Population Services International (PSI) wish to procure the services of a locally based public accounting firm to perform an independent audit of statements of financial condition for PSI Ghana, for the period of January 01, 2022 to December 31, 2022.

 

It is PSI's intention to submit this request for audit services to more than one qualified accounting firm. Bidders are encouraged to respond with their best (lowest) price initially, as there may not be an opportunity to submit revised bids. All offers should be on a fixed price basis and should be submitted via email to pessel@psighana.org by Friday, February 10, 2023.

 

Interested Audit Firms should submit a proposal to PSI to undertake the annual audit of PSI Ghana’s implementation of the PMI/ VectorLink project for financial year 2022. Qualifying Firm must be registered in Ghana and must be in good standing per ICAG standard.

 

a. Methodology, range, and approach as to how the auditing firm will perform the external audit.

b. The Auditing Firm’s profile and a list of similar assignments undertaken in the past.

c. Team composition including professional profile of each member of the team.

d. Fees stating all direct and indirect costs to be incurred to execute the task. Fees must be in Ghana cedis.

 

PSI requests that the audit engagement begin no later than March 01, 2023 and that the signed audit report be completed by April 10, 2023.

 

Population Services International is not-for-profit organization, based in Washington DC, USA. It is exempt from United States federal income taxes under 501(c)(3) of the Internal Revenue Code, and is not classified as a private foundation under Section 509(a)(2). On a consolidated financial reporting basis, PSI follows the United States Generally Accepted Accounting Principles (GAAP) as required by the American Institute of Certified Accountants (AICPA) and the Financial Accounting Standards Board (FASB). Specifically, PSI complies with the principles of the AICPA Audit and Accounting Guide for Not-for-Profit Organizations.

 

PSI operates an office in Accra, Ghana and seeks to engage a local audit firm to perform the services described below.

PSI Ghana currently implements the ITN component of the USAID/PMI VectorLink Project with an annual budget of approximately USD 1million for 2022 financial year. PSI Ghana currently has a 3-member staff who are embedded at an Implementing Partner’s office in Accra. PSI Ghana incurs typical office expenses, such as utilities and supplies, in addition to salaries, travel (transportation, hotel, and per diem), consultants, and contractors. Additionally, PSI Ghana organizes programmatic events and trainings at which participants are paid per diem for their attendance. No major procurements of inventory or fixed assets occurred. PSI Ghana holds a GHS bank account with Absa and nearly all transactions are in GHS.

 

The objective of the PSI Affiliate’s financial audit is to obtain reasonable assurance that the local financial statements are free of material misstatement. The audit will be performed in accordance based on US GAAP and in accordance with ISA standards and in accordance with such other recognized auditing standards as are applicable in the host country. (Note: PSI has determined no material differences between US GAAP and IFRS for non- profit entities). The auditor report will include an Independent Auditors Report (Opinion) on the statements of financial condition. The auditors are not requested to prepare a Report on Compliance with local laws, regulations and donor provisions; however, the auditors should consider issues of material compliance with local laws and regulations in their evaluation of the internal control structure.

 

The audit will also include such other required schedules or analyses as PSI has determined is necessary in order to ensure that program resources are being properly managed.

 

The scope of the audit will be include all platform related financial expenditures and receipts. The audit will be conducted in accordance with International Standards on Auditing (ISA) as published by the International Federation of Accountants (IFAC), with special reference to ISA 800 (Auditor’s Report on Special-Purpose Audit Engagements). The audit will gather sufficient evidence to substantiate in all material respects the accuracy of the information contained in supporting schedules attached to the Statement of Sources and Uses of Funds (Cash Flow Statement).

 

In order to perform the audit activities, the audit staff will have full and complete access at any time to all PSI Ghana related and necessary records and documents (including books of account, legal agreements, minutes of committee meetings, bank records, invoices and contracts, etc.) as well as employees.

 

The focus of the audit is an examination of PSI Ghana’s locally controlled assets, liabilities, revenues and expenditures, both in local currency and US Dollars. The revenues and expenses of PSI Washington, including those related to programs being performed by other affiliate organizations, are not within the scope of this audit.

 

All the original documents for PSI Ghana, local revenues and expenditures are kept in country and will be availed to the Auditor per request.

 

The requested audit will cover the period from January 1 to December 31, 2022.

 

Fixed assets such as furniture, fixtures, equipment and vehicles are charged to the costs of program performance at the time they are purchased. These assets are not maintained in the accounting records of the local platform accounting records. However, these assets are valuable resources and PSI Ghana has an obligation to safeguard them and ensure that they are utilized in accordance with the terms of the grant or cooperative agreement. PSI policies require that a record of fixed assets are adequately maintained. The scope of the audit includes an assessment of internal control for fixed assets management and footnote disclosure of the total (unamortized) acquisition value of fixed assets.

 

PSI requests that the auditors examine PSI Ghana's contingent liability for employee benefits payable in case of layoff or termination, including vacation/annual leave and other benefits entitled under local laws, such as mandatory severance, pension or annual bonuses. The auditors shall provide a footnote describing the elements of the Employee Benefits Contingent Liability and the total amount of contingent liability for each element of employee benefit. A schedule of liability by employee should not be included in statements of financial condition, provided that the auditors retain appropriate detailed work papers supporting the amounts reported in the footnote.

 

The independent auditors will indicate if accounting standards have been applied, comply with US GAAP in all material aspects, identification of period audited, and whether the financial statements and supporting schedules fairly present the fund receipts and expenditures.

 

The auditors will provide a Report on Internal Control, prepared in accordance with IAS, as a result of the audit procedures performed in order to render an opinion on the statements of financial condition. The audit report will identify only those "reportable conditions" that involve risks of a "material weakness" in the internal control structure, as defined by the IAS. Any reportable conditions noted that do not rise to the level of risk of a material weakness shall be reported to PSI Washington and to the affiliate organization in a separate internal control letter.

 

The auditors are not requested to provide a separate Report on Compliance with local laws, regulations and donor provisions. However, as a result of the audit procedures performed in order to render an opinion on the statements of financial condition and the report on internal control, the auditors will consider applicable laws and regulations. The auditors should consider the possibility that material non-compliance with laws and regulations could result in a material misstatement of the statements of financial condition or could represent a reportable condition of internal control. Any instances of noncompliance noted that do not rise to the level of risk of a material noncompliance should be reported to PSI Washington and PSI Ghana in an internal control letter submitted separately.

 

The auditors may determine that there are certain matters that are not material to the statements of financial condition, but which the auditors wish to communicate to PSI. The auditors are encouraged to prepare a separate letter to management, which would be distributed with, but not incorporated in the audited statements. Such a letter, if prepared, would be the appropriate place for communicating matters such as:

PSI and affiliated organizations have developed standard financial statement footnotes in order to achieve uniform reporting between affiliates and PSI Washington. The auditors may include additional footnotes at the end of the standard footnotes. PSI discourages the inclusion of information in the footnotes that is immaterial, unnecessary or inordinately detailed, or that may be better communicated in a letter outside the published financials statements. The standard footnotes will be provided.

 

Field auditors are required to obtain a management representation letter signed by the Country Representative. The management representation letter provided includes the minimum information that the Country Representative should confirm. The auditors may add additional information or assurances in the standard letter. PSI and affiliates discourage the inclusion of

information in the management representation letter that is immaterial, unnecessary, or inordinately detailed.

 

The auditors' objective is to obtain sufficient competent evidential matter to provide them with a reasonable basis for forming an opinion. Working papers are records kept by the auditor of the procedures applied, tests performed, information obtained, and pertinent conclusions reached. The audit firm shall retain the audit work-papers for at least three years after the end of period covered by the audit, or longer as requested by PSI or the affiliate in writing. PSI and affiliates retain the right to request copies of work-paper schedules supporting the amounts reported in the statements of financial condition and footnote disclosures, for as long as the work-papers are required to be retained.

 

All audit reports and accompanying statements of financial condition and audit report on internal control communication shall, at a minimum, be presented in English. If reports are also required in other languages, the Country Representative shall specify the details of such versions of the audit report. The audit report shall be released to the Country Representative with two copies being sent directly from the auditors to PSI Washington c/o the Global Controller. If a matter is noted during the course of the audit that is deemed to be serious enough to affect the overall conduct of the audit, the auditors shall immediately notify the Country Representative in writing, unless the circumstances make it inappropriate to communicate the matter with the Country Representative, in which case the auditors shall contact PSI Washington directly. If a matter is raised with the Country Representative, a copy of the notification shall be faxed directly from the audit firm to PSI Washington c/o Global Controller.

The auditor's proposal should include Curriculum Vitae for a partner, manager and key staff proposed for the audit team. Please describe the audit firm's experience with audit reporting under International Standards on Auditing (ISA) and International Organization of Supreme Audit Institutions (INTOSAI). Provide references for similar audits performed within the last three years. The auditors firm and staff must be independent of PSI and its affiliates, and affirm their independence in the engagement letter.