BACKGROUND
The Audit Assignment
FIC is planning to engage a professional firm to carry out annual audit for the programme funds for the next two financial years (2018, 2019). The audit covers both FIC financials in Nairobi as well as the disbursed funds to the local partners.
REQUIREMENTS FOR THE AUDITOR.
The Audit must be conducted by a certified public accountant registered in Kenya and/or Tanzania and the firm will conduct audits in both Tanzania and Kenya, e.g. via office representation in both countries or by cooperating with a colleague in the other country.
SCOPE OF THE AUDIT
The objective is to audit the annual financial statement of FIC Kenya covering funds received and cost incurred in relation to the program “Decent Work and Labour Rights Program” and to the mentioned single grant projects for the two years 2018 – 2019 plus eventual other received funds.
The first financial statement is for the period 1. January 2018 – 31. December 2018, the second is for 2019 .In total 2 financial statements and Compiled financials for the program.
The audit is limited to partners’ income and expenditures related to the project implementation in Kenya and/or Tanzania.
DELIVERABLES:
Audit report
The audit report should cover at least the following:
FIC KENYA FINANCIAL STATEMENTS
For each main partner a financial statement is prepared each with a separate audit report.
For FIC KENYA a financial statement including:
A total summary illustrating received funds and their use on program, single grants and FIC Kenya office.
A summary of theprogramsources and uses of funds, included in a note together with the specification per partner of transferred and spent funds by main budget lines. This must be supplemented by a split of relevant cost on countries and the two components. The figures of the program must be included both for current year and accumulated.
A summary of single grantprojects transferred funds and spending’s included in a note, specified by main budget lines, both for the current year and accumulated.
A summary for FIC Kenya officeillustrating the spent cost and how relevant cost are allocated to the different projects/partners.
The above 3 items may partly be included in the notes.
A balance illustrating FIC Kenya’s financial position end of year including eventual balances with partners.
Additional relevant information/specifications may be given as part of the notes.
AUDIT OPINION
Besides a primary opinion on the Project Financial Statements, the annual audit report of the Project Accounts should include a separate paragraph commenting on the accuracy and propriety of expenditures withdrawn under SOE procedures.
Submission of the final reports to FIC is due by no later than 2 months after end each of the mentioned periods.
Management letter, one for each period.
To be delivered together with the audit reports.
The management letter should include at least the following topics/issues:
An assessment of the project’s internal control system with equal emphasis on (i) the effectiveness of the system in providing the project management with useful and timely information for the proper management of the project and (ii) the general effectiveness of the internal control system in protecting the assets and resources of the project.
A description of any specific internal control weaknesses noted in the financial management of the project and the audit procedures followed to address or compensate for the weaknesses. Recommendations to resolve/eliminate the internal control weaknesses noted should be included.
The management letter should also include the following:
The categorization of audit findings by risk severity: High, Medium, or Low.
The classification of possible causes of the audit findings.
Comments as to whether recommendations made in the management letter for the previous audit were implemented or, if not, the implementation status;
Partner management comments/response.
Available Facilities and Right Access
The auditor will have full and complete access at any time to all records and documents (including books of account, legal agreements, minutes of committee meetings, bank records, invoices and contracts etc.) and all employees of the entity. The auditor will have a right of access to involved participants and organizations, to banks, consultants, contractors and other persons or firms engaged by the project management.
The selection process will take into consideration the following qualification:
A firm that has been in practice for at least three years
Firm with experience of auditing the NGO sector
