Ethiopian Midwives Association (EMwA) invites interested and eligible audit firm

Overview

  • Category : Auditing Related
  • Posted Date : 07/16/2022
  • Phone Number : 0116189275
  • Source : Reporter
  • Closing Date : 07/29/2022

Description

Ethiopian Midwives Association /EMwA/

Term of Reference (ToR) and Instructions to Bidders (ITB)

For the Bid of Financial Audit

  1. Introduction

Ethiopian Midwives Association (EMwA) was established in 1992. It is the only professional Association representing Ethiopian Midwives in the country. EMwA currently has more than five thousand members located throughout the nation, with eleven chapter offices in different regions of Ethiopia. EMwA has been a member of the International Confederation of Midwives (ICM) since 1993.

EMwA has a vision to see every woman, new born and their family have access to standard midwifery care.

The mission of the association is to promote and enhance the expansion, performance and status of midwifery profession through adopting quality and evidence based practices; adhering to the code of ethics and empowering the professionals.

The primary goal of the organization is to contribute towards the reduction of maternal, neonatal, and child morbidity and mortality and improve quality of reproductive health services at the grassroots level in Ethiopia.

To reach its mission Ethiopian Midwives Association/EMwA/ has been implementing many programs and projects over the last decades in different parts of Ethiopia with and through its committed employees and different partners. EMwAhas worked to bridge the gap in skilled work force of midwifery in Ethiopia. The association has contributed to the health sector of the country in the development and improvement of the professional competency of midwives so that they could deliver high quality integrated and sustainable midwifery services and care.

Objectives of the Audit

2.1 The overall objective of the audit is to provide EMwA with a reasonable assurance on the appropriate use of funds from Partner in accordance with the reporting standards of audit, Project agreement(s) and/or program document, work plan(s) and budgets.

2.2 The audit is to be conducted in accordance with International Auditing Standards appropriate to the nature of projects and in reference to the above stated (2.1) documents

2.3 The auditor expresses an opinion on whether the statement of expenditure for each program is presented fairly, in all material respects, in accordance with the existing accounting policy and the eligible expenditures incurred to implement activities in conformity with the terms of the project  agreements, work plan or program document.

2.4 The statement of expenditure contains the transactions for the audit period and reports on the balance of any funds remaining unspent and due to the funding agency at the end of the project period. The transactions of the programs/projects are also to be checked against the bank account reconciliations.

The bank accounts are the account held by the association into which funds were deposited for the projects contribution from members (membership fee) is deposited. The transactions are to be checked to determine whether they are adequately supported by appropriate documentation that evidences the validity of the transactions reported, and whether the goods and services procured have been received and used to implement the activities in line with the work plan or programs/projects’ document.

2.5 The Auditor must also assess whether the amount reported on the statements of expenditure correspond to the amount recorded in the association’saccounting system and reconcile to the amounts reported on the FACE forms for the audit period.

2.7 The auditor also expresses an opinion whether the funds received from financing partners were used for the purpose intended in accordance with the work plans or projects’ documents, approved budget, and the requirements of the applicable funding agreements.

2.8 The Audit Report must quantify the monetary value of the net financial impact of the audit observations and clearly identify the reasons for qualification if the audit opinion is Qualified, Adverse or Disclaimer.

2.9 The auditor also assesses EMwA’s key internal controls in the areas of project management, organizational structure and staffing, accounting policies and procedures, fixed assets and inventory, financial reporting and monitoring, and procurement and contract administration and reports on specific control weaknesses, audit observations and recommendations to address them, and indication of the risks associated with the weaknesses/observations.

  1. Engagement Context

3.1. The selection of Auditor is established based on a thorough assessment of qualifications and the ToR, as well as a competitive bidding process in accordance with EMwA’s procurement and contracting rules and regulations for commercial services in detail and make recommendation to rectify the differences.

3.2. The audit will be performed in the association’s (EMwA”s) head office, at location where the association maintains all documentation stated in this ToR .EMwA will identify a focal person responsible for liaising with the Auditor in order to ensure efficient coordination and establish deadlines.

3.3 The Auditor will obtain an understanding of the engagement context of the projects subject to this audit, on the basis of the agreements, work plan or projects document signed by financing partners and the association (EMwA) and the additional supplementary information to be provided as required.

  1. Team Composition

The composition of the audit team shall be such that the Auditor is able to comply with the International Standards on Auditing. A mixture of audit team members with different categories of Auditors and variable seniority is required for this assignment. This should include a highly qualified team leader, expert and assistant(s).

  1. Documents to be provided to the Auditor

5.1 In connection with the audit assignment, the association (EMwA) will provide to the Auditor access to all information necessary for the engagement, back up of Peachtree records & reports and the Partner that is relevant to the audit in advance of the engagement, such as:

  1. a) Project specific information (when necessary)
  2. b) Project Agreements and respective Work Plans or Project Documents for the audited period;
  3. c) Statement of expenditures;
  4. d) Financial Authorization and Certificate of Expenditures (FACE) forms included in the statement of expenses,
  5. e) Previous audit and spot check reports;
  6. f) Fixed Asset Register
  7. g) Statement of cash position / operating fund account (if necessary)
  8. h) Inventory Count Sheet
  9. i) Direct payment requests authorized by the implementing partner and included in the statement of expenses if applicable;
  10. j) List of disbursements made by financing partner/agency (if applicable) as part of support services provided to the implementing partners;
  11. k) Any other relevant reports.
  12. l) Additional information that the Auditor may request for the purpose of the audit;
  13. m) Unrestricted access to persons engaged by the association (EMwA) from whom the Auditor determines it is necessary to obtain audit evidence.
  1. Audit Report

6.1 The Auditor will submit an audit report in accordance with the ISA.

6.2 The audit report must include at a minimum:

  1. a) Audit Opinion;
  2. b) Period covered by the audit opinion;
  3. c) Total amount of expenses audited;
  4. d) Audit observations and recommendations;
  5. e) Ineligible expenditures;
  6. f) Key internal controls weaknesses;
  7. h) Statements of expenditure both project based and summarized for the audit period;
  8. i) FACE forms submitted for the audit period.

6.3 The Auditor will clearly quantify the net financial impact in the audit opinion and clearly identify the reasons for qualification (if any). This information will also be collected as part of the reporting process. Non-financial findings that have financial implications might also lead to a modified audit opinion.

6.4 Any indication included in the Audit Report restricting its distribution and/or use will be deemed null and void.

  1. Classification of Findings

7.1 The Auditor will report separately on findings relating to matters identified during the course of the audit.

7.2 Findings and observations with financial impact should be classified under one of the following categories:

  1. a) No supporting documentation;
  2. b) Insufficient supporting documentation;
  3. c) Cut-off error;
  4. d) Expenditure not for project purposes;
  5. e) No proof of payment;
  6. f) No proof of goods / services received;
  7. g) VAT incorrectly claimed;
  8. h) DSA rates exceeded;
  9. i) Unreasonable price;
  10. j) Bank interest not reported;
  11. k) Support costs incorrectly calculated;
  12. l) Expenditure claimed but activities not undertaken;
  13. m) Advance claimed as expenditure;
  14. n) Commitments treated as expenditure;
  15. o) Ineligible salary costs;
  16. p) Ineligible costs (other).

7.3 The Auditor will assess the effectiveness of the key internal controls listed. The key internal controls not operating effectively must be classified with respect to the following subject areas:

  1. a) Project Management;
  2. b) Organizational Structure and staffing;
  3. c) Accounting Policies and Procedures

o General

o Segregation of duties

o Budgeting

o Payments

o Cash and bank

  1. e) Fixed Assets and inventory;
  2. f) Financial Reporting and Monitoring;
  3. g) Procurement and Contract Administration;
  4. h) Other internal control weaknesses.

7.4 The audit observations should be categorized according to the priority of the audit recommendations and the possible causes of issues.

  1. Other Requirements

8.1 Reporting – Language

8.1.1 The Audit Report must be presented in English as to be agreed between EMwA and the Auditor, prior to the audit engagement.

8.2 Timetable for Submission of Draft and Final Audit Reports

8.2.1 The timeline for the milestone delivery will be stipulated in the Statement of Work. The Auditor will respect the procedures and the timetable for the conduct of the field work and submission of the reports (including the draft and final reports). If the time tables for comments are not respected by the management of EMwA, the Auditor will document such delays in his/her working papers, and report thereon in the audit report

8.2.2 The audit working papers and related documents shall be available to EMwA when the need arises and shall be kept by the Auditor for a minimum period of five years after the issuance of reports. They must be made available to the client (EMwA) for review upon request, at any stage during this period.

8.3 Submission Process

8.3.1 The submission of final deliverables to the Executive Board will be made through direct submission in paper and electronic format.

8.4 Follow-up Procedures

8.4.1 The Auditor is required to submit the draft report to the management for comments. The management must provide its comments, if any, within five days of the Auditor’s submission.

8.4.2 After finalizing the Audit Report, the Auditor will submit it to the Executive Board, and present it in front of the General Assembly for discussion. The Executive Board of EMwA will follow up with the management of EMwA to discuss and agree on the measures and remedial actions to be taken. The Auditor may, where appropriate, be requested to provide clarifications or consider additional information with regard to the audit and reports.

8.5 Other Observations

8.5.1 Cases which indicate fraud or presumptive fraud must be brought to the immediate attention of the highest management body (Executive Board), without waiting for the issuance of the audit report.

8.5.2 The Auditor and staff shall maintain confidentiality regarding any information obtained in connection with the audit services undertaken.

8.3 The assessment of key internal controls and report on key internal control weaknesses is performed at the association level and is not project specific

Instruction To Bidders

All interested Audit firms who meet the requirements described in this ToR and bid announcement are expected to use the following instructions to bidders as a guideline:

  • Bidders should use the TOR, bid announcement and instruction to bidders as a guideline
  • Bidders should submit their Technical & Financial proposal by separate envelope ONE Original and ONE Copy enclosed in one outer Envelope by mentioning the title: “Financial Proposal-Original/Copy” & “Technical Proposal-Original/Copy”.
  • Bidders are expected to deposit their bidding documents in the bid box arranged for this purpose in EMwA’s Reception room before the deadline.
  • The financial proposal should be submitted in detail separately in local currency (ETB) including taxes and other related costs.
  • The Audit Firms (bidders) must include /attach the following in their Technical Proposal:
  • Methods and techniques of performing the investigation audit
  • Renewed Professional License
  • Application procedure /How to apply:
  • Detailed work schedule and time frame
  • CV of the proposed professionals /auditors with testimonies and supporting documents
  • Experience letters and recommendations of the firm from its previous clients
  • Short description of the firm profile (company profile)
  • Renewed Business License
  • Taxpayer Identification Number (TIN) certificate
  • VAT Registration certificate
  • Price (or quotations) of the activity; identifying the net price and government taxes separately
  • The Bid will be opened in the presence of bidders or their legal representatives on the date and time specified in the bid announcement.
  • Bidders getting less than 70% in the technical proposal evaluation shall be rejected.
  • Only bidders who scored 70% and above in the technical proposal evaluation will be screened for financial proposal evaluation and those who failed in the technical evaluation will receive their financial proposal envelop unopened after technical evaluation result is announced to bidders.
  • In the financial proposal evaluation, the highest point shall be given to the lowest priced bid, and vice versa.
  • The winner will be the one whose score is the highest point in the total sum of results of the technical and financial proposal evaluation. From the total points to be given for proposals submitted by the bidders, the share of technical proposal shall be 70% and the remaining 30% shall be the share of financial proposal.
  • The evaluation will be done by EMwA’s Bid evaluation committee and automatically be notified through EMwA’s notice board.
  • Following notification of awards, bidders can submit their complaint (if any) within 5 working days after notification of award.
  • Successful bidder will sign contract with the association within 5 days after notification of award.
  • Successful bidder is required to deposit Performance Bond (Bank Guarantee) of 10% of the contract price before signing the contract in the form of cash or CPO.

All interested firms who meet the requirementsare invited to apply for the bid:

  • Interested firms should submit their Technical proposal & Financial proposal sealed by separate envelopes ONE Original and ONE Copy enclosed in one outer Envelope by mentioning the title: “Financial Proposal-Original/Copy”& “Technical Proposal-Original/Copy”.
  • The financial proposal should be submitted in detail separately in local currency (ETB). Financial proposals should include professional fees, VAT and other related costs
  • Technical proposals should include:-
  • Methods and techniques of performing the investigation audit.
  • Detailed work schedule and time frame
  • CVof the proposed professionals /auditors with testimonies and supporting documents
  • Experience letters and recommendations of the firmfrom its clients
  • Short description of the firm profile (companyprofile)
  • Renewed Business License
  • Copies of Tax Identification (TIN)&VAT certificate
  • Renewed Professional License
  • The winner will be determined after evaluating the Financial & Technical proposals, which will be done by the EMwA’s Bid evaluation committee, and automatically be notified through EMwA’s notice board.
  • The detailed ToR is available at EMwA’s head office during working hours Monday through Friday and interested Firms shall use the ToRas a guideline.
  • Biding documents submitted after the bid is closed shall not be accepted.

Technical Proposal Evaluation Criteria

In order to identify the successful bidder, Bid Evaluation Committee of EMwA will conduct detailed evaluation of bids it receives in accordance with the criteria set in this ToR and Bid announcement. Quality and Cost-based Selection shall be applied for the procurement of this service.

Technical Proposal Evaluation Criteria for this bid are:

S.No. Technical Proposal Evaluation Criteria Weight
1 Understanding the ToR 10%
2 Number of Certified Auditors by Internationally accredited Institutions who are assigned for this assignment 25%
3 Experience of the firm in the audit similar NGO finances that is witnessed by letters from clients 25%
4 Methods and techniques of performing the audit 20%
5 Detailed work schedule and time frame 20%
Total 100%

Interested bidders can submit their Financial & Technical proposal from Monday to Friday in the  Morning 2:30 -6:30 & Afternoon 7:30 – 11:30 local time, to EMwA’s Office in Addis Ababa, around 22 on the way to Lem Hotel, Equatorial Guinea Road, behind Meklit building and Elsa Kollo within 10 (Ten) days of this announcement. For further information please contact our office through Tel: +251 116 18 92 75.

  • Note: – The bid will be closed at 04:20 p.m. and opened at 04:30 p.m. in the Afternoon on Friday, July 29, 2022 at EMwA’s Head Office. EMwA reserves the right to cancel, to accept or reject the entire or partial part of this bid.