EXPRESSION OF INTEREST FOR CON-CURRENT AUDIT HIRING SERVICES OF CHARTERED ACCOUNTANT FIRM FOR CON-CURRENT AUDIT OF DISTRICT HEALTH SOCIETY Bhadrak- (FOR THE FINANCIAL YEAR 2014–15) UNDER NATIONAL HEALTH MISSION (NHM)

OFFICE OF THE CDMO & DISTRICT MISSION DIRECTOR, BHADRAK

Deptt. of Health & Fam­i­ly Wel­fare, Govt, of Odisha

O/o‑Chief Dis­trict Med­ical Offi­cer Bhadrak

Nuabazar Bhadrak

Ph.No.06784–251866 Fax.06784–251855/250605

E‑mail- Dpmu.bhadrak@gmail.com/ Financenrhmbhadrak@gmail.com/cdmobdk@rediffmail.com

Govt of India (GoI) in part­ner­ship with the States is imple­ment­ing the Nation­al Health Mis­sion (NHM) which com­pris­es of var­i­ous pro­grams, with the objec­tive of improv­ing med­ical facil­i­ties in the rur­al as well as urban areas and seeks to pro­vide acces­si­ble, afford­able and qual­i­ty health care to the pub­lic, espe­cial­ly the vul­ner­a­ble sec­tions. To facil­i­tate imple­men­ta­tion of NHM, State Health Soci­eties (SHS) and Dis­trict Health Soci­eties (DHS) have been reg­is­tered to work under the admin­is­tra­tive con­trol of the Health & Fam­i­ly Wel­fare Depart­ment of the State Government.

The DISTRICT HEALTH SOCIETY Bhadrak, invites Expres­sion of Inter­est (EoI) from firms of Char­tered Accoun­tants which meet all the con­di­tions and eli­gi­bil­i­ty cri­te­ria host­ed on the web­site www.bhadrak.nic.in, for car­ry­ing out the con-cur­rent audit of the DISTRICT HEALTH SOCIETY Bhadrak under NHM, Odisha.

The firm inter­est­ed for assign­ment of con­cur­rent audit has to apply to the Chief Dis­trict Med­ical Offi­cer Bhadrak along with the tech­ni­cal and finan­cial bids.

Impor­tant Dates:

3. Pre-bid con­fer­ence: 5th Novem­ber 2014 (03.30 pm)
4. Last date for sub­mis­sion of Pro­pos­al to SHS and DHS: 11th Novem­ber 2014 (02.00 pm)

iii. Date of open­ing of Tech­ni­cal bid: 11th Novem­ber 2014 (04.30 pm)

(In the pres­ence of rep­re­sen­ta­tive of firms)

Venue for Pre-bid Con­fer­ence: Pre-bid Con­fer­ence would be held at the Con­fer­ence Hall of Chief Dis­trict Med­ical Offi­cer Bhadrak.

Sd/-

CDMO & Dis­trict Mis­sion Director 

Bhadrak

Amend­ed Terms of Ref­er­ence (ToR) for the Char­tered Accoun­tants firms apply­ing for under­tak­ing month­ly con­cur­rent audit at Dis­trict Health Soci­eties Bhadrak for the year 2014–15.

1. Background 

The Nation­al Rur­al Health Mis­sion (NRHM) now renamed as Nation­al Health Mis­sion (NHM) of the Min­istry of Health and Fam­i­ly Wel­fare, Gov­ern­ment of India (GoI) has been under imple­men­ta­tion in the State of Odisha since April 2005 to improve health care in the State. The NHM seeks to pro­vide acces­si­ble, afford­able and qual­i­ty health care to the pop­u­la­tion espe­cial­ly to the vul­ner­a­ble sections.

As required by the GoI, Con­cur­rent audit of accounts and relat­ed records of var­i­ous pro­grammes under the Nation­al Health Mis­sion is in vogue at the lev­els of the the Dis­trict Health Soci­eties as well as the health units/facilities func­tion­ing at the Block and oth­er periph­ery lev­els for sys­tem­at­ic exam­i­na­tion of finan­cial trans­ac­tions on a reg­u­lar basis to ensure accu­ra­cy, authen­tic­i­ty, com­pli­ance with pro­ce­dures and guidelines.

1.1 The empha­sis under con­cur­rent audit is not on test check­ing of receipt and pay­ment trans­ac­tions but on hun­dred per cent check of the above trans­ac­tions as well as adher­ence to the finan­cial & pro­gramme man­age­ment process­es. It is an ongo­ing appraisal of the finan­cial health of an enti­ty, i.e. to deter­mine on month­ly basis whether the finan­cial man­age­ment arrange­ments includ­ing inter­nal con­trol mech­a­nisms are effec­tive­ly work­ing and iden­ti­fy areas of improve­ment to enhance effi­cien­cy and report the same to the stake hold­ers every month.

For this, ser­vices of Inde­pen­dent Char­tered Accoun­tant firms is solicit­ed to be appoint­ed at Dis­tricts lev­el to under­take month­ly audits and report on vital para­me­ters which would depict the true pic­ture of finan­cial and account­ing health of the pro­grammes under implementation.

1.2 The key objec­tives of the month­ly con­cur­rent Audit among oth­ers include 

• To ensure voucher/ evi­dence based pay­ments to improve transparency;
• To ensure accu­ra­cy and time­li­ness in main­te­nance of books of accounts;
• To ensure time­li­ness and accu­ra­cy of peri­od­i­cal finan­cial statements;
• To improve accu­ra­cy and time­li­ness of finan­cial report­ing espe­cial­ly at sub-dis­trict levels;
• To ensure com­pli­ance with laid down sys­tems, pro­ce­dures and policies;
• To reg­u­lar­ly track, fol­low up and set­tle advances on a pri­or­i­ty basis;
• To assess and improve over­all inter­nal con­trol systems.

2. Eli­gi­bil­i­ty criteria 

Inter­est­ed Char­tered Accoun­tant firms with the fol­low­ing pre­req­ui­sites may apply for appoint­ment of Con­cur­rent Audi­tor to take up month­ly con-cur­rent audits at the State and Dis­trict Health Soci­eties under NHM, Odisha: Sl. No.	Cri­te­ria	Sup­port­ing doc­u­ments to be furnished
1	The firm must have been empan­elled with the Insti­tute of Char­tered Accoun­tants of India (ICAI) for at least five years as on 01 Jan­u­ary 2014 and should have at least equal years of audit­ing expe­ri­ence on that date.	Con­sti­tu­tion cer­tifi­cate from ICAI as on 01.01.14.
2	The firm must have empan­elled with the office of the Comp­trol­ler and Audi­tor Gen­er­al of India as on the above date.	Required doc­u­ment from C&AG, India.
3	The firm must have under­tak­en at least 5 (five) assign­ments in social and/or health sector(s) and 9 (nine) assign­ments in cor­po­rate sec­tor dur­ing last three years (2010–11, 2011-12 & 2012–13).	Copies of appoint­ment let­ter and the finan­cial state­ments of orga­ni­za­tions audited.
4	The firm should have an aver­age turnover of Rs.10 lakh in the last 3 years i.e. 2010-11, 2011-12 and 2012–13.	Copies of Income Tax return acknowl­edge­ment, audit­ed Bal­ance sheet and P&L a/c for last 3 years to be fur­nished in sup­port of turnover.

NB: Firms which can­not fur­nish copies of the finan­cial state­ments due to some rea­son or oth­er as required under item 3 above may fur­nish self attest­ed cer­tifi­cates of com­ple­tion of assignment(s) and pro­duce the rel­e­vant finan­cial state­ments on the date and time of open­ing of tech­ni­cal bids for ver­i­fi­ca­tion by the Tech­ni­cal Eval­u­a­tion Com­mit­tee of the Health Soci­ety con­cerned in their pres­ence and take back the same.

3. Method of selec­tion of firm 

The selec­tion will be done using Qual­i­ty & Cost Based Sys­tem (QCBS) process, 70 per cent weigh­tage would be giv­en to the tech­ni­cal eval­u­a­tion and 30 per cent weigh­tage would be giv­en to finan­cial bid.

4. The firms should sub­mit their Tech­ni­cal and Finan­cial bids in sep­a­rate sealed envelopes and both the envelopes are to be packed inside one sealed enve­lope indi­cat­ing ‘Tech­ni­cal Pro­pos­al’ and ‘Finan­cial Pro­pos­al’ on top of the respec­tive envelopes. The Finan­cial Pro­pos­al is also to be marked as ‘DO NOT OPEN WITH TECHNICAL PROPOSAL’. Sim­i­lar­ly, the out­er enve­lope is to be super­script­ed with ‘Request for Pro­pos­al for Con­cur­rent Audit 2014–15 — TO BE OPENED ONLY IN THE PRESENCE OF THE AUDIT COMMITTEE’. 

 

.1 Tech­ni­cal bid 

The firm should sub­mit Tech­ni­cal bids hav­ing cri­te­ria on the fol­low­ing areas bas­ing on which eval­u­a­tion of bids will be made: Sl No.		Cri­te­ria			Max­i­mum Marks			Sup­port­ing doc­u­ments to be fur­nished in proof of claim
		No. of Pat­ners (FCA) FCA @ 2 marks			10			Cer­tifi­cate from ICAI as on 01.01.14
2		No. of Pat­ners (ACA) ACA @ 1 mark			5			Cer­tifi­cate from ICAI as on 01.01.14
3		Years of expe­ri­ence of the firm 0.5 marks per year			10			Cer­tifi­cate from ICAI as on 01.01.14
4		Aver­age years of Part­ners asso­ci­a­tion with the firm Less than one year — 0 mark one to 5 years — 2 marks 6 to 10 years — 4 marks 11 to 15 years — 6 marks 16 to 20 years — 8 marks > 20 years — 10 marks			10			Cer­tifi­cate from ICAI as on 01.01.14 and copy of Part­ner­ship Deed
5			No. of Staffs:			Cer­tifi­cate from con­cerned Insti­tute and copy of the atten­dance reg­is­ter for Jan­u­ary & Feb­ru­ary 2014. (Please assign Annex­ure num­ber to each cer­tifi­cate and the atten­dance sheet enclosed)
i			Qual­i­fied (CA / Cost Accoun­tant) -@ 2 marks per staff			10
ii			Semi Qual­i­fied (Inter CA / Cost Accoun­tant) 1 to 5 staff — 2 marks 6 to 10 staff — 4 marks > 10 staff — 5 marks			5
iii		Oth­er staff (Arti­cle staff and Audit Assis­tants) 1 to 5 staff — 1 marks 6 to 10 staff — 2 marks 11 to 15 staff — 3 marks 16 to 20 staff‑4 marks More than 20 staff‑5 marks			5			Copy of the atten­dance reg­is­ter for Jan­u­ary & Feb­ru­ary 2014. (Please assign Annex­ure num­ber to the sup­port­ing doc­u­ment enclosed)
6					Nature of Expe­ri­ence Turnover / Project Cost / Years of Expe­ri­ence & Project audited
i		NRHM Audit			15			Offer let­ter and cer­tifi­cate of com­ple­tion of assign­ment of audit of the unit(s) from the head of the organization. (Please assign Annex­ure num­ber to
each offer let­ter etc. enclosed).
ii	No. of assign­ments: Expe­ri­ence of audit in rela­tion to Social Sec­tor oth­er than NRHM in last three years  5 to 6 nos. – 3.5 mark 7 to 8 nos. — 7 mark >8 nos. — 10 mark			10			Offer let­ter and self attest­ed cer­tifi­cate of com­ple­tion of assign­ment of audit for each unit (Please assign Annex­ure num­ber to each offer let­ter etc., enclosed).
iii	Expe­ri­ence of audit in Com­mer­cial Sec­tor in last three years  9 to 10 nos. – 3.5 marks 11 to 12 nos. — 7 marks >12 nos. — 10 marks			10			Offer let­ter and self attest­ed cer­tifi­cate of com­ple­tion of assign­ment of audit for each unit (Please assign Annex­ure num­ber to each offer let­ter etc., enclosed).
7	Aver­age Turnover of the firms in last 3 years (2010–11, 2011-12 & 2012–13) > Rs.10 lakh and upto Rs.20 lakh — 2 marks > Rs 20 lakh and upto Rs.30 lakh — 4 marks > Rs.30 lakh and upto Rs.40 lakh — 6 marks > Rs.40 lakh — 10 marks			10			Attach copies of audit­ed Bal­ance Sheets and P & L Accounts of the last three years i.e 2010-11, 2011-12 and 2012–13.
Total				100

4.1.1 The firm has to fur­nish nec­es­sary doc­u­ments (self attest­ed) along with the bio-data in sup­port of the above.

4.2 Finan­cial bid 

A firm has to secure at least 60 per cent of marks out of 100 in Tech­ni­cal bid to qual­i­fy for open­ing the finan­cial bid.

4.2.1 In the case of Dis­trict Con­cur­rent Audi­tor the fees of the audi­tors is @ Rs.1500/- per month per block exclud­ing Tax (max­i­mum lim­it). Firms apply­ing for assign­ment of Dis­trict con­cur­rent audit are to sub­mit the finan­cial bid in a sep­a­rate envel­op stat­ing the cost per block per month.

4.2.1.1 The audit fees per­tain­ing to a month shall be released only after suc­cess­ful com­ple­tion of the assign­ment for that month. How­ev­er, firms belong­ing to out­side the dis­trict or the firms hav­ing office not with­in the Dis­trict Head Quar­ters shall be paid TA/DA and accom­mo­da­tion cost as per the norms of the Society.

5. Max­i­mum assign­ment dur­ing the year (2014–15)

5.1 A firm can­not be assigned audit of more than 2 (two) Health soci­eties of the State includ­ing the State Health Soci­ety. A Firm select­ed as statu­to­ry audi­tor of the State and Dis­trict Health Soci­eties of Odisha for the finan­cial year 2013–14 and accept­ed the offer shall not accept assign­ment of con­cur­rent audi­tor for the State Health Soci­ety for the finan­cial year 2014–15.

5.2 A suc­cess­ful bid­der who has been offered the assign­ment has to inti­mate the Dis­trict Health Soci­ety / State Health Soci­ety as the case may be of its accep­tance of the offer in writ­ing with­in 7 (sev­en) days of the offer let­ter. Fail­ure to accept the offer with­in the above stip­u­lat­ed days will be treat­ed as the firm has no inter­est in accept­ing the offer and the next suc­cess­ful bid­der would be offered the assign­ment. A firm has to sign the agree­ment with­in three days there­after with the con­cerned Health Soci­ety. In oth­er words, a firm has to sign the agree­ment with­in 10 days of the offer let­ter. Fail­ure to sign the agree­ment with­in the above stip­u­lat­ed peri­od would entail the firm of for­feit­ing the offer and the next suc­cess­ful bid­der would be offered the assign­ment.

5.3 A Suc­cess­ful bid­der has to fur­nish an under­tak­ing along with the accep­tance let­ter of the offer(s) stat­ing that the total num­ber of assign­ments of con­cur­rent audit for the finan­cial year 2014–15 does not exceed two health soci­eties in the State.

6. Deploy­ment of staff for audit 

The firm must pro­vide at least one inter CA/ICWA qual­i­fied per­son­nel and 2 (two) audit assis­tants every month for the said assign­ment and the month­ly audits must be super­vised by a full time part­ner of the firm.

7. Adher­ence to Time line 

7.1 The audit shall be car­ried out on month­ly basis at. The audi­tor shall start the con­cur­rent audit of the accounts and oth­er con­nect­ed records of the assigned Health Soci­ety relat­ing to a month by 8th of the fol­low­ing month and com­plete the same lat­est by 24th of that month as per the pre­scribed for­mat of GoI. On com­ple­tion of audit for a month in each unit, the audi­tors are to dis­cuss the audit find­ings with the in charge head of the audit­ed unit as well as with the CDMO con­cerned. This dis­cus­sion should pre­cede the sub­mis­sion of audit report for the month.

7.2 After com­ple­tion of audit as above, the audi­tor has to sub­mit two copies of the audit report con­tain­ing audit obser­va­tions / find­ings as per the scope of audit men­tioned below to the Chief Dis­trict Med­ical Offi­cer-cum-Dis­trict Mis­sion Direc­tor con­cerned, NHM lat­est by 30th /31st of that month or on the last work­ing day of that month. As for exam­ple, the audit of accounts and oth­er relat­ed records of the month of April should start on 8th May, com­plete the audit by 24th May and sub­mit the audit obser­va­tions along with the Audit Report lat­est by 31st May and so on. How­ev­er, the finan­cial state­ments after cer­ti­fi­ca­tion has to be sub­mit­ted quar­ter­ly lat­est by 5th August (first quar­ter), 5th Novem­ber (sec­ond quar­ter), 5th Feb­ru­ary (third quar­ter) and 5th May of the suc­ceed­ing year (fourth quar­ter) pos­i­tive­ly. The CDMO has to fur­nish a copy of the audit report of a month to the Mis­sion Direc­torate lat­est by 10th of the fol­low­ing month i.e., for April on 10th June and for the month of June on 10th August and so on.

8 Scope of audit 

The respon­si­bil­i­ties of the con­cur­rent audi­tors should include report­ing on the ade­qua­cy of inter­nal con­trols, the accu­ra­cy and pro­pri­ety of trans­ac­tions, the extent to which assets are account­ed for and safe­guard­ed, and the lev­el of com­pli­ance with finan­cial norms and pro­ce­dures of the oper­a­tional guide­lines for Finan­cial Man­age­ment issued by the Min­istry of Health and Fam­i­ly Wel­fare, Gov­ern­ment of India. The con­cur­rent audit should be car­ried out at Dis­tricts level.

8.1 The Scope of the work of “Dis­trict Con­cur­rent Audi­tor” is as follows: 

 Check and Review of the DHS Accounts includ­ing the accounts of the Rogi Kalyan Sami­tis (RKS) and periph­ery units and expen­di­ture incurred by them.

 Audit of Finan­cial State­ments of DHS quarterly.

 Cer­ti­fi­ca­tion of the State­ment of Expenditure.

 Fill­ing in the check­list provided.

 Check of the Bank Rec­on­cil­i­a­tion Statements;

 Check of the pro­cure­ment records with ref­er­ence to the instruc­tions of Gov­ern­ment of Odisha and oth­er applic­a­ble instructions.

 Check of main­te­nance of advance reg­is­ters, adjust­ment of advances time­ly. Review and analy­sis of the age-wise and par­ty-wise Advance Report.

 Main­te­nance of all accounts records, reg­is­ters and returns as pre­scribed in the Finan­cial Man­age­ment Guide­lines issued by Min­istry of Health and Fam­i­ly Wel­fare, Gov­ern­ment of India includ­ing cash and stock books, bank pass books, ledgers, jour­nal books, log books of vehi­cles and vouch­ers guard file; cheques issue reg­is­ters, sanc­tion order files/registers, Reg­is­ter of assets, reg­is­ter of stocks and store, Advance reg­is­ters, age wise analy­sis of advances, bank rec­on­cil­i­a­tion state­ments, vouch­ers, main­te­nance of vouch­er guard file, pro­cure­ment records, Quar­ter­ly Exec­u­tive Sum­ma­ry, report on month­ly vis­it to periph­ery units by Dis­trict and Block teams, fol­low-up on obser­va­tion of month­ly vis­its, fol­low-up on con­cur­rent and statu­to­ry audit obser­va­tions etc.

 Check of TDS (Income Tax and Pro­fes­sion­al Tax etc.,) and sub­mis­sion of returns in time.

 Com­par­i­son between finan­cial and phys­i­cal per­for­mance and analysis.

 Vis­its to sam­ple blocks (in a way to cov­er all the blocks in a year) and periph­ery units and sub­mit a cer­tifi­cate from the con­cerned Med­ical Offi­cer along with its report.

 Vet­ting of the dis­trict ATRs and pro­vid­ing obser­va­tions thereon.

 Any oth­er eval­u­a­tion work, as desired by the Dis­trict Audit Committee.

9. Manda­to­ry vis­it to health facil­i­ties in a month for audit of accounts and relat­ed records: 

9.1 The firms assigned with the audit of Dis­trict Health Soci­ety have to cov­er at least 1/3rd of the CHCs in the dis­trict and at least 1(one) PHC (N), 1 (one) Sub-Cen­tre and relat­ed RKS and 1(one) GKS of the CHCs vis­it­ed every month on rota­tion basis and cov­er all the Blocks in the Dis­trict at least once in the year. Such cov­er­age every month is com­pul­so­ry and any defi­cien­cy there­of would be treat­ed as breach of con­tract / agree­ment. Fail­ure to vis­it Blocks and oth­er periph­ery units as stip­u­lat­ed above by the Dis­trict Con­cur­rent Audi­tor for any two months dur­ing the finan­cial year would attract ter­mi­na­tion of assign­ment there­after and the next suc­cess­ful bid­der would be offered the assign­ment from that stage of audit. A firm whose assign­ment is ter­mi­nat­ed, its request for pro­pos­al will not be enter­tained in the next finan­cial year. Sim­i­lar­ly, fail­ure on the part of the State Con­cur­rent Audi­tor to make vis­it to the Dis­trict Health Societies(s) as indi­cat­ed under para­graph 9.2 below also attracts for­fei­ture of audit fees and action for ter­mi­na­tion of assign­ment as stat­ed above.

9.2 The firm assigned with the audit of accounts of State Health Soci­ety includes vis­its to dif­fer­ent Health Direc­torates like Direc­torate of Health Ser­vices (DHS), Direc­torate of Pub­lic Health, Direc­torate of Fam­i­ly Wel­fare (DFW), Direc­torate of State Insti­tute of Health and Fam­i­ly Wel­fare (SIH&FW) etc. and oth­er agen­cies like State Drug Man­age­ment Unit (SDMU) etc. deal­ing with NHM funds (details are dis­cussed under para­graph 13 below). Besides, the firm has to vis­it all the Dis­trict Health Soci­eties dur­ing the year cov­er­ing audit of accounts and oth­er con­nect­ed records. How­ev­er, such vis­it should cov­er at least one Dis­trict Health Soci­ety every month.

9.3 The audi­tors have to sign the atten­dance reg­is­ter at district/block lev­el with entry and exit tim­ing on all the work­ing days they have vis­it­ed. The dates of vis­it to each of the audit­ed unit need to be men­tioned in the Audit Report and copy of cer­tifi­cate from the med­ical offi­cer in charge of the Health facil­i­ty is to be append­ed to the Audit Report.

1. The audi­tor has to cer­ti­fy rec­on­cil­i­a­tion of activ­i­ty wise expen­di­ture report­ed in the FMR and finan­cial state­ments and ask for the com­pli­ance if there is any dis­crep­an­cy between two figures.
2. The audi­tor before tak­ing up audit for a par­tic­u­lar month must ensure com­pli­ance to the obser­va­tion of the pre­vi­ous month and action tak­en on them.

2. The firm inter­est­ed for the assign­ment at SHS, oth­er than its reg­u­lar audit work, has to assist the audit cell at State lev­el in scruti­ny of the reports of the dis­tricts and prepa­ra­tion of sum­ma­ry report for sub­mis­sion of the same to GoI.

3. The cov­er­age of audit and report­ing there on at both the State and Dis­tricts lev­el shall include fol­low­ing programs. 
4. NHM-RCH Flexi Pool: 

 RCH Flexi Pool

 Mis­sion Flexi Pool

 Rou­tine Immunisation

 Pulse Polio Immunisation

 Nation­al IDD Con­trol Programme

1. Nation­al Urban Health Mis­sion (NUHM)

1. Cells in Direc­torate of Health Ser­vices deal­ing with Com­mu­ni­ca­ble Dis­eases and oth­er units like: 

 Nation­al Vec­tor Borne Dis­ease Con­trol Pro­gramme (NVBDCP)

 Revised Nation­al Tuber­cu­lo­sis Con­trol Pro­gramme (RNTCP)

 Nation­al Lep­rosy Erad­i­ca­tion Pro­gramme (NLEP)

 Inte­grat­ed Dis­ease Sur­veil­lance Project (IDSP)

 Pro­cure­ment of Drugs and Equip­ment by SDMU out of NHM fund

1. Cells in the Direc­torate of Pub­lic Health deal­ing with oth­er non com­mu­ni­ca­ble dis­eases like: 

 Nation­al Pro­gramme for Con­trol of Blind­ness (NPCB)

 Non-Com­mu­ni­ca­ble Dis­ease, Injury & Trauma:

 Nation­al Men­tal Health Pro­gramme (NMHP)

 Nation­al Pro­gramme for Health Care of the Elder­ly (NPHCE)

 Nation­al Pro­gramme for Pre­ven­tion and Con­trol of Deaf­ness (NPPCD)

 Nation­al Pro­gramme for Pre­ven­tion and Con­trol of Can­cer, Dia­betes, Car­dio­vas­cu­lar Dis­eases and Stroke (NPCDCS)

 Any oth­er New Ini­tia­tive under Non-Com­mu­ni­ca­ble Dis­ease Injuries and Trauma

1. Cells in the Direc­torate of Fam­i­ly Wel­fare deal­ing with NHM like: 

 Mater­nal Health, Child Health, Fam­i­ly Plan­ning, Immu­niza­tion, PNDT etc.

1. Direc­tor of State Insti­tute of Health and Fam­i­ly Wel­fare deal­ing with NHM funds/ activ­i­ties like train­ing, IEC and BCC etc. 
2. State Drugs & Equip­ment Man­age­ment Unit deal­ing with NHM Funds; 
3. Rogi Kalyan sami­tis, Gaon Kalyan Samitis 
4. Audit and report­ing on any oth­er area as may be entrust­ed to the audi­tor by the State lev­el Stand­ing Com­mit­tee on Audit and the respec­tive Dis­trict Audit Com­mit­tees at the dis­tricts level. 
5. Report­ing requirements 

14.1 Man­age­ment let­ter: The Con­cur­rent Audi­tor is required to incor­po­rate the audit find­ings every month in a let­ter addressed to the man­age­ment which need imme­di­ate man­age­ment atten­tion to improve finan­cial man­age­ment and oth­er inter­nal con­trols such as the admin­is­tra­tive, oper­a­tional, pro­cure­ment, etc. Man­age­ment Let­ter shall cov­er fol­low­ing matters:

1. a) All defi­cien­cies observed on the main­te­nance of accounts includ­ing clas­si­fi­ca­tion of expen­di­ture, income recog­ni­tion, process com­pli­ance, doc­u­men­ta­tion, if any.
2. b) Spe­cif­ic areas of defi­cien­cy in the inter­nal con­trol sys­tem and rec­om­men­da­tions for improvement.
3. c) Any oth­er mat­ter that could have come to the atten­tion dur­ing the audit which might have sig­nif­i­cant impact on the per­for­mance of the unit audited.
4. d) Any oth­er mat­ter that the audi­tor con­sid­ers sig­nif­i­cant for the management.
5. e) Rec­om­men­da­tions and sug­ges­tions includ­ing man­age­ment compliance.

14.2 Con­tents of Audit Report: 

14.2.1 Con­cur­rent audit report of a Dis­trict Health Soci­ety should con­tain the fol­low­ing finan­cial state­ments and documents:

 Duly filled in Check­list pro­vid­ed in the guidelines;

 Finan­cial state­ments as prescribed;

 Audit­ed Tri­al Balance;

 Audit­ed Receipts and Pay­ments Account;

 Income and Expen­di­ture Account;

 Bal­ance Sheet;

 Audit­ed State­ment of Expen­di­ture (SoE);

 Bank Reconciliation;

 List of out­stand­ing advances;

 Obser­va­tions and rec­om­men­da­tions of Auditor(including obser­va­tions on blocks visited);

 Action tak­en by Dis­trict Health Soci­ety on the pre­vi­ous audit obser­va­tion along with his obser­va­tion on the same.

5. Penal­ty for delay in sub­mis­sion of Audit Reports 

The dis­trict units must fur­nish the books of accounts and rel­e­vant records and Finan­cial State­ments before the audi­tor in due time. In case of fail­ure, the Dis­trict Audi­tor must inform in writ­ing the same to the CDMO with a copy to the Mis­sion Directorate.

If for any rea­son beyond the con­trol of audi­tor, in respect of the con­duct­ing or com­ple­tion of audit gets delayed, then the firm has to com­mu­ni­cate the same to the CDMO-cum-Dis­trict Mis­sion Direc­tor con­cerned and Mis­sion Direc­tor, NHM, Odisha Bhubaneswar stat­ing the spe­cif­ic reason.

In order to ensure time­li­ness in sub­mis­sion of audit reports on the part of the audi­tor, if the Dis­trict Health Soci­ety feels that in spite of time­ly pro­vid­ing all infor­ma­tion, doc­u­ments and updat­ed books of accounts, there was delay in car­ry­ing out of month­ly audits and sub­mis­sion of Audit Report for any month relat­ing to the finan­cial year then the Dis­trict would deduct from the audit fees payable for the month at the rate of 5 (five) per cent per week of delay from the stip­u­lat­ed date of sub­mis­sion of Audit Report if the delay is attrib­ut­able to the Audi­tor. How­ev­er, sub­mis­sion of Audit Report of the month after 4 (four) weeks from the stip­u­lat­ed date of sub­mis­sion entails for­fei­ture of audit fee payable for that month and delayed sub­mis­sion of Audit Report as above for any two months relat­ing to the finan­cial year would attract action for ter­mi­na­tion of assign­ment there­after and the next suc­cess­ful bid­der would be offered assign­ment from that stage of audit. A firm whose assign­ment is ter­mi­nat­ed, its request for pro­pos­al will not be enter­tained in the next finan­cial year.