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Request for Proposal
For Internal Audit of UGVS-ILSP Project for the Financial Year 2018-19
from Chartered Accountants (CA) Firms
Date of Issue: January 05,2019Closing Date: January 21,2019
RFP No. (Reference No. /2018-19 dated
SECTION 1LETTER OF INVITATION
FOR SELECTION BASED ON QUALITY AND COST BASED SELECTION (QCBS)
Ref No. Date: 05 / 01/2019
Section 1:- INVITATION FOR PROPOSALTo,
Dear Mr. / Ms.
1. Uttarakhand Gramya Vikas Samiti is a society registered under The Society Act 1860 under Rural Development Department Government of Uttarakhand and is implementing component I ( Food Security & livelihood Enhancement) of externally aided project - Integrated Livelihood Support project (ILSP) funded by IFAD.
2. Additional Project Director – UGVS invites Request for Proposal (RFP) from Eligible Chartered Accountants Firms to conduct the Internal Audit of UGVS-ILSP Project for the financial year 2018-19 and thereafter as required for next two years .
3. Basic Eligibility Criteria: The applicant CA firms should possess the following basic qualifications
a. CA Firm should be empanelled with C&AG of India for audit of FY 2018-19.
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
e. and 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
Chartered Accountants Firms who does not have above eligibility will not be considered for further evaluation
4. The RFP includes the following documents:
Section 1 - Letter of Invitation
Section 2 - Instructions to Service Providers( Chartered Accountants Firms) (including Data Sheet)
Section 3 - Technical Proposal - Standard Forms
Section 4 - Financial Proposal - Standard Forms
Section 5 - Terms of Reference
Section 6 – IFAD Policy on Fraud and Corruption
5. Audit Team Composition & Man days per unit: The audit team must have 3 members consisting at least one full time FCA / ACA ( full time staff or partner), one Semi Qualified Staff (at least C.A. Inter or above) and one Articled Clerk. The expected audit days are 3 days (9 person days) for each divisional unit and 3 days (9 person days) for Head Office. 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.
6. Phases of Internal Audit : Internal audit shall be conducted in two phases. First for the period from April 18 to Dec 18 and IInd for the period January 19 to March 19. The audit of the next financial years, if awarded shall be done on half yearly basis
7. Minimum Fee : The minimum audit fee excluding travel and reimbursable is as under :
One full time FCA / ACA ( full time staff or partner) - Rs. 3,000/- per day
One Semi Qualified Staff (at least C.A. Inter or above) - Rs. 2,000/- per day
one Articled Clerk - Rs. 1,500/- per day
Financial proposal quoting below this minimum fee will not be considered for evaluation.
8. Method of Selection: A firm will be selected under Quality and Cost Based Selection Method and procedures described in this RFP, in accordance with the procurement rules of Government of Uttarakhand and policies of the International Fund for Agricultural Development (IFAD) detailed in the Guidelines – The Procurement Process by IFAD which can be found at the following website: http://www.ifad.org/pub/basic/procure/e/proceng.pdf . If after technical and financial evaluation two or more firms secure first rank than contract shall be awarded to highest technically ranked firm among such firms. If even after such evaluation two or more firms are ranked first than decision will be taken on the basis of overall experience of the firm and team proposed. The minimum qualifying points are 65% for evaluation of technical proposal. Firms scoring below 65% marks in technical evaluation will not be considered eligible for further evaluation.
9. Kindly note that Additional Project Director is 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.
10. For any queries if any on the RFP document and attached ToR interested CA firm may contact – UGVS Office Phone No. 0135-2774800.
11. Please submit the proposal at the following address :
Additional Project Director,
Uttarakhand Gramya Vikas Samiti
Integrated Livelihood Support Project
216, Panditwari- Phase II, Dehradun.
Email:[email protected] Web site: www.ugvs.org
Yours sincerely,
Sd/
Additional Project Director, UGVS
216, Panditwari- Phase II, Dehradun.
Email:[email protected] Web site: www.ugvs.org
Section 2. Instructions to Chartered Accountant Firm
Definitions.................................................................................................................................6
1. Introduction..................................................................................................................7
Conflict of Interest....................................................................................................................8
Conflicting activities.................................................................................................................8
Conflicting assignments...........................................................................................................8
Conflicting relationships..........................................................................................................9
Unfair Advantage......................................................................................................................9
Fraud and Corruption..............................................................................................................9
Eligibility.................................................................................................................................11
Eligibility of Sub-SPs..............................................................................................................11
Origin of Goods and Consulting Services..............................................................................11
Only one Proposal..................................................................................................................11
Proposal Validity....................................................................................................................11
2. Clarification and Amendment of RFP Documents...................................................12
3. Preparation of Proposals...........................................................................................12
Language.................................................................................................................................13
Technical Proposal Format and Content..............................................................................13
Financial Proposals................................................................................................................15
Taxes........................................................................................................................................15
4. Submission, Receipt, and Opening of Proposals......................................................15
5. Proposal Evaluation...................................................................................................16
Evaluation of Technical Proposals........................................................................................17
Public Opening and Evaluation of Financial Proposals (only for QCBS,............................17
6. Negotiations........................................................................................................................18
Technical negotiations...........................................................................................................18
Financial negotiations............................................................................................................19
Availability of Professional staff/experts.............................................................................19
Conclusion of the negotiations........................................................................................19
7. Award of Contract......................................................................................................20
8...............................................................................................................................................20
Confidentiality........................................................................................................................20
Definitions (a) “IFAD” means the International Fund for Agricultural Development –UN Specialized agency
(b) “Client” means the agency with which the selected Chartered Accountant Firm signs the Contract for the Services. In this case Uttarakhand Gramya Vikas Samiti (UGVS)-ILSP is the Client
(c) “Consultant” means any entity or person that may provide or provides the Services to the Client under the Contract.
(d) “Contract” means the Contract signed by the Parties and all the attached documents listed in its Clause 1 that are the General Conditions (GC), the Special Conditions (SC), and the Appendices.
(e) “Data Sheet” means such part of the Instructions to Chartered Accountant Firm used to reflect specific country and assignment conditions.
(f) “Day” means calendar day.
(g) “Government” means the government of the Client’s country.
(h) “Instructions to Chartered Accountant Firm” (Section 2 of the RFP) means the document which provides shortlisted Chartered Accountant Firm with all information needed to prepare their Proposals.
(i) “LOI” (Section 1 of the RFP) means the Letter of Invitation being sent by the Client to the shortlisted SPs.
(j) “Personnel” means professionals and support staff provided by the Chartered Accountant Firm or by any Sub-Chartered Accountant Firm and assigned to perform the Services or any part thereof; “Foreign Personnel” means such professionals and support staff who at the time of being so provided had their domicile outside the Government’s country; “Local Personnel” means such professionals and support staff who at the time of being so provided had their domicile inside the Government’s country.
(k) “Proposal” means the Technical Proposal and the Financial Proposal.
(l) “RFP” means the Request For Proposal to be prepared by the Client for the selection of Chartered Accountant Firm, based on the RFP.
(m) “RFP” means the Request for Proposals, which must be used by the Client as a guide for the preparation of the RFP.
(n) “Services” means the work to be performed by the Chartered
Accountant Firm pursuant to the Contract.
(o) “Sub-Chartered Accountant Firm” means any person or entity with whom the Chartered Accountant Firm subcontracts any part of the Services.
(p) “Terms of Reference” (TOR) means the document included in the RFP as Section 5 which explains the objectives, scope of work, activities, tasks to be performed, respective responsibilities of the Client and the Chartered
Accountant Firm, and expected results and deliverables of the assignment.
(Q) “SP” means Service Provider or the Chartered Accountant Firm
1.Introduction 1.1 The Client named in the Data Sheet will select a consulting firm/organization (the Chartered Accountant Firm) from those listed in the Letter of Invitation, in accordance with the method of selection specified in the Data Sheet.
1.2 The shortlisted Chartered Accountant Firms are invited to submit a Technical Proposal and a Financial Proposal, or a Technical Proposal only, as specified in the Data Sheet, for services required for the assignment named in the Data Sheet. The Proposal will be the basis for contract negotiations and ultimately for a signed Contract with the selected Chartered Accountant Firm.
1.3 Chartered Accountant Firm (SP) should familiarize themselves with local conditions and take them into account in preparing their Proposals. To obtain first-hand information on the assignment and local conditions, SPs are encouraged to visit the Client before submitting a proposal and to attend a pre-proposal conference if one is specified in the Data Sheet. Attending the pre-proposal conference is optional. CHARTERED ACCOUNTANT FIRM should contact the Client’s representative named in the Data Sheet to arrange for their visit or to obtain additional information on the pre-proposal conference. CHARTERED ACCOUNTANT FIRMs should ensure that these officials are advised of the visit in adequate time to allow them to make appropriate arrangements.
1.4 The Client will timely provide at no cost to the CHARTERED ACCOUNTANT FIRMs the inputs and facilities specified in the Data Sheet, assist the firm in obtaining licenses and permits needed to carry out the services, and make available relevant project data and reports, as applicable.
1.5 CHARTERED ACCOUNTANT FIRM shall bear all costs associated with the preparation and submission of their proposals and contract negotiation. The Client is not bound to accept any proposal, and reserves the right to annul the selection process at any time prior to Contract award, without thereby incurring any liability to the CHARTERED ACCOUNTANT FIRMs.
Conflict of Interest
1.6 IFAD policy requires that CHARTERED ACCOUNTANT FIRM provides professional, objective, and impartial advice and at all times hold the Client’s interests paramount, strictly avoid conflicts with other assignments or their own corporate interests and act without any consideration for future work.
1.6.1 Without limitation on the generality of the foregoing, CHARTERED ACCOUNTANT FIRMs, and any of their affiliates, shall be considered to have a conflict of interest and shall not be recruited, under any of the circumstances set forth below:
Conflicting activities
(i) A firm that has been engaged by the Client to provide goods, works or services other than this type services for a project, and any of its affiliates, shall be disqualified from providing services related to those goods, works or services. Conversely, a firm hired to provide services for the preparation or implementation of a project, and any of its affiliates, shall be disqualified from subsequently providing goods or works or services other than consulting services resulting from or directly related to the firm’s consulting services for such preparation or implementation. For the purpose of this paragraph, services other than services are defined as those leading to a measurable physical output, for example surveys, exploratory drilling, aerial photography, and satellite imagery.
Conflicting assignments
(ii) A CHARTERED ACCOUNTANT FIRM (including its Personnel) or any of its affiliates shall not be hired for any assignment that, by its nature, may be in conflict with another assignment of the CHARTERED ACCOUNTANT FIRM to be executed for the same or for another Client. For example, a CHARTERED ACCOUNTANT FIRM hired to prepare engineering design for an infrastructure project shall not be engaged to prepare an independent environmental assessment for the same project, and a CHARTERED ACCOUNTANT FIRM assisting a Client in the privatization of public assets shall not purchase, nor advice purchasers of, such assets. Similarly, a CHARTERED ACCOUNTANT FIRM hired to prepare Terms of Reference for an assignment should not be hired for
the assignment in question.
Conflicting relationships
(iii) A CHARTERED ACCOUNTANT FIRM (including its Personnel) that has a business or family relationship with a member of the Client’s staff who is directly or indirectly involved in any part of (i) the preparation of the Terms of Reference of the assignment, (ii) the selection process for such assignment, or (iii) supervision of the Contract, may not be awarded a Contract, unless the conflict stemming from this relationship has been resolved in a manner acceptable to the IFAD throughout the selection process and the execution of the Contract.
1.6.2 CHARTERED ACCOUNTANT FIRM have an obligation to disclose any situation of actual or potential conflict that impacts their capacity to serve the best interest of their Client, or that may reasonably be perceived as having this effect. Failure to disclose said situations may lead to the disqualification of the -CHARTERED ACCOUNTANT FIRM or the termination of its Contract.
1.6.3 No agency or current employees of the Client shall work as CHARTERED ACCOUNTANT FIRM under their own ministries, departments or agencies. Recruiting former government employees of the Client to work for their former ministries, departments or agencies is acceptable provided no conflict of interest exists. When the CHARTERED ACCOUNTANT FIRM nominates any government employee as Personnel in their technical proposal, such Personnel must have written certification from their government or employer confirming that they are on leave without pay from their official position and allowed to work full-time outside of their previous official position. Such certification shall be provided to the Client by the CHARTERED ACCOUNTANT FIRM as part of his technical proposal.
Unfair Advantage
1.6.4 If a shortlisted CHARTERED ACCOUNTANT FIRM could derive a competitive advantage from having provided consulting services related to the assignment in question, the Client shall make available to all shortlisted CHARTERED ACCOUNTANT FIRMs together with this RFP all information that would in that respect give such CHARTERED ACCOUNTANT FIRM any competitive advantage over competing CHARTERED ACCOUNTANT FIRMs.
Fraud and Corruption
1.7 IFAD requires that its own staff and the staff of Borrowers/Recipients (including beneficiaries of IFAD financing), and all bidders, suppliers, contractors and CHARTERED ACCOUNTANT FIRMs under IFAD-financed contracts, observe the highest standard of
ethics and integrity during the execution of and procurement under such contracts. This position is clearly stated in the IFAD Policy on Preventing Fraud and Corruption in its Activities and Operations (hereafter: the anticorruption policy),
(a) Reject a proposal for award if it determines that the bidder, supplier, contractor or CHARTERED ACCOUNTANT FIRM recommended for award has, directly or through an agent, engaged in coercive, collusive, corrupt or fraudulent practices in competing for the contract in question;
(b) Suspend or cancel all or part of the financing in accordance with the General Conditions if it determines at any time that representatives of the Borrower/Recipient or of a beneficiary of the financing engaged in coercive, collusive, corrupt or fraudulent practices during the procurement or the execution of that contract, without the Borrower/Recipient having taken timely and appropriate action satisfactory to IFAD to remedy the situation;
(c) Sanction an individual or firm – which may include declaring the individual or firm ineligible to be awarded an IFAD-financed contract indefinitely or for a stated period of time – if at any time it determines that the individual or firm has, directly or through an agent, engaged in coercive, collusive, corrupt or fraudulent practices in competing for, or in executing, an IFAD-financed contract;
(d) Require that bidding documents and the contracts that it finances include a provision requiring suppliers, contractors and CHARTERED ACCOUNTANT FIRMs to permit IFAD to inspect their accounts, records and other documents relating to the bid submission and contract performance, and to have them audited by IFAD-appointed auditors;
(e) Refer any cases of irregular practices that include, but are not limited to, fraud and corruption to the relevant national authorities for further investigation; and
(f) Apply, in the event of cases in which irregular practices have been determined, the sanctions it deems necessary and appropriate
(g) “corrupt practice” is the offering, giving, receiving or soliciting, directly or indirectly, of anything of value to influence improperly the actions of another party;
(h) “fraudulent practice” is any act or omission, including
misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain financial or other benefit or to avoid an obligation;
(I) “collusive practices” is an arrangement between two or more parties designed to achieve an improper purpose, including to influence improperly the actions of another party;
(J) “coercive practices” is impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party;
Eligibility 1.8 A firm declared ineligible by the IFAD in accordance with the IFAD Guidelines On Fraud and Corruption in Projects Financed by IFAD Loans and Grants shall be ineligible to be awarded a IFAD-financed contract during such period of time as the IFAD shall determine.
Eligibility of Sub-CHARTERED ACCOUNTANT FIRMs
1.9 In case a shortlisted CHARTERED ACCOUNTANT FIRM intends to associate with CHARTERED ACCOUNTANT FIRMs who have not been shortlisted and/or individual expert(s), such other CHARTERED ACCOUNTANT FIRMs and/or individual expert(s) such associates shall not be allowed in any case.
Origin of Goods and Consulting Services
1.10 Goods supplied and Consulting Services provided under the Contract may originate from any country except if:
(i) as a matter of law or official regulation, the Borrower’s country prohibits commercial relations with that country; or
(ii) by an act of compliance with a decision of the United nations Security Council taken under Chapter VII of the Charter of the United Nations, the Borrower’s Country prohibits any imports of goods from that country or any payments to persons or entities in that country.
Only one Proposal
1.11 Shortlisted CHARTERED ACCOUNTANT FIRMs submit only one proposal. If a CHARTERED ACCOUNTANT FIRM submits or participates in more than one proposal, such proposals shall be disqualified. However, this does not limit the participation of the same Sub-CHARTERED ACCOUNTANT FIRMs, including individual experts, to more than one proposal.
Proposal Validity
1.12 The Data Sheet indicates how long CHARTERED ACCOUNTANT FIRMs’ Proposals must remain valid after the submission date. During this period, CHARTERED ACCOUNTANT FIRM shall maintain the availability of Professional staff nominated in the Proposal. The Client
will make its best effort to complete negotiations within this period. Should the need arise; however, the Client may request CHARTERED ACCOUNTANT FIRM to extend the validity period of their proposals. CHARTERED ACCOUNTANT FIRM who agree to such extension shall confirm that they maintain the availability of the Professional staff nominated in the Proposal, or in their confirmation of extension of validity of the Proposal, CHARTERED ACCOUNTANT FIRM could submit new staff in replacement, which would be considered in the final evaluation for contract award. CHARTERED ACCOUNTANT FIRM who do not agree have the right to refuse to extend the validity of their Proposals.
2.Clarification and Amendment of RFP Documents
2.1 CHARTERED ACCOUNTANT FIRM may request a clarification of any of the RFP documents up to the number of days indicated in the Data Sheet before the proposal submission date. Any request for clarification must be sent in writing, or by standard electronic means to the Client’s address indicated in the Data Sheet. The Client will respond in writing, or by standard electronic means and will send written copies of the response (including an explanation of the query but without identifying the source of inquiry) to all CHARTERED ACCOUNTANT FIRMs. Should the Client deem it necessary to amend the RFP as a result of a clarification, it shall do so following the procedure under Para. 2.2.
2.2 At any time before the submission of Proposals, the Client may amend the RFP by issuing an addendum in writing or by standard electronic means. The addendum shall be sent to all CHARTERED ACCOUNTANT FIRMs and will be binding on them. CHARTERED ACCOUNTANT FIRMs shall acknowledge receipt of all amendments. To give CHARTERED ACCOUNTANT FIRMs reasonable time in which to take an amendment into account in their Proposals the Client may, if the amendment is substantial, extend the deadline for the submission of Proposals.
3 Preparation of Proposals
3.1 The Proposal (see Para. 1.2), as well as all related correspondence exchanged by the CHARTERED ACCOUNTANT FIRMs and the Client, shall be written in the language (s) specified in the Data Sheet.
3.2 In preparing their Proposal, CHARTERED ACCOUNTANT FIRMs are expected to examine in detail the documents comprising the RFP. Material deficiencies in providing the information requested may result in rejection of a Proposal.
3.3 While preparing the Technical Proposal, CHARTERED ACCOUNTANT FIRMs must give particular attention to the following:
(a) A shortlisted CHARTERED ACCOUNTANT FIRM is not allowed to enter into a joint venture with non-shortlisted or shortlisted CHARTERED ACCOUNTANT FIRM(s). In case of association with non-shortlisted CHARTERED ACCOUNTANT FIRM(s), the shortlisted CHARTERED ACCOUNTANT FIRM shall lead to rejection of the proposal.
(b) The estimated number of Professional staff-months or the budget for executing the assignment shall be shown in the Data Sheet, but not both. However, the Proposal shall be based on the number of Professional staff-months or budget estimated by the CHARTERED ACCOUNTANT FIRMs.
(c) Alternative professional staff shall not be proposed, and only one curriculum vitae (CV) may be submitted for each position.
Language (d) Documents to be issued by the CHARTERED ACCOUNTANT FIRMs as part of this assignment must be in the language(s) specified in the Reference Paragraph 3.1 of the Data Sheet. If Reference Paragraph 3.1 indicates two languages, the language in which the proposal of the successful CHARTERED ACCOUNTANT FIRM will be submitted shall govern for the purpose of interpretation. It is desirable that the firm’s Personnel have a working knowledge of the Client’s national language.
Technical Proposal Format and Content
3.4 Depending on the nature of the assignment, CHARTERED ACCOUNTANT FIRMs are required to submit a Full Technical Proposal (FTP), or a Simplified Technical Proposal (STP). The Data Sheet indicates the format of the Technical Proposal to be submitted. Submission of the wrong type of Technical Proposal will result in the Proposal being deemed non-responsive. The Technical Proposal shall provide the information indicated in the following paras from (a) to (g) using the attached Standard Forms (Section 3). Paragraph (c) (ii) indicates the recommended number of pages for the description of the approach, methodology and work plan of the STP. A page is considered to be one printed side of A4 or letter size paper.
(a) (i) For the FTP only: a brief description of the CHARTERED ACCOUNTANT FIRMs’ organization and an outline of recent experience of the CHARTERED ACCOUNTANT FIRMs Professional staff who participated, duration of the assignment, contract amount, and CHARTERED ACCOUNTANT FIRM’s involvement. Information should be provided only for those assignments for which the CHARTERED ACCOUNTANT FIRM was legally contracted by the client. Assignments completed by individual Professional staff working privately or through
other consulting firms cannot be claimed as the experience of the CHARTERED ACCOUNTANT FIRM, but can be claimed by the Professional staff themselves in their CVs. CHARTERED ACCOUNTANT FIRMs should be prepared to substantiate the claimed experience if so requested by the Client.
(b) (i) For the FTP only: comments and suggestions on the Terms of Reference including workable suggestions that could improve the quality/ effectiveness of the assignment; and on requirements for counterpart staff and facilities including: administrative support, office space, local transportation, equipment, data, etc. to be provided by the Client (Form TECH-3 of Section 3).
(c) (i) For the FTP: a description of the approach, methodology and work plan for performing the assignment covering the following subjects: technical approach and methodology, work plan, and organization and staffing schedule. Guidance on the content of this section of the Technical Proposals is provided under Form TECH-4 of Section 3. The work plan should be consistent with the Work Schedule (Form TECH-8 of Section 3) which will show in the form of a bar chart the timing proposed for each activity.
(d) The list of the proposed Professional staff team by area of expertise, the position that would be assigned to each staff team member, and their tasks (Form TECH-5 of Section 3).
(e) Estimates of the staff input (staff-months of professionals) needed to carry out the assignment (Form TECH-7 of Section 3). The staff-months input should be indicated separately for home office and field activities, and for local Professional staff.
(f)CVs of the Professional staff signed by the staff themselves or by the authorized representative of the Professional Staff (Form TECH-6 of Section 3).
(g) For the FTP only: a detailed description of the proposed methodology and staffing for training, if the Data Sheet specifies training as a specific component of the assignment.
3.5 The Technical Proposal shall not include any financial information. A Technical Proposal containing financial information may be declared non responsive.
Financial 3.6 The Financial Proposal shall be prepared using the attached
Proposals Standard Forms (Section 4). It shall list all costs associated with the assignment, including (a) remuneration for staff (local, in the field and at the CHARTERED ACCOUNTANT FIRMs’ home office), and (b) reimbursable expenses indicated in the Data Sheet. If appropriate, these costs should be broken down by activity and, if appropriate, into local expenditures. All activities and items described in the Technical Proposal must be priced separately; activities and items described in the Technical Proposal but not priced, shall be assumed to be included in the prices of other activities or items.
Taxes 3.7 The CHARTERED ACCOUNTANT FIRM may be subject to local taxes (such as: value added or sales tax, social charges or income taxes, duties, fees, levies) on amounts payable by the Client under the Contract. The Client will state in the Data Sheet if the CHARTERED ACCOUNTANT FIRM is subject to payment of any local taxes. Any such amounts shall not be included in the Financial Proposal as they will not be evaluated, but they will be discussed at contract negotiations, and applicable amounts will be included in the Contract.
3.8 CHARTERED ACCOUNTANT FIRM may express the price of their services in a maximum of three freely convertible currencies, singly or in combination (but preferably in INR). The Client may require CHARTERED ACCOUNTANT FIRMs to state the portion of their price representing local cost in the national currency if so indicated in the Data Sheet.
3.9 Commissions and gratuities, if any, paid or to be paid by CHARTERED ACCOUNTANT FIRMs and related to the assignment will be listed in the Financial Proposal Form FIN-1 of Section 4.
4.Submission, Receipt, and Opening of Proposals
4.1 The original proposal (Technical Proposal and, if required, Financial Proposal; see para. 1.2) shall contain no interlineations or overwriting, except as necessary to correct errors made by the CHARTERED ACCOUNTANT FIRMs themselves. The person who signed the proposal must initial such corrections. Submission letters for both Technical and Financial Proposals should respectively be in the format of TECH-1 of Section 3, and FIN-1 of Section 4.
4.2 An authorized representative of the CHARTERED ACCOUNTANT FIRMs shall initial all pages of the original Technical and Financial Proposals. The authorization shall be in the form of a written power of attorney accompanying the Proposal or in any other form demonstrating that the representative has been dully authorized to sign.
The signed Technical and Financial Proposals shall be marked “Original”.
4.3 The Technical Proposal shall be marked “Original” or “Copy” as appropriate. The Technical Proposals shall be sent to the addresses referred to in para. 4.5 and in the number of copies indicated in the Data Sheet. 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.
4.4 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 (if required under the selection method indicated in the Data Sheet) shall be placed in a sealed envelope clearly marked “Financial Proposal” and 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 be clearly marked “Do Not Open, Except In Presence Of The Official Appointed, Before Bid Submission date and time. The Client 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.
4.5 The Proposals must be sent to the address/addresses indicated in the Data Sheet and received by the Client no later than the time and the date indicated in the Data Sheet, or any extension to this date in accordance with para. 2.2. Any proposal received by the Client after the deadline for submission shall be returned unopened.
4.6 The Client shall open the Technical Proposal immediately after the deadline for their submission. The envelopes with the Financial Proposal shall remain sealed and securely stored.
5.Proposal Evaluation
5.1 From the time the Proposals are opened to the time the Contract is awarded, the CHARTERED ACCOUNTANT FIRMs should not contact the Client on any matter related to its Technical and/or Financial Proposal. Any effort by CHARTERED ACCOUNTANT FIRMs to influence the Client in the examination, evaluation, ranking of Proposals, and recommendation for award of Contract may result in the rejection of the
CHARTERED ACCOUNTANT FIRMs’ Proposal.
Evaluation of Technical Proposals
5.2 The evaluation committee shall evaluate the Technical Proposals on the basis of their responsiveness to the Terms of Reference, applying the evaluation criteria, sub criteria, and point system specified in the Data Sheet. Each responsive Proposal will be given a technical score (St). A Proposal shall be rejected at this stage if it does not respond to important aspects of the RFP, and particularly the Terms of Reference or if it fails to achieve the minimum technical score indicated in the Data Sheet.
Public Opening and Evaluation of Financial Proposals (only for QCBS,
5.4 After the technical evaluation is completed and the IFAD has issued its no objection (if applicable), the Client shall inform the Chartered Accountants Firms who have submitted proposals the technical scores obtained by their Technical Proposals, and shall notify those CHARTERED ACCOUNTANT FIRMs whose Proposals did not meet the minimum qualifying mark or were considered non responsive to the RFP and TOR, that their Financial Proposals will be returned unopened after completing the selection process. The Client shall simultaneously notify in writing CHARTERED ACCOUNTANT FIRMs that have secured the minimum qualifying mark, the date, time and location for opening the Financial Proposals. The opening date should allow CHARTERED ACCOUNTANT FIRMs sufficient time to make arrangements for attending the opening. CHARTERED ACCOUNTANT FIRMs attendance at the opening of Financial Proposals is optional.
5.5 Financial Proposals shall be opened publicly in the presence of the CHARTERED ACCOUNTANT FIRMs’ representatives who choose to attend. The name of the CHARTERED ACCOUNTANT FIRMs and the technical scores of the CHARTERED ACCOUNTANT FIRMs shall be read aloud. The Financial Proposal of the CHARTERED ACCOUNTANT FIRMs who met the minimum qualifying mark will then be inspected to confirm that they have remained sealed and unopened. These Financial Proposals shall be then opened, and the total prices read aloud and recorded. Copy of the record shall be sent to all CHARTERED ACCOUNTANT FIRMs and the IFAD.
5.6 The Evaluation Committee will correct any computational errors. When correcting computational errors, in case of discrepancy between a partial amount and the total amount, or between word and figures the formers will prevail. In addition to the above corrections, as indicated
under Para. 3.6, activities and items described in the Technical Proposal but not priced, shall be assumed to be included in the prices of other activities or items. In case an activity or line item is quantified in the Financial Proposal differently from the Technical Proposal, (i) if the Time-Based form of contract has been included in the RFP, the Evaluation Committee shall correct the quantification indicated in the Financial Proposal so as to make it consistent with that indicated in the Technical Proposal, apply the relevant unit price included in the Financial Proposal to the corrected quantity and correct the total Proposal cost, (ii) if the Lump-Sum form of contract has been included in the RFP, no corrections are applied to the Financial Proposal in this respect. Prices shall be converted to a single currency using the selling rates of exchange, source and date indicated in the Data Sheet.
5.7 In case of QCBS, the lowest evaluated Financial Proposal (Fm) will be given the maximum financial score (Sf) of 100 points. The financial scores (Sf) of the other Financial Proposals will be computed as indicated in the Data Sheet. Proposals will be ranked according to their combined technical (St) and financial (Sf) scores using the weights (T = the weight given to the Technical Proposal; P = the weight given to the Financial Proposal; T + P = 1) indicated in the Data Sheet: S = St x T% + Sf x P%. The firm achieving the highest combined technical and financial score will be invited for negotiations.
6. Negotiations
6.1 Negotiations will be held at the date and address indicated in the Data Sheet. The invited CHARTERED ACCOUNTANT FIRM will, as a pre-requisite for attendance at the negotiations, confirm availability of all Professional staff. Failure in satisfying such requirements may result in the Client proceeding to negotiate with the next-ranked CHARTERED ACCOUNTANT FIRM. Representatives conducting negotiations on behalf of the CHARTERED ACCOUNTANT FIRM must have written authority to negotiate and conclude a Contract.
Technical negotiations
6.2 Negotiations will include a discussion of the Technical Proposal, the proposed technical approach and methodology, work plan, and organization and staffing, and any suggestions made by the CHARTERED ACCOUNTANT FIRM to improve the Terms of Reference. The Client and the CHARTERED ACCOUNTANT FIRMs will finalize the Terms of Reference, staffing schedule, work schedule, logistics, and reporting. These documents will then be incorporated in the Contract as “Description of Services”. Special attention will be paid to clearly defining the inputs and facilities required from the Client to ensure
satisfactory implementation of the assignment. The Client shall prepare minutes of negotiations which will be signed by the Client and the CHARTERED ACCOUNTANT FIRM.
Financial negotiations
6.3 If applicable, it is the responsibility of the CHARTERED ACCOUNTANT FIRM, before starting financial negotiations, to contact the local tax authorities to determine the local tax amount to be paid by the CHARTERED ACCOUNTANT FIRMs under the Contract. The financial negotiations will include a clarification (if any) of the firm’s tax liability in the Client’s country, and the manner in which it will be reflected in the Contract; and will reflect the agreed technical modifications in the cost of the services. In the cases of QCBS, Fixed-Budget Selection, and the Least-Cost Selection methods, unless there are exceptional reasons, the financial negotiations will involve neither the remuneration rates for staff nor other proposed unit rates. For other methods, CHARTERED ACCOUNTANT FIRMs will provide the Client with the information on remuneration rates described in the Appendix attached to Section 4 - Financial Proposal - Standard Forms of this RFP.
Availability of Professional staff/experts
6.4 Having selected the CHARTERED ACCOUNTANT FIRM on the basis of, among other things, an evaluation of proposed Professional staff, the Client expects to negotiate a Contract on the basis of the Professional staff named in the Proposal. Before contract negotiations, the Client will require assurances that the Professional staff will be actually available. The Client will not consider substitutions during contract negotiations unless both parties agree that undue delay in the selection process makes such substitution unavoidable or for reasons such as death or medical incapacity. If this is not the case and if it is established that Professional staff were offered in the proposal without confirming their availability, the CHARTERED ACCOUNTANT FIRM may be disqualified. Any proposed substitute shall have equivalent or better qualifications and experience than the original candidate and be submitted by the CHARTERED ACCOUNTANT FIRM within the period of time specified in the letter of invitation to negotiate.
Conclusion of the negotiations
6.5 Negotiations will conclude with a review of the draft Contract. To complete negotiations the Client and the SP will initial the agreed Contract. If negotiations fail, the Client will invite the CHARTERED ACCOUNTANT FIRM whose Proposal received the second highest score to negotiate a Contract.
7. Award of Contract
7.1 After completing negotiations the Client shall award the Contract to the selected Chartered Accountant Firm. After Contract signature, the Client shall return the unopened Financial Proposals to the unsuccessful CHARTERED ACCOUNTANT FIRM.
7.2 The CHARTERED ACCOUNTANT FIRM is expected to commence the assignment on the date and at the location specified in the Data Sheet.
8.Confidentiality
8.1 Information relating to evaluation of Proposals and recommendations concerning awards shall not be disclosed to the SPs who submitted the Proposals or to other persons not officially concerned with the process, until the publication of the award of Contract. The undue use by any SPs of confidential information related to the process may result in the rejection of its Proposal and may be subject to the provisions of the IFAD’s antifraud and corruption policy.
Instructions to Chartered Accountant Firm
Data Sheet
ParagraphReference
1.1Name of the Client: Uttarakhand Gramya Vikas Samiti (UGVS-)ILSP
Method of selection: A firm will be selected under Quality and Cost Based Selection Method and procedures described in this RFP, in accordance with the procurement rules of Government of Uttarakhand and policies of the International Fund for Agricultural Development (IFAD) detailed in the Guidelines – The Procurement Process by IFAD which can be found at the following website http://www.ifad.org/pub/basic/procure/e/proceng.pdf .
If after technical and financial evaluation two or more firms secure first rank than contract shall be awarded to highest technically ranked firm among such firms. If even after such evaluation two or more firms are ranked first than decision will be taken on the basis of overall experience of the firm and proposed team. The minimum qualifying points are 65% for evaluation of technical proposal. Firms scoring below 65% marks in technical evaluation will not be considered eligible for further evaluation. The decision of Additional Project Director will be final.
1.2 Financial Proposal to be submitted together with Technical Proposal: Yes
Name of the assignment is: Internal Audit of Uttarakhand Gramya Vikas Samiti - ILSP Project for the financial year 2018-19
1.3 A pre-proposal conference will be held: No
1.4 The Client will provide the following inputs and facilities: All information and relevant documents for carrying out the services.
1.6.1 (a) The Client envisages the need for continuity for downstream work:
Yes1.12 Proposals must remain valid 60 days after the submission date
2.1 Clarifications may be requested not later than 7 days before the submission date.The address for requesting clarifications is:
Additional Project Director
Uttarakhand Gramya Vikas Samiti (UGVS) - ILSP
Phase - II Panditwari
Dehradun
Email:[email protected]
Web site: www.ugvs.org
3.1 Proposals shall be submitted in the following language: English
3.3 (a) Shortlisted SPs(C.A Firms) may associate with other shortlisted CHARTERED ACCOUNTANT FIRM or other non shortlisted CHARTERED ACCOUNTANT FIRM/associate : No
3.3 (b) The estimated number of professional staff-months required for the assignment is:
Audit Team Composition & Man days per unit: The audit team must have 3 members consisting at least one full time FCA / ACA ( full time staff or partner), one Semi Qualified Staff (at least C.A. Inter or above) and one Articled Clerk. The expected audit days are 3 days (9 person days) for each divisional unit and 3 days (9 person days) for Head Office. 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.
3.4 The format of the Technical Proposal to be submitted is: STP
3.4 (g) Training is a specific component of this assignment: No
3.5 Amounts payable by the Client to the CHARTERED ACCOUNTANT FIRM under the contract to be subject to local taxation: Yes
The client will (a) reimburse the CA Firm for indirect local taxes (including GST)
and duties as per SCC Clause 1.8 : Yes
(b) reimburse the CA Firm the income tax paid in India on the remuneration for services provided by the non-resident staff of the CHARTERED ACCOUNTANT FIRM : No
3.6 CA Firm to state local cost in the national currency: Yes 4.1 CA Firm must submit the original copies of the Technical Proposal,
and the original of the Financial Proposal.4.2 The Proposal submission address is
Additional Project Director,
Uttarakhand Gramya Vikas Samiti (UGVS)
Integrated Livelihood Support Project
216, Panditwari- Phase II, Dehradun.
Email:[email protected] Web site: www.ugvs.org
Proposals must be submitted no later than the following date and time: Date - January 21, 2019 Time - 3.00 pm
4.6 The submitted proposals will be opened at the proposal submission address on January 21, 2019 Time - 3.30 pm
5.2 Criteria, sub-criteria, and point system for the evaluation of Full Technical Proposals are:
S
No
Criteria Max points
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)
10
2 Experience in Statutory/annual audit in Govt Bodies / PSUs / corporate entities (other than externally aided projects) in the last 5 years:
15
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)
15
4 Experience of Audit of externally aided projects in the last 5 years:
Upto 5 Internal/annual Audits : 15 point each ,
Above 5 Audit (1 point plus for every additional audit, Maximum 25 points)
25
5 Local Presence in Uttarakhand
Branch Office = 10 point, Head Office =25
25
6 Staff Strength(Senior & Junior Auditors)
Up to 10 – 05point
11 to 15 staff – 08 points 15-20 staff – 10 points
10
Total 100
5.6 (i) The minimum technical score (TS) required to pass is: 65%
5.7 The formula for determining the financial scores is the following:Sf = 100 x Fm / F, in which Sf is the financial score, Fm is the lowest price and F the price of the proposal under consideration.
The weights given to the Technical and Financial Proposals are:
T = 0.80 P = 0.20
6.1 Expected date for contract negotiations: January 27, 2019
7.2 Expected date for commencement of consulting services:January 31, 2019
Section 3. Technical Proposal - Standard Forms
Form TECH-1: Technical Proposal Submission Form
[Location, Date]
To:
Dear Sir,
We, the undersigned, offer to provide the services for [Insert title of assignment] in accordance with your Request for Proposal dated [Insert Date] and our Proposal. We are hereby submitting our Proposal, which includes this Technical Proposal, and a Financial Proposal sealed under a separate envelope1.
We are submitting our Proposal.
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.
If negotiations are during the period of validity of the Proposal, i.e., before the date indicated in Paragraph Reference 6.1 of the Data Sheet, we undertake to negotiate on the basis of the proposed staff. Our Proposal is binding upon us and subject to the modifications resulting from Contract negotiations.
We undertake, if our Proposal is accepted, to initiate the consulting services related to the assignment not later than the date indicated in Paragraph Reference 7.2 of the Data Sheet.
We understand you are not bound to accept any Proposal you receive.
We remain,
Yours sincerely,
Authorized Signature [In full and initials]:
Name and Title of Signatory:
Name of Firm:
Address:
1 [In case Paragraph Reference 1.2 of the Data Sheet requires to submit a Technical Proposal only, replace this sentence with: “We are hereby submitting our Proposal, which includes this Technical Proposal only.”]
Form TECH-2: Chartered Accountants firm's Organization and Experience
DETAILS OF CHARTERED ACCOUNTANT FIRMS
1. Name of the Firm :......................................
2. (a) Address of the Head Office : …………………………………………
: …………………………………………
: …………………………………………
(b) 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 2016-17 : …………………………………………
7. PAN of Income Tax : …………………………………………
8. GST No. : …………………………………………
9. Partner’s Details as on 31.03.2018 in the record of ICAI)
S. No.
Partner’s Name, Age & Location
Membership No.
Qualification Experience/Details of Works
Period of Partnership
1
2
3
4
5
10. Details of and Head Office and branches in Uttarakhand:
S. No.
Location/ Address
Since Name of Branch Head
Phone No./Fax No.
Email Address
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 (FY 13-14,14-15,15-16,16-17, 17-18) (Attach full details):
S. No.
Name of Corporate Entities/ Govt. entities, PSUs etc
Name of the State
Financial Year of Audit
Assignment Details in brief
Documentary proof reference page No.
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 (FY 13-14,14-15,15-16,16-17, 17-18) (Attach full details):
S. No.
Name of Corporate Entities/ Govt. entities, PSUs etc
Name of the State
Financial Year of Audit
Assignment Details in brief
Documentary proof reference page No.
iii Details of audit of externally–aided-projects in the last 5 years(FY 13-14,14-15,15-16,16-17,17-18) (Attach full details & justification /proof of externally aided project)-
S. No.
Institution’s/ entity / department
Name of the
Project Name in full
Name of the Donar agency
Financial Year of Audit
Assignment Details
Documentary proof reference page No.
Name ( Name of the institution in full)
State/
in brief
1
2
3
12. 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
14. Comments if any on the TORs:
15. Number of Teams proposed for audit :
16. Details for team proposed
S.N0 Name Qualification Designation Total Work Experience
1
2
3
Note : Attach Photocopy of relevant documents as proof in respect of Points No. 3,4,5,6,7,8,9,10,11 and 13 only. Please attach Xerox copies of letters regarding the assignments carried out in the last 5 years
Date: Seal of the CA Firm Authorized Signatory
Place : Name : ………………………………………
Membership No. : …………………………………
Status: ………………………………………
Mobile No. : ………………………………………
Form TECH-3: Curriculum Vitae (CV) for Proposed Professional Staff
1. Proposed Position [only one candidate shall be nominated for each position]:
2. Name of Firm [Insert name of firm proposing the staff]: ___________________________
3. Name of Staff [Insert full name]: _____________________________________________________
4. Date of Birth: Nationality: _________________________________________________________
5. Education [Indicate college/university and other specialized education of staff member, giving names of institutions, degrees obtained, and Years of obtainment]: _______________
6. Membership of Professional Associations: __________________________________________
7. Other Training [Indicate significant training since degrees under 5 - Education were obtained]: ____________________________________________________________________________________
8. Countries of Work Experience: [List countries where staff has worked in the last ten years]: _________________________________________________________________________________________
9. Languages [For each language (English, Hindi & Marathi) indicate proficiency: good, fair, or poor in speaking, reading, and writing]: ______________________________________________________________________
10. Employment Record [Starting with present position, list in reverse order every employment held by staff member since graduation, giving for each employment (see format here below): dates of employment, name of employing organization, positions held.]:
From [Year]: To [Year]:
Employer:
Positions held:
11. Detailed Tasks Assigned
[List all tasks to be performed under this assignment]
12. Work Undertaken that Best Illustrates Capability to Handle the Tasks Assigned
[Among the assignments in which the staff has been involved, indicate the following information for those assignments that best illustrate staff capability to handle the tasks listed under point 11.]
Name of assignment or project:
Year:
Location:
Client:
Main project features:
Positions held:
Activities performed:
13. Certification:
I, the undersigned, certify that to the best of my knowledge and belief, this CV correctly describes myself, my qualifications, and my experience. I understand that any wilful misstatement described herein may lead to my disqualification or dismissal, if engaged.
Date:
[Signature of staff member or authorized representative of the staff]Day/Month/Year
Full name of authorized representative:
Section 4. Financial Proposal - Standard Forms
[Comments in brackets [ ] provide guidance to the shortlisted CHARTERED ACCOUNTANT
FIRMs for the preparation of their Financial Proposals; they should not appear on the
Financial Proposals to be submitted.]
Financial Proposal Standard Forms shall be used for the preparation of the Financial
Proposal according to the instructions provided under Para. 3.6 Of Section 2. Such Forms
are to be used whichever is the selection method indicated in Para. 4 of the Letter of
Invitation.
Form FIN-1: Financial Proposal Submission Form
Form FIN-2: Summary of Costs
Form FIN-3: Breakdown of Costs by Activity
Form FIN-4: Breakdown of Remuneration (Lump-Sum)
Form FIN-5: Breakdown of Reimbursable Expenses (Lump-Sum)
Form FIN-1: Financial Proposal Submission Form
[Location, Date]
To: [Name and address of Client]
Dear Sirs:
We, the undersigned, offer to provide the consulting services for [Insert title of assignment] in accordance with your Request for Proposal dated [Insert Date] and our Technical Proposal. Our attached Financial Proposal is for the sum of [Insert amount(s) in words and figures1]. This amount is exclusive of the local taxes, which shall be identified during negotiations and shall be added to the above amount.
Our Financial Proposal shall be binding upon us subject to the modifications resulting from Contract negotiations, up to expiration of the validity period of the Proposal, i.e. before the date indicated in Paragraph Reference 1.14 of the Data Sheet.
We understand you are not bound to accept any Proposal you receive.
We remain,
Yours sincerely,
Authorized Signature [In full and initials]: Name and Title of Signatory: Name of Firm: Address: 1 Amounts must coincide with the ones indicated under Total Cost of Financial proposal in Form FIN-2.2 If applicable, replace this paragraph with: “No commissions or gratuities have been or are to paid by us to agents relating to this Proposal and Contract execution.
Form FIN-2: Summary of Costs
Item
Costs
[Indicate Local Currency]
Total Costs of Financial Proposal 2
GST payable in India as defined in Clause 1.8 of SCC.
TOTAL COSTS (Including Taxes and Duties)
1 Indicate between brackets the name of the currency. Maximum of three currencies; use as many columns as needed, and add, delete the others.
2 Indicate the total costs, net of local taxes, to be paid by the Client in each currency. Such total costs must coincide with the sum of the relevant Subtotals indicated in all Forms FIN-3 provided with the Proposal.
Form FIN-3: Breakdown of Costs by Activity
Group of Activities (Phase): Description:
Cost componentCosts
[INR]RemunerationReimbursable Expenses
SubtotalsLocal Taxes and Duties GST payable in India as
defined in Clause 1.8 of SCC TOTAL COSTS (Including Taxes and
Duties)
Form FIN-4: Breakdown of Remuneration1 (Lump-Sum)
(This Form FIN-4 shall only be used when the Lump-Sum Form of Contract has been included in the RFP. Information to be provided in this Form shall only be used to establish payments to the CHARTERED ACCOUNTANT FIRM for possible additional services requested by the Client)
Name2 Position3 Unit Rate/Day
No. of days
Staff
1 Form FIN-4 shall be filled in for the same Professional and Support Staff listed in Form TECH-7.
2 Professional Staff should be indicated individually; Support Staff should be indicated per category (e.g.: draftsmen, clerical staff).
3 Positions of the Professional Staff shall coincide with the ones indicated in Form TECH-5.
4 Indicate separately staff-days rate and currency for home and field work..
Form FIN-5: Breakdown of Reimbursable Expenses (Lump-Sum)
(This Form FIN-5 shall only be used when the Lump-Sum Form of Contract has been included in the RFP. Information to be provided in this Form shall only be used to establish payments to the CHARTERED ACCOUNTANT FIRM for possible additional services requested by the Client):
N°
Description1 Unit Unit Cost2
Dearness allowances including hotel accommodation
Day
Travel 3 Trip
Miscellaneous travel expenses Trip
Drafting, reproduction of reports
Local transportation costs
1 Delete items that are not applicable or add other items according to Paragraph Reference 3.6 of the Data Sheet.2 Indicate unit cost and currency.3 Indicate route of each Train, and if the trip is one- or two-ways.4. TA DA shall be payable on actual basis for district/IA visits as per the directives and
policy decided by CAIM
Section 5 Terms of Reference
1. Background : After the successful implementation of Uttarakhand Livelihoods Improvement Project for the Himalayas (ULIPH), Government of Uttarakhand with support from the International Fund for Agriculture Development (IFAD) is implementing a follow-up project, the Integrated Livelihood Support Project (ILSP).
2. Components: Food security and livelihood enhancement to be implemented by UGVS, will support crop and livestock production for food security, and develop high value cash crops and other products (such as rural tourism, etc.) to provide cash incomes. Crop and livestock production will be developed via support to Producer Groups (PG) and their higher level organizations (Livelihood Collectives- LC) formed by federating number of PGs.. To up-scale enterprises generating cash incomes, and to introduce new income sources, ILSP will also improve access to markets through value chain approach, provision of technical services and physical infrastructures for market access. The value chain approach involves market/sub-sector studies, introduction of new technologies, market linkage, skill development, product development & promotion and physical infrastructure for market access.The project will also improve access to employment in the non-farm sector by supporting vocational training linked to job placement. The complete details about the project and other documents can be viewed on www.ugvs.org ( in document folder). Project implementation Manual (PIM) uploaded on www.ugvs.org contains all details about project implementation.
3. Objectives of the Audit:3.1 The objective of audit is interalia to review /audit operations in , UGVS
HO(PMU) and its Divisional Units to ensure that the implementation internal control system are operating satisfactorily in the project. The internal auditor shall conduct an assessment of the adequacy of the financial management procurement management, project management, risk management to enable the Project Management to take corrective measures, wherever necessary, in a timely manner. The internal auditor shall assess whether expenditure has been incurred for the approved activities, it is according to the prescribed norms and procedure and has been properly accounted and the mandate of UGVS as prescribed by IFAD & State Govt. (copy may be obtained before commencing audit.).
3.2 The objective of internal audit to 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.
3.3 The objective of internal audit to 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.
3.4 The objective of audit is to 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.
3.5 The objective of audit to ensure whether all necessary supporting documents, records and accounts have been kept in respect of all activities.
3.6 The objective of audit to 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.
3.7 The objective of audit to 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.
3.8 The objective of audit to 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.
3.9 The audit should be carried out in accordance with the standard auditing practices prescribed by the Institute of Chartered Accountants of India.
4. Management letter: The auditor will provide a management letter to the client identifying any deficiencies in the project accounting records, procedures, systems, and internal control and make appropriate recommendations for their improvement. The management letter will also include matter as per requirement, if any, of IFAD and other significant matter that comes to the auditor’s attention and might have material impact on project implementation.
5. Extent and coverage of AuditThe Extent and Coverage of internal audit will be as follows:5.1 The internal auditor shall exercise 100% check of awarded contract for
goods and services.5.2 The auditor will vouch 100% of cash payment vouchers, bank statements
and transfer entry vouchers. The cheque payments shall be vouched to cover 100 % of the transactions in each of the months selected.
5.3 Routine errors or omissions or commissions noted during the course of internal audit should be got rectified on the spot.
5.4 Comments on procurement made beyond financial power as per F & AR of UGVS & UPR-2017, if any
5.5 Other tasks which the clients may specifically request.5.6 Guide and get prepared the Bank Reconciliation Statements where
needed.5.7 Preparation of draft financial statement of Federations and ILSP
Livelihood Collectives for the year ended 31st March 2019.5.8 Process Audit and comments thereon: Process audit of DPMU’s and PMU
accounts and comments on the process adopted in procurement, administration, payments, approval, assets and stores maintenance and on other operational matters.
6. Period of Internal Audit: The period of internal audit would be from 1.04.2018 to 31.03.2019, which will be done in three phases as under:
Phases Period of Books of Accounts
Name of Units
Ist Phase Ist April 2018 to 31st Dec 2018
PMU, DPMUs
IInd Phase Ist Jan 2019 tp 31st March 2019
PMU, DPMUs
Internal Audit Report of each phase to be submitted in triplicate (a Soft copy and 2 Hard copies) to Additional Project Director, UGVS
7. Scope of Internal Audit.The scope of audit will include examination/checking of:7.1 Budget as per Approved AWPB7.2 Maintenance of Cash Book/Bank Book/Journal 7.3 Payment vouchers scrutiny7.4 Fixed Assets Register D-2 7.5 Stock Register of Consumables D-47.6 Log Book/History Sheet of Vehicles7.7 Sanctions of higher Authority/PMU for works carried out as per AWPB7.8 AWPB and Monthly Financial progress with MIS 7.9 Measurement Book7.10 Bank Account related to UGVS & its linkages with AWPB achievements.
Receipts and Payment Account 7.11 Comment on the non compliance of Uttarakhand Procurement rules,2017.7.12 List of advance payments to any person/body/ with comments.7.13 Compliance of statutory provisions of law of TDS i.e timely deduction of
TDS & deposit thereof, filing of quarterly E TDS returns & incorrect deduction of TDS.
7.14 Any other relevant matter/issues as may be specified by the Client.7.15 Appraise the economy and efficiency with which resources are employed7.16 Review of operations or programs to ascertain whether results are
consistent with established objectives and goals and whether the operation or programs are being carried out as planned.
7.17 Review of each control and analyzing them in terms of cost and benefits.8. Deliverables
8.1 The auditor report must include their comments/ report on verification in respect of the followings in their final reports.8.1.1 Receipt and payment account (category & component wise,
expenditure wise) showing the original Head Expense wise aggregated figures which must match with the opening & closing and bank balance and cash in hand.
8.1.2 A list of funds drawn from the PMU with dates and amount received. Any remittance in transit on the last week of the period should be separately reported. It is suggested that they should obtain from PMU date wise remittances and verify the receipts ( non entry of any remittance should be pointed out and seriously taken up)
8.1.3 Amount spent on head-wise works executed - a list be attached with broad description of work executed, amount spent, amount yet to be spent, approval of concerned\ authorized person verified ( Y/N) . Following needed to be verified specifically:
8.1.4 Comparisons with approved AWPB and working plan Pending work in progress Broad Groupings like: Buildings, Plant & Machinery, Equipments,
Vehicles: Verify the Asset Register8.1.5 Inventory of articles and material obtained/purchased - major head
wise. Following needed to be verified specifically: Entries in Stock Registers List of Inventory of articles etc in hand at closing with Qty & Value
8.1.6 Break up of any Suspense Account.8.1.7 Any payments made to employees - TDS and other statutory
obligation compliances8.1.8 The following list is also prepared and attached.
List of advance payments to any person/body/or else with comments as on date
List of deposits made and likely date of refund. Amounts received from Third parties if any remaining unadjusted
with comments on its nature. List of outstanding liabilities if any with justification and basis
used. Any services rendered to third parties for which payment is
awaited.9. Auditors will also:
9.1 verify that acceptable accounting standards have been consistently applied and indicate any material deviation from these standards, and the effect of such deviation on the annual financial statements.
9.2 Assess the adequacy of accounting and internal control systems (procedures and responsibilities) for monitoring expenditures and other financial transactions (commitment, review, approval, payment and accounting) and ensuring safe custody of project-financed assets, and document any instances where controls are lacking or need strengthening.
9.3 Determine whether the PMU/DMUs has maintained adequate documentation for all transactions; e.g. procurement documents, contracts, suppliers. invoices, letters of credit and evidence of payment, and ascertain that expenditures were properly authorized and in compliance with legal requirements.
9.4 Verify the numerical accuracy of statements and accounts. 9.5 Verify that disbursement requests for expenditures submitted to IFAD are
eligible for financing under the loan agreement, and identify clearly any ineligible expenditures.
9.6 Carry out a physical verification of any significant assets purchased and confirm their existence and use for project purposes.
9.7 Determine whether the existing system of controls is in harmony with the structure of the organization and is effective.
9.8 Review and comment on the reliability and integrity of financial and operating information.
9.9 Review of the systems established to ensure compliance with those policies, procedures, Laws and regulations which could have a significant impact on operations and reports, and should determine whether the units are complying.
9.10 Review of the means of safeguarding assets, and as appropriate, verify the existence of such assets. The objective of the management is to ensure that assets are reasonably and adequately protected against Loss and that they are properly managed and accounted for. The safeguard of assets should not be restricted to mere pilferage but physical threats like fire etc;
9.11 Appraise the economy and efficiency with which resources are employed;9.12 Review of operations or programs to ascertain whether results are
consistent with desired/expected objectives and goals and whether the operations or programs are being carried out as planned.
9.13 Comments on status of compliance of previous year internal and external audit observations.
10. Internal Audit Reports:The report should be structured in a manner to provide the following: (a) unit-wise report on audit observations highlighting gaps if any (b) implications of the observations; (c) suggested recommendation and remedial actions; (d) implementing unit’s comments/agreed actions and (e) status of actions taken on the previous audit observations. In addition, the internal auditor should prepare and submit a consolidated report, summarizing the individual unit wise reports and highlighting the critical issues which require the immediate attention.
More specifically internal audit report should cover the following:
10.1 Unitwise list of team of auditor10.2 Consolidated Executive summary of the findings in the following format
S.NO
Observations
Priority
Report Para Ref
Repart Para REf
General
PMU
Almora
Bageshwar
Chamoli
Tehri
Uttarkashi
Dehradun
Pithoragarh
Rudraprayag
CPCU
10.3 Reporting on routine financial transactions 10.4 Report on Procurement of goods, works, and services except fixed assets 10.5 Fixed Assets Management :10.6 Advances / settlement of advances/ overdue advances10.7 Stock / Stores Management
10.8 Bank Reconciliation Statements10.9 Funds Management10.10 Sanctions / Approvals10.11 Inter Unit Reconciliation10.12 Physical verification of fixed assets ( Test Check)10.13 Physical verification of cash 10.14 TDS and statutory dues (PF Etc.)10.15 Cases of Fraud and corruption10.16 Tour Registers10.17 Vehicle Log Books10.18 Internal control systems / internal control checks at appropriate level–
Whether due internal controls / due process is followed in operations/ activities / procurement undertaken by the units
10.19 AWPB Vs. Achievements10.20 Others general observations All the points referred above from 10.3 to 10.18 should cover the following
aspects Type of observation Implication Recommendation Management committee / implementing units comments / agreed actions
10.21 List of major procurement (i.e Rs. 1 lac and above) in the following templates
S.no
Description of item/Services
Proc. Method as per UPR
Value of the contract / Po
AWPB ref. No.
Complete delevery/assignment or partial
IFAD Clearance Date
10.22 Status of compliance of previous audits.11. UGVS PMU would inform the DPMUs for providing timely and accurate data,
information, records, personnel, etc. and for extending cooperation to the audit team.
12. The internal auditor has the responsibility to inform Manager HR about commencement of the assignment and problems if any in conducting the assignment.
13. The report and information collected during the internal audit should be treated confidential and should not be divulged to any party other than the Project Director of UGVS.
14. Your firm / partners should not have any disciplinary matters pending with ICAI and they should not have suffered any disqualification.
15. The Audit firm will be responsible for, not reporting serious irregularities / discrepancies / frauds / gross negligence / malafide intention ( with or without financial loss) . Further the client reserves the right to terminate the audit assignment besides notifying such deficiencies and in competencies to the Council of ICAI.
16. Any type of consortium of audit is not permissible.17. You firm shall not sub contract / sublet the audit assignment.
A. Location of Audit and proposed estimated days for audit
S.N Name of Division/DMU Office Location/Audit
Location
Unit Audit Location Estimated Days for
audit
1 UGVS , DPMU Almora Almora 1 UGVS , DPMU Almora 3
2 UGVS , DPMU Bageshwar Bageshwar 1 UGVS , DPMU Bageshwar 3
3 UGVS , DPMU Chamoli Gopeshwar 1 UGVS , DPMU Chamoli 3
4 UGVS , DPMU Tehri Chamba 1 UGVS , DPMU Tehri 3
5 UGVS , DPMU Uttarkashi Purola 1 UGVS , DPMU Uttarkashi 3
6 UGVS , DPMU Pithoragarh Pithoragarh1 UGVS , DPMU
Pithoragarh3
7 UGVS , DPMU Rudraprayag Rudraprayag1 UGVS , DPMU
Rudraprayag3
8 UGVS , DPMU Dehradun Kalsi 1 UGVS , DPMU Kalsi 3
9 UGVS , DPMU Pauri Pauri1 UGVS , DPMU
Rudraprayag3
10 UGVS , HO (PMU Dehradun Dehradun 1 dehradun 3
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.
Section 6. IFAD Policy – Corrupt and Fraudulent Practices
“Fraud and Corruption
It is IFAD’s policy to require that Borrowers (including beneficiaries of IFAD loans), consultants, and their agents (whether declared or not), sub-contractors, sub-consultants, Chartered Accountant Firms, or suppliers, and any personnel thereof, observe the highest standard of ethics during the selection and execution of IFAD-financed contracts [footnote: In this context, any action taken by a consultant or any of its personnel, or its agents, or its sub-consultants, sub-contractors, services providers, suppliers, and/or their employees, to influence the selection process or contract execution for undue advantage is improper.]. In pursuance of this policy, the Fund:
(a) defines, for the purposes of this provision, the terms set forth below as follows:
(i) “corrupt practice” is the offering, giving, receiving, or soliciting, directly or indirectly, of anything of value to influence improperly the actions of another party1;
(ii) “fraudulent practice” is any act or omission, including misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain financial or other benefit or to avoid an obligation2;
(iii) “collusive practices” is an arrangement between two or more parties designed to achieve an improper purpose, including to influence improperly the actions of another party3;
(iv) “coercive practices” is impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party4;
1 For the purpose of this sub-paragraph, “another party” refers to a public official acting in relation to the selection process or contract execution. In this context “public official” includes IFAD staff and employees of other organizations taking or reviewing selection decisions.
2 For the purpose of this sub-paragraph, “party” refers to a public official; the terms “benefit” and “obligation” relate to the selection process or contract execution; and the “act or omission” is intended to influence the selection process or contract execution.
3 For the purpose of this sub-paragraph, “parties” refers to participants in the procurement or selection process (including public officials) attempting either themselves, or through another person or entity not participating in the procurement or selection process, to simulate competition or to establish prices at artificial, non-competitive levels, or are privy to each other’s bid prices or other conditions.
4 For the purpose of this sub-paragraph, “party” refers to a participant in the selection process or contract execution.
(v) “obstructive practice” is
(aa) deliberately destroying, falsifying, altering, or concealing of evidence material to the investigation or making false statements to investigators in order to materially impede an IFAD investigation into allegations of a corrupt, fraudulent, coercive, or collusive practice; and/or threatening, harassing, or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the investigation or from pursuing the investigation, or
(bb) acts intended to materially impede the exercise of the IFAD’s inspection and audit rights;
(b) will reject a proposal for award if it determines that the consultant recommended for award or any of its personnel, or its agents, or its sub-consultants, sub-contractors, services providers, suppliers, and/or their employees, has, directly or indirectly, engaged in corrupt, fraudulent, collusive, coercive, or obstructive practices in competing for the contract in question;
(c) will declare misprocurement and cancel the portion of the Loan allocated to a contract if it determines at any time that representatives of the Borrower or of a recipient of any part of the proceeds of the Loan were engaged in corrupt, fraudulent, collusive, coercive, or obstructive practices during the selection process or the implementation of the contract in question, without the Borrower having taken timely and appropriate action satisfactory to the Fund to address such practices when they occur, including by failing to inform the Fund in a timely manner they knew of the practices;
(d) will sanction a firm or an individual at any time, in accordance with prevailing IFAD’s sanctions procedures, including by publicly declaring such firm or an ineligible, either indefinitely or for a stated period of time: (i) to be awarded an IFAD-financed contract, and (ii) to be a nominated5 sub-consultant, supplier, or Chartered Accountant Firm of an otherwise eligible firm being awarded an IFAD-financed contract.
5 A nominated sub-consultant, supplier, or Chartered Accountant Firm is one which has been either (i) included by the consultant in its proposal because it brings specific and critical experience and know-how that are accounted for in the technical evaluation of the consultant’s proposal for the particular services; or (ii) appointed by the Borrower.
