Core Areas for Internal Audit of the Head Office for 2026-27 · Audit/13(1)/2021/COREAREAS/24
EPFO circular Audit/13(1)/2021/COREAREAS/24 · 13 Jul 2026
Official title
Core Areas for Internal Audit of the Head Office w.r.t the year 2026-27 No. Audit/13(11/2021/COREAREAS/24 dated 13/07/2026
Official record
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Check the official recordWhat changed
The Employees Provident Fund Organisation (EPFO) has defined the core areas for the internal audit of its Head Office for the financial year 2026-27. The audit scope encompasses 17 functional divisions, including Investment, Finance, Pension, HRM/HRD, ASD, CSD, Legal, IWU, Recovery/IBC, Exemption, Compliance, PFD, Vigilance, and PID. Internal Audit Parties (IAP) are required to prioritize these specified core areas while ensuring a comprehensive audit of all other functional areas. The audit process mandates the examination of files, reports, returns, documents, communications, and relevant portals. Additionally, all divisions are subject to audit regarding the implementation of systemic improvements suggested by the Audit Division and the adoption of E-office.
What you must do
- Internal Audit Parties must prioritize the specified core areas during the audit process.
- Internal Audit Parties must examine all relevant files, reports, returns, documents, and portals.
Document text
(For Web-Circulation/e-Office Internal Circulation)
कर्मचारी भविष्य निधि संगठन Employees Provident Fund Organisation (श्रम एवं रोजगार मंत्रालय, भारत सरकार) (MINISTRY OF LABOUR & EMPLOYMENT, GOVERNMENT OF INDIA) मुख्य कार्यालय/Head Office प्लेट ए, ग्राउंड फ्लोर, ब्लॉक II, ईस्ट किदवई नगर, नई दिल्ली-110023 Plate A, Ground Floor, Block II, East Kidwai Nagar, New Delhi-110023 Website: www.epfindia.gov.in, www.epfindia.nic.in
No. Audit/13(1)/2021/COREAREAS/24 Date: 13.07.2026
Circular
Subject: Core Areas for the Internal Audit of the Head Office - Reg.
With reference to the above subject, please find the updated Core Areas for Internal Audit of the Head Office w.r.t the year 2026-27, as under:
| Sr. No. | Division | Core Areas |
|---|---|---|
| 1. | Investment | i. Compliance with investment pattern notified by Govt. of India. |
| ii. Risk management and diversification of investments. | ||
| iii. Monitoring performance of Fund Managers/ ETF Manufacturers, ECA and Custodian. | ||
| iv. Defaulted and Downgraded investments of EPFO. | ||
| 2. | Finance (Budget) | i. Monitoring re-appropriation and supplementary allocations. |
| ii. Utilization of funds vis-à-vis budget provisions. | ||
| iii. Timely release and allocation of budget to HO/ ZOs/ Field Offices and monitoring of utilization thereof. | ||
| iv. Monitoring expenditure under major schemes and administrative heads to prevent excess expenditure and parking of funds. | ||
| v. Timely submission of budget-related reports, statements, and information to Ministry of Labour & Employment, CBT and other authorities. | ||
| 3. | Finance (Balance Sheet) | i. Accuracy and reconciliation of accounts. |
| ii. Timely finalization of annual accounts. | ||
| iii. Accounting policy compliance and disclosure standards. | ||
| 4. | Finance (WSU) | i. Assessment of studies undertaken for improving efficiency, transparency, and ease of compliance. |
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| ii. Evaluation of impact of policy changes on stakeholders and field offices. | ||
|---|---|---|
| 5. | Pension | i. Government share of contribution under EPS’95. |
| ii. Pension Disbursement & Actuarial Evaluation of the Pension Fund. | ||
| iii. Validation of pension calculations and revisions. | ||
| iv. Timely settlement of PoHW cases. | ||
| 6. | HRM/ HRD | i. Strength of staff in different divisions in line with Cadre Restructuring. |
| ii. Compliance with DoPT guidelines and internal circulars on HR matters like appointment, confirmation, Seniority, Reservation, Promotion, transfer including APAR, vigilance clearance, and disciplinary proceedings. | ||
| iii. Timely conduct of DPCs and adherence to Recruitment Rules. | ||
| 7. | ASD | i. Works related to budget utilization, expenditure, and administrative & financial approvals including procurement of Goods & Services including hiring of vehicles, Procurement through GeM and compliance with procurement rules. |
| ii. Timely Adequate and equitable distribution of staff in different divisions according to their work load. Updation of Employees’ Service Books | ||
| iii. Timely transfer of Officers/ Officials in different divisions on completion of their tenure, especially in sensitive division. | ||
| iv. Contract management and vendor performance monitoring. | ||
| 8. | CSD | i. Effectiveness of grievance disposal timelines. |
| ii. Monitoring of disposal of grievances received through EPFiGMS, CPGRAMS, PMO references, and other platforms. | ||
| iii. Quality and consistency of grievance redressal provided by field offices. Reduction of grievance pendency and compliance with timelines prescribed by Government and EPFO. | ||
| iv. Analysis of recurring grievances and corrective measures taken to address systemic issues. | ||
| v. Feedback mechanism and assessment of member satisfaction. | ||
| 9. | Legal | i. Management of Legal Cases with special focus on steps taken to reduce litigation. |
| ii. Reduction of contempt cases. | ||
| iii. Management of IBC cases and adherence of timeline as prescribed under IBC Act | ||
| 10. | IWU | Examination of provisions for International Workers and issuance of Certificates of Coverage (COC). |
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| 11. | Recovery/ IBC | i. Monitoring of Recovery of Current & Arrear Demand with special focus on steps taken to expedite the recovery. |
|---|---|---|
| ii. Timely submission of claims by field offices and follow-up with Resolution Professionals/ Interim Resolution Professionals/ Liquidators under the Insolvency and Bankruptcy Code, 2016. | ||
| iii. Compliance with instructions and SOPs relating to IBC matters. | ||
| iv. Maintenance and monitoring of database of establishments undergoing insolvency proceedings. | ||
| 12. | Exemption | i. Grant and monitoring of exemptions under EPF & MP Act. |
| ii. Cancellation/withdrawal of exemption in case of violations. | ||
| iii. Monitoring of transfer of accumulations between exempted and unexempted establishments. | ||
| iv. Compliance of exempted establishments with statutory provisions. | ||
| 13. | Compliance | i. Monitoring of compliance with statutory provisions of EPF & MP Act and schemes. |
| ii. Timely submission of compliance reports to oversight authorities. | ||
| iii. Correct Disbursement of schemes funded by Govt. of India such as ABRY, PMRPY, PMPRPY, PMVBRY etc. | ||
| 14. | PFD | i. Planning, approval, and execution of infrastructure projects including construction of Regional Offices, Zonal Offices, staff quarters, and other EPFO buildings. |
| ii. Compliance with CPWD norms, GFR provisions, and internal guidelines in civil and electrical works. | ||
| iii. Monitoring of project timelines, cost overruns, and quality assurance mechanisms. | ||
| iv. Tendering and contract management including adherence to transparency and procurement rules. | ||
| 15. | Vigilance | i. Monitoring of disciplinary proceedings and adherence to prescribed timelines. |
| ii. Processing of vigilance complaints, investigations, and preventive vigilance measures. | ||
| iii. Compliance with CVC guidelines, vigilance manuals, and departmental instructions. | ||
| iv. Monitoring of major penalty and minor penalty cases, including prosecution matters. | ||
| v. Examination of systemic improvements suggested through vigilance investigations. | ||
| vi. Timely submission of vigilance reports and returns to CVC and other authorities. | ||
| 16. | PID | i. Compliance with the provisions of the RTI Act, 2005 and ensuring timely disposal of RTI applications and appeals. |
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| ii. Monitoring of First Appeals, Second Appeals, and cases before the Central Information Commission (CIC). | ||
|---|---|---|
| iii. Maintenance and updation of disclosures under Section 4 of the RTI Act. | ||
| iv. Review of observations and directions issued by Parliamentary Committees and CIC. | ||
| 17. | All divisions | i. Implementation/ decision by the various divisions on the suggestions of Audit Division for Systemic Improvements. |
| ii. Implementation of E-office across all Divisions. |
- The Core Areas are intended as aids to the Internal Audit Party (IAP) and not to be construed as an end in themselves.
- IAP while conducting the audit should prioritize the Core Areas, while ensuring that all other functional areas are also comprehensively audited.
- IAP is expected to examine the files, reports, returns, documents, communications, concerned portals etc, mandatorily in relation to the Audit.
(This issues with the approval of the Competent Authority)
Yours faithfully
(Signature) Abhay Ranjan Additional Central P.F. Commissioner (Audit)
To: i. ACC (HQ) / ACC / RPFCs-I/ RPFCs-II of Head Office ii. DD/AD (Audit) of IAP HO-I and IAP HO-II
Copy to: i. OSD to CPFC: for information. ii. PPS to FA&CAO/CVO/Director, PDNASS/ All ACCs (HQ) in HO: for information. iii. PS to all ACCs in HOs: for information. iv. Chief Engineer: for information. v. RPFC-I/ RPFC-II (ASD) (HO): for information. vi. RPFC-I (Audit) in all ZOs: for information. vii. All RPFCs-I/RPFCs-II (Audit) in HO: for information. viii. All IAP teams of the ZOs: for information. ix. Director (OL): For Hindi Version of this circular. x. E-Office team: for uploading on E-office. xi. Web-admin: for uploading on EPFO Website
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Source details
- Source
- Employees' Provident Fund Organisation
- Type
- circular
- Published by source
- 13 Jul 2026
- Document number
- Audit/13(1)/2021/COREAREAS/24
- Issuing division
- Head Office
- Coverage area
- labour