Empanelment/EOI for Appointment of Internal Auditor for RCDF Units

 The Rajasthan Co-operative Dairy Federation (RCDF) has invited limited bids from Chartered Accountant (CA) firms, empaneled with the Registrar Cooperative Societies, Rajasthan, for the 2024-2027 term. The bid is for the appointment of an Internal Auditor for RCDF’s headquarters and units for an initial period from October 1, 2024, to March 31, 2025, with a possible extension until March 2026, based on performance. Eligible CA firms must physically submit their proposals, along with a firm profile, by September 23, 2024. The internal audit will cover various RCDF units, including cattle feed plants, dairy farms, and offices in Jaipur, Ajmer, Bikaner, Jodhpur, and other locations. The scope of the audit includes verifying financial management processes, auditing purchase orders, fixed assets, accounts, bank reconciliations, and adherence to tax regulations such as GST, TDS, and TCS. Regular visits by auditors and monthly reporting are mandatory, and the audit aims to ensure efficient financial control, detect discrepancies, and recommend improvements. RCDF reserves the right to alter terms and cancel appointments if unsatisfactory performance is observed.

Rajasthan Co-Operative Dairy Federation Limited

No. F.2/RCDF /Acctt. (I.A.RCDF )/2024-25/24157

Date : 06-09-2024 

LIMITED BID NOTICE INVITED FROM EMPANELED CHARTERED ACCOUNTANT FIRMS OF REGISTRAR CO OPERATIVE SOCIETIES RAJASTHAN JAIPUR IN THE PANEL PUBLISHED BY RCS FOR 2024-2027 EXPRESSION OF INTEREST FOR APPOINTMENT OF INTERNAL AUDITOR FOR RCDF UNITS

ALL REGISTERED EMPANELED C.A. FIRMS OF
REGISTRAR CO-OPERATIVE SOCIETIES RAJASTHAN JAIPUR

RCDF intends limited Bid proposal for appointment of Internal Auditor of its Head Quarter and Units from empaneled Chartered Accountant firms registered in the panel of CA firms of the Registrar Cooperative Societies Rajasthan Jaipur for the year 2024-2027. Appointment of Internal Auditor shall be for a period from 01.10.2024 to 31.03.2025 which may be extended for another one year till 31.03.2026. The details of the Bid Document is enclosed.

(Lalit Verma)
Financial Advisor

No. F.2/RCDF /Acctt. (I.A.RCDF )/2024-25 /

Date :

LIMITED BID FOR EXPRESSION OF INTEREST FOR APPOINTMENT
OF INTERNAL AUDITOR FOR RCDF UNITS

ALL REGISTERED EMPANELED C.A. FIRMS OF
REGISTRAR COOPERATIVE SOCIETIES RAJASTHAN JAIPUR

RCDF intend to appoint Internal Auditor for its Head Office & Units for a period from 01.10.2024 to 31.03.2025 which may be further be extend for another period of one year till 31.03.2026 based on the performance of the Firm.

The name of Units of RCDF are as under:-

1. RCDF Head Office- Jaipur and Liaison office- New Delhi

2. Cattle Feed Plant -Ajmer

3. Cattle Feed Plant- Bikaner, Seed Processing Plant- Bikaner and Rojari Dairy Farm – Bikaner

4. Cattle Feed Plant- Jodhpur and Germ Plasm Station- Narva Jodhpur

5. Cattle Feed Plant- Lambiyakalan (Distt. Bhilwara )

6. Cattle Feed Plant- Nadbai

7. Cattle Feed Plant -Pali

8. Exotic Nucleus Farm- Bassi and Frozen Semen Bank- Bassi and Metro Dairy Plant Govindgarh Tehsil Chomu Distt Jaipur

All the C.A. Firms registered in the Panel of the Registrar Co operative Societies Rajasthan for the year 2024-2027 eligible for appointment may submit physically their proposal in prescribed format (Annexure A) with latest updated profile of the firm. Proposal for the selection and appointment as Internal Auditor shall be submitted on or before 23.09.2024 by 12.00 P.M. in the office of M.D. / F.A., RCDF. The terms of Reference (TOR) is as per Annexure B. The Scope of Audit is be as per Annexure C. The Fee Structure is as per Annexure D. The decision of the Committee constituted for this purpose shall be final. The committee reserves the right to add alter the terms and conditions in force at present.

(Lalit Verma)
Financial Advisor

(To be submitted on the letter Head Of the CA Firm)
Annexure A
Application for appointment of Internal Auditor at RCDF )

1. Name of the CA Firm: __________________

2. RCS Panel No for Panel: __________________

2024-2027 notified by

RCS

I/ We agree with the terms and conditions / TOR for this proposal. We further undertake that our firm shall be responsible and agree for the due requirement / modification for the best purpose of Internal Audit / pre check system.

( Signatures )
Name of Partner / Proprietor of the CA Firm ::
Member Ship No.
FRN No.
Pan No.
GST No.

Annexure B

(Terms of Reference ( TOR )

1. The Scope of Work related to Internal Auditor is here by attached as Annexure-C. Accordingly, a qualified C.A. from concerned CA. firm must visit within every 15 days and submit the monthly audit report in the first week of the next month to the respective Cattle Feed Plant & Units offices including Head Office of RCDF. Further, it is an obligation of the concerned Internal Auditor to submit one copy of Internal Audit Report to RCDF Head Office.

Following procedure is to be adopted by the Unit while submitting the Vouchers and files to the Internal Auditor for Audit.

a. Bill passing register indicating the Budget, name of the party, to whom the payment is released, name of the account head and amount payable

2. The scope of Audit will be as per the enclosed guidelines Annexure “C”. The scope of audit mentioned is minimum expectation from the Internal Auditor and in no case restricts them to audit other areas of financial management suggest measure/ entries for improvement in a sustained manner and also to suggest entries for declaring the BAD Debts of the amounts which the chances of recovery are rare as per the age wise classification of the debtors (including the advances given to parties and staff) sample basis checking of the Receipt / payment Vouchers as per the provision of the GST Act. Reconciliation of Sales and Purchase Accounts with Store Books on monthly basis and to report short comings in the Report.

3. The payment will be released by the respective unit on receipt of Internal-Audit Report along with your professional bill on monthly basis to the respective unit.

4. In case of non fulfillment of the requirement as per guide lines and content of this appointment letter RCDF reserves the right to Cancel the above appointment without giving any opportunity and the decision taken by the RCDF will be final and binding on the Firm.

5. RCDF also reserves the right to suggest you to change the representative deputed for internal audit work in case Management of RCDF is not satisfied with the working of the representative and in such conditions you have to replace the representative on decision of RCDF

6. In case if the firm to whom the work of Internal Audit is allotted wishes to discontinue the audit work the firm is required to give one month notice to RCDF in such case RCDF reserves right to forefeit two month fees payable to the firm or allowed this period to audit work in such instance.

7. RCDF Reserves the right to cancel the appointment of the Chartered Accountant Firm appointed as Internal Auditor in the case the services of the CA firm are not found satisfactory as per the laid — agreed terms and conditions of appointment order .

(Lalit Verma)
Financial Advisor

Annexure” C:

SCOPE OF WORK OF INTERNAL AUDITORS FOR RCDF UNITS S

The Internal Auditors shall have to look into all the aspects of working which affect the financial management of the RCDF Units and any abnormality noticed by them whether covered by the guidelines or not, should be brought to the notice of the RCDF.

Internal Auditors, shall have working experience on Tally, Prime Software Packages.

A qualified C.A. from concerned CA. firm must visit within every 15 days and submit the monthly audit report in the first week of the next month to the respective Cattle Feed Plant & Units offices including Head Office of RCDF.

1.0 PURCHASES EFFECTED BY PURCHASE / FO & AH/ QUALITY / STORES AND OTHER SECTIONS AS WELL AS FOR RCDF UNITS ALSO

Audit of all payments including verification of bank guarantees and other documents of security etc. It should be ensured that all the terms and conditions of Purchase agreement are fulfilled. All the applicable taxes are proper deducted and charges in the invoices.

1.1 All purchase proposals to be audited and examined critically with a view to check that:

a) The requirement of purchases must be as per production plan, consumption pattern and as per minimum/maximum order level.

b) Budget provision exists.

c) Proper procedures have been followed.

d) Full justification for recommendation is given.

e) In case of all inclusive rates, prevailing rates of taxes/duties are indicated in the proposal.

f) In case of repeat orders, any change in rates/taxes should be brought out in the proposal.

g) Complete examination of Tender files, Rate revision File for Cattle. Feed, Tender file of Purchase of Cattle Feed Raw Material, Packing Material All type and all other tender related files (including Security services and Manpower contract files etc.)

h) Proper procedure as per as per the Provisions of Rajasthan Transparency and Public Procurement Act 2012 and Rules 2013 is followed during the course of Inviting the tenders for procurement, labour and manpower services .

1.2 Internal Audit of purchase orders and contracts (including amendments) and verify that they are within budget estimates and as per delegation of powers. While approving any amendments the financial implication should clearly be mentioned in the proposal.

1.3 Internal Audit of all payments including verification of bank guarantees and other documents of security etc. It should be ensured that all the terms and conditions of Purchase order are fulfilled. The CMR’s in support of supply of material should clearly certify the quality and quantity of the material as per the order.

2.0 FIXED ASSETS/STORES & INVENTORY

2.1 Verify that material/assets including that shifted from one project to another are accounted properly and without delays.

2.2 Verify that all Assets, materials and stores including cash have been properly and adequately insured.

2.3 Verify that all the fixed assets appearing in RCDF/Units books are registered in the name of RCDF- Units and proper Asset Records are maintained by the operating division and are duly reconciled. Physical verifications should be carried out at least once a year & acknowledgement of material lying with suppliers/contractors or those given on loan should be verified.

2.4 Verify that unusable/obsolete stores/commodities, discarded/dead stock are disposed off only after approval of the proper authority.

3.0 ACCOUNTS

3.1 All payment/receipt/adjustment vouchers should be audited and full vouching done.

3.2 Prior period expenditure/income should be accounted for as such.

3.3 Audit the Bank Reconciliation statements and report unadjusted items and any delays in preparation of the same.

3.4 Examine that instruction for renewal or encashment of investments such as FDR’s etc. are made in time and there is no loss of interest.

3.5 Regular scrutiny of cash book, Bank books, journal, ledgers, trial balances, periodical accounts etc. should be carried out with particular reference to large/old outstanding recoveries from suppliers/contractors/debtors/railways insurance/transporters/cement companies for refund etc. Cash should be physically checked at least once a month.

3.6 To verify that balances are confirmed from all parties and age-wise break up of debtors is available and to assess about the recovery of the amount from the parties in case the chances of recovery / adjustment are rare provision for bad and doubtful debts may be suggested and accordingly the entries may be ensured in the books of the Units concerned. Same procedure is to be followed in respect of the advances given to the staff.

3.7 Inter-Unit/Union reconciliations should be checked and all the differences and items outstanding for more than 3 months reported.

3.8 All calculation of interest, including penal interest should be checked.

3.9 To verify whether all liabilities towards repayment of loans from NDDB/Banks or other institutions are discharged in time.

3.10 To verify whether provision for all liabilities is made in the accounts and to ensure that the accounts are maintained on generally accepted accounting principles.

3.11 To verify whether royalties/ stamp duty and management fee etc. is recovered in time.

3.12 The following events/occurrences should be reported specifically:

a) Losses due to theft, negligence, fraud, breach of trust.

b) Large idle balances with bankers in current account.

c) Bank guarantees expired before settlement/not honored on presentation.

d) Delays in collection of funds.

e) Improper/inadequate utilization of funds received for specific purposes.

f) Rejection of claims due to delay in lodging claim/non-compliance of procedural requirement.

g) Status of various type of insurances, whether live or not?

3.13 It is the prime duty of the Internal Auditor to give concrete opinion in the matter of Deduction of TDS/ TCS/ GST on the payments made are as per the required rates prescribed as per the Acts.

3.14 Checking of Monthly Trial Balance (reconciliation with manual books of accounts with Tally) and to report discrepancy noticed if any.

3.15 PROJECT PAYMENTS : Internal Auditor is suppose to check the MB’s and Bills related to Civil Works and to ensure that the Deductions / Recovery on account of Royalty , Stamp Duty , Building Welfare Cess , Income Tax, Service Tax is made out of the bills as per the norms :

3.16 Scheme Accounts : Internal Auditor shall check the Utilization Certificates being prepared by the FO&AH Section , BD Section and as also in the case of M.U./Units where the funds are received under various schemes of GOI / GOR.It is to be ensured that all the scheme payments are made through the designated Bank Accounts jointly under the signatures of M.D./Manager of the concerned Milk Union/Units and Financial Advisor RCDF.

4.0 TRADING ACTIVITIES

4.1 To check all the purchase Contracts, Sales Contracts, Godown Issue Vouchers, receipt Vouchers and all other Vouchers, Documents, Books and records supporting the payment, receipt, issue and other movement of materials.

4.2 To further verify that proper procedures are followed for all purchases and Sales contracts.

4.3 To verify that stocks are covered adequately through insurance and regular physical verification of stocks are carried out ensuring that stocks are identifiable and are stored separately and properly.

4.4 To verify that all materials consumed/received are booked as purchases.

4.5 To verify that proper actions have been taken and adjustments made in respect of normal and abnormal shortages in the materials after verification of the reasons for shortages.

4.6 To verify that the system for appointment of distributors and payment of commission etc. and other charges are being followed properly.

4.7 To verify that advances received from the buyers are properly accounted and that payments towards purchases are adjusted/released in accordance with the terms of the contracts duly supported by stores documentation including the adjustment of rebates/recoveries wherever applicable.

4.8 To ensure that proper periodical operating statements are being furnished to the management specifically looking into the following issues every month.

a) Transit losses/storage losses.

b) Process losses.

c) Non filing of Insurance claims for losses.

d) Rejection of claims by carriers/under-writers.

e) Difference in reconciliation of physical/book stock.

f) Delays in invoicing and refund to parties.

g) Delays in adjustment/payment to suppliers.

h) Delays in producers payments.

i) Reconciliation of Sales bills / Purchase bills from the Stores Ledgers and to ensure that the proper booking is made in the Accounts and Stores (specially where the sale of goods is made in cash / or through bank ( by way of NEFT/RTGS )

4.9 Verify that all purchase/sales transactions are properly and timely accounted for and checked.

4.10 Verify that all debit notes/demand notes/credit notes are timely raised and settled.

4.11 In the case of Earnest Money / Security Deposits / Misc and other deposits age wise classifications is to be ensured and in case if it is found that the no claims are produced by the parties by one or other reasons recommendations be made for forfeiture of these deposits and accordingly the entries may be suggested by the internal auditor.

4.12 Reconciliation of Unit/ Union and Head Office accounts is to be ensured by the Internal Auditor and the pending entries may be checked and corrective measures be suggested accordingly.

4.13 All type of Grants accounts are specifically checked and the Utilization certificates issued to various government agencies are to be pre audited after ensuring the amount of Utilization mentioned in the Utilization certificates tallies with the amount as per the ledger of the concerned head of grant.

4.14 A statement showing the details of the expenditure in excess with the approved budget of the Unit is to be given in the Monthly Internal Audit report.

5.0 LEGAL COMPLIANCES & OTHER ITEMS

5.1 Verify that rules, regulations, procedures (including clarifications issued by the management) are complied with and to ensure contingent liability provision for the Court Cases which are pending before the various court of law.

5.2 Verify that provisions of various statutes such as bye-laws, Co-operative laws, PF Act, Income-Tax, GST Laws, Sales-Tax, Excise and Customs law, Motor Vehicles Act, Professional Tax (including submission of timely returns) etc. as well as any regulations, rules, notifications, etc. framed under the aforementioned statutes are adequately complied with.

5.3 Verify that concessions, if any, available are fully availed and all statutory dues are paid in time. All cases of defaults and charging of interest/penalties should be specifically reported.

5.4 To verify that all taxes as required under law are deducted at source (TDS,TCS,GST etc.) and deposited in time Internal Auditor is suppose to give the details of the tax deposited in the Monthly Internal Audit Report.

5.5 The internal control systems including working methods may be constantly reviewed and practical suggestions for improvement given from time to time.

5.6 A quarterly/half-yearly/Annual review of compliances with regard to post facto approvals and assurances contained in the audit replies may be reported.

5.7 Checking of receipt / payment vouchers and invoices inward and out ward in terms of GST Act.

5.8 Reconciliation of Challan with the gate pass and bills for the material received with the GR and stock registers maintained on random basis in a month .

5.9 Any other work as directed by Management from time to time.

6.0 PHYSICAL VERIFICATION

6.1 To check and verify all the fixed assists and item as on 31st March of the Financial Year.

6.2 To check and verify Stock of Consumable, inventory and other related items as on 31st March of the Financial Year.

The scope of audit mentioned is minimum expectation from the Internal Auditor and in no case restricts them to audit other areas of financial management suggest measure/ entries for improvement in a sustained manner and also to suggest entries for declaring the BAD Debts of the amounts which the chances of recovery are rare as per the age wise classification of the debtors( including the advances given to parties and staff ) complete checking of the Receipt / payment Vouchers as per the provision of the GST Act. Reconciliation of Sales and Purchase Accounts with Store Books on monthly basis and to report short comings in the Report.

(Lalit Verma)
Financial Advisor

Annexure “D”

Fee Structure for payment of Fees to the CA Firms appointed as Internal Auditor:

(Lalit Verma)
Financial Advisor