Request for Proposal - Financial Audit

Description

REQUEST FOR PROPOSAL

RFP Release Date:

March 14th 2024

Question/ Inquiry Submission Deadline:

March 29th 2024

Proposal Submission Deadline:

April 2nd 2024

Performance Period:

April 26th – May 20th 2024

Electronic submission to the attention of:

[email protected]

Contact information for inquiries about this RFP:

[email protected]

Terms of Reference

I. General Information

This document is being issued to solicit applications from either an individual consultant or a consulting firm with key technical staff who have substantial experience in the implementation of youth development programs. More specifically, the consultant or lead consultant should have a proven track record in the implementation of innovative youth-focused tech programs. The bidder is free to seek any clarification on the expected deliverables prior to the preparation and submission of the proposal. While Heifer understands that completing this assignment will require the experience of an individual or a single firm with all the requisite expertise, the successful candidate can sub-contract components of the assignment to appropriate qualified firms. However, Heifer Nigeria should be duly informed of the plan from the onset, and this should be clearly stated in the bid as appropriate. It should also be noted that Heifer will make payments to each of the contractors based on submission and Heifer’s approval of deliverables. The award agreement will include a payment schedule with specific deliverables; all payments require 15 business days for processing after approval of deliverables.

II. Background

About Heifer International

Heifer International is a global non-profit organization on a mission to end hunger and poverty in a sustainable way. Since 1944, Heifer International through its work in 21 countries (in Africa, Asia, and the Americas) has supported more than 39 million people around the world to end hunger and poverty in a sustainable way, and millions more now on a pathway to living incomes. Working with rural communities across Africa for 48 years, Heifer International supports farmers and local food producers to strengthen local economies and build secure livelihoods that provide a living income. Heifer’s foundation was built on the belief that ending hunger begins with giving people the means to feed themselves, generate income and achieve sustainable livelihoods for their households. Heifer’s global vision for 2020 - 2030 is to close the living income gap for an additional 10 million families. This vision is a focused approach for the African continent to support at least 6 million smallholder farmers in Africa to reach sustainable living income. As a part of this commitment, Heifer has expanded its presence in Africa to include Nigeria, with a goal of supporting at least two million households to achieve sustainable living income, through (a) strategic private and public sector partnerships, (b) unlocking demand and market opportunities, (c) investing in priority value chains, and (d) leveraging innovation and emerging agricultural technologies to reach transformational scale. More information about Heifer is available at: www.heifer.org

Heifer Nigeria Country Program

Heifer International established its Nigeria Country Program in 2021, and its Signature Program for Nigeria, named “Naija Unlock”, was designed and launched. Naija Unlock program aims to support the unlocking of the potential in Nigeria’s agricultural sector to achieve food self-sufficiency by working with smallholder farmers and local value chain actors to increase their productivity to meet local demand for food and raw materials while closing the living income gap for families in the rice, tomato, and poultry value chains, with plans to add cattle, and small ruminant value chains. Naija Unlock is an evidence-based Signature Program designed to close the living income gap of smallholder farmers at scale with permanence of impact. The goal is to assist more than one million households to achieve sustainable living income by 2025, and scale to two million households by 2030, through strategic private and public sector partnerships to (a) build the social capital of smallholder farmers, (b) unlock farmers’ access to innovative financing, (c) unlock demand and market opportunities, (d) increase farmers access to mechanization and emerging agricultural innovations, and (e) increase farmers knowledge and adoption of climate-smart agricultural practices. Naija Unlock program activities are being implemented currently in five (5) states in Nigeria (Ogun, Edo, Nasarawa, Benue, and Lagos States) with plans to scale to other states with the potential to make an impact at a transformational scale.

III. Description of Expected Professional Services

a. Purpose

Heifer Nigeria Ltd/Gte is currently seeking an audit firm to carry out a Financial Audit of the Kaptain Foods Recoverable Grant from October 1, 2021, to June 30, 2023.

1. Audit Objectives: The objective of the Audit is to ascertain the following:
   • Project funds are used for the intended purposes under the agreed work plan and budgets stipulated in the Letter of Agreement (LOA) between Heifer International and Kaptain Foods Ltd (The partner).
   • Ascertain funds withdrawn from Bank Account/expenditures which are not accounted for/eligible from project funds.
   • Conduct sample site visits and physical inspections of some activities.
   • Appropriate controls are in place to prevent or detect material misstatements, and other irregularities.
     1. Audit Scope: The audit should cover the following:
        • Review of the Internal Control Framework for the partner. This will include but not limited to assessing whether internal control procedures are sufficient to prevent financial irregularities and misappropriation are in place; approval procedures and delegation of financial authority exist; segregation of duties, and clarities on roles and responsibilities are defined; reconciliation procedures functions; procedures followed for verifying receipt and acknowledgement of goods and services with agreed quality and timeline.
        • Identify expenditures which have been made but are not eligible for funding from project funds.
        • Examine the advances from the project account.
        • Payee-by-payee analysis.
        • Review and analyze the potential red flags that may indicate inappropriate financial reporting schemes, misappropriation of assets, inappropriate use of project assets and expenditures and liabilities for an improper purpose. The auditor should apply appropriate techniques for detecting irregularities and deviations.
        • Examine payments related to tax and find out whether these were paid and deposited into the government treasury as per government prescribed rate and timeline and all documentary evidence is available.
          1. Audit Deliverables: The audit firm is expected to produce the following deliverables to Heifer for the partner organization:
             • Management Report detailing the eligible and non-eligible expenses and spelling out each audit finding, the risk it poses to the organization, the appropriate auditor’s recommendation and the management’s response. Each finding should be properly categorized as ‘High Risk’, Medium Risk’ or ‘Low Risk’.
             • Summary of observations of internal control deficiencies, including recommendations for improvement.
             • A statement of the generally accepted auditing standards applied in carrying out the engagement.
             • Disclosure of the generally accepted accounting principles agreed upon and applied in the preparation of the financial statements and project financial reporting.
             • Schedule of Heifer’s support, including beginning fund balance, support provided, fund balance expenditures, and ending fund balance, along with the auditor’s report as to whether such schedule is fairly stated and in compliance with underlying agreement(s).
             • A statement of reasonable assurance over the completeness and accuracy of the documents and records that support the financial statements of the project.
               1. Duration/Timeframe: The audit shall be conducted within 21 calendar days after the signing of the engagement letter