REQUIREMENTS FOR INTERNAL AUDIT SERVICES

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Imogene Richards
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REQUIREMENTS FOR INTERNAL AUDIT SERVICES Background: The Right to Care Group provides a variety of health services as well as health strengthening interventions in HIV/TB, medical male circumcision,

1 REQUIREMENTS FOR INTERNAL AUDIT SERVICES Background: The Right to Care Group provides a variety of health services as well as health strengthening interventions in HIV/TB, medical male circumcision, cervical cancer screening, woman and child health, prevention activities, paediatric HIV, pharmacy supply chain management, social support structures and other health system strengthening. The group also provides management and capacity building technical assistance to various levels of the public health system and provides grants and contract management for other non-profit organisations. These activities are funded through support from donor organisations, including the United States Agency for International Development (USAID) (Pretoria and Washington DC), the Global Fund (HIV, AIDS and TB), the Mpumalanga Department of Health, Department of Correctional Services (DCS) Funding from Centre for Disease Control (CDC), Western Cape Department of Health (WDOH) and National Department of Health (NDOH) and other private funded initiatives, over the years. In the first quarter of the last financial year, Right to Care NPC (RTC) was awarded a new international grant from USAID, Washington, which brought about the establishment of a new division - USAID EQUIP. Under this award, RTC seized the opportunity to expand its footprint globally, in 18 countries, with the support of four consortium partners. Of the 18 countries, RTC is directly managing operations in six countries, the others being managed by the consortium partners under the leadership of RTC. Most of the year was focussed on staffing the RTC / EQUIP division, and setting up scoping visits to obtain buy-in into the EQUIP programme from Country USAID Missions and Ministries of Health. During the period under review, we have established two duly registered Companies, namely Right to Care Malawi (29 September 2016) and Right to Care Zambia (22 April 2016) with full operational staff complements in these respective country offices. As this past year was mainly focussed on setting -up infrastructure for country operations, limited spend was reported in the respective countries. This achievement serves, once again as evidence of our reputation, credibility and good standing we have with our donors and stakeholders both nationally and internationally. Right to Care is currently also going through the close out of its Voluntary Male Medical Circumcision USAID Contract in FY 2017, and with USAID Health System Strengthening in FY 2018, with a renewal application the same year.

2 Right e-pharmacy (Pty) Ltd has was incorporated in 2016 supplying automated pharmaceutical solutions. Steve Biko and Helen Joseph sites are live and will start supplying clients with chronic medication in the next financial year. USAID EQUIP Grant is funded through USAID is expanding into Africa and beyond and will continue to grow in the 2017 financial year. Right to Care Property (Pty) Ltd holds the property for the Right to Care group. The company derives income from renting out its premises owned and by providing both shaded parking and open space parking to users of the property. In the prior year the group registered Right to Care Zambia Limited on 22 April 2016 with limited activity by 30 September Right to Care Malawi Limited was registered on 29 September 2016 with no activity to 30 September In the current year the group registered Right to Care Lesotho. 1. SPECIFIC TASKS TO BE PERFORMED Key performance areas will include, inter alia: a) Reviewing the reliability and integrity of financial and operating information and the means used to identify, measure, classify and report such information; b) Reviewing the systems established by management to ensure compliance with those policies, plans and procedures, laws and regulations that could have a significant impact on operations and determine whether the organisation is in compliance; c) Reviewing the means of safeguarding assets and verifying the existence of these assets; d) Appraising the economy and efficiency with which resources are employed and identifying opportunities to improve operating performance; e) 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; f) Reviewing the planning, design and development, implementation and operation of major computer based systems to determine whether: Adequate controls are incorporated in the system A thorough system testing is performed at appropriate stages System documentation is complete and accurate The needs of the users are met; g) Reporting to the Audit and Risk Committee in writing as required on the scope of the reviews of corporate governance and any significant findings; h) Reviewing the risk management approach and systems of the Organisation and the means used to identify, monitor and report such risks; i) Update the Organisation and the Audit & Risk Committee on developments in the industry and profession j) Review / Assess Performance Auditing; k) Perform / Complete Computer reviews; Cross border issues POPI issues Intrusion risks Change of technology/shift of technology risks

3 Development risk l) Review Risk Management. This would encompass a strategic and operational review of risks, identification of key risks and ensuring that the risk management framework is responsive to those risks; m) Perform / Review compliance and limited regularity audit; n) Meetings with the Organisation management; Audit & Risk committee, etc; o) Conducting ad hoc reviews, investigations and assignments as requested by the Chairperson p) Reviewing compliance with grant award rules The objective of internal auditing is to add value by assisting the management of the Organisation in effectively discharging their responsibilities, including the promotion of effective internal controls at appropriate costs. Internal auditing must at all times promote and ensure the independence and objectivity of internal audits, broad audit coverage, consideration of audit reports and the implementation of audit recommendations. The internal auditing key areas therefore include: - a) Preparing a three-year strategic rolling internal audit plan based on the Organisation s risk assessment; b) Assessing and reviewing the Organisation s risk analysis and evaluating the controls to manage the risks; c) Developing and documenting a risk assessment methodology; d) Performing internal audit assignments; e) Conducting performance audits; f) Liaising with the external auditors to assist them in performing the external audit; g) The performance of such other assignments as the Audit and Risk Committee may from time to time authorize; h) Transferring necessary risk management skills to the Organisation s delegated officials; i) Making recommendations to management FINANCIAL ARRANGEMENTS Bidders are solely responsible for their own costs in preparing the Tender. CONFIDENTIALITY Tenders submitted will not be revealed to any other bidders. The procurement Officer reserves the right to seek clarification or verification of any information in the tenders. All information pertaining to the Procurement Officer obtained by the bidder as a result of participation in this bid is confidential and must not be disclosed without written authorisation from the chief Operating Officer and the Chairman of the Bid committee. The successful bidder will be expected to sign a non- disclosure agreement as part of the service level agreement FORMAT OF PROPOSAL 3. PROPOSAL REQUIREMENTS The Organisation requires the proposal to be in the following format:

4 3.1. Executive summary The respondent must provide an executive summary of its response. The executive summary must not exceed 5 pages in length, and no appendices or specific references to additional information will be accepted. The respondent should summarize its offering, its approach and the value provided by the respondent. The respondent must not include any financial information in the executive summary Audit approach Detailed approach Information containing the specific steps, resources and timing associated with the approach should be detailed in this section. Information regarding audit of foreign based subsidiaries Key outputs/outcomes (Deliverables) This section should include the list of deliverables that will be developed. A description of each deliverable listed should be included in the proposal Proposed project plan The respondent must provide a project plan, which shall indicate the specific tasks, timeframes and resources (including the Organisation s) associated with each project activity. The respondent must provide an organization structure of the project team, including responsibilities of all team members involved Risk The respondent must provide list of potential strategic risk that could affect the organisation Relevant Track record to service RTC Quality The proposal should provide details of the approach on how to ensure and measure a quality project delivery. It should provide details of any industry recognized quality standard to which it is, or will become, compliant (including a timeframe for compliance, if not already achieved), as well as awards received over the last two years References The proposal should include at least three (3) references from clients who received similar services over the immediate past 12 months. This should preferably include clients having similar scope of services, industry, and scale as the Organisation. It should include a brief description of the services provided for each client. It must be ensured that the Organisation is able to have appropriate access to the clients listed. The referees must be contactable and the contact details provided must include: Contact Person Organisation/ Company name Phone Number address Cell number (if possible) Project participants experience Tenderers should submit details describing the relevant experience of their proposed project participants. The information should include a description of the education, knowledge, and relevant experience as well as certifications or other professional credentials that clearly shows the individual is qualified to perform the required work. Tenderers should also submit résumés of their proposed project participants.

5 Confirmation that the staff members who have relevant experience will be on the project and/or will be replaced by same or better resources. (minimum time commitments to ensure continuity) The documentation should thoroughly describe how the proposed program manager has supplied expertise for similar contracts and projects. Tenderers may include any supporting documentation they wish that they feel will support their descriptive narrative. In consideration that a majority of RtC funding is from USAID, tenderers must have demonstrated experience and competence in conducting audits according to the Government Auditing Standards (GAS) as developed and published by the United States Government Accountability Office (GAO). The intent is to ensure GAGAS audits are conducted by competent, properly qualified professionals and with integrity, objectivity and independence Price Tenderers should provide a pricing schedule which clearly sets out the cost of providing the required services, together with any other charges. Other charges should be explained. The terms and fees proposed for proposed services should include a proposed escalation in fees over a multi-year period of 3 years. The fees should be based on an estimated hours per annum. The pricing schedule should clearly indicate the hours, and the hourly rate per the respondent s staff. The Organisation s Audit and Risk Committee normally meets four (4) times per annum, with 2 additional special meetings. A tariff for ad hoc reviews, investigations and assignments as requested by the Chairperson must be specified separately, including rate per hour per respondent s staff. All assumptions made in drawing the proposal, including all cost factors such as traveling, must be detailed. The bidder must ensure that prices quoted exclude value added tax (VAT). Prices quoted must be valid for at least 60 (sixty) days from the closing of the tender. Any proposal that does not include information required in this paragraph will be disqualified. 4. TERMS OF CONTRACT AND SERVICE LEVEL AGREEMENT Before the bid will be awarded, the successful bidder will be required to enter into a service level agreement (SLA) with the Organisation. The SLA will form the contractual basis for the delivery of the service as well as how performance will be measured and will include the General Conditions of Contract. The contract resulting from this request for proposals shall be for a three (3) year period. Contract extensions are at the sole discretion of the Organisation. 5. EVALUATION The proposals will first be evaluated for functionality. The functionality component consists of two areas that proposals will be evaluated on namely a technical component and a track record and experience component. A minimum score of 90% should be obtained on functionality before a proposal will be considered for further evaluation. Details of the functionality scoring and how the point will be allocated are as follows: CRITERIA WEIGHT TECHNICAL (50) Services being offered and approach 20 Project Plan 15

6 Deliverables and Turnaround times 15 TRACK RECORD AND EXPERIENCE (50) Credentials and experience of team members 20 Resources available to meet the project deliverables 20 Quality of references 10 Price 60 B-BBEE Status Level 40 Total Score 200 B-BBEE status level points will be awarded in accordance with the table below: B-BBEE Status Level of Contributor WEIGHT Non-Compliant Contributor 0

TERMS OF REFERENCE FOR THE APPOINTMENT OF A SERVICE PROVIDER TO RENDER AN INTERNAL AUDIT SERVICE

TERMS OF REFERENCE FOR THE APPOINTMENT OF A SERVICE PROVIDER TO RENDER AN INTERNAL AUDIT SERVICE SUMMARY OF THE BID: 1. Assignment: The National Heritage Council (NHC) requires suitably qualified and experienced