DEADLINE: 25TH MAY, 2021
FEDERAL REPUBLIC OF NIGERIA
KANO STATE GOVERNMENT
AGENCE FRANCAISE DE DEVELOPPEMENT (AFD)
3RD NATIONAL URBAN WATER SECTOR REFORM PROJECT IN KANO STATE PROJECT EXTERNAL FINANCIAL AUDIT SERVICES
REQUEST FOR EXPRESSION OF INTEREST (RE-ADVERTISEMENT)
The Kano State Government has received financing from the Agence Française de Développement (“AFD”) to support the implementation of the 3rd National Urban Water Sector Reform Project in Kano State. The project will improve the water supply infrastructure, governance and operation and maintenance
capabilities of Kano State Water Board (KnSWB) to provide improved water supply service to the Greater Kano area. The project Implementing Agency, KnSWB, on behalf of the Kano State Government, intends to use part of
the funds thereof for payments for the following services under the project: Project External Financial Audit Services.
KnSWB now wishes to hire an experienced and qualified Audit Firm to provide External Financial Audit (EFA) Services. The objective of the EFA Services is to prepare annual project financial audits over the life of the project, for submission to the Kano State Government and AFD. The first Audit is planned for approximately September 2021, with subsequent annual Audits to the Project close-out in 2025, The EFA Contract will include Annual Audits with services including but not limited to:
1. Conduct the audit in accordance with the International Standards on Auditing (ISAS) and express an opinion as to reasonableness of the Project Financial Statements in all material respects, as well as indude tests and verification procedures as the auditor may deem necessary.
2. Review Project Financial Statements prepared by the Project Financial Management Unit (PFMU) and supporting accounting information such as bank records, Statements of Expenditure (SOE) and others, and express an opinion on the Project Financial Statement in accordance with International Standards
on Auditing (ISA).
3. Review and express an opinion on the Statement of Expenditure (SOE) to confirm that project funds were utilized for the purposes intended, with due attention to economy, efficiency and effectiveness.
4. Verify that project funds have been used in accordance with the terms and conditions of the AFD Credit Facility agreement, with due attention to economy, efficiency and effectiveness.
5. Verity that expenditure of project funds has been approved at the correct levels of delegated Authority, including obtaining necessary AFD ‘No Objection Letters’.
6. Verify that appropriate supporting documents, financial records and books of accounts relating to all project activities have been kept and that clear linkages exist between the books of accounts and the Project Financial Statements being audited.
7. Establish whether the Project Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) and International Public Sector Accounting Standards (IPSAS).
8. Undertake a comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions.
9. Include in the audit reports opinion on compliance with procedures designed to provide reasonable assurance of detecting misstatements due to errors or fraud that are material in the financial statements, as well as identify and comment on conditions that significantly indicate possible fraud and
control risks.
10. In addition to the Audit report, the External Auditor will be expected to prepare a Management Letter giving observations and comments, and providing recommendations for improvements in accounting records, systems controls and compliance with the FMS and financial covenants in the Credit Facility
Agreement.
11. The above services are to be provided on an annual basis for the life of the project, approximately starting September 2021 and ending 2025.
The External Financial Auditor will report to the State Government Project Steering Committee (PSC) and maintain independence, both in fact and in appearance, of the implementing entities being audited. The review of records
shall be done on site, while the reports can be generated off-site. The estimated project expenditure covers the life of the project for which audits shall be carried out is $75 million, comprising contracts for works, goods and services and internal operational costs.
The Audit firm must be an independent, qualified and reputable auditing firm and must have at least ten (10) years of relevant and diversified professional experience in auditing with a sizable portfolio including experience in
financial auditing of government agencies and international donor funded projects.
The firm will preferably have experience conducting financial audits for major internationally funded infrastructure development projects in Nigeria, preferably in the water supply or utility sectors. As well, the firm should be familiar with procurement guidelines of the major Development Finance Institutions (DFIs), preferable those of the AFD or World Bank, and with FIDIC Conditions of Contract.
The firm must have clear knowledge and understanding of International Standards of Auditing and should possess internationally accepted quality assurance procedures and certifications, for example ISO or equivalent.
The Firm must have a team of qualified audit experts with the skill set needed to successfully undertake the audit assignment. Staff assigned by the Audit Firm shall include professional audit personnel certified and licensed to provide external audit services by the appropriate accounting bodies such as the Institute of Chartered Accountants of Nigeria (ICAN), the Association of National Accountants of Nigeria (ANAN) or other internationally recognized accounting designation that provides certification to practice accounting and prepare audits in Nigeria.
These personnel need to have prior experience in financial audit of government agencies to international auditing standards (ISA) and on large internationally financed development projects.
The Audit assignment will be a lump-sum contract for all annual project audits over the life of the project, based on Quality and Cost Based (QCBS) selection in accordance with AFD Procurement Guidelines.
The rough estimate of Key Experts’ time-input is: 20 person-months
This figure for person-months is, however, indicative only and will be confirmed in the Request for Proposals.
Kano State Water Board hereby invites Applicants to express their interest in delivering the Services described above.
This Request for Expressions of Interest (REOI) isopen to: Audit Firms or Joint Venture of Audit Firms.
Eligibility criteria for AFD financed projects are specified in sub-clause 1.3 of the “Procurement Guidelines for AFD-Financed Contracts in Foreign Countries”, available online on AFD’s website: http://www.afd.fr.
The Applicants shall submit only one application, either in its own name or as a member of a Joint Venture (JV). If an Applicant (including any JV member) submits or participates in more than one application, those applications
shall be all rejected. However, the same Subconsultant may participate in several applications.
If the Applicant is a JV, the expression of interest shall include:
- a copy of the JV Agreement entered into by all members; or
- a letter of intent to execute a JV Agreement, signed by all members together with a copy of the Agreement proposal.
In the absence of this document, the other members will be considered as Subconsultants.
Experiences and qualifications of Subconsultants are not taken into account in the evaluation of the applications.
Interested Applicantsmust provide information evidencing that they are qualified and experienced to perform the Services. For that purpose, documented evidence of recent and similar services shall be submitted.
Determination of the similarity of the experiences will be based on:
- Value of auditing contracts:
- The nature of the Services: provision of similar Audits of Government Agencies on projects funded by international development agencies (AFD, World Bank, AFDB, etr.) with a cumulative value of approximately $US 5O Million.
- The location of the project: In similar geographical regions (Sub-Saharan Africa). If in Nigeria, specify the State, or if outside Nigeria specify the client’s country and language of communication.
The firm/joint venture shall present 10 maximum completed or ongoing relevant similar assignments performed during the last 10 years only. There shall be at least 3 assignments for which the value of the auditing services performed by the firm or a member of the JV, must be equivalent to at least USD $100,0D0. For each similar assignment presented, the consultant shall provide a letter from the Client with the name of the project, date(s) of Execution, name(s)of lead and associate firms or JV partners, contract amount and funding sources.
The Client will also take into account for the evaluation of the applications the following items:
- Skills, education and certifications of audit staff and in-house back-up;
- Local representatives/partners;
- Quality assurance procedures and certifications of the firm
The EOl recommended structure is the following:
- General introduction about the leading firm and its potential partners;
- Justification of the JV: complementary capacities and key technical fields of the JV;
- Registration and certification details of the firm or each member of the JV;
- Financial capacity of the firm to take-on projects of a similar magnitude;
- List of relevant experiences and brief description of similar projects/assignments addressing the requirements described above;
- The Eol must not exceed 100 pages for each Applicant (in character 10).
At this stage, CVs of experts do not need to be provided. In the final RFP to be shared with the shortlisted Applicants, it shall be noted that the involvement of national experts as Key Experts will be one of the criteria of
technical evaluation of proposals.
Due to the security risk in the areas where the Services are to be performed, the evaluation of Expressions of Interest will verify that the applications meet the following criteria:
- The Applicant has at least one experience providing services in an area with a similar security risk, for which it shall provide proof of implementation of security measures (invoice or contract with a security service provider, proof of security awareness training before departure on-site, etc.).
- The Applicant has set up internal security management procedures: it shall provide a description of its monitoring system and crisis management system.
- For services provided abroad, the Applicant has entered into an assistance and repatriation contract for its employees: It shall provide the certificate evidencing such contract.
- The Applicant shall describe its standard preparation process for departure on assignment in sensitive areas, and shall attach documents proving its implementation (service orders with related instructions, certificates of awareness-raising or training actions, etc.).
For a JV, Its leader and any member that has its registered office outside the Client’s country shall fulni each of the above criteria. An application that does not meet any of these requirements will be rejected. This requirement applies to both foreign and local firms.
Among the submitted applications, Kano State Water Board will shortist a maximum of six (6) Applicants, to whom the Request for Proposals to carry out the Services shall be sent. Kano State Government is not bound to
shortlist any applicant.
The Expressions of Interest must be submitted to the address below not later than 12 noon on or before Tuesday, 25th May, 2021. The submission must include a signed and unaltered “Statement of Integrity, Eligibility and Environmental and Social Responsibility” which can be found online on AFD’s website: https://www.afd.fr/en/responding-bid-invitation. The document is hereby attached.
Submissions shall include 5 hard copies (1 original and 4 copies) and an electronic copy on memory stick.
Submissions may also be submitted by email to: dederiiu@gmail.com with copy to knwaterboard@gmail.com
Submissions are to be sent to:
The Managing Director, Kano State Water Board.
Kano State Water Board,
No. 675, Kofar Nassarawa, Kano,
Engr. Abdul’azeez Umar Office Complex,
Attn: Engr. Ibrahim Usman Dederi, Project Coordinator, Project Implementation Unit.
Interested Applicants may obtain further information at the address below during office hours:
9:00am to 4:00pm, or by email at the indicated address below:
Kano State Water Board,
No. 675, Kofar Nassarawa, Kano,
Engr. Abdulazeez Umar Office Complex,
Telephone: 08036053316
E-mail: dederiliugmail.com; knwaterboard@gmail.com
