Engagement of Chartered Accountant for Internal Audit


INDIAN INSTITUTE OF MANAGEMENT BODH GAYA

Magadha University Campus, Turi Buzurg

Bihar – 824234

 

Date: 17.8.2017

Engagement of Chartered Accountants’ for Internal Audit

As a mentor Institute, IIM Calcutta (IIMC) maintains all Books of Accounts of IIM Bodh Gaya (IIMBG) at the Accounts department of IIMC. Government has allotted land for IIMBG but at present academic activities of IIMBG is carried out from Directorate of Distance Education Building, Magadh University Campus, Bodh Gaya, Bihar. The Books of Accounts may be transferred to IIMBG as per the directive/guideline of MHRD. Internal Auditors will be required to visit IIM Bodh Gaya once in a quarter. TA/DA will be paid as per rule.

Offers are invited from eligible leading Kolkata based Chartered Accountant Firms which are registered, empanelled with C&AG and have a minimum annual turnover of Rs. 150 lakhs for the years 2014-15 and 2015-16 for engagement as Internal Auditors of IIM Bodh Gaya. Interested firms may submit their applications with all details within 15 days from the date of this advertisement to The Senior Administrative Officer (Purchase), Indian Institute of Management Calcutta, D. H. Road, Kolkata-700104 . IIM Bodh Gaya has started the Post Graduate Diploma Programmes from the academic session 2015- 2016 under the mentorship of Indian Institute of Management Calcutta.

SCOPE OF WORK:

The scope of work is stated below:

  1. INTRODUCTION

    While discharging audit function, the Internal Auditor would generally ensure the following:

    1. Compliance with Govt. rules and Internal Governance procedures wherever applicable.
    2. Effectiveness of internal control system
  2. SCOPE OF WORK

    1. PRE-AUDIT

      Pre-audit of certain specified transactions on case to case basis restricted to compliance vis-à-vis processes and procedures.

      The following areas are to be covered by Internal Audit:

      1. Pre-audit of bidding process/selection of contractor for construction works (Capital).
      2. Pre-audit of bidding process/selection of contractor for maintenance works (for values equal to or more than Rs. 3 lakhs).
      3. Pre-audit of bidding process/selection of Contractor/Vendor for supply of computer/Computer peripherials/Equipment and materials, Accessories for networking (for values equal to or more than Rs. 3 lakhs).
      4. Pre-audit of bidding process/selection of Contractor/Vendor for hiring of PC/Projector/Printers (for values equal to more than Rs. 3 lakhs)
      5. Pre-audit of purchase process/selection of contractor/vendor, purchase order/selection of advertising agencies/empanelment of vendors (for values equal to more than Rs. 3 lakhs)

      Pre – Audit Report should be submitted within five days from the receipt of documents from the concerned department.

    2. TRANSACTION AUDIT AREAS – Quarterly Basis.

      The items to be covered are given below:

      1. Scrutiny of Cash and Bank Book
      2. Scrutiny of General Ledger and Subsidiary Ledger
      3. Verification of Bank Reconciliation Statements
      4. Physical verification of cash in hand and cheques in hand
      5. Verification of TDS transactions
      6. Verification of investment, Scrutiny of advances to suppliers, contractors, employees
      7. Checking of Bills of Contractors and Payment Vouchers
      8. Scrutiny of recovery of PF, NPS, Income Tax, P. Tax, etc. from Salary Bill and payment to respective authority.
      9. Scrutiny of calculation and deduction of Income Tax from the Salary of the employees
      10. Verification of Bill, Payment of Vouchers (Both Cash & Bank), Journal Vouchers and all Records maintained by Accounts Department.
      11. Checking of Payment vouchers with reference to Cheque Register (in case of payment by Cheque/Bank Draft etc.) and with reference to File/Register (in case of payment through RTGS/NEFT/Bank Transfer)
      12. Fees reconciliation for fees collected from the students of all courses conducted by IIMBG from time to time.
    3. FINALISATION

      1. Certification of half-yearly and Annual Final Accounts before submission to the Board.

        • Audit of Half yearly Accounts.
        • Audit of Annual Accounts.
    4. THRUST AREA AUDIT – To be covered over the year

      1. Academic Programme
      2. Purchase &, Stores and Transport
      3. Tender Process including selection of vendors
      4. Capital Expenditure
  3. AUDIT REPORT/CERTIFICATE

    Submission of

    1. Half Yearly Internal Audit Report
    2. Audit/Review Report on Half Yearly Accounts
    3. Audit/Review Report on Yearly Accounts
  4. TAXATION MATTERS
    1. All direct tax matters relating to the filing of returns for each Assessment Year within the due date, TDS exemption certificate, Refunds and all other mandatory activities.
    2. All indirect tax matters relating to Goods and Service Tax (GST) as per the applicability and all other indirect tax compliances.

Application Details:

The applications should be submitted in a sealed envelope containing the following information/documents:

  1. Name of the Firm
  2. Full Address with contact number, website, email ID, etc. of the Firm.
  3. Year of Registration and Number.
  4. Registration details with CAG (endorse the recent letter/documents issued by CAG relevant to the Financial Year 2016- 2017).
  5. Number of full time partners (FCA & ACA).
  6. Number of qualified assistants.
  7. Number of Semi-qualified Assistants/Audit Assistants (Honors Graduate/Post Graduate in Commerce)
  8. Details of experience in the audit of large PSU/Govt. Dept. & autonomous bodies funded/controlled by Central/State Government (give details of audit conducted in the last 3 years).
  9. Details of previous experience of Internal Audit provided by the Bidder to similar Govt. funded institutions in the last three financial years i.e. 2014-15 to 2016-17. Attach photocopies of letters of award/Agreement of the firms to whom similar services have been provided, along with complete contact details.
  10. The annual turnover of the audit firm in last two financial years (FY 2014-15 & 2015-16) must be more than Rs. 150 lakhs per annum. Audited Accounts for the financial years 2014-15 and 2015-16 along with the certified copies of Service Tax Returns for the financial years 2014-15 to 2015-16 are required to be submitted by the bidder. (Enclose the documents with the application)
  11. Name, Contact no. of the Principal Partner.
  12. Any other information.
  13. Hard copy of the Bid document duly stamped and signed in each page by a partner.

NB:

  1. Bidders will be requested to submit both the Technical and Financial Bid and all documents with the Application. The Technical Bid and Price Bid are to be submitted in two separately sealed envelopes distinctly marked accordingly.
  2. Financial Bid is only for Internal Audit Fees. No Travelling/Conveyance and/or accommodation expenses will be paid to Internal Auditor.
  3. Bidders will be requested to attach a Summary Sheet and an Index of all the documents required to be submitted.
  4. Applications will be rejected if all information and/appropriate documents are not submitted.
  5. The Director, IIMBG reserves the right to accept or reject any or all applications without assigning any reasons thereof.

Additional Information to the Bidders

  1. The Audit team should consist of one qualified Chartered Accountant with three years’ post qualification experience and one inter CA/M.Com assistants. Preference will be given to the bidders if the team consists of at least one staff having qualification of B.Com (Hons.)/M.Com. One more assistant during finalisation of Half Yearly/Annual Accounts. Half yearly Accounts is generally conducted from the first week of November to the first week of December and Annual Accounts from the second week of May to the second week of June after the end of the financial year. Qualified Chartered Accountant will act as Team Leader and should visit the IIMBG a least twice in a week and three days in a week during finalisation of Half Yearly and Yearly accounts.
  2. Normally the composition of audit team should not be changed. However, under certain circumstances beyond control of the Audit firm, if the same needs to be changed in any manner, it may be done after prior consultation with the appropriate authority. The audit team members should carry Photo ID issued by the Audit Firm.
  3. Partner of the firm, in charge of internal audit of IIMC, should be available at least one day in a month to guide the audit team and for discussion with the Management.
  4. The audit team will conduct audit concurrently month to month basis, throughout the year, as per the scope of work enclosed.
  5. The bidders may inspect the volume of books of accounts of IIMBG. This is a new IIM and therefore the volume is much smaller as compared to old IIMs.

Procedure for Selection

The details of the content and evaluation of your Technical Bids and Financial Bids is stated below:

  1. TECHNICAL BID (40 points):

    Your technical bid should contain the following parameters:

    1. Years of experience in similar job;
    2. No. of staff to be deployed for the job:
      i. Team Leader:     Name          Qualification
      ii. Others:            Name          Qualification
    3. Years of experience of Internal Audit in Academic Institutions.
    4. Detail Work Plan (Submit in a separate sheet)

    PS: Please provide supporting evidence for point no. 1 & 3.

    The scoring for the Technical Bid would be 40.

  2. FINANCIAL BID (60 points)

    1. The Scoring for L1 will be 60.
    2. Rest would be determined by the following formula: 60/Your Bid x Lowest Bid


Senior Administrative Officer (Purchase), IIM Calcutta
& Convener-Purchase Committee, IIM Bodh Gaya