Call for Proposals: Firms or Individual Auditors to Provide External Audit Services

BACKGROUND:

The East African Centre of Excellence for Renewable Energy and Energy Efficiency (EACREEE) was established at the 7^th East African Community Sectoral Council on Energy meeting. The Centre was established to increase access to modern energy services across the region by promoting regional markets for renewable energy and energy efficiency products and services.  EACREEE has been mandated by the EAC Council of Ministers responsible for energy to promote renewable energy and energy efficiency in the eight partner states, including the Republic of Burundi, the Republic of Rwanda, the Republic of South Sudan, Democratic Republic of the Congo, United Republic of Tanzania, Republic of Kenya, Federal Republic of Somalia and the Republic of Uganda. Through its activities in regional policy harmonisation, capacity development, knowledge management, awareness raising, business and investment promotion, research, development and innovation, EACREEE aims to create an enabling environment for RE & EE markets and investments by mitigating existing barriers and promoting a competitive sustainable energy market and economies of scale in the EAC region

To uphold its commitment to transparency and accountability, EACREEE seeks to engage an independent external auditor to conduct a comprehensive audit of its financial statements for three financial years.

 

OBJECTIVES OF THE ASSIGNMENT

The primary objectives of this audit are to:

1. Express an Opinion and determine whether EACREEE's financial statements present a true and fair view of its financial position and performance in accordance with generally accepted accounting standards.
2. Assess Compliance and evaluate adherence to internal policies, partnership agreements, and relevant statutory requirements.
3. Evaluate Internal Controls and review the effectiveness of financial management and internal control systems,
4. Provide recommendations for improvements where necessary.

SCOPE OF WORK

The audit will encompass the following activities:

Financial Statement Examination:

• Verify that all financial transactions are supported by appropriate documentation and are recorded accurately and sufficiently in the accounting system.
• Ensure that financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) or other applicable standards.

Internal Control Review:

• Assess the adequacy and effectiveness of internal controls over financial reporting and operations.
• Identify any weaknesses and provide recommendations for strengthening internal controls.

Compliance Testing:

• Confirm that expenditures are in line with approved budgets, donor agreements, and organizational policies.
• Ensure that procurement processes comply with established procedures and regulations.

Fraud Risk Assessment: Evaluate the organization's exposure to fraud risks and assess the measures in place to prevent and detect fraud.

DELIVERABLES:

The auditor is expected to provide:

1. An independent auditor’s report expressing an opinion on the financial statements.
2. A detailed management letter highlighting findings on internal controls, compliance issues, and other significant matters. Recommendations for addressing identified issues and enhancing financial management practices.

AUDIT STANDARDS:

The audit shall be conducted in accordance with:

• International Standards on Auditing (ISA) ensuring a systematic and standardized approach to the audit process.
• GAAP guiding the preparation and presentation of financial statements.
• Relevant National Regulations, complying with statutory requirements applicable to EACREEE's operations.

DURATION AND TIMELINE:

The audit is expected to happen between March and May 2025. A detailed audit plan, including key milestones and timelines, should be submitted by the auditor at the inception of the engagement.

AUDITOR QUALIFICATIONS:

The selected auditor or audit firm should possess:

• Professional Certification: Valid certification and membership with a recognized professional accounting body.
• Relevant experience: A minimum of 5 years of experience in auditing non-profit or regional organizations, with a focus on donor-funded projects.
• Technical Expertise: Proficiency in IFRS, ISA, and relevant statutory requirements.
• Independence: No prior engagements with EACREEE that could compromise the auditor's independence and objectivity.

PROPOSAL SUBMISSION

Interested auditors are invited to submit proposals that include:

• Technical Proposal:
  • An understanding of the assignment and proposed methodology.
  • A detailed work plan outlining the approach to be adopted.
• Financial Proposal:
  • A breakdown of costs, including professional fees and any other associated expenses.
• Firm/Individual Profile:
  • Relevant experience and qualifications.
  • References from similar assignments conducted in the past 5 years.

Proposals should be submitted electronically to info@eacreee.org by 7th March 2025

EVALUATION CRITERIA

Proposals will be evaluated based on:

• Technical Approach: Understanding of the assignment and robustness of the proposed methodology.
• Experience and Qualifications: Relevant experience in similar audits and the qualifications of the audit team.
• Cost: Reasonableness and transparency of the financial proposal.
• References: Feedback from previous clients on similar assignments.

CONFIDENTIALITY

The auditor shall maintain the confidentiality of all information obtained during the audit and shall not disclose any such information to third parties without the explicit consent of EACREEE.

By engaging an external auditor through this ToR, EACREEE aims to reinforce its commitment to financial integrity, accountability, and continuous improvement in its financial management practices.

Proposals should be submitted  to info@eacreee.org by 7th March 2025