NDI requests a proposal for external financial audit services / Послуги зовнішнього аудиту

National Democratic Institute

Request for Proposal (RFP)

Auditing Services

RFP Release Date: 29 March 2024

BACKGROUND

The National Democratic Institute for International Affairs (NDI) requests a proposal for external financial audit services for the portion of the Swedish International Development Cooperation Agency (Sida) funded project “Ukraine: Promoting Inclusion and Combating Discrimination” implemented by NDI’s subrecipients, as listed in Annex A.

The audits shall be carried out in accordance with international audit standards issued by IAASB. The audit shall be carried out by an external, independent, and qualified auditor (independent to both NDI and the subrecipients listed in Annex A). 

1. OBJECTIVES and SCOPE OF WORK

The objective is to audit the financial reports of the subrecipients listed in Annex A for the periods specified in Annex A, as submitted to NDI, and to express an audit opinion according to ISA  800/805 on whether the financial reports are in accordance with the subrecipients’ accounting records and agreement terms as stipulated in the agreement between each subrecipient and NDI.

1. ADDITIONAL ASSIGNMENT ACCORDING TO AGREED-UPON PROCEDURES (AUP)

The following procedures must be conducted in accordance with ISRS 4400 for each subrecipient in Annex A.

Choose a sample of three individuals for three different months and:

1. Inquire and inspect whether there is supporting documentation for debited salary costs, such as employment contracts.
2. Inquire and inspect whether actual time worked is documented and verified by a manager.
3. Inquire and inspect within which frequency reconciliations between debited time and actual worked time is performed.
4. Conclude whether the subrecipients complied with applicable tax legislation regarding personal income taxes and social security fees.

III. Reporting

The reporting from the auditor shall include an independent auditor’s report for each subrecipient in accordance with the format in standard ISA 800/805, and the auditor’s opinion shall be clearly stated. The scope of the audits shall be stated in the reports, and the methodology used shall be presented. The financial report that has been the subject of the audit shall be attached to the respective audit report.

The reporting shall also include a Management letter for each subrecipient that discloses all audit findings, as well as weaknesses identified during the audit process. The auditor shall make recommendations to address the identified findings and weaknesses. The recommendations shall be presented in priority order and with a risk classification.

If the auditor assesses that no findings or weaknesses have been identified during the audit that would result in a Management Letter, an explanation of this assessment must be disclosed in the audit reporting.

The reporting shall be signed by the responsible auditor.

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TIMELINE 

Submissions are due by April 19, 2024. Earlier submissions are encouraged. NDI plans to select an audit firm by May 17, 2024.

The audit fieldwork is requested to occur in July or August 2024. First results of the audits and AUPs should be shared with NDI within 30 days from the start of fieldwork, and final reports are due 10 days after NDI’s approval.

NDI reserves the right to contact bidders to seek additional information and clarifications based on the submission of proposals following the submission deadline. 

REQUIRED QUALIFICATIONS AND PROPOSAL REQUIREMENTS

Potential vendors should submit a written proposal to NDI by the aforementioned deadline for full consideration. Proposals should indicate the bidder’s qualifications to provide the services outlined in their proposal.

At a minimum, the proposal should include:

• Letter of interest with the name of the company, address, contact details and point-of contact for the submission. 
• Evidence of national registration, and certification that your firm:
  • Is registered for declaration and payment of value added tax or a similar sales tax in accordance with national legislation;
  • Has declared preliminary taxes for staff and employee contributions; and
  • Is free from debts regarding taxes and social security contributions.
• A technical proposal.  The technical proposal should include:
  • A description of your firm’s qualifications and how your firm will approach the requested services, including audit planning and audit methodology.
  • CVs of proposed audit team members. 
  • Confirmation of your firm’s independence with respect to NDI and the subrecipients in accordance with International Auditing Standards.
  • Proposed timing of the field work (within the parameters described above), availability of the draft audit report, and delivery of the signed audit report.
  • Companies are encouraged, but not required, to submit any documents that demonstrate their commitment to promoting inclusivity, diversity and sustainability through internal policies and practices. 
• A list of previous projects with a similar scope, highlighting any past experience auditing Sida-funded projects.
• Contact information for at least 3 references of not-for-profit clients that can attest to past performance on projects of similar scope. The references must include email addresses and phone numbers.
• Detailed financial proposal for all costs associated with the services for this audit. The cost presentation must be in USD, inclusive of hours and rates by level of staff.

NDI will evaluate bids based on the vendor’s experience meeting the description of services required, cost and value-for-money, and reputation. 

The bid should be valid for 90 days from the due date of this RFP.

SUBMISSION PROCESS AND DISCLOSURES

Please submit proposals in English via email to [email protected] by April 19, 2024. Please also copy Anton Dubinskyi at [email protected] and Hannah Maycock at [email protected].

NDI reserves the right to reject any and all bids. NDI reserves the right to consider bids for modification at any time before a contract is awarded. NDI should not be liable for any costs associated with the preparation, transmittal, or presentation materials submitted in response to the RFP. NDI makes no certification as to the accuracy of any item and is not responsible or liable for any reliance on or use of the information or for any claims asserted therefrom. 

Bidders must provide disclosure of any known past, present or future relationships with any parties associated with NDI and/or the subrecipients. For example, bidders should disclose if a member of their Board is also a member of NDI’s Board currently or in the past, or if they are affiliated (such as a board member, current/past employee or family member, volunteer, etc.) with any subrecipient listed in Annex A. The bidder also certifies that the prices offered were arrived at independently and without the purpose of restricting competition with other offerors, including but not limited to subsidiaries and that prices have not been and will not be knowingly disclosed to any other offeror unless required by law. Failure to comply with these requirements may result in NDI having to re-evaluate the selection of a potential bid.

INFORMATION ABOUT NDI

NDI is a non-profit, non-partisan, non-governmental organization that works in partnership around the world to strengthen and safeguard democratic institutions, processes, norms and values to secure a better quality of life for all. NDI envisions a world where democracy and freedom prevail, with dignity for all.

For more information about NDI, please visit: www.ndi.org.

Annex A

List of Subrecipients Requiring Audit Services