with the parameters of Investment Policy of the Bank.
6. Check exposure limit for diff Investment segments of Money Market Instruments. 7. Checking of dealing procedures to confirm it is as per laid down policies. 8. Scrutiny of back office function including of accounting in respect of all transactions &
corresponding vouchers. 9. Reconciliation of securities held as physically and in demat form in case of SGL and with
Depository. Reconciliation of Investment related heads in CGL/BGL of the Bank’s Operative System. 10. Checking of physical and demat securities in case of other Investments. 11. Checking dividends and interest received on all Investments. -Certificate of correctness. A wide spectrum of income heads is required to be regularly checked in the system. Revenue leakage approach would be benefitted. 12. Checking of maintenance of SLR and CRR. 13. Checking of all types Investments made by bank, along with G-sec. reconciliation.
Page 4 of 8 14. Checking of SLR in three categories i.e. Held to maturity (HTM), Held for Trading (HFT), and Available for Sale (AFS) and valuation thereof.
15. Check date wise profit and loss calculated by back office. 16. Checking of internal reporting system. 17. Checking of periodic returns submitted to statutory authorities. 18. Check the utilization of delegation of powers by respective authorities. 19. To ensure compliance of regulatory requirements and submit specific reports there on. 20. To confirm whether risk management is in place. 21. To ensure internal guidelines for Investment in Bonds of PSUs are followed. 22. Checking of brokerage paid to brokers and violation, if any. 23. Checking management and control over SGL transfer form. To ensure its safer movements. 24. Instructions relating to Bank Receipts (BR) are followed meticulously. 25. Reconciliation of Bank balances with another Bank's account. 26. Loan/Overdraft availed from correspondents. 27. Utilization of excess funds are as per policy guidelines. 28. Checking of MIS reports generated by department. 29. Reconciliation of Deposits accounts with other Banks. To oversee whether prevailing MCS
rules are follow in this respect. 30. Checking of shifting of securities month wise vis-à-vis accounting of provisions thereon. 31. Checking of earmark securities with CCIL & other CCIL requirements as notified time to
time. 32. Checking of quarterly provisions on all securities in the context of interest receivable. 33. Maintenance of IFR is as per RBI guidelines.
16. Account Opening Department
Common for Savings and current accounts- • Check all the accounts opening forms at CAOD from the point of view of KYC compliance. • Whether the account opening form has been filled in completely • Whether AOF has been signed by concerned authority • Whether photographs of all depositors have been obtained • Whether the documents submitted by the depositor have been self-attested by customer and verified by bank officer • If the company is already in existence, whether it is maintaining any account or enjoying any credit facility with any other bank. If so, the NOC from the concerned bank is to be obtained on record.
➢ In case of savings accounts- • Whether address proof, PAN/Form no -60 is obtained • Whether nomination has been made with appropriate witness
Page 5 of 8 • In case nominee is minor, another name has been obtained • in case of joint accounts operational instructions have been obtained properly • In case of accounts of Society, Trust HUF proper documents such as resolution, HUF letter
indicating names of all major co-partners and minors have been obtained on record. • Whether the account has been categorized correctly in the system • Whether form of customer profile has been obtained and filled in completely and signed by
customer and bank official. • Whether risk categorization has been made correctly. • Declaration in case of difference in signature on Pan and AOF.
In case of current accounts- In addition to the common formalities following additional documents are to be obtained.
➢ Proprietorship- • Copy of Shop act/intimation in case of less than 10 employees • Rubber stamp of the firm on application • Nomination is made • No any other deposit/loan account with any other bank • Self-proprietary declaration
➢ Partnership firm- • Letter of partnership stating the names of partners and operational instructions • Photograph of all partners • Rubber stamp of the firm
➢ Ltd/Pvt. Limited Companies- • Resolution of Company for opening of account. • Company registration certificate • If the company is already in existence, whether it is maintaining any account or enjoying any credit facility with any other bank. If so, the NOC from the concerned bank is to be obtained on record. • Memorandum & article of association • KYC of operating authority
➢ Trust/Society • Trust deed/registration certificate • Resolution with operational instructions • KYC of all trustees/authorities
Page 6 of 8 17. GST audit
A. Scope - • Extracting state wise transactions from ERP System and reconciling with returns. • Verification of reconciliation between returns filed with books of accounts. • Reconciling the value of supplies declared in the return furnished for the financial. year with the audited annual financial statement. • Preparation of reconciliation statements and annexures • Analysing the reconciliation items and its GST impact. • Determination of excess/short GST liability and Input Tax Credit(ITC). • Audit of ITC availed and eligibility thereof. • Providing certification in form GSTR 9-Annual Return with its annexures. • Submission of audit report to the jurisdictional GST authorities / GST portal. • Internal report for improvisation in the system considering the audit points noticed. • Guidance during the assessments under GST. • Rconciliation with GSTR 2A. • Arranging Certification from Chartered Accountant or Cost Accountant • Verification of GSTR – 1 data. • Verification of purchase register.
B. ADVISORY SERVICES:
1) Advisory w.r.t. any matter on GST, FEMA etc. 2) Recurring transaction advisory for Review & Analysis of Purchase Orders, Sales Orders,
Contracts, Work Orders or any other document for determining Place of supply of goods / services. 3) Suggest relevant schemes, concessions, etc. for business considering the applicable GST Laws. 4) Validate / vet replies to letters pertaining to GST. (Please note this does not include any replies to Show Cause Notices, Appeals, etc) 5) Provide timely updates on amendments w.r.t. GST & Customs etc.
C. AUDIT AND ASSURANCE SERVICES:
1) Perform quarterly internal audit taking into consideration your business transaction flows, business processes, internal controls and submit Report covering regulatory implications, financial implications & operational implications arising out of non-compliance with applicable Laws.
2) Review of non-payment of invoices within 180 days from the date of Invoices if any and ITC impact thereon.
3) Review of reversal of ITC credit on account of exempt supplies, FOC supplies etc.
Page 7 of 8 4) Verification of Reconciliation between GST Return and Accounting Data. 5) Reviewing the mismatch reports and advise for escalating issues of recurring and critical
concerns through written reports (follow-up with Vendors and Customers does not include in this scope of work) 6) Provide guidance for preparation of GSTR-9 P.S – These are illustrative points for scope of audit.