TERMS OF REFERENCE FOR FINANCIAL AUDIT OF DEFEND RECORD YAKO PROJECT

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Introduction

Siasa Place (SP) is a youth Non-governmental Organization (NGO), established in 2015 that specializes in working with youth and building institutional structures that support youth. Since its inception,  SP has focused on youth expertise in policy review,  participation in decision making processes including budget processes, and trained youth on policy making both at the national and county level, to improve and increase accountability.

Project Background

Defend Record Yako is a project aimed at capacity building youth to gain awareness on the  tools and methods  through which they can organize around public participation in governance and establish a working relationship with leaders to create an enabling environment for effective engagement between youth and County leaders.

Siasa Place wishes to engage an auditor to examine the finances of the Defend Record Yako project, as is stipulated in the agreement between Siasa Place and ForumCiv. The audit is to be carried out in accordance with the International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB).

Objectives and scope of the audit 

The auditor shall examine the financial reports for the period January-December 2021 submitted to ForumCiv by Siasa Place and to express an audit opinion according to ISA 800/805 on whether the financial reporting regarding the Defend Record Yako project submitted to ForumCiv is in accordance with Siasa Place’s accounting, established budget and ForumCiv’s instructions for financial reporting as stipulated in the agreement including appendix between ForumCiv and Siasa Place.

Core Deliverables

  1. Follow up whether salary costs debited to the project/programme are recorded throughout the duration of the year in a systemized way and examine whether the salary costs can be verified by sufficient supporting documentation. 
  2. Examine whether the financial report includes a comparison, for every budget item, between the actual costs/expenditures of activities and the budgeted costs/expenditures as approved by ForumCiv for the period. 
  3. Based on materiality and risk the auditor shall examine whether there is supporting documentation related to incurred costs. Regardless of materiality of the findings the auditor shall quantify the amount for costs lacking sufficient supporting documentation. 
  4. Examine whether foreign exchange gains/losses are disclosed as a separate item in the financial report as well as disclosed in accordance with what is stipulated in the agreement including appendices and generally accepted accounting principles. 
  5. Siasa Place’s compliance with the applicable tax legislation with regard to taxes (e.g. PAYE) and social security fees.
  6.  Review if outgoing balance for the previous period is the same as incoming balance for the current period.
  7.  If Siasa Place applies a modified cash basis as accounting principle, the auditor shall describe the method used and motivate whether the applied accounting principle is acceptable for this type of financial report. 
  8. Verify the unspent balance at the end of the financial year against accounting records and its supporting documentation. 
  9. Verify the unspent balance that shall be repaid to ForumCiv in the final report of the last agreement year.
  10. Follow up whether Siasa Place has implemented recommendations from the previous audits reports of the program. The examination includes reviewing whether Siasa Place has implemented the action points as described in Siasa Place management response that has been submitted to ForumCiv in connection with audit reports. The examination also includes reviewing whether Siasa Place has followed up the action points, in all subsequent links. 
  11. The reporting shall also include a Management letter that discloses all audit findings (significant and other findings), as well as weaknesses identified during the audit process. 
  12. The financial report that has been subject to the audit shall be attached to the audit reporting. 
  13. The auditor shall make recommendations to address the identified findings and weaknesses.

The responsible auditor must sign the report (not just the audit firm) and shall include the title and CPA Number of the responsible auditor. If the auditor assesses that no findings or weaknesses have been identified during the audit that would result in a Management Letter, an explanation of this assessment must be disclosed in the audit report.

Measures taken by Siasa Place to address weaknesses identified in previous audits shall also be presented in the Management Letter. 

Eligibility Criteria

A firm seeking to apply should be registered in Kenya and must have been in operation for at least five (5) years providing both audit and tax services. Additionally, the firm must demonstrate experience in auditing of not-for-profit entities and organizations.

The following information should be provided:  

  1. Copy of certificate of incorporation/registration  
  2. PIN Certificate 
  3. Valid certificate of tax compliance  
  4. Valid certificate of good standing from the Institute of Certified Public Accountants Kenya (ICPAK)

Submission of proposals

Interested and eligible firms can submit a short outline methodology of how they would conduct the audit, a brief profile of the company which includes profile of past work done and budget via support@siasaplace.com

The last date for application will be on Thursday 20th January 2022, 12pm EAT

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Siasa Place is an NGO formed 2015 that aims to create an enabling environment for women and youth mainstreaming into our body politics.

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