Call for Proposals: Terms of Reference for External Audit

National Alliance of State & Territorial AIDS Directors (NASTAD)
Please note: this opportunity closing date has passed and may not be available any more.
Opportunity closing date: 
Friday, 6 November, 2015
Opportunity type: 
Call for proposals



NASTAD South Africa is a not for profit organisation incorporated under section 21 of the Companies Act of South Africa. NASTAD South Africa works in partnership with the U.S. Centers for Disease Control and Prevention as a part of the unified U.S. response to the HIV pandemic through the U.S. President's Emergency Plan for AIDS Relief (PEPFAR). NASTAD’s primary partners in South Africa have always been Provincial Departments of Health (PDoHs). Using its peer-to-peer capacity building model, NASTAD-SA works to expand and enhance provincial HIV/AIDS prevention, treatment and care programs by providing technical assistance and support for program management, coordination, implementation, and monitoring and evaluation.

NASTAD-SA’s October 2014-Sept 2015 operational budget is around ZAR8,9 million.

Objectives and Scope of the Audit

The objective of the audit is for the auditors to conduct audit reviews as follows:

  1. The auditors shall express an independent professional opinion as to whether the financial statements present fairly, in all material respects, the financial position of NASTAD-SA in accordance with the International Financial Reporting Standards for Small and Medium Entities (IFRS for SMEs) and the requirements of Companies Act of South Africa.
  2. The audit shall be carried out in accordance with the International Standards on Auditing (ISAs) as issued by the International Federation of Accountants (IFAC). The auditors in their duties shall comply with the duties imposed upon them by the Audits Professions Act and the Companies act of South Africa.
  3. Management letter-The Auditors should submit a management letter after the completion of the audit in which auditors will:
    1. Identify specific deficiencies or areas of weakness in systems and controls, and make recommendations for their improvement;
    2. Examine on test basis that appropriateness of supporting documents, records and books of accounts relating to all project activities;
    3. Include management responses to audit findings and recommendations;
    4. Any matters that come to the auditor’s attention during the audit that might have a significant impact to the implementation of the programme.
    5. Examine, assess and report on compliance with the terms and conditions of the agreement between funding partners and NASTAD-SA and applicable laws and regulations within accounting and taxes; 
    6. The auditor shall report the identified amount in case there are any missing supporting documents;
    7. Any matters that come to the auditor’s attention during the audit that might have a significant impact to the implementation of the programme.
  4. If NASTAD-SA channel funds to other organisations, the auditor shall examine if NASTAD-SA has followed funding partners audit requirements in the next step and have satisfying routines/resources for acting on received audit reports from these organisations.
  5. The audit reports shall:
  • Contain details of the method and scope of audit and assurance that the audit was performed in accordance with International Standards of Auditing and by a qualified auditor.
  • Signed by the auditor responsible stating the title.
  • Written in English
  • Issued in soft copy for circulation to Partners and 10 hard copies will be produced and delivered to NASTAD-SA for partners files.

Responsibility for preparation of Financial Statements

The responsibility for preparation of the annual financial statements lies with the NASTAD-SA directors and management.

  1. Directors will prepare the annual financial statements in accordance with IFRS for SMEs.
  2. Management is responsible for implementation of accounting, administrative and financial procedures documented in the NASTAD-SA manuals.
  3. NASTAD-SA financial year end runs from 1 October to 30 September.
  4. Rotation of auditors will be done at least after 3 years at the discretion of the NASTAD-SA management and Board of Directors. NB NASTAD-SA reserves the right to terminate the engagement should it deems necessary even before 3 years.

Selection Criteria

NASTAD-SA will do the adjudication after the proposal submission deadline. The selection criteria will include the following:

  1. Eligibility - authorization by the State Board of Accountants to conduct audits.
  2. Experience of your firm in relation to the scope of audits for non-Profit organization.
  3. A list of similar non-profit organizations served by your firm.
  4. Your staff assignments and availability to complete the audit on a timely basis.
  • Participation of senior audit personnel assigned to the engagement.
  • Depth of Technical Resources (CV of the assigned team leader).
  • Availability of staff to respond to questions within the scope of the engagement and the hourly charge, if any, for services outside the scope of the audit.
  1. Audit firm staff stability history - what assurances can you provide regarding the assignment of your permanent personnel to the engagement.
  2. Proposed fee for the engagement including a schedule for additional services that may be necessary beyond the scope of the audit engagement. The proposal should indicate anticipated fees for the second and third years
  3. Detailed audit plan/methodology including your approach to risk and fraud detection.
  4. Estimated number of hours to complete the audit by classification of your employees, i.e. partners, senior, junior.
  5. Detail of expenses expected to be incurred, i.e. mileage, per diem, telephone, etc.
  6. Time Requirements.

NASTAD-SA is funded by Centers for Disease Control (CDC) under President’s Emergency Plan for AIDS Relief (PEPFAR).
The NASTAD-SA Reserves the Right:

  • To reject any and all proposals submitted.

Only shortlisted audit firms will be contacted. Please note that this advert contains full Terms of Reference, hence no further tender documents are available.

Proposal submission   
Deadline for submission 6 November 2015


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