Empanelment of CA Firm for Internal Audit of Bihar Rural Roads Development Agency

Bihar Rural Roads Development Agency, Patna invites Eol from eligible chartered accountant firms for providing internal audit services for its I 08 Pl Us across the state as well as BRRDA HQ for the FY 2021-22 and 2022-23. The internal audit assignment of P!Us of BRRDA have been divided into 5 packages. The internal audit of BRRDA head office is included as separate package- 6.

Interested CA Firms must provide required information substantiating that they have the required qualifications, relevant experience, availability of appropriate team and financial capability to perform the services under the indicated assignment. Firms not qualifying the eligibility criteria mentioned in the Eol need not apply.

The period of this assignment is two years i.e., FY 2021-2022 and 2022-2023, which may be extended by one more year, based on the firm’s overall performance and BRRDA’s future requirement. Please note that one firm can apply in maximum of 3 packages but will be awarded one package only.

The firm shall be selected in accordance with the Least Cost Selection method set out in the World Bank’s ‘Procurement Guidelines’.

Expression of Interest

Expression of Interest [EoI] for hiring of Firms for Internal Audit of BRRDA Head Office (HO) and its 108 PIUs located in Thirty Eight Districts ofBihar for the FY’s 2021-2022 and 2022-2023.

Bihar Rural Roads Development Agency is a nodal agency of Rural Works Department (RWD), Government of Bihar (GoB) for implementation of Pradhan Mantri Gram Sadak Yojana – a centrally sponsored scheme of Government of India (Go!) to provide all weather road connectivity to all eligible habitation in rural Bihar. The RWD, GoB has also formulated many schemes for development and maintenance of rural road connectivity in Bihar, like Mukhya Mantri Gram Sampark Yojana (MMGSY – General, SC & ST), NABARD schemes, Minimum Need Programme and others.

The GoB has entered into an agreement with International Development Association (IDA- The World Bank) whereby IDA has agreed to provide financial assistance towards the cost of construction of rural roads under Mukhya Mantri Gram Samaparka Yojana for providing all weather connectivity to habitations having 250+population in IO Non !AP districts of Bihar. BRRDA intends to hire services of firms to conduct Internal Audit of all programmes implemented by the agency for the two financial years 2021-2022 and 2022-2023. The detailed Terms of Reference (ToR) for this assignment is available at “rwdbihar.gov.in”

Eligibility Criteria:

1. The applicant (firm) should be empaneled with C&AG for FY 2020-21.

2. The applicant (firm) is not debarred by any State Government, Central Government or any other Public Sector undertaking or a Corporation or any other Autonomous Organization of Central or State Government.

3. The applicant (firm and its members) are not debarred by ICAI (Institute of Chartered Accountants of India) for any professional misconduct.

4. The applicant (firm) should have:

a. At least three (3) Qualified Chartered Accountants (as fulltime partners of the firm).
b. At least four ( 4) Qualified Chartered Accountants or Cost Accountants as full-time paid staff of the firm.

5. The applicant (firm) should be in existence for more than 10 years as on the date of Expression of Interest. The firm having its Head Office or Branch Office in Bihar will be an added advantage keeping in view of present COVID situation.

Selection Criteria:

1. The applicant (firm) should have a minimum average annual turnover of Rs. 50.00 Lakhs (Rs. Fifty Lakhs) in the last three financial years (FY 2020-21, 2019-20, 2018-19) from audit fees only.

2. The firm should have completed at least three (03) assignments of internal audit of any corporation, boa society, Govt. undertaking, Govt. department such as PWD I Irrigation /RWD or any civil construction department of the Govt. in the last three(03) years that has an annual civil works expenditure of not less than Rs. 50 Crore p.a.

Scope of Internal Audit Assignment:

The firm shall be required to conduct Internal Audit in accordance with relevant national standards of internal auditing prescribed by Institute of Chartered Accountants of India (ICAI). It will include all such tests and controls that the auditor considers necessary for performance of the audit. Special attention shall be paid while conducting internal audit (refer details below):

(i) Ensure that the accounting and financial management systems remain reliable and effective in design and to assess the extent to which they are being followed;

(ii) Review the efficacy, adequacy and application of accounting, financial and operating controls and thereby ensure the accuracy of the books of accounts;

(iii) Verify that the system of internal check is effective in design and operation in order to ensure the prevention of and early detection of defalcations, frauds, misappropriations and misapplications;

(iv) Identify areas of significant inefficiencies in the existing systems and suggest necessary remedial measures;

(v) Confirm the existence of finai1cial propriety in all decision and verify compliance to government and statutory requirements.

(vi) Check that all expenditure inc1med from Programme Fund Account, Maintenance Fund Account ai1d Administrative Expenses Fund Accounts has the necessary supporting documents and have been incurred in accordance with the PMGSY, GoB Financial rules and relevant financing agreements of Donor agencies.

(vii) Confirm that Bank Authorization given to Pills for incurring expenditure under the project is used for purpose intended to. To establish this, the auditor should visit Pills and conduct such audit/tests as may be deemed appropriate and necessary for the purpose of the audit.

General

The firm will be given access to all project documents, such as financing agreements, correspondences, financial manuals, contract agreements, circulars and notices issued by GoB and BRRDA to Pills and any other information associated with the project/scheme that is deemed necessary for the purpose of this assignment. The firm should familiarize themselves with the procedures laid down in the following publications:

a. the tripartite agreement on Banking Arrangements, guidelines for banking arrangement codified in the PMGSY Programme Guidelines,

b. provisions of Financial Accounting Manual of BRRDA for Non PMGSY Schemes

c. accounting system of PMGSY codified in the PMGSY Accounts Manual Programme Fund and PMGSY Administrative Expenses Fund Accounts Manual,

d. PMGSY Supplemental Operation Manual,

e. PMGSY Online Management, Monitoring and Accounting System (OMMAS)

f. Standard Bidding Document and Contract Agreements

g. Guidelines for Internal Audit of Pradhan Mantri Gram Sadak Yojana.

h. Programme Guideline of other fund e.q. Sankalpa Document approved by the State Cabinet.

i. Financing agreement, PAD, procurement guidelines of World Bank Assisted Mukhya Mantri Gram Samparka Yojana.

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