Request for Proposal
(RFP)
For appointment of Concurrent Auditor for 8
District Health Societies (DHSs) for Audit of all
programmes under NHM including flexible pools
of NRHM-RCH, NUHM, NDCP and NCD.
FY 2019-20
National Health Mission
Jharkhand Rural Health Mission Society, Jharkhand
GVI Campus, Tata Road, Namkum Ranchi-10
Checklist for submission:
Please ensure submission of the following checklist as a part of the technical proposal. All mentioned
documents are required as a part of the bid. In case any document is not submitted, the bid is liable to be
rejected.
Requirement Submitted? Page No.
(Yes/No)
TECHNICAL PROPOSAL
Letter of Transmittal (Form T-1)
Details of the Firm along with Details of Partners
(Form T-2)
Brief of relevant experience (Form T-3)
Bid submitted for Groups (Form T-4)
A self-attested copy of Certificate issued by ICAI for firm
existence, no. of partners
Proof of branch presence in the state with duration as per
ICAI certificate.
Self-attested copy of Certificate of ICAI/ICWAI for each
qualified staff
Copy of the Financial Statements for the last three years
alongwith income tax return for each year
Copy of appointment letters from the concerned auditee
organizations for experience
An undertaking on the Letter head of the firm signed by a
Partner of the firm regarding non-blacklisting
Checklist
FINANCIAL PROPOSAL
Financial bid as per Form F-1.
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Request for Proposal (RFP) for Concurrent Auditor
Jharkhand Rural Health Mission Society (JRHMS) seeks to invite proposals from CA firms meeting the
minimum eligibility criteria for the concurrent audit of associated 8 District Health Societies-one in each
district of the State and all Blocks thereunder implementing various programs under the National Health
Mission, Jharkhand, for the financial year 2019-20.
Details w.r.t background of the auditee, units to be covered in audit, scope of work, terms of reference,
and the eligibility criteria for selection of the firms are given below:-
Section I
Background
National Rural Health Mission (NRHM) of the Ministry of Health & Family Welfare (MoH&FW) was
launched on 12th April, 2005 by the Government of India to improve medical facilities in the country.
From 2013-14 onwards the NRHM programme has been subsumed under the umbrella programme of
National Health Mission. NHM is overarching NUHM and includes Communicable and Non-
Communicable Diseases (NCD) as well. The NHM seeks to provide accessible, affordable and quality
health care to the population, especially the vulnerable sections. It also seeks to reduce the Maternal
Mortality Ratio (MMR) in the country from 167 to 100 per 1,00,000 live births, Infant Mortality Rate
(IMR) from 40 to 30 per 1000 live births and the Total Fertility Rate (TFR) from 3.0 to 2.1.
2. One of the visions of the Mission is to increase public spending on health from 1.3% to 2-3% of
GDP, with the improved arrangement for community financing and risk pooling. The NHM has
provided an umbrella under which the erstwhile Reproductive and Child Health Programme (RCH),
various National Disease Control Programmes (NDCPs) and Non-Communicable Disease
Programme (NCDs) have been repositioned. National Urban Health Mission (NUHM) has also been
added as sub-mission of National Health Mission.
3. At present the following Programmes/Schemes come under the purview of National Health Mission:
A. NHM-RCH Flexible Pool:
· RCH Flexible Pool including Routine Immunization (RI), Pulse PolioImmunization
(PPI) and National Iodine Deficiency Disease Control Programme (NIDDCP)
· Health System Strengthening (HSS) under NRHM including National Programme
for Prevention and Control of Deafness (NPPCD), National Oral Health Programme
(NOHP), National Programme for Palliative Care (NPPC), Assistance to State for
Capacity building (Burn Injury), National Programme for Fluorosis (NPF).
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B. National Urban Health Mission (NUHM) Flexible Pool.
C. Flexible Pool for Communicable Diseases:
National Vector Borne Disease Control Programme (NVBDCP),
Revised National Tuberculosis Control Programme (RNTCP),
National Leprosy Eradication Programme (NLEP),
Integrated Disease Surveillance Project (IDSP).
D. Flexible Pool for Non-Communicable Diseases:
National Programme for Control of Blindness (NPCB),
National Mental Health Programme (NMHP),
National Programme for Health Care of the Elderly (NPHCE),
National Tobacco Control Programme (NTCP),
National Programme for Prevention and Control of Cancer, Diabetes,
Cardiovascular Diseases and Stroke (NPCDCS).
4. Institutional and Funding Arrangements:
For the implementation of the above programmes, MoH&FW has mandated the creation of an
Integrated Health Society at State and District levels registered as legal entities under Societies
Registration Act, 1860. Such integrated State Health Society (SHS) works in close coordination with
the Directorate of Health & Family Welfare and the District Health Societies (DHSs) work in
coordination with the District Collector and District Chief Medical Officer (CMO). Program
implementation is done through its District Chief Medical Officer's office, Blocks, Community
Health Centres (CHCs), Primary Health Centres (PHCs), Sub- Centres (SCs), Rogi Kalyan Samities
(RKS) and Village Health Sanitation & Nutrition Committees (VHSNC). Certain activities are
managed at the State level such as drug procurement, IEC, civil works, training using specialized
entities such as SIHFW, IEC Bureau, PWD, the Directorate of Health and Municipal Corporations
for the urban health components. In addition funds are also released from SHS/ DHS to NGOs and
private entities under Public Private Partnership (PPP) arrangements.
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Funding & Accounting Arrangements:
Funds for the various programs are transferred from Pay & Accounts Office of MoH&FW to the
State Treasuries and thereafter from the Treasuries to the SHS functioning in the State. Government
of India transfer funds in the form of Grants-in-Aid to the SHS on the basis of respective State
Programme Implementation Plan (SPIPs) and approved Annual Work Plans prepared on the basis of
District Health Action Plans (DHAP) of each of the districts in the State. Under the umbrella of the
integrated SHS/DHS, each program maintains separate bank accounts, books of accounts and other
financial records as per the requirements of each program and also submits separate financial activity
reports at varying frequencies to the respective monitoring unit in MoH&FW, GoI.
5. Financing by Development Partners/ Donors:
Some of the programs of NHM are also supported by development partners such as the Asian
Development Bank (ADB), DFID, UNFPA, GFATM/World Bank etc. for which credit agreements
have been entered into by GoI with the respective development partners. Compliance with specific
fiduciary requirements of the development partners will additionally need to be reported upon by
the Concurrent Auditors. Copies of the legal agreements and other project documents will be
provided to the Auditors, if required, by the SHS/ concerned Programme Division in the State.
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Section II
Objectives of Audit:
The objective of Concurrent Audit would be:-
a. Ensuring accuracy and timeliness in maintenance of books of accounts;
b. Tracking of advances, follow up and settlement on priority basis;
c. Guarding against advances being shown as expenditure in the FMRs;
d. Ensuring accuracy in the preparation of monthly/quarterly Financial Monitoring Reports, based
on books of accounts;
e. Ensuring voucher/evidence based payments;
f. Ensuring timely and accurate submission of financial MIS to the management;
g. Improving accuracy and timeliness of financial reporting from State, District & sub-District
levels; and
h. Improving internal control mechanism of the society.
i. Undertaking field visits to the Districts 1 Blocks with increased focus on institutions below
District level.
A number of sub-district entities like Block CHC/PHC, PHC, RKS, Health Sub-Centre, in the same
order of priority, may be selected by the State/ District Health Society for field visit on a monthly /
quarterly basis, and its observations would be incorporated in the respective audit report.
Financial Statements:
The Auditors shall submit the monthly financial Statements. A format of such financial statements and
relevant schedules showing the details of report of all the programmes shall be provided by the State
HQ.
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Section III
Minimum Eligibility Criteria:
I. The firm must be empanelled with ICAI, without which the application of the firm would not be
considered.
II. Intending firms must have Head/Branch Office in the state of Jharkhand for being eligible to
participate in the bidding process.
Ill. Intending firms must meet following other criteria:
Sl. No Particulars Minimum Criteria
1 The firm must be empanelled with ICAI As on 01-01-2019/date
2 Average annual turnover in last three years Rs. 10 Lakhs
Not less than 3 years as on
3 Firm's existence (in number of years)
1.1.19 (cut-off date)
Experience of Statutory/ Concurrent audit of NHM OR
Externally/Internally aided projects OR social sector projects
4 OR Govt org. OR Banks since 1.4.2016 (other than audit of 2 assignments
charitable institutions & NGOs) in the State of Jharkhand upto
date of submission of bid
Firms not meeting the above minimum criteria need not apply as their proposal shall be
summarily rejected.
Supporting Documents for Eligibility Criteria:
Following documents must be submitted by the firm along with the technical proposal:
A. For 1 & 3 above, the firms must submit attested copy of Certificate issued by ICAI.
B. For Sl. No. 2 (table), the firms must submit a copy of the Financial Statements for the last three
years alongwith income tax return for each year.
C. For Sl. No. 4 (table), the firms must submit a copy of appointment letters from the concerned
auditee organizations.
D. The firms or any partners of the firms should not be black listed by the Central Govt./any State
Govt/any PSU/any other govt organisation in respect of any assignment or behaviour/attitude. An
undertaking on letter-head of the firm is to be submitted in this regard.
Non-Eligibility:
Firms appointed as Concurrent auditors for the years 2017-18 & 2018-19 will not be eligible for
appointment for FY 2019-20. Firms which have been selected for Concurrent Audit of Group 1, 3, 5 & 6
under RFP no 9/RCH-85/18-2142 (RCH) dated 29.05.2019 are not eligible to apply under this RFP.
Hence such firms need not apply.
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Section IV
Terms of appointment & selection of the Auditor
Districts have been divided into two groups of four districts each for the purpose of Concurrent
Audit for the year 2019-20, as per table below:
Group 2 Group 4
Giridih Palamu
Deoghar Garhwa
Dumka Latehar
Godda Chatra
Bidders are required to submit bids for any group, as a whole. Bidders may apply for both
groups, however, one bidder will be assigned only one group based on scoring pattern detailed
later. In case a bidder secures highest score in both groups, least cost model shall be applied i.e.
allocation of groups shall be made so as to reduce the overall cost for National Health Mission,
Jharkhand.
At District level, the concurrent auditor appointed once can be retained / re-appointed for a
maximum term of two financial years i.e. current year and next year. However, the Contract
would be awarded for only one financial year at a time and may be renewed for the next financial
year only on the basis of review of the auditor's performance by the State Office.
JRHMS reserves the right for allotment of marks of financial and technical evaluation on the
basis of previous year's performance, in case a Bidder applies for any district/s of which it was
the Concurrent auditor for any previous year.
It will be the responsibility of the auditor to prepare financial statements of the allotted districts
on a monthly basis as well as consolidated reports of DHSs including blocks on a quarterly basis
which will have to be submitted to JRHMS.
Concurrent Auditor will be required to take care of TDS return preparation & e-filing on a
quarterly basis, TDS certificate issuance and other related works in a timely manner.
A record of the visiting audit team shall be maintained at the concerned facility and a certificate
has to be obtained in support of its visit indicating the name & designation of the team members
and the date/period of visit, from the head of that facility.
Audit reports should be submitted on a monthly basis. In case of delay in submission of the audit
report without adequate justification, 10% of the stipulated monthly fees will be deducted as
penalty for each month of delay. Part of a month shall be taken as full month for the purpose of
deduction of penalty.
The audit reports should also cover qualitative issues emerging from the audit other than the
financial statements.
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Checklists should be thoroughly filled and each aspect should be adequately elaborated.
Observations reported on accounting and internal control issues should be properly detailed and
substantiated.
An executive summary should be incorporated in each report providing information on aspects
like quality of FMRs, maintenance of books of accounts, advances, compliance with audit
observations etc.
The reports at both the State and District level should include consolidated report of RCH,
Additionalities under NHM, Immunization and NDCPs. In addition, it should also include
instances of misappropriation/unauthorised diversion of funds as noticed during the audit.
Action Taken Report submitted by the District Accounts Manager should be vetted by the
concerned Concurrent Auditor and sent alongwith his observations to the Director (Finance)
within 30 days of completion of the audit. These reports should indicate the actions to be taken
emerging from the latest audit reports including responsibility of implementation and timelines
as well as provide the current status on the past observations. Auditor's fees shall be released
only after ATR has been received by Director (Finance) of the State. Indicative format of
ATR is as under:
Para.No. Observation Action to be Responsibility Timeline Current
taken to implement agreed Status
Key Timelines
The key timelines which need to be adhered to are summarized below:
Activity Timeline
Carrying out concurrent audit Monthly
Submission of Audit Report by Auditor to DHS/JRHMS 10th of the next month
Submission of soft copy of District Concurrent audit report 10th of the next month
to the Director (Finance) at state level
Submission of hard copy of District Concurrent audit 15th of the next month
reports to the JRHMS
Submission of soft copy of the consolidated executive Quarterly- by 20th of the first month of
summary & Action Taken Report to the Mission Director, the next quarter
MOHFW
Submission of the executive summary report by the Quarterly by 25th of the first monthof
JRHMS to Centre the next quarter
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Remuneration
Audit fee will be paid by JRHMS on quarterly basis for District/Blocks Audit, only after
receipt of monthly audit report and ATRs and on the basis of specific work completed by the
audit firm.
In case the appointment does not happen within the first quarter the fees would be
appropriately reduced as per the decided scope and coverage.
Coverage:
The District Concurrent Auditors should ensure that all DHSs & all blocks thereunder are covered
during the year.
For districts comprising upto 12 blocks, auditor needs to ensure that at least one block is
physically visited every month so as to cover all the blocks over the year. For districts comprising
consisting more than 12 blocks, auditor needs to ensure that every block is physically visited at
least once during the year.
The audit plan should include a visit to at least 50% PHCs/ CHCs, 3 sub-centres and 5 VHSNCs
located within the block selected for visit. The State/District may decide to increase the scope for
the same.
Contents of Audit Report:
Concurrent Audit Report of a "District Health Society" should contain the following financial
statements and documents:
Duly filled in Checklist & Executive Summary provided in the guidelines.
Financial statements as prescribed:
Audited Trial Balance
Audited Receipts & Payments A/c
Audited Income & Expenditure A/c
Balance Sheet
Audited Statement of Expenditure
Bank Reconciliation Statement
List of advances
Observations and Recommendations of the auditor (including observations on
blocks visited)
Action Taken by District Health Society on the previous audit observations, along
with his observations on the same
Executive summary report.
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Section V
Guidelines for Submitting the Proposals& Evaluation of Bid:
A. General Guidelines:
Eligible firms are required to submit the proposal (RFP) in two separate & sealed cover/envelops duly
superscribed on Top as proposal for........................ & Last date....................as per the guidelines
and formats detailed out in the following paras:
i. The original and all copies of the Technical Proposal shall be placed in a sealed envelope
clearly marked "TECHNICAL PROPOSAL" Similarly, the original Financial Proposal
shall be placed in a separate sealed envelope clearly marked "FINANCIAL
PROPOSAL" followed by the name of the assignment and with a warning "DO NOT
OPEN WITH THE TECHNICAL PROPOSAL." The envelopes containing the
Technical and Financial Proposals both shall be placed in another envelope and sealed.
This envelope shall bear the address, reference number and title of the Assignment, and
be clearly marked "DO NOT OPEN, EXCEPT IN PRESENCE OF THE OFFICIAL
APPOINTED". The Society shall not be responsible for misplacement, loss or
premature opening if the outer envelope is not sealed and/or marked, as instructed. This
circumstance may provide a case for Proposal's/ bid's rejection. If the Financial Proposal
is not submitted in a separate sealed envelope duly marked as indicated above, this shall
constitute grounds for declaring the proposal non-responsive/ invalid.
ii. Association with Other firms & Quality Assurance: Only single firm is eligible to
apply. Association/Joint ventures of two or more firms are not eligible to apply.
iii. Interested firms should submit their proposals to Mission Director, NHM for
State/District groups for which they intend to do the Audit work. The State Audit
Committee shall evaluate the Technical proposal and finalize the same for opening of
financial bids of eligible firms.
iv. All agencies must comply with the Technical Specification, General Conditions and
Format/Requirements for Technical and Financial proposal.
v. The Technical Proposal shall be marked "ORIGINAL" or "COPY" as appropriate. All
required copies of the Technical Proposal are to be made from the original. If there are
discrepancies between the original and the copies of the Technical Proposal, the original
proposal shall be considered for evaluation purpose.
vi. Financial proposals submitted by the firm should be valid for 6 months from the date of
submission of the proposal by the firm.
vii. Each page, Form, Annexure and Appendices of the Technical and Financial Proposal
must be signed by the Authorized signatory of the firm.
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viii. All blank spaces in the financial proposal must be filled in completely where indicated,
either typed or written in ink.
ix. JRHMS reserves the right to accept or reject any proposal without giving any explanation
and can change the evaluation criteria as per its requirements in the interest of the
organization.
x. The technical & financial evaluation and all selection process shall be done by office of
Mission Director, JRHMS, Jharkhand, Ranchi.
xi. All bid documents should be spiral bind with page no. & signature on each page.
B. Technical Proposal:
I Letter of Transmittal (Form T-l)
II Details of the Firm along with Details of Partners (Form T-2)
III Brief of relevant experience (Form T-3)
IV Bid submitted for Groups (Form T-4)
C. Financial Proposal:
The financial bid shall be submitted as per Form F-l.
Percentage (or proportion) of funds involved/turnover shall not form the basis for quoting
the audit fee.
D. Minimum Proposed Fee:
JRHMS recommends the following minimum fees for this assignment:
Group Minimum Fee ( Excluding GST)
Per month per group
2 45000/-
4 39000/-
Bids below the minimum recommended fee shall be rejected.
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TECHNICAL EVALUATION:
The technical proposal evaluation shall be based on the following parameters.
SI Particulars Minimum Max Evaluation Criterion
No Criteria Marks
I Number of Full Time Fellow/
Associate Partners associated with 1 20 1 mark per ACA, 2 marks per FCA partner
the firm
2 Turnover of the firm (Average Minimum 10 -25 Lakh= 10 marks
annual in last three financial yrs.) Rs.10 20 >25 to 50 Lakh = 15 marks
Lakhs above 50 Lakh = 20 marks
3 Experience of Statutory/
Concurrent audit of NHM/
Externally/Internally aided
projects/social sector projects/Govt
org./Banks since 1.4.16 (other than
audit of charitable institutions & Min 2
20
2 marks for each client (Maximum 20)
NGOs) in the State of Jharkhand assignments
upto date of submission of bid
(Experience shall be counted
according to client wise and not
year wise)
4 Qualification of Key
Professional staff, No of qualified/ 40 1).Qualified Key Professionals staff(10 Marks)
semi qualified staff or article (CA/ICWAI)
assistant, Existence & presence of 1 mark for each Staff, maximum 10.
firm.
2) Existence of the firm (10 marks).
One mark for each year, maximum 10.
3) Firm having Branch Office / Head Office in
Jharkhand
(20 Marks).
Branch/Head Office in District
(for the group quoted) = 1 mark for each year of existence
for each Branch
I. Bidder must submit relevant proofs to justify the claims in order to obtain relevant marks.
a. For staff- qualification certificate should be submitted.
b. Proof of branch, existence of firm & number of partners should be submitted which shall
include confirmation from ICAI wherever applicable.
c. For experience criteria, agreement/order copy should be submitted
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Selection Process of the Auditor:
A two-stage procedure shall be adopted in evaluating the proposals. The selection will be done using
Quality cum Cost Based Selection (QCBS) process. Financial proposals shall be opened only for those
firms who have qualified on Technical Parameters as defined above. 70% weightage would be given to
the Technical parameters and 30% weightage would be given to the financial parameters.
Quality cum Cost Based (QCBS) process shall be followed as under:
Once the Technical points have been allotted and finalised, 70% of such points shall be allotted to the
respective bidding firm and after opening of the Financial Bid the amount of quoted Audit Fee shall be
mentioned against the respective C.A. firms. 100 Marks shall be allotted to the firm quoting the
minimum Financial Bid and the rest will be awarded points on proportionate basis.
In case of a tie, firm shall be selected on the basis of lottery in front of the committee & representative
from the bidding firms.
If there is only one firm quoting for a particular group of districts then they may be considered if
minimum fee is quoted.
Award of Contract:
On completion of selection process, the firm selected shall be eligible for award of the contract of
audit. The firm should execute a Contract with JRHMS within 1 week of the award.
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Form T-1
Letter of Transmittal
The
Mission Director
SHS
Name & Address of State
Dear Sir,
We, the undersigned, offer to provide the audit services for [Name of State Health Society] in
accordance with your Expression of Interest dated [Insert Date]. We are hereby submitting our Proposal,
which includes this Technical Proposal, and a Financial Proposal sealed under a separate envelope.
We hereby declare that all the information and statements made in this Proposal are true and
accept that any misinterpretation contained in it may lead to our disqualification.
The prices quoted by us in the Financial Proposal (Form F-l) are valid till six months from the
date of submission of the quotation. We confirm that this proposal will remain binding upon us and may
be accepted by you at any time before the expiry date.
Prices have been arrived independently without consultation, communication, agreement or
understanding (for the purpose of restricting competition) with any competitor.
We agree to bear all costs incurred by us in connection with the preparation and submission of
the proposal and to bear any further pre-contract costs.
We understand that JRHMS[Insert Name of the State] is not bound to accept the lowest or any
proposal or to give any reason for award, or for the rejection of any proposal.
I confirm that I have authority of [Insert Name of the CA. Firm] to submit the proposal and to
negotiate on its behalf.
Yours faithfully,
( )
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Form T-2
Particular/Details of the Firm
Sl Supporting Documents required to be
PARTICULARS
No submitted along with this Form
1 Name of the Firm
2 Addresses of the Firm:
Head Office Phone No:
Fax No:
Mobile No. of Head Office In-charge:
Date of establishment of the firm
Date since when H.O. is at the existing Station
Branch Office 1,2,3 (Particulars of each branch
to be given) Phone No:
Fax No:
Mobile of each Branch Office In-charge:
3 Firm Income Tax PAN No.
4 Firm GST
5 Firm's Registration No. with ICAI/ICWAI
No. of Years of Firm's existence & Date
ICAI Certificate
6 of establishment of Firm
Turnover of the Firm in last three years Attach balance Sheet and P&L Account of the last
8
three years or a C.A. Certificate.
9 Details of Partners:
Provide following details:
· Number of Full Time Fellow Partners
associated with the firm.
· Name of each partner
· Date of becoming ACA and FCA
Attested copy of Certificate of ICAI
· Date of joining the firm,
· Qualification
· Experience
· Whether the partners are engaged full time or
part time with the firm.
· Their Contact Mobile No., email and full
Address
Details of Qualified Staff
(Please provide a self-attested copy of Certificate of ICAI/ICWAI for each qualified staff)
S. No. Name of Length of Educational Area of Key Membership Relevant
Staff Association with Qualifications Expertise No. Experience
the Firm (in years)
1
2
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Form T - 3
Brief of Relevant Experience:
A. Experience of audit in relation to NHM/externally/internally Aided projects/ State's Social Sector
Projects/Govt organisation/Bank since 1.4.16 (Excluding the audit of Charitable Institutions and
NGOs).
S. Name of the Grant-in-aids Type/nature Scope & Duration of Proof of The letter of
No. Auditee handled of the of coverage of completion work or Assignment
Organization Auditee Assignment the of awarded by the Auditee
organization assignment assignment Organization (Pl attach a
copy of the letter)
Form T - 4
Bid submitted for Group
Bid submitted or Not
State/Group
submitted
Group 2
Group 4
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Form F-1
FORMAT FOR FINANCIAL BID
Monthly Audit Fee (if quoted)
Group Quoted or Not quoted Inclusive of TA/DA, (Rupees in numbers &
words) for the Group
Group 2
Group 4
Note: GST as applicable shall be paid extra.
Yours faithfully,
( )
CA
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