Terms of Reference and Request for Proposal – External Audit services and Tax Health Check Consultancy at CBM Uganda Country Office

1. Background

Christian Blind Mission (CBM) Uganda is an International disability and development organisation which works in cooperation with local partner organizations complementing the government’s development agenda. CBM seeks to engage licensed Certified Public Accountancy firms to provide auditing services for its financial statements for the financial year ending December 2022, with the option of auditing its financial statements for the subsequent two (2) financial years. The CPA firm will also be expected to undertake a comprehensive tax health check for its Country Office.

2. Objective

· The audits are geared towards carrying out an independent review and providing an audit opinion on the overall financial statements of CBM Uganda Country Office(UCO) in line with the statutory requirements and conducting an independent appraisal of key financial and operational controls for Financial Year 2022.

· To plan, undertake, and advise CBM on its tax health status by conducting an in-depth review of CBM Country Office Uganda operations in light of Income Tax and other relevant or applicable laws and statutory obligations of Uganda. The aim of the exercise is to mitigate any tax risk exposure and assure tax and statutory compliance of the CBM Country Office. The period under review is 1st January 2021 to 31st December 2021

3. Scope

1. The audit of the UCO will be carried out in accordance with International Standards on Auditing (ISA) promulgated by the International Auditing and Assurance Standards Board (IAASB), and will include such tests and auditing procedures as the auditor will consider necessary under the circumstances. Special attention should be paid by the auditor as to whether the:

i. Goods, works, and services financed have been procured in accordance with information as stipulated in the organization’s policies and procedures.

ii. All necessary supporting documents, records, and accounts have been maintained in respect of all project activities and expenditures reported. Clear linkages should exist between the books of accounts and the financial statements presented to;

iii. The funds have been used in accordance with the established rules and regulations of the Christian Blind Mission and only for a purpose of which the funds were provided;

iv. National laws and regulations have been complied with, and the financial and accounting procedures approved for the project (e.g. operational manual, financial procedures manual, etc.) were followed and used;

v. Assets procured from project funds exist and there is verifiable ownership by the Uganda Country Office project or beneficiaries in line with the financing agreement.

vi. An up-to-date inventory list is available at the end of every calendar year.

vii. To determine whether CBM Uganda is compliant as far as taxes on personal income is concerned for all its staff

2. Undertake a comprehensive tax health check on its Country Office, Including;

i) Report on compliance and/or tax exposure to applicable other taxes such as social security contributions etc.

ii) Review consultancy and other similar contracts to assure compliance with local laws such as WHT and that these (WHTs) are accurately computed, deducted, and remitted per the provisions of tax laws.

iii) Advice CBM on tax planning to assure compliance

iv) Any other tax compliance matter(s) that affects CBM as a Not for Profit organization and its operations

v) Advise or support in acquiring tax exemption.

4. Deliverables

i) Audit Report

The auditor will issue a report with an opinion on the financial statements (FSs). The annual audit report of the project accounts should include a separate paragraph highlighting key internal control weaknesses and non-compliance with the financing agreement terms.

ii) Management Letter

In addition to the audit report, the auditor will prepare a management letter, in which the auditor will:

i) Give comments and observations on the accounting records, systems, and controls that were examined during the course of the audit;

ii) Identify specific deficiencies or areas of weakness in systems and controls, and make recommendations for their improvement;

iii) Report on the degree of compliance of each of the financial covenants in the financing agreement and give comments, if any, on internal and external matters affecting such compliance;

iv) Communicate matters that have come to his/her attention during the audit which might have a significant impact on the implementation of the project;

v) Give comments on the extent to which outstanding issues/qualifications issues have been addressed;

vi) Give comments on previous audits’ recommendations that have not been satisfactorily implemented; and

vii) Bring to the recipient’s attention of any other matters that the auditor considers pertinent, including ineligible expenditures.

Ideally, the management letter should also include responses from the implementing agency to the issues highlighted by the auditor.

iii) The firm will provide a detailed report covering the scope of work including an analysis of (if any) potential penalties and interest arising from non-compliance.

Further, the firm will be required to meet the following:

· CBM Country Director and Finance Manager to assess the current situation in order to gain an understanding of the current status.

iv) Timeline

The firm will begin on 13th/June/2022. A report is to be produced for comments by

24th/June/2022 and a presentation of the report to the Country Office by the 28th/June

/2022

How to Apply and Tax auditors’ experience

The successful audit firm should be registered and have a practicing license from the Institute of Certified Public Accountants of Uganda (ICPAU) and should be permitted to work in the host country.

The key tax team will comprise of at least:

a) Engagement partner with over 10 years’ tax experience with sound and thorough knowledge of Not for Profit Organizations and Uganda income tax laws.

b) A tax manager with at least 5 years of experience in the area of tax health checks and advising clients.

c) A tax Team Lead with over 3 years’ tax experience.

d) Sufficient assistant tax auditors with adequate experience and professional qualifications.