Expression of Interest (EOI) Consulting Firms
Project Name National Cyclone Risk Mitigation Project (NCRMP) II
State Project Director, SPIU, NCRMP II
Relief and Rehabilitation Department
Office of Director - Disaster Management
Government of Maharashtra
Address:
1st floor Main building, Near Mantralaya Control Room,
Mumbai-400 032
Tel: +91-22-22026712
E-mail: pmncrmpmaha@gmail.com
Selection of Consultancy Firm for Project Internal Audit for NCRMP-
Assignment Title
II Maharashtra
Reference No. IN-RRD-MAH-2645-CS-CQS
Date 14/11/2018
I. Consulting Firm Information (Eligibility Criteria)
Details Required Particular Furnished Document Required
Consultant Name: Registration
Certificate
Country of Incorporation: Registration
Independent legal existence Certificate, Copy of
and should be registered in Partnership deed,
India under the applicable Copy of Registration
Act. with ICAI
Year of ICAI Firm Constitution
Incorporation Certificate
Pan no. Pan Card
GST no. GST Registration
certificate
CAG Empanelment Proof of CAG
with Major Audits Empanelment
2017-18
Number of years in ICAI Firm Constitution
the profession Certificate
Annual Turnover Year 2017-18 Rs Audited Financial
Statements
Year 2016-17 Rs
Year 2015-16 - Rs
Experience of having Brief Details (assignment name, Experience Certificate
undertaken at least 5 similar year and cost of assignment to and self-attested
internal audit assignments be provided):- copies of contract
with central / state Agreements/work
governments / international Experience -1 details orders
donor funded projects in the
last 5 years.
Experience -2 details
Experience -3 details
Experience -4 details
Experience -5 details
The firm shall have a Name and number of Partners ICAI Firm Constitution
minimum 5 full time chartered and CA employee. Certificate
accountants employed with
the firm. The break up details Partner 1
in terms of (i) Partners of Firm
i.e. number of full time Partner 2
chartered accountant partners
(ii) employee chartered Partner 3
accountants.
Partner 4
Partner 5
Others
Number of Full time Partners
Number of Employee Chartered
Accountant
Address of office in Mumbai, ICAI Firm Constitution
Maharashtra Certificate
Must not be debarred/ A self - certificate to be attached
blacklisted by any state / in the enclosed format
Central government or World
Bank or International
Financial Institution
Deceleration as to not guilty A self - certificate to be attached
of any professional and/or in the enclosed format
other misconduct under the
provisions of the Chartered
Accountants Act, 1949
II. Assignment Specific Qualifications and Experience
Your EOI shall demonstrate technical competence and geographical experience based on project
references.
A. Management Competence (Please answer each question in one paragraph)
A.1 Do your Firm has clearly defined quality management policies & procedures
A.2 How will you address all components mentioned in the Scope of Work?
A.3 What is your Audit plan and Sampling plan Methods for designing and selection of audit sample,
performing procedures and evaluation of sample results and preparation of internal audit plan?
A.4 Is your Methodology outlined is as per Standards of Internal Audit issued by ICAI, New Delhi?
A.5 Do the implementation of the main activities/tasks of the assignment is realistic and implementable,
their content and duration, phasing and interrelations, milestones (including interim approvals by the
Client) clearly laid out?
A.6 What is the Tentative delivery dates of the reports. Is the proposed work plan consistent with the
technical approach and methodology?
A.7 Give details of Organization and Staffing - The structure and composition of team, including the list
of the Key Experts, Non-Key Experts and relevant technical and administrative support staff is detailed?
B. Technical Competence
Highlight the technical qualifications of your entity/consortium in undertaking similar assignments.
Provide details of past experience working with similar project authorities.
B1 - Firm's specialisation in Internal Audit/ Concurrent Audit of Government & externally
aided projects (Number of projects)
B1a- Give details as to Expertise & experience in Internal Audit/Concurrent audit of externally aided
project
B1b - Give details as to Expertise & experience in Internal Audit/Concurrent audit of government
projects/PSU
B1c - Give details as to Expertise & experience in Internal Audit/Concurrent audit of Infrastructure project
in government sector
Give details as to Firm's specialization in Procurement Audit of Government & externally aided
projects (Number of projects).
B2a - Expertise & experience in all spheres of procurement Audit of externally aided projects
B2b - Expertise & experience in all spheres of Procurement Audit of government project
B2c - Expertise & experience in all spheres of Procurement Audit of Infrastructure projects
B3d Give details as to other experiences-
C. Geographical Experience
Cross-referencing the selected from your profile projects, present experience in similar geographic areas.
(Experience in Maharashtra to be highlighted)
D. Other Information
E. Project References
Please select most relevant projects to demonstrate the firm's technical qualifications and geographical
experience.
Period Client Project Country Firm
III. Comments on Terms of Reference
VI. Key Considerations in approaching this assignment
VII. Key Experts
List experts that you propose to deploy for this assignment, attach their CVs to EOI attachment.
Highlighting Qualification, Experience in handling internal audit assignments, Experience in procurement
audit assignments and Regional Experience.
Name Email Consultant Status Firm
VIII. EOI Attachments (Please put all the documents in sequence)
Title Type Description Category Page Number
IX. Eligibility Declaration
We, the undersigned, certify to the best of our knowledge and belief:
We have read the advertisement, including the terms of reference (TOR), for this assignment.
Neither the consulting firm nor its associate or any of its experts prepared the TOR for this
activity.
We confirm that the project references submitted as part of this EOI accurately reflect the
experience of the specified firm/ consortium.
We further confirm that, if any of our experts is engaged to prepare the TOR for any ensuing
assignment resulting from our work product under this assignment, our firm and the expert(s) will
be disqualified from short-listing and participation in the assignment.
All consulting entities and experts proposed in this EOI are eligible to participate in World Bank, -
supported and administered activities.
The lead entity and associates are NOT currently sanctioned by any International Financial
Institutions (IFIs). Neither the consulting firm nor the associates has ever been convicted of an
integrity-related offense or crime related to theft, corruption, fraud, collusion or coercion.
We understand that it is our obligation to notify World Bank should any member of the consortium
become ineligible to work with World Bank or other MDB or be convicted of an integrity-related
offense or crime as described above.
Associate/s, including all proposed consultants named in this EOI, have confirmed their interest in
this activity in writing.
Associate/s, including all proposed consultants named in this EOI, have confirmed their eligibility
to participate in this activity in writing.
Associate/s, including all proposed consultants named in this EOI, have authorized us in writing
to represent them in expressing interest in this activity.
None of the proposed consortium are subsidiaries of and/or dependent on the Executing or the
Implementing Agency or individuals related to them.
We understand that any misrepresentations that knowingly or recklessly mislead, or attempt to
mislead may lead to the automatic rejection of the proposal or cancellation of the contract, if
awarded, and may result in further remedial action, in accordance with World Bank's Policy.
Seal & Signature of the authorized Representative with Dates
Name of the Firm
Terms of Reference
Project Internal Audit Services
National Cyclone Risk Mitigation Project- II- Maharashtra Component
1. Introduction
1.1. Project Background
The Government of India has initiated the National Cyclone Risk Mitigation Project
(NCRMP) with a view to address cyclone risks in the country. The overall objective of
the Project is to undertake suitable structural and non-structural measures to mitigate
the effects of cyclones and other hydro meteorological hazards in the coastal
States/UTs of India.
The National Cyclone Risk Mitigation Project (NCRMP) is pioneer project drawn up by
Ministry of Home Affairs (MHA) Government of India (GOI) to be implemented in 13
cyclone prone coastal states/UTs with World Bank assistance. In Maharashtra, the
project will be implemented in Coastal Districts i.e. Thane, Ratnagiri, Sindhudurg,
Raigad, Mumbai Suburban. The focus of the Program is to reduce vulnerability to
cyclone and other hydro-meteorological hazards through construction of Multipurpose
Cyclone Shelters (MPCS), Strengthening of Saline Embankment and Underground
Cabling works.
The Project Development Objective (PDO) is to reduce vulnerability to cyclone and
other hydro-meteorological hazards of coastal communities in project states, and
increase the capacity of the state entities to effectively plan for and respond to disasters.
The key objectives of the Project are as follows:
Reduction in cyclone vulnerability of coastal states, through creation of appropriate
infrastructure which can help mitigate the adverse impacts of cyclone
Strengthening of cyclone warning systems enabling quick dissemination of warnings
and advisories from source/district/sub-district level to the community and vice
versa for their timely reception and adequate response.
1.2. Project Components
The project has the following four components :
Component A: Early Warning Dissemination Systems (EWDS)
The installation of an EWDS based on Satellite, Radio, Internet and Global System
for Mobile Communication (GSMC) based technologies, including strengthening State
Emergency Operation Centres (SEOCs) to send the warning through different
communication channels directly to the village level. Providing satellite
phones/alternative technology to key officials to fail proof the EWDS and also expand
a new radio based wireless communication technology in selected blocks in each state;
Component B: Cyclone Risk Mitigation Infrastructure
This component is to increase the preparedness and reduce the vulnerability of coastal
communities through strategic infrastructure investments, i.e., improving their
capacity/access to emergency shelter. The portfolio of risk mitigation infrastructure
under this component includes a broad range of investment such as Multipurpose
Cyclone Shelters, Underground Electric cabling, strengthening of saline embankments
in the state.
Component C: Technical Assistance for Multi-Hazard Risk Management
This component will improve the quality of available information on multi-hazard risks
for decision making, and strengthen multi-hazard risk management at a national level.
The PMU-NDMA will be the nodal agency for this component. The components will
be included the activities such as Coastal Multi-Hazard Risk Modelling and Assessment,
Strengthening Emergency Recovery Capacity, Enhancing the Capacity for Disaster Risk
Management and Response in Non-Coastal States, Hydro-Meteorological Resilience
Action Plans, Design of a National Seismic Risk M Hydro-Meteorological Resilience
Action Plans
Component D: Project Management and Implementation Support
This component will support the incremental operating costs of the Project
Management Unit (PMU) and the State PIUs
1.3. Proposed Implementation/ Funds Flow Arrangements:
The NCRMP shall be coordinated by a central Project Management Unit (PMU) set up
at NDMA. Department of Relief and Rehabilitation, Government of Maharashtra is the
State Project Implementation Unit (SPIU). The SPIU will coordinate with NDMA,
World Bank and other external agencies involved. The Department of Relief and
Rehabilitation, Government of Maharashtra will coordinate with the line agencies, i.e.,
PWD (coastal engineer), Saline Embankment (Superintendent Engineer), MSEDCL
(Chief Engineer) of the State Government which will be implement civil works under
the Project. Rest works under the project will be implemented by the Department of
Relief and Rehabilitation, Government of Maharashtra. The external aid disbursed by
the World Bank will be first received by the Central Government. Expenditure under
the project will either be made centrally at the SPIU through Treasury System and / or
through Separate Bank Account opened exclusively for this purpose. SPIU making
payments will maintain regular books of account and records as per the prescribed
procedures.
2. Objective of the Internal Audit
The objective of the internal audit is to determine whether the Project management
arrangements including procurement, financial management, and physical progress
monitoring and internal control mechanisms are working effectively. The auditor shall
also identify areas for improvement and enhancing efficiency.
This should include aspects such as adequacy and effectiveness of accounting, financial,
procurement related and other operational controls, and any needs for revision; level of
compliance with established policies, plans and procedures; reliability of accounting
systems, data and financial reports; methods of remedying weak controls or creating
them where there are none; verification of assets and liabilities; and integrity, controls,
security and effectiveness of the operation of the computerized system.
The internal auditor shall provide the SPIU with timely information and
recommendations on the financial management, procurement,
project management and physical progress aspects of the Project to enable the
management to take corrective measures, wherever necessary.
3. Scope of Audit Services, Tasks and expected Deliverables.
3.1 Scope of Audit Services
The audit will be carried out in accordance with applicable professional standards & will
include such tests & controls, as auditors are considered necessary under the
circumstances. In conducting the audit special attention should be paid to the
following:
A. Procurement
Whether goods, works and services are being procured following the procurement
procedures defined for the Project (Project Guidelines and the guidelines internal to
SPIU)
Whether goods, works and services are being procured in accordance with the
procurement plan and sanctioned budgets
Whether time schedule for procurement of goods, works and services is in line with
the Project Procurement Plan
Whether required documentation for procurement activity and contract management
is being maintained for all purchases made.
Whether capacities for procurement as indicated in the operations manual have been
created
B. Financial Management
Whether books of accounts are being maintained in the manner and formats defined
by the Financial Management Manual of the Project
Whether the financial transactions are being accurately and completely recorded
Whether utilization certificates and FMRs submitted are prepared in time and reflect
the correct status of utilization of funds as recorded in the books of accounts of the
Project
Whether the fund management is being done in compliance with Financial
management guidelines of the Project.
Whether funds have been used with due regard to economy, efficiency and for the
purposes they were provided.
Whether release of money is adequately supported.
Special emphasis may be laid on items like:
Timely and accurate preparation of Bank Reconciliation Statements
Maintenance of separate accounts for NCRMP
Timely and accurate preparation of financial reporting statements
Surplus funds lying unutilized for long
Financial records and registers being maintained
Disbursement of funds to the third parties
Understand the process of tagging and maintenance of assets acquired under the
Project.
The auditors may perform physical verification of assets (if considered necessary)
Whether capacities for financial management as indicated in the operations manual
have been created
Physical and Financial Outlay of NCRMP II Maharashtra to be audited is attached as
annexure 1
C. Project Management
Whether the physical progress tracking mechanism defined for the Project has
been operationalized.
Whether physical progress reports being submitted have been reviewed for
their correctness and authenticity before submission
Whether physical progress reports are being submitted as per the timelines
and formats defined by the Project tracking framework.
D. Other Institutional aspects
Whether appropriate internal controls as specified by the Financial Management Manual,
Operations Manual, Procurement Manual and other relevant notifications, if any, are
operating satisfactorily. The auditor should suggest methods for improving weak controls
or creating them where need be.
Verifying compliance with recommendations of the earlier audit reports and commenting
thereon
Deviations (if any) from Project guidelines have been reported to the SPIU in time and
requisite approvals obtained
Any other issues that the Project Internal Auditor considers as important for management
attention.
4. Reporting and Audit Opinion
The internal auditor should review and assess the analysis drawn from the internal audit
evidence obtained as the basis for his conclusion on the efficiency and effectiveness of
systems, processes and controls. Each report shall have the following sections:
Introduction- Objective, scope, nature and coverage of the audit including period
covered, locations reviewed, work carried out, staff involved, level of coverage of all
listed aspects
The internal auditor's opinion as to the overall adequacy of the systems of internal
control,
Key findings; separately for Financial Management, Procurement, Project Management
and Others.
Detailed internal audit findings, with adequate descriptions of weaknesses identified and
the associated risk. This section will be supported with details, tables, annexure.
Recommendations; separately for Procurement, Financial Management, Project
Management & Institutional Aspects and Others.
Responses to findings and recommendations by authorized persons stating the timeline
for remediation and the person responsible
Progress on earlier set of recommendations and constraints faced.
An Executive Summary highlighting the critical issues preferably classified as per
thematic area. The report should be discussed and agreed with the auditable units and
should be structured to list the observations, the implications of the observations, the
suggested recommendation and the management comments/agreed actions. The audit
observations should be supported by instances and quantified, as far as practicable.
Copies of all internal audit reports shall be made available to the external auditors.
5. Timeline for Audit and Period of Contract
The auditor will commence the audit immediately after appointment and complete the audit as
per the reporting requirements and time schedule for deliverable. The semi-annual internal audit
report will be addressed to the Project Director at the SPIU and the copies will be provided to
the NDMA.
The audit will be done as follows
1st internal audit report April 17 to Sep 17
2nd internal audit report Oct 17 to March 18
3rd internal audit report April 18 to Sep 18
4th internal audit report Oct 18 to March 19
Component B - Audit to be done at SPIU office and site visits as requried. Number of sites to be covered
would be decided by SPIU based on award of contract for each package
Multipurpose Cyclone Shelters(MPCS)
1st MPCS internal audit report April 18 to Sep 18
nd
2 MPCS internal audit report Oct 18 to March 19
Underground electrical Cabling (UGC)
1st UGC internal audit report April 18 to Sep 18
2nd UGC internal audit report Oct 18 to March 19
Saline Embankment
1st Saline Embankment internal audit report April 18 to Sep 18
2nd Saline Embankment internal audit report Oct 18 to March 19
The scope of the initial contract under this assignment will cover a period of 2 audit years till
31st March 2019. Subject to satisfactory performance of the auditor and subject to additional
funds being available under the project, the contract may be considered for extension till
project closure on 31 March 2020.
6. Composition of Review Committee to Monitor Internal Auditor's Works
The following officers will be on the committee to monitor Internal Auditor's Report:
1. Secretary, Relief and Rehabilitation, Government of Maharashtra
2. Chief Engineer from respective Implementing Agencies
3. Executive Director, MSEDCL Underground Cabling
4. Project Director/Project Manager, NCRMP-II
5. Any other
The Committee will review the audit report and send the action taken report to the funding
agency.
7. Support/Inputs to be provided by the SPIU
The internal auditor will be given access to all legal documents (Financing Agreement,
Project Appraisal Document), Project Procurement Plan, and any other unclassified
information associated with the Project and deemed necessary by the auditor. It is extremely
important that the auditors become familiar with the Project Guidelines on Disbursements
and Procurements. All these documents will be provided to the auditor by the SPIU/PMU.
8. Qualification and Team Composition
The Internal Auditor team must have considerable experience and expertise in conducting audits
particularly on infrastructure development projects. The Consultants should also have
experience in the process and audit practices of World Bank assisted projects. The list of
professional required are given in the table below, only CV's and experience of key experts will
be evaluated for selection purpose:
Key Experts
S.no Profes Description of Services Estimated Man
Experience
. sionals to be provided Days
1 Partne Overall coordination, & Qualified Chartered Accountant with at 26
r/ planning, team least 15 years' experience as a partner
Team leadership, reporting, with expertise in internal audit
Leader liaison with client procurement audit, auditing in PSU,
government and infrastructure sector,
audit planning, execution and
reporting. Experience of procurement /
procurement audit of externally aided
fund is desirable.
2 Audit Responsibility to lead Qualified Chartered Accountants with 26
Manag the audit teams in the at least 6-7 years' experience in
er 1 field, planning and internal audit,auditing in PSU,
execution of the audits, government and infrastructure sector
discussion with heads with ability to lead a team and interact
of offices at district / with senior level government officials.
state units and Experience of procurement /
reporting writing and procurement audit of externally aided
finalization. fund is desirable.
3 Audit Responsibility to lead Qualified Chartered Accountants with 18
Manag the audit teams in the at least 6-7 years' experience in
er 2 field, planning and internal audit, auditing in PSU,
execution of the audits, government and infrastructure sector
discussion with heads with ability to lead a team and interact
of offices at district / with senior level government officials.
state units and
reporting writing and Experience of Procurement /
procurement audit of externally aided
finalization.
fund is desirable.
4 Audit Responsibility to lead Qualified Chartered Accountants with 15
Manag the audit teams in the at least 6-7 years' experience in
er 3 field, planning and internal audit auditing in PSU,
execution of the audits, government and infrastructure sector
discussion with heads with ability to lead a team and interact
of offices at district / with senior level government officials.
state units and
Experience of procurement /
reporting writing and
procurement audit of externally aided
finalization.
fund is desirable.
Non Key Expert
5 Audit Supporting in execution Semi Qualified Chartered Accountant ( 146
Assista of the audit as per the CA Inter/CA Final) with at least three
nt audit plan. years of experience in auditing.
9. Frequency and Time Lines for conducting the internal audit
At the beginning of each year, an assessment would be made by SPIU of the work being
executed based on the Procurement plan. Based on this assessment, SPIU will prepare a
draft internal audit calendar detailing the scope, coverage and frequency of review. This audit
calendar would be reviewed by the Project Director of the PIU and forwarded to the Project
Director, PMU for inputs (if any). Based on the inputs provided, the internal audit coverage
would be finalised for the PIU and the PMU for the year.
The guidelines for finalizing the internal audit coverage are as follows:
- The audit should cover at least 50% of the expenditure incurred by the SPIU during the
year.
- The audit coverage should be decided considering the need for follow up audits at locations
where significant observations have been reported previously.
- The audit calendar to also include certain works/line departments where there is significant
delay in utilization of funds released.
10. Reporting Requirements and Time Schedule for Deliverables
A. Deliverables
a. Component A, C and D - Audit to be done at SPIU office, Relief and Rehabilitation
Department, Mantralaya Mumbai (Maharashtra)
Reporting requirement against Period to be covered Timeline for submission of
deliverables under audit report
1st Internal Audit report 1st April 2017 to 30th
September 2017
Draft report for discussion with SPIU Within 45 days from date of
appointment
Final report - discussed and agreed with Within 60 days from date of
the auditable unit appointment
nd
2 Internal Audit report 1st October 2017 to
31st March 2018
Draft report for discussion with SPIU Within 60 days from date of
appointment
Final report - discussed and agreed with Within 75 days from date of
the auditable unit appointment
3rd Internal Audit report 1st April 2018 to 30th
September 2018
Draft report for discussion with SPIU Within 30th October 2018
Final report - discussed and agreed with Within 15th November 2018
the auditable unit
st
4th Internal Audit report 1 October 2018 to
st
31 March 2019
Draft report for discussion with SPIU Within 30th April 2019
Final report - discussed and agreed with Within 15th May 2019
the auditable unit
All report to be submitted in original in 2 copies along with soft copy. 1 copy for SPIU and 1 copy for NDMA.
b. Component B - Audit to be done at SPIU office and site visit as required. Number of sites to
be covered would be decided by SPIU based on award of contract for each package
Reporting Activity Total Implementing Number of Time line
requirement No. of agency sites to be
against area/S audited
deliverables ites each half
year
2 Half yearly a. Multipurpose 13 Public Works Number of Draft report for
audit reports in Cyclone Department sites to be discussion with
Financial Year Shelters(MPCS) Harbor Division covered Implementing agency
2018-19 for sites b. Underground 3 Maharashtra would -within 30 days from
electrical Cabling State Electricity decided by close of Half year
(UGC) Distribution SPIU based
Corporation Ltd on award Final report -
c. Renovation of 8 Kharland of contract discussed and agreed
Saline Development for each with the
Embankments Corporation, package Implementing agency
(SE) Water within 45 days from
Resources close of half year
Department
All report to be submitted in original in 3 copies along with soft copy.
1 copy for SPIU, 1 copy for Implementing agency and 1 copy for NDMA
Annexure 1 - Physical and Financial Outlay of NCRMP II Maharashtra
Project Component No. / Area of Implementing Agency Total Cost
sites (INR crore)
Component A - Early Warning Dissemination System 26.60
Component B - Cyclone Risk Mitigation Infrastructure 339.00
a. Multipurpose Cyclone 13 Public Works Department 39.00
Shelters(MPCS) Harbor Division
b. Underground electrical 3 Maharashtra State Electricity 200.00
Cabling (UGC) Distribution Corporation Ltd
c. Renovation of Saline 8 Kharland Development 100.00
Embankments (SE) Corporation, Water Resources
Department
Component D - Project Implementation Support 32.35
TOTAL 397.95
Component C - Technical Assistance for Multi-Hazard Risk Management Direct funding by
GoI based on the
Training Plan and
Budget outlay
proposed by State
Governments
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