Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
Request for Proposal (RFP) for
Selection of Chartered Accountant Firm to
Conduct Internal Audit for
Andhra Pradesh State
Skill Development Corporation (APSSDC)
Ref No: RFP/APSSDC/FIN/INT AUDIT/2019-20/0002
Issued on Date: 26/11/2019
(Techno-Commercial Bid)
#3rd floor, G&J Infra (Infosight Building), Survey No. 78/2, Near Pathuru Road
Junction, Tadepalli, Guntur District, Andhra Pradesh - 522501
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
Table of Contents
I. Inviting Proposals ......................................................................................................................................... 3
II. Background .................................................................................................................................................. 3
III. Objective & Scope of Work.......................................................................................................................... 4
A. Objectives: ................................................................................................................................................ 4
B. Scope of Internal Audit ............................................................................................................................. 4
IV. Eligibility Criteria .......................................................................................................................................... 5
V. Submission of Bids ....................................................................................................................................... 6
VI. Evaluation of the bids .................................................................................................................................. 7
A. Evaluation of Pre-Qualification cum Technical Bids ................................................................................. 7
B. Evaluation of Commercial Bids ................................................................................................................. 7
VII. General Instructions..................................................................................................................................... 8
A. RFP Document .......................................................................................................................................... 8
B. Procedure for Bid Submission................................................................................................................... 8
C. Period of Validity of Bids ........................................................................................................................... 8
D. Amendment of Bidding Documents ......................................................................................................... 8
E. Authorization to Bid .................................................................................................................................. 8
F. Timelines/Frequency of audit ................................................................................................................... 9
G. Payment Terms and Conditions .............................................................................................................. 10
Annexure-I .......................................................................................................................................................... 12
Format A: Applicant Details ............................................................................................................................ 12
Format B: Compliance of Eligibility Criteria .................................................................................................... 13
Format C: Self-declaration for not being blacklisted ...................................................................................... 15
Format D: Revenue Details ............................................................................................................................. 16
Annexure-II ......................................................................................................................................................... 17
Format E: Commercial Proposal Submission Form ......................................................................................... 17
Format F: Commercial Bid .............................................................................................................................. 18
Annexure-III: Technical Evaluation Marking Criteria ........................................................................................ 19
Annexure-IV: Detailed Scope of Internal Audit................................................................................................. 20
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
I. Inviting Proposals
Andhra Pradesh State Skill Development Corporation (APSSDC) invites proposals through this RFP
from interested and eligible chartered accountant firms to conduct internal audit for APSSDC. Key
Information is as under:
Table 1: Key Information
Item Reference
RFP Issuing Date 26/11/2019
Reference Number RFP/APSSDC/FIN/INT AUDIT/2019-20/0002
Request for Proposal (RFP) for Selection of Chartered
Title Accountant Firm to Conduct Internal Audit for Andhra
Pradesh State Skill Development Corporation (APSSDC)
Website http://www.apssdc.in
Proposal Fee Rs. 2,000/- Non-Refundable
Last date for submission of Pre-
29/11/2019 by 3 PM
Bid queries
Last date for Bid Submission 11/12/2019 by 3 PM
Bid Opening Date 11/12/2019 by 4 PM
Opening of Commercial Bids To be intimated later
P. Venkata Krishna Chaitanya
Contact Person Details Sr. Manager, Finance,
Email ID: krishnachaitanya@apssdc.in
MD & CEO,
Andhra Pradesh State Skill Development Corporation
Address for Submission of RFP (APSSDC), #3rd floor, G&J Infra (Infosight Building), Survey
No. 78/2, Near Pathuru Road Junction, Tadepalli, Guntur
District, Andhra Pradesh - 522501
II. Background
Andhra Pradesh State Skill Development Corporation (APSSDC) is a unique organization to
promote Skill Development & Entrepreneurship in the state of Andhra Pradesh. The corporation
serves as the `Executive Agency' for the newly formed `Department of Skill Development and
Training'. APSSDC will also serve the important tasks of providing high quality skilled manpower.
APSSDC is implementing number of skill development activities starting from school dropouts to
graduates and unemployed youth in the state for creation of better employment and livelihood
opportunities. APSSDC has set out on a mission to meet skilled man power demands of all Missions and
shape AP as the skilled-workforce and knowledge hub for the world.
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
APSSDC invites proposals through this RFP from Chartered Accountant Firms for appointment of
Internal Auditor for conducting Internal Audit for Andhra Pradesh State Skill Development
Corporation.
III. Objective & Scope of Work
A. Objectives:
a) The prime objective of the Internal Auditor is to examine and evaluate whether APSSDC's
framework of risk management, internal control and governance processes are adequate
and functioning properly.
b) In addition, the objectives of the Internal Auditor would include advising and
recommending the management for improvements in internal control and Internal financial
Controls on Financial Reporting.
c) Understanding and assessing the risks and evaluate the adequacies of the prevalent internal
controls.
d) Identifying areas for systems improvement and strengthening controls.
e) Ensuring optimum utilization of the resources of the entity, for example human resources,
physical resources etc.
f) Ensuring compliance with internal and external guidelines and policies of the entity as well
as the applicable statutory and regulatory requirements.
g) Reviewing and ensuring adequacy of information systems security and control.
h) Reviewing and ensuring adequacy, relevance, reliability and timeliness of management
information system.
B. Scope of Internal Audit
In order to fulfil its vision and objectives, the scope of work of Internal Audit shall include:
a) Examination and evaluation of adequacy and effectiveness of the internal control and risk
management system at various operations and activities of the APSSDC.
b) Review of the accuracy and reliability of APSSDC's accounting records and financial reports
with a view to ensure robustness of Internal Financial Controls on financial Reporting.
c) Checking both transactions and functions of specific internal control procedures at various
departments/offices.
d) Evaluation of adherence to legal and regulatory requirement covering Acts related to
Finance, Banking and Taxation laws such as GST, Income Tax Act, etc. and approved policies
and procedures.
e) Examine that resources are acquired economically, used efficiently and safeguarded
adequately.
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
f) Carrying out special assignment as directed by the management/Audit Committee.
g) Value addition; improve operational efficiency and internal control systems.
h) To ensure the compliance of company Risk Management policies by respective
projects/units/regions/Corporate Office.
i) Evaluation of Management Information System (MIS) Reports.
Please refer detailed scope of work as per Annexure-IV
IV. Eligibility Criteria
Only those Firms who fulfil all the below eligibility criteria are eligible to respond to the RFP.
Document/s in support of all eligibility criteria are required to be submitted along with the
Technical Bid. Firms meeting the below mentioned eligibility criteria will be eligible for next round
of evaluation. Bids received from the firms who do not fulfil any of the following eligibility criteria
are liable to be rejected.
Compliance
S. No. Criteria Supporting Document/s
(Yes/No)
The applicant should be a Chartered
Registration certificate
1. Accountant Firm and in existence for at
of the Firm.
least 10 years
The applicant should have audited at
least 4 Statutory/Internal Audits in
last 5 years as on 31.03.2019 and
Among 4 Statutory/Internal Audits
Client Certificate/
one audit shall be for a company with
2. Contract with client/
an operating revenue more than Rs.
Audit report
200 cr. in last 05 years as on
31.03.2019 and
at least one internal audit for similar
company/corporation like APSSDC
Audited Balance Sheets
of last three financial
The Applicant should have a minimum years duly certified by
revenue of Rs.1 crore in each financial Auditor.
3.
year during last three financial years Certificate from the
ended 31.03.2019 statutory auditor as per
the `Format D under
Annexure-I'
Applicant should have a permanent Self-declaration along
4. office in India and branch office in with relevant
Andhra Pradesh. supporting documents.
Applicant should have minimum of 10 Self-declaration along
5. professionally qualified CA/CMA as with relevant
partners/employees as on 31.03.2019 supporting documents.
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
Compliance
S. No. Criteria Supporting Document/s
(Yes/No)
The Applicant should not have been
black-listed/recommended to be black
listed by central/state
governments/PSUs or any other
A Self Certified letter
investigation firms/statutory authorities
by authorized signatory
6. in India and is in compliance of all Laws,
as per From C under
Rules, Regulations, Bye-Laws,
Annexure-I
Guidelines, and Notifications etc.
Applicant is required to submit a self-
declaration in this regard in the
technical bid.
The firm should submit Peer review
7. Peer Review Certificate
Certificate
Note: It is mandatory for the Applicants to submit all the supporting documents against eligibility
criteria mentioned above along with `Compliance of Eligibility Criteria under Annexure-I'.
V. Submission of Bids
a) Interested firms fulfilling eligibility conditions as mentioned above can submit their detailed
proposal as per annexures for appointment of internal auditor for APSSDC, to the MD & CEO,
Andhra Pradesh State Skill Development Corporation (APSSDC), #3rd floor, G&J Infra
(Infosight Building), Survey No. 78/2, Near Pathuru Road Junction, Tadepalli, Guntur District,
Andhra Pradesh - 522501 on or before last date of submission.
The Bid prepared by the firms should comprise the following components:
b) Technical Bid: A separate sealed cover comprising of prescribed `Formats under Annexures-
I with superscriptions as "Technical Bid Request for Proposal (RFP) for Selection of Chartered
Accountant Firm to Conduct Internal Audit for Andhra Pradesh State Skill Development
Corporation (APSSDC)".
c) Commercial Bid: A separate sealed cover comprising of prescribed `Formats under
Annexures-II with superscriptions as "Commercial Bid Request for Proposal (RFP) for
Selection of Chartered Accountant Firm to Conduct Internal Audit for Andhra Pradesh State
Skill Development Corporation (APSSDC)".
d) Proposal Fee: Firms are required to deposit a non-refundable processing fee of 2,000/- (Rupees Two
Thousand only) along with bid documents to APSSDC. The Processing Fee must be in the form of a
crossed demand draft Payable to `Andhra Pradesh State Skill Development Corporation' payable at
Vijayawada, drawn on any scheduled commercial bank and must accompany with Covering Letter in
cover of the Proposal Document of technical bid.
e) Firms to keep both `Technical Bid' and `Commercial Bid' in a single separate sealed cover with
superscriptions as
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
· "Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct
Internal Audit for Andhra Pradesh State Skill Development Corporation (APSSDC)"
· Ref No: RFP/APSSDC/FIN/INT AUDIT/2019-20/0002
· Confidential Please do not open
f) Any bid document not conforming to any one of the above terms will be rejected.
g) Bid currency: All bid prices shall be quoted in Indian rupees.
VI. Evaluation of the bids
A. Evaluation of Pre-Qualification cum Technical Bids
I. A Committee constituted by the APSSDC will carry out evaluation of the bids received by it
in order to determine whether they are substantially responsive to the requirements set
forth in the proposal. In order to reach such a determination, committee will examine the
information supplied by the firms, and shall evaluate the same as per the evaluation criteria
specified in this proposal.
II. The evaluation process shall involve:
· The Committee shall first evaluate the documents and information supplied by the firms
in the proposal in order to examine the compliance status declared by the firms as per
`Formats under Annexures-I.
· The Committee members will assess the documents of the firms based on required
parameters related to their capacity to deliver the services, and accordingly Technical Score
will be given to each applicant.
· The applicants who achieves cut-off technical score of 70% will be shortlisted for next round
of evaluation i.e. Commercial Bid Evaluation.
· Technical Score criteria is given at Annexure-III Technical Evaluation Marking Criteria
B. Evaluation of Commercial Bids
I. It is mandatory for the firms to submit financial bid duly filled as per formats under
Annexures-II'.
II. The commercial bids of only shortlisted firms by the committee post Technical Evaluation
round will be opened and will be evaluated as L1 (Lowest cost) method.
III. The Total Bid Price as provided in financial bid format under Annexure-II shall be used by the
Committee for the purpose of financial evaluation of bids.
IV. In case L1 backs out - L1 shall be blacklisted from participating in any future bidding of APSSDC
projects and are liable for legal action by APSSDC. In such case, APSSDC may invite next L2
firm for services as mentioned in `Scope of work' at the price quoted by L1.
V. The decision of the committee pertaining to the evaluation of proposals shall be final. No
correspondence will be entertained in this regard.
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
VI. The Committee reserves the right to reject any or all proposals on the basis of any deviations.
Selection of agency will be done solely at the discretion of the Committee/APSSDC.
VII. APSSDC reserves the right to accept or reject any proposal, and to annul the evaluation
process and reject all proposals at any time prior or post award of contract, without thereby
incurring any liability to the affected proposal or agencies or any.
VIII. When deemed necessary, during the bid evaluation process, Committee may seek any
clarifications from the agencies.
IX. Conditional Bids will be rejected.
VII. General Instructions
A. RFP Document
The applicant is requested to download the RFP document from www.apssdc.in and read all
the terms and conditions mentioned in the RFP and seek clarification if any from the RFP
Inviting Authority.
B. Procedure for Bid Submission
The Applicants shall prepare and submit their Pre-Qualification Bid, Technical bid and
Commercial bid as mentioned in `Submission of Bids' section and as per the formats prescribed
in this RFP. The Applicant should sign on all the statements, supporting documents, certificates
submitted, owning responsibility for their correctness/authenticity.
Incomplete proposals, and the proposals received after the specified time and date, and the
proposals not fulfilling the specified criteria/requirement shall not be considered.
C. Period of Validity of Bids
Bids should remain valid for the period of at least 180 days from the last date for submission of
bid prescribed by the APSSDC. A bid valid for a shorter period shall be rejected by the APSSDC
as nonresponsive. In case the last date of submission of bids is extended, the applicant shall
ensure that validity of bid is reckoned from modified date for submission. Further extension of
the validity of the bid will be decided by the APSSDC in case of need.
D. Amendment of Bidding Documents
Prior to the last date for bidsubmission, the APSSDC may, for any reason, whether at its own
initiative or in response to clarification(s) sought from the prospective firms, modify the RFP
contents/covenants by amendment. Clarification/amendment, if any, will be notified through
APSSDC's website i.e., https://www.apssdc.in. No individual communication would be made in
this respect. APSSDC shall not be responsible for any claims/issues arising out of this.
E. Authorization to Bid
The proposal/bid being submitted would be binding on the applicant. As such, it is necessary
that authorized personnel of the firm sign the bid documents. The designated personnel should
be authorized by a senior official of the organization having authority.
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
F. Timelines/Frequency of audit
a) Frequency of the internal audit shall be quarterly basis.
Commencement Report to be
Quarter Period
Date submitted
I April June July September
II July September October November
III October December January February
IV January - March May June
b) Reporting Format and calendar for submission of Internal Audit Reports
Internal Audit Reports should be prepared in the following manners, namely:
Part-I: Introduction including details of nature of work
Part-II: Executive Summary of significant observations with the following
summarized highlights:
Addresses a fundamental control weakness or significant
Critical operational issue that should be resolved by management
as a priority.
Addresses a control weakness or operational issue that
Important should be resolved by management within a reasonable
period of time.
Addresses a potential improvement opportunity in
Good Practice
operational efficiency/effectiveness.
Part-III: Persisting Irregularities and Action taken by the unit on previous Internal
Audit Report
Part-IV: Important items which, in the opinion of the Auditor, should be brought to
the notice of the Audit Committee.
Part-V: Irregularities noticed and rectified on spot and those not rectified with reasons
Part-VI: Suggestions for systems improvement.
Part-VII: Comments on the Internal control framework in APSSDC, its robustness and
weaknesses.
Part-VIII: Comments on the unusual entries/transactions, if any
o The Auditor must discuss the draft report with the unit head before drawing up the
final report and make a specific mention of this in his report.
o Documentation: The reference of documents checked must be part of the audit
report
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
o The Auditor must deliver one copy of the report to the unit head for necessary
compliance and send a copy of the full Report (in soft and hard both) to MD & CEO.
o The auditors to submit certificate duly signed jointly with unit head to the effect
that scope of audit as defined has been duly adhered to and the issues raised, or
observations made by the auditors have been discussed.
o No para of the Internal Audit Report can be taken as closed unless satisfactorily
resolved. Outstanding paras will be carried forward to the next report and need to
be properly addressed in the Internal Auditor's Report.
o Internal Auditors are encouraged to suggest solutions to rectify the errors or
deficiencies and not merely confine to making observations. Internal Auditors
should also give suggestions for system improvement and ensure compliance of
the audit observations at the Project site itself in their presence.
G. Payment Terms and Conditions
The payment will be released `Quarterly' upon submission of Invoice and Internal Audit Report.
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
Annexures
11
Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
Annexure-I
Format A: Applicant Details
Documents
S. No. Description Details
submitted (Yes/No)
1. Name of the Applicant Firm
Legal Status of the Firm
2.
(Proprietorship/ Partnership/LLP)
3. Registration Date of the Firm
4. Registration Number of the Firm
Registered/Corporate office address of
5.
the Firm
6. Branch Office Address of the Firm
7. Website of the Firm
PAN Number of Applicant (Self-
8.
attested copy of PAN to be enclosed)
GST Number of the Firm (Self-attested
9. copy of GST Registration Certificate to
be enclosed)
Telephone No. (with STD Code) of the
10.
Firm
11. Peer Review Certificate of the Firm
DD No. and Date:
12. Processing Fee details Name of the Bank: Valid
upto:
Name:
Designation:
Name & contact details of the
13. Mobile No.:
authorized signatory
Email ID:
Address:
Name:
Name & Designation of the contact Designation:
14. person to whom all references shall be Mobile No.:
made regarding this RFP Email ID:
Address:
15. Financial Details (as per Balance Sheets) (Amount in Lakhs)
FY FY 2016-17 FY 2017-18 FY 2018-19
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
Format B: Compliance of Eligibility Criteria
Compliance
S. No. Criteria Supporting Document/s
(Yes/No)
The applicant should be a Chartered
Registration certificate of the
1. Accountant Firm and in existence for
Firm.
at least 10 years
The applicant should have audited at
least 4 Statutory/Internal Audits in
last 5 years as on 31.03.2019
and
Among 4 Statutory/Internal Audits
one audit shall be for a company Client Certificate/ Contract
2.
with an operating revenue more with client/ Audit report
than Rs. 200 cr. in last 05 years as on
31.03.2019
and
at least one internal audit for similar
company/corporation like APSSDC
Audited Balance Sheets of last
The Applicant should have a minimum three financial years duly
revenue of Rs.1 crore in each financial certified by Auditor.
3.
year during last three financial years Certificate from the statutory
ended 31.03.2019 auditor as per the `Format D
under Annexure-I'
Applicant should have a permanent Self-declaration along with
4. office in India and branch office in relevant supporting
Andhra Pradesh. documents.
Applicant should have minimum of 10 Self-declaration along with
5. professionally qualified CA/CMA as relevant supporting
partners/employees as on 31.03.2019 documents.
The Applicant should not have been
black-listed/recommended to be black
listed by central/state
governments/PSUs or any other
investigation firms/statutory A Self Certified letter by
6. authorities in India and is in authorized signatory as per
compliance of all Laws, Rules, Format C under Annexure-I
Regulations, Bye-Laws, Guidelines, and
Notifications etc. Applicant is required
to submit a self-declaration in this
regard in the technical bid.
The firm should submit Peer review
7. Peer Review Certificate
Certificate
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
I. Documentary Proof Required:
· Registration Certificate
· GST Registration Certificate
· PAN Number
· Financial reports for the past three (3) consecutive FYs certified by Auditor
· Peer review certificate
II. Statement of experience and competence:
Scope of Services
Name of project Name of the Provided (a separate Value of the Brief Project
S. No. (Completed) Client document may be Project description
provided)
1.
2.
3.
4.
5.
Note: Please submit the relevant documents as proof in view of projects being highlighted in
above table and eligibility Criteria.
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
Format C: Self-declaration for not being blacklisted
(The Declaration Letter is to be submitted by Company Secretary/Authorized Representative and Signatory
on Company's Letterhead with his/her dated Sign and Seal)
To,
The MD & CEO,
Andhra Pradesh State Skill Development Corporation,
#3rd floor, G&J Infra (Infosight Building),
Survey No. 78/2, Near Pathuru Road Junction,
Tadepalli, Guntur District, Andhra Pradesh 522501.
1. In reference to the RFP Ref No: RFP/APSSDC/FIN/INT AUDIT/2019-20/0002 dated 26/11/2019 ...... as a
representative(s) of ................................. (name of the applicant's firm), I/We hereby declare that our firm
.................................................... is having unblemished past record and was not declared blacklisted or alleged
or ineligible to participate for bidding till the time of submission of response to this RFP by any State/Central
Govt. or PSU or any investigating firm/statutory authority due to unsatisfactory performance, breach of
general or specific instructions, corrupt/fraudulent or any other unethical business practices.
2. I/We hereby declare that our firm is in compliance with all Laws, Rules, Regulations, Bye-Laws, Guidelines,
Notifications etc. issued by Institute of Chartered Accountants of India (ICAI) from time to time.
3. The information submitted in our Proposal is complete, is strictly as per the requirements as stipulated in
the RFP and is correct to the best of our knowledge and understanding. We would be solely responsible for
any errors or omissions in our Proposal. We acknowledge that APSSDC will be relying on the information
provided in the Proposal and the documents accompanying such Proposal for empanelment of the applicant
for the aforesaid program, and we certify that all information provided in the application is true and correct;
nothing has been omitted which renders such information misleading; and all documents accompanying
such Proposal are true copies of their respective originals.
4. We acknowledge the right of APSSDC to reject our Proposal without assigning any reason or otherwise and
hereby waive, to the fullest extent permitted by applicable law, our right to challenge the same on any
account whatsoever.
5. We satisfy the legal requirements and meet all the eligibility criteria as laid down in the RFP.
6. This Proposal is unconditional, and we hereby undertake to abide by the terms and conditions of the RFP.
7. We have not directly or indirectly or through an agent engaged or indulged in any corrupt practice,
fraudulent practice, coercive practice, undesirable practice or restrictive practice.
For and on behalf of:
Signature:
Name:
Designation:
(Company
Seal)
(Authorized Representative and
Signatory)
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
Format D: Revenue Details
(Declaration by Chartered Accountant on Letterhead with his/her dated Sign and Seal)
To whomsoever it may concern
On the basis of audited financial statements, we hereby certify that (Name of Agency) having
registered office at (Office address) has an annual revenue of .................................... in each financial
year during last three (3) financial years (FY 2016-17, 2017-18, 2018-19). The details of annual
revenue are mentioned below:
Annual Revenue of the firm (in
S. No. Financial Year
INR)
1. 2016-2017
2. 2017-2018
3. 2018-2019
(Chartered Accountant):
Signature
Name
Registration
No Contact
No.
Seal
Date
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
Annexure-II
Format E: Commercial Proposal Submission Form
Location:
Date:
To,
The MD & CEO,
Andhra Pradesh State Skill Development
Corporation, #3rd floor, G&J Infra (Infosight Building),
Survey No. 78/2, Near Pathuru Road Junction,
Tadepalli, Guntur District, Andhra Pradesh 522501.
Dear Sir,
We, the undersigned, offer to provide the for [Insert title of Assignment] in accordance with your RFP
Ref No: RFP/APSSDC/FIN/INT AUDIT/2019-20/0002 dated 26/11/2019, and our Technical Proposal.
Our attached Financial Proposal including applicable taxes is for the sum of [Insert amount(s) in words
and figures].
We hereby confirm that the financial proposal is unconditional, and we acknowledge that any
condition attached to financial proposal shall result in reject of our financial proposal.
Our Financial Proposal shall be binding upon us subject to the modifications resulting from contract
negotiations, up to expiration of the validity period of the Proposal.
We understand you are not bound to accept any proposal you receive.
Yours sincerely,
{Signature}
{Stamp}
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
Format F: Commercial Bid
Description of Service Total Price per All applicable taxes & Total price inclusive
S. No. (As per the Scope Annum without other duties etc. on total of taxes and duties
mentioned in this RFP) taxes (in INR) price per Annum (in INR) per Annum (in INR)
A B C D E=C+D
1.
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
Annexure-III: Technical Evaluation Marking Criteria
Max.
S. No. Particulars Minimum Requirement
Marks
10 years old (cut-off Date -
1. Year of Establishment 10
31/03/2019)
Revenue from professional services
2. Rs. 1 Cr 15
for last 3 years
No. of professionally qualified
3. 10
CA/CMA as partners/employee 30
Statutory Audit/ Internal Audit -No.
of companies (with operating 04 (at least 01 should be like
4. 45
revenue more than Rs. 200 cr.) APSSDC/Govt Corporation)
audited in last 05 years
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
Annexure-IV: Detailed Scope of Internal Audit
Major areas to be covered during the course of Internal Audit: The Internal Audit shall be carried
out in accordance with the Auditing Standards and Accounting Standards prescribed by the Institute
of Chartered Accountants of India and will include such tests and controls, as the Auditor considers
necessary under the circumstances. The scope of Internal Audit encompasses the examination and
evaluation of the adequacy and effectiveness of the organization's system of internal control with
special emphasis on the following:
1. Training Income
To Review the training programs offered/conducted by the Corporation.
To examine the enrollment process at different training centers.
To verify the attendance monitoring mechanism by centre heads at respective locations.
To reconcile the fee collected at the training centres with deposits into the bank accounts.
To verify whether the Income is recorded in the books of account on a timely basis.
To review grants received in monetary and non-monetary form and verify the utilization of
such grants and to verify whether the same are recorded correctly in the books of account.
2. Government Grants Accounting & Utilization
To review the Budget Release Orders/Government Grants received.
To check the accounting of the grants released through the designated PD Account.
To review the accounting of grants and to verify whether the same is in compliance with
Accounting Standards as prescribed in the Companies Act, 2013.
To review utilization of grants based on the directions enumerated in the Government
Orders, Reconciliation of grants with actual utilization and to report on the balance of
unspent grant.
3. Establishment including contractual employments
To review the HR Policy document and offer suggestions, if any.
To review recruitment process starting from manpower budgeting to issuance of Offer Letter.
To evaluate selection process based on the HR manual of the Company.
To review the onboarding process including review of documents/certificates collected from
the selected candidate as per Company's checklist.
To check the inclusion of new joinees in payroll system as per date of joining.
To verify whether intimation to insurance company was sent for inclusion of the new joinees
in the mediclaim insurance policy.
Checking the correctness of monthly payroll including statutory deductions.
Review of separations from the Company, to verify compliance with notice period coverage
or in case of waiver of notice period to verify appropriate approvals.
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
Review of full and final settlement for employees who are leaving the service.
Review of advances to employees and recovery of the same. Reporting old advances to the
Management for necessary action.
Verification of leave balances and recovery for excess leave taken. Verification of leave
encashment based on the Company's' policies.
4. Administrative Expenses
Review of contracts and agreements with vendors and service providers and verification of
approvals of competent authority.
Review of all expenses viz., rent, professional fees, training consultants' fees for correct
accounting and payments.
Review of employee travel costs for the correctness of the same and whether they are as per
the Company's' HR policies and report on the long outstanding cases, if any.
5. Capital Assets Acquisition/disposals and recording
Verification of budgetary approvals for procurement of Fixed Assets.
Verification of procurement procedures of fixed assets from vendors.
Verification of recording of asset in the Company's' books.
Verification of classification of the asset as per Schedule II to the Companies Act, 2013 and to
verify whether correct useful life of the asset was taken for providing depreciation in the
books of account.
Verification of Fixed Assets Register.
Verification of physical verification of fixed assets undertaken by the Company at periodical
intervals.
Verification of vendor payments.
Verification adjustments of advances and recovery of penalties from vendors where
applicable
Verification whether taxes are correctly deducted from vendors payments as applicable.
6. Procurement of Goods/Services
To review the procurement Policy containing all metrics of vendor evaluation, selection and
rejection and to report deviations wherever observed in complying with the policy.
Review of budgetary approvals for major procurement of goods or services.
Review the approved vendor master list as per Procurement Manual and evaluation of
process followed for shortlisting the vendor and issuance of Purchase/Work Order.
Review the approvals for deviations in procurement from outside approved vendors.
Review of vendor accounts and identification of old pending item for unduly long period of
time.
Verification of write-off and write-backs and purchase returns.
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
Review of credit notes in vendor accounts.
Review of statutory compliances by service vendors with PF, ESI etc, to verify compliance by
the Corporation as Principal Employer under respective statutes.
7. Treasury Operations
To verify the Board Approvals to operate Bank Accounts.
Vouching of cash and bank vouchers
Scrutiny of cash and bank accounts for exceptional transactions and balances
Review of Bank Reconciliation statement, identifying stale cheques and verify the accounting
treatment.
Verify custodianship of unused cheques.
Verification of bank payments to ensure compliance with cheque authorization matrix.
Verification of all supporting documents including approvals for bank payments.
To review the confirmation of balances from banks at the end of the financial year.
Verify the process for identification of banks to make Fixed Deposits.
Physical Verification of Fixed Deposit Receipts.
Comparison of interest income with that of Form 26AS.
To check whether timely revalidation/encashment of Fixed Deposits before expiry dates.
8. Statutory Compliances
To verify whether the company is complying with all the applicable TDS provisions of IT Act,
1961.
To verify whether the company is complying with other statutes such as EPF, ESI, GST,
Profession Tax etc
Verify the submission of returns as per the timelines prescribed by various statutes under
direct and indirect taxes.
To review the compliance with the provisions of Companies Act, 2013 including compliance
with Indian Accounting Standards (IND AS) wherever applicable and guide corporation for
onward compliance.
9. Propriety Audit
To verify and review whether the activities/functions of the company are in the best interest
of the company and not prejudicial to the interest of the company/Government.
To verify and review whether the company is following the rules and regulations laid down
by the state Government/Board of Directors/Shareholders.
To verify whether the company's policies and procedures in respect of staffing,
purchase/procure, training programmes, outsourcing etc are in line with the respective rules.
To verify whether the training centres setup by the company are within the framework and
mission outlined by the Government.
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Request for Proposal (RFP) for Selection of Chartered Accountant Firm to Conduct Internal Audit for APSSDC
To verify whether the grants received from Government/others are being spent on the
purposes for which they are granted.
To verify whether the company is complying with all the applicable laws of the country and
working within the applicable regulatory framework.
Verification of the following main aspects to find out whether:
i. The funds are received from proper and authorized channels and such funds are spent for
authorized purposes.
ii. Proper recording has been done of all transactions in appropriate books of account.
iii. The assets have been put to proper use and properly safe guarded.
iv. The organization is working as per its main objects and expected lines.
Note:
o The details above are not to restrict the Scope of Internal Auditors but are only to meet with
the minimum specific requirements for the internal control of company.
o Internal Auditors will be encouraged to suggest solutions to rectify the errors or deficiencies
and not merely confine to making observations. Internal Auditors should also give suggestions
for system improvement and ensure compliance of the audit observations at the Project site
itself in their presence.
10. Knowledge resource/documents to be referred
The indicative list of the knowledge resource/documents, which are to be referred before
embarking the assignment includes:
Standards on Internal Audit issued by ICAI.
Relevant Standards issued by ICAI
Generic Guidelines on Internal Audit issued by ICAI including Guide on Risk-Based Internal
Audit, Guide to Internal Financial Controls, Enhancing Governance through Internal Audit etc.
Contract documents duly signed by APSSDC and training partners/venders.
Policies on procurement, leave & travel etc.
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