RFP terms and conditions
1. Project Objective
The Company wishes to appoint a competent internal audit firm to frame a Risk based Internal Audit Model & perform internal audit services for the Company in a co-sourcing model. The objective of the audit is as below:
- Provide recommendation for set up of organizational structure for Internal Audit (IA) function.
- Assistance in defining roles and responsibilities for IA function including the role of selected firm, PNBHF in-house Internal Audit team and external branch audit C.A Firm.
- Preparation of risk based audit plan for next 3 years.
- Assist in appointment of external branch audit C.A Firm to assist in audit activities for branches.
- Conducting audit for scope in functions.
- Suggest and support PNBHF in-house IA team and branch auditors to perform the review of agreed upon scope for branch offices, hubs and corporate office.
- Recommend the processes/systems/documents which need to be changed, established and/or optimised, to strengthen the internal controls.
- Consolidation of internal audit reports and assists management for action plan on the recommendations made by audit team.
- Present on a quarterly basis to Audit Committee/ senior Management on key observations and recommendation of the site audits and at corporate office
2. Scope of Work
A description of the envisaged scope is enumerated as under. However, the Company reserves its right to change the scope of the RFP considering the size and variety of the requirements and the changing business conditions.
Based on the contents of the RFP, the selected audit firm shall be required to independently arrive at the approach and methodology, based on globally acceptable standards and best practices among internal audit firms in India, suitable for the Company.
The audit will be carried out in accordance with Standards of Internal Audit (Internal Auditing Standards Board) issued by the Institute of Chartered Accountants of India in this regard. The auditor should accordingly consider materiality when planning and performing the audit to reduce the risk to an acceptable level that is consistent with the objective of the audit.
The indicative scope of the internal audit services covering the operational and support functions would be as follows. The firms are expected to detail down the scope and recommend the areas that PNBHF should be focusing:
| Areas | Areas |
| Underwriting & Pricing | Product Development, Marketing & Sales |
| Operations | Statutory & Regulatory Compliance |
| Contract Risk Compliances | General Accounting |
| Information Technology | Investments, Loans and Deposits |
| Human Resource | Treasury |
3. Deliverables
The deliverables shall include the following:
- Internal audit reports on periodical basis for the areas covered.
- Follow up on compliance.
- Suggestive action for correction & improvement.
4. Eligibility Criteria
Audit firm’s (bidding entity only) experience as per criteria’s listed below.
5. Submission of Bids
The bids shall be in two parts viz. Technical Proposal and Commercial Proposal both of which shall be submitted in separate sealed envelopes superscripted “Technical Proposal” and “Commercial Proposal”. These two separate sealed envelopes should be put together in the sealed master envelope superscripted “Appointment of reputed Chartered Accountant firms for providing internal audit services to PNBHF: RFP response”.
The Technical Proposal shall be organized and submitted as per the following sequence:
- Table of Contents
- Executive Summary
- Details pertaining to the bidder for each of the qualifying criteria mentioned below. For each assignment, please indicate, inter alia, the scope of work, timing and duration of the assignment, contract amount, nature of firm’s involvement.
- Proposed approach, deliverables and timelines.
- Proposed team composition (Project Director/Partner, Project Manager and team members) and their credentials [professional qualifications, details of relevant experience.
- Appendix: All copies of certificates, appointment letter, documentary proofs etc. in support of claims made with respect to eligibility criteria as per list of documents mentioned below
The Commercial Proposal shall indicate:
Price of drafting Internal Audit model & carrying audit for each of the audit area as per scope of work exclusive of taxes for next 3 years.
In addition, details and rates of applicable taxes shall also be mentioned. The bid amount should also include all out of pocket expenses including travel, boarding and lodging. The bid shall be in Indian Rupees (INR) only.
One (1) hard copy and one (1) soft copy on CD ROM of all submissions must be provided as part of the submission. It should be noted that in case of any discrepancy in information submitted by the bidder in hard-copy and soft-copy, the hard-copy will be given precedence.
The Bids shall be addressed to:
The Managing Director,
PNB Housing Finance Ltd.
9th Floor, Antriksh Bhawan, 22 K G Marg
New Delhi -110001
Only one submission of response to RFP by each audit firm will be permitted.
RFPs will remain valid and open for evaluation for a period of at least six (6) months from the time the RFP submission process closes on the deadline for submission of bids.
