Bihar Gram Swaraj Yojna Society Panchayati Raj Department

Govt. of Bihar 3rd Floor Biscomaun Tower, Gandhi Maidan, Patna – 800001

Contact No : 0612-2219175/7544010999

Ref: 2/BGSYS/FIN 14-150/2011

Notice for appointment of Chartered Accountants firm for statutory audit

Bihar Gram Swaraj Yojana Society (BGSYS) under Department of Panchayati Raj, Gov. of Bihar has received

financing from the World Bank towards the cost of Bihar Panchayat strengthening project. The projects

“aims to strengthen state government capacity in promoting, inclusive, responsive and accountable

Panchayati Raj institutions in six districts” . Viz., Patna, Nalanda, Bojpur, Sharsha, Supaul and Madhepura.

BGSYS requires the service of the charted accountant firms for conducting statutory audit of BGSYS SPMU

Patna for the financial year 2014-15.

Eligibility criteria

1) The firm should have its office in the Bihar.

2) The firm must be empanelled with comptroller auditor general of India (CAG of India) for the year

2014/2015 onwards

3) The firm should have Five years experience in similar assignment in any projects and the average

turnover not less than 08(Eight) lacks in last three year.

Important information for interested firms

1) The contract will be for a period of one year which may be extended upto a period three years on

satisfactory performance.

2) Detail ToR is available on www.biharprd.bih.nic.in

3) Proposal will be submitted by hand/courier/post latest within a period of seven days from the date

of publication.

4) Opening of the tender will be informed later on the website as well as telephonically address/

number mentioned in the tender notice.

5) BGSYS, Patna reserve the right to cancel the set advertisement without assigning any reason.

(Kuldip Narayan, IAS)

Project Director

SELECTION OF STATUTORY AUDITORS

Terms of Reference (TOR) for Statutory Auditors

Section I –

1. Introduction-

The Government of Bihar (GoB) aims to strength the Panchayati Raj

Institution as units of self-governance with a physical presence capable of

planning, implement and monitoring development schemes, promoting

community participation, generating employment opportunities and

providing justice at doorsteps.

Bihar Gram Swaraj Yojna Society under Department of Panchayati Raj, Govt, of Bihar

has received financing from the World Bank towards the cost of Bihar Panchayat

Strengthening Project, and aims” to strengthen state government capacity in

promoting inclusive, responsive and accountable Panchati Raj Institutions in the

state of Bihar.

Presently Society is undertaking BPSP project funded by World Bank

2. Statutory Auditors

Statutory Audit is a systematic examination of financial transactions on a

regular basis to ensure accuracy, authenticity, compliance with procedure and

guidelines.

Independent Chartered Accountant firms shall be appointed as Statutory

Auditors at State Level to undertake periodical audits and report on vital

parameters which would depict the true picture of financial and accounting

health of the program.

3. Financing by Development Partners/ Donors:

The program is supported by development partners World Bank. 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.

Section II

4. Objective: The objective of the audit is to provide an independent

professional opinion to the various stakeholders (State Government, World

Bank etc.) on the accuracy of the projects Financial Statements and

compliance with financing agreements. The responsibility of the C.A Firm will

be to prepare annually Financial Statement with Consolidation 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, and Reconciliation of Expenditures

as per Audited financial statements with the expenditure reported for the

accounting period ended March 31, 2015, (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 Societies and other participating implementing

units shall form the basis for preparation of the individual financial

statements as well as the consolidated financial statements for the state as a

whole and report thereon of BGSYS and also to fulfil the statutory compliance

as per Society Registration Act, Income Tax Act etc.

5. 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; methods of remedying

weak controls; verification of assets and liabilities; 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

Government of Bihar 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 GoB. However, for various

programmes, special attention must be paid to the requirements of the

agreement between GoB and development partners (World Bank) 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 GoB and have all the

necessary supporting documentation.

d) Expenditures if any, 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. The responsibilities of the statutory auditors shall

include reporting on the adequacy of internal controls, the accuracy and

propriety of transactions, the extent to which assets are accounted for and

safeguarded, and the level of compliance with financial norms and

procedures for the operational guidelines

Any other evaluation work, as desired by the Society.

6. Reporting and Timing

a) The period to be covered under present Request for Proposal (RFP) would

be one financial year i.e from 1st April 2014 to 31st March 2015.

b) Further the period to be audited may be extended on due approval from

appropriate Authority on satisfactory performance.

c) The final Audit Report should be submitted 15 days from the date of

signing of the contract. The firm shall submit 3 copies ( spiral Bound) {and

also soft copy in MS Excel/ MS Word and Scanned (Both) in mail or CD of

the audited financial statements and audit report along with the final

Utilisation Certificates signed by the State and Auditor both with their

comments, if any, to the Society/ GoB

7. Additional Instructions to Auditors

a) Audit Report of the BGSYS shall include audit of all the transactions at the

State level.

b) The auditor will specifically mention in the audit report about the coverage

of audit on these components and also will ensure that the releases and

expenditures are duly separately reflected in each program financial

statements.

c) The auditor appointed shall be required to issue separate Audit Report,

accounting policies, notes to accounts and management letter for each

Programme individually for the State and prepare a consolidated Report

also for the State and also for each programme separately for Society

(BGSYS).

d) Financial Statements and relevant schedules shall be prepared in

accordance with the format provided by BGSYS, Panchayati Raj Dept., GoB.

e) Auditor shall also ensure preparation of Financial Statement for filling of

return & report to Income Tax Department on relevant due date.

8. Auditor shall certify the Utilization Certificates in the prescribed format (Form

42-A of BTC, 2011) of GoB. The Utilization Certificates should be jointly signed

by the Project Director, State Project Manager (Finance) and the Auditor.

9. Eligibility Criteria Offer is invited from those Chartered Accountants firms

who fullfill the following requirement.

1. The firm should have its office in Bihar and must be on the approved panel

of Comptroller Auditor General of India (CAG of India) for the year 2014-15

onwards.

2. The firm should have 5 years experience and have audit experience of at

least three externally aided projects.

3. The organization should have at least 01 FCA”s who have 5 years

experience, are competent and willing to work towards fulfilment of audit

objectives in SPMU and District Level Units, if proposed.

4. Last 3 year Average Turnover of the firm should not be less than Rs. 8.00

lacs annually.

5. The firm or any partners of the firm should not be black listed by any

Government or any other organization in respect of any assignment or

behaviour, Authorized signatory of the firm to submit an undertaking in

this regard.

6. No proposal shall be entertained in joint Venture.

The firm should submit relevant documents duly attested by the

authorized signatory, in support of the eligibility criteria given above.

Any firm not qualifying these minimum criteria need not apply as their

proposal shall be summarily rejected.

1. Important Dates

a. Terms of Reference may be downloaded from our website

www.biharprd.bih.nic.in.

b. Interested eligible firms may submit their offer as prescribed format

to the PD, Bihar Gram Swaraj Yojana Society, Panchayati Raj

Department Govt. of Bihar, 3rd Floor, Biscomaun Tower, Gandhi

Maidan, Patna- 800001, within 7 days from the date of publication

in Newspaper with all supporting documents. In case the 7th day is a

holiday, the bids may submitted until 05:00 PM of the next working

day.

Guidelines for Submitting the Proposals:

1. General Guidelines:

Agencies are required to submit the proposal as per the guidelines and

formats detailed out in the following paras:

i. The Technical proposal shall be submitted in two copies one original

and one copy. The Financial proposal shall be only in original. The

original and a copy 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 Directorate of

institutional Finance shall not be responsible for misplacement, losing

or premature opening if the outer envelope is not sealed and/or

marked as stipulated. This circumstance may be case for Proposal

rejection. If the Financial Proposal is not submitted in a separate sealed

envelope duly marked as indicated above, this will constitute grounds

for declaring the Proposal non-responsive.

ii. Single Proposal: A firm should submit only one proposal. If a firm

submits or participates in more than one proposal, all such proposals

shall be disqualified.

iii. The Technical Proposal shall be marked ÖRIGINAL” or “COPY” as

appropriate. All required copies of the Technical Proposal are to be

made from the original. If there are discrepancies between the original

and the copy of the Technical Proposal, the original governs.

iv. Financial proposals submitted by the firm should be valid for 6 months

from the date of submission of the proposal by the firm.

v. Each page, Form, Annexure and Appendices of the Technical and

Financial Proposal must be numbered and signed by the Authorised

Signatory of the firm.

Vi. All blank spaces in the finical proposal must be filled in completely where

indicated, either typed or written in ink.

Vii. PD, BGSYS Panchayati Raj Department, Bihar, reserves the right to

accept or reject any application without giving any explanation.

II. Technical Proposal:

i. Letter of Transmittal (Form T-1)

ii. Detail of Firm (Form T-2),

iii. Details of the Qualified Staff & Semi-qualified Staff (Form T-3)

iv. Brief of the relevant experience (Form T-4)

III. Financial Proposal:

i. The financial bid shall be submitted only for professional (audit) fee to be

charged by the firm. This audit fee shall be exclusive of the taxes as

applicable. The taxes, as applicable (service tax & cess on service tax), shall be

paid by BGSYS for each Programme separately on submission of final bill by

the audit firm. The financial bid shall be submitted as per Form F-1

ii. Percentage (or proportion) of funds involved/turnover shall not be basis for

quoting the audit fee.

iii. The audit firm shall travelling and incidental expenditure.

Section III – Selection Process of the Auditor:

1. The Technical Bid will be opened first to ascertain that the applying firm (s)

fulfils the eligibility criteria given the ToR.

2. Financial bids of on those firm will be opened which qualify during technical

evaluation.

3. After opening of financial bids the ranking will be done from lowest to highest

financial bids. Lowest bidder (L1) shall be offered the Letter of Award (LOA) to

carry out the audit assignment.

4. On completion of selection process, the firm selected shall be awarded the

contract of audit by issuing the Letter of Award (LOA). The firm should accept

the Award within 3 days of the issuance of LOA.

Section IV – Form

Form T-1

Letter of Transmittal

To,

PD, Bihar Gram Swaraj Yojana Society,

Panchayati Raj Department

Dear Sir,

We, the undersigned, offer to provide audit services for the BGSYS, in

accordance with your Tender Notice for Appointment of Statutory Auditor dated

[insert Date]. We are hereby submitting our Proposal, which includes this Technical

Proposal, and a Finical Proposal sealed under separate envelope.

We hereby declare that all information and statement made in this Proposal are

true and accept that any misinterpretation contained in may lead to our

disqualification.

The price quoted by us in the Finical Proposal (Form F-1) are valid till six month

from the date of submission of the quotation. We confirm that this proposal

remain binding upon us and may be accepted by you any time before expiry date.

Price have been arrived independently without consolation, communication,

agreement or understanding (for the purpose of restricting competition) with any

competitor.

We agree to bear all cost incurred by us in connection with preparation and

submission of the proposal and to bear any further pre-contract cost.

We understand that PD, BGSYS, Panchyati Raj Department, 3rd Floor, Biscouman

Tower, Gandhi Maidan, Patna – 800001, Government of Bihar 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

Particulars/Details of the Firm Form T-2

SL.N

o

PARTICULARS Supporting Documents required to be

submitted along with this Form

1 Name of the Firm

2 Address of the Firm

Head Office Phone No:

Fax No:

Mobile of Head Office In-charge:

Branch Office 1,2,3………….

(Particulars of each branch to be given)

Phone No:

Fax No:

Mobile of Branch Office In-charge:

3 Firm Income Tax PAN No. Attach copy of PAN card

4 Firm Service Tax Registration No Attach copy of Registration

5 Registration No. with ICAI Attach copy of Registration

6 Empanelment No. with C & A G Attach proof of latest empanelment

with C & AG for the year under Audit.

7 No. of Year of Firm Existence & Date of

establishment of Frim

Attach supporting document(s)

8 Turnover of the Firm in last three years Attach Financial of the last three years

9 Annual Average

Turnover

Year Turnover

2014-15

2013-14

2012-13

10 Audit Experience of the Firm:

Number of Assignment in

Commercial/Statutory Audit

Number of Assignments in Social Sector

Audit (Other than audit of Charitable

Institutions)

Copy of the Offer Letter & the Fee

Charged.

Copy of the Offer Letter & the Fee

Charged.

11 Details of Partners: Provide following

details:

Number of Full Time Fellow Partners

associated with the Firm.

Name of each partner,

Date of becoming ACA and FCA

Date of joining the firm,

Membership No,

Qualification

Experience

Whether the partners is engaged full time or

part time with the firm.

Form T-3

Details of Qualified Staff CV (Chartered Accountants)

(Please provide attested copy of Certificate of ICAI as on 1.1.2015 for each qualified

staff also provide CV)

SL.No Name

of

Staff

Length of

Association

with the

Firm (in

years)

Education

Qualification

Area of

Key

Expertise

Membership

No.

Relevant

Experience

1

2

Details of Semi-qualified Staff (including Article Clerk etc)

SL.No. Name

of Staff

Length of

Association

with the

Firm (in

years)

Education

Qualification

Area of

Key

Expertise

Relevant

Experience

Remarks

Semi Qualified Staffs:

1

2

..

Article Clerks:

1

2

Others

1

2

..

Form T-4

Brief of Relevant Experience:

Experience of audit in relation to Externally Aided Projects

SL.No Name of the

Auditee

Organization

Period of Audit of

Accounts

Duration of

Completion

of

Assignment

Proof of the

letter of work

or Assignment

awarded by the

Auditee

Organization

(P1 attach a

copy of the

letter)

1 From To

2

3

4

FORMAT FOR THE FINACIAL BID Form – F-1

Item or Activity Total Amount (in Rupees)

AUDIT FEE (Exclusive of All Taxes)

Both in Numeric and in Words.

RS._____________/-

(Rupees______________________).

1. The rates quoted are for one year which be applicable for subsequent years also.

2. Services Tax as applicable on the date of payment will be paid extra.

3. TDS of other statutory deductions as applicable will be deducted at the rates

notified by Government of India to time from each bill.

Signature of the authorised signatory