GOVERNMENT OF JHARKHAND
ULB-NAGAR PARISHAD CAHKRADHARPUR
NAME OF ULB
SELECTION OF CHARTERED ACCOUNTANT /COST ACCOUNTANTFIRMS FOR
INTERNAL AUDIT OF BOOKS & ACCOUNTS OF NAGAR PARISHAD
CHAKRADHARPUR
REQUEST FOR PROPOSAL
NIT No. : : CKP/NP/10/2018-19
Sale/Download of RFP document : 26/12/2018
Submission of Proposal document : 29/12/2018
Opening of Technical Proposals : 31/12 /2018
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GOVERNMENT OF JHARKHAND
URBAN DEVELOPMENT AND HOUSING DEPARTMENT
NAGAR PARISHAD CHAKRADHARPUR
DISCLAIMER
1. Though adequate care has been taken while issuing this RFP, the applicant Chartered
Accountant/ Cost Accountant Firm should satisfy himself that the document is complete
in all respects. Intimation of any discrepancy shall be given to this office (as mentioned
below) immediately. If no intimation is received by this office within 3 days from the date
of issue of the RFP, then this office shall consider that the document received by the
Applicant Firm is complete in all respects and that the Applicant Firm is satisfied that the
RFP is complete in all respect.
2. ULB reserves the right to change any or all of the provisions of this RFP before date of
submission. Such changes would be intimated to all parties procuring this RFP before
date of submission.
3. ULB reserves the right to reject any or the entire Proposal without assigning any reasons
whatsoever. No correspondence will be entertained on this account.
Executive officer
Nagar Parishad Chakradharpur
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GOVERNMENT OF JHARKHAND
NAGAR PARISHAD CHAKRADHARPUR
NIT No.: CKP/NP/10/2018-19
REQUEST FOR PROPOSAL
Selection of Chartered Accountant/ Cost Accountant Firms
For Internal Audit of Nagar Parishad
Name of the Work Chakradharpur
1.
Descriptions and Objectives of the Internal Audit to assist in improving the accountability of use
2.
Assignments Funds and provide a deterrent to malpractice or mismanagement.
3. Language of Documentation English
4. Mode of submission of bids By Speed /Registered Post/By Hand ( Open Tender)
5. Method of Selection "LCS (Least cost Selection method)
6. Total time Period 3 Years
Date of starting of
7. 26 /12 /2018.
Sale/downloading of Tender.
8. Date of Start of Submission of Bids 28/12/2018.
Last Date/Time for submission of
9. 29 /12/2018.(10AM To 05.00PM)
Bids
No of Copies of Tech. and Financial 1 copy of Technical Proposal
10.
Proposal for each package. 1 copy of Financial proposal
DateTime of Technical Bid
11. Opening 31/12/2018. Time
Office of The Nagar Parishad Chakradharpur
Bid Sale/ Submission address Main Road, Chakradharpur, West Singhbum-833102
12.
13. Helpline no. 06587-236974(npchakradharpur@gmail.com)
Rs 5000/-(Five thousand Only)DD in Favour of
Executive Officer Nagar Parishad Chakradharpur
14. Document Fee (Payable at Chakradharpur)
Executive Officer
Nagar Parishad Chakradharpur
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GOVERNMENT OF JHARKHAND
NAME OF ULB Nagar Parishad Chakradharpur
NIT No.: CKP/NP/10/2018-19
Selection of Chartered Accountant/ Cost Accountant Firms for Internal Audit of Nagar
Parishad Chakradharpur
1. The Additional Chief Secretary, Urban Development and Housing Department,
Government of Jharkhand (GoJ), provides guidance to Municipal Corporations, Nagar
Parishad, Nagar Panchayat and NACs in performing their day to day activities in
adherence to the policies, procedures and guidelines provided by the Urban
Development and Housing Department, to achieve effective good urban governance.
2. The Department, in its supervisory role, monitors the functioning of the ULBs against
key parameters such as the tax collections, project and civic works executed, the
implementation of the schemes of the Government, Urban Reform implementation etc.
It also includes the supervision of the regulatory and developmental functions of the
ULBs.
3. The 74th Constitutional Amendment Act, 1992 (CAA) gave constitutional status to
ULBs in India and empowered them to function as local self-governments to provide
good urban governance. One of the many facts of improved good urban governance is
maintaining of complete set of accounting records to ensure accountability and
transparency in all government functions. This necessitates all ULBs to convert their
existing accounting and financial management system to such methods which have
wide acceptance.
4. Subsequent to the 74th Constitutional Amendment, the role and functions of the ULBs
has vastly expanded. The Central and State Governments, as also other agencies, have
been providing the ULBs large sums of money to enable them to effectively discharge
their duties and functions. The national reforms agenda for the urban sector includes
reforms in municipal accounting practices and strengthening of financial discipline. As
a step in this direction, it is proposed to introduce a system of Internal Audit. Internal
audit will assists in improving the accountability of use funds and provide a deterrent
to malpractice or mismanagement.
5. The last date for submission of proposal is 10.12.2018.
6. All communications should be addressed to :( To the Commissioner/ E.O., Name and
Address of ULB)
To,
The Executive Officer.
Nagar Parishad Chakradharpur.
7. Later also, the Financial Bid of Technically qualified bidders will be opened before the
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duly constituted committee at suitable time, date and place and date of opening of
financial bid will be communicated to the technically qualified bidders.
8. The tender shall be submitted in the Office of Executive officer, Nagar Parishad
Chakradharpur and full address of ULB also mention date and time of Tender
submission either by registered post/Speed post or by hand. ULB will not be held
responsible for the postal delay, if any, in the delivery of the document or non-receipt
of the same.
9. Submission of Proposal: Bidders shall submit their proposals at the address and
within the time frame as specified in the RFP.
a. The technical Proposal shall be submitted in a sealed cover super scripted
"Technical Proposal For Internal Audit" with the all documents inside as per list
of document given in RFP.
b. The financial Proposal shall be submitted in a sealed cover superscripted
"Financial Bid for Internal Audit the duly filled in Financial Proposal Formats as
given in RFP.
c. The above mentioned 2 sealed cover shall be kept in an envelope of bigger Size
and shall be properly sealed and super scribed with the name of Firm, its
Address and name of the work as given in the RFP.
10. The undersigned reserves the right to accept or reject all proposals without assigning
any reason. It also reserves the right to postpone or to cancel the invitation and pre-bid
meeting.
Executive officer
Nagar Parishad Chakradharpur
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INSTRUCTION TO BIDDERS
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1. MINIMUM ELIGIBILITY CRITERIA
1.1. Technical capabilities:
1.1.1. Chartered Accountant/Cost Accountant Firm should have more than
5 years of experience of working in the Internal and statutory audit of
Books of Accounts/ABDEAS in ULBs/ other Government sector/PSUs
in India.
1.1.2. The Firm must be registered with ICAI (Institute of Chartered
Accountants of India)/ ICWAI (Institute of Cost &WorksAccountants
of India) and operational in India since last 5 (Five) years from the
date of publish of this RFP and must remain operational thereafter.
1.1.3. The firm should have at least 3 Chartered Accountants and 10 (Ten)
employees including articles on their payroll.
1.1.4. The Firm must not have been blacklisted or Debarred by any state
Govt. /Govt. Agency/PSU/GoI during last three years from time of
submission of tender. The firm must submit an affidavit to this effect
signed by authorized signatory as mentioned in the RFP
1.1.5. Joint venture with other firms is not permitted for this assignment.
1.2. Financial capacity
1.2.1. Average Annual turnover of the Firm from Consultancy services in
last 3 (three) Financial years (2015-16, 2016-17 and 2017-18) must
be equal or greater than 5 Lakhs (Five Lakhs) per annum.
2. LANGUAGE OF THE PROPOSAL :
2.1 Applicant Firms are required to furnish all information and documents, as
called for in this Document, in English Language. Any printed literature
furnished by the Applicant Firm may be in another language, provided that
this literature is accompanied by an English translation, in which case, for the
purpose of interpretation of the document, the English version duly
authenticated will prevail.
3. SIGNING OF THE PROPOSAL :
3.1 The original Proposal shall be printed, typed or written in ink, and shall be
signed by a person or persons duly authorized to sign on behalf of the
Applicant Firm. All pages of the Proposal and where entries or amendments
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have been made shall be initialled by the person or persons signing the
Proposal.
3.2 The Proposal shall ordinarily contain no alterations or additions, except those
to comply with instructions issued by the Department, or as may be necessary
to correct errors made by the applicant in which case the person or persons
signing the Proposal shall initial such corrections.
4. COST OF PROPOSAL :
4.1 The Applicant Firm shall bear all costs associated with the preparation and
submission of its Proposal, including cost of presentation for the purposes of
clarification of the Proposal, if any.
4.2 Department in no case shall be responsible or liable for any such costs
regardless of the conduct or outcome of the bidding process.
5. RIGHT TO ACCEPT/REJECT PROPOSALS:
5.1 The decision of the ULB, regarding the opening of Proposals, evaluation and
acceptance of the Proposal shall be final and binding on all the Applicant
Firms.
6. PERFORMANCE GUARANTEE :
6.1 The successful applicant shall provide a Bank Guarantee amounting to 2% of
the Project amount towards Performance Guarantee in favour of "Executive
Office/Commissioner, of the ULB for the agreement period".
7. SIGNING OF AGREEMENT :
7.1 The successful Applicant Firm will report in the office of ULB, with required
non-judicial paper of appropriate amount, to be purchased from the state of
Jharkhand only, within 15 (fifteen) days, for signing the formal agreement
between the parties.
7.2 The signing of the agreement shall take place only after furnishing of
performance guarantee. The agreement will be signed by the legally
authorized person of the Applicant Firm as stated in RFP. If the applicant fails
to sign the agreement in the specified time period, the performance
guarantee, shall be forfeited.
8. TIME SCHEDULE OF CONSULTANCY:
8.1 The Chartered Accountant/Cost Accountant Firm, thus selected, would be
expected to provide services within the time frame as finalized by the ULB.
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9. GENERAL OUTPUTS AND TIMELINE EXPECTED FROM FIRM :
The assignment is output based .The expected outputs and deliverables for
Chartered Accountant/Cost Accountant Firm would be as below during period of
assignment:
9.1 Quarterly Audit Report including Utilisation certificate for various schemes
should be structured as prescribed in Annexure-2
9.2 Utilisation certificate on cumulative basis for various schemes e.g Central
Finance Commission Grant, State Grant, NULM, SBM, Smart City, Housing
Schemes, AMRUT& Other schemes as may be required during the period of
audit.
9.3 All the above deliverables shall be submitted to Municipal
Commissioner/Executive Officer of concerned ULB in both Hard copy as well
as soft copy (in PDF format).
9.4 The Auditor should report the minor irregularities; wrong calculations etc. to
the ULB immediately after detection so that the same may be get rectified on
the spot.
9.5 The Auditor should submit Quarterly report within 30 days of end of the
quarter positively covering all the irregularities detected during course of the
audit.
10. INFORMATION FOR FIRM FOR SUBMITTING THE PROPOSAL:
10.1 TECHNICAL PROPOSAL
Bidders shall submit the technical proposal in the formats given RFP. While
submitting the Technical Proposal, the Bidder shall, in particular, ensure that:
10.1.1 CVs of all Key Personnel have been included
10.1.2 No alternative proposal for any Key Personnel is being made and CV for
each position has been furnished;
10.1.3 The CVs have been recently signed and dated, in blue ink by the respective
Personnel and Countersigned by the Bidder. Photocopy or unsigned
/countersigned CVs shall be rejected;
10.1.4 The CVs shall contain an undertaking from the respective Key Personnel
about his/her availability for the duration specified in the RFP;
10.1.5 Failure to comply with the requirements spelt out in above Clause shall
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make the Proposal liable to be rejected.
10.1.6 lf an individual Key Personnel makes a false information regarding his
qualification, experience or other particulars, he shall be liable to be
debarred for any future assignment of Urban Development and Housing
Department for a period of 3 (three) years. The award of this Consultancy
to the Bidder may also be liable to cancellation in such an event.
10.1.7 MC/Executive Officer of Nagar Parishad Chaibasa reserves the right to
verify all statements, information, and documents submitted by the
Bidder in response to the RFP.
10.2 FINANCIAL PROPOSAL:
10.2.1 Bidders shall submit the financial proposal in the prescribed format which
is attached in this RFP ("Financial Proposal") clearly indicating the total
cost of the Consultancy, in Indian Rupees. The total amount /Cost will be
considered. It's signed by the bidder's authorized representative. In the
event of any difference between figures and words, the amount indicated
in words shall prevail.
10.2.2 While submitting the Financial Proposal, the Bidder shall ensure the
following:
· All the costs associated with the assignment shall be included in the
Financial Proposal.
· The Financial Proposal shall take into account all expenses and tax
liabilities (Excluding GST).
· Costs shall be expressed in INR.
11. EVALUATION OF THE PROPOSAL (LCS):
11.1 Technical Evaluation: -
Proposals are to be submitted in two covers. Technical covers are opened first and
evaluated. Those securing less than the minimum are rejected and the financial
cover of the rest are opened. The qualified bidders will be intimated about the
opening of price bid. Proposal is to be evaluated in "LCS (Least cost Selection)
Method". Proposal will be evaluated on the basis of Technical & Financial Proposals
submitted by the Bidder. Financial Proposal of only those Bidders will be opened
who have secured a minimum of 70 marks in Technical Evaluation. The Proposals
submitted will be evaluated using the following criteria:
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S. No. Criteria Marks
Firm's General Experience & Experience in similar
1 60
assignments
Manpower strength, experience of Team Leader &other key
2 40
professionals
Total Points- 100
11.1.1 The number of points to be given under each evaluation sub-criteria for firm's
general experience in the field of assignment is:
S.
Description Criteria Marks
No.
General Experience of the firm : Experience Up to 5 Years
0
1 (Bidders must submit incorporation 2.5 marks for each
Maximum
certificate of the firm and work additional Year up to 11
15 Marks
orders/contract Agreement documents) Year.
Experience in similar nature of work:
Up to 3 completed
Number of Completed projects For projects /assignments. 0 Marks
Internal Audit / Statutory Audit of
ULBs/any Central/State Govt. 2.5 mark for each
department Govt/PSUs in the last 5 additional
2
financial years. project/assignment
Bidders must submit work Maximum
orders/contract agreements documents. (Example: - A firm completed 35 Marks
For this purpose one work order will 7 projects will get 10 marks.)
count for one project/assignment
Average Annual Turnover consultancy 0
services during last 3 Financial years will 5 Lakhs
be at least 25 lakhs
1 mark for every
additional 1 lakhs. Maximum
3
(Bidders must submit certificate for 10 Marks
turnover along with Balance Sheet and (Example: - A firm having
P/L A/C. The last three Financial year turnover of 15 Lakhs will get
should be read as FY : 2014-15 and 2015- 10 marks.)
16 and 2016-2017)
Total Marks 60
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11.1.2 The number of points to be given under each evaluation sub-criteria for
competence/experience of key staff for the assignment is: (Pl. attached the
relevant proof)
SI. Position Criteria Marking Maxium
no. Marks
1. Team Leader Minimum 3 years of experience in relevant For3years of 0Marks
Cum Audit field. experience.
Manager (1 2.5 marks
Person) (Bidders must submit experience Certificate) for each
additional
Maximum20
year of
Marks
experience
up to
11Year.
(Example:- A
C.A having
experience
of 7 years
will get10
marks.)
2. Audit Minimum2yearsOfaverageexperienceinrelevant For average 0 Marks
Assistant field 2 yearsOf
(As per (Biddersmust submit experience certificate experience.
requirement ofAuditAssistant.) Maximum
if ULB 5 marks for 20 Marks
required
more than 1 each
Audit additional
Assistant, on year of
that situation Experience
the average up to 6 Year.
experience
of all audit (Example:-
assistant will Audit
Assistants
be consider) having
average
experience
of4 years
will get10
marks.)
Total Marks 40
Grand Total ( Table 11.1.1+11.1.2) 100
Note:-
Chartered Accountant/Cost Accountant Firms who will secure minimum 70 Marks out
of above 100 Marks in Technical Evaluation, will onlyeligible for opening of Financial
Bid.
11.2 PUBLIC OPENING AND EVALUATION OF FINANCIAL BID
11.2.1 Public Opening of Financial Proposals
11.2.1.1 At the public opening of Financial Proposals, Consultant's representatives who
choose to attend will sign on Attendance Sheet.
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11.2.1.2 The marks of each Technical Proposal that met the minimum Mark of 70 will be
read out aloud and their financial proposal will be open.
11.2.1.3 Each Financial Proposal will be checked to confirm that it has remained
sealed and unopened.
11.2.1.4 The ULB's representative will open each Financial Proposal. Such
representative will read out aloud the name of the Consultant and the total price
shown in the Consultant's Financial Proposal. This information will be recorded
in writing by the representative.
11.2.1.5 Evaluation will be done by Procurement Committee, constituted at ULB Level.
11.2.2 Evaluation of Financial Proposals: LCS(Least cost Selection) Method
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12. THE MANDATORY KEY POSITIONS FOR THE ASSIGNMENT: (As per Clause-4 of The
TOR)
S.No. Position Qualifications, Skills and Experience
Team
Leader/Audit
1 Manager 1. Chartered Accountant/Cost Accountant with at least 3 years of
relevant experience;
2. Must have successfully managed & completed at least 1 nos of similar
assignments in Audit of Books and Accounts in Govt. Department.
3. Fluent in Hindi and English ;
4. Proficiency in use of Tally
2 Audit Assistant 1. Commerce Graduate / Article Assistant (CA/Costing Intermediate
completed &1 years of article-ship) with at least 2 years of relevant
Experience
2. Fluent in Hindi/English
3. Proficiency in use of Tally.
13. AMENDMENT OF RFP:
13.1At any time prior to the deadline for submission of Proposal, ULB, for any
reason, whether at its own initiative or in response to clarifications requested
by an Applicant Firm, modify the RFP document by the issuance of Addendum/
Amendment.
13.2In order to afford the Applicant firms a reasonable time for taking an
amendment into account, or for any other reason, the ULBmay, in its sole
discretion, extend the Proposal Submission/Opening Date.
14. PAYMENT SCHEDULE :
Payment shall be made in four equal instalments after submission of quarterly reports.
15. INCOME TAX:
Income tax will be deducted from each bill as applicable and certificate to this effect
shall be issued in due course in prescribed format.
16. GST and other Tax:
The quoted rate should be inclusive of all taxes excluding GST. GST will be paid as per
the current prevailing rates.
17. PRICE:
The rate should be inclusive of all kind of taxes and duties excluding GST. The Firm will
be required to submit justification to substantiate the price break-up of the rate quoted
in price bid.
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18. INSURANCE:
No insurance charge in any shape will be paid by the department. However the Firm
may insure their staff and equipment for damage or loss in transit or during the work,
at their own cost. Department will not be responsible for any loss for the damage to the
equipment or person for any unforeseen reasons.
19. SUBMISSION, OPENING AND EVALUATION OF PROPOSAL
19.1 Submission of Proposal:
The RFP fee along with the Earnest Money and all related documents as
described in RFP should be in a sealed cover which will be received in the office
of:
Name and Full address of ULB with contact no.
Fees:
Cover-1-Technical Proposal
Cover-2- Financial Proposal
In Cover-1, All details as asked in this RFP is to be submitted, The Bid will
be treated as non-responsive if the relevant documents as mentioned in the NIT
is missing.
In Cover-2, duly filled Financial Proposal in the format as given in this
RFP is to be submitted.
The above mentioned sealed covers shall be kept in an envelope of bigger
Size and shall be properly sealed and super scribed with the name of Firm, its
address, as given in the RFP.
20 TOR:
The notes to Chartered Accountant/Cost Accountant Firm, other terms & conditions,
detailed scope of work and TOR shall be part of the Agreement.
21 ADDRESS:
The bidder will have to furnish his full permanent address in the bid document along
with the name of nodal person for this project along with Phone No., Fax No., Mobile No.
and e-mail address. If any letter is sent at the given address by Fax or email or by post
does not reach him or returns undelivered, it will be deemed to have reached to the
bidder, once the letter is posted in post office, sent by email or sent through fax.
22 DURATION OF THE ASSIGNMENT
The duration of the assignment shall be 3 Years.
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23 OTHER TERMS AND CONDITIONS
23.1 The Chartered Accountant/Cost Accountant firm shall abide by the instructions
issued by the ULB to him from time to time for the timely completion of the
assigned services.
23.2 Any entity which has been barred by the Central Government, any State
Government, a statutory authority or a public sector undertaking, as the case
may be, from participating in any project, and the bar subsists as on the date of
Proposal, would not be eligible to submit a Proposal either by itself or through
its Associate.
23.3 An Applicant Firm or its Associate should have, during the last three years,
neither failed to perform on any agreement, as evidenced by imposition of a
penalty by an arbitral or judicial authority or a judicial pronouncement or
arbitration award against the Applicant Firm or its Associate, nor been expelled
from any project or agreement nor have had any agreement terminated for
breach by such Applicant Firm or its Associate.
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TERMS OF REFERENCE
Section-2
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TOR FOR CHARTERED ACCOUNTANT/COST ACCOUNTANT FIRMS
1. INTRODUCTION :
1.1 The 74th Constitutional Amendment Act, 1992 (CAA) gave constitutional status to ULBs
in India and empowered them to function as local self-governments to provide good
urban governance. One of the many facets of improved good urban governance is
maintaining of complete set of accounting records to ensure accountability and
transparency in all government functions. This necessitates all ULB to convert their
existing accounting and financial management system to such methods which have
wide acceptance.
1.2 Subsequent to the 74th Constitutional Amendment, the role and functions of the ULBs
has vastly expanded. The Central and State Governments, as also other agencies, have
been providing the ULBs large sums of money to enable them to effectively discharge
their duties and functions. The national reforms agenda for the urban sector includes
reforms in municipal accounting practices and strengthening of financial discipline. As
a step in this direction, it is proposed to introduce a system of Internal Audit. Internal
audit will assists in improving the accountability of use funds and provide a deterrent
to malpractice or mismanagement.
2. SCOPE OF SERVICES/ WORK
Auditor has to cover the following activity during internal audit of ULB's accounts:
2.1 Internal Auditor should see the compliance of Jharkhand Municipal Act,
Jharkhand Municipal Accounts manual and related rules and regulations as well
as related directives by Department. In its report there must be a separate
section for non-compliance of rules/directives of Department.
2.2 Report on compliance of Jharkhand Municipal Accounting Manual, Jharkhand
Municipal Accounts Rules and Jharkhand Municipal Budget Manual with special
attention to following areas:
· All Receipts to be brought to account
· Collections to be deposited into bank on the same day
· Grant related compliance
2.3 Report and quantify all major Own revenue losses and opportunities lost or missed
including in the area of Property Tax, Rental of Municipal properties, Advertisement
Taxes/Fees, Sairatetc.;
2.4 Check on audit trail of all collection of Taxes and Non-Taxes either through staff or out
sourced agency and report of any lapses in controls, if any and also advise
recommendations to strengthen the prevailing processes;
2.5 Internal auditor shall also report on presence or absence of a system of issuance of
utilisation certificate for the different schemes for any utilisation made during the
reporting period; where there is no system for issuance of UCs, the Internal Auditor
report shall prepare Utilisation Certificate for various schemes/grants as per the
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guidelines of such scheme.
2.6 Internal Auditor shall also, provide support to the ULB management for improve the
internal control system;
2.7 Internal Auditor should report instances of losses, failures or inefficiencies and
recommendations and/or measures which can be taken to avoid their recurrence in
future.
2.8 Internal Audit shall cover all the payment related to contracted works, purchase bills,
advances refund of all kind of work related deposits, all kinds of consultancy fees and
contingent bill of ULB according to the rules and regulation as per Jharkhand Municipal
Act 2011, Jharkhand Municipal Accounts manual.
2.9 Internal Auditors must be well versed with the Municipal Act and Rules enforced in
Jharkhand state before start of the Internal Audit.
2.10 Auditor will ensure in each payment that terms & conditions of tenders and rate offers
should be according to procurement law and policies.
2.11 Auditor will ensure that Expenditure incurred is within the Budget provision allocated
to particular head and prepare a monthly report of head wise budgeted amount,
expended amount and balance amount.
2.12 Auditor will ensure that the fixed deposit and other funds should be in scheduled
banks/Approved financial institutions and should earn maximum interest at their
gestation period.
2.13 Auditor will ensure that all the expenditure i.e. Construction work, Material
Procurement, Electric Bill, Telephone Bill, Diesel, Petrol, Vehicle Bill, House Rent etc. is
advised for payment only after the process of internal audit.
2.14 Auditor will ensure that all the expenditure related with establishment i.e. Salary,
Travel expenditure, travel advance etc. is advised for payment only after the process of
Internal Audit.
2.15 Auditor will ensure that all the revenue receipts should be internal audited and bank
entry should be reconcile with cash & bank book.
2.16 Auditor will ensure that all the sanctioned advances should be internal audited and
then advised for payment to disbursement officer.
2.17 Auditor will ensure that all the security deposit and earnest money deposited in
tender/agreement process should be deposited in the bank immediately. Similarly
refund of these security deposit and earnest money deposit should be made in time.
2.18 Auditor will ensure that all kind of tax deduction i.e. GST, Income tax, provident fund
etc. Should be deducted from the payments as applicable, deposited properly and also
should be properly recorded in appropriate ledgers.
2.19 Auditors will ensure for proper store accounting and physical verification of goods &
materials in every six month.
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2.20 Auditor will ensure preparation of annual Budget and its approval from ULB Board.
2.21 Auditor will prepare bank reconciliation statement monthly with separate reporting on
bank deposit and interest earned.
2.22 Auditor will ensure that all financial reports should be updated monthly in
department's website.
2.23 Auditors shall ensure that all the observation and findings during the course of internal
audit for each ULB should be furnished quarterly/yearly to ULB including detailing
about the compliance reports with pending reports etc.
2.24 Internal Auditor should ensure implementation of accrual based double entry
accounting system in ULB.
2.25 Any other areas/reporting/certification as may be required and directed by ULB.
It is expected that the selected Internal Audit Firm shall follow Standards on Internal
Audit guidelines issued by Institute of CA Firms/Cost Accountant firms of India. (ICAI).
3. ACTIVITIES BASED ON SCOPE OF WORK:
With reference to the scope of work following activities is desired to meet the goal:-
3.1 The firm engaged for Internal Auditor will ensure that all the expenditure and
receipt/income excluding pay & allowances, telephone bill, electricity bill (these
bills will be audited after payment) is transacted only after the process of
Internal Audit.
3.2 The internal auditor shall ensure that all the payment orders are made, bills are
cleared and cheques are issued only after the internal auditor certifies that the
payment is in accordance with the Jharkhand Municipal Act, 2011, Jharkhand
Municipal Manual & Rules, scheme guidelines of instructions, G.Os. Circulars,
Department order.
3.3 The internal auditor shall also ensure that the resolution of Governing Body,
which violates rule or guideline etc., the same shall be immediately brought to
the notice of the concerned Municipal Commissioner/Executive Officer/Special
Officer ULB.
3.4 The internal auditor should be well conversant with Jharkhand Municipal Act,
2011, Jharkhand Municipal Accounts manual & Rules; with all the
schemes/guidelines/circulars, standing instructions, orders issued from time to
time by ULB.
3.5 Objections, if any, shall be raised at single point right in the beginning. The bills
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will be passed only after compliance of all the points raised by the internal
auditor. However, raising fresh queries on the same bill in its subsequent
presentation shall be avoided. The internal auditor should present a summary of
objections raised at to the ULB regularly on a monthly basis.
3.6 It will be the responsibility of the internal auditor to carry out fast, prompt,
accurate and correct internal audit.
3.7 The internal audit should be carried out independently without any pressure
from any of the offices. The internal audit work should be carried out in an
objective, impartial and fair manner.
3.8 The appointment of internal auditor will be made from the date of awarding the
contract and the work of internal audit will start from the date mentioned in the
letter of awarding the contract.
3.9 The internal auditor shall carry out the assignment in accordance with the
highest standard of professional and ethical competence and integrity as
prescribed by the Code of Conduct and Code of the Institute of Chartered
Accountants of India, New Delhi, having due regard to nature and purpose of the
assignment, and shall ensure that the personnel assigned to perform the services
under this Agreement, will conduct themselves in a manner consistent herewith.
3.10 The internal auditor shall certify on all bills/vouchers that such bills/vouchers
are fit for payment.
3.12 Any other areas/reporting/certification as may be required and directed by
ULB.
4. DUTIES AND RESPONSIBILITIES :
As per the scope defined above following methodology is to be carried by the CA /Cost
Accountant firms.:-
4.1 Working at Municipal Corporation :-Minimum of 3 member team should be
deployed at the Municipal Corporation which consist of :
4.1.1 1 CA /Cost Accountant cum team leader/ Audit Manager who is
having experience of 3 years.
4.1.2 1 CA/ Costing Inter/Commerce Graduate qualified staff is having
experience of 2 years in CA/ Cost Accountants firm in internal
audit/other audit.
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4.1.3 Daily visit of 2 semi qualified staff and 4 days visit of Audit
Manager/Team Leader in a week with finalization of internal audit
observation and must be present with attendance records at ULB.
4.2 Working at Municipal Councils/NAC :-Minimum of 2 member team should
be deployed at the Municipal Council which consist of
4.2.1 1CA / Cost Accountant cum Audit Manager qualified who is having
experience of 3 years.
4.2.2 1 CA/ Costing Inter/Commerce Graduate staff is having experience
of 2 years in CA/Cost Accountants firm in internal audit/other
audit.Daily visit of 1 semi quail
4.2.3 Daily visit of 1 semi qualified staff and 2days visit of Audit
Manager/Team Leader in a week with finalization of internal audit
observation and must be present with attendance records at ULB.
4.3 Working at Nagar Panchayat :-Minimum of 2 member team should be
deployed at the Municipal Council which consist of :-
4.3.1 1CA / Accountant cum Audit Manager qualified who is having
experience of 3 years.
4.3.2 1CA/Costing Inter/Commerce Graduate qualified staff is having
experience of 2 years in CA/Cost Accountants firm in internal
audit/other audit.
4.3.3 Visit of 1 semi qualified staff should be ensured for at least 4 days
in a week and 1 day visit of Audit Manager/Team Leader in a week
with finalization of internal audit observation and must be present
with attendance records at ULB.
Note:- As per requirement ULB's may increase the number of Audit Assistant.
5 AUDIT REPORT :
5.1 Quarterly Audit Report/ Annual Audit Report including Utilisation certificate for
various schemes should be structured as prescribed in Annexure-2
5.2 Utilisation certificate on cumulative basis for various schemes e.g. Central Finance
Commission Grant, State Finance Commission Grant, NULM, JnNURM, AMRUT,
Smart City, SBM, Housing scheme & Other schemes as may be required during the
period of audit.
5.3 The Auditor should report the minor irregularities; wrong calculations etc. to the
Municipal Commissioner/Executive officer/Special office immediately after
detection so that the same may be get rectified on the spot.
5.4 Prior to submission of report to SUDA/UD&HD, draft must be shared with ULB
and their comment should be incorporated in final report.
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5.5 All reports and documents shall be submitted to ULB and SUDA/UD&HD should
be duly signed by partner/proprietor of the firm. (Hard copy as well as soft copy
in PDF format).
5. AUDIT REPORT :
5.1 Quarterly Audit Report/ Annual Audit Report including Utilisation certificate for
various schemes should be structured as prescribed in Annexure-2
5.2 Utilisation certificate on cumulative basis for various schemes e.g. Central
Finance Commission Grant, State Finance Commission Grant, NULM, JNNURM,
AMRUT, Smart City, SBM, Housing scheme & Other schemes as may be required
during the period of audit.
5.3 The Auditor should report the minor irregularities; wrong calculations etc. to the
Municipal Commissioner/Executive officer/Special office immediately after
detection so that the same may be get rectified on the spot.
5.4 All reports and documents shall be submitted to UL Band should be duly signed
by partner/proprietor of the firm. (Hard copy as well as soft copy in PDF
format).
6. DELAYS IN THE PERFORMANCE
6.1 Timely submission (within one month from the end of next Quarter) of the
report as per the provision mentioned in the agreement.
6.2 In case of delay in the implementation of the project and/or any delay in
performance during the contract period, the Internal Auditor shall be liable to
any or all of the following actions:
(i) Imposition of Liquidated Damages.
(ii) Forfeiture of performance guarantee.
(iii) Termination of the Contract for default.
6.3 If at any time with respect to commencement of the project as required during
performance of contract the Internal Auditor may face difficulties impeding
timely completion of the project under the contract and/or performance of
services, the Internal Auditor shall promptly inform the department in writing of
the fact of the delay within 24 hours and its causes and likely duration.
6.4 As soon as practicable, after receipt of the Internal Auditor notice, the
department shall assess the situation and may at its discretion extend the time
for commencement and/or performance with or without Liquidated Damages.
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7. LIQUIDATED DAMAGES
7.1 In the event of failure of the implementation of the project by the Internal Auditors per
the provision mentioned in the agreement, the Department reserves the option to
recover liquidated damages, and not by way of penalty, for late implementation from
the Internal Auditor in the following manner:-
Liquidated Damage to be
S.No. Details of delay
charged
For delay up to 25% of the
(i) 2.5% of the Proposal price
implementation Period
For delay of more than 25% and up to
(ii) 5% of the Proposal price
50% of the implementation period
For delay of more than 50% and up to
(iii) 7.5% of the Proposal price
75% of the implementation period.
For the delay more than 75% of the 10% of the Proposal price
(iv)
implementation period (maximum)
7.2 The aforesaid chargeable liquidated damages, if not paid by the Internal Auditor,
would be recoverable under the relevant provisions of Public Damage Recovery Act
1914 by the Department/ULB.
8. DETAILS TO BE KEPT CONFIDENTIAL
8.1 The Internal Auditor shall treat the details of the agreement as private and
confidential, save in so far as may be necessary for the purposes thereof, and
shall not publish or disclose the same or any particulars thereof in any trade or
technical paper or elsewhere without the prior consent in writing of the
department.
8.2 If any dispute arises as to the necessity of any publication or disclosure for the
purpose of the agreement the same shall be referred to the Additional Chief
Secretary, Urban Development and Housing Department, whose decision shall be
final.
8.3 The Internal Auditor or his representative should neither disclose the data nor
sale the data or use it for commercial exploitation or research work without the
written permission of the Principal Secretary, Urban Development and Housing
Department.
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9. DISQUALIFICATION
9.1 ULB, in its sole discretion and at any time during the processing of Proposals, may
disqualify any Applicant Firm from the Proposal process, if:
9.1.1 Firms not meeting eligibility criteria.
9.1.2 Firms made misleading or false representations in the forms, statements and
attachments submitted in proof of the eligibility requirements.
9.1.3 If found to have record of poor performance such as abandoning works, not
properly completing the agreement, inordinately delaying completion, being
involved in litigation or financial failures, etc.
9.1.4 Submitted Proposal which is not accompanied by required documents is non-
responsive.
9.1.5 Failed to provide clarifications related thereto, when sought.
9.1.6 Bidders, who are found to canvass, influence or attempt to influence in any
manner the qualification of selection process, including without limitation, by
Proposing bribes or other illegal gratification shall be disqualified from the
process at any stage.
10 TERMINATION OF THE CONTRACT
10.1 The ULB shall have a right to cancel the agreement if the Internal Auditor commits
breach of any condition. Breach of agreement include, but are not limited to, the
following:
10.1.1 It is found that the time schedule of implementation of the scheme is not being
adhered to,
10.1.2 The Internal Auditor stops work & such stoppage has not been authorized by
theULB.
10.1.3 The Internal Auditor may become bankrupt or goes into liquidation,
10.1.4 The ULB gives notice to correct a particular defect/irregularity and the Internal
Auditor fails to correct such defects/irregularity within a reasonable period of
time determined by the ULB,
10.1.5 In case the Internal Auditor fails to carry out the instructions/orders issued by
the ULB from time to time during the currency of the agreement and fails to
comply with the laws applicable in the State.
10.1.6 The Internal Auditor fails to deliver any or all of the obligations within the time
period(s) specified in the agreement, or any extension thereof granted by ULB.
10.1.7 Because of breach of agreement by the Internal Auditor for any of the above
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reasons, the ULB shall have the right to terminate the agreement and forfeit the
security deposit and invoke the performance bank guarantee.
11 DISPUTE RESOLUTION
11.1 The ULB and the Internal Auditor shall make every effort to resolve amicably by
direct negotiations, any disagreement or dispute, arising between them under
agreement.
11.2 If after 30 days from the commencement of such direct negotiations, the dispute
is not resolved it shall be referred to Deputy Commissioner of concerned ULB
District, where decision shall be final and binding upon both parties.
11.3 Pending the submission of and/or decision on a dispute, difference or claim or
until the matter is decided by Deputy Commissioner of concerned ULB District,
the Internal Auditor shall continue to perform all its obligations under this
agreement without prejudice of final adjustment in accordance with such award.
11.4 The ULB may terminate this agreement, by giving a written notice of termination
of minimum 30 days, to the Internal Auditor, if the Internal Auditor fails to
comply with any decision delivered by Deputy Commissioner of concerned ULB
District.
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FORM FOR TECHNICAL BID
Form T 1
Office Of The Nagar Parishad Chakradharpur
To,
MC/EO
Address
Dear Sir/Madam,
We, the undersigned, offer to provide the consulting services for............. [Insert title of
assignment.] In accordance with your Request for Proposal dated..............
[Insert Date]. We are hereby submitting our Proposal, which includes this Technical Proposal,
and a Financial Proposal sealed under a separate cover.
We are submitting our Proposal in individual capacity without entering in association
with or as a Consortium. 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 held during the period of validity of the Proposal, i.e., before the date
indicated in the Data Sheet, we undertake to negotiate on the basis of the proposed personnel.
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 the Data Sheet (Please indicate date). We
understand you are not bound to accept any Proposal you receive.
We remain,
Yours sincerely,
(Signature of authorized signatory of
Chartered/Cost Accountant Firm and
seal)
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Form T 2
BIDDER DETAILS
1 Name of Firm
2 Date of incorporation of the Firm
3 (a) Address of bidder
(b) Phone no:
(c) Fax no.
(d) E mail
(e) Website
4(a) Name of authorized signatory to bid
(b) Designation
(c) Phone (Landline/ Mobile)
(d) Fax
(e) Email
5 PAN of Firm
6 GST Registration No
7 ICAI/ICWAI Empanelment/ Registration number
8 Name, address, Tel No. Fax, email at which
communication to be sent in respect of bid
9 Names of the present Proprietors/ Partners/Board of
Directors
(Signature of authorized signatory of
Chartered/Cost Accountant Firm and seal)
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Form T 3
1. Similar Assignment Undertaken for the last five years
A. Departments of State/Central Government/PSUs/Other Govt.
Undertaking /ULBInternal Audit/ULB Accounting/ULB
AuditExperience
Was the
Agreement
Assignment Assignment
Name
Name of the No./Work Professional
Sl. No. Fees (Amount successfully
Department Order No. & in Rs.)
completed
Date
(with date)
A B C D E F
(Signature of authorized signatory of Chartered/Cost Accountant Firm and seal)
Note: Please attach copies of the work order/contract issued by competent
authority from the client/ work compilation certificate in support of documentary
proof.
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Form T- 4
FINANCIAL STRENGTH OF THE CHARTERED/COST ACCOUNTANT FIRM
Year Turnover (Rs. in Lakhs)
2017-18
2016-17
2015-16
Note:-Pl. attach Audited financial statement for respective years.
(Signature of authorized signatory of Chartered/Cost Accountant Firm
and seal)
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Form T 5
FORMAT OF CURRICULUM VITAE(CV) FOR PROPOSED KEY STAFF(Team Leader, Audit Manager
and Audit Assistant)(Please enclosed the supporting documents)
1. Proposed Position:
2. Name of Staff:.........................................................................................................
3. Date of Birth:..........................................................................................................
4. Nationality:............................................................................................................
5. Educational Qualification:
6. Membership of professional Associates:
7. Publications:
8. Employment Record:
(List all positions held by staff member since graduation, giving dates, names of employing organization,
title of positions held and location of assignments. For experience period of specific assignment must be
clearly mentioned along with certificate for the Team Leader,).
9. Summary of the CV
(Furnish a summary of the above C V. The information in the summary shall be precise and accurate. The
information in the summary will have bearing on the evaluation of the CV.)
9.1 Education:
(i) Field of Graduation and Year
(ii) Field of post-graduation/ Professional and year
(iii) Any other specific qualification
9.2 Experience
(i) Experience in Urban Development Sector: .............................Years.
(ii) Experience in other Govt. Department/ PSU/Bank etc.: .................Years
(iii) Total Experience: .............................Years
9.3 Permanent Employment with the Firm (Yes/No): If yes, how many years:
If no, what is the employment: Arrangement with the firm?.
Certification:
1. I am willing to work on the project and I will be available for entire duration of the project assignment
and I will not engage myself in any other assignment during the agreement of his assignment on the
project.
2. I, the undersigned, certify that to the best of my knowledge and belief, this bio-data correctly describes
myself, my qualification and my experience
Signature of the Candidate
Place
Date
Signature of the Authorised Representative of the firm
Place
Date
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Form for Financial Bid
FORM FIN-1
[Location, Date]
Name of ULB .................................................
To, MC/EO
Dear Sir /Madam,
We, the undersigned, offer to provide the consulting services for [Insert name of
Assignment] in accordance with your RFP dated [Insert Date] and our Technical Proposal.
Our attached Financial Proposal is for the sum of Rs..................... (In
word.........................................)
This amount is exclusive of the GST.
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 the Data Sheet.
No fees, gratuities, rebates, gifts, commissions or other payments have been given or
received in connection with this Proposal.
We understand that, you are not bound to accept any Proposal you receive.
Yours sincerely,
(Signature of authorized signatory of
Chartered/Cost Accountant Firm and seal)
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ANNEXURE 1: CHECKLIST
Preliminary Checklist for Bidders for Qualification Criteria
A. All the forms as mentioned in the table below have to be submitted by the firm in order to
qualify in qualification criteria.
S.
Document
No.
1 RFP Document Fee, (If downloaded from the site)
2 Processing Fee/ EMD (As asked in RFP)
3 Certificate of Incorporation /Empanelment with ICWAI and ICAI (As asked in RFP)
4 Declaration of not being blacklisted / debarred
5 Audited Balance Sheet for last 3 years (As asked in RFP)
6 Auditor certified Profit Loss Statement for last 3 years
7 Annual Turnover Certificate (As asked in RFP)
All Technical Forms (Form TECH 1 to TECH 7, including work experience in form of
8
completion certificates)
8.1 FORM TECH 1
8.2 FORM TECH 2(Pl. enclose relevant supporting documents)
8.3 FORM TECH 3(Pl. enclose relevant supporting documents)
8.4 FORM TECH 4(Pl. enclose relevant supporting documents)
8.5 FORM TECH 5(Pl. enclose relevant supporting documents)
9 Financial Form
9.1 FIN 1
10 Service Tax Registration No(Pl. enclose relevant supporting documents)
11 PAN (Pl. enclose relevant supporting documents)
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ANNEXURE-2
Internal Audit Report of (Name of ULB),
for the period from________________to________________
Internal Audit conducted by
___________________________________
___________________________________
___________________________________
(Write names of Auditors)
Report Issued on_____________
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Introduction
Executive Summary
· Name of the ULB
· Period covered under current audit
· Name of Municipal Commissioner/Executive officer/Special Officer for the
period under Audit
ResultsandFindings
· Strengths observed during the audit engagement.
· Weaknesses observed in the functioning of office, maintenance of record setc.
observed during the audit engagement.
· The comment sunder the two categories should summarize reach significant
Audit observation in the order of materiality. The summary should be as brief as
possible and draw on the observation under the Para on Consequence/ Effect/
Impact of each Audit observation. It should also include a summation no
foutstanding statutory and internal audit observations.
Opinion
· Overall opinion of Audit Team about the functioning of ULB.
Audit Recommendations
· The recommendations of Audit Team on the observed weaknesses. This could be
presented in a box of highlighted print.
Comments from Management
· This should also include local management's action plan for resolution of the
issues and compliance to the internal auditor's recommendations and
suggestions on the areas of process and control weakness/ deficiency.
Acknowledgement
· This section could acknowledge in brief the cooperation, acceptance of the
criteria/ findings and recommendations by the ULB(or otherwise). The
observations should be stated in a factual and not in the form of an opinion.
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Detailed Audit Report
1. Introduction
The Internal audit of (Name of ULB.................) covering the period from
to was conducted by following persons under guidance of
Chartered/Cost Accountant Firm _:
i. Shri ________________________
ii. Shri ________________________
2. Administration
The present body of the ULB has taken charge on __________________.The
incumbency in the key administrative and executive positions were as under:
Shri _________________,May or From ______________to____________Shri
__________________,Commissioner/Executive Officer From ________________ to______
3. Reviewofoutstandingauditparas:StatusofAuditObservationsisasunder:
Total No. of
Audit Paras Total No Total No.
where Total No. of
of Audit of Audit Total No. &
Particulars Total necessary outstandin
S. Paras Paras Amount dated of
of audit No. of improvemen g para
where where of complia
No and date of Audit t where no
recovery recovery Recover nce
report Paras. action has
/corrective of cash is has been y report
been taken
measure is proposed made
required
1.
4. Finance
I. Budgetary provisions and expenditure for the last three years
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Year 20 xx 20 xx 20 xx
Final/ Revised Budget
Actual Expenditure
Savings(+)/Excess(-)
II. Volume of transactions
Correspondin Cumulative
Previous
g Period of Current for the
Period Budgeted Year (For
Previous Period current
one year)
Year Year
Opening
balance
Receipts
Total
Net
expenditure
Closing
balance
III. Bank reconciliation
(Instructions: Simply write "Reconciled and balances tallied "if
reconciliation done satisfactorily. Report the difference in balances
where they differ).
IV. Revenue Receipts
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Correspond
Previous Cumulative
ing Period Current
Period Budgeted Year (For for the
of Previous Period
one year) current year
Year
Own source
Property Tax
Assigned Revenue
Others (Fee & User
Charges)
(b) Administrative
grant
V. Status of implementation of Double Entry Accounting System
VI. Status of Municipal Accounts Committee; if meeting is held
5. Audit Observations
I. Part-A
All Audit objections/ irregularities which has monetary implication,
particularly in following are as
A. Leakage of own source revenue either due to wrong
assessment or non-levy of property tax, mobile tower tax, rent
on municipal properties, advertisement tax, fee etc.
B. Excess payment against bill, lack of prudence in payment
against voucher, inefficiency in controls resulting loss to ULBs.
C. Report on findings of field survey of Property Tax of minimum
20 high value properties
II. Part-B
All Audit objections/ irregularities which has nomonetary implication,
but significant violation of Act, Rules & directives of UD&HD. Mention
the reference to Act & Rules where in remedial measures required. In
this part auditor should report in respect of
A. Non-maintenance of books of accounts, subsidiary registers
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B. Irregularity in procurement process
C. Non-compliance of directives by UD & HD,GoJ
D. Non-compliance of Act & Rules
E. Lack of internal control measures
F. Non-compliance of TDS,GST and other relevant Statute
G. Deficiency in pay-roll system
H. Utilisation of Grant and report on missing Utilisation
Certificates
I. Physical verification of inventory/ stores
J. Advances, their adjustment & recovery
K. Any other matters as may be prescribed in due course.
III. Part-C
General Observations: Auditor should report the deficiencies noticed
during their audit and recommend ULB management to improve
internal systems.
Each Audit Observation under Part-A should be structured as described below
Audit Objective: To which Audit Engagement objective does this
observation relate?
Criteria: What should exist? The rules/ regulations/ procedures/
expectations are the basis against which Audit evidence is compared.
Condition: What exists? The condition identifies the nature and extent of
deviation from the criteria i.e. deviation from what should exist. This should be
supported by factual evidence. A statement of condition would be formed on the
basis of Auditor's comparison of actual evidence against the appropriate criteria.
Consequence/ Effect/ Impact: What effect did it have? The effect establishes the
actual or potential impact of the condition and can be both quantitative and
qualitative. It is the likely effect/ impact which would determine the significance of
the condition.
Cause: Why did it happen? The possible or likely reason for the difference
between the expected and actual condition.
Corrective Action/ Recommendation: What should be done? The actions
suggested or required to correct the situation and prevent future occurrences.
Wherever possible, the audit findings should be accompanied by graph sand
charts to improve the visibility of the analysis and findings. Photographs could also
be used as corroborative evidence.
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References: This section should list all material utilized and referred to in
developing the Internal Audit Report.
×××
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