SOS Children’s Villages Nigeria- Request For Proposal For Audit Firm

DEADLINE: 30TH NOVEMBER, 2024
SOS CHILDREN’S VILLAGES NIGERIA
REQUEST FOR PROPOSAL FOR AUDIT FIRM

SOS CHILDREN’S VILLAGES NIGERIA is seeking a certified audit firm to conduct external financial audits for the Economic, Mental Health and Social Development Interventions project for the period 01 September 2023 to 31 August 2026.

Interested Certified Public Accountant firms should submit a Technical and Financial Proposal in relation to the Terms Of References (ToRs) below and stated in the attached Cooperation Agreement to be signed between SOS Children’s Villages and the Chartered Accountant Firm.

The following information and documents shall be provided:
a. Background information on the audit firm: Details of firm’s experience in providing auditing services to companies in the not-for-profit sector, especially international organizations
b. Methodology to be used: Describe how your firm will approach the audit of the project, e.g. select expenditure items
c. Describe how and why your firm is different from other firms being considered, and why our selection of your firm as an independent auditor is the best decision we could make;
d. Firm’s registration details with relevant regulatory authorities
e. Accreditation by a recognized institution (e.g. chamber of commerce, auditors’ association or German embassy.
f. Provide at least 3 references from not-for-profit organizations for which your organization conducted audits in recent years and are still your clients;
g. Provide names and resumes of key personnel that will conduct the audit.
h. Include estimated time required on-site to complete the services.
i. Include fee proposal to complete the services outlined in this request.

TIMELINES LOCATION
The proposal should be transmitted by November 30, 2024, addressed to the below contact in one pdf document as follows: soscv.procurement@sos.nigeria.org.

The National Director SOS Children’s Villages Nigeria. Abuja, FCT, Nigeria.

Selection Criteria

• Quality of technical proposal
• Competitiveness of financial proposal
• Relevant experience
• Timeliness of Report

Project Background
SOS Children’s Villages Nigeria is a non-governmental, non-political and non-profit organization and an active member of the international umbrella organization of SOS Children’s Villages International, which is active in 136 countries and territories. Since the year 1973, SOS Children’s Villages Nigeria has been operational in the field of social protection of children and young people without parental care as well as families at risk. While SOS Children’s Villages Nigeria is responsible for the implementation of the projects and programmes, the German funding association SOS-Kinderdorfer welteit, Hermann-Gmeiner-Fonds e.V. supports SOS Children’s Villages Nigeria through monitoring, publicrelations and fundraising. Project cooperation and responsibilities are written down in internal agreements and signed by both parties as well as SOS Children’s Villages International.
The project Economic, Mental Health and Social Development Interventions project in Benin City, Edo State which is to be audited has been co-funded by SOS-Kinderdorfer weltweit, Hermann-Gmeiner-Fonds e.V. and the Federal Ministry of Economic Cooperation and Development (BMZ) Germany.

The project Economic, Mental Health and Social Development Interventions project in Benin City, Edo State which is to be audited has been co-funded by SOS-Kinderdorfer weltweit, Hermann-Gmeiner-Fonds e.V. and the Federal Ministry of Economic Cooperation and Development (BMZ) Germany.

The project aims at improving socio-economic conditions, mental health and well-being of people in vulnerable households in Oredo LGA, Edo State.

Mandate and Relevance
In accordance with the requirements of SOS-Kinderdorfer Weltweit, Hermann-Gmeiner-Fonds e.V. all the Federal Ministry of Economic Cooperation and Development (BMZ) Germany co-financed projects are obliged to undergo a complete project audit covering the whole project duration as well as annual or interim audits, as specified in the Project Proposal, to be conducted by an independent and recognized audit company. The audits of the accounts are essential for SOS Children’s Villages to prove to the donor that all the funds have been used for the intended purpose and according to the donor’s regulations.

Scope and Location of Auditing
The auditing shall be conducted at the location of the project, in particular at the place where the project bookkeeping is done. The auditor’s assignment includes the following tasks:

• To verify whether or not the entity has accounting and operating policies and procedures manuals and their conformity with the agreements and relevant national regulations.
• To verify whether the Project has special bank accounts: one in EUR, that may be used to receive funds from various donors and one in LCY, that is used especially and exclusively for the project.
• For all transferred installments, examine the accuracy and completeness of records (dates and amounts of exchange transactions, relevant fees, etc.) of the exchange transactions between EUR funds receive from HGFD and LCY.
• To examine whether any gain was generated from payments of HGFD and/or any third party, and if so, whether the interest thus gained was properly reflected in the accounting documents and used for the financing of project expenditure.
• To thoroughly examine the bookkeeping records and ensure their alignment with the voucher list
• On a sample basis, verify that the project transactions are supported with supporting documents required by partnership Agreement (e.g. invoice, receipt voucher, copy of cheque, copy of bank transfer). For all assets procured for project purposes with value above EUR 800 (excluding value-added tax) (or the respective amount in local currency, using the actual donor’s exchange rate), check whether the inventory and internal procedures for ensuring compliance with appropriation periods are in line with the procedures stipulated in the PA.
• To verify that Procurement of goods and services is made with conformity with Partnership Agreement conditions/SOS Children‘s Villages Nigeria procurement procedures. Thus, documenting the most economical and efficient use possible of funds made available for purchasing or construction/renovation purposes; if no quotation or tender were obtained, the auditor shall give an assessment in his/her written report.
• If immovable were purchased or buildings erected or renovated as part of the project, to examine evidence of ownership or of right of disposal, and to find out whether any encumbrances or obligations to third parties were created; also, to examine whether they are been used for project purpose for which they were destined as stipulated in the Project Proposal.
• To certify that any transfer of ownership for items financed out of the grant has been documented (Asset Transfer Agreement) and previously agreed upon with HGFD.
• To reconcile the project cash balance (considering all bank accounts used for the project) and obtain entity justification with regard to unspent amounts, if any.
• In the case of Revolving funds (e.g. Microcredit Schemes) to examine whether the same have been utilized in accordance with the terms laid down in the project proposal, especially referring to the loan purpose, the defined target groups and loan modalities.
• Provided that expenses are recorded when paid (cash-based method), verify that non-cash items including depreciation and imputed costs are NOT charged to the project.

Auditing of Annual Statements

• The auditor shall audit the accounts for periods [Interim Audit (01.09.2023 – 31.12.2024), Annual Audit (01.01.2025 – 31.12.2025) and Final Audit (01.09.2023 – 30.08.2026).

Auditing Procedure

• The auditing shall be conducted in accordance with the relevant national regulations as well as SOS-internal auditing as such, the auditor may provide professional advice in whatever financial management and bookkeeping matters

Auditors Report

• The auditor shall draw up his statement according to his specimen provided by HGFD
• SOS Children’s Villages Nigeria shall provide the auditor with all supporting documentation in originals (in exceptional cases , digital copies can accepted), preferably structured in conformity with the items of the financing plan and in chronological order.
• The Annual Audited Statement of Accounts should be accompanied by a condensed voucher list in chronological order, including all payment affected by SOS Children’s Villages Nigeria in original currency (expenditures paid by HGFD, e.g. for monitoring visits, shall be excluded). Digital copies should be sufficient for annual and interim audits. Hard copies signed and certified by the auditor only are required for the final audit.
• The audit report should contain a statement of cash receipt (including converted funds, if available) which is to be supported by documentation (bank statements, exchange receipts, etc.) as well as a fund accountability statement (“Financial statement template”)
• The final auditor’s certificate is to be worded as in “Format Audited Statement of Accounts”.
• Budget items that exceed the budget appropriations by more than =20% must be explained separately, if prior approval has not been obtained from HGFD.
• Any significant deviation between budgeted and actual receipts must be explained
• The audit report shall contain a description of the detailed task that has been entrusted and a detailed list of documents which have been made available for inspection.
• The audit report shall also include precise comments and recommendations on the accounting system/procedures in force. Each following audit report shall refer to such recommendations and verify whether the same have been implemented by the project holder.
• The copy of the official registration certificate is attached to the audit report.
• The yearly audit report shall be submitted to HGFD not later than 15/16 March every and the final audit covering the whole project duration not later than 3.5 months after the end of project.

Final Audit Package
The auditor shall submit the following documents, properly signed and stamped, on the completion of the audit process as Audit Packaged:

• Auditors’ report, according to the format provided in Annex 4.2: “Format Audited Statement of Accounts”
• Audited statement of accounts according to the format provided in Annex 4.3 “Financial Statement Template”
• List of key employees.

Financial Statements are signed by National Director of SOS Children’s Villages Nigeria and authorized person or as specified by the law of the country.

SOS Children’s Villages Nigeria reserves the right to accept or reject any application without providing reasons.