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. 1192 /P&RD/MPSTEPS/Audit 2021-22/20 Bhopal, Dated 05-03-2021
:: 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 Monthly Financial Audit, Monitoring of
Own Source Revenue of Panchayat & Handholding support for Strengthening of Financial
Management System for the year 2021-22 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 24/03/2021 on payment of Rs.
10,000/- (Rs. Ten 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 01:30 pm dated 26/03/2021 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only on the above mentioned websites and will not be published elsewhere.
The pre-bid meeting will be held on 12/03/2021 at 3.00 PM
Last date for submission of offer is 26/03/2021 up to 01.30 PM
The technical bid will be opened 27/03/2021 at 03.00 PM and
Financial bid will be opened on 09/04/2021 at 03.00 PM.
Off: O/o Development Commissioner, “B” Wing, 2nd Floor, Vindhyachal Bhawan, 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
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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,
Near E.P.F. Office, Arera Hills, Bhopal-462011.MP
e-mail ID: mpsteps@mp.gov.in
Notice inviting Online Offers for Monthly Financial Audit,
Monitoring of Own Source Revenue of Panchayat & Handholding
support for Strengthening of Financial Management System for the
year 2021-22
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
Monthly 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 2021-22 for all the Panchayat Raj Institutions in Madhya Pradesh.
The scope of audit is extendable for further 2 years. 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 24-03-
2021 on payment of Rs. 10,000/- (Rs. Ten 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. A copy of proposal submitted online should be submitted physically also at the office
of MPSTEPS, Bhopal. The physical copy should be submitted till time 01:30 PM, date
26-03-2021 it should be submitted in Two envelope :-
i. Envelope ‘A’: The proof of online payment for Cost of Tender of Rs. 10000/- for
each Cluster & EMD of Rs. 100000/- for each Cluster.
ii. Envelope ‘B’: A Complete set of Technical bid containing information/documents
as indicated in annexure-II same as submitted online and in same order too.
iii.In any case, NO Financial Bid should be submitted physically, it should be
submitted online only.
These TWO envelops "A & B" should be sealed and kept in a bigger envelope
marked as "Proposal for Monthly Financial Audit, Monitoring of own source
revenue of panchayat & Handholding support for strengthening of Financial
Management System for the year 2021-22" and addressed to CEO, MPSTEPS,
Regd. Off: O/o Director, Panchayati Raj Directorate, Near E.P.F. Office, Arera
Hills, Bhopal-462011 MP
Bid should be valid for 90 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 cluster CA
firm will also do the state level audit of all HODs and scheme /programs.
iv. Chief Executive Officer MPSTEPS 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. A proof of the same should
be submitted along with physical submission of bid. 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.
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6. Opening of Offer:
i. Envelope-A containing EMD and cost of bid document shall be opened first. If the
same are found in order.
ii. envelope-B 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.
Bid proposal Cover which comprises envelop "A" and "B" envelops should be
submitted either through Speed Post or in Person till on 26-03-2021 upto 01:30 PM
Bids send through courier will not be acceptable and no bid will be accepted after
the expiry of fixed time and date for whatsoever the reason be for delay
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.
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First Stage:
First of all, Envelope A shall be opened.
If the proof of cost of tender document Rs. 10000/- per cluster and EMD of Rs.
100000/- 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 in envelope “B” 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).
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 01.01.2021.
firm (As per certificate of should FCA) partner. (Upto 5 Marks Annexure – T1
ICAI as on 1.1.2021) 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 2016-17 2017-18, 2018- 25 lac. Annexure – T2
19)
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/ Bank Audit Audit Fee ` increase (Upto 7 Marks)
(Internal/Statutory) Excluding 50000/-)
PRI
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 01.01.2021 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 01.01.2021.
Annexure – T6
7. Firm Existence as per ICAI Min 10 year 5 Constitution Certificate of ICAI as
Record as on 01.01.2021
on 01.01.2021
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 CAG as on CAG 5 1 additional mark for every Annexure – T10
increase of partner only (Upto
2 marks) CAG Empanelment Certificate
5 Mark for CAG empanelment Annexure – T11
01.01.2021 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
monthly basis and to conduct the Monthly Financial Audit of the accounts for
the financial year 2021-22 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 monthly 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 monthly report on OSR collection made by all panchayat from
eligible activity.
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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 Monthly 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. Monthly Financial Audit of the Accounts for the year 2021-22:
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 monthly 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 Monthly 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 Monthly 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 Monthly Accounts to Zila Panchayat.
iv. To prepare and submit Comments on observation and audit opinion given
by internal auditors if any.
v. To prepare monthly 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 Monthly Accounts to State Head Quarter.
iv To prepare the monthly 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 there of.
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 six 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 Monthly 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 managment 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 Monthly 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 monthly 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 monthly 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.
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i. The discrepancies regarding accounts, procurements and bank
reconciliation should be reported.
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.
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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.
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.
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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 Monthly 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.
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
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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 monthly financial audit and monitoring of own source revenue of
panchayat himself for atleast 1 District Panchayat of the allotted clusters, Any Three
Janpad Panchayat of the allotted clusters & Atleast 200 GPs of the allotted clusters.
2. The firm will be responsible for uploading audit paras and monthly 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 2021-22 and onwards both financial and monthly 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.
5. Reporting/Deliverables:
The audit report prescribed & covering Scope of work should be submitted as
follows:-
Monthly Reports:-
i. Gram Panchayat: The Monthly 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 Monthly audit report (Scheme wise & Total) of
Janpad Panchayat in prescribed format will be submitted to Japad Panchayat office and a
copy of the same to concerning Zila Panchayat latest by the last date of next month.
iii. Zila Panchayat: The Monthly 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 Monthly 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.
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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 2021-22:
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.
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.
v. 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) Monthly 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) Halfyearly 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 31st may of next year.
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The reports should cover following: :–
The flash monthly/quarterly audit report including Receipt & Payment account, Bank
Reconciliation Statement should be supplied to the designated authority on a
monthly basis latest by the last day of the following month. 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 monthly/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 Monthly 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
i) The management letter will also be given as the auditor understands
suitable.
xi) The Monthly 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
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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
monthly/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.
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.
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(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 analyse 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 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.
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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 Developmen. 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. Software Development: if required In order to provide online accounts of the
Panchayat, the appointed agency needs to provide software (on extra payment
basis) for tracking of Panchayat accounts at all levels (Panchayat,
Block/Janpad/Zila Panchayad and State) and shall be available on online for
verification and information. The agency will also be responsible to provide
computer literacy and training enabling PRI to manage the Panchayat accounts
online.
xi. 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.
xii. The auditor shall submit necessary details as required.
xiii. 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.
xiv. 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
xv. 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 panchayats and SHG’s (Self Help Group) working for implementation of
concerning schemes, PIA, Whatershed 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. The department may take other related services as and when required with
extra fees which will be decide mutually on the basis of approve bid under this tender.
9. Penalty clause:
If the successful bidder fails to complete the work and submit required reports within
the given time frame the penalty clause will be as under:-.
1. Monthly Audit Report should be submitted on monthly basis, so the delay
of presenting the 1st Month report end of forth coming Month, penalty
will be NIL, then 2nd month report if submitted till the end of forth
coming month, then penalty will be upto 5%. If the delay continue then
the penalty will be up to 10% of concerning month fees. and the firm will
be considered as defaulter.
2. 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.
3. 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.
4. State Government 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.
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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:
[A] Payment to the firm shall be released by the MPSTEPS after due verification and
competent.
i. Payment for monthly audit (which includes OSR exercise), fees of gram
panchayat & janpad/zila panchayat to the firm shall be released by
MPSTEPS on receipt of reports/certificate duly verified by CEO District
Panchayat on quarterly basis. No piece meal payment shall be authorized.
On receipt of quarterly bill duly verified by CEO, Zila Panchayat,
MPSTEP shall release payment of bill.
ii. Payment for the monthly audit of Zila Panchayat will be released by the
MPSTEPS when consolidated report with certified consolidated accounts of
the whole districts are submitted.
iii. Payment for the audit of State Head Quarters accounts shall be released on the
basis of report by Programme Coordinator of concerning scheme. The firm will
have to audit accounts relating to all schemes and obtain a certificate to that
effect from the concerning Programme Head before submission of bill submitted
and accepted by CEO, MPSTEPS.
iv. Payment for last quarter of the year will be released only after the
submission of yearly reports.
[B] CA firm entrusted with the audit of the accounts of Bhopal 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 with
in 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 monthly.
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 assignment as per this TOR may be extended further on the basis of performance
of the firm for two year at a time and the decision of state government will be final in
this regard.
26
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 : Cluster wise Summary for EMD/Tender Document Amount
27
Annexure – I
The information regarding PRI's of whole of MP ( Name of Cluster,
District, Janpad & No. of Gram Panchayat)
S. no Division No of Zilla No of JPs No of GPs Cluster Name Cluster
1 BHOPAL 1 BHOPAL 2 187
2 BHOPAL 1 RAISEN 7 494 Bhopal 1 1
3 BHOPAL 1 SEHORE 5 497
BHOPAL 1 14 1178 Bhopal 2 2
4 BHOPAL 2 3 6 622
5 BHOPAL 2 RAJGARH 7 577 Chambal 3
BHOPAL 2 VIDISHA 13 1199
6 CHAMBAL 6 447 Gwalior 4
7 CHAMBAL 2 7 478
8 CHAMBAL BHIND 3 225 Indore 1 5
CHAMBAL MORENA 16 1150
9 GWALIOR SHEOPUR 4 334 Indore 2 6
10 GWALIOR 3 290
11 GWALIOR 3 5 425 Jabalpur 1 7
12 GWALIOR ASHOKNAGAR 4 256
13 GWALIOR 8 600 Jabalpur 2 8
GWALIOR DATIA 24 1905
14 INDORE 1 GUNA 2 167 Jabalpur 3 9
15 INDORE 1 GWALIOR 7 422
16 INDORE 1 SHIVPURI 4 312 Narmadapuram 10
17 INDORE 1 9 594
INDORE 1 5 22 1495
18 INDORE 2 BURHANPUR 6 288
19 INDORE 2 KHANDWA 7 416
20 INDORE 2 13 761
21 INDORE 2 INDORE 6 375
INDORE 2 KHARGONE 32 1840
22 JABALPUR 1 10 689
23 JABALPUR 1 4 7 364
24 JABALPUR 1 ALIRAJPUR 7 516
JABALPUR 1 BARWANI 24 1569
25 JABALPUR 2 6 407
26 JABALPUR 2 DHAR 9 486
27 JABALPUR 2 JHABUA 6 446
JABALPUR 2 21 1339
28 JABALPUR 3 4 8 645
29 JABALPUR 3 BALAGHAT 11 784
JABALPUR 3 DINDORI 19 1429
30 NARMADAPURAM JABALPUR 10 556
31 NARMADAPURAM 3 210
32 NARMADAPURAM 3 7 421
NARMADAPURAM KATNI 20 1187
MANDLA
NARSINGHPUR
3
SEONI
CHHINDWARA
2
BETUL
HARDA
HOSHANGABAD
3
28
33 REWA 1 REWA 9 827 Rewa 1 11
400
34 REWA 1 SIDHI 5 1227
692
REWA 1 2 14 316
1008
35 REWA 2 SATNA 8 395 Rewa 2 12
558
36 REWA 2 SINGRAULI 3 460
1413
REWA 2 2 11 755
459
37 SAGAR 1 PANNA 5 1214 Sagar 1 13
234
38 SAGAR 1 CHHATARPUR 8 282
391
39 SAGAR 1 DAMOH 7 907
236
SAGAR 1 3 20 227
418
40 SAGAR 2 SAGAR 11 440 Sagar 2 14
1321
41 SAGAR 2 TIKAMGARH 6 495
326
SAGAR 2 2 17 609
1430
42 SHAHDOL UMARIA 3 22811 Shahdol 15
43 SHAHDOL ANUPPUR 4
44 SHAHDOL SHAHDOL 5
SHAHDOL 3 12
45 UJJAIN 1 NEEMUCH 3 Ujjain 1 16
46 UJJAIN 1 AGAR MALWA 4
49 UJJAIN 1 RATLAM 6
48 UJJAIN 1 MANDSAUR 5
UJJAIN 1 4 18
47 UJJAIN 2 DEWAS 6 Ujjain 2 17
50 UJJAIN 2 SHAJAPUR 4
51 UJJAIN 2 UJJAIN 6
UJJAIN 2 3 16
GRAND TOTAL 51 313
29
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 01.01.2021. 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 01.01.2021.
3. The firm should be empanelled with C & AG as on 01.01.2021.
4. The firm should have constitution certificate issued by ICAI as on 01.01.2021.
5. The firm must have minimum 65 team members including partners, CAs, articles and
assistants. Partner/CA employee should visit 10% of Gram Panchayat every month
and check monthly audit work done by the auditor. An Auditor must be deployed for
a group of around 25 Gram Panchayat.
6. Out of the team two CAs must have diploma in system audit (DISA).
7. The firm should be registered with GST Authorities.
8. The firm must have PAN number.
9. The firm should have an average annual turnover of minimum of Rs.50 lakh Per
annum of last three financial years. (F.Y. 2016-17, 2017-18 & 18-19)
10. Firm must have Head Office or having Branch Office in Madhya Pradesh at
least for last 5 years will be eligible to apply.
11. The firm should not be black listed at any time.
12. The firm should not have any disciplinary action initiated by ICAI at any time.
13. The firm should not have any affiliation of any type with foreign firms.
14. The firm must have 5 government/PSU/Bank auditing experience (Experience of five
different organization).
15. The firm must provide a declaration for adherence of the minimum wages act, labour
laws, EPF and ESI rules.
16. The firm is required to fulfill the above mentioned conditions independently and not
in consortium.
Declaration
1.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.
2.It is also certified that we have never been issued notice for failure to submit deliverables and
cancellation of work order, forfeiture of any SD/EMD etc. by any government or semi-
government body and we have never been barred from appointment by any government or semi-
government body.
Date: ............................. Authorized Signature of Firm (With
Seal) Name of Signatory --------------------------
Place : ...........................
30
Annexure -III
FINANCIAL BID
1- Name of the Firm
…………………………………………………………………………...…
2- Name of the Cluster……………………………….
2- Format of Financial Bid :
Units No. Of Minimum Rate per Total Total 12 Months
Units Monthly unit (Bid
fees (Per Price) (per Monthly Bid Yearly Bid
Month) Month)
Price (in Price
(in Rupees)
Rupees) (in Rupees)
1 2 3 4 5 6
Gram Panchayat ….…… 900/-
Janpad Panchayat ….…… 3000/-
Zila Panchayat ……… 5000/-
State Head Quarter 01 50000/-
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:--------------
31
`ANNEXURE – IV
Centrally / State Sponsored Schemes:
A. Rural Development Schemes:
1. MGNREGA
2. SBA-NBA-TSC
3. RGM- WaterShed
4. NRLM-SGSY
5. IAP
6. IAY
7. CM Awaas
8. MDM
9. SHGs under NRLM/ Watershed committee / PIA (Project Implementing agency)
10. Shayama Prasad Mukherji Rurban Mission.
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
C. Social Justice Schemes:
1. Old Age Pension
2. Widow Pension
3. Handicap Pension
4. All Pensions schemes
32
Annexure-V
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:--------------
Note:-
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.
33
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