INSTITUTIONAL AUDIT

Call for Expression of Interest (EoI)

Job description

WADAJIR Rural Development Organization – WARDO

Terms of Reference (ToR): INSTITUTIONAL AUDIT

January 2024 

WADAJIR Rural Development Organization (WARDO a civil society organization established in 2005 by group of Somali humanitarian and development workers who were dedicated and committed to social developments through education and youth development, agriculture and livelihoods, protection, emergency response and water and sanitation programs.

WADAJIR Rural Development Organization (WARDO) is a registered and operational Non-Governmental Organization in South and Central Somalia, WARDO was registered in 2005 by the Federal Government of Somalia. The organization has its main office in Mogadishu and Baidoa, with regional offices in the other 4 FMS of South and Central Somalia (Jubaland, Galmudug, South West, and Hir-Shabelle).

Vision

WARDO envisages all Somali people live in peace, justice, equality, and prosperity, uniting all towards a more fulfilling and developed future.

Mission

WARDO contributes access to quality education and youth development interventions; sound agricultural practices and livelihoods options; protected human rights and environment; safe and sufficient water and effective sanitation practices, as well as timely emergency response programs.

Objectives

WARDO’s main objectives include.

1. To actively and efficiently contribute to the eradication of poverty by dealing with the root causes and help the vulnerable persons in the communities targeting the youths to acquire skills and know how to find means and ways of alleviating poverty.
2. Focusing on humanitarian and development work and the formation of a strong civil society denouncing social divisions and to promote good governance for peaceful co-existence between communities.
3. Responding to emergencies and development by responding to needs in Somalia and supporting communities in situations of crisis through appropriate assistance.
4. Promoting democratic principles and advocating for the promotion of human and civil rights.

The main projects and programmes have focused on the following thematic areas to improve the lives of the most at-risk populations in Somalia.

1. Education and Youth Development
2. Shelter Program
3. Water and Sanitation
4. Protection
5. Agriculture and Livelihoods
6. Emergency Response
7. Health and Nutrition

Objective of The Audit:

Every year, the WADAJIR Rural Development Organization, or WARDO, must have its financial statements audited. The fiscal year of the organization begins on January 1 and ends on December 31. The audit’s goal is to examine the company’s financial records and provide an audit opinion regarding whether or not they accurately depict the company’s operations. All of WARDO’s financial transactions during a specific fiscal year will be covered by the audit. According to estimates, WARDO’s current yearly portfolio is worth about 480,000.01 USD, however it varies depending on donor money availability and national circumstances. The effectiveness of the accounting system, internal financial controls, financial procedures, and, generally, the organization’s management and administration will all be observed by the external auditor.

Audit Scope:

The auditor is expected to:

• Conduct the institutional audit in accordance with International Standards of Auditing.
• Review donor-specific Fund Accountability Statements (FAS) and review that fund received, and expenditures incurred have been applied in accordance with applicable regulations, laid down financial regulations, prescribed procurement procedures, donor regulations or such other proper orders to the extent that these impacts the annual financial statements.
• Provide an analysis of Net Asset Position, Financial Position and expenditure per program and funding source.
• Verify all funds have been used in accordance with the established rules and regulations of WARDO and only for the purposes for which the funds were planned/budgeted.
• Verify that goods, works, and services financed have been procured in accordance with WARDO and donors’ established rules and procedures.
• Verify supporting documents, records, and books of accounts relating to all activities that have been kept and validate the clear linkages that exist between the books of accounts and the financial statements presented to
• Appropriate supporting documents, records and books of accounts relating to all activities have been kept. Clear linkages should exist between the books of accounts and the financial statements presented.
• The financial statements have been prepared by WARDO’s management in accordance with applicable accounting standards and give a true and fair view of the financial position of the Organization and of its receipts and expenditures for the financial years ending 31 December 2024.
• Express an opinion on the fairness and truthfulness of the financial position, cash position and net current assets, including any key audit matters.
• Evaluate compliance with all relevant laws and regulations.
• Comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions.
• Carry out an in-depth and exhaustive review of the internal control systems to have sufficient knowledge of the procedures underpinning the systems, as contained in the WARDO’s Financial Rules and Regulations, Financial Manual, and the applicable rules of the concerned donors.
• Express an opinion as to the reasonableness of the financial statements in all material respects.
• Include in their reports opinion on compliance with procedures designed to provide reasonable assurance of detecting misstatements due to errors or fraud that are material in the financial statements.
• Conduct entry and exit meetings with the management of WARDO including Head of Programs, Head of Finance and the Executive Director.
• Ensure that proper bookkeeping has been maintained that:

1. Complies with the necessary legal regulations, including the generally accepted accounting principles (GAAPs) and others applicable to classification, accounting and valuation.
2. Information provided leads to an orderly presentation in the accounting records and the annual financial statements, in line with applicable professional standards.

• The annual financial statements were properly derived and are in agreement with the books of account.

In addition to the audit report, the auditors will prepare a Management Letter on the following:

• Give comments and observations on the accounting records, procedures, systems and controls that were examined during the course of the audit.
• Identify specific deficiencies and areas of weakness in systems and controls and make recommendations for improvement.
• Report on the implementation status of recommendations pertaining to previous period audit reports.
• Communicate matters that have come to their attention during the audit which might have a significant impact on the sustainability of the organization.
• Bring to the management’s attention any other matters that the auditors consider pertinent.

Duration of The Audit:

Every three years, WARDO intends to switch up its auditors. Based on performance, the designated auditor may be reappointed for the next two years after auditing the financial statements for the year that concluded on December 31, 2024. With effect from the signing date, the audit process will be finished in 20 days. WARDO will offer all the help required to make this happen. If problems occur that necessitate extending these important dates, they will be reviewed with the auditor and a new date will be agreed upon.

Reporting/Key Deliverables:

On completion of the audit, the Auditor shall provide.

2024. Professional opinion of the final financial statements for FY2024.
2025. Audited Financial Statements separate for the financial year –FY2024.
2026. Management Letter for the financial year –FY2024. The management letter should also include the following.

• Identify specific deficiencies and areas of weakness in systems and internal controls and make recommendations for their improvements.
• The categorization of audit findings by risk severity.
• Implementation status from findings arising from previous audits.

Skills and qualifications

Auditor’s Experience and Qualifications:

1. The Auditor will deploy adequate staff with appropriate professional qualifications and suitable experience with International financial reporting standards, and with experience in auditing the accounts of entities working in Somalia context.

In addition, the audit team will have:

• Appropriate experience with audits of operations financed by the donors. At least one senior member of the fieldwork team either a manager/supervisor should have such experience.
• Demonstrate sufficient knowledge of relevant laws, regulations and rules applicable in Somalia. This includes but not limited to taxation, social security and labour regulations, accounting and reporting, and Fluency in English.

How to apply

To submit their Expression of Interest, firms interested should meet the following basic criteria:

• Be registered with the Institute of Certified Public Accounting and its partners must hold current practicing certificates.
• Must have at least one partner who are in good standing record with ICPAK and be full time practitioners.
• Should have a high-level understanding of the International Financial Reporting Standards (IFRSs) and the International Standards on Auditing (ISAs) and their practical application to financial reporting and auditing.
• Should have been in operation for not less than 8 years.
• Should demonstrate experience in auditing donor funded projects
• Can demonstrate capacity to provide efficient external audit services in adherence to agreed timeframes.
• Can demonstrate capability to advice on the improvement of existing and emerging management controls and governance processes.
• Should be willing and be prepared to the possibility to travel to field offices.

Technical Capacity:

All applicants must provide the following as part of the audit proposal.

1. Confirmation of the firms’ understanding of the standard terms of reference for a statutory audit and its capacity to deliver the tasks stated in the TOR.
2. Firm Structure – The firm’s structure, including staffing numbers, positions, functions and responsibilities.
3. Personnel – CVs of key staff proposed to undertake the assignment (including partners, managers & supervisors/seniors practicing certificates where applicable).
4. Work History and Performance – A list of at least three past & current clients with appropriate referees/references familiar with your work in donor funded projects audits.
5. Statutory Compliance – Show compliance with all the applicable statutory and professional regulations (valid tax compliance certificate and business permit).
6. Fees – Indicative audit fees on the basis of audit scope of work as per the scope of work. Quality assurance by ICPAK will be an added advantage

Documents to be Submitted with the Expression of Interest

• Annex A: Expression of Interest, signed by an authorized representative of the organization
• Annex B: Detailed Organizational Profile, signed by an authorized representative of the organization
• Annex C; Authenticated copies of the organization’s Certificate of Registration and any other papers as shown in the technical section of this script, together with all the other requirements mentioned in this call for expression,

How to apply:

Firms meeting the above criteria are invited to submit their proposals to the following email address info@wardosom.org with subject title: WARDO Financial Audit 2024 on or before COB Monday 25 January 2024.

For any inquiries, kindly email to abdulkadir@wardosom.org, Kindly note that late applications will not be considered.

 

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