CALL OF PROPOSAL FOR: INSTITUTIONAL AUDIT

INTRODUCTION

Humanitarian Action for Modern Development Initiative (HAMDI) is seeking a professional accounting or CPA firm to provide annual external auditing services for the financial years ending December 31, 2023, and December 31, 2024.

2.0 ORGANIZATIONAL BACKGROUND

HAMDI is a non-governmental, non-political, and non-profit organization dedicated to addressing the urgent humanitarian and developmental needs of marginalized and non-minority communities in the south-central regions of Somalia. Through participatory approaches and culturally relevant programs, we strive to enhance community well-being and promote social cohesion. In partnership with national and international donors, HAMDI will implement the following programs: Health and Nutrition, WASH, Food Security, Education, Protection, provision of durable solutions for internally displaced persons (IDPs), economic empowerment, resilience building, community engagement and advocacy, youth development, and gender equality initiatives.

By leveraging the expertise of its founders and actively engaging with local communities, HAMDI aims to create sustainable solutions that empower individuals and foster resilience, ultimately contributing to a stable and prosperous society for all while promoting social justice and equity.

3.0 OBJECTIVE OF THE AUDIT

HAMDI requires an annual audit of its accounts for the financial years from January 1 to December 31, 2023, and January 1 to December 31, 2024. The audit aims to review the organization’s financial records to provide an opinion on their accuracy and fairness in reflecting the organization's operations. This audit will encompass all financial transactions for the designated fiscal years. The external auditor is expected to offer insights into the effectiveness of financial procedures, the accounting system, internal controls, and overall organizational management.

4.0 SCOPE OF THE AUDIT

The auditor is expected to:

1. Conduct the audit in accordance with International Standards of Auditing.
2. Perform procedures to gather evidence regarding the amounts and disclosures in the financial statements, based on professional judgment and risk assessment.
3. Assess the appropriateness of accounting policies and the reasonableness of estimates.
4. Evaluate the overall presentation of the financial statements.

5.0 DURATION OF THE AUDIT

HAMDI intends to rotate its auditors every two years. The selected auditor will audit the financial statements for the years ended December 31, 2023 and December 31, 2024.

6.0 REPORTING/KEY DELIVERABLES

Key deliverables from the auditor will include:

a) An independent auditor's report as part of the financial statements.
b) A management letter providing comments and observations on the accounting records, procedures, systems, and controls examined, highlighting specific deficiencies and weaknesses, along with recommendations for improvement. The letter should also address other relevant matters deemed important by the auditor.

AUDITOR’S EXPERIENCE AND QUALIFICATIONS

The auditor should assign qualified personnel with the necessary professional credentials and relevant experience in International Financial Reporting Standards, particularly in auditing entities operating in Somalia. Additionally, the audit team should have:

• Relevant experience in auditing donor-funded operations, with at least one senior team member having such experience.
• Comprehensive knowledge of applicable laws and regulations in Somalia, including taxation, social security, labor regulations, and accounting/reporting standards.
• Fluency in English is must and proficiency of Somali will be an added value.

8.0 SUBMISSION OF PROPOSALS

Interested firms must meet the following criteria to submit an Expression of Interest:

• Registered with the Institute of Certified Public Accounting in Somalia or neighboring countries, with partners holding current practicing certificates.
• Proven experience in auditing donor-funded projects.
• At least one partner must be in good standing with ICPAK and a full-time practitioner.
• A strong understanding of International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA) and their application in financial reporting and auditing.
• A minimum of five years of operational experience.
• Familiarity with the humanitarian NGO sector, particularly with Somali NGOs and projects funded by organizations such as SHF, FCDO, ECHO, the World Bank, the EU and non-traditional donors.
• Capacity to provide efficient external audit services within agreed timelines.
• Ability to offer recommendations for enhancing existing and emerging management controls and governance processes.
• Willingness to travel to the field level offices, which shall be arranged and be guided.

9.0 TECHNICAL CAPACITY

All applicants must include the following in their audit proposal:

• Confirmation of understanding the standard terms of reference for a statutory audit and the capacity to fulfill the outlined tasks.
• Firm structure, including staffing numbers, positions, responsibilities, and functions.
• CVs of key personnel proposed for the project (including partners, managers, and supervisors, with practicing certificates where applicable).
• A list of at least three past and current clients with references familiar with the firm's work on donor-funded project audits.
• Evidence of compliance with relevant statutory and professional regulations (including a valid tax compliance certificate and business permit).
• Indicative audit fees based on the scope of work.
• Quality assurance by SICPA (Somali Institute of Certified Public Accountants) or Institute of Certified Public Accountants of Kenya (ICPAK). To be registered in both will be considered an advantage.

Firms that meet these criteria should submit their proposals to [email protected], copping to [email protected] with the subject line: "HAMDI Financial Audit 2023 and 2024 on or before COB Thursday 20th March 2025.

For inquiries, please email to [email protected]. Late submissions will not be considered.