Management Science for Health Invitation for Bid for External Audit Services

MSH-management-Sciences-for-Health-logo-reportertenders-3

Overview

  • Category : Auditing Related
  • Posted Date : 04/18/2021
  • Phone Number : 0116613566
  • Source : Reporter
  • Closing Date : 04/27/2021

Description

Management Science for Health

Invitation for Bid

External Audit Services

Terms of Reference

 

Background: – Management Sciences for Health (MSH) is a non-governmental not-for-profit organization registered under the laws of the State of Massachusetts, USA, with the registered office at 200 Rivers Edge Drive, Medford, Massachusetts, 02155, USA. MSH’s mission is to save lives and improve the health of the world’s poorest and most vulnerable people by closing the gap between knowledge and action in public health. MSH envisions a world where everyone has the opportunity to a healthy life.

 

MSH opened its office in Ethiopia in the year 2003 G.C. Since then, it has been working on HIV/AIDS, tuberculosis, pharmaceutical services, supply chain management, and leadership, management and governance. Currently, MSH Ethiopia has implementing 3 projects, namely Medicines, Technologies and Pharmaceutical Services (MTaPS), USAID Eliminate TB Project and Health Workforce Improvement Program (HWIP).

 

MSH Ethiopia has its Country Office based in Addis Ababa, Regional Project Offices in Oromia (based in Addis Ababa), Amhara Region (based in Bahr Dar), SNNPR and SIDAM Regions (based in Hawassa) and Tigray Region (based in Mekele).

 

MSH Ethiopia obtains its funding from governments, foundations and private agencies. The current main donor is USAID.

 

Pursuant to Agency for Civil Society Organization (ACSO) Proclamation No. 113/2019, MSH is registered as a Foreign Organization with the ACSO with registration number 0886. Its current registration is valid until July 31, 2022.

 

We trust that the information contained in this TOR, provides you with sufficient information about our organization. More information can be obtained by visiting our office located at Yeka Sub-City, Woreda 11/12 House No. 501-511, Tel. +2511161613563 / +251 116 613566, REBECA Building, 5th floor or by sending an e-mail request to emesfin@msh.org.

 

Financial Management at MSH Ethiopia: – MSH Ethiopia, whose Country Office is located at Yeka Sub-City, Woreda 11/12 House No. 501-511, REBECA Building, 5th floor Addis Ababa, is led by the Senior Management Team (SMT) consisting of Project Directors, Deputy Director and Director of Regional Operations and Director of Finance and Operations. The SMT is the highest decision-making body at the Country level.

 

MSH Ethiopia’s Finance Unit is headed by a Sr. Finance and Grants Manager who reports to Director for Finance and Operations. The Sr. Finance and Grants Manager is responsible for the overall management of the financial activities of the Country Office and all regional offices.

MSH Ethiopia Country Office Finance unit requests and receives funds required for implementation of all administrative and program activities from the MSH headquarters in the United States, through submission of monthly fund request to MSH Regional Office in Abuja, Nigeria.

 

MSH Ethiopia Regional Offices process payment only through petty cash, all non-petty cash payments are made by direct transfer of payments to the vendor by the central office.  The Country Office Finance Unit consolidates the country office and all regional project offices’ financial   transactions and reports them to the Regional Management Unit and Home Office monthly. MSH’s financial ledgers are maintained using Online QuickBooks Accounting Software. The Country Office Finance Unit is responsible for producing year-end financial statements for local external audit.

 

Audit Timetable

 

Activity

Date

MSH Financial Year-end

June 30th, 2021

Auditors on site for audit planning and related procedures

June 1, 2021

Audit Completion Meeting (Exit Meeting)

July 25, 2021

Signoff and delivery of audited financial statement and Auditors’ Reports

August 31, 2021

 

Specification of Requirements

 

Objectives: – MSH Ethiopia would like to invite audit firms for examining its financial statement for 3 consecutive fiscal years starting with the fiscal year ending June 30th, 2021.  The objective of the audit is to express an opinion on the financial statements of MSH Ethiopia in accordance with International Standards on Auditing and the requirements of the Agency for Civil Society Organization of Ethiopia (ACSO). Interested bidder shall be a qualified audit firm with valid license from the Accounting & Auditing Board of Ethiopia (AABE).

 

Scope of the Audit

 

  • Audit the year-end accounts in accordance with International Standards on Auditing and the requirements of the ACSO.
  • Conduct other procedures to verify compliance with the ACSO compliance requirements.

 

  • Provide Management report on specific deficiencies and areas of weaknesses in systems, internal controls, and compliance that were observed during the audit, including recommendations for corrective actions.
  • Communicates, in a timely manner, matters that have come to the attention of the auditor during the audit which might have a significant impact on the organization.

 

Further details of audit services

 

  • Advise on any unexpected or adverse findings and discuss resolution with management
  • Report any significant audit issues in accordance with the applicable auditing standards.  
  • Give details of any material errors or fraud identified in the course of the audit, and report the findings as soon as it is discovered, to those charged with Governance.
  • Provide views on qualitative aspects of the organization’s accounting practices
  • Present the final audit report to the management.
  • Liaise as required with MSH Global Auditors, answering referral points as required.

 

Expertise and Experience in the Charity sector – The Audit firm shall have  a valid License from the Accounting & Auditing Board of Ethiopia and have an experience of auditing international NGOs like MSH Ethiopia for at least a minimum of Five years.

 

Value for Money –  We expect our professional advisers to be proactive in the relationship, sharing experience, knowledge, and ideas so that the audit adds more value than just meeting statutory requirements. We endeavor to strike a balance on reducing the overall cost of external audit services whilst at the same time maintaining and enhancing value.

 

Audit Firm Staff Assigned for the Audit Engagement

Provide a list of personnel assignments, with details including title, professional certification, number of years of experience, estimated number of hours on MSH audit engagement, and other relevant details, for the following levels at a minimum.

  1. Audit Partner
  2. Audit Manager
  3. Audit Senior
  4. Audit staff

 

Communications and Project Management – The bidders should state their assigned senior staffs for communications and project management purposes.

 

Risk Based Approach – The bidders should describe their risk-based audit approaches for this assignment.

 

Contract Term – The Successful audit firm will enter into a contract agreement with Management Science for Health to provide the audit services for 3 consecutive fiscal years starting with the fiscal year ending June 30th, 2021.

 

Tender Submission Content – To facilitate the evaluation process, all proposals submitted must follow the following outlines. Failure to supply all or any part of the following requested information may result in a proposal being excluded from the evaluation process.

 

  1. An introduction to the firm and audit experience in the charity sector and how you invest in developing your expertise in the sector.
  2. The proportion of the firm’s work that relates to charities and how many partners lead the charity audits.
  3. How many charities audits you have won and lost in the last 2 years and how many INGO audits you are currently handling.
  4. Evidence of the audit team’s track record, listing those INGO audits that have been carried out by team members. We are looking for a high level of established experience and knowledge so rather than provide a long generic list please list clients where partner and manager are actively involved in the audit. In addition, please specify how long the audit partner has been working with the stated clients. Please provide contact details for four client referees whom we may contact during the tender process
  5. The names and CVs of key members of the proposed team for delivering the requirements. Demonstrable expertise in wider areas such as charity law, risk management and evaluation is desirable
  6. A description of the experience the team will bring to the role from auditing activities carried out by INGOs and how you think this will benefit MSH Ethiopia.   
  7. Details of the team’s experience of working in challenging environments. An important aspect of the relationship between the organization and its External Auditors is the requirement that our audit team has an understanding of the environment in which we operate.
  8. A description of your approach to the audit showing how you will:
    1. Determine your audit strategy and undertake audit planning
    2. Address matters of audit scope and materiality
    3. Identify and respond to risk and critical audit issues
    4. Control and co-ordinate the audit process and report your findings
    5. Ensure appropriate and timely responsibility for decisions on the audit
  9. A description of your internal processes used for quality assurance and your internal practices to ensure compliance with independence requirements and freedom from conflict of interest.
  10. A description of how you intend to balance the need for audit reliability within a complex environment and an efficient and cost-effective audit process.
  11. Other services that you provide.
  12. The audit fees and the basis of charging expenses. Also, your proposal for setting and agreeing fees in future years. We want to see a realistic fee. Please do not assume that another non-audit work will automatically be awarded to the selected auditor.

 

Additional Information to consider

  1. Shortlisted companies may be invited to present and discuss their proposals.
  2. MSH Ethiopia will not be liable to reimburse any costs incurred by the bidders during this tender process.
  3. The total audit fee should be inclusive of VAT.
  4. The bidders shall also state their field audit per diem and other reimbursable costs related to this audit assignment along with the price offer – if field trave is required.
  5. The successful bidder who will be awarded the tender should by no means pass it to other parties to undertake the audit work

 

Evaluation Criteria

 

Financial and technical proposals shall be submitted in separate sealed envelopes. In view of getting qualified and highly competent auditor, the technical proposal will have a weight of 70% while the financial proposal shall have a weight of 30 %.

 

We will evaluate the bids based on the requirements above using the following weighting:

 

Criteria

Weighting (%)

1. Technical Proposal Evaluation (70%)

 

1.1. Proven experience of the proposed team in providing relevant audit (charity sector, medium size organisations, international team composition

20

1.2. Previous experience in similar international NGO audit assignment

10

1.3. Reputation/Credibility

10

1.4. Timeframe and work plan

10

1.5. Methodology and approach

20

2. Financial Proposal Evaluation (30%)

30

               Total

100

 

Queries

 

All queries in connection with this tender should be made by email to etprocurement@msh.org and procurement@msh.org,

 

To ensure a fair and transparent tender process, no approach of any kind in connection with this tender should be made to any other person within or associated with MSH Ethiopia. Failure to comply with this may result in disqualification from the process.

 

Offer Return:

 

Your completed response to our tender and associated documents must be submitted in a separate envelope BOTH IN HARDCOPY AND CD COPY for TECHNICAL PROPOSAL and FINANCIAL PROPOSAL clearly marked “Proposal for MSH ET FY2021 EXTERNAL AUDIT” on or before April 27th, 2021 at 04:30 PM. They should be addressed to:

 

Procurement Specialist

Management Sciences for Health Ethiopia,

P.O. Box 1157 Code 1250

Addis Ababa

Ethiopia

 

The bid package, as described above, should be placed (dropped into) the bid box prepared for this purpose and placed at MSH ET Office Reception Desk located Yeka Sub-City, Woreda 11/12 House No. 501-511, REBECA Building, 5th floor Tel +2511161613563 / +251 116 613566 or Mobile +251912 016257