External Audit Services – TORs
Lusaka, Zambia Salary: 00000
EXPRESSION OF INTEREST
PROVISION OF SERVICES FOR THE EXTERNAL AUDIT OF THE FINANCIAL STATEMENTS FOR HABITAT FOR HUMANITY ZAMBIA (HFHZ)
1. Organization background
Habitat for Humanity Zambia (HfH Zambia) was founded in 1984, out of the need for quality shelter in the Country. Based on Christian principles of love and care, HfH Zambia has been providing low cost housing solutions to communities in Zambia for over 30 years. Its values remain; a demonstration of love of Jesus Christ, focusing on shelter, advocacy for affordable housing, promoting dignity and hope and supporting sustainable and transformational development. In the recent past, strategic direction has pointed at improving urban housing designs and quality using low cost and environmentally friendly materials, improving shelter for orphans and vulnerable children, and delivering community housing services such as water and sanitation, including home improvement. To date; HfH Zambia has been successful in Advocacy and building low cost houses in both urban and rural areas. Other successes include beneficiary capacity building knowledge in property rights, construction processes and Will writing resulting in community based participatory construction and secure tenure for families, and trainings in Savings and Financial Literacy.
2. Audit Scope
Habitat for humanity Zambia (HfH Zambia) wishes to hire services of an external auditor for the audit of financial statements of HfH Zambia for the period 1 July 2020 to 30 June 2021, with a possible extension for the next Two (2) years. The audited financial statements must be prepared in accordance with International Accounting Standards and applicable laws and reporting framework in the Republic of Zambia. The audit must be conducted in accordance with applicable International Standards on Auditing. The Auditor is expected to meet the following reporting milestones:
Draft audited financial statements to be submitted within Eight (8) weeks from the date of commencement of the audit including the day for audit briefing.
The final and signed audited financial statements should be submitted within Fourteen (14) working days after approval of the draft audited financial statements.
The signed audited financial statements and management letter for the financial year ended should be made available not later than 30 November 2021.
Sufficient audit evidence should be gathered to substantiate in all material respects the accuracy of financial statements. The audit report of the auditors should state whether the financial statements of HfH Zambia were or were not in conformity with any of the above standards including the policies of HfH Zambia and Habitat for Humanity International (HfHI). The final audited financial statements must be reflective of the following:
i. Statement of financial position
ii. Statement of income and expenditure
iii. Statement of Cash Flows
iv. Statement of Changes in accumulated funds, and
v. Comprehensive notes disclosures
3. Audit reporting
The audited financial statements must be submitted with an auditor’s opinion and shall contain the methodology applied and the scope of the audit.
The report shall also contain an assurance that the audit was performed in accordance with international standards and by a qualified auditor.
The reporting shall contain the audit approach which will describe the audit procedures employed
The reporting shall contain the responsible auditor’s signature and title.
The auditor shall submit an audit management letter, which shall contain the findings made during the audit process. It shall state the recommendations implemented from the previous audits and whether measures taken have been adequate to deal with reported shortcomings.
The auditor shall make recommendations to address any weaknesses identified. The recommendations should be presented in priority.
The auditor shall report by stating whether the audited financial statements are true and fair in all material respects.
Report on the degree of compliance with each of the financial principles on the grants agreements and give comments, if any, on internal and external matters affecting such compliance.
Communicate matters that have come to their attention during the audit that might have a significant impact on the implementation and sustainability of existing projects.
The audit exercise shall be performed in a period of Eight (8) weeks and the auditor will be given 2 more weeks to compile and submit the report.
4. Management Letter
The Auditors should submit a letter to management at the completion of the audit. The issues to be covered in the letter should include:
i. The assessment of the efficiency of the administration, management, and internal control systems of HfH Zambia.
ii. A description of any specific internal control weaknesses noted in the financial management. Recommendations to resolve/eliminate the internal control weaknesses noted should be included.
iii. Management comments/responses to audit findings and recommendations.
5. Auditor Independence and Qualifications
To perform the audit of Habitat for Humanity Zambia, the following requirements must be met:
The Auditors must be impartial and independent from all aspects of management or financial interests in the entity being audited. The Auditors should not, during the period covered by the audit nor during the undertaking of the audit, be employed by, serve as Director for, or have any financial or close business relationships with any senior member in the management of HfH Zambia
The Auditors should disclose any relationship that might possibly compromise their independence.
The Auditors should be experienced in applying auditing standards; The Audit Firm must deploy adequate staff with appropriate professional qualifications and suitable experience in auditing the accounts of Non-Governmental Organisations.
The audit firm should be registered and have a valid license from the Zambia Institute of Chartered Accountants and other regulatory bodies (PACRA, ZRA etc.)
The key audit team will comprise of, at least: An audit manager with at least 10 years’ experience in auditing and with sound knowledge of donor-financed projects.
6. Access to Facilities and Documents
Financial recordings are automated in Sun Systems accounting package, the supporting documents in the form of payment vouchers are filed manually.
The Auditors will have full and complete access at any time to all records and documents (including books of accounts, Donor agreements, minutes of the Board meetings, bank records, invoices, contracts etc.) and all employees files of HfH Zambia.
Further, the Auditors will have a right of access to banks and depositories, consultants, contractors and other persons or firms engaged by HfH Zambia over the period under the audit review.
Interested firms should submit financial and technical proposals showing a clearly defined approach of the assignment, the cost implication, and the period. Due to Covid-19 and the need to adhere to Public Health measures and guidelines, proposals must be submitted electronically as a compressed folder to Procurement@habitatzam.org.zm no later than 31st March 2021.
Eligible bidders must submit the following documents together with their bids; –
A company profile with details of physical address and contact details
A Tax Registration Certificate – with TPIN
Valid Tax Clearance Certificate
For any clarifications, please reach the organization on the following contact details; Phone: +260211251087, Mobile: +260961877251, email: firstname.lastname@example.org