Expression of Interest (EoI) for Empanelling of Auditors / Audit Entity

for Auditing of SHGs, VPRCs, PLFs and BLFs

***
Tamil Nadu State Rural Livelihoods Mission (TNSRLM)
The Community Based Organizations (CBOs) are the bedrock entities for the successful
implementation of the any social development projects/programmes. In this connection, District
Mission Management Unit (DMMU) TNSRLM has given various funds i.e Revolving Fund (RF),
Vulnerability Fund (VRF), Community Investment Fund (CIF), Economic Assistance (EA) and
other livelihoods support funds to all the CBOs (Self Help Groups (SHGs), Village Poverty
Reduction Committees (VPRCs), Panchayat Level Federations (PLFs) and Block Level
Federations (BLFs)) based on their grading parameters and performance of the organizations.
Now, the District Mission Management Unit (DMMU) of TNCDW has proposed to conduct
auditing of all the SHGs, VPRCs, PLFs and BLFs for the financial year 2023-24 through
empanelment of Charted Accountant / CA firms.

Community Based Organizations (CBOs)

A. Self Help Group (SHG)
A minimum of 12 to 20 poor women in the age group of 18 to 60 years, who are residing in
the same geographical area is organised as a ‘Self Help Group’ (SHG).
B. Village Poverty Reduction Committee (VPRC)
VPRC is an inclusive and autonomous body of the target poor in the village who are
beneficiaries in the Mission
C. Panchayat Level Federation (PLF)
Panchayat Level Federation (PLFs) have been formed at the village Panchayat level and
all the SHGs at the village level are federated under a PLF. The PLF is a registered body under
the Tamil Nadu Societies Registration Act, 1975.
D. Block Level Federation (BLF)
Block Level Federation (BLF) have been formed at the block level and all the
representatives of the PLFs are federated under the BLF. The BLFs is a registered body under
the Tamil Nadu Societies Registration Act, 1975.

No.of SHGs /VPRCs / PLFs/ BLFs to be audited

S.N CBOs Total Numbers
1 Self Help Groups (SHGs) 7523
2 Village Poverty Reduction Committees (VRPCs) 278
3 Panchayat Level Federations (PLFs) 274
4 Block Level Federations (BLFs) 5
Scope of Audit
The Auditors / Entity shall be responsible for the following works –
 Conduct auditing of all the SHGs (as per the NRLM portal), VPRCs, PLFs and BLFs for
the financial year 2023-24.
 Scrutiny of Cash Book, Bank Pass book and Journal register, Savings, Subscription,
Loan repayment registers, Bank Reconciliation Statement (BRS), Interest on
Investments, Bank Interest, Dead Stock Register, Fixed Assets Register, Advance
register etc.,
 Verification of previous year surplus, Liquidity, Opening balance and etc
 Verification of Income from various sources like Projects / Programmes
 Independently review and appraise the systems of controls
 Ensure that assets and interests are safeguarded from fraud, deter fraudstersand
possibly identify fraud.
 Recommend improvements to internal controls of all the SHGs, VPRCs, PLFs & BLFs
 Any other relevant matter/ issues as may be specified by the institutions

Deliverables
 Examination of Books of Accounts and all the financial records such as Cash Book,
General Ledger, Payment Vouchers and etc in SHGs, VPRCs, PLFs and BLFs
 Verification of all advances (Pending and Settlement) and Bank Reconciliation
Statement (BRS)
 Ensuring that all supporting documents are present for receipt and utilization of fund
based on Programme / Project wise
 Verification of fixed assets register and procurement process
 Submission of detailed audit report to the respective Project Director, DMMU, TNSRLM
 Submission of consolidated confidential report of SHGs, VPRCs, PLFs and BLFs to the
respective District Collector

Eligibility Criteria
 Empanelled with The Institute of Chartered Accountants of India (ICAI) with possessed
registered number
 Auditors / Entity should have minimum of 5 years of experience
 No blacklisted director / partner should not be part of the firm and no adverse remarks by
any Government agency (Self Declaration should be submitted in the format enclosed)
 Annual average Turnover of the Auditors/ Entity for the last 2 years (2021-22,
2022-23)
 o In case of individual auditor, it should not be less than Rs.10 lakhs
o In case of Entity, it should not be less than Rs.25 lakhs for last two financial years
i.e. 2021-22, 2022-23 (Copy of Audit report should be enclosed).
 Having sufficient audit staff strength in the firm

Mode of Selection
The method of selection will be Least Cost Selection Process (Two Bid System).
A. Technical Proposal
The Auditors / Entity are expected to work closely with the District Mission Management
Unit (DMMU), of Tamil Nadu State Rural Livelihoods Mission (TNSRLM) for auditing of SHGs,
VPRCs, PLFs and BLFs. The Technical proposal should contain the following information
1. A brief note on background of Auditors / Entity
2. Details of partner / proprietor A firm (As on 31.03.2024)
3. Experience in conducting statutory audit of Government projects, NGOs and CBOs
4. Details on availability of professional expertise
B. Financial Proposal
No extra payment (Others than the payment as per the contract) would be made to the
Auditor / firm. The technical and financial proposals (In Separate sealed covers put in one
cover) are to remain valid 90 days and are to be sent at the above address)
C. Evaluation of Technical Proposal
The evaluation of Technical Proposal shall be done through Least Cost Method (LCM)
and carried at Two stages i.e Quality and then Cost. The minimum qualifying points are 75 for
evaluation of Technical Proposal. The Technical Proposals received will be evaluated only for
those Auditors / Entity, who have submitted the proposals completed in all the aspects and on
time
Financial Proposals of technically disqualified, those not scoring minimum of 75 marks
will be return un opened. The financial bids of these shortlisted Auditors / Entity would be
opened at presence of the committee approved by the District Collector or presence of the
District Collector
The Technical Proposals will be evaluated using the following criteria
S.N Eligibility Criteria Max Points
Experience of the Auditor / Audit firm
1.Minimum 5 – 9 years of experience: 10 Points 30
1 2. Above 10 -15 years - 5 Points additional
3. Above 16 -20 years -5 Points additional
4. Above 20 years of experience -10 Points additional
 2 Experience in Statutory audit in Govt Department / Projects in 30
the last 2 years
3 Experience in Audit assignment in Social Sector 10
4 Years of existence in the district 10

Audit firm staff strength (Minimum of 2 CA staff and 8 Audit staff 10

5 required)
1. Up to 10 staff - 5 Points
2. Above 11-15 staff -8 Points
3. Above 16 staff – 10 points
Annual Turn Over per year (Minimum requirement is Rs.25 lakhs 10
6 per annum)
1.Up to Rs.25 lakhs – 5 Points
2. Above 26-30 lakhs – 8 Points
3. Above 30 lakhs -10 Points
Grand Total 100

D. Payments:
1. Payment will be made for financial year after satisfactory completion of audit work within 15
days from the date of submission of audit reports/ required financial statements and
recommendations for improvement based on price quoted by the Auditors / Entity shall remain
unchanged during the contract period. The fees should be quoted inclusive of TA/DA,
Boarding and Lodging etc.
2. All the payments will be made after deduction of TDS as per the Income Tax Act.

E. Important Dates:
Particulars Dates
Called for Expression of Interest (EoI) or Availability of EoI 05.07.2024
Document in the official web portal
Last Date and Time for receipt of EoI in the district 12.07.2024 (5:00 PM)
Date and Time for opening of Technical Bid 15.07.2024
Date and Time for opening of Financial Bid 18.07.2024
Contact address for submission of EoI Document Project Director, DMMU
Office, Mahalir Thittam,
Old DRDA Building,
collector campus,
Kancheepuram
F. Period of Engagement
 The engagement shall be for a period of One year i.e. auditing of SHGs, VPRCs, PLFs
and BLFs for the financial year 2023-24.
 The contract may be renewed for another two years on yearly basis in the same terms
and conditions subject to satisfactory performance of the audit firm and with the mutual
consent of both the parties (Auditor / Audit firm & DMMUs of TNSRLM)
 The Auditors / Entity shall start providing services within 10 days of issue of Letter of
Award/ Intimation from the respective districts
G. Instruction to Bidders
G.1. Submission of the Proposal
 The proposal shall be submitted in a sealed envelope with clear inscription as
“PROPOSAL FOR HIRING OF AUDITORS / ENTITY FOR AUDITING of CBOs -
SHGs/VPRCs/PLFs/BLFs - on top of it before due date and time.
 The Proposal shall be in two parts i.e. Cover-A and Cover-B. “Cover-A” shall contain the
Technical Proposal and “Cover-B” shall contain the Financial Proposal.
 Technical and Financial Proposal shall be submitted separately in sealed covers with
clear inscription as “TECHNICAL PROPOSAL / FINANCIAL PROPOSAL; on top of
respective covers and both the sealed envelopes shall be sealed in a third envelop with
required inscription on it as mentioned in Clause (a) above.
 Any material omission in the proposal shall make the proposal unacceptable at the
discretion of the management and the bid will be liable to be rejected.
 The Proposal shall remain valid till 120 days of the date of submission of the proposal or
award of the assignment whichever is earlier.

G.2. Content of the Proposal

The Technical Proposal in addition to proof of eligibility shall contain:
1. All the information, documents as required in Annexure
2. The Financial Proposal shall be submitted in the format given in Annexure

G.3. Evaluation and Selection Criteria

 The proposals shall be evaluated in two stages i.e. Technical evaluation and Financial
evaluation.
 The qualifying score in Technical evaluation is 75 out of 100.
 Financial Proposals shall be opened in the presence of the Technically qualified firms’
representatives, who choose to attend in person
  Date of Opening of Financial Proposals shall be communicated to the Technically
qualified Auditor / firms.
 For Financial evaluation, Price excluding GST shall be taken into consideration.

G.4. Award of Content

 Contract shall be awarded to the Auditor / firm whose evaluated bid price will be the
lowest in financial bid.
 In case two or more technically qualified Auditors / firms, the quote / accept the same
lowest price, the Auditor / firms also be awarded the contract

H. General Terms and Conditions

1. The decision of acceptance of the quotation will lie with the competent authority of
the District Collector, who does not bind himself to accept the lowest quotation and
who reserves the right to himself to reject or partially accept any or all quotations
received, without assigning any reason.
2. Bidders are advised to satisfy themselves about the quantum of work before
submitting their Bids; no extra charges consequent on any misunderstanding or
otherwise shall be allowed.
3. At any stage during finalization of the selection process, the competent authority is
free to use any evaluation metrics/ weightage or take help of any consultant, as
required in selecting the successful agency/ agencies and we agree to abide by it.
4. Canvassing directly or indirectly in connection with the Bid is strictlyprohibited and Bids
submitted by the f irm who resort to canvassing will be summarily rejected.
5. The Auditors / Entity shall not sublet the work or part of the work.
6. Payment for the services will be made only after successful completion of audit and
submission of audit reports etc. as per agreed terms. Income Tax / GST TDS will be
deducted as per rules.
7. The contract can be terminated at any point of time if the services of the Firm are not
found satisfactory. In such an event, the work shall be done from another firm
8. All documents should be certified by the Bidder
9. One firm can submit only one bid. If a audit firm submits more than one bid, all the bids
submitted by that audit firm will be rejected.
10. Audit firm must quote the rates in figures as well as in words correctly in the Financial Bid
11. On completion of Audit, the consolidated external Audit Report is to be submitted to the
respective the Project Director, DMMUs, TNSRLM…..district
12. The Competent Authority reserves the right for any modification/cancellation of the
 advertisement, if required, without assigning any reason thereof
13. Any legal dispute arising out of this is subject to … … . . district jurisdiction only.
14. Liquidated Damages :If selected CA firm does not completed awarded work as per the
terms and conditions / time period given in EoI / work order given by the District Collector
will have right to deduct up to maximum of 10% amount from the total contract amount.
15. The proposals (both Technical and Financial) should reach this office of the undersigned
within due date and time (i.e. … . . M a y 2 0 2 4 upto 15.00 Hours) in the prescribed
format. Proposals received after due date and time shall be rejected. For any queries,
further contact The Project Director, District Mission Management Unit (DMMU), Tamil Nadu
State Rural Livelihoods Mission (TNSRLM), …..….District

H. Annexures
1. Annexure I - Model Covering letter
2. Annexure II - Format for Technical Proposal (A)
3. Annexure III - Format for Financial Proposal (B)
4. Annexure IV – Model Self- Declaration Certificate
 Annexure-I
Model Covering letter
To
The Project Director
District Mission Management Unit (DMMU)
Tamil Nadu State Rural Livelihoods Mission (TNSRLM)
………..District

Respected Sir/Madam,

Sub: Submission of proposal for undertaking Auditing of SHGs, VPRCs, PLFs and BLFs
for the financial year 2023-2024 -Reg
***

We the undersigned, offer to provide the audit services of DMMUs of

TNSRLM….. district in accordance with your Expression of Interest (EoI) dated…….. We are
hereby submitting our proposal, having details about the firm and proposed audit fees. We
hereby declare that all the information and statement made in this proposal are true and accept
that any misinterpretations contained it may lead to our disqualification.
We confirm that this proposal will remain binding upon us and may be accepted by you
at any time before the expiry date. Prices have been arrived independently without consultation,
communication, agreement or understanding (for the purpose of restricting competition) and
submission of the proposal and to bear any further pre-contract costs.

We understand that DMMUs, TNSRLM is not bound to accept the lowest or any proposal
or to give any reason for award or for the rejection of any proposal. I/ We confirm that I/ We have
authority of (Thiru/Tmt……….. Auditors / Entity to submit the proposal and to negotiate on it
behalf, if required.

Yours faithfully

Date:
 Annexure-II
Format for Technical Proposal (A)
Firms have to be
S.N Particulars Attachment
filled
Name of the CA / CA Firm
Address of the CA / CA Firm
1
Contact Phone No
E.Mail Address
Date of incorporation / establishment of CA Partnership /
2
firm Proprietorship Proof
3 Auditor registration with ICAI -UDIN Nos Yes/No Attach copy
4 Total No of Experience Yes/No If Yes, Attach Proof
Experience in auditing in Govt in the last Yes/No If Yes, Attach Proof
5
2 years (2021-22 & 2022-23)
Experience in Audit assignment in NGO Yes/No If Yes, Attach Proof
6
sector
Years of existence in the district Yes/No
7 Income Tax-PAN Number Attach PAN Copy
GST Tax Registration Number Attach Regn Copy
Annual Turn Over of CA firm in the last 2 AY-2021-22
8 years AY-2022-23 Self- Attested
Proof copy
Staff Strength (2 no of CA and 8 Audit Staff Staff profile
9 minimum required) Total No of Staff
strength
Any other details the Firm would like to Attach copy
10
furnish ( i.e Awards&Accreditations)

Place:
Date: Authorized Signatory
(Seal and Signature)
Enclosures
1. A brief note on background of Auditors / Entity
2. Details of partner / proprietor (As on 31.03.2024)
3. Experience of the Audit firm (Work Orders)
4. Staff Profile
5. Audit Report (last 2 years)
 Annexure-III
Format for Financial Proposal (B)
(To be furnished in Cover “B” on the Letter Head of the Firm)

Name and Contact Address of the Firm:

Price Details:
Rate Cost / Per
S.N Particulars Institutions
(Excluding GST )
1 Self Help Groups (SHGs) - 1 No
2 Village Poverty Reduction Committee – 1 No
3 Panchayat Level Federation (PLF) - 1 No
4 Block Level Federations (BLF) - 1 No
Note: The Audit fee should be quoted inclusive of TA/DA and other incidental expenses

Note: If there is a discrepancy between words and figures, the amount in words
shall prevail. We hereby agree with all the terms and conditions of the EoI and we
hereby undertake to abide by same.

Authorized Signatory
(Signature and seal of the authorized signatory)
Date:
Place:
 Annexure-IV
Self-Declaration Certificate
(On the Letter Head of the bidder)

In the response to the empanelment of Auditors / Entity for Auditing of

SHGs/VPRCs/PLFs/BLFs for the financial years …………., I/ we declare that presently our
Auditors / Entity …………..is having unblemished record and is not declared ineligible for
corrupt & fraudulent practices either indefinitely or for a particular period of time by any State
/ Central Government/ Autonomous Body.

If this declaration is found to be correct then without prejudice to any other action
that may be taken, my / our security may be forfeited in full and the tender if any to the extent
accepted may be cancelled

Thanking you

Authorized Signatory
(Sign and Seal of Authorized Signatory)

Date:
Place: