Afghanistan: Terms of Reference: Call for Expression of Interest/Proposal Financial and Operational Systems Review - Country Program, Afghanistan

Terms of Reference
Call for Expression of Interest/Proposal
Financial and Operational Systems Review – Country Program, Afghanistan

1. 
   

   The Organization:
   War Child Canada is a non-profit registered charitable organization since 1999. The organization’s mission is to work with war-affected communities to help children reclaim their childhood through access to education, opportunity and justice. War Child takes an active role in raising public awareness around the impact of war on communities and the shared responsibility to act. Currently the organization delivers programs in Afghanistan, the Democratic Republic of Congo, South Sudan, Sudan, and Uganda.

   
   


2. 
   

   Purpose of the assignment:
   The main purpose of this call for financial and operational systems review is to assess the design and operating effectiveness of the procedures and internal control frameworks covering finance, operations and HR. and to identify gaps in the system and to provide recommendations for improvement.

   
   


3. 
   

   Process and Deadlines:

   
   

3.1 Closing date and time:
Interested firms are asked to submit an electronic copy of their expression of interest/proposal by January 14, 2016 to the Country Director, War Child Canada-Afghanistan Office, at karim@warchild.ca

3.2 Enquires:
Enquiries regarding the expression of interest/proposal process or format of response may be directed to the Country Director, War Child Canada- Afghanistan Office at karim@warchild.ca

3.3 Review:
Expression of interest will be reviewed by the Country Director War Child Canada, Afghanistan in consultation with Director Finance, War Child Canada Head Office in Canada.

3.4 Decision:
The selection the successful firm is expected to be completed by approximately January 20, 2016. Successful firm is expected to start the assigned work from the beginning of February 2016

3.5 Key selection criteria:
Among other factors, War Child Canada expects to consider the following in its review of the expression of interest/proposals:
 experience of the firm in conducting organizational system review and audit of not-for-profit organizations;
 experience of the personnel assigned to the review/audit;
 detailed work plan
 Methodology of the review/audit including quality of the expression of interest;
 understanding of the overall work scope;
 references; and
 fees/remuneration .

1. 
   

   Proposals Not Binding:
   Nothing in this request for expression of interest/ proposals constitutes an offer of any kind whatsoever by War Child Canada to any candidate or firm. This request for expression of interest is not an offer to enter into contract but serves only as a step in our procurement process for the selection of review/auditing firm.

   
   


2. 
   

   Qualifications:
   Before preparing an expression of interest , candidates are advised that their firm will be expected to:
    have experience in providing similar review services to other non-profit organizations;
    have well-developed professional audit and review techniques and a sound system of control and review of work performed;
    have substantial resources and support services available; and
    have experienced, well-qualified staff who can work on the engagement within the time required

   
   


3. 
   

   Scope:
   The firm is expected to conduct the review using a combination of enquiry, analytical procedure and discussion with responsible finance, operations and senior program staff in order to obtain sufficient and appropriate evidence to support audit findings on which to base final conclusions and recommendations. The review engagement should be performed in accordance with generally accepted accounting standards and with the guidance of:

   
   

a) War Child Canada’s country office (Afghanistan and Head Office) financial, operational and HR policies and procedures
b) Current HR policies and procedures including recruitment, payroll administration and other HR policies
c) War Child Canada’s Head Office monthly reporting requirements
d) Afghanistan labor laws and policies from Ministry of Economy, Finance, and Social Affairs (MoLSAMD); that are applicable to INGOs in Afghanistan
e) Previous audit and review reports, findings and management response

1. Work Plan
   As part of the proposal firms are required to prepare and submit a detailed work plan with description and methodology consideration of the following:

i) Understanding of the context.
The Firm should obtain sufficient understanding of the country context; in which War Child Canada and its partners currently operate and the internal controls systems and procedures including country laws and donor contractual obligation that apply to its programs.

The firm should identify the internal control procedures which are relevant and appropriate to War Child Canada and its local partners given its size, budget, organizational structure and the requirements of Head Office.

ii) Current controls and compliance with respect to:
• Cash and bank management.
• Procurement
• Authorization and Approval levels and process
• Accounting and financial reporting (including underlying transaction processing systems and financial ledgers)
• Computerized information systems (IT)- Security, back-up and recovery
• Budgetary and expenditure control
• Grants management including sub-grants, managing partners, payment to partners etc.
• Budget monitoring; audit and verification procedures for partners expenses
• Human resources, payroll processes and time-sheet management

1. Deliverables:

8.1 Initial Management letter and report:
Following ten (10) days after the completion of the assignment the firm will be required to submit a management letter and full system review report that contains at minimum the following
• A general review of the system review and assessment performed including scope and limitations.
• A description of any specific internal control weaknesses noted in the review procedures followed to address or compensate for the weaknesses
• Review findings and questions to management (where applicable)
• Recommendations to address review findings
• Categorization of review findings (including definitions) by risk severity: High, Medium, or Low.
• Comments as to whether recommendations made in the management letter for the previous audit were implemented or, if not, the implementation status;

8.2 Final Report:
• Following the receipt of management’s response to the initial report the firm is required to provide the final report within one (1) week.

1. 
   

   Timeframe and Duration
   The firm will be required to complete the work over a period of approximately twenty seven (27) work days or less including submission of the initial report. A detailed itinerary will be developed upon selection of audit firm and be included as part of the signed contract .

   
   


2. 
   

   Data protection and Confidentiality:
   The firm will adhere to War Child Canada’s policy on protection of information. Under no circumstances, the auditing firm will share hard or soft copies of any report/s generated under this assignment with any other institution or entity or person. Verbal communication related to this assignment shall stay within War Child Canada and communicated only after its permission.