WAT - External Auditor - Recruitment - ToR - Final

WaterAid Tanzania Country Programme
Terms of Reference
For
Provision of Audit Services
2022.
1
1. Background
1.1. About WaterAid Tanzania
WaterAid Tanzania Country Programme is part of WaterAid, which is an International
Non-Governmental Organization (INGO) with its head office in London, UK; dedicated to the
provision of safe water, sanitation and hygiene education to the world's poorest people.
WaterAid Tanzania collaborates with the Government of Tanzania (GOT) at three levels: Local
Government Authorities (LGA), Regional and Central Government and works in partnership
with local organizations to set up sustainable Water, Sanitation and Hygiene (WASH)
Interventions/ projects using appropriate technology that can be managed by the
communities themselves.
WaterAid has had its operations in Tanzania since 1983 under the name "WaterAid Tanzania"
which is registered as Non-Governmental Organisation in The Republic of Tanzania
(NO.SO.7557). WaterAid Tanzania operates as a Country Programme and functional office of
WaterAid UK; within East African Region. The head office is in Dar es Salaam, Rufiji Street, Plot
No. 1469, Masaki Area within Kinondoni District.
1.2. About the audit services

WaterAid Tanzania requests submission of financial and technical proposals relating to
provision of external audit services for the year ended March 2022. WaterAid Tanzania’s
financial statements cover 12 months from 1st April to 31st March. The audit of financial
statement is done once every year in line with the requirements described through
engagement letter; which provides terms and conditions of the audit.
WaterAid Tanzania’s external auditor will be retained for a period of 3 years subject to annual
review between the two parties, the audit engagement letter will be reviewed and renewed
each year as appropriate. After three years, the services will be advertised, and the auditor
appointed this year will be eligible to retender, subject to national laws on auditor
reappointment.
2. The Auditors
The auditor shall be an auditing firm, independent and legally registered to operate in
Tanzania with a valid business and professional licence. The firm shall have experience of
auditing international NGOs accounts operating in Tanzania with experience in IFRS to IPSAS
conversions.
3. Scope of the audit

3.1. The audit work
The auditors will be required to audit a set of accounts for WaterAid Tanzania and its partners
as part of statutory requirement. The audit involves but is not limited to ascertaining whether
the financial accounts are a fair and true representation of the financial situation of WaterAid
Tanzania and are in line with the generally accepted accounting principles; and have been
adequately converted to comply with the requirements of IPSAS.
2
3.1.1 WaterAid Tanzania Partners
External audit must include visiting some of the implementing partners to be chosen by
the auditor based on their risk profile. The basis for this selection should be shared with
WaterAid and should not be based purely on geographical convenience.
The Auditor should perform appropriate audit testing of the transactions and records of
partner organisations to enable them to reach an opinion on the truth and fairness of
WaterAid Tanzania’s financial statements. Partner audit should include a review of how
effectively the partners are monitored by the Country Programme, testing, examination and
verification of transactions to respective records and to supporting documentation. The
Auditor’s recommendations will also help WaterAid to support the partner to address the
identified gaps and improve their financial management.
3.1.2 Auditing standards

The audit will be conducted in accordance with international standards on Auditing and will
include such tests of transactions and of the existence, ownership and valuation of assets and
liabilities as considered necessary. The auditors shall obtain an understanding of the
accounting and internal controls systems to the extent necessary in order to assess their
adequacy as a basis for the preparation of the financial statements and to establish whether
the programme has maintained proper accounting records. The auditors are expected to
obtain such appropriate evidence as considered sufficient to enable them to draw reasonable
conclusions thereto.
3.1.3 Audit plan

The auditors are expected to develop, communicate and implement a comprehensive audit
plan that is risk-based. The Audit plan should set out a timeline, requirements and
expectations from WaterAid and relevant partners including The Government of Tanzania,
regulatory authorities and donor community. The audit shall include assessing the significant
estimates and judgements made by the Country Program in the preparation of the financial
statements and whether the accounting policies were appropriate to the circumstances,
consistently applied and adequately disclosed. In forming their opinion they should also
evaluate the overall presentation of information in the financial statements.
3.2. Outputs
The following outputs among others are expected at the end of the audit exercise
• Signed Financial statements including Balance Sheet, Income and Expenditure
statement and cash flow statement. This should also include the Independent
Auditor’s report with an opinion on the truth and fairness of the financial
statements; and
• Management letter with risk assessment on identified issues as High, Medium and
Low and comprehensive recommendations to address internal control issues
reported.
3
3.3. Intended completion timeline
It is expected that the audit for each financial year ended in March may take a maximum
of two weeks and will be completed by 22nd June each year. Before this date the audit
findings should have been presented to the Country Director for comment.
Audit visits are expected to be completed during May, to allow time for completion and
resolution of any issues. The exact timetable will be agreed at the start of each year end cycle.
3.4. Roles and responsibilities of all parties concerned

Prior to commencement of the audit, terms and conditions of the audit will be agreed and
described through the audit engagement letter and will form part of the contract for the
assignment.
4. Response Proposal Specifications

Interested audit firms should submit combined technical and financial proposals comprising
of relevant information including the following:
• Profile of the auditing firm;

• Comments on the terms of reference - Understanding and interpretation of the
audit assignment;
• Proposed approach (methodology) to the assignment;
• Details of selected relevant assignments completed in the past five years (Top
five) two of which must be with international organisations;
• Staffing level clearly indicating number of partners, managers, supervisors, audit
seniors and other audit staff at the time of preparing the proposal, and growth
plan for the next two years;
• Abridged CVs of partners, managers and supervisors that would be assigned the
WaterAid audit; and
• Financial proposal indicating the basis of determining audit fees, include any
estimates for expenses incurred during the audit.
5. Submission of Proposals
The hard copy of proposal should be submitted in sealed envelope, clearly marked
“Proposal for provision of audit services”. The proposal MUST be addressed to:
Country Director
WaterAid Tanzania
P.O. Box 33759
Plot 1469 Masaki Street, Off Haile Selassie Rd, Msasani Peninsular
Dar es Salaam.
6.0 Selection criteria

Selection of the successful audit firm will be based on the above listed documents, with
particular focus on technical proposal, recent experience, and fee.
For any inquiry contract; [email protected]

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WaterAid Tanzania Country Programme

1.2. About the audit services

3. Scope of the audit

3.1.2 Auditing standards

3.1.3 Audit plan

3.4. Roles and responsibilities of all parties concerned

4. Response Proposal Specifications

• Profile of the auditing firm;

6.0 Selection criteria

For any inquiry contract; [email protected]

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