Objective of Independent Audit:
The objective of the independent audit of the Principal Recipient (PR) and Sub recipients (SR), (henceforth mentioned as “independent audit”) is to enable an independent auditor to express an independent opinion on the financial position of the CDC supported CMAI QMS-BB Project of the funds received and expenditures for the stated accounting period, as reported by the project financial statements. The independent audit shall also determine whether the project funds are used only for the purposes for which they are received.
Scope of Independent Audit:
A program specific audit is to be performed for the fiscal year 2016-17. The standards set forth in 45 CFR Subpart F will apply to this audit (Code of Federal Regulations). Audit will be in accordance with GAGAS.
The audit report should be as per the requirements set forth in 45 CFR Subpart F 75.515.
Project Financial Statements:
The project financial statements shall include:
Statement of financial position:
A Balance Sheet showing accumulated funds, bank balances, other assets of the project and liabilities.
Statement of Income and Expenditure:
- A summary of funds received, showing the grant received from CDC
- A summary of expenditures disaggregated under main cost categories.
Notes to the financial statements, if any
The turnover of expenditure for the period under assignment will be approximately INR 24.70 Crores (3800000 USD) for all the entities (Principal Recipient and Sub-Recipients).
Period of Independent Audit Covered Under This Assignment:
- QMS-BB is a five year and six months project. The period of independent audit shall be: 1st April 2016 to 31st March 2017 which is Year 3 (12 Months).
- The financial statements including the audit report shall be submitted to the Project Director, CMAI, not later than two months after the signing of the contract. Subsequently, the audit reports shall be forwarded to the CDC by the PR.
Independence of the Auditor:
- The independent auditor must be completely impartial and independent from all aspects of management or financial interests in the entity being audited or those of its implementing/supervising agency or directly related entities.
- The independent auditor shall not, during the period covered by the independent audit nor during the undertaking of the independent audit, be employed by, serve as director for, or have any financial or close business relationships with any senior participant in the management of the entity.
- The independent auditor shall be reminded of any existing statutory requirements relating to independence and shall disclose any relationship that might possibly impair his/her independence.
Qualifications of the Auditor:
The auditor shall be a U.S. based Certified Public Accountant firm, the foreign governments (any other country other than US) Supreme audit Institutions or equivalent, or an audit firm endorsed by the U.S. Agency for International Development’s Office of Inspector General.
The independent auditor must demonstrate appropriate professional qualifications and suitable experience in auditing the accounts of entities comparable in size and complexity to the entity being audited.
The minimum qualifications and anticipated inputs of the audit team composition shall be as under:
- The audit team shall be led by a Chartered Accountant with a minimum of 5 years’ experience in audit.
- The audit team shall include sufficient number of appropriate staff (Articles/Audit Clerks and other audit staff), commensurate with the size and scope of the assignment.
- Curriculum Vitae (CVs) shall be provided to the PR by the Principal of the selected firm, who shall be responsible for signing the audit reports, together with the CVs of managers, supervisors and key personnel proposed to be part of the audit team. CVs shall include details on audits carried out by the applicable staff, including ongoing assignments indicating capability and capacity to undertake the audit.
Selection of Auditor:
Detailed independent audit ToR shall be shared with the shortlisted audit firms and the selection of auditor shall be based on the technical and financial quote submitted by shortlisted audit firms and upon approval of the CDC.
Submission of EOI:
Please send your Expression of Interest as hardcopy to:
Ms Deepti Singh
Manager- Finance and Contracts
Christian Medical Association of India
Plot No 2, A3, Local Shopping Complex
Janakpuri, New Delhi 110 058
Tel: 011 2552 9991-2