Annual Audit for the Kenya Livestock Marketing and Resilience Project (KLMP)

Background

Since 1944, Heifer International has worked with more than 43 million people around the world to end hunger and poverty in a sustainable way. Working with rural communities in 19 countries in Africa, Asia and the Americas, including the United States, Heifer International supports farmers and local food producers to strengthen local economies and build secure livelihoods that provide a living income. Heifer International began working in Kenya in 1981. Since then, Heifer Kenya has supported more than 682,000 families working in the dairy, meat, poultry and horticulture value chains. Heifer Kenya works with farmers to increase production and productivity by strengthening extension services and farmers’ cooperatives, where they gain vital skills that enable them to scale and sustain their businesses.

About the assignment

Heifer International wishes to engage the services of an audit firm for the purpose of auditing the Kenya Livestock Marketing and Resilience Project (KLMP), as stipulated in the agreement between Heifer International and Sida. The audit shall be carried out in accordance with International Standards on Auditing issued by the International Auditing and Assurance Standards Board. In addition, an assignment according to International Standard on Related Services ISRS 4400 (Revised) shall be carried out. The audit and the additional assignment shall be carried out by an external, independent and qualified auditor.

Objective and scope of the audit

The objective is to audit the financial report for the period 1 September 2025 to 31 August 2026, as submitted to Sida, and to express an audit opinion according to ISA, applying ISA 800/ISA 805, on whether the financial report of KLMP is in accordance with Heifer International’s accounting records and Sida’s requirements for financial reporting as stipulated in the agreement and its appendices. The additional assignment under ISRS 4400 (Revised) will include agreed-upon procedures covering the financial report’s comparability with the latest approved budget, financial outcomes by budget line, opening and closing fund balances where applicable, exchange gains and losses, explanatory notes, and funds forwarded to implementing partners where applicable. The assignment will also review salary costs and supporting documentation, documentation and verification of actual time worked, compliance with applicable tax legislation relating to PAYE and social security fees, screening of implementing partners and suppliers against the European Union financial sanctions list, and reconciliation of unspent fund balances with information in the accounting system and/or bank account. Where funds have been channeled to implementing partners, the audit will include review of agreements with selected implementing partners, audit requirements, financial and auditor reports, management responses, action plans and follow-up actions. It will also consider substantial observations from implementing partner audit reports and, where applicable, the use of alternative payment methods. Reporting requirements The reporting shall be signed by the responsible auditor and shall include the title of the responsible auditor. The auditor shall provide an independent auditor’s report in accordance with ISA 800/805, with the auditor’s opinion clearly stated. The financial report that has been subject to the audit shall be attached to the audit report. The reporting shall also include a Management Letter disclosing all audit findings and weaknesses identified during the audit process. The auditor shall make recommendations to address identified findings and weaknesses, presented in priority order and with a risk classification. Measures taken by Heifer International to address weaknesses identified in previous audits shall also be presented in the Management Letter. Where there were no previous findings or weaknesses to follow up, this shall be clarified in the audit reporting. The additional assignment according to ISRS 4400 (Revised) shall be reported separately in an Agreed-Upon Procedures Report. The procedures performed and findings shall be reported in accordance with ISRS 4400 (Revised), and the sample size shall be stated where applicable.

Eligibility and application requirements

Only legally registered audit firms are eligible to apply.

Applicants should submit:

- A letter of expression of interest and demonstration of capability. - A technical proposal detailing the applicant’s understanding of the assignment and how they propose to undertake it. - A technical capacity statement, including past experience and activities related to the assignment. - An organizational and/or individual overview highlighting related assignments completed. - A detailed profile of the lead auditor, including qualifications, experience and expertise relevant to the assignment. - At least three references from other clients for similar assignments. - A clear and comprehensive draft work plan outlining the major activities and schedule. - A detailed financial proposal in Excel format in Kenya shillings. The bidding audit firm must also attach: - Certificate of registration. - Partnership Deed, where applicable. - Valid audit practicing certificate. - KRA online PIN Certificate. - Valid Tax Compliance Certificate. - Physical location, including town, building, room number and postal address. - Trade references and clientele list where similar services have been or are being provided, including respective contacts. Failure to submit any of the required documents may result in disqualification.

Evaluation criteria

Proposals will be evaluated based on the following criteria:

- Understanding of the TOR: 10%

- Audit approach and methodology: 20%

- Capability statement, CVs, experience, systems and lead: 20% - Experience and expertise in carrying out similar Sida-funded projects: 40% - Statutory compliance and budget justification/cost realism: 10%

Total: 100%

The performance period