Terms of Reference for Hiring the auditing firm. 

1. Introduction OF THE ORGANIZATION

Rwanda ICT chamber is a nonprofit company limited by guarantee. At the ICT Chamber, we help our members to work with the right associations, companies, and individuals and ensure that they get the needed skills, opportunities, and tools to grow. 

The ICT Chamber now has a new associative composition that will make it more relevant for you to be fully part of the Chamber while offering more customized services to each category at different levels.

OUR VISION:  To make Rwanda the leading ICT- driven society.

OUR MISSION: To be the leader in influencing the transformation of the economy and culture through ICT.

WHAT WE DO AT ICT CHAMBER

• We represent the interests of ICT businesses.
• We dialogue with the government on matters related to the improvement of ICT business through the public- private dialogue platform.
• We promote and develop ICT business for domestic and export.
• We stimulate entrepreneurship and competitiveness.

Objective of the external audit of the Organization

• The objective of the external audit is to express a professional audit opinion in accordance with ISA 800 and/or ISA 805 on whether the financial statements of the Organization in all materials respects are in conformity with the applicable financial rules and regulations of the organization and Terms and conditions of the financing agreement(s).
• “The organization” books of accounts provide the basis for preparation of those financial statements and are established to reflect the financial transactions in respect of the “Organization” and that it maintains adequate internal controls and supporting documentation for the transactions. The auditing firm should also highlight if the financial statements comply with the organization’s procedures and policies.

What is to be audited?

Rwanda ICT chamber implements various donor funded projects. The purpose of this audit is to audit the entire portfolio of projects implemented by Rwanda ICT chamber plus unrestricted funds and issue one report containing the entire portfolio managed by Rwanda ICT chamber for the period from the year 2020 to 2022. and indicate whether the financial statements comply with the organization’s procedure manuals. 

Responsibility for preparation of financial statements

 The responsibility for the preparation of Financial Statement lies with the “Organization” and is also responsible for:

• The selection and application of accounting policies “The organization” will prepare the Financial Statements in accordance with applicable accounting Standards, and
• Implementing accounting, administrative, and financial procedures documented in manuals.

The auditors are responsible for the formulation of an opinion on the Financial Statements based on their audit conducted in accordance with ISAs (International Standards on Auditing) issued by the IFAC (International Federation of Accounts).

Scope of the audit.

The audit will be carried out in accordance with International Standards on Auditing (ISAs) and will include such tests and verification procedures as the auditors consider necessary under the circumstances. In conducting the audit, special attention should be paid to the following:

• Carry out tests of transactions as are necessary, in order to obtain an understanding of the accounting system, to assess its adequacy as a basis for the preparation of the financial Statements and to establish whether adequate records have been maintained as required by “the Organization” Financial Rules and Regulations, financial Manual and applicable rules of the donors.
• Conduct 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 “Organization” Financial Rules and Regulations, financial Manual, and the applicable rules of the concerned donors.
• Confirm that although responsibility for preventing irregularity and fraud remains with “the Organization” the audit has been planned so as to have a reasonable expectation of detecting material misstatements in the financial Statements.
• Confirm that funds have been used in accordance with the Agreement(s), with due attention to economy and efficiency, and that they have only been used for the purposes for which they were intended for and in accordance with the conditions under which the funding was provided. The External Auditors have therefore obtained an understanding of the terms and conditions governing the applicable grant agreement(s).
• Confirm that Goods and services financed have been procured in accordance with sound procurement procedures spelled out in the plan international policy.
• Confirm that all necessary supporting documents, records, and accounts have been kept in respect of all activities. Clear linkages should exist between the books of accounts and the financial statements presented.
• Confirm that the Financial Statements have been prepared in accordance with acceptable accounting practice and give a true and fair view of the financial position of the project for the reporting period; and

The above-defined scope does not in any way restrict the audit procedures or the techniques that the auditor may wish to use in forming an opinion on the Financial Statements being audited.

In accordance with International Standards on Auditing, the auditors shall pay attention to the following:

• Fraud and Corruption: In accordance with ISA 240 (The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements) 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.
• Laws and Regulations: In preparing the audit approach and in executing the audit procedures, the auditors shall evaluate ‘The Organization’s” compliance with the provisions of laws and regulations that might significantly impact the financial Statements as required by ISA 250: (Considerations of Laws and Regulations in an Audit of Financial Statements)
• Governance: Communicate with “The Organization’s” management responsible for Governance regarding significant audit issues related to governance in accordance with ISA 260: (Communication with those charged with Governance); and
• Risks: With a view to reducing audit risks to a relatively low level, the auditors will apply appropriate audit procedures and handle anomalies/risks identified during their evaluation. This is in accordance with ISA 330 (The Auditor’s Responses to assessed Risks). 

Contents of Reporting

The auditor is expected to present two types of reports: An opinion on the Financial Statements prepared by “the Organization” and a Management Letter reporting factual findings and areas of improvement. The reports are to be written in English, in two copies and digitally, to “The organization” no later than 28th June 2023. Submission of draft reports to “the organization” for review is due by 04th July 2023.

• The financial statements should be elaborate enough to identify the unrestricted funds and individual project funds. These can be informed of explanatory notes or otherwise.
• The opinion on the Financial Statements be in the latest format prescribed by ISAs.
• Management letters shall contain a description of findings and make recommendations to address any weaknesses identified. In addition, it should include reactions/comments “Management Response” from “the Organization” on any weaknesses noted by the auditors.

Auditor’s qualification and experience

The audit will be carried out by an external, independent, and qualified auditor (Certified Public Accountant/Authorized Public Accountant).

The auditor must be completely impartial and independent from all aspects of management or financial interest of the organization. The auditor shall not, during the period covered by the audit nor during the undertaking of the audit, be employed by, serve as advisers or mentors for, or have any financial or business relationship with the organization. The auditors should disclose any relationship that might compromise their independence.

The auditor shall be registered and have a license with the Institute of Certified Public Accountants of Rwanda and must demonstrate that s/he employs adequate staff with appropriate professional qualifications with international standards, in particular, International Standards on Auditing (ISA) and with suitable experience in accounting and auditing the accounts of entities comparable in size and complexity to the entity being audited.

In addition, the audit team as whole will have:

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• Appropriate experience with audits of not-for-profit organizations and/or NGOs, development projects financed by the donor the team proposed should have such experience, and
• Demonstrate sufficient knowledge of relevant laws, regulations and rules in the country concerned. This includes but it is not limited to taxation, social security and labor regulations, accounting, and reporting; and
• Fluency in English. The key audit team will comprise, at least:
• An audit manager with at least 5 years ‘experience in auditing and with a sound knowledge of donor-financed projects. In addition, s/he should be a member of a recognized accountancy professional body.
• An assistant auditor with adequate experience and professional qualifications.

Curriculum Vitae (CVs) must be provided to the client by the partner of the firm of auditors who shall be responsible for signing the opinion, together with the CVs of managers, supervisors and key personnel proposed as part of the audit team. The CVs shall include details of audits carried out by the concerned staff, including ongoing assignments indicating capability and capacity to undertake the audit.

Qualification of the Firm and the Assigned Personnel

SECTION 1: INSTRUCTIONS TO PROSPECTIVE BIDDERS

Preparation of Proposals: You are requested to submit separate technical and financial proposals. You are advised to read the Request for Proposal carefully. An electronic copy (in PDF) of the Request for Proposals shall be considered the original version.

Technical Proposals: Technical proposals should contain the following documents and information:

• A brief description of the firm’s organization and an outline of recent experience on assignments of a similar nature. For each assignment the outline should indicate among others, the profiles of the staff proposed duration of the assignment, the contract amount, and the firm’s involvement.
• Background and experience in financial auditing.
• Description of the methodology and work plan for performing the assignment.
• Knowledge of the operation of Entrepreneurship Support Organization | ESOs and non-profit organizations.
• CVs of key staff.
• The consultant’s comments or suggestions on the TORs and appreciation of the assignment – the objectives, tasks, and deliverables.

Financial Proposals: Financial proposals should contain the following documents and information:

A copy of the breakdown of Lump Sum Price form in this Part for each currency of your proposal, showing all costs for the assignment, broken down into professional fees, and reimbursable costs. The costs associated with the assignment shall be in RWF for all bidding firms.

Validity of Proposals: Proposals must remain valid for 15 calendar days from proposal submission date. 

Submission of Proposals: The technical and financial proposals should be submitted in one email, both clearly marked with the Firm’s name, ICT Chamber, and either “Technical Proposal” or “Financial Proposal” as appropriate.

Proposals (both technical and financial) must be submitted electronically to: procurement@ict.rw with a clear subject line: “Consultancy to Conduct Financial Audit” and submitted by Thursday 19th July 2022 at 5:00 pm Central African Time (CAT). Proposals must be submitted in PDF format and as attachments to the email, any proposal submitted as a link or after the specified deadline won’t be considered.

 Language of the tender and mode of communication

The communication medium shall be in writing. The bid, as well as all correspondence and documents relating to the bid exchanged by the Bidder and the ICT Chamber, shall be written in English.

Amendment to the tender document

At any time prior to the deadline for submission of bids, the ICT Chamber may amend the tender document by issuing an addendum. Any addendum issued shall be part of the tender document and shall be communicated in writing through email from the ICT Chamber, and it will be published on the platform where the original tender document will be posted.

To give prospective Bidders reasonable time in which to take an addendum into account in preparing their bids, the ICT Chamber may, at its discretion, extend the deadline for the submission of bids; in which case, all rights and obligations of the Chamber and Bidders previously subject to the deadline shall thereafter be subject to the deadline as extended. 

Late bids

The ICT Chamber shall not consider any bid that arrives after the deadline for submission of bids.  Any bid received by the ICT Chamber after the deadline for submission of bids shall be declared late, rejected, and returned unopened to the Bidder.

  SECTION 2: ELIGIBILITY CRITERIA

Eligibility Criteria: You are required to meet the following criteria to be eligible to participate in the procurement exercise:

• Have the legal capacity to enter into a contract.
• Not be insolvent, in receivership, bankrupt, or being wound up or subject to legal proceedings for any of these circumstances.
• Not have had your business activities suspended.
• Have fulfilled your obligations to pay taxes and social security contributions.
• Not to have a conflict of interest in relation to this procurement requirement.

We require you to submit copies of the following documents as evidence of eligibility attached to your bid.

• Certificate of Incorporation or Trading license /Certificate of Registration for companies.
• Evidence of statutory compliance such as a valid tax clearance certificate and social security contributions certificate.
• Signed copy of code of ethical conduct in business for bidders.

 NOTE: Failure to submit the above-required documents will lead to disqualification from Technical and Financial evaluation 

Financial Criteria:

Pricing information should not appear in any other section of the proposal other than the financial proposal. Financial scores shall be determined by awarding a maximum of 30 points to the lowest priced proposal that has passed the minimal technical score and giving all other proposals a score that is proportionate to this.

Total scores: Total scores shall be determined using a weighting of 70% for technical proposals and a weighting of 30% for financial proposals.

Best Evaluated Bid: The best-evaluated bid shall be the firm with the highest combined score and shall be recommended for the award of the contract.

Right to Reject: the ICT Chamber reserves the right to accept or reject any proposal or to cancel the procurement process and reject all proposals at any time prior to contract signature and issue by the Chamber, without incurring any liability to Consultants.

The ICT Chamber reserves the right, at its sole discretion, to reject all proposals received and seek fresh proposals, to negotiate further with one or more of the bidders, to defer the award of a contract, or cancel the competition and make no contract award, if appropriate.