SBD – MESPT-FA-04-2024 – PROVISION OF INTERNAL AUDIT SERVICES FOR THE YEAR 2024-2027 65 views0 applications

TERMS OF REFERENCE (ToR)

PROVISION OF INTERNAL AUDIT SERVICES FOR THE YEAR 2024-2027

Eligible to Audit Firms Only.

Bids submitted by individuals will be rejected.

INTRODUCTION

The Micro Enterprises Support Programme Trust (MESPT) was established in 2002 with the mandate to assume and continue with the activities of a bilateral Programme implemented by the Kenya Government and the European Union between 1997 and 2002. MESPT was formed with the overall objective to promote economic growth, employment creation and poverty alleviation through support to microenterprises in all sectors of the economy. The Trust works with intermediaries that provide financial and business development services to improve the performance of enterprises and has offices in Nairobi, Mombasa, Voi, Malindi, Makueni, Nakuru and Embu.

Our Vision is to be the leading and preferred provider of resources for the development of Enterprises while our mission is to support the growth of micro, small and medium enterprises by providing integrated business solutions for sustainable development.

OBJECTIVES OF THE INTERNAL AUDIT FUNCTION

The objective of this bid is to appoint a suitable, independent service provider that can provide an appropriate internal audit service for MESPT. The internal audit function should assist MESPT to accomplish its objectives by bringing a systematic and disciplined approach to evaluating and improving the effectiveness of risk management control and governance processes. The risk management strategy, including the Fraud Prevention Plan, must be used to direct the internal effort.

One of the objectives of the internal audit function is to assist the Risk, Governance & Audit Committee (RGAC), in the effective discharge of their responsibilities. This has to be done through furnishing them with analyses, appraisals, recommendations, counsel and information concerning the activities that have been reviewed as well as regular follow-ups. Other objectives/standards/controls of the audit function, which are subject to an evaluation, are to review the following:

• Internal control processes.
• The information systems environment.
• The reliability and integrity of financial and operational information.
• The effectiveness of operations.
• Compliance with policies, regulations and contracts.
• The safeguarding of assets.
• The economical and efficient use of resources.
• The achievement of established operational goals and objectives; and
• Compliance with laws, regulations and controls.

The auditor shall ensure that all work conforms to the IIA Standards for Professional Practice. Such work may further be subjected to external quality assurance, as may be considered necessary.

SCOPE OF WORK

The auditor’s responsibilities shall include but not limited to the following:

1. The internal audit function must, in consultation with RGAC, prepare:

• An Annual Internal Audit Plan based on its assessment of key areas of risk for MESPT, having taken into consideration its current operations, the operations proposed in its corporate or strategic plan and its risk management strategy.
• Plans indicating the scope and timelines of each audit in the annual internal audit.
• Audit reports directed to RGAC detailing its performance against the plan to allow effective monitoring and intervention, when necessary.

1. It must co-ordinate with other External Auditors to ensure proper coverage and minimal duplication of effort.
2. The internal audit function must assist the management in maintaining effective controls by evaluating those controls and developing recommendations for enhancement or improvement.
3. It must assist the MESPT in achieving its objectives by evaluating and developing recommendations for the enhancement or improvement of the processes through which:

• Objectives and values are established and communicated.
• The accomplishment of objectives is monitored;
• Accountability is ensured;
• Institutional values are preserved;
• The adequacy and effectiveness of the system of internal control are reviewed and appraised;
• The relevance, reliability and integrity of management, financial and operating data and reports are appraised;
• Systems established to ensure compliance with policies, plans, procedures, statutory requirements and regulations, which could have a significant impact on operations, are reviewed;
• The means of safeguarding assets are reviewed and deemed as appropriate in verifying the existence of such assets;
• The economy, efficiency and effectiveness with which resources are employed are appraised;
• The results of operations or programmes are reviewed to ascertain whether they are consistent with MESPT established objectives and goals and whether the operations or programmes are being carried out as planned; and
• The adequacy of established systems and procedures are assessed.

Fraud and Irregularities

In planning and conducting its work, the internal auditor should seek to identify serious defects in internal controls, which might result in possible malpractices. Any such defects must be reported immediately to the CEO and/or RAGC without disclosing these to any other staff.

This also applies to instances where serious fraud and irregularities have been uncovered.

DELIVERABLES

Each assignment should at least consist of the following:

• Minutes of meetings.
• A record of work performed.
• Audit findings recommendations and management response; and
• Follow-up on previous audit findings.

On completion of each assignment, the auditor is to deliver signed copy of the final report to the chairman of RGAC and MESPT CEO which incorporates management responses.

On a quarterly basis, a report on progress against the plan, significant findings and administrative matters will have to be presented to RGAC.

REQUIRED PROFILE OF THE AUDIT FIRM/CONSULTANT

Bidding Firms/Consultants will be required to meet the following criteria:

1. Be registered with Institute of Certified Public Accountants and in good standing.
2. Should been in operation for a period of at least three years

Should demonstrate that it has the capacity, capability and experience required to undertake the assignment within required timelines.