PROVISION OF SERVICES FOR THE EXTERNAL AUDIT OF FINANCIAL STATEMENTS FOR HABITAT FOR HUMANITY ZAMBIA (HFHZ)

1.    Organization background

Habitat for Humanity has worked in Zambia since 1984, partnering with low-income families on affordable housing solutions in informal settlements. Our major sectors of programming include housing and slum upgrading; land tenure security; water, sanitation and hygiene, or WASH; financial literacy for housing; disaster response and preparedness; and housing microfinance. Housing is at the core of Habitat’s operations in Zambia, where we have worked with families to build more than 4,000 homes, but our programs fully integrate solutions related to areas such as land tenure security and WASH to promote sustainable and resilient communities in line with the national development plans and the U.N.’s Sustainable Development Goals.

2.    Audit Scope

Habitat for humanity Zambia (HfH Zambia) wishes to hire services of an external auditor for the audit of financial statements of HfH Zambia for the period 1 July 2023 to 30 June 2024, with a possible extension for the next Two (2) years. The audited financial statements must be prepared in accordance with International Accounting Standards and applicable laws and reporting framework in the Republic of Zambia. The audit must be conducted in accordance with applicable International Standards on Auditing. The Auditor is expected to meet the following reporting milestones:

–      Draft audited financial statements to be submitted within Eight (8) weeks from the date of commencement of the audit including the day for audit briefing.

–      The final and signed audited financial statements should be submitted within Fourteen (14) working days after approval of the draft audited financial statements.

–      The signed audited financial statements and management letter for the financial year ended should be made available not later than 31 October 2024.

–      Sufficient audit evidence should be gathered to substantiate in all material respects the accuracy of financial statements.

–      The audit report of the auditors should state whether the financial statements of HfH Zambia were or were not in conformity with any of the above standards including the policies of HfH Zambia and Habitat for Humanity International (HfHI). The final audited financial statements must be reflective of the following:

i. Statement of financial position

ii. Statement of income and expenditure

iii. Statement of cash flows

iv. Statement of changes in accumulated funds, and

v. Comprehensive notes disclosures

3.    Audit reporting

The audited financial statements must be submitted with an auditor’s opinion and shall contain the methodology applied and the scope of the audit.

• The report shall also contain an assurance that the audit was performed in accordance with international standards and by a qualified auditor.
• The reporting shall contain the audit approach which will describe the audit procedures employed.
• The reporting shall contain the responsible auditor’s signature and title.
• The auditor shall submit an audit management letter, which shall contain the findings made during the audit process. It shall state the recommendations implemented from the previous audits and whether measures taken have been adequate to deal with reported shortcomings.
• The auditor shall make recommendations to address any weaknesses identified. The recommendations should be presented in priority.
• The auditor shall report by stating whether the audited financial statements are true and fair in all material respects.
• Report on the degree of compliance with each of the financial principles in the grants agreements and give comments, if any, on internal and external matters affecting such compliance.
• Communicate matters that have come to their attention during the audit that might have a significant impact on the implementation and sustainability of existing projects.
• The audit exercise shall be performed in a period of Eight (8) weeks and the auditor will be given 2 more weeks to compile and submit the report.

4.    Management Letter

The Auditors should submit a letter to management at the completion of the audit. The issues to be covered in the letter should include:

i. The assessment of the efficiency of the administration, management, and internal control systems of HfH Zambia.

ii. A description of any specific internal control weaknesses noted in the financial management of HfH Zambia. Recommendations to resolve/eliminate the internal control weaknesses noted should be included.

iii. Management comments/responses to audit findings and recommendations.

5.    Auditor Independence and Qualifications

To perform the audit of Habitat for Humanity Zambia, the following requirements must be met:

• The Auditors must be impartial and independent from all aspects of management or financial interests in the entity being audited. The Auditors should not, during the period covered by the audit nor during the undertaking of the audit, be employed by, serve as Director for, or have any financial or close business relationships with any senior member in the management of HfH Zambia
• The Auditors should disclose any relationship that might possibly compromise their independence.
• The Auditors should be experienced in applying auditing standards; The Audit Firm must deploy adequate staff with appropriate professional qualifications and suitable experience in auditing the accounts of Non-Governmental Organisations.
• The audit firm should be registered and have a valid license from the Zambia Institute of Chartered Accountants and other regulatory bodies (PACRA, ZRA etc.)
• The key audit team will comprise of, at least: An audit manager with at least 10 years’ experience in auditing and with sound knowledge of donor-financed projects.

6.    Access to Facilities and Documents

Financial recordings are automated in Sun Systems accounting package, the supporting documents in the form of invoices, payment vouchers are processed electronically.

The Auditors will have full and complete access at any time to all records and documents (including books of accounts, Donor agreements, minutes of the Board meetings, bank records, invoices, contracts etc.) and all employees files of HfH Zambia.

Further, the Auditors will have a right of access to banks and depositories, consultants, contractors and other persons or firms engaged by HfH Zambia over the period under the audit review.

7.    Required

Interested and qualifying firms should submit financial and technical proposals showing a clearly defined approach to the assignment, the cost implication, and the proposed period of execution. All BIDs must be submitted manually and deposited at Habitat for Humanity Zambia Offices in Chudleigh. The submission should also include a USB Flush Drive containing soft copies of all documents submitted no later than Friday, 12 January 2024, at 16:00Hrs clearly marked “AUDIT TENDER”, and addressed to the Chairperson, Procurement Committee.

Eligible bidders must submit the following documents together in their bids along those mentioned in clause (5) above; –

• A company profile with details of physical address and contact details
• A Tax Registration Certificate – with TPIN
• Valid Tax Clearance Certificate
• List of the proposed Audit team, their qualifications and experience

For any clarifications, please reach the organization on the following contact details; Phone: +260211251087, Mobile: +260961877251, email: Procurement@habitatzam.org.zm