NGO JOBS

Organization: Islamic Relief
Country: United Kingdom of Great Britain and Northern Ireland
Closing date: 04 Sep 2013

TENDER DOCUMENT FOR AUDIT SERVICES (HAITI), AUGUST 2013

BACKGROUND

Islamic Relief is an international aid and development charity, which aims to alleviate the suffering of the world's poorest people. It is an independent Non-Governmental Organisation (NGO) founded in the UK in 1984 by Dr Hany El-Banna, Dr Essam El-Haddad, Dr Mohammed El-Alfy and Dr Ihsan Shabib.As well as responding to disasters and emergencies, Islamic Relief promotes sustainable economic and social development by working with local communities - regardless of race, religion or gender.

Our vision:Inspired by our Islamic faith and guided by our values, we envisage a caring world where communities are empowered, social obligations are fulfilled and people respond as one to the suffering of others.

Our mission:Exemplifying our Islamic values, we will mobilise resources, build partnerships, and develop local capacity, as we work to:

Enable communities to mitigate the effect of disasters, prepare for their occurrence and respond by providing relief, protection and recovery.

Promote integrated development and environmental custodianship with a focus on sustainable livelihoods.

Support the marginalised and vulnerable to voice their needs and address root causes of poverty.We allocate these resources regardless of race, political affiliation, gender or belief, and without expecting anything in return.

At the international level, Islamic Relief Worldwide (IRW) has consultative status with the UN Economic and Social Council, and is a signatory to the International Red Cross and Red Crescent Code of Conduct. IRW is committed to the Millennium Development Goals (MDGs) through raising awareness of the issues that affect poor communities and through its work on the ground. Islamic Relief are one of only 13 charities that have fulfilled the criteria and have become members of the Disasters Emergency Committee (www.dec.org.uk)

IRW endeavours to work closely with local communities, focussing on capacity-building and empowerment to help them achieve development without dependency.

Please see our website for more information www.islamic-relief.com

25TH ANNIVERSARY

To commemorate the 25th Anniversary of the organisation, a gala dinner was held in London with HRH Prince Charles as the guest of honour – please see the link below for more details.https://www.princeofwales.gov.uk/media/speeches/speech-hrh-the-prince-of...

HAITI

Islamic Relief started its operations in Haiti after devastating earthquake of January 2010 by providing support to the victims of disaster through our relief program. We provided support in food & none food items, tents, transitional shelters, wash facilities, cholera Prevention, skill enhancement of local communities through computer and tailoring trainings, Education, employment opportunities through cash for work. Islamic Relief also provided the IDPs with temporary shelters in Carrefour and Cite Sole. Currently Islamic Relief is focusing on its School Reconstruction and Rehabilitation Project funded by Islamic Development Bank and it is focusing on its Improving Livelihood and Sanitation in District of Croix Des Bouquets.

Haiti office is headed by Head of Mission who is over all in charge of all operations in the Country. To support his there is Program unit lead by Head of Programme Manager and support function is headed by Finance & Administration Manager.

OBJECTIVES

We require the services of an audit consultant/firm. The objective of the audit on Islamic Relief Haiti is to express an opinion whether the financial reports prepared are prepared in all material respect, in accordance with an identified financial reporting framework. The phrases used to express the auditor’s opinion are given a true and fair view or present fairly, in all material respect, which are equivalent terms.

AUDIT METHODOLGY

The audit methodology and the audit techniques to be used are those which accord with international auditing standards.

Substantive testing procedures encompassing the following should be applied:• Inspection of original support documentation;• Inspection of inventory print-outs and physical inspection of assets and• (Where necessary) inspection of computer systems.

EXPECTATIONS/OUTPUT

Through the audit exercise, the auditor will give an independent audit opinion as to the truth and fairness of the accounts prepared. Islamic relief management will get, as a by product, a management letter which will help the management to improve its efficiency. The audit report will also help to submit a return under any Taxation legislation and deposit the tax.

It is expected that the audit is undertaken in accordance with International Standards on Auditing (ISA’s), and in the absence of local charity legalisation have regard to the Statement of Recommended Accounting and Reporting by Charities for the time being applicable, and published by the Charity Commissioners for England and Wales.

The auditors are expected to undertake the audit in accordance with the highest professional standards which will include tests of transactions, and of the existence, ownership and valuation of assets and liabilities.

Ascertain the accounting system in order to assess its adequacy as a basis for the preparation of financial reports.

Report on any significant weaknesses in, or observations on, the field office’s systems.

Undertake an appropriate risk assessment of the field office.

The audit should include site visits to project areas and an assessment of these respective projects.Where IR Haiti is in undertaking projects funded by institutional donors, the audit should include the verification of the expenditure on the project and the income received for the project, including the existence, ownership of any assets purchased for the project.

A report is required to be sent to Islamic Relief International Headquarters stating whether, in your opinion, the financial statements of the field office, which have been audited by your firm, give a true and fair view of the state of the field office’s affairs at the period end, and of its income and application of resources for the period then ended.

The basic fundamentals for prospective auditors are:• Credibility • Professionalism • Independence• Quality of service • Confidence

AUDIT SCOPE

1. Legal & organisational aspects• Legal positions of (Field Office).• Adherence to legal requirements & constitution. For example the keeping of minutes• Right of disposal & decision-making levels.• Attention paid to taxation laws.• Adherence to laws of employment including termination benefit entitlement

2. Accounting System• Detailed bookkeeping.• Supporting vouchers & other documents, including legal requirements in this regard.• Income and Expenditure Account • Balance Sheet.• The use of all Bank Accounts and the regular reconciliation of bank & cash balance.• Debtors• Creditors• Stock ( In Kind Donations)• Fixed Assets (fixed assets register with special reference to the additions, and disposals during the accounting period)

3. Management• Assessment of the system of internal control & the arrangement of the bank account signatories.• Businesslike & economic use of the resources.• Assessment of the accounting system• Assessment of the management & the administration.• Adherence to Islamic Relief Financial Guidelines (copy available at Islamic Relief Field Office).• Assessment of compliance with staff contracts – e.g. are staff benefits and entitlements as stated in contract adequately provided for.

4. Audit report• Audit Opinion in terms of a management letter (such a letter should include recommendations)• Audit Opinion on the Financial Statements• Audit report is required both in English & French Language.• Separate audit report is required for financial year 2010, 2011 and up to July 2012.It is expected that Auditors maintained an open communication approach with the respective IR Haiti

Finance and Administration Manager and Head of Mission and ensure that there is no surprises at the end of the audit.

REPORTING

The Audited Financial Statements and the Management Letter should be sent as soon as possible on completion to:

Finance Department ManagerIslamic Relief Worldwide19 Rea Street SouthBirmingham B5 6LBUnited Kingdom

A copy should be given to the IR Haiti Finance and Administration Manager and the Head of Mission and discussed with them before and during as well as on completion of the audit.Requirements for Proposals from prospective auditors

The prospective auditor is required to submit its understanding about the audit scope, methodology, client resource base and professional fee.

The attached Audit Tender document should be completed and sent to prospective auditors.

AUDIT TENDER

INTRODUCTION

Islamic Relief has consultative status with the UN Economic and Social Council (special category), signatories to the code of Conduct for the international Red Cross and Red Crescent Movement and NGO's Disaster Relief, and members of British Overseas NGOs for Development (BOND).Islamic Relief started its operations in Haiti after devastating earthquake of January 2010 by providing support to the victims of disaster through our relief program. We provided support in food & none food items, tents, transitional shelters, wash facilities.

ORGANISATIONAL STRUCTURE

Islamic Relief headquarter is based in Birmingham UK, with fund raising offices in USA, UK, Germany, Netherland, Middle East Emerging Market and Canada. These offices generate funds and liaise at Headquarter level. These funds are channelized through headquarters to field offices. Our field offices are in Kenya, Malawi, Mali, Somalia, Sudan, Afghanistan, Bangladesh, China, India, Indonesia, Pakistan, Albania, Bosnia and Herzegovina, Chechnya, Kosovo, Egypt, Iran, Iraq, Jordan, Palestine, Yemen, Tunisia, Niger and Haiti.

Islamic Relief started its operations in Haiti after devastating earthquake of January 2010 by providing support to the victims of disaster through our relief program. We provided support in food & none food items, tents, transitional shelters, wash facilities, cholera Prevention, skill enhancement of local communities through computer and tailoring trainings, Education, employment opportunities through cash for work. Islamic Relief also provided the IDPs with temporary shelters in Carrefour and Cite Sole. Currently Islamic Relief is focusing on its School Reconstruction and Rehabilitation Project funded by Islamic Development Bank and it is focusing on its Improving Livelihood and Sanitation in District of Croix Des Bouquets.

Haiti office is headed by Head of Mission who is over all in charge of all operations in the country. To support his there is Program unit lead by Head of Programme Manager and support function is headed by Finance & Administration Manager. Below is the current organogram of Haiti office.

FINANCES

The last 2.5 years’ accounts can be obtained from our office on the address below:

Islamic Relief World Wide-HaitiBellville2, Rue Mapou, No.181,Petion Ville Port au Prince HaitiPhone No. +509-31709051

AUDITORS

Amongst the essential qualities Islamic Relief will consider are as follows:Technical competency

Islamic Relief expects the auditors to have expertise in its area of charitable activity and being able to provide advice in specialist areas such as taxes, Payroll, NGO accounting and risk management.Cultural fit

Islamic Relief expects the auditors that are appointed to understand and sympathise with the purpose, values and methodology of Islamic Relief.
Expertise and experience in the NGO sector

Islamic Relief is an International Relief and Development NGO, 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.

Value for money

Islamic Relief 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.

Islamic Relief expects the audit to be cost competitive and balanced with a quality professional service. Islamic Relief will expect an open and clear approach to audit costs but will be considering overall value for money of the service provided in making its decision.

Partner and manager time

Islamic Relief expects in the proposal a realistic commitment of partner and manager time and consideration of how you will maintain consistent staffing levels.
Communication

Islamic Relief places strong emphasis on personal relationship and good communication. 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 also seeking to appoint auditors that take a risk based approach to financial audit and have an understanding of risk in a broader context than financial risks.

TERMS OF REFERENCE FOR AUDITORSRefer to attached Terms of Reference.

THE FINANCIAL AND ACCOUNTING YEARBelow are key dates in the accounting year for the preparation of accounts and audit reporting, we anticipate a similar pattern to each year in the future.

Islamic Relief

Financial year end Dec 31,2010 & 2011 and 31st July 2013Draft accounts available for audit August20,2013Timing of the audit September20,2013Sign off to draft accounts required from auditors October5,2013Approval by Trustees October30,2013

THE TENDER PROPOSAL

Please provide the following information in the proposal, in the order identified in this section of the tender pack.Details of your firm

Your proposal should:

• Outline your structure, size and capabilities as relevant to us• Identify your firm’s major NGO clients• Describe your audit philosophy and methods• Provide two references of other NGO’s that are your audit clients that can be taken up as required

Staffing

Your proposal should identify:

• The partner and manager who will be assigned to the audit, including details of their relevant experience and qualifications• The time which the partner and manager identified above will devote to the audit• How you manage succession planning and staff continuityAudit approach

Your proposal should identify how you:

• Determine audit strategy and undertake audit planning• Address matters of audit scope and materiality• Identify and respond to critical audit issues• Control and co-ordinate the audit process• Ensure appropriate responsibility for decisions on the audit• Conduct the reporting arrangements• Approach the first year of the auditFees

Your proposal should include separate estimates of your total audit fees for reporting on:

• The NGO accountsA three-year fee schedule based on the document attached as Appendix 2 should be completed and submitted as part of this section of the proposal.In addition in your written proposal you should:

• Provide an analysis of hours by grade of staff that will be involved on the audit together with details of your hourly charge out rates • Indicate the basis of charging expenses• Provide your proposed billing schedule • Outline your proposals for setting and agreeing fees in future years

Your proposal should also contain details of other additional relevant services that your firm would propose to provide, but are not a necessary and integral part of the statutory audit, and where appropriate include these in the ‘additional services’ section in the three-year fee schedule.

TIMETABLE FOR THE TENDER PROCESS

Below is outlined the timetable for the audit tender process.

Activity Deadline

1. Invitation to tender published on local website August21-September4,20132. Confirmation of interest received September 5,20133. Information gathering meetings with Head of Mission and Finance and Administration Manager September 6,2013

1. Tender document received September 6,2013
2. Selection panel review proposals & shortlist September 9,2013
3. Firms informed of results of short listing exercise September 10,2013
4. Oral presentations / Selection panel agrees recommendation September 12,2013
5. IRW approval is sought September 13,2013
6. Firms are informed of IRW's decision September 16,2013

How to apply:

CONSULTANCY CONTRACT

A contract is to be signed and is available upon request. It is up to the applicants to read it thorough and familiarise with the terms contained within. The invoice is to be submitted at the end of the month and will be paid on net payment terms 14 days. The applicant will need to provide all equipment required to undertake the tasks above and this must include a suitable laptop and phone. IRW UK will supply all consumable items including stationary. Working hours and holiday entitlement to be negotiated with assessment panel

The duration of the contract is to be confirmed with the evaluation panel and may be reviewed for a possible extension thereafter; the selected candidate will be based at the Islamic Relief office - Haiti.

The applicant will need to provide all equipment required to undertake the necessary tasks and this must include a suitable laptop and phone.All applicants should have a valid visa for HaitiThe successful applicant will be screened using our Thomson Reuters software.

DATES AND CONTACT DETAILS

All quotations are required to be submitted before 5.00pm (UK time) on the Wednesday 4th September 2013 and be returned to tendering@irworldwide.org.

For any issues relating to the quotation or its contents please email directly to tendering@irworldwide.org.

APPENDIX 1

Please fill in the table below it is essential all sections be completed and where relevant additional expenses be specified in detail.

Cost evaluation of audit services (Haiti), August 2013 Applicants/Company name

No of proposed hours per week
No. of proposed days
Preferred days
Earliest available start date
Non preferred days
Hourly rate Total per week
VAT inclusive (Total)
Other expenses (please specify)
Other expenses (please specify)
Other expenses (please specify)
Preferred payment terms (IRW UK terms are normally 14 days).

Total cost for consultancy (for proposed period)

NoteThe applicant is expected to pay full taxes in his/her native country (s), native country is referred to here as the country of residence.

APPENDIX 2

As part of your written submission you are asked to submit your proposed fees schedule for the next three years.

Audit review Year ended 31 December 31st July 2010 2011 2012 2013 US$ US$ US$ US$Islamic Relief

Other optional work (eg Taxes, PAYE review – please specify on project by project basis) Year ended 31 December Jul13 2010 2011 2012 2013 US$ US$ US$ US$Project A
Project B
Project C

NB: The fees quoted should include all chargeable time, out of pocket expenses (e.g. travel) and be all-inclusive fee only.