Population Services International (PSI) requests for audit proposals.

PSI was established in Sierra Leone in 2018. It supports key malaria interventions that are aligned with the National Malaria Control Program's national strategic plan to provide access to malaria control interventions for all and reduce malaria morbidity and mortality.

Section 1:  Request for Proposals (RFP)

Introduction

Population Services International (PSI) with over 45 years of experience, working in over 60 countries is the world’s leading non-profit social marketing organization. PSI is reimagining healthcare, by putting the consumer at the center, and wherever possible – bringing care to the front door. We are working to fix market failures, shape future health markets and shift policy and funding to better support consumer empowered healthcare.

Population Services International and affiliated organizations (PSI Sierra Leone) wish to procure the services of a locally based public accounting firm to perform an independent audit of statements of financial condition for PSI Sierra Leone, for the period of June 1, 2019 – December 31, 2020.

It is PSI and its affiliate’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 to the Country Representative in a sealed envelope by December 21, 2020.

PSI and its affiliates request that the audit engagement begin no later than January 18, 2021 and that the signed audit report be completed by agreed dates.

Section 2:  General Information on PSI

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 receives a significant percentage of its funding from grants/contracts and cooperative agreements with the United States Agency for International Development (USAID).  Under the standard provision of these agreements, PSI is subject to the administrative, accounting and audit requirements of the Office of Management and Budget (OMB).

2.1 General Information on PSI Affiliate

In 2018, PSI began implementing the global US President’s Malaria Initiative under the name Impact Malaria (IM). The overall goal of IM is work with Government of Sierra leone through the MOHS  under the guidance of the  National Malaria Control Program(NMCP) to scale up best practices and innovations in malaria case management, control of malaria in pregnancy, and the introduction of other malaria drug-based approaches. In Sierra Leone, The PSI affiliate maintains its accounts based on Generally Accepted Accounting Principles (GAAP) in U.S.

The audit will also include such other required schedules or analysis as PSI and PSI Sierra Leone have determined are necessary to ensure that program resources are being properly managed. The auditors should assess the organization’s compliance with the provisions of the Sierra Leone Finance Act and the relevant applicable regulatory authorities e.g., Sierra Leone Association of Non-Governmental Organization (SLANGO), Ministry of Planning and Economic Development (MOPED) and other Regulations Institutions, Funders and PSI Finance & Accounting Policies and procedures.

2.2 Qualifications of the Auditors

The auditor’s proposal should include Curriculum Vitae for the 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 auditor’s firm and staff must be independent of PSI and its affiliates and affirm their independence in the engagement letter

Other requirements include: –

• Be registered with the Institute of Chartered and Certified Accountants of Sierra Leone (ICASL) and its partners must be holders of current practicing certificate(s).
• The firm should have been in operation for not less than five years.
• Have a high-level understanding of the International Financial Reporting Standards (IFRSs) and the International Standards on Auditing (ISAs) and their practical application to financial reporting and auditing.
• Have a system of quality control in the provision of audit and assurance services.
• Can demonstrate capacity to provide efficient external audit services in adherence to agreed timeframes.

2.3   Audit Objective

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 including but not limited to the SLANGO and the National Revenue Authority.

The audit will also include such other required schedules or analyses as PSI Global and PSI Sierra Leone have determined are necessary in order to ensure that program resources are being properly managed.

2.4   Scope

The scope of the audit will be including all platform related financial expenditures and receipts as at June 1, 2019 through December 31, 2020

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).

To perform the audit activities, the audit staff will have full and complete access at any time to all PSI Sierra Leone 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.

2.4.1 Local Revenues and Expenditures

The focus of the audit is an examination of PSI Sierra Leone 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 the affiliate organization, are not within the scope of this audit.

2.4.2        Source Documents

All the original documents for PSI Sierra Leone’s local revenues and expenditures are kept in country and will be availed to the Auditor per request.

2.4.3        Time Period

The requested audit will cover the period from June 2019 1 to December 31, 2020.

2.4.4        Fixed Assets Management

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 and affiliates have an obligation to safeguard them and ensure that they are utilized in accordance with the terms of the grant or cooperative agreement.   PSI requires that each affiliate maintain a record of fixed assets.  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.

2.4.5        Summary of Employee Benefits Contingent Liability

PSI requests that the auditors examine the affiliates’ 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.

2.5              Audit Opinion

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.

2.6      Report on Internal Control

The auditors will provide a Report on Internal Control, prepared in accordance with IAS, because 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.

2.7      Report on Compliance with Local Laws and Regulations

The auditors are not requested to provide a separate Report on Compliance with local laws, regulations, and donor provisions.  However, because of the audit procedures performed 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 the affiliate organization in an internal control letter submitted separately.

2.8      Auditor’s Letter to Management

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 the affiliate and PSI Washington.  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:

• immaterial weakness in internal control,
• immaterial matters on compliance with laws and regulations,
• recommendations for improvements in the accounting system or records,
• discussion of alternative accounting practices,
• recommendation regarding staffing or staff responsibilities,
• recommendations for improvements to the commodities management systems and records, or
• recommendations for improvements to fixed assets management and recordkeeping.

2.9      Standard Footnotes

PSI and affiliated organizations have developed standard financial statement footnotes to achieve uniform reporting between the 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.

2.10  Management Representation Letter

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.

2.11  Work-paper Adequacy and Retention

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.

2.12  Communication and Reports

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 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

2.13  Point of Contact at PSI Platform

During the conduct of the audit, it will likely be necessary for the auditors to contact PSI Washington for confirmation of wire transfers and other transactions, and for clarification of PSI financial policies. Please direct all communications to:

audit@psi.org or klarbi@psi.org

2.14  Contact and Submission deadline of RFP

Completed RFP should be submitted not later than December 28, 2020. Addressed to:

The Finance and Admin Manager

Population Services International

3 Fadika Drive, Hill Station,

Email: pmusa@psi-sl.org