AF: ARTF-Public Fin. Mgmt. Reform II - P120427
National Procurement Authority | Published June 16, 2016 - Deadline July 2, 2016
Assignment Title: Consulting Services For External Audit,
Support Services &sustainable Capacity Building Of Sao
REQUEST FOR EXPRESSIONS OF INTEREST(REOI)
(Consulting Services? Firms Selection)
Country: Islamic Republic ofAfghanistan
Project Name:Public Financial Management Refortm Project-II(PFMRII)
Grant No.: TF 10024
Project ID: P120427
PP Package ID: SAO/AF/C-1
Assignment Title: Consulting Services for External Audit, Supportservices &Sustainable Capacity Building of SAO
NPA Ref. No.:SAO/AF/C-1/NPA/SAO/95/CS-1046/QCBS
1.1 At the end of Taliban rule, the overall auditenvironment in Afghanistan was very weak, as could be expected after 23 years of war and instability. At that time, thefinancialreporting framework had almost completely broken down, particularly with regard to provincial reporting and the productionof final accounts. There was inadequate capacity within the SAO and within other ministries and departments. While on paper, therewas a relatively sound systematic approach to expenditure management with laws, regulations, and manuals containing the controlsand recording expected, in reality the system was not operational.
1.2 The SAO has made huge strides, not only inexperienced and skilled HR improvement, but structural changes has led to the independence of SAO. With the new audit law passed1392 solar year by parliament SAO enjoys independence and Auditor General is mandated for six years that can only be reversed underextraordinary circumstances that apply for the most serious leadership.
1.3 Between August 2002 and May 2016, a number ofaudit consultancy firms have been contracted to provide operational support and capacity building to the SAO. With support fromdevelopment partners, SAO has so far received audit support from the likes of PKF International, Deloitte and SN Nanda & Co,Thescarcity of qualified accountants and the lack of understanding of financial statement audits within the SAO have required that thecontracted firm plays a significant role in the conduct of audits. With the support of these firms, SAO has been able successfullycomplete a substantial number of World Bank and ARTF funded projects. The on-the-job training provided by these firms has alsohelped improve on the technical capacity of the SAO audit staff in the areas of audit planning,execution and reporting andadherence to INTOSAI standards and methodologies. As a result, theSAO has now been able to successfully re-establish itself as a working institution capable of absorbing institutional strengtheningassistance. The SAO teams are now able to conduct the following audits;
b. Compliance Audit ofRevenue
c. Compliance Audit of Expenditure
d. World Bank Grants, ARTFAudit
1.4 The various consultancy firms were able toassist the SAO in updating its Grants Audit Manual and also help conduct various training activities, both formal and on-the-job,in audit, accounting, English and computer literacy for over 100 SAO staff.
It should be noted that althoughthe above progress hasso far been achieved, the SAO still needs to develop its professionalcapacity so that it fully complies withthe ISSAIs and guidelines in the conduct of its mandated audits. The SAO will therefore require further audit assistance in orderto achieve its objectives.
2.1 The goals of the Governmentof Islamic Republic of Afghanistan (GoIRA) include maintaining appropriate fiduciary standards to provide reasonable assurance tothe Afghan public and to international donors that government resources and donor funds are subject to appropriate allocation andexpenditure controls. An important objective is achieving compliance with international standards of financial management includingthe use of internationally recognized accounting, auditing, and reporting standards enabled by modern technology andsoftwareapplications.
2.2 This contract seeks toconsolidate and enhancethe improvements made over the past twelve years to enable the SAO toincreasingly provide comprehensiveauditing services in accordance with international standards of auditing. Specific milestones will be set over the period of thecontract to achieve this objective.
3. Scope of theAssignment
3.1. Thisconsultancy will provide support to the SAO in audit operations and in supportinstitutional strengthening through capacity building by on-the-job training and classroom training for SAO auditors and management capacity development through workshops,seminars, training program with other SAIs, enrichment of SAO's library (Purchasing of Professional Audit Books) and etc. in compliancewithinternational standards in audit planning, fieldwork and reporting in addition to specific training in financial statementaudit.
3.2. For further information on the scope of the services, you can access the ToR under theabove mentioned assignment title and reference number on thewebsite: www.npa.gov.af
The Supreme Audit Office of the IslamicRepublic of Afghanistan, now invites eligible consulting firms ("Consultants") to indicate their interest in providing theaforesaid Services. Interested Consultants should provide information demonstratingthat they have the required qualifications and relevant experience to perform the Services.
The short listing criteria are:
· The firm should be a professional management/consulting companyworking in Audit sector for at least 5 years.
· The firm should have experience in providing consulting services togovernmental /public sector entities in Audit Sector, preferably under similar conditions.
· The firm should have handled similar assignments in conducting Auditoperations and associated capacity building with value of US$ 900,000.00 or morefor any of the last threeyears.
· The firm should have qualified experts with knowledge of INTOSAI and IFAC auditing standards and relevantInternational Accounting and Auditing Practices and experience in providing direct assistanceon audit operations and undertaking capacity building of local advisors/SAO staff
· The consultant shall demonstrate having sound financial situation and capacity bysubmitting financial audit report with average annual turnover of at least US$ 1,700,000.00 during last 5 years (2011- 2015);
In providing the above-mentioned information demonstrating that they have the requiredqualifications and relevant experience to perform the Services, the consultants should also submit thefollowing:
· A brief presentation of the firm or association including Brochures of thefirm; Descriptions of similar assignments, indicating the nature and scope of these assignments, the staff involved and themethodology employed, in brief (Firms are encouraged to provide only material that is specific to the proposed services, and toavoid submittinggeneric promotional material);
· Brief description of skills available amongst staff althoughindividualexperts' CV/ bio-data need not be attached at this stage;
· Recent References.
5. Consultants may associate with other firms in the form of a joint venture or a sub-consultancy to enhance their qualifications. If consultants intend to associate with other firms, they are advisedto clearly identify the lead partner and state the composition and nature of the association (JV/ sub-consultant) intheir EOI.
In case the EOI is submitted in form of JV, each partner in theassociation shall meet the requirements defined in Para.3 above, under the short listing criteria.However, the short listingcriteria will not be applied and considered for sub-consultant.
6. A consultant will be selected though Qualityand Cost Based Selection (QCBS) in accordance with the procedures set out in the WorldBank's Guidelines: Selection and Employment of Consultants by World Bank Borrowers dated January 2011, Revised July2014.
7. The attention of interested Consultants isdrawn to paragraph 1.9 of the World Bank's Guidelines: Selection and Employment of Consultants [under IBRD Loans and IDA Credits & Grants] byWorld Bank Borrowers ? January 2011 Revised July 2014("Consultant Guidelines"), setting forth the World Bank's policy on conflict ofinterest. In addition, please refer to the following information on conflict of interest related to this assignment as perparagraph 1.9 of Consultant Guidelines: Bank policy requires that consultants provideprofessional, objective and impartial advice and at all times hold the client's interest paramount, without any consideration forfuture work, and that in providing advice they avoid conflictswith other assignments and their own corporate interests.Consultantsshall not be hired for any assignment that would be in conflict with their prior or current obligations to otherclients, or that may placethem in a position of being unable to carry out the assignment in thebest interest of the Borrower.The Guidelinesare available atwww.worldbank.org/.
8. Interested consultantsmay obtain further information at the address given below between 09:00 to 16:00 hours.
9. Expressions of interest,must be delivered in a written form to the address given below (in person, byemail orby mail) by July 2 , 2016, 15:00 Hrs (Kabul Local Time)dulyquoting reference to case reference SAO/AF/C-1/NPA/SAO/95/CS/1046/QCBS.
Attention: Aziz Ahmad Obaidi
National Procurement Authority
Administrative Office of the President
Pashtunestan Wat, Kabul, Afghanistan
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