RFP-TZA-FIN-2025-002: Consultancy on Professional External Audit – FCDO Project Audit

Who is the Danish Refugee Council?

Founded in 1956, the Danish Refugee Council (DRC) is a leading international NGO and one of the few with a specific expertise in forced displacement. Active in 40 countries with 9,000 employees and supported by 7,500 volunteers, DRC protects, advocates, and builds sustainable futures for refugees and other displacement affected people and communities. DRC works during displacement at all stages: In the acute crisis, in displacement, when settling and integrating in a new place, or upon return. DRC provides protection and life-saving humanitarian assistance; supports displaced persons in becoming self-reliant and included into hosting societies; and works with civil society and responsible authorities to promote protection of rights and peaceful coexistence.

DRC has been operational in Tanzania since 2015 and has been implementing projects in the refugee response. The operation is based in Nduta and Nyangusu refugee camps. The area offices are located in Kibondo and Kasulu with a country office in Dar es Salaam. DRC established the operation in Burundi in October 2018. The country program is managed from Bujumbura under the supervision of the Tanzania Country Program. Our vision is a dignified life for all

Financial Project Audit

The Danish Refugee Council based in Tanzania, seeks proposals from an Audit firm to perform FCDO Project audit as per donor audit requirements. The Financial Information of the project/program shall be audited in accordance with International Standards on Auditing (ISA 805) “Special Considerations Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement”

Fundamental principles

3.1 The financial audit of projects (“financial audit”) is to be carried out by an independent auditor (“the auditor”), having the required professional competence and experience (e.g. Certification by National Audit Oversight Authority), and in accordance with International Standards on Auditing (ISA).

3.2 These Terms of Reference (“TOR”) define the mandate of the auditor in connection with the financial audit of Foreign and Commonwealth and Development Office (FCDO) project with number 3013175-401 implemented by Danish refugee Council in Tanzania between September 2024 to March 2025. The financial audit is based on the professional requirements and guidelines governing the professional work to be undertaken by an auditor.

3.3 In planning, conducting and reporting on the financial audit, the auditor has to follow the ISA 805*.*

In addition, the relevant standards of the local accounting profession as well as the local legislation on accounting and reporting in force in the country in which the financial audit is carried out need to be taken into consideration by the auditor.

Overall principles of the procedures to be performed

The auditor is required to plan, execute and report on the financial audit engagement in order to conclude on the following matter:

• 4.1 Principles of orderliness (financial regularity/reporting)

Furthermore, the auditor is required to assess whether the partner has adequate policies and procedures in place relating to the following matters (those matters are not covered by the audit engagement in accordance with ISA as mentioned above):

• 4.2 Existence, adequacy and effectiveness of the Internal Control System (ICS)
• 4.3 Conformity with the project objectives and adherence to the contract conditions
• 4.4 Economical conduct of business and effective use of financial resources

In order to respect these principles, the auditor has to analyse the questions mentioned in the annexed Questionnaire (Annex 1). While item 2.1 will be reflected in the audit report prepared in accordance with ISA, items 2.2 to 2.4 will be reflected by the answers of the auditor to the Questionnaire in the Annex 1. Recommendations to the management shall be formulated according to Annex 2 (Management Letter).

Documents of reference

The following documents and matters are to be considered by the auditor as basic references for performing the financial audit:

Legislation:

National law

Project/program:

Agreement between FCDO and DRC relative to the project

Project Document / TOR

Budgets, financing plans, programs of project activities

Project management procedures

Any other documents concerning the project/program

Accounting:

Accounting documents subject to the financial audit

Financial and operational reports concerning the project/program.

Auditor:

Prior internal and external audit reports of the partner

Any other information requested from DRC by the auditor

Planning the financial audit

The auditor shall adequately plan the financial project audit engagement well in advance of the work and ensure the execution of the financial audit of highest professional quality in an economical and efficient manner as agreed upon in the respective mandate in the name of the partner and the auditor.

On the basis of the information received during the planning phase, including the auditor’s risk assessment, the auditor shall determine:

• the type of transactions to be audited and the audit methods (full audit or sample selections);
• the type of physical counts or examination and the sites to be selected;
• the number of site visits to be planned.

The auditor ensures continuity in the audit approach of the financial audit engagement and the audit team, even if there is a change in the leader of the engagement team from the prior year.

Place of financial audit

The financial audit is to be carried out at DRC offices in Kibondo, Tanzania.

Management representation of full disclosure

The auditor shall obtain a management representation letter signed by the management of the partner organization, certifying:

1. The acknowledgement of the organization’s responsibility for the keeping of accounts and financial documents that are correct, complete, fair, representing the true facts, in conformity with the objectives of the project, the documents of reference (description of the project, contracts, budgets, etc.) and national legislation.
2. That all accounting records, supporting and other documents, minutes and any other pertinent information necessary for the audit be at the disposal of the auditor.
3. The completeness of information concerning property and goods.
4. The completeness of information concerning financing received or due and own financing concerning the audited period, for the project being examined.
5. The availability of any information and explanations, either orally or by written confirmation, which might be required by the auditor in the execution of his mandate.

Duration, timeline, and payment

The auditors shall be prepared to complete the assignment as below:

1. Audit to begin on 1st July 2025 and end by 30th-July 2025, and the
2. Audit report to be shared with DRC Management by 10th Aug 2025.

Payment installments will be as agreed in the contract.

Proposed Composition of Team

The Auditor/Consultant should submit CVs for all staff to be involved in each job title for the Team that includes Audit Partner, Audit team leader, Audit manager, Audit senior, Audit assistant or Special expertise, if necessary.

Eligibility, qualification, and experience required

The Firm profile and the Curriculum Vitae (CVs) of the firm’s partners should be provided to DRC by the principal of the Audit Firm who would be responsible for signing the opinion, together with the CVs of the Managers, Supervisors and Key personnel proposed as part of the Audit Team. In particular, the firm should:

1. The partner should be approved by NBAA and have a certificate of competency. The partner should be in good standing with NBBA or any accounting professional institution and have active audit license
2. The firm should have been in practice for a period of not less than 5 years
3. The firm must have five years’ experience in audit of large International Non-Governmental Organisations (INGOs) and conducting statutory audit.
4. The firm must have experience in IT systems audit
5. The firm must have at least two partners who are full time practitioners
6. The audit team must have Audit and accounting qualifications and level of experience (minimum of 5 years’ experience) of the key proposed personnel in relation to audit of financial service institutions.
7. Be able to demonstrate that the audit team has vast experience in the sector.
8. Be able to demonstrate ability to engage with different stakeholders in the sector including the Tanzania Revenue Authority (TRA) and other government departments.
9. Meet with the organization’s representatives to agree on the scope of the audit and address queries arising from the audit.
10. Be competent to provide Value-added services on matters related to taxation, Insight on changing operating environment and audit standards.

Technical supervision

The selected audit firm will work under the supervision of the Country Head of Support Services

Travel

While executing the assignment, there will be some travel expected to some of the areas we work in within the country and DRC will facilitate the related costs.

Evaluation of bids

DRC will evaluate proposals and award the assignment based on technical and financial feasibility in line with DRC Procurement guidelines.

A bid shall pass the administrative evaluation stage before being considered for technical and financial evaluation. Bids that are deemed administratively non-compliant may be rejected.

Documents listed in RFP invitation letter Must be submitted together with your bid

If any information required during the administrative evaluation is not provided by the bidders, DRC may choose to request bidders to supply this information within 48 hours of the tender opening. Please note that this is only applicable for documentation that does not alter the details in the bid, such as price information.

Technical Evaluation

To be technically acceptable, the bid shall meet or exceed the stipulated requirements and specifications in the TOR. If a Bid does not technically comply with the TOR, it will be rejected. Refer to the RFP Invitation letter – Annex B for the detailed evaluation criteria.

Financial Evaluation

The Financial proposal should be all inclusive and itemized to show audit fees, taxes, incidentals, logistics cost and any other cost associated with this assignment. The financial proposal should be in Tanzania Shillings.

Financial audit deliverables

The audit report shall provide an opinion on the financial information of the partner as per ISA (Template Annex 3).

The answers to the Questionnaire (Template Annex 1) and recommendations to the management (Management Letter according to Template Annex 2) as well as the management representation letter shall be provided as separate deliverables together with the audit report.

Note: Proposals failing to meet the minimum requirements stated above will not be considered further.

TERMS & CONDITIONS

The auditor must be completely impartial and independent from all aspects of the management or financial interests in Danish Refugee Council.

DRC reserves the right to accept or reject any proposal received without disclosing reasons to applicants and is not bound to accept the lowest bidder.

CONFIDENTIALITY

All information presented, obtained, and produced is to be treated as DRC’s property and is considered as confidential for all other purposes than what is outlined in these terms of reference.

ADDITIONAL INFORMATION

For additional information regarding these terms of reference, please send your questions to procurement.tza@drc.ngo

Please find complete bidding documents on the following link: RFP-TZA-FIN-2025-002-Consultancy on Professional External Audit – FCDO Project Audit