Empanelment of CA Firms for Conducting Internal Audit For Chandigarh Smart City Limited

Chandigarh Smart City Limited (CSCL) is a public limited Company incorporated under the Companies Act, 2013 as a Special Purpose Vehicle (SPV) on 26thJuly 2016. Company is having a equity participation of Municipal Corporation, Chandigarh (MCC) and U.T. Administration Government with the Authorized Share capital of Rs. 200 Crores to develop Chandigarh as a Smart City as per the Guidelines of the Ministry of Urban Development, Government of India.

Scope of Work (TOR)

The scope of work of the internal audit function is expected to evolve with the growth of the organization. Internal Auditor is also expected suggest preventive measures apart from remedial measures to avoid audit objections. The function of the internal audit is broadly designed to cater to the needs of the management so as to ensure the following and not limited to the same:

• The accounting system is appropriate and is being run efficiently.
• Adequate internal controls are established in the Company to safeguard the assets, ensure propriety of expenditure and to exercise control on payments.
• Verification of books of accounts to be maintained regularly without delay both in the branches and Implementing Agencies.
• Grants and loan assistance are received from various sources and the covenants there of are complied with.
• Sanction/disbursement of grants and loan assistance to various Agencies for implementation of projects are in accordance with proper procedure and the various sanctions and disbursement covenants are complied with.
• Reconciliation of funds released or transferred to Agencies and PMU/PIU for implementation of the projects including the advances released to NGOs for the community development programmes and for Low Cost Sanitation Scheme is done & confirmation of balances obtained at periodic intervals.
• Verification of other advances and deposits. Utilization Certificates to be verified for the physical progress for the settlement of the Advances and deposits.
• Verification of administration expenditure bills, staff advances, Festival Advances, Vehicle Advance, bills and other payments, receipts are checked and physical progress ascertained before releasing payment.
• Verification of expenditure incurred by the various implementing agencies on the project with respect of terms of sanction, cost of the project and individual components, mode of incurring expenditure and compliance with procedural aspects for incurring of the expenditure are carried out.
• Analysis of physical progress vis – a – vis financial progress in comparison with actual progress with project goals and analyzing reasons for short fall in performance are done.
• Verification of bank reconciliation statement and action taken on outstanding items are done.
• Verification of compliance with statutory deductions and their remittance to appropriate authorities are done.
• Verification of investment, realization thereon along with verification of interest or dividend received/receivable on investment are done.
• Verification of draft final accounts along with schedules and compliance of Companies Act 2013 in presentation of annual accounts.
• Verification of compliance with project implementation guidelines, including loan recovery from the beneficiaries, their utilization, repayment and accounting, financial guidelines directly received by the CSCL etc., by the implementing agencies are done.
• Verification of Annual Certificates to be submitted to the External Implementing Agencies as per prescribed formats and covenants of the Implementing Agencies.
• Expenditure is made with due regard to economy, efficiency and cost effectiveness.
• Applicable laws, regulations and other external or donor requirements and management policies and directives / guidelines are being complied with.
• To provide updated changes in the various statutory Acts and compliances.
• Any specific issue referred by the management.

Eligibility Criteria

Chartered Accountants Firms fulfilling the following eligible criteria as listed below shall be empaneled with CSCL.
Any form of Joint Venture / Consortium of firms will not be allowed for participation in the empanelment process. The eligibility criteria are as follows:

• The Chartered Accountants Firm should be a partnership Practicing Firm of chartered Accountants registered with the Institute of Chartered Accountants of India.
• The Chartered Accountants Firm should be in Practice for a period of not less than 5 years and should have been selected for PSU audit as on the date of application.
• Have at least 2 fulltime FCA partners who are associated with the firm for more than 3 years, out of which at least 1 FCA partners should be stationed at Chandigarh during Audit period.
• Have average professional fees/turnover of Rs. 50/-(Fifty Lakhs or above) in the last 5 financial years (Audited financial statements & ITRs to be submitted).
• Should have never been issued notice for failure to submit deliverables and cancellation of work order, forfeiture of EMD, etc., by any Government and / or semi Government / Autonomous entities. An undertaking to be submitted by the Firm to that effect.
• Should not have been barred from appointment by any government and / or semi government / Autonomous entities. An undertaking in the form of an affidavit on Rs. 100/- or an equivalent amount in multiple stamp paper to be submitted by the Firm to that effect. That the firm was not block listed by Government department.
• In depth knowledge of CPWD and GFR Rules is desirable.
• Should have the experience of Auditing Government of India schemes and exposure to Project Finance Management.

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