REQUEST FOR PROPOSAL & TOR FOR CLOSEOUT AUDIT OF Kismayo Integrated Lifesaving (KILS).
CARE International has been providing development and lifesaving assistance across all regions of Somalia since 1981. Our programs go beyond meeting basic needs at the onset of an emergency to helping affected communities recover, rebuild their lives and become more resilient. In order to strengthen communities to better cope with future disasters and address persistent poverty and vulnerability, we are implementing a variety of longer-term development activities aimed at addressing the underlying causes of poverty in Somalia. Our development programs support marginalized women and youth through innovative projects in education, water and sanitation, sustainable environmental management, civil society development, peacebuilding and governance and small-scale enterprise development. CARE works in partnership with Somali and international NGOs, civil society leaders, universities, the private sector and local authorities in order to bring effective and lasting change to the most vulnerable communities.
2.1. Brief overview of the KILS Project
CARE is a humanitarian non-governmental organization with no religious, racial, and political affiliations. CARE is implementing an integrated nutrition and health project in partnership with Juba-land ministry of health (MOH) in Kismayo in order to upscale responses to current floods & recurring droughts which resulted in increased number of malnourished children under five, and pregnant and lactating women (PLW). The project interventions targets children under five who are malnourished and vulnerable pregnant and lactating women (PLW) through provision of treatment and prevention services.
CARE supported one fixed team from the MOH to provide integrated health and nutrition services in one site which is Alanley IDP camp in Kismayo. The site was identified by the ministry of health as experiencing high malnutrition rates.
Kismayo Integrated Live-Saving (KILS) project
To improve Health and Nutrition status amongst children under 5 and pregnant and lactating women through provision of quality Health and Nutrition services and contribute to the reduction of maternal and childhood morbidity and mortality
1st July 2020
Ministry of foreign affairs Luxemburg **
Location of the documents to be audited
The project results areas are as follows:
CARE in partnership with the Ministry of Health (MOH) Juba land State of Somalia provided treatment of malnutrition to meet the immediate needs of the most vulnerable children (girls and boys) and women as well as to stave off a decline in their nutritional status. To identify malnutrition in children and women staff used Mid upper arm circumference (MUAC), weight, height/length, and Oedema. For Pregnant and Lactating Women (PLW) only MUAC was used as admission criteria into the Targeted supplementary feeding program (TSFP). When necessary beneficiaries with medical complications during screening were referred to health centers and hospitals to resolve the health problems and later return to the nutrition program. The nutrition interventions are done in line with the Somalia IMAM guidelines which meant that the TSFP visits were done on a biweekly basis and OTP on a weekly basis. All children and PLW admitted were treated using Ready to Use Therapeutic Food (RUTF) or Ready to Use Supplementary Foods (RUSF) until full recovery depending on the condition of the screened beneficiary. The maximum length of stay was 3-4 months in which children who are not gaining weight or recovering are recorded as non-respondent. To identify the children and PLW with malnutrition in the community mobilization activities such as active screening (house to house screening) and mass screening at the facility level were undertaken. The community health workers normally conduct door-to-door screening using Mid-Upper Arm Circumference (MUAC) measurements to identify malnourished children and women and refer them to the mobile sites. They were also responsible for carrying out regular home visits to follow- up on absentees, defaulters and investigated the causes of relapse or longer recovery period. The main objective of the Targeted Supplementary Feeding Program (TSFPs) and Outpatient Therapeutic Program was to treat moderately acutely malnourished individuals and prevent them from sliding into severe acute malnutrition.
3. Audit Objective
The objective of the audit of the financial statements is to enable the auditor to express a professional opinion on the financial position of the project at the end of the reporting period and of the funds received and expenditures for the reporting period, as reported by the CARE international and in particular to confirm that the reported expenditure has, in all material respects, been used in conformity with the provisions of the Accountable Grant Agreement, including any amendments thereto as contained in implementation letters, and any applicable guidelines in force and applicable to the audit scope, and with due attention to economy and efficiency.
To also confirm that the financial statements agree with the project accounts (books of account) which provide the basis for the preparation of the financial statements and are established to reflect the financial transactions in respect of the project, as maintained by the Implementing Partner and the sub-grantees.
4. Scope of Work
The audit will be carried out in accordance with international standards of auditing. It will include such tests and controls as the auditor considers necessary including visits to project office and sites. In addition, the auditors will also make a sample from the expenditures incurred from 1st July 2020 to 30-June-2021, generally, the audit will focus on:
- a sample from the expenditures incurred from 1st July 2020 to 30-S June-2021
- Contractual compliance and practice: To assess and confirm that CARE International and its implementing partner is compliant with CI and donor contractual obligations. It will also entail confirming that CARE’s management practices, including administrative, contractual, financial, and legal are in line with best practices.
- Financial management and internal controls: To assess and confirm that the financial management and control environment of CARE international and its implementing partners have been designed and implemented in line with best and generally accepted accounting standards.
- Expenditure and reporting verification: To verify and confirm, on a sample basis, that reported expenditure and other financial reports issued by the Implementing Partner are accurate and a true reflection of the project’s financial activities, and also to confirm that all expenditures have sufficient support documentation.
- Contracting and procurement: To establish and confirm that transparent, accountable, and appropriate procurement and contracting practices are established and are being followed.
- Regulatory and tax compliance: to confirm whether CARE has complied with regulatory/tax laws.
Specific focus will be:
- To ascertain compliance of the laid down policies, CARE financial norms, accountable grant agreement, relevant legislations, various guidelines, manuals, accountability requirements, procurement guidelines (of goods, works and/or services) as applicable under the project.
- To test whether all the activities included in the work plans have been implemented as planned and the target results under each activity achieved**. A minimum sample of 65% of the total expenditure value should be tested.**
- Expenditure verification for the project expenditures, and reporting on allowability/eligibility, validity, accuracy, and classification of costs into budget lines
- Verification that the administrative (indirect) costs do not exceed the maximum allowed fraction of the total direct eligible costs of the project per the approved budget.
- Physical verification of all capital assets purchased by the grant monies for their existence, conditions, location, and values - including reporting on the same.
- Test and assess the extent of achievement of project milestones.
- To ascertain and evaluate the adequacy and effectiveness of the financial management and internal control framework/ environment such as segregation of duties, approval of expenditure, and cash & bank reconciliations.
- To express an independent professional opinion regarding Value for Money (VfM), that is, efficiency, effectiveness, and economy of the project’s operations.
- Assess conformity of expenditure with the budget and analytical review - includes tests of authenticity/ authorization of the initial budget, conformity with a budget, test that all expenses were foreseen in the budget, test that amendments to the approved budget comply with the conditions for such amendments, and that expenditure for a transaction or action has been classified under the correct heading and subheading of the approved budget.
- To identify areas for improvement and critical weaknesses, if any, i.e. identify areas of good practice and themes where lessons can be learned and communicate these to the CARE team.
This audit will require the following general approach to be applied:
a. Review of CARE’s internal control environment, expenditure, and reports.
The audit will require a review, understanding, and description of Implementing Partner’s internal control environment. This understanding will inform the auditor on why the Implementing Partner uses source documentation, authorization guidelines, processes, and systems. Key items to be reviewed include:
• Accounting system controls;
• Cash movement controls;
• Advances and per diem control;
• Time and payroll controls;
• Authorization controls;
• Procurement controls;
• Capitalization and asset management controls;
• Reporting and financial performance controls; and
• Review of relevant expenditure documentation.
The audit will require a sample check and review of programmed expenditure documentation to assess:
• Supporting documentation.
• Contractual compliance;
• Compliance to the CARE accounting instructions;
• Allowable and disallowable costs;
• Questionable costs;
• Adherence to Implementing Partner’s internal controls;
• Budget limits adherence; and
• Review of Implementing Partner’s budget performance and report.
The audit will require a review of CARE’S spend against budget reports to ascertain the accuracy of reports submitted as well as the fairness of the forecasts submitted.
• Review of CARE’S financial management and contractual compliance
• Review last CARE’S reported expenditure against audited expenditure
The audit will require a review of CARE’S financial management practices, which will include:
• Tax management and administration;
• Application of general accepted accounting standards;
• Management and application of set procedures and policies; and
• Application of relevant regulatory requirements.
The audit will require a follow up of implementation of previous recommendations of similar audits, financial audits
b. Conduct visits to CARE’S offices( Mogadishu and Kismayo)
The visit of audit to CARE’s offices will not be mandatory and will depend on how the COVID 19 pandemic develops. In the case of extreme COVID19 lockdown, the information will be shared with auditors through an online platform
CARE management and CARE Luxemburg –**Deliverables**
i. A closeout Audit Financial Report with a professional opinion
ii. Summary of key findings and recommendation and subsequent management responses from CARE international
iii. managing the identified issues over the life of the project.
iv. A statement of compliance with donor terms and conditions as contained in the Accountable Grant Agreement.
v. A verification report on the capital assets purchased by the grant funds under the project if any.
Instructions on Proposal Submission
The proposal should contain the following
- Profile of the firm.
- Experience of the firm in relation to auditing NGOs
- List of the NGOs served by your firm
- Financial proposal
- CVs of the key staff in your firm
- Valid practicing certificate
The deadline for submission of bids is 25th June 2021. Interested bidders are welcome to submit their bid to Som.email@example.com, in the subject line should be marked as CLOSEOUT AUDIT OF Kismayo Integrated Lifesaving (KILS).