Other Dar es Salaam District Dar Es Salaam
1.1 Background Summary
Through its Institutions for Inclusive Development (I4ID) programme (2016-2021), the UK is contributing up to £10 million over 5 years to strengthen democratic institutions and governance in Tanzania so that they are more inclusive and accountable, and economic growth provides more benefits for poor people.
The programme has two linked outcomes:
Key democratic institutions have more capacity, and are more accountable and inclusive; and
Government, civil society and the private sector collectively put into practice institutional arrangements that promote public interests.
Together these contribute to the impact: more accountable and inclusive Tanzanian political and government institutions.
The Head Contract is held by Palladium International Ltd, while local implementation is managed by Futures Group Global Outreach Tanzania. Futures Group Global Outreach Tanzania is a legal entity registered in Tanzania that falls within the Palladium group of companies.
Palladium is seeking an External Audit Company to carry out a comprehensive audit of the I4ID Project. The audit will cover the period 13th June 2016 to 31st May 2017.
1.2 Audit Objective
The objective of the audit of the Financial Statements is to enable the auditor to express a professional opinion on the financial position of the project at the end of the reporting period and of the funds received and expenditures for the reporting period, as reported by the Palladium and the sub-contractors and in particular to confirm that the reported expenditure has, in all material respects, been used in conformity with the provisions of the Head Contract, including any amendments thereto as contained in implementation letters, and any applicable guidelines in force and applicable to the audit scope, and with due attention to economy and efficiency.
To also confirm that the Financial Statements agree with the Project accounts (books of account) which provide the basis for preparation of the Financial Statements and are established to reflect the financial transactions in respect of the Project, as maintained by the Company and the sub-contractors.
To also confirm that the Financial Statements agree or reconcile with any other information reported to DFID.
Scope
The audit will be carried out in accordance with international standards of auditing. It will include such tests and controls as the auditor considers necessary including visits to the project office. Representative sampling may be used as the auditor considers necessary. This exercise is required to give full and satisfactory audit discharge to the project expenditure from 13th June 2016 to 31st May 2017.
Specific focus will be:
To establish that the funds have been recorded and funds have been expended in accordance with the terms and conditions of the contract.
Items and services have been procured in accordance with the guidelines included in the contract.
Necessary supporting documents, records and accounts have been kept in respect of programme expenditure.
To establish the physical existence of DFID-funded project assets per the asset register, their conditions and locations.
Whether the systems, procedures and controls, contractual or otherwise, adopted by I4ID Project are efficient, effective and transparent.
Whether these systems, procedures and controls enable I4ID Project to discharge its contractual obligations to DFID, including its financial and project management obligations.
Whether improvements to I4ID Project systems, procedures and controls can be made as a result of the findings of this audit.
Whether the funds in I4ID Project account were deposited, transferred and expensed properly in compliance with DFID guidelines and other relevant financial policies and procedures as stipulated under the contract.
Special attention will be paid to the following in conducting the audit:
a. Compliance with applicable legislation – Verify that the Financial Statements comply in all material respects with any applicable legislation;
b. Project expenditure – Project expenditure were spent in conformity with the approved budget and work plan existing at the time of the expenditure and in line with provisions of the Head Contract, with due attention to economy and efficiency, and only for the purposes for which the funds were provided.
c. Fraud and Corruption – The auditors shall identify and evaluate risks related to fraud, obtain or provide sufficient evidence of analysis of these risks and assess properly the risks identified or suspected;
d. Risk – With a view to reducing audit risks to an acceptable level, the auditors will apply appropriate audit procedures and handle anomalies/risks identified during their evaluation, in accordance with applicable national auditing standards;
e. System of internal controls - Comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures at all levels of the Project and other financial transactions including special attention to the adequacy and effectiveness of controls around cash transactions;
f. Safeguarding of assets - Verify that the company has put in place mechanisms for the tracking and safeguarding of assets purchased with project funds and that they are being used for the intended purposes. Verify that Project’s fixed assets register exists, is maintained in accordance with the Head Contract;
g. Goods and services – Verify that goods are procured transparently, competitively and in accordance with the Head Contract and relevant procurement Guidelines approved by DFID;
h. Payment to sub-contractors - Verify that payments made by the company to subcontractors are in line with the Subcontractor Agreements and the approved work plan and budget. Verify that the Company follows adequate process for validating expenditure reports submitted by the sub-contractors;
i. Data retention and supporting documentation - All necessary supporting documents, records, and accounts have been retained in compliance with provisions of the Head Contract. Procedures exist for security and management of electronic data (backup systems and procedures, etc.);
Methodology
The approach should include but not be limited to:
• Hold pre-engagement meeting with the Company to present an outline of the planned approach for conducting the exercise.
• Request and hold formal interviews with the I4ID Project Management team with a view to forming an understanding on the effectiveness of the internal control system in the management of the project.
• Examination of the financial transactions of the Project under the management of the Company for the above period in line with expectations set out in the project documents listed below (to be made available after the contract has been signed). Note that the financial records would consist of all documents relevant to the raising of an invoice; for personnel this would mean being supported by timesheets rather than the actual invoices from consultants:
-The Head Contract,
-The most recent logical framework,
-DFID assets management guidance note (captured in SMART rules)
-Amendments to the Company’s head contract,
-Approved work plans for the period under review,
-Any other formal correspondence between DFID and the Company which may have effect on the focus, direction and expenditure activities of the programme.
• Review and vet invoices for fees and reimbursable expenses by the Company and ascertain that:
-The basis for which invoices have been calculated are in line with obligations within the Company’s Head Contract.
Deliverables from short and long term consultancies were properly delivered and received before relevant costs were charged to DFID.
Duly authorised time sheets are available for personnel days charged to DFID during the period under review.
Fees charged to DFID are for the contractually approved productive days only.
-Scheduled leave days are appropriately discounted from billable days on long term personnel fees.
• Review and vet bills paid for services rendered by Consortium members (sub-contractors) and ascertain that:
-Services billed in the period under review are covered in the relevant sub-contracts.
-Approved timesheets are available to substantiate all days billed by Consortium members.
• Review the procurement process and procedures for all short term contracts for the period under review and ascertain that:
-Transparent and open systems are in place to ensure negotiations for contracts (services, works and printing) are competitive and represent good value for money.
-Appropriate procedures are in place to document and manage conflicts of interest that may arise from related party transactions.
• Review the structure of the I4ID Project Management Office in Dar es Salaam and ascertain that job functions are clearly defined and that no overlaps exist.
• Review the assets register to ensure it is up to date and confirm that:
Supplies for direct purchases have been fully recorded with clear identification marks.
The physical existence and conditions of assets in Dar es Salaam.
• Express an opinion on the cost effectiveness, accuracy and completeness (i.e. value for money) of the financial transactions for the period under review.
• Prepare a project expenditure report showing receipts and expenditure summaries from June 13th 2016 to 31st May 2017 and express an opinion on the financial transactions for the period covered.
• Review the Terms of Reference for the contract (and subsequent amendments) to ascertain the extent to which the Company has complied with specified reporting requirements.
• Subject to availability, meet with DFID project team.
• Bring to the attention of Palladium and DFID any suspected fraud or irregularity that arises during the course of the audit and communicate matters that have come to attention during the audit which might have a significant impact on the implementation of the project.
Deliverables
• Audited financial report (hard and soft copies) for the period noted.
• A management letter, which should highlight observed weaknesses in the system of internal control and the recommendations for managing the identified issues over the life of the programme.
• A statement of compliance with DFID terms and conditions as contained in the Company’s contract.
• A verification report on programme funded assets.
Timing
The work is expected to run for a maximum of 10 business days commencing from July 3, 2017. The audit firm is expected to submit first draft of report by July 14, 2017 and the final report not later than July 31, 2017. Exit conference to be held in the week beginning 24th July, following the Company’s receipt and review of the draft report.
Apply for this job
EoI must reach at the address mention below by 7th June 2017 at 2.30PM in sealed envelopes marked “EoI for I4ID Audit”
Senior Finance Manager
Institutions for Inclusive Development
Mwai Kibaki Road/Kiko Avenue, Mikocheni Area
TCRS Building, Plot 436, Block 11, Ground Floor
P. O. Box76724
Dar Es Salaam, Tanzania