GOVERNMENT OF MADHYA PRADESH

Madhya Pradesh State Tech e-Panchayat Society

(AN AGENCY OF PANCHAYAT AND RURAL DEVELOPMENT DEPARTMENT)
Regd. Off: O/o Commissioner, Panchayati Raj Directorate,
Near E.P.F. Office, Arera Hills, Bhopal-462011.MP
E-mail ID: mpsteps@mp.gov.in

No. 343/P&RD/MPSTEPS/Audit 2022-23/21 Bhopal, Dated 25/01/2022

:: E-TENDER NOTICE::

Online Offers are invited from reputed Chartered Accountant firms, not having any affiliations with
foreign firms in any manner in prescribed formats for Quarterly Financial Audit, Monitoring of Own
Source Revenue of Panchayat & Handholding support for Strengthening of Financial Management
System for the year 2022-23 of all Panchayat Raj Institutions (PRIs) which includes all Gram
Panchayat/Janpad Panchayat/Zila Panchayats and state head quarters.

The Request for Proposal (RFP) document can be purchased up to 17/02/2022 on payment of Rs.
5,000/- (Rs. Five thousand only) for each cluster from website www.mptenders.gov.in

Offers should be submitted along with an EMD of Rs. 1,00,000/- (Rs. One Lakh only) for each cluster,
which should also be paid online at website www.mptenders.gov.in, till 03.00 pm dated 17/02/2022 All
terms and conditions and other details are available for reference at our website
www.mppanchayatdarpan.gov.in Corrigendum / Amendment if any to this publication would appear
only on the above mentioned websites and will not be published elsewhere. Further the bidders are
advised to prepare and submit their bid document well in time to avoid any technical issue at the last
moment. If any bidder fails to submit their bid within the prescribed time limit due to technical error or
by whatever issue the bid shall not be entertained in any manner.

The pre-bid meeting will be held on 04/02/2022 at 3.00 PM
Last date for submission of offer is 17/02/2022 up to 03.00 PM

The technical bid will be opened 18/02/2022 at 03.30 PM and

Financial bid will be opened on 21/03/2022 at 03.00 PM.

Off: O/o Director, Directorate of Panchayat Raj, Arera Hills, Nearby EPF Office, Bhopal -462011
(MP.)

The Director, Panchayati Raj Directorate and ex-officio CEO, MPSTEPS reserves the right to
accept or reject fully or partially the bids which is final and binding.

Chief Executive Officer
MPSTEPS

1
GOVERNMENT OF MADHYA PRADESH

Madhya Pradesh State Tech e-Panchayat Society

(AN AGENCY OF PANCHAYAT AND RURAL DEVELOPMENT DEPARTMENT)
Regd. Off: O/o Commissioner, Panchayati Raj Directorate,
Near E.P.F. Office, Arera Hills, Bhopal-462011.MP
E-mail ID: mpsteps@mp.gov.in

Notice inviting Online Offers for Quarterly Financial Audit,
Monitoring of Own Source Revenue of Panchayat & Handholding
support for Strengthening of Financial Management System for the

year 2022-23
From Reputed Chartered Accountant Firms.

Instructions to Bidders

1. Introduction:

The Panchayat and Rural Development Department, Madhya Pradesh, as per the
Finance Commission Guidelines issued by GoI for Local Bodies (Chapter 10) and as per
the MoF guidelines letter dt. 23rd September 2010 {(Clause 6.4.2 (a) to (e) and various
orders/ circulars/Guidelines issued by GoI time to time for improving & strengthening of
financial management system and improving the transparency at all three tier of panchayat
i.e. Zila, Janpad & Gram Panchayat, Intends to appoint CA Firms for Quarterly Financial
Audit, Monitoring of own source revenue of panchayat & Hand holding support for
Strengthening of Financial Management System on regular basis for the financial year
2022-23 for all the Panchayat Raj Institutions in Madhya Pradesh.

The scope of audit may extend upto 2 years subject to the performance of the firm and
mutual consent of both parties. This audit includes Gram Panchayats, Janpad Panchayats,
Zila Panchayats and State Head Quarters at Bhopal. The appointed Firm will provide
support to all the Panchayati Raj Institutions in preparation of accounts and to improve the
system of book keeping and audit thereof.

2. Purchase of RFP Document:

The Request for Proposal (RFP) document can be purchased online up to 17/02/2022
on payment of Rs. 5,000/- (Rs. Five thousand only) for each cluster from website
https://mptenders.gov.in towards the cost of RFP document at the address given above.

3. Eligibility Criteria:

CA firms participating in the bid are required to fulfill qualifying criteria given in
annexure-II (Technical Bid). The technical bid should be submitted with all the information
as required therein with supporting documents. The evaluation will be done as per Quality
cum Cost Based System (QCBS).

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4. Submission of Offer:

a. Complete Bid Proposal Should be submitted online including financial Bid at
www.mptenders.gov.in.

b. Necessary document (scanned & uploaded) for e-tender must be clearly readable.

Bid should be valid for 120 days from the date of submission of offer. Please Note That:-

i. The cost of preparing proposal including visits to the any of the office is not
reimbursable.

ii. The remuneration which you shall receive from this contract will be subject to normal
tax liability in India and TDS will be deducted as per rules.

iii. Chartered Accountant firms may bid for any number of clusters but they will be
allotted work of maximum Two cluster. CA Firms are required to give a preference
of the cluster for which they are interested. The Bhopal-1 cluster CA firm will also
do the state level audit of all HODs and scheme /programs and will consolidate all
schemes & Programs.

iv. If any CA firm quotes lower rates from minimum Quarterly rates prescribed in this RFP,
in that case the financial proposal of such CA firm will not be accepted.

v. Acceptance / Rejection of bid only based on document uploaded on MP Tender portal.
vi. If any discrepancy found regarding name or number of Cluster applied with required

EMD paid then the bid will be rejected.
vii. If any CA firm submits Financial bid in hard copy then the bid will be rejected

summarily.
viii. An index for the documents uploaded should be there containing proper page numbering

both in index as well as on documents.
ix. Chief Executive Officer MP STEPS reserves the right to reject any bid without giving

any explanation and in this regard no correspondence shall be made by firms.

5. Earnest Money Deposit (EMD):

Earnest money deposit of Rs. 1,00,000/- (Rupees One Lakh Only) should be paid online at
www.mptenders.gov.in for each cluster separately. Any offer not accompanied by required
EMD and in prescribed form will not be considered. EMD of unsuccessful bidder shall be
returned as soon as tenders are decided.
EMD may be forfeited if,

a. Any false & misrepresentation of facts or documents found in tender proposal. This act
also liable to disciplinary action.

b. If offer is withdrawn with in the validity period (including extended period if any)
c. If C.A. firm whose offer is accepted fails to deposit required performance security and

sign the agreement with in the scheduled period.

6. Opening of Offer:

i. Containing EMD and cost of bid document shall be opened first. If the same are not
found in order as prescribed in this RFP the proposal of firm shall be rejected and shall
not be considered for technical evaluation.

ii. Containing technical bid shall be opened in the presence of the bidders or their
representative who may like to be present.

iii. Technical proposals shall be evaluated by the committee constituted for this purpose.
Names of bidder who will be assessed technically qualified will be displayed on the
website.

iv. Financial Bid, of technically qualified bidders shall be opened on pre notified date.

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7. Award of Contract:
Successful bidder will be notified award of contract by post or any other suitable mode of
communication for signing the agreement.

8. Performance Security:
Successful bidder will have to deposit performance security equal to Five percent of the
contract amount in the form of FDR/DD of scheduled nationalized Bank drawn in favour of
M.P. State Tech e-Panchayat Society, Bhopal payable at Bhopal within 15 days from the
date of issue of award letter. EMD shall be refunded on depositing full performance
security.

9. Signing of Agreement:
After submission of performance security, firm will sign the agreement with the designated
officers of the concerning districts with in the cluster for which the contract is awarded.

10. Commencement of Services:

The selected CA Firm shall commence the services within 21 days from the date of issue of
letter of award.

11. Selection Methodology

A three-stage procedure shall be adopted in evaluating the proposals. The selection will be
done using Quality cum Cost Based Selection (QCBS) process. 70% weightage would
be given to the Technical evaluation and 30% weightage would be given to the financial
bid.
First Stage:

 First of all, the proof of cost of tender document and EMD shall be checked.
 If the proof of cost of tender document Rs. 5,000/- per cluster and EMD of Rs.

1,00,000/- per cluster is not found as prescribed in this RFP, the proposal of firm shall
be rejected and shall not be considered for Technical Evaluation.

Second Stage:

 Technical proposals submitted shall be opened of the firms whose cost of tender
document and EMD are found in order.

 Technical evaluation of bidders shall be carried out whose bids are found responsive to
the pre-qualification criteria.

 Proposal of the Firms meeting eligibility criteria will be considered for awarding
technical scores as per technical evaluation section. The proposal of the firm not
meeting the minimum eligibility criteria shall be rejected.

 The technical proposal scoring at least 50% of the marks shall be considered as
“Qualified on Technical Parameters”. A proposal shall be rejected at this stage if it
fails to achieve the minimum technical score (i.e. at least 50 Marks).

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Third Stage:
 Financial proposals shall be opened only for the CA firms who have qualified on
Technical Parameters (i.e. secured at least 50% or more marks on evaluation
criteria). Financial Proposals of the firms which have not qualified on technical
parameters shall not be opened.
 In evaluation of the proposals the Quality cum Cost Based System (QCBS) shall
be followed as per the formula as under: -
 Combined Technical and Financial Score (CTFS) = 70 x Marks scored in
Technical evaluation/100 + 30x Financial value of lowest bidder (L1)/Financial value
of respective bidder (L2, L3, L4…..).
 The firm having highest Combined Technical and Financial Score (CTFS) will be
selected
 In case CTSF of any two or more firms are same for a cluster then the firm
having higher Technical Marks will be Selected. Further in case where two or
more firm having same Technical Marks then the firm having more year of
existence will be selected. Further in case where two or more firm having same
year of existence than the firm with higher turnover after that CEO, MPSTEPS
decision will be final.

12. Pre Qualification Criteria (First Stage)
CA firms participating in the bid are required to fulfill minimum qualifying criteria given in
annexure-II (Technical Bid). The technical bid should be submitted with all the information
as required therein with supporting documents.

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13. Technical Evaluation Criteria (Second Stage)
The evaluation of technical proposals shall be based on the following parameters:

Sl. Particulars Minimum Max Evaluation Criterion Document Verified from

No. Criteria Marks

1. Number of Full Time Partners 5 (out of 15 5 partners = 10 marks Constitution Certificate of ICAI as

exclusively associated with the which 3 0.5 mark for additional on 01.01.2022.

firm (As per certificate of should FCA) partner. (Upto 5 Marks Annexure – T1

ICAI as on 1.1.2022) out of Maximum)

Three should be Fellow

member of ICAI.

2. Turnover of the firm Minimum 15 For min Rs 50 Lakhs = 08 Audited Final Accounts for three

(Average annual turnover in Rs.50 Lakhs marks year and CA certificate of yearly

last three financial yrs.) 1 mark for every increase of Audit Fee received.

(Fy 2018-19 2019-20, 2020- 25 lac. Annexure – T2

21)

3. No of Assignment: Experience 5 Assignments 12 5 assignments = 5 marks Copy of Offer Letters/Work Orders

of Government Audit/PSU (Minimum Additional 0.5 mark for every Annexure – T3

Audit/ (Internal/Statutory) Audit Fee increase (Upto 7 Marks)

Excluding PRI 50000/- per

assignment)

4. Auditing Experience of 1 Mark for each Assignment Copy of Offer Letters/Work Orders
of Annual Financial audit of Annexure – T4
Panchayat raj Institution and N.A. 13 PRI (Up to 8 Mark)
Plus 5 Marks for Monthly
Scheme under Rural concurrent Audit of PRI
(complete one year)
Development Deptt. of 10 Article Trainee = 5 marks
1 additional mark for every
Madhya Pradesh. increase of 5 article trainee.
(Upto 5 Marks)
5 No. of Article clerk employed 10 Article 10 Constitution Certificate as on
1 CA employee= 1 mark
as per ICAI record. Adl 1 Mark for every increase 01.01.2022 and Member Certificate
(Upto 2 Marks)
of ICAI/ ICAI Record. Self
10 year= 3 Marks
1 mark for every additional 5 Certificate of paid semi qualified
year (Upto 2 Marks).
15 mark as per presentation staff. Annexure – T5

6 No. of Chartered Accountants N.A 3 Constitution Certificate and

employed with the firm As per Member Certificate of ICAI as on

ICAI records 01.01.2022.

Annexure – T6

7. Firm Existence as per ICAI Min 10 year 5 Constitution Certificate of ICAI as
Record as on 01.01.2022
on 01.01.2022

Annexure – T7

8. Understanding of the scope of N.A. 15 Soft & Hard Copy of Presentation

the assignment demonstrated T8

in the response to the RFP,

Technical approach &

Methodology along with

manpower resources, previous

experience etc. Bidder should

submit a write up for the same.

9. Peer Review within 10 year N.A. 2 1 mark for each peer review Copy of Peer Review Certificate
certificate (up to 2 marks). Annexure – T9
10. DISA/CISA qualification Min 2 Person 5 2 Partner having DISA = 3 DISA Certificate from ICAI of
mark Partners
11 Empanelment with C&AG for C&AG 5 1 additional mark for every Annexure – T10
increase of partner only (Upto
the FY 2021-22 Empanelment 2 marks) C&AG Empanelment Certificate
5 Mark for C&AG Annexure – T11
empanelment

Total 100

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Note:

 The qualification and experience higher than the minimum requirement will be given

higher weightage subject to maximum marks for each criteria.

 Notwithstanding anything contained in this tender document, technical assessment shall be

made at the sole discretion of CEO, MPSTEPS and its decision shall be final and not
challengeable.

 Acceptance/Rejection of bid only based on document uploaded on MP Tender portal.
 IF any discrepancy found regarding name or number of cluster applied with required

EMD paid then the bid will be rejected.

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GOVERNMENT OF MADHYA PRADESH

Madhya Pradesh State Tech e-Panchayat Society

(AN AGENCY OF PANCHAYAT AND RURAL DEVELOPMENT DEPARTMENT)
Regd. Off: O/o Commissioner, Panchayati Raj Directorate,

1, Arera Hills, Oilfed Premises, Hoshangabad Road, Bhopal-462011.MP

Terms of Reference

1. Background:

The Panchayat and Rural Development Department, Madhya Pradesh as per the
Finance Guidelines issued by GoI for Local Bodies (Chapter 10) and as per the
MoF guidelines letter dt. 23rd September 2010 {(Clause 6.4.2 (a) to (e) } intends to
appoint a CA Firms to handholding support for finalization of accounts on
Quarterly basis and to conduct the Quarterly Financial Audit of the accounts for
the financial year 2022-23 for all the Panchayat Raj Institutions in Madhya
Pradesh, to establish a sustainable system and process to improve the auditing and
accounting system of the Panchayats through providing hands on support at the
Gram Panchayat, Janpad Panchayat, District and State level for having
information of Panchayat accounts online for verification and monitoring of
financial system.

This includes SHGs (Self Help Groups under NRLM / Watershed committee/
PIA (Project Implementing agency) and CSS (Centrally Sponsored Schemes)/ SSS
(State Sponsored Schemes) as annexed IV and any other scheme included later on by
whatever name called, Gram Panchayats, Janpad Panchayats, Zila Panchayats and State
Head Quarters at Bhopal. The appointed Firm will provide recording/reporting of OSR
transactions of 3 tier of PRIs. The firm will provide support to the Panchayati Raj
Institutions and other implementing agencies at all levels in preparation of accounts and
to improve the system of book keeping which will be available online.

2. Objectives:

i. The selected agency shall assist in improving the financial management and
accounting system for Panchayat and Rural Development Department Programmes
and Schemes in order to make the books of account available online at all the three
tier of Panchayats.

ii. The selected agency is also required to Check and validate the transaction through
Quarterly financial audit of all transactions and accounts of all three tier PRI SHGs
(Self Help Groups under NRLM, and State Head Quarters and submit the reports
as per stipulated time limit to the designated Authority.

iii. The another main object of this assignment is proper recording of OSR
transaction to ensure Efficient and proper reporting of own Source Revenue
(OSR) of gram panchayat/Janpad panchayat/Zila Panchayats to achieve
significant growth in OSR of all Panchayat. The same is focused by finance
commission guidelines. To achieve this object the appointed firm should focus
specially on this area by compiling required database. Database is prepared
by the gram Panchayat but C.A. Firm provide handholding support for
preparing of database (if required). C.A. Firm will provide Quarterly report
on OSR collection made by all panchayat from eligible activity.

8
iv. key purpose of this assignment is to develop strong financial/accounting
management systems at the Panchayat level through facilitation, guidance and
hands on support to the Panchayat at all three levels including developing system
and process for accessing Panchayat accounts information for the verification and
audit of the books of Panchayat accounts for the programs and Schemes of
Panchayat and Rural Development Department.

v. The overall objectives of Quarterly Audit is to provide the management with
independent regular & prompt assurance that (i) the internal controls established
by management are designed appropriately and (ii) verify whether the overall
financial management and arrangements including the system of internal controls
as documented in the accounting or other relevant manuals (FMM etc), are in
practice and working effectively. In addition, it is expected that audit should play
a role in assisting management in bringing a systematic, disciplined approach to
evaluate and improve the effectiveness of risk management, control and
government processes.

vi. Besides Panchayat & Rural Development Department and the other Government
programme Funds are routed through Panchayat Raj Institutions are also to be
audited. The list of Schemes of Panchayat & Rural Development Department and
Government Programmes, are attached in the Annexure IV. This can be also
obtained at the office of Chief Executive Officer MPSTEPS. Bhopal. Name of the
scheme may be added by CEO, MPSTEPS for which no additional fee will be
given (this will be treated as part of the financial bid).

3. Scope of Work:

The main object of this assignment is to establish strong control on financial
management at all three tier of panchayat, regular maintenance of books & accounts
and concurrent checking of transaction and proper recording of OSR to achieve
significant growth in OSR of all Panchayats, to achieve this objects, CA firm should
examine:-

A. Quarterly Financial Audit of the Accounts for the year 2022-23:

The Appointed Firm has to Examine that:-

i. The funds have been utilized in accordance with the guidelines, directives, acts and
rules framed by Government of India, State Government and the Funding Agency
in this regard, with due economy, efficiency, effectiveness, financial propriety,
transparency and only for the purpose for which the funds were allocated. The
funds utilized by SHGs (Self Help Groups under NRLM, as per the Guidelines,
directives, acts and rules of the Schemes/GoI regulations/State Livelihood Forum/
Mission in this regard, with due economy, efficiency, effectiveness, financial
propriety, transparency and only for the purpose for which the funds were allocated.

ii. Counterpart funds if any, have been provided and used in accordance with the
relevant provisions of the Act & Rules, with economy, efficiency, transparency and
only for the purpose for which they were provided.

iii. There is no diversion of funds for others purposes and there is no case of fraud,
embezzlement, theft and loss.

iv. Goods and services have been procured in accordance with the provisions in the
rules and orders. Including SHGs (Self Help Groups)/Watershed committee PIA
(project implementing agency).

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v. All necessary supporting documents, records and accounts have been kept in
respect of scheme expenditure. Clear linkages exist between the books of account
and reports presented to the District & Head Office.

vi. The accounts have been prepared in accordance with Accounting standard of the
scheme and give a true and fair view of the financial situation of the scheme at the
end of the year. The accounts have been checked on reconciliation of fund
transferred to apex body/council and reconciliation of fund transferred by
Council/apex body to Zila Panchayat, and from Zila Panchayat to Janpad
Panchayat/Gram Panchayat/ line departments and other implementing agencies and
fund transferred from Janpad Panchayat to Gram Panchayat/Implementing agencies.

vii. All the receipts and payments have been taken into accounts and taxes etc. have
been deposited.

viii. The provisions of exit protocol are followed and MIS is in place.
ix. The irregularities/comments reflected in social/statutory audit reports are duly

complied with, if not it may be reflected in audit report.
x. All the fund transactions will be handled through electronic transfer system only.

The manual based fund transaction from scheme account will not be allowed from
FY 2015-16.
xi. The auditors must be ensure that all the expenditure transaction verified online
where IT system is already in place. The documents may be verified through
auditor’s signature, if provision is available in the system.
xii. All the documents available in scheme portal(s) must be verified by the auditors
after expenditure incurred and uploaded on portal(s).
xiii. The auditors should submit system generated Quarterly audit report on regular
basis.

1. Work Assignment for SHGs (Self Help Groups under NRLM)/ Watershed
Committee/ PIA (Project Implementing agency):-

i. To audit the expenditure of SHGs (Self Help Groups under NRLM/
Watershed Committee/ PIA (Project Implementing agency).

ii. To scrutinize of Bank Reconciliation Statement of SHGs (Self Help Groups
under NRLM/Watershed Committee/ PIA (Project Implementing agency)).

iii. To examine Receipt and Payment Accounts, Income Expenditure Accounts
and the Balance Sheet of SHGs (Self Help Groups under NRLM/ Watershed
Committee/ PIA (Project Implementing agency) and verification of
submission of Quarterly Accounts to Janpad/Zila Panchayat.

iv. To prepare and submit Comments and observation of auditor on accounts and
audit opinion.

v. To prepare and submit all reports as specified by CAG 8 Formats under MAS
and relevant reports viz, Trial Balance, Income and Expenditure, Balance
Sheet and Utilization Certificates etc.

vi. To prepare and submit any other comments/reports which CA deems fit.
vii. To perform random audit of 10% of NRLM SHGs/ Watershed Committee/

PIA (Project Implementing agency) covering all the blocks / Janpad
Panchayat.

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2. Work Assignment for Gram Panchayats:-

i. To audit the expenditure under all schemes.
ii. To scrutinize of Bank Reconciliation Statement of Gram Panchayat.
iii.To examine Receipt and Payment Accounts, Income Expenditure Accounts

and the Balance Sheet of Gram Panchayats and verification of submission of
Quarterly Accounts to Janpad/Zila Panchayat.
iv. To prepare and submit Comments on observation and audit opinion given by
internal auditors if any.
v. To prepare and submit all reports as specified by CAG 8 Formats under MAS
and relevant reports viz, Trial Balance, Income and Expenditure, Balance
Sheet and Utilization Certificates etc.
vi. To prepare and submit any other comments/reports which CA Firms deems
fit.

3. Work Assignment for Janpad Panchayats: :-

i. To audit the Income and expenditure under all schemes incurred at Janpad
Panchayat Level.

ii. To scrutinize Bank Reconciliation Statement of Janpad Panchayat.
iii. To examine Receipt and Payment Accounts, Income Expenditure Accounts

and the Balance Sheet of Janpad Panchayats and verification of submission of
Quarterly Accounts to Zila Panchayat.
iv. To prepare and submit Comments on observation and audit opinion given by
internal auditors if any.
v. To prepare Quarterly consolidated sheet of scheme wise income &
expenditure for all the gram panchayat and respective Janpad for managerial
use of Janpad Panchayat officers.
vi. To prepare and submit all reports as specified by CAG 8 Formats under MAS
and relevant reports viz, Trial Balance, Income and Expenditure, Balance
Sheet and Utilization Certificates etc.
vii. To prepare and submit any other comments/reports which CA firms deems
fit.”

4. Work Assignment for District:-

i To audit the expenditure under all schemes/program/fund incurred at Zila
Panchayat Level.

ii To scrutinize Bank Reconciliation Statement of Zila Panchayat.
iii To examine Receipt and Payment Accounts, Income Expenditure Accounts

and the Balance Sheet of Zila Panchayats and verification of submission of
Quarterly Accounts to State Head Quarter.
iv To prepare the Quarterly consolidated statement with reference to all
Gram/Janpad Panchayats of concerning district for Income/Expenditure and
balances including assets, liability and advances for managerial purpose for
Zila Panchayat Officer.
v To prepare and submit Comments on observation and audit opinion given by
internal auditors if any.

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vi To prepare and submit various reports and certificates as required by central
or state govt time to time.

vii To prepare and submit all reports as specified by CAG 8 Formats under MAS
and relevant reports viz, Trial Balance, Income and Expenditure, Balance
Sheet and Utilization Certificates etc.

viii To prepare and submit any other comments/reports which CA Firm deems
fit.

5. Work Assignment for Special Exercise to increase Own Source Revenue (OSR)
at every Gram Panchayat/janpad panchayat and zila panchayat:
CA Firm should also require to compile database and report thereon in
required format for all panchayats which includes data of Population, Utilities
available, Property situated/constructed, Services provided by all panchayats
and details of thereof.

This database must include but not limited to:-
i) Population of all panchayats
ii) Number of permanent and temporary Dwelling in panchayat area and

Tax collected to be collected and tax collected thereon if any.
iii) Number of Haat bazaar organized in a month and charges taken from

participant
iv) Source of water supply and there billing system
v) Number of Govt and private clinic in panchayats and number of

doctors and nurses available in the clinic.
vi) Detail of any shop establishment charges taken by panchayats and no of

approximate shops operated.
vii) Detail of system of waste collection and recycle management system

operated in panchayats.
viii) Any certificate or license issued generally to residents
ix) Detail of any industrial activity in panchayat area
x) Details of any Mines operated in area and tax collected thereon.
xi) Detail of sewerage system if any and charges collected from residents
xii) Detail of Waste management system in panchayat & any charges

collected for this.
xiii) Details of property of panchayat which was given on lease or Rent and

rent collected
xiv) Any other services provided by the panchayats.

On the basis of report compiled by CA firm government will be able to take
various decisions related to new developments and resource availability. For
this purpose all panchayats official/secretary will collect and provide required
data to CA Firm for further compilation. CA firm will compile the data and
consolidate it for district. Appointed CA firms have to support panchayats
person for proper documentation and collection of OSR.
The auditor has to compile database initially for all the heads of OSR for
particular panchayats and update it in every three month. The CA Firms has:

i. To compile data related to OSR like Houses, water connections, Haat
Bazar, Mines etc operated in panchayat area from panchayat.

ii. To compile complete database as per prescribed format using above
database.

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iii. To give regular report on OSR due and collected and deposited in to
bank account

iv. To give Quarterly MIS report in prescribed format

6. Work Assignment for State Head Office:-
i. To audit the expenditure under all schemes incurred at State Head Quarters
Level.
ii. To scrutinize Bank Reconciliation Statement of State Head Quarters.
iii. To examine Receipt and Payment Accounts, Income Expenditure Accounts
and the Balance Sheet of State Head Quarters.
iv. To prepare the consolidated account with reference to Gram/Janpad/Zila
Panchayats Accounts and the list of advances, assets and liabilities.
v. To prepare and submit Comments on observation and audit opinion given by
internal auditors if any.
vi. The Social Audit of PRIs have to be examined and if there are any
irregularities, those have to be reported.
vii. To prepare and submit various reports and certificates as required by central
or state govt time to time.
viii. Also prepare scheme wise Quarterly management report for state level
authorities.
ix. To prepare and submit all reports as specified by CAG 8 Formats under MAS
and relevant reports viz, Trial Balance, Income and Expenditure, Balance
Sheet and Utilization Certificates etc.
x. To prepare and submit any other comments/reports which CA Firms deems
fit.

3.1 Detailed Scope of work for Quarterly Auditor :

The Appointed Agency has to Examine at all level that:-

i. All the fund have been utilized in accordance with the guidelines, directives
acts and rules issued by Govt. of India, State Government and Funding
Agency, with due economy and efficiency and transparency only for the
purpose for which the fund were provided.

ii. Counterpart fund, if any, have been provided and used in accordance with the
relevant provisions of Act & Rules, with economy and efficiency and
transparency only for the purpose for which they were provided.

iii. There is no diversion of funds for others purposes and there is no case of
fraud, embezzlement, theft and loss.

iv. Goods and services have been procured in accordance with the provisions in
the rules and orders issued by the Concerning Authorities.

v. Goods and services are adequately handed over and used solely for their
intended purposes and exit protocols for work completion are followed.

vi. All necessary supporting documents, records and accounts have been kept in
respect of scheme expenditure. Clear linkages exist between the books of
account and reports presented to the District & Head Office.

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vii. Provide management with evidence based feedback on adherence to
procurement manual by authorities and procurement guidelines at operating
levels.

viii. All the transaction have been accounted for and the accounts have been
prepared in accordance with Accounting standard of scheme and give a true
and fair view of the financial situation of the scheme.

ix. Reconciliation of fund transferred by Government/Council to Zila Panchayat,
fund transferred from Zila Panchayat to Janpad Panchayat/Gram Panchayat/
line department SHGs (Self Help Groups)/Watershed committee/PIA (Project
Implementing agency) and other implementing agencies and fund transferred
from Janpad Panchayat to Gram Panchayat/working agencies.

x. Scrutiny of Bank Reconciliation Statement.

xi. Scrutiny of Quarterly squaring of accounts and advances.

xii. Complete receipt payment, income expenditure trial balance and balance sheet
etc of accounts along with comments.

xiii. Any other financial norms which CA Firms deems fit.

xiv. Special attention should be given in following areas -

a. Expenditure incurred is strictly in accordance with the prescribed
financial norms. The expenditure statements / financial statements are
drawn from the books of accounts and reporting proper utilization of
funds as per the prescribed norms and in the best interest of the
programme.

b. Verification of approval of competent authority in case, actual
expenditures exceed the budget allocation/sanctions.

c. Funds are used economically efficiently and economically to the purpose
which they are provided.

d. Ensure the Quarterly bank reconciliation of all the bank accounts.

e. The auditor has to ensure that each item of expenditure has been covered
by a sanction, either general or specific, accorded by competent authority,
authorizing such expenditure. The audit of sanction is directed both in
respect of ensuring that the expenditure is properly covered by a sanction
and also to satisfy that the authority sanctioning it is competent for the
purpose by virtue of powers vested in it.

f. It is required to be seen that the expenditure is incurred with due regard to
the broad and general principle of financial propriety. The auditor needs
to bring out the cases of improper, avoidable or in-fructuous expenditure
even though the expenditure has been incurred in conformity with the
existing rules and regulations. The Auditor is required to secure a
reasonably high standard of public morality by looking into the wisdom,
faithfulness and economy of transactions.

g. Further, the auditor is expected to analyze the various programmes,
schemes and projects run by the concerned district/block where large
financial expenditure has been incurred are being run properly and are
yielding results as expected of them.

h. The books and accounts kept are as per guidelines.

i. The discrepancies regarding accounts, procurements and bank
reconciliation should be reported.

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j. It should be seen that separate accounts are prepared for each Scheme and
proper authentic vouchers are kept by every office whose accounts have
been audited.

k. As per directions, cheques must be issued by authorized officials &
money is drawn only by competent authority.

l. Regulation regarding adjustment of advances has been strictly followed.

m. Verify whether payment of any liability that is time barred has the
approval of competent authority.

n. Examine whether Receipt and Payments vouchers are serially numbered.

o. Examine whether the Bank Adjustment vouchers are supported by
genuine documentary evidence. Verify the accuracy of amounts directly
debited by bank and the accounting treatment thereof.

p. Verify whether any capital expenditure has been charged to revenue and
vice versa.

q. Examine whether Bank balances maintained by the District/Block/GP/
SHGs (Self Help Groups)/NRLM/ Watershed committee/PIA (Project
Implementing agency) are in excess of the prescribed requirements (if,
any) of the District/Block/GP as the case may be. CA Firms may be
authorized by CEO ZP/JP to get Bank Account Statements of GPs/ SHGs
to prepare proper BRS and verify with Cash Book and Books of
accounts.

r. Comment on old outstanding items in bank reconciliation along with
reasons and whether the same have been reversed if stale.

s. Check of salary as per attendance records.

t. Whether payment made to employees are correct.

u. Whether any advances are outstanding.

v. Auditors to report on cases of irregular/unreasonable payments made.

w. Verify whether proper deductions have been made from the salary of the
employees either on account of PE/ESI/Professional Tax/TDS and the
same have been properly deposited within the prescribed time.

x. Verify whether TDS deducted from the salary of the employees as well as
payments to contractors, professionals or others is as per the rules and
regulation prescribed by The Income Tax 1961 and amended from time
to time.

y. Whether TDS returns have been filed within the prescribed time limit and
whether PAN of employees correct and parties have been mentioned.

z. Whether advances have been released by specific approval of competent
authority. Whether the same have been recovered or adjusted within the
prescribed time limit.

aa. Whether any discrepancy observed on the physical verification of fixed
assets or stores. If yes, whether the same has been accounted for in the
books of accounts.

bb. Auditors should verify and comment upon the system being followed for
claims of employees.

cc. It should be seen that only the competent authority has utilized the
powers delegated to them.

dd. The manuals codes and rules etc. have been followed.

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ee. The Proper bank account is operational.
ff. The cases of delayed payments.
gg. The categorization of receipts and payment.
hh. The use of Gram Swaraj/Pria software/ Panchayat Darpan (PFMS

Software)/SSSM/PES/ all other applicable software of the department.
ii. The use of audit software for tracking of audit paras.
jj. The Cash Balances should be deposited immediately to the Bank, no cash

is allowed to be drawn neither any cheque book will be used by the
agency all payment made by the electronic transfer (NIFT/FTO/RTGS).
kk. No Bank Account will be opened or closed without the permission of
higher authorities.

Further the Auditor will examine –

S.No. Particulars
1. Brought forward of Opening Balance on 1st April of each year correctly.
2. Checking of Cash / Bank Book Totals including carried forwards.
3. Vouching of receipts and payment with supporting documents.
4. Whether sanctioned amount of all vouchers are tallying with Cash / Bank –Book?
5. Checking of Cash-Bank Contra entries.
6. Verify all vouchers entered in the Cash / Bank Book duly sanctioned/ attested by Officer in
charge?
7. Physical Cash Verification.
8. Preparation of Bank Reconciliation Statements.
9. Checking Quarterly expenditures incurred & submitted with supporting documents.
10. To Check receipts have been deposited timely.
11. Check whether the Demand Draft issued has been cleared within reasonable time limit.
12. General Ledger scrutiny, accounting transactions are correctly accounted for in the respective
Account Heads.
13. Check calculation of payments and entry in the proper books.
14. Check that payment to government, other are made timely.
15. Verification of different deductions.
16. Deduction of different taxes, statutory liabilities and their deposition.
17. Physical Verification of any Investment / Deposit and check its timely renewal / realization the
maturity along with Interest.
18. TDS has been deducted as per the provisions of the IT Act/GST Act and deposition in made
within prescribed time period.
19. To check credits for interest on bank deposits and saving account with bank statements/bank
reconciliation statement.
20. To check on electronic payment system, whether it should be done as per guideline for the
same or not?
21. To check credits for interest on bank deposits and saving account with bank statements / bank
reconciliation statement.
22. To Check advance have been adjusted timely and no long pendency of advances is there.
23. To Check Govt. money has not been kept in F.D.R
24. To check govt. money has not been kept in current account.
25. Check irregularities in payment on the following counts :

a) Splitting of Bills.
b) Purchase expenses without following procurement norms.

c) Overwriting on bills.
d) Inadequate/improper supporting/authorization for payments.

e) Inadequate delays in payments.
f) Purchase made directly for which rate contract is available.

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26. Guidelines for verification of Procurement:
a) The proposal of purchase has been approved by the competent authority or purchase
committee
b) Splitting of sanctions.
c) Indent for purchase should give details of the quantity required, last purchase rate,
lead time and the name address of the consignee, etc.

d) Approval of mode of procurement.
e) Tender documents.
f) Contract award and its execution.
g) To check that the stores / goods received are properly recorded in the stock registers.
h) The quality of the Goods / stores purchased are certified by the competent person and

are as per the purchase order in terms of quality, quantity specification and price and
store register number is recorded on the bill /invoice. And Store verification is there
27. Guidelines for verification of Procurement :
a) Original bill duly signed by the supplier is submitted
b) Supplier has put his initials in all cuttings/ corrections in the bill.
c) All supporting documents are attached with the bills.
d) Bills have been taken from authorized suppliers after following store purchase rules
e) Bills are passed for payment as per the norms of scheme.
f) Before passing the bills it is to be checked that all the terms and conditions have been
complied with.
g) Every final bill is checked in details with the measurement books if required.
h) Check whether valid GST invoice provided by the supplier or not.
28. Checking those legal recourses that have been taken in due course against defaulting
contractors or suppliers.
29. Physical Verification of Fixed Assets with the Fixed Assets Register.
30. To Check observance of store purchase rules.
Note
1. Appointed CA Firm’s Partner/CA Employee himself shall mandatorily go the clusters for
conducting Quarterly financial audit and monitoring of own source revenue of
panchayats.
2. The firm will be responsible for uploading audit paras and Quarterly final account and
other information on the software specifically developed for this purpose.
3. The firm is also expected to report on certain issues as and when required by different
programme heads/authorities.
4. The appointed firm will also be responsible to give any other financial reports/certificates
etc. required by GOI or any other govt. authority.
5. The audit for the financial year 2022-23 financial and Quarterly audit is to be conducted
by the appointed CA firm.

4. Standards:

The audit will be carried out in accordance with the Indian Standards + Panchayati Raj
Act + Government of India + Government of Madhya Pradesh for the Professional
Practice of Auditing issued by the Institute of Chartered Accountants of India. The
auditor should accordingly evaluate risk exposures relating to the unit’s governance,
operations and information systems, and plan the examination to detect indicators of
fraud and corruption.

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5. Reporting/Deliverables:

The audit report prescribed & covering Scope of work should be submitted as
follows:-

Quarterly Reports:-
i. Gram Panchayat: The Quarterly audit report (Scheme wise & Total) of Gram

Panchayats in prescribed format duly certified will be submitted to concerning
GP with a copy to concerning Janpad Panchayat latest by the last date of next
month.
ii. Janpad Panchayat: The Quarterly audit report (Scheme wise & Total) of
Janpad Panchayat in prescribed format will be submitted to Janpad Panchayat
office and a copy of the same to concerning Zila Panchayat latest by the last date
of next month.
iii. Zila Panchayat: The Quarterly audit report (Scheme wise & Total) of Zila
Panchayat in prescribed format duly certified will be submitted to concerning
Zila Panchayat with a copy to State Headquarters latest by the last date of next
month.
iv. State Headquarter: The Quarterly Audit report of all the scheme/Program etc
headquarter should be submitted to concerning headquarter with a copy to
MPSTEPS latest by the end of next month.

Quarterly Reports:-

i) Consolidated Scheme wise Report: A Scheme wise consolidated report for
whole District (covering data of JP & GP) in prescribed format shall be submitted
to the concerning district and concerning state head quarter with a copy to
MPSTEPS, latest by the last day of next month after the end of quarter.

ii) Consolidated Report (All Scheme): The consolidated audit report of particular
district (including all GP & JP) for all schemes as a whole in prescribed format
will be submitted quarter wise to Zila Panchayat and MPSTEPS, latest by the last
day of next month after the end of quarter.

Yearly Reports:-

The selected CA Firm will submit yearly audit report for financial year 2022-23:

i) Gram Panchayat: Yearly Audit Report for particular Gram Panchayat in prescribed
format (Scheme wise & Total) duly certified to respective Gram panchayat with a
copy to concerning Janpad Panchayat, Zila Panchayat & MPSTEPS, latest by
before 30th April of next financial year.

ii) Janpad Panchayat: Yearly Audit Report for particular Janpad Panchayat in
prescribed format (Scheme wise & Total) duly certified to respective Janpad
Panchayat & Zila Panchayat latest by before 15th May of next financial year.

iii) Zila Panchayat: Yearly Audit Report for particular Zila Panchayat in prescribed
format (Scheme wise & Total) duly certified to respective Zila Panchayat,
concerning scheme headquarter and MPSTEPS, latest by before 31th May of next
financial year.

iv) Zila Panchayat consolidated: Yearly Consolidated Audit Report for particular Zila
Panchayat in prescribed format (Scheme wise & Total) with consolidation of all
gram panchayat & janpad panchayat of district duly certified to respective Zila
Panchayat, concerning scheme headquarter and MPSTEPS, latest by before 15th
June of next financial year.

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v) State Headquarter: Yearly Audit Report of particular headquarter and consolidated
with districts as a whole audit report in prescribed format should be submitted to
concerning head quarter and MPSTEP latest by before 30th June of next year,
along with certificate required by GoI.

vi) Any other reports and certificates which may be required by the any concerning
authority including GoI.

Report on Own source Revenue:

i) Database: as per scope of work, CA firms should compile database initially and
submit within three month from appointment.

ii) Quarterly Report: on the basis of database and other related information should
submit special report in prescribed format latest by the last date of next month.

iii) Half yearly report: A half yearly updation of database should be provided by the
CA Firm.

iv) Yearly Report: yearly detailed report as per prescribed format should be submitted
on or before 30th April of next year.

The reports should cover following: :–
The flash Quarterly audit report including Receipt & Payment account, Bank
Reconciliation Statement should be supplied to the designated authority on a Quarterly
basis latest by the last day of the following month of quarter. This report will mainly
address the following issues:
i. Defalcation, theft, loss diversion of funds, misappropriation of funds.

ii. Major financial irregularities.

iii. Procedural laps.

iv. Accounting issues.

v. Non compliance of various reports.

vi. Observation on compliance – Action taking report.

vii. Status of creation of assets and liabilities.

viii. Any other information which programme heads may require or CA deems fit and
may be reflected in statement of accounts.

ix. The Quarterly/quarterly verified and audited bills/vouchers/statements should be
entered on the concern respected software of the department viz. Panchayat
Darpan/NRGES/SSSM/All other concerned software.

x. District wise audit report of the concerning scheme will be send quarterly to the
concerning state head quarter within one month after the end of quarter. A
Quarterly report (within one month of end of Quarter) will be supplied with
following statements.

a) Balance Sheet
b) Audited Trial Balance
c) Audited Receipts & Payment A/c
d) Income & Expenditure A/c
e) Bank Reconciliation Statements
f) Certified Quarterly expenditure reports.
g) List of long standing advances
h) Note on accounts and comments and observations of Auditor along with

audit report as the auditor understands suitable

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i) The management letter will also be given as the auditor understands
suitable.

xi) The Quarterly auditor’s opinion as to the overall adequacy of the systems of
internal control, indicating unambiguously whether that opinion is unqualified, or
adverse.

xii) Key management issues. The auditor should provide and Executive Summary
highlighting the critical issues which require the attention of the management and
the status of actions on the previous recommendations.

xiii) Detailed audit findings of each unit audited, with adequate descriptions of
weaknesses identified and the associated business impact and risk.

xiv) Appropriate and reasonable recommendation to address the identified weaknesses.

xv) Overall strengths and weaknesses in the procurement system and need for any
further guidance, instructions and capacity building

xvi) Responses to findings and recommendations by authorized persons stating the
timeline for remediation and the person responsible.

xvii) The report should be discussed and agreed with the auditable units and should be
structured to list the observations, the implications of the observations, the
suggested recommendation and the management comments/agreed actions. The
audit observations should be supported by instances and quantified, as far as
practicable. Copies of all concurrent audit reports shall be made available to the
external auditors.

xviii) OSR: Report and exercise on OSR should cover all the heads of OSR and CA
Firm should do exercise to achieve object of significant increase in OSR.

xix) To prepare and submit all reports as specified by CAG 8 Formats – (i) Format of
Quarterly/annual receipts & payments accounts (ii) Format of consolidated abstract
register (iii) Format of reconciliation statement (iv) Format of receivable &
payable (v) Format of immovable property (vi) format of movable property (vii)
Format of inventory register (viii) Format of demand collection & balance.

xx) Any other reports related to assignment which required by any CEO or program
heads.

6. Responsibilities of Auditors

(I) Cluster Auditor

i. The auditors shall extend all necessary cooperation to the Central (State Level)
auditor and if required they may have to submit the information in the formats as
suggested by the department. The auditor shall submit necessary details as
required.

ii. All auditor has to compulsory sent their copies of the report to the Central (State
Level) auditor and would be bound to give all other information/explanation
required for the purpose of consolidation and for the purpose of true of fair
presentation of account positions.

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iii. The Audit Team visiting the PRIs will submit a Schedule of Audit Plan in
coordination with ZP/JP level and ensure proper coverage and timely submission
of Reports.

iv. The issues relating to PIR audit at ZP level should be resolved through CEO Zila
Panchayat/ CEO/ZP only in case if it is unresolved it should be bought the
knowledge of collector of the district.

v. All audit agencies has to nominate nodal person in name for the conducting of this
audit. Nodal person should be the partner of the audit firm, who will execute the
agreement on behalf of agency.

(II) Responsibilities of Central (State Level) Auditor:-
i. The Central (State Level) Auditor will do Consolidation of all districts reports for
all the scheme at state level.
ii. The Central auditor is required to coordinate with all cluster auditor for their
district audit report for State Level Consolidation
iii. The auditor will provide the consolidated audit report along with Utilization
Certificate and any other required document by the central/state government.
iv. The Central Auditor shall prepare suitable/required formats for all the audit
reports for various schemes/PRI/Implementing agencies/ OSR/ Executive or
Management Report etc.
v. The central auditor will assist MPSTEPS for any task to supervise this
assignment.
vi. The auditors shall extend all necessary cooperation to the statutory/department
auditor and if required they may have to submit the information in the formats as
suggested by the department. The auditor shall submit necessary details as
required.

7. General Requirements:

The selected agency needs to recruit required qualified personnel to achieve the
following results:
i. Good tracking of fund utilization: Whether funds were utilized for the purpose

for which they were drawn by Gram Panchayat and the beneficiaries, are to be
tracked which would help to monitor actual fund utilization and put in corrective
measures where-ever needed.

ii. Good Analysis of input/outcomes linkages: Funds tracking by inputs would also
later allow comparison of outputs/outcomes with the inputs, which will enable to
analyze the cost effectiveness of the activities undertaken by the Panchayat.

iii. Transparency/Open information sharing with constituents on programs and
fund utilization: Transparency and accountability to the constituents are critical
to the success of Panchayat fund utilization for all the interventions. An open and
transparent financial management is the key to achieve good governance at all PRI
levels.

iv. Staff mobilization: The agency will mobilize the competent personnel required
for placement at Gram Panchayats, Janpad, District and State level to provide
hands on support for accounts and book keeping.

v. Capacity building: The agency will provide the necessary support for
capacity building of the concern PRI personnel responsible for accounts and
book keeping and also ensuring the accounts are maintained and available
online.

vi. Training: The Agency will provide Training of Accounting & Financial
Management to all Accounting staff at Zila Panchayat & Janpad Panchayat

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and Secretary/rojgar Sahayak at Gram Panchayat & other staff as decided by
the CEO, Zila Panchayat of concerning District in every six months.

In this Training all faculties cost will be incurred by CA Firm and
infrastructure, administrative and refreshment cost, if any will be incurred
by respective District PRIs. CA firms will give training for two days at
Janpad Panchayat Place for Gram Panchayat Person & Janpad Panchayat
Person and at District level for Zila Panchayat staff. The CA firm will also
prepare detailed training module for this and circulate all trainee FoC.
vii. Coordination: The agency will work in close coordination with the set-up of the
Panchayati Raj Institution including and other implementing agencies and at the
State level Panchayat and Rural Development. The department will advise the
PRIs to make suitable sitting arrangement for agency/CA firm's representative and
cooperate for performing their duties.
viii. A Nodal Officer at ZP/JP/Cluster level will be nominated by the department
who will coordinate with Auditors for submission of books of accounts and
help in getting the books of accounts audited. The CEO ZP & JP will be held
responsible for this work. A Nodal Officer for each State Level Program will
be nominated by the Program Officer/HOD and they will coordinate with
Nodal Officer of MPSTEPS.
ix. Following officers will be held responsible to get audit done as per prescribed
term of reference;-

i. Gram Panchayat - Panchayat Co-Ordination Officer
ii. JP – CEO Janpad Panchayat
iii. ZP-Additional CEO/CEO Zila Panchayat
iv. State – Nodal Officer of scheme and CEO MPSTEPS

x. State level Audit: the CA firm applied for state level audit &
supervision/coordination with all cluster CA firms will be responsible for regular
State level audit of different Schemes of Rural Development, Panchayat
department and other government programmes as per scope of work, the firm also
responsible for development of various format of Audit & other reports, MIS
Reports etc. required for better presentation & control, checklist for maintain
uniformity of all reports as per scope of work. The firm also do coordination from
all cluster CA firms time to time and provide consolidated information to higher
authority of department.

xi. The auditor shall submit necessary details as required.
xii. The agency is to audit for all the scheme of rural development, Panchayat

department and other govt. programme funds routed through Panchayats and other
implementing agencies. The list of such schemes can be seen annexure-IV or can
obtain the data from the office of CEO, MP STEPS.
xiii. The Audit Team visiting the PRIs will submit a Schedule of Audit Plan in
coordination with ZP/JP level and ensure proper coverage and timely submission
of Reports. The CA firm also issue identity card of their staff. Also the CA firms
would not allow to change staff frequently. A list of appointed staff as per
requirement should be submitted to concerning Janpad Panchayat and Zila
Panchayat with a copy to MPSTEPS
xiv. The issues relating to PRI audit at ZP level should be resolved through CEO Zila
Panchayat/ CEO/ZP only in case if it is unresolved it should be bought the
knowledge of collector of the district. Who will ensure to provide necessary
support to complete the task. In all cases CA firm would inform to MPSTEPS and
take in loop.

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8. Coverage for the Audit:

Gram Panchayat/Janpad Panchayat/Zila Panchayat/State Level Head quarter of
all scheme/program/fund and proper recording/reporting of OSR transactions in
all level of Panchayats and SHG’s (Self Help Group) working for implementation
of concerning schemes, PIA, Watershed Committee and other implementing
agencies etc. This audit also cover the Handholding support for Strengthening of
Financial Management System and of all PRIs

The audit would cover the entire organization and the three levels PRI (Panchayati Raj
Institution) and State level head quarter and work done by other implementing agencies
on a 100% basis. The SHG audit will be as per requirements of concerning scheme.
Further in future if the number of panchayats increases or decreases due to
government policy or by other means, In that case the appointed CA firm has to
conduct audit of all panchayats of that time and the payment will be released
accordingly.

9. Penalty clause:

If the successful bidder fails to complete the work and submit required reports within the
given time frame the penalty will be as under:-.

1. For Quarterly Report: The firm has to submit Consolidated Audit Report
on Quarterly basis by the end of forth coming month of the that Quarter, in
case of the delay in submission of Quarterly report after the above period on
the part of the firm, penalty will be 2% per month for each month of delay.
If the delay continue then the penalty will be maximum up to 10% of
concerning quarter fees and the firm will be considered as defaulter.

2. For Half Yearly Report: The firm has to submit Half Yearly Report on OSR
Exercise by the end of forth coming month of the that half year, in case of
the delay in submission of Half yearly report after the above period on the
part of the firm, penalty will be 2% per month for each month of delay. If
the delay continue then the penalty will be maximum up to 10% of
concerning Half Year fees and the firm will be considered as defaulter.

3. For Yearly Report: The firm has to submit Consolidated Audit Report on
Yearly basis by the end of forth coming month of the financial year, in case
of the delay in submission of Yearly Report after the above period on the
part of the firm, penalty will be 2% per month for each month of delay. If
the delay continue then the penalty will be maximum up to 10% of
concerning Half Year fees and the firm will be considered as defaulter.

4. If the successful bidder fails to complete the work within the stipulated period
from the date of signing of the agreement, the performance security/ deposit of
the bidder shall stand forfeited.

5. In the event of gross negligence, irregularity, laxity or misconduct on part of the
CA firm's personnel and where within one year of the Audit Report any
misrepresentation or any fraud (which on the reasonable basis can be detected by
the CA Firm during the course of the Audit) is detected by any Other Authority.
The contract shall be terminated and the ICAI will be informed for disciplinary
action and CA the firm will be black listed.

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6. CEO MPSTEPS reserves all the rights for making any decision related to this
clause. Decision of the CEO, MPSTEPS in this regard will be final and binding
on both the parties

10. Termination of Contract:

If the CA firm fails to perform as per contract conditions and complete the assignment
as per time schedule or found guilty of gross negligence, irregularity, laxity or
misconduct on part of the CA firm's personnel and wherein any misrepresentation or any
fraud (which on the reasonable basis can be detected by the CA Firm during the course
of the Audit) is detected by any authority the contract shall be terminated and the ICAI
will be informed for disciplinary action and the CA firm will be blacklisted. In addition,
performance security deposited by the firm shall stand forfeited to the government.
However, before taking any such action firm will be given an opportunity to present his
case, by giving 15 days show cause notice.

The Selected CA Firms should conduct and carryout the job/responsibilities properly as
described in the RFP. No subletting will be allowed by the selected/appointed CA Firms.
If any CA Firms are found sub-letting their job/activities to some other CA Firm or
agency the CA firm’s agreement will be terminated and their Performance Security will
be forfeited and Government may recommend ICAI to take disciplinary action against
the defaulting CA Firm and black list them as per rules.

The state government with due diligence and reason, has right to terminate the contract
at any time.

11. Terms of payment:

Payment to the firm shall be released by the MPSTEPS after due verification and competent.
i. Payment for Quarterly audit (which includes OSR exercise and progress Report) to the

firm shall be released by MPSTEPS on receipt of Consolidated Reports all accounts,
schemes and programs for all level of PRI’s along with the certificate duly verified by
CEO District Panchayat on quarterly basis. No piece meal payment shall be authorized.
Further the CA firm has to provide quarterly bill of Fees along with the reports duly
verified by CEO, Zila Panchayat to the MPSTEPS.
ii. Payment for last quarter of the year will be released only after the submission of yearly
reports.

iii.CA firm entrusted with the audit of the accounts of Bhopal-1 cluster will also audit the
accounts of State Head Quarters. Payment for the audit of State Head Quarters accounts
shall be released when audit of all schemes is completed and a consolidated report with
consolidated certified accounts is submitted and accepted by CEO, MPSTEPS. Before
submission of bill firm will obtain certificates from concerning Programme Officers and
submit these certificates with the bill.

12. Bid Evaluation:

A committee constituted for this behalf will act as Evaluation Committee and evaluate the
all bids received. The services of outside expert consultant can also be adjoined with the
evaluation committee. This Committee will also recommend required proceedings if any
during the course of bidding and award.
Any financial bid below to the prescribed minimum fees shall be rejected.

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13. Audit Records:

Relevant records will be made available by the concerned Programme Coordinator and
concerning State authority. The final consolidation of reports will be done at the District
level /State level as the case may be only.

14. Dispute Resolution:

i. In case of dispute related to district's audit, the matter shall be decided by
MPSTEPS.

ii. In all other cases of dispute the matter will be referred to CEO, MPSTEPS for
decision.
Any party not satisfied with the decision of CEO, MPSTEPS may appeal to the
Principal Secretary/Additional Chief Secretary, Panchayat, Rural Development and
his decision will be final.
All such disputes shall be referred to the competent authority stated above within
30 days of their occurrence.

15. Arbitration:

Any party not satisfied with the decision of the Principal Secretary/Additional Chief
Secretary may request for appointment of arbitrator under Arbitration and Conciliation
Act 1996.

16. Appointment and Signing agreement and operations:

(i) After selection and getting appointment letter the CA firm will have to enter into
agreement with
MPSTEPS for assignment of the district and the assignment as per TOR will have to
be started
Within 21 days after signing of the agreement. The TOR will be integral part of the
agreement.

(ii) Non disclosure agreement will be executed by the selected CA firms as per
prescribed format.

(iii) The auditor shall be given access to all legal documents, correspondence and any
other information associated with the scheme as per the demand of the auditor.

(iv) The concerning CA firm officials themselves will have to visit the audited
institutions Quarterly.
It is mandatory on the firms.

16.1 As mentioned above, guideline for the assignment as expected in TOR and successful
bidder firms will have to adhere to that.

16.2 The work of audit may be extended further on the basis of performance of the firm for
further one year up to maximum two years and the decision of the CEO MPSTEPS will
be the final authority in this regard.

25
17. Taxes and Duties:

The CA Firm shall fully familiarize themselves about the applicable Domestic taxes
(such as GST, Income Tax, duties, fees, levies etc.) on amount payable by
Client/Knowledge Partner under the contract and any liability under any Labour Law.
The CA Firm, their partner and personnel shall pay such domestic tax, duties, fees and
other impositions (wherever applicable) levied under the applicable law.

18. Review and meeting with CAs:

The lead partner of the selected firm along with his team has to attend quarterly review
meeting at CEO, MPSTEPS Office Bhopal compulsorily and no remuneration/expenses
will be allowed to claim for attending this meeting.

19. Legal Jurisdiction:

All legal disputes between the parties shall be subject to the jurisdiction of the
competent Courts situated in Bhopal, Madhya Pradesh only.

20. Notice:

Any notice, request or consent required or permission to be given or made pursuant to
this contract shall be in writing. Any such notice ,request or consent shall be deemed to
have been given or made when delivered in person to an authorized representative the
party to whom the communication is addressed, or when sent to such party at the address
mentioned in the project specific Contract/Agreement.

Authorized Signatory of Firm (With Seal) Submitting the Bid

Name of Signatory ---------------------------

Enclosures:

Annexure I : The information regarding PRI's of whole of MP (Cluster, District,
Janpad & Gram Panchayat No.)
Annexure II : Technical Bid.
Annexure III : Financial Bid and Cost Breakup Formats.
Annexure IV : List of CCC/SSC Schemes
Annexure V:
Annexure-VI : Indicative Technical Bid Forms (Form I to V)
Anneure VII : Cluster wise Summary for EMD/Tender Document Amount
Instructions for deposit of Tender Fees & EMD Amount on portal

26
Annexure – I

The information regarding PRI's of whole of MP (Name of Cluster,
District, Janpad & No. of Gram Panchayat)

S. No Cluster Name Cluster Division No of Zilla No of JPs No of GPs
1 Bhopal 1 1 BHOPAL 1 BHOPAL 2 187
2 BHOPAL 1 RAISEN 7 494
3 BHOPAL 1 SEHORE 5 497
BHOPAL 1 14 1178
4 Bhopal 2 2 BHOPAL 2 3 6 622
BHOPAL 2 RAJGARH 7 577
5 BHOPAL 2 VIDISHA 13 1199
CHAMBAL 6 439
6 Chambal 3 CHAMBAL 2 7 478
CHAMBAL BHIND 3 225
7 CHAMBAL MORENA 16 1142
GWALIOR SHEOPUR 4 329
8 GWALIOR 3 290
GWALIOR 3 5 421
9 Gwalior 4 GWALIOR ASHOKNAGAR 4 255
GWALIOR 8 587
10 GWALIOR DATIA 24 1882
INDORE 1 GUNA 2 167
11 INDORE 1 GWALIOR 7 422
INDORE 1 SHIVPURI 4 312
12 INDORE 1 9 589
INDORE 1 5 22 1490
13 INDORE 2 BURHANPUR 6 288
INDORE 2 KHANDWA 7 409
14 Indore 1 5 INDORE 2 13 761
INDORE 2 INDORE 6 375
15 INDORE 2 KHARGONE 32 1833
JABALPUR 1 10 689
16 JABALPUR 1 4 7 364
JABALPUR 1 ALIRAJPUR 7 516
17 JABALPUR 1 BARWANI 24 1569
JABALPUR 2 6 407
18 Indore 2 6 JABALPUR 2 DHAR 9 486
JABALPUR 2 JHABUA 6 446
19 JABALPUR 2 21 1339
JABALPUR 3 4 8 635
20 JABALPUR 3 BALAGHAT 11 784
JABALPUR 3 DINDORI 19 1419
21 NARMADAPURAM JABALPUR 10 554
NARMADAPURAM 3 207
22 Jabalpur 1 7 NARMADAPURAM 3 7 421
NARMADAPURAM KATNI 20 1182
23 MANDLA
NARSINGHPUR
24
3
25 Jabalpur 2 8 SEONI
CHHINDWARA
26
2
27 BETUL
HARDA
28 Jabalpur 3 9 HOSHANGABAD

29 3

30 Narmadapuram 10
31
32

27
33 Rewa 1 11 REWA 1 REWA 9 820
400
34 REWA 1 SIDHI 5 1220
692
REWA 1 2 14 316
REWA 2 1008
35 Rewa 2 12 SATNA 8 392
558
36 REWA 2 SINGRAULI 3 460
1410
REWA 2 2 11 731
SAGAR 1
37 Sagar 1 13 PANNA 5 459

38 SAGAR 1 CHHATARPUR 8 1190
230
39 SAGAR 1 DAMOH 7 279
390
SAGAR 1 3 20 899
SAGAR 2 236
40 Sagar 2 14 SAGAR 11 227
418
41 SAGAR 2 TIKAMGARH(including 6 439
Niwari District) 1320
495
SAGAR 2 2 17 326
SHAHDOL 609
42 Shahdol 15 UMARIA 3 1430
22710
43 SHAHDOL ANUPPUR 4

44 SHAHDOL SHAHDOL 5

SHAHDOL 3 12

45 Ujjain 1 16 UJJAIN 1 NEEMUCH 3

46 UJJAIN 1 AGAR MALWA 4

49 UJJAIN 1 RATLAM 6

48 UJJAIN 1 MANDSAUR 5

UJJAIN 1 4 18
UJJAIN 2
47 Ujjain 2 17 DEWAS 6

50 UJJAIN 2 SHAJAPUR 4

51 UJJAIN 2 UJJAIN 6

UJJAIN 2 3 16

GRAND TOTAL 51 313

28
Annexure – II

TECHNICAL BID

(Every point of information is to be provided in the same order in which they have been written.
It is mandatory requirement otherwise the bid will be rejected. Every information is to be
supported by self attested supporting documents failing which the bid will be rejected.)

1. The firm should have minimum five exclusive partner out of which three should be
FCA as on 01.01.2022. Marking will be considered only for exclusive partners of
the firm.

2. The firm should be in existence for more than ten years as on 01.01.2022.
3. The firm should be empanelled with C & AG for the FY 2021-22.
4. The firm should have constitution certificate issued by ICAI as on 01.01.2022.
5. The firm must have minimum 50 team members including partners, CAs, articles and

paid semi qualified staff.
6. Out of the team two CAs partner must have diploma in system audit (DISA).
7. The firm should have an average annual turnover of minimum of Rs.50 lakh Per annum

of last three financial years. (F.Y. 2018-19, 2019-20 & 2020-21)
8. The firm must be peer reviewed as per the policy of ICAI and the review certificate, on

the date of submission of bid, must have been issued.
9. Firm must have Head Office or having Branch Office in Madhya Pradesh at least for last

5 years will be eligible to apply.
10. The firm must have 5 auditing experience in government department /PSU (Experience

of five different organization).
11. The firm should be registered with GST Authorities.
12. The firm must have PAN number.
13. The firm must provide declaration on his letter head for the following :-

i. The firm should not be black listed by any government department.
ii. The firm should not have any disciplinary action initiated by ICAI at any time.
iii. The firm should not have any affiliation of any type with foreign firms.

iv. The firm have adherence of the minimum wages act, labour laws, EPF and ESI rules.

v. The firm fulfills the above mentioned conditions independently and not in
consortium.

Undertaking

Certified that above information is true and correct to the best of our knowledge and if any
information found to be incorrect the firm's bid is liable to be rejected and the legal actions can be
taken against the bidder.

Date: ............................. Authorized Signature of Firm (With Seal)
Place : ........................... Name of Signatory --------------------------

29
Annexure -III

FINANCIAL BID

1- Name of the Firm …………………………………………………………………………...…

2- Name of the Cluster……………………………….

3- Format of Financial Bid:

Units No. Of Minimum Rate per Total Total Yearly
Units Quarterly Bid Price
fees (Per unit (Bid Quarterly (in Rupees)
Quarter)
Price) (per Bid Price (in

Quarter) Rupees)

(in Rupees)

1 2 3 4 5 6

Gram Panchayat ….…… 2150/-

Janpad Panchayat ….…… 9000/-

Zila Panchayat ……… 15000/-

State Head Quarter 01 150000/-

Total Fees for Cluster/Headquarter
Add: GST

Total fees inclusive of GST
*(Cost quoted in the bid will be on all inclusive basis viz., all expenses, all taxes, contingencies but
exclusive GST which will be paid as per applicable rate etc.)
This is to Certify that I have read and understood the terms and conditions of the RFP document
and the above rates have been quoted keeping in mind all the conditions, requirements and
expenses related thereto.
Date:------------

Authorized Signatory of Firm (With Seal)

Name of Signatory ---------------------------

ICAI Registration No:--------------

30
`ANNEXURE – IV

Centrally / State Sponsored Schemes:
A. Rural Development Schemes:
1. MGNREGA
2. SBA-NBA-TSC
3. RGM- Watershed
4. NRLM-SGSY
5. DAY NRLM/SRLM
6. IAP
7. IAY, PM Awas and CM Awas
8. MDM
9. PMKSY
10. Shayama Prasad Mukherjee Urban Mission.
11. SHGs under NRLM/ Watershed committee / PIA (Project Implementing agency)
B. Panchayati Raj Schemes:
1. DRDA
2. RGPSA
3. RGSA
4. BRGF
5. Pancha Parameswar Yojna
6. 13th FC/14th FC,/15th FC
7. State Finance Commission
8. Stamp Duty
9. Gaud Khanij
10. Mukya Mantri Jan Kalyan Sambal Yojna
11. Shram Kalyan Karmkaar Mandal

31
ANNEXURE –V

Form - I

Letter of Transmittal

To,
Chief Executive Officer,
MPSTEPS,
Bhopal.

Dear Sir,

We, the undersigned, offer to provide the audit services for [MPSTEPS BHOPAL] in
accordance with your Request for Proposal dated [Insert Date]. We are hereby submitting our
Proposal, which includes a Technical Proposal, and a Financial Proposal sealed in a separate
cover.

We hereby declare that all the information and statements made in this Proposal are true
and correct to the best of our knowledge and belief.

The rates quoted by us in the Financial Proposal are valid till 120 days 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 [MPSTEPS BHOPAL] 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.

Yours faithfully,
For Chartered Accountant

Authorized Signatory

32
ANNEXURE –V

Form - II

Particulars/Details of the Firm

Sl. PARTICULARS Supporting Documents required to

No. be submitted along with this Form

1 Name of the Firm

2 Addresses of the Firm:

Head Office/Branch Office Must be in Madhya Phone No:

Pradesh Fax No:

Mobile of Office In-charge:

Date of establishment of the firm

Date since when is office at the existing Station

3 Firm Income Tax PAN No. Attach copy of PAN card

4 Firm GST Registration No. Attach copy of Registration certificate

5 Firm’s Registration No. with ICAI

6 Empanelment No. with C & A G Attach proof of latest empanelment

with C&AG for the year under Audit.

7 No. of Years of Firm Existence & Date of Attach latest ICAI constitution

establishment of Firm certificate

8 Turnover of the Firm in last three years (2018-19 to Attach balance sheet and P&L

2020-21) Account of the last three years giving

Break-up of Audit Fee and Other Fees

Received.

9 Annual Average Turnover with Break-up of Fee Provide CA Certificate.

towards Audit, Income Tax matters and others

(Specify)

10 Audit Experience of the Firm Please give information in form T-4

11 Details of Partners:

Provide following details:

 Number of Full Time Fellow Partners associated

with the firm. Attested copy of Certificate of ICAI as

 Name of each partner, on 01.01.2022

 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

12 Peer Review Certificate conducted byICAI Copy of Peer Review Certificate
conducted of your firm in Last Ten

Years

33
ANNEXURE –V

Form - III

A. Details of Qualified Staff (Chartered Accountants)

(Please provide a self-attested copy of Certificate of ICAI as on 01.01.2022 for each qualified
staff)

S. No. Name of Length of Educational Area of Membership Relevant
Staff Association Qualifications Key
1 No. Experience
2 with the Expertise
Firm

(in years)

B. Details of Article /Semi Qualified Staff

S. No. Name of Length of Educational Area of Relevant Remarks
Staff Association Qualifications Key Experience
with the Expertise
Firm
(in years)

Article Clerks:
1
2
..
Semi Qualified Staff

34
ANNEXURE –V

Form - IV

Brief of Relevant Experience:

A. Experience of audit in relation to Government /State’s Social Sector Projects/PSU (Internal/

Statutory) Excluding PRI

S. Name of the Accounting Value of the Type/Nature Scope & Duration of Proof of the

No. Auditee Year for Assignment of Coverage Completion letter of

Organization which the Assignment of the of Work or

Audit was assignment Assignment Assignment

Conducted awarded by

the Auditee

Organization

(Pl attach a

copy of the

letter)

B. Experience of Audit of Panchayat Raj Institution and Scheme under rural development Dept.

of Madhya Pradesh. (Internal/ Statutory)

S. Name of the Accounting Value of the Type/Nature Scope & Duration of Proof of the

No. Auditee Year for Assignment of Coverage Completion letter of

Organization which the Assignment of the of Work or

Audit was assignment Assignment Assignment

Conducted awarded by

the Auditee

Organization

(Pl attach a

copy of the

letter) And

Mention the

Fee

Received

35
Annexure-VI

Cluster wise Summary for EMD/Tender Document Amount

S.No. Firm Name Cluster Name EMD Amount Tender Document
Amount

TOTAL

Date:------------

Authorized Signatory of Firm (With Seal)
Name of Signatory ---------------------------

ICAI Registration No:--------------

36
ANNEXURE – VII

https://mptenders.gov.in ऩोर्टल ऩर राशि जमा करने संबंधी ननर्देि:-

Earnest Money Deposit (EMD) :-

1. मदद कोई पभम सबी clusters के लरमे ननविदा बयना चाहता है तो उसे ऩोर्मर ऩय
उल्रेखित EMD की सम्ऩरू ्म यालि ऑनराईन जभा कयनी होगी।

2. मदद कोई पभम कु छ cluster के लरमे ननविदा बयना चाहती है तो उसे ऩोर्मर ऩय
Exemption सवु िधा का उऩमोग इस प्रकाय कयना होगा :-
ऩहरे पभम को EMD Exemption विकल्ऩ भे Yes को चमननत कयना है तथा
Exemption Document भे दस्तािेज की स्कै न काऩी जभा कय Exemption Value
भे िह यालि बयना है जो उसे सम्ऩरू ्म EMD भे से जभा नही कयनी है।

उर्दाहरण :-

मदद सम्ऩरू ्म EMD की यालि 17 cluster के लरमे 17,00,000 (1,00,000 रूऩमे
प्रत्मेऩक के लरम)े है तथा जजतनी Cluster के लरमे पभम EMD बयना चाहता है
उदाहयर् 2 Cluster के लरमे की EMD यालि 2,00,000 रुऩमे है तो उसे
Exemption Value भे 15,00,000 रुऩमे (17,00,000-2,00,000) रुऩमे बयना होगा।
तथा 2,00,000 रुऩमे की EMD यालि का बगु तान Processing Fee, tender Fee के
साथ एकभशु ्त ऑनराईन बगु तान कयना होगा।

नोर् :-

मदद पभम Exemption रेना चाहती है जैसा कक उऩय ननदेिो भे ददमा गमा है
उसे EMD Exemption Yes कयना जरुयी है मदद पभम इस चमन भे NO का चमन
कयके आगे Confirm to Pay के फर्न को Yes कयता है तो ऩोर्मर ऩनु ः उसे
Exemption Option भे फदराि नही कयने देगा तथा उसे सम्ऩरू ्म EMD यालि
जभा कयनी होगी।

Request for Proposal (RFP) Document Purchase:-

RFP Document Purchase के लरमे बी उक्तत ननदेिो का ऩारन सनु नचचत कये।

*****

37