TERMS OF REFERENCE ON EXTERNAL AUDIT FOR CSBP FINANCIAL STATEMENTS

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1 TERMS OF REFERENCE ON EXTERNAL AUDIT FOR CSBP FINANCIAL STATEMENTS STARTING FROM THE 1 ST OF SEPTEMBER 2013 TO THE 31 ST OF DECEMBER 2014

2 1. Background The Community-Based Sociotherapy Program (CBSP) is initiated 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. The CBSP is a three year initiative to be implemented in eight different districts (two districts in each of the provinces of Rwanda) and started in January A consortium of three Rwandan NGOs is responsible for the implementation of the program. The program is funded by the Royal Embassy of the Kingdom of the Netherlands. The CBSP has now ended its first year of implementation and is seeking an external audit firm to conduct a comprehensive financial, performance, compliance and risks based audit. 2. Scope of the work 2.1. The successful bidder will be required to perform the following types of external audit: Certification of CBSP financial statements covering the period from the 1 st of September 2013 up till 31 st of December 2014 (obtain reasonable assurance that CBSP financial statements are free from material misstatements). The auditor must establish the completeness and accuracy 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 ToR 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.

3 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 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 organisation 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. An unqualified audit opinion must be worded as follows: We have audited the financial statement of at for the period from to. The financial statement is the responsibility of the management. Our responsibility is to express an opinion on the financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards and with due regard for the audit protocol. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material

4 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. We believe that our audit provides a reasonable basis for our opinion. In our opinion, 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 finalising 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 13 of the contribution agreement, which states that: the contribution recipient shall not offer to third parties or seek or accept from or be promised by third parties, for himself or for any other party, any gift, remuneration, compensation or benefit of any kind whatsoever, which could be interpreted as an illegal or corrupt practice. If, in the course of the audit, the auditor finds evidence of illegal or corrupt practice, he or she must act in accordance with the COS 240 guideline on fraud. The auditor must report any information that came to his notice during the audit which may reasonably be suspected to be relevant to the contribtuion provider in finalising the contribution.

5 4. Location of services The required services of external audit will be conducted at CBSP Head Office in Kigali, and Field coordination Offices located respectively at Muhanga District, Bugesera District, Rubavu District and Gicumbi District. This engagement needs to be done within three weeks of time. 5. Technical requirements The qualified auditing firm on CBSP 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 (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, and RSSB liabilities. Proposals must remain valid from the submission date. CBSP will make its best effort to complete negotiations within this period. If the proposal validity period of 30 days is extended, bidders have the right to withdraw their proposals.

6 6. Evaluation Criteria Proposals will be evaluated in two parts. The technical proposal shall bear 60% of the total marks while the financial proposal shall bear 40% of the total marks. 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. Functionality evaluation criteria N0 Description Weight 1 Experience, Skills and Ability of Service Provider 30 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 CBSP's requirements. 2 Technical Approach and Execution Plan 20 Proposals must contain the details of the proposed approach to be adopted in order to deliver the service in accordance with the ToR. 3 Audit plan Bidder must allocate a chief auditor for this audit engagement. The proposal should contain a work plan, showing tasks and timelines. Did the bidder give, submit clear proposed timelines for this audit engagement References Did the bidder submit at least three relevant and contactable clients that were serviced in the past 36 10

7 months. 5 Capacity 25 Proposals should clearly indicate whether or not bid participants have the capacity to meet the requirements of the ToR. TOTAL 100 Bidders are required to score a minimum of 75% points on functionality to qualify to be evaluated in the next level (price). Bidders who do not score the minimum of 75% points on functionality will be disqualified and not be evaluated on price. 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 CBSP management not later than 03/02/2015 at 10:00 A.M., by submitting a bid documents showing all details as required in technical specifications including the audit bill to be charged on CBSP. Done at Kigali on 8/1/2014 CBSP Management UMOJA House, 1 st floor Kiyovu, Kigali, Rwanda info@sociotherapy.org Website: Phone: +250 (0) /(0)

REQUEST FOR PROPOSAL. Internal Audit Services RFP NO: RFP/SASSETA/

REQUEST FOR PROPOSAL. Internal Audit Services RFP NO: RFP/SASSETA/ REQUEST FOR PROPOSAL Internal Audit Services RFP NO: RFP/SASSETA/17181002 1. Request SAFETY AND SECURITY SECTOR EDUCATION AND TRAINING AUTHORITY ( SASSETA ) is seeking to appoint suitable and qualified