A REQUEST FOR A PROPOSAL FOR THE PROVISION OF AN INTERNAL AUDIT SERVICE FOR THE BIBLE SOCIETY OF KENYA

Transcription

1 A REQUEST FOR A PROPOSAL FOR THE PROVISION OF AN INTERNAL AUDIT SERVICE FOR THE BIBLE SOCIETY OF KENYA 1. PURPOSE Bible Society of Kenya (BSK) is a non-sectarian, non-denominational organization registered under the Societies Act in Kenya. BSK is owned by members and serves all Christian Churches, Church Organizations and individuals. The purpose of this bid request is to appoint a suitable independent Internal Audit Service Provider that can provide and maintain an appropriate Internal Audit Service to the Bible Society of Kenya (BSK) and to the Risk and Audit Committee of the Board of the BSK. 2. ROLE AND OBJECTIVES OF THE INTERNAL AUDIT SERVICE The Internal Audit Service is an independent appraisal function within the BSK, which provides management with a systematic review and evaluation of the operations for determining the economy, efficiency and effectiveness of policies, procedures, practices and the overall system of internal control within the society. The objective of the Internal Audit Service is to add value by assisting the Risk and Audit Committee of the Board and the Management in effectively discharging their responsibilities, including the promotion of effective internal controls at reasonable cost. 3. ORGANISATIONAL STATUS OF THE INTERNAL AUDIT SERVICE The Internal Audit Service Provider will report to the General Secretary/Chief Executive Officer (CEO) and the Risk and Audit Committee of the BSK and will help to promote and ensure the following: a) The independence of the Internal Audit Service function b) Broad audit coverage within the BSK c) Adequate consideration of audit reports d) The implementation of audit recommendations 4. SCOPE OF THE INTERNAL AUDIT WORK The scope of Internal Audit work entails evaluating the adequacy and effectiveness of the society s systems of internal control. This includes: 4.1. Reviewing the reliability and integrity of financial and operational information and the means used to identify, measure, classify and report such information; 1 P a g e

2 4.2. Reviewing the systems established by management to ensure compliance with applicable policies, plans, procedures and Acts, and to determine whether the organization is in compliance; 4.3. Reviewing the means of safeguarding assets and verifying the existence thereof; 4.4. Appraising the economy as well as the efficiency with which resources are employed, and identifying opportunities to improve operating performance; 4.5. Reviewing operations or programmes to ascertain whether results are consistent with established objectives and goals, and whether the operations or programmes are being carried out as planned, i.e. performance audits; 4.6. Reviewing the planning, design, development, implementation and operation of all major computer-based systems of BSK to determine whether: Adequate controls are incorporated in systems; Thorough systems testing is performed at appropriate intervals; System documentation is complete and accurate; and that User needs are met Reporting to the Risk and Audit Committee in writing on the scope of reviews of corporate governance on any significant findings and meeting the deadlines as agreed to with the BSK Risk and Audit Committee Performing the following assignments Carry out an annual risk assessment and update the risk plan of the society Review and report on the effectiveness of the BSK Fraud Prevention Plan Ensure that the External Auditor audit findings and recommendations are implemented and followed up Prepare and present audit reports to the Risk and Audit Committee and the General Secretary according to the deadlines agreed to with the BSK Risk and Audit Committee Carry the society s quarterly stock take Any other assignments the Risk and Audit Committee or the general Secretary may from time to time authorize. 2 P a g e

3 5. CONDUCTING OF AUDIT ASSIGNMENTS 5.1. Compliance with standards Assignments are to be performed in accordance with the Service Provider s Internal Audit procedures in compliance with the standards set by the Institute of Internal Auditors. However, each assignment should consist of the following tasks: Audit preparation (which should include the scoping document audit plan) Preliminary survey Review of internal controls Audit testing Development of findings and recommendations Obtaining management responses; and Reporting 5.2. Timing of assignments The Annual Internal Audit Coverage Plan shall be presented and agreed to by the Risk and Audit Committee at a meeting before the commencement of any work. Furthermore, the final responsibility for approving the scope and extent of the work to be carried out resides with the Risk and Audit Committee Quality assurance reviews of the work The Internal Audit Service Provider shall ensure that all work conforms to the Standards for the Professional Practice of Internal Auditing (as per the Institute of Internal Auditors) Independence and objectivity of the auditing staff members In carrying out the work, the Internal Audit Service Provider must ensure that its staff maintain their objectivity by remaining independent of the activities they audit Monitoring progress of assignments The Internal Audit Service Provider shall present a report on the progress of the internal audit work being carried out at the scheduled Risk and Audit Committee meetings, and to the General Secretary as and when required to do so Report on audit results The report(s) on findings and recommendations should be sent to the responsible auditee for their consideration and comments. Within ten (10) working days of sending the report(s), the Internal Audit Service Provider shall meet with the auditee to discuss the findings and obtain written responses to 3 P a g e

4 4 P a g e the recommendations together with implementation dates. These shall then be incorporated into the final report which must be issued to the General Secretary. Copies of these reports must also be tabled at the Risk and Audit Committee meetings for discussion. The structure of the report is to be as follows: a) Introduction b) Audit objective and scope c) Background d) Executive summary e) Activity, findings, recommendations and management response (including corrective action and implementation dates). f) Practical method of proceeding with recommendations. g) Conclusion 6. CONTENT OF THE BID PROPOSAL The proposal should indicate: 6.1. All relevant perceived strengths and weaknesses of the firm bidding for the service, e.g. similar or previous experience, in-house skills available, with supporting information which will assist the BSK to assess its capabilities, capacity, competitive advantages, commitment to transformation etc. Clearly indicate the profile and CV of the lead auditor A summary of the bidder s mission and vision statements, values and long-term strategic objectives; 6.3. A proposed plan of action to achieve the objectives of the Internal Audit Service function. Such plan should cover short and medium term steps to manage the Internal Audit Service function; 6.4. A list of references of previous and current Internal Audit Service appointments; 6.5. An organogram or list of partners, managers, specialists and assistants together with the curricula vitae of the staff members who will be available for the duration of the contract and performing the duties. Any possible staff changes during the course of the two year contract must be done in consultation with the BSK; 6.6. In so far as possible, a comprehensive budget, indicating the proposed service activities, with charge-out rates and budgeted hours per

5 activity, detailing all assumptions made in arriving at a proposed budget, including all costs factors such as travelling. 7. APPOINTMENT, COMMENCEMENT AND DURATION The successful bidder will be appointed for a period of two (2) years, commencing from the effective date of appointment. This period is subject to annual review of performance. 8. SUBMISSION OF TENDER Tender can be submitted to BSK head office (Bible House Langata Road Madaraka Estate) during the normal office hours: 08:00 17:00 or tenders can be posted to the following address: Head of Finance Bible Society of Kenya P.O. Box Nairobi Kenya NB: All documents must be compiled and clearly labelled as required. Closing date for submissions is: 20 th November 2018 at 11:00. Note: ed submissions will not be accepted. Late submissions will be disqualified. 5 P a g e