Government of Bihar Bihar State Water and Sanitation Mission Public Health Engineering Department Visheshwaraiya Bhawan Campus, Bailey Road, Patna-15

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1 Government of Bihar Bihar State Water and Sanitation Mission Public Health Engineering Department Visheshwaraiya Bhawan Campus, Bailey Road, Patna-15 Expression of Interest (EoI) for Appointment of Charter Accountant Firm for Internal Audit Expression of Interest is invited for appointment of a Chartered Accountant Firm as the Internal Auditor in Bihar State Water and Sanitation Mission. Application Format and Term of Reference are available at Bihar State Water and Sanitation Mission website ( Qualifications and Experience: The firm must be registered with ICAI and empanelled with CAG, relevant experiences of minimum 5 years. Firm should have experiences of working with Societies/Mission/Corporation and other government institutions. The annual turnover of the firm must be average 15 lakh per annum. Firm should not be blacklisted or de-barred by any government or non-government institution. Selection Process: The appointment of the Chartered Accountant Firm will be through an open competition and the appointment will be on contractual basis for a period of 3 year, which will be renewed every year on satisfactory performance. Service Fee: To be quoted by the firm with proposal in a separate and sealed envelop. Submission of Application: Duly filled application as per the ToR and prescribed format would be submitted through Registered Post/courier at Director, PMU, Bihar State Water and Sanitation Mission, PHED, Visheshwaraiya Bhawan Campus, Patna , Bihar. The undersigned reserves all the right to reject any or all the proposals received without assigning any reason thereof. The last date of submission of EoI document in prescribed format is PM. Any further clarifications can be sought from Sri M. S. Jawaid, Director-PMU, BSWSM, PHED, Visheshwaraiya Bhawan Campus, Patna , Bihar, Phone: Chief Engineer (Urban) Public Health Engineering Department

2 Terms of Reference For Haring Chartered Accountant Firm for Bihar State Water and Sanitation Mission Introduction: Public Health Engineering Department (PHED) is the nodal department to plan, implement and maintain rural and drinking water supply and rural sanitation schemes. The department undertakes field investigation, survey, data collection, preparation, execution and maintenance of schemes through its district level team, Various GoI programmes relating to drinking water and sanitation like, Nirmal Bharat Abhiyan (NBA), National Rural Drinking Water Programme (NRDWP), etc., are being implemented by the PHED either directly or through Bihar State Water and Sanitation Mission (BSWSM). PHED is also involved in implementation of the $ 145 million SWASTH programme, funded by the Department for International Development (DFID), Government of the United Kingdom. Background: Accounting system provided financial information about an organization. It is system wherein the financial books of the organization are set up, maintained and audited. The accounting helps a person to determine the earnings/receipts and expenditures that have taken place. In addition to that, the accounting records are also proofs that such a transaction has taken place. The basic intention is to determine effective utilization of grant for purpose thereof and safeguard of assets (including unspent balance). Funds for National Rural Drinking water Programme (NRDWP) and Nirmal Bharat Abhiyan through BSWSM. At present, the accounting work of these programmes at the PHED headquarter is being carried out by general purpose clerks / cashiers. The accounting work at district offices of PHED are also carried out with inadequate staff strength. As most of the personnel involved do not have any formal education on accounting/financial management, the quality of accounts and timeliness in maintenance of accounts has suffered. The status of financial management and accounting was discussed in the meeting of the Apex Committee of Bihar State Water and Sanitation Mission held on under the chairmanship of Development Commissioner. A decision was taken in the above meeting to hire a Chartered Accountant for BSWSM. During the meeting the shortage of qualified manpower for accounting, auditing and budgeting process was clearly highlighted. Objectives of Assignment: The objective of hiring Chartered Accountant Firm is to assist the department with the transition to best practice accounting standards and meet reporting responsibilities. The responsibility of the CA will be to prepare monthly financial Statement and report thereon of BSWSM and also to fulfill the statutory compliance as per Society Registration Act, Income Tax Act etc.

3 The authorized accounts personnel of the charted accountant firm shall be provided seating arrangement in the BSWSM office at need based basis. Duties and Responsibilities of Charted Accountant Firm: The CA Firm will have following duties and responsibilities:- Ensure all finance and accounting activities are consistent with department s strategic plan. Maintenance of Books of accounts for the Mission as per Double Accounting System of accounting and ensure correctness of all entries. Assist/support the accounting staff of PHED in upkeep of department s accounts and budgeting and financial analysis process. Ensure preparing of accounting vouchers and getting the same authorized by the competent person. Maintenance of cash book, ledger, journals, etc. Bank Reconciliation and ensuring timely and accurate revenue recognition by the banks, bank charges, ensuring transmittal of DFID, NBA etc. funds. Facilitate implementation of TALLY software for accounting work. Ensure all subsidiary accounts, such as fixed assets registers, advance registers, payment registers, cheque issue register, etc., are maintained and updated on daily basis. Preparation of financial reports and MIS periodically. All matters relating to income tax deduction at source (TDS), preparation and filing of returns, etc. Attending to periodic closure work each year by reviewing advances, deposits, payables and receivables. Preparation of annual accounts, such as trial balance, Receipt and payment accounts, Income and Expenditure Accounts, Balance Sheet and other schedules at the end of financial year. Getting the annual accounts audited by chartered accountant and assisting the audit process. Coordinate and facilitate audit by AG, Bihar/statutory auditors/internal auditors. Provide necessary technical and hand holding support to the district accounts teams. Coordinate with the district accounts teams to ensure timely collection of financial data and report from districts. Monitoring the district-wise expenditure under various heads of accounts in coordination/consultation with the concerned line department. Assisting the concerned official/department in regulating budget allocation to districts. Preparing periodical analytical reports on progress of expenditure for readjustment of allocation in consultation with the concerned official/line department. Preparation of periodical progress reports on the outcome indicators. Preparation of Quarterly Interim Budget for Internal Control.

4 Reconcile the amounts released by the Treasury and expenditure reported. Any discrepancy found in the accounts will be referred to the concerned line department for corrective measures. Any other job assigned by the BSWSM. Checklist of Work done & Responsibilities of Chartered Accountant Firm Sl. No. Details 1. Finance & Accounts Periodicity Extent of Work 1.1 To check the correctness of payments released in all respects and sanctions thereto. Weekly 100% 1.2 To record all the Cash and Journal Vouchers in books of account. Weekly 100% 1.3 To record all transaction with the Banks, Bank Charge and Bank interest in books of account. Weekly 100% 1.4 To maintain general ledger pertaining to the income, expenditure and Balance Sheet items including Weekly 100% advance registers. 1.5 To maintain fixed assets registers. Weekly 100% 1.6 To prepare the Bank Reconciliation Statement of all the Bank Accounts Monthly 1.7 To prepare variance report of actual expenditure against budget provision. Monthly 100% 1.8 To comply requirement of TDS, Service Tax, Works Tax and remittance thereof to the concerned As per Law 100% authorities 1.9 To Check the receipt / release of EMD s and Security Deposits and related records Monthly 100% 1.10 Other duties and responsibilities As and when required 2. Administration 2.1 To check in all respects the quotations, tenders and their opening, listing, comparative statement, etc. and Monthly 100% issue of purchase orders, as per procedures laid down. 2.3 Physical verifications of fixed assets. Half yearly 100% 2.4 To check records of consumable materials receipt and issue thereof. Monthly 100% 2.5 To check the Annual Maintenance Contracts entered into in respect of equipment including computer hardware Monthly 100% 3. Final Accounts 3.1 To prepare final accounts and consolidation thereof. Yearly 100% 3.2 To assist in the discussions with the Statutory Auditors and finalization of Audit Reports. Yearly 100% 3.3 To assist in the reply if any raised as required by Govt. auditors. Yearly 100%

5 3.4 Auditing of projects cell files & Accounts Quarterly 100% 4. Other Services 4.1 Updates / Changes in Statutory Laws From time to time 4.2 Income Tax Return of Bihar State Water and Yearly Sanitation Mission & their Assessment (As and when required) 4.3 Filling of Quarterly e-tds Return (salary & other than salary) Quarterly 4.4 Advisory role in tax related matter As and when required 4.5 Physical Presence of Senior Partner At the time of approval of Final Accounts Reporting Requirement: The Chartered Account Firm will work in close association with the account wing of the BSWSM and will report to the Chairman, Executive Committee, BSWSM or authorized official by him. The firm will nominate a skilled person for the assigned work of BSWSM. Submission of monthly Financial Report CA Firm will submit 5 copies of monthly financial report to the undersigned along with all the financial statements with detail schedules, Variance report of expenditure with budget, reconciliation statement of Branch account with Head Office and all Bank accounts with their due signature. Regulation of Audit fees The payment of Audit Fees as fixed will be made only after completion of Audit Work and issue of Audit Report. Completion of Audit will be inclusive of conduct of audit, submission and discussion of report with the BSWSM. The BSWSM will not pay any advance to the selected audit firm under any circumstances. Bill for Audit Fees will be submitted to the BSWSM along with a certificate indicating that audit has been conducted as per guidelines framed and the work has been completed as per the agreed terms and conditions. Qualifications and Experience: The CA firm must be registered with ICAI and empanelled with CAG (relevant certificate should be produced) The CA Firm should have relevant experiences of minimum 5 years as the internal auditor (relevant certificate should be produced). Firm should have experiences of working with State government supported Societies/Mission/Corporation and other government institutions (relevant certificate should be produced).

6 The annual turnover of the firm must be average 15 lakh per annum in last three financial years (relevant certificate should be produced). Firm should not be blacklisted or de-barred by any government or non-government institution (self declaration should be attached). Selection Process: The appointment of the Chartered Accountant will be through an open competition and the appointment will be on contractual basis for a period of 3 year, which will be renewed every year on satisfactory performance.

7 Expression of Interest for Appointment of Chartered Accountant Firms for Internal Audit of Accounts of Bihar State Water and Sanitation Mission (BSWSM) Status of Firm Partnership Sole Proprietorship Other Statutory Bodies (a) Name of the firm / organization (in Capital letters): (b) Address of the Head Office : Telephone no.: address: (c) PAN of the firm / organization (d) TAN of the firm / organization (if any) ICAI Registration No. Region Name Region Code No. (a) Date of constitution of the firm / organization: (b) Date since when the firms has a full time FCA Empanelment No. at CAG Office: Year: Full-Time Partners of the firm as on (Please fill up Annex A-1) Sl. No Years of continuous association in the firm / organization Number of FCA (a) Less than one year (b) 1 year or more but less than 5 years (c) 5 years or more but less than 10 years (d) 10 years or more but less than 15 years (e) 15 years or more Number of ACA Numbers of Part Time Partners / others if any, as on (Please fill up Annex A-2) Number of full Time Chartered Accountant Employees... as on (Please fill up Annex A-3) Number of audit staff employed full-time with the firm (a) Articles / Audit Clerks... (b) Other Audit Staff (With knowledge of bookkeeping, accountancy and auditing)... (c) Other Professional Staff (Please specify)... (Please fill up Annex A 4) Fees earned by the firm for last 3 years in respect of: Societies / Mission / Corporation autonomous / Co-operative body Private sector

8 (i) Statutory / Branch Audit / Audit Review (ii) Internal / Concurrent Audit Total of (i) and (ii) above : : : the firm / organisation is engaged in any internal / concurrent audit or any other services of any Govt. Companies / Corporations etc. Yes / No If yes, details of experiences in Annex-D & work in hand in Annex C may be given. there are any court / arbitration / any other legal case against the firm / organisation (If yes, give a brief note of the case indicating its present status) Yes / No

9 SECTION B Undertaking I / we the sole proprietor / partners of M/S... Chartered Accountants do hereby jointly and severely verify and declare i. That the particulars given are complete and correct and that any of the statements made or the information so furnished in the application form is later found not correct or false or there has been suppression of material information, the firm / organisation would not only stand disqualified from allotment but would be liable for disciplinary action under the Chartered Accountants act 1949 and the regulations framed there under; ii. iii. iv. That the firm / organisation, proprietor or partners has not been debarred or cautioned by ICAI during the last three years. (if debarred, give details); That individually we are not engaged in practice otherwise or in any other activity which would be deemed to be in practice u/s 2(2) of the Chartered Accountants Act 1949; That the constitution of the firm / organisation as on 1st January of 2011 shown in the expression of interest is same as that in the constitution certificate issued by the ICAI Sl No. Name of the Partner / Sole Proprietor / Others Membership registration no. PAN Dates of payment of the fees for membership / for issue of certificate of practice Signature of partner/ sole proprietor/ Other (Signature of sole proprietor / partner with Seal of the Firm / Organisation) Place:.. Date:. Enclosures:... Pages... For Office use only... firm / Organisation has done (a) Statutory / Branch Audit: Yes / No (b) Internal / Concurrent Audit. Yes / No Checked by Verified by Date updated by

10 (Annex A-1) 1. Firm s / Organisation s Name... Sl No Name of the Partner / Sole Proprietor / Other Membership No Details of Full Time Partners / Others of the firm FCA/ ACA Date of Joining the Firm (full time)/ Organisa tion Date of becoming FCA Station & Region where residing at present acknowle dgement of latest Income Tax return attached Yes/No has ISA (Information systems Audit /CISA or any other equivalent qualification specify the qualification) (if yes please attach a copy of the certificate) Name of the Partners / Others Membership No Details of Part time Partners of the Firm / Organisation FCA/ ACA Date of becoming FCA Date of Joining Partnership/ Organisation No of other firm in which he is partner practicing in his own name (Annex A-2) employed elsewhere (Yes/No) has ISA (Information systems Audit/CISA or any other equivalent qualification, specify the qualification) (if yes please attach a copy of the certificate) Details of Full Time Chartered Accountant Employees (Annex A-3) Sl No Name Membership No. FCA /ACA Date of joining the firm / Organisation as full time employee has ISA (Information systems Audit /CISA or any other equivalent qualification, specify the qualification) (if yes please attach a copy of the certificate) Signature of the Employee

11 (Annex C) Details of Internal Audit work / any other accounting of Public Sector undertaking in hand with the firm Sl Year for which Name of the PSU / Unit Nature of Assignment No. Appointed Name of the area / sector Name of the company / body audited (a) Co-operative Society/PSU/ autonomous body (b) Companies in private sector (c) Banks (d) Social Sector Programmes / Projects (e) Externally aided social sector projects (f) Education Projects / Programmes Details of experiences Years of audit Fees charged for each of the assignments in each year Nature of Audit assignment viz. Statutory audit / or Branch audit Nature of special assignment Name of the full time partner who supervised the audit or signed the financial statements and who is still working in the firm lekpkj i=kas esaizdkf kr fnukad : Hindustan Patna TOI Patna