Request for Proposal (RFP) – Programme Financial Audit Services at Neem Foundation

Scope of Audit:
The scope of the audit includes the following:

• Allowability of Activities Performed: Determine on a test basis if costs reported were necessary and reasonable for the conduct of the activities performed in accordance with the operational budget.
• Allowability of Costs: Determine if Neem Foundation has complied in all material respects with the requirements of its own financial and administrative policies and procedures with respect to
• allowability of costs incurred and approved budget. Examine costs incurred for the duration of the project for reasonableness and the availability of appropriate documentation to evidence expenditures.
• Recordkeeping: Determine if NeemFoundation ismaintaining a separate bank account and complete accounting records that adequately document each transaction and that the records are maintained
• in an organized manner that ensures retention and allows for easy retrieval.
• Cost-share contributions: Determine if there is proper accounting of costs reported for purposes of cost share contribution.
• Status of Corrective Actions: Determine the status of corrective actions related to outstanding recommendations made in prior audits, if any.

2. Audit Process
a) Allowability of Activities Performed
Review costs on a test basis to verify that they are necessary and reasonable for the performance of the activities for which the cost relates.
b) Allowability of Costs Incurred

• Verify accounting system data for project duration.
• Testing shall include tests of transactions and such other auditing procedures necessary to provide the auditor sufficient evidence to support an opinion on compliance.
• Perform procedures to verify that costs comply with operational budget.
• Verify that costs are supported by appropriate, detailed supporting documentation for a selection of transactions.

3. Audit Process

• Hold exit meeting with Neem Foundation’s Management team
• Explain major issues and findings during the exit meeting
• Send a draft report for management comments
• Consider all comments on the draft report and incorporate the results into the final report.

Final report to include:

• Auditor’s report on internal controls related to Neem Foundation’s activities. Report shall describe the scope of the testing of internal controls and reportable conditions, including the identification of material weakness in Neem Foundation’s internal control.
• Auditor’s report on compliance with agreement terms and applicable laws and regulations. Material instances of non-compliance must be described in a separate section.
• A schedule of findings and questioned cost. Findings include but are not limited to reportable conditions in internal control, known fraud etc.
• Questioned cost (Cost that is questioned by the auditor because of an audit finding):

Which resulted from a violation or possible violation of policies
Where the cost, at the time of the audit are not supported by adequate documentation

• Where the cost incurred appear unreasonable and do not reflect the actions a prudent person would take in the circumstances
• A report on the auditor’s reviews of schedule of cost-sharing contributions
• Evidence of filling reports to the Federal Inland Revenue Services (FIRS) of WHT and other mandatory filings
• Audit findings shall be presented in sufficient detail for Neem Foundation to arrive at a management decision. The following shall be included:
• The criteria or specific requirement upon which the audit finding is based:
• Facts supporting the deficiency identified in the audit finding
• Identification of questioned costs and how they were computed
• Whether audit findings represent an isolated or systemic problem.
• Where appropriate, instances identified shall be examined and quantified in terms of Naira
• Recommendations to prevent future occurrences of the deficiencies (if any) identified in the audit finding.

4. Others:
Retention of working papers: Auditors shall retain working papers and reports for a minimum of three years after the date of issuance of the auditor s report.
Access to working papers: Audit working papers shall be made available upon request by Neem Foundation

See the full RFP on Google Drive Via https://drive.google.com/file/d/16Lev4LMihb5T7pYbCVG9Er78XsVGz46o/view?usp=sharing