CBS Rwanda is a non-governmental organization (NGO) legally established in 2016; originating from the implementation of the Community Based Sociotherapy approach in Rwanda since 2005. Community Based Sociotherapy is an approach that uses the group as a therapeutic medium in the establishment of trust, the creation of an open environment for discussion and the formation of peer-support structures.
CBS Rwanda is seeking an audit firm to conduct a comprehensive financial, performance, compliance and risk based audit for one of its larger projects, covering 75% of funds; and certification of the organization financial statements; of an annual budget of around Rwf 1,500,000,000 and a maximum of 5,500 General ledger transactions.
- Scope of the work
- The successful bidder will be required to perform the following types of external audit:
- Certification of CBS Rwanda financial statements for the financial year to 31st December, 2020 (obtain reasonable assurance that CBS Rwanda financial statements are free from material misstatements);
- The auditors must establish the completeness and accuracy of all receipts and expenditures and that they derive logically from and are in line with the activity plan;
- The auditor must observe a minimum level of reliability of 95% and a permitted tolerance of 3% for both the organization and project audit;
- The project audit opinion should be drawn up in accordance with the model in paragraph 3 of this Terms of Reference (ToR);
- The scope of external audit work entails testing and evaluating the adequacy and effectiveness of the organization’s systems of internal control and administrative organization and to make recommendations;
- Review the effectiveness and efficiency of the financial and human resource management process;
- Appraising the effectiveness and efficiency with which resources are employed and identifying opportunities to improve operating performance;
- Review the reliability and integrity of financial and operating information and the means used to identify measure, classify and report such information;
- Review the systems established by management to ensure compliance with those policies, laws, regulations and controls that could have a significant impact on operations and determine whether the organization is in compliance with its financial, administrative and property management procedures and other relevant legislation that governs the organization;
- Ensure that the organization adheres to the corporate governance requirements as prescribed in the organization’s internal rules and regulations;
- Ascertain, by means of a limited review of the narrative report, that the narrative and financial sections of the report are in agreement and contain no contradictions;
- Ensure value for money for all expenses incurred for the program activity.
- Execution of audit assignments will be as follows:
Assignments are to be performed in accordance with the International Financial Reporting Standards (IFRS) and International Standards of Auditing (ISA)
The audit opinion should in any event include the aim and scope of the audit (paragraph 2.1 and 2.2), the audit criteria applied, where relevant, and any restrictions imposed on the scope of the audit.
The auditor will report in two separate audit reports:
- Organizational audit for CBS Rwanda
- Project audit for CBS Rwanda and two partners
The auditor will write a report of findings regarding the evaluation of the administrative organization and internal control structure of the organization, identifying any matters worthy of mention, including any material shortcomings in the internal control system. In addition, the report should also give an overview of the well-established financial and administrative processes within the organization; and the project audit report will be in line with the donor audit protocol, which shall be shared at the contracting time.
The auditor will make separate mention, in the report of findings, of any material deviation from the requirements included in this Terms of Reference. This includes information which the auditor can reasonably suspect to be relevant to the grant provider in finalizing the grant award.
In case of an adverse audit opinion, the auditor should indicate:
- The influence on the transactions included in the financial statement;
- The contribution conditions that have not been met; and/or
- Any unlawful acts identified.
In a report of findings:
The auditor should request a letter of representation from the grant recipient’s management stating that, to the best of their knowledge, the financial statement encompasses all transactions and receipts, is accurate and complete in every respect and that all grant conditions, including those beyond the scope of the audit, have been met. In the letter of representation, as on the project audit; the management should specifically confirm that they have complied with article 15 of the contribution agreement, which states that: “the contribution recipient shall not offer to third parties or seek or accept from or be promised by third parties, for himself or for any other party, any gift, remuneration, compensation or benefit of any kind whatsoever, which could be interpreted as an illegal or corrupt practice.”
If, in the course of the audit, the auditor finds evidence of illegal or corrupt practice, he or she must act in accordance with the COS 240 guideline on fraud. The auditor must report any information that came to his notice during the audit which may reasonably be suspected to be relevant to the contribution provider in finalizing the contribution.
- Location of services
The required services of external audit will be conducted at CBS Rwanda Head Office in Kigali, Nyarugenge district, KN3 Umoja house; and at the partner organizations (Prison Fellowship Rwanda & Anglican Church Rwanda, Byumba Diocese) for the project audit.
- Technical requirements
The qualified auditing firm to CBS Rwanda audit engagement should exhibit the followings:
- Demonstration of experience and expertise of external auditing with non-governmental organizations (Firm should have an expertise of more than 10 years working in Rwanda and without any sanction from the governing institute; ie: ICPAR;
- Providing an activity plan (project plan) of actions to achieve the objectives of the external audit function, specifying budgeted hours, timelines and sequence for its audit procedure and level of staff to be assigned;
- Incorporating CV’s of the proposed professional staff of the core management team proposed for the engagement and the authorized representative submitting the proposal. Key information should include the position of the individual in the auditing firm, the role that the individual will have in the engagement, number of years’ and type of experience, all tertiary and professional qualifications, professional memberships with international recognized association for accounting and auditing services (compulsory with institution recognized by IFAC), and degree of responsibility held in various assignments during the last three (3) years. CVs should be maximum two (2) pages per staff member.
- Engagement Partner should have at least a master’s degree in relevant qualification.
- The audit manager should have at least a master’s degree in relevant qualification.
- Proof of experience in performing external audit services: list current and past clients where the bidder carried out external audit along with the name of the organization, contact person, designation, contact number, nature of the external audit service and length of the appointment for at least three (3) non-governmental organizations where you have rendered external audits services in the last three (3) years.
- An auditing firm registered in Rwanda.
- The Audit firm should belong to an international network of audit firms.
- Be registered at the institute of certified public accountants of Rwanda.
- Proof of no tax liabilities, and RSSB liabilities.
- Proposals must remain valid from the submission date. CBS Rwanda will make its best effort to complete negotiations within this period. If the proposal validity period of 21 days is extended, bidders have the right to withdraw their proposals.
- Financial requirements
The qualified auditing firm to CBS Rwanda audit engagement should exhibit the followings under the financial proposal:
- Unit financial package for each of the 2 exercises to be handled;
- A detailed financial package at a gross rate ( Taxes inclusive);
- Preferred terms of payment.
- Evaluation Criteria
Proposals will be evaluated in two parts. The technical proposal shall bear 60% of the total marks while the financial proposal shall bear 40% of the total marks:
- Proposals should make clear about the relevant skills, experience and capacity of the participant, in respect of this particular ToR.
- Proposals must contain the details of the proposed approach to be adopted in order to deliver the service in accordance with the ToR.
- Proposals should clearly indicate whether or not bid participants have the capacity to meet the requirements of the ToR.
- To be registered as audit firm in Rwanda.
Functionality evaluation criteria
|1||Experience, Skills and Ability of Service Provider Past experience in similar work of this natureTeam member experience (accompanied by brief CV’s)Bidders ‘track recordAbility of the bidder to fulfill the CBS RWANDA’s requirements||30|
|2||Technical Approach and Execution Plan Proposals must contains the details of the proposed approach to be adopted in order to deliver the service in accordance with the TOR||20|
|3||Project management Bidder must allocate a project manager for this project;The proposal should contain a work plan, showing tasks ,timelines;Did the bidder give, submit clear proposed project timelines for this project;Does the project plan cater for risk management associated with this project and mitigation strategy?Project management and turn around management (Ability to Deliver on Time).||15|
|4||References Did the bidder submit at least three relevant and contactable clients that were serviced in the past 12 months||10|
|5||Capacity Proposals should clearly indicate whether or not bid participants have the capacity to meet the requirements of the TOR||25|
Bidders are required to score a minimum of 75% points on functionality to qualify to be evaluated in the next level (price). Bidders who do not score the minimum of 75% points on functionality will be disqualified and not be evaluated on price.
7. Payment Details
Payment will be in accordance with a detailed budget breakdown as submitted through the proposal, and invoices will be expected from the consultant prior to payment.
Applications should be addressed to CBS Rwanda management and can be submitted between 05th and 15th January 2021 at 10:00 A.M. latest, by submitting a sealed file of bid documents showing all details as required in technical specifications including the audit bill to be charged on CBS Rwanda, with a separate submission letter. For further information related to the ToR and the organization address, you can liaise with the contacts below.
Done at Kigali on 20th December 2020
CBS Rwanda Management
UMOJA House, 1st floor
Kiyovu, Kigali, Rwanda
Tel: +250 (0)788 304 338 or +250 (0)783 064 545