Page 1 of 13 Audit, Budget and Coordination Cell Human ...

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Audit, Budget and Coordination Cell Human Resource and Management Department

Mumbai Regional Office Reserve Bank of India Fort, Mumbai- 400001

August 14, 2019

E-Tender for Appointment of Concurrent Auditors for the year 2019-20 w.e.f. October 01, 2019 to September 30, 2020 by Reserve Bank of India, Mumbai Regional Office. Tender No. – RBI/MUMBAI/HRMD/20/19-20/ET/67

Reserve Bank of India (hereinafter called “the Bank”), ABCC, MRO, Mumbai invites E-tenders for Mumbai Regional Office under Two – Bid system (Technical & Financial Bid) for Appointment of Concurrent Auditors for the year 2019-20, for the period October 01, 2019 to September 30, 2020.

For more details, please visit “TENDERS” link on our website https://www.rbi.org.in

The last date for submission of e-tender on MSTC portal (www.mstcecommerce.com) is September 4, 2019.

The Bank reserves the right to reject any tender without assigning any reason thereof.

https://www.rbi.org.in/

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DISCLAIMER

Reserve Bank of India, Audit Budget and Coordination Cell (ABCC), Mumbai Regional

Office, has prepared this document to give background information on the Contract to

the interested parties. While Reserve Bank of India has taken due care in the

preparation of the information contained herein and believe it to be in order, neither

Reserve Bank of India nor any of its authorities or agencies nor any of their respective

officers, employees, agents or advisors give any warranty or make any

representations, express or implied as to the completeness or accuracy of the

information contained in this document or any information which may be provided in

association with it.

The information is not intended to be exhaustive. Interested parties are required to

make their own inquiries and respondents will be required to confirm in writing that

they have done so and they do not rely only on the information provided by Reserve

Bank of India in submitting the e-tender. The information is provided on the basis that

it is non – binding on Reserve Bank of India or any of its authorities or agencies or any

of their respective officers, employees, agents or advisors.

Reserve Bank of India reserves the right not to proceed with the Contract or to change

the configuration of the Contract, to alter the timetable reflected in this document or to

change the process or procedure to be applied. It also reserves the right to decline to

discuss the matter further with any party expressing interest. No reimbursement of

cost of any type will be paid to persons or entities expressing interest.

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Important Instructions Regarding E-tender

This is an e-procurement event of Reserve Bank of India, Audit Budget and

Coordination Cell (ABCC), Mumbai Regional Office. The e-procurement service

provider is MSTC Limited.

You are requested to read and understand the Notice Inviting e-tender and

subsequent Corrigendum, if any, before submitting your online tender.

A) Registration:

The process involves vendor’s registration with MSTC e-procurement portal which is

free of cost. Only after registration, the vendor(s) can submit their bids electronically.

Electronic Bidding for submission of Technical Bid as well as Financial Bid over the

internet will be done. The Vendor should possess Class III signing type digital

certificate. Vendors are to make their own arrangement for bidding from a computer

connected with Internet. MSTC/ RBI is not responsible for making such arrangement.

(Bids will not be recorded without Digital Signature).

NOTE: The Technical Bid and Financial Bid must be submitted online only at

https://www.mstcecommerce.com/eprochome/rbi/buyer_login.jsp

1) Vendors are required to register themselves online with www.mstcecommerce.com

→ e- Procurement→PSU / Govt.Depts→ RBI. Register as Vendor by filling up details

and creating own user id and password→ Submit.

2) Vendors will receive a system generated mail confirming their registration in their

email which has been provided while filling the registration form.

3) In case of any clarification, please contact MSTC/RBI, MRO, CO, Mumbai, (before

the scheduled time of the e- tender).

Contact person (MSTC):

(i) Ms. Archana Juneja, Asst. Mgr. Mobile no. 999067369

Email id – [email protected]

(ii) Ms. Rupali Pandey, Asst. Mgr. Mobile no. 9458704037

Email id – [email protected]

https://www.mstcecommerce.com/

mailto:[email protected]


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Contact person (RBI, ABCC, MRO):

Shri Mrinal Giri (Manager), ABCC, HRMD, Reserve Bank of India, Main building, 1st floor, Shahid Bhagat Singh Road, Fort, Mumbai - 400001 Tel: 22603163/ 22603345 Email Id: [email protected] [email protected]

B) System Requirements:

i) Windows XP-SP3 & above/Windows 7 Operating System

ii) IE-7 and above Internet browser.

iii) Signing type digital signature

iv) JRE 7 update 9 and above software to be downloaded and installed in the

system.

To disable “Protected Mode” for DSC to appear in the signer box following settings

may be applied:

•Tools => Internet Options =>Security => Disable protected Mode If enabled- i.e.,

Remove the tick from the tick box mentioning “Enable Protected Mode”.

Other Settings:

•Tools => Internet Options => General => Click on Settings under “browsing history/

Delete Browsing History” => Temporary Internet Files => Activate “Every time I Visit

the Webpage”.

To enable ALL active X controls and disable ‘use pop up blocker’ under Tools→

Internet Options→ custom level (Please run IE settings from the page

www.mstcecommerce.com once)

For more details, vendor may refer to the Vendor Guide and FAQ available at

https://www.mstcecommerce.com/eprochome




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C) Process of E-tender:

1. The Technical Bid and the Financial Bid shall have to be submitted online at

https://www.mstcecommerce.com/eprochome/rbi. Tenders will be opened

electronically on specified date and time as given in the tender.

2. All entries in the tender should be entered in online Technical & Financial formats

without any ambiguity.

3. Special Note towards Transaction fee:

The vendors shall pay the transaction fee using “Transaction Fee Payment” Link under

“My Menu” in the vendor login. The vendors have to select the particular tender from

the event dropdown box. The vendor shall have the facility of making the payment

either through NEFT or Online Payment. On selecting NEFT, the vendor shall

generate a challan by filling up a form. The vendor shall remit the transaction fee

amount as per the details printed on the challan without making any change in the

same. On selecting Online Payment, the vendor shall have the provision of making

payment using its Credit/ Debit Card/ Net Banking. Once the payment gets credited to

MSTC’s designated bank account, the transaction fee shall be auto authorized and

the vendor shall be receiving a system generated mail.

Transaction fee is non-refundable.

The vendor will not have the access to online e-tender without making the payment

towards transaction fee.

NOTE: Bidders are advised to remit the transaction fee well in advance before the

closing time of the event so as to give themselves sufficient time to submit the bid.

4. Information about tender / corrigendum uploaded shall be sent by email only during

the process till finalization of tender. Hence, the vendors are required to ensure that

the corporate email-id provided is valid and updated at the time of registration of

vendor with MSTC. Vendors are also requested to ensure validity of their DSC (Digital

Signature Certificate).

https://www.mstcecommerce.com/eprochome/rbi

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5. E-tender cannot be accessed after the due date and time mentioned in the Notice

inviting e-tender.

6. Bidding in E-tender:

a) The process involves Electronic Bidding for submission of Technical and Financial

Bid.

b) The vendor(s) who have submitted transaction fee can only submit their Technical

Bid and Financial Bid through internet in MSTC website www.mstcecommerce.com →

e- procurement →PSU/Govt. depts→ Login under RBI→My menu→ Auction Floor

Manager→ live event →Selection of the live event.

c) The vendor should have running JAVA application. This exercise has to be done

immediately after opening of Bid floor. Then they have to fill up Common

terms/Commercial specification and save the same. After that click on Technical bid.

If this application is not run then the vendor will not be able to save/submit his/their

Technical bid.

d) After filling the Technical Bid, vendor should click ‘save’ for recording their Technical

Bid. Once the same is done, the Financial Bid link becomes active and the same has

to filled up and then vendor should click on “save” to record their Financial Bid. Once

both the Technical Bid & Financial Bid have been saved, the vendor can click on the

“Final submission” button to register their Bid.

e) Vendors should use ‘Attach Doc’ button to upload documents. Multiple documents

can be uploaded.

f) In all cases, vendor should use their own ID and Password along with Digital

Signature at the time of submission of their bid.

g) During the entire e-tender process, the vendors will remain completely anonymous

to one another and also to everybody else.

h) The e-tender floor shall remain open from the pre-announced date & time and for

as much duration as mentioned above.

i) All electronic bids, submitted during the e-tender process, shall be legally binding on

the vendor. Any bid will be considered as the valid bid offered by that vendor and

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acceptance of the same by the Bank will form a binding contract between the Bank

and the vendor for execution.

j) It is mandatory that all the bids are submitted with digital signature certificate

otherwise the same will not be accepted by the system.

k) The Bank reserves the right to cancel or reject or accept or withdraw or extend the

tender as the case may be without assigning any reason thereof.

l) No deviation from the terms and conditions of the tender document will be accepted.

Submission of bid in the e-tender floor by any vendor confirms their acceptance of the

terms & conditions for the tender.

7. Any order resulting from this tender shall be governed by the terms and conditions

mentioned therein.

8. No deviations from the technical and financial terms & conditions are allowed.

9. The Bank reserves the right to cancel partially or fully this e-tender or extend the

due date of receipt of bid(s) without assigning any reason thereof.

10. Vendors are requested to read the vendor guide and see the video in the page

https://www.mstcecommerce.com/eprochome to familiarize themselves with the

system before bidding.


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NOTICE INVITING TENDER

(Only through e-procurement)

SCHEDULE OF TENDER

Note: This is a tender enquiry through MSTC portal. Bidders are advised to first visit our website https://www.rbi.org.in through “Tenders” link check their eligibility. Eligible firms wishing to apply should register themselves with MSTC Portal (www.mstcecommere.com) and apply online only.

A

e-Tender no Tender No. RBI/MUMBAI/HRMD/20/19-20/ET/67

B Mode of Tender e-Procurement System

(Online Part I – Technical Bid and Part II - Financial Bid through https://www.mstcecommerce.com/eprochome/rbi)

C Date of Notice Inviting e-tender available for download on RBI website

August 14, 2019

D Pre-Bid meeting (offline) No

E Estimated value of tender ₹ 20,40,000/- (excluding GST) per annum

F Transaction fees 0.05% of estimated value of tender =

₹1020.00 + GST applicable

G Date of Starting of online submission of e-tender (Technical Bid and Financial Bid) at www.mstcecommerce.com/eprochome/rbi

August 14, 2019

H Last date of availability of e-tender on website

September 4, 2019

I Date & time of closing of online submission of e-tender (Technical Bid)

September 4, 2019 at 11:00 am



http://www.mstcecommere.com/

http://www.mstcecommere.com/




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J Date & time of opening of Part-I

(Technical Bid)

September 4, 2019 at 1:00 pm

K Date of opening of Part-II (Financial Bid)

Part-II (Financial Bid) will be opened electronically of only those bidder(s) whose Part-I (Technical Bid) is found acceptable by RBI, ABCC, MRO. Such bidder(s) will be intimated regarding date of opening of Part- II (Financial Bid) through valid email given by them.

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Audit, Budget and Coordination Cell

Human Resource and Management Department Mumbai Regional Office Reserve Bank of India Fort, Mumbai- 400001

E-Tender for Appointment of Concurrent Auditors for the year 2019-20 w.e.f. October 01, 2019 to September 30, 2020 for Reserve Bank of India, ABCC, Mumbai Regional Office. Reserve Bank of India, Audit, Budget and Coordination Cell (ABCC), Mumbai

Regional Office, (hereinafter called “the Bank”), invites E-tender under Two Bid system

(Technical & Financial Bid) for Appointment of Concurrent Auditors for the year 2019-

20 w.e.f. October 01, 2019 to September 30, 2020 for Reserve Bank of India, Mumbai

Regional Office.

The appointment of the Concurrent Auditors (CAs) will be for a period of one year

initially i.e. from October 01, 2019 to September 30, 2020. However, the same may

be renewed for second and third year subject to satisfactory performance as per

annual review of the CAs performance.

The Part-I (Technical Bid) will be opened electronically on September 4, 2019 at 1:00 pm. In the event of any date indicated above being declared a Holiday, the next

working day shall become operative for the respective purpose mentioned herein.

Tender document can be downloaded from website www.rbi.org.in and

www.mstcecommerce.com. Any amendment(s) / corrigendum / clarifications with

respect to this tender shall be uploaded on the website / e-portal only. The applicants

should regularly check the above website / e-portal for any Amendment / Corrigendum

/ Clarification on the above website.

Regional Director Mumbai Regional Office

http://www.rbi.org.in/

http://www.mstcecommerce.com/

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NOTICE

Inviting Tender for Appointment of Concurrent Auditor for the year 2019-20 w.e.f. October 01, 2019 to September 30, 2020 for Reserve Bank of India, ABCC, Mumbai Regional Office.

TENDER NOTICE 1. E-tenders are invited under Two-Bid system from Chartered Accountant Firms

registered with ICAI for Appointment of Concurrent Auditors (CAs) for the year 2019-20 w.e.f. October 01, 2019 to September 30, 2020 for Reserve Bank of India, ABCC, Mumbai Regional Office.

2. The intending bidders should refer scope of work, terms and conditions of the

tender before submitting the bid.

3. Before submitting the tender, the Bidders may satisfy themselves as to the

eligibility and other criteria prescribed therein. It may also be noted that the

terms and conditions specified herein are indicative in nature and the same

shall not restrain the Bank from imposing or requiring the Bidder to agree upon

such further or other terms and conditions at the time of executing the

agreement with the successful bidder, or to alter, modify or omit the terms and

conditions contained herein, as are considered necessary for the due and

proper execution of the work to be awarded under this Tender.

4. Corrections, if any, in the quotation shall be duly authenticated with full

signature of authorised person.

5. Bidder/ authorized signatory of the Bidder shall sign on each page of the tender.

6. In the first stage, the Technical Bid (Part-I) will be opened at 1:00 pm on September 4, 2019 at RBI, MRO, Mumbai. The bid of any bidder who has not

complied with one or more of the conditions prescribed in the terms and

conditions will be summarily rejected. Subsequently, the selected technical bids

will be evaluated as per the methodology given in the Tender document.

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Decision in this regard will be at the sole discretion of Reserve Bank.

7. The Financial Bid (Part-II) of only those bidders, who have been short-listed in

first stage will be opened. The bidders who have been short-listed will be

intimated regarding date and time of opening the financial bids.

8. No deviations / conditions shall be stipulated by the CAs in both technical and

financial bids. Conditional tenders will not be accepted and will be summarily rejected.

9. Tender would remain open for acceptance for 90 days from the date of opening

Technical Bid (Part-I) of the tender or till the date of finalization of tender,

whichever is earlier.

10. Falsification/ suppression of information shall lead to disqualification of the

bidder/ cancellation of contract even after award of work during the currency of

the contract.

11. Canvassing or offer of an advantage or any other inducement by any person

with a view to influencing acceptance of a bid will be an offence under relevant

Laws as applicable in the matter. Such action will result in the rejection of bid,

in addition to other punitive measures.

12. Reserve Bank is not bound to accept the lowest tender and reserves the right

to accept either in full or in part any tender or to reject any or all of the tenders

received without assigning any reason thereof.

13. In case the bidder has any doubt about the meaning of anything contained in

the Tender document, he / she shall seek clarification from ABCC,

HRMD, MRO, atleast ten days before submitting his bid. Any such clarification,

together with all details on which clarification had been sought, will also be

forwarded to all bidders without disclosing the identity of the bidder seeking

clarification. All communications between the bidder and the Bank shall be

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carried out in writing. Except for any such written clarification by the Bank

which is expressly stated to be an addendum to the tender document issued

by ABCC, MRO, RBI, no written or oral communication, presentation or

explanation by any other employee of the Bank shall be taken to bind or fetter

the Bank under the contract.

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TENDER DOCUMENT - CONTENTS

1. The Tender Invitation Document has been prepared for the purpose of inviting

tenders for Appointment of Concurrent Auditors for the year 2019-20 w.e.f.

October 01, 2019 to September 30, 2020 by Reserve Bank of India, ABCC,

Mumbai Regional Office. The Tender document comprises of:

I. Form 1 (with Appendix 1 & 2)

II. Form 2

III. Eligibility Criteria

IV. Evaluation Criteria

V. Terms and Conditions

VI. Undertaking (Annex-A)

VII. Indicative List (Annex-B)

VIII. Detailed Scope of work (Annex-C)

2. The bidder is expected to examine all instructions, Forms, Terms and

Conditions and the Scope in the Tender document. Failure to furnish all

information required by the Tender document or submission of a tender not

substantially responsive to the Tender document in every respect will be at the

bidder’s risk and may result in rejection of their bid.

3. The bidder shall not make or cause to be made any alteration, erasure or

obliteration to the text of the Tender document.

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I. Form 1

Application for appointment as Concurrent Auditor: Technical Bid Form

1) Name of the Firm

2) Complete Postal Address

3) Telephone number

4) Email address

5) Date of opening of the Firm

6) GSTIN

7) Firm registration no.

8) Unique Code No.

9) Permanent Account Number (PAN)

10) Number of Full time FCA partners

11) Details of the Partners (as per Appendix 1)

12) No. of qualified CAs employed

13) No. of Skilled staff- qualified in both the

Groups of IPCC

14) No. of Semi-skilled staff - qualified in

Group I -IPCC

15) No. of other Assistants

16) Details of Experience of the Firm in audits

in banks/RBI (as per Appendix 2)

I declare that

(a) The firm or no partner has been subjected to any disciplinary proceedings initiated by the ICAI.

(b) The firm or no partner has been debarred or black listed by any Government/ Semi –Government organization/ institution in India or abroad.

Signature of Authorised Signatory with Seal of the firm

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Appendix 1 (to Form 1)

Details of the Partners

Name of the Partner

Date of Becoming

Date of joining the firm

Membership No.

Educational Qualifications

Experience

ACA FCA

Appendix 2 (to Form 1)

Details of experience of the firm in Audit in Banks/ RBI

Type of Audit

Name of the Bank

Branch (es) No. of years engaged

Period of Engagement (From date to date)

Signature of Authorised Signatory with Seal of the firm

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II. Form 2

Application for appointment as Concurrent Auditor: Financial Bid Form

1 Name of the Firm :

2 Complete Postal Address :

3. Monthly Remuneration for carrying out

: Concurrent Audit

(including all costs but excluding GST)

(Amount in rupees - in words) --------------------------------------------

(Amount in rupees - in figures) -------------------------------------------------------------------------------------------------------

Signature of Authorised Signatory with the Seal of the firm

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III. Eligibility Criteria

Reserve Bank of India, ABCC, MRO invites E-tenders under Two – Bid system

(Technical & Financial Bid) for Appointment of Concurrent Auditor for the year 2019-

20 w.e.f. October 01, 2019 to September 30, 2020 for Reserve Bank of India, ABCC,

Mumbai Regional Office.

1. Applicant firm should have more than 5 full time Chartered Accountant

employees.

2. The firm should have more than 15 skilled staff qualified in both the groups of

IPCC.

3. The firm should have more than 3 years of experience in bank audit.

4. The minimum monthly remuneration will be Rs.1,70,000/- (Rupees One lakh

seventy thousand only) exclusive of GST.

5. The applications indicating less than the minimum monthly remuneration will be

out-rightly rejected.

6. The appointment methodology comprises a two-stage process, involving

technical and financial bidding, with separate evaluation for the two stages and

a qualifying criterion in the technical evaluation. Firms securing 60 or more

marks (out of 100) in technical bid only will be eligible for the next stage of

financial evaluation.

7. The final evaluation will be done by combining the marks secured in the

technical and financial evaluation in the ratio of 60:40 with the bidder obtaining

the highest total marks becoming eligible for appointment.

8. In case of tie, the same would be resolved by giving additional weightage to the

firm that has higher number of years of experience, or more number of FCA

partners or longer association of partners with the firms, or more number of key

professional staff/skilled staff or more number of years of experience in the

banks and / or RBI audits, with these parameters been sequentially considered

in order of which they have been listed out under the technical evaluation

criteria.

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9. The firm or no partner should have been subjected to any disciplinary

proceedings initiated by the ICAI.

10. The firm or no partner should have been debarred or black listed by any

Government /Semi –Government organization/institution in India or abroad.

11. Please note that the Firms which are currently Statutory/ Statutory Branch

Auditors/ Concurrent Auditors of RBI and those firms which have conducted

such audits in RBI in the past but at least two years have not elapsed since the

completion of such assignment as on September 30, 2019 are NOT eligible.

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IV. Evaluation Criteria

(i) Technical Bids of applicants will be evaluated based on the eligibility criteria

as mentioned earlier, after scrutinizing all the relevant documents as sought

from the bidders and as per Methodology given below.

(ii) Bidders must note that a two-stage procedure will be adopted in evaluating

the bids with the technical evaluation being completed prior to opening of

financial bids.

(iii) Quality, competence and reliability of the firm is of paramount importance in

this tender. The decision of appointment would be made as under:

(iv) Only Technical proposals scoring not less than 60% of the total marks will be

considered for further evaluation.

(v) The Bank shall notify those bidders whose proposals do not meet the minimum

qualifying marks or were considered non-responsive to the tender conditions.

The Bank shall simultaneously notify the bidders who have secured the

minimum qualifying marks, indicating the date and time set for opening of the

financial bids. The notification will be sent by electronic mail.

(vi) The financial bids shall be opened publicly in the presence of the bidders

representatives who choose to attend (only one representative per bidder).

The name of the Bidder, the quality score and the offered prices shall be read

aloud and recorded when the financial bids are opened.

(vii) The technically qualified bidder with the lowest financial bid after scrutiny and

normalisation would be declared as FLOW.

(viii) The final evaluation will be done by combining the marks secured in the

technical and financial evaluation in the ratio of 60:40 with the bidder obtaining

the highest total marks becoming eligible for appointment.

(ix) In case of tie, it may be resolved by giving additional weightage to the firm that

has higher number of years of experience, or more number of FCA partners

of longer association of partners with the firms, or more number of key

professional staff/skilled staff or more number of years of experience in the

bank and / or RBI audits, with these parameters been sequentially considered

in order of which they have been listed out under the technical evaluation

criteria.

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Annex - 1

Criteria for Technical Bid Evaluation

Parameters Marks Range

Max

1) Experience of the firm - No. of years 15

less than 10 years 0

10 to 15 years 10

Above 15 years 15

2) Full Time Fellow Chartered Accountant (FCA) Partners 15

Less than 4 0

4 to 6 10

Above 6 15

3) Association with the same firm - No. of Partners 10

None 0

One partner associated for 10 years or more 5

More than one partner associated for 10 years or more 10

4) Key professional staff -Full time CA employees 15

Less than 2 CAs 0

2 to 5 CAs 5

6 to 10 CAs 10

More than 10 CAs 15

5) Skilled Staff- Qualified in both the Groups of IPCC - No of staff 15

Less than 10 0

10 to 15 5

16 to 20 10

More than 20 15

6) Experience of the firm in bank audits 20

i) As System/IS auditor

Less than 3 years 0

3 to 6 years 5

More than 6 years 10

ii)As Concurrent Auditor/Statutory Central/ Branch Auditor

Less than 3 years 0

3 to 6 years 5

More than 6 years 10

7) Past experience in RBI audits* and performance assessment by RBI 10

As Concurrent Auditor /Statutory Central/Branch Auditor

Unsatisfactory up to (-)10

Satisfactory/Good 5

Excellent 10

Maximum Marks 100

*Firms which are currently Statutory/ Statutory Branch Auditors/ Concurrent Auditors of RBI and those firms which have conducted such audits in RBI in the past but at least two years have not elapsed since the completion of such assignment as on September 30, 2019 are NOT eligible.

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Annex - 2

Criteria for Financial Bid Evaluation

Sl. No. Particulars of the Bid Marks

1 L-1(Lowest Bid) 100

2 L-2 90

3 L-3 80

4 L-4 70

5 L-5 60

6 Above L-5 0

The applications indicating less than the minimum monthly remuneration (Rs.

1,70,000/- excluding GST) will be out-rightly rejected.

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V. Terms and Conditions

1. Tenders (Technical and Financial bids) are invited from CA firms for conducting

Concurrent Audit of Mumbai Regional Office, Reserve Bank of India, Mumbai.

2. The two-stage tendering process would be as under:

a) Tender is invited comprising a two-stage process involving technical and financial

bidding with separate evaluation for the two stages and a qualifying criteria in the

technical evaluation.

b) The first stage will be evaluation of the technical bids. The detailed criteria for technical

evaluation is given in Annex-1. The maximum marks that can be secured under

technical evaluation will be 100. Firms securing 60 marks or more, only will be

considered for the next stage of financial evaluation.

c) The second stage will be the opening of the financial bids of the firms that have

qualified in the technical evaluation. The maximum marks that can be secured under

financial evaluation will be 100 as detailed in Annex-2.

3. The final evaluation will be done by combining the marks secured in the technical and

financial evaluation in the ratio of 60:40, with the bidder obtaining the highest total

marks becoming eligible for appointment as Mumbai Regional Office, Reserve Bank

of India, Mumbai.In the eventuality of a tie in the marks, the same would be resolved

by giving additional weightage to the firm that has higher number of years of

experience, or more number of FCA partners, or longer association of partners with

the firms, or more number of key professional staff/ skilled staff, or more number of

years of experience in bank and/ or RBI audits, with these parameters being

sequentially considered in the order in which they have been listed out under the

technical evaluation criteria in Annex-1.

4. The firm selected on the basis of the above process will be eligible for appointment as

concurrent auditor initially for the period October 01, 2019 to September 30, 2020, with

the provision of reappointment for a maximum of two more years, one year at a time,

subject to satisfactory performance under a system of appraisal at the end of the

year by HRMD, CO, RBI. The appraisal of performance will be done on parameters

including quality of work, adequacy of CAs and other skilled/ semi-skilled staff

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deployed, timeliness of submission of reports and such other parameters considered

relevant by RBI.

5. The minimum monthly remuneration would be Rs. 1,70,000/- (Rupees One lakh

seventy thousand only) exclusive of GST and inclusive of all costs for undertaking the

Concurrent Audit of Mumbai Regional Office. The remuneration would be for the

period of three years and will not be changed on renewal. The remuneration would be

paid after deduction of Income Tax at source in terms of Section 194-J of the Income

Tax Act 1961 and other applicable taxes. The quoted remuneration shall be final and

irreversible. The payment shall be made electronically within a reasonable period after

submission of bill by the firm. RBI shall not be liable for any penalty for delay in

payment for reasons beyond its control.

6. The CA firm has to deploy minimum prescribed complement of Staff (1 Chartered

Accountant + 6 Skilled Staff + 2 Semi-skilled Staff). The skilled staff should have at

least qualified in both the Groups of IPCC (Integrated Professional Competence

Course) and the semi-skilled staff at least Group I of IPCC and undergoing article

training. The team should have working knowledge of computers/ systems.

7. The presence of Chartered Accountant/ Partner of the firm on all working days during

working hours is mandatory. The staff as indicated in point no. 5 has to be present on

all working days of RBI and observe the working hours of RBI. The presence of the

above staff would be monitored by the Bank. In normal course the team deployed by

the firm is not to be shuffled, but only under extreme exigency.

8. The firms which are currently Statutory Branch Auditors/ Concurrent Auditors of RBI

and those firms which have conducted such audits in RBI in the past but at least two

years have not elapsed since the completion of such assignment, as on September

30, 2019 are NOT eligible to apply. An undertaking to this effect in attached Annex-A

is required to be submitted by the firm.

9. An indicative list of activities covered under the audit is given in Annex-B. All the

departments as indicated in Annex-B shall be covered under Concurrent Audit. The

firm shall assist Bank’s staff in determination of all statutory taxes and returns thereof.

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The firm will prepare and file Income Tax/ GST returns of the Bank (and also any other

related return/s which may come in force subsequently) at the designated intervals.

The Bank reserves the right to add/ delete areas of audit as per its requirement for

which there would be no change in the monthly remuneration quoted and agreed.

10. RBI will not provide any other facility/ charges to staff besides suitable sitting space.

The CA or his staff shall not use the premises, properties, fixtures, fittings, etc., of the

RBI premises for any purpose other than works related to his/ her job. The CA shall

be responsible for taking adequate care of all equipment and materials provided by

RBI.

11. The Reserve Bank of India does not bind itself to accept the lowest or any tender and

reserves to itself the right to accept or reject any or all the tenders, either in whole or

in part, without assigning any reason for doing so.

12. A quarterly meeting with the Concurrent Auditors would be held with Bank’s

Management Team/ HoDs after the end of every quarter to review the working of the

office in the quarter and discuss changes in the tax laws/ structure and its impact on

Bank.

13. The process of selection of concurrent auditors will be completed through e-tendering.

All chartered accountant firms are required to register themselves on

https://www.mstcecommerce.com for e-tendering process. For guidance on any

technical / operational issues, users are required to contact the following officials of

the service providers:

(i) Ms. Archana Juneja, Asst. Mgr. Mobile no. 9990673698 Email id – [email protected] (ii) Ms. Rupali Pandey, Asst. Mgr. Mobile no. 9485704037 Email id – [email protected]

14. Please note that for applying under the e-tendering process, a firm should be

registered on MSTC portal. Therefore, you are requested to expedite vendor

registration for participation in the tender process.

https://www.mstcecommerce.com/



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15. Part-I of the tender will be opened on September 4, 2019 at 13:00 Hrs. Part-II of the

tenders will be opened for eligible tenderers subsequently. Firms are advised to use

only the forms supplied by the Bank and not to use any other forms. Incomplete

tenders are liable for rejection. The uploaded tender form must be filled in English. If

any of the documents is missing or unsigned, the tender may be considered invalid by

the Bank in its discretion.

16. All erasures and alterations made while filling the tender must be attested by initials of

the tenderer. Overwriting of figures is not permitted. Failure to comply with either of

these conditions will render the tender void at the Bank's option. No request for any

change in remuneration or conditions after the opening of the part II tender will be

entertained.

17. RBI reserves the right of addition/ alteration of the scope of audit by adding to or

omitting any work without prejudice to this appointment. There would be no change in

the monthly remuneration on account of this change in the areas of audit.

18. All disputes arising out of or in any way connected with this appointment shall be

deemed to have arisen at Mumbai and only Courts in Mumbai shall have the

jurisdiction to determine the same.

19. The acceptance of offer of contract shall be communicated by the successful bidder

such that the acceptance is received by the Reserve Bank within 7 days from the date

of issue of the offer. Failure to accept the offer and communicate accordingly within

this period shall result in revocation of the offer.

20. The CA shall indemnify and keep indemnified, defend and hold good the Reserve

Bank, its directors, officers, employees and agents against loss, damages or claims

arising out of any violations of applicable laws, regulations, guidelines during the

contract period and for the breach committed by the CA on account of misconduct,

omission and negligence by the CA.

21. The CA shall not sublet, transfer or assign the contract or any part thereof without

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the prior written approval of the Bank to any other firm.

21.It shall be the CA’s responsibility to ensure that the obligations under the terms of this

contract are duly performed and observed. If the CA fails to carry out any of his

obligations/ duties in terms of the Agreement or violates any general instructions and

special conditions, the appointment may be terminated by the Bank without assigning

any reason.

22. The Bank reserves the right to amend/ modify the tender document or issue any

corrigendum to the bid process. The bidder shall not contest the right of the RBI to do

the aforesaid.

23.The CA shall not disclose directly or indirectly any information, materials and details

of the Bank’s infrastructure / systems/ equipment etc., which may come to the

possession or knowledge of the CA during the course of discharging contractual

obligations in connection with this agreement, to any third party and shall at all times

hold the same in strictest confidence. The CA shall treat the details of the contract as

private and confidential, except to the extent necessary to carry out the obligations

under it or to comply with applicable laws. The CA shall not publish, permit to be

published, or disclose any particulars of the works in any trade or technical paper or

elsewhere without the previous written consent of the Bank. The CA shall take all

appropriate actions with respect to its employees to ensure that the obligations of

nondisclosure of confidential information under this agreement are fully satisfied. The

CA’s obligations with respect to non-disclosure and confidentiality will survive the

expiry or termination of this agreement for whatever reason.

24.If the Auditor firm commits any act of insolvency or shall be adjudged an insolvent or

being an incorporated company shall have an order for compulsory winding up made

against it or pass an effective resolution for winding up voluntarily or subject to

supervision of the Court and official Assignee or liquidator in such acts of solvency or

winding up, as the case may be, shall be unable within seven days after notice of

him/them requiring him/ them to do so, to show to the reasonable satisfaction of Bank

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that the firm is able to carry out and fulfil the appointment and to give security there of,

if so required by Bank.

25.The firm would be deemed to have acknowledged that all materials & information which

has or will come into its possession or knowledge in connection with this agreement

or the performance hereof, whether consisting of confidential or proprietary data or

not, will at all times be held by it in strictest confidence and it shall not make any use

thereof, other than for the performance of its obligations and to release it only to

employees requiring such information for the purpose of performing obligations

described herein and not to any other.

26. Termination Clause: If at any time Bank is not satisfied with the services provided by

the firm, the Bank may terminate the contract after giving a notice of one calendar

month. The firm, if it wishes to terminate the services, has to provide a similar notice

to the Bank.

27. Commercial conditions and settlement of dispute by Arbitration - All disputes and

differences of any kind whatever arising out of or in connection with this appointment

shall be referred to Regional Director, Mumbai Regional Office, Reserve Bank of India,

Mumbai and settled by him/ her who shall state his/ her decision in writing. Such

decision may be in the form of a final certificate or otherwise. If either the Employer or

the firm be dissatisfied with the decision of the Regional Director on a matter, question

or dispute of any kind or as to withholding by the Bank of any Certificate to which the

firm may claim to be entitled, then and in any such case either party (the Employer or

the firm) may within 28 days, after receiving notice of such decision, give a written

notice to the other party requiring that matters in dispute be arbitrated upon. Such

written notice shall specify the matters which are in dispute or difference, of which

such written notice has been given and no other shall be and is hereby referred to the

arbitration and final decision of an arbitrator to be agreed upon by both the parties or,

in case of disagreement as to the appointment of single arbitrator, to the appointment

of two arbitrators, one to be appointed by each party, which arbitrators shall, before

taking upon themselves the burden of reference, appoint an Umpire. The entire

arbitration will be governed by the Indian Arbitration and Conciliation Act 1996.

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28. The firm shall abide by all the laws of the land in respect of Labour Act, PPF, ESI,

minimum wages etc. Bank shall not be responsible for any claim on any account for

not abiding with these laws. The firm shall give details of the staff going to be deployed

for Bank’s verification. Further, the firm shall carry out police verification of the

personnel deployed at Bank’s premises for security purposes.

29. The firm shall be solely responsible for full compliance with the provisions of the Sexual

Harassment of women at work place (Prevention, Prohibition and Redressal) Act,

2013. In case of any complaint of sexual harassment against its employees within the

premises of the Bank, the complaint will be filed before the Internal Complaints

Committee constituted by the firm and the firm shall ensure appropriate action under

the said Act in respect of the complaint.

30. Any complaint of sexual harassment from any aggrieved employee of the firm against

any employee/ customer/ visitor of the Bank shall be taken cognizance of by the

Regional Complaints Committee constituted by the Bank.

31. The monthly remuneration quoted shall be deemed to have excluded GST. If the

applicant fails to exclude GST in the tender, no claim thereof will be entertained by the

Bank afterwards. As per Indian laws, TDS will be deducted at source and a certificate

for the same will be issued to the firm.

32. Financial bids shall contain remuneration in Indian Rupees only as per form 2 both in

figures and words. No other enclosure is permitted with financial bid.

33. No advance shall be paid. Bill for monthly remuneration may be raised by the CA on a

monthly basis and the same shall be settled after deducting all applicable statutory

taxes i.e. GST etc. The payment shall be made within 30 days through NEFT from the

date of submission of complete bill TDS Certificate shall be issued every quarter in

support of TDS deductions effected from the bills.

34. The selected firm is required to submit an affidavit-cum-indemnity bond on non-judicial

stamp paper (value as per local stamp laws) at the time of appointment/ extension of

the term of appointment, as to the maintenance of confidentiality and secrecy of the

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Bank’s systems and procedures as also to indemnify the Bank against any claim due

to loss or damage arising as a consequence of disclosure of any information by it.

Annex-A

VI. Undertaking

We, M/s ……………..............................................................(name of firm) having

registered office at

…..........................................................................................................

……………………………………………………………….……..(address of firm) are

NOT currently Statutory Branch Auditors/ Concurrent Auditors of RBI and have NOT

conducted such audits in RBI since September 30, 2016.

(Signature of Authorised Signatory with the Seal of the firm)

Date:

Place:

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Annex - B

Appointment of Concurrent Auditors (Indicative List)

Appointment related information

The Concurrent Audit team should comprise of ONE Chartered Accountant, SIX

Skilled and TWO Semi-skilled staff. The skilled staff should have qualified in both the

Groups of Integrated Professional Competence Course (IPCC) and the semi-skilled

staff should have qualified at least Group I of IPCC and undergoing article training.

The team should have working knowledge of computers/ systems.

The profile of the audit firm should include information of partners, staff strength

(skilled and semi-skilled) and previous experience of similar auditing etc.

The appointment of the Concurrent Auditors (CAs) will be for a period of one year

initially i.e. from October 1, 2019 to September 30, 2020. Subsequently the same will

be renewed for second and third year subject to annual review of the CAs

performance by the office.

The Chartered Accountant firm has to deploy minimum prescribed Concurrent Audit

team of ONE Chartered Accountant, SIX Skilled and TWO Semi-skilled staff in RBI

premises on a daily basis.

The minimum monthly remuneration would be Rs.1,70,000/- (Rs. One lakh seventy

thousand only) exclusive of GST. The quotation should clearly mention the total

monthly remuneration for undertaking the audit of Mumbai Regional Office. The

remuneration would be for the period of three years and will not be changed on

renewal.

The remuneration would be paid after deduction of Income Tax at source in terms of

Section 194-J of the Income Tax Act 1961.

Scope of Work

The CAs will cover the following departments of the Bank:

A. Department of Bank Accounts

B. Government Banking Department

C. Public Debt Office

D. Estate Office

a. Estate Office (Mumbai Regional Office)

b. Estate Cell (Byculla)

c. Estate Cell (Bandra- Kurla Complex)

E. National Clearing Cell (NCC)

F. Issue Department

G. Central Establishment Section

H. Foreign Exchange Department

I. Financial Inclusion and Development Department

J. Human Resource and Management Department

K. Office of the Banking Ombudsman

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L. Project Management Cell (PMC)

M. Department of Payment and Settlement System

On an average, the number of vouchers to be checked by CAs on monthly basis

would be around 800. However, the number is only indicative in nature and there

may be increase / decrease in the number of vouchers based on the requirement of

the office / department.

CAs are expected to familiarize themselves with the system and procedures of the

Departments and expected to go through all the relevant circulars / guidelines issued

by the Bank from time to time, the provisions incorporated in the relevant manuals,

Expenditure Rules, etc.

CAs are expected to familiarize themselves with the application developed by the

Bank for the audit purpose (Audit Management and Risk Monitoring System-

AMRMS) and submit the report/s and create action paras (including rectified paras)

as required by the Bank.

All financial transactions, irrespective of their value, will be covered under concurrent

audit. The vouchers scrutinized will strictly adhere to the Bank’s prescribed

guidelines/procedures with particular reference to following aspects:

A. Adherence to Bank’s Expenditure Rules, 2018.

B. Narration and accounting under the proper head of accounting

C. Correct accounting of revenue and capital nature of expenditures.

D. Maintenance of all relevant accounts (Such as General Ledger, Subsidiary

General Ledger Accounts, supporting Records / Registers etc.) as per prescribed

norms.

E. Inter office Reconciliation A/c, Adjustments A/c.

F. Reconciliation and monitoring of Charges A/c at monthly interval.

G. Calculation of claims of agency commission.

The detailed synopsis / checklist for CAs is enclosed as Annex C. The Checklist

details the financial and non-financial areas that need to be looked into while

conducting the audit. Concurrent audit as per checklist is mandatory.

The CAs should take up audit of vouchers / records / registers/ bills/ statements on

the agreed dates / days in consultation with the concerned Departments.

The CAs are required to identify deficiencies, if any, noticed for spot rectification.

CAs are expected to verify and report that the financial transactions undertaken are

in conformity with the laid down system and procedure of the Bank.

CAs would be required to verify reports related to the periodical Income Review

Statement, certify the Weekly Statement of affairs (WSA), Abstract WSA, Income

statement, carry forward provision report etc, as per the requirement of the

Departments.

The CAs functions as specified above may be enlarged at a future date as per the

requirement of the Departments.

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The audit firm shall verify all financial transactions, irrespective of value, involving tax

deductions and payment of statutory audit/ local body taxes irrespective of the

amount.

The audit firm will be responsible for any omissions or commissions on their part in

any data/ transactions seen by them.

The members of the team shall abide by the Bank’s rule of secrecy of data/

information and security.

The CAs shall assist Bank’s staff in determination of all statutory taxes and returns

thereof. The firm will prepare and file GST/Income Tax returns of the Bank (and also

any other related return/s which may come in force subsequently) at the designated

intervals.

The Bank shall pay the agreed audit fees on completion of assignment and

submission of the report thereof on a monthly basis.

Vouchers shall be scrutinized strictly in adherence to Bank’s prescribed guidelines/

procedures with particular reference to sanctioning authority with reference to

delegated powers – cadre wise.

All financial transactions shall be subjected to audit. Excesses/ irregularities in

financial sanctions by the authority below the rank of Regional Director shall be

reported to the Regional Director and any Excesses/ irregularities in financial power

exercised by the Regional Director will be reported directly to the Inspection

Department, Reserve Bank of India, Central Office by the concurrent auditor every

month.

CA firm is advised to use pink color pen while checking/ auditing the records and put

a rubber stamp “checked/audited” with the date and initials on the records subjected

to scrutiny.

Reporting requirements

Monthly audit report and certificate should be submitted in the format prescribed by

the Bank.

Monthly Audit Report should indicate item-wise action points on the financial and

non-financial (major and other) action paras.

Monthly Audit Report should also indicate status of compliance in respect of action

points pertaining to audit report which was rectified during the month and the reason

for delay, of the outstanding compliances, if any.

Monthly Audit Report should highlight the reasons for inaction in respect of old

outstanding entries in sensitive accounts, such as Suspense, Sundry etc.

Irregularities noticed in sensitive areas and / or transactions of suspicious nature

should be brought to the notice of Regional Director by recording a special note.

Concurrent Audit report should incorporate specific comments, wherever required,

duly supported by facts and figures.

Major irregularities / frauds/ leakages in income, if any identified should be brought

to the notice of in charge of Auditee office, concerned Department and Inspection

Department.

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CONCURRENT AUDIT CHECKLIST

Scope of Audit for Department of Bank Accounts

Sr.

No.

Particulars Yes /

No /

NA

Audit

Observations

A. CURRENT ACCOUNTS MANAGEMENTS

1 Updation of Instructions

i. Whether the instructions for account

operations such as names of authorized

officials, details of cheque books issued, etc.

are duly captured in the system and kept up-

to-date? Whenever there is a change, the

amended instructions should be duly captured

in the system, under due authentication.

ii. Whether, in respect of existing current

accounts, the account-opening forms, etc. are

held in proper custody and a separate set of

files maintained for general correspondence.

2 Power of Attorney

i. Whether Power of Attorney/Board

Resolutions are duly examined and updated

accordingly. (Para 5.82)

ii. Whether clauses relating to active banks’

transactions are entered and updated in the

Power of Attorney/Resolution Register

maintained in the System. (Para 5.83)

iii. While opening Accounts, whether

formalities/requirements of Para 5.17 to 5.19

of DAD Manual, 1999 have been complied

with and documents scrutinized as per

provisions of Para.

iv. Whether instructions of circulars issued in this

regard have been adhered to?

3 Specimen Signatures

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i. Whether the specimen signatures of account

holders are obtained on sheets in form DAD

241 and kept in current database and updated

whenever there is a change?

ii. Whether the specimen signature cards are

signed with date by Manager/Asst. Manager

after verifying the signatures of attesting

officials. (Para 5.25)

iii. Whether the signatures of authorized officials

have been captured and kept in current data

base created in the system for the purpose?

(Para 5.25)

iv. Whether the specimen signatures cards of

account holders, after capturing in the system,

are kept in a binder and handed over to

Manager /AGM for safe custody?

v. Whether an account of these cards is

maintained and the binder is sealed and kept

in the vault or fire proof safe? Whether an

entry has been made in this regard in the

Document Register in form DAD-014? (Para

5.26)

4 Inoperative / Closure / Transfer of

Accounts

i. I

. Whether there is any Current account which

has not been operated for 3 successive

accounting years? (Para 5.52 )

ii. I

I

.

If any account has been closed, whether due

procedure was followed ?(Para 5.54)

iii. I

I

I

.

In case of transfer of a current account from

one account owning office to another, whether

due procedure was followed?

B ACCOUNTING SYSTEM

i. Transaction of CDS (ITP) if any may be

checked.

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ii. Whether in the case of Suspense and Sundry

Deposits Accounts – other departments report

their balances under these two accounts

weekly for reconciliation/confirmation?

iii.

Exception transaction report should be

checked by concurrent auditors and it should

be ascertained that proper approval has been

taken from the respective Head of Department

prior to posting of such entries in the

respective accounts.

iv. Periodical review of outstanding entries in

transit accounts such as Suspense, Sundry

Deposits, EMD, Security Deposits, Drafts

payable, Payment Order Accounts, DDRR,

CFC, Clearing Accounts (Clearing House

Balance Account, Clearing House Account,

Clearing House Balance – NEFT and Clearing

House Account-CTS) and outstanding bills of

charges. Transfer to Commission Account –

Sundries. Whether RD’s approval for entries

outstanding in Sundry Deposit / Suspense

Account for more than two months taken?

Whether there is follow up with all originating

departments for timely reversal of entries in

these accounts? The Concurrent Auditors

should not only give the status of these

accounts but also comment on the reasons for

the entries remaining outstanding beyond the

prescribed period and the action / inaction of

the department.

v. Whether items outstanding for 3 consecutive

accounting years are transferred to

“Commission Account – Sundries” and unpaid

half -value balance transferred by Issue

Department to “Commission Account –

unpaid half value- Issue Department” after

three clear months excluding the month of

entry as per letter DCM(NE) No. G. 6/

08.01.04/ 2011-12 dated September 08,

2011?

vi. Commission Account, Discount Account,

Exchange Account, Interest Account,

Charges Account, Dead Stock Account etc. –

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Whether entries have been booked correctly

in terms of amount, correct subhead of

account, carrying appropriate sanction, etc?

C CHEQUES

1 Processing of cheques

i. Whether Manual Provisions are followed in

case of payment of cash cheques. (Para 5.32

and 5.33).

ii. Whether Manual Provisions are strictly

adhered to in case of transfer/clearing

cheques?

(Para 5.35)

2 CTS

i. Whether Manual Provisions and guidelines

issued from time to time are strictly adhered

to in case of CTS Cheques?

ii. Whether all cheques received for collection

have been truncated and images sent for

clearing the same day?

iii. Whether credits to payee accounts have been

afforded without delay?

3 Cheque Return

i. Whether the cheques found not in order are

returned unpaid promptly along with an

Objection Memo in form DAD 015? (Para

5.37)

D TRANSACTION AUDITING

i. After the implementation of CBS, transactions

are being posted by the concerned

departments. It should be ensured that

Expenditure rules, CO instruction/references

have been checked from the

sanction/approval notes while posting the

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transactions at the entry originating

department and the same has to be

authenticated by the concurrent auditors.

Concurrent Auditors should also check and

ensure that all the transit accounts are

nullified on day to day basis and

discrepancies if any, need to be reported and

reconciled at the earliest. For all transactions,

especially high value transactions, concurrent

auditors should ensure that necessary

approvals from Head of Departments are

verified and kept on record.

E USER ADMINISTRATION

i. Concurrent Auditors may verify that system

administrators of the respective departments

maintain and update all the signatures of

officials posting / authorizing vouchers /

transactions in their departments regularly

and at least on a monthly basis.

F GENERAL & CLEARING SERVICES

1 General

i. Whether DD applications are received in the

prescribed forms and approved by authorized

officials?

ii. Whether the passing official is subjecting

applications to the prescribed verifications

and subscribing his initials on the application?

(Para 6.10)

iii. Whether authorization of the transactions

(issue of draft) is done after (i) ascertaining

that cash has been received (ii) after

instruments are cleared/Govt. A/c. concerned

debited? (Para 6.14, 6.15 and 6.16).

iv. Whether remittances have been drawn on

offices /agencies correctly?

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v. Whether signatures of officials authorized to

sign on DDs issued on SBI & its associate

banks are being forwarded to these agency

banks in time? Whether changes in

signatories are being communicated in time to

the agency banks?

2 Outstanding Drafts

i. Whether Drafts Payable Accounts are being

regularly monitored?

ii. Whether items outstanding for three

consecutive years in the “Draft Payable

Account” transferred to the “Commission

Account – Sundries” as per Manual

Provisions? (Para 6.51).

iii. Whether outstanding drafts in the draft

schedules are agreed by the System daily

with the balance in the Draft Payable Account

in the General Ledger. Whether list of

outstanding DDs is generated and put up to

the RD/GM quarterly?

iv. In case a lost draft is paid, whether the issuing

office was advised of the payment?

3 Payment of Drafts:

i. Whether the validation checks/other

precautions as enumerated in the Manual

have been carried out while making payment?

(Para 6.44 and 6.45). All DDs issued and DDs

paid should be captured in the respective

reports.

ii. Whether drawee’s signature is cancelled

while passing drafts received through clearing

or transfer mode for payment. (Para 6.47).

(For instruments received in physical form).

4 Issue of Demand Drafts in lieu of expired /

lost DDs:

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5 Recording of Stop Payment of Drafts:

i. A stop has not been recorded

ii. A duplicate thereof has not been issued

before revalidation is done and it is noted

against the original entry in the terminal under

the authentication by Asst. Manager.

iii. Whether prescribed procedure followed while

recording “Stop” issued? (Para 6.69 and Para

6.99)

6 Alteration in the name of payee – Drafts

i. In case of alternation in the name of the

payee, whether the prescribed course of

action has been followed (para 6.97). Whether

SBI is being informed of all such changes in

DDs issued on SBI?

G LOANS AND ADVANCES SECTION

1 Maintenance of Books

i. Whether the balances in loan ledgers are

tallying with GL balances?

2 Loan Application and Document

i. Whether the prescribed form No. DAD 286 is

submitted by the banks/corporations while

seeking the loan facility? (Para 7.7)

ii. Whether prescribed documents submitted by

the borrowing banks?(Para 7.50 & 7.56)

iii. Whether the documents received from the

borrowers are proper and DP Notes are

renewed? (Para 7.30).

iv While arriving at the entitlement under Export

Credit Refinance (ECR), whether instructions

issued by MPD are being followed? (CO

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circular No. MPD. BC.223/07.01.279/2002-03

dated 29.10.2002 and subsequent

instructions, if any).

v. Whether the loan applications are being

processed as per Manual Provisions?(Para

7.8)

vi. Whether the loan applications are being put

up to AGM/Manager along with the Direct

Liability Ledger (Para 7.12 of BDM).

vii. Whether the prescribed procedure followed

while accepting Repayment/part re-payment

of advances? (Para 7.16 to 7.20).

3 Interest

i. Whether interest on loan is calculated and

recovered at monthly rests on daily balances

in respect of loan accounts by the product

method and summary accounts are

maintained in each category of advances to

exercise check on products? (Para 7.37)

ii. Whether MPD instructions are being followed

for levy of penal interest?

H FOREIGN ACCOUNT SECTION

1 Letters of Credit (LC)

i. Whether claims submitted by banks are

reimbursed within a reasonable period of time.

ii. Whether claims submitted by banks are in

order.

iii. Whether duplicate payments are made for the

same LC.

2 Others

i.

Payments made to foreign institutions should

be cross checked and ensured that it is as per

instructions.

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I PAYMENT ORDERS/BANKER’S CHEQUE:

1 Whether the Payment Orders are passed

and paid as per the instructions contained

in DAD? (Para 4.49 and 4.50).

i. While issuing PO, whether signed by AM. (If

it is more than Rs.1 lakh whether jointly signed

by two Officers viz., AGM and DGM/GM or

Officer-in-Charge/CGM)-(Para 4.48 of BD

Manual).

ii. While making payment, whether it is ensured

that the Bankers’ Cheque is in order and the

same entered in the System for debit to

Payment Orders account. Whether an officer

other than the one who had signed it at the

time of its issue has scrutinized the same and

authorized the transaction (Para- 4.50).

iii. Whether the balances in Payment Orders

Register are being tallied with the Payment

Orders A/c. in the General Ledger every

week? Whether the list of outstanding entries

is generated at the end of each month and

agreed with the balance of the relative

account in the General Ledger – whether the

list submitted to GM/DGM for scrutiny and

orders –? (Para 4.53).

iv. Whether the Payment Orders outstanding for

over three consecutive accounting years are

transferred to the separate file in the System

in the name of ‘Commission A/c. – Sundries’

in the first week of July every year after

obtaining GM/DGM’s orders and passing

necessary entries? (Para 4.54).

2 Issue of Payment Orders/Bankers

Cheques in lieu of lost/ expired

instruments:

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J Ensuring correctness in Weekly Statement

of Affairs (WSA)

i. Whether statement of affairs report and

weekly abstract of statement of affairs report

is balanced on daily basis?

ii. Whether figures reported under various heads

in the statement of affairs report and weekly

abstract of statement of affairs report are

tallying with the respective GL Balance?

iii. Whether figures reported under Central and

State Government account is tallying with the

Government account balance report of CAS

Nagpur?

iv. Whether balance in current account of

government with respect to transaction

undertaken by RBI is transferred before EOD

of the last working day of the respective month

or a day prior if the last working day is a

holiday. And also whether loan account of the

government is transferred along with above?

v. Whether balance in government account with

respect to transaction undertaken by Agency

bank is transferred before EOD of the l1th day

of the succeeding month or prior day if the 11th

day is a holiday?

vi. Whether the figure appearing in notes on

asset side of WSA is correct?

vii. Whether the figure appearing in rupee coins

and small coins is correct?

K National Pension Scheme

Whether all the employees covered under

NPS have obtained PRAN, got it tagged to

RBI and the details have been communicated

to Samadhan:-

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a) No. of employees covered under NPS

who are yet to obtain PRAN/get it tagged to

RBI as at the beginning of the month.

b) No. of employees who have obtained

PRAN/tagged to RBI, during the month.

c) No. of employees who are yet to obtain

PRAN/get it tagged to RBI as at the end of the

month

Scope of Audit for Government Banking Department

Sr. No.

Particulars Compliances

Yes / No

Audit Observations

1. Receipts-Cash/ Clearing/Transfer

i. (i)

Whether scrutiny of challans is done as per prescribed procedure.

ii. (ii)

Whether cheques received drawn on other banks are presented in the outward clearing on the same day of receipt?

iii. Receipt scrolls are duly forwarded to Government departments along with receipted challans without delay.

iv. Whether receipted challans are handed over to the depositors after realization of cheques in clearing?

v. Whether balancing of cash and

maintenance of relevant record is

done regularly and satisfactorily.

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vi. Instruments returned by drawee banks for technical reasons or fault from the side of RBI such as not affixing clearing stamp, etc. are represented early.

vii. Records maintained for cheques presented in outward clearing and returned unpaid by drawee banks.

viii. Whether paid instruments and receipts are checked with the respective scrolls?

2. Short Credits

i. Whether the Section has entered all Short Credit cases received from PAD counters in the Register and sent promptly to SBI / other Regional Offices for realization?

ii. Whether outstanding pay-in slips / challans / credit vouchers are tallied with outstanding items in the register of short credits dispatched to the outstation Offices/banks at fortnightly intervals?

iii. Whether a list of outstanding entries is prepared at fortnightly intervals and put up to DGM/GM of Banking Department for his perusal and appropriate action taken?

iv. Whether follow up action is taken in respect of long pending cases? Whether letter is sent on monthly basis to the head of controlling offices of banks providing details of long pending short credit cases?

v. Whether the Section has entered all S.C. cases received from other Regional Offices and taken prompt action to realize them and accounted for?

3. a) Payments–Cash/Clearing/Transfer

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i. b) Whether the Personal Ledger A/c, Drawing and Assignment A/c. are maintained properly in the register/system and the drawls, with all relevant particulars are available therein?

ii. Details about cheque book

intimation received from

Government departments are

properly recorded in the system.

c)

iii. Whether the signatures of drawing

officers are recorded in the system

and they are verified while passing

the cheques?

d)

iv. Before dishonoring cheques

whether they are recorded in the

Register meant for the same and

orders of Departmental in Charge

obtained.

v. e) Whether Department had verified the genuineness of the letter of credit advice received from the accounting authorities?

vi. f) Whether the confirmation of balance was obtained from the Personal Ledger A/c. holders periodically.

vii. g) Whether STOP payment register is maintained and precautions are exercised?

viii. h) Whether stop instructions are duly recorded in the e-kuber system?

ix. i) Whether the interest payment scrolls along with paid warrants forwarded to PDO in time for marking off and they are serially numbered and duly authenticated?

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x. j) Whether the Date-wise Monthly Statement (DMS) are sent in time to accounting authorities.

xi. k) Whether drawing officer’s signatures are available in the system and updating of the signatures of drawing officers done every year as per the PAD Manual?

xii. l) Paid instruments are stamped properly and sent to concern Government Departments on the same day or next working day?

xiii. m) All ECS/NECS mandates received for debits or credits to Government Accounts are duly accounted for?

4. Demand Draft Received for Realization A/c / Cheque for Collection A/c

i. Whether large numbers of entries are pending for reversal; if so, reasons therefore.

ii. Whether the assistance of Clearing House was sought in taking the image of the cheques/MICR cheques, listed but not received cases and vice versa ?

iii. Whether proper efforts are made to reconcile/wipe out entries outstanding for a longer period.

iv. Whether the outstanding items parked in the Demand Draft received for realization account are reconciled and tallied with the figures available in DAD.

v. Whether Cheques for collection a/c is operated by the department and balance reconciled regularly? Whether any long outstanding debit & credit entries parked in internal accounts?

vi. Whether any long outstanding

unreconciled entry parked in any

other internal accounts?

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5. Payment towards import letter of

credit

i.

Whether PAD is authorized to make

payment to PSBs/nationalized

banks towards letter of credit by the

Govt. Officials?

ii.

Whether a register is maintained to

record all the details of L/C (with

regard to import) and payment

made against them?

iii.

Whether the specimen signatures

of the Govt. Officials are available

in PAD for verification and whether

they were duly verified before

making payments?

6. Special Deposit A/c. – 1975

i.

Whether fresh credits other than

interest accrued were stopped after

1.4.1997?

ii.

Whether interest claim was

supported by payment scroll in the

prescribed format?

a)

Whether interest applied at

the appropriate prevailing

rate?

b)

Whether a certificate was

obtained from the

claimant's internal

auditor/statutory auditor

regarding the correctness

of the claims in respect of

the amount of yearly

interest paid to the

Fund/Trust on the Special

Deposit Scheme A/c?

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iii.

Whether premature withdrawal

from SDS A/c. was allowed by PAD

except for meeting obligatory

payments in terms of Para 9(b) of

SDS01 1975 as amended vide

Govt. of India Notification No.F-

16(8)-PD/84 dated 12.6.1985 and

our Circular No.GA-37/99-85/86

dated 8.7.1985.

iv.

Whether for withdrawals from SDS

A/c. to meet the obligatory payment

was supported by proper

documents, such as:

a)

Resolution passed with

regard to withdrawals in the

meeting of Board of

Trustees.

b)

Certificate to the effect that

the withdrawal sought is in

the same proportion in which

the investment of their funds

has been made in various

securities including SDS-

1975.

c)

List of members of the fund

indicating amounts payable

to them.

d)

Particulars in respect of

investments of the funds

made in various securities

including SDS-1975 as on

date.

7. Safe Custody of Articles

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i.

Whether Safe Deposit Register and

relevant files are maintained

properly; whether articles are

accepted from Govt. Offices and

Local Authorities and employees of

the Bank including retired

employees and families of

deceased employees; Whether

Safe Deposit Register is signed

jointly by AGM, Securities Section

and AGM, PAD.

ii.

Whether the articles kept under

safe custody are verified by

different officers who are not

maintaining their custody?

iii.

Whether fee is collected at the

prescribed rates in advance,

quarterly in case of boxes and small

packets and annually in case of

envelopes/ in case of default in fees

payment, parties are not allowed to

withdraw articles till the arrears of

fees are paid. Fee is not waived or

varied without the specific approval

of Central Office.

iv.

Whether the amount is credited to

“Commission A/c. – safe custody

fees”?

8. Agency transactions on account

of State Government

i. Whether Agencies Transaction is

posted up to date.

ii.

Whether in respect of Agencies

Transaction A/c. Agencies Bank-

wise Ledger and State Govt.-wise

Ledger are maintained.

iii.

Whether there is any delay in

reimbursing the claims of Agency

banks?

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iv.

Whether all the entries made in the

Day-Book, Subsidiary General

Ledgers and General Ledger are

effectively checked by the Asst.

Manager.

v.

Whether bank-wise, branch-wise,

monthly statement known as

monthly closing statements are

received from the Link Offices of the

banks authorized to conduct State

Govt. transactions.

vi.

Whether the link branch of the

nominated bank is sending

separate daily advices/statements,

one for reporting previous month’s

transactions and the other for

current month’s transactions.

vii.

Whether a separate register styled

‘Agency Transactions –

Discrepancy Adjustments’ is

maintained to record the amounts

of discrepancies in the transactions

reported for previous months after

the closure of that monthly account.

viii.

Whether the discrepancy amounts

advised by AGs (pertaining to

various agency banks) are

promptly debited/ credited to bank

accounts?

ix.

Whether system of tallying the daily

transactions reported by banks with

reference to net debit/credit to

Govt. A/c. is followed by PAD.

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9. Payment of Turnover

Commission

i. Take out certain cases on random

basis; verify the calculations

applying the prescribed rate.

ii.

Whether the claim of turn-over

commission is prepared within the

stipulated time set for it? In the

cases of belated claims, whether it

is routed through the Controlling

Office of the branch concerned.

iii.

Whether PAD is maintaining bank-

wise record of turn-over and before

making payment? Whether the

turn-over amount on which the

commission is payable is checked

with reference to the record of PAD.

iv.

Whether the correct Head of

Account is debited for payment of

turn-over commission i.e. Agency

Charges A/c – Turn-over

Commission (payable on account

of Govt. turnover)

v. Any delay in payment of Agency

Commission to banks

10. Payment of High value Govt.

cheques

i.

Are the Payment Sections taking

proper care while making payment

of high value cheques of Rs.5 lakh

and above like confirmation from

the cheque issuing authority/ies?

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ii.

Whether payment cheques are

passed at various levels of

authorities based on their

amounts?

11. National Pension Scheme

Whether all the employees

covered under NPS have obtained

PRAN, got it tagged to RBI and the

details have been communicated

to Samadhan:-

a) No. of employees covered

under NPS who are yet to obtain

PRAN/get it tagged to RBI as at

the beginning of the month:

b) No. of employees who have

obtained PRAN/tagged to RBI,

during the month:

c) No. of employees who are

yet to obtain PRAN/get it tagged to

RBI as at the end of the month

Scope of Audit for Public Debt Office

Sr.

No Particulars Compliances Audit Observations

1 Warrant Writing Section

i) Whether the balances of various

interest warrants are properly

recorded in the register, verified

and tallied with physical balance

periodically, 0020 as prescribed?

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ii) Before issue of warrants/payment

through electronic modes, whether

the securities tendered were

examined as per Para 4.3 of the

PDO Manual?

iii) Whether the time barred interest

warrants are marked off in CBS

promptly and there is no

delay/backlog in marking off time-

barred interest warrants?

iv) Whether it is checked that the paid

warrants on RBI are automatically

marked off in CBS at the time of

repayment?

v) Whether Register of Unclaimed

Interest Warrants (PDO 79) is

maintained [Para 9.13(a) of the

PDO Manual] and reminders are

sent to the parties in respect of

Bonds/Pay orders/Warrants lying

at the counter undelivered and

transferred to Unclaimed account

as per the prescribed procedure

laid down in Para 2.22 (a) of the

PDO Manual?

vi) While making repayment/payment

of interest through electronic

mode, whether proper mandate to

that effect/prescribed documents,

branch and bank account details,

as required in terms of Paragraphs

9.15 and 9.17 of the PDO Manual,

were obtained from the investors?

2. CORRESPONDENCE SECTION

i) Whether maintenance of

“Recoverable - Central/State

Government Expenses, Public

Debt (8905014)” Account Register

is proper and periodical agreement

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is done with DAD at the end of the

each & every month.

ii) Whether the balance in transit

account is verified on the General

Balancing days?

iii) Whether the transit account

register in PDO 168 is properly

maintained to ensure that:

a) The entries in the register are

checked and watched for the

return of the securities by the

Section.

b) Whether the Officer-in-charge

scrutinizes the register at least

once every year to see that no

securities, sent out through the

transit account, are overdue

and to ensure that cases of

overdue securities are properly

pursued (Para 15.6 of the PDO

Manual)?

iv) Whether the unspent

postages/franking amount are

reversed to Charges Account at

the end of each accounting year?

v)

Whether “Recoverable -

Central/State Govt. Expenses -

Public Debt (8905014)” account

has outstanding entries and the

entries are in agreement with the

balance in Suspense A/c with DAD

and matching thereof is done

periodically?

3. BOOK-DEBT SECTION

i) Whether the report on interest due

on securities is being generated

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from the system as per applicable

shut period?

ii) a) In the case of interest paid by

means of draft being returned

undelivered, whether it is entered

in a register (PDO 97) promptly

b) In such cases, if no claim is

received, whether the draft is

cancelled and payment obtained

from DAD and credited to

Government account? (Para 9.11

of the PDO Manual)

iii) Whether appropriate remarks have

been made in the system or in

some other way to indicate the

reasons for the return of interest

warrants, as required vide Para

9.13 (a) of the PDO Manual?

iv) Whether the Special Cancellation

Advices and cancelled securities

received are properly entered in

CBS and the relevant securities

marked off from CBS?

v) Whether cancellations on account

of repayment are checked /

authenticated by Officer Gr. ‘B’?

4. ACCOUNTS SECTION

i) Whether the following registers are

maintained:

a) General Ledger

b) Checking of the posting of

vouchers in General Ledger on

daily basis.

ii) Whether Rupee Debt statements

generated from CBS at quarterly

intervals are checked for accuracy

and sent to CDD, IDMD, CO?

iii) Whether the Index Register of

Renumbering Advices are being

maintained in CBS and Special

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Cancellation Advices received

from other PDOs are scrutinized by

the Officer-in-Charge before the

10th of every month to ensure that

all the securities cancelled by other

PDOs during the previous month

have been received and entered in

CBS and necessary action taken?

iv) Whether there has been any

writing off of the balance in

Discharged Loan. If so, whether

instructions for the same were

received from DGBA, Central Debt

Division? (Para.10.14 of the PDO

Manual).

v) Whether there was any case of

writing off of unclaimed securities.

If so, whether Government orders

were received through the IDMD,

CDD in terms of Para 2.24(b) and

10.13 of the PDO Manual?

vi) Whether the Securities Discharged

at Treasuries/Agency branches are

properly entered in CBS under

Consolidated Issue Register and

whether the balance of loan is

reduced in the system? (Para

10.16 of the PDO Manual).

vii) Whether the cancelled securities

are punched as indicated in

Paragraph 10.31 of the PDO

Manual, 1999 and a Certificate

regarding punching and

destruction of punched portions

recorded in the register PDO-65

under authentication of Assistant

Manager?

viii) Whether the department is

generating list of loans due for

repayment from system one month

in advance & notifying the

authorities concerned and loan

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balancing undertaken before

repayment as per the applicable

shut period?

5. LOAN BALANCING SECTION

i) Whether the outstanding balances

of discharged loans are tallied with

General Ledger balance as

contemplated in Para.12.2 of the

PDO Manual?

ii) Whether the statement of

agreement of loan balances are

compiled without delay and

properly certified as per Para 12.3

of the PDO Manual?

iii) Checking of repayment of all Loans

pertaining to Central & State

Government.

6. RECORDS SECTION

i) Whether paid warrants and

vouchers are arranged as per the

PDO Manual Paragraphs 18.9 and

18.10 respectively and destroyed

after preservation of six years from

the year of payment by shredding

in the presence of the

AGM/Manager and an Asst.

Manager after obtaining formal

sanction of the DGM/GM? (Para

18.11 of the PDO Manual).

ii) Whether a certificate of destruction

is recorded in the relative

registers?

iii) Whether the balance arrived at in

Index Register of cancelled

securities tallies with General

Balance Book?

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7. VOUCHER AUDIT SECTION

i) Whether there was delay in posting

of vouchers in Check Registers?

ii) Whether Manuscript Register

regarding percentage check by

Assistant Manager is maintained?

(Para 17.5 of the PDO Manual).

iii) Whether paid warrants are

received from PAD promptly on the

following day? {Para 17.2(a) of the

PDO Manual}. Further paid

warrants received from PAD were

marked off and report was

prepared and submitted to A.G.M.

iv) Whether progress reports in

respect of voucher audit reports in

PDO 218 are sent to Central Office

( Central Debt Division), half -

yearly in time every year [Ref.

Para17.11 (a) of the PDO Manual

read with circular letter D.O. DT.

Adman. 6 (6) /171/92-93 dated

August 14, 1992?

v) Whether suitable remarks were

made in CBS in respect of

deceased holder?

8. NEW LOAN SECTION

i) Whether the statement of loan

charges was correctly compiled

and checked by the Asst.

Managers, signed by the Verifying

Officer and then forwarded to the

CDD, DGBA or the parent PDO as

the case may be, within one

months from the date of floatation

of the loan? (Para 19.32 of the

PDO Manual).

ii) After intimation from C.O. relating

to the floatation of new State loans

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and acceptance of bids, whether a

statement generated from CBS

was sent to Accountant General

concerned and the balances

confirmed by them during the

period of audit?

9.(A) RELIEF BOND SECTION

i) Whether all the bank branches

nominated to accept subscriptions

towards Relief Bonds/Savings

Bonds are submitting monthly

statement in form given in

Appendix IV of the Scheme with

the particulars of Bond Ledger

accounts opened?

ii) Whether the Section was

scrutinizing the monthly statement

received from bank branches with

reference to the statement of

credit/credit advices received from

CAS, Nagpur and matching the

entries to ensure that the

subscriptions received by Link cells

of Agency Banks have reached to

CAS, Nagpur. Whether

discrepancies were found due to

retention of the collections at the

branch without remitting the same

for credit to Govt. A/c. at CAS

Nagpur and if so whether the

bank's a/c. with DAD was debited?

iii) Whether vouchers for

subscriptions received by agency

banks passed each month and

record thereby kept in the Register

of Bond Ledger A/Cs (Appendix ix-

Paragraph 3.2 of Memorandum of

Procedure)?

iv) Whether the reconciliation of

various Relief Bond Schemes is

done from time to time?

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v) Whether the Issue Register / Bond

Ledger Account Register, also in

respect of Bonds issued by RBI are

properly maintained in CBS?

vi) Whether recoverable Central /

State Govt. Expenses Register

have any outstanding balances?

9.B Repayment of Relief Bonds

i) Whether time schedule prescribed

in the Citizens’ Charter is followed

in respect of payment of bonds?

ii) Whether the interest warrants and

ECS/NECS/NEFT files generated

from CBS are checked for the

amount of maturity and broken

period interest?

iii) Whether vouchers are verified on

daily basis and whether the

vouchers are marked off on regular

basis?

iv) Verify the record of Cancelled

Bonds and sent to Record Section.

10. SUBSIDIARY GENERAL LEDGER SECTION

i)

Whether Delivery Versus Payment

System exists and bouncing of

transaction in SGL or funds

account, if any, took place? In such

case(s), whether the penal action

was taken (Para 11.5 of the PDO

Manual)?

ii) Whether the required approval is

taken for VFT cases.

iii) Whether there is a system of

surprise check (on weekly basis)

by DGM/GM in respect of all

transactions put through by SGL

Section and of reporting his

findings to RD, as required in terms

of Para 11.9 of the PDO Manual?

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iv) Whether repayment of holdings in

SGL A/C is done as prescribed in

Para 11.7 of the PDO Manual?

11. GENERAL

i) Whether test check of important Registers by MGR/AGM carried out and particulars thereof recorded in a scroll book? [Para 2.29(b) of the PDO Manual].

ii) Whether a register for spoilt interest warrants is duly maintained and authenticated by AM while entering the details of spoilt warrants?

iii) CA should verify the amount drawn and debit of correct account Head.

iv) Verify the Treasury Bill transactions-issue, transfer, discounting and repayment.

v) Whether monthly balancing of GL

is done with CBS?

vi) Whether all the expenditure entries

pertaining to charges account

originated from the department

have been taken to CBS?

12. STOP PAYMENT

i) Whether the department has been

maintaining a record of the “Stop”

payment notices/ advices as well

as removal of “Stop” payment

notices/advices received against

securities in the register in form

PDO 156 and also in the system?

ii) Whether ‘STOP’ advices received are properly recorded?

.

iii) Whether there is a system of reviewing the “Stop” cases at quarterly intervals under direct supervision of the CGM/GM/DGM (wherever HOD is DGM)?

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iv) Whether a brief report on the

monthly & quarterly review of

“Stop” cases has been sent to

IDMD, CO by the 10th of the

following month?

13. TAX DEDUCTED AT SOURCE

i) Whether all expense vouchers originated from the department have been taken to the charges account in CBS?

14. COMPLIANCE TO PREVIOUS REPORTS

i) Whether compliance to any

previous report is received and

Action Paragraphs are duly

complied with.

15. INFLATION INDEX NATIONAL

SAVING SECURITIES –

CUMULATIVE

i) Whether any premature

redemption has been initiated by

agency bank in IINSS-C?

ii) Whether the interest & principal

amount on premature redemption

is properly calculated and paid by

the

system?

iii) Whether the NEFTs has been

rejected/ returned by the system?

iv) Whether returned NEFTs have

been reinitiated?

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v) Whether system is properly

accumulating the interest in the

interest accrual statement of the

Investors ?


Whether all the employees


PRAN, got it tagged to RBI and

the details have been

communicated to Samadhan:-



PRAN/get it tagged to RBI as at

the beginning of the month:



during the month:

c) No. of employees who are

yet to obtain PRAN/get it tagged

to RBI as at the end of the month

Scope of Audit for Estate Office

Sr. No


Yes / No Audit Observations

1. Sundry Deposits Account

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i.

Whether Sundry Deposit a/c register

is maintained in the prescribed

format.

ii. Whether any outstanding entries for

more than Two months noticed.

iii. Whether there is any outstanding

balance as at month end.

2. Suspense Account

i.

Whether Suspense account

register is maintained in the

prescribed format.

ii. Whether any outstanding entries for

more than 2 months noticed.

iii.

Whether there is any outstanding

balance as on last day of the

month.

3. Earnest Money Deposits.

i.

Whether Earnest Money Deposit

A/c register is maintained in the

prescribed format.

ii.

Whether the amount is transferred

to Security Deposit Account after

allotting the work to the successful

bidder.

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iii. Whether any outstanding entry for

more than one year noticed.

4. Security Deposits.

i.

Whether the Security Deposit

Account has been maintained and

the security deposit due for refund is

being realized in time.

ii.

Whether Retention money deducted

from the contractor’s bills at the time

of payment of bills is credited to the

security deposit account and

retained till the Defect Liability

Period (DLP).

iii.

Whether Security deposits due for

refund is being refunded in time and

there are no outstanding entries for

more than three years noticed.

5. Reconciliations.

i.

Whether reconciliation of Sundry,

Suspense, EMD and Security

Deposit Account tallied with General

Ledger balance maintained with

DAD as on 1st May, 2019.

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6. Insurance of Bank Properties

i.

Whether the properties have been

properly insured and the same is

renewed on yearly basis in respect

of dead stock, laptops, computers,

cell phone etc.

ii.

Whether the properties have been

properly & adequately insured to

see whether there is any Omission

and whether it is renewed

periodically

iii.

Whether the statement regarding

items insured, sent to Central Office

Premises Department.

7. Paid Bills.

i.

Whether Bills are entered in the

Inward Bills Register properly

scrutinized and necessary pay

orders obtained.

ii.

Whether ‘PAID’ stamp is affixed on

all copies of the bills including

duplicates, sanction notes, etc. to

guard against payment /

presentation again.

iii. Whether contractual provision for

tender work are properly followed.

8. Income Tax/ Other Taxes.

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i.

Whether TDS is deducted as per the

specified rate in Income Tax Act,

1961 and credited to Govt. Account

in time?

ii.

Whether payment of statutory dues

(Water Tax, Municipal Tax etc.) was

correctly made.

iii. Whether income tax recovered

wherever applicable.

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9. Inward Bills Register.

i.

Whether inward bills register and

Outstanding bills register is maintained

and put up to DGM/GM.

10. Bank Guarantee (BG) Register.

i. Whether Bank guarantee register is

maintained and updated.

11. Sanction Registers. It is necessary.

i.

Whether Sanction Register is maintained

properly and put up to the next higher

authorities at prescribed time.

12. Property Registers are maintained.

i. Whether property bill register is

maintained.

ii. Whether the Payment made towards

property tax is in order.

iii.

Whether electricity bills of office/staff

quarters and telephone bills of office are

paid correctly and on time.

iv. Whether renewal of lease agreement was

done on time.

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13. Repairs to Kitchen Equipment

i.

Whether prior permission of AGM in

charge of maintenance is obtained for

repairing kitchen Equipment in the

employee’s canteen as well as Officer’s

Lounge (OLDR) as per Central Office

Circular.

ii. Whether Expenditure rule have been

followed.

14. IT Cell. It is required only in case of IT

Cell AUDIT REPORT

i.

Whether reconciliation in respect of

Computer & Printers is done between

main Inventory register & Inventory

register with IT Cell.

15. Capitalisation of Project

i.

Whether any project has been capitalized

during the month and has it been done as

per the extant guidelines.

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16. Maintenance of Diesel Consumption

Register

i. Whether Diesel Consumption Register is

maintained.

ii. Whether physical verification of stock of

diesel is carried out during the month.

17. Depreciation

Whether the depreciation is provided on

property or not.

18. Major construction Projects (IN CASE

OF MAJOR WORKS ONLY)

i. Whether any major construction project

undertaken during the month.

ii.

Whether periodical surprise checks are

conducted

iii.

Whether recoveries towards income tax

are made from the contractors running

account bills at prescribed rates.

19.

Whether the following registers are

maintained as required (ONLY IN

RESPECT OF MAJOR PROJECTS)

i. Cement Register

ii. Project Register

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iii. Register Showing payments made to

contractors

iv. Subsidiary register for recoveries

affected from contractors running bill

v. Variation Register

vi. Hindrance Register

vii. Register for issue of Measurement

Books

viii. Register for issue of Drawings

ix. Site Inspection Book

x. Down Time Register

20.

Whether the instructions laid down

in the PD Manual regarding

maintenance of Measurement books

were strictly followed

21.

i.

Whether records on various

insurance covers taken for

construction work and on workers

by the contractors are maintained.

ii.

Whether payments against bills of

the contractors are made after

obtaining insurance covers.

iii.

Whether insurance covers have

been duly extended without any

break till the period of completion

of the project work

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22. Whether proper estimates are

prepared before awarding contracts.

23. Before allowing payment of bills,

whether the following are verified

i.

Advance against material collected at

site, incorporated/utilized in the work

later on is scrutinized in the context of

quality of material, quantity of material,

rate aspects.

ii.

Running account / final bills. It is to be

ensured that the percentage test

checking of measurement as delegated

to respective officials (Engineers) has

been done or not

iii.

It is to be ensured that the validity of the

contract has not expired. In case of

expiry of contract, whether the

contractor has made application for the

extension and the same has been

recommended and forwarded to

Central Office by the local office.

iv. The bill being processed is for the

minimum value stipulated in the tender

v.

The appropriate amount towards

electricity, water, telephone etc.is

recovered from the bill payable to the

contractor.

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vi.

Proper accounting entries are passed,

in particular, in regard to cement and

steel on its purchase / Consumption.

24.

While Inviting Competitive offers for

procurement of cement and steel,

whether norms prescribed are

observed.

25.

Whether records to show high as

well as low rates quoted by the

renderer maintained.

26.

Whether test certificates for major

electro mechanical equipment’s

have been received before making

payments.

27.

Whether excise duty, gate passes in

original, have been submitted for

various electro mechanical

equipment’s attracting excise duty

before releasing RA/Final Bills

28. i.

Whether the cell is maintaining all

prescribed records and furnishing

periodic reports to central office.

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ii

Whether maintenance contracts of

holiday home are renewed in time

and for reasonable amount.

29. Dead Stock

i.

Whether register of recurring

expenditure on maintenance of

machines is maintained and perused

by the appropriate authority at

frequent/ periodic intervals.

ii. Whether capitalization of dead stock

articles was correctly done.

iii.

Whether new purchases (Rs.5, 000/-

and above) have been inventorised

and disposed of articles have been

written off / cancelled from inventory

list in CBS system.

30. Quotation Registers

i.

Whether Quotation registers are

maintained and opened on the due

dates without any delay.

ii. Whether Expenditure Rule have been

followed.

iii.

Whether prescribed procedure has

been called for quotations / tenders

from the approved list of contractors /

suppliers.

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31. Maintenance of Subsidiary Ledgers.

i.

Whether Subsidiary charges account

ledger, Suspense account, Sundry

Deposit ledger are maintained as per

Manual provisions, entries are duly

checked and authenticated by

AM/Manager.

ii.

Whether weekly reconciliation of

transitory account balances and

monthly reconciliation of charges

account balances was done with GL

balances on regular basis.

iii.

Whether entries in the subsidiary

ledgers were checked with the

supporting documents and the same

was found in order.

iv. Whether the payment is made by

ECS/NEFT

32. Annual Maintenance Contracts.

Whether AMC have been renewed

and properly recorded in the register.

33. Budget allocation – Expenditure

Review.

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i.

Whether expenditure incurred for the

month is as per budget allocation& the

same has been submitted to HRMD.

34. Disposable Unserviceable Articles

i.

Whether Dead stock articles treated as

Unserviceable are recorded in the

‘Register of Unserviceable Articles’ and

Orders obtained from the Competent

Authority for “Write-Off” for their

disposal as per procedure laid down in

PD Manual.

35. Registers Verified.

i. Sundry Deposits Account Register.

ii. Security Deposits Account Register.

iii. EMD Register.

iv. Register of Inward Bills

v. Quotation Register

vi. Register of Annual Maintenance

Contracts

vii. AC Plant stock Register

viii. Movement Register

ix. Dead stock Articles Register

x. Measurement Register

xi. Sanction Register

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xii. Properties Register

36.

Whether capitalization of

expenditure correct /wrong

classification of dead stock articles

and incorrect deduction of TDS etc.

if any, to ensure that sanctioning

power as per ER 2009 is diligently

exercised by various functionaries.

37.

Whether Physical and Financial

reconciliation of Dead Stock

articles/account had been done as

per the new fixed Asset Policy.

38.

VAT, Service Tax (if applicable) and

GST in the bills included may be

checked for accuracy.

39.

Items Capitalized, which are due for

charging Depreciation, are to be

checked for accuracy.

40.

Whether property tax dues in

respect of all properties are paid or

not.

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Scope of Audit for National Clearing Cell (NCC)

Sr.

No. Particulars

Compliance

Yes / No Auditor’s Observation

1.

Whether the balances in the

Suspense Account, sundry and

Charges Account maintained in NCC

reconciled with general ledger.

2. Whether unadjusted items remain

pending for long?

3. Whether inward bill register has been

properly maintained.

4. Verification of Bills paid

5. Whether Register of Bills Payable is being maintained?

6. Are there any bills outstanding?

41.

Whether water bills in respect of all

properties are paid or not.


Whether all the employees covered

under NPS have obtained PRAN, got

it tagged to RBI and the details have

been communicated to Samadhan:-



PRAN/get it tagged to RBI as at the

beginning of the month:


obtained PRAN/tagged to RBI, during

the month:

c) No. of employees who are yet to

obtain PRAN/get it tagged to RBI as at

the end of the month

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7. Whether proper deduction of TDS is done?

8. Whether Monthly Expenditure review for the month of May, 2019 has been submitted by the Centre?

9.

NPS(National Pension Scheme)

i) Whether all the employees


PRAN, got it tagged to RBI and the

details have been communicated to

Samadhan



PRAN/get it tagged to RBI as at the

beginning of the month:



during the month:

c) No. of employees who are yet

to obtain PRAN/get it tagged to

RBI as at the end of the month

(age-wise details as per

annexure):

Scope of Audit for Issue Department

Sr.No.

Particulars Compliance


I. CLAIMS SECTION

1. General

1 Whether all the notes received in the tender are accounted for.

2 Whether “Pay” and ‘Reject” orders are recorded appropriately.

3

Whether date and mode of payment are recorded.

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4

In case of discrepancies cases/ unsigned covering letters, whether laid down procedure has been complied with. The number of such cases observed during the month of audit & the action taken by the department should be commented upon. The CAs should ensure that reports are submitted with all the relevant data. The CAs before finalizing the report may discuss the same with the department concerned & ensure that the observations were based on facts.

5 Average time taken for adjudication of notes and remittance of exchange value to customers.

6

Whether there has been delay in remitting the exchange value of defective notes. Indicate the minimum and maximum time taken in normal course, with reference to date of receipt of a claim as also with reference to date of final adjudication of a claim and remittance of exchange value.

7

In case of “fate enquiry letters” checkup the case papers thoroughly to find out the reason for delay in remittance of exchange value as also whether there are any cases of wrong payments, etc.

8

Whether facility of receipt of TLR covers is provided upto 1 hour after closing and an Officer is available to sign on the TLR covers, issue receipts and guide customers.

9

Check the volume of notes tendered – denomination–wise–over a period and comment on unusual features observed, if any.

10 Whether counter receipt of Rs.500 and Rs.2000 mutilated notes is restricted to 2 pieces per tender in a day.

11

The record of surprise visits to exchange counters by CGM/ GM/ DGM Issue Department may be perused and commented.

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12

Whether rejected and half value paid notes are destroyed after the prescribed preservation period of 4 months after making relevant entries

2. Exchange Good Note (EGN)

1

Whether the balances in the Exchanged Good Notes Account has been verified on a monthly basis by jotting down the particulars from CL-9 Register and confirm the figure from DAD where these balance are actually held.

2

Whether the dates of the oldest entries outstanding in EGN has been checked to see if there is any undue delay in remittance of proceeds.

3. Half Value Paid Notes and Notes Adjudicated under Special Procedure

Whether only the case papers related therewith are verified to ensure that the notes have been accounted for properly.

4. Receipt by Post

Whether CL-7 and CL-8 registers are cross checked to see if the postal intimations received are properly marked off on collection of insured articles. Check whether these registers are being put up to the GM on regular basis, as required. Further, check to see if the insured covers containing notes collected from post office have actually been posted in CL-5 register and their IR number is recorded in CL-8 register.

5. Important Registers

1

Whether the following registers are checked thoroughly with reference to source of posting, their day-to-day postings at each stage as also cross-checking of day-to-day balances, as recorded in CD-17 register maintained by Asst. Treasurer (Claims). CL-5, CL-9,CL-35,CL-15,CL-17, CL-43 ,CL-44,CL-24.

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2.

The check may be confined to entries to all working days in a month for the period under audit.

3. Whether Claims Sundry Register is maintained.

6. Accounting System

1.

Whether check is conducted of accounts maintained in the section right from CL-5 register to CL-44 register, to see if the accounting system in vogue conforms to the one prescribed in Appendix B of Issue Department Manual as amended by subsequent circulars on the subject e.g. defective notes adjudicated under rule 9 (3) of note refund (Amendment) Rules

2.

Whether unclaimed balances in Re.1/- notes and Rs.2/- notes and above are transferred to Government of India Account and Commission Account respectively in time.

3.

Whether outstanding balance in half value paid account is credited to Central Office Account on quarterly basis, i.e. February, May, August, November each year.

4.

Whether there is any case of refund from Unclaimed Account. If so, to check whether the procedure has been followed.

5. Whether the balancing of forged notes received/ sent to CBI/ CID etc. are being carried out periodically.

7. Notes dealt with under Special Procedure - Preservation/Destruction thereof

1

Whether proper records thereof being maintained in CNV-14 register prescribed for the purpose. The total of Special Procedure covers awaiting audit/ destruction should be verified with reference to the outstanding entries in CNV-14 register. Verification may be done to see if the special procedure covers were destroyed after the prescribed period and completion of audit. In case of Special Procedure

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covers due for destruction, appropriate comments need to be recorded in the report.

2

Observe the functioning/ records of Consolidation-Cum-Verification Section (CCVS) to verify whether the notes are taken over from public counters and claims section as per the laid down quality /quantity checks for different denominations.

3

Whether the paid defective notes and non-re-issuable notes taken over from the Consolidation-Cum-Verification Section (CCVS) are destroyed in accordance with instructions.

II. RESOURCE SECTION

1. SCD Transactions

1.

Whether statistics of small coin in RES-13, RES-14, RES-15 & RES-16 are compiled and submitted and laid down in ID Manual.

2.

Whether balances and transactions in chests/ SCDs as per the record maintained by Accounts and Resource Sections match.

3.

Whether temporary chests are monitored to ensure closure or conversion into permanent chests within 6 months of opening.

4.

Assess the status of non-banking STOs over a period action taken by RO for ensuring their closure/ conversion to banking treasuries.

5.

Comment on the proactive monitoring and management of resource position across the chests. Whether remittances to chests in line with the stock position, allotment, indent etc.

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6.

Whether annual indent for notes/coins is forwarded to CO after receipt of consolidated indent of chests through their Link Offices and realistic assessment thereof including the expected issues over the counters of the office.

1 Whether surprise check of stock is carried out monthly

2 Discrepancies, if any, in Credit Notes issued.

III. CANCELLED NOTE VAULT

1. Preserved Note Packets/ Cases

1.

Whether proper record thereof is maintained in CNV-13 register and whether such cases are reviewed at quarterly intervals. Examine whether any packets/cases have been preserved for unduly longer periods, say more than one year, and if so, ascertain the reasons there for. The accuracy of the entries in this register should be checked with reference to cross-references in CNV-1 register and vice versa.

2. Irregularities detected in CCVS

1

Whether register for recording the irregularities as indicated in Annexure to Central Office letter DCM (NPD) No. 762/09.39.00/2003-04 dated January 17, 2004 is being maintained.

2 Whether irregularities detected and entered in V-5 have actually been copied in CD-91 register.

3 Whether unusual delays occur in rectifying the irregularities recorded in V-5 register.

4

Whether the irregularities recorded in V-5 register have been posted in CD-91 register and appropriate action taken against the employees at fault in cases

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of serious irregularities or repeated lapses.

5

If balances are held in Cancelled Note Vault, whether it is ensured that on a monthly basis the entries in CD-3 balances as on the date of audit tallies with CD-9 Register and the entries in CD-9 Register further tally with those posted in CD-88 Register. Further, it is to be ensured that the Joint Custodians conduct a monthly check and furnish a certificate to the GM/ DGM of Issue Department of the balances held under their custody.

IV. REMITTANCE SECTION

1. Mazdoor and Transport Contractor

1

Whether the proper rate analysis was done and the rates quoted for the operations handled frequently (connected with inward remittance) are not disproportionately high as compared to the rates quoted for the operations done less frequently as also no extra amount is payable towards detention, etc., on account of late running of train.

2 Whether the items of work/rates shown in the contract are not too many and are not vague.

3

Whether the certificates given on the bills by the officials viz. Station Duty Officer, Vaults in-Charge, etc., supervising the operations are specific/ proper and in accordance with the terms and conditions of the contract and not furnished in a casual manner;

4 Whether the bills clearly specify the various activities performed and correct rates have been applied

5

Whether the bills have been correctly scrutinized by both the Assistant Manager and passing official after verifying independently the record

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available in Remittance Section and the bills are settled without any delay.

6

Whether the bills receipt/payment registers are put up to General Manager/Deputy General Manager periodically

7

Whether the payment towards extra-ordinary/special item of work is done with the approval of General Manager/Deputy General Manager

8

Whether record of names and addresses of Contractor, contractor’s mazdoors maintained and their antecedents verified from police

9

Whether 100% of the paid bills for labour / transport contractor should be checked with related records to ensure that bills are paid correctly.

10

Whether the contract agreement and the process for engaging transport operator for coin remittances is verified. Whether it is ensured that the Bank Guarantee is current and covers the remittances.

11

Whether an analysis of expenditure on coin transport operator and labour / transport contractor over a period is done to check unusual features, if any

12

Whether analysis of Budgetary provision for remittance related expenditure and deviation there from is made.

13

Whether 100% of the coin transport contractors’ paid bills are verified in conjunction with related records evidencing the work performed and agreed rates as per the contract.

14

Whether independent record of the work performed by the contractor is maintained by Joint Custodians and SDOs.

15

Whether intimations with regard to inward and outward remittances are issued to Mazdoor contractor/Railway/Police authorities in

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time and in the Forms prescribed in Issue Department Manual.

16

Whether as per revised procedure currency chests are taking over notes upto Rs.100 denomination by counting of packets and bundles and only if desired, Rs.500/2000 by detailed examination @ 3 lacs pieces per day using note counting machines. Compliance to be observed and also compared with the duration of stay of potdars in some sample cases.

17

Whether the RS-1 & RS-2 registers on scheduled inward/ outward remittances maintained properly and is scrutinized to ensure that they are complete in all respect in terms of ID Manual 2004.

18

Whether advances are given to accompanying potdars keeping in view, the extant instructions for taking-over of the remittances by chests.

19 Whether analysis of overtime expenditure on remittances over a period is made.

20 Whether discrepancies in fresh note remittances are adjusted as per prescribed procedure.

21

Whether the reimbursement of bills received from Banks, Railways, Police Dept., office of the AG etc., on account of diversions/remittances (consequent to decentralization since 1st April 2003) are being settled promptly.

22 Whether 100% of the bills so received are checked to ensure against any irregularity.

23 Whether total expenditure incurred on the above, over a period and bank-wise, is analyzed.

24 Whether examining of security arrangements with regard to dispatch of notes is made.

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2. Potdar's Advance/Bills

1 Whether advances to Potdars are judiciously granted & RS-11 is maintained properly.

2 Whether additional advances drawn by Potdars at chests are properly accounted for.

3 Whether Potdar’s are prompt in submitting bills on return to headquarters.

4

Whether the bills are settled without delay? Whether unspent balances are refunded by CNEs promptly? Whether permission to stay outside temporary headquarters was granted in large number of cases?

5

Whether 100% of bills paid during the period under audit are scrutinized to ensure that they are in accordance with Central Office instructions issued from time to time.

6 Comment on pending bills giving age-wise details, amount involved and whether delay is justified.

7 Whether Unusual detention of Bank's Potdar is monitored.

8 Whether overtime bills of Potdars on remittance duty are settled as per current instructions.

9 Whether delay in returning/ reporting of Assistants/ Senior Assistants/ Special Assistants accompanying remittances.

3. Preliminary / Final Receipts

1 Whether preliminary/final receipts have been received. Carry out test checks.

2 Whether checks in respect of 100% of outward remittances

3

Whether there is any Non-receipt of preliminary receipts/ final receipts/ delays

4. Discrepancies in Chest Remittances

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1

Whether entries in regard to discrepancies detected in local tenders/chest remittances are being passed promptly under advice to all concerned.

2 Discrepancies in the remittances Received by chest are being attended to promptly and correctly.

5. Police Bills

1 Whether 100% checking of bills to be done.

2

Whether Bills in respect of armed police guards provided by the State Government are being paid regularly.

3

Whether payments are made in accordance with Central Office instructions with certificate from Security Officers.

4

Whether Bills in respect of police escort for accompanying remittances are settled expeditiously and in accordance with current instructions.

5 Whether any unusual features observed in the bills received from Police Department.

6

Whether remittance bills/ claims received from chest banks/ STOs (through Government) are being settled promptly.

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7

Whether claims in respect of police escort charges submitted by the Currency Chests are supported by the copy of remittance order/diversion order issued by RBI and the following documents:

i) A copy of the Invoice in form TR64 giving particulars of the remittance

ii) A copy of the requisition letter issued by the chest officer for obtaining police escort

iii) A certificate issued by the Superintendent of Police stating that the bill is prepared as per existing State Government Rules and has not been claimed earlier. (Arithmetical or other discrepancies in respect of the claims to be verified. Cf: Insp.AMC.NO. 3074/05.01.01/2005-06 dated 3.3.2006).

6. Railway Bills

1 Whether the bills received from Railways are in order. Carry out 100% checking of bills.

2 Whether freight is paid correctly and empty boxes are charged @ ¼ of parcel rate.

3

Whether these bills are being paid regularly without delay.

4

Whether Railway Credit Notes are issued correctly and proper care is exercised in issuing them and paying them

7. General

1

Whether the unserviceable items like wooden boxes, steel strappings and plastic strappings etc are being disposed of on rates approved on annual basis and the amount realized is properly accounted for.

2

Whether Outstanding entries in Sundry and Suspense Accounts - Reasons for delay in respect of entries for more than 2 months. Figures to be tallied with DAD statement.

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3 Whether Income tax etc. has been recovered from the bill and credited to Government.

4 Whether TA Bills and Police Advance recovery is done promptly

V. ACCOUNTS SECTION

1. Accounts, Journals and Ledger

1 Whether Registers in A1, A4, A6, A7, A8, A9 are checked/authenticated by Staff Officer (ICCOMS).

2

Whether circulation notes register in A15 is agreed with Chest Notes/Coin Accounts at the month end.

3

Whether balancing of Chest Note Account/Chest Coin Account in trial balance (A5) with total ledger balances (CA2) is done.

4 Whether 100% scrutiny of the vouchers and their posting in various ledgers is made.

2 .Inter-circle/Inter-chest transactions/ Recovery of Penal Interest

1

Whether all calculations made with regard to penal interest charged/collected in respect of delayed/wrong reporting of currency chest transactions are checked.

2 Whether calculation of penalty charged on forged notes in remittances received from currency chests is checked.

3. Scheme of Incentives/Penalties

1

Whether the claims submitted by banks under the scheme for incentives and penalties for bank branches (including CCs) based on performance in rendering customer service to the member of public and also comment on the correctness of settlement of such claims in the monthly audit report.

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4. General

1

Whether no account other than the ones permitted by the Issue Department Manual/ Central Office is opened/operated by the department.

5. Computer Room

1

Whether a register should be maintained on the malfunctioning of different components and action taken by the maintenance engineer. Preventive maintenance should be taken up regularly. Special attention should be given for the preventive and corrective maintenance of the high cost and technologically advanced equipment.

2

Whether manuals in respect of System Software (Operating System, Compilers, file handling utilities, terminal operation etc.) Standard packages, System Utilities (sort, copy etc.) should be properly maintained. Concurrent Auditor may comment on the systems and procedures in place.

6. Computer Consumables

1

Whether a trend analysis of expenditure on computer stationery has been done.

7. Access to Computer

1

Whether access to computer is be restricted by implementation of passwords at various levels like at logon time, at entry to various application systems, at accessing various system/data files, for specific operations (reading, writing or deleting) etc. Comment on the systems and procedures in place.

8.Physical Security

1

Whether there are any specific remarks on physical security at the computer room.

VI. RECORDS SECTION

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1. Dispatch

1

Whether surprise check of postage stamps is carried out every month.

2

Whether Postage stamps properly accounted for and closing balance authenticated each day.

2. Subsidiary Registers

1

Whether charges Account Ledger for ID – Posted upto date and tallied with DAD. Analyze the expenditure pattern and trend. The entries to be checked with reference to supporting documents.

2

Whether Suspense account and Sundry Deposit account, Earnest Money Deposit Account and Security Deposit Accounts – balances are verified and reconciled with DAD on weekly basis.

3

Whether there are any outstanding entries in transitory accounts to be wiped out and the list of such entries remaining outstanding beyond the prescribed period to be put up to DGM/GM periodically.

4 Whether there is any delay in settling bills. Whether they settled in accordance with current instructions.

5

Whether it was ensured that all payments to staff and outside parties were made by ECS/NEFT. Whether EFT credit was given to the correct account.

3. Note Banding / Bundling / Counting/ Coin Dispensers / Coin Sorting/Counting Machines and Scales

1

Whether all the machines installed are in working condition?

2

Whether laid down procedures have been followed in purchase of such machines.

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3

Whether the expenditure on repairs of machines is on high side? Examine and comment

4. Annual Maintenance Contract (AMC)

1

Whether the AMC’s are entered into in time and is in force in respect of various machines in use in cash department viz. Note Counting Machines, Note Bundling Machines, CVPS Machines, SBS machines etc.

5. General – Administration

1

Whether 100% scrutiny of various bills

settled is made to ensure that they are in

order.

2

Whether monthly DO letters by

GM/DGM Issue Department forwarded

to CO in time

3

Whether list of outstanding bills beyond

15 days is generated and put up to

DGM/GM for perusal on fortnightly

basis.

6.Tax deducted at source (TDS)

1

Whether statutory obligations like

deduction of various taxes/payments,

etc. were invariably met (as per rules

/rates in force) and remitted in time; filing

of Returns / Statements, wherever

called for, may also be checked.

VII. CASH DEPARTMENT

1. Box Balance

1 Whether the balance agrees with CD-32 and CD-82.

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2

Whether each disbursement from the box is recorded in CD-34 with Receiving Officials signature for disbursement from Box Balance.

3 Whether CD-32 and CD-34 to be cross-tallied on a test check basis.

4 Whether the Box Balance is verified by Asst. Treasurer on each day at different times.

5

Whether the Box Balance is subjected to monthly surprise verification by an Officer deputed by General Manager – Issue Department Manual Para 8.5 Ch.II (Rs.500/2000 fully; Rs.50/100 5%; Rs.20 and below 1%)

2. Petty Cash

1

Whether register in form DAD 082 is maintained.

3.

1

Whether all balances are checked with

reference to Vault Registers CD-3, the

respective subsidiary register and then

Daily Position register CD-88.

2

Whether in case of shortage of treasure

in more than one vault, balances of each

vault’s CD-3 is totaled for a few days

chosen at random and tallied with the

main vault Register CD-3 reflecting the

consolidated figure.

3

Whether surprise verification of at least

10 bins having chest notes of above

Rs.50 denomination and above is

arranged by GM/ DGM, Issue

Department on a weekly basis.

4

Whether CD- 59 statement giving

instance of discrepancies observed in

coin bags forwarded to CO every

quarter. Comment on unusual feature, if

any , observed as well as followed –up

action taken with mints etc.

4. Physical Verification

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1 CD-3 balances to be tallied with CD-5 (Fresh Notes) and CD-11 (Re-issuable Notes) and both individually with CD-88.

5. Coin Balances

1

Whether physical verification is carried out by number of bags, denomination- wise. The total to be tallied with CD-6 and with CD- 59 for small coin. The respective totals will have to be tallied with CD-88for the day of checking.

2

Whether uncurrent coins, if any, are checked by yellow tags and commented as to how long they have been kept in the vault. Matter to be pursued with the Mint. If pre-production samples are kept, accounting thereof strictly as per Central Office instructions.

6. Vaults

6. A – Fresh Notes Vault

1

Whether orderly maintenance of Registers, CD-17 and CD-23 in particular, apart from Vault Register CD-3 and subsidiary register CD-5, is verified. Whether First In First Out (FIFO) is being followed has to be checked up (Para 2.7 Ch.II, revised IDM).

2

Whether every month, balances according to stack book/bin books are agreed with the CD-3/Subsidiary Register and the statement put up to DGM/GM (Para 2.3.2 Ch.II revised IDM).

3

Whether there is equitable issue of different denominations of notes and coins over counters in line with the stock position.

4

Whether minimum 2 months’ consumption requirements of fresh notes and coins are built-up as buffer stock.

5 Whether PV of fresh note remittances is 7carried-out expeditiously and there is

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no undue detention of Press representative.

6

Whether discrepancies, if any, in fresh note remittances recorded in CD-17 register and put-up to GM/DGM, Issue Department with follow-up details on a fortnightly basis. A quarterly statement of such discrepancies should also be forwarded to CO.

7 Whether deployment of contractor’s mazdoors is as per CO instructions.

8. The calculation of paid to Class IV Staff for opening of fresh note boxes received from press.

6. B –Outward Remittances

1

Whether CD-84 register for an outward remittance is checked for posting of dates of receipt of preliminary and final receipts in appropriate columns.

2

Whether in case of delay/non-receipt of Preliminary/Final receipts – proper follow-up at appropriate time is made by Remittance Section.

3

Whether entries not marked off are

separately taken on return of the Potdar

and submission of Final Receipt to be

checked.

4

Whether the number of remittances

affected from the Vault are totaled and

counter-checked with Remittance

Section

.

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5

In case of remittances of coins through

trucks without accompanying Potdar,

whether the instructions in the matter

have been followed? How the final

receipt is obtained and remittances

marked off –to be examined.

6.C-Invoiced Notes Vault

1 Whether CD-3 balance to be tallied with

CD-9; and CD-9 with CD-88

2

Whether any unusual features in the

statistics of receipt and disposal of notes

are observed.

3

Whether Joint Custodians conduct

periodical check of balances in the vault

and put up report to DGM/ GM, Issue

Department.

Agreements/ Surety agreements

1

Whether Staff agreement forms are

entered in G2 Register and Surety

agreements are recorded in G-3.

2

Whether adherence to instructions

contained in Circular No. DCM

(S&D)/No. G. 1/12.04.01/2001-02 dated

29th August 2001 issued by Department

of Currency Management, Central

Office, with particular reference to period

of preservation and filing of agreements

in the service files of the respective

employees, are verified. This is inter alia

to ensure that the surety of Cash

Department staff is transferred to

DAPM.

7. Disposal of Cash Security

1

Whether collection of correct amount is

made, deposit is made in Post Office

and pledged in favour of General

Manager.

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2

Whether entries are properly made in G-

1 Register.

3 Whether Pledgement clause is

incorporated in the passbook.

4

Whether cash security is held in the joint

custody of Treasurer and the Manager

concerned.

5 Whether refunds are made in proper

manner.

8. Fidelity Guarantee Insurance

1

Whether the policy has been obtained in

the prescribed format, the amount of

insurance is in order, the premiums are

paid regularly, the conditions governing

the policy are duly complied with and

that the policy is renewed annually.

2

Whether all the cases of loss involving

amount in excess of Rs. 300/- are

promptly notified to insurance

companies and all claims are made

within prescribed periods.

3 Analyze the expenditure on premium

paid vis-a-vis the claims made as well as

settled.

VIII. CURRENCY VERIFICATION AND PROCESSING SYSTEM (CVPS)

1

Whether an inventory of essential spare parts of the machine is maintained and monitored to ensure against avoidable downtime.

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2 Whether proper arrangements are made for disposal of briquettes.

3

Whether machine wise downtime register is maintained. Downtime register be analyzed to cover aspects such as type/ frequency of such instances, adverse effect on output, preventive maintenance schedule and their adherence etc.

4

Whether AMC entered into on time and are in force and payments made as specified by Central Office.

5 Whether consistency checks for machines are conducted periodically.

6 Whether proper record of seals issued to NPT is maintained.

7

Payment of incentive to staff and officers working in CVPS with reference to the output of CVPS machine has been verified.

8

Whether the incentive payable to Cash

Department/CVPS Staff for the month of

April 2019 be subjected to Concurrent

Audit for checking/certifying the

calculation of incentive of claims

considering eligibility as per the

HRDD/HRMD circulars before making

payments henceforth. Further, whether

the entries in respect of incentive paid to

the staff for the month of July, 2016 is

also retrospectively checked as regards

to eligibility and amount payable.

IX. CUSTOMER SERVICE / PUBLIC COUNTERS

1 Whether counters open on time and close only at the stipulated time.

2

Whether the number of counters is adequate vis-à-vis the number of customers coming to the counters.

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3 Whether single window concept has been introduced and is in vogue.

4 Whether ‘May I help you’ counter is available and is staffed during banking hours.

5 Whether the bank staff and security staff treat the public courteously.

6

Whether adequate numbers of Note Counting Machines have been installed and are in working condition.

7

Whether Coin Dispensers have been installed in the Banking Hall and are in working condition. Whether signboards have been fixed on the counters

8 Whether proper mentioning is made of the services available to the public.

9

Whether pasting material is provided at a separate table as per Central Office instructions and a suitable signboard has been put up for the benefit of public.

10 Whether counters work continuously without any break for lunch.

X. DEADSTOCK

1 Whether capitalization of dead stock article was done correctly.

XI. NPS (NATIONAL PENSION SCHEME)

1 Whether all the employees covered

under NPS have obtained PRAN, got it

tagged to RBI and the details have

been communicated to Samadhan

a) No. of employees covered under

NPS who are yet to obtain PRAN/get it

tagged to RBI as at the beginning of the

month:

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obtained PRAN/tagged to RBI, during

the month:


obtain PRAN/get it tagged to RBI as at

the end of the month (age-wise details

as per annexure):

Scope of Audit for Central Establishment Section

Sr. No. Particulars Compliances

(Yes / No)

Audit Observations

1 Whether the following

statements/returns are promptly

submitted to Central Office: rem

i) Half yearly statement regarding the housing

loans sanctioned to Individual/society and

balances outstanding.

2 SALARIES – DRAWAL &

DISBURSEMENT (paras 3.1 to 3.10)

i) Whether court attachment orders are

promptly attended to.

3 GROUP SAVINGS LINKED INSURANCE

SCHEME/ MAF 3.204 rem

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i) Whether check cards are properly

maintained, names of nominees properly

recorded, contributions duly entered.

ii) Whether payments made under the scheme

are made in accordance with the extant

instructions.

iii) Whether the contribution towards Medical

Assistance Fund, Group Savings Linked

Insurance Scheme, wherever applicable,

have been correctly recovered and properly

accounted for.

iv) Whether reconciliation of GSLI is done up to

date.

v) Whether reimbursement of GSLI premia

made to the eligible employees are done

according to Central Office, DEBC

instructions.

.

4 PROVIDENT FUND (PARAS 3.120 TO

3.154) rem

A) i) In cases of advances/withdrawal from PF

and final payments, whether the correct

amount has been paid and payment is

made in accordance with the rules.

PROVIDENT FUND –

ADVANCES/WITHDRAWALS rem

B) i) Whether appropriate application has been

filled in with all relevant

particulars/documents.

ii) Whether the application has been inwarded.

iii) Whether prima-facie the

advance/withdrawal has been established.

iv) Whether all relevant particulars are filled in

the letters of authority and they contain the

stamped receipt of the employee. Whether

the signatures of the employees are duly

verified, the pay orders are obtained and

paid stamps are branded.

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v) Whether the admissible amount is correctly

worked out and sanctioned by the

appropriate authority.

vi) Whether the Bank’s dues are properly

recovered from the final payments.

vii) Whether the individual P.F. accounts and

temporary advances recovery accounts are

properly maintained.

viii) Accounting aspect – whether procedure is

full proof. If not, what are the suggestions.

ix) Delay in settlement has resulted in certain

cases payment of additional interest.

x) No short-cut in procedural matter is

followed, giving scope for fraud, etc.

xi) Whether option status (i.e. Contributory

Provident Fund or Pension) is properly

indicated in Provident Fund Schedules.

5 PAYMENT OF GRATUITY (PARAS 3.161

TO 3.167)

i) Whether in the cases of payments of

normal/compassionate, gratuity, the

payment is made upto the admissible extent

and as per the rules.

ii) Whether the tax on Tax and the relief

admissible on the Tax under the Income-

Tax Act have been correctly calculated –

(100% checking to be done by the auditors).

iii) Whether Gratuity/Compassionate Gratuity is

paid without delay after properly recovering

Bank's dues.

6 PENSION (3.168 TO 3.186) (MASTER

CIRCULAR DAPM NO G.24 DATED

31.8.2001)

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i) Whether the pension amount is calculated

and paid according to the basic pension

arrived at as per extant instructions and rate

of dearness relief conveyed by Central

Office from time to time.

ii) Whether the pension payment register in

Format-2 is maintained properly and the

commuted value of pension is furnished in

the register.

iii) Whether photographs of

pensioners/nominees are fixed properly on

relevant forms and filed in a separate spring

file along with pension sanction papers.

iv) Whether before making family pension

payment prescribed undertaking from the

widow or widower or child has been

obtained.

v) Whether before grant of family pension in

the event of death of the employee or

pensioner under doubtful circumstances

discreet enquiries are made to ensure that

the widow or widower or eligible child

claiming family pension is not charged of

murdering the employee/pensioners or for

abetting in the commission of the offence.

vi) Whether all the pensioners are issued a

pass-book.

7 GENERAL - TA/HA ETC. (PARAS 3.15 TO

3.26)

i) Whether all bills are inwarded.

ii) Whether all bills are passed by the officers

authorized to pass the bills under Bank’s

Expenditure Rules.

iii) Whether the amounts of bills passed were

correct.

iv) Whether the advances and unspent

balances have been correctly accounted

for.

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v) Whether the balance amount payable has

been correctly worked out.

vi) Whether references to Central Office,

seeking instructions/interpretation for

settlement of bills are properly followed up.

vii) Whether the bills are submitted with in the

period indicated in the undertaking.

8 TRAVELLING/HALTING ALLOWANCE

(TA/HA) BILLS (MASTER CIRCULAR

CO.HRDD NO.G.10/33/17.02.08/2007-08

DATED 02 JULY 2007)

i) Whether the bills are submitted within 15

days from the date of return from tour and

the unspent balance refunded immediately

on return from tour/reporting for duty.

ii) Whether the fares are admitted by the

entitled class and by the shortest route.

iii) Whether the fares are restricted for the

distance by the shortest route only.

iv) Whether there is specific approval of

RD/Department-in-Charge for journey

performed by air by an employee not

ordinarily entitled to travel by air.

v) Whether II A.C sleeper charge is paid only

when I class accommodation is not

available or the train does not have I class.

vi) Whether return journey fare is paid to the

employee who returns to headquarters

before completion of work or who returns

after availing of leave (other than casual

leave ) after completion of work, except

when the absence is on medical grounds

and for short period or for sudden/serious

illness of a close relative.

vii) Whether a declaration is furnished by the

employee in respect of the rail journey.

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viii) Whether the compensation equal to the

difference in fares for the actual class of

travel and the entitled class is paid correctly

after verifying the facts/documents

(admissible to Class III employees) and the

amount so paid taken into account for the

purpose of calculation of Income-tax.

ix) Whether the fares, in case of travel by own

car/taxi are paid at stipulated rate subject to

the ceiling limit of fare by rail as per

entitlement for the distance by road (by

direct route ) or actual charges whichever is

less.

x) Whether it is ensured that when the travel is

performed by private airlines, the fare

charged is not higher than that charged by

national carrier.

xi) Whether the advances drawn at temporary

headquarters, if any, were utilized in time.

xii) Whether for, officers stay in Hotels, VOFs,

Dharmshalas etc., lodging, charges paid are

as per the rates prescribed by CO.

xiii) Whether incidentals @ ¼ of per diem H.A

has been paid to the officers as per rules.

xiv) Whether Hotel charges are paid as per rules

by admitting tax/luxury tax/service charge

etc whenever claimed.

xv) Whether officer is availing hotel facility

regulating his stay in such a way that he is

not required to pay full additional day’s

charges for a part of the day not involving

night stay.

xvi) Whether advance towards HA is restricted

to one week for longer tours where Banks

offices are located.

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xvii) Whether an employee proceeding on tour to

a place 50 Kms away from the HQ and

returning on the same day but before

midnight after staying outside for more than

8 hours is paid any other charges except

HA. (Mazdoor charges may be paid at the

discretion of Competent Authority).

9 MAZDOOR CHARGES

i) Whether Mazdoor charges are reimbursed

at the appropriate rates as applicable at

residence and station etc., or lumpsum

amount is payable under the declaration

scheme.

10 HALTING ALLOWANCE (MASTER

CIRCULAR CO HRDD

NO.G.10/33/17.02.08/2007-08 DATED 02

JULY 2007)

i) Whether halting allowance has been paid

for the correct number of days.

ii) Whether the rates are appropriate and

according to the place of stay.

iii) Whether any halting allowance is paid for

the period of leave other than casual leave

on medical ground duly supported by

medical certificate and for the journey period

when return journey is performed before

completion of work at temporary

headquarters or after completion of work but

on expiry of leave (other than casual leave

or ordinary leave for short period on medical

ground supported by medical certificate)

availed of after completion of work.

iv) Whether Sundays/holidays spent wholly

outside temporary headquarters, if any,

have been excluded and rounding off of the

number of days is properly done.

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v) Whether the halting allowance for the actual

period of stay rounded off to the nearest day

( 12 hours or more to be taken as one day

and less than that to be ignored) is

computed first and the remainder is treated

as journey period.

vi) Whether the sliding scales of halting

allowance are applied, wherever applicable.

vii) Whether proper deduction has been made

when the employee is treated as guest by

the concerned institution.

11 TRANSFER (TA) BILLS (MASTER

CIRCULAR HRDD NO.

G.4/08/04.01.10/2007-08 DATED

02.07.2007)

i) Whether the transfer bills are submitted

within a period of six months from the date

of transfer or within the extended period

subject to a maximum of two years from the

date of transfer.

ii) Whether the fares have been claimed by the

shortest route and by entitled class.

iii) Whether the amount not exceeding two

months pays to meet incidental expenses as

admissible has been paid.

iv) Whether the railway receipt for the container

charges is produced when transportation is

done by container service.

v) Whether the packing and crating,

unpacking, clearing and forwarding,

transportation and cartage, loading and

unloading and Insurance etc., charges are

admitted as per rules.

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vi) Whether the freight charges are admitted

upto a maximum of 60 quintals or one full

four wheeler wagon load by ordinary goods

train. (If goods are transported by lorry or

any other mode of transport, expenditure

incurred upto 60 quintals of weight on actual

terms not exceeding the amount charged by

well-known transport companies having all

India operations. Consignment

note/challans in addition to the receipt for

freight should be produced).

vii) Whether the cost of transportation of motor

car by passenger train (in a closed wagon)

admitted. (If car is transported by road, the

expenditure incurred towards cost of petrol,

driver’s charges, etc., can be reimbursed

within the ceiling amount applicable for

transportation of car by a passenger train

(closed wagon) by the shortest route).

viii) Whether, in cases where scooter/

motorcycle is transported separately,

charges to the extent of two quintals at

parcel (railway) rate as applicable only are

paid.

ix) Whether any demurrage charges have been

reimbursed.

12 HALTING ALLOWANCE ON TRANSFER

(Master Circular HRDD No.

G.4/08/04.01.10/2007-08 dated 02.07.2007)

i) Whether halting allowance on transfer has

been paid for a maximum period of 60 days

or till the date of allotment of regular/transit

accommodation. Hotel charges shall cease

to be paid after third day next to the date of

allotment of any kind of accommodation at

the new center.

ii) Whether halting allowance has been paid

for the number of days spent outside

headquarters on leave/holidays.

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iii) Whether halting allowance has been paid to

an officer who has own accommodation not

leased to the Bank or belonging to Joint

Hindu Family or has residential

accommodation ready for occupation at the

new centre or the transfer was effected at

the request of the officer.

iv) Whether the application for accommodation

has been made before reporting to the new

centre.

v) Whether any accommodation has been

declined by the officer.

13 LFC BILLS AND LEAVE FARE

ACCOUNTS (MASTER CIRCULAR HRDD

NO. G.13/91/17.04.00/2007-08 DATED

02.07.2007) (PARAS 3.79 TO 3.89)

i) Whether the application for advance and

LFC bill on declaration received contains all

the particulars and the same has been

scrutinized in terms of the provisions of

DEBC Circular No. CO.HRDD. No. G.

15/10/17.04.00/2011-12 dated 01 August

2011.

ii) Whether the bill has been submitted within

one month from the date of return from

leave/from the date of completion of return

journey.

iii) Whether in the case of family members, the

return journey was completed within six

months from the date of outward journey.

iv) Whether the bill has been passed under the

appropriate scheme (place of domicile or

other than place of domicile or air travel

scheme).

v) Whether appropriate declaration/certificate

has been obtained in respect of earning

spouse/ dependent parents, unmarried

brothers/sisters.

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vi) Whether one-time option has been

exercised by the married female employees

including compassionate appointee widows

for claiming concession for their parents or

parents-in-laws.

vii) Whether married female employees are

availing of LFC in respect of their brothers/

sisters.

viii) Whether in any case LFC has availed of in

respect of step-brothers/sisters, parents-in-

law (male employees), brothers-in-law,

sister-in-law or widower brother or widowed

sister.

ix) Whether a declaration in Form-6 furnished

by the spouse one of whom employed in the

Bank and the other elsewhere on every

occasion when LFC is availed of.

x) Whether printed and numbered receipt in

the prescribed form “A” (Form-9) was issued

for refund of the unspent amount and

duplicate carbon copy of these receipts

were required to be subjected to audit.

xi) Whether acknowledgement in prescribed

Form”B” (Form-10) was issued for

submission of bill.

xii) Whether the bill has been settled for/ within

ceiling fares applied individually and not for

the overall ceiling fares of all the family

members taken together.

.

xiii) Whether there was payment of additional

charges, if any, (super-fast charges, A.C

sleeper charge, surcharge, etc) over and

above ceiling fares, twice only.

xiv) Whether the required details/evidence/

declaration for performing the journey by

rail/taxi/air produced.

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xv) Whether the bill under visit to place of

domicile scheme was on the basis of

distance by the shortest route (wherever

applicable)

xvi) Whether the employee proceeding on leave

for availing of LFC before the date of expiry

of current/extended set completes both

inward and outward journeys during same

spell of leave.

xvii) Whether income-tax is deducted at source

under the Declaration Scheme.

xviii) Whether the dependent parents in respect

of whom the LFC is claimed reside with the

employee or in the same city or its suburbs.

xix) Whether the outward journey has

commenced from the employees'

headquarters except in the case of family

members of an officer, who are left at the

old centre for the purpose of education of

children.

xx) Whether entitlements are adhered to as per

instructions viz., the class of entitlement for

the purpose of LFC in respect of officers

drawing pay upto Rs.23249/- is ACII tier rail

fare, whereas Officers drawing pay of

Rs.23, 250/- and above is Air/ACI. In the

case of class III and IV staff, they are

reimbursed rail fare for ACII/III tier

respectively for journey by mail/express

train (excluding Rajdhani/Shatabdi express

trains) provided the journey is actually

performed in that class.

xxi) Whether the taxable portion, if any, of the

LFC set has been correctly worked out and

taken into account for purpose of calculation

of tax.

xxii) Whether the full particulars of the

concession claimed have been entered into

the account sheet and the currency/duration

of the set is correctly written in the account

sheet.

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xxiii) Whether all particulars have been entered

into the relevant columns of the account

sheet.

xxiv) Whether necessary declarations/remarks

about nearest rail link, option exercised,

facilities enjoyed by earning spouse,

number of children and their age etc. have

been recorded.

xxv) Whether rescheduling of sets on account of

promotions, change of option etc. has been

properly done.

xxvi) Whether both incidental and encashment of

leave expenses have been allowed.

xxvii) Whether eligibility in respect of travel by air

has been arrived at in terms of provisions of

paragraph 3.1(ii) of Master Circular.

14 MEDICAL BILLS (MASTER CIRCULARS

DAPM NOS. G.27/208/18.01.001/2001-02

DATED 31.8.2001 & G.33 DATED

15.10.2001) (PARAS 3.41 TO 3.78)

Sub

Departments a)DSS

b)MAF

c)BMFS

d)Dispensary

i) Whether the bill has been submitted within

one month from the date of completion of

treatment and if there is delay, whether the

same has been condoned.

ii) Whether the claim is properly supported by

documents such as doctor's receipted bills,

prescriptions, chemist cash memo etc.

iii) Whether the treatment is taken at

headquarters and if not, whether the

reasons for not taking the treatment at

headquarters are furnished and the same

are justified.

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iv) Whether the claim is restricted only in

respect of self, non-earning spouse and

dependent children and whether necessary

declaration/certificate is obtained in respect

of earning spouse, in respect of whom the

facility is claimed (Married female employee

is eligible to claim medical facilities either for

their dependent natural parents or parents-

in-law by giving irrevocable option. In the

case of dependent parents-in-law, the claim

can be made only if her husband is no more

or not earning).

v) Whether families of workmen employees

who have not opted for dispensary facilities

for the purpose of reimbursement of medical

expenses under the PMT scheme have

availed of dispensary facilities.

vi) Whether the dates of cash memo

corresponds to the date of prescription.

vii) Whether the quantity purchased

corresponds to the quantity prescribed.

viii) Whether any claim has been preferred in

respect of dependent

parents/brothers/sisters.

ix) Whether cost of treatment taken by officers

from a RMP under Homoeopathic/Ayurvedic

treatment is reimbursed upto a period not

exceeding three months and only one

consultation charge is reimbursed during the

period. If treatment exceeds three months at

a time for the same ailment whether amount

reimbursed only if treatment is taken from

Govt./Govt. recognized Trust/ Charitable

hospitals/dispensaries. In the case of indoor

hospitalization, whether the treatment has

been taken in the hospital run/recognized by

Central/State Government and after

consultation with BMO.

x) Whether visit/consultation charges of

general practitioners are restricted to

admissible extent.

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xi) Whether the specialist consultation is done

only with BMO's prior permission, unless

under emergency of which BMO is

subsequently informed.

xii) Whether the charges for

pathological/radiological tests,

physiotherapy and dental treatments,

dressing etc. are reimbursed as per the

appropriate schedules, as applicable to

officers and workmen staff respectively.

(Cost of treatment taken for psychiatric

ailment is reimbursable under BMFS for a

maximum period of six months only and the

treatment should be taken with the prior

recommendation of BMO).

xiii) Whether the maternity expenses and the

charges for caesarian operation are

reimbursed to the admissible extent. (No

amount is reimbursable under MAF).

xiv) Whether the stoppage charges in case of

hospitalization are reimbursed within the

ceilings prescribed.

xv) Whether the operation charges (inclusive of

theatre charges, anaesthesia charges,

Assistant Surgeon's fees etc) are

reimbursed on the basis of the BMO's

recommendations regarding the type of the

operations, having regard to the category of

staff and where the operation is performed

(in Government/public/ charitable/trust

hospital or nursing home).

xvi) Whether the reimbursement in respect of

treatment of gynaecological problems like

leucorrhoea, menorrhagia, irregular

bleeding/ cycle etc. is reimbursed to officers

and workmen employees subject to specific

diagnosis by the attending Gynecologist and

on recommendations of BMO.

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xvii) Whether the cost of hormones (except for

thyroid), multivitamins, tonics, drugs having

nutritional food values, enzymes, advertised

drugs, cosmetic medicating and medicated

soaps is reimbursed.

xviii) Whether cost of lotions/ointments, eye/ear

drops etc. reimbursed only when they are

required to be purchased in

emergency/acute cases. (Cost of disposable

syringes used during hospitalization

treatment only can be reimbursed).

xix) Whether the registration fees/charges levied

by the Trust/Charitable/Private

hospitals/nursing homes for indoor

treatment was reimbursed only to the extent

of Rs. 200/-provided the treatment was

taken with prior permission of BMO.

xx) Whether surcharge levied by

Govt./Municipal/Trust / Charitable hospitals

reimbursed as per rates levied by these

hospitals or at the rate of 20% whichever is

lower. (However, surcharge levied by

private hospitals/ nursing homes is not

reimbursable).

xxi) Whether record of reimbursement made to

individual officers has been maintained.

xxii) Whether the claims for following ailments

which are outside the BMFS has been

admitted:

Sexually transmitted diseases, Obesity,

Retarded growth, Sterility perse, Insanity,

Menopause Syndrome, Surgery done for

cosmetic purposes, change of sex, allergy

tests etc.

xxiii) Whether the refraction test of eyes is

allowed only once in two/three years and

whether instructions regarding

reimbursement of the cost of spectacles

have been strictly adhered to.

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xxiv) Whether the cost of pace-maker in the case

of an employee is reimbursed only once

during the service on proper

recommendations and payment is made

directly to the authorized supplying agency.

xxv) Whether the cost of crutches, cervical collar,

corset belts and artificial limbs has been

reimbursed keeping in view the extant

instructions.

xxvi) Whether for CT scan test prior approval/

recommendation was obtained.

xxvii) Whether in case of D&C operations

histopathological report has been submitted.

xxviii) Whether the reimbursement of charges for

medical termination of pregnancy was

reimbursed only to admissible extent subject

to fulfilment of prescribed conditions.

xxix) Whether the expenditure on account of

tubectomy/vasectomy operations was

reimbursed correctly up to the prescribed

limits in addition to the incentive amount.

xxx) Whether the special nursing charges was

reimbursed on fulfilment of certain

conditions.

xxxi) Whether only those part-time employees in

Class IV whose hours of work exceeded 13

hours per week has availed of dispensary

facility for their family members.

xxxii) Whether cost of allopathic medicines

prescribed by a non-allopathic doctor was

reimbursed (not reimbursable).

xxxiii) Whether the bill was submitted within one

month of the succeeding quarter, if the claim

amount was less than Rs. 200/-.(now Rs.

1000/-)

xxxiv) Whether the prescription bears the

Registration Number of the Doctor.

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xxxv) Whether consultation charges of a dentist

and the cost of bridges and crowns/caps are

reimbursed.

xxxvi) Whether druggists’ bills are paid promptly

xxxvii) Whether the stock register and prescription

files are properly maintained?

xxxviii) Whether the name and telephone number of

nominated nodal officer has been advised to

all the retired executives in the area for any

help/information required by them for

settlement under Group Mediclaim Policy for

Retired Members of MAFS/Settlement of

claims of Retired Executives.

xxxix) Whether the claim has been examined and

recommended by the BMO for

reimbursement after ensuring that the

ailment is within the scope of the scheme for

reimbursement of expenses and the number

of visits and injections and the quantities of

antibiotics are certified as reasonable by the

BMO

15 CONVEYANCE BILLS (PARAS 3.31 TO

3.35)

i) Whether the distance stated in conveyance

bill is correct, the point of deviation in order,

the mode of transport used appropriate from

the point of view of eligibility and the amount

claimed and admitted is proper.

ii) Whether officers have claimed conveyance

expenses separately for official trips of

distanceless than 8 kms. at headquarters.

iii) Whether officers who are claiming

reimbursement of salary for personal driver

have claimed reimbursement of expenses

on local trips for official purpose.

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iv) Whether, in cases where employees travel

in groups of two or more, endeavor is made,

to the extent possible to share the same

conveyance, so as to keep the expenditure

within the limits of necessity.

16 OUT-OF-POCKET EXPENSES BILLS

(PARA 3.30)

i) Whether the place of duty is beyond 8kms.

from the normal place of work.

ii) Whether there is any lounge/canteen facility

of the Bank available or any arrangements

have been made by the Bank with any hotel

or restaurant within a distance of 1.5 kms.

from temporary place of work.

iii) Whether the minimum absence from the

normal place of work is between 12.00 and

2.00 PM. (However the time limit is not

applicable to employee on remittance,

inspection or cash verification duty).

iv) Whether the officers from Mumbai/Chennai

going to BTC/ Staff College to deliver talks

are reimbursed out-of pocket expenses.

v) Whether out-of-pocket expenses are paid

for intervening Sundays/holidays .

vi) Whether out-of-pocket expenses are

correctly reimbursed at half the rate of

halting allowance applicable to the place of

work.

vii) Whether sliding scale of out-of-pocket

expenses was applied after first 45 days

except in the case of employees on

remittance, inspection or cash verification

duty.

17 TEA/LUNCH/DINNER/ CONVEYANCE

CHARGES BILLS (PARAS 3.27 TO 3.29)

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i) Whether late sitting/early coming is for

approved items of work.

ii) Whether the tea/lunch/dinner charges are

admitted as per the prescribed scales and

on the basis of the number of hours of

detention/early coming.

iii) Whether reimbursement of

tea/snacks/breakfast charges for officers

attending to protocol duties are as per

prescribed rates.

iv) Whether the prescribed register is

maintained for this purpose.

v) Whether the monthly statement regarding

payment is filed along with the monthly

reviews of overtime payments.

18 HOUSING LOAN (PARAS 3.90 TO 3.99)

i) Whether Document Register is properly

maintained? (Housing loan files of

employees who have acquired two

properties with the assistance of Bank’s

loan are to be retained in the Bank’s safe

custody till the housing loan in respect of

both the properties is repaid with interest

thereon).

19 TAX DEDUCTED AT SOURCE (TDS)

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i) Whether statutory obligations like deduction

of various taxes/payments, etc. were

invariably met (as per rules /rates in force)

and remitted in time; filing of Returns /

Statements, wherever called for, may also

be checked.

20 MISCELLANEOUS STAFF RELATED

PAYMENTS

i) Whether reimbursement / payments made

to staff / officers towards, printing of visiting

cards, etc. were made in accordance with

Central Office instructions.

21 MAINTENANCE OF SUBSIDIARY

LEDGERS

i) Whether subsidiary charges account ledger,

suspense account sundry deposit ledger are

maintained as per Manual provisions,

entries are duly checked and authenticated

by AM / Manager.

ii) Whether weekly reconciliation of transitory

account balances and monthly reconciliation

of charges account balances was done with

GL balances on regular basis.

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iii) Whether entries in the subsidiary ledgers

were checked by the concurrent auditors vis

– a – vis the supporting documents and the

same were found in order. (DGBA Circular

No. 19 dated 08.11.2005).

iv) Whether payment made through ECS and

EFT are reconciled for accuracy of amount

and beneficiary with the ECS/EFT reports

received from NCC through DAD/PAD.

22 NPS (NATIONAL PENSION SCHEME) -

i) Whether all the employees covered under


RBI and the details have been

communicated to Samadhan.



RBI as at the beginning of the month:


PRAN/tagged to RBI, during the month:


obtain PRAN/get it tagged to RBI as at the

end of the month (age-wise details as per

annexure):

Scope of Audit for Foreign Exchange Department

Sr.

No Particulars

Compliances

Yes/No Audit Observations

1.

Whether balances of postage stamps as on

date are as per postage register

2.

Verification of Expenditure under various

heads

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3.

Whether DD received towards

compounding fee is deposited to DAD a/c

(8614038) by CEFA Cell promptly

4.

Whether the said amount is credited to the

Banking Commission a/c (8024133)

without delay after issue of the

compounding order

5.

Whether the amount of penalty received

from the compounding entity is forwarded

to PAD promptly

6. National Pension Scheme :

Whether all the employees covered under


RBI and the details have been

communicated to Samadhan

a) No. of employees covered under

NPS who are yet to obtain PRAN/get it

tagged to RBI as at the beginning of the

month:


obtained PRAN/tagged to RBI, during the

month:


obtain PRAN/get it tagged to RBI as at the

end of the month (age-wise details as per

annexure)

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Scope of Audit for Financial Inclusion and Development Department

Sr.

No. Particulars

Compliances


1. Newspapers and periodicals bills-settlement

Whether there is any payment towards

Newspapers & Periodicals during the reporting

month.

2. Leave

Whether attendance register is maintained. Late

attendance would amount to forfeiture of leave.

3. Scrutiny of Vouchers

Whether 100% audit check/scrutiny of all the

vouchers of the period of audit report is

undertaken as per PARA .5 (i) to (v) of the

Synopsis

4. LDO’s Quarterly report

Whether the LBS quarterly report is submitted

to CO (CO letter

RPCD.CO.LBS.NO.9681/02.01.001/2011-12

dated March 27,2012 on LBS – Strengthening

flow of information from Regional Offices)

5. Maintenance of Subsidiary Ledgers

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i.

Whether subsidiary charges account ledger,

suspense account, sundry deposit ledger are

maintained as per Manual provisions, entries

are duly checked and authenticated by AM /

Manager.

ii.

Whether weekly reconciliation of transitory

account balances and monthly reconciliation of

charges account balances was done with GL

balances on regular basis.

iii.

Whether entries in the subsidiary ledgers were

checked by the concurrent auditors vis – a – vis

the supporting documents and the same were

found in order

iv. Whether it was ensured that all payments to staff

and outside parties were made by ECS/EFT.

v. Whether EFT credit was given to the correct

account.

vi.

Whether quarterly Charges A/c is reviewed vis-

a-vis approved budget allocation as per the

guidelines.

6. Annual Maintenance Contracts

Whether AMC Contracts are renewed &

payment is made properly.

7. Tax Deducted at Source

Whether TDS is deducted as per the provisions

of the Income Tax Act,1961

8. Reply to queries received under RIA

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i.

Whether any queries are received by FIDD

(MRO) under RIA during the month of April

2019.

Ii

Whether any replies to queries are furnished

under RIA

iii Whether there is any pending case.

Iv

Whether monthly statement is send to the

IRDC.

9. Verification of Dead Stock Register/File

Whether Dead stock register/file is maintained

up to date.

10.

Handling reference received from

Government Agencies

Whether any references or circulars received

by the department from the Government

Agencies during the month of April 2019.

11.

Service Tax Liability under Reverse charge

Mechanism


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Whether all the employees covered under NPS

have obtained PRAN, got it tagged to RBI and

the details have been communicated to

Samadhan:-



RBI as at the beginning of the month:





month .

Scope of Audit for Human Resource and Management Department

Sr. No.



1. ALLOTMENT OF FLATS

i.

Whether rent in respect of Bank's accommodation occupied by Officers/ Employees of other Offices of RBI, NABARD, IDRBT, NHB, etc., is being recovered as per instructions land the same are posted in relevant registers under proper authentication?

ii. Whether VOF/THH/HHs (Visiting Officers Flats /Transit Holiday Homes /Holiday Homes) rent is recovered promptly?

iii. Whether penal rent is Charged at the appropriate time and rate?

iv. Whether the record of recoveries to be made from the outgoing allottee is maintained and followed-up.

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v.

Whether rent recoveries register is maintained and there are any cases in which rents have not been recovered.

2. LEASE RENT PAID FOR TAKING FLATS ON LEASE

i. Whether lease rent has been paid as per the instructions of Central Office?

ii.

Whether proper head of account of Charges has been debited for making the above payment?

iii. Whether TDS has been correctly deducted?

3.

STAMP DUTY/ REGISTRATION/ BROKERAGE PAID IN RESPECT FOR LEAVE AND LICENSE AGREEMENT

i. Whether proper amount of stamp duty/ registration/ brokerage has been paid?

ii. Whether proper head of account of Charges has been debited?

iii. Whether stock of franked agreements (blank) tallies with the stock register?

4. LEGAL FEES PAID

i. Whether ED’s sanction is available for appointment of Advocates/ Senior Counsel?

ii.

Whether reasonableness certificate has been obtained from Legal Department before making the payment?

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iii. Whether proper head of account of charges has been debited?

iv. Whether TDS has been correctly deducted?

5. PROTOCOL AND SECURITY ESTABLISHMENT

i.

Whether payments are made to State Security Agencies in respect of Security Guards posted at various Banks’ Colonies correctly and without delay?

ii. Whether payments towards Dog Squad, are made properly?

6. LIVERIES

Whether scrutiny of bills in respect of purchase/stitching of liveries, purchase of monsoon equipment’s, shoes etc. is correct and paid without delay.

7. OFFICER’S LOUNGE AND DINING ROOM

i.

Whether monthly statements of accounts in form Gen. No.302 is prepared and subsidy debited to Charges A/c- Estt.Misc.-Expenditure incurred on a/c. of Officers Lounge stipulated in Para8.53.

ii. Number of Coupons surrendered during the month. Whether register is maintained or not.

iii.

Whether the accounts pertaining to OLDR (Officer's Lounge and Dining Room) are closed by 20th of the succeeding month and the entries in Suspense Account are reversed.

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iv.

Whether the subsidy is worked out properly before debiting to “Charges Account- Establishment- Miscellaneous- Expenditure incurred on account of Officers’ Lounge

8. RECRUITMENT SECTION

Whether travelling expenses to the candidates who are called and appeared for interview are paid as per the Master Circular No.CO.HRDD.G.25/35/05.38.01/2013-14 dated July 01, 2013.

9. IRDC – SPORTS CLUB

i. Whether grants paid to the Sports Club is as per instructions contained in Central Office Circular PPD.No.1061/43(I) 1994-95 dated May 27, 1994.

ii. Whether TA/HA to staff calculated properly and paid as per the extant circular?

iii. Whether staff have been paid Scholarship for their wards as per the eligibility and calculated correctly?

10. IRD CELL – HOLIDAY HOME DESK

Whether the rent received from employees on account of allotment of Holiday Homes is credited to the Rent Realized Account regularly.

11. ASSISTANCE TO WELFARE ASSOCIATION

i. Whether financial information statement has been submitted for claiming bank assistance

ii. h Whether the number of gold coins ordered is in accordance with the retirement orders

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received from HRMD and payments are made without delay.

12. SCHOLARSHIP AND INCENTIVE SCHEME

i. Whether any payment has been made towards scholarship schemes. Whether the same has been paid as per the extent guidelines.

ii.

Whether payment of course/ examination fee and ex-gratia as reimbursement under the Bank’s incentive Scheme is paid in terms of Master Circular CO.HRMD.No.G.21/22/26 .33.10/2015-16 dated July 01, 2015.

13.

ADVERTISEMENTS (RECRUITMENT SECTION/ ALLOTMENT SECTION/ IRD CELL)

i. Whether advertisements is published on due date?

ii. Whether all the approved advertising agencies advised to submit tenders?

iii. Whether RD’s sanction obtained for the lowest tender?

14. NEWSPAPERS & PERIODICALS

i.

Whether expenditure towards subscriptions to Newspapers/financial journals etc. Incurred in accordance with Paras 25 to 26 of RBI Expenditure Rules, 2009.

ii.

Whether a register in Form Gen.066 with separate folios for each journal, gazette etc. maintained to record their receipt.

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iii.

The sale of Bank's publications, the details of amount realized, the date of realization and date of credit to the respective head of account etc. should be checked and correctness verified.

15. BANK'S CAR

i. Whether bills are paid without delay for purchase of petrol, Repairs to Bank’s Car etc.

ii. Whether bills paid to the travel agency in respect of the cars hired by the office are in order and paid accurately without delay.

iii. Whether capitalization of dead stock articles was done correctly.

16.

STATIONERY SECTION – Please refer to Appendix in

Vol. II of DAD Manual

i. Verify whether lowest quoted rate accepted and wherever the higher rate has been approved, reasons therefore are recorded and approval of the competent authority obtained (Para 4).

ii. Whether the stationery bills are passed for payment by the competent officer as per the RBI Expenditure Rules, 2009 without delay.

iii.

Whether the stationery bills are duly certified by AM and paid without delay [Para 7(a)]

17. MAINTENANCE OF SUBSIDIARY LEDGERS -

i.

Whether weekly reconciliation of transitory a/c balances & monthly reconciliation of charges a/c balances was done with GL balances on regular basis.

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ii.

Whether entries in the subsidiary ledgers were checked by the concurrent auditors vis – a – vis the supporting documents and the same were found in order. (DGBA Circular No. 19 dated 08.11.2005).

iii.

Whether it was ensured that all payments to staff and outside parties were made by ECS/NEFT. Whether NEFT credit was given to the correct account.

18. RECOVERY OF TDS /ST

i. Whether TDS is being deducted as per specified rates under the Income Tax Act.

ii. Whether Service Tax is being deducted and paid as required.

19. IT CELL

i

Whether payments are made to vendors for purchase of computer related articles, bills raised for payment towards AMCs, Digital Certificates and any other financial transactions dealt by the Cell accurately and without delay.

ii Whether capitalization of dead stock articles was done correctly.

20. BUDGET ALLOCATION – EXPENDITURE REVIEW

Whether the Monthly Expenditure Review for April, 2019 has been forwarded to HRMD, ABC Cell.


Whether all the employees covered under NPS have obtained PRAN, got it tagged to RBI and the details have been communicated to Samadhan:-

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Scope of Audit for Office of Banking Ombudsman

Sr. No.

Particulars

Compliance

Yes / No

Audit Observations

1. Petty Cash / Imprest Cash

i. Whether petty cash register in form DAD 082 is maintained.

ii. Regularity of monthly verification of the balance to be checked.

iii. Whether accounting entries verified at the end of the each month.

iv. Preparation of vouchers as per expenditure Rules to be ensured.

2. Leave

Whether Leave register is maintained in the prescribed format and in case of late attendance, leave is forfeited or not.

3. Maintenance of Subsidiary Ledgers

i. i

Whether subsidiary charges account ledger, Suspense account Sundry Deposit ledger are maintained as per Manual provisions, entries are duly checked and authenticated by AM / Manager.

a) No. of employees covered under NPS who are yet to obtain PRAN/get it tagged to RBI as at the beginning of the month: b) No. of employees who have obtained PRAN/tagged to RBI, during the month: c) No. of employees who are yet to obtain PRAN/get it tagged to RBI as at the end of the month

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ii. ii

Whether weekly reconciliation of transitory account balances and monthly reconciliation of charges account balances was done with GL balances on regular basis.

iii. iii

Whether entries in the subsidiary ledgers were checked with the supporting documents and the same were found in order.

iv.

Whether it was ensured that all payments to staff and outside parties were made by ECS/EFT. Whether EFT credit was given to the correct account.

v. vi

Whether the quarterly charges a/c is reviewed properly & approved with the budget allocation as per the guidelines.

4. Library

i. i

Whether expenditure towards subscriptions to Newspapers/financial journals etc. incurred in accordance with RBI Expenditure Rules, 2018

ii. ii

Whether register in Form Gen.066 is maintained with separate folios for each journal to record the receipt.

iii. iii

What is the annual limit for purchase of books?

5. Conveyance Bills

i.

Whether the distance stated in conveyance bill is correct, the point of deviation in order, the mode of transport used appropriate from the point of view of eligibility and the amount claimed and admitted is proper.

ii.

Whether officers who are claiming reimbursement of conveyance expenses either for maintaining vehicle or on monthly-consolidated basis have claimed

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conveyance expenses separately for official trips of less distance than 8 kms. at headquarters.

iii.

Whether officers who are claiming reimbursement of salary for personal driver have claimed reimbursement of expenses on local trips for official purpose.

iv.

Whether, in cases where employees travel in groups of two or more, endeavor is made, to the extent possible to share the same conveyance, so as to keep the expenditure within the limits of necessity.

6. Stationery

i. Whether the stationery bills are passed for payment by the competent officer as per the RBI Expenditure Rules, 2018 without delay.

ii. Whether the stationery bills are duly certified by AM and paid without delay

7 Newspapers and periodicals bills-settlement

What is the annual limit for subscription of News-papers & periodicals and how is it utilized?

8. Postage

i. Dispatch of Letters

Whether the Department maintains a combined outward letter and postage register in form No.Gen.043 or the register in form No.Gen.044 and postage registration in form No.045.

ii. Franking Machine

a) Whether franking prepaid postage facility is obtained.

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b) Whether the franking of covers done as per the provisions.

c)

Whether cross checking of balance as per the register of postal franking with the machine readings is carried out every day Whether cross checking of balance as per the register of postal franking with the machine readings is carried out every day.

d) Whether defective franking is properly accounted

e) Whether eligible rebate receivable from Post Office is promptly claimed and accounted.

f)

Whether debit to respective Department’s Charges A/c. is being done in case more than one department is using the same franking machine.

iii. Use of Stamps instead of Franking Machines

Whether verification of the value of postage stamps on hand and unspent amount, custody of closing balance in cash and postage stamps on hand and surprise check by AGM are properly done with reference to Manual Provision.


Whether AMC have been renewed and properly recorded in the register.

10. Tax Deducted at Source.

Whether the TDS is deducted as per the specified rate in Income Tax Act, 1961.

11. NATIONAL PENSION SYSTEM

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Whether all the employees covered under NPS have obtained PRAN, got it tagged to RBI and the details have been communicated to Samadhan

i. No. of employees covered under the NPS, who are yet to obtain PRAN/get it tagged to RBI as at the beginning of the month

ii. No. of employees who have obtained PRAN tagged to RBI, during the month.

iii. No. of employees who are yet to obtain PRAN tagged to RBI as at the end of the month (age-wise details as per annexure).

12. Any other area having financial implications.

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Scope of Audit for Project Management Cell (PMC)

Sr. No

Particulars Yes / No Audit Observations

1. Sundry Deposits Account.

i. Whether Sundry Deposit a/c register is

maintained in the prescribed format.

ii. Whether any outstanding entries for more than 2

years noticed.

iii. Whether there is any outstanding balance as at

month end.

2. Earnest Money Deposits.

i. Whether Earnest Money Deposit A/c register is

maintained in the prescribed format.

ii.

Whether the amount is transferred to Security

Deposit Account after allotting the work to the

successful bidder.

iii. Whether any outstanding entry for more than

one year noticed.

3. Security Deposits.

i. Whether the Security Deposit Account Register

has been maintained.

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ii.

Whether Retention money deducted from the

contractor’s bills at the time of payment of bills is

credited to the security deposit account and

retained till the Defect Liability Period (DLP).

iii.

Whether Security deposits due for refund is

being refunded in time and there are

outstanding entries for more than three years

noticed

4. Reconciliations.

i.

Whether reconciliation of Sundry, EMD and

Security Deposit Account tallied with General

Ledger balance maintained with DAD as on 30th

April, 2019.

5. Paid Bills.

i.

Whether Bills are entered in the Inward Bills

Register are properly scrutinized and necessary

pay orders obtained.

ii.

Whether ‘PAID’ stamp is affixed on all copies of

the bills including duplicates, sanction notes, etc.

to guard against payment.

iii. Whether contractual provision for tender work

are properly followed.

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6. Income Tax/ Other Taxes.

i. Whether TDS is deducted as per the specified

rate in Income Tax Act, 1961.

ii. Whether payment of statutory dues (TDS, VAT,

etc.) was correctly made.

iii. Whether income tax and VAT recovered

wherever applicable.

7. Inward Bills Register

i.

Whether inward bills register and outstanding

bills register is maintained and put up to

DGM/GM

8. Bank Guarantee (BG) Register

i. Whether Bank guarantee register is maintained

and updated.

9. Sanction Registers

i.

Whether Sanction Register is maintained

properly and put up to the next higher authorities

at prescribed time.

10. IT cell

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i.

Whether reconciliation in respect of computers &

printers is done between main inventory register

& inventory register with IT cell.

11. Capitalisation of Project

i. Whether any project has been capitalized during

the month of audit.

12. Major construction projects

i.

Whether any major construction project was

undertaken during the month of audit.

ii. Whether periodical surprise checks are

conducted by concerned authorities.

13. Whether following registers are maintained as required (Only in case of Major projects)

i. Project Register.

ii. Register showing payments made to contractors.

iii. Subsidiary registers for recoveries affected from contractors’ running bills.

iv. Variation Register.

v. Hindrance Register.

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vi. Register for issue of Measurement Books.

vii. Register for issue of drawings.

viii. Site inspection book.

14.

Whether the instructions laid down in the PD

Manual regarding maintenance of Measurement

books were strictly followed.

15. i.

Whether records on various insurance

covers taken for construction work and

on workers by the contractors are

maintained.

ii.

Whether payments against bills of the

contractors are made after obtaining

insurance covers.

iii.

Whether insurance covers have been

duly extended without any break till the

period of completion of the project work

16.

Whether proper estimates are prepared before

awarding contracts.

17.

Before allowing payment of bills, whether the

following are verified

i.

Advance against material collected at site,

incorporated/utilized in the work later on is

scrutinized in the context of quality of material,

quantity of material, rate aspects.

ii. Running account / final bills. It is to be ensured

that the percentage test checking of

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measurement as delegated to respective officials

(Engineers) has been done or not?

iii.

It is to be ensured that the validity of the contract

has not expired. In case of expiry of contract,

whether the contractor has made application for

the extension and the same has been

recommended and forwarded to Central Office

by the local office

iv. The bill being processed is for the minimum value

stipulated in the tender.

v.

The appropriate amount towards electricity,

water, telephone etc.is recovered from the bill

payable to the contractor.

18.

Whether records to show high as well as low

rates quoted by the tenderer maintained.

19.

Whether test certificates for major electro

mechanical equipment’s have been received

before making payments.

20.

Whether excise duty, gate passes in original,

have been submitted for various electro

mechanical equipment’s attracting excise duty

before releasing RA/Final Bills.

21.

Whether cell is maintaining all prescribed records

and furnishing periodic reports to central office.

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22. Quotation Registers

i. Whether Quotation registers are maintained and

opened on the due dates without any delay.

ii.

Whether Expenditure Rules have been followed.

iii.

Whether prescribed procedure has been called

for quotations / tenders from the approved list of

contractors / suppliers.

23. Maintenance of Subsidiary Ledgers.

i.

Whether Subsidiary charges account ledger,

Suspense account , Sundry Deposit ledger are

maintained as per Manual provisions, entries are

duly checked and authenticated by AM /

Manager.

ii. Whether the payment is made by ECS/NEFT

iii.

Whether monthly reconciliation of transitory

account balances and charges account balance

was done with GL balance on regular basis.

iv.

Whether entries in the subsidiary ledger were

checked with the supporting documents and the

same was found in order.


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i. Whether AMC have been renewed and properly

recorded in the register.

25. Budget allocation – Expenditure Review.

i.

Whether expenditure incurred for the month is as

per budget allocation & the same has been

submitted to HRMD.

26.

Registers Verified.

i. Sundry Deposits Account Register.

ii. Security Deposits Account Register.

iii. EMD Register.

iv. Register of Inward Bills

v. Quotation Register

vi. Register of Annual Maintenance Contracts

vii. AC Plant stock Register

viii. Movement Register

ix. Measurement Books Register

x. Sanction Register

27.

VAT Tax, Service Tax in the bills included may

be checked for accuracy.


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Scope of Audit for Department of Payment and Settlement Systems

1. Reconciliation

Whether the monthly charges account is reconciled with DAD?

2. Bill Paid:

Whether the bills paid by the department under the following account heads

during the month are according to expenditure rule, Service tax rule, etc.?

3. Budget Allocation:

i) Whether the budget allocation is being reviewed every month?

4. National Pension Scheme:

i) Whether all the employees covered under NPS have obtained PRAN, got

it tagged to RBI and the details have been communicated to Samadhan.

a) No. of employees covered under NPS who are yet to obtain PRAN/get it

tagged to RBI as at the beginning of the month

b) No. of employees who have obtained PRAN/tagged to RBI, during the month

c) No. of employees who are yet to obtain PRAN/get it tagged to RBI as at the end

of the month (age-wise details as per annexure).

Whether all the employees covered under NPS

have obtained PRAN, got it tagged to RBI and

the details have been communicated to

Samadhan:-


who are yet to obtain PRAN/get it tagged to RBI

as at the beginning of the month:





month.

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