The Institute for Community Based Sociotherapy (ICBS) is a Non-Governmental Organization (NGO) registered in the Netherlands. The institute works as a global expertise network, uniting professionals, and organizations from different parts of the world that implement community-based sociotherapy (CBS). CBS has been developed in 2005 in Rwanda, as an integrated Mental Health and Psychosocial Support (MHPSS) and Peacebuilding (PB) approach.
Website: https://iicbs.org/
TERMS OF REFERENCE ON EXTERNAL AUDIT FOR CBS-RWANDA FINANCIAL STATEMENTS.
Background
CBS Rwanda is a non-governmental organization (NGO) legally established in 2016; originating from the implementation of the Community Based Sociotherapy approach in Rwanda since 2005. Community Based Sociotherapy is an approach that uses the group as a therapeutic medium in the establishment of trust, the creation of an open environment for discussion and the formation of peer-support structures.
CBS Rwanda is recruiting an audit firm to conduct a comprehensive financial, performance, compliance and risk based audit for the Financial Year ending, December, 31st 2024. The Audit firm being recruited will be hired for a three year term; with an annual renew basing on the performance. The Audit firm will also carry an Expenditure Verification for one of our potential 3.5 Years Projects of around 2.5 Million Euro Budget, under the European Union Funding ( CBS Rwanda & Its 2 partners in Rwanda) for the second year onwards, to start earlier next year; and the certification of the organizational financial statements, to an estimate of 2,500 ledger transactions.
Scope of the work
The successful bidder will be required to perform the following types of Audits:
Organizational Audit
- Certification of CBS Rwanda financial statements for the financial year ending 31st December, 2024 (obtain reasonable assurance that CBS Rwanda financial statements are free from material misstatements);
- The auditors must establish the completeness and accuracy of all receipts and expenditures and that they derive logically from and are in line with the activity plan;
- The auditor must observe a minimum level of reliability of 95% and a permitted tolerance of 3% for the organization;
- The scope of external audit work entails testing and evaluating the adequacy and effectiveness of the organization’s systems of internal control and administrative organization and to make recommendations;
- Review the effectiveness and efficiency of the financial and human resource management processes;
- Appraising the effectiveness and efficiency with which resources are employed and identifying opportunities to improve operating performance;
- Review the reliability and integrity of financial and operating information and the means used to identify measure, classify and report such information;
- Review the systems established by management to ensure compliance with those policies, laws, regulations and controls that could have a significant impact on operations and determine whether the organization is in compliance with its financial, administrative and property management procedures and other relevant legislation that governs the organization;
- Ensure that the organization adheres to the corporate governance requirements as prescribed in the organization’s internal rules and regulations;
- Ensure value for money for all expenses incurred.
Project Audit
The Terms of Reference (ToRs) for an expenditure verification of a grant contract external action of the European Union can be accessed through the following link:
Execution of audit assignments will be as follows:
Assignments are to be performed in accordance with the International Financial Reporting Standards (IFRS), International Standards of Auditing (ISA), and action of the European Union Terms of Reference (ToRs) for an expenditure verification of a grant contract.
Reporting
- The certified Organizational Financial statements, and
- Expenditure verification Report
Location of services
The required services of external audit will be conducted at CBS Rwanda Head Office in Kigali, Gasabo – Kacyiru, Nyarugenge district, KG 549 St 44.
Technical requirements
The qualified auditing firm to CBS Rwanda audit engagement should exhibit the followings:
- Demonstration of experience and expertise of external auditing with non-governmental organizations ((the Audit Firm should have an expertise of more than 15 years working in Rwanda) and without any sanction from the governing institute; ie: ICPAR;
- Demonstration of experience and expertise on expenditure verification to the international organizations (such as: EU, USAID, Global Fund, among other), funded projects. the Audit Firm should have an more than 10years of experience.
- Providing an activity plan (project plan) of actions to achieve the objectives of the external audit function, specifying budgeted hours, time-lines and sequence for its audit procedure and level of staff to be assigned;
- Incorporating CV’s of the proposed professional staff of the core management team proposed for the engagement and the authorized representative submitting the proposal. Key information should include the position of the individual in the auditing firm, the role that the individual will have in the engagement, number of years’ and type of experience, all tertiary and professional qualifications, professional memberships with international recognized association for accounting and auditing services (compulsory with institution recognized by IFAC), and degree of responsibility held in various assignments during the last three (3) years. CVs should be maximum two (2) pages per staff member.
- Engagement Partner should have at least a master’s degree in relevant qualification, and a CPA/ACCA or related.
- The audit manager should have at least a master’s degree in relevant qualification and a CPA/ACCA or related.
- Proof of experience in performing external audit services: List current and past clients where the bidder carried out external audit along with the name of the organization, contact person, designation, contact number, nature of the external audit service and length of the appointment for at least three (3) non-governmental organizations where you have rendered external audits services in the last ten (10) years;
- Proof of experience in performing the expenditure verification for EU Funded Projects: external audit services:List current and past clients where the bidder carried out external audit along with the name of the organization, contact person, designation, contact number, nature of the
- An auditing firm registered in Rwanda.
- The Audit firm should belong to an international network of audit firms.
- Be registered at the institute of certified public accountants of Rwanda.
- Proof of no tax liabilities, and RSSB liabilities.
Financial requirements
The qualified auditing firm to CBS Rwanda audit engagement should exhibit the followings under the financial proposal:
- Unit financial package for each of the two (2) Exercises to be handled:
- Organizational financial audit for the FY 2024, FY 2025, and FY 2026 respectively: The Quotation is issued in Rwandan francs; quoting each financial year.
- The project expenditure verification for the EU funded project to earlier 2025 for three and half years: The Quotation is issued in Euro; quoting each reporting period.
- A detailed financial packagein Rwandan Francs, at a gross rate ( Taxes inclusive);
- Preferred terms of payment.
Evaluation Criteria
Proposals will be evaluated in two parts. The technical proposal shall bear 60% of the total marks while the financial proposal shall bear 40% of the total marks:
- Proposals should make clear about the relevant skills, experience and capacity of the participant, in respect of this particular ToR.
- Proposals must contain the details of the proposed approach to be adopted in order to deliver the service in accordance with the ToR.
- Proposals should clearly indicate whether or not bid participants have the capacity to meet the requirements of the ToR.
- To be registered as audit firm in Rwanda.
Functionality evaluation criteria
|
S/N |
Description |
Weight |
|
1 |
Experience, Skills and Ability of Service Provider
|
30 |
|
2 |
Technical Approach and Execution Plan Proposals must contains the details of the proposed approach to be adopted in order to deliver the service in accordance with the TOR |
20 |
|
3 |
Project management
|
15 |
|
4 |
References Did the bidder submit at least three relevant and contactable clients that were serviced in the past 10 Years |
10 |
|
5 |
Capacity
|
25 |
|
|
TOTAL |
100 |
Bidders are required to score a minimum of 75% points on functionality to qualify to be evaluated in the next level (price). Bidders who do not score the minimum of 75% points on functionality will be disqualified and not be evaluated on price.
Payment Details
Payment will be in accordance with a detailed budget breakdown as submitted through the proposal, and invoices will be expected from the Audit firm prior to payment.
Submissions
Applications/submission should be addressed to CBS Rwanda management; by submitting a bid sealed file of documents showing all details as required in technical specifications including the financial proposal and audit bill to be charged on CBS Rwanda, on each of the exercises; with a separate attached submission letter. Submission will accepted not later than 10th January 2025 from at 10:00AM at CBS Rwanda Head office.
Note: For further information related to the ToR and the organization address you can liaise with the contacts below.
Done at Kigali on December, 12th 2024
Dr. Marie Chantal Ingabire, PhD.
Executive Director, CBS Rwand
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