1 Terms of Reference
Federation of Disability organization in Malawi (FEDOMA) is an umbrella body of organizations of persons with disability in Malawi. Its headquarter is in Blantyre, and it fulfills its mandates predominantly through projects funded by different partners. For almost two decades FEDOMA has enjoyed Financial and Technical support from different donors. It is from this background that FEDOMA through its current donors, would want to conduct an institutional Audit for the Year ending 31st December 2022
- Objectives and Scope of the Audit
The objective of the audit is for the auditors to conduct audit reviews as follows:
- The auditors shall express an independent professional opinion as to whether the financial statements present fairly, in all material respects, the financial position of FEDOMA in accordance with Finance Manual
- The auditors in their duties shall comply with the duties imposed upon them by the Audit Profession Act and the Companies act of Malawi
- Management letter-The auditors shall submit a management letter after the completion of the audit in which auditors will:
- Identify specific deficiencies or areas of weakness in systems and controls, and make recommendations for their improvement;
- Examine on test basis the appropriateness of supporting documents, records and books of accounts relating to all project activities;
- Include management responses to audit findings and recommendations;
- Any matters that come to the auditor’s attention during the audit that might have a significant impact to the implementation of the program.
- Examine, assess and report on compliance with the terms and conditions of the agreement between funding partners and FEDOMA and applicable laws and regulations within accounting and taxes;
- Examination of the income and expenditure statement including budgeted amounts by category.
- Reconciliation of the revenue received less costs incurred to the accounts.
- Review of accounting records and ensuring that these have been carried out in accordance with Generally Accepted Accounting Practices.
- Determination that project income was used to further the project’s objectives.
- Review procurement procedures to ensure sound commercial practices were used.
- Evaluated the control environment, the adequacy of the accounting systems, and control procedures
- Any other area that may be deemed important
- The audit report shall:
- Contain details of the method and scope of audit and assurance that the audit was performed in accordance with International Standards of Auditing and by a qualified auditor.
- Signed by the auditor responsible stating the title.
- Written in English
- Issued in both soft and hard copy for circulation to Partners
- Required qualification of the consultant
- Professional accountant with minimum 7 years of post-qualification professional audit experience including demonstrated practical in audit and asset /inventory management. The auditor should be able to apply special skills in accounting, auditing finance, quantitative methods.
- He should be the one that is Certified by the Malawi Accountants Board.
The selection criteria will include the following:
- Eligibility – authorization by the State Board of Accountants to conduct audits.
- Experience of your firm in relation to the scope of audits for non-Profit organization.
- A list of similar non-profit organizations served by your firm.
- Your staff assignments and availability to complete the audit on a timely basis.
- Participation of senior audit personnel assigned to the engagement.
- Depth of Technical Resources (CV of the assigned team leader).
- Availability of staff to respond to questions within the scope of the engagement and services outside the scope of the audit.
- Team Composition
At least there should be an overall supervisor of a professional Accountant – 1 expert
The consultant will prepare:
(i) Draft Report,
(ii) Which upon review by the client and the partner will submit a Final Report.
- The Client shall arrange the following information/documents for the consultants
-Voucher and Supporting documents
-Bank Recon & Bank statements
-Any other documents that you might need.
- Consultancy Period
The final report will have to be submitted by the 10th April, 2023
- Terms of Payment
To be agreed with the client.
- Reporting Requirements
The consultant will be engaged by client. However, the consultant will work closely with both the client and the partner.
- SELECTION OF CONSULTANT
The firm will be selected in accordance with Quality- and Cost-based Selection procedures based on IPC requirements.
12 SUBMISSION OF PROPOSAL
The technical and financial proposals clearly marked “Proposal for Audit Services” must be delivered to the FEDOMA at the address indicated below by 4.00 p.m. local time on Friday 17th February, 2023.
The IPC Chairperson
FEDERATION OF DISABILITY ORGANISATIONS OF MALAWI [FEDOMA]
Along Masauko Chipembere Highway,Maselema
Po Box. 797.