Request for Proposal in Respect to Providing External Audit Services – Mogadishu, Somalia

To whom it may concern:

Mogadishu 20 June 2021

Request for proposal in Respect to Providing External Audit Services

Dear Sir / Madam,

SOS Children’s villages Somalia is seeking to pre-qualify a qualified audit firm to conduct external audits for the period 01 January to 31 December 2021 with renewable contracts based on performance.

Interested Certified Public Accountant firms should submit a Technical and Financial proposal in relation to below mentioned terms of reference indicating their interest and providing the following information and documents:-

1. Background information on the audit firm.
2. Methodology to be used.
3. The team with copies of the latest firm (Partners) practicing certificate issued by the Institute of Certified Public Accountants of Kenya (ICPAK)/other relevant bodies and Curriculum Vitae of Key staff.
4. Fees and costs.(quoting currency should be USD)

The proposal should be submitted by email or hard copy to the below address by C.O.B 10^th July 2021:

The Procurement committee

SOS Children’s Villages Somalia

Email: procurement@sossomalia.org.

Or

Wadajir District, Off Airport Road

Bulo Hubey P.O Box 599

Mogadishu, Somalia

TEL: +252615578955

Background

SOS Children’s Villages Somalia is a non-governmental, non-political and non-profit organization and an active member of the international umbrella organization of SOS Children’s Villages International, which is active in 134 countries. Since the year 1983, SOS Children’s Villages Somalia has been operational in the field of social protection of children and young people without parental care as well as families at risk.

1. Mandate and Relevance

In accordance with SOS Children’s Villages International Statutes and in compliance with legal requirements, all member associations are obliged to perform an annual external financial audit conducted by an independent and recognized audit company.

The ‘Good Management and Accountability Quality Standards’ have set the quality standards in the area of

• Management and transparency
• Integrity of the organization and
• Protection of assets.

The audit provides a professional and independent external view of the financial system, the accuracy of financial results and compliance with organizational rules and applicable accounting standards and laws. This is essential for maintaining the confidence and trust of all internal and external stakeholders.

Pursuant to paragraph 4.5.2 & 4.6.6.2 of the ‘Statutes’ of SOS Children’s Village International and in continuation of paragraph 1.5 of ‘Good Management and Accountability Quality Standards’, every member association is obliged to present audited financial statements on yearly basis (January 01 – December 31) which give a ‘true and fair’ view of the financial state of the organization. The audited accounts are essential for the organization to prove to the donors that all the funds have been used for the intended purpose. In addition, external audit is a legal requirement as per local law, and any non-compliance may put the existence of the association at risk.

The Auditors must report improper use of funds, any type of financial irregularity and non-compliance of local laws. SOS Children’s Villages International has made a commitment to the promoting and supporting associations that the audited financial statements along with audit reports, certifying the proper use of funds, must be made available by stipulated date.

2. Process and Scope
3. Auditor will check the accounting records and Financial Statements prepared in compliance with SOS Accounting Standard and National Laws.
4. Audit will cover all units / programmes.
5. Audit will cover all the following items in its scope:

• All types of income of all the units / programmes. This includes:

– PSA Subsidies

– International Sponsorships

– Local fund raising income

– Operational income (school fees)

– Government Subsidy and

– Any other income (bank interest, donation in kind etc.)

It is emphasized that subsidy received from PSAs must be booked in prescribed accounting codes and properly shown in Financial Statements.

• All kinds of expenditure including the running cost and investment for all the programme units.
• All the assets and liabilities.
• The statistical data of beneficiaries and employees and spot checking of this data on test basis.
• All the relevant documents to get convinced about the correctness and completeness of accounting records. Auditors may also seek third party evidence (confirmation from suppliers) as and where felt appropriate. It is strongly recommended that bank balance confirmation is obtained by auditors from the bank.
• Physically verifying the assets to make an informed opinion.
• Evaluating the internal control system. Any shortcomings must be reported.

1. Figures of the previous year will be mentioned in the financial statements for comparison purpose and must match with previous year’s audited figures.
2. Auditor will maintain the audit working papers and they shall remain in the custody of Audit Company, for the period as defined by the local laws.
3. A draft of Audit Report, Management letter and the findings to be discussed in a proper debriefing session.
4. The total projected annual expenditure is approximately $ 9,000,819.99
5. All documentation will be accessed from Mogadishu while the field visits will include both or one of Benadir and Baidoa locations of Somalia.
6. Access to Data

SOS Children’s villages Somalia is responsible for providing access to the accounting software, documents, any other information / explanation to help auditors in completing their work. The documents and information basically includes the:

• Cash and bank vouchers
• Bills and invoices
• Contracts and minutes of meetings
• Copies of any internal regulation which may have an impact on audit

In addition to this, external auditor has the right to seek information from any employee of the organization, and visit any location to verify expenditure, income and statistics. Auditor should visit the programmes which are under audit.

4. Final Audit Package

The auditor should submit the following documents, properly signed and stamped, on the completion of the audit process as Audit Package:

• Auditors’ independent opinion including reasons for negative or restricted audit certificate, if any.
• Audited financial statements.
• International Standardised Audit Questionnaire (as per prescribed format).
• Trial balance (consolidated), generated from prescribed accounting software. Consolidated trial balance must include the full range of account codes for all programme units (facilities) and construction projects.
• Management letter (consolidated), it means the recommendations given by auditor, for systemic improvement and better financial discipline. Response from management and follow-up of previous year’s recommendations is also part of the management letter.
• List of key employees.

Financial Statements are signed by the National Director and authorised person or as specified by the law of the country.

 

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