ITPC Global: Call For Proposals-Provision Of Annual External Audit Services

INTERNATIONAL TREATMENT PREPAREDNESS COALITION-GLOBAL (ITPC)
Please note: this opportunity closing date has passed and may not be available any more.
Opportunity closing date: 
Wednesday, 31 July, 2019
Opportunity type: 
Call for proposals

ITPC is a worldwide network of community activists united by our vision of a longer, healthier, more productive life for people living with HIV and/or AIDS (PLWHA). ITPC’s mission is to enable communities in need to access HIV treatment. ITPC was formed in 2003 at a historic meeting of 125 HIV treatment activists, mostly from the global south, that took place in Cape Town, South Africa.  In 2005, ITPC registered as a company limited by guarantee. It is was incorporated in Botswana under the Botswana Companies Act. Until 2018 the Botswana entity has being operating as the Global office.  In 2016, ITPC-Global registered as a not for profit organisation incorporated under the Companies Act of South Africa. 

ITPC operational budget and expenditure for FY 2018 was around $4,6 million and for FY 2019 its expenditure is project to be $7,6 Million. In FY 2016 and 2FY 2017 ITPC was still in organisational phase and there was no budget nor expenditure incurred through the South Africa Office.  ITPC current main programme areas are around:  HIV-advocates for treatment access across the globe through the focus of three strategic priorities:

  • Treatment education and demand creation (#TreatPeopleRight)
  • Intellectual property and access to medicines (#MakeMedicinesAffordable)
  • Community monitoring and accountability (#WatchWhatMatters)

Our organisation ITPC-Global requires the services of a Registered Auditors to perform the annual statutory external audit for the period commencing December 31, 2018

TERMS OF REFERENCE FOR THE PROVISION OF ANNUAL EXTERNAL AUDIT SERVICES:  RFP Number: ITPC/AEA/RFP/7/2019

Project Description 

ITPC seeks to appoint a firm that has solid experience in both NPO sector and Grants, in order to provide the users of the audited financial statements reasonable assurance of the quality of work performed. In that respect, ITPC requires the services of a firm of Registered Auditors to perform the annual statutory external audit for the period commencing December 31, 2018.

Broad Objectives:

  • 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 organization in accordance with International Financial Reporting Standards for Small and Medium Entities (IFRS-SME’s) and the SMEs) and the requirements of Companies Act of South;
  • To evaluate the effectiveness of financial, management and governance, programmatic and administrative systems, controls and structures of the organization;
  • To review the effectiveness of ITPC’s risk management systems and processes;
  • To review ITPC’s compliance with both internal and external policies and review compliance with the laws of South Africa;
  • To review the effectiveness of management of donor funded projects in the organization.

Objectives and Scope of The Audit:

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

  • The auditors shall express an independent professional opinion as to whether the financial statements present fairly, in all material respects, the financial position of ITPC 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.
  • 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.
  • The auditor should submit a letter to the management at the completion of the audit. The topics/issues to be covered in the letter should include: 
    • Give comments and observations on the accounting records, systems and controls that were examined during the course of the audit; 
    • Identify specific deficiencies or areas of weakness in systems and controls, and make recommendations for their improvement; 
    • Communicate matters that have come to his/her attention during the audit which might have a significant impact on the implementation of the project; 
    • Give comments on the extent to which outstanding issues/qualifications issues have been addressed; 
    • Examine, assess and report on compliance with the terms and conditions of the agreement/s between funding partners/donors and ITPC and applicable laws and regulations within accounting and taxes; 
    • Give comments on previous audits’ recommendations that have not been satisfactorily implemented; and 
    • Bring to the recipient’s attention any other matters that the auditor considers pertinent, including ineligible expenditures. 
    • Recommendations to resolve/eliminate the internal control weaknesses noted should be included.
    • Management comments/response to audit findings and recommendations.
    • If ITPC channel funds/grants to other organisations, the auditor shall examine if ITPC has followed funding partners audit requirements in the next step and have satisfying routines/resources for acting on received audit reports from these organisations.

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 ITPC for funding donors files.

 Auditor’s Report

  • In preparing the audit report, the selected audit firm will issue an audit opinion on the financial statements in accordance with International Financial Reporting Standard for Small and Medium-sized Entities.

All financial information presented has been rounded to the nearest United States Dollar (USD), the functional currency. The financial statements are prepared on the historical cost basis, except where disclosed otherwise. The financial statements should include the following components.

  • An Income and Expenditure Statement (IES).
  • A statement of financial position
  • A statement of changes in net assets
  • Any other footnotes applicable
  • Supplemental statements on advances and fixed assets.

Responsibility for preparation of Financial Statements:

  • The responsibility for preparation of the annual financial statements lies with the ITPC directors and management.

    • Directors will prepare the annual financial statements in accordance with IFRS for SMEs.
    • Management is responsible for implementation of accounting, administrative and financial procedures documented in the ITPC manuals.
    • ITPC financial year end runs from 1 January to 31 December.
    • Rotation of auditors will be done at least after 3 years at the discretion of the ITPC management and Board of Directors. NB ITPC reserves the right to terminate the engagement should it deems necessary even before 3 years.
    • Access to Facilities and Documents
    • The auditor will have full and complete access at any time to all records and documents (including books of account, legal agreements, minutes of Board meetings, bank records, and all employees of the entity. The auditor will have a right of access to banks and depositories, consultants and other persons or firms engaged by the management over the period under the audit review.

Selection Criteria:

  • ITPC will do the adjudication after the proposal submission deadline. The selection criteria will include the following:

    • Eligibility - authorization by the State Board of Accountants to conduct audits.
    • Experience of your firm in relation to the scope of audits for non-Profit organization.
    • A list of similar non-profit organizations served by your firm.
    • 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.
    • Audit firm staff stability history - what assurances can you provide regarding the assignment of your permanent personnel to the engagement.
    • 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
    • Detailed audit plan/methodology including your approach to risk and fraud detection.
    • Estimated number of hours to complete the audit by classification of your employees, i.e. partners, senior, junior.
    • Detail of expenses expected to be incurred, i.e. mileage, per diem, telephone, etc.
    • Time Requirements.

Required Profile of The Audit Firm:

  • Audit Firms will be required to meet the following criteria:

    • Eligibility – registration with IRBA and local regulatory boards to conduct audits.
    • Experience of your firm in relation to the scope of audits for non-Profit organization, grants and grantee audits etc):
      • List Three references of similar audits.
      • Your staff assignments and availability to complete the audit on a timely basis.
      • Be registered with IRBA and its partners must hold a current Practicing Certificate.
      • Have at least two partners who must be of good standing with the relevant institute, while the Firm and its Partners should not have been subject to any disciplinary action by IRBA or other related professional bodies.
      • Should have been in operation for a period of at least 5 years and undergone a Quality Assurance Review by relevant institute.
      • Should demonstrate that it has the capacity, capability and experience required to undertake the audit within required timelines.
      • In addition, the Firm should demonstrate experience in using computer assisted audit techniques to evaluate large data sets.

Proposal Submission

  • Audit Firms meeting the above criteria are requested to submit their proposals
    • Technical and Financial Proposal containing:
    • Confirmation of the Firm’s understanding of the Terms of Reference and its capacity and capability to deliver on the TOR;
    • The methodology, work-plan and timelines for undertaking and completing the assignment, and the deliverables;
    • The Approach:
      • Overall audit approach.  Description of the overall audit philosophy and how it benefits ITPC, including firm’s philosophy on communications with clients throughout the year, scheduling of engagements, and continuity of staff on audit.
      • Specific audit approach.  Description of specific audit approach used in the audit to ensure that the auditors will cover all pertinent areas. 
      • Audit effort.  Description of where the engagement team will focus their attention, to ensure critical areas are appropriately covered.
      • Timing of the services: detailed timetable by phase, to ensure it meets ITPC needs, and to document expected delivery of the audited financial statements, audit report and management letter.
      • Estimated number of hours to complete the audit by classification of your employees, i.e. partners, senior, junior.
      • Nature of services: the proposal should specifically set out the exact nature of the services provided to ensure ITPC knows exactly what it is getting for the fees quoted.
      • Appropriate references to demonstrate having the experience specified in the TOR;
      • The CVs of key staff proposed to do the assignment.
      • Financial proposal indicating the proposed fees and expenses.
  • Audit firms should also submit the following documents with their Technical Proposals:
    • Proof of registration with relevant governing and regulatory institute and Partners’ Practicing Certificates;
    • Confirmation that neither the firm, nor any of its partners or key staff, have faced any disciplinary action by IRBA or other professional bodies;
    • Confirmation that the firm and / or its partners and key staff are not aware of any conflict of interest which may exist with respect to company;
    • The proposal should indicate anticipated fees for the second and third years if retained.

Condition for Proposals:

  • Only electronic submission via email will be accepted.
  • Proposals received after the set time (16h00) will be disqualified.
  • The Firm must include a cover letter clearly stating the name of the firm and name; address and telephone number of the Firm’s representative.
  • The Firm shall furnish such additional information that ITPC may reasonably require.
  • ITPC will not be liable for any cost incurred in the preparation of the proposal.
  • ITPC may invite Firms for an oral interview/ presentation prior to the approval of a proposal; however, ITPC will not be liable for the costs incurred by the Firm in connection with such interview or presentation.
  • ITPC will keep the contents of the application strictly confidential.
  • The information/data provided in this document, together with any subsequent issue of addenda of information/data is given in good faith for guidance of applicants. No warranties or representations are given regarding accuracy or completeness of such information

Submission of Proposals:

Firms are at liberty to discuss  and seek clarity to any aspect of this request for proposal with the entity and enquiries must be referred to: Finance@itpcglobal.org 

ITPC does not take any responsibility for any procedural and substantive information obtained from a source other than the above-mentioned official. For more information about ITPC see website: http://itpcglobal.org/ 

Special Condition:

  • Firms who do not have a fully resourced office in Pretoria or Johannesburg, will not be considered.

To view other opportunities, refer to http://www.ngopulse.org/opportunities/other

For more about ITPC, refer to http://itpcglobal.org/

Location: 
South Africa

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