Expression of Interest (EOI)
For Appointment of Concurrent Auditor for State
Health Society (SHS) and District Health Society
(DHS) for Audit of all programmes under National
Health Mission, A&N Islands.
[2018-19]
TENDER NOTICE
SELECTION OF AUDTITORS EXPRESSION OF INTEREST
HIRING SERVICES OF CHARTERED ACCOUNTANT FIRM FOR CONCURRENT AUDIT OF STATE HEALTH SOCIETY
(SHS) & DISTRICT HEALTH SOCIETY (DHS) - (FOR THE FINANCIAL YEAR 2018-19) under National Health
Mission (NHM), A&N Islands
Govt. of India (GoI) in partnership with the States is implementing the National Health Mission which
comprises of various programs, with the objective of improving medical facilities in the areas and seeks to
provide accessible, affordable and quality health care to the population, especially the vulnerable sections. To
facilitate implementation of NHM, State and District level entities (Health Societies) have been registered
which work under the administrative control of the Department of Health & Family Welfare. The Andaman &
Nicobar Islands State Health Society invites "Proposal for Audit" from Independent Chartered Accountant
firms for the year 2018-19.
It is to inform that as per the notification of the Institute of Chartered Accountant of India (The Gazette of
India: Extraordinary Part III- Sec 4) dated 7th April 2016 a fee is prescribed @ of Rs. 16000/- per month
(Sixteen Thousand only) and the auditors may quote for higher or lower audit fee than the mentioned rate
based on which the selection will be done.
Detailed EOI: Detailed Expression of Interest (EOI) comprising Background, Terms of Reference (ToR) and
Guidelines for submitting the proposal can be either downloaded from the state's website www.and.nic.in or
this can be collected from the O/o State Health Society, Room No. AP 111, Atlanta Point, Port Blair between
10:00 AM and 5:00PM.
Important Dates:
i. Last date for collection of EOI from Office of SHS: 07th January, 2019 upto 3:00PM
ii. Date for pre-bid conference: 07th January, 2019 at 4:00PM
iii. Last date for submission of Proposal to SHS: 08th January, 2019 upto 3:00PM
iv. Date of opening of financial bid: 09th January, 2019 at 4:00PM
Venue for Pre-bid Conference: Pre-bid Conference would be held at the office of State Health Society,
Room No. AP 111, Atlanta Point, Port Blair.
Mission Director,
UT Health Mission
State Health Society
Andaman & Nicobar Islands
Address:
O/o State Health Society, EXPRESSION OF INTEREST
Room No. AP 111, Atlanta Point, Port Blair,
South Andaman - 744104
State Health Society, Andaman & Nicobar Islands seeks to invite Proposal from
Email id: nrhm.anislands@gmail.com
Phone :Independent Chartered Accountant firms for conducting the Concurrent audit of State
03192 -234965/243653
and District Health Societies under the National Health Mission for FY 2018-19.
The details about the background of the audited, the units to be covered in the audit,
scope of work, terms of reference, and the eligibility criteria for selection of the C. A.
firms are given in the following paragraphs.
Concurrent audit is a systematic examination of financial transactions on a regular basis
to ensure accuracy, authenticity, compliance with procedures and guidelines. The
emphasis under concurrent audit is not on test checking but on substantial checking of
transactions. It is an ongoing appraisal of the financial health of an entity to determine
whether the financial management arrangements (including internal, control
mechanisms) are effectively working and identify areas of improvement to enhance
efficiency.
Independent Chartered Accountant forms are needed to be appointed at State & District
Level to undertake periodical audits and report on vital parameters which would depict
the true picture of financial and accounting health of the program.
Terms of Reference (ToR)
1. National Rural Health Mission (NRHM) of the Ministry of Health & Family Welfare
was launched on 12th April, 2005 by the Government of India to improve medical
facilities in all the area in the country. 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 407 to 100 per 1,00,000 live births, Infant Mortality rate (IMR) from
60 to 30 per 1000 live births and the Total Fertility Rate (TFR) from 3.0 to 2.1
within the 7 year period of the Mission. It has now been termed as National
Health Mission (NHM). NHM is overarching NUHM also and includes Non-
Communicable Diseases (NCD) as well.
2. One of the visions of the Mission is to increase public spending on health from
0.9% to 2-3% of GDP, with the improved arrangement for community financing
and risk pooling. The NHM has provided an umbrella under which the existing
Reproductive and Child Health Programme (RCH) and various National Disease
Control Programmes (NDCPs) have been repositioned. National Urban Health
Mission (NUHM) has also been added as submission of National Health Mission.
3. At present the following Programmes/Schemes falls under the National Health
Mission:
A. NHM-RCH Flexible Pool:
· RCH Flexible Pool.
· Mission Flexible Pool.
· Routine Immunization.
· Pulse Polio Immunization
· National IDD Control Programme.
B. National Urban health Mission (NUHM).
C. Flexible Pool for Communicable Disease:
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 Disease, Injury & Trauma:
National Programme for Control of Blindness (NPCB)
National Mental Health Programme (NMHP)
National Programme for Health Care of the Elderly (NPHCE)
National Programme for Prevention and Control of Deafness
(NPPCD)
National Tobacco Control Programme (NTCP)
National Oral Health Programme (NOHP)
National Programme for Prevention and Control of Cancer,
Diabetes, Cardiovascular Diseases and Stroke (NPCDCS)
Other New Initiative under Non-Communicable Disease Injuries and
Trauma
4. Institutional and Funding Arrangements:
For the implementation of the above programmes, MOHFW has required the
creation of an Integrated Health Society at State and District levels (registered as a
legal entity at the State and District under Societies Registration Act, 1860). Such
integrated State Health Society (SHS) works in close coordination with the
Directorate of Health & Family Welfare and District Health Societies (DHS) 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 and Village Health & Nutrition Sanitation
Committees. Certain activities may be 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 participation (PPP) arrangements.
Funding & Accounting Arrangements:
Funds for the various programs are transferred from Pay & Accounts Office of
MoHFW to the State Treasuries and then from Treasuries to the SHS functioning in
the State. Government of India transfer funds in the form of Grants-in-Aid to SHS on
the basis of respective State Programme Implementation Plan (SPIPs) and approved
Annual Work Plans which are 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 has separate bank accounts, maintains separate books of
accounts and other financial records as per the requirements of each program and
also submit separate financial activity reports at varying frequencies to the respective
monitoring unit in MOHFW (GOI).
5. Financing by Development Partners/ Donors:
Some of the programs of NHM are also supported by development partners such as
the World Bank, DFID, UNFPA, European Union, and GFATM 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 by the auditors. Copies of the legal
agreements and other project documents will be provided to the auditors, if needed,
by SHS/ concerned Programme Division in the State.
Objective of Concurrent Audit
The Key objectives of the concurrent Audit include:
To ensure voucher/evidence based payments to improve transparency
To ensure accuracy and timeliness in maintenance of books of accounts
To en sure timeliness and accuracy of periodical financial statements
To improve accuracy and timeliness of financial reporting especially at sub-
district levels
To ensure compliance with laid down systems, procedures and policies
To regularly track, follow up and settle advances on a priority basis
To assess and improve overall internal control systems
Scope of Concurrent Audit
The responsibilities of the concurrent auditors should include reporting on the adequacy
of internal controls, the accuracy and propriety of transactions, the extent to which
assets are accounted for and safeguarded, and the level of compliance with financial
norms and procedures of the operational guidelines.
The concurrent audit should be carried out both at State as well as District level.
The scope of work of "State Concurrent Auditor" is as follows:
Audit of the SHS accounts and expenditure incurred by SHS
Verification of Quarterly FMRS, with Books of Accounts
Audit of Advances at the SHS level
Audit of the Provisional Utilization Certificates sent to GoI
Monitoring timely submission of the District concurrent audit reports
Detailed analysis and compilation of the District concurrent audit reports
Vetting of the State Action Taken Reports and providing observation thereon
Follow-up & monitoring over the ATRs prepared by districts on the observations
made in the audit
Preparation of Quarterly Executive summary to be sent to GoI in the prescribed
format
Any other evaluation work, as desired by the State Audit Committee
The scope of work of "District Concurrent Auditors" is as follows:
Review of the DHS Accounts and expenditure incurred by the DHS
Audit of Financial Statements of DHS
Certification of the Statement of Expenditure
Review and analysis of the Age wise and party wise Advances Report
Comparison between financial and physical performance and analysis
Visits to sample blocks (in a way to cover all blocks in a year) and peripheral
units
Filling in the checklist provided
Vetting of the district ATRs and providing observations thereon
Any other evaluation work, as desired by the District Audit Committee
Frequency
Concurrent Audit will be carried out on a "monthly basis"
KEY TIMELINES
Activity Timeline
Carrying out concurrent audit Monthly
Submission of Audit Report by 10th of the next month
Auditor to SHS
Submission of soft copy of the Audit Quarterly- by 15th of the first month of the
report and consolidated executive next quarter
summary by Auditor to Mission
Director
Submission of the executive Quarterly- by 15th of the first month of the
summary report by the Auditors SHS next quarter
Submission of the executive Quarterly- by 25th of the first month of the
summary report by the SHS to the next quarter.
Centre
Coverage
The State Concurrent Auditor should ensure coverage of all the districts and the
District Concurrent Auditor should ensure that all the blocks are covered over the
entire year.
The audit plan should include a visit to at least50% PHCs/CHCs, 3 sub-centres
and 3 VHSNCs located within the block selected for visit. The states may decide
to increase the scope for the same.
The audit has to include accounts maintained under RKS and NDCP (wherever
applicable).
Appointment & Selection of Auditors
State Level Auditors
Appointment and selection of the state level concurrent auditors will be done by the
respective State Audit Committee through Open Tender System. EoI format as
prescribed in the guidelines along with the Terms of Reference is provided to all firms in
order to receive the Technical Bids.
Interested firms should submit their bids in two parts-Technical and Financial bids. Both
the bids should be submitted in two separate sealed envelopes, which should be
opened in meeting of the audit committee.
The audit committee would first open the technical bids and evaluate them on the basis
of the criteria as prescribed in the guidelines. The audit committee should arrive at a
base minimum figure/threshold and CA firms scoring above the base minimum figure
should be deemed to have technically qualified to undertake the job financial bids on
only technically qualified firms should be opened by the committee and audit should be
awarded to the lowest bidder.
If the lowest financial bidder does not agree to undertake the audit work within the
prescribed audit fee or the audit committed deems it unfit for any reason (reasons to be
recorded in writing), the job may be awarded to the next lowest financial bidder if the
firm agrees to undertake the job. However, the work may only be awarded to a
technically qualified bidder (the firms which are above the base minimum figure of the
technical evaluation).
A firm engaged as Concurrent Auditor of the State Health Society or a District Health
Society in
The State of Andaman & Nicobar Islands for the financial years 2016-17 and 2017-18
consecutively shall not be eligible for appointment as Concurrent Auditor for that Health
Society for the year 2018-19.
Once selection is finalized by SAC, the same may be intimated to Principal Secretary
Health for his concurrence.
Contents of Audit Report
Concurrent Audit Report of a "State Health Society" should contain the following
financial statements and documents:
Duly filled in checklist provided in the guidelines
Financial statements as prescribed
o Audited Trial Balance
o Audited Receipts & Payments A/c
o Income & Expenditure A/c
o Balance Sheet
o Audited SoE
o Bank Reconciliation Statement
o List of outstanding advances
Observations and Recommendations of Auditor-particularly covering the
following aspects:
o Deficiencies noticed in internal control
o Suggestions to improve the internal control
o Extent of non-compliance with Guidelines issued by GoI
Action Taken by State Health Society on the previous audit observations, along
with his observations on the same
Concurrent Audit Report of a "District Health Society" should contain the
following financial statements and documents:
Duly filled in Checklist provided in the guidelines
Financial statements as prescribed
o Audited Trial Balance
o Audited Receipts & Payments A/c
o Audited Income & Expenditure A/c
o Balance Sheet
o Audited Statement of Expenditure
o Bank Reconciliation Statement
o 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
Notes:
1. Soft copy of the district audit report needs to be submitted to Director (finance) at
the state level.
2. The Director (Finance) at the Centre may call for the concurrent audit report of
any district/state.
3. The reports at both the state and district level will include consolidated report of
RCH, Additionalities under NRHM, Immunization and NDCPs. In addition, it
should also include instances of misappropriation/unauthorized diversion of funds
as noticed during the audit.
Guidelines for Submitting the Proposals:
Agencies are required to submit the proposal as per the guidelines and formats
detailed out in the following paras:
i. The original and all copies of the Technical Proposal shall be placed in a sealed
envelope clearly marked "Technical Proposal". Similarly, the original Financial
Proposal shall be placed in a separate sealed envelope clearly marked
"Financial Proposal" followed by the name of the assignment, and with a
warning "Do Not Open With The Technical Proposal." The envelopes containing
the Technical and Financial Proposals shall be placed into an outer envelope and
sealed. This outer envelope shall bear the submission address, reference
number and title of the Assignment, and be clearly marked "Do Not Open, Except
In Presence Of The Official Appointed. The Society shall not be responsible for
misplacement, loss or premature opening if the outer envelope is not sealed
and/or marked as stipulated. 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. Single Proposal (Multiple Firms): In case States decides to appoint more than
one C.A. firm as auditor, the Bidding CA firm may submit proposal for State and
only for one Group of districts.
iii. All agencies must comply with the Technical Specification, General Conditions
and Format/Requirements for Technical and Financial proposal.
iv. The Technical Proposal shall be marked "Original" or "Copy" as appropriate. All
required copies of the Technical Proposal are to be made from the original. If
there are discrepancies between the original and the copies of the Technical
Proposal, the original governs.
v. Financial proposals submitted by the firm should be valid for 6 months from the
date of submission of the proposal by the firm.
vi. Each page, Form, Annexure and Appendices of the Technical and Financial
Proposal must be signed by the Authorized signatory of the firm.
vii. All blank spaces in the financial proposal must be filled in completely where
indicated, either typed or written in ink.
viii. State Health Society (SHS) 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.
ix. If the required constitution of the team is not deployed the state may take
appropriate action as it deems fit (including blacklisting of the firm) against the
firm, keeping the Ministry informed.
x. A firm cannot undertake the audit assignments of more than three states in a
year. The audit assignment must be opted for as awarded by States
chronologically i.e. on First come first served basis. If a CA Firm appointed in
more than 3 state then they have to withdraw their name so as to keep it up to 3
States/ UTs only. As a state may opt to appoint multiple auditors, therefore, if a
firm appoints for audited of a group of district any state then for the purpose of
ceiling of 3 states, group of state shall take as a state.
xi. The firm shall give an undertaking that the team members are proficient in the
State's official language (both oral and written).
xii. Firm shall have to depute appropriate no. of teams for timely submission of Audit
Report and to attain quality of audit.
xiii. Each team shall have to be headed by a qualified chartered accountant.
Technical & Financial Proposal will consist:
i. Letter of Transmittal ( Form T-1)
ii. Details of the Firm along with Details of Partners (Form T-2)
iii. Financial Bid (Form F-1)
Form T-1
Letter of Transmittal
To,
The Mission Director,
State Health Society,
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, having details about the firm and proposed audit
fees.
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 Fees quoted by us is valid till six months from the date of submission of the
proposal. 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 State Health Society [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 C.A. Firm] to submit the
proposal and to negotiate on its behalf.
Yours faithfully,
( )
Particulars/Details of the Firm
Sl. PARTICULARS Supporting Documents required to be submitted
No. along with this Form
1 Name of the Firm
2 Addresses of the Firm:
Head Office Phone No:
Fax No:
Mobile No. of Head Office In-charge:
Date of establishment of the firm
Date since when is H.O. at the existing
Station
Branch Office 1,2,3...... Phone No:
(Particulars of each branch to be given) Fax No:
Mobile of each Branch Office In-charge:
Mention the date of each branch offices
since when existed at the existing place
3 Firm Income Tax PAN No. Attach copy of PAN card
4 Firm Service Tax Registration No. Attach copy of Registration
5 Firm's Registration No. with ICAI Attach a copy of certificate downloaded from
ICAI Website showing the name & address of
H.O., B.O. and partners etc.
6 Empanelment No. with C & A G Attach proof of empanelment with C&AG for the
year under Audit (2014-15) confirming that the
firm is eligible for major PSU audits.
7 No. of Years of Firm Existence & Date of Attach copy of Partnership Deed
establishment of Firm
8 Turnover of the Firm in last three years Attach a copy of Balance Sheet and P & L
Account of the last three years or a C.A.
Certificate give Break-up of Audit Fee and Other
Fees Received.
9 Audit Experience of the Firm:
1. Number of Assignments in
Commercial/Statutory Audit
2. Number of Assignments of Copy of the Offer Letter & the Fee Charged for
Externally Aided Projects/ Social each assignment.
Sector Project (excluding audit of
Charitable Institutions & NGOs)
3. Experience in the NHM audit. (Relevant evidences to be given of the turnover
and fee)
10 Details of Partners:
Provide following details:
Number of Full Time Fellow Partners
associated with the firm.
Attested copy of Certificate of ICAI not before
Name of each partner,
1.1.2015
Date of becoming ACA and FCA
Date of joining the firm,
Membership No.,
Qualification
Experience
Whether the partners is engaged full
time or part time with the firm.
Their Contact Mobile No., email and full
Address
Note: The firm shall give an undertaking that the team members are proficient in
The State's official language (both oral and written).
Form F-1
FORMAT FOR FINANCIAL BID
(Please provide the break-up of Firm's quoted fees for each work and unit)
Item or Activity Total Amount (in Rupees)
AUDIT FEE Both in Numeric and in Words.
a. Audit fess --------------- Rs.__________________/-
(Including cost of TA/DA)
b. Service Tax --------------
-- (Rupees
c. Total Fees ------------ ________________________).
---
Note: Percentage of funds involved shall not
be a basis of quoting the Audit Fee.
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