STATE BANK OF INDIA
INTERNAL AUDIT DEPARTMENT, HYDERABAD
EMPANELMENT OF CHARTERED ACCOUNTANT FIRMS FOR OUTSOURCING OF CONCURRENT AUDIT (TERMS OF EMPANELMENT)
1. SCOPE OF ENGAGEMENT:
The Bank have opted that clustering of branches/ outfits is to be strictly avoided. Hence, no Concurrent Auditor shall be allotted more than one branch for Concurrent Audit.
2. ELIGIBILITY CRITERIA:
Those firms which satisfy the following are eligible to apply:
a. Grade 2 and 3 firms as per RBI Grade as on the date of application for this purpose. (CA Firms of Grade-1 may also be considered for appointment, if they are agreeing to the fee structure payable to Grade 2 /3).
b. Firms having at least one year of experience of Concurrent Audit in any Commercial Bank.
c. Firms which have sufficient number of trained representatives of firm articled Clerk trained by ICAI on Concurrent Audit, Retired Officers of commercial Banks, qualified Chartered Accountants as Partner or Associate or as Staff, who will be available on all working days to attend to the Concurrent Audit.
d. Firms chosen for engagement as Concurrent Auditors should be other than the ones selected for empanelment as Statutory Auditors to eliminate any room for conflict of interest.
3. SUBMISSION OF APPLICATION:
Applications are invited from eligible Chartered Accountant Firms for empanelment as Concurrent Auditors in the Bank branches/ outfits. The duly filled in application form in a sealed cover superscribed as “Application for Empanelment of Chartered Accountant Firms for Concurrent Audit” should reach the respective Circle Audit Office on or before 16.09.2019 by 5.00 P.M.
i) The application and all correspondence and documents relating to this process must be written in English. The application must provide individual and factual replies to specific questions asked in the application. Documents submitted should be complete in all respects as required.
ii) Application marked Annexure-A needs to be submitted duly filled in with required particulars accompanied by self-attested supporting documents. All supporting documents to Application must be self-attested by the authorized signatory for the applicant firm
iii) Incomplete application without required supportive documents will not be considered by the Bank.
4. LAST DATE FOR SUBMISSION OF APPLICATION.
The last date for receipt of application is 16.09.2019. Please note that no application shall be accepted after 5.00 p.m. of the above date. Application submitted after due date or after the stipulated time of the due date or incomplete in any respect are liable to be rejected. The dully filled application along with the supporting documents should be submitted to the concerned General Manager (IA), Circle Audit Office (CAO) as per the Geographical location (CAO of Respective geographical area as per Annexure-C).. SBI is not responsible for non-receipt of completed application within the specified date and time due to any reason including postal delays or otherwise.
5. MODIFICATIONS AND/OR WITHDRAWAL OF APPLICATION
Application once submitted will be treated as final and no further correspondence will be entertained. As no subsequent modification of application/documents are permissible, the firms are advised to exercise utmost care in preparation and submission of application / documents.
6. OFFERS BY A THIRD-PARTY
The applicants are not permitted to authorize their Agents/brokers etc. (including individuals and/or third party firms/companies) to either collect or submit the application/ documents on their behalf. The Bank will summarily reject such requests and arrangements. No sub-contracting of the engagement is permissible.
7. SELECTION PROCESS:
i) Applications received, complete in all respect and within the prescribed time, will be scrutinized on the basis of the basic eligibility criteria as given above at Para 2 by a Selection Committee formed for the said purpose. Applications not accompanied by all the required details and supporting documents would be liable for rejection.
ii) The Bank reserves the right to disqualify any or all applications either on the basis of their responses without assigning any reasons, whatsoever. Those applicants who satisfy the requirements and specifications as determined by the Bank as per the terms and conditions of this document shall be short-listed.
iii) Those applicants who fulfill all the basic eligibility criteria will be evaluated based on location of firm, residential status of partners, experience, reputation, availability of sufficient trained personnel (ICAI Trained article clerks/ retired commercial bank officers) with the firm and such other factors as the Bank may deem fit for its requirements, will be taken into account to the possible extent in empanelment and allotment of concurrent audit works to the firms finally selected.
iv) The prima facie scrutiny of the applications will be done by a Screening Committee.
v) The final selection of the CA firms will be approved by a Selection Committee.
vi) Bank also reserves the right to make query with the firm or any other agency, ask for additional information, particulars, and submission of one, some or more undertakings from any firm at any point of time. None of such act shall be deemed as an offer of engagement as Concurrent Auditor by the Bank to the firm unless and until Bank intimates in writing to the firm regarding allocation of any branch / unit for concurrent audit.
8. OTHER TERMS & CONDITIONS:
i) Preference will be given to those firms which have ICAI trained Concurrent Auditors and those firms which have concurrent audit experience in State Bank of India (SBI).
ii) Concurrent Auditors shall normally be positioned at the location where the selected Branches / BPR Outfits operate.
iii) Concurrent audit to be done on daily basis. Trained representative of the firm (Articled Clerk trained by ICAI on concurrent audit) / retired commercial banks officers /qualified Chartered Accountants to be available on all days.
iv) One of the Principal Partners or senior partner to visit the branch at least 2/3 times a week, minimum 8 times every month, depending on the business and risk profile of the branch/BPR Outfits Number of visits may be increased depending upon the volume and need at the branch / outfit under concurrent audit.
v) Bank will impose financial penalty for unauthorized absence, non-detection of income leakage, major lacunae in conduct of account including reporting to RBI/ ICAI.
vi) Bank may impose non-financial penalty leading to termination of contract for instances of failure to comment on fraud, misappropriation of funds, any other serious irregularities which result in loss to the Bank.
vii) The Concurrent Auditor will be fully responsible for the quality of the audit, timely completion of audit and submission of the audit reports and reporting to controllers.
viii) Subject to the other provisions of this document, firm allocated to any branch can be reallocated to any other branch for any period as per the requirement of the Bank.
ix) Documents will be executed by all the partners before taking up the assignment of current audit of allotted branch.
x) The auditors engaged for CA are authorized to have access to any documents and records considered necessary for the performance of their functions within the auditee unit .He can also request members of the staff and management of the auditee unit to supply such information and explanations, as may be needed in carrying out his work, which is to be provided within a reasonable period of time.
xi) Any change in the name, address, constitution and partnership deed must be reported to bank within 15 days of such change with necessary supporting documents. Failing which, it will be treated as deliberate suppression of facts by the firm and thereby making them liable to compensate the bank for such change. In such eventualities, bank also reserves its right to terminate the contract with such firm without notice.
xii) New partners are to sign documents within 15 days of joining and not doing so will attract the provision relating to deliberate suppression of facts.
xiii) Outgoing partner will remain liable to Bank to the extent and period as determined by the Bank on case to case basis
xiv) The broad areas to be covered in the Concurrent Audit are as indicated in Annexure – B and shall be revised from time to time based on the requirements of the Bank. Concurrent audit will be on line as well as any other method / process to be adopted by the Bank.
xv) Firm when engaged as concurrent auditor cannot assign/subcontract the job in any sense of the term and in any form whatsoever it may be to any other person. Any assignment/subcontract of the job in some others favour either through operation of law or otherwise will deem the original contract as terminated.
xvi) In case any information furnished during the application process is found at any point of time, to be incorrect, SBI will not only summarily reject the application / terminate the contract without any notice, but also the applicant may be blacklisted from any future such process with the Bank.
xvii) SBI may share such information with ICAI, Reserve Bank of India (RBI) or Indian Bankers’ Association (IBA) which is the voluntary representative body of all banking institutions in the country or any other organization, who, in turn, may share the information among its member institutions.
xviii) Any terms and conditions beyond the scope of this process added by the bidder, whether implicitly or explicitly stated in any of the responses, will be ignored.
xix) Notwithstanding anything contained herein above, the Bank reserves its right to terminate the contract by giving 30 days prior notice to the other side without assigning any reason.
9. VALIDITY OF OFFER
The successful applicants have to execute the Contract within 10 days of issuance of work order / letter of selection by the Bank. The Contract should be valid for one Audit Cycle or such extended period as may be mutually agreed upon. Period of contract during the currency of the contract can be varied by the Bank based on its requirement.
10. DELIVERY, REPORTING AND REVIEWING SYSTEM
The Concurrent Audits should be conducted in the branches / outfits as per the agreed time frame as per WBCAS / Bank’s Concurrent Audit Manual, a copy / soft copy of which will be made available to selected firms after allotment of a branch / outfit.
The Concurrent Auditor has to prepare Audit reports as per specified standards/formats as given in the said manual and as will be required by the Bank from time to time.
Remuneration payable will be based on the business portfolio of the branch, category of the auditee unit (branch/CPC), specialized nature of work etc., as under:
|Business Level of Branches||Remuneration
|RBI Grade of Auditor|
|Deposit Rs 300 Crs & above and Advance < Rs 400 Crs||30000||Grade 2 / 3|
|Advances Rs 400 Crs & above||40,000 – 55,000||Grade 2 / 3|
|MCG Branches #||45,000 – 65,000||Grade 2 / 3|
|LCPC / TFCPC||30,000 – 35,000||Grade 2 / 3|
|RACPC / SMECC / RASMECCC||45,000 – 55,000||Grade 2 / 3|
# —Additionally – Concurrent Auditors may be given Rs.500/- p.m. per Account with fund-based and non-fund based exposure of Rs.10 Crs. and above, with additional accountability for detailed scrutiny of these a/cs
12. PAYMENT TERMS:
i) The payment for the audit work done will be made on submission of invoices with required particulars on completion of each calendar month. No payment is to be made unless all the monthly / periodical concurrent audit reports are submitted by the firm. Payment will also be subject to recovery if any penalties, damages etc. from the firm.
ii) TDS as applicable will be recovered from the bill amount while making payments and Form-16 will be issued as per law. In case of omission of any TDS by Bank, the same must be brought to the notice of the Bank and the firm has to return the amount to Bank towards TDS.
13. SECRECY ISSUES:
i) The empanelled firm and its employees will strictly undertake not to record by any means or to communicate or allow to be recorded by any means or communication to any person or divulge in any way any information relating to the conversations, events, ideas, concepts, know-how, techniques, data, facts, figures and all information, howsoever concerning or relating to the Bank and its affairs to which the audit firm /their employees etc. have access in the course of performance of the contract. The successful applicants will on award of contract will execute a non-disclosure agreement and declaration of fidelity and secrecy as per the Bank’s standard format. All personnel of the Concurrent Auditor, before commencing the Audit have to execute a declaration of fidelity and secrecy as per the format prescribed by the Bank and submit valid KYC documents at allotted branch / BPR outfit / Unit.
ii) No data in any name can be transferred or converted to any other media by the representative of firms under any circumstances. No public platform or social media or any media what so ever name it may be known can be used for any matter and issues relating to concurrent audit and relation, rights, responsibilities and obligations of the firm or Bank.
iii) All the information contained in this document is solely for the purpose indicated in this process. Reproduction of all or any part of this process by any person for any purpose other than for the purpose of responding to this or for any other purpose expressly permitted by this shall be treated as unauthorized and illegal and the Bank reserve the right to take appropriate action in such circumstances.
14. INDEMNITY TO THE BANK:
i) The empanelled firm shall indemnify SBI and keep indemnified against any loss or damage that State Bank of India may sustain on account of any unprofessional act causing downtime of mission critical systems, disruption to business operations, data loss, third-party claims on account of violation of patents, trademark, designs and other intellectual property rights, etc.
ii) Bank’s data, strategies, etc. should not be revealed or shared with any third parties including any other bank. The firm and its partners will remain liable to the Bank for any act of omission and commission during the period the period of concurrent audit which may come to light at any subsequent time by any agency including the Bank.
15. TERMINATION OF CONTRACT
i) The performance of the selected empanelled firms will be continuously reviewed by the Bank in terms of various requirement specified in Annexure-B of this document, appointment letter, SLA, Concurrent Audit Manual/processes and RBI directives/notifications on concurrent and various communications by the Bank to the firms.. Based on the review, if the selected firm fails to satisfy / maintain their commitment with respect to timely conduct of the audit, quality and content of the audit reports, the contract may be terminated by Bank by giving one month’s written notice to the firm. Regarding quality and content of the audit reports, banks decision is final and binding on the firm.
ii) Bank may terminate the contract by giving two months’ notice in case of deletion of any branch from coverage of concurrent audit when relocation of the firm to another branch is not feasible.
iii) Firm has to give two months’ prior written notice to bank to accept any assignment requiring relinquishing the present assignment.
iv) In case of any suppression of fact which the firm is required to disclose or intimate to the Bank within stipulated time during the period of contract, it will be treated as unethical act and the Bank can terminate the contract without giving any advance notice and the firm will be reported to RBI and ICAI for blacklisting. In addition, Bank will be entitled to indemnity and recovery of damages from the outgoing firm.
v) In additions to this, other circumstances leading to termination of contract, periodicity of notice, compensations have been incorporated in the Service Level Agreement (SLA) to be executed by the firms before taking up the concurrent audit at allotted branches.
In all other circumstances, contract may be terminated by either party giving 3 months’ notice or payment of full amount of remuneration including service tax to the other party. Under no circumstance the 3 months periodicity for termination can be reduced.
vi) SBI’s decision in this regard will be final. In case of termination of this contract, the SBI shall have the right to avail services of any other Audit firm to continue the process without any let or hindrance from de-paneled firm, whose services are to be terminated and outgoing firm also has to provide all necessary help, at their own cost, for smooth switch over.
vii) Any work done till such time, working papers and should be handed over to the Bank, without any demur. The work should not be disclosed to any other organization/bank.
The allotment of branches to the selected firms will be based on the suitability of the firm vis-a-vis the size, volume of business and criticality of the operations of the branches/ outfits to be decided by Circle Audit Office (CAO). The list of Centres where the Concurrent Auditors are proposed to be engaged is placed as Annexure-E.
There is no commitment or obligations, whatsoever on the part of the issuer of this process, or officials associated with it within the Bank, regarding the implementation for any future plans. Any assumptions made by bidders, on the basis of information shared herein, will be at their own risk and responsibility.
18. ADDRESS FOR COMMUNICATION:
The Address for Communication to concerned Circle Audit Office (CAO) is as per the list enclosed, marked Annexure – C
Last date for submission of application is 5.00 pm on 16/09/2019
Annexure –A- Application For Empanelment Of Chartered Accountant Firms As Concurrent Auditors
Annexure – B – Scope of Audit
Annexure – C – Address and Contact Details of Circle Audit Offices (CAO)
Annexure-D – Terms & Conditions Of Empanelment Of Chartered Accountant Firms As Concurrent Auditors
Annexure- F – Penalty Clauses