Proposal for Terms of Reference Financial Audit for the project:

Entity: Secours Islamique France (SIF)

Subject: Project Audit: “Strengthening livelihoods, resilience, and disaster preparedness of crisis-affected communities in Jubaland, Somalia.

Period to be audited: 01/09/2023 – 30/11/2024

Deadline for submission of tenders: 27th October 2024

Estimated Start Date: One framing meeting at the contract signing which will be held on the 11th November 2024 and thereafter at the end of the project planned which will be on the 1st March 2025 for the beginning of the audit

Places of audit: SIF Kenya Office -Rosami Court Muringa Road Kilimani Narobi Kenya”

1. Foreword

SIF is a an independent, non-profit, Non-Governmental Organization existing under the laws of France since 1991, for international emergency solidarity and development programs. SIF is committed to reducing poverty and vulnerability in France and worldwide, without proselytizing or discriminating, regardless of the age, gender, sexual orientation, gender identity, physical appearance, membership or non-membership of a specific ethnic group, nation or religion, language, health, family status including economic status, surname, customs, political opinions or union activities or any other situation of the people concerned. It takes acts wherever there are humanitarian and social needs that require emergency relief, development programs and advocacy campaigns.

SIF operates in Somalia since 2014 in the sectors of Education and Child Wellbeing, Food Security and Livelihood, Water and Sanitation and Shelter and non-food items. The main projects are implemented in the region of Jubaland State of Somalia.

1. Project Description

SIF, in partnership with Somali Lifeline Organisation (SOLO), has been implementing a one-year project on “Strengthening Livelihoods, Resilience and Disaster Preparedness of Crises-Affected Communities in Jubaland, Somalia” funded by the Crisis and Support Center (CDCS) of the French Ministry of Europe and Foreign Affairs.

The project, implemented in Kismayo District of Jubaland state in Somalia, aimed to contribute to drought recovery, well-being, food security and nutrition outcomes, and cohesion of crises-affected communities in Jubaland, Somalia. The project targeted the most vulnerable host community households, internally displaced persons (IDPs), and returnee groups with animal health, fishing, agriculture, nutrition, water & sanitation, and disaster management interventions, while mainstreaming conflict sensitivity, protection and Do No Harm principles.

Duration – 15 Months (01/09/2023 – 30/11/2024)

Total contractuel budget – 750,000 € (CDCS Share 100%)

Project implémentation Location – Jubaland, Somalia

Objectives of the action

Overall objective: contribute to drought recovery, well-being, food security, and cohesion of crisis-affected communities through multi-sectoral and environmentally sustainable interventions in Jubaland, Somalia.

Specific Objectives:

OS1: strengthen the resilience of the drought-affected communities to the impacts of natural disasters and other shocks by improving their food security and promoting sustainable livelihoods in Kismayo

OS2: Promote peacebuilding and Disaster Risk Reduction by strengthening community initiatives that improve social cohesion, disaster preparedness, and response capacities while promoting equitable access to resources.

Expected results

R1. Access to sustainable and diversified livelihoods for target households and improve and restore those livelihoods

R2. Empowerment of smallholder farmers and women in rural communities is enhanced by promoting knowledge sharing, providing necessary resources and improving their skills by following sustainable agricultural practices

R3. Availability of water and resources and its use are improved for agricultural purposes through the rehabilitation of canals in the target areas

R4. Reinforcing community initiatives with the aim of consolidating peace, social cohesion and Disaster Risk Reduction

R5. Improved disaster risk preparedness and response capabilities

III. Audit objective

The project implemented by Secours Islamique France, financed 100% by CDCS, must be subject to an external financial audit for the expenses incurred within the project. The work of the external auditor is the objective of the terms of reference presented here.

The selected auditor will be expected to express a professional and independent opinion on the financial report prepared by Secours Islamique France for the expenses implemented as part of the project.

• Ensure that the financial report complies with the template required by CDCS,
• Ensure the eligibility of expenses incurred during the project and reported in the financial report.
• Ensure the compliance with the procedures listed in the Financing Agreement with CDCS
• Certify the financial report submitted and validated by CDCS

IV. Organization of the audit;

IV1. Audit Methodology and Approach

The audit firm will propose a methodological note for the conduct of this audit. In particular, it will have to specify the sampling methodology to ensure the representativeness of the expenditure to be checked at global level and for each budget heading.

IV2. Place of Intervention

The required service of external audit will be rendered at SIF Kenya Office -Rosami Court Muringa Road Kilimani Narobi Kenya”

V1. framing meeting with the auditor

This meeting shall be executed within one month after the signing of the contract. The main objective of this meeting is a good understanding by the Secours Islamique France of the frame and control modalities of the audit and brief to auditor about project objectives, results and indicators.

V2. The realization and financial audit’s restitution

The main tasks of the review will include:

• Ensuring that all expenditure have been incurred in accordance with the provisions of the Financing Agreement and the methodological guide of CDCS, with particular attention to commitments relating to procurement.
• Check the eligibility criteria for expenditure reported in the financial report
• Check the resources allocated to the project and the correct allocation of expenses by donor.

The eligibility criteria for expenditure are mainly the following:

• The expenses were actually incurred during the period covered by the Financing Agreement
• The expenses incurred were foreseen in the budget and are classified in the right budget category.
• Expenses incurred and reported in the financial report was recorded and allocated to the project in the accounting system of Secours Islamique France or in that of its partners in accordance with the accounting standards applicable in the Kenya/Somalia of establishment of the latter and usual accounting practices

1. Reports to be provided

The financial audit described in Part V2 must be completed after the end of the project (30 November 2024). The audit report must be provided within two months of the end of the project. It must imperatively justify the verification of expenditure; provide comments on each of the controls, Competitive tendering procedures, recruitment etc.

A management letter containing the main conclusions of the expenditure verification report and making the main recommendations.

1. Reference documents

• Project financing agreement and amendments between Secours Islamique France and CDCS

• Agreements between Secours Islamique and SOLO (local partner)

• The narrative reports of the project.

• The financial report of the project as of 30th November 2024.

• The detailed budget of the project

• HR files (project staff files, recruitment and any other project related documents)

  SIF Financial, HR and logistic Manuals;

• No objection letters from CDCS (if any) and exchange of communications between CDCS and SIF regarding financial issues, compliance and approvals

• Original bill, vouchers, purchasing files and list of transactions reported to CDCS

• Supporting documents necessary for verifications

VIII. Technical and financial proposal

The audit firm invited to bid shall provide the following to Secours Islamique France Kenya/Somalia mission

A technical proposal which should indicate:

• The proposed methodology for conducting the audit
• The audit firm’s references and experiences (3 pages maximum);
• The CV of the senior team (s) and the distribution of responsibilities;
• The provisional timetable of intervention as well as an estimate of the workload in men/days;

A financial proposal, which should indicate:

• Total audit costs in KES or USD including VAT
• Payment terms (schedule)

The Firm’s profile:

• The partner signing the report must be a member of ICPAK.
• Associated staff/firm must have experience in audits of projects financed by French public donors.
• Be authorized by Institute of Certified Public Accountants of Kenya
• Proof of experience in performing audit services: list current and past clients where the bidder carried out external audit along with the name of the organization, contact person, designation, contact number, nature of the external audit service and length of the appointment for at least three (3) non-governmental organizations where you have rendered audits services in the last three (3) years

IX. Application Process

IX.1 Application Evaluation

The audit agency will be chosen by the selection method based on quality and cost:

• Technical offer: Firms brief introduction, methodology, experiences of the auditor (s)
• Financial offer: rates, number of days offered, other costs, global offer corresponding to the available budget

The technical evaluation will follow the following evaluation tab.

Criteria

TECHNICAL OFFER – 60%

Understanding the Presentation of the methodology used – 10% –

References and experiences of the auditor – 20%

Audit experiences of NGO structures – 10%

Audit experience of international projects – 5%

Experience in public funding audit – 5%

CV of team (s)/shared responsibility – 5%

Provisional intervention schedule/estimate of loads in day/month – 5%

FINANCIAL OFFER – 40%

TOTAL – 100%

Once the proposals have been received and analyzed, the applicants reserve the right to negotiate the proposals with the pre-selected firm.

How to apply

All qualified and interested consultant/firms should submit should their proposals in English on an enclosed in plain sealed envelopes or email, marked with the Subject name Project Audit: “Strengthening livelihoods, resilience, and disaster preparedness of crisis-affected communities in Jubaland, Somalia”

and can be deposited in the tender box provided at,

SIF Kenya Office – 3rd floor suite 6,

Rosami Court along Muringa Road Kilimani Narobi Kenya addressed to: The Logistics Officer

OR send through email to log.off.so@secours-islamique.org