EXPRESSION OF INTEREST - PROVISION OF EXTERNAL AUDIT SERVICES
EXPRESSION OF INTEREST
PROVISION OF EXTERNAL AUDIT SERVICES
Tender no. RK01/2022-2024
RefuSHE Kenya protects, nurtures, educates, and empowers orphaned, unaccompanied, or separated refugee girls, young women and their children to help them build healthier and more resilient futures for themselves. Through a unique holistic model that provides shelter, education, case management, counseling, childcare, legal advocacy, and vocational training, RefuSHE has over the years become a leading institution and global thought leader in the field of refugee protection.
Founded in 2008, RefuSHE Inc is a U.S. nonprofit with headquarters in Chicago with affiliate operations in Nairobi, Kenya through RefuSHE Kenya. RefuSHE Kenya is registered in Kenya under Section 10 of the Non-Governmental Organization Co-ordination Act.
RefuSHE Kenya seeks to engage a reputable independent qualified audit firm to carry out annual statutory external audit of its books of account for the financial year ended 31st December 2022. Thereafter, based on satisfactory performance of the audit firm, the contract is expected to be renewed for a further two years to cover the financial years ending 31st December 2023 and 31st December 2024.
The external auditor shall be expected to maintain independence from RefuSHE Kenya throughout the contracting period ensuring their integrity, objectivity and professional skepticism is not compromised.
SCOPE OF WORK
RefuSHE Kenya operates a holistic programming model targeting refugee girls, young women and their children in Nairobi, Kenya. This model comprises a girls empowerment program providing numeracy and literacy skills, vocational training in tailoring, construction and carpentry and digital/ICT skills, a case management program, mental health program, protection program through a safe house and community outreach and advocacy program. RefuSHE Kenya also operates the Artisan Collective program that provides apprenticeship to qualifying refugee girls and young women (artisans) that have successfully graduated from the vocational training in tailoring. The scarves and other hand dyed products produced by the artisans in the Artisan Collective program are sold to generate an income that is fully ploughed back to the program as part of RefuSHE Kenya’s sustainability plan.
These programs are run in Nairobi Kenya through 3 locations, the main campus off Gitanga road, a safe house and an outreach site office in Eastleigh. All the accounting is done by qualified accountants using QuickBooks accounting software and is done solely from the main campus which is the sole location the audit is expected to be conducted from.
RefuSHE Kenya’s overall income comprises at least 95% drawn from grants and donations with donors ranging from federal agencies such as BPRM, various embassies in Kenya, private American based foundations, UN agencies, corporates, individual donors amongst others. The annual average grant income for RefuSHE Kenya is Ksh.200Million with average annual expenditure matching the same.
The output of this audit is expected to be used for statutory purposes including submission to the NGO Co-ordination Board. No separate grant/project specific audits will be required at this time.
OBJECTIVE OF THE ENGAGEMENT
The objective of the audit is to provide an opinion as to whether the financial statements of RefuSHE Kenya in all material respects, reflect a true and fair view of the financial position, performance, and cash flows of the organization.
This fulfillment of the above objective will include but not limited to:
- Conducting of the audit services in accordance with the International Standards of Auditing (ISAs).
- Provision of an audit report that shall include an independent audit opinion on the financial statements of RefuSHE Kenya
- Preparation of such other income and expenditure schedules as RefuSHE Kenya shall deem necessary as constituting part of the annual report and financial statements.
- Assessment of the RefuSHE Kenya's compliance to provisions of applicable laws, organizational policies, contracts, grant agreements and relevant regulatory authorities
- Evaluation of the multiple grants to ascertain that the financial statements fairly present the income received, costs incurred, assets purchased, and in-kind donations and technical assistance received for each grant during the applicable financial year.
- Review of the appropriateness, adequacy, and operational effectiveness of the internal control systems of RefuSHE Kenya and highlight any deficiencies.
- Provision of an audit management letter setting out findings, implications and recommendations for improvements whilst accommodating management comments and conducting follow up of status of implementation of prior year audit recommendations and corrective action plans.
- Provision of assurances and any additional information as shall be requested by the US based auditors to support the RefuSHE group consolidated annual statutory audit and Single Audit for the USG grants.
Bidding firms will be required to meet the following criteria:
- Be registered with the Institute of Certified Public Accountants of Kenya (ICPAK) and its partners must hold a current Practicing Certificate.
- Have at least two full time partners who must be in good standing with ICPAK, while the Firm and its Partners should not have been subject to any disciplinary action by ICPAK or other related professional bodies.
- Should have been in practice for a period of at least five years.
- Should have a physical address and a valid business permit
- Should demonstrate that it has the capacity, capability and experience required to undertake the audit within required timelines taking note of statutory timelines such as annual return submissions to the NGO Co-ordination Board.
- The firm should have demonstrable experience in auditing non profit organizations/humanitarian organizations with multiple funding mechanisms and sources including restricted and unrestricted funds.
- The audit firm and its staff should be independent of RefuSHE Inc and RefuSHE Kenya and this independence will be required to be subsequently affirmed in the engagement letter.
The expected deliverables from the external audit engagement shall be:
- Audited financial statements including an audit report reflecting opinion on whether the financial statements reflect a true and fair view of the financial position of RefuSHE Kenya
- Management letter with audit findings the auditor deems necessary for management attention and action
The above deliverables shall be expected to be presented in the English language and in the reporting currency, Kenya Shillings.
The proposal for provision of audit services shall include a technical proposal and a financial proposal.
The technical proposal shall at a minimum set out:
- the proposed approach, methodology and workplan of the proposed audit services
- the quality control measures for the audit engagement
- experience in audit of non governmental organizations/humanitarian organizations
- key personnel to be involved in the audit, their qualifications and experience and their level of involvement expected in the engagement e.g. audit partner, manager, senior, assistants etc.
- References from at least 3 non governmental organizations/humanitarian organizations whom the firm previously provided audit services in the last 5 years
All responsive technical proposals shall proceed to financial proposal evaluation.
The financial proposal should be itemized to indicate the audit fees, applicable taxes and estimated disbursements and should be denominated in Kenya Shillings.
The financial proposal shall set out the proposed fees for the provision of external audit services for the financial year ended 31st Dec 2022 and an estimate for the subsequent two years.
The following are required attachments, copies of which must be submitted as part of response to this EOI:
- Audit firm certificate of registration
- PIN Certificate
- Valid tax compliance Certificate
- Valid ICPAK practicing license for the audit firm and for at least two partners of the audit firm
- Most recent Certificate of good standing with the Institute of Certified Public Accountants Kenya.
- Signed declaration of accuracy and authenticity of the information provided in the proposal submitted.
- Signed Anti-fraud and anti- corruption practices declaration
- Signed declaration of independence of the audit firm i.e., lack of conflict of interest between RefuSHE, RefuSHE Kenya and the audit firm and its staff
- CVs of proposed audit team.
The technical and financial proposals shall be addressed to:
The Chief Executive Officer
P.O. Box 63192-00619,
The technical and financial proposals shall be submitted to the following email: [email protected] on or before 20th August 2022 11:59 hours EAT.
Late submissions will not be considered.