Request for Proposal to provide Project Audit Services

1. Background to DSW Kenya

Deutsche Stiftung Weltbevblkerung (DSW) is an international development organization that focuses on the needs and potential of the largest youth generation in history. We are committed to creating demand for and access to health information, services and supplies, and to securing their right for a brighter future. We achieve this by engaging in advocacy, capacity development, and family planning initiatives, which make sure the youth of today, are empowered to lead healthy and self-determined lives. With our headquarters in Hannover, Germany, DSW maintains country offices in Ethiopia, Kenya & Tanzania and works through a partner organization in Uganda. Additionally, DSW has liaison offices in Berlin and Brussels.

Deutsche Stiftung Weltbevblkerung (DSW) Kenya was registered in 2000 under the NGO Coordination Act of 1990 in Kenya.

PURPOSE: Interim and final financial audit covering the periods April 2019 to December 2020 (interim audit) as well as January 2021 to December 2022 (final audit) for financial system and procedures; compliance with internal control systems; project revenues and costs.

Area of Implementation: Kilifi and West Pokot

Project Duration: 1 April 2019 to 31 December 2022

Project Size: EUR 913,094.17

THE SCOPE OF PRINCIPLES OF THE FINANCIAL SYSTEM AND PROCEDURES:

1. Base the review on the donor regulations, the grant agreement, the modifications to the grant agreement plus the budget details.

2. Complete review of the supporting documentation for all transactions through appropriate receipts and vouchers.

3. Verify the costs for personnel in consideration of its allocation to the project, the completeness and accuracy.

4. Review and confirm the applied exchange rate based on income received in the period subject to audit (in EUR and KES).

5. Review of the internal control systems and its implementation especially in the field of procurement and payments.

6. Verify that the expenditures per output are within the allowable limits-If the difference between budgeted figures and actual figures is more than 30 per cent (over expenditure), it must be justified separately, unless prior authorisation was obtained from the BMZ.

7. The chartered accountant shall structure his auditor’s certificate according to the “Quantitative documentary proof: Statement of application of funds”. He must record the commissions and documents which make up the terms of use made available on which the audit is based.

8. The auditor shall give an account of the documents used for the audit of proper use of funds and compliance with the terms of funding.

The final audit certificate shall state the following (minimum requirement):

"We hereby certify that we have conducted an audit relating to the statement of accounts of DSW Kenya regarding the financing of the “Holistic Action for Adolescents (HAPA)” project.

The audit was carried out on the basis of the following requirements pertaining to the use of funding:

We have looked at all the books and receipts/vouchers, and we confirm that:

1. All income and expenditure have been properly documented by means of receipts or vouchers.

2. The expenditures documented have been made in accordance with the requirements of the terms of the application and the grant approval and are in accordance with the purpose outlined in the application and in the financial plan. Any deviations from the financial plan are explicitly explained.

3. The income documented, which is entered in the accounts as the contribution made by the project-executing agency, the target group and/or other entities in the country where the project is being implemented, is correctly rendered in the accounts, with the source being explained as required.

4. The donor's conditions specified in the project agreement have (not) been met (with regard to the following aspects).

5. Special remarks.

Management letter

When the auditors have specific findings of the audit which fall outside the technical audit report, suggestions, notes, recommendations, or other comments, these should be provided in a separate Management letter.

Reporting Deadlines

Please ensure that the audit is conducted, and the report (inclusive of management letter, if provided) is submitted to DSW Kenya not later than 20th December 2021.

1. Auditor Experience & Qualification

The bidding person/firm should -

• Be registered with the Institute of Certified Public Accountants of Kenya (ICPAK) and its partners must hold current practicing certificates. A Quality Assurance Review by ICPAK is added advantage

• The firm should demonstrate capacity, capability and experience required to undertake the audit within 7 days.

• The firm must have a physical address and valid business permit.

• The firm must have at least three referees who must be its clients.

• The firm must have at least two partners who must be full time practitioners.

• The firm should hold a valid Tax compliance certificate.

• The firm should have been in practice for a period of not less than 5 years.

• The firm should have experinec in auditing BMZ funded project.

2. Evaluation criteria

Interested entities should submit an expression of interest with the following: -

• Confirmation of the Firm's understanding of the Terms of Reference and its capacity and capability to deliver on the Terms of Reference

• Organizational profile preferably demonstrating previous experience working with Not­ for-Profit donor funded entities

• Proof of registration with ICPAK and Partners' Practicing Certificates;

• Financial proposal detailing proposed fees and/or expenses.

Proposals will be evaluated on;

• The technical expertise/ability

• The organizational capacity

• Experience in similar work

• Value addition services besides contracted work

• Favorable references

• Financial proposal