Job Description

YWCA External Audit Services Terms of Reference

Young Women’s Christian Association of Kenya (YWCA)

TERMS OF REFERENCE FOR THE PROVISION OF EXTERNAL AUDIT SERVICES FOR THE FINANCIAL YEAR 2018

BACKGROUND: The Young Women’s Christian Association of Kenya (YWCA) was founded in 1912. YWCA Kenya through its work brings women and girls together in an effort to respond to the social-Economic, political and cultural issues affecting them.

The YWCA Kenya currently has seven Branches in Mombasa, Tana River, Meru, Nairobi, Kisii, Kisumu and Siaya.

The National Headquarters is located in Nairobi.

Each branch is semi-autonomous with an Executive Committee as the governance organ. Nationally, the National Council is the supreme organ. YWCA Kenya invites tenders from reputable consulting firms for the provision of external audit services for the financial year 2018

THE NEED, OBJECTIVES AND SCOPE OF THE AUDIT

The required service of external audit will be rendered at YWCA Kenya’s Headquarters as situated in Nyerere/Mamlaka road and the Branches located in Meru, Nairobi, Kisii, Kisumu, Siaya, Mombasa and Tana River.

The objective is to audit the Financial report for the ended 31st December 2018 and to express an audit opinion according to ISA 800/805 on whether the financial report represent a true and fair view.

TERMS OF REFERENCE

 The audit assignments shall be carried out in accordance with International Standards of Auditing (ISA) issued by the International Audit and Assurance Standards Board and adopted by International Federation of Accountants (IFAC).

 Plan and organise the audit on the basis of risk assessment to provide satisfactory assurance that the financial statements are free of material misstatement due to fraud and errors.

 Ascertain that funds received by the organization have been applied for the intended purpose and have been accounted for in accordance with funding agreement.

 Verify that funds received, have been acknowledged and reflected in the financial reports/statements submitted to the users/donors.

 Verify and report on whether or not funds have been re-granted by the organisation. In case of re-grant follow up to ascertain that funds have been reported and audited to assure that these have been applied for the intended purpose.

REPORTING

 The reporting shall contain an assurance that the audit was performed in accordance with applicable International Auditing Standards and by a qualified auditor.

 The reporting shall contain the responsible auditor’s signature (not just the audit firm) and title.

 The reporting shall contain details regarding used audit methodology and the scope of the audit.

 The auditor shall submit a statement of how each of the audit requirements detailed in the Terms of Reference was achieved during the audit process.

 The auditor shall submit an audit memorandum/management letter, which shall contain the audit findings made during the audit process. It shall state the measures that have been adequate to deal with reported shortcomings.

 The auditor shall make recommendations to address any weakness identified. The recommendations should be presented in priority.

The Auditor will produce the following reports;

 Audited financial report with an opinion

 Management letter report with responses

MANDATORY REQUIREMENTS

 Eligible firms should not have conducted audit relating to YWCA for the last 5 years.

 The Partner(s) of the audit firm should be practicing member(s) of Institute of certified Public Accountants of Kenya (ICPAK), in good standing.

 The firm should give a written undertaking that it has been in operation for at 5 five years continuously backwards from 2017.

 The partners of the firm should have professional indemnity. A copy of the current certificate should be attached.

 The firm should have a valid practising certificate.

 Any possible conflict of interest should be clearly indicated in details for guidance in decision making.

THE CAPABILITY OF THE AUDIT FIRM

 The audit firm should provide a brief capability statement justifying it’s suitability for the assignment.

Global network or international affiliation advantages if any should be disclosed.

 The audit firm should state its understanding of the terms of Reference, operations and the services of the organization.

 The audit firm should provide a profile of the proposed team, covering the partner, Audit Manager and support staff.

 The audit firm should a profile of three (3) major clients with operations comparable to those being required under the terms of reference.

 The firm state its experience in providing audit services to clients with operations in Kenya.

 The audit firm should provide their most current audited financial accounts for the last two years.

AUDIT METHODOLOGY

 The firm should state the methodology that will be applied to carry out the audit assignments including the estimated audit completion time.

FINANCIAL PROPOSAL

 The audit firm should state the charging rates proposed for these Terms of reference. Note that the award will not solely be determined on grounds of cost indicated.

EVALUATION CRITERIA

The evaluation will be based on the above mentioned requirements. Possession of a valid practicing license and updated membership and in good standing with ICPAK shall be considered mandatory requirements.

Evaluation Requirement and Maximum Score

1. Capability of the audit firm

• Provide written undertaking of having been in operation at least 5 years continuously backwards from 2016.


• Partners of the firm should have professional indemnity.


• Attach copy of current certificate.


• Provide a profile of the proposed audit team, covering the partners(s),audit managers and audit assistants.

Maximum Score: 25

2. Relevant Experience

• Provide reference letters from 3 major clients with operations comparable to those stated in Terms of Reference.


• Demonstrate experience in providing audit services to clients with operations in Kenya.

Maximum Score: 25

3. Audit methodology

• Demonstrate understanding of the terms of Reference, operations and services of the organization.


• Firm to state the methodology that will be applied to carry out the audit assignments including estimated audit completion time.

Maximum Score: 20

4. Financial Proposal

Proposed charging rates for the stated terms of reference

Maximum Score: 25

5. Additional Services

• Details of additional or complementary products or services offered, if any.

TOTAL SCORE:  100

SCOPE OF TENURE

The proposed engagement covers the areas specified in the terms of reference and will be for five years with annual appraisal of performance with the prospect of renewal pegged to satisfactory performance.

AUDIT DELIVERABLES

The qualified auditor shall issue an audit certificate/report in respect of reviewing the implementation of the agreement.

The purpose of the audit certificate is to verify and recommend approval of the financial report.

The audit certificate shall contain the following:

 an opinion according to ISA 805 whether the submitted financial report is in accordance with the accounting records

 a reference to the reports that the audit certificate refers to (copies of which is to be included in deliverables)

 a statement that the audit has been performed in accordance with International Standards on Auditing (ISA) and in accordance with these special instructions

 a statement whether the report has been drawn up in accordance with the agreement

 a statement on whether the auditor proposes that the report be approved or not

The qualified auditor shall issue a management letter/audit memorandum.

The purpose of the management letter/audit memorandum is to review the internal control.

The management letter/audit memorandum shall contain the following:

 the content and scope of the audit

 significant observations on the activity covered by the report

 measures taken as a result of previous audits and whether the measures have been adequate to deal with the reported shortcomings

Requirements for the audited organization

 The organization shall produce a management response including an action plan to be submitted to the YWCA.

PAYMENT DETAILS

Payment will be in accordance with a detailed budget breakdown as submitted through the proposal, and invoices will be expected from the consultant prior to payment.

SUBMISSIONS

If interested in the above mentioned opportunity, please submit your proposal including the technical, financial offers and CV to YWCA KENYA office located in Nyerere/Mamlaka road. The proposal must be delivered in a written form to the address below by 1200Hrs. East African Time on 13th March, 2019

National General Secretary
Young Women Christian Organization of Kenya
P.O Box 40710 – 00100
Nairobi, Kenya

Email: info@ywcakenya.org

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