Colombo Plan Gender Affairs Programme Implementing Partner Audit (Afghanistan)

Request for Proposal (RFP)

Colombo Plan Gender Affairs Programme Implementing Partner Audit (Afghanistan)

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1 January 2020– 30 June 2022

The Colombo Plan Gender Affairs Programme (CPGAP) is seeking the expert services of a consultancy to conduct an external audit of the implementing partners of its flagship project in Afghanistan.

The Colombo Plan requests all interested audit firms to submit a proposal in accordance with this “request for proposal” (RFP) and in consideration of the annexed term of reference (TOR).

Your proposal, if selected, will form the basis for a contract between your firm and the Colombo Plan. Any information shared between your firm and the Colombo Plan will remain confidential.

Contents of solicitation documents: Proposals must offer services for the total requirement. Proposals offering only part of the requirements will be rejected. The Offeror is expected to examine all corresponding instructions, terms and specifications contained in the Solicitation Documents. Failure to comply with these documents will be at the Offeror’s risk and may affect the evaluation of the Proposal.

Clarification of solicitation documents: Colombo Plan will respond in writing to any request for clarification that it receives prior to the deadline for the submission of Proposals. Written copies of the organisation’s response will be sent to all Offerors.

Language of the proposal: The Proposals prepared by the Offeror and all correspondence and documents relating to the Proposal exchanged by the Offeror and Colombo Plan shall be written in the English language.**

Language of the training curriculum: will be in English.

The Proposal shall comprise the following components:

1. Technical Proposal, completed in accordance with clause (I),

2. Price Schedule, completed in accordance with clause (II) & (III)

(I) Technical Proposal Format

The Offeror shall structure the technical part of its Proposal according to the commonly acceptable format. The Technical Proposal will be evaluated against the criteria assisted by the following information:

(a) Proposed Approach and Work Plan

This section should demonstrate the Offeror’s responsiveness to the specification by identifying the specific components proposed, addressing the requirements, as specified, point by point; providing a detailed description of the essential performance characteristics proposed; and demonstrating how the proposed methodology meets or exceeds the specifications.

(b) Capacity and Experience of Organization/ Firm/ Consultant

This section should describe the organizational unit(s) that will be responsible for the contract, and the general management approach towards this project. This should fully explain the Offeror’s resources in terms of personnel and other resources necessary for achieving project results. This section should also provide orientation to the organisation / firm including the year and state/country of incorporation and a brief description of the Offeror’s present activities. The Offeror should describe its experience in similar projects. The latest Audited Financial Statement should be enclosed (if the applicant is an organization)

(c) Human Resources

CVs for key personnel should be attached.

(II) Price Schedule

The Offeror shall include an appropriate Price Schedule, the prices of services it proposes to supply under the contract.

The services provided should be itemized. Please utilize the table below as a reference:

Column 1- Activity

Column 2- Total Number of Days per Activity

Column 3- Expert Positions

Column 4- Number of Person Days for Each Expert

Column 5-Fees for Each Expert

Column 6 -Total Fees for the Activity

• Submit an Inception Report on the assignment – 2 days
• Conduct the Audit – 35 days
• Present the draft Audit findings -1 day
• Submit the final Audit report – 2 days
• Total Number of Estimated Days and Total Fees for the Activity – 40 days

(III) Proposal Currencies

All prices shall be quoted in US Dollars.

Period of Validity of Proposals:

Proposals shall remain valid for ninety (90) days after the date of Proposal submission prescribed by Colombo Plan, pursuant to the deadline clause. A Proposal valid for a shorter period may be rejected by Colombo Plan on the grounds that it is non-responsive.**

Payment:

Payments will be made directly by Colombo Plan to the selected organization/ firm after acceptance of the invoices submitted by the organization / firm, based on the following milestones:

1^st installment of 20% upon submission of the inception report;

2^nd installment of 30% upon submission of the draft audit report;

3^rd installment of 50% upon receiving the final audit report and supporting documents.

The payments shall be made by the Colombo Plan HQ following the clearance of the documents submitted and certification of satisfactory completion of service by Colombo Plan.

The Terms of Reference for the consultancy is attached herewith for your reference (Attachment I).

For additional information, please send an email to: [email protected].

We will provide additional information expeditiously, but any delay in providing such information will not be considered a reason for extending the submission date of your proposal.

Terms of Reference (ToR)

Colombo Plan Gender Affairs Programme Implementing Partner Audit (Afghanistan) 1 January 2020– 30 June 2022

1. Background

The Colombo Plan for Cooperative Economic and Social Development in Asia and Pacific is an inter-governmental organization based in Colombo, Sri Lanka, with field offices around the world. The organization is commonly referred to as the Colombo Plan amongst its member network of 28 countries throughout the globe and Asia-Pacific region.

The Colombo Plan leads gender initiatives focused on women and children’s rights through its recently established Gender Affairs Programme (GAP). Currently, GAP has one flagship project in Afghanistan that is implemented through six local non-governmental organizations, providing vulnerable groups with aid through shelter and comprehensive alternative care (inclusive of essential services).

Accordingly, the Colombo Plan (CP) has memorandum of understandings (MOU) with the six implementing partners that operated the CP-funded facilities within 13 provinces in Afghanistan.

Due to confidentiality and sensitive information further information regarding the projects and facilities will be shared with the selected and vetted consultancy firm.

1. Objective and Goals

To undertake an external financial audit of the aforementioned CP-funded facilities under GAP’s Afghanistan-based project for the following accounting periods: 1 January 2020 – 30 June 2022

The audit is to identify and assess any risks which could have a significant impact on the financial position or performance, as well as some of the measures, i.e. internal controls, that the organization has inaugurated to mitigate those risks. Thus, the audit with cover fiduciary compliance with the implementing partners’ policy, procedures and guidelines, to assess the adequacy and effectiveness of internal controls; to establish that systems and procedures have been managed with due regard for economy, efficiency, and effectiveness; and to ensure project closures were carried out following due diligence.

1. Scope of Work

The audit is to be carried out in accordance with the International Auditing Standards and will include tests and verification procedures as the auditors deem necessary; verifying all funds have been used in accordance with the established rules and regulations under the two projects’ objectives and only for the purposes for which the funds were provided. Comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions. Ensure appropriate supporting documents, records and books of accounts relating to all activities have been kept. Clear linkages should exist between the books of accounts and the financial statements presented to. The concerned auditor will specifically audit the finance, human resources, procurement and asset management, and internal control aspects of the projects as mentioned below.

Finance:

1. Check the adequacy of the accounting and financial operations and reporting systems. These include budget control, cash management, certification and approving authority, receipt of funds, and disbursement of funds.

2. Check the recording of all financial transactions in expenditure reports, records maintenance and control. In addition, ensure the expenditure documents are approved as per IPs approval authority matrix.

3. Check that all disbursed funds have been used in accordance with the approved budget and signed MoUs, with due attention to budget value, and only for the purposes for which the financing was provided, including goods, equipment, staff and all services.

4. Check that the expenditure for the project was actually incurred by and for the project only. For this purpose auditor should examine supporting documents such as invoices, contract and proof of payment, and signatures, verifiable by originals of supporting evidence.

5. Before to entering review of the financial transactions in accounting system, the auditor should review preceding year’s audit report to verify whether or not the prior observations were improved or efforts were made to bring improvements, and provide opinion on this matter.

6. A balance sheet showing accumulated funds of the project balances other assets of the project, and liabilities, if any.

7. Check that all necessary financial supporting documents – financial records (i.e. reconciliations – bank, cash, and fund), invoices, and accounts are properly documented and available as per reported project expenditures, including administration cost budget line documents.

8. Clear linkages should exist between the accounts and reports submitted to the Colombo Plan and those submitted to Ministry of Economy and other Ministries/Government offices.

The audit will provide CP with separate financial statements for each project, free of errors and fraud. Financial statements should represent all recorded transactions, and an independent opinion should be provided for the financial statements.

*Human Resources:**

1. Review the process for recruiting project personnel/consultants and assess whether it was transparent and competitive (specifically checking on nepotism, ethnic biases, whether direct management line is hiring relatives etc.) and include performance appraisal, attendance control, calculation of salaries and entitlements, payroll preparation and timely payment, and management of personnel records.

2. Review all personal files of staff within the Human Resource Department to make sure all necessary files are collected and kept for each employee.

3. Ensure the expenditure relating to Project Staff have been paid within the approved budget and there are no ghost employees within the project payroll. For this purpose the auditor needs to match records of Finance and HR.

Procurement and Asset Management:

1. Review the process for procurement/contracting activities and assess whether it was transparent and competitive.

2. Check contracts of vendors to ensure proper vendor management, as well as vendor provisions are in line with vendor’s business field.

3. Check the effectiveness of the procurement activities of the project in order to ensure that the equipment and services purchased meet the requirements.

4. Check that all procurement documents are signed by designated authorities and that procurement thresholds, call for bids and proposals, evaluation of bids and proposals and approval/signature of contracts and purchase orders are all available.

5. Review the process for asset management and whether there is record and documentation of all assets and inventory.

6. Conduct physical verification of assets and verify IPs report about lost assets during Afghanistan Collapsed by Taliban and report to CP about any findings/observations.

7. Check that the agency has receiving and inspection procedures, inventory, asset control and management (typically for vehicles and office equipment) purchased for use of the project. The procedures for receipt, storage, and disposal shall also be reviewed.

Internal Controls

The review of progress and internal controls should also include the following:

1. Review monthly/quarterly financial report/work undertaken, expenditure/payments and their timeliness and their compliance with the project documents (proposal, MOU and budget). Review available annual report as relevant.

2. Audit should identify significant areas of weakness within Senior Management in fund management and its utilization as well as safeguarding against fraud.

3. The assessment should be according to established internal control standards.

4. Review and check that proper measures are in place for all cash funds held by the project and review existing procedures for safeguarding of cash.

5. Review the accounting records and assess their adequacy for maintaining accurate and complete records of receipts and disbursements of cash; and for supporting the preparation of the monthly and quarterly financial reports.

6. The audit shall also cover travel activities, vehicle management, office premises and lease management, office communications, and records maintenance.

7. The audit shall also cover the information and communication systems and the control and security of equipment and data.

8. Audit Deliverables

The audit is to be conducted will be conducted during 1 June 2022 – 31 July 2022. Start date and deadline are flexible upon request, however, reasonable justification must be provided and approved by Colombo Plan.

1. An auditor opinion as to the overall financial situation of the project, significant Audit findings and recommendations for the period of audit (1 January 2020– 30 June 2022)

2. Cash Flow Statements and Income and Expenditure statements of the project under IP’s HQ office and each project center for the aforementioned periods for GAP Project.

3. Certifying the status of assets and equipment held with implementing partners during aforementioned periods for GAP Project.

4. The auditor should prepare a reconciliation between the amounts shown as received and spent by the agency and that reported to the Colombo Plan.

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1. Consultations with Concerned Parties

Prior to the start of audit work, the auditors will be required to consult with the Colombo Plan HQ Officials. Upon completion of the draft audit report and management letter, the auditor will be required to meet and debrief the Colombo Plan Officials and INL Officials on its major findings from the audit and its recommendations for future improvements. Furthermore, auditor is required to share findings with IPs and respond to any inquiries, issues and/or concerns raised by the IPs.

The auditor will have full and complete access at any time to all records and documents (including books of account, MOUs, bank records, invoices and contracts etc. from the implementing agency and all employees of the entity. The auditor will have a right of access to bank, contractors, vendors, agencies and other persons engaged by the agency for the project.

The Auditor should sign confidentiality agreement and ensure of all the information shared with them will not be shared with any third party.

1. Key Qualifications for the Auditor/Agency:

2. Experienced in applying either ISA or international audit standards, as applicable.

3. Should have staff with appropriate professional qualifications and suitable senior experience with ISA or INTOSAI standards, including minimum 5 years’ experience in auditing the accounts of entities comparable in complexity to the entity being audited. Auditing team should be led by a chartered accountant with minimum 8 years’ experience in audits.

4. The auditor must be completely impartial and independent from all aspects of management or financial interests in the entity being audited.

5. The audit company should be registered with the Government of Afghanistan.

6. The audit company should have a previous background in auditing gender, children protection, or other sensitive projects.

7. The auditor should not, during the period covered by the audit nor during the undertaking of the audit, be employed by, serve as director for, or have any financial or close business relationships with any participant in the management of the implementing agency entity.

8. Any staff/team member involved in the audit should disclose a Conflict of Interest statement showing they are not related/engaged in any manner with the entity being audited.