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Request for Proposal - Internal Audit DGKWMC
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Dera Ghazi Khan Waste Management Company (DGKWMC)
REQUEST FOR PROPOSAL (RFP)
HIRING OF FIRM FOR INTERNAL AUDIT SERVICES
November 2021
Procurement Number: 211022021-1
House # 39-X, Jail Road, Model Town, D.G. Khan
PH:064-2402120 – 064-2402265
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1. Request for Proposal (RFP)
1.1. Introduction:
Dera Ghazi Khan Waste Management Company was established by the Government
of Punjab under Sec. 42 Companies Act, 2017 through SECP. Dera Ghazi Khan
Waste Management Company is legally mandated to develop an improved and
integrated solid waste management system to ensure collection, transportation and
disposal of solid waste so as to provide sustainable, efficient and affordable waste
management services to the citizens of DG Khan City.
1.2. Scope:
DGKWMC invites Proposal from the Audit Firms for the Internal audit of DGKWMC
for the financial year 2020-21 and report directly to Board Audit Committee.
1.3 Tenor:
The audit, review and assurance engagement would be for a term of six (06) months
subject to satisfactory performance review by Audit Committee and Board of
Directors.
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2. INSTRUCTIONS FOR FIRMS
This Section specifies the procedures to be followed by Firms in the preparation and submission of their Proposals for RFP.
2.1. Procuring agency issues this RFP Document to Firms interested in applying for the
tasks described in Terms of References (TORs) Section of this document.
2.2. Proposals shall be submitted using Proposal Forms annexed with this document.
2.3. The name and mailing address of the firm shall be clearly marked on the envelope.
2.4. The Proposal, as well as all correspondence and documents relating to the RFP
exchanged by the Firm and the Employer, shall be written in the English language.
2.5. Firms must respond to all questions and provide complete information as advised in
this document.
2.6. Firms may participate only in one Proposal for the project. If a Firm submits more
than one Proposal for the project, all Proposals that include that firm shall be rejected.
This rule does not apply in respect of Proposal that includes sub-contractors who are
used by more than one firm.
2.7. Firms must meet the Criteria listed below in Section 3 to be considered for further
evaluation based on Capability Evaluation Criteria and Financial Evaluation as listed
in RFP document.
2.8. The Firm shall attach original affidavit on non-judicial stamp paper (with a value of
Rs. 500) and declaring on oath that the Firm:
a. is not in bankruptcy or liquidation proceedings; b. Has never been declared ineligible/blacklisted by Government / Semi-
Government / Agency or Authority or any employer till date due to the any reasons.
c. is not making any misrepresentations or concealing any material fact and detail; d. has not been convicted of, fraud, corruption, collusion or money laundering; e. is not aware of any conflict of interest or potential conflict of interest arising from
prior or existing contracts or relationships which could materially affect its capability to comply with its obligations; and
f. Does not fall within any of the circumstances for ineligibility or disqualifications.
2.9. To assist in the evaluation of Proposals, the Employer may, at any stage during the
course of the RFP process, ask any Firm for clarification in respect of any matter
associated with the documentation submitted by the Firm in its Proposal. If a Firm
does not provide clarifications of the information requested by the date and time set
in the Employer’s request for clarification, its Proposal shall be evaluated based on
the information and documents available at the time of evaluation of the Proposal.
2.10. Firms may be required to update the information submitted for RFP at the time of
submission of their Proposals to confirm continued compliance with the RFP Criteria.
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Firms shall provide such evidence of their continued eligibility satisfactory to the
Employer, as and when required by the employer. A Proposal shall be rejected if the
Firm’s qualification thresholds are no longer met.
2.11. The firm must declare and undertake that all the information, warranties, statements
and representations provided within this Proposal are true and correct; and firm also
understand that in case any of the aforesaid are found to be false/incorrect then firm
is liable to be disqualified, without prejudice to its other rights and actions the
Employer may exercise under the applicable laws.
2.12. Proposals must be received in sealed envelopes to be delivered by hand or through
registered mail to:
Chief Executive Officer,
Dera Ghazi Khan Waste Management Company.
House # 39-X, Jail Road, Model Town, D.G. Khan
PH:064-2402120 – 064-2402265
2.15. Proposals shall be submitted using Proposal Forms (A-1 to A-6)
annexed with this document.
2.16. The interested firm may download RFP document from PPRA.
2.17. The Employer reserves the right to waive minor deviations, if these do
not materially affect the capability of a Firm to perform the contract. In
such case, similar relaxation shall be extended to all Firms similarly
affected.
2.18. The Employer reserves the right to seek additional information, missing
information, and/or clarification of submitted information, from any Firm.
In such case, opportunity shall be provided to all Firms similarly affected.
2.19. Procurement of Internal audit services would governed by PPRA Rules
(2014)
2.20. Firms are prohibited to form Joint Venture for provision of Internal Audit
services for the purpose of subject assignment.
2.21. Firms are prohibited to sub-contract Internal Audit services.
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Section 3.
Proposal Evaluation Criteria
Proposals submitted would be evaluated to determine “Lowest evaluated bidder” by
passing through following three stages on knock-out basis:
1- Minimum Qualification Criteria; (Mandatory Criteria)
2- Capability Evaluation Criteria
3- Financial Quote Evaluation
3.1. Minimum Qualification Criteria; (Mandatory Criteria)
Description
Firm
Legal Status of Firm and registration with institute of Chartered Accountants of Pakistan (ICAP)
Must Meet
Requirement
Registration with Federal Board of Revenue FBR (NTN Certificate) and with Provincial Revenue Authority PRA (registration certificate)
Must Meet
Requirement
Declaration on stamp paper regarding non-black listing / delisting of firm and all of its sub- contractors, if any.
Must Meet
Requirement
Minimum 10 years in practice in Pakistan Must Meet
Requirement
Satisfactory ICAP rating Must Meet
Requirement
The firm must be “A” ranking as per State Bank of Pakistan Must Meet
Requirement
Submission of duly filled Proposal Form – 7 Must Meet
Requirement
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3.2. Capability Evaluation Criteria:
In order to evaluate firm’s financial quote to determine “Lowest Evaluated Bidder”, the
Firms shall first obtain at least 65 marks or more in following “Capability Evaluation
Criteria “to stand qualified for financial quote evaluation.
Serial No. Evaluation Criteria Marks
1. Firm Financial Capability: Total - 30
1.1 Average annual turnover of at least 50 Million in last three financial years
marks
Turnover from 50 Million to 100 Million 10
Turnover from 100 Million to 150 Million 20
More than 150 Million 30
2 Managerial and Quality Capability:: Total - 30
2.1 List of Partners attached with ICAP Registration Numbers and date of admission.
15 marks
- 1- 4 Partners 5
- 5 - 9 Partners 10
- Up-to or more than 10 Partners 15
2.2 ICAP Qualified Chartered Accountants in the Firm in Pakistan. (Attached list with ICAP Registration Numbers
15 marks
- 1 – 4 ICAP Qualified Cas 5
- 5 - 9 ICAP Qualified Cas 10
- Up-to or more than 10 ICAP Qualified CAs 15
3 Firm Past Experience: Total - 40
3.1 Experience of at least 10 Govt. / Semi Govt. Organization’s / Public Sector Companies as Internal Auditor in last 05 years
20 marks
10 -15 10
More than 15 20
3.2 Experience of Internal Audits of Power Sector in last 5 years
20 marks
1-3 10
Above 3 20
3.3 Financial Quote Evaluation: All qualified firms will be evaluated on Least Cost Method as stipulated in PPRA Rules, 2014.
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Terms of Reference:
1. Company Background:
Dera Ghazi Khan Waste Management Company was established by the Government of
Punjab under Sec. 42 Companies Act, 2017 through SECP. Dera Ghazi Khan Waste
Management Company is legally mandated to develop an improved and integrated solid waste
management system to ensure collection, transportation and disposal of solid waste so as to
provide sustainable, efficient and affordable waste management services to the citizens of DG
Khan City.
As per requirement of section 233 and 246 of Companies Act, 2017, the financial statements
shall be audited by the auditor of the company, in the manner thereinafter provided, and the
auditor‘s report shall be attached and subsequent auditors shall be appointed by the company
in the annual general meeting on the recommendation of the board after obtaining consent of
the proposed auditors.
2. Scope of Services:
Evaluating risk exposure relating to achievement of the organization’s strategic objectives.
Evaluating the reliability and integrity of information and the means used to identify, measure, classify, and report such information.
Evaluating the systems established to ensure compliance with those policies, plans, procedures, laws, and regulations which could have a significant impact on the organization.
Evaluating the means of safeguarding assets and, as appropriate, verifying the existence of such assets.
Evaluating the effectiveness and efficiency with which resources are employed.
Evaluating operations or programs to ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned.
Monitoring and evaluating governance processes.
Monitoring and evaluating the effectiveness of the organization's risk management processes.
Performing consulting and advisory services related to governance, risk management and control as appropriate for the organization.
Reporting periodically on the internal audit activity’s purpose, authority, responsibility, and performance relative to its plan.
Reporting significant risk exposures and control issues, including fraud risks, governance issues, and other matters needed or requested by the Audit Committee.
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Evaluating specific operations at the request of the Audit Committee or management, as appropriate.
The Internal Audit Function must assist the Audit Committee in maintaining effective controls
by evaluating those controls and by developing recommendations for enhancement or
improvement.
Assisting the Audit Committee, and through them, the BOD and Management in the effective discharge of their responsibilities by furnishing them with the analysis, appraisals, recommendations, counsel and information concerning the activities reviewed and regular follow up.
The Internal Audit Function must, in consultation with the Audit committee, prepare: a) A two years strategic Internal Audit Plan based on its assessment of key areas of risk
for the public entity, having regard to its current operations, the operations proposed
in its corporate or strategic plan and its risk management strategy;
b) An annual Internal Audit Plan;
c) Plans indicating the scope and time lines of each audit in the annual Internal Audit;
d) Audit Reports directed to the Audit Committee detailing its performance against the plan
to allow for effective monitoring and intervention where necessary.
3. Expected deliverables
Performing an audit assignment, each assignment should at least consist of the following:
a) Pre-audit survey; b) Audit Planning memorandum; c) Risk assessment document; d) System description(s); e) Audit programme; f) Sampling methodology; g) Mechanisms for follow-up on matters previously reported and feedback to the
Audit Committee; h) Mechanisms to ensure that working papers are reviewed at the appropriate level; i) Audit findings and recommendations; j) Reporting (draft internal audit report and final internal audit report); k) Follow up of previous audit findings. l) Development of Pre-Post Audit Manual / Audit Charter m) Development of Internal Audit Control and internal check system of organization.
(ii) The Internal Audit Firm will be reporting to the Audit Committee on Quarterly basis,
the structure of the Internal Audit Report is to be as follows:-
a) Introduction;
b) Audit objective and scope;
c) Background;
d) Executive summary, highlighting significant findings;
e) Findings, recommendations & Management responses (including implementation
dates);
f) All audits are to be carried out according to the internal Audit Plan approved by
the Audit committee;
g) Conclusion; and
h) The auditor is to deliver to the Chairperson of the Audit Committee and the CEO of the Company an electronic copy and one signed copy of the final report
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4. Core team of required experts:
Audit firm should deploy following, but not limited to, team for completion of subject
Assignment.
5. Professional liability of bidders:
An auditor is liable to perform work such as examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An auditor
would also include assessing the accounting policies and significant estimates
made by management, as well as, evaluating the overall presentation of the above
said statements.
An auditor is liable not to disclose information to any third party which has been
acquired during conduct of audit, review and assurance engagement or any other
liability as stipulated in PPRA Rules, 2014
Sr# Designation Qualification Experience
1 Engagement
Partner
Fellow Chartered Account registered with ICAP
10 years of experience with at least
03 Assignments in Public sector.
2 Manager Audit
Chartered Account registered with ICAP
5 years of experience with at least 2
Assignments in Public sector
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6. Covering Letters:
Covering letter (if any) must be addressed to Manager Procurement & Contracts, House # 39-X, Jail Road, Model Town, D.G. Khan
PH:064-2402120 – 064-2402265.
Email: [email protected]
7. Queries:
For any queries or additional information, please contact Chief Internal Auditor, on
064-2402120 – 064-2402265 during office hours.
8. Type of Contract
The Company (DGKWMC) will enter into a lump sum contract with the successful bidder.
The Company reserves the right to review the contract at end of each the term.
9. Payment Mode
The Company undertakes to pay valid invoice within thirty (30) days from receiving
of invoice. Auditor shall ensure that Audited Accounts and Initialed Report have
already been provided to the Company before rising of invoice.
10. Estimated Cost (PKR. 300,000/- for each year including all applicable taxes) Estimated cost of services is Rs. 600,000/- for two years.
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Letter of Proposal
[Letterhead paper of the Firm, including
full postal address, telephone no., fax no.
and e-mail address]
Date:
To: Manager Procurement & Contracts, Dera Ghazi Khan Waste Management Company
Dear Sir,
1. Being duly authorized to represent and act on behalf of ..................................
(hereinafter “the Firm”), and having reviewed and fully understood all the RFP
information provided, the undersigned hereby applies to be qualified as a firm
for the following contract(s) under the Request for Proposal for Hiring of
Internal Audit Services for the Financial Year 2020-21 and 2021-22.
2. DGKWMC or its authorized representatives are hereby authorized to conduct
any inquiries or investigations to verify the statements, documents, and
information submitted in connection with this Proposal, and to seek clarification
from our bankers and clients regarding any financial and technical aspects.
This Letter of Proposal will also serve as authorization to any individual or
authorized representative of any institution referred to in the supporting
information, to provide such information deemed necessary and requested by
yourselves or the authorized representative to verify statements and
information provided in this Proposal, or with regard to the resources,
experience, and competence of the Firm. The procuring agency may conduct
interviews for the selection of best option.
3. DGKWMC or its authorized representatives may contact the following persons
for further information, if needed.
4. This Proposal is made with the full understanding that:
General, Financial and Managerial Inquiries
Contact 1 Telephone 1
Contact 2 Telephone 2
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(a) Proposals from bidders will be subject to verification of all information
submitted for RFP;
(b) DGKWMC reserves the right to cancel the RFP process, and reject all
Proposals; and
(c) DGKWMC shall not be liable for any such actions or consequence of,
and shall be under no obligation to inform us of the grounds for
actions at 5(b) here above.
5. Appended to this Proposal, also specify the financial commitment in terms of
the percentage of the value of the contract, and the responsibilities for
execution of the contract.
6. The undersigned declare that the statements made and the information
provided in the duly completed Proposal are complete, true, and correct in
every detail.
Signed
For and on behalf
of (name of Firm)
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Proposal Form A-1
General Information
[Firm applying for RFP is required to complete the information in this form.]
Name of Firm
Head Office Address
Firm registration number:
Year of incorporation:
National Tax Number (NTN) and Punjab Revenue Authority Number (PRA):
Telephone Contact Person: Name:
Title:
Fax Telex
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Financial Information Proposal Form A-2
Year Annual Turnover * (PKR) Reference
FY 2020-21
FY 2021-22
All information should be supported by verifiable Supporting
documents
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Proposal Form A-3
Details of Contracts of Experience
Name of Firm ________________________________________________________
[Use a separate sheet for each contract]
1.
Name of Contract
Location
2. Name of Employer
3. Employer Address
4. Nature of work and similarity to this project
5. Contract Role (Tick One)
(a) Sole Contractor (b) Sub- Contractor
6. Value of the total contract (in PKR) at completion, or at date of award for current contract
8. Date of Award
9. Date of Completion
10. Contract Duration (Years and Months) Years Months
11. Contract Requirements
12. Reference
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Proposal Form A-4
Affidavit of Correctness of Information
The Firm/Partner shall attach original affidavit on non-judicial stamp paper (not less than
a value of Rs. 500) and declaring on oath, as follows:
We do hereby declare and undertake that all the information, warranties, statements
and representations provided within this Proposal are true and correct; and we also
understand that in case any of the aforesaid are found to be false then we are liable to
be disqualified, without prejudice to any other rights and actions the Employer may
exercise under the applicable laws.
For & on Behalf of the Firm
Name:
Designation:
Date:
Witness # 1:
Signature: Signed By:
Designation: Date:
Witness # 2:
Signature: Signed By: Designation Date:
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Proposal Form A-5
Template for Affidavit for Non-Blacklisting and Eligibility
The Firm/Partner shall attach original affidavit on non-judicial stamp paper (not less than
value of Rs. 500) and declaring on oath that the Firm:
a. is not in bankruptcy or liquidation proceedings;
b. has never been declared ineligible blacklisted by Government / Semi
Government / Agency or Authority or any employer till date due to the
any reasons
c. is not making any misrepresentations or concealing any material fact
and detail;
d. has not been convicted of, fraud, corruption, collusion or money
laundering;
e. is not aware of any conflict of interest or potential conflict of interest
arising from prior or existing contracts or relationships which could
materially affect its capability to comply with its obligations; and
f. does not fall within any of the circumstances for ineligibility or
disqualifications
Witnessing Form:
Witness # 1:
Signature: ___
Signed by: __
Designation: _
Date: ______
Seal:
Witness # 2:
Signature:
__ Signed
by: _
Designation:
Date:
_________
Seal:
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Proposal FORM A-6
Template for Power of Attorney (For signatory of Proposal)
[To BE PRINTED ON a PKR 100 STAMP PAPER]
KNOW ALL MEN BY THESE PRESENTS THAT by this Power of Attorney ("Power of
Attorney"),
_____________ [Insert name firm/Consortium] having its registered office at [ ], does
hereby nominate, appoint and authorize Mr. ______________ , having CNIC
No. _________________ hereinafter referred to as the "Signatory of Proposal", to do
in our name and on our behalf the following:
i. Sign and submit to Project Coordinator or its authorized nominee, the Proposal of
Firm for " ---------------------------- ", in response to the RFP advertisement dated [-]
issued by The Procuring Agency and all other documents and instruments required
to submit the Proposal.
ii. execute all such contracts, deeds, documents and instruments as may be
considered necessary and expedient in relation to the foregoing; and
iii. do and carry out all other actions as may be required by the Procuring Agency in
connection with the Proposal /negotiations as a whole;
iv. To immediately notify The Procuring Agency in writing of any impending or actual
revocation as well as any change in the terms of this Power of Attorney.
v. To do in our name and on our behalf, all such acts, deeds and things
necessary in connection with or incidental to our Proposal in response to the
above referred Proposals including signing and submission of all documents
,instruments and deeds (including correcting any deficiencies or mistakes
therein), attending any meetings organized by the Procuring Agency
(including pre-Proposal conference meetings and Proposal opening
meetings)and providing information/responses to the Procuring Agency in all
matters in connection with our Proposal.
We, [Insert name of Firm/Consortium], do hereby ratify and confirm whatsoever the
Signatory of Proposal shall do by virtue of these presents and further agree that
whatever the Signatory of Proposal shall do or cause to be done pursuant to this
Power of Attorney shall be binding on us.
Furthermore, each provision of this Power of Attorney is severable and distinct from
the others. The invalidity, illegality or unenforceability of any one or more provisions
of this Power of Attorney at any time shall not in any way affect or impair the validity,
legality and enforceability of the remaining provisions hereof.
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IN WITNESS WHEREOF, we have executed this POWER OF ATTORNEY as of [Date].
FOR: [INSERT NAME OF FIRM/ CONSORTIUM]
Signature: _________________________
Name:
Title:
CNIC/Passport No. :
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Documentary Evidence
Proposal FORM A-7 Tick
()
1 Letter of Proposal
2 General information (form A-1)
3 Financial information (form A-2)
4 Detail of contracts of experience (form A-3)
5 Affidavit of correctness of information (form A-4)
6 Affidavit for non-blacklisting and eligibility (form A-5)
7 Power of attorney for authorized representative (form A-6)
8 Evidence showing legal status of Firm and registration with Institute of Chartered Accountants of Pakistan (ICAP)
9 NTN and PRA registration Certificate
10 Evidence showing minimum 5 years in practice in Pakistan
11 Evidence showing Satisfactory ICAP rating
12 Evidence showing that the firm must be “A” ranking as per State Bank of Pakistan
13 Annual accounts showing turnover (form A-2)
14 Annual accounts showing current ratio (form A-2)
15 List of Partners attached with ICAP Registration Numbers, location and date of admission of each partner
16 ICAP Qualified Chartered Accountants (excluding partners) Employed by Firm in Pakistan enlisted with ICAP Registration Numbers, department and location
17 Resumes of Engagement Partner, Director Audit and Manager audit showing qualification and experience in required assignments
18 Names of Govt. / Semi Govt. Organization’s Auditor with reference letters, annual report extract, engagement letter etc. (form A-3)
19 Names of Power Sector Companies who have the firm as Auditor with reference letters, annual report extract, engagement letter etc. (form A-3)
20 Names of Thermal Sector Companies who have the firm as Auditor with reference letters, annual report extract, engagement letter etc. (form A-3)
This form should be duly filled to ensure completeness of quote.