Integrated Livelihood Support Project (ILSP)

Transcription

1 Integrated Livelihood Support Project (ILSP) Uttarakhand Gramya Vikas Samiti (UGVS) 216, Pandit Wari _II, Dehradun, , Ph: Letter No: 575 / Date : 15 /07/2014 Request for Proposals from Chartered Accountants (CA) Firms for Annual Audit for the financial year Central Project Coordination Unit (CPCU-ILSP), Uttarakhand Gramya Vikas Samiti (UGVS), Uttarakhand Parvatiya Aajeevika Sanvardhan Company(UPASaC), and Uttarakhand Jalagam Vikas Ekai (UJVE) of Watershed Management Directorate, Uttarakhand, implementing agencies of Integrated Livelihood Support Project (ILSP) funded by Government of Uttarakhand and IFAD, invites Request for Proposal (RFP from Chartered Accountants Firms (a) empanelled with C&AG of India; (b) having at least 3 or more full time partners who are fellow members of the ICAI for a period of not less than 3 years; (c) having at least 10 audit staff with Head office/branch in Uttarakhand; (d) having average annual turnover of Rs. 30 Lakh p.a. for past 3 years and; (e) having experience of statutory/annual audits and Internal Audits of corporate entities (including Govt. Bodies, PSUs) and experience of at least 3 audit of externally aided projects in past 5 years for appointment as Annual Auditors to conduct the Annual Audit of the Society and Company s accounts and Project Accounts for the year For details regarding requirements of the assignment, TOR, Technical and Financial Proposal format etc, please visit The application (Technical proposal and Financial proposal in separate sealed covers put in one cover) may please be sent to reach UGVS Office (216, Pandit Wari-II, Dehradun ) in hard copy on or before 30 th July 2014 (till 02.00PM) by hand/speed post/courier. Sd/- Project Director,UGVS & Managing Director, UPASaC Chief Project Director, CPCU

2 Integrated Livelihood Support Project (ILSP) Uttarakhand Gramya Vikas Samiti (UGVS) 216, Pandit Wari-II, Dehradun Ph: Terms and Conditions for Appointment as Auditors for Annual audit The following are the terms and conditions for selection of Chartered Accountants Firm for Annual Audit of CPCU, UPASaC, UJVE, its divisional offices, & UGVS,PMU and its Divisional Management Units(for test check as per the norms prescribed by the ICAI) for the Financial Year and thereafter as required for next one year. Eligibility Criteria: (a) CA Firm should be empanelled with C&AG of India (b) having at least 3 or more full time partners who are fellow members of the ICAI for a period of not less than 3 years (c) having at least 10 audit staff with Head office/branch in Uttarakhand (d) having an average annual turnover of Rs. 30 Lakhs p.a. for past 3 years and (e) having experience of statutory/annual audits and Internal Audits of corporate entities (including Govt. Bodies, PSUs) and experience of at least 3 audit of externally aided projects in past 5 years. Dear Sir, You are hereby requested to submit technical proposal and financial proposal separately to provide services as External Auditor, to conduct the External audit of project Accounts, checking & certifying the accounts for the year and prepare the annual accounts /financial statements towards fulfilling Societies Act/Company Act requirements. Requisite format as prescribed by AG Uttarakhand & IFAD. The Technical and Financial proposals should be prepared in English and submitted in separate sealed covers clearly marked Technical Proposal as Envelope-I and Financial Proposal as Envelope-II which should be put together in one separate sealed Envelope-III marked Proposals for the Annual Audit of Integrated Livelihood Support Project. The technical and financial proposals are to remain valid for 60 days. The evaluation will be done on Quality & Cost based selection method with 80% and 20% weightage respectively. Date of submission of proposals and evaluation: The important dates for submission and evaluation of proposals are as under: Particular Venue Date Last date of receiving of Bid Uttarakhand Gramya Vikas 30th July 2014 till 2:PM Samiti, 216 Panditwar-II, Dehradun Date of opening of technical Uttarakhand Gramya Vikas 30th July 2014 at 3:PM Bid Samiti, 216 Panditwar-II, Dehradun Date of opening of financial Uttarakhand Gramya Vikas Bid Samiti, 216 Panditwar-II, 2 nd Aug 2014 at 12:00 Noon Dehradun

3 A. Technical Proposal: The Firms are expected to work closely with the UGVS Project Management Unit. The Technical Proposal (in the attached suggested format) should contain the following information: i. A brief note on background of Chartered Accountant Firm ii. Partners detail as on iii. Details of Head office or /and branches in Uttarakhand iv. Audit experience in annual/internal audit of corporate entities/projects v. Audit assignment in social sector in Uttarakhand. vi. Audit of externally aided projects vii. Details of staff. B. Evaluation of the Technical Proposal: ( To be submitted in Annexure 4) The technical proposals received will be evaluated only for those Firms who submit the proposals complete in all respect and in time. The technical proposals will be evaluated using the following criteria: (a) Criteria No. 1: Year of Experience/existence of firm-10 points (b) Criteria No. 2: Experience in Statutory/annual audit in Govt Bodies / PSUs / corporate entities (other than externally aided projects) in the last 5 years 15 points (c) Criteria No. 3: Experience in Internal audit in Govt Bodies, PSUs/related to Not for Profit sector, corporate entities (other than externally aided projects) in the last 5 years 15 points (d) Criteria No. 4: Audits of externally aided projects in the last 5 years -15 points (e) Criteria No. 5: Local Presence in Uttarakhand-10 points (f) Criteria No. 6: Staff strength (Senior and Junior auditors) - 15 points The minimum qualifying points are 60% for evaluation of technical proposal. Only top 3 CA Firms will be short listed out of those scoring 60% points for opening of financial bids. In case sufficient Firms are not available the minimum qualifying score can be lowered by the Evaluation Committee to get three minimum qualified proposals. C. Financial Proposal (To be submitted in Annexure 5 in separate envelope marked as Envelope II) The Financial Proposal should cover all expenses including Boarding and lodging, travelling expenses, consolidation of reports excluding service tax. The service tax will be additionally payable as per law. The financial proposal should cover the fee for divisional units and head office unit separately. The audit team will have 3 member consisting at least one FCA / ACA, one Senior Staff (at least C.A. Inter or above) and one Junior Staff. The expected audit days are 2 days ( 6 person days) for divisional units and 2 days (6 person days) for Head Office. 3 days will additionally provided for consolidation and preparation of financial statement and reports. As per the need of the assignment the actual days can vary and may be on higher side for completion of the assignment, for which no extra payments shall be made. The CA firm will have to depute their staff in parallel for completing the assignment in 20 days from the date of award assignment.

4 The financial proposal should be submitted keeping in mind the rates recommended by ICAI / market rates as prevailing the market presently so as to give a quality report and not just to get the audit assignment. D Payments 50% payment will be made after submission of the draft reports of the Annual Audit. The balance payment will be made after submission of final Reports to the satisfaction of the client. All payments will be made after deduction of Tax Deducted at the Sources (TDS) as per Income Tax Act. E Kindly note that Project Directors/MD/ CPD are not bound to select any of the Chartered Accountant Firms submitting the proposals and reserves the right of rejection of all proposals without assigning any reason. F. The provisions of IFAD General Conditions on Agricultural Development Financing require that the Firms, bidders, suppliers, contractors, sub-contractors and consultants (i) allow full inspection by IFAD of all bid documentation and related records; (ii) maintain all documents and records related to the bid or contract for three years after completion of the bid or contract; and (iii) cooperate with agents or representatives of IFAD carrying out an audit or investigation. G. The detailed terms of reference for the assignment, (Annex 1), Information about the project (Annex 2), IFAD Project Audit Guidelines (Annex 3), the format of Technical Proposal (Annex 4), format of Financial Proposal (Annex 5), Technical Proposal evaluation form (Annex 6) are attached. The selected Firm should be ready to commence the work immediately on being awarded the work and complete it within the stipulated time frame. J. For any queries if any on the RFP document and attached ToR interested CA firm may contact Manager - HR Phone No , Yours sincerely, Sd/ Project Director, UGVS & Managing Director, UPASaC #216, Panditwari- Phase II, Dehradun. info@ugvs.org Web site:

5 ANNEXURE 1 Terms of reference for annual audit of the IFAD funded Integrated Livelihood Support Project ( Uttarakhand Gramya Vikas Samiti, Uttarakhand Parvatiya Aajeevika Sanvardhan Company, Uttarakhand Jalagam Vikas Ekai ( UJVE) and Central Project Coordination Unit- CPCU) The following are the terms of reference (TORs) on the basis of which Uttarakhand Gramya Vikas Samiti(UGVS), Uttarakhand Parvatiya Aajeevika Sanvardhan Company(UPASaC) and Uttarakhand Jalagam Vikas Ekai(UJVE), CPCU (implementing agencies of Integrated Livelihood Support Project (ISLP) hereinafter referred to as lead project agency(lpa) agrees to engage the audit firm ( the auditor ) to perform an audit and to report in connection with the agreement with the International Fund for Agricultural Development (IFAD) concerning Integrated Livelihood Support Project IFAD Loan 856-IN. 1.1 Responsibilities of the parties to the engagement The LPA refers to the entity that executes the project on behalf of the borrower/recipient and that has signed the agreement with IFAD. The LPA is responsible for providing financial statements for the activities financed by the financing agreement and for ensuring that these financial statements can be properly reconciled to the LPA records and accounts in respect of these services. The LPA accepts that the ability of the auditor to perform the procedures required by this engagement effectively depends on the LPA s providing full and free access to its staff and records and accounts. The LPA shall provide the auditor with all necessary documentation to perform the assignment properly; in particular, the following information shall be provided to the auditor before the beginning of the assignment: Financing agreement; Annual progress report; Project implementation manual; Financial management manual; Organizational charts along with names and titles of senior managers; Names and qualifications of officers responsible for financial management, accounting and internal audit; Description of information technology facilities and computer systems in use; and Copies of the minutes of negotiations, the project design document, the annual work programme and budget, and the Letter to the Borrower, if available. The auditor refers to the auditor who is responsible for performing the agreed procedures as specified in these TORs, and for submitting a report of factual findings to the LPA. The auditor shall provide: A separate opinion on the project financial statements (PFSs). Minimum content of the PFSs to be provided by the project: Yearly and cumulative statements of sources and application of funds, which should disclose separately IFAD s funds, other donors funds and beneficiaries funds; Yearly and cumulative SOEs by withdrawal application and category of expenditures; Reconciliation between the amounts shown as received by the project and those shown as being disbursed by IFAD should be attached as an annex to the PFSs. As part of that reconciliation, the auditor will indicate the procedure used for disbursement (SA funds, letters of credit, special commitments, reimbursement or direct payment) and indicate whether the expenditure is fully documented or uses the summary of expenditures format; Cumulative status of funds by category; A statement of comparison between actual expenditures and budget estimates; Notes accompanying the PFSs; fixed assets; Full disclosure of cash balances; and

6 Other statements or disclosures relevant to the project, e.g. financial monitoring reports, credit lines, etc. A separate opinion on withdrawal applications/statements of expenditure/ summary of expenditures (SOEs). The audit will include a review of SOEs used as the basis for submitting withdrawal applications. The auditor will carry out tests and reviews as necessary and relevant to the circumstances. SOE expenditures will be carefully compared for eligibility with relevant financial agreements and the disbursement letter, with reference to the project design report for guidance when necessary. Where ineligible expenditures are identified as having been included in withdrawal applications and reimbursed, auditors will note these separately. A schedule listing individual SOEs withdrawal applications by reference number and amount should be attached to the PFSs. The total withdrawals under the SOE procedure should be part of the overall reconciliation of IFAD disbursements described above. The auditor s opinion should deal with the adequacy of the procedures used by the project for preparing SOEs and should include a statement that amounts withdrawn from the project account on the basis of such SOEs were used for the purposes intended under the agreement. A separate management letter addressing the adequacy of the accounting and internal control systems of the programme, including compliance with the IFAD Procurement Guidelines and such other matters as IFAD may notify the LPA to include in the audit. The auditor is requested to comment on: Economy, efficiency and effectiveness in the use of project resources; Achievement of planned project results; Legal and financial obligations and commitments of the project and the extent ofcompliance or non-compliance thereof; Systems and procedures such as improvements in accounting, information technology or computer systems, and operations that may be under development, on which the auditor s comments are necessary to ensure effective controls; and Other activities on which the auditor may consider it appropriate to report. Auditors shall certify: Whether the PFSs are drawn up in conformity with internationally accepted accounting standards; Whether the PFSs are accurate and are drawn up from the books of accounts maintained by the project; Whether the provisions of the financing agreement are adhered to; Whether procurement has been undertaken by the project in accordance with applicable procurement procedures and the IFAD Procurement Guidelines; The existence of any significant assets purchased and confirm their existence and use for project purposes; Whether the project has an effective system of financial supervision or internal audit at all levels; and Whether the expenditures claimed through SOEs are properly approved, classified and supported by adequate documentation. The auditor is a member of the Institute of Registered Auditors of India, which in turn is a member of the International Federation of Accountants (IFAC). In the case of supreme audit institutions, these should be members of the International Organization of Supreme Audit Institutions (INTOSAI). DEL INES ON PROJECT AUDITS 1.2 Subject of the engagement The subjects of this engagement are the financial statements dated in connection with the agreement for the period covering to The information, both financial and nonfinancial, that is subject to verification by the auditor is all information that makes it possible to verify that the expenditures claimed by the LPA in financial statements have occurred, and are accurate and eligible. Annex 1to these TORs contains an overview of key information about the agreement and the services concerned.

7 1.3 Reason for the engagement The LPA is required to submit to IFAD an audit report produced by an external auditor under article IX of the General Conditions for Agricultural Development Financing. 1.4 Engagement type and objective This constitutes an engagement to perform specific agreed procedures following the IFAD Guidelines on Project Audits provided to the auditors by the LPA in annex 3. The objective of this audit is for the auditor: i. To verify that the expenditures claimed by the LPA in the financial statements for the activities covered by the agreement have occurred ( reality ), are accurate( exact ) and are eligible (i.e. that expenditure has been incurred in accordance with the terms and conditions of the agreement); and ii. To submit a report of factual findings with regard to the agreed procedures performed. 1.5 Scope of work The auditor shall undertake this engagement in accordance with these TORs and with: International Standards on Auditing (ISAs) to perform agreed procedures regarding financial information as promulgated by IFAD; The Code of Ethics for Professional Accountants issued by IFAD. Although the International Standard on Related Services 4400 provides that independence is not a requirement for agreed procedures engagement, IFAD requires that the auditor also complies with the independence requirements of the Code of Ethics for Professional Accountants. IFAD Guidelines on Project Audits Specific coverage of audit The auditor will have to: i. check whether the funds received from IFAD have been used in accordance with the conditions stipulated in the IFAD Loan agreement with due attention to economy and efficiency and solely for the purpose for which the financing was provided. ii. verify whether the share of Government of Uttarakhand (counterpart funds) have been released and utilized in accordance with the rules and regulations with due attention to economy and efficiency and solely for the purpose for which they were provided. iii. confirm whether the goods, consultancy and other services, and civil works financed out of project funds have been procured in accordance with stipulations in the IFAD loan agreement. iv. ensure whether all necessary supporting documents, records and accounts have been kept in respect of all projects. v. form an opinion as to the preparation of project accounts in accordance with consistently applied standard accounting practices and give a true and fair view of the financial status of the project at the end of the financial year and the resources and expenditure for the year. vi. verify the fixed asset registry and accuracy of the assets maintained by the Project, including any changes to the fixed assets register, such as deletions or additions and also verify frequency of physical verification of assets. vii. verify and provide clearances as applicable on the status of prior years audit observation and the actions taken by the Project and report on the outstanding observations and actions to be taken. viii. To enable the auditors to express a professional opinion on the financial position and final accounts of the Project for the financial year and of the funds received and expenditure incurred till 31 March ix. Tax Audit under Income tax act 1961 for the F.Y

8 GUIDEL INES ON PROJECT AUDITS Planning, procedures, documentation and evidence The auditor should plan the work so that an effective audit can be performed. For this purpose, the auditor performs the procedures specified in the IFAD Guidelines on Project Audits and uses the evidence obtained from these procedures as the basis for the report of factual findings. The auditor should document matters that are important in providing evidence to support the report of factual findings, and evidence that the work was carried out in accordance with ISAs and these TORs. 1.6 Reporting The report on this audit should describe the purpose and the agreed procedures of the engagement in sufficient detail to enable the LPA and IFAD to understand the nature and extent of the procedures performed by the auditor. Use of financial and audit reporting is governed by IFAD rules. The auditor has to prepare individual audit reports of the implementing agencies (UGVS, UPASAC and WMD Society, CPCU) format prescribed by AG Uttarakhand, including separate Project Financial Statements. The Auditor will also validate the Consolidated Financial Statement of the Project prepared as per IFAD PFS template. The CA firm will have to depute their staff in parallel for completing the assignment in 20 days from the date of award of assignment.. Team of 3 persons i.e. 1 ACA/FCA, 1Sr staff ( At least CA Inter or above) and 1 Jr. Auditor would work at all locations covering all units given in Annexure 5. Annual Audit Report is to be submitted in triplicate (a Soft copy and 2 Hard copies) to Project Director-UGVS, Managing Director-UPASaC & Project CPD-CPCU. Audit report of UJVE will also to be submitted to the Project Director, UJVE. 1.7 Other terms Proposed number of days for annual audit based on audit have been indicated in Annexure 5. The firm / company shall not share the data / information and analysis relating to audit service, obtained during the course of their audit and verification, with any other person or entity. Any information, pertaining to the Central and State government or any other agencies involved in business with the UGVS, UJVE and UPASaC, which comes to the knowledge of the CA firm in connection with this assignment will be deemed to be confidential and the CA firm will be fully responsible for the same to be kept confidential and held in trust, as also for all consequences of is concerned personnel failing to do so. The CA Firm shall ensure secrecy of information and data as same is not intended for public distribution.

9 ANNEXURE-2 Information about the subject of the audit Brief description of the programme, components and implementation arrangements A. Introduction: 1) Background: The Integrated Livelihood Support Project (ILSP) will follow on from, and up-scale, the Uttarakhand Livelihood Improvement Project in the Himalayas (ULIPH) which will be completed at the end of ULIPH has been implemented by Uttarakhand Gramya Vikas Samiti (UGVS), a society within the Rural Development Department, and Uttarakhand Parvthiya Ajeevika Samvardhan Company (UPASAC), a social venture capital company. However, for ILSP, the approach will be significantly changed rather than forming Self-Help Groups (SHG) and provision of micro-finance services, ILSP will focus on supporting producer organisations with technology and access to markets to improve food security and livelihoods. 2) Location: Uttarakhand is a hill state in the north-west of India, covering 54,483 km 2 with a population of about 8.5 million (2001 census). Nine of its 13 districts are classed as hill districts, covering 77% of the area of the state, but with only 44% of the population. Livelihoods are still predominantly rural, but most economic and population growth has also been in the plains, which are becoming industrialised. 3) Poverty: Uttarakhand is one of the poorest states in India. The major driver of rural poverty is the difficult mountain environment. Land holdings are very small (average 0.8 ha) and fragmented into 6 or 7 different locations. Tiny terraced plots on steep hillsides makes mechanisation virtually impossible. Shallow and immature soils require high levels of organic matter, but yields are very low. There is little use of modern varieties, mineral fertilisers and other inputs. Only about 10% of land in hill districts is irrigated. Most households keep cattle or buffalo, but improved crossbreds are relatively scarce, there is minimal investment in feeding and heath care. With 65% of the state covered in forest, damage to crops by wild animals is a major problem. Farmers and others report that the climate in Uttarakhand is changing, with rainfall patterns becoming more erratic. 4) Agriculture is very largely for subsistence, but very few households are able to produce enough food to last for more than three or four months. People rely on non-farm earnings and safety net programmes. With few rural employment opportunities, more and more people are migrating to jobs outside of hill districts. Between one third and one half of households send migrants and, as it is mainly men who migrate, this places more and more of the burden of farm labour, as well as domestic work, on women. Lack of labour, low productivity and wild animal damage are all contributing to land being abandoned, and it is said that as much as 30% of land in the hills that was once used to grow crops is no longer in production. 5) Rationale: the justification for ILSP is the need to stop the deterioration of the productive infrastructure, make farm labour more productive and farming more remunerative, and hence provide incentives for people to invest their time and resources in agriculture. Despite the disadvantages that agriculture faces in the hill areas, Uttarakhand does have the advantage of cooler temperatures at higher altitudes, allowing production of out of season vegetables and temperate fruits. The horticultural sector is less developed than in the other hill states, so there is considerable potential for growth, as there is in other niche products such as spices, medicinal and aromatic plants, and nuts. 6) Another area with growth potential is tourism. However more needs to be done to ensure that local people fully participate in, and benefit from, this sector. The population is well educated, but the level of youth unemployment is relatively high. Better vocational training could help such people find good quality employment in the growth sectors of the country. 7) The overall objective (goal) of ILSP is to reduce poverty in hill districts of Uttarakhand. This would be achieved via the more immediate development objective of enable rural households to take up sustainable livelihood opportunities integrated with the wider economy.

10 8) The strategy behind ILSP will be to adopt a two pronged approach to building livelihoods in hill districts. The first of these is to support and develop the food production systems which remain the main means of support for most households. The second main thrust of the project is to generate cash incomes via the introduction and expansion of cash crops. These would be grown on a significant scale for markets outside of the state. ILSP will also support non-farm livelihoods, especially community involvement in rural tourism, and vocational training. B. Project Components 9) Component 1: Food security and livelihood enhancement implemented by UGVS, will support crop and livestock production for food security, and develop higher value cash crops and other products (such as rural tourism) to provide cash incomes. Crop and livestock production will be developed via support to Producer Groups (PG) and higher level organisations (Livelihood Collectives - LC) formed by a number of PGs. To up-scale enterprises generating cash incomes, and to introduce new income sources. ILSP will also improve access to markets through a value chain approach and the provision of physical infrastructure for market access. The value chain approach involves market/sub-sector studies, introduction of new technologies, market linkage, skill development, product development and promotion, physical infrastructure for market access. These activities will be implemented in five districts. The project will also improve access to employment in the non-farm sector by supporting vocational training linked to job placement with a target of 10,000 training places to be offered. 10) Component 2: Participatory Watershed Development implemented by the Watershed Management Directorate (WMD), will use processes that have been established through a series of watershed development projects in the state, but with an increased focus on food security, livelihoods and market linkages. It will protect and improve the productive potential of the natural resources in selected watersheds, alongside the promotion of sustainable agriculture with formation of PGs and LCs, and with improved access to markets. The component would cover a total of 41 micro-watershed (MWS) covering an area of about 125,000 ha in six clusters in six districts, with a population of 39,600 households. It will complement the ongoing watershed development programme funded by the World Bank and GoI, and takes into account availability of required WMD institutional capacity in the selected project districts. 11) Component 3: Livelihood financing implemented by UPASAC. Despite making significant strides in financial viability, banks have not been able to provide significant numbers of poor households with basic financial services. The activities under this component include: a) Banking support capacity building, expansion of branches of SKGFS, b) Risk management piloting and scaling up of insurance services, c) Financial inclusion initiatives training to LC to be bank agents, product literacy training, d) Provision of development finance via UPASAC including loan and quasi equity funding e) Establishment cost support to UPASAC. 12) Component 4: Project coordination and monitoring: Each executing agency, UGVS, WMD and UPASAC, will have their own project management units headed by a Project Director. To provide overall coordination, the state nodal agency, RDD, will set up a Central Project Coordination Unit (CPCU) within the RDD, headed by a Project Director (PD). C. Implementation and Coordination Arrangements 13) Implementation approach: The investment in ILSP is more than a five-fold increase over the ongoing ULIPH. Given limitations on the capacity of UGVS/UPSAC to up-scale to this extent, funds for ILSP will be divided between UGVS/UPASAC and WMD. WMD would establish a society to implement the project. WMD has an established track record in implementing participatory watershed management projects, and their inclusion will allow the project to be up-scaled, while avoiding the risks involved in relying entirely on UGVS/UPASAC. The dual implementation structure will also generate new lessons in livelihood development using two different approaches to livelihood development.

11 14) Coordination: The Rural Development Department (RDD) will be the nodal agency at the state level with a Central Project Coordination Unit (CPCU) within RDD. A state level Project Steering Committee (PSC) would be chaired by the Chief Secretary, Government of Uttarakhand. The PSC will establish a Project Management Committee (PMC) chaired by the Secretary of RDD 1. 15) Convergence: the National Rural Livelihoods Mission (NRLM) will start operations in 2012 and will be responsible for forming and supporting SHGs. ILSP will provide complementary support for livelihoods for SHG members, many of whom will also join PGs. Producers supported by ILSP will be expected to receive support from other government programmes and from formal financial institutions. ILSP will also implement livelihood enhancement activities in blocks selected for watershed development by the Integrated Watershed Management Programme (IWMP), a centrally sponsored scheme. 16) M&E system will generate management information and provide the government and IFAD with evidence of results and impact against logframe indicators 2 (and also for IFAD s RIMS system). This will involve activity/output, process, outcome and impact monitoring. 17) Financial management will be on the lines of current IFAD funded projects in India. Accounting software will be used to maintain accounting records and generate financial statements in IFAD formats. Periodic inputs from an IFAD Financial Management and Procurement Specialist will provide training and support for project financial staff. 18) Procurement will follow the procurement regulations of GoUK (with some project-specific amendments) to the extent they are consistent with IFAD Procurement Guidelines. Wherever, the national regulations are inconsistent with IFAD Procurement Guidelines, the latter shall prevail. Implementation partners (NGOs and research agencies) may be directly contracted by the project. This will avoid the delays and risks associated with a competitive selection process. 19) Key risks at the objective level include increases in the prices of food relative to wages, natural disasters, and migration out of the hills creating a labour shortage for agriculture. There are also risks to project outcomes including changing weather patterns, competition in external markets for cash crops, an unfavourable policy environment for rural finance. None of the risks have been identified as having a high impact on the achievement of project objectives. D. Project Costs, Financing and Benefits 20) According to the Project Appraisal Report, the project cost is estimated to be USD 259 million. The Project is financed by an IFAD loan of USD 90 million, a contribution of USD 48 million equivalents from the Government of Uttarakhand, USD 11 million equivalents from beneficiaries and the rest as institutional credit from bank. Significant additional funds will flow to members of project groups though convergence with other government programmes. 21) Benefits: The project investment has an overall Economic Internal Rate of Return of 23% and remains viable even if costs increase and/or benefits decrease by 20%. Farm model analysis shows average annual net income of participating households increasing from INR 19,000 to INR 33,000. According to the Appraisal Report, a total of 143,400 households 3 would directly benefit from the project. 22) Sustainability of benefits is based on the following assumptions: (a) The adoption of improved livelihoods will be sustained providing they continue to be profitable for households, and linkages for inputs and outputs are maintained. These linkages should be 1 At the time of the preparation of this Document, the ILSP has been approved by the Cabinet and a GO was to be issued. The PSC and PMC would be constituted only after the GO was issued. 2 According to the minutes of discussions between IFAD and the Stakeholders, each PIA will have independent M&E, Logframe Matrix, MIS etc and would report to IFAD directly. 3 This has been scaled down to 103,775 at the time of the preparation of PIM and in consultation with IFAD

12 sustainable providing they are, in themselves, also financially viable for private sector actors and/or Livelihood Collectives. (b) Physical works such as watershed treatment, irrigation and market infrastructure will need to be maintained by user groups for irrigation, market infrastructure etc. The participation of local government in watershed development will help ensure the sustainability of these works. (c) Capacity building will result in sustained benefits providing this training is relevant and effective E. Fund Flow arrangements The Project will be funded from four sources: IFAD, the Government, financial institutions, and beneficiary contributions. The respective PIA will be responsible for preparing the Annual Work Plan & Budget for the project and submitting this to the Department of Finance of the State through the Department of Rural Development. This AWPB (net of beneficiary and bank contributions) will be included as a line item in the budget or the Department of Rural Development. IFAD s share of the reimbursed to the Government of India and by the Government of India to the Government of Uttarakhand through the conventional national procedures for budgetary support to State Governments. Proceeds of IFAD loan funds will be disbursed using one of the following four methods: (i) advance withdrawals or replenishments to the bank account(s) designated to receive loan resources; (ii) direct payment; (iii) Special Commitment (under letter of credit); and (iv) reimbursement. The Designated Account will be maintained in a bank acceptable to IFAD and operated by the authorized representative(s) of the Ministry of Finance, Government of India. IFAD will make an initial advance to cover roughly six months of estimated project expenditure into the Designated Account and then replenish the Designated Account on the basis of Withdrawal Applications submitted by the Project through the State Government to the CAA&A, Government of India. The budgetary allocation for the Project (including counterpart funds) will be released to the Project in one or two tranches. To avoid delay in flow of funds to the Project GoUK will nominate an officer with Drawing & Disbursement Powers as the Finance Controller of the CPCU (unless the power is vested in the CPD). The funds will be transferred from the State Treasury to the Project bank Account opened and operated by the CPCU in a bank acceptable to IFAD. From this Project account, funds will flow to the Sub-project Accounts maintained by the three PMUs at UGVS, UPASAC and WMD. While UGVS and UPASAC funds will flow from the Sub project accounts at their respective PMUs to their existing District Level bank accounts. WMD funds will flow from the WMD Sub project Account to bank accounts maintained exclusively for the project at Divisional / District levels and a large proportion of the funds will further flow from these bank accounts to exclusive project bank accounts maintained by Water & Watershed Management Committees (WWMCs) which are part of the Gram Panchayats (GPs).

13 F. Project Management structure Project Management Structure of ILSP Project Management Structure of ILSP State State Project Project Steering Steering Committee Committee Project Project Management Management Committee Committee Central Central Project Project Coordination Coordination Committee Committee (CPCU) (CPCU) Project Implementing Agency Project Implementing Agency (WMD) (WMD) Project Implementing Agency Project Implementing Agency (UGVS) (UGVS) Project Implementing Agency Project Implementing Agency (UPASAC) (UPASAC)

14 Annex-1.4.2: Organisational Structure of UGVS Organisational Structure of UGVS Governing Governing Council Council UGVS UGVS Secretary Secretary UGVS UGVS Project Project Director Director CPCU CPCU Chief Programme Manager Chief Programme Manager DPD DPD Project Project Management Management Unit Unit Planning Planning & & M&E M&E Unit Unit Finance Finance Unit Unit HR HR & & Admin Admin Unit Unit DPMO: Almora DPMO: Almora DPMO: Tehri DPMO: Tehri DPMO: Bageshwar DPMO: Bageshwar DPMO: Chamoli DPMO: Chamoli DPMO: Uttarkashi DPMO: Uttarkashi

15 Annex-1.4.3: Organisational Structure of UGVS DPMOs Organisational Structure of DPMO of UGVS Divisional Project Divisional Project Manager Manager District Level Coordination & District Level Coordination & Management Committee Management Committee Technical Unit Technical Unit Planning & Planning & Monitoring Monitoring Unit Unit Finance & Finance & Administration Administration Unit Unit Marketing Marketing Unit Unit Support Support Staff Staff

16 Annex-1.4.4: Organisational Structure of UPASAC Organisational Structure of UPASAC Board Board of of Directors Directors Chairperson Chairperson Managing Director Managing Director Chief Executive Officer Chief Executive Officer Development Finance Development Finance Manager Manager Finance Manager Finance Manager Support Staff Support Staff

17 Annex-1.4.5: Organisational Structure of WMD Society Watershed Management Directorate (WMD) Chief Project Director Project Society (WMD) PMU of Society FNGO (Regional level) Convener Project Director (Garhwal ) Project Director (ILSP) Project Director (Kumaon ) EXPERTS 1.Watershed (Plan) 2.Social 3.Environment 4.MIS 5.GIS 6.IEC 7. Agribusiness Dy.Project Director, Nainital Coordinator Dy. Project Director, Pauri Dy.Project Director, Champawat Facilitator Project Units Gram Panchayat (Water and Watershed Committee) Assistant Accountant Village Motivator Revenue Village Committee (RVC) Producer Groups / livelihood collectives / User groups

18 Format of Submission of Technical proposal by Chartered Accountants Firms Annexure 4 DETAILS OF CHARTERED ACCOUNTANT FIRMS 1. Name of the Firm : 2. (a) Address of the Head Office : : : Address of Branch office in Uttarakhand : : : : 3. Year of Establishment : 4. Nature of Constitution : 5. Firm Registration No. with ICAI : 6. C&AG Empanelment No. for the F.Y : 7. PAN of Income Tax : 8. Service Tax Registration No. : 9. Partner s Details as on in the record of ICAI (Photocopies to be enclosed) S. No. Partner s Name, Age & Location Membership No. Qualification Experience/Details of Works Period of Partnership

19 10. Details of and Head Office and branches in Uttarakhand: S. No. Location/ Address Since Address Name of Branch Head Phone No./Fax No. No of staff Senior Junior Others 11. Audit Experience i. Details of Statutory/annual audit in Govt Bodies / PSUs / corporate entities (other than externally aided projects) in the last 5 years : S. No. Name of Corporate Entities/ Govt. entities, PSUs etc Name of the State Financial Year of Audit Assignment Details in brief ii Details of Internal audit in Govt Bodies, PSUs/related to Not for Profit sector/ corporate entities (other than externally aided projects) in the last 5 years: S. No. Name of Corporate Entities/ Govt. entities, PSUs etc Name of the State Financial Year of Audit Assignment Details in brief

20 iii Details of audit of externally aided-projects in the last 5 years (Attach full details)- S. N o. Institution s/ entity / department Name ( Name of the institution in full) Name of the State/ Project Name in full Name of the Donar agency Financial Year of Audit Assignment Details in brief Details of Staff Indicate separately for Head Office & Branches S.No. Head Office/ Branch Office No of staff Name Designation Qualification Associated Since Assignment Details 1 Qualified staff (CA) 2 Sr. Staff (CA- Inter or M.Com) 3 Jr. Staff (B.Com or Trainee) 13. Turnover figures in ( Lakhs ) of last 3 years. Year Turn over 1 2 3

21 14. Comments if any on the TORs: 15. Attach Photocopy as proof in respect of Points No. 3,4,5,6,7,8,9,11 and 13 only. Note: Please attach Xerox copies of letters regarding the assignments carried out in the last 3 years Date: Place : Seal of the CA Firm Authorized Signatory Name : Membership No. : Status: Mobile No. :

22 Format of Submission of Financial Proposal for Chartered Accountants Firms Financial Bid A. Location of Audit and proposed estimated days for audit S.N Name of Division/DMU Office Location Unit Audit Location Annexure 5 Estimated Days for audit including travel time & report writing 1 Almora, UGVS Almora Division Almora 2 2 Bageshwar,UGVS Bageshwar Division Bageshwar 2 3 Chamoli, UGVS Gopeshwar Division Gopeshwar 2 4 Tehri,UGVS Chamba Division Chamba 2 5 Uttarkashi,UGVS Purola Division Purola 2 6 UGVS, PMU Dehradun Head Office Dehradun 2 7 UPASaC Dehradun Division Dehradun 2 8 Uttarakhand Jalagam Vikas Ekai, (UJVE) of Watershed Management Directorate, Dehradun Dehradun Head Office Dehradun 2 9 PD Garhwal Region WMD Garhwal Region Division Muni Ki Reti, Rishikesh 2 Division Haldwani 2 10 PD Kumaon Region WMD Kumaon Region 11 DPD WMD, Champawat Champawat Division Champawat 2 12 DPD WMD, Nainital Haldwani Division Haldwani 2 13 DPD WMD Pauri Pauri Division Pauri 2 14 Central Proejct Coordination Unit (CPCU) 15 Report writing, finalization and consolidation of reports of all units Dehradun Division Dehradun 2 3 Total estimated days of audit and report writing, consolidation, finalization 31

23 B. Fees for Audit and Report Finalization. Particular Audit Fee for Divisional unit ( Per Unit)- estimated days 2 days per unit Audit Fee for Head office Unit ( Per Unit Estimated days 2 days per unit Amount ( Audit fee and other expenditure including boarding & Lodging, travel and other expenses excluding service tax Rs. (INR) per unit Rs. (INR) per unit Fee for consolidation, finalization and report writing Estimated days 3 days ( For all units and Head Offices Units) Rs. (INR) for 3 days Please indicate Name of Partner/Paid CA and staff members to be deployed by the CA Firm. Date: Place : Seal of the CA Firm Authorized Signatory Name : Membership No. : Status: Mobile No. :

24 Annexure 6 Name of the Chartered Accountant Firms: Technical Proposal Evaluation Form S Criteria No 1 Experience/existence of firm : Up to 5 years experience: 6 points Above 5 year of experience (1 point plus for every additional year, Maximum 10 points) 2 Experience in Statutory/annual audit in Govt Bodies / PSUs / corporate entities (other than externally aided projects) in the last 5 years: 10 Annual/statutory audit : 10 point Above 10 Statutory Audit (1 point plus for every additional audit, Maximum 15 points) 3 Experience in Internal audit in Govt Bodies, PSUs/related to Not for Profit sector/corporate entities(other than externally aided projects) in the last 5 years: 10 Internal Audits : 10point Above 10 Internal Audit (1 point plus for every additional audit, Maximum 15 points) 4 Experience of Audit of externally aided projects in the last 5 years: 5 Internal/annual Audits : 10 point Above 5 Internal Audit (1 point plus for every additional audit, Maximum 15 points) Max points Local Presence in Uttarakhand 10 Branch Office = 7 point, Head Office =10 6 Staff Strength(Senior & Junior Auditors) 15 Up to 10 9 point 11 to 15 staff 12 points15-20 staff 15 points Total 80