Empanelment of Auditors for re-audit of P.F. Accounts of EPFO, SRO, Vellore.

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Empanelment of Auditors for re-audit of P.F. Accounts of EPFO, SRO, Vellore.

Advertisement inviting Expression Of Interest (EOI) for empanelment of Auditors for re-audit of P.F. Accounts of Exempted P.F. Trusts under the jurisdiction of EPFO, SRO, Vellore.

Interested parties which satisfy the eligibility criteria are requested to submit their proposals in the prescribed proforma along with necessary enclosures as detailed in the EOI document available on EPFO website i.e. www.epfindia.gov.in www.epfindia.com latest by 12:00 Noon on April 05, 2017.

The EOI document containing detailed information relating to the scope of work, eligibility conditions and specified formats for submission of proposal can be downloaded from EPFO website or the same may be obtained between 10.30.AM to 12.30 PM and 3.00 PM to 5.00 PM on working days from the office of the undersigned by 31/03/2017 on payment of Rs.100.00 by way of DD drawn in favour of Regional Provident Fund Commissioner, Sub-Regional Office, Vellore.

Duties & Responsibilities of the Empanelled Auditor.

  • The Auditor while conducting audit of the Provident Fund Accounts of the Exempted Provident Fund Trusts, must:
  • Ensure that the audit is to be conducted by a team consisting of one leader and at least one staff personnel (who is qualified chartered account with at least one year of work experience). The leader of the team should be a qualified chartered accountant with at least five years of experience in the field of Statutory Audit and at least three years of experience in the field of audit of recognised pension funds/provident funds/superannuation funds. The audit should be carried out under direct supervision of a Partner of the chartered accountant firm if the leader of the Team is not a Partner of the Chartered Accountant firm.
  • Ensure that their firm is not engaged for audit of the same Exempted Provident Fund Trusts for any purpose other than the terms of reference contained in this EOI. This restriction would be only for the period during which the CA firm is empanelled as Auditor for audit of Exempted Provident Fund Trusts.
  • Ensure, to the best possible extent, that the team leader appointed to conduct the audit should continue in his role till the completion of the assignment. For any reason, if there is a change in the team leader appointed to conduct the audit, the same should be intimated to EPFO immediately.
  • Scope of work:
  • To carry out third party audit/re-audit of Provident Fund Accounts of the Exempted Provident Fund Trusts (a list of six Trusts under EPFO, SRO, Vellore is annexed as Appendix-I) as and when required by EPFO, SRO, Vellore and submit the audited Balance Sheet with the Auditor’s Report in the proforma specifically prescribed for the purpose by EPFO both in hard copy and soft copy to Regional P F Commissioner, SRO, Vellore within 30 days of assignment of the audit.
  • To examine and verify whether the Exempted Provident Fund Trusts have followed the investment pattern and investment guidelines as prescribed by the Govt. of India and to point out wherever deviations have been made.
  • To verify whether the interest and maturity proceeds are collected promptly and re-invested as per the provisions made in the Pattern of Investment. Also to point out delays, if any, and the causes for such delay.
  • To verify whether the funds were invested promptly by Exempted Provident Fund Trusts. If the funds remained un-invested for a significant period, then to assess opportunity cost/benefit due to delayed investments for un-invested period.
  • To verify whether proper records have been maintained in respect of all transactions and contracts and to ascertain whether the records are updated correctly and on timely basis.
  • To verify whether all shares, securities, debentures and other investments have been held in the name of Board of Trustees, of the Exempted Provident Fund Trusts.
  • To verify whether there is any violation of the 29 conditions of grant of exemption by the employer of the exempted establishments and the Exempted Provident Fund Trusts, and if so the details thereof. To bring out any other point/ shortcomings which comes to notice of Auditor during the course of audit
  • To examine whether the Employer/Exempted Provident Fund Trust has taken steps to rectify the shortcomings, if any, pointed out during the previous Annual Compliance Audit conducted by the EPF Authority or the Third-Party Auditor.
  • To assess and report the Provident Fund liability which will be passed on to the EPFO in the event of cancellation of exemption of a particular defaulting Establishment having Exempted Provident Fund, and the scope & feasibility for recovery of such liability from the defaulting Establishment and the employers.
  • The empanelment does not confer any right, whatsoever, to the empanelled Chartered Accountant Firms to claim any monetary fees for empanelment or to claim for any audit assignment mandatorily.
  • The empanelment shall be for a period of 3(three) years from the date of issue of intimation letter of such empanelment which is extendable further on mutually agreed terms subject to approval from competent authority.
  • Regional Provident Fund Commissioner/OIC, EPFO, SRO, Vellore may cancel the empanelment of any Chartered Accountant Firm(s) if any terms and conditions of empanelment is found violated.

Bid Evaluation Criteria:

The Pre-Qualification criteria for selection of Auditor is as follows:

  1. The name of the Partnership Firm should be registered with the ICAI. The Firm must have registered with the ICAI on or before 01 April, 2008.
  2. Should have valid Income Tax Permanent Account Number (PAN) as on date of application.
  3. There must be at least three (3) Qualified Chartered Accountants working as fulltime Partners as on the date of submission of proposal.
  4. The Firm must have experience at least in each of the last THREE (3) Financial Years ending 31 March, 2016; 31 March, 2015 and 31 March, 2014 in audit of recognised Pension/Provident Fund/superannuation Fund Trust Accounts. Further, the average corpus size of such Provident Fund Trusts audited for each financial year must be at least Rs.100 Crores.
  5. The Firm / any partner should not have been convicted by a court of law or indictment / adverse order should not have been passed against the firm / any partner till the date of application. The Firm / any partner should not have been held guilty of any professional misconduct under CA Act 1949(as amended) during last 5 years or penalised under any taxation laws by the ICAI or any other statutory body.
  6. The Firm/any partner should not be facing any investigation/inquiry by any tax authority for violation of any provisions of taxation laws.
  7. The Firm should comply with all the applicable Labour Laws as on the date of submission of proposal.
  8. The Firm should agree to accept the Auditing Fees as per the rates prescribed by the ICAi for auditing the accounts of the Exempted Provident Fund Trusts and such fees are payable directly by the employers of such Exempted establishments as per condition No.24(a) of Appendix A to para 27AA of EPF Scheme 1952. The firm can negotiate the auditing fees directly with the concerned employer of the Exempted establishments and the RPFC/OIC, EPFO, SRO, Vellore shall not in any manner, whatsoever, be involved in determining the auditing fees payable to the firm.
  9. The Firm should have functional office in either Vellore and/or Chennai having responsible officials.
  10. The firm must be empanelled with Comptroller and Auditor General of India (CAG) as on the date of EOI.

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