Tender Description

REQUEST FOR PROPOSAL & TOR FOR CLOSE OUT AUDIT OF Kismayo Health and Nutrition Project (KHNP) 

1. Background 

   CARE International has been providing development and lifesaving assistance across all regions of Somalia since 1981. Our programs go beyond meeting basic needs at the onset of an emergency to helping affected communities recover, rebuild their lives and become more resilient. In order to strengthen communities to better cope with future disasters and address persistent poverty and vulnerability, we are implementing a variety of longer-term development activities aimed at addressing   the   underlying   causes   of   poverty   in Somalia. Our development programs support marginalized women and youth through innovative projects in education, water and sanitation, sustainable environmental management, civil society development, peacebuilding and   governance and small scale enterprise development. CARE works in partnership with Local and international NGOs, civil society leaders, universities, the private sector and local authorities in order to bring effective and lasting change to the most vulnerable communities.

    

2. Summary

   1. Brief overview of the KHNP Project

The Project is designed to provide multisectoral Health, Nutritional and Protection intervention support for acute malnourished children and pregnant and lactating women (PLW) in Kismayo district, Lower Juba region. This project will particularly respond to the grave nutrition situation among drought-affected people in Kismayo district, targeting the Internally Displaced Persons (IDP), returnees, and vulnerable host communities. 

Project title

Kismayo Health and Nutrition Project (KHNP)

Project objectives 

To improve Health and Nutrition status amongst children under 5 and pregnant and lactating women through the provision of quality Health and Nutrition services and contribute to the reduction of maternal and childhood morbidity and mortality.

Location

Kismayo

Start date 

1st July 2023

End date 

30-June- 2024

Contract Value 

EURO 250,000

Donor 

Ministry of foreign affairs Luxemburg 

Implementing Partner 

CARE international

Location of the documents to be audited

 Mogadishu and Kismayo 

The project results areas are as follows: 

1.  NUTRITION: procurement of Nutrition supplies (RUTF & RUSF),
2.  HEALTH: medical services, procurement of medical supplies etc.
3. Protection: distribution of dignity kits 100HH
4. Audit Objective 

The objective of the audit of the financial statements is to enable the auditor to form tan opinion on the financial position of the project at the end of the reporting period and of the funds received and expenditures for the reporting period, as reported by the CARE international and in particular to confirm that the reported expenditure has, in all material respects, been used in conformity with the provisions of the Accountable Grant Agreement, including any amendments thereto as contained in implementation letters, and any applicable guidelines in force and applicable to the audit scope, and with due attention to economy and efficiency.

To confirm that the financial statements agree with the project accounts (books of account) which provide the basis for preparation of the financial statements and are established to reflect the financial transactions in respect of the project, as maintained by the Implementing Partner and the sub-grantees.

1. Scope of Work

The audit will be carried out in accordance with international standards of auditing. It will include such tests and controls as the auditor considers necessary including visits to project office and the field. In additional, the auditors will determine a sample from the expenditures incurred from 1st July 2023 to 30-June-2024, generally, the audit will focus on:

• the expenditures incurred from 1st July 2023 to 30th June-2024  

• Contractual compliance and practice:  To assess and confirm that that CARE International and its implementing partner are compliant with Ministry of foreign affairs Luxemburg contractual obligations. It will also entail confirming that CARE’s management practices, including administrative, contractual, financial and legal are in line with best practices.

• Financial management and internal controls: To assess and confirm that financial management and control environment of CARE international and its implementing partners has been designed and implemented in line with best and generally accepted accounting standards. 

• Expenditure and reporting verification: To verify and confirm, on a sample basis, that reported expenditure and other financial reports issued by the Implementing Partner are accurate and a true reflection of the project’s financial activities, and also to confirm that all expenditures have sufficient support documentations. 

• Contracting and procurement: To establish and confirm that transparent, accountable and appropriate procurement and contracting practices are established and are being followed. 

• Regulatory and tax compliance: to confirm on whether CARE has complied with regulatory/tax laws. 

Specific focus will be:

1. To ascertain compliance of the laid down policies, financial norms, accountable grant agreement, relevant legislations, various guidelines, manuals, accountability requirements, procurement guidelines (of goods, works and/or services) as applicable under the project.
2. To test whether all the activities included in the work plans have been implemented as planned and the target results under each activity achieved. A minimum sample of 60% of total expenditure value should be tested.
3. Expenditure verification for the project expenditures, and reporting on allow ability/eligibility, validity, accuracy and classification of costs into budget lines
4. Verification that the administrative (indirect) costs do not exceed the maximum allowed fraction of the total direct eligible costs of the project per the approved budget.
5. Physical verification of all capital assets purchased by the grant monies for their existence, conditions, location, and values - including reporting on the same.
6. Test and assess the extent of achievement of project milestones.
7. To ascertain and evaluate the adequacy and effectiveness of the financial management and internal control framework/ environment such as segregation of duties, approval of expenditure and cash & bank reconciliations.
8. To form an opinion regarding Value for Money (VfM), that is, efficiency, effectiveness and economy of the project’s operations.
9. Assess conformity of expenditure with the budget and analytical review - includes tests of authenticity/ authorization of the initial budget, conformity with budget, test that all expenses were foreseen in the budget,  test that amendments to the approved budget comply with the conditions for such amendments, and that expenditure for a transaction or action has been classified under the correct heading and subheading of the approved budget. Any costs incurred that were not approved budget sought donor prior approval.
10. To identifying areas for improvement and critical weaknesses, if any, i.e. identify areas of good practice and themes where lessons can be learned and communicate. 
11. Methodology

This audit will require the following general approach to be applied: 

1. Review of CARE’s internal control environment, expenditure and reports.

The audit will require a review, understanding, description of Implementation and internal control environment. This understanding will inform the auditor on why the Implementing Partner uses source documentation, authorization guidelines, processes and systems. 

Key items to be reviewed will not be limited to the following:

• Accounting system controls.
• Cash movement controls.
• Advances and per diem control.
• Time and payroll controls.
• Authorization controls.
• Procurement controls.
• Capitalization and asset management controls.
• Reporting and financial performance controls.
• Review of relevant expenditure documentation.

The audit will require a sample check and review of programmed expenditure documentation to assess:

• Supporting documentation.
• Contractual compliance.
• Compliance to the donor accounting instructions.
• Allowable and disallowable costs.
• Questionable costs.
• Adherence to Implementing CARE’s internal controls.
• Budget limits adherence.
• Review of Implementing Partner’s budget performance and report.

The audit will require a review of CARE’S spend against the budget report to ascertain accuracy of reports submitted as well as fairness of forecasts submitted.

• Review of CARE’s financial management and contractual compliance
• Review last CARE’S reported expenditure against audited expenditure

The audit will require a review of CARE’s financial management practices, which will include:

• Tax management and administration.
• Application of general acceptable accounting standards.
• Management and application of set procedures and policies; and

• Application of relevant regulatory requirements.

   

1. Verify implementation of recommendations of previous audits) findings.

The audit will require a follow up of implementation of previous recommendations of similar audits, financial audits.

1. Conduct visits to CARE’S offices

The visit of audit team to CARE’s offices in Kismayo &  Mogadishu will be mandatory 

1. Recipient

CARE management be the sole recipient of the output of this process.

1. Deliverables
2. A close out Audited Financial statements forming an opinion on whether they are free from material misstatements
3. Summary of key findings and recommendation and subsequent management responses from CARE international 
4. managing the identified issues over the life of the project.
5. A statement of compliance with Donor terms and conditions as contained in the Accountable Grant Agreement.
6. A verification report on the capital assets purchased by the grant funds under the project.

Instructions on Proposal Submission

The proposal should contain the following

1. Profile of the firm.

2. Experience of the firm in relation auditing NGOs 

3. List of the NGOs served by your firm

4. Financial proposal 

5. CVs of the key staff in your firm that will part of the audit team (The key staff should have the five years of relevant experience or more with Bachelor of accounting or CPA. 

6. Valid practicing certificate 

7. Recent Tax Clearance Certificate

Skills Required

Attachment

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