INKUNGA FINANCE Plc

BP 35 KIBUYE

TEL: 55114922; Mob: 07 88 389 968

E-mail: info@inkungafinance.com  

Web site: www.inkungafinance.com                                                           

TERMS OF REFERENCE FOR HEAD OF INTERNAL AUDIT

Background 

INKUNGA Finance Plc is a Deposit-Taking Microfinance Institution licensed by the National Bank of Rwanda (BNR) since 2009 and registered as legal entity by Rwanda Development Board (RDB) on code # 101533016. It is working in 7 districts of western Province, North-western zone of Rwanda and in City of Kigali with Headquarters in Karongi District, Rubenera Sector, Kibirizi Cell. We serve more than 30 thousand clients in financing farmers, agri-cooperatives, individual start-up businesses and SMEs. In addition, other financial services are offered (savings, digital transfers, digital loans, payment services).

Our mission is: The mission of INKUNGA FINANCE PLC is to promote quality financial services to small and medium-sized entrepreneurs in order to contribute to the improvement of their socio-economic conditions while remaining a sustainable and self-sufficient institution.

1. The objective of the internal audit is to express a professional assessment and provide independent recommendations on the Institution's financial management and managerial and operational duties, on compliance with and respect of laws/ internal rules in force and risk mitigation measures taken.
2. Auditing Standards

The Audit should be carried out in accordance with International Standards of Auditing (ISA) in all material respects and regulations by Rwandan authorities (like BNR, RDB). It should include such tests and auditing procedures as the auditor considers necessary under circumstances.

3. Internal audit functions should include but not limited to: 

The Internal Audit Function’s services will focus on five general areas of INKUNGA FINANCE Plc operations:

• Effectiveness of operations and controls: Activities are performed adequately to produce the desired or intended results, and controls to mitigate risk are adequate and operating and performing as intended.
• Efficiency of operations: Activities are performed economically and frugally with minimum wasted
• Safeguarding of resources and information: Prevention of loss of assets or resources,
  whether through theft, waste, natural disasters or inefficiency, and protection of confidential information.
• Reliability of reporting and data:  Internally generated data and reports provide Board and management with accurate and complete information appropriate for its intended purpose.  Such reports support management’s decision making and monitoring of the entity’s activities and performance.
• Compliance with applicable policies, procedures, laws, and regulations: Activities are
  conducted in accordance with relevant policies, procedures, laws and regulations. 

The Internal Audit Function will conduct financial audits and operational audits.

• Financial audits include financial statement and related audits. Their purpose is to determine:

• Whether the financial statements present fairly the financial position, results of
  operations, and cash flows or changes in financial position in accordance with
  International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB); and
• Whether the entity has complied with laws and regulations for those transactions and events that may have a material effect on the financial statements.
• Whether financial reports and related items, such as elements, accounts, or funds are fairly presented;
• Whether financial information is presented in accordance with established or stated
  criteria; and
• Whether financial and other information is in compliance with the institution’s overall vision, mission and objectives and the policies and orientations set from time to time by the Board of Directors
• Whether specific financial compliance requirements have been adhered to 

• Operational audits encompass the examination and evaluation of the adequacy and
  effectiveness of the system of internal control and the quality of performance in carrying out assigned Operational audits include:

Review of the reliability and integrity of operating information and the means used to
identify, measure, classify, and report such information;

• Review of compliance with policies, plans, procedures, standards, laws, and
  regulations;
• Review of the means of safeguarding and accounting for assets;
• Appraisal of the economical and efficient use of resources;
• Review of operations or programs to ascertain whether results are consistent with
  established vision, mission, objectives and policies of the institution; and
• Review of the adequacy of existing and proposed data processing systems. 

4. Specific Areas of Attention 

• Internal Controls Systems

The auditor conducts from time to time an in-depth and exhaustive review of the internal control systems to have sufficient knowledge of the procedures underpinning the systems, as contained in the various procedures manuals. In the process of reviewing the internal control system, the Auditor needs also to examine areas like:  Governance, Asset management, procurement of goods and services, etc. 

• Institutional Financial Statements

The Institutional Financial Statements include;

1. A statement of financial position (Balance Sheet)
2. Income statement/ Profit and Loss account
3. Cash flow statements
4. Statement of Changes in Equity and near equity instruments if any. 

5. Expected output/Audit Report

The Audit is expected to present main three types of reports: Quarterly report, annual report and report on the pending recommendation and advise.

The auditor reports directly to the Board of Directors although he is functionally working under the CEO/MD.

6. Qualifications and experience 

• Education

1. At least bachelor's degree in Accounting, Finance, Business management or relevant fields.
2. Must have CPA/ACCA or any other equivalent professional certificate. 

• Experience

1. At least 3 years of experience as an Auditor or 5 years of experience as accountant in a reputable institution;
2. Being experienced in International Standards of Auditing (ISA) and/or International Financial Reporting Standards (IFRS)
3. Being Rwandan by nationality;
4. Proven sound character, integrity and good performance in his historical background.

7. Remuneration

The salary of Head of Internal audit shall be attractive depending on the experience and qualification other benefits: As per the Internal rules and regulations.

8. Age Limit:

The candidate for the post of Head Internal Audit should not be more than 45 years at the time of submission of the application/Proposal/recommendation.

9. Terms of Appointment

The appointment shall be an open-end contract under the evaluation or appraisal of the Board of Directors through the Managing Director.

10. Method of Application and notification

Interested and qualified candidates should submit Job application and all requirements including CV via e-mail: recruitment@inkungafinance.com (You will get a reply to confirm the reception of your application)

• The deadline for submitting applications is March 18, 2024 at 17h30 local time. 

Only shortlisted candidates who fulfil the requirements will pass through oral interview. 

Done at Karongi on 13^th March 2024 

MUHAWENIMANA Abed Cherif

Managing Director