Selection of Statutory Auditors by fG7N84h7

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									                                      Strengthening Performance Management in Government (SPMG) Programme
                                                      SELECTION OF STATUTORY AUDITITORS - REQUEST FOR PROPOSAL




                              Directorate of Institutional Finance
                                     Finance Department
                                   Govt. of Madhya Pradesh
                    Vindhyachal Bhavan, C-Wing, First Floor, Bhopal - 462004
                       : 91 755 2551199/2552003 Fax: 91 755 2551387
                                         Website: http://mp.gov.in/difmp


                     SELECTION OF STATUTORY AUDITITORS


           Section I - Terms of Reference (TOR) for Statutory Auditors

    1. Brief Background
    The goal of the Strengthening Performance Management in Government (SPMG)
    Programme is the enhanced use of public resources for poverty reduction and human
    development. The purpose of SPMG programme is strengthening linkages between
    policy, planning and budgeting for more effective and efficient use of public resources for
    poverty reduction and human development in the state. The following five outputs will
    together enable achievement of the SPMG programme purpose.

         Output 1:       Strengthened systems and capacities for more effective and efficient
                         management of public expenditure within the framework of the state
                         Fiscal Responsibility and Budget Management Act.
         Output 2:       Strengthened systems and capacities for analyzing nature and causes of
                         poverty and vulnerability in the state to support design of pro-poor
                         policies and programmes.
         Output 3:       Strengthened systems and capacities for monitoring and evaluation of
                         programmes and schemes for better assessing their pro-poor impacts.
         Output 4:       Enabling policy environment for effective management of PSEs in the
                         state.
         Output 5:       Strengthened systems for procurement in government.

         Under the SPMG programme, expenditure has been made to support reforms
         programme to achieve the outputs mentioned above. To undertake such expenditure,
         financial statements and summary of such statements have been prepared.

         Financial Statements are expected to include the following:

             a) Summary of Sources and Uses of Funds
             b) Statements of assets acquired and created by the project.

         It is in this context that an Audit is to be undertaken of such statements prepared
         under the SPMG Program. The units to be covered for audit include SPMG
Directorate of Institutional Finance, Vindhyachal Bhavan, C-Wing, First Floor, Bhopal – 462004
: 91 755 2551199/2552003 Fax: 91 755 2551387
                                      Strengthening Performance Management in Government (SPMG) Programme
                                                      SELECTION OF STATUTORY AUDITITORS - REQUEST FOR PROPOSAL




         Programme located under the Directorate of Institutional Finance and the Poverty
         Monitoring and Policy Support Unit (PMPSU) Society, located in the Planning
         Department, Government of Madhya Pradesh.

         2.   Audit Objectives

         The objective of the audit is to provide an independent professional opinion to the
         various stakeholders (State Government, DFID etc.) on the accuracy of the project’s
         financial statements and compliance with financing agreements.

         3. Audit Period

          The audit to be carried out shall be for the financial year 2007-08, 2008-09, 2009-10
         and 2010-11.

         4. Scope of work

         The Audit firm will be expected to provide an assessment whether for withdrawals
         from the credit made on the basis of Statements of Expenditure (SOEs) and whether
         the SOEs submitted during the year, can be relied on to support the related
         withdrawals.

         5. Time Schedule
         The audit firm will complete the entire engagement within a period of 1 month.

         6. Reporting
         The auditor will submit its report to the Director, Institutional Finance, Finance
         Department, Government of Madhya Pradesh.

         7. Eligibility Criteria

         A. Offer is invited from those Chartered Accountants firms who full fill the following
            requirement:

              1. The firm should be M.P. based and on the approved panel of Comptroller
                 Auditor General of India (CAG of India) for the year 2009-10.

              2. The firm should have 10 years experience and have audit experience of atleast
                 four externally aided projects.

              3. The organization should have at least 02 FCA’s who have 10 years
                 experience, are competent and willing to work towards fulfilment of audit
                 objectives in SPMG and PMPSU.

              4. Last 3 year Turnover of the firm should not be less than Rs. 20.00 lacs
                 annually.

Directorate of Institutional Finance, Vindhyachal Bhavan, C-Wing, First Floor, Bhopal – 462004
: 91 755 2551199/2552003 Fax: 91 755 2551387
                                      Strengthening Performance Management in Government (SPMG) Programme
                                                      SELECTION OF STATUTORY AUDITITORS - REQUEST FOR PROPOSAL




             5. The firm or any partners of the firm should not be black listed by any
                Government or any other organisation in respect of any assignment or
                behaviour. Authorised signatory of the firm to submit an undertaking in this
                regard.

         B. 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.

    8. Important Dates
             a. Terms of Reference may be downloaded from our website
                http://mp.gov.in/difmp or collected from this office during office hours
                from date of publishing to 16th July 2010.
             b. Interested eligible firms may submit their offer as prescribed in Section
                – II to the Director, Institutional Finance, Vindhyachal Bhavan, C-Wing,
                First Floor, Bhopal – 462004 on or before 3 PM 19th July 2010, with all
                supporting documents.




Directorate of Institutional Finance, Vindhyachal Bhavan, C-Wing, First Floor, Bhopal – 462004
: 91 755 2551199/2552003 Fax: 91 755 2551387
                                      Strengthening Performance Management in Government (SPMG) Programme
                                                      SELECTION OF STATUTORY AUDITITORS - REQUEST FOR PROPOSAL




         Section II - Guidelines for Submitting the Proposals:

         I. General Guidelines:
            Agencies are required to submit the proposal as per the guidelines and formats
            detailed out in the following paras:

            i.    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 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 “ORIGINAL” 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 copies 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 signed by the Authorised signatory of the firm.

          vi.     All blank spaces in the financial proposal must be filled in completely where
                  indicated, either typed or written in ink.

         vii.     Director, Institutional Finance, MP reserves the right to accept or reject any
                  application without giving any explanation.

         II.      Technical Proposal:

            i.    Letter of Transmittal ( Form T-1)
Directorate of Institutional Finance, Vindhyachal Bhavan, C-Wing, First Floor, Bhopal – 462004
: 91 755 2551199/2552003 Fax: 91 755 2551387
                                      Strengthening Performance Management in Government (SPMG) Programme
                                                      SELECTION OF STATUTORY AUDITITORS - REQUEST FOR PROPOSAL




           ii.    Details of the Firm (Form T-2),

          iii.    Details of 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 the 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 SPMG 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.    As the units to be audited are located in Bhopal, the audit firm shall bear all
                  travelling and incidental expenditure.




Directorate of Institutional Finance, Vindhyachal Bhavan, C-Wing, First Floor, Bhopal – 462004
: 91 755 2551199/2552003 Fax: 91 755 2551387
                                      Strengthening Performance Management in Government (SPMG) Programme
                                                      SELECTION OF STATUTORY AUDITITORS - REQUEST FOR PROPOSAL




         Section III - Selection Process of the Auditor:

         1. The Technical Bids will be opened first to ascertain that the applying firm (s) fulfill the
            eligibility criteria given in the ToR.

         2. Financial bids of only those firms will be opened which qualify during technical
            evaluation.

         3. After opening of financial bids the ranking will be done from lowest to highest financial
             bid. 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 2 week of the issuance of LOA.




Directorate of Institutional Finance, Vindhyachal Bhavan, C-Wing, First Floor, Bhopal – 462004
: 91 755 2551199/2552003 Fax: 91 755 2551387
                                      Strengthening Performance Management in Government (SPMG) Programme
                                                      SELECTION OF STATUTORY AUDITITORS - REQUEST FOR PROPOSAL




Section IV – Forms

                                                                                                  Form T-1
                                            Letter of Transmittal

To,
Director
Institutional Finance, MP
Vindhyachal Bhavan,
C-Wing, First Floor,
Bhopal - 462004

Dear Sir,
        We, the undersigned, offer to provide the audit services for the SPMG Programme, including
PMPSU, 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
Financial Proposal sealed under a separate envelope.

        We are submitting our Proposal in association with: [Insert a list with full name and address
of each associated Consultant]

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 prices quoted by us in the Financial Proposal (Form F-1) are valid till six months from the date of
submission of the quotation. 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 Director, Institutional Finance, MP 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,




(                          )
Directorate of Institutional Finance, Vindhyachal Bhavan, C-Wing, First Floor, Bhopal – 462004
: 91 755 2551199/2552003 Fax: 91 755 2551387
                                      Strengthening Performance Management in Government (SPMG) Programme
                                                      SELECTION OF STATUTORY AUDITITORS - REQUEST FOR PROPOSAL




                                                                                                  Form T-2
                                     Particulars/Details of the Firm

Sl. PARTICULARS                                                  Supporting Documents required to be submitted
No.                                                              along with this Form
1   Name of the Firm
2   Addresses of the Firm:
          Head Office                                            Phone No:
                                                                 Fax No:
                                                                 Mobile of Head Office In-charge:
              Branch Office 1,2,3……                              Phone No:
       (Particulars of each branch to be given)                  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
6      Empanelment No. with C & A G                              Attach proof of latest empanelment with C&AG
                                                                 for the year under Audit.
7      No. of Years of Firm Existence & Date of                  Attach supporting document(s)
       establishment of Firm
8      Turnover of the Firm in last three years                  Attach balance sheet of the last three years
9      Annual Average Turnover                                   Attach supporting document(s)
10     Audit Experience of the Firm:
       Number of Assignments in                                  Copy of the Offer Letter & the Fee Charged.
       Commercial/Statutory Audit
       Number of Assignments in Social Sector
       Audit (Other than audit of Charitable                     Copy of the Offer Letter & the Fee Charged.
       Institutions)
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.

Directorate of Institutional Finance, Vindhyachal Bhavan, C-Wing, First Floor, Bhopal – 462004
: 91 755 2551199/2552003 Fax: 91 755 2551387
                                      Strengthening Performance Management in Government (SPMG) Programme
                                                      SELECTION OF STATUTORY AUDITITORS - REQUEST FOR PROPOSAL




                                                                                                  Form T-3

Details of Qualified Staff (Chartered Accountants)

(Please provide attested copy of Certificate of ICAI as on 1.1.2010 for each qualified staff)

S. No.       Name of        Length of   Educational    Area of                     Membership Relevant
             Staff          Association Qualifications Key                         No.        Experience
                            with the                   Expertise
                            Firm
                            (in years)
1
2



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

S. No.        Name of         Length of   Educational    Area of                     Relevant     Remarks
              Staff           Association Qualifications Key                         Experience
                              with the                   Expertise
                              Firm
                              (in years)
Semi Qualified Staffs:
1
2
..
Article Clerks:
1
2
..
Others
1
2
..




Directorate of Institutional Finance, Vindhyachal Bhavan, C-Wing, First Floor, Bhopal – 462004
: 91 755 2551199/2552003 Fax: 91 755 2551387
                                      Strengthening Performance Management in Government (SPMG) Programme
                                                      SELECTION OF STATUTORY AUDITITORS - REQUEST FOR PROPOSAL




                                                                                                   Form T-4

Brief of Relevant Experience:

Experience of audit in relation to Externally Aided Projects

S.       Name of the              Period of Audit of             Duration of       Proof of the letter
No.      Auditee                      Accounts                   Completion        of Work or
         Organization                                            of                Assignment
                                                                 Assignment        awarded by the
                                                                                   Auditee
                                                                                   Organization (Pl
                                                                                   attach a copy of the
                                From                 To                            letter)
1
2
3
4




Directorate of Institutional Finance, Vindhyachal Bhavan, C-Wing, First Floor, Bhopal – 462004
: 91 755 2551199/2552003 Fax: 91 755 2551387
                                      Strengthening Performance Management in Government (SPMG) Programme
                                                      SELECTION OF STATUTORY AUDITITORS - REQUEST FOR PROPOSAL




                                                                                                            Form F-1
FORMAT FOR FINANCIAL BID

     Item or Activity                                            Total Amount (in Rupees)



     AUDIT FEE (Exclusive of Service Tax and                     Both in Numeric and in Words.
     cess on Service tax)
                                                                 Rs.__________________/-

                                                                 (Rupees ________________________).




   Breakup of the Audit Fee quoted above must be provided as per following format:*

         S. NO.                          Particulars                                           Amount

     1              Audit fee for FY 2007-08
     2              Audit fee for FY 2008-09

     3              Audit fee for FY 2009-10

     4              Audit fee for FY 2010-11

                    TOTAL




* To be arrived based on the estimated man days for each category of staff proposed for the
assignment.




Signature of the authorised signatory
Date………………………………...                                                      Place.........................................




Directorate of Institutional Finance, Vindhyachal Bhavan, C-Wing, First Floor, Bhopal – 462004
: 91 755 2551199/2552003 Fax: 91 755 2551387

								
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