Proposal to conduct 2021/2022 Audit for Project Contract Number 21/04080 – “RFQ NO. RO01-001781”

REQUEST FOR QUOTATION – Proposal to conduct 2021/2022 Audit for Project Contract Number 21/04080 – “RFQ NO. RO01-001781”

Organization: Danish Refugee Council

Opening Date: 1st July 2022

Closing Date: 10th July 2022

Please see complete REQUEST FOR QUOTATION and BIDDING DOCUMENTS at the following link:

https://drive.google.com/file/d/1WS4cFJxeGrFvgwzZJl_BupA-OTmmT0hv/view?usp=sharing

TERMS OF REFERENCE

FINANCIAL AUDIT for ReDSS – Durable solutions to support social and economic inclusion of displacement affected communities in East Africa

1. Background and context

Displacement in the East and Horn of Africa region is consistently high, protracted, and dynamic. A combination of factors including conflict and violence, cyclical climatic shocks and the growing threat of pandemic diseases are major triggers of displacement. Additional factors such as poor governance, food insecurity, environmental degradation, and poverty, underpin displacement in the region making it highly complex.

The search for durable solutions to the protracted displacement situation in East Africa and the Horn of Africa is a critical humanitarian and development concern. Displacement is a regional/cross-border issue with a strong political dimension, demanding a multi-sector response beyond the existing humanitarian agenda.

The Regional Durable Solutions Secretariat (ReDSS) was created in 2015 to maintain focused momentum and stakeholder engagement towards durable solutions for displacement-affected communities in East Africa and the Horn of Africa. ReDSS comprises 14 NGOs: Action against Hunger (French: Action Contre La Faim – ACF), ACTED, CARE International, Concern Worldwide, the Danish Refugee Council (DRC), the International Rescue Committee (IRC), INTERSOS, Mercy Corps, the Norwegian Refugee Council (NRC), Oxfam, the Refugee Consortium of Kenya (RCK), Save the Children, World Vision, the Lutheran World Federation (LWF). DRC, IRC, and NRC form the ReDSS steering committee.

1. Purpose

On behalf of ReDSS, DRC wishes to engage the services of an audit firm for the purpose of auditing the project (Durable solutions to support social and economic inclusion of displacement affected communities in East Africa) as stipulated under the contract with SDC and annexes therein between Danish Refugee Council and SDC. The audit shall be carried out by an external, independent and qualified auditor.

1. OBJECTIVES AND SCOPE OF THE AUDIT

The objective is to audit the project financial report for the period November 1, 2021 to June 30, 2022 before submission to SDC and to express an audit opinion according to ISA 800/805 on the project financial report of the Project Contract Number 21/04080. The Financial Information of the project/program shall be audited in accordance with International Standards on Auditing (ISA 805) “Special Considerations Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement” as stipulated in the donor’s terms of reference (as per the attached annex)

The audit report is for the sole use of Danish Refugee Council and SDC .

The direct project expenditure is Estimated at USD 120,000 for the period under review.

1. DURATION OF ASSIGNMENT

The 2021/2022 audit (Year 1) will be expected to take place over a period of 14 days from 25th July, 2022. The proposed number of days includes submission of the draft audit report.

1. CONDUCT VISIT TO DRC OFFICE

The financial audit will be carried out in the Danish Refugee Council Nairobi, Regional office along Lower Kabete Road, Nairobi. The required documents and/or information will be availed to the auditor before/during the audit exercise.

REQUIREMENTS/EVALUATION CRITERIA

The evaluation process consists of three stages: 1) Administrative, 2) Technical and 3) Financial. Each stage requires information and documents mentioned in this TOR.

Administrative Evaluation

A bid shall pass the administrative evaluation stage before being considered for technical and financial evaluation. Bids that are deemed administratively non-compliant may be rejected. Documents listed below shall be submitted with your bid.

Document Instructions

A detailed firm’s profile

The firm should be approved by ICPAK/ACCA & the partners should be in good standing with ICPAK/ACCA

The firm must have a physical address and valid business permit

The firm must have at least three INGOs and/or Humanitarian Organizations referees who must be its clients

Partners and key staff curriculum vitae

Tax compliance certificate

Technical and financial proposal

Annex 1; General Conditions of Contract Sign and stamp and submit

Annex 2; DRC Supplier Code of Conduct Sign and stamp and submit

Supplier Profile & Registration Form Complete ALL sections in full of Supplier Profile & Registration form, sign, stamp and submit

Previous contracts for Similar Supplies

Reference document copy of previous contracts for Similar Supplies, within the last 3-5 years. Submit in the technical bid envelope

Note: DRC is a VAT Withholding agent appointed by KRA

If any information required during the administrative evaluation is not provided by the bidders, DRC may choose to request bidders to supply this information within 48 hours of the tender opening. Please note that this is only applicable for documentation that does not alter the details in the bid, such as price information.

Technical Evaluation

To be technically acceptable, the bid shall meet or exceed the stipulated requirements and specifications in the TOR. If a Bid does not technically comply with the TOR, it will be rejected.

Requirements

Technical proposal

1. Should indicate the audit approach, methodology and work-plan for this assignment.
2. The firm must also demonstrate sufficient quality control measures.

Year of Experience

1. The firm should have been in practice for a period of not less than 5 years
2. The firm must have five years’ experience in audit of International Non-Governmental Organizations (INGOs) and/or Humanitarian Organizations
3. List of various donor-funded projects that the audit firm has audited.

Key personnel that will work on this assignment. This should include;

1. The firm must have at least two partners who are full time practitioners
2. Appropriate mix of the audit team and the level of involvement each has in conducting this assignment (partner, team leader, manager, audit senior, audit assistant, or special expertise, if necessary).
3. Audit and accounting qualifications and level of experience (minimum of 3 years’ experience) of the key proposed personnel in relation to audit of donor-funded projects.

Note: If awarded, staff proposed by the firm on the proposal will be the ones to carry out the assignment. Any replacement of the proposed staff during assignment execution will need validation of their qualification and experience by DRC.

References

i) At least three references who must be clients whom the firm previously provided donor-funded project audit services. ( listed above)

• Financial Evaluation

All bids that pass the Technical Evaluation will proceed to the Financial Evaluation. Bids that are deemed technically non-compliant will not be financially evaluated.

1. Financial proposal – should be itemized to show audit fees, taxes and any disbursements. Also note that the total cost of financial offer will be indicated in the DRC Request for Quotation Form and the fees should be quoted in USD.
2. TERMS & CONDITIONS

The auditor must be completely impartial and independent from all aspects of the management or financial interests in Danish Refugee Council.

DRC will evaluate proposals and award the assignment based on technical and financial feasibility in line with DRC Procurement guidelines. DRC reserves the right to accept or reject any proposal received without disclosing reasons to applicants and is not bound to accept the lowest bidder.

Please see complete REQUEST FOR QUOTATION and BIDDING DOCUMENTS at the following link:

https://drive.google.com/file/d/1WS4cFJxeGrFvgwzZJl_BupA-OTmmT0hv/view?usp=sharing