Invitations of Proposals for Engagement as an External Auditor at International Justice Mission (IJM)

The Scope

• The audit will cover all transactions and statements in the organization’s financial system (Workday) and other reporting systems including physical reports and assets/items.
• The financial audit must be carried out per International Standards on Auditing (ISAs).

Therefore, the audit company must:

• Identify and assess risks of material misstatements of the financial statements, whether due to fraud or error. Based on the risks identified, the auditor must design and perform relevant audit procedures to obtain sufficient and appropriate audit evidence to serve as the basis for the auditor’s opinion.
• Obtain an understanding of the internal controls relevant to the audit, to design appropriate audit procedures. The purpose is not to express an opinion on the effectiveness of the internal controls, but whether these controls pertain to the project costs.
• Evaluate the appropriateness of the accounting policies used in the financial statements, including the reasonableness of estimates and related disclosures. Funds granted through the donor; this is particularly relevant for accounting policies regarding project costs.
• Reviewing and evaluating IJM Kenya’s internal control and risk management system and advising Management on the adequacy/effectiveness of the system, and recommendations for improvement

The auditor must satisfy the following minimum requirements:

• A legal entity in Kenya with a business license granted by the appropriate authority.
• A member of a professional body affiliated with the International Federation of Accountants (IFAC) and the Institute of Certified Public Accountants of Kenya (ICPAK).
• Have adequate relevant professional and educational qualifications, or able to provide audit staff with adequate qualifications, experience, and competence.
• Technically competent and able to conduct audits in line with the auditing standards.
• Objective and independent from the project, its staff, and activities, and from all aspects of management or financial interests of IJM.
• Possesses proven track record in financial audit of INGO projects, audits of similar nature, type, and complexity, or donor-funded projects.
• Technically competent to carry out system Audit, experience with Workday will be an added Advantage.

Bidding firms will be required to meet the following criteria:

• Be registered with the Institute of Certified Public Accountants of Kenya (ICPAK) and its partners must hold current practicing certificates.
• Partners must be of good standing with ICPAK, while the Firm and its Partners should not have been subject to any disciplinary action by ICPAK or other related professional bodies.
• Have a system of quality control in the provision of audit and assurance services.
• Demonstrate that it has the capacity, capability and experience required to undertake the audit within the required timelines.
• In addition, the Firm should demonstrate experience in auditing International Non-Governmental Organizations.
• The audit firms are expected to demonstrate their practical experience in auditing US Government grants in their proposal.

The expected deliverables are as follows.

• Audit report for FY23.
• Management letter detailing any internal controls deficiencies.
• Make Tax returns for the FY 2023

Timelines

• The audit is scheduled to commence from 1st May 2024 50 31st May 2024.
• The draft Audit Report should be submitted by 5th June 2024.

Tender Submission & Selection Process:

• IJM-K’s selection criteria involve an evaluation of the audit firm’s proposal for plans, skills, experience, commitment and understanding of the audit requirements and finally considers proposed audit fees as a basis.

Firms meeting the above criteria are requested to submit their proposals as follows:

Technical Proposal containing:

• Confirmation of the Firm’s understanding of the Terms of Reference and its capacity and capability to deliver on the TOR.
• The Audit methodology/approach, work plan and timelines for undertaking and completing the assignment, and deliverables.
• Appropriate references to demonstrate having the experience specified in the TOR.
• The CVs of the key staff proposed to do the assignment.

Financial Proposal indicating the proposed fees and expenses. Bidding firms should submit the following documents with their Technical Proposals:

• Proof of registration with ICPAK and Partners’ Practicing Certificates.
• Provide references of recent or similar experience in performing external audit services. The reference should be a sample list of past clients including the name of the organization, contact person, contact number, email address, nature and value of service and period of the appointment.