CARE INTERNATIONAL IN SOMALIA/SOMALILAND
Period of Audit: July 1st 2019 – 30th June 2020
TERMS OF REFERENCE (TOR) FOR AUDIT SERVICES
TABLE OF CONTENTS
- BACK GROUND.. 3
1.1 About CARE Somalia/Somaliland. 3
1.2 Accounting and Financial Management Information. 3
1.3 Contact Details. 4
- ACCOUNTING STANDARDS. 5
- AVAILABLE FACILITIES. 5
- AUDIT SCOPE. 5
- 1 Scope of Work. 5
4.2 The Audit Report 6
4.2.1 Contents of Audit Report 6
4.2.2 Submission Date of the Audit Report 7
4.3 Management Letter. 7
5.0 REQUIREMENTS. 7
1. BACK GROUND
1.1 About CIK
CARE International in SOMALIA/SOMALILAND is a development and humanitarian organization with a goal to reduce poverty at the household level and provide relief in emergencies. We have worked with communities in Somaliland, Puntland & South Central, meeting relief needs and phasing in long-term projects.
CARE has been providing emergency relief and lifesaving assistance to the Somali people since 1981. CARE Somalia is currently operational in Somalia and Somaliland. The main programs are Rural Women Program, the Urban Youth Program, and the Emergency programThrough a process of extensive research and strategizing that started in 2009, CARE has developed two multisector development programs that address the underlying causes of poverty and vulnerability in Somalia/Somaliland. Rural Women and Urban Youth programs are informed by CARE International’s program approach which focuses on addressing the multiple drivers of poverty and vulnerability. These 2 programs are taking a longer-term approach to help us tackle a broad range of issues in local communities and to hold ourselves accountable for achieving significant and measurable results. Our main program activities since then have included projects in water and sanitation, sustainable pastoralist activities, civil society and media development, small-scale enterprise development, primary school education, teacher training, adult literacy, and vocational training. We work in partnership with Somali and international aid agencies, civil society leaders and local authorities.
CARE’s capacity and experience allow us to deliver fast and effective assistance whenever an emergency happens which is done through the Emergency Program which normally has short term projects. Our emergency program focuses on supporting Internally Displaced Persons (IDPs) and vulnerable host populations in five main sectors: Food Security/Livelihoods, Water, Sanitation and Hygiene (WASH), Health, Nutrition and Education in Emergencies (EiE). Also, we provide protection support to the people displaced by drought and conflict, helping them secure their safety and improve their relationships with the communities hosting them.
1.2 Accounting and Financial Management Information
CARE Somalia/Somaliland processes are guided by Policies and Procedures contained in the CARE Operations Manual and the Finance Manual. The Operations Manuals documents policies on the following:
Per Diem and Lodging
CARE Somalia/Somaliland uses a financial management system known as People Soft. The system accommodates transacting in both foreign Currency and Base Currency which is US Dollars. Donor Funds received are coded to the relevant Fund code and expenses incurred are also charged to the relevant fund code hence allowing for expense tracking, monitoring and reporting.
Procurement requests are raised by requestors across the organization regardless of their location. However, procurement and financial transactions processing are done in three hubs namely Hargeisa, Garowe and Mogadishu.
1.3 Contact Details
Wadajir District, Lami yaraha street,
close to National Eye hospital, Mogadishu, Somalia.
2. ACCOUNTING STANDARDS
CARE SOMALIA/SOMALILAND follows USA GAAP/International accounting standards. Further, it follows the accounting guidelines as set out in the CARE Financial Manual and implements projects in conformity with Donor Standards and Regulations.
3. AVAILABLE FACILITIES
CARE Somalia’s/Somaliland’s operations are transacted at the three hubs and each hub retains the documents in respect to transactions generated in their area. In addition, all the financial documents are scanned. The auditor will be expected to specify the sample transactions required prior to the commencement of the audit to facilitate remittance of the scanned support documents from the hub offices. In addition, the auditors are expected to use the scanned documents.
The Auditors will have full and complete access at any time to all records and documents (including books of accounts, legal agreements, Program Grant Agreements and Budgets, minutes of committee meetings, bank records, invoices and contracts) and employees. The Auditor will also have right of access to information on banks, consultants, contractors, partners and other persons or firms engaged by CARE.
4. AUDIT SCOPE
4. 1 Scope of Work
The audit will examine the Balance Sheet records for CARE SOMALIA/SOMALILAND. The statements will be extracted from the financial system for the audit period 1st July 2019 to 30th June 2020. Specifically, the Audit will include but not limited to:
o Audit CARE Somalia/Somaliland Balance Sheet Report, Statement of Income and Expenditure covering the period 1st July 2019 to 30th June 2020.
o The audit will be carried out in accordance to the International Standards on Auditing.
o Obtain sufficient audit evidence to substantiate in all material respects the accuracy of the information contained in the financial statements.
obtain an understanding of internal controls and perform tests of internal controls
Perform procedures to determine whether CARE has complied with laws, rules and regulations
Issue an independent Auditor’s Report that states but not limited to the following:
a) 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
b) A report on internal controls which shall describe the scope of testing of internal controls and the results of the tests.
c) A schedule of findings and questioned costs that includes a summary of the auditor’s results.
4.2 The Audit Report
4.2.1 Contents of Audit Report
The Auditor should issue Audit Reports for CARE Somalia/Somaliland which will include but are not limited to the following:
The Accounting Standards that have been applied and indicate the effect of any deviations from those standards
The period covered by the Audit Opinion
Income and Expenditure Statement
Audit opinion stating whether the Income & Expenditure Statement and supporting schedules present fairly in all material aspects that the funds were utilized for the purposes intended.
Audited financial statements in USD currency
4.2.2 Submission Date of the Audit Report
The audit is scheduled to begin on 17th August 2020 covering the financial period 1st July 2019 to 30th June 2020. The Draft Audit Reports should be submitted by 7th September 2020 while the Signed Audit Reports should be submitted by 14th September 2020.
4.3 Management Letter
The Auditor will submit a separate Management Letter at the completion of the audit.
The Management Letter shall include but not limited to the following:
a) An assessment of the Internal Control System with equal emphasis on the general effectiveness of the Internal Control System in protecting the assets and resources of the organization.
b) A description of any specific Internal Control weaknesses noted, the audit procedures followed to address or compensate for the weaknesses, risk exposure and recommendations to resolve/eliminate the internal control weaknesses noted should also be included.
Kindly submit your expression of interest and provide the following
Years of experience in auditing of Non-Governmental Organizations (NGOs)
Proposed team composition, qualification and experience.
References from NGOs that the audit firm has audited.
Company profile including various donor funded projects that the audit firm has audited.
Number of days proposed for the audit exercise
Number of staff that will be assigned to the audit