TORS FOR THE PROVISION OF EXTERNAL AUDIT SERVICES TO ACTED FOR THE PERIOD 2022 At ACTED

TORS FOR THE PROVISION OF EXTERNAL AUDIT SERVICES TO ACTED FOR THE PERIOD 2022

1. Background

ACTED, is a French charity, registered as an “association française loi 1901”, overseen by a Board and a Bureau, with the support of an executive team based in the Headquarters in Paris, working alongside 6,300 staff across 43 countries in Europe, Africa, Asia, the Middle East, and Central America. ACTED is legally registered in the Republic of Uganda under section 16 of the Non-Governmental Organizations Act, with registration file number MIA/NB/2007/03/4177.The organization’s vocation is to save lives, assist vulnerable populations and bring hope to those in need for a better future. Its projects have diversified activities such as emergency relief, impact assessments, food security, health promotion, economic development, education, microfinance, institutional support, and regional dialogue as well as cultural promotion.

1.1 Professional Audit and Assurance Services

• ACTED is soliciting Financial and Technical proposals from qualified firms of Certified Public Accountants to audit the Organization’s fiscal year ending 31st December 2022 (not specific projects). Total estimate expenditure for the financial year 2022 is EUR 1.7M

2. Objectives and Context

The overall objective of this external audit is to provide ACTED with an independent professional opinion whether the financial statements represent a true and fair view of the state of affairs at the reporting date and are prepared in compliance with the relevant regulatory frameworks and administrative procedures.

The broad objectives of the audit will be as follows:

• To evaluate the effectiveness of financial, management & governance, programmatic and administrative systems & structures of the organization and follow up on outstanding recommendations from previous audits and other financial reviews.
• To review the effectiveness of ACTED Uganda risk management systems and processes.

1. Standards and Ethics

The auditor is responsible for forming and expressing opinions on the financial statements. The auditor would carry out the audit of the projects in accordance with the International Standards on Auditing (ISA), as promulgated by the International Federation of Accountants (IFAC). As part of the audit process, the auditor may request from the implementing agency written confirmation concerning representations made in connection with the audit.

1. Approach and Methodology

• Audit planning and preliminary risk assessment
• Assessment of risks and identification of internal controls
• Audit of controls and determination of levels of control assurance over processes
• Substantive procedures
• Processing information and communication

1. Audit Scope

• The audit will be carried out in accordance with International Auditing Standards (ISA) 800 Special Considerations.
• Audit period is 1 January to 31 December of the year 2022.
• The auditor/firm will Obtain sufficient audit evidence to substantiate in all material respects the accuracy of the information contained in the financial statements.
• The auditor/firm will obtain an understanding of internal controls and perform tests of internal controls.
• Issue an independent Auditor’s Report that states but not limited to the following:

1. An Opinion (or disclaimer of opinion) as to whether the Financial Statements present fairly in all material respects in conformity with the Generally Accepted Accounting Principles.
2. A report on internal controls which shall describe the scope of testing of internal controls and the results of the tests.
3. A schedule of findings and questioned costs that includes a summary of the auditor’s results.
4. Available Information

The auditor should have access to all legal documents, correspondence, and any other information associated with the projects and deemed necessary by the auditor. The auditor will also obtain confirmation of amounts disbursed and outstanding at the Bank. Available information should include copies of the relevant: project appraisal document; financing agreement; financial management assessment reports; supervision mission reports and implementation status reports.

1. Expected Results.

The key deliverables for the annual external audit are a signed external audit report and accompanying management letter to be received by the Deputy Country Director not later than 9th June 2023. The auditor will submit 4 copies of the Audit Report and Management Letter.

6.1 Management Letter:

The management letter should summarize the observations about the internal control environment and recommendations for future improvements. The elements to consider would include:

• Comments and observations on the accounting records, systems and controls that were examined during the audit.
• Specific deficiencies or areas of weakness in systems and controls and recommendation for improvement.
• Matters that have come to the attention during the audit which might have significant impact on the implementation of activities.
• The letter shall also report on the extent to which management has responded to the deficiencies identified in previous year’s audit.
• Any other matter that the auditor considers significant to report to management.

1. Mandatory Requirements

• The Auditor and/or the firm should be a registered member of the national accounting body. I. e Institute of Certified public accounts of Uganda (ICPAU) or auditing body or institution, which in turn is member of the International Federation of Accountants (IFAC).
• Company profile with verifiable experience in conducting audit and assurance services in the Humanitarian organizations with various donors such as USAID, ECHO, GIZ, EU, UN-agencies, and WFP.
• Proposed team composition, qualification, and experience of key personnel who will undertake the assignment. (CVS) to be attached.
• References from NGOs that the audit firm has audited in last 3-5 years.
• Tax compliance certificate from URA.
• A detailed methodology and work plan including estimated number of staff/days per auditors deployed.
• Financial proposal to conduct the annual audit for ACTED, along with audit fees.
• Prices should be in UGX – inclusive applicable taxes.
• Key contact for the audit assignment

8. SPECIFIC CONDITIONS:

• A Non-Disclosure Agreement may be signed at a later stage.

9.Auditor’s Responsibilities:

• Will commence audits services on 29th May 2023
• Will provide ACTED with final audit report at least 10 working days after the completion.
• To respect the NGO Bureau Statutory deadline of June 30th, the audit report must be received on or before 9th June 2023.
• Will ensure to provide ACTED with independent, ethical, relevant, and good quality reports highlighting key risk and potential solutions.

The final decision on the selection of the firm to conduct the audit will be made by the Deputy Country Director. The final agreement will be in the form of a written contract.

All questions and correspondence should be addressed by email to uganda.tender@acted.org

Proposals should be submitted to uganda.tender@acted.org cc tender@acted.org not later than Thursday 18th May 2023.

Attachments should not exceed 10MB, in an event it exceeds you can share the files using drop box, google drive or just send in two separate emails.