Request for Proposal for Provision of External Audit Services for Northern Rangelands Trust Member Conservancies
Background
The Northern Rangelands Trust (NRT) is a non-profit umbrella organization that supports 43member community conservancies across Northern and Coastal Kenya with fundraising, technical support, governance support and training to member community conservancies. Its mission is to develop resilient community conservancies that transform lives, secure peace, and conserve natural resources. NRT is non-governmental organization headquartered in Lewa Wildlife Conservancy, Meru County.
More information can be found at www.nrt-kenya.org. NRT has embarked on the process of decentralizing its operations to regions to be able to serve member conservancies and its community members better. These regions are NRT East (Isiolo & Marsabit), NRT Centre (Samburu), NRT Mountain (Laikipia & Meru), NRT West (Baringo &
West Pokot) and NRT Coast (Garissa, Tana River & Lamu).
It is on this basis that NRT is looking to appoint registered auditors to conduct audit for its member Conservancies at those regions for 2021 financial statements. We, therefore, are reaching out to request for proposals per region;
A. Broad Objectives:
1. To carry out a financial audit as per International Auditing Standards and express an opinion whether the financial statements prepared by the directors give a true and fair view of state of financial affairs of the Conservancies in accordance with International Financial Reporting Standards (IFRS).
2. To evaluate the effectiveness of financial management and governance, programmatic and administrative systems, controls, and structures
of the organization.
3. To review the effectiveness of Conservancies risk management systems and processes.
4. To review Conservancies compliance with both internal and external policies and review compliance with the laws of Kenya.
5. To review the effectiveness of management of donor funded projects in the organization.
B. Preparation of Annual Financial Statements
1. The responsibility for the preparation of financial statements including adequate disclosure is that of each Conservancy who are also responsible for the selection and application of accounting policies and prepare the Financial Statements in accordance with International Financial Reporting Standards (IFRS).
2. The auditor is responsible for forming and expressing an opinion on the financial statements. The auditor would carry out the audit of the organization and its project in accordance with the International Standards on Auditing (ISA).
C. Audit Scope
The audit for each Conservancy will cover the period 1st January – 31st December of each year. A draft audit report should be submitted by 15th February and a final signed audit report and certified statements by 31st March each year subject to confirmation by Conservancy Boards. The financial statements shall be made available not later than 20th January following the end of financial year. The audit should be conducted in accordance with International Standards on Auditing (ISA) and International Financial Reporting Standards (IFRS).
In complying with IAS and IFRS, the auditor is expected to pay particular attention to fraud and errors, laws and regulations, risks, and controls.
D. Audit Report and Management Letter
The auditor should provide management with audit report and management letter at the completion of the audit.
Audit Report
➢ Contain details of method and scope of audit and assurance that the audit was performed in accordance with ISA and by a qualified auditor licensed by ICPAK
➢ Contain an opinion by the auditor on whether the financial statements present fairly, in all material respects the financial position of the organization in accordance with IFRS.
➢ Be signed by the auditor responsible stating their title and role in the audit firm.
Management Letter
➢ Identify specific deficiencies or areas of weakness in the systems and controls and make recommendations for their improvements.
➢ Examine the appropriateness of supporting documents, records and books of account relating to all activities management responses and recommendations
➢ Examine assess and report on compliance with law and regulations
E. Auditor Independence and Qualifications
The auditor must be completely independent from all aspects of management or financial interests in the entity being audited. The auditor should disclose any relationship that might compromise/impair his/her independence.
The auditor should be experienced in applying ISA and IFRS. The auditor must employ adequate staff with adequate professional qualifications and suitable experience.
Curriculum vitae (CVs) should be provided by the Partner of the audit institution who would be responsible in signing the opinion together with CVs of Manager, Supervisors and key personnel proposed as part of the audit team. The audit institution and the Partner should be in good standing with the Institute.
The Audit firm should be registered and have a practice license from the Institute of Certified Public Accountants of Kenya. The audit firm should have experience in audit of donor funded operations and must have been in practice for over 6years.
F. Mandatory Requirements
➢ Technical Proposal
➢ Financial Proposal
➢ Valid Tax Compliance Certificate
➢ Copy of Certificate of Registration/Incorporation
➢ Valid Practicing License of the firm and current annual license
➢ Letters of good standing of the Firm and its Partners
➢ List of firms current clients and contacts with permission to seek references from them
For all information: https://static1.squarespace.com/static/5af1629f12b13f5ce97ca0b5/t/615ff2c799926f410a887270/1633678024132/Request+for+Proposal+for+Provision+of+External+Audit+Services.pdf
PRIVATE Bag ● Isiolo ● Kenya
Tel/Fax: +254 (0) 64 31405
www.nrt-kenya.org
