To: Qualified Firms of Certified Accountants
From: FCA Somalia
Subject: Professional Auditing Service for Statutory audit and AUP for one of the projects for the period of January 10 February 05, 2020.
FCA is soliciting proposals from qualified firms of certified public accountants to conduct a statutory audit and the AUP for one of it’s projects for 2019. Note: AUP conditions are listed below on this TOR.
FCA works to enable people to break the circle of poverty and violence. We are a rights-based actor, a Finnish organization with 70 years of experience, with operations in 15 countries. FCA is Finland’s largest NGO in development cooperation and second largest provider of disaster relief. Our action is guided by international human rights standards and principles. We realise our mission and vision through development cooperation, humanitarian assistance and advocacy work. We contribute to positive change by supporting people in the most vulnerable situations within fragile and disaster-affected areas. We consider three thematic areas as central to sustainable change: the right to peace (R2P), livelihood (R2L) and quality education (R2QE).
In Somalia and Somaliland FCA has been working under a right to peace thematic areas since 2008 including governance and reconciliation projects and later has expanded in quality education (R2QE) thematic area.
SCOPE AND LOCATION OF AUDITING
The auditing shall be conducted at the location of the projects, in particular at the place where the projects’ bookkeeping are done, to be selected by the Auditors. FCA has three offices: In Baidoa, Mogadishu and Hargeisa. It’s up to the auditor to select the place for conducting the audit.. The audit to be conducted is a statutory audit and the AUP for one of the projects for the period of January 1-December 31, 2019. Total approximate budget for 2019 is 3,500,000-5,000,000 US dollars, which includes the 701,000 US dollars for AUP.
In order to simplify the evaluation process and obtain maximum comparability, FCA requires that all responses to the RFP be organized in the manner and format described below:
- Executive Summary
Describe your understanding of the work to be performed and your firm’s ability to perform the work within the time fame provided.
- Professional Experience
Describe how and why your firm is different from other firms being considered. This should include an explanation of the firm’s philosophy, size, structure, and qualifications with serving not for profit organizations with a similar size and operations. Describe your firm’s resources devoted to not for profit organizations and provide copies of newsletters or other resource materials addressing issues relevant to not for profit organizations. Discuss the firm’s independence with respect to FCA.
- Team Qualifications
Identify the specific partners, managers, and in-charge staff who will be assigned to this engagement if you are successful in your bid. Provide their bios specifying relevant experience to the type of services requested. Also discuss commitments you make to staff continuity, including your staff turnover experience in the last three years.
- Audit Approach
Describe how your firm will approach the proposed services, including the use of affiliates or staff from other locations, areas that will receive primary emphasis, and the type of assistance that will be required from FCA’s staff. Also discuss the firm’s use of technology. Finally, discuss the communication process used by the firm to discuss issues with management.
Please provide a firm estimate of fees for the services to be provided
Any cost incurred for traveling to provinces must be bearded by audit firm. Additionally, transportation for auditors to FCA office must be provided by audit firm.
- Client ReferencesInclude a list of the relevant not for profit clients the firm has served within the past three years and furnish the names and telephone numbers of any references whom we may contact.
- Minimum Requirements.
- Evidence showing Min 5 years’ experience of INGO audit.
- Certificate of incorporation as Certified Public accountant (CPA)
- License to operate and certify the financial statements in Somalia.
- Evidence showing minimum one audit experience with International Standard on Related Services (ISRS) 4400 standard on related services – provide service completion report for the Agreed Upon Procedures (AUP) done in accordance with standard ISRS 4400
- Evidence showing minimum one audit experience in auditing project funded by International Institutional donors (such as but not limited to Finland MFA, ECHO, EU and UN Agencies).
- Evaluation Criteria.
The offers will be evaluated according to the criteria below:
|1||Ability to deliver the audit according to the requested schedule.||10%||Full score for “yes”No score for “no”|
|2||Number of years of, exceeding 5 years, Experience in INGO’s Audit.||10%||Compared with the other offers. Longest experience receives highest score.Other candidates’ scores are calculated proportionally based on the longest years of experience.|
|3||Experience in auditing project funded by International institutional donors.||30%||Full score for five or more previous assignments with evidence of service completion reports.|
|4||Financial score.||40%||Lowest bid receives highest score. Other candidates’ scores are calculated proportionally based on the lowest bid.|
|5||Experience with standard on related services 4400 (10%).||10%||Full score for five or more previous assignments conducted under ISRS 4400 with evidence of service completion reports.|
AUDIT PROPOSAL INFORMATION
The proposal must be valid for at least 60 Days. Audit period will be 01/01/2019 through 31/12/2019. (one year) The final decision of the selection of the firm to conduct the audit will be made by the FCA procurement committee in coordination with FCAHO. All questions and correspondence regarding this RFP should be directed to procurement committee through email firstname.lastname@example.org. The AUP instructions for the specific project will be sent to the audit firms after getting their proposals DELIVERABLES Prior to the submission of the completed audit report the audit firm will be required to deliver and review the draft and the proposed management letter with the FCA Somalia. Copies required A) Audited Financial Statements, 2 copies. B) Management letter, 2 copies. SUBMISSION GUIDELINE The proposals must be submitted electronically at email: email@example.com The subject line must be: 2019 Annual Audit.
Deadline: December 22, 2019 before 2:00pm
We ask you to conduct Agreed-upon Procedures concerning the annual report of the Development Co-operation Project [Name of programme/project] of [Organization]. According to the Ministry for Foreign Affairs of Finland’s general conditions regarding support to non-governmental organizations and municipalities, the receiving organization must observe principles related to good governance and anti-corruption activities. State support shall be used only to cover expenses considered necessary and reasonable in carrying out the project activities. The support-receiving organization shall in its accounting follow the generally accepted national accounting principles (GAAP). The audit should be carried out in accordance with the International Standards on Related Services 4400 applicable to agreed-upon procedures engagements taking into account the conditions set out in the discretionary government transfer decision and in the additional conditions for programme/project support and relevant national legislation and standards.
Templates of Engagement Letter and Auditor’s Report are attached to this Audit Instructions.
The nature of a Development Co-operation Programme/Project is as follows:
- A project is not a legal entity but an accounting subject
- It can include transactions in more than one legal entity (e.g. Partner or Subsidiary)
- It does not prepare statutory Financial Statements
- The statements under audit are the Financial Programme/Project Report and the List of Fixed Assets
- Fixed Assets are not capitalized but recorded as cost when purchased
- The Materiality Level in each audit finding is the equivalent of 200 Euros or 0,15 % of total reported expenses, if it is higher than 200 Euros.
Templates of Engagement Letter and Auditor’s Report are attached to this Audit Instructions. We ask you to further send the Auditor’s Report to the co-operation partner in Finland by email and submit the original to the Country Office. The Agreed-upon Procedures are listed in the template of the Auditor’s Report. The report has to be in English (or in another language exceptionally agreed with the Finnish partner organization) and include the findings of all of the agreed-upon procedures. ISRS 4400 report is not meant to be a standard report so each auditor should in any case adjust the report to reflect the procedures carried out and the observations made during the procedures.