CALL FOR PROPOSALS COMMISSIONING OF AN INTERNAL AUDIT/INTERNAL CONTROL REVIEW OF NGOs in Uganda

GDN is inviting proposals from reputable audit firms having adequate experience in conducting internal audits/internal control reviews of non-governmental organizations (NGOs).

Applicants are required to indicate their experience and capacity to conduct reviews of this nature in Uganda.

Background:

The Japanese Award for Most Innovative Development Project is a competitive grant program under the umbrella of the Global Development Awards Competition, administered by GDN, funded under the Policy and Human Resources Development Fund (PHRD) trust fund managed by the World Bank, and generously supported by the Ministry of Finance, Government of Japan. The award program invites non-profit NGOs and CSOs to submit project proposals supporting (in particular) improved service delivery, and innovative approaches that may be scaled-up through a grant. The Award targets projects currently at the stage of implementation, and which have a high potential for impact targeting exceptionally marginalized and disadvantaged groups located in developing countries - per the World Bank’s recognition as low and middle income countries.

The two first prize winners compete for the JSDF award after a minimum of 12 months implementation of their MIDP grant for a much larger grant of up to US$ 200,000 within the framework of the World Bank-administered Japan Social Development Fund (JSDF).

The JSDF award focuses on piloting socially innovative development projects that have been identified as having the potential for development impact and replicability through the MIDP Award. The objective of JSDF Award is to support community-driven development and poverty reduction programs that serve to enhance productivity, increase access to social and community services and infrastructure, and improve the living conditions of poor and vulnerable groups in eligible countries.

Activities funded under the JSDF award should respond to the following funding criteria:

• • Pilot Alternative Innovative approaches targeting groups not reached by other programs.
  • Target and Respond to the Needy, providing direct benefits to the poor, vulnerable, and disadvantaged groups with rapid results for improved livelihood.
  • Support Community-Driven Development by Empowering the Poor at the local community level;
  • Reflect a Participatory Design and consultation process with the targeted beneficiaries who endorse the grant activities.
  • Utilize Participatory Monitoring and Evaluation to help beneficiaries address their vulnerability and to ensure ownership and sustainability.

GDN is currently in the process of collecting applications of the eligible NGOs in Uganda for a grant of up to USD 200,000 seeking to scale-up their projects.

Objective and scope of work

GDN is seeking to recruit an audit firm to conduct an internal control review of the selected NGOs in Uganda. The review will aim to determine whether the NGO has the capacity to effectively manage and implement the project activities, if awarded the $200,000 grant. This will be carried out through a thorough assessment of the NGO’s institutional, administrative and financial capacity.

The audit firm is expected to provide the following services:

1. Perform an internal control assessment and an assessment of statutory compliance in the following areas:
   1. Governance structure and oversight arrangements;
   2. Financial Management and accountability arrangements – planning, budgeting, accounting, internal controls, funds flow, financial reporting and auditing;
   3. Human Resources – roles and responsibilities of staff – fiduciary and others; and
   4. Procurement Management - conformity with international procurement standards oversight and monitoring arrangements.
   5. Compliance with the World Bank’s current Environment and Social Frameworks’ (ESF) and associated Environmental and Social Standards (ESSs).
2. Perform testing of control mechanisms which must include but not be limited to the following:
   1. Examine audit reports and annual reports of last three (03) years and highlight any concerns/qualifications that might have been raised by the auditor/consultants;
   2. Review the donor review reports, if any, produced in the last three (03) years and share the outcomes;
   3. Review the staff manual, accounts manual, and accounting software to ensure that the organization has required procedures in place;
   4. Examine that the relevant accounting staff are hired with adequate qualifications; including segregation of duties
   5. Examine whether the organization has complied with the generally accepted rules of accounting and bookkeeping and have made no defaults in meeting the statutory compliance;
   6. Examine whether accounts and records maintained by the organization for the implementation of the Projects are accurate and regular, the accounts and expenditure relating to the Projects’ activities are easily traceable, identifiable and verifiable; and the costs reported are reconcilable with the accounting system and records of the organization.
   7. Verify whether it is plausible that the expenditure for a selected item was necessary for the implementation of the Project activities and that it had to be incurred for the contracted activities in any of the ongoing projects, by examining the nature of the expenditure with supporting documents;
   8. To verify that the monetary value of a selected expenditure item agrees with underlying documents; and
   9. International procurement procedures are applied.

Note: The above test of controls is expected to be performed on sample basis as per the sampling methodology agreed ex-ante (in writing) with GDN. Please note that the period covered for the sample selection shall be the last six months (at least), except for audit reports, annual reports and, the donor reports (if any).

Reports/ Deliverables

The audit firm will provide GDN the following written report(s):

• Internal Audit/Internal Control Review Report

(Note: This report must include NGO’s management responses to the auditor’s findings and recommendations.)