Tender 3 : Request for Proposal for Auditing Services

Request for Proposal for Auditing Services

DATE: 02 December 2022
TO: Audit Firm
FROM: Hand in Hand Zimbabwe (HiH Zimbabwe)
Estimated Budget: US$1,500,000
Aproximate No. of Projects: 5
SUBJECT: Professional Auditing Services

A. About Hand in Hand Zimbabwe

Hand in Hand Zimbabwe is a non-profit organization that helps resource limited and marginalized people in rural communities, particularly women and youth, to create better livelihoods for themselves and their families through interventions which increase economic opportunities.

This, the organization achieves through delivering modular entrepreneurial development training, which is integrated with cross-cutting components such as motivation, health, gender, and environment. Thus, Hand in Hand Zimbabwe commits itself to implementing sustainable interventions that contribute to fighting challenges such as food insecurity, poverty and an unattainable economy and effects of climate change that threaten individual and household wellbeing. Hand in Hand Zimbabwe has a six (6) module business development training that is delivered over six (6) months and cross cutting manuals in gender, environment and motivation on which target group capacitation is premised on.
The organisation was registered as development Trust in July 2015 and as a Private Voluntary Organisation (PVO) on the 5th of May 2020.

The organization presently operates in the following districts: Bulilima and Gwanda in Matabeleland South Province, Lupane and Nkayi in Matabeleland North Province, Chirumanzu and Shurugwi in Midlands Province and Chikomba district in Mashonaland East Province.
The Hand in Hand Zimbabwe (HiH Zimbabwe) is soliciting proposals from qualified firms of certified public accountants to audit the Hand in Hand Zimbabwe (HiH Zimbabwe)’s financial statements for the fiscal year ending December 31st, 2022 with the auditing the Hand in Hand Zimbabwe (HiH Zimbabwe)’s financial statements for the 2022 fiscal years.

B. Call for Professional Auditing Services

Your proposal should contain, but not limited to the following considerations:

1. Eligibility – authorization by the Public Accountants and Auditors (PAAB) Zimbabwe to conduct audits.

2. Experience of your firm in relation to the scope of audits for the Hand in Hand Zimbabwe (HiH Zimbabwe).

3. A list of similar NGOs/Companies or pertinent accounts served by your firm.

4. Your staff assignments and availability to complete the audit on a timely basis.

• Participation of senior audit personnel assigned to the engagement.

• Frequency of contact with fiscal personnel.

• Availability of staff to respond to questions within the scope of the engagement and the hourly charge, if any, for services outside the scope of the audit.

5. Audit firm staff stability history – what assurances can you provide the Hand in Hand Zimbabwe (HiH Zimbabwe) regarding the assignment of your permanent personnel to the engagement.

6. Describe capability to audit computerized accounts receivable systems and to audit during the development of a completely computerized book keeping system.

7. Procedures used to transmit audit adjustments and the reasons for them along with management recommendations to the responsible personnel within the Hand in Hand Zimbabwe (HiH Zimbabwe) structure.

8. Your fee proposal to conduct the basic audit function, along with your fee schedule for additional services that may be required beyond the scope of the audit engagement. The proposal should also state that any increase in the audit fee will be immediately disclosed to the Hand in Hand Zimbabwe’s Finance and Administration Manager. This disclosure should include an estimation of the increased fees and the reason for the increase.

9. Estimated number of hours to complete the audit by classification of your employees, i.e. partners, senior, junior.

10. Detail of expenses expected to be incurred, i.e. mileage, per diem, telephone, etc.

11. Audit firm to produce statements and to print annual report.

12. Proof that the firm is certified to conduct an audits by the Public Accountatns and Auditors Board (PAAB), Zimbabwe.

The final decision of the selection of the firm to conduct the audit will be made by the Board of Trustees of Hand in Hand Zimbabwe (HiH Zimbabwe). The final agreement will be in the form of a written contract following the standard agreement form used by Audit firms conducting audits.

All questions and correspondence should be directed to Hand in Hand Zimbabwe (HiH Zimbabwe) in writing by email to the Attention of Mr. Felix Tete felix.tete@handinhand.co.zw copy daniel.sinkula@handinhand.co.zw. Contact with Hand in Hand Zimbabwe (HiH Zimbabwe) personnel other than [Mr Felix K. Tete or Mr. Daniel Sinkula] regarding this RFP may be grounds for elimination from the selection process.

We will look forward to receiving your proposals on or before December 31st, 2022

 

C. Audit Proposal Information

Audit proposals will be accepted by the Hand in Hand Zimbabwe (HiH Zimbabwe) until 5.00 p.m., on or before 31 December 2022. Please direct proposals to the attention of the Chief Executive Officer Mr Felix Tete on felix.tete@handinhand.co.zw copy Finance and Administration Manager Mr. Daniel Sinkula on daniel.sinkula@handinhand.co.zw. All proposals become the property of Hand in Hand Zimbabwe (HiH Zimbabwe).

All proposals will become part of the requester’s files without obligation.

D. Nature of Services Required

1. Audit period will be for the period January 1st 2022 through December 31st, 2022 (one year) or project-specific period deemed necessary.

2. Special reports, exhibits, and schedules required:
a. Individual Project’s Income and Expnditure report.
b. Balance sheet.
c. Schedule of Grants received.
d. Statements of changes in financial position.
e. Notes of financial statement.

3. Description of Entity and Records to be Audited:

General ledger, fixed assets ledger, grants received, general journal, accounts payable.

4. Available Manuals and Information Sources:

a. Minutes of the board meetings of the Hand in Hand Zimbabwe (HiH Zimbabwe).
b. Accounting function work description of General Ledger finance team.
c. Policies.

5. Details of fixed assets are maintained. Fixed assets are based on cost when available otherwise on estimates authorized by the Board of Trustees. The fixed assets ledger was constructed with historical information by the Hand in Hand Zimbabwe (HiH Zimbabwe)’s Finance and Administration Manager during an audit period.

6. A budget is maintained and is available for examination.

7. Staff members will be available to pull and reproduce documents. Legal counsel will be made available with prior staff approval.

8. Work areas will be provided by the Hand in Hand Zimbabwe (HiH Zimbabwe) in close proximity with the financial records on the premises.

9. Report Requirements
The report will be addressed to the Board of Trustees and will contain items listed below:
• State the scope of the examination and that the audit was performed with generally accepted accounting principles and include a statement of opinion as to whether the statements conform to generally accepted accounting principles.
• Reports of compliance examinations must include a statement that the audit was con-ducted in accordance with applicable standards. The audit report must state where the examination disclosed instances of significant non-compliance with laws and generally accepted accounting principles.
• Findings of non-compliance and ineligible expenditures must be presented in enough detail for management to be able to understand them.
• A Report to Management letter will be required. It should contain a statement of audit findings and recommendations affecting financial systems and statements, internal control, legality of actions, other instances of non-compliance with laws and generally accepted accounting principles, and any other material matters.

11. Time Requirements

• Proposals will be delivered to the Hand in Hand Zimbabwe (HiH Zimbabwe) via email at 8: 00 a.m not later than 5:00 p.m. on December 31st, 2022.

• If presentations of possible finalists are necessary, no one with personal bias will interview proposers.

• The Board of Trustees have made no decision as to the date of the award of the audit. All proposers will be notified of the Board action in a timely manner.

• Once a contract has been signed, work may begin immediately to generate the audit in a progress manner with costs to be billed to the Hand in Hand Zimbabwe (HiH Zimbabwe) as the charges generated by the proposer in accordance with the original agreement.

• Preliminary work to close accounts can begin immediately.

• The preliminary report and exit conference will be completed prior to 31st March 2023.

12. Report Review Timing and Number of Copies.

• Prior to the submission of the completed audit report the audit firm will be required to deliver and review the draft and the proposed management letter with the Hand in Hand Zimbabwe (HiH Zimbabwe) Board.

• Copies required
a. Audit report, _3__ copies.
b. Management letter, _3__ copies.

13. Hand in Hand Zimbabwe (HiH Zimbabwe) Reserves the Right:

• To reject any and all proposals submitted.

• To request additional information from all proposers.

E. How to Apply

Interested firms should send their expression of interest, proposals (both technical and financial), and professional summary of the audit team members to email: Mr. Felix Tete felix.tete@handinhand.co.zw copy Mr. Daniel Sinkula daniel.sinkula@handinhand.co.zw indicating “EOI Financial Audit” in the email subject line.

Queries or request for clarifications should be sent to email: Mr. Felix Tete on felix.tete@handinhand.co.zw copy Mr. Daniel Sinkula on daniel.sinkula@handinhand.co.zw

Detailed scope of work required will be directly sent to interested firms upon receiving their ‘Expression of Interest’ email.

F. Deadline for Application: On or before 16 December 2022