OXFAM NOVIB Country office- Pakistan House No. 27, Main Services Road (East) G-11/3, Islamabad- 44000 Invitations of Bids to Conduct Financial Stock Taking (FST) of Partner organization with Oxfam Novib Oxfam Novib (ON) is working in Pakistan since 1982. Currently it has a Country Office in Islamabad under an agreement/MoU signed with the Economic Affair Division (EAD), Government of Pakistan. ON intends to conduct the FST of a local partner through reputable audit firms, and purpose of which is External Funding. For this purpose Sealed Bids are invited from reputable Auditing firms to conduct FST as per below TORs. Terms of Reference for FST # Name of partner Location 1. WECAN Islamabad The abovementioned Local NGO will be called “COUNTERPART” hereafter Purpose – External Funding Objective The general objective of a Financial System Review is to provide a detailed understanding of the past and actual financial and organisational management structures and processes, including legal structure, decision making, assets, Procurements, HR and financial management. It should provide assurances of financial expenditure, understanding of the capacity of the counterpart to comply with back donor requirement/restrictions and the sustainability of the organisation. This in turn will enable Oxfam Novib and the counterpart to assess the counterparts relative strengths and weaknesses, role within an external funded programme and facilitate agreement on capacity building of the counterpart (should any capacity building be required).1. Scope The specific objective of this engagement is to assess the capacity of Counterpart in line with following parameters: a.) Organization: i. Determine the legal status of the organization (viz. Society, Trust, Company etc.); ii. Assess whether the activities of COUNTERPART are in line with its legislations, relevant statues and objectives iii. Gain an understanding of and assess adequacy of the management (senior staff) of the organization including their recruitment, performance evaluation, management style, leadership qualities, extent of dependence of specific individuals (second line), decision making structure and delegation of financial powers; iv. Gain an understanding of and assess the adequacy of the governing body including basis and periodicity of election, role, functioning, financial capacity and independence; v. Assess adequacy of Human Resource policies and procedures including recruitment procedures and compliance therewith; organisational wide pay structures; vi. Assess adequacy of the rules and regulations of the organization including authority levels, finance manual, fraud policies and procedures, procurement policy and procedures; vii. Assess integrity and ethical values as reflected in statements and standards of the organization; and viii. Assess adequacy of procedures in place to ensure that COUNTERPART is able to comply with the restrictions of various and potentially differing restricted grant agreements. ix. Assess the relationship between management and the board b.) Internal controls over financial accounting and recording: i. Assess competence and independence of the accounts department ii. Assess the role of the accounts department in budget preparation and financial decisions; iii. Assess adequacy, efficiency and effectiveness of internal controls over payments, expenditure, assets and inventory items; iv. Review reconciliation of subsidiary record and accounting records; v. Determine existence and effectiveness of an internal audit function (independence, reporting, follow-up; composition of audit team; frequency etc.); vi. Assess the adequacy of divisions of responsibility, including divisions between head office and branch/field offices (if applicable);vii. Assess adequacy of budgetary controls and procedures in place for periodic monitoring of progress of projects; and viii. Assess adequacy of controls over outstanding advances, receivables and outstanding obligations and payables. ix. Assess adequacy of financial software for the size and needs of the organisation, and the ability of the software to cope with future expansion in funding, and specifically restricted funding. x. Assess the use and approximate percentage of cash payments. xi. Assess the procedures and compliance with cash management and the procedures to safeguard cash. c.) Procurement i. Assess procurement procedures and compliance with procurement procedures for both goods and services. Particular focus on competitiveness, transparency and effectiveness (lowest price and best quality) of procurement activities to ensure purchases and services hiring meet the requirements of the organisation. ii. Assess the policy and procedures of procurement ( Goods and Services). iii. Assess the compliance of organizational policy and procedure in hiring of services (consultancies etc.) and purchase of goods. iv. Assess the adequacy of ToR of external consultants. Assess the deliverables are met and costs are reasonable. v. Assess procedures for permanent or preferred suppliers. d.) Financial Record Keeping - Substantive testing of transactions: Performing substantive tests on a sample of transactions, bills, vouchers, and payments, investments, procurement (goods and services) related to externally funded projects. You will report the level of accuracy in terms of: i. authorization; ii. recording expenses under appropriate account heads / budget head; iii. appropriate split between FC and non-FC funds; iv. availability of sufficient back-up documentation; and v. timeliness of payments to creditors as well as salaries to staff for the selected sample vi. Procurement processes compliance with internal procedures or back donor requirements (which ever is required under the funding contract), with a particular attention to procurement of services and subcontracting. e.) Assets and investments:i. Assess whether assets and investments are in the name of organization or individual persons; ii. Assess adequacy of decision making process and systems for acquisition, disposal and adequate use of assets as well as compliance with documented systems; iii. Report on the sources of accumulated funds or general funds and designation of these funds; and iv. Assess existence and completeness of a fixed assets register f.) Economy, efficiency and effectiveness of operations: i. Assess system for fund raising, selection and evaluation of projects; ii. Review whether cost-effectiveness awareness is embedded in organizational culture; and iii. Report on current financial sustainability and plans to meet recurring cost in future years to reduce dependence on grants/donations or on one or a few donors. g.) Compliance with Statutory Requirements: i. Review compliance with relevant statutory and governance regulations including Income Tax Ordinance 2001, and Foreign Exchange Regulations; ii. Assess the adequacy of statutory audit and role of auditors, their independence and periodicity of checking. This would include determining Who appoints the auditors and whether a Terms of Reference being used; To whom the auditors report and whether they provide a Management Letter; Transparency of the process of appointment of statutory auditor. iii. Assess whether separate books of account are maintained in such a way to segregate funds of different donors/sources; iv. Review if separate books of account for local and foreign funds are maintained (according to foreign currency regulations); v. Report on effectiveness of accounting method adopted by COUNTERPARTS, and whether expenditures are incurred and reported in line with financial agreements; and vi. Assess capacity of available financial accounting systems to present overall organizational financial plans and actual expenditures. 2. Output / DeliverablesA report according to the scope mentioned above, (discussed with partner organization). 3. Duration of Consultancy and Proposed Time-frame The consultancy is to be completed in maximum 15 working days time. 4. Profile of the An auditor who: Is an expert in such type of assignment as scope of FST reflects; Has a relevant work experience; The report is solely intended for Oxfam Novib and, without our explicit written approval, it is not allowed to place the report (or part thereof) at the disposal of any third party. 5. How to Apply: The audit firms are required to submit their technical and financial proposal (inclusive of out of pocket expenses), one copy each in sealed envelope according to the TORs, their organization profile, and cover letter on printed letterhead with signature of authorized person and organization seal indicating their interest in undertaking the assignment. Last Date for Receipt of proposals is COB July 25, 2014. Please clearly mention on envelop Bids for FST. The bid may be delivered by hand or sent by courier service to; The Coordinator (HR), OXFAM NOVIB Country office- Pakistan House No. 27, Main Services Road (East) G-11/3, Islamabad- 44000
Posted on: Fri, 18 Jul 2014 10:30:49 +0000
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