GoI has Approved to the
proposal for revision in the audit fees & allowances of Statutory Central
Auditors and Statutory
Branch Auditors of RRBs. The same will be applicable /payable to those
auditors who conducted
the annual audit of RRBs for the financial year ending 31 March 2013.
quality of Audit.Communication
in this regards is being producec here under along with revised
fee chart for reference:
NB.IDD.RRCBD.BMBL/
/323-D/2013-14
22 May 2013
The Chairman
All Regional
Rural Banks
Dear Sir
Regional Rural Banks – Statutory Audit for
the year 2012-13 – Revision of Fees & Allowances
In
continuation of No:NB.IDD.RRCBD.BMBL.181/323(C)/2013-14 dated 16 April 2013, by
email, on the above subject forwarding therewith the guidelines for appointment
of Auditors and the selection of branches for Audit for the year 2012-13, we
advise that we have since received the GoI Approval to the proposal for
revision in the audit fees & allowances of Statutory Central Auditors and
Statutory Branch Auditors of RRBs vied GoI letter No: F.No.1/2/2011-BOA dated
21 May 2013. The same will be applicable /payable to those auditors who
conducted the annual audit of RRBs for the financial year ending 31 March 2013.
The revised fees and allowances of Statutory Central Auditors and Statutory
Branch Auditors is given in Annexure. This will remain applicable until further
revision.
2. In this
connection, it is clarified that Head Office Audit includes audit of administrative
offices like Area Office and Controlling Office also. While revising the fee
for SCA, fees for overall auditing / consolidation have been taken into account
along with certain other aspects as mentioned in para 03 of Annexure.
3. We,
further, advise that before making payment (or payment of difference of amount)
you might ensure the quality of Audit.
Yours
faithfully
(J.N.Prasad)
General
Manager
Encl:
Annexure
Annexure
Schedule of Audit Fees and TA/Halting allowances
admissible to Auditors for Statutory Audit of RRBs – 2012-13
1. Head Office audit fees
The
following revision in the remuneration of the Statutory Auditors of RRBs for
the year 2012-13 onwards until further revision.
|
Business
Levels
(Advances
+Deposits)
of the RRB
as a whole
|
Audit fees(Rs)
|
|
Upto
Rs.100 crore
|
16250
|
|
Above Rs.100 crore to Rs.500 crore
|
21250
|
|
Above
Rs.500 crore to Rs.1500 crore
|
32500
|
|
Above
Rs.1500 crore to Rs.3000 crore
|
42500
|
|
Above
Rs.3000 crore to Rs.4500 crore
|
53750
|
|
Above
Rs.4500 crore
|
62500
|
2. Branch audit fees
|
Sr No.
|
Quantum of
Loans & Advances of
the
concerned branch (Excluding
Inter
branch advances)
|
Audit fee(Rs.)
|
|
1.
|
Upto
Rs.2.50 crore
|
3875
|
|
2.
|
Above
Rs.2.50 crore to Rs.5.0 crore
|
4875
|
|
3.
|
Above
Rs.5.0 crore to Rs.8.0 crore
|
5875
|
|
4.
|
Above
Rs.8.0 crore
|
6875
|
3. Reimbursement of Travel ling and Halting Allowances (TA/HA) for
Head Office Audit and Branch Audit
(a) Lodging Charges
Since RBI
has categorised the audit officials into three categories and equated them with
the
equivalent
rank of bank officials for payment of lodging charges etc. to the partners /
proprietors of the audit firms, it was agreed to similarly equate the audit
officials with the RRB officials. The lodging charges payable to the auditors
may be paid, subject to the production of bills.
|
Category
of audit
officials
|
Scale
& designation of bankofficials (as per IBA) equated for PSB audit
|
Scale
& designation of bank officials (as per IBA) now proposed for RRB audit
|
|
Partners /
proprietors
of audit
firms (Central & branch audit firms)
|
VII
General Manager
|
V/ VI –
General Manager
|
|
Qualified
Assistants
|
III –
Senior Manager
|
III –
Senior Manager
|
|
Unqualified
Assistants
|
I -
Officers
|
I -
Officers
|
Wherever
banks are making arrangements for the stay of the auditors, no lodging charges
will be payable.
Wherever banks having Guest House of Visiting Officer's Flats, the same may be utilized
to cater to the needs of the auditors.
(b) Boarding Charges
The boarding
charges payable to audit officials have been decided as under :
|
Category
of audit officials
|
Scale
& designation of bank officials (as per IBA) equated for PSB audit
|
Scale
& designation of bank officials (as per IBA) now proposed for RRB audit
|
|
Partners /
partners of audit firms
|
500
|
400
|
|
Qualified
Assistants
|
425
|
375
|
|
Unqualified
Assistants
|
375
|
325
|
The above
boarding charges are subject to the production of bills. Where no bills are
produced, boarding charges @60% of the aforementioned rates may be paid as
hitherto, to cover the boarding and other incidental charges, further wherever
the RRB is making the boarding arrangements, no boarding charges will be
payable.
(c) Travel ling Allowance
Travel ling
allowance in respect of partners / proprietors is to be considered by allowing
travel by air-conditioned First class by rail or by air in economy class or
actual cost of conveyance by other modes of transportation where the routes are
not served by air / rail. The audit assistants are to be allowed to travel by
First class/ air conditioned II tier class by rail or to be reimbursed the actual
cost of conveyance by other modes of transportation where the routes are not
served by rail.
(d) Daily conveyance
The rates of
daily conveyance charges for the three categories of auditors subject to the
conditions prescribed hereunder are :
i. The
actual local conveyance charges incurred by auditors while working away from
their
headquarters
for conducting the bank's audit, not exceeding Rs.188/- per day for
proprietors/
partners, Rs.94/- and Rs.75/- per day for qualified and unqualified assistants
respectively,
may be reimbursed on a self-declaration basis.
ii. In case
of local auditors, it the distance between the auditor's office and bank's
office /
branch is
beyond 8 kms, actual expenditure not exceeding Rs.188/- per day for
proprietors/
partners, Rs.94/- and Rs.75/- per day for qualified and unqualified assistants
respectively,
may be reimbursed on a self-declaration basis.
iii.
However, the reimbursement of such expenses shall not exceed 10% of the audit
fees
payable to
the respective auditors. It will be observed from the foregoing that there will
be
no
distinction between statutory central auditors and branch auditors regarding
payment
of branch
audit fees and reimbursement of travelling, halting allowance and daily
conveyance
charges.
With regard
to the reimbursement of travelling, halting allowance and daily conveyance
charges, the following aspects are to be considered :
i. Banks
should call for such details as are necessary for verification of bills in this
regard and the statutory central auditors as well as branch auditors shall
furnish such details for
verification
of the actual expenses.
ii. Where
the statutory central auditors have their headquarters at a place different
from that where the Head / Central Office of the bank is situated, but have an
office at the same place as the Head / Central Office of the bank, the TA/ HA,
if any, should be nominal for the
central
audit. However, to ensure the quality of audit, there should be no objection to
the
partners of
the firm visiting the Head / Central Office of the Bank as and when they deem
it
necessary.
iii. Where
the statutory central auditors or branch auditors have an office at the place
where
the
branches/ offices of the bank to be audited are situated, they will not be
reimbursed
TA/HA.
However, local conveyance may be reimbursed as suggested at para 3(c) above.
iv. The TA/HA
should be kept to the minimum.
v. In case
of dispute between the auditors and the bank regarding settlement of their
bills, the Chairman of the RRB shall be the final authority to decide the
claims. The Chairman has
to satisfy
himself that the actual expenses have been incurred by a particular auditor and
the claims
are settled keeping in view the aforesaid RBI guidelines.
vi. For
audit of branches, where no traveling and or lodging facilities are available,
the bank
may provide
to the Auditors, a Jeep or other mode of conveyance and the lodging and
boarding
facilities. These expenses as also other expenses incurred by the bank, if any,
on
the lodging
/ boarding / halting of auditors shall be deducted from the total claims
preferred by
the Auditors while settling their bills by the RRBs. The Auditors will have to
submit the
necessary bills, vouchers etc., in support of their claims.
4. Fees in respect of submission of Long Form Audit Report / Filling
of Tax Returns under Income Tax Act, 1961/ Wealth Tax Act, 1957 or any other
Returns / Certificates required under any other Act which the RRB may be
required to file.
No separate
fees for LFAR would be payable to Auditors for HO and Branches as substantial
enhancement
has been made in the revised fee structure. Further, no separate TA/ HA will be
admissible, for these Returns / Certificates.
5. Fees to be paid when branches to be audited are 10 or less in
number.
In case of
RRBs whose branches to be audited are 10 or less in number, the Statutory
Central Auditor (SCA) who takes up the work of HO will also take up the audit
of branches. Payment for branch audit will be payable separately as per revised
norms.
6. Service Tax
The RRBs are
required to pay Service Tax at applicable rate to the Auditors on production of
receipt.
7. The hike in audit fees will be applicable to
those Auditors who conducted the annual audit of RRBs for the financial year
ending 31.3.2013.
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