STATE PROJECT IMPLEMENTATION UNIT NATIONAL CYCLONE RISK MITIGATION PROJECT PHASE – II

WEST BENGAL DEPARTMENT OF DISASTER MANAGEMENT & CIVIL DEFENCE, GOVERNMENT OF WEST BENGAL

TRAN BHAWAN, 5TH FLOOR, 87 A, S. N. BANERJEE ROAD, KOLKATA – 700 014

PHONE NO.: 033-22640275: email: sencrmp2@gmail.com REQUEST FOR EXPRESSIONS OF INTEREST

(CONSULTING SERVICES – FIRMS SELECTION)

NO: 62/NCRMP-II/2020-21 Date: 17.08.2020 [INDIA] [NATIONAL CYCLONE RISK MITIGATION PROJECT PHASE – II] PROJECT ID: P144726 Assignment Title: INTERNAL AUDIT FOR NATIONAL CYCLONE RISK MITIGATION PROJECT PHASE – II

Reference No.: IN-DMD (WB)-184363-QCBS

The Government of India has received financing from the World Bank toward the cost of the NATIONAL CYCLONE RISK MITIGATION PROJECT PHASE – II, and intends to apply part of the proceeds for consulting services under Component D of the project. The consulting services (“the Services”) include INTERNAL AUDIT FOR NATIONAL CYCLONE RISK MITIGATION PROJECT PHASE – II till the completion of the Project to assist the State Project Implementation Unit (SPIU) by conducting an assessment of the adequacy of the Project Management, Financial Management, Procurement and Process Review including internal controls thereof. The Internal auditor shall conduct internal and concurrent audit of the financial transactions of the authority and submit periodic reports. The internal auditor shall provide the PIU with timely information and recommendations on the audited aspects of the project to enable the PIU to take corrective measures, wherever necessary. The Project Manager, State Project Management Unit, National Cyclone Risk Mitigation Project Phase – II (NCRMP – II), Department of Disaster Management& Civil Defence, Government of West Bengal now invites eligible consulting firms(“Consultants”) to indicate their interest in providing the Services. Interested Consultant should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. Expressions of interest (EOI) must include: 1. Introductory letter on letter head (with complete contact details – name of contact person, mailing address, telephone, fax, email etc. ) explaining how the firm is best to deliver the task 2. Organization profile 3. Number of States in the country in which the Firm has branches/offices, giving full address of the branches/offices. 4. Number of qualified staff i.e. staff with their qualifications. 5. Details of Internal Audit assignments undertaken during the last 5 years. 6. Details of relevant Audit assignments undertaken for Public Sector / Government organizations. 7. Details of experience in conducting audit of External funded projects e.g. World Bank, ADB etc. 8. Short note on the similar projects implemented by the firm pertaining to the shortlisting criteria along with the contact details of past clients; 9. The EOI should contain sufficient supporting document to substantiate the claim of the Consultant towards their qualification as per the shortlisting criteria. The draft Terms of Reference will be available on the website http://wbdmd.gov.in The attention of interested Consultants is drawn to paragraph 1.9 of the World Bank’s Guidelines: Selection and Employment of Consultants [under IBRD Loans and IDA Credits & Grants] by World Bank Borrowers January 2011 (“Consultant Guidelines”), setting forth the World Bank’s policy on conflict of interest. Consultants may associate with other firms in the form of a joint venture or a sub consultancy to enhance their qualifications. Consultant will be selected in accordance with the QCBS method set out in the World Bank’s Guidelines. Further information can be obtained at the address below during office hour’s 1000 hrs to 1730 hrs Expressions of interest must be submitted online in eProcurement portal of Government of West Bengal www.wbtenders.gov.in by 25-09-2020 within 1730 hrs. .

Project Manager State Project Implementation Unit, NCRMP - II

Department of Disaster Management Government of West Bengal

Tran Bhavan, 5th Floor, 87 A, S. N. Banerjee Road Kolkata – 700 014, West Bengal, India

Phone No.: +91 33-22640275 Email: sencrmp2@gmail.com

Contact Person: Sri Sanjeev Barua. Mobile No. - 8013162355.

Terms of Reference Terms of Reference for Internal Auditor

National Cyclone Risk Mitigation Project-Phase-II

1. Project Background

The Government of India has initiated a number of initiatives to reconcile the aims of protection of life and livelihood of coastal communities; conservation of ecological resources in the coastal and marine areas; and, promotion of economic activities that have necessarily to be located in the coastal regions. As one of the different initiatives, the Government of India along with the respective State Governments is implementing a World Bank financed project called the “National Cyclone Risk Mitigation Project” (NCRMP-II). The Project has specific objectives to support the long-term vision of the Government by (a) building national capacity for implementation of National Cyclone Risk Mitigation Project approach in the country, and (b) piloting the approach in the states of Gujarat, Orissa and West Bengal. The National Component of the Project focuses on expanding the institutional capacity and knowledge base needed for National Cyclone Risk Mitigation Project. The State Components include capacity building at the state level, preparation of National Cyclone Risk Mitigation Project plans, and a range of complementary local pilot investments.

The coastal districts of West Bengal are vulnerable to severe cyclonic storms. South 24 Parganas, North 24 Parganas and Purba Medinipur experience frequent tropical cyclones, having disastrous consequences on the lives of human beings as well as animal population of the region. It must be mentioned here that the vulnerability due to cyclones cannot be determined solely by its frequency of occurrence, the vulnerability depends on associated storm surge, coastal inundation or flooding and socio economy of the affected region.

The Sundarban Delta Complex which has geo-genetic link to the tectonic Bengal Basin known for its startling coastal landforms that include back dunal mudflats, back swamps, salt marshes and tidal creeks enshrouded with mangrove vegetation, low gradient supratidal and intertidal shores with mud bank, swales and berms, rivulets, tidal flats etc. However despite the mind boggling floral and faunal diversity Sundarban is very much vulnerable to natural hazards e.g. storm surge, flood, tidal wave, cyclone etc. Sundarban is still recuperating from the brunt of Cyclone Aila that devastated thousands of hectares of once fertile agricultural land adjoining the mangrove forests into a wasteland. The aftermath of these kinds of cyclones and storm surges is on the livelihood of the people at large as due to the ingress of saline sea water into the lush green fertile fields used for paddy cultivation.

The NCRM Project-II understands that fructification of the project can be done only when the people living on the vulnerable coastal zones can be safeguarded to a certain extent from the natural calamities like flood, cyclone, hail storm, thunder squall and sometimes even to tsunamis that occurred due to geo-morphological, climatic and seismic conditions.

After the enactment of Disaster Management Act, 2005, there has been a major shift in the disaster management strategy of this State Government from a relief centric response to a composite approach based on preparedness, prevention & mitigation.

Department of Disaster Management, Government of West Bengal (DoDM) has been entrusted with the construction, operation and maintenance of the proposed 150 nos. Multi-Purpose Cyclone Shelters (MPCS) in the three coastal districts viz. North 24 Parganas (45 nos.), South 24 Parganas (75 nos.) and Purba Medinipur (30 nos.) and Underground cabling of 70 KM HT & 445 KM LT & Others Electrical Network at Digha –Sankarpur area in the district of Purba Medinipur , West Bengal and establishment of Early warning dissemination system in the coastal line of West Bengal which will be operated centrally from the state disaster management center as envisaged in the NCRM Project-II. The estimated cost of the project is around 705.4 crores. Department of Disaster Management has been assigned this project component because it plays a pioneering role in establishing necessary systems, structures, programs, resources, capabilities for reducing disaster risks in the State in order to save human lives and property, avoid disruption of economic activity and damage to environment and also to ensure the continuity and sustainability of development.

The construction of MPCS will not only pave the way for increase the communities resilience during calamity, but also opening avenue for social coordination and enhanced the capacity to shoulder responsibility by operating the shelters in a gainful pro-social way.

The MPCS has a multi–pronged approach in catering to the needs especially of the disadvantaged sections of the

populace through a string of activities such as:-

Minimization of loss of lives, property and livestock by providing it shelters during cyclone calamity

MPCSs will act nodal points for receipt and dissemination of cyclone warnings

MPCSs will provide the warehousing facilities of essential stocks/ items for post disaster usage

The nodal points for carrying out post disaster response and relief activities will be from MPCSs

MPCSs will also provide temporary protection from the heavy downpour during the monsoon and also from

the scorching heat during the summer to the shelter less people.

Basic health services like immunization programs can be administered through these MPCSs

MPCSs will act as models for safe construction in vulnerable seismic zones.

2. Project Components

Based on the above objectives, the Project has been divided into four components, namely: Component A – Early Warning Dissemination Systems(EWDS)

Component B – Cyclone Risk Mitigation Infrastructure

Component C - Technical assistance for Multi Hazard Risk Management.

Component D –Project Management and Implementation Support.

2.1 Project Implementation Arrangements A State Project Implementation Unit (SPIU) in the State of West Bengal has been set up. The

Principal Secretary, Department of Disaster Management, Government of West Bengal heads the SPIU as Project Director. The SPIU is responsible for coordinating and monitoring the implementation of the Project by the Public Works Department, Government of West Bengal and WBSEDCL. A separate technical wing is opened in the SPIU, Disaster Management Department itself headed by a Chief Engineer, PWD who shall be responsible to ensure timely completion of the works (Construction of MPCS) at desired quality levels. CMD, WBSEDCL shall be responsible to ensure timely completion of the works (Underground Cabling) at desired quality levels.

3. Objective of the Internal Audit

The objective of the internal audit is to determine whether the Project management arrangements including procurement, financial management, and physical progress monitoring and internal control mechanisms are working effectively. The auditor shall also identify areas for improvement and enhancing efficiency.

The objective of the current internal audit is to seek a professional opinion on the adequacy of internal control framework and adherence to the internal control procedures provide in the various guidelines, manuals etc., identifying areas for improvement and critical weakness, if any and that that funds received and expenditure incurred for the accounting period are in accordance with the laid down financial regulations, procurement procedures and other orders issued from time to time and that proper accounts are maintained at all levels.

This should include aspects such as adequacy and effectiveness of accounting, financial, procurement related and other operational controls, and any needs for revision; level of compliance with established policies, plans and procedures; reliability of accounting systems, data and financial reports; methods of remedying weak controls or creating them where there are none; verification of assets and liabilities; and integrity, controls, security and effectiveness of the operation of the computerized system.

The internal auditor shall provide the SPIU with timely information and recommendations on the financial management, project management and physical progress aspects of the Project to enable the management to take corrective measures, wherever necessary.

4. Scope of Audit Services

The audit shall be conducted in accordance with the Audit & Assurances Standards issued by ICAI and shall assess the internal controls, accounting principles used. It shall examine all the evidences supporting the amounts and disclosures in the financial statements. The specific areas shall include but not limited to the following:

i) The internal audit activities should include payment audit as well as

independent appraisals of the financial, operational and control activities of the programme.

ii) Funds have been used in accordance with the condition of the relevant financial norms and financial regulations with due attention to economy and efficiency, and only for the purpose for which the financing was provided.

iii) There is a proper financial and administrative delegation and expenditures incurred/ advances provided are properly authorized as per financial and administrative delegation approved by the executive committee. Comment on the adequacy of the delegation.

iv) Whether there is adequate segregation of duties and controls. v) Generally accepted accounting principles as followed by all entities that

are authorized to incur expenditure under the NCRMP-II. vi) Goods, works and services financed have been procured in accordance

with the applicable Bank guideline. The procurement checklist attached to the TOR will need to be completed for the contracts verified in the audit.

vii) Adequate and proper supporting documents, namely, purchase orders, tender documents, invoices, vouchers, receipts, pay bills, TA bills etc. are maintained and linked to the transactions.

viii) Whether clear linkages exist between the books of accounts and reports presented to the SPIU by the peripheral units.

ix) Expenditure incurred under NCRMP-II is in accordance with the financial norms prescribed in the NCRMP-II framework or any other clarifications issued from time to time.

x) Expenditure is incurred with reference to the budget allocation approved by the State Government. In case the budget allocation is exceeded proper re-appropriation duly approved by the competent authority has been obtained.

The audit will be carried out in accordance with applicable professional standards & will include

such tests & controls, as auditors consider necessary under the circumstances. In conducting the audit special attention should be paid to the following:

Internal Auditing to be performed for the expenditures incurred from NCRMP –II fund for every six

months of a year i.e. for the period of accounts from April to September and October to March in any Financial Year. Here in this case the scope of work starts from April 2019 and will end on October 2021.

A. Procurement

Whether goods, works and services are being procured following the procurement procedures defined for the Project (Applicable Bank procurement Guidelines))

Whether goods, works and services are being procured in accordance with the procurement plan approved by World Bank and sanctioned budgets.

Whether time schedule for procurement of goods, works and services is in line with the Project Procurement Plan.

Have the required procurement processes and procedures duly followed as per the applicable Bank guideline. Whether Standard documents have been used consistently for all procurement activity and whether contracts

are being carried out as per the contractual provisions. Whether appropriate staff is available with the required capacity Whether there are any procurement complaints or any contracts that have gone into arbitration. Is there delay in completion of contracts?

B. Financial Management

Whether books of accounts are being maintained in the manner and formats defined by the Financial Management Manual of the Project

Whether the financial transactions are being accurately and completely recorded

Whether utilization certificates and IUFRs submitted are prepared in time and reflect the correct status of

utilization of funds as recorded in the books of accounts of the Project

Whether the fund management is being done in compliance with Financial management guidelines of the Project

Whether funds have been used with due regard to economy, efficiency and for the purposes they were

provided.

Whether release of money is adequately supported.

Special emphasis may be laid on items like :

◦ Timely and accurate preparation of Bank Reconciliation Statements

◦ Maintenance of separate accounts for NCRMP-II

◦ Timely and accurate preparation of financial reporting statements

◦ Surplus funds lying unutilized for long

◦ Financial records and registers being maintained

◦ Disbursement of funds to the third parties

Understand the process of tagging and maintenance of assets acquired under the Project.

The auditors will perform physical verification of assets constructed/ acquired under the project. On an average a sample size of at least 20% or as considered necessary should be covered.

Whether capacities for financial management as indicated in the operations manual have been created

C. Others

Whether appropriate internal controls as specified by the Financial Management Manual, Operations Manual, Procurement Manual and other relevant notifications, if any, are operating satisfactorily. The auditor should suggest methods for improving weak controls or creating them where need be.

Verifying compliance with recommendations of the earlier audit reports and commenting thereon. Deviations (if any) from Project guidelines have been reported to the PMU in time and requisite approvals

obtained. Internal Auditor should audit compliance of observation of Audit Report by the Principal Accountant General

(G&SS), West Bengal. Financial manual of NCRMP-II governs the expenditure of SPIU, which may be followed during internal

audit. Audit to be performed in the following offices Physically in the following offices tabulated below:-

Sl. No.

Organization Designation Address

1 Department of Disaster Management &

Civil Defence Principal Secretary & Project

Director Nabanna, Howrah

2 SPIU, NCRMP-II, DoDM & CD, Govt.

of West Bengal Project Manager & Superintending

Engineer Tran Bhavan, 5th Floor, 87A, S.N. Banerjee Road, Kolkata-700014

3 WBSEDCL Chief Engineer (Distribution) Bidyut Bhavan,

4 PWD, South 24 Parganas Division Executive Engineer South 24 Parganas Division

5 PWD, South 24 Parganas Division -

Social Sector Executive Engineer

South 24 Parganas Division - Social Sector

6 PWD, Diamond Harbour Division Executive Engineer Diamond Harbour Division

7 PWD, Tamluk Division - Social Sector Executive Engineer Tamluk Division - Social Sector

8 PWD, Tamluk Division Executive Engineer Tamluk Division

9 PWD, North 24 Parganas - Social Sector Executive Engineer North 24 Parganas - Social Sector

10 PWD, Barasat Division Executive Engineer Barasat Division

11 National Highway Planning & Design

Division –III, PWD Executive Engineer

11A, Mirza Ghalib Street, 2nd Floor, Block-A, Kolkata-700087

12 Public Works Directorate,

Office of the Executive Engineer Executive Engineer

Kolkata IT Division, PWD Main Block, Ground Floor

Writer's Building, Kolkata-700001

13 District Magistrate & Collector, Purba

Medinipur DDMO Purba Medinipur

District Magistrate & Collector, Purba Medinipur, Tamluk Administrative Building,

Haldia - Tamluk - Mechada Rd, Tamluk,

West Bengal - 721636

14 Office of the District Magistrate,

North 24 Parganas

DDMO North 24 Parganas

Office of the District Magistrate, North 24 Parganas

New Administrative Building, Barasat,

North 24-Parganas, Kolkata-700 124

15 Office of the District Magistrate, South

24 Parganas

DDMO South 24 Parganas

Office of the District Magistrate, South 24 Parganas

District Disaster Management Department

New Treasury Building (1st Floor),Alipore, Kolkata-700027

7. Reporting and Audit Opinion The internal auditor should review and assess the analysis drawn from the internal audit evidence obtained as the basis for his conclusion on the efficiency and effectiveness of systems, processes and controls. Each report shall have the following sections • Introduction- Objective, scope, nature and coverage of the audit including period covered, locations reviewed, work carried out, staff involved, level of coverage of all listed aspects • The internal auditor's opinion as to the overall adequacy of the systems of internal control, • Executive Summary of key findings; separately for Procurement, Financial Management, Project Management

Institutional Aspects and Others. The report of the last quarter of the financial year should summarize the findings for the whole year.

• Detailed internal audit findings, with adequate descriptions of weaknesses identified and the associated risk. This section will be supported with details, tables, annexure. Further, the financial impact of the observations should be quantified and clearly reported, as applicable. • Recommendations; separately for Procurement, Financial Management, Project Management & Institutional Aspects and Others. • Responses to findings and recommendations by authorized persons stating the timeline for remediation and the person responsible • The report should have a separate section for reporting the progress on earlier set of recommendations and constraints faced. The report should be discussed and agreed with the auditable units and should be structured to list the observations, the implications of the observations, the suggested recommendation and the management comments/agreed actions. The audit observations should be supported by instances and quantified, as far as practicable. Copies of all internal audit reports shall be made available to the external auditors. The auditor will commence their audit immediately after the close of the half year, complete the audit and submit their audit report within 45 days from the end of the half year. The semiannual internal audit report will be addressed to the Project Director at the state PIU and the copies will be provided to the NDMA. 8. Period of Appointment: The consultancy will be initially for a period of 12 months. Performance will be reviewed at the end of each year. Upon satisfactory performance the contract may be continued for subsequent period. 9. Composition of Review Committee to Monitor Internal Auditor’s works The following officers will be on the committee to monitor the Internal Auditor’s Report. 1. Principal Secretary, Department of Disaster Management, Government of West Bengal, 2. Chief Engineer, PWD 3. CMD, WBSEDCL, 4. Deputy Project Director, NCRMP II 5. Finance Officer, NCRMP II. The Committee will review the audit report and send the action taken report to the funding agency. 10. Support/Inputs to be provided by the SPIU The internal auditor will be given access to all legal documents, Project Financial Management Manual, Procurement Manual, procurement check list, and any other unclassified information associated with the Project and deemed necessary by the auditor. It is extremely important that the auditors become familiar with the Project Guidelines on Disbursements and Procurements. All these documents will be provided to the auditor by the SPIU. 11. Qualifications and Team Composition The Internal Auditor team must have considerable experience and expertise in conducting audits particularly on infrastructure development projects. All the key team members will work as full time staff for the period

committed by the consultants. The Consultants should also have experience in the process and audit practices of World Bank assisted projects. The consultants will have the following technical staff as full time/part time staff over the project period. The Consultants will provide the services of key professionals as full-time and part time staff to the project. Key Position Qualification and Experience Time commitment Team Leader(Internal Auditor)

Graduate preferably in Commerce with Fellow of Chartered Accountants (FCA) qualification having at least 10 years of related experience in conducting audits for large organizations. Should also have at least 3 years of experience of working on World Bank/externally aided projects.

Six man months

Procurement specialist

Graduate in commerce or engineering with minimum 3 years prior experience of carrying out procurement review.

Six man months

Audit Assistant Should possess Institute of Chartered Accountants of India (CA) qualification having at least 03 years of related experience in conducting audits for large organizations. Should have at least 3 years of relevant experience in having conducted audits for externally aided projects

Six man months

Appendix

Component Description Method of

Procurement Quantity (Number)

A Early Warning Dissemination System NCB 1

B Pkg NCRMP-II/WB/Goods - 1: Procurement of Shelter Level Equipment for MPCS in the districts of North 24 Parganas, South 24 Parganas & Purba Medinipur in West Bengal

NCB 1

B Construction of Bus Shelter with Lightening Arrester NCB 160

B Coastal Belt Plantation NCB 150

D Maintenance, Security and Housekeeping at PIU (for One Year) Shopping 1

D

INTERNAL AUDITOR (FOR ONE AND HALF YEAR): A. Provide services to PIU/DoDM for implementation of the project by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, financial control, and governance processes.

QCBS 1

D

GIS SPECIALIST: (FOR ONE YEAR) A. Report Generation in connection with Remote Sensing and GIS related data base development and hazard mitigation management.

IC 1

D

ENVIRONMENT SPECIALIST : (FOR ONE YEAR ) A. Evaluation of reports and proposals; input to NCRMP-II plan, preparation on coastal, environmental analysis, demography, in project areas; environmental impact and auditing and coordination for NCRMP-II Project implementation.

IC 1

D

SOCIAL DEVELOPMENT SPECIALIST : (FOR ONE YEAR) A. Evaluation of reports and proposals; input to NCRMP-II plan, preparation on coastal, social institution, socio-environmental analysis, demography, socio-economic development and social mobilization in project areas; sociology data collection and storage; environmental and social impact and auditing and coordination for NCRMP-II Project implementation.

IC 1

D

PROCUREMENT SPECIALIST : (FOR ONE YEAR) Responsible for the overall Coordination of all procurements related project activities to ensure that the related project objectives are achieved within the time schedule and within the financial plan.

IC 1

D

TRAINING SPECIALIST: (FOR ONE YEAR) Responsible for the overall Coordination of all Training related project activities to ensure that the related project objectives are achieved within the time schedule and within the financial plan.

IC 1