Notices

Call for Expression of Interest for Project Annual Financial Audit

  • Written by  Ni Sisi!

I. Introduction

Inuka (Rise up) is an initiative established in 2009 to address the crisis Kenya faces in light of the effects of the violence that followed the 2007 general election (PEV) as well as the social, demographic, environmental and governance transitions currently underway in the country. The initiative was established as Inuka Kenya Trust in 2009 and later changed status as a company limited by guarantee with no share capital, incorporated on 19 June 2012.

The heart of Inuka's work is the Ni Sisi! Social movement ("Ni Sisi), a membership based, grassroots movement undertaking to unite Kenyans to forge a collective identity to drive transformation in leadership and improve maisha (employment, security, health, education, clean water ) for all Kenyans. Ni Sisi's activities are divided between a Nationwide campaign that promotes the core values of Heshima (respect and dignity for all), Diversity (equality and ethnic inclusiveness) and Ni Sisi (It is us!-self-belief) and direct mobilization and organizing of community based Ni Sisi! Chapters.

Its activities are focused on the following key pillars;

  • Transformational social and civic engagement - This encompasses taking charge of the public space currently dominated by the political class and transforming it into lasting change created by and for Kenyans.
  • Creation of a collective identity, through shared experiences, hardships, and diversity (ethnicity) as the glue that binds, build a critical mass of likeminded people/groups working towards a better Kenya.
  • Leadership Development through access to information, freedom of expression and taking initiative for the socio-economic welfare.
  • Improved Livelihoods to achieve socio-economic growth and equality of opportunity for all Kenyans especially among the youth.

II. The scope of work and purpose of the audit of financial project report.

The audit concerns the financial audit and report for the Haki Madini project for the period January 2020 to December 2020. The purpose of the audit is to provide a report expressing an opinion in accordance with ISA 800/805 whether the financial project report has been prepared in accordance with the terms and conditions in the Agreement between the Inuka Kenya Ni Sisi Ltd and Diakonia, dated 20th April 2016.
The annual grant amount is Kes 1.5M hence audit will be conducted alongside the institutional annual audit.

III. The Auditor’s reporting

Auditor’s report

The Auditor’s report shall clearly state that the audit has been conducted in accordance with International Standards on Auditing ISA 800/805.
The Auditor’s report shall express an opinion according to ISA 800/805 on whether the annual financial project report gives a true and fair view of the activities of the project and whether the implementation has complied with the rules and conditions governing the use of funds as expressed or referred to in the Agreement, that the financial reporting has been done as per agreement and that the funds are included in the Inuka Kenya Ni Sisi Ltd’s accounting.

The accounts audited shall be attached to the Auditor’s report.

Management letter

The Auditor’s reporting shall also include a management letter which reviews the
management and the internal control system of the project and compliance with the
Agreement based on the assessment of the risk and materiality done by the Auditor.
Diakonia consider that the following areas in the Agreement are of special importance:

  • A satisfactory system for financial management and internal control, assessing the effectiveness of policies and procedures in preventing or detecting fraud
  • Accounts in accordance with Accepted Accounting Standards in the country or with International Financial Reporting Standards (IFRS)
  • Salary costs
  • Supporting documentation related to incurred costs
  • Compliance with rules and regulations in regard to taxes and social security fees
  • Procurement
  • Signed agreements with contracting partners
  • If any sub granting is allowed signed agreements with partner organisations for which funds financing the project have been used verifying compliance with the conditions of the Agreement.

The management letter shall include a description of the different steps taken in the audit process.

The management letter will contain observations and weaknesses identified during the audit process. Both significant and other shortcomings should be included in the management letter.

The Auditor shall also make recommendations on how to address the identified weaknesses, presented in order of priority. If the Auditor does not have any observations to report this shall be disclosed in the Auditor’s report.
Where applicable, the Management Letter shall state which measures have been taken as a result of previous Audit Reports and Management Letters and whether measures taken have been adequate to deal with reported shortcomings.

The Auditor’s reporting shall be received by Inuka Kenya Ni Sisi Ltd on or before 28th February 2021. The Auditor’s reporting shall be signed by the responsible Auditor for the audit and include name and title.

The Organization shall present a Management Response to the auditor’s reported findings, including an action plan with clear deadlines.

TERMS OF REFERENCE FOR AGREED-UPON PROCEDURES ENGAGEMENT IN ACCORDANCE WITH INTERNTAIONAL STANDARDS ON RELATED SERVICES 4400 (ISRS 4400)

In addition to the annual audit of the financial project report in accordance with 800/805, the assignment also includes an Agreed-Upon Procedure Engagement in accordance with ISRS 4400. Whereas the ISA800/805 audit regards the financial statements of the project, the Agreed-Upon Procedures ISRS4400 concerns review of specific areas under the period of reporting and may concern both financial and non-financial information. The purpose is to review the Inuka Kenya Ni Sisi’s compliance with the Cooperation agreement for the project concerned signed between Inuka Kenya Ni Sisi Ltd and Diakonia. The size of the samples needed for the review below are based on the analysis of materiality and risk done by the auditor under the ISA 800/805 assignment.

Review the following areas in accordance with the below:

  1. Review, on sample basis, whether salary costs debited to the project/programme are recorded throughout the duration of the year in a systemized way and whether the salary costs can be verified by sufficient supporting documentation.
  2. Review whether the financial report includes a comparison, for every budget item, between the actual costs/expenditures of activities and the budgeted costs/expenditures as approved by the Diakonia for the period.
  3. Review if outgoing balance for the previous period is the same as incoming balance for the current period.
  4. Verify outgoing balance for the current period.
  5. Based on materiality and risk in the sample selected for the ISA 800/805 audit, review on sample basis, whether there is supporting documentation related to incurred costs.
  6. Review whether foreign exchange gains and losses are disclosed in accordance with what is stipulated in the agreement including appendixes. 
  7. Review, on sample basis, Inuka Kenya’s compliance with rules and regulations in regard to taxes and social security fees.
  8. Review, on sample basis, whether Inuka Kenya has adhered to the procurement guidelines annexed to the agreement.
  9. Verify outgoing balance to be repaid to Diakonia (only applicable the final year of the agreement).
  10. Regardless of materiality, quantify the amount of costs missing supporting documents.
  11. If Inuka Kenya has third party agreements, review whether there is an unbroken chain of audited financial reports according to the requirements as stipulated in the agreement between Inuka Kenya and Diakonia, for funds disbursed the previous year.

The review shall include whether Inuka Kenya makes documented assessments of the audited financial reports submitted to Inuka Kenya and whether these reports are followed-up by Inuka Kenya.

Additional areas to be examined by the auditor, e.g. following up on weaknesses identified in previous efficiency audits or reviews of internal management and control can be added.

Report on factual findings
The additional assignment on Agreed Upon Procedures Engagement ISRS 4400 in section III above shall be reported separately in a “Report of factual findings”.

Proposals:
The proposal should at least include the following information:

  1. Technical proposal showing relevant experience in audits of a similar nature.
  2. Proposed methodology derived from the firm’s understanding the objectives of the engagement and the type of report to be issued.
  3. Proposed human and other resources that the firm can rely on to carry out the engagement.
  4. Availability to conduct the audit during the proposed period.
  5. Proposed audit fees in Kenya Shillings.

Proposals should be sent in sealed envelopes clearly marked “Proposal for Provision of Project Audit Services -” to INUKA KENYA NI SISI! LTD, P.O Box 104269-00101 Nairobi, Attention: Procurement, delivered to our office at Kilimani, Wood Avenue, Off Wood Avenue Road, Opposite KREP Centre or through email on: This email address is being protected from spambots. You need JavaScript enabled to view it. by close of business 08 January, 2021.