Tenders Are Invited For External Audit Services

Tenders are invited for External Audit Services Closing Date: 22 Mar 2025 Type: Consultancy Action For Humanity is an international NGO with over 13 years experience of responding to crises and emergencies. We are the UKs largest Syria-focused NGO. We now provide life-saving aid globally and help to restore health, safety, education and stability. To date, weve worked in over 10 different countries, delivering a wide range of projects that help people survive, rebuild and recover. From supporting earthquake survivors in Syria, to building new homes in Pakistan, our work is guided by our central vision: a world of crises-resilient communities. Our vision: A world of crisis-resilient communities Our mission: To mobilise and respond to emergencies and critical needs through humanitarian, development and peace-building action, in order to empower affected communities to survive, recover and build a better future. Our requirements AFH is looking for a reputable firm of auditors to conduct an audit for our 2024 financial statements. The audit needs to comply with the following: 1. Objectives and scope of the audit: The objectives of the audit are to express an opinion on the fairness of the financial statements in accordance with the applicable financial reporting framework, and to report on the adequacy of internal control systems. The scope of the audit includes examining the financial statements, internal control systems, and other relevant records and documentation of the audited entity. 2. Audit methodology: The audit will be conducted in accordance with the International Standards on Auditing. The audit team will plan and perform the audit with due professional care, objectivity, and independence. 3. Audit procedures: The audit team will conduct the necessary procedures to obtain sufficient and appropriate audit evidence, including: Substantive procedures, such as testing transactions and balances, and reviewing supporting documentation. Tests of controls, such as evaluating the effectiveness of internal controls. The audit team will also perform any other procedures necessary to fulfil the audit objectives and scope. 4.Reporting: The audit team will issue an audit report expressing an opinion on the financial statements in accordance with the applicable financial reporting framework. The audit report will also include a description of the audit scope, methodology, and significant findings. If the audit team identifies any material weaknesses in internal control, significant noncompliance with laws and regulations, or other significant matters, they will communicate these findings to the Country Director who will take the necessary steps to rectify the identified issues and weaknesses. Commencement and Duration of Contract The contract will be in place for a period of two months, commencing in March 2025 with the audit of the 2024 Annual Financial Statements. Scope of Work The audit will cover the following areas: The audit of Action for Humanity Iraq. Our finance staff will prepare a range of appropriate supporting schedules which will be available in electronic format. The auditors are expected to proactively work to ensure appropriate scheduling and planning to enable AFH to lodge Audited Annual Report and Financial Statements within 2 months after its financial year end. Proposal Content All bidders are requested to provide the information below in order to aid the understanding of their organization: Outline the structure, size and capabilities of their firm as relevant to AFH. Identify the firms major registered charities and INGO clients. Provide three references of other registered charities that are their audit clients, and which can be taken up as required. Identify the partner and manager who will be assigned to the audit, including details of their relevant experience and qualifications. Provide assurance of staffing competency with relevant charity sector experience. Explain how the firm manages succession planning and ensure staff continuity from one year to the next. A draft audit plan must be submitted, including the following elements: Audit philosophy and methods and identification of key risks. Audit strategy and audit planning process. Audit scope and materiality. Identification and response to critical audit issues. Details of how quality and timeline of the audit work will be assured. Proposed staffing plan based on the anticipated levels of work. Provide an analysis of hours by grade of staff that will be involved on the audit. The time which the partner and manager identified above will devote to the audit. The proposed fee. We plan to benchmark the audit fee with our peer members in the sector and not just our historic levels. We expect the fee to reflect the market value, the extent of work required and be consistent year on year subject to inflation Additionally, please provide: Details of your hourly charge out rates by staff grade. The basis of charging expenses. Your proposed billing schedule. Proposals for setting and agreeing fees in future years. The basis upon which an adjustment would be made to the fixed audit fee in the event there is a delay in completion of the audit as a result of slippage either by AFH or the Audit Firm. Proposal on how the audit firm will advise AFH with regard to changes in the statutory reporting environment and other developments relating to the charity sector. The proposal should also contain details of other additional relevant services that your firm would propose to provide, but which are not a necessary and integral part of the statutory audit, and where appropriate include these in the additional services section in the five-year fee schedule. Timeline AFH expects the final audit report to be finalized and signed by 30-04-2025 Shortlisting Criteria When short listing the potential candidates the following criteria will be used to assess and score each applicant. Technical competency and caliber of organization The auditors must be reputable and of good standing. AFH expects the firm to have expertise in the charitable sector and being able to provide advice in specialist areas such as payroll, INGO accounting and risk management. Cultural and values fit AFH expects the auditors that are appointed to understand and have empathy with the ethics and values of AFH. Organizations expertise and experience in the INGO sector AFH is an International Relief and Development INGO, thus it expects its auditors to have NGO sector specialists within its audit team and an experience and portfolio of clients in the NGO sector. AFH expects its appointed auditors to be proactive in the relationship, sharing experience, knowledge and ideas so that the audit adds more value than just meeting statutory requirements. AFH expects the audit to be cost competitive and balanced with a quality professional service. AFH will expect an open and clear approach to audit costs but will be considering the overall value for money of the service provided in making its decision. The partner and manager should have good knowledge and solid experience of the INGO sector such that they can add value through the audit process. Value for money and added value Although important; the proposed fee will be assessed alongside the quality, credibility and extent of the services offered. The evaluation committee will shortlist an auditor on the concept of best value for money. Partner and Manager time and NGO experience AFH expects in the proposal a realistic commitment of partner and manager time. The partner and manager should have good knowledge and solid experience of the INGO sector such that they can add value through the audit process. Communication AFH places strong emphasis on personal relationships and good communication at all levels. We hope that we can develop a free and open two-way conversation including such areas as changes in accounting standards, fees, deliverables, timing of audit visits, staffing changes. Risk based approach We are seeking to appoint auditors who take a risk-based approach to financial audit and have an understanding of risk in a broader context than financial risks. How to apply Please send your proposal electronically to this email only: [email protected] All proposals are required to be submitted by 22-03-2025 no later than 04:00 pm Iraq Time The code IQ-EBL-FIN-2211 must be included in the subject line of the application email For any issues or questions relating to the tender or its contents please email directly to [email protected] Tender supporting documents are available at the link below noting that documents titled as Annex 1 and Annex 2 must be completed when submitting the application Link: https://actionforhumanityorg-my.sharepoint.com/:f:/g/personal/logistics_iraq_actionforhumanity_org/EhoqQyOcig5Mnrt33WXGpQ8BJ5Jgp-jrM22t2CUS-MJHEg?e=WCqZTx Tender Link : https://reliefweb.int/job/4139350/external-audit-services