Ref: EOI/10/ACF/2025
TERMS OF REFERENCE (TORs) FOR EXPRESSION OF INTEREST TO PROVIDE EXTERNAL AUDIT SERVICES.
BACKGROUND
Action Against Hunger-USA is part of the Action Against Hunger International network, which provides development and humanitarian response in over 50 countries worldwide in the sectors of nutrition, health, water/sanitation, food security & Livelihood and protection. Action Against Hunger-USA, an independent NGO, currently manages operations in 8 countries: Ethiopia, Somalia, South Sudan, Kenya, Zambia, Uganda, Zambia & Haiti. Action Against Hunger-USA has over $110 million in programs, and approximately 2500 staff based in the various country offices, headquarters in Washington DC and Operational Centre in Nairobi.
About the Action Against Hunger Country Program in Zambia
Action Against Hunger has been operational in Zambia since 2021 implementing both development and humanitarian programmes through a multi-sectoral strategy where Nutrition, Health, Food Security and Livelihoods, WASH and Protection, Gender and psychosocial support are integrated to have a meaningful impact on people’s resilience. Action Against Hunger is registered in Zambia under the Ministry of Ministry of Community Development and Social Services
OBJECTIVE OF THE AUDIT:
1. The objective of the audit of Action Against Hunger Zambia’s financial statements is to enable the auditors to express an independent professional opinion on the financial statements of Action Against Hunger Zambia which consists of; financial position, statement of comprehensive income, statement of changes in equity, statement of cash flows of Action Against Hunger Zambia and a summary of significant accounting policies and other explanatory notes for the period ended on that date whether as a whole they are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes an opinion.
2. The books of accounts of Action Against Hunger Zambia provide the basis for preparation of the Action Against Hunger Zambia’s Financial Statements. Proper books of accounts as required by law have been maintained by Action Against Hunger Zambia and also maintain adequate internal controls and supporting documentation for the transactions.
SCOPE OF THE AUDIT
1. The audit will be carried out in accordance with the International Auditing Standards and will include tests and verification procedures as the auditors deem necessary.
2. Verify all funds have been used in accordance with the established rules and regulations of Action Against Hunger Zambia and only for the purposes for which the funds were provided.
3. Goods, works and services financed have been procured in accordance with the Action Against Hunger Zambia established rules and procedures.
4. Appropriate supporting documents, records and books of accounts relating to all activities have been kept. Clear linkages should exist between the books of accounts and the financial statements presented.
5. The financial statements have been prepared by Action Against Hunger Zambia management in accordance with applicable accounting standards and give a true and fair view of the financial position, statement of comprehensive income, statement of changes in equity, statement of cash flows of Action Against Hunger Zambia and a summary of significant accounting policies and other explanatory notes for the period ended on that date.
6. Comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions.
7. Express an opinion as to reasonableness of the financial statements in all material respects.
8. Include in their reports opinion on compliance with procedures designed to provide reasonable assurance of detecting misstatements due to errors or fraud that are material in the financial statements.
9. Conduct entry and exit meeting with the Country Senior Management Team of Action Against Hunger Zambia, and Regional Finance Technical Team
MANAGEMENT LETTER
In addition to the audit report, the auditors will prepare a report to management highlighting but not restricted to the following:
A. Give comments and observations on the accounting records, procedures, systems and controls that were examined during the course of the audit.
B. Identify specific deficiencies and areas of weakness in systems and controls and makes recommendations for improvement.
D. Communicate matters that have come to their attention during the audit which might have a significant impact on the sustainability of the organization.
E. Bring to the Action Against Hunger Zambia Senior Management Team’s attention any other matters that the auditor considers pertinent.
AUDITORS EXPERIENCE AND QUALIFICATION
The auditor shall be independent from all aspects of management or financial interests of Action Against Hunger Zambia. The Auditor will employ adequate staff with appropriate professional qualifications and suitable experience with IFAC standards, in particular International Standards on Auditing and with experience in auditing the financial statements of entities comparable in size and complexity to Action Against Hunger Zambia. In addition the audit team as a whole will have:
· Appropriate experience with audits of a donor funded Organisations. At least one senior member of the field work team either a manager/supervisor should have such experience.
· Demonstrate sufficient knowledge of a regulatory framework of International NGO.
Audit Team composition
The team of auditors required for this engagement will be composed of an engagement Partner who has the ultimate responsibility for the audit and signing of the opinion and an audit team which is composed of an appropriate mix of auditors who have the relevant qualifications, skills and experience as set out below:
Curriculum Vitae
As part of the requirement, Curriculum Vitaes (CVs) of the partner and other key staff in the audit firm who is responsible for the audit and for signing the report together with the CVs of the Audit Manager, Supervisor and staff proposed as part of the audit team must be provided. CVs include appropriate details on the type of audits carried out by the staff indicating capability and capacity to undertake the audit as well as details on specific relevant experience.
SHORTLISTING CRITERIA
The following criteria will be used to shortlist firms for request for proposals (RFP);
i. Executive Summary
ii. Certificate of Incorporation of the firm
iii. Proposal validity period of 90 days
iv. Description of the approach, methodology and workplan for performing the audit assignment
v. Work schedule and planning for deliverables
vi. Team Composition, key experts input and attached Curriculum Vitae (CV)
vii. Company profile with a list of similar past works done giving evidence and details (relevant to the assignment).
viii. Valid tax certificate
HOW TO APPLY
a) Audit firms who meet the requirements of the TORs are hereby invited to submit their application
b) Audit firms should ensure that they submit a full proposal including all supporting documents relating to the audit firm, experience of the audit firm and key personnel qualifications. It is essential to ensure accuracy in the curriculum vitae of key staff submitted. Non-compliance with important requirements will result in rejection of the proposal;
c) Once the proposals are received and opened, auditors shall not be allowed nor permitted to change any content, the key staff and so forth;
d) The closing date for the application for expression of interest will close on 15th July 2025.
The documents marked Expression of Interest for the provision of external audit services must be emailed to the following email;