NEWS PAPER ADVERTISEMENT
MEGHALAYA BASIN MANAGEMENT AGENCY (MBMA)
Meghalaya State Housing Financing & Cooperative Society Ltd. Campus, Upper Nongrim Hills,
Shillong- 793003
Expression of Interest
Meghalaya Basin Management Agency (MBMA) invites Expression of Interest for the following
assignment:
Engagement of an Internal Auditor for Meghalaya Community Led Landscape Management
Project under MBMA
Last date for Submission of the EoI: on or before 25th November, 2019 by 5:00 PM.
Detailed EoI and draft Terms of Reference is available at www.cllmp.com and www.mbda.gov.in
The EoI responses must be submitted in a sealed envelope to The Project Director Office of Meghalaya
Basin Development Authority, Meghalaya Basin Management Agency, C/o Meghalaya State Housing
Financing & Cooperative Society Ltd., Upper Nongrim Hills, Shillong- 793003.Phone: 0364-
2522043/2522921. For details please visit http://www.cllmp.com and http://www.mbda.gov.in
REQUEST FOR EXPRESSIONS OF INTEREST
(CONSULTING SERVICES FIRMS SELECTION)
INDIA
COMMUNITY LED LANDSCAPES MANAGEMENT PROJECT
Project # 157836
Assignment Title: Engagement of an Internal Auditor for Meghalaya Community Led
Landscape Management Project under MBMA
Reference No: CS - 12
1. The Government of Meghalaya, with financing and technical support from the World
Bank, is implementing a project titled "Community Led Landscapes Management
Project". The objective of CLLMP is:
Preparation and implementation of village based Community NRM Plans with
landscape approach in 400 villages
Strengthening capacity building of communities, traditional institutions and other
stakeholders for landscape management
Knowledge management and communication services for landscape management.
The Meghalaya Community Led Landscape Management Project (MCLLMP)
will work with the communities broadly in the area of forest and water and will
help in identifying activities for degraded forest, soil and water conservation,
restoration of springs and water bodies, nature based tourism, agro-forestry and
homestead forestry. The project will enhance skill and technical capacity of
communities along with strengthening support to social system.
2. Objective of this assignment is:
a. express an independent professional opinion with regard to efficiency,
effectiveness and economy of the program operation;
b. evaluate the adequacy and effectiveness of the financial management and internal
control system;
c. ensure compliance of the laid down Project Implementation guidelines and
procedures;
d. provide timely information and recommendation to the Management on
improvement of systems.
3. Period of Consultancy: The time period for the said consultancy shall be two years from
the date of award of contract. The duration may be extended if required with mutual
agreement of the parties. The draft Terms of Reference for the assignment is available at
www.cllmp.in
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4. The Meghalaya Basin Management Agency invites eligible consulting firms
("Consultants") to indicate their interest in providing the Services. Interested Consultants
should provide information demonstrating that they have the required qualifications and
relevant experience to perform the Services. The short-listing criteria are:
SL. SUPPORTING
CRITERIA
NO DOCUMENTS
1 The firm should be registered with the ICAI since Incorporation /
last (8) years as on April 01, 2019. registration certificate
of ICAI
2 The firm should be empaneled with the office of C&AG letter for
C&AG. Firms empaneled with C&AG for major empanelment for FY
audits will have an added advantage. 2017-18 and onwards
3 The firm should have at least two partners and two ICAI firm card
full time qualified Chartered Accountant/ Cost
Accountant
4 The firm should have average turnover of Rs 30 Audited Financial
lakhs during the last three financial years (FY 2018- Statements for the
19, FY2017-18, and FY2016-17) from audit fees said years. GST and
Registration copies.
5 The firm should have completed at least three Self-certification
similar assignments of conducting Internal Audit in
Government Departments / PSUs during the last (5)
years.
NOTE: A mandatory submission of Self declaration by Consultant that "The
firm or its members are not presently debarred by ICAI for any professional
misconduct" is required to be submitted along with the above requirements.
5. The consultant will be selected in accordance with the Quality & Cost Based Selection
(QCBS) method set out in the World Bank's "Procurement Regul ations for IPF
Borrowers; Procurement of Goods, Works, Non-Consulting & Consulting Services, July
2016", available at www.worldbank.org. Attention of the interested agencies is drawn to
paragraph 3.14 of the said Regulations relating to the Conflict of Interest.
6. Consulting firm may associate with other firms in the form of a joint venture or a sub-
consultancy to enhance their qualifications. The "Association" may take the form of a joint
venture (with joint and several liability) or of a sub-consultancy, and this should be stated
clearly in the submission.
7. Further information can be obtained at the address below during office hours [10.00 AM
5.00 PM]
8. Expressions of Interest must be delivered in a written form to the address below through
registered post/speed post/ courier/ by hand by 25th November, 2019
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Sd/-
The Additional Project Director
Community Led Landscapes Management Project (CLLLMP)
Meghalaya Basin Management Agency
C/o Meghalaya State Housing Financing Co operative Society Ltd.
Nongrim Hills, Shillong-793003
Meghalaya, India
Tel. no. +91 364-2522921/2522992
Email ID: mbdaprocurement@gmail.com
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Terms of Reference (TOR) for engagement of Internal Auditor
for Meghalaya Community Led Landscape Management Project (MCLLMP)
A. Brief Note on the Project
1. The Government of Meghalaya is in receipt of a loan from the International Bank for
Reconstruction and Development (IBRD) for a project titled `Meghalaya Community-led
Landscape Management Project' (MCLLMP). The project cost is $60 million inclusive of the
loan of $48 million from World Bank and Government of Meghalaya Share of $12 million. The
Meghalaya Basin Management Agency of the Government of Meghalaya has been notified as the
Implementing Agency and the project period is from 2018 2023.
2. The project objective is to strengthen the community to develop sustainable Natural Resource
Management (NRM) system in selected landscapes that will lead to restoration of degraded
landscape of the state and build climate resilience.
3. Project Components:
Component 1: Strengthening knowledge and capacity of communities for NRM.
Component 2: Community-led landscape Planning and Implementation.
Component 3: Project Management and Governance at the State, District level and Village
level.
4. Project coverage: The project shall be implemented in 400 very critical and critical (degraded)
landscape villages spreading across seven districts, namely, East Khasi Hills, South West Khasi
Hills, East Jaintia Hills, Ri Bhoi District, West Garo Hills, East Garo Hills and South Garo Hills.
5. Project Implementation: The Meghalaya Basin Management Agency has put in place the State
Project Management Unit at the State level and the District Project Management Units at the
districts level for implementation of the project in collaboration with other partners, namely, (a)
the Village Natural Resources Management Committee (VNRMC) at the Village level in critical
landscape villages identified and selected for Community Natural Resources
Management(CNRM) intervention and also (b) the Department of Soil and Water Conservation,
Water Resource Department, Forest Department, etc., which shall provide technical inputs to
communities in preparation of CNRM plans and implementation of the CNRM plans.
6. Project Implementation Guidelines: The project is to be implemented in accordance with the
Legal Agreement for the Project. Other reference documents are IBRD (World Bank),
Procurement regulations, Project Implementation Manual and Community Operations Manual.
B. Internal audit:
1. The Project Implementation guidelines require the need for an Internal Audit to provide the
Project Management with periodic reports on the efficacy and efficiency of the financial,
Procurement and Contract management system and internal and financial controls, the degree of
risk and efficiency of risk management control and governance processes.
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2. Objectives of internal audit: It is an independent, objective oriented function to add value and
improve organization's operations. It should help the project to accomplish its objectives by
bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk
management, control and governance processes.
The Internal auditor shall-
a. express an independent professional opinion with regard to efficiency, effectiveness and
economy of the project operation;
b. evaluate the adequacy and effectiveness of the financial, procurement and contract
management and internal control system;
c. ensure compliance of the laid down Project Implementation guidelines and procedures;
d. provide timely information and recommendation to the Management on improvement of
systems.
3. Coverage and Standards for the Internal Audit: The Internal Audit shall cover,
a. the SPMU at the State level,
b. the 7 DPMUs in the aforementioned seven districts in the State, and also
c. the 400 Nos of VNRMCs where CNRM intervention are taken up (for each audit period,
20% of the VNRMC will be selected on a sample basis in consultation with SPMU). The
VNRMC will be selected in such a manner that all VNRMCs are covered for the internal
audit during the lifetime of the project.
The audit should be carried out in accordance with the Standards on Internal Audit prescribed by
the Institute of Chartered Accountants of India and will include such tests and controls, as the
auditors consider necessary for performance of the audit. The specific areas of audit should
include the following:
a. Adequacy and quality of the accounting and financial management records maintained at
SPMU and DPMU. The auditor will verify whether adequate supporting documents such
as bills, and vouchers and contract records are maintained in respect of project
transactions;
b. Assess the adequacy of internal and financial controls exercised by SPMU and DPMU in
processing of transactions;
c. Assess the level of compliance as laid down in the project implementation guidelines;
d. Review the efficiency and timeliness of receipt of funds into the project bank account and
payment for project activities. The auditor will report delays (if any) on receipt of funds
from GoM and payments made by SPMU and DPMU to suppliers, vendors and
consultants;
e. Review the correctness of the financial transactions recorded in the Project Accounting
System with underlying accounting records;
f. Verify whether expenditures accounted under the project are eligible for financing;
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g. Verify whether Interim Financial Report (IFR) submitted to the World Bank is prepared
from the financial statements generated from the accounting system and underlying
accounting records; verify whether these expenses are classified correctly as per
disbursement category of Legal Agreement;
h. Verify whether clear linkages exist between the accounting records, IFR (submitted to
World Bank) and Project Financial Statements;
i. Assess whether an adequate system is in place to ensure that goods, works and services
are being procured in accordance with the procurement arrangements, delegations and
procedures prescribed for the project including any capacity building efforts and
guidance provided to the District and below in terms procurement procedures/rules
which they need to adhere to, oversight mechanism to ensure compliance to
rules/procedures for procurement, maintenance of procurement records as per agreed
arrangements, process/procedure for addressing and monitoring procurement related
complaints, contract administration, monitoring performance, and management
including disclosure and timeliness of payments, red flags, etc. The audit of
procurement management should be a separate section of the report and shall report by
exception any such cases found where these are not followed. Verify whether fixed
assets procured under the Project are appropriately recorded in the books of accounts
and utilized for the Project purpose only. The auditor will carry out physical verification
of sample of assets;
j. With respect to Funds advanced to VNRMC, the auditor will carry out a detailed review
of (a) disbursement records maintained by SPMU and DPMU and report delays (if any)
in release of funds to VNRMC, (b) maintenance of accounting records and supporting
documents at VNRMC, procurement function carried by VNRMC, validate the
expenditures reported in the Utilization Certificates. This task will involve field visits to
20% VNRMC in each audit cycle. The auditor may also be required to provide hands on
training to VNRMC staff during the visit on good accounting practices.
4. Data, services and facilities to be provided by SPMU: The Internal audit would be given
access to:
All the project documents such as Project Appraisal Document, copy of Legal
Agreements and papers relevant with the audit, including Project Implementation
Manual, Community Operation Manual, Government Resolutions, minutes of executive
committee meetings, policies and procedures issued by SPMU, etc.;
Access to all documents, correspondences and any other information relating to the
programme and deemed necessary by the auditor;
A one day briefing meeting will be organized by SPMU for giving details of the
programme and the implementation arrangements. It should be attended by all the
members of the audit team.
5. Periodicity of internal audit & Audit Reports
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The internal audit shall be conducted semi-annually at the SPMU, DPMU VNRMCs
level. The Internal auditor shall be required to prepare an audit plan and audit schedule in
consultation with SPMU in advance and will commence the audit work after receipt of
confirmation from SPMU. The auditor will be required to prepare a separate audit
checklist (each for SPMU, DPMU and VNRMC) in consultation with SPMU to be used
for internal audit and reporting. The Internal auditor should maintain satisfactorily
document evidence to support evidence to support their conclusions.
The auditor will provide separate audit report each for SPMU, DPMU and VNRMC. The
comments from SPMU, DPMU and VNRMC must be incorporated in the final report, as
Management Comments. The final audit report shall include the following:
a. Executive Summary highlighting key audit observations;
b. Detailed comments and observations on the financial management records, system
and controls that were examined during the course of internal audit;
c. Compliance with the provision of legal agreements;
d. Deficiencies and areas of weakness in FM system and control environment with
recommendation for improvement;
e. A separate section on Procurement and Contract Management processes;
f. Matters that may have significant impact on the implementation of the project;
g. Compliance to the previous audit observations;
h. Any other matter that the internal auditor considers pertinent.
6. Team Composition & Qualification: The audit personnel should have familiarity with
Government accounting/ financial procedures and local language. The audit team shall also
include procurement experts in order to facilitate the procurement/contract review function. The
key personnel in the internal audit team, their qualifications are indicated below:
Description of No. of persons
Sl. Key
Services to be Experience and indicative
No Professional
provided staff weeks for
s
the assignment
1 Audit Partner Overall coordination Qualified Chartered 1 No (Minimum 2
/ (Principal) & planning, team Accountant (One) with at weeks in each
/ Team leadership, reporting least 8 years of experience FY)
Leader (CV & liaison. S/He shall as a partner with expertise
would be guide the audit team in audit planning, execution
evaluated at to ensure timely and reporting. Preference
RFP stage) completion of audit, will be given to person with
discuss audit findings knowledge and experience
with Govt officials in dealing with Govt /
and issue audit Social sector projects and
report. Donor funded schemes.
2 Audit Team Review of FM Qualified CA / Cost 4 Nos. Minimum 1
(CV of CA / records and Accountant (Two) with week in SPMU, 3
4
Cost transactions of experience in internal weeks for seven
Accountant SPMU, DPMU audit of at least 4 years DPMUs and 6
would be & VNRMC. and weeks to cover
evaluated at Semi-qualified CA/ VNRMC in each
RFP stage) Assist Cost Accountant (Two) FY
Procurement with experience in and
expert in review internal audit of at least Minimum 2 weeks
of procurement 3 years to prepare audit
aspects in reports.
VNRMC.
Prepare draft
audit report
3 Procurement Review of Graduate with at least 5 1 No (Minimum 4
Expert (CV Procurement years experience in weeks in each FY)
would be records/ Government or public
evaluated at transactions of sector procurement, well
RFP stage) SPMU and versed with CAG/ CVC
DPMU and guidelines and with World
VNRMC Bank Procurement
Regulations.
Prepare
procurement
section of audit
report
(The audit programme should be prepared in consultation with the management and the
audit team should be led by a qualified Chartered / Cost Accountant (supported by one
semi-qualified Chartered / Cost Accountant) as per the approved tour programme. The
team would prepare the audit report that will be finalized by the Principal/Audit Partner
/ Team Leader.)
7. Deliverables and Payment of Audit Fees.
Audit
Audit
report to Payment of
Coverage Audit to
be shared audit fees
Financial be
Period with
Year completed
SPMU
Audit Fees for FY2019-20 is 40% of contract value
(i) 7.5% of
contract value
on submission
April 01, 2019 of audit report
SPMU and January 31, February
2019-20 to September (ii) 7.5% of
DPMU 2019 28, 2020
30, 2019 contract value
on acceptance
of audit report
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(i) 12.5% of
contract value
on submission
of audit report
2019-20 October 01, SPMU and May 31, June 30,
(ii) 12.5% of
2019 to March DPMU and 2020 2020
contract value
31, 2020 20% of
on acceptance
VNRMC
of audit report
Audit Fees for FY2020-21 is 60% of contract value (as audit volume will increase
substantially)
(i) 12.5% of
contract value
on submission
April 01, 2020 SPMU, November December of audit report
2020-21 to September DPMU and 30, 2020 31, 2020 (ii) 12.5% of
30, 2020 20% of
VNRMC contract value
on acceptance
of audit report
(i) 15% of
contract value
on submission
October 01,
May 31, June 30, of audit report
2020-21 2020 to March SPMU,
2021 2021
31, 2021 DPMU and (ii) 20% of
20% contract value
VNRMC on acceptance
of audit report
8. Consultant's obligation: The Internal Auditor would be required to mobilize the audit teams and
pay for necessary transport and accommodation (to and fro Shillong and field visits to DPMUs
and VNRMCs) to conduct the internal audit as prescribed in the ToR. The SPMU will assist the
auditor in arranging transport and accommodation, if required by the auditor. The fees quoted for
this assignment will include all (i.e. audit consultancy, travel and accommodation).
9. Duration of the Contract for Internal audit: The Meghalaya Basin Management Agency shall
enter into contract with Service Providers for internal audit of the project implementation initially
for a period of two years to conduct internal audit for the period from April 2019 to March 2021.
The contract may be extended further subject to performance and requirement of the project.
10. Composition of Review Committee to Monitor Consultants Work: The consultant will be
reporting to the Project/Additional Project Director, however routine transactions/operations or
facilitation will be provided by Manager, Finance.
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