CONSULTANCY ON AUDIT OF RETURN AND REINTEGRATION PROGRAM OF SOMALI CITIZENS IN SOMALIA Consultancy

TERMS OF REFERENCE

AUDIT OF RETURN AND REINTEGRATION PROGRAM OF SOMALI CITIZENS IN SOMALIA

PROJECT CONTRACT NO: 21/04080

1. Background and context

The Danish Refugee Council (DRC) has been providing relief and development services in the Horn of Africa since 1997. The DRC Somalia Programme is the largest of the six country programmes in the Horn of Africa and Yemen region. DRC is among the INGOs with the largest presence in Somalia, with country-wide programmes implemented through six main sub offices in Somaliland and Puntland in the north and in Hiraan Region, Gedo Region, Bay Region and Banadir Region in South and Central Somalia. Because we are there, DRC is able to respond rapidly and flexibly to recurrent crises and the needs of Somalis who are affected by humanitarian crises. DRC supports refugees, migrants, internally displaced populations and other persons affected by crises in both urban and rural settings. DRC implements activities in Somalia in the following sectors: WASH, Shelter and Non-Food Items (NFIs); Protection; Food Security and Livelihoods (FSL).

Within its broad project portfolio, DRC is working to facilitate the attainment of solutions for protracted IDPs, returnees and host communities in Somalia. As part of this strategy and with Financial Assistance from the Norwegian Directorate of Immigration (UDI), DRC is implementing the Assisted Voluntary Return and Reintegration (AVRR) project in Somalia to promote and facilitate sustainable reintegration of voluntary returnees. Beneficiaries of the reintegration project receive a cash grant for immediate needs upon arrival, individual counselling sessions and a comprehensive livelihood package including business training skill and start-up grants based on individual reintegration plans. Constant monitoring of the reintegration process is carried out by local DRC staff.

1. Purpose

DRC wishes to engage the services of an audit firm for the purpose of auditing the project “Return and Reintegration of Somali Citizens in Somalia” (contract number 21/04080), as stipulated under Article II, clause 23 and Article VI, clause 43 of the framework agreement between Danish Refugee Council and UDI. The audit shall be carried out in accordance with international audit standards issued by IAASB[1]. The audit shall be carried out by an external, independent and qualified auditor.

1. OBJECTIVES AND SCOPE OF THE AUDIT

The objective is to audit the project financial report for the period April 1, 2021 to December 31, 2022 as submitted to UDI and to express an audit opinion according to ISA 800/805 on the project financial report of the Project Contract Number 21/04080. The audit report is for the sole use of Danish Refugee Council and UDI.

The project will be audited twice i.e. for the period 01 April 2021 to 31 December 2021 (Year 1) and 01 January 2022 to 31 December 2022 (Year 2). An audit report will be required for each audit.

The 2021 direct project expenditure is NOK 2,464,061 while the projected direct expenditure for 2022 component is NOK 4,200,000.

1. DURATION OF ASSIGNMENT

The 2021 audit (Year 1) will be expected to take place over a period of 14 days from 05 July, 2022. The proposed number of days includes submission of draft audit report.

1. CONDUCT VISIT TO DRC OFFICE

It will not be mandatory to visit DRC offices. The audit may be done remotely at the audit firm’s premises. The required documents and/or information will be shared with the auditor through an online platform as well as the conduct of entry and exit meetings.

1. REQUIREMENTS/EVALUATION CRITERIA

The evaluation process consists of three stages: 1) Administrative, 2) Technical and 3) Financial. Each stage requires information and documents mentioned in this TOR.

Administrative Evaluation

A bid shall pass the administrative evaluation stage before being considered for technical and financial evaluation. Bids that are deemed administratively non-compliant may be rejected. Documents listed below shall be submitted with your bid.

Document Instructions

A detailed firm’s profile

The firm should be approved by ICPAK/ACCA & the partners should be in good standing with ICPAK/ACCA

The firm must have a physical address and valid business permit

The firm must have at least three INGOs and/or Humanitarian Organizations referees who must be its clients

Partners and key staff curriculum vitae

Tax compliance certificate

Technical and financial proposal

Annex 1; General Conditions of Contract Sign and stamp and submit

Annex 2; DRC Supplier Code of Conduct Sign and stamp and submit

Supplier Profile & Registration Form Complete ALL sections in full of Supplier Profile & Registration form, sign, stamp and submit

Previous contracts for Similar Services

Reference document copy of previous contracts for Similar Services, within the last 3-5 years. Submit in the technical bid envelope (Mandatory) Photocopy

Note: DRC is a VAT Withholding agent appointed by KRA

If any information required during the administrative evaluation is not provided by the bidders, DRC may choose to request bidders to supply this information within 48 hours of the tender opening. Please note that this is only applicable for documentation that does not alter the details in the bid, such as price information.

Technical Evaluation

To be technically acceptable, the bid shall meet or exceed the stipulated requirements and specifications in the TOR. If a Bid does not technically comply with the TOR, it will be rejected.

Requirements

Technical proposal

1. Should indicate the audit approach, methodology and work-plan for this assignment.
2. The firm must also demonstrate sufficient quality control measures.

Year of Experience

1. The firm should have been in practice for a period of not less than 5 years
2. The firm must have five years’ experience in audit of International Non-Governmental Organizations (INGOs) and/or Humanitarian Organizations
3. List of various donor-funded projects that the audit firm has audited.

Key personnel that will work on this assignment. This should include;

1. The firm must have at least two partners who are full time practitioners
2. Appropriate mix of the audit team and the level of involvement each has in conducting this assignment (partner, team leader, manager, audit senior, audit assistant, or special expertise, if necessary).
3. Audit and accounting qualifications and level of experience (minimum of 3 years’ experience) of the key proposed personnel in relation to audit of donor-funded projects.

Note: If awarded, staff proposed by the firm on the proposal will be the ones to carry out the assignment. Any replacement of the proposed staff during assignment execution will need validation of their qualification and experience by DRC.

References

i) At least three references who must be clients whom the firm previously provided donor-funded project audit services (listed above).

Note: Proposals failing to meet the minimum requirements stated above will not be considered further.

Financial Evaluation

All bids that pass the Technical Evaluation will proceed to the Financial Evaluation. Bids that are deemed technically non-compliant will not be financially evaluated.

Requirements

1. Financial proposal – should be itemized to show audit fees, taxes and any disbursements. Also note that the total cost of financial offer will be indicated in the DRC Request for Quotation Form and the fees should be quoted in USD.

Note: Please separate proposed audit fees for each audit i.e. 2021 (Year 1: April 2021 – December 2021) and 2022 (Year 2: January 2022 – December 2022)

1. TERMS & CONDITIONS

The auditor must be completely impartial and independent from all aspects of the management or financial interests in Danish Refugee Council.

DRC will evaluate proposals and award the assignment based on technical and financial feasibility in line with DRC Procurement guidelines. DRC reserves the right to accept or reject any proposal received without disclosing reasons to applicants and is not bound to accept the lowest bidder.

Tagged as: Danish Refugee Council, Somalia