Request for Proposal (RFP)

Transcription

1 Request for Proposal (RFP) For Appointment of Quarterly Concurrent Auditor for State Health Society (SHS) and District Health Society (DHS) for Audit of all programmes under NHM including NCDs (For the Year ) [ ]

2 REQUEST FOR PROPOSAL (RFP) State Health Society, Uttarakhand(Uttarakhand Health & Family Welfare Society, Dehradun), seeks to invite Proposal from C& AG empanelled Chartered Accountant firms those are eligible as per the given minimum eligibility criteria for conducting the quarterly concurrent audit of State and District Health Societies under the National Health Mission for The details about the background of the auditee, the units to be covered in the audit, scope of work, terms of reference, and the eligibility criteria for selection of the C. A. firms are given in the following paragraphs. Terms of Reference (ToR) National Rural Health Mission (NRHM) of the Ministry of Health & Family Welfare was launched on 12 th April, 2005 by the Government of India to improve medical facilities in all the area in the country. The NHM seeks to provide accessible, affordable and quality health care to the population, especially the vulnerable sections. It also seeks to reduce the Maternal Mortality Ratio (MMR) in the country from 407 to 100 per 1,00,000 live births, Infant Mortality rate (IMR) from 60 to 30 per 1000 live births and the Total Fertility Rate (TFR) from 3.0 to 2.1 within the 7 year period of the Mission. It has now been termed as National Health Mission (NHM). NHM is overarching NUHM also and includes Non-Communicable Diseases (NCD) as well. 2. One of the visions of the Mission is to increase public spending on health from 0.9% to 2-3% of GDP, with the improved arrangement for community financing and risk pooling. The NHM has provided an umbrella under which the existing Reproductive and Child Health Programme (RCH) and various National Disease Control Programmes (NDCPs) have been repositioned. 3. At present the following Programmes/Schemes falls under the National Health Mission: A. NHM-RCH Flexible Pool: RCH Flexible Pool. Mission Flexible Pool. Routine Immunisation. Pulse Polio Immunisation National IDD Control Programme. B. National Urban health Mission (NUHM). 2

3 C. Flexible Pool for Communicable Disease: National Vector Borne Disease Control Programme (NVBDCP) Revised National Tuberculosis Control Programme (RNTCP) National Leprosy Eradication Programme (NLEP) Integrated Disease Surveillance Project (IDSP) D. Flexible Pool for Non-Communicable Disease, Injury & Trauma: National Programme for Control of Blindness (NPCB) National Mental Health Programme (NMHP) National Programme for Health Care of the Elderly (NPHCE) National Programme for Prevention and Control of Deafness (NPPCD) National Tobacco Control Programme (NTCP) National Oral Health Programme (NOHP) National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke (NPCDCS) Other New Initiative under Non-Communicable Disease Injuries and Trauma 4. Institutional and Funding Arrangements: For the implementation of the above programmes an MOHFW has required the creation of an Integrated Health Society at State and District levels (registered as a legal entity at the State and District under the national or State Society Registration Act). This is against the earlier arrangement of having distinct legal units (societies) for each program/scheme. Such integrated State Health Society (SHS) works in close coordination with the Directorate of Health & Family Welfare and District Health Societies (DHS) work in coordination with the District Collector and District CMO. Program implementation is done through its District Chief Medical Officer s office, Blocks, Community Health Centres (CHCs), Primary Health Centres (PHCs), Sub- Centres (SCs), Rogi Kalyan Samities and Village Health & Nutrition Sanitation Committees. Certain activities may be managed at the State level such as drug procurement, IEC, civil works, training using specialized entities such as SIHFW, IEC Bureau, PWD, the Directorate of Health and Municipal Corporations for the urban health components. In addition funds are also released to NGOs and private entities under public private participation arrangements. 3

4 Funding & Accounting Arrangements: Funds for the various programs are transferred to the States from the Government of India in the form of Grants-in-Aid to SHS on the basis of respective State Programme Implementation Plan (SPIPs) and approved Annual Work Plans which are prepared on the basis of District Health Action Plans (DHAP) of each of the districts in the State. Under the umbrella of the integrated SHS/DHS each program has separate bank accounts, maintains separate books of accounts and other financial records as per the requirements of each program and also submit separate financial activity reports at varying frequencies to the respective monitoring unit in MOHFW (GOI). 5. Financing by Development Partners/ Donors: Some of the programs are supported by development partners such as the World Bank, DFID, UNFPA, European Union, and GFATM etc. for which grant/ credit agreements have been entered into by GoI with the respective development partners. Compliance with specific fiduciary requirements of the development partners will additionally need to be reported by the auditors. Copies of the legal agreements and other project documents will be provided to the auditors, if needed. 6. Objective of audit services: The objective of the audit is to ensure that SHS receives adequate, independent, professional audit assurance that the grant proceeds provided by MOHFW are used for purposes intended in line with approved PIPs and AWP of individual programs and that the annual financial statements are free from material mis-statements and the terms of the credit/ loan agreements of the development partners are complied with in all material respects. The objective of the audit of the financial statements - individual financial Statements of State and District Health Society as well as the Consolidated Financial Statements of the State and District as a whole i.e. (Balance Sheet, Income & Expenditure, Receipt & Payment, together with relevant accounting policies, notes to accounts and schedules (Bank Reconciliation Statements, Statement of Funds Position, Reconciliation of Expenditures as per Audited financial statements with the expenditure reported as per the Financial Monitoring Report (FMR) and A Statement of Expenses (Reimbursable from the Development Partners in a separate format) is to enable the auditor to express a professional opinion as to whether - (1) the financial statements give a true and fair view of the Financial Position of the individual DHS,SHS at the end of each Quarter and of the funds received and expenditure incurred for the quarter ended. 4

5 (2) the funds were utilized for the purposes for which they were provided, and (3) where programs are financed by development partners, the respective program expenditures are eligible for financing under the relevant grant/ credit agreement. The books of accounts as maintained by the State and District Health Societies and other participating implementing units (Blocks, PHCs, sub centers and CHMOs etc) shall form the basis for preparation of the individual DHS and SHS financial statements as well as the consolidated financial statements for the state as a whole. 7. Standards: The audit will be carried out in accordance with Engagement & Quality Control Standards (Audit & Assurance Standards) issued by the Institute of Chartered Accountants of India in this regard. The auditor should accordingly consider materiality when planning and performing (except where a certain minimum coverage of implementing units is specified) the audit to reduce the risk to an acceptable level that is consistent with the objective of the audit. In addition the auditor should specifically consider the risk of material misstatements in the financial statements resulting from fraud. 8. CA firms eligible for audit: Firms submitting the proposals should meet the below given eligibility criteria a) firm should be empanelled with C&AG for the year / , b) firm should have existence of atleast five years as per ICAI certificate (as on ), c) firm should have atleast one FCA associated with it as full time partner for last 3 years, d) firm should have average turnover of minimum Rs Lacs of last three years, e)firm should have head office / branch office in Uttarakhand as per ICAI certificate, f) firm should have conducted atleast 02 Statutory audit/ concurrent audit assignments in last three years (excluding charitable organisations/ NGOs), g) firm should have conducted atleast 02 commercial sector Audit assignment of firms having annual turnover of Rs Crores in last three years (excluding bank branch audit). 9. Audit Fees and TA/DA: The firms those are interested to be appointed will have to quote consolidated audit fees including professional fee and the TA/DA expenses and other Taxes etc. In case the audit team request with the state for stay arrangement etc. then

6 cost to the state for such stay arrangements etc. will be adjusted against the consolidated fees quoted. 10. Scope & Coverage of audit: In conducting the audit special attention should be paid to the following: a) An assessment of adequacy of the project financial systems, including financial controls.this should include aspects such as adequacy and effectiveness of accounting, financial and operational controls; level of compliance with established policies, plans and procedures; reliability of accounting systems, data and financial reports; method, remedying weak controls ; verification of assets and liabilities and a specific report on this aspect would be provided by the auditor annually as part of the management letter; b) Funds have been spent in accordance with the condition laid down by the Department of Health & Family Welfare, Government of India from time to time with due attention to economy and efficiency, and only for the purpose for which the financing was provided. Counterpart contribution from State Government, where required has been provided. c) Goods and services financed have been procured in accordance with the relevant procurement guidelines issued by the GoI/ State Government. However, for various programmes, special attention must be paid to the requirements of the agreement between GoI and development partners (such as for RCH-II, RNTCP, IDSP and NVBDCP etc.) Such requirements are available within the State/ District s concerned Program Officers. For such externally funded programmes, auditor must satisfy that all expenditure, including procurement of goods and services have been carried out as per the procurement manual of the individual programmes and guidelines issued by the Programme Divisions of GoI and have all the necessary supporting documentation. d) Expenditures, ineligible for financing by the development partners (as documented in the Development Credit Agreement with IDA and equivalent agreement with DFID) are disclosed adequately in the financial statements and have to be certified in a separate statement as per the format provided. e) All necessary supporting documents, records and accounts have been kept in respect of the project. f) Sample Coverage of sub district Implementing Units: Audit will cover 100% of respective District Health Societies (DHSs) each being a legally registered society and at least 25% of total Block Level CHC/PHC of respective district in each quarter. The sample shall be selected in a manner that each Block level PHC/CHC in each district is audited once during the year. All the vouchers pertaining to the health facilities will be available at the respective health facility (DH, CHC/PHCs) for the purpose of audit. 6

7 11. Project Financial Statements A format of such financial statements and relevant schedules showing the consolidation of all the programmes is given at (APPENDIX A - FORMAT of FINANCIAL STATEMENTS) and also on the website of U H F W S i. e. Project Financial Statement (SHS, DHS and Consolidated) shall include the following: i. Audit Opinion as per APPENDIX-C. ii. Balance sheet showing accumulated funds of the project balances other assets of the project, and liabilities, if any. iii. Income & Expenditure account for the quarter under audit. iv. Receipt and Payment Account for the quarter under audit. v. Other Schedules to the Balance sheet as appropriate, but which shall include Statement of Fixed Assets in the form of a Schedule, Schedule of Loans and Advances (Age-wise analysis) Schedule of all Cash & Bank Balances (supported by bank reconciliation statements) Program wise statement of expenditure vi. Notes on Accounts showing the accounting policies followed in the preparation of accounts in the State Health Society and District Health Societies and any other significant observation of the auditor. v. Auditor shall have to specify the significant observations, including internal control weaknesses for each program and also specify the institution to which these relates to enable/ facilitate appropriate follow up action. vii. Sanction wise Utilization Certificates (UCs) as per Form 19-A of GFR 2005; duly tallied with the Income & Expenditure and expenditure on Fixed Asset during the financial year (which have been shown as capitalized) [Attach a statement showing the details of expenditures clubbed in the Utilization Certificate tallying with the Income & Expenditure Account and Schedules forming part of it]. A separate utilization certificate for state share contribution has to be issued. Give comments and observations on the accounting records, systems and internal controls that were examined during the course of the audit; 7

8 Identify specific deficiencies and area of weakness in the system and internal controls and make recommendations for their improvement; Report on the level of compliance with the financial internal control. Report procurements which has not been carried out as per the procurement manual/ guidelines of the state for the individual programmes such as; RCH-II, RNTCP, IDSP etc. Communicate matters that have come to the attention during the audit which might have significant impact on the implementation of the project; and Bring to Society s attention any other matter that the auditor considers pertinent. The observations in the management letter must be accompanied by the implications, suggested recommendations from the auditors and management comments/ response on the Observations/ recommendations have to be obtained and reported along with the Audit report. 13. Additional Instructions to Auditors a. Audit Report of the State Health Society (SHS)/ District Health Society shall include audit of all the transactions at the State level / the District Health Societies (DHSs). b. Audit for the financial year will include all the components under NHM. c. The auditor will specifically mention in the audit report about the coverage of audit (SHOULD MENTION THAT AUDIT OF THE DISTRICT / STATE HAS BEEN COMPLETED BY HIM) on these components and also will ensure that the releases and expenditures are duly separately reflected in each program financial statements. d. The auditor appointed shall be required to issue separate Audit Report for each Programme. (covering all the programmes like RCH, NHM, Routine Immunisation, Pulse Polio, RNTCP, NVBDCP, IDSP etc.). It is also required to issue will issue one Consolidated Report and six individual report also for programmes other than RCH, NHM, Routine Immunisation and Pulse Polio i.e. RNTCP, NVBDCP, IDSP, NIDDCP, Blindness Control and Leprosy Control Programmes. All state/district level report shall have to be issued in four sets. e. Financial Statements and relevant schedules shall be prepared in accordance with the format provided by Ministry of Health and Family Welfare, GoI (APPENDIX-A - FORMAT of FINANCIAL STATEMENTS). However, specific programme requirements (in accordance with the agreement with the GoI and Development Partners) may also be incorporated in the separate schedule of the programme. 8

9 f. Auditor shall certify the Utilization Certificates in the prescribed format (Form 19A of GFR, 2005) of GOI. The Utilisation Certificate shall be furnished sanction wise and Utilisation Certificate shall be issued for each sanction issued during the respective financial year. g. The auditor shall also append the Checklist (APPENDIX-B - CHECKLIST FOR AUDITOR) & Quarterly Executive Summary Report. h. Audit Opinion as per the Model Format provided at APPENDIX C. Technical & Financial Proposal will consist: i. Letter of Transmittal ii. Details of the Firm along with Details of Partners (Format T-1) iii. Financial Bid (Format F-1) iv. Composition of Teams ( Format T-2) 9

10 Letter of Transmittal To, The Mission Director, State Health Society, Name & Address of State OR The Chief Medical Officer ,Medical Health & Family Welfare (name of the District ) Uttarakhand. ( name of the District) Dear Sir, We, the undersigned, offer to provide the audit services for [Name of State /District Health Society] in accordance with your Request for Proposal dated [Insert Date]. We are hereby submitting our Proposal, having details about the firm and proposed audit fees. We hereby declare that all the information and statements made in this Proposal are true and accept that any misinterpretation contained in it may lead to our disqualification. The Fees quoted by us is valid till six months from the date of submission of the proposal. We confirm that this proposal will remain binding upon us and may be accepted by you at any time before the expiry date. Prices have been arrived independently without consultation, communication, agreement or understanding (for the purpose of restricting competition) with any competitor. We agree to bear all costs incurred by us in connection with the preparation and submission of the proposal and to bear any further pre-contract costs. We understand that State / District Health Society [Insert Name of the State/District] is not bound to accept the lowest or any proposal or to give any reason for award, or for the rejection of any proposal. I confirm that I have authority of [Insert Name of the C.A. Firm] to submit the proposal and to negotiate on its behalf. Yours faithfully 10

11 Section III Audit in the traditional sense particularly in Government sector means either quarterly concurrent audit by CAG for annual audit by chartered accountant engaged to fulfill a mandatory provision to claim grants from State Central Government. Such one time audit has its own advantages and disadvantages. Among the disadvantages, the main ones are: 1. It does not reveal the status of financial affairs of the system on a continuous basis, as a result of which the shortcomings that are observed or objections pointed out, did not get attended when it should be. 2. In large organizations particularly in states, volume of transactions in the state is so large and producers so complex that the continuous systematic corrections can not be applied by one time audit observations. 3. Bureaucracy is so much overburdened with such a large volume of routine work that the CAG or the other auditor s observations were not attended with such a high priority which it deserves. As a result of this we have audit objection pending for decades and dealt with in a very casual manner. The other problems and bottlenecks in the financial system due to which the introduction of audit of District Health Society on a Quarterlybasis was felt werea) Non submission/ late submission of SoEs by the districts to the State and by the State to GoI resulting in delayed releases. b) Weak Fund Tracking System in districts. c) Long outstanding Advances pending for settlement. d) Advances given to different agencies were being recorded as expenses. e) Errors in reports submitted by the districts. The post one decade has seen a massive jump in flow of funds to districts. It has been observed that the district set up has not been able to manage these funds in a systematic manner as required. The system of QuarterlyConcurrent Audit was introduced to address some of these major challenges in the financial management about 2 years ago in Health Department. This being a problem across all districts and blocks a systematic approach was adopted. Some of the important stages had been the following:- A) Identification of Problem: - It is very essential for senior persons at decision making level to realize and identify the problem that effect better financial management. B) Appointment of Auditors: - Health Department deals with funds under NRHM. The volume of funds is growing at a rapid pace. The team of personal at district levels not being adequately empowered it is necessary to engage expert Chartered Accountants to guide in process of better financial management. These auditors were expected to carry out Quarterlyaudit of respective societies in all districts and offices relating to Health & Family Welfare Department. These were in addition to the Quarterly concurrent Auditors who carry out audit work on an annual basis. 11

12 CONCURRENT AUDIT Concurrent audit is a systematic examination of financial transactions on a regular basis to ensure accuracy, authenticity, compliance with procedures and guidelines. The emphasis under concurrent audit is not on test checking but on substantial checking of transactions. It is an ongoing appraisal of the financial health of an entity to determine whether the financial management arrangements (including internal control mechanisms) are effectively working and identify areas of improvement to enhance efficiency. Independent Chartered Accountant firms are needed to be appointed at State & District Level to undertake periodical audits and report on vital parameters which would depict the true picture of financial and accounting health of the program. Separate Auditors will be appointed for State and respective Districts. Therefore, separate proposals have to be submitted by bidding CA firms for State Level Concurrent Audit and for each of 13 Districts to respective District / State unit. Objective The key objectives of the Concurrent Audit include: To ensure voucher/ evidence based payments to improve transparency To ensure accuracy and timeless in maintenance of books of accounts To ensure timeliness and accuracy of periodical financial statements To improve accuracy and timeliness of financial reporting especially at sub-district levels To ensure compliance with laid down systems, procedures and policies To regularly track, follow up and settle advances on a priority basis To assess & improve overall internal control systems Scope of Audit The responsibilities of the concurrent auditors should reporting on the adequacy on internal controls, the accuracy and propriety of transactions, the extent to which assets are accounted for and safeguarded, and the level of compliances with financial norms and procedures of the operational guidelines. The concurrent audit should be carried out both at State as well as District level. The scope of work of State Concurrent Auditor is as follows: Audit of the SHS accounts and expenditure incurred by SHS Verification of Quarterly FMRs with books of Accounts 12

13 Audit of Advances at the SHS level Audit of the Provisional Utilization Certificates sent to GoI Monitoring timely submission of the District concurrent audit reports Detailed analysis and compilation of the District concurrent audit reports Vetting of the State Action Taken Reports and providing observations thereon Follow-up & monitoring over the ATRs prepared by districts on the observations made in the audit Preparation of Financial Statements & Quarterly Executive summary to be sent to GoI in the prescribed format Any other evaluation work, as desired by the State Audit Committee The scope of the work of District Concurrent Auditor is as follows: Review of the DHS Accounts and expenditure incurred by the DHS Audit of Accounts of Statements of DHS Preparation of Financial Statements as per prescribed formats. Certification of the Statement of Expenditure Review and analysis of the Age wise and Party wise Advances Report Comparison between financial and physical performance and analysis Visits to sample blocks (in a way to cover all blocks in a year) and peripheral units Filling in the checklist provided Vetting of the district ATRs and providing observations thereon Any other evaluation work, as desired by the District Audit Committee Frequency Concurrent Audit will be carried out on a quarterly basis. Coverage The state Concurrent Auditor should ensure coverage of all the district and the District Concurrent Auditor should ensure that all the blocks are covered over the entire year. 13

14 For district containing upto 12 blocks, it needs to be ensured that atleast 25% of blocks are covered every quarter, so as to cover all block in one year. For districts consisting of more than 12 blocks, it needs to be ensured that every block is covered atleast once during the year. The audit plan should include a visit to atleast 50% PHCs/ CHCs, 3 sub-centres and 3 VHNSCs located within the block selected for visit. The states may decide to increase the scope for the same. The audit has to include accounts maintained under RKS and NDCP (wherever applicable) Contents of Audit Report Concurrent Audit Report of a State Health Society should contain the following financial statements and documents. Duly filled in Checklist provided in the guidelines Financial statements as per the GoI prescribed Format (see attached Appendix) Audited Trail Balance Audited Receipts & Payments A/c Income & Expenditure A/c Balance Sheet Audited SoE Bank Reconciliation Statement List of outstanding advances Observations and Recommendations of Auditor particularly covering the following aspects: Deficiencies noticed in internal control Suggestions to improve the internal control Extent of non-compliance with Guidelines issued by GOI Action Taken by State Health Society on the previous audit observations, along with his observations on the same 14

15 Concurrent Audit Report of a District Health Society should contain the following financial statements and documents: Duly filled in Checklist provided in the guidelines (Appendix IIA, IIB) Financial statements as prescribed by GoI (Appendix V) Audited Trail Balance Audited Receipts & Payments A/c Audited Income & Expenditure A/c Balance Sheet Audited Statement of Expenditure Bank Reconciliation Statement List of advances Observations and Recommendations of the auditor (including observations on blocks visited) Action Taken by District Health Society on the previous audit observations, along with his observations on the same Notes: 1. Soft copy of the district audit report needs to be submitted to Director (finance) at the state level. 2. The Director (Finance) at the Centre may call for the concurrent audit report of any district/ level. 3. The reports at both the state and district level will include consolidated report of RCH, Additionalities under NRHM, Immunization and all NDCPs (ie.rntcp, NLEP,IDSP,NBCP,NVBDCP, NPPCD, NPCDCS etc). In addition, it should also include instances of misappropriation/ unauthorized diversion of funds as noticed during the audit. Activity Carrying out concurrent audit Submission of Audit Report by auditor to DHS/SHS Timeline Quarterly 10 th of the first month of every quarter 15

16 Submission of soft copy of district audit 10 th of the first month of every quarter report to the Director (Finance) at state level Submission of District Concurrent audit 15 th of the first month of next quarter. reports to the SHS Submission of soft copy of the consolidated Quarterly - by 20 th of the first month of the executive summary & Action Taken Report next quarter to the Mission Director, MOHFW Submission of the executive summary report Quarterly - by 25 th of the first month of the by the SHS to centre next quarter Section IV. General Guidelines: Proposals should be should be submitted in sealed envelop super scribed Proposals for Quarterly Concurrent Audit of (insert name of State or District ) for the FY i) Proposals should be submitted in prescribed enclosed T-1, T-2 & F-1 format with technical bids and financial bids enveloped and sealed separately and then placed together in one sealed envelop.the original and all copies of the Technical Proposal shall be placed in a sealed envelope clearly marked TECHNICAL PROPOSAL Similarly, the original Financial Proposal shall be placed in a separate sealed envelope clearly marked FINANCIAL PROPOSAL followed by the name of the assignment, and with a warning DO NOT OPEN WITH THE TECHNICAL PROPOSAL. The envelopes containing the Technical and Financial Proposals shall be placed into an outer envelope and sealed. This outer envelope shall bear the submission address, reference number and title of the Assignment, and be clearly marked DO NOT OPEN, EXCEPT IN PRESENCE OF THE OFFICIAL APPOINTED. The Society shall not be responsible for misplacement, loss or premature opening if the outer envelope is not sealed and/or marked as stipulated. This circumstance may provide a case for Proposal s/ bid s rejection. If the Financial Proposal is not submitted in a separate sealed envelope duly marked as indicated above, this shall constitute grounds for declaring the Proposal non-responsive/ invalid. ii) Proposals for Quarterly Concurrent Audit of only State Health Society should be submitted to State Health Society office while proposals for Quarterly Concurrent Audit of District Health Society should be submitted to respective District office of Chief Medical Officer where the proposal will be evaluated. iii) Single Proposal: A firm should submit only one proposal for one unit. If a firm submits or participates in more than one proposal for one unit, all such proposals shall be disqualified iv) All agencies must comply with the Technical Specification, General Conditions and Format/Requirements for Technical and Financial proposal v) Financial proposals submitted by the firm should be valid for 6 months from the date of submission of the proposal by the firm vi) Each page, Form, Annexure and Appendices of the Technical and Financial Proposal must be signed by the Authorised signatory of the firm vii) Firms submitting the proposals should meet the below given eligibility criteria a) firm should be empanelled with C&AG for the year / , b) firm should have existence of atleast five years as per ICAI certificate (as on ), c) firm should have atleast one FCA associated with it as full time partner for last 3 years,

17 d) firm should have average turnover of minimum Rs Lacs of last three years, e)firm should have head office / branch office in Uttarakhand as per ICAI certificate, f) firm should have conducted atleast 02 Statutory audit/ concurrent audit assignments in last three years (excluding charitable organisations/ NGOs), g) firm should have conducted atleast 02 commercial sector Audit assignment of firms having annual turnover of Rs Crores in last three years (excluding bank branch audit) viii) Proposals of firms not fulfilling the above given eligibility criteria or found incomplete in any respect will not be accepted. ix) Firms meeting the given eligibility criteria will qualify technical evaluation. Financial bids of only those firms who meets given eligibility criteria will be opened. The lowest i.e L-1 Bidder in financial bids will be awarded the contract under two bid system. x) State Health Society /District Health Society Uttarakhand reserves the right to accept or reject any or all proposals or change selection criteria without assigning any reasons. No appeal whatsoever will be entertained by State Health Society /DHS in this regard. Decision of State Health Society /DHS would be final & binding to all. xi) ToR/Guidelines for Quarterly Concurrent Audit can be downloaded from website from 09 th July 2014 to 22 nd July 2014 upto 5.00 pm(proposals for State Health Society should be submitted to State Health Office & Proposals for 10 District Health Society Audit should be submitted to respective District Health Societies Offices Separately as per RFP). xii) Last Date for submitting proposals to State Health Society /District health Society is 23 rd July2014 upto 2.00 pm. xiii) Date of Opening of Bids of State Level Audit 23 rd July 2014 at 3.00 pm in O/o Mission Director NHM, Dte. Of MH&FW, Near Rajiv Gandhi Krida Sthal,Danda Lakhaund,PostGujrada, Sahastradhara Road,Dehradun (Uttarakhand). Phone No: xiv) Date of Opening of Bids of District Level Audit - 23 rd July 2014 at pm at the office of Chief Medical Officer of respective District. SL.No. Name of the Address District 01 Haridwar Chief Medical Officer-Haridwar, District Haridwar,Uttarakhand 02 Tehri Chief Medical Officer-Tehri,District Tehri,Uttarakhand. 03 Pauri Chief Medical Officer-Pauri, District Pauri,Uttarakhand 04 Chamoli Chief Medical Officer-Chamoli,District Chamoli,Uttarakhand. 05 Uttarkashi Chief Medical Officer-Uttarkashi,District Uttarkashi,Uttarakhand 06 Bageshwer Chief Medical Officer-Bageshwer,District Bageshwer,Uttarakhand 07 Champawat Chief Medical Officer-Champawat,District Champawat,Uttarakhand 08 Pithoragarh Chief Medical Officer-Pithoragarh,District Pithoragarh,Uttarakhand 09 Nainital Chief Medical Officer-Nainital,District Nainital,Uttarakhand. 10 U.S.Nagar Chief Medical Officer-U.S.Nagar,District U.S.Nagar, Uttarakhand.

18 xv) Financial Bids of only firms meeting minimum eligibility criteria will only be opened. Technically qualified firms will be informed for opening of financial bids. Canvassing in any form will be a disqualification. xvi) There is no bar on the auditor for applying for the audit of a different district in the same state, provided it does not exceed the limit of 30% of all the districts in the state, or 8 districts, whichever is lower. xvii) The proposals for State level Audit of State Health Society should be submitted to - Mission Director NHM, Room no. 22,,Dte. Of MH&FW, Near Rajiv Gandhi Krida Sthal,Danda Lakhaund, Post Gujrada, Sahastradhara Road,Dehradun (Uttarakhand). Phone No: xviii) The proposals for District Health Society Audit should be submitted to - Office of Chief Medical Officer of respective District. xix) The technical bids should be submitted only as per enclosed T-1 & T-2 FORMAT while the financial bids should be submitted only as per enclosed F-1 FORMAT. xx) In case the bidding firm is found not suitable for audit on any reasonable ground like information by the Ministry/ ICAI/ any State/District etc. State may reject such proposal without giving any reason. Few Important points things to remember Audit Reports should be submitted on a quarterly basis. Sometimes, states/ districts tend to submit audit reports together for few months (e.g. submission of 2 reports at the end of the quarter even if quarterly audit is being carried out). This practice should be strongly discouraged. In case of districts/ blocks visited during the audit, the audit report should contain a separate checklist for each unit covered and respective observations should also be included. The audit report should also cover qualitative issues emerging from the audit other than the financial statements. Checklist should be thoroughly filled and each as aspect should be adequately elaborated. Observations reported on accounting and internal control issues should be properly detailed and substantiated. Financial statement of NDCPs i.e RNTCP, NLEP,IDSP,NBCP,NVBDCP, NPPCD, NPCDCS Programmes etc should be included in the consolidated audit report and audited

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20 FORMAT FOR SUBMISSION OF TECHNICAL BID Format -T-1 Expression of Interest for hiring of Chartered Accountant Firm for the Concurrent Audit of the accounts of State Health Society or District Health Societies on Quarterly basis Status of Firm Partnership Sole Proprietorship 1. (a) Name of the firm (in capital letters) (b) Address of the Head Office (Please also give telephone no. & address) Address of the Head Office / Branch Office in Uttarakhand (c) C&AG Empanelment No 2. ICAI Registration No. Region Name Region Code S.No Criteria Nos. 1 Whether firm empanelled Yes / No Enclose C&AG with C&AG for the FY empanelment / certificate. 2 Head office/branch Office Yes/No As per ICAI in Uttarakhand certificate 3 Does firm has existence of Yes /No Enclose ICAI atleast five years as per certificate as on ICAI certificate Total Average Annual Enclose Audited turnover of the firm in last balance Sheet / three years (Rs Lacs certificate from CA for last three years). firm 5 No. of partners FCA Name of Partners Enclose ICAI ( as per ICAI Certificate as certificate as on on ). Firm should have minimum one FCA as full time partners associated with it for last three years. 6 Years of partners Partner wise details As per ICAI (FCA/ACA/ association certificate as on with the firm Partner A + Partner B + Partner C + Partner D +

21 19.(Total of all) 7 Nature of Experience (giving Turnover/Project Cost/Years of experience of the entities/projects audited) i. No. of Statutory / Concurrent Name of Organisation, Enclose Audit assignments in Social turnover & year of audit Appointment Letter Sector Projects / External of Audited Aided Projects Charitable (excluding Organisation organization/ngos) in the last three years.. ii. No. of Corporate Name of Organisation, Enclose /commercial sector annual / turnover & year of audit Appointment Letter concurrent audit assignments of Audited of firms having turnover of more than 05 Crores Organisation (excluding Bank Branch Audit) in the last three years. Note:. 1- CA firms shall provide their latest Certificate of Firm Constitution as on 1 st January of the current year issued by ICAI in support of 1,2,6 above, ICAI certificate/ other documentary evidence in support of 3 and appointment letters from audited organisations in support of 4(i.,ii) 2- CA firms should provide Audited balance Sheets / certificate from CA firm in support of pt All documents submitted should be duly self attested. Supporting Documents for Eligibility Criteria : Following supporting documents must be submitted by the firm along with the technical proposal: 1. C& AG Empanelment Certificate for the FY / Firm must submit an attested copy of Certificate of ICAI as on in support of establishment of CA firm, no. of partners and Head Office in Uttarakhand 3. Firm should submit Audited Balance Sheet for last three years or certificate from CA Firm certifying average annual turnover for last three years. 4. In support of Statutory / Concurrent Audit assignments in Social Sector Projects / External Aided Projects Corporate and Commercial sector annual / concurrent audit assignments of firms having turnover of more than 05 Crores, firm must enclose Appointment Letter of Audited Organisation. Important -The Firm or any of its Partners should not have been blacklisted by any organization. Firm shall provide an self attested affidavit on Rs. 100 Stamp Paper in this regard. 20

22 Undertaking I/we do hereby declare that the above mentioned information are true & correct and I/ We also undertake to abide the terms & condition of the contract and would make compliance of terms laiddown in the contract if executed by us with the State Health Society / District Health Society Date: Place: Signature of Authorised Signatory of the Firm along with seal of firm. 21

23 Format F-1 FORMAT FOR FINANCIAL BID for Quarterly Concurrent Audit for the FY Bid submitted for ( Insert Name of State or District for which bid is submitted) Item or Activity Total Amount per Quarter (in Rupees) AUDIT FEE (inclusive of TA/DA, Service Tax and cess on Service tax) Note: Percentage of funds involved shall not be a basis of quoting the Audit Fee. Both in numeric and in words per quarter Rs. /- (Rupees ). Date: Place: Signature of Authorized Signatory of the firm along with seal. 22

24 Format - T-2 Composition of Teams Teams Particualars Name Qualification Name of Team Leader Name of Inter CA Name of Support Staff Name of Support Staff 23