Terms for Reference (ToR)
Financial Audit
Issued by JHPIEGO

INTRODUCTION

JHPIEGO, an affiliate of Johns Hopkins University, founded in 1973 at Baltimore, Maryland, USA with the mission to create and deliver transformative health care solutions that save lives. In partnership with national governments, health experts and local communities, Jhpiego builds health providers’ skills and develops systems that save lives now and guarantee healthier futures for women and their families. Since inception, Jhpiego worked to save lives and improve health has reached people in more than 150 countries worldwide. Currently, it runs active programs in more than 35 countries across the globe.

In Bangladesh, there is a small portfolio of different donor funded projects, where a group of dedicated and committed staff are working. Jhpiego Bangladesh management wish to hire a retainer legal counsellor for legal advice as and when needed.
 
BACKGROUND

The JHPIEGO wishes to engage a Bangladeshi audit firm for a period not to exceed 30 calendar days to verify payments and expenses including vouchers, fund transfer and verification of monthly/quarterly Budget vs. Expense reports which is submitted to JHPIEGO.  Auditor is to audit the financial statements to express opinions on the fair presentation of the basic financial statements (which may include fund accountability statement, a statement of assets and budget vs. actual comparison statements etc. as applicable in accordance with generally accepted auditing standards, donor requirements and prepared in conformity with the previously described budgetary-basis of accounting and presentation).

ASSIGNMENT- I

This audit focused on FD-4 and meet the NGOAB requirements for the following projects:

• Administrative Cost Of JHPIEGO” Project value BDT- 65,347,902
• Accelerating Access to Postpartum Family Planning in Bangladesh- Project value BDT- 50,537,105
• Achieving Universal Access to SRHR to the Host Communities of Cox’s Bazar and UNFPA Supported Districts in Bangladesh-Project value BDT- 49,500,000 

PERIOD TO BE COVERED:

Administrative Cost of JHPIEGO- 1st July 2021 to 30th June 2022.
Accelerating Access to Postpartum Family Planning in Bangladesh- 1st January 2022 to December 2022 and 1st January 2023 to 31st January 2023
Achieving Universal Access to SRHR to the Host Communities of Cox’s Bazar and UNFPA Supported Districts in Bangladesh- 1st July 2022 to 31st December 2022 

SCOPE OF WORK

The scope of audit to be undertaken should address the following:

• Project-based books of accounts
• Financial statements of JHPIEGO Projects in Bangladesh that give a fair view of the fund utilization for each month and for the project years.
• FD-4 reports for the project.
• Management reports based on auditor’s findings and related recommendations.
• Review financial records as per NGOAB ToR.
• Checking of the VAT and TAX deductions from contractor payments in compliance with the Bangladesh law
• Checking of all advance accounts and justification of the advances that are older than 3 (three) months
• Checking all liabilities accounts and liabilities reconciliations
• The audits should be carried out in accordance with International Standards of Auditing (ISA) auditing standards, International Financial Reporting Standards (IFRSs) and NGOAB rules.
• Check the accuracy and complements of all the financial transactions
• Check other documents as deemed relevant by the auditor
• Detect any sorts of irregularities in terms of cost, quality, and documentation related to this fund and provide necessary suggestion/ recommendation that may be required for strengthening over all internal control system.

DELIVERABLES AND PAYMENT SCHEDULE

• Audited financial statement for project years (project base and consolidated)
• Certified FD-4 as per NGOAB guideline for project
• NGOAB acceptance of Audits

TECHNICAL APPROVAL OF DELIVERABLES

• JHPIEGO Bangladesh Management Committee

The auditor shall submit one copy of the draft audit report to Jhpiego Bangladesh for review and discussion purpose. After discussion and acceptance of the draft audit report by JHPIEGO, the auditor shall submit six copies of the final audited accounts and management report to Management of Jhpiego Bangladesh office.

ASSIGNMENT- II
The audit focused on National Board of Revenue (NBR) Tax return.

PERIOD TO BE COVERED:
The Audit report will cover the period as below: The audit includes all transactions processed in JHPIEGO Bangladesh accounts during 1st July 2021 30th June 2022. 

SCOPE OF WORK

The scope of audit to be undertaken should address the following:

Audit of the books and statements prepared by JHPIEGO Bangladesh Country office for the year ended 30th June 2022 in accordance with JHPIEGO accounting policies including; Trial Balance, Income and Expenditure Statement, Balance Sheet, Project Balances Report, and the transactions that make up the amounts shown in these financial statements.
Review adequacy of internal control systems and supporting documentation.
Review fixed asset register based on the Inventory spreadsheet.

Audit to be performed in accordance with the International standards on auditing (ISA) issued by IFAC.

Issuance of an audit opinion in English on the financial statements (Income and Expenditure statement and Balance Sheet) for the year ended June 30 2022 (model of report as per ISA) to the attention of the Country Lead.

Issuance of a management letter in English on the findings of the audit and comments on the internal control system.

Discussion with JHPIEGO Management on any suggestion of the auditors, prior to finalizing the audit report

PRINCIPLES OF THE AUDIT:

The audit includes all transactions processed in JHPIEGO Bangladesh accounts during 1st July 2021 to 30th June 2022 with the following audit operations:

• Check the correctness and completeness of the financial transactions from its origin.
• Check whether the records, systems, documents and statements are maintained in accordance with the policies and procedures of JHPIEGO.
• Detect and report any irregularities in terms of costs, relevance, approvals and documentation.
• Any other material item which the Auditor feels necessary to report.

BASIC DOCUMENTS FOR COMPLIANCE:

The following documents are considered to be the basis for this audit:

• Finance manual of JHPIEGO Global
• Instructions and guidelines sent by JHPIEGO-HQ
• Fiscal year approved Work plan & budget
• Relevant donor agreements
• Other (prevailing) policies and procedures of JHPIEGO.

DURATION & REPORTING OF AUDIT:

The Auditor shall submit a draft audit report to JHPIEGO for review. After discussion and acceptance of the draft audit report by JHPIEGO, the Auditor shall submit five (6) copies of the final signed audit report to JHPIEGO by agreed timelines. The auditor will attach the following statements with the audit report.

• Statement of income & expenditure
• Statement of balance sheet
• Statement of Office Inventory
• Notes to the accounts and necessary disclosure.
• List of projects with receipts, payments and balances as of June 30, 2022
• Management report

BIDDING PROPOSALS
A bidding proposal should include:

• Capability Statement – not to exceed three pages, indicating size of the agency, staff, Information about the bidder and their relevant experience in conducting audits for donor funded projects; past experience as CA/Audit firm in Bangladesh.
• CV of key staff, Client list
• References – names, company or organization, contact information – of three recent (within the past 2 years) companies that you have provided your services.
• Technical and Financial proposal, including proposed schedule;

QUALIFICATION CRITERIA 

• Audit firm must be enlisted under NGOAB
• Licensed auditor for providing required services
• Experience related to the assignment
• At least 5 years of working experience with INGO’s including USAID funded project audit
• The auditor should be able to review accounts and documents in Bangla and English and submit the audit report in English.

WITHDRAWAL OF PROPOSALS

• Proposals may be withdrawn by written notice, email or facsimile received at any time before award.

EVALUATION CRITERIA 

JHPIEGO anticipates issuing a fixed-price purchase order to the offeror(s) whose proposal is most advantageous, cost and other factors considered. A fixed price contract calls for one firm price, not subject to any adjustment based on the contractor’s cost experience in performance of the contract. This fixed-price is established at the outset, when the contract is negotiated and signed. Proposals will first be evaluated from a technical standpoint. Those proposals that are considered to be technically acceptable shall then be evaluated in terms of cost. Following criteria will follow for evaluation: 

• Specific experience to conduct audit in International NGO as audit Firm   - 20 points
• Adequacy of the proposed work plan and methodology in responding to the Terms of Reference.  – 15 points
• Qualifications, competence and number of the key staff for assignment (general qualifications, adequacy for the project, and experience with international organizations) – 25 points
• Financial strength of the proposal – 40 points

If the organization has lower indirect rates, the lower rates should be used. Please include VAT in the cost proposal as JHPIEGO is not VAT exempt.

TERMINATION OF CONTRACT

JHPIEGO has the right to terminate the contract at any time during the contract period with 15 days’ notice period.

FALSE STATEMENTS IN OFFER

Offer must provide full, accurate and complete information as required by this solicitation and its attachments. Proposals become the property of JHPIEGO.

AWARD AND NOTIFICATION OF SELECTED PROPOSALS

JHPIEGO will not compensate offerors for preparation of their response to this RFP. Issuing this RFP is not a guarantee that JHPIEGO will award a contract. JHPIEGO reserves the right to issue a contract based on the initial evaluation of offers without discussion. JHPIEGO also reserves the right to waive any deviations by offer from the requirements of this solicitation that in JHPIEGO’s opinion are considered not to be material defects requiring rejection or disqualification; or where such a waiver will promote increased competition and if such action is considered to be in the best interest of JHPIEGO’s client organization.

Please do not include examples of your work although you may include a website(s) for us to review that reflects your work. If JHPIEGO requires additional materials, we will request those materials during the review process. if JHPIEGO choose to make an award, all deliverables produced under said award shall be considered the property of JHPIEGO.

If JHPIEGO choose to make an award, assignment from award of contract will be subject you to normal tax liability in Bangladesh. Kindly contact the concerned tax authorities for further information in this regard if required.

PROPOSAL INSTRUCTIONS AND DEADLINE

Responses to this RFP should be submitted by email to the JHPIEGO Bangladesh office to the attention of E-mail ID: HTImam.Chowdhury@jhpiego.org ,
no later than February 15, 2023 at 5 p.m. (Dhaka time). Offers received after this date and time will not be accepted for consideration. Selection process will be done on rolling basis, early submission will get advantage in this regard. JHPIEGO will acknowledge receipt of your proposal by email. Proposals must be submitted in electronic format.

Any questions or requests for clarification need to be submitted in writing to the email addresses: Murshedul.hasan@jhpiego.org  by February 9, 2023.  at 5p.m. (Dhaka time). Answers will be shared with all firms. No telephone inquiries will be answered.