External Audit Services – Somalia

 

CENTRAL BANK OF SOMALIA

 

REQUEST FOR PROPOSAL OF EXTERNAL AUDIT SERVICES

 

Objective of the Audit service.

The objective of the audit is to express an opinion, as to whether the financial statements of CBS present fairly, in all material respects, the financial position, results of operations and changes in cash flow in accordance with generally accepted accounting principles.

During the engagement, the Auditor should be watchful of and report:

• Any significant or unusual transactions entered into that Management and/or the Board of Directors should be made aware of;
• Any deficiencies in internal controls that are of sufficient importance to merit the attention of Management and/or the Board of Directors;
• Any disagreements with Management about matters which are significant to the organization’s financial statements;
• Any lack of compliance with the Financial Management and Controls Policy;
• Any lack of compliance with financial or other relevant legislation;

 

In this RFP the appointment will be for the next three-year period: 2021, 2022, and 2023 in accordance with Section 48 (3) of the central bank of Somalia (CBS) Act, 2012. Any re-appointment will be subject to satisfactory performance by the appointed firm as well as certain criteria and specific circumstances including conforming to the terms of the appointment. Such appointments are made at the discretion of Board of directors in accordance with section 48(3) of the (CBS) Act 2012.and will be extended annually for up to three years and the expected deliverables will be the 30^th of April each year.

 

Under the appointment, the appointed auditor will perform his/her duties in accordance with CBS Act. The assignment will require the firm to perform the audit in accordance with the International Standards on Auditing (ISA) which promulgated by the International Auditing and Assurance Standards Board (“IAASB”) with a view to obtaining reasonable assurance that the financial statements are a fair representation of the financial affairs of the bank and that compliance with laws and regulations exists.

It is essential that the audit is handled in strict confidentiality. The appointed firm and or persons involved in the audit should refrain from divulging any information regarding the audit to third parties. Any breach in this regard will be treated in terms of the accepted professional codes and directives of the Bank.

 

Roles and responsibilities

The Selected service Provider shall be expected to undertake the following specific activities: –

• Perform a financial statements audit in conformity with International Auditing Standards;
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error;
• Design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for an audit opinion;
• Provide a report on whether the financial statements of the Bank are fairly presented in accordance with International Financial Reporting Standards;
• Understand the Bank’s internal controls and design & plan audit procedures to assess the operating effectiveness of internal controls relevant to the audit;
• Report identified control deficiencies to the Audit Committee and Management with clear recommendations on how to resolve the identified matters.
• Highlight areas where controls were found to be inadequate and ineffective in the audit Report;
• Assess the adequacy and effectiveness of the Bank’s IT General Controls in IT infrastructure including IT Application controls in the financial system;
• Evaluate the appropriateness of the Bank’s accounting policies, the reasonableness of accounting estimates and related disclosures made by Management;
• Evaluate the presentation, disclosures, structure and content of the financial statements;
• Assess whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation;
• Assess the appropriateness of the use of the going concern basis of accounting disclosing any material uncertainty that may cast significant doubt on the Bank’s ability to continue as a going concern;
• Assess and report on the Bank’s adherence with key compliance and regulatory requirements.

Expected Deliverables

The selected service provider will adhere to all guidelines, timelines and requests specified in this RFP. Deliverables include but are not limited to:

• Prepare an auditor’s report and management letters in a format consistent with generally accepted auditing standards.
• Highlight significant risks of material misstatements in the Financial Statements and fraud considerations.
• Discuss the auditor’s report and management letters with the Board Management and the Audit before their distribution.
• Meet audit or reporting requirement dates as set out;
• Provide a management letter that identifies areas of concern or weaknesses found, recommendations for improvement, and management’s response on any concerns identified.
• Complete scope of work;
• Plan audit approach including assessment of IT General Controls in IT infrastructure and IT Application controls in the financial systems;
• Conduct assessment of compliance with key regulatory requirements;
• Submit management Report;
• Audited Financial Statements within statutory deadline;

 

Proposal Requirements

1. Declaration of No Conflict of Interest

The Vendor must declare any real, potential or apparent conflict of interest related to working on this service in their submission.

 

1. RFP Submissions

Submit an electronic copy of your proposal through email and the proposal must include and address the following.

1. a) An Executive Summary

The Vendor shall provide an executive summary with its proposal. The executive summary shall briefly summarize the key aspects of the proposal and the primary contact person for the prospective Vendor.

1. b) Separate Submission of Technical and Cost Information

The Vendor must submit their proposal in two separate and distinct PDF electronic documents. One electronic document, to be marked “Technical”, and the second electronic document, to be marked “Financial”.

 

Technical Proposal:

The Technical proposal must include the following:

• Introduce the Audit firm and audit team, including the capability of the firm and team.
• Provide a statement declaring the Vendor has no conflict of interest.
• Provide a description of the Vendor’s history, experience, and recent relevant audits, ideally noting experience in not-for-profit, agencies and/or administrative authorities.
• Demonstrate understanding of the scope and complexity of the required work.
• Identify the person(s) who would be involved in the audit, their proposed role on the audit, and their experience and qualifications to fulfill that role.
• Describe any professional and technical services that will be called upon to assist in the audit.
• Indicate the Vendor’s ability to meet the timelines as set out herein.
• Provide a detailed description of the Vendor’s proposed audit strategy, its processes, and deliverables.
• Provide a proposed timeline for each component of the audit services to be provided.
• Outline the methodology and approaches that would be used in carrying out the audit.
• Include a minimum of two (2) client references (names, phone numbers and email addresses) who may be contacted to confirm the satisfactory delivery of service by key team member(s) on previous assignments.

Cost/Financial Proposal:

The financial proposal must include all Vendor costs associated with meeting all deliverables and requirements. Based on scope of work contained within the submitted proposal, the successful Vendor(s) will be expected to submit a detailed breakdown of all fees relative to the specific project components as well as related expenses for 2021. A tally of all costs will be provided as a total lump sum fee for 2021 and for years 2022-2023, if reappointed. Separate lump sum prices will be required for each of the two years.

 

Deadlines

The financial year for the Bank ends on 31^st December. The below deadlines must be taken into account during the planning and performance of the audit.

• The Annual Audit Plan must be presented to the Audit Committee by 2^nd
• The Financial statements must be complete for submission to the Board by 30^th

 

All applications MUST be submitted on or before the closing date below to be considered for the assignment. Interested consultants both National and international shall submit their applications through the email address cbs-tender@centralbank.gov.so on or before 10^th of January 2021.