FINANCIAL
STATEMENT AUDIT
REQUEST FOR
PROPOSALS-PRE-QUALIFCATION OF AUDIT FIRMS
For Annual
External Audit 2016 Funding Framework
HORIZONT3000 –
Austrian Organisation for Development Co-operation requests technical and
financial proposals for t
he audit of projects funded by the Austrian
Development Co-operation and HORIZONT3000 member organisations namely; BSI
Innsbruck; DKA Austria, Kfw WHG, KMB and Caritas Austria;
This document
constitutes a Request for Proposals (RFP)-for prequalification of audit firms,
to be received from qualified audit firms to perform the Scope of Work set
forth herein in the TOR. Offerors are strongly encouraged to carefully read the
entire request for proposal.
About
HORIZONT3000
HORIZONT3000 is an
Austrian NGO working in the area of development cooperation. With the mandate
of its member organisations of the catholic development sector, HORIZONT3000
specialize in the monitoring and implementation of projects as well as
provision of experts in developing countries. The Regional Office in East
Africa is located in Kampala, and oversees projects in Kenya, Uganda and
Tanzania in the sectors of: Sustainable Use of Natural Resources; Integrated
Rural Development, and; Peace Building, Conflict Resolution and Human Rights,
with Capacity Building as a cross cutting sector. For more details about
Horizont3000, visit http://www.horizont3000.at/en/eastafrica/projects
Subject of
auditing:
The
financial statement accounting for project funds (including assets and/or
donations in kind) provided by HORIZONT3000 to the project partner
(implementing partners, e.g NGO, church based organisations etc)
The
internal accounting and administrative control system operated by the project
partner
Compliance
by the project partner with relevant local laws and regulations
Compliance
by the project partner with the instructions on handling and administration of
project funds issued by HORIZONT3000, annex 2 of the project agreement,
specifically check if double entry financial management and 4-eye principle is
applied throughout.
The audit shall be
conducted in accordance with international standards of auditing and shall
include such tests and procedures as the auditor considers necessary to enable
them express their opinion.
Scope of the
audit and related audit procedures
The audit shall
include but is not necessarily limited to:
Confirmation
that the overall financial statement is in agreement with the books of account.
Reconciliation
of expenditure with the project budget.
Confirmation
that all funds sent by HORIZONT3000 to the project partner were received and
correctly recorded
An
examination of a representative sample of expenditure to confirm its validity,
authenticity and support
· accuracy of
vouchers, accounts and cost centres
· examination that
all vouchers are in accordance with the project description
· examination that
all vouchers are in accordance with the subject of budget position
· accruals for audit
fees and others have to be considered
· arithmetical
accuracy of vouchers, accounts and cost centres
A
review of the system of internal accounting and administrative control
procedures to confirm their adequacy and effectiveness
A
review of management’s compliance with applicable local laws, regulations
A
review of management’s compliance with HORIZONT3000’s rules and regulations for
handling and administration of project’s funds, for example:
· in the books if
necessary correction of the opening balances according to the last audit report
· examination
whether expenditures vouchers which have not been paid are entered in
“accounts payable” column
Information
on the precise location of the original documentary evidence, for use in the
event of checks by the Austrian Court of Auditors.
Physical
spot checks (existence, conformity) of the Project.
The
auditors should mark on all the supporting vouchers to show evidence of
verification.
Review
of the draft financial policy and recommendation
The audit
report should comprise
- Report
on the financial statement
· audit opinion
· overall financial
statement for the period of auditing signed by the official representative of
the local project partner
· A comparison of
expenses paid per project year to the approved overall project’s budget.
· statements of bank
accounts (including bank reconciliation statement) and minutes of cash count
· analysis: fixed
assets (including movable and immovable goods and vehicles exceeding a value of
original purchase cost of Euro 400,–), receivables and payables
· accounting
policies: accounting convention, expenditure and income, foreign exchange
Comments
on internal control and recommendations for improvements
Detail
assessment to which extend recommendation from last year’s audit are
implemented
Comments
on compliance with local laws, rules and regulations
Analysis
of tax payment according to national regulations, specifically taxes of
consultancy services.
Comments
on compliance with HORIZONT3000’s rules and regulations on administration of
project funds and expenses.
The
auditor shall attach to the audit report a detailed list of all expenditures
and vouchers of the period with classification to the sub-budget lines.
Location of
projects
Lot no
Item
Uganda
7 projects, located
in the following districts, Gulu, Kitgum, Busia, Iganga, Tororo, Masaka,
Kampala and Buikwe
Tanzania
5 projects located
in Mbeya, Dar-es-Salam, Karagwe, Kyerwa, Kilindi, Morogoro, Chunya and Momba
Districts,
Kenya
2 projects in
Turkana, Bungoma, Trans-Nzoia and Kakamenga Counties
Submission
instruction
Proposals should
provide a straightforward, thoughtful and a concise description of the firm’s
capabilities to satisfy the requirements of the RFP.
Firms submitting a
proposal in response to this RFP will be required to be available for an
interview to discuss the scope of their proposal. This interview may provide an
opportunity for the firms to clarify or elaborate on the proposal but will in
no way change the original submission.
Interested firms are
invited to submit proposals that contain the following information:
Registration
Copy
of valid Registration as Certified Public Accountant
Proof
of Compliance with the International Standards on Auditing and other IAASB
pronouncements adopted by ICPAU.
Experience
of the Firm
A
history of the firms experience providing similar services to not for profit
organisations/International NGOs and NGOs in East Africa
Overall
proposal costs
A
proposed fee structure for the service including standard billing of all
personnel expected to be assigned to the engagement. Although the proposed fees
will be taken into account the organisation reserves the right to negotiate a
lower or different fee structure during the offer process
Contact
information: On the cover page of your proposal please include the following
The
firms name in letter head
person
email address for firm principals and individuals working on the organisations
proposal
firms
methodology
manager/person in charge who will be assigned to work with us should your bid
be successful and provide current resume of each staff
approach the audit of the organizations, including any area that will receive
primary emphasis as well as the audit approach employed
registration information
proposals should be submitted by email as PDF attachments on October 3th 2016,
12:00 hours EAT.
mail to:
Jennifer
Okusia Senior
Programme Officer Finance Projects, East Africa
jennifer.okusia@horizont3000.org
