Terms of Reference for Provision of External Audit Services

      1. About PASGR

The Partnership for African Social and Governance Research (PASGR) is an independent, non-partisan pan-African not-for-profit organisation established in 2011 and located in Nairobi, Kenya.  Currently engaged in more than 12 African countries, PASGR works to enhance research excellence in governance and public policy that contributes to the overall wellbeing of women and men.

In partnership with individual academics and researchers, higher education institutions, research think tanks, civil society organisations, business and policy communities both in the region and internationally, PASGR supports the production and dissemination of policy relevant research; designs and delivers suites of short professional development courses for researchers and policy actors; and facilitates the development of collaborative higher education programmes.

Our vision is ‘a vibrant African social science community addressing the continent’s public policy issues’.  PASGR’s three core programmes bring together the right mix of universities, research institutions, government, policy actors, researchers and academics to:

• Establish and sustain partnerships at national/regional and international levels for advancing research, higher education and training;
• Facilitate the creation of policy and research communities;
• Enhance the institutionalisation of a research culture in Africa’s universities and research organisations; and,
• Coordinate a collaborative Master of Research and Public Policy with universities in Africa                                                                         

The creation of PASGR was initiated in 2010 through a project funded by UKAid and started up under a team put together by the British Council (Kenya).  Between February 2010 and December 2011, programme activities were developed and launched at the same time as the formal establishment of PASGR as a not-for-profit organisation incorporated in Kenya (PASGR Ltd. and the State of Delaware, US (PASGR Inc), with its office in Nairobi. The Board, bylaws, governance and management of both entities were identical. The process also included design of the organisation’s financial and administration policies, procedures and systems, drawing on technical advice commissioned from Ernst and Young (Kenya). At this point the project team was effectively transformed into the staff Secretariat of the organisation.

In early 2012, the two entities were formally merged and PASGR Inc registered in Kenya and Delaware as the surviving entity.  It is a non-profit, non-stock corporation under the General Law of the State of Delaware in USA with 501 (c) (3) tax exempt status of the Internal Revenue Code.

All organisational activities are targeted towards advancing research excellence for governance and public policy in Africa. PASGR is organised around three core programmes: Research, Higher Education and Professional Development and Training.

PASGR is seeking to procure external audit services in order to obtain independent and objective assurance as to whether the financial statements of PASGR present fairly, in all material respects, the financial position of PASGR in accordance with the International Financial Reporting Standards (IFRS)

2.Scope of Assignment

2.1 Annual Activities:

• Perform statutory audits as required by Kenyan law and International Financial Reporting Standards

• Plan and organise the audit on the basis of risk assessment to provide satisfactory assurance that the financial statements are free of misstatement due to fraud and errors.

• Ascertain that multi donor funds received by the organization have been applied for the intended purpose and have been accounted for in accordance with funding agreement.

• Verify that funds received by PASGR, have been acknowledged and reflected in the financial reports/statements submitted to the users/donors.

• Review and report on effectiveness of the organisations internal control systems in accordance with the International Auditing standards.

• Review and report on the effectiveness of the finance system, human resource management, procurement system as well as the funding structure.

3. Requirements

3.1 Eligibility criteria

Firms seeking to apply should be registered in Kenya and must have been in operation at least for the last 10 years providing both audit and tax services. Additionally, the firm must demonstrate experience in the audit of not for profit entities and organisations with similar registration to PASGR.

The following information should be provided:

• Certificate of incorporation/registration
• PIN Certificate
• VAT Certificate
• Tax compliance certificate
• Certificate of good standing from the Institute of Certified Public Accountants Kenya.
• List of at least three clients with registration similar to PASGR’s i.e. US registration, 501(c)(3) IRS Status and Company Limited by guarantee in Kenya

3.2 Capability

• Provide a brief about the firm. This must include a profile on past work done for clients with US not-for-profit 501 c 3 tax exempt status operating in Kenya.

• Provide a profile of the audit services team likely to be involved in the audit process.

3.3 Methodology

The firm should state the methodology/approach of conducting the audits. Upon selection, the firm will be expected to provide a letter of engagement which will also highlight the basis of the auditors work.

3.4 Proposed Fees

The firm should provide a quote for the provision of audit services as highlighted above. This should include projected fees for the subsequent two years.

4.1 Instructions for submission

All proposals should be submitted by 1 p.m. Kenyan time, Friday September 28, 2018 and delivered to our offices based at I & M Bank House, 6th Floor, 2nd Ngong Avenue, Upper Hill, Nairobi.

4.2 Delivery details

PASGR Offices

I & M Bank House, 6th Floor, 2nd Ngong Avenue, Upper Hill, Nairobi.