The Liberia National Red Cross Society (LNRCS) is a Humanitarian Organization that worked throughout the 15 Counties; The LNRCS is an impartial, neutral and independent organization whose mandate is to inspire, encourage, facilitate and promote at all time all forms of humanitarian activities. Liberian National Red Cross Society work with a view to preventing and alleviating human suffering and thereby contributing to the maintenance and promotion of peace and development in the world.
I. INTRODUCTION:
General Information
The Liberia National Red Cross Society (“LNRCS”) is requesting proposals (RFP) from qualified certified public accounting firms to perform professional auditing services. The audit shall be carried out in accordance with international audit standards issued by IAASB.
Period covered: 1 January 2019 to 31 December 2020.
Location: Audit procedures will be completed in LRNCS’s Head Office located on 107 Lynch Street, Monrovia – Liberia. LRNCS local chapters located in the 15 counties may also be visited after mutual discussion agreed during the engagement. All procedures will be subject to appropriate Covid-19 protocols and requirements.
The contract may be canceled if LNRCS determines the audit services to be unsatisfactory. There is no expressed or implied obligation for LNRCS to reimburse responding firms for any expenses incurred in preparing proposals in response to this request. Additionally, LNRCS reserves the right to reject any or all proposals submitted.
LNRCS reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between LNRCS and the firm selected.
To be considered, please submit hard copy of your proposal between the opening date November 1, 2021 up to the closing date November 17, 2021 at 4:30 p.m. on Wednesday.
Proposals that are received after the due date and time will not be considered. Respondents should submit a complete proposal, clearly marked on the envelop as: “Financial Audit Services Proposal”.
Your proposals must be properly sealed in an envelope and labelled as follow:
Financial Audit Services Proposal
Ref: RFP/LNRCS/ FAS-19-20 /2021
Attention: LNRCS, PROCUREMENT UNIT
Liberia National Red Cross Society
107 Lynch Street, Monrovia – Liberia
Your Proposal Submission Letters and Memos must address to the attention of (this not appear on the envelope):
ANSUMANA NYUMA,
Administrative & Finance Manager
Liberia National Red Cross Society
107 Lynch Street, Monrovia – Liberia
Note: An electronic-copy of the proposal will NOT be accepted.
II. BACKGROUND INFORMATION
It is the intent of LNRCS to contract for the services presented herein for a term of two years. LNRCS reserves the right to extend the term of this contract for one (1) or two (2) additional years term subject to the satisfactory negotiation of terms, including a price acceptable to both LNRCS and the selected firm (“external Auditor”). The proposal package shall present all-inclusive audit fees for each year of the contract term.
Fees shall include costs for each year including the one additional year option. An itemized cost break down shall be submitted for the principal and any additional cost. LNRCS requires the total costs be stated as a “not to exceed” basis. The “not to exceed” fee shall be inclusive of labor, transportation, report preparation, printing, and all other expenses incurred by the External Auditor.
Fees shall be billed together at the completion of the audit services and submission of reports. Payments will be made within 30 days after completion of service and receipt of invoice. LNRCS shall pay (reimburse) the External Auditor as promptly as practical after receipt of acceptable invoices which detail the agreed cost mentioned in the contract and any amendment thereof and the period for which payment is requested.
III. NATURE OF SERVICES REQUIRED:
LNRCS Management’s Responsibilities
LNRCS Management is responsible for the following:
- Preparing the financial statements in accordance with the applicable financial reporting framework and adhering to group accounting and reporting requirements.
- Implementing the appropriate internal controls to enable the preparation of financial statements that are free from material misstatement.
- Provide access to all information that is relevant to the preparation of the financial statements such as records, documentation and other matters.
Auditor’s responsibilities
- Scope of Work: Complete annual financial statement and compliance audits for fiscal years, 2019 and 2020.
The audit will include the following:
• Preparation and submission of a report on the Financial Statement of the LNRCS.
• Report on compliance over financial reporting based on an audit of financial statements performed in accordance with the rules and regulations of the LNRCS Financial Manual and best practice. LNRCS desires the firm to audit all funds of the agency in accordance with auditing standards generally accepted.
Prepare a report to the Board of Directors and Management that identifies control deficiencies, significant deficiencies and material weaknesses, if any, and your recommendations for improvements in accounting and administrative controls.
Additional Requirements;
The selected Auditor will be required to complete the following tasks in relationship to the Financial Statements:
- Express an opinion on the financial statements as to whether they present fairly, in all material respects, the financial position of LNRCS and the changes in financial position in conformity with generally accepted accounting principles (GAAP), and issue an independent auditors’ report stating this opinion.
- Test internal control over financial reporting and compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters, in accordance with Auditing Standards.
- Apply limited procedures related to the Required Supplementary Information (RSI), Management’s Discussion and Analysis (MD&A), budgetary comparison information, and the Supplementary Information.
- Communicate immediately and in writing all irregularities and illegal acts, or indications of illegal acts, of which they become aware, to the LNRCS Secretary General and the Board of Directors.
- Retain at External Auditor’s expense audit working papers for three (3) years, unless the firm is notified in writing by the Secretary General of the need to extend the retention period. In addition, the firm shall respond to reasonable inquiries of the Secretary General and successor, External Auditors and allow the Secretary General and successor, External Auditors to review working papers relating to matters of continuing accounting significance.
- Provide general consultation as required, during the service period, on financial reporting matters.
IV. TIMING AND OTHER REQUIREMENTS:
Key Dates for Proposal Evaluation and Selection:
- a. November 1, 2021 RFP issued
- b. November 17, 2021 Proposals closing date
- c. November 19, 2021 Opening of proposals/pre-selection of responsive respondent
- d. November 22, 2021 Management approval of proposals
- d. By November 26, 2021 Expected signing of Contract
- The External Auditor shall provide LNRCS with an audit plan, including a list of schedules and other work requested, no later than Nov 29, 2021.
- Depending on the type and extent of interim audit procedures, the LNRCS expects to have all records, prepared by client lists and schedules ready for the audit field work by November 30, 2021 and would expect field work to commence no later than the first week of December, 2021.
- The External Auditor shall complete field work in time to allow preparation of the draft audit report on the audited financial statements and discussion of the draft audit report of the statements with LNRCS staff by January 3, 2022.
- A draft of the management letter shall also be provided by January 4, 2021. LNRCS staff shall have the opportunity to discuss and comment upon any findings and recommendations prior to issuance.
- Draft Audit reports: The Report to the LNRCS Board of Directors and Management is required to be submitted by January 10, 2022 to enable management to respond and present the Report with management’s responses to LNRCS’ Board of Directors. The final draft financial statements are to be submitted as an electronic file (pdf) and hard copies.
- The final audited financial statements shall be issued in electronic format (pdf) and hard copies no later than January 12, 2022. The final version of the management letter shall be issued by January 14, 2022.
“A similar schedule will be developed for audits of subsequent fiscal years if any”.
Assistance Provided to the External Auditor
LNRCS finance department staff will be available during interim and audit field work to assist the firm by providing access and direction to information, documentation, and be available for explanations of all inquiries. Staff will provide clerical assistance for preparation of confirmations and other routine correspondence. LNRCS will provide the External Auditors with reasonable workspace access and copy machine.
Additional Services
If it should become necessary for LNRCS to request the External Auditor to render any additional services to either supplement the services requested in this RFP or to perform additional work as a result of the specific recommendations included in any report issued on this engagement, then such additional work shall be performed only if set forth in an addendum to the contract between LNRCS and the Auditor. Any such additional work agreed to between the LNRCS and the External Auditor shall be performed at the same rates set forth in the schedule of fees and expenses included in the Proposal Data Sheet and the contents of the Technical Proposal.
Payment
Progress payments will be made on work completed during the course of the engagement. Interim billings shall cover a period of not less than a calendar month.
Proposal Requirements
- Format of both Technical and financial Proposals
1. Title page a) the RFP subject, b) the proposing firm’s name, c) contact person’s name, local address, telephone number, and email address. If the firm has more than one office, state which office will be responsible for providing services to LNRCS, and d) the date of submission.
2. Table of Contents a) identification of material submitted, by section and page number, and b) cross reference to section and page number of RFP.
3. Transmittal Letter a) general introduction stating the proposer’s understanding of the services to be provided, b) a positive commitment to perform the service within the time period specified, c) a statement why the firm believes itself to be best qualified to perform the engagement, d) a statement of how long you have been in business and how many financial audits were performed by your firm for public and private agencies during the past five (5) years, e) a statement that the proposal is a firm and irrevocable offer for the stated period of time, f) name(s) of person(s) authorized to represent the proposer, title, address, telephone number, email address and g) signature.
4. Detailed Proposal Following the Order Set Forth in Section B
- Contents of both Technical and financial Proposals
The purpose of the Technical Proposal is to demonstrate the qualifications, competence, and capacity of the firms seeking to undertake an independent audit of LNRCS in conformity with the requirements of this RFP. The substance of proposals will carry more weight than their form or manner of presentation. The Technical Proposal should demonstrate the qualifications of the firm and of the particular staff to be assigned to this engagement. It should also specify an audit approach that will meet the RFP requirements.
The Technical Proposal should address all the points in the order outlined in the RFP. The proposal should be prepared simply and economically, providing a straightforward, concise description of the proposer’s capabilities to satisfy the requirements of the RFP. While additional data may be presented, the areas detailed below must be included. They represent the criteria against which the proposal will be evaluated.
- License to Practice in Liberia
An affirmative statement should be included that the firm and all assigned key professional staff are properly licensed to practice in Liberia.
- Independence
The firm should provide affirmative statement that it is independent of LNRCS and Government of Liberia.
The firm should also list and describe the firm’s professional relationships involving LNRCS for the past five (5) years, together with a statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit.
In addition, the firm shall give LNRCS written notice of any professional relationships entered into during this period of this agreement.
- Insurance Requirements
State the firm’s ability or inability to comply with any insurance requirements.
- Firm Qualification and Experience
To qualify, the firm must have extensive experience in audits of National and, or International Institutions as well as experience with the preparation of basic financial statements in compliance with generally accepted auditing standards.
The proposal should briefly introduce your firm, indicating whether your firm is local, regional, national, or international. State the size of the firm, the location of the office from which the work on this engagement is to be performed, and the number and nature of the professional staff to be employed in this engagement on a full-time basis and the number and nature of the staff to be so employed on a part-time basis. Indicate the name of the person who will be authorized to answer questions and to bind the firm, the person’s title, address, email and telephone number.
If the proposer is a joint venture or consortium, the qualifications of each firm comprising the joint venture or consortium should be separately identified and the firm that is to serve as the principal auditor should be noted, if applicable.
- Specific Audit Approach
The proposal should set forth a work plan, including an explanation of the audit methodology to be followed to perform the services required in Section III of this RFP.
Proposed segmentation of the audit work:
- What will be accomplished during interim and what at the end?
- What documents and working papers are expected to be provided by LNRCS.
- What is the anticipated length of field work for interim and the end work?
- What is the standard turnaround time from end of field work, to senior level review, to final draft, to audit report issuance?
- References
Please provide the name of all companies, NGO’s, Institutions, etc. for which the firm has audited basic financial statements during the past five (5) years. Please include reference contact information for at least three of these agencies, including the name, telephone number and email address of the principal client contact. LNRCS reserves the right to contact any or all of the listed references.
- Price
A complete estimate and explanation of fees is to appear in the text of your response in addition to the estimates contained on the proposal data sheet. A Total All-Inclusive Price is to be provided for the preparation of the Audit report on the financial statements and preparation and submittal of required reporting for each of the two years of the 2019-2020 engagement. Indicate how additional year’s fees would be calculated if the contract is extended. Please provide a list of fees for additional services that may be requested in relation to this audit.
- Evaluation Procedures
Proposals will be evaluated using three sets of criteria. Firms meeting the mandatory criteria will have their proposal evaluated and scored for both technical qualifications and price. The following represents the principal selection criteria, which will be considered during the evaluation process:
Mandatory Elements: a. The audit firm is independent b. insured c. licensed to practice in Liberia.
Our telephone numbers and email for further information:
Telephone: +231886954005/+231776053135/ 0776542348
Email: ansumana.nyuma@liberian-redcross.org
alexander.johnson@liberian-redcross.org
ambullai.perry@liberian-redcross.org
epadonou@icrc.org
