External Auditor to Observe Stock Count At Catholic Relief Services

Please visit: https://www.crs.org/about/bid-opportunity for complete details, requirements, and any attachments regarding this RFP.

Background:
CRS Niger with inventory of Distribution Goods such as donated and purchased Food
Commodities, Pharmaceuticals, Bed nets, Pre-positioned goods, Program Materials,
Construction Materials, etc., valued USD 750,000 or greater by the end of FY2021 (on September
30, 2021) are required to engage an independent external auditor to perform observed physical stock
count for the fiscal year and issue a report containing their opinion as to the accuracy of the
count results.

Qualifications:
The eligible audit firms should meet the following criteria:

1. Certified and registered to operate by governing law of the local government.
2. Qualified under the United States Government’s “Yellow Book” audit.
3. Have at least three years’ prior experience in undertaking physical inventory for
   food aid programs.
4. Have adequate experienced staff for the assignment.

Objective:
The auditor is required to observe the year-end physical count and determine:

1. The physical existence of the inventory.
2. The physical condition of the inventory.
3. The effectiveness of the physical count procedures.
4. The validity and completeness of receiving & issuing documents and inventory records.

Procedure:

1. Representatives of the audit firm attend the physical count at the end of the
   fiscal year to observe the counting process and the diligence to capture relevant data in the
   count sheet.
2. The auditors familiarize themselves with the warehouse layout,
   stacking process, documentation and count sheets before the count commences.
3. The count includes all purchased and donated food commodities, pharmaceuticals, bed nets,
   pre-positioned goods, program materials, construction materials, etc. for which CRS has title. The
   inventories may be located in CRS managed warehouses and/or outside storage facilities due to lack
   of space. Inventory distributed to sub-recipients before September 30, 2021 does not constitute
   inventory of CRS.
4. Perform cut-off test on receiving, dispatch and warehouse transfer documents and
   verify against the warehouse registers and records.
5. Check the composition of CRS inventory count team. Staff responsible for
   warehouse
   management should not be part of the count team. But they can be present during the count to respond and clarify to queries raised by the count team. Verify that the role of the count team is well defined and understood by all team members.
6. Conduct count and ensure to countersign on count sheets to attest observation of the physical
   count.
7. Note the general warehouse management situations such as stacking, existence
   and functioning of warehouse safety and security equipment.
8. Ensure the proper use and monitoring of inventory count sheets and tags by the count team.
9. The movement of goods has to be suspended during the count or sufficient care is exercised if
   movement is allowed due to management approved and compelling reasons.
10. Count is done simultaneously on all warehouses. Otherwise, the auditors should ascertain the
    existence of adequate measures to control transfer of items from one warehouse to another.
11. Identify items held on behalf of third parties and not qualified as inventoriable goods for CRS
    and document the count separately.
12. Make a final tour of the warehouse to make sure that all items are counted before concluding
    the count.
13. Reconcile the physical count with stock cards, register books and Food log records maintained
    by CRS office.
14. Review shipping documents, bill of lading and packing lists of the fiscal year.
    Compare quantities shipped as per these documents with quantities in inventory records. Include, in
    the final report, quantity and type of commodities in transit at the end of the
    fiscal year. The commodities in-transit might be at sea, port or through in-land transportation
    but have not yet received at CRS warehouses before or on September 30, 2021.
15. Examine discrepancies identified in the course of count and on reconciliation with
    inventory records. Recount some or the entire inventory items until satisfied with the count
    result.
16. Consult CRS senior management in case of disagreement in the count and when recounting the
    whole inventory is necessary implying extended timetable and also affecting the normal
    warehouse operations.

Deliverables:

1. Issue a report and opinion detailing the following:
   • Commodity type, unit of measurement, warehouse location, donor source and packing
   list and other available identifications. Separately report in-kind and purchased inventories and
   indicate items in poor physical condition, damaged or unfit for human consumption. Report shortages
   or overages and other irregularities identified during the count and reconciliation with inventory
   records.
   • The report should be prepared using the same unit of measure (such as Kg, Pieces,
   etc.) as the one used for reporting Monthly Inventory Report to HQ.
2. Submit draft report to CRS management for review and comment on or before October
   15, 2021.
3. Incorporate management comments via adding CRS Management response to the report and issue the
   final report on or before October 29, 2021.
4. Send one original copy of the report directly to external auditors of CRS, RSM,
   no later than November 19, 2021.
   Communication
   During the procurement process which includes both the solicitation and evaluation
   stages all communications will be directed to the Procurement
   Specialist Kathleen Mackin (kathleen.mackin@crs.org). Upon award, communication between
   selected bidder and Program Senior Advisor can commence.

Clarifications
Questions must be submitted via e-mail to kathleen.mackin@crs.org no later than close of business
on August 26ᵗʰ 2021 The solicitation number indicated above must be included in the subject line.
Responses will be provided to all known offerors. CRS is under no obligation to respond to questions that are not received prior to the aforementioned deadline.