TERMS OF REFERENCE (TOR) FOR AUDIT SERVICES

TERMS OF REFERENCE (TOR) FOR AUDIT SERVICES

1. Introduction

The SNC was first established in 1999 to improve international aid coordination and raise the presence and profile of non-governmental organisations (NGO) within the aid coordination structure for Somalia. It started as a loose network of NGOs in Nairobi, Kenya, focusing on information exchange, debates and selected advocacy. Based on this original premise, over the years the Consortium evolved, continuing to engage in ongoing information exchange between members while also acting as a channel for non-NGO stakeholders to share information with the membership. In 2005, the SNC, commissioned a Mandate review intended to help position itself more clearly within the aid structures for Somalia and Somaliland which resulted in the 2006 Mandate, which was endorsed in November 2006 and came into effect January 2007. In 2011 and 2014 the mandate was further revised and re-adopted. In 2017, further changes to the SNC manadate were made, resulting a revised strategy and organizational structure.

The Consortium is represented by a Director, based in Mogadishu who runs the Secretariat and is supported by Regional Coordinators based in Hargeisa (Somaliland), Mogadishu and field officers in Garowe (Puntland), Baidoa (South West State), and Kismayo (Jubaland). The secretariat is supported by core administrative, program, advocacy & communication staff. Each member agency pays an annual registration fee that contributes to the running costs of the Consortium.The Consortium currently has 103 (61 INGO& 42 LNGO) members working across Somalia/Somaliland. Somalia NGO Consortium wishes to engage the services of an audit firm for its annual membership fee for 2019

2. Governance

The SNC is a voluntary mechanism of international and Somali national NGOs. It is an independent project operating under the guidance of a Steering Committee (comprising of and elected from its members) and the administrative policies of CARE Somalia. SNC is an established but unregistered entity offering services to the aid and development communities operating inside Somalia. CARE will be recognized as the legal guardian of Somalia NGO Consortium (SNC) for the duration of this agreement, and as such, SNC will operate under CARE administrative policies unless indicated otherwise in this agreement.

3. Main Objectives

The broad objectives of the audit will be as follows:

ü To evaluate the effectiveness of financial, management & governance, programmatic and administrative systems & structures of the organization and follow up on outstanding recommendations from previous audits and other financial reviews

ü To review the effectiveness of Somalia NGO Consortium risk management systems and processes

ü To review the effectiveness of management of members’ fee in the organization

4. Scope of work

The audit will examine membership account records for Somalia NGO Consortium. The Audit will include but not limited to:

ü The audit will be carried out in accordance to the International Standards on Auditing.

ü Obtain sufficient audit evidence to substantiate in all material respects the accuracy of the information contained in the financial statements.

ü obtain an understanding of internal controls and perform tests of internal controls

ü Issue an independent Auditor’s Report that states but not limited to the following:

a) An Opinion (or disclaimer of opinion) as to whether the Financial Statements present fairly in all material respects in conformity with the Generally Accepted Accounting Principles

b) A report on internal controls which shall describe the scope of testing of internal controls and the results of the tests.

c) A schedule of findings and questioned costs that includes a summary of the auditor’s results

ü Whether you have obtained all the information and explanations that to the best of your knowledge and belief is necessary for the purposes of your audit;

6. REQUIREMENTS

Kindly submit your expression of interest and provide the following

Years of experience in auditing of Non-Governmental Organizations (NGOs)

Proposed team composition, qualification and experience.

References from NGOs that the audit firm has audited.

Company profile including various donor funded projects that the audit firm has audited.

Number of days proposed for the audit exercise

Number of staff that will be assigned to the audit

Financial proposal

5. Submission Date of the Audit Report

The audit is scheduled to begin on 18^th October 2020 covering the financial period 1^st January 2019 to 31^st December 2019. The Draft Audit Reports should be submitted by 4^th November 2020 while the Signed Audit Reports should be submitted by 11^th November 2020.

Kindly submit your financial proposal accompanied by above requested documents/information on or before 12 th October 2020 to: SOM.Consultant@care.org