TOR For Conducting And External Audit at Corus International

TOR For Conducting And External Audit at Corus International

TERMS OF REFERENCE FOR CONDUCTING AN EXTERNAL AUDIT FOR IMA WORLD HEALTH AND LUTHERAN WORLD RELIEF

• BACKGROUND

Legacy Lutheran World Relief (LWR) and IMA World Health (IMA) are the organization works in Tanzania to improve and increase access and utilization of quality health services, livelihoods, and institutional capacity of country health systems.

 The annual turnover subject to audit is USD 409 thousand and USD 277 thousand for IMA and LWR, respectively.

• OBJECTIVE OF INDEPENDENT AUDIT

The overall purpose of the audit is to:

• Express an opinion on whether the income statement for the period present fairly, in all material respects, revenues received, and costs incurred for the period audited in accordance with the approved budget, and in conformity with generally accepted accounting principles.
• Review IMA’s and LWR’s internal control structure to determine whether management has put in place satisfactory controls aimed at preventing, detecting, reducing or eliminating errors and irregularities, and to report any significant internal control deficiencies and material weaknesses.
• Test compliance with the terms of the agreements with donor and applicable laws and regulations as part of obtaining reasonable assurance about whether the financial statements are free of material misstatements and report on any identified material instances of noncompliance.

• SCOPE OF WORK

This independent audit will cover the period from October 1, 2023, to September 30, 2024, and the assessment will focus on following areas:

• Examine IMA and LWR Tanzania’s financial transactions to ensure supporting documents are accurate, reliable, and free of material misstatement.
• Assess the overall presentation of IMA and LWR financial statements and make sure they are in accordance with the approved budgets.
  • Examine the effectiveness of systems, policies and procedures which were in place during the audit period.
  • Review procurement activities to determine whether IMA’s and LWR’s procurement and contracting policy and procedures as well as best practices were followed and adequacy of these procedures.
  • Review financial statements to ensure that they are presented in accordance with Generally Accepted Accounting Principles and International Financial Reporting Standards.
  • Review systems, procedures, and management to determine whether these provide adequate internal controls.
  • Review income and expenditure records including the payroll and benefits administration to ensure compliance with the donor requirements, local labour and other applicable laws.
  • Review and document the implementation of corrective action plan(s) for prior audit findings.

• TIMING AND DURATION 

The field work is expected to commence no later than March 1st, 2025. The audit firm is expected to submit a draft report to CORUS for management response by March 30th, 2025, and submit the final report not later than April 30th, 2025

The timeline for the completion of the evaluation is firm. Delay in submission of the deliverables that are not the fault of IMA and LWR will result in a reduction in the final payment to the auditor.

•  DELIVERABLES

The auditor will submit:

1. Audit Report: Audit report stating an opinion on whether the financial statements give a true and fair view of state of financial affairs for the period under review.
2. Audited Financial Statements, Statement of Cash Flows, and Management Letter for the Financial Year Ending 30th September 2024

• IMPLEMENTATION ARRANGEMENTS

IMA will orient an external auditor on the scope of the work. The audit company will outline the methodology for undertaking audit exercise, IMA and LWR will submit all required documents. The consultant will provide his/her own working space, associated resources and equipment. IMA and LWR will reimburse the actual cost incurred by consultants for transportation and stationaries upon submission of receipts based on the agreed rate up to defined limit established within the contract agreement.

• QUALIFICATION

In responding to this request, the firm will submit their profile, which will include:

1. Contact person and Firm’s contacts
2. Firm’s experience in providing auditing services to organizations in the not-for-profit sector, especially international organizations
3. Audit approach and methodology
4. Names and resumes of key personnel that will conduct the audit
5. Organizational details, including firm name, year established, copy of firm’s certification (including TIN certificate, copy of business permit and Valid Tax Compliance certificate)
6. Name of any international association to which your firm belongs.
7. Cost proposal for the proposed services and proposed method of invoicing.
8. Disclosure of anyone in your firm currently serves as a government official or has served as a government official in the past 5 years.
9. Description of your experience in auditing International NGOs including end of the project audits (limit one page).
10. Two references to other international NGOs whom your firm has served and provide a brief description as to the kinds of services rendered. 
11. Audited accounts for the last 3 years

Special Considerations: 

Submitted bids/ proposals will be used to identify audit services firms for all Corus entities including IMA World Health and LWR.

Application procedure

Complete applications should be submitted with attachments to the email:

[email protected]

The subject line should read: Statutory Audit. 

Deadline for the submission of bids is on Tuesday, 25th February 2025 by 5pm Tanzania time

Applicants who do not follow application instructions will be rejected. ONLY short-listed candidates will be contacted for interview.