1- karnataka food and civil supplies...

KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LIMITED

(GOVERNMENT OF KARNATAKA UNDERTAKING)

Bangalore

No:KFCSC/IAW/A.I.A/2015-16/2016

SUBJECT:TENDER NOTIFICATION FOR APPOINMENT OF INTERNAL AUDITORS

The Karnataka Food and Civil Supplies Corporation Limited (KFCSC) of Bangalore ,

invites tenders through e-Procurement portal from practicing chartered accountants

& CA firms(as per KTPP Act 1999) for district wise appointment of Internal auditors to

take up monthly Internal Audit of the District offices and Head office of Karnataka

Food and Civil Supplies Corporation Limited for the year 2016

The applications are invited for the following 28 districts and one head office

List of Districts offices and Head Office.

Sl.No Districts office

01 Bagalkote

02 Belgaum

03 Bellary

04 Bijapur

05 Bidar

06 Gulbarga

07 Karwar

08 Haveri

09 Gadag

10 Dharwad

11 Yadgiri

12 Koppal

13 Raichur

14 Mysore & Kodagu

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#16I, Millers Tank bed area,

Bangalore-560052. Ph:080 22096603

16/2016-17 Date:

SUBJECT:TENDER NOTIFICATION FOR APPOINMENT OF INTERNAL AUDITORS.


Procurement portal from practicing chartered accountants

firms(as per KTPP Act 1999) for district wise appointment of Internal auditors to


Food and Civil Supplies Corporation Limited for the year 2016-17.

ited for the following 28 districts and one head office

List of Districts offices and Head Office.

15 Mangalore & Udupi

16 Mandya

17 Hassan

18 Chamarajnagar

19 Chikmagalore

20 Bangalore (North)

21 Bangalore (South)

22 Tumkur

23 Chitradurga

24 Shimoga

25 Kolar

26 Ramanagar

27 Chikballapura.

28 Davanagere

29 Head Office

Date:09-03-2016


Procurement portal from practicing chartered accountants

firms(as per KTPP Act 1999) for district wise appointment of Internal auditors to


ited for the following 28 districts and one head office

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NOTE:-Please treat Mysore and Kodagu (Madikeri) as single District & so also

Mangalore and Udupi.

Tender Reference Number KFCSC/IAO/2016-17

EMD for each districts Head Office Rs. 20,000.00

Date of publishing 11-3-2016

Last date for submission of Bids 24-3-2016 5.00 PM

Date/Time of opening of Technical Bid. 28-03-2016, 11.00AM

Date/Time of opening of Financial Bid 30-03-2016, 11.00AM

Address for communication Karnataka Food and Civil Supplies

Corporation Ltd, No.16I, Millars Tank Bed

Area, Vasanthanagar, Bangalore-560052

Telephone No.22096603/22096615

Fax:080-22096555-22096614-22096556

WWW.kfcsc.com

E-mail:[email protected]

The Detailed Tender documents can be obtained/downloaded from

e-procurement portal https://eproc.karnataka.gov.in. The Managing Director

reserves the right to accept or reject any or all bids without assigning any reason

whatsoever.

General Manager



Bangalore

No:KFCSC/IAO/2016-17


INVITATION FOR BIDS

1. The Managing Director, KFCSC, Bangalore

Accountants/CA firms for District wise appointment of internal auditor for

carrying out the monthly Internal Audit of District offices & Head Office of KFCSC

Ltd,. for the year 2016-17. The Bidders are required to su

capability to undertake the tende

by all rules and regulations and terms and conditions shown in tender

documents. All record and documents to evidence meeting the requirements of

technical bid will be opened first and the second cover containing the price Bid

(financial bid) will be opened only if the Bidder is found to be qualified. The

Chartered Accountants/CA firms shall quote the audit fee per month. The same

will be valid for the whole year 2016

2. Bidders required to apply separate bid for each district and head office as

separate unit.

3. Bids must be accompanied By EMD of Rs. 20,000.00 which

through e-Procurement portal.

4. Bid documents may be downloaded

procurement website, https://eproc.karnataka.gov.in



#16I, Millers Tank bed area,

Bangalore-560052. Ph:080 22096603

17 Date:9


SECTION-1

The Managing Director, KFCSC, Bangalore invites tenders from eligible Chartered



17. The Bidders are required to submit details of their

capability to undertake the tender and Undertakings stating that they shall abide



cal bid will be opened first and the second cover containing the price Bid



whole year 2016-17.

Bidders required to apply separate bid for each district and head office as

Bids must be accompanied By EMD of Rs. 20,000.00 which should be paid online

Procurement portal.

Bid documents may be downloaded through Government of Karnataka e

https://eproc.karnataka.gov.in

General Manager

Date:9-03-2016


invites tenders from eligible Chartered



bmit details of their

they shall abide



cal bid will be opened first and the second cover containing the price Bid



Bidders required to apply separate bid for each district and head office as

ould be paid online

Government of Karnataka e-

General Manager

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SECTION-2

TERMS AND CONDITIONS

1) SCOPE OF SERVICE:

The bidder is required to apply to provide Internal Auditors to carryout

the monthly internal audit work of district/head office as per the scope

of audit given in Annexure-III for districts and in Annexure IV for head

office.

2) ELIGIBILITY CRITERIA:

(a) Chartered accountants/chartered accountant firms with ACA/FCA

qualification shall take participate in bidding.

(b) CA/CA firm shall bid district wise and head office as separate one unit.

There are 28 district offices (units) and head office. Applicant have to

apply district wise separately and head office is to be considered as one

separate unit.

(c) CA/CA firm shall quote audit fees per month, district wise separately and

Head office as separate unit.

(d) The CA/CA firm must have its head office/branch office in the district head

quarters to which district they are going to apply

(e) CA/CA firm shall have sufficient number of chartered accountants and

auditing staff.

(f) CA/CA firm can also apply for more than one district separately by fulfilling

the other criteria. Even though CA/CA firm is successful bidder in more

than one districts, they will be appointed to only one district.

(g) CA/CA firm required minimum of 5 years experience.

(h) CA/CA firm should ensure that only qualified and experienced chartered

accountants/Auditing staff are posted as internal auditors of the

district/head office.

(i) Authorisation letter on behalf of the partner to have correspondence with

the Corporation.

(j) The terms and Conditions/scope of audit is to be signed and to be

enclosed.

3) DOCUMENTS COMPRISING THE TECHNICAL BID

a) Attested copy of ACA/FCA Certificate of Practice.

b) Attested copy of PAN CARD.

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c) Attested copy of Service Tax Registration.

d) Attested copy of Income Tax paid certificate for the last three financial

years.

e) Attested copy of address proof for having office at the district head

quarter to which applicant is bidding.

f) Attested copy of experience certificate –past 5 years experience

certificate in execution of similar contracts, if any.

g) Attested copy of partnership agreement.

h) Attested copy of man power description -number of CAs and number of

other staff.

i) Attested copy of affidavit for non-conviction:-Affidavit from the CA/CA

firm declaring that they have not been convicted for any offence for

having any criminal cases under any act or orders there under regarding

any conviction in previous years/present. (In Rs.20/-stamp paper and to

be attested by the notary)

4) BID FORM

a) Technical details should be submitted along with documentary proof

otherwise evaluation will be done ignoring that item as not available.

This format should not be changed in any manner.

Addition/deletion/alteration of the text will automatically render the

tender invalid and therefore, will be summarily rejected.

b) Bidders shall furnish all the documents as specified in tender document.

The bidders should upload the entire bid documents i.e., complete

tender document duly signed and stamped including all Annexures, bid

form etc., as a token of acceptance of all terms and conditions.

c) Audit fees should be quoted in the Financial bid format for rendering

service of audit work ( Financial bid). This format should not be changed

in any manner. Addition/deletion/alteration of the text will

automatically render the tender invalid and therefore will be summarily

rejected.

d) The bidder is requested to examine all instructions, forms, terms and

specifications in the Bid documents, failure to furnish all the

information

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required as per Bid Documents or submission of the bids not

substantially responsive to the Bid Document in every respect will be at

the bidder’s risk which may result in rejection of the Bid.

e) At any time, prior to the date of submission of bid, KFCSC may, for any

reason, whether on its own initiative or in response to a clarification

required by a prospective bidder, modify the bid documents by

amendments.

f) The amendments shall be notified in e-procurement portal and these

amendments will be binding on them.

g) EMD of unsuccessful bidders shall be returned after the tender awarded

and accepted by the successful bidder.

h) The tenders will undergo evaluation at every stage of processing and any

tender found at any stage not in conformity with the stipulated tender

conditions including specifications/found to have uploaded defective

and incomplete documents or found defective will be rejected.

5) BID PRICES

(1) The CA/CA firm shall quote the price as per Annexure-II attached to bid

document. The composite price shall indicate all the types of Taxes,

including service Tax etc., as applicable from time to time.

(2) The price quoted by the bidder shall remain fixed during entire period of

contract & shall not be subject to variation on any account. A bid

submitted with an adjustable price quotation will be treated as non-

responsive and rejected.

6) EMD & BANK SECURITY DEPOSIT

(A) The bidder’s shall furnish an irrevocable performance Bank Guarantee

for Rs. 20,000/-(Rupees Twenty thousand only) issued by Scheduled

Bank which should be valid upto 60 days from the period of completion

of the contract. However no interest shall be payable on the bank

guarantee & the same will be converted into performance security.

The bank security deposit is

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required to protect the KFCSC against risk of bidder’s conduct which may

warrant the security’s forfeiture.

(B) Applicant CA/CA firm shall pay the Earnest Money Deposit (EMD) of Rs

20,000 for each district they apply. In the e-procurement portal using

any of the following payment modes:

a) Credit Card

b) Direct Debit

c) National Electronic Fund Transfer (NEFT)

For details on e-Payment services, refer to e-procurement portal for

more details on the process.

(C) Any bid not secured in accordance with Terms and conditions will be

rejected by KFCSC as non-responsive.

(D) The successful bidder’s EMD amount may be forfeited if the bidder fails

to sign the contract.

(E) The EMD of unsuccessful bidder will be discharged/returned as early as

possible but not later than 30 days after the expiry of the period of bid

validity.

(F) Format and signing of Bid.

Bidder shall submit the Bid electronically within the submission date and

time published in e-procurement portal. The bid document shall be

signed by the bidder.

(G) Deadline for submission of bids.

(a) Bids must be submitted online in the e-Procurement portal by the

KFCSC before the notified date and time.

(b) The KFCSC may extend the deadline for submission of bids by issuing

an amendment, which in case all rights and obligations of the KFCSC

and the Bidders, previously subjected to the original deadline, will

then be subject to the new deadline.

(H) Late Bids.

In online e-procurement system, Bidder shall not be able to submit the

bid after the bid submission time and date as the icon or the task in

the e-procurement portal will not be available.

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(I) Bid validity

(a) The bids shall remain valid for 90 days after the date of opening of

bids. A bid valid for a shorter period shall be rejected as non-

responsive.

(b) A bidder, accepting the request of KFCSC for an extension to the

period of bid validity in exceptional circumstances, will not be

permitted to modify their bid.

(J) Process to be confidential

Information relating to the examination, clarification, evaluation, and

comparison of Bids and recommendations for the award of a contract

shall not be disclosed to Bidders or any other persons not officially

concerned with

such process until the award to the successful Bidder has been

announced. Any effort by the Bidder to influence the KFCSC’s processing

of Bids or award decisions may result in the rejection of their Bid.

(K) Clarification of Bids

During evaluation of Bids, KFCSC may, at their discretion, ask any Bidder

for clarification of their Bids, including breakup of charges. The request

for clarification and the response shall be in writing or by cable, but no

change in the price or substance of the Bid shall be sought, offered, or

permitted.

7) FINANCIAL BID:

The bidder shall quote the rate in the financial bid as per Annexure-II

8) TENDER EVALUATION

The tender submitted by the bidder will be opened by the Tender Opening

Committee constituted under Rule 11 of the “Act”. If the documents in

technical bid are found to be in order, as specified above, only then the

financial bid will be opened. Incomplete documents in the Technical

qualification will result in rejection of the entire tender and the financial

bid. The ‘Procurement Entity’, after due evaluation, will have option to

prepare item-wise selection in the order of priority and call upon Lowest

Tenderer to furnish Security Deposit and execute the agreement. If a

tenderer is L1 bidder for more than one district he will be awarded the

contract for only one district. At the same time for the remaining districts L2

tenderer will be considered for the award. The same

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procedure is followed in each tender case. If the L1 bidder fails to sign the

contract, L2 bidder will be considered.

The “Procurement Entity” before passing the order accepting a tender may

negotiate with Lowest Tenderer.

In the event of any discrepancy in respect to the rates quoted, the

“Procurement entity” reserves the right to accept the lowest rate, at its

discretion.

9) AWARD OF CONTRACT

The KFCSC shall consider placement of Letter of Acceptance (LOA) to those

bidders (in duplicate) whose offers have been found acceptable. The

bidders shall return one copy of the LOA in token of their acceptance along

with the performance security within three days.

10) KFCSC LTD., RESERVES RIGHT TO ACCEPT ANY BID AND TO REJECT ANY

BIDS:

The KFCSC shall not be bound to accept the lowest or any tender and

reserves to itself the right to accept or reject any bid or to accept whole or a

portion of tender, as it may deem fit, without assigning any reason there-of

and without incurring any liability to the affected bidder(s) for the action of

KFCSC.

The KFCSC reserves the right to remove any Internal Auditor, if his work is

not satisfactory (if audit observations are superficial & reports are not

submitted on time). Further if the performance/conditions of the work of

the auditor of a particular district is not satisfactory such CA/CA firms will

be replaced with L-2 tenderer of the same district or other district existing

CA/CA firm.

11) SIGNING OF CONTRACT

Signing of Agreement shall constitute the award of contract on the bidder.

12) ANNULMENT OF AWARD

Failure of the successful bidder to comply with the requirement shall

constitute sufficient ground for the annulment of the award and forfeiture

of the bid security in which event KFCSC may make the award to any other

bidder at the discretion of KFCSC or call for new bids.

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13) TERMS OF PAYMENT

Payment will be made at head office of “Procurement Entity” after

deducting the applicable taxes etc. The payment will be made after timely

submission of the internal audit report of a particular month and receipt of

the bill.

Further, the District monthly audit reports should be submitted within the

next subsequent month to concerned District Manager and a copy shall be

sent to the Managing Director KFCSC. The audit report will be scrutenised in

internal audit wing at head office. The Internal Audit Officer at Head Office

may ask auditor any information/clarification about the audit.

14) TERMINATION OF CONTRACT

In case of any default by the service provider and in any of the terms &

conditions (whether General, special, statutory), KFCSC may, without

prejudice to any other right/remedy which shall have accrued or shall

accrue thereafter, terminate the contract, in whole or in part, by giving one

month’s notice in writing to the service provider.

All instructions, notice and communications under the contract given in

writing and if sent to the last known place of business, shall be deemed to

be served on the date, even in ordinary course of post these would have

been delivered to the service provider.

Notwithstanding anything contained herein, KFCSC also reserves the right

to terminate the contract at any time or stage during the period of contract,

by giving one month notice in writing without assigning any reason and

without incurring any financial liability whatsoever to the service provider.

15) OTHER OBLIGATIONS

a) KFCSC prior to the expiry of the tender validity period, shall notify the

bidder whose tender is accepted for the award of the contract. The

terms of the accepted offer shall be incorporated in the acceptance

letter issued.

b) Notwithstanding the above KFCSC reserves the right to accept or reject

any tender and to cancel the bidding process at any time prior to the

award of the contract.

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c) The undersigned reserves the right to select from the candidates

proposed by the successful bidder and also the right to ask for

replacement at any time.

d) The replacement shall be given within three days and for delay of each

day, a penalty of Rs. 100/- will be levied.

e) TDS shall be made in the bills of successful bidder.

f) Security deposit will not carry any interest and will be refunded on

cessation of agreement.

We agree to the above terms and conditions.

General Manager

KFCSC LTD

ANNEXURE-I

APPLICATION FOR APPOINTMENT OF INTERNAL AUDITORS FOR KFCSC,

BANGALORE FOR THE YEAR 2016-17

To,

The Managing Director,

Karnataka Food & Civil Supplies Corporation Ltd.,

# 16/I, Millers Tank Bed Area, Vasanthnagar,

Bangalore-560052.

Dear Madam,

With reference to your tender notification dated ……… we are interested

to take up Internal Audit work of…………….. District office of your esteemed

organization. For the year 2016-17

I/we furnish herein below the particulars as required by you.

1) Name of the CA/CA firm and address

With Telephone and e-mail

2) Membership No., and PAN No.

3) Year of establishment

4) Head office/Branch Address located at the above mentioned district for

which we want to take up the internal audit.

5) Experience of last five years, out of five

Years as Internal Auditor/Statutory

Auditors of any Karnataka Government

Under takings. (enclose documents) if any

6) No of staff of the CA company/CA firm

a) Chartered Accountants

b) others

Palce:

Date: Signature with Seal

ANNEXURE –II

FINANCIAL BID

Financial Bid should be in form-B indicating audit fees after going through the

Scope of Audit. Bidder shall quote audit fees per month.

SIGNATURE OF THE TENDERER

Date:

Address:

Form-B (FINANCIAL BID)

I/We hereby offer to take up the Internal Audit work of below district of your

Corporation at the fees indicated against the district.

District name Period Audit fees per month

2016-17 Rupees in figures and

in word

SIGNATURE OF THE TENDERER WITH SEAL

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ANNEXURE III

Scope of Internal Audit of District office

Scope of Internal Audit of each district office includes

(A) Pre-Audit:- All of vouchers/expenditure of more than Rs. 10,000.00 to

be pre audited by the internal auditor of the district. The auditor is

required to be available always at the district head quarters. Auditor has

to attend the pre audit work as and when the district office requires.

(B) Physical Verification of Stock:Internal auditor of the district has to

conduct the physical verification of stock of each wholesale point/Retail

point/MDM point/MSP stock point/LPG showroom & godown/Petrol

bunk once in three months (i,e once in a quarter). Auditor has to

carryout the physical verification of stock as per the circulars and

instructions issued by the KFCSC.

(C) Post Audit: Internal auditor of the district has to carryout the post audit

of all the transactions of the district office. The post audit of district

office also includes the audit of WSP/RSP/LPG units/kerosene

units/petrol bunks under the district office (Districtwise list of

WSP/RSP/LPG units/kerosene units/petrol bunks is given in annexure

VII)

The details of areas/aspects to be covered under post audit of the

district office are as follows:-

KARNATAKA FOOD & CIVIL SUPPLIES CORPORATION LTD.,

SCOPE OF INTERNAL AUDIT

I. DISTRICT OFFICE.

01 Cash Book Verification of receipts and payments

classification of Head of Account ledger

posting and Balancing of both ledger and

Cash Book.

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02 J.E. Book Verification of JEs with supporting

Documents.

03 Bank Reconciliation Verification of unrealized cheques more than

03 months and late realization of D.D’s

remitted to Bank. Whether BRS done or not

offer comments.

04 Voucher Files Proper maintainance of Vouchers with

supporting documents.

05 Bank Remittance Remittances of Sales proceeds to Bank as per

DD Register.

06 Stock Account Verification of Allotment of D.C/scheme wise

Purchases and scheme wise Accounting of

stock in Stock Register.

07 Payment of Admn

Charges

Verification of Admn, charges paid to DC as

per costing sheets and proper classification

of stock under respective scheme and price at

which it is sold.

08 Books of Forms &

Register

Verification of proper accounting of books

and Forms purchased/supplied form H.O/got

printed at unit office and proper issue of the

same to W.S & R.P.S

09 Assets Register Maintaince of Assets Register for Land and

Buildings etc.,

10 Furniture and Fixture

Register

Maintaince of Furniture and Fixtures Register

and its Valuation.

11 Payment to Transport

Contractors

Verification of Transport contractors Bills with

chalan of the quantity purchased/lifted along

with stock receipts and release order. Transit

shortages/Deduction of TDS & Remittance of

TDS within due date.

12 Purchase Register Proper booking of purchase/payment

adjusted as per costing sheet with reference

to Invoice/R.Os and cross check to the stock

register and JE’s proposed. R.O Register to be

checked specially to verify that the R.O

quantity is received before taking new R.O.

13 Sales Register Verification of quantity sold with reference to

schemes under which it was purchased and

sold with reference to costing sheet proper

accounting of sales proceeds to cash book

and sales JE proposed with reference to Stock

Book

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14 Monthly Stock

Verification Reports.

The closing balance as per physical stock

verification should agree with that of the

opening balance of parallel stock Book

maintained at office.

15 Differential Cost The claims are made to Govt towards

Differential cost in accordance with the

purchases, costing sheets and JEs proposed.

The correctness of differential cost claims

made by the D.O pertaining to all

commodities with reference to allotment

quantity, costing sheet, scheme and with

respect to subsidy JE. The same is claimed

monthly from Govt of Karnataka as

Difference cost under NFSA/MSP/AAY/OMSS

Schemes.

16 Retail Transportation

and Handling Charges

(TCHC)

TCHC are Claimed from Govt in accordance

with the made at Wholes Sale Points. TCHC

are claimed for reimbursement at Govt rates

in respect of Rice/Wheat/P

oil/Salt/Ragi/Jowar etc. and this has to be

checked by opening Fist Software.

17 Advance Register Review of advance made/adjustments made

and Balance in accordance with provisions,

any advance long standing with-out

adjustment- staff, Govt, and other parties

A/c to be reviewed.

18 Log Book Proper maintains of log book account of fuel

& repairs, Tour Diary of DM’s.

19 Service Register Verification of services register, maintaince

of leave account, pay scale/increments

sanctioned etc.,

20 Trial Balance Verification of monthly/quarterly/yearly trial

balance/consolidated trial balance.

21 Verification of Accounts Verification of quarterly/half yearly/annual

accounts. Proper agreement of purchases &

sales with that of Finance stock statements

with reference to administrative charges

paid/Differential cost claimed etc.,

22 Deposit Register Proper maintainance of Deposit register.

23 Sundry

Creditors/Sundry

Debtors Registers.

Verification of sundry creditors and sundry

debtors register and entries posted

regularly.

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24 Telephone Register Maintaince of Telephone register & entries

made regularly on day to day basis.

25 Viability of DO/WSP Verification of /WSP/RSP/LPG viability of the

unit office.

26 Daily Sales Abstract

Acknowledgment

Register

Verification of acknowledgment/receipt passed

at unit office for receipt of D.S.A’s wholesale

points and with that of the bank remittance

register verify whether delay in remittance at

unit office or delay in sending the DSA from the

depot.

27 Misappropriation If there is any misappropriation either in District

Office, wholesale points, retail points or in any

other transaction should be reported to the

Chief Executive at the earliest through Flash

Report.

28 General All the points which are generally seen/pointed

out by the Accountant General Auditors and

Statutory Auditors shall also be seen/observed

by the Internal Auditor of the Auditing firms.

Compliance with regard to various approvals,

orders or instructions given from Head Office

and Costing Sheet and/or G.O copies sent from

Head Office or received directly from

Government of Karnataka from time to time.

Compliance with the Tax Audit point and to

report any deviation thereon.

Periodical reconciliation of ---

Funds Transfer from Head Office to Districts

and Vice-Versa along with inter Districts, intra-

Districts transfer.

Creditor for recoveries –JE proposed from Head

office whether JEs are responded properly or

not.

Ensuring compliance for accounting compliance

for accounting & audit principles, accounting

standards and internal audit control system

including suggestions for improvement.

Verifying compliance to various statutory

provisions applicable to the corporation.

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II WHOLE SALE POINTS:-

1 Stock Book Register Verifying stock A/c at Wholesale points

maintained as per the allotment

(Schemewise). Whether all Stock Receipts

are accounted on day to day basis and DSA’s

charged off accordingly, internal Stock

Transfers with proper order. Stock Transfer

out wards with proper orders or not.

2 Stock Receipt Books Whether the stock receipts are passed on

the day of receipt of stock with reference to

the Truck chits/invoice of the suppliers.

Whether all the receipt are supported by

the TC/Invoice (which is to be pasted to

stock receipt) stock receipts are passed to

that of Internal Stock Transfer.

3 Passing of cash cum

delivery notes

Whether the CCD’s are passed to each and

every delivery or not and filled all the

columns of the CCD’s are passed against the

payment or not, with proper rate (as per

costing sheet) and scheme variety are

mentioned or not in every CCD to be

verified.

4 Daily Sales Abstract Whether all the CCD are accounted in DSA,

serially or not. If any CCD’s missing to be

confirmed, whether it is cancelled with out

the copies of CCD’s. the total of the quantity

column multiplied by the rate should agreed

with total of DD’s and cash receipt.

5 Acknowledgment of

submission of DSA to

the District office

The details of submission of DSA to the

District Office along with DD and cash to the

office with in the stipulatedtime to be

verified.

6 Maintenance of

Furniture and office

equipment and Books

form register.

The Account of Furniture and Fixtures, Bill

Books & other forms obtained for District

office/purchased should be recorded

properly.

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Name of the wholesale Point……………………………

Name of the Depot ………………………………………….

III-RETAIL POINTS.

1 Stock Books Whether stock lifted from wholesale points

are properly accounted or not in the stock

register is to be verified and day to day sales

are properly posted to stock book with

reference to the day book of retail point.

2 Day Book Whether card wise postings are made in the

day book or not are to be verified and scale

of issue is properly followed or not is also to

be verified.

3 Stock Receipt Book Whether stock receipts are passed to all the

stocks received or not be verified.

4 Empty Gunny A/c Empty Gunny A/c is to be verified with

reference to the stock receipts.

5 Bank Remittance Whether cash is remitted to bank daily or

not to be verified with the prescribed

challan supplied from the District Office.

6 Verification of

Monthly Sales

Abstract

Whether the Monthly sales abstracts are

properly filled indicating rates at which sold

& verify amount remitted to Bank with

reference to Bank statement and verify

whether stock receipts are passed properly

or not an day to day basis.

The internal auditor of the district has to issue a monthly audit report in a

prescribed format. The long form of audit report of district is given in

annexure-V

C) Verification of quarterly and annual accounts of the districts: The

internal auditor of the district has to verify and certify the quarterly and

annual accounts of the district prepared by the district office.

D) Internal auditor has to examine and verify the compliance report

submitted by the district office and then forward the same to head

office with seal and sign.

General Manager

KFCSC

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ANNEXURE IV

SCOPE OF INTERNAL AUDIT OF THE HEAD OFFICE

Scope of work:

The scope of work of the Internal Auditor of head office will evolve with

the growth of organization. However at present the functions of the Internal

Auditor are broadly designed to cater to the needs of the management so as to

ensure the following.

I-Pre Audit:

a) A CA/CA staff shall be daily available at head office to conduct the pre

audit of the expenditure of more than Rs 10,000/- which is mandatory.

b) Review of files from the various functional departments involving

financial commitment;

c) Review of all agreements, contracts, etc., to see that these are within

the frame work of legal requirements and meets various statutory

requirements. These functions have to be carried out before they are

sent to approval of authorities.

d) Review of financial statement prepared by the Corporation for

submission to the Board, Banks etc.,

e) Verifying all forms and reports to ensure that statutory formalities as

required under the Income Tax and Sales Tax laws and other laws are

being complied with;

f) To advise the Corporation in respect of compliances to various statutes

applicable to the Corporation and also those applicable as per

Accounting Standards of the Institute of Chartered Accountants of India.

II Post Audit

1) All the guidelines and administrative circulars given by the Head office are

followed by the subordinate staff and the extent of adherence of such

policies is to be reported.

2) To ensure that the accounting system is appropriate and has been followed

efficiently.

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3) Implementation of adequate Internal Controls in the Company to

safequard the assets to ensure propriety of expenditure and to exercise

control on payments.

4) Verification of Bank Reconsiliation Statement and action taken on

outstanding items if any.

5) Verification of compliance with statutory deduction and their remittance to

appropriate authorities.

6) Expenditure is made with due regard to economy, efficiency and cost

effectiveness.

7) Verification of various books and statutory records maintained at Head

Office & to point out any deficiency, if any.

8) Ensuring that all laws including regulations and other internal requirement

and management policies and directions/guidelines applicable to the

Corporation are being complied with.

9) Whatever the Accountant Geneal’s and statutory auditors will check with

KFCSC will also be the primary duties of the Internal Auditors of the auditing

firms.

10) In order to efficiently carryout their obligations and provide assurance

to the management, the internal auditors of the company shall

a) Examine the financial and operational activities of the company.

b) Undertake detailed testing of balances transactions and procedures.

c) Physically verify assets that are created.

d) Identify, classify and report such information that may be in deviation

with any set of practices, statutory requirement and management

directions/assessments.

e) To verify the assessment orders, PF, Sales Tax, Service Tax, Income

Tax and other authorities and report the status of such cases.

11) Comments on the accounting records, system and controls that were

examined during the course of Internal Audit to identify the deficiencies

and weakness in the system and make recommendations to improve them

and also suggest new system where ever required.Highlight the mistakes

that are material and have significant impact on the performance of the

company.

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12) The internal audit should cover the following section.

a) Financial Section & Accounts Section

b) Marketing Section.

c) Administration Section.

d) Transportation Section.

e) Company Secretary’s Section.

f) Internal Audit Section.

g) IT Section/Fist Section.

III Verification of quarterly & annual accounts.

Verification of quarterly accounts submitted by district units and

consolidated final accounts prepared at Head Office before submission to

Board for approval.

IV-Others

a) Internal Auditors will be required to carry out any other assignment

given by the Managing Director which shall form part of the scope of

work outlined above and shall include giving advice on related issues.

General Manager

KFCSC

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Annexure-V

KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LIMITED, BANGALORE

LONG FORM OF MONTHLY INTERNAL AUDIT REPORT OF THE DISTRICT OFFICE

INTERNAL AUDIT REPORT FOR THE MONTH OF:

DISTRICT OFFICE:

SL No PARTICULARAS

I Physical verification of cash

a)

b)

c)

Date and Time of physical

verification of cash.

Is it tallied with Cashbook/Bank

book in Fist as on:

Whether D.M. makes surprise

physical verification of cash.

Please furnish the date of

verification.

II Cash Book Verification

1

a)

b)

c)

d)

Cashbook updated in Fist upto

what date

Whether the cash

payments/Receipts are recorded

in Cash book properly

They are supported by Bills with

Serial No is entered in the Bills

Whether the Cash Receipts are

passed and Receipts/Payment

Vouchers are countersigned

by District Manager.

Vouchers are being maintained

Properly.

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02 Whether DO is accounting only

DD transactions in the Cash/ Bank

Book OR Cash received also

recorded in the Cash/Bank book.

In such cases DDs on hand and

Cash Balance is to be recorded in

Cash/Bank book Separately.

03 Whether proper classification of

Head of accounts is done or not(If

not, particulars to be mentioned

and rectification done there only)

04 Whether cash payment is made

by complying with IT Act 1961. Is

there any payment of cash for

Rs.20000/- and above for single

transaction on particular day of

the month(Please note that

amendment is proposed in IT Act)

III BANK BOOK VERIFICATION

01

Whether :-

District Office is maintaining Bank

Book for the Bank Transactions.

Receipts and payments are

properly entered in the Fist

Software..

02

Whether System generated

Vouchers /Receipts are serially

numbered and the same is

entered in the voucher slips.

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03

a)

b)

Whether

Cheque books are kept in joint

Custody.

Cheques are being signed jointly

or severally by District Manager

and Assistant Manager.

04

a)

b)

Whether

DDs/ Cash/Cheques received from

WP/RP/ Govt are deposited on

same day with the bank.

Any delay has been observed in

remittance.

05

a)

b)

Whether payments

Vouchers/Receipts are supported

by Bills.

Whether District Manager has

signed the payment Voucher and

passed the bills for payment.

06

a)

Nature of Account, No, Name of

the bank, balance is to be

furnished. Offer comments for the

operation of the account,

Annexure-1

b) After payment whether paid &

cancelled seal is marked on the

bills/vouchers.

07 You have verified classification of

Head of Accounts and sub Ledger

is done on day to day basis in Fist

software.

08 Whether Bank Pass Sheet is

obtained from the bank on

Monthlyy basis from all the banks

in respect of all accounts.

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9 Whether DO is maintaining bank

books bank wise and account

wise in Fist.

10 If Bank charges paid by DO during

the month bank wise and account

have they reversed in subsequent

months.

11.a)

b)

c)

d)

12.

13.

Whether the Wsp /RT collection

amounts are transferred to main

DO accounts sweeping basis on

day to day.

Are the amount reconciled

properly

Are the Bank entries are making

by D.O. collection A/c. wise

The Fund transfer to HO on day to

day sweeping basis. The Dos are

recording day to day in the FIST

bank book

Bank Remittance by Depots

Furnish delay in DD deposit. depot

wise as per Daily Sales Abstract.

Interest to be recovered for such

delay remittance to be quantified

and mention the details.

Whether DD amount is being

compared with D.D/Cash

remittance statement as per the

Fist software for ensuring that the

amount deposited is tallying to

Sales made by the Depot.

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IV BANK RECONCILATION

1.a)

b)

c)

Cheques / D.D’s Deposited but not

realized. and Cheques issued but

not presented to bank by the

beneficiaries within 03 months. If

not whether DO is reverted such

DD/Chques.( rectification to be

done immediately)

Whether the Bank Reconciliation

Account wise/Bank wise is done

through Fist software:Yes/No:

Whether all Bank accounts are

reconciled, if not mention the un

reconciled bank accounts with

account wise.

2 a)

b)

Whether D.O.is maintaining

Bank wise & A/c. wise reconcile-

ation. and copies are Signed by

D.M.s and same is properly filed.

Are you satisfied with Ban

Reconciliation. Comment.

3 Whether entries have been

affected in respect of Bank

charges/funds transfer from

H.O./other offices in the Bank.

4 Whether reconciliation statement

is attached to the report in

respect of all Bank A/c’s.

Annexure-2

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5 In case of payment of

Rs.10000&above whether pre-

audit is being carried out.

Whether pay ment is in order.

V JOURNAL ENTRIES

1

a)

b)

c)

d)

e)

f)

Auditors mandatory check with

stock statement and allotment

wise.

Purchase (Month wise)

Diff. cost (Monthwise)

Whether the J.E.’s passed for the

Stock issued without value at

WSP/RP through “Enter Sales

Details” Ex. Qty. of Police/ Fire

ExtinguisherDepartment

/Homegaurd/Prison other whole

sales nominees etc.,

Stock transfer inward and

outward from one District to

other District.(Month wise )

Responding JE’s ( HO and other

district offices.)(JE wise)

Whether the JE’s vouchers are

properly numbered and filed with

Authorized Signatures.

(if the above entries are not

updated please comment.)

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VI Inward and outward Register

1 Whether In ward Letters/ HO

Circulars/ Govt Instructions are

entered in the In wards Register

serially.

2

a)

b)

c)

Whether

Inward and outwared register is

maintained properly.

Delivery/Booking Slip Number is

noted.

Acknowledgement is being

obtained it is being checked by

the concerned Officer

3 What is the postag/Courier

Charges paid for the month.

Whether Bills submitted by the

Courier Agent have been checked

by referring to Outward Register

4 Telephone Register-

Maintenance of Telephone

Register & entries made regularly

on day to day basis. Telephone

charges paid during the month

VII Purchase Register

1 Whether Purchase Register is

maintained properly and all the

details are entered in the Register

on day to day basis

Annexure-3

2 Whether they are maintained

scheme wise and commodity wise

3

Whether You have verified

Purchase in- voices/R.O & have

been kept safely and being serially

numbered.

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4 Whether the Purchase J.E. passed

in Fist Soft Ware with enter

purchase details as per the District

Stock Book Abstract under Stock

Receipt Column. The purchase

should be booked only for Stock

Receipt Quantity. Not for the

allotment/R.O/ Quantity.

5 Whether the purchase value as

per the purchase agreement is

tallies with the Trial Balance.

Yes/No/ If no give reasons.

6 Whether Register is being

maintained for the difference

between the quantities lifted at

FCI Godown by the Transport

Contractor and the quantity

received at WP. Furnish details.

And steps taken by DO in this

regard such as recovery for

shortages

7 Whether adequate control of

movement of stock from FCI Go

down to WP has ensured. Offer

your specific comments.

8 Whether the full quantity is

received against the payment if

part received the balance due at

FCI

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9 In case of NCDEX purchase is there

any delay in supply or

Excess/short supply

10 If so, is any penalty is deducted

out of payments.

11 E-auction stock issued to Other

wsp nominees DOs are accounting

purchase and sales in the FIST

(district PC) Invoice wise.

12 Whether the full amount received

in advance,before Stock

issued(Ros) to other whole sales

nominees ,if not comment on

such cases.

13 Furnish the particulars of Date of

receipt of Allotment Letter from

DC , purchase and lifting and

when the lifting from FPD

complited for this month. This is

to ensure the paditar khatri

Annexure-4

VIII MSPO Procurement / Levy Audit

1 Whether Procurement/ Levy

Register is maintained by

procurement point wise properly.

Whether Grain voucher has been

passed according to documents

produced by Farmers.(Qty/Rate as

per H.O.Circular) in FIST

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a)

b)

c)

Whether payment register/RTGS

has been maintained with Cheque

details.

whether payment is tallied with

the stock receipts with

procurement centres wise

whether Stock tallied with FIST

stock statements

2 Whether Scrutiny of T.C. Bill on

MSPO/ Levy payment has been

made. Separate register has been

maintained.

3 Whether imprest bills & handling

& labour charges has been

scrutinized according to Circular

issued by Head Office. & Register

is maintained for such payments.

4 Whether market cess is paid &

Register is maintained for such

payments.

5 Scrutiny of Storage charges on

MSPO/ Levy bills has been done &

whether a separate payment

register is maintained or not.

6 Scrutiny of Hulling charges on

MSPO bills has been prepared & a

separate register is maintained or

not.

7

Whether levy Rice has been

procured based on MSP

Certificate issued by D.D.

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8 Whether Quality checking as per

FAQ has been done.

9 Issue of Stock:MSP/levy

What are the para meters used for

checking (1) Allotment copies

(2)Release order copies & (3)

Truck chits.

10 If the MSP/Levy stock allotted to

other whole sale nominees

confirm the full value is received

before issue of Ro’s/DO’s

11 MSP payments for that year wise

check the correctness and geninity

of MSP expenditure campare it

with costing sheet after your

comments.

Annexure-5

IX Sales Register

1 Whether Sales Register is

maintained properly, scheme wise

and commodity wise in the Fist

Software. Have you verified the

sales & same is enclosed.

Annexure-6

2

a)

b)

c)

Whether

Daily Sales Abstract is received

from WP/RP.

It is acknowledged by District

Office.

Whether DDs received along with

DD Remittance statements as per

Fist only and Total Sales have

been cross checked.

3 Have you found any delay in

receipt of DD from WP/Other

Outlets

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4 Whether the J.E.’s passed for the

Stock issued without value at WSP/RP.

J.Es passed through “Enter Sales

Details” Ex. Qty. of Police/ Fire

Extinguisher Department

/Homegaurd/Prison other whole sales

nominees (TAPCMS). Verify and

mention the

J.E number & verify the same with

the stock statement/sales agreement

of WSP concerned. This is to verify

whether the sales values to TAPCMS/

police/ fire/homegaurd/other taken in

to account or not.

x Stock Register

1 Whether Stock Register is maintained

Commodity/scheme wise on daily

basis at WSP through Fist software.

2 a)

b)

c)

d)

Whether District Office is receiving

monthly physical verification. Stock

report of WP/RP. From the Physical

verification office deputed.

Cross verification is carried out by

District Office with Fist Soft ware

Any difference is noticed and recorded

by DO. Furnish details in quantity/

commodity wise and amount.

Any surprise physical verification has

been conducted by the District

manager during the month. Comment.

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3 a)

b)

As per the instruction Physical

verification of stock is to be carried

out by the Auditors at least once in

a quarter. Give the detailed report

of physical stock verification of

WSP/RT/MSP storage points during

the month.

If any major shortages noticed

during physical stock verification

have you given flash report to HO.

4 a)

b)

Whether Stock transfer Register is

being maintained for transfer of

Stock form one scheme to another

scheme. As per the Allotment. If

not reasons for the same.

Is there any diversion of stock from

MDM to PDS or vice versa in any

of the WSP

5 Whether Stock transfer from One

Depot to another Depot

maintained and one district to

another district. As per DC orders.

XI Differential Cost

1 a)

Whether differential cost on

rice/wheat & Sugar accounted

for the purchase NFSA RO Qty from

FCI & Sugar Factory is maintained

properly. Are the entries are

passed through J.E. in the Fist.

b)

In case of E-auction purchase and

MSP/Levy stock(Rice, wheat, Salt,

P oil, Ragi, Jowar etc.,) Claims are

made and accounted(JE) on

Allotment basis.

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c)

In case of E-auction purchase

stock(Rice, wheat, Salt, P oil, etc.,)

Claims are made on purchase rate

FIFO basis yes / No.

If NOT comment.

2 If not accounted on account of for

having not received full amount

please inform the amount received

and the balance to be received and

total amount to be informed

3 Whether Diff. cost Claim and

Received Register is maintained

properly.

4 Whether Diff.cost claim is submitted

monthly basis to DC.Office. date of

submission and amount claimed and

received check the correctness of the

claims.

5 Whether subsidy/Differential cost

watch register is maintain in D.O or

not the register is maintained

monthwise/schemewise/allotement

wise.

Internal auditor has to verify &

furnish the details of

subsidy/Differential lost to be

claims/Received/Balance to received.

Annexure-7

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XII Transportation charges.

1 a)

b)

c)

d)

Whether Retail TC and Handling

charges are claiming on the basis of

Each whole sales points TC/HC

report on monthly basis

Whether register is maintained and

reconciled on monthly basis. Yes/No.

if no advise to maintain the same

Claimed amount is fully received wsp

wise yes/no.

If no whether diff. amount is

recovered from the concerned depot

managers.

2 a) Whether Transportation Register is

maintained properly. What is the

total charges paid during the month

In respect of Rice/Wheat / Sugar.

Etc.,

b)

c)

d)

Is there any delay in receipt of goods.

In case of delay what is the reasons.

Is there any difference between the

quantity lifted at FCI Godown and

delivered at Whole Sale Point.

If so please inform the difference in

quantity and the value.

Is there any cases of delay in lifting

from FCI by transport Contractor . if

so

16-

e)

f)

Any demurrage charges are collected

by FCI from KFCSC.

whether the same is recovered from

the Transportation bill.

3 a)

b)

Whether

You have verified Transport

Contractors Bills with that of the qty.

purchased/lifted along with stock

receipts/release orders.

TDS is collected and remitted.

4. Whether have you verified the

Transportation bills before sending

for payments to D. C office.

XIII Payment of Admn. Charges on

Rice/Wheat/Sugar/K oil

1 Whether you have verified

Administrative Charges paid to DC as

per Costing Sheet and proper

classification of stock under

respective scheme and price. At

which it is sold.

XIV Details of Revenue expenditures

during the month. Auditor is to

verify the revenue

expenditures/administrative

expenditures the correctness and

the genuinity of the expenditures of

District Office/WSP/RSP/LPG if any

irregularity offer your comments.

Annexure-8

XV Viability of the D.O Auditor is to

verify the viability statement of the

District Office/WSP/RSP/LPG and

offer the comments.

Annexure-9

XVI ADVANCE OTHER THAN STAFF

1 Whether Advance paid Register is

maintained Properly

17

2

a)

Whether

Advance paid to FCI is being adjusted

soon after receipt of goods at Whole

Sale Points.

b) The entries are passed during the

month it self. If not date of passing

and amount during the subsequent

month. Offer comments for having

not passed the entries.

3 Furnish details with regard to

outstanding Advances for more than

3 & 6 months. Whether reasons have

been found out for such old

Advances. Furnish details.

Suggestions for rectification.

Whether records are made available

for verification What steps DM has

taken.

XVII Staff Advance Register

1 Whether Staff Advance Register is

properly maintained.

2 Please furnish the details of irregular

account such name of the staff

amount since when it has become

irregular account what steps have

been taken by DM

3 Whether Outstanding advances of

transferred employees have been

transferred to concerned districts

through J.E. Yes/No If no comments.

4 Verify & furnish the details of staff

advance. Comment what type of

advance it is. Is any recovery

(misappropriation) amount raised to

advance. Give the recovery position,

action taken by Dm.

Annexure-10

18

XVIII Deposit Register

1 Whether Deposit Register is property

maintained. Furnish details such as

Date, Nature and amount of all the

category.

XIX Sundry Creditors/ Debtors Register

1

Whether Sundry Creditors and

Sundry Debtors Register maintained

properly

2 Furnish date wise outstanding

balance of more than 3 & 6 months

and whether reasons have been

ascertained for such long

outstanding, What steps have been

taken by the DM, Whether you have

verified the relevant records for the

same

Annexure-11

(Sundry debtors)

Annexure-12

(Sundry Creditors)

XX Log Book

I Whether Log Book is maintained &

verified properly in all respect

2 Whether Vehicle is in the name of the

Corporation or taken on monthly

hire. What is the amount of hire

charges paid. What is the total km

traveled in a month.

3. What is the expenses incurred by the

Do for Repairs and Mainte- nance for

the month

4 Whether HO permission is taken for

the major repair

20

5 In case of accident whether insurance

claim is lodged Whether amount of

claim received What is the present

position Whether Vehicle is fully

insured,

XXI Service Register

1 Whether service charge register is up

dated Whether It is properly

recorded.

2 Whether leave account, pay scales /

increment sanctioned etc is properly

recorded therein.

3 Whether Attendance Register is

checked Whether Leave is noted

properly.

4 Whether earned leave account of the

official retiring on superannuation or

any other case is verified and

whether certificate is attested in the

Service register for settlement of

encashment benefit as per Rule

(18(A) of KCSR

5 Whether Proper job allocation is

done. Whether DO is maintaining JOB

allocation Register

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-20-

XXII Trial Balance, Receipts & Payments

1

a)

b)

Whether

Monthly Trail Balance is extracted.

Trail Balance is Talli- ed. Whether

same is attached to the Report.

Annexure-13

2

a)

b)

Whether

Monthly Receipts and Payments

Accounts is prepared.

Same is verified and checked,

Whether same is attached to the

Report .

3 Whether Trail Balance is included

Sales, Purchases, whether tallied

with Purchase / Sales agreement.

Fist Server consolidated.

4

a)

b)

Whether

All the accounts have been verified.

Classification is done correctly

Whether the balance tallies with

the sub ledger balances.

XXIII FUND FLOW STATEMENT

1

a)

b)

c)

Whether

Fund Flow Statement is prepared by

the DO.

You have verified the same

Whether It tallies with the books.

Fund transferred to HO source wise

details to be verified.

Annexure -14

XXIV Assets Register

1 Whether Assets Register is properly

maintained as per HO instructions.

2 Whether additions/purchases made

during the year and sales made

during the year is properly

recorded.

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3 Whether number is being done for

all the furniture items.

4 Whether physical verification is

carried out. When it is being done.

5 Whether approval has been

obtained from HO for the purchase

made during the year.

6 Books of forms & register

verification of proper accounting

of books and forms

purchase/supplied from H.O/got

printed at unit office and proper

issue of the same to W.S & RPS.

XXV COMPLAINTS REGISTER

1

a)

Whether

Compliance register is maintained.

How many complaints received

during the month and disposed off.

b) Whether monthly statement is

being dent to head office

XXVI MDM Scheme goods purchase

under Akshar dasoha programme

1 Commodity quantity and amount

involved as per Fist stock

statement.

2 Whether bills have been promptly

submitted to ZP and received the

amount from ZP in time. Reasons

for the delay.

3 Check the correctness of the bills

claimed.

4 What is the advance amount

received & what is the amount

adjusted and what is the amount

balance.

-22-

4 What are the total sales. Furnish in

quantity, value etc and commission

received thereon.

5 Whether delay is noticed while

submitting the bills to ZP and receiving

the amount.

XXVII TAXATION MATTERS

1

a)

b)

Whether

TDS is applied correctly and deducted

while making the payment and remitted

to Govt before the due date.

Bank Challan for remittance is properly

maintained

2 Whether Service Tax paid/ Received is

accounted under separate head of the

account

3 Whether Service Tax paid to

TransportCont ractor, Service Tax paid on

Rent, Service Tax received on Rent is

properly accounted and remitted to the

Government before the due date of the

payment.

4 Whether Professional Tax collected from

the employees remitted to the Govt

before the due date. Whether PT is

applied as applicable.

5 Whether ESI contribution is remitted to

ESI Corporation in time. Whether it is

applied as per the Act

6 In the case of VAT whether you have

verified Input Tax Paid on purchase of

Taxable Items based on Purchase

Register, Purchase Invoice/Bills are taken

correctly in the monthly VAT Returns.

Whether You have verified Output Tax

collected on Sale of Taxable Commodity

is correctly taken in the monthly VAT

Returns based on Sales Register/Sales

Bills.

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7 Whether Monthly/Quarterly/Half

Yearly/Yearly Return applicable to

VAT/Profession Tax/Service Tax/TDS

Income Tax submitted to respective

to authorities in time. Whether any

delay is being observed.

8

a)

b)

c)

Whether

VAT Return is submitted to HO

before 15th of the month.

Return is being checked by you

during the course of Audit.

Is there any delay in submission,

non- furnishing particulars in VAT

Return is observed.

XXVIII Returns submission to H.O.

1

a)

Whether

DO is Prompt in submitting

Daily/Fortnightly/Monthly/Quarterl

y/Half Yearly/Yearly Returns to HO.

XXIX Misappropriation/late

remittance/non remittance

1. Physical verification of stock by

internal auditor

-24-

a) Give the details of physical stock

Verifications of WSP/RSP/LPG

during the month in annexure

15-A and enclose the physical

stock verification statements of

the same.

Annexure-15A

b)

Have you noticed any

shortages/excess stock. If yes, give

the details and quantity the

amount involved.

c)

Have you Flash Report to MD/IAO

in such cases .

d)

Any other irregularities pertaining

to stock

2. Physical verification of stock by

DM/District office staff.

a)

Whether district office staff

conducted the physical stock

verification of WSP/RSP monthly

as per the Head Office circular

give details in

Annexure-15-B

Annexure-15B

b)

Is there any stock

shortages/excess tranced out by

district staff give details-

c)

Verification DM’s daily for the

month and other DM done P.V of

stock of WSP/RSP/LPG give

details. It misappropriation

tranced out by DM give details.

3. Shortage/excess/misappropriation

cases reported by any other made

during the month by DC/DD

food/food inspector/others give

details.

-25-

4. Whether you noticed any late

remittance /non remittance of

sales proceeds. Cases, give

details WSP/RSP/LPG wise and

quantity the amount

ANNEXURE-15-C

Annexure-15C

5. If any stock shortages/excess

late remittances/non

remittance cases action DM

has taken in such cases.

XXX Compliance Audit

a) No of pending paras up to last

month audit

b) No of audit paras during the

month

c) Total no of pending paras of

internal audit

ANNEXURE-16

d) Offer your comment about the

compliance given by the DM

for your audit observations.

e) Up to which month date of

compliance given for the last

time.

f) Have you verified the same

and forwarded it to H.O with

yours comments .

XXXI General

1 Whether DO is compiling with

the various instructions,

approvals instructions given by

Head Office and also

directions given by the

Government

2 Whether JEs received from

HO/Other Offices is accounted

properly

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3

a)

b)

Whether

Register for transfer of Fund

is being maintained. Once in

a quarter reconciliation is

being carried out Up to

which quarter reconciliation

is being done.

Whether Report is

submitted to HO.

4 Whether Accounting

Standard complied with. Are

you satisfied with internal

control System for stock

verification Job Allocation is

being done by DM as per Ho

instructions and Report is

sent to HO

5

a)

b)

Whether

Attendance Register and

leave records are

maintained properly

Leave Application is

received at DO promptly.

6 Is there any control on

Movement of Stock? Any

Register is being maintained

Whether dead stock

Register is being maintained

by DO Whether Report is

being submitted to HO

-27-

7

a)

b)

Whether

House Keeping maintained

neatly

Old records are properly

maintained

8 Whether You have compared

with the Budget and Expenses

incurred at least on quarterly

basis Any expenditure is

exceeded Offer Your

comments

9 Whether Circular received

from HO is being maintained in

chronological order at DO

10 Whether DO is promptly

monitoring the pending

bills/claims with Govt fund

transfer

11 Whether Internal Control

System on Inventory, Billing,

Stock procurement Claim.

Expenditures. Punctuality is

satisfactory Make suggestion

for the improvement.

12 Whether DO is maintaining

Cash Boo and Bank Book on

Computer or manually or both

way. Offer your specific

comments for the maintaining

the accounts books.

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13 Whether the following

Annexure has been

enclosed to the report:

a. Annexure I

b. Annexure II

c. Annexure III

d. Annexure IV

e. Annexure V

f. Annexure VI

g. Annexure VII

h. Annexure VIII

i. Annexure IX

j. Annexure X

k. Annexure XI

l. Annexure XII

m. Annexure XIII

n. Annexure XIV

o. Annexure XV-a

p. Annexure XV-b

q. Annexure XV-c

r. Annexure XVI

14 Details of Wholesale

Points/ LPG etc reports

are enclosed to this report

XXXII Audit Details.

1 Date of post audit carried

out

From --------to-------

2 Month

3 Report submitted to DM

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4 Is there any delay in

submission of audit

report

5 Reasons for the delay

6 Whether staff are

cooperative

7 Name of audit staff

and qualifications

8 Have you discussed

your findings with DM

for rectification.

Internal Auditor

Date:

Place:

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Audit observations

It is mandatory to mention your audit observations in this para your

observations during pre audit observation during post audit, observations of

physical verification of stock and any other observation made by you. These

observations shall be treated as internal audit paras. Auditor has to get the timely

compliance for these paras and give his comments in compliance report. The

following areas shall be considered for the main observations.

a)Accounting system/proper Accounting/classification/Timely production of

books/Records for Audit/Pending JEs.

b) Statutory irregularities –TDS-VAT

c) BRS

d)Staff Advances

e) Sundry dettors

f)Purchase/Sales agreement matching

g)MSP-operations-irregularities

h)P.V/Late remittance/non remittance/Godown maintainance

i)Compliance

j) Administrative lapces

k) Financial irregularies

l)correction from DMs

J)and any other irregularities auditor noticed

The main observations shall be given by auditor in the following format the facing

sheet should pasted as 1st

page of the Audit Report.

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FACING SHEET

We have carried out the Internal Audit of ------District Office for the month of --------

--.

We have verified all the necessary documents as per the Scope of Audit and we

have made some key observations.

AUDIT OBSERVATIONS FOR THE MONTH------------- OF ------------DISTRICTS.

SL. No Para No Area Audit Observation Auditor’s Suggestion

The District Manager is required to give the compliance report for the above key

Audit Observations within 15 days.

Internal Auditor

-------------Districts

General Manager

-1-

Annexure –VI

Long form of Internal Audit Report of Head Office KFCSC

SL.No Particulars Auditors Observations

01 Finance & Accounts Section

a) Verification of Cash Book

b) Verification of all vouchers

c) Classification Head of Account

d) Accounting System

Accounting Policies

Accounting Standers

e) Taxation matters

f) FIST update

g) Any financial irregularities

h) Whether all the instructions of circulars,

delegation of powers followed or not.

i) Geninity of the expenditure

j) Verification of Fund Transfer

k) BRS

l) Borrowings & interest paid

m) Fund management system

n) MSP/Levy/OMS claims (GOI claims)

MSP claims

Levy claims

Sugar claims

Interest claims on government

guarantee loans..

o) Salary Section check whethers all

salaries made properly.

p) Sundry debtors Staff Advances

Recoveries.

q) Quarterly Accounts

Annual Accounts

-2-

II MSP Section

a) Preparation of costing sheet

III PDS Section/Engineering section

IV Marketing Section;MDM/LPG/Petrol

V Transport Section

Log Book, Maintainance

VI Admin Section

VII Legal Section

Pending Cases

VIII I.A.O Section

Timely Audit

Pending Paras

Clearance of Paras

Misappropriation cases

IX Company Secretary Section

X Others

Annexure-VII

Details of WSP/RSP/LPG/Petrol Bunk/Kerosene points district wise

SL.

No

District Office No of

Whole

Sale

Points

No of

Retail

Points

No of

LPG

Units

No of

Petrol

Bunks

No of

Kerosene

Points

No of

MDM

Godowns

1 Bagalkote 08 1 01

2 Bangalore North 07 64 03

3 Bangalore South 12 31 01 01 01 05

4 Belgaum 11 5

5 Bellary 11 02

6 Bidar 06 05

7 Bijapur 11 02

8 Chikmagalore 08 05 01 02

9 Chitradurga 06 01 01 02

10 Davanagere 07

11 Dharwad 07 05

12 Gadag 06

13 Hassan 15 03 01

14 Haveri 04 01 03

15 Kolar 06 01 01 01

16 Koppal 04 01

17 Mandya 04 02 01 03

18 Mysore 15 05 01

19 Raichur 05

20 Shimoga 08 03

21 Tumkur 10 03 03 02

22 Karwar 05 10 01 08

23 Chikaballapura 06 02

24 Ramanagar 08 02

25 Yadgiri 02 01

26 Chamarajnagar 06 01 03

27 Mangalore 05 01 01 04

28 Gulbarga 09

MlÄÖ 212 141 09 03 09 48

GENERAL MANAGER