ToR: External Audit for UAA Financial Statements Community Based Sociotherapy Rwanda

By | April 7, 2018

ToR: External Audit for UAA Financial Statements Community Based Sociotherapy Rwanda

Community Based Sociotherapy Rwanda

The Community Based Sociotherapy Program (CBSP) was initiated in December 2013 to improve psychosocial well-being and strengthen interpersonal reconciliation and social cohesion at the grass-roots level in Rwanda.

TERMS OF REFERENCE ON EXTERNAL AUDIT FOR UAA FINANCIAL STATEMENTS

STARTING FROM THE 18TH SEPTEMBER 2017 TO THE 16TH MAY 2018

1.    Background

Community Based Sociotherapy Rwanda (CBS Rwanda) is national non-governmental organization created to improve psychosocial wellbeing and strengthen interpersonal reconciliation and social cohesion at the grass-roots level in Rwanda. Sociotherapy uses the group as a therapeutic medium in the establishment of trust, the creation of an open environment for discussion and the formation of peer-support structures. The socio-groups facilitate community members to identify, acknowledge, share, and manage together their everyday psychosocial problems related to the recent history of political violence and its aftermath.

Under financial support of Ikiraro cy’Iterambere, CBS Rwanda in partnership with Prison Fellowship Rwanda (PFR) and the Anglican Church of Rwanda Byumba Diocese (EAR-D/Byumba) is implementing a pilot project called Umusingi w’Amahoro Arambye (UAA): Breaking intergenerational cycles of trauma and violence through grassroots advocacy. The project aim is to increase recognition of the importance of addressing and preventing intergenerational trauma through the development of trauma-informed policies and practices. At field level, the project is implemented in two districts namely Muhanga District by PFR and Rulindo by EAR-D/Byumba.

The pilot project started on 18th September 2017 and will end by 16th May 2018. Therefore, CBS is seeking an external audit firm to conduct a comprehensive financial performance, compliance and risks based audit. The total envelope to be audited is GBP 99,872 (or Rwf 107,584,899).

2.    Scope of the work
2.1. The successful bidder will be required to perform the following tasks:

  • Certification of CBS (UAA) financial statements covering the period from the 18th September 2017 to 16th May 2018 (obtain reasonable assurance that CBS financial statements are free from material misstatements);
  • The auditor must establish the accuracy and completeness of all receipts and expenditures and that they derive logically from and are in line with the activity plan;
  • The auditor must observe a minimum level of reliability of 95% and a permitted tolerance of 3%;
  • The audit opinion should be drawn up in accordance with the model in paragraph 3 of this term of reference;
  • The scope of external audit work entails testing and evaluating the adequacy and effectiveness of the organization’s systems of internal control and administrative organization and to make recommendations;Review the effectiveness and efficiency of the financial and human resource management process;
  • Appraising the effectiveness and efficiency with which resources are employed and identifying opportunities to improve operating performance;
  • Review the reliability and integrity of financial and operating information and the means used to identify measure, classify and report such information;
  • Review the systems established by management to ensure compliance with those policies, laws, regulations and controls that could have a significant impact on operations and determine whether the organization is in compliance with its financial, administrative and property management procedures and other relevant legislation that governs the organization;
  • Ensure that the organization adheres to the corporate governance requirements as prescribed in the organization’s internal rules and regulations;
  • Ascertain, by means of a limited review of the narrative report, that the narrative and financial sections of the report are in agreement and contain no contradictions;
  • Ensure value for money for all expenses incurred for the program activity.

2.2. Execution of audit assignments will be as follows:

Assignments are to be performed in accordance with the International Standards of Auditing (ISA).

3. Reporting

The audit opinion should in any event include the aim and scope of the audit (paragraph 2.1 and 2.2), the audit criteria applied, where relevant, and any restrictions imposed on the scope of the audit.

The auditor will write a report of findings regarding the evaluation of the administrative organization and internal control structure of the grant recipient, identifying any matters worthy of mention, including any material shortcomings in the internal control system. In addition, the report should also give an overview of the well-established financial and administrative processes within the organization.

The report should indicate that auditors conducted their work in accordance with generally accepted auditing standards and with due regard for the audit protocol. These standards require that they plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes an assessment of the accounting principles used and significant estimates made by management, as well as an evaluation of the overall financial statement presentation and of the risks of material differences as a result of fraud. They are required to indicate whether their audit provides a reasonable basis for their opinion; and whether the financial statement gives a correct and complete view of all receipts and expenditure.

The auditor will make separate mention, in the report of findings, of any material deviation from the requirements included in this Terms of Reference. This includes information which the auditor can reasonably suspect to be relevant to the grant provider in finalizing the grant award.

In case of an adverse audit opinion, the auditor should indicate:

  • The influence on the transactions included in the financial statement;
  • The contribution conditions that have not been met; and/or
  • Any unlawful acts identified.

In a report of findings:

The auditor should request a letter of representation from the grant recipient’s management stating that, to the best of their knowledge, the financial statement encompasses all transactions and receipts, is accurate and complete in every respect and that all grant conditions, including those beyond the scope of the audit, have been met. In the letter of representation, management should specifically confirm that they have complied with article 20 of the contribution agreement about its termination. The auditor must report any information that came to his notice during the audit which may reasonably be suspected to be relevant to the contribution provider in finalizing the contribution.

4.    Location of services

The required services of external audit will be conducted at CBS Head Office in Kigali, and field financial documents (located at PFR and EAR-D/Byumba offices) will be brought at the CBS office.

5.    Technical requirements

The qualified auditing firm on CBS audit engagement should exhibit the followings:

  • Demonstration of experience and expertise of external auditing with non-governmental organizations;
  • Providing an activity plan (project plan) of actions to achieve the objectives of the external audit function, specifying budgeted hours, timelines and sequence for its audit procedure and level of staff to be assigned;
  • Incorporating CV’s of the proposed professional staff of the core management team proposed for the engagement and the authorized representative submitting the proposal. Key information should include the position of the individual in the auditing firm, the role that the individual will have in the engagement, number of years’ and type of experience, all tertiary and professional qualifications, professional memberships with international recognized association for accounting and auditing services (compulsory with institution recognized by IFAC), and degree of responsibility held in various assignments during the last three (3) years. CVs should be maximum two (2) pages per staff member;
  • Proof of experience in performing external audit services: list current and past clients where the bidder carried out external audit along with the name of the organization, contact person, designation, contact number, nature of the external audit service and length of the appointment for at least three (3) non-governmental organizations where you have rendered external audits services in the last three (3) years;
  • An auditing firm registered in Rwanda;
  • Be registered at the institute of certified public accountants of Rwanda;
  • Proof of no tax liabilities;
  • Proposals must remain valid from the submission date. CBS will make its best effort to complete negotiations within this period. If the proposal validity period of 21 days is extended, bidders have the right to withdraw their proposals.

6. Evaluation Criteria

Proposals will be evaluated in two parts: technical and financial analysis. Only winning technical proposals with at least 75% shall be financially analyzed.

  • Proposals should make clear about the relevant skills, experience and capacity of the participant, in respect of this particular TOR.
  • Proposals must contain the details of the proposed approach to be adopted in order to deliver the service in accordance with the TOR.
  • Proposals should clearly indicate whether or not bid participants have the capacity to meet the requirements of the TOR.
  • To be registered as audit firm in Rwanda.
  • The proposal should indicate the amount required to do the audit (tax inclusive and tax exclusive).

Functionality evaluation criteria

N0

Description

Weight

1

Experience, Skills and Ability of Service Provider

40

  • Past experience in similar work of this nature.

  • Team member experience (accompanied by brief CV’s).

  • Bidders ‘track record.

  • Ability of the bidder to fulfill the CBS’s requirements.

References

Did the bidder submit at least three relevant and contactable clients that were serviced in the past three years (preferable the recent ones)?

2

Technical Approach and Execution Plan

40

  • The methodology to be used by the auditor

  • Areas that will receive primary emphasis and the audit approach in
    such area

  • Comprehensive work plan to ensure an adequate coverage

  • Understanding the audit area

  • Communication strategies

Proposals must contain the details of the proposed approach to be adopted in order to deliver the service in accordance with the TOR.

3

Project management

20

  • Bidder must allocate a project manager for this project.

  • The proposal should contain a work plan, showing tasks and
    timelines.

  • Did the bidder give, submit clear proposed project timelines for this
    project.

  • Project management and turn around management (Ability to

Deliver on Time).

TOTAL

100

7.    Payment Details

Payment will be in accordance with a detailed budget breakdown as submitted through the proposal, and invoices will be expected from the consultant prior to payment.

8.    Submissions

Applications/submission should be addressed to CBS secretariat not later than 24th April 2018 at 12:00 A.M., by submitting one copy of bid documents including technical and financial proposal showing all details as required in technical specifications. The financial proposal should indicate the audit total cost tax inclusive and exclusive. Sealed applications should be sent in hard copy to CBS head office.

The hard copy should be sent to the secretariat of Community Based Sociotherapy,

UMOJA House, 1st floor

Kiyovu, Kigali, Rwanda

E-mail: info@sociotherapy.org
Website: www.sociotherapy.org

Done at Kigali on 3rd April 2018
By Community Based Sociotherapy