Terms of Reference for the Engagement of an External Auditor

TERMS OF REFERENCE (TOR)

For the Engagement of an External Auditor for UJAMAA PAMODZI AFRICA (UPA)

1. Background

Ujamaa Pamodzi Africa is a non-governmental organization working to prevent violence against women and children in Malawi. Our evidence-based programs have shown that wherever we teach, incidents of rape reduce by up to 50%. Ujamaa Pamodzi Africa invites proposals from qualified and reputable audit firms to conduct an external audit of its financial statements for the year ending 31 Dec 2025

2. Objective of the Assignment

The overall objective of the external audit is to enable the auditors to express an independent professional opinion on whether:

• The financial statements present a true and fair view of UPA’s financial position and performance.
• Funds provided to UPA were used for their intended purposes, in line with the approved budgets, donor agreements, and UPA’s internal policies.
• UPA has complied with relevant laws, regulations, policies and donor requirements.

3. Scope of the Audit

The audit will cover the following:

• Financial Statements
• Balance Sheet (Statement of Financial Position)
• Income & Expenditure (Statement of Financial Performance)
• Cash Flow Statement
• Statement of Changes in Equity/Reserves
• Notes to the Financial Statements

Time Period

The audit will cover UPA’s financial year which runs from 1 January to 31 December of each calendar year.

Audit Coverage

• Verification of income received from donors, grants, and other sources.
• Examination of expenditure records to ensure accuracy, completeness, and compliance.
• Review of internal control systems, governance structures, and risk management practices.
• Assessment of bank reconciliations, cash management, and asset management.
• Review of procurement, payroll, and grant disbursement processes.
• Assessment of compliance with applicable laws, regulations, and donor conditions.
• Identification of any material weaknesses or irregularities.

Deliverables

• An independent Auditor’s Report with opinion on the financial statements.
• A Management Letter highlighting key audit findings, internal control weaknesses, risks, and recommendations for improvement.
• Certification on whether funds were utilized in line with donor agreements and UPA’s objectives.

4. Auditor’s Responsibilities

The selected auditor shall:

• Conduct the audit in accordance with International Standards on Auditing (ISA) and International Financial Reporting Standards (IFRS) or any applicable local standards.
• Maintain professional independence, objectivity, and confidentiality.
• Provide timely communication of audit findings and recommendations.
• Liaise with UPA’s finance and management teams to obtain necessary documentation and clarifications.
• Submit the final signed audit report and management letter within the agreed timeline.

5. UPA’s Responsibilities

UPA will:

• Provide access to all financial records, documents, policies, and reports necessary for the audit.
• Facilitate meetings and interviews with management, staff, and stakeholders as required.
• Ensure timely availability of information and clarification to enable the auditors to complete the assignment in agreed timelines.

6. Expected Deliverables and Timeline

• Draft Audit Report & Management Letter: Within 2 weeks, after commencement of the audit.
• Final Audit Report & Management Letter: No later than 2 weeks after the completion of the Audit.
• Reports must be presented both in hard copy (signed) and electronic format (PDF/Word).

7. Qualification Requirements of the Auditor

The external audit firm must meet the following minimum requirements:

• Be a registered and licensed audit firm in Malawi and be able to operate within the jurisdiction.
• Demonstrated experience in auditing NGOs, donor-funded projects, and international organizations.
• Proven track record in conducting audits in compliance with ISA and IFRS.
• Evidence of qualified, experienced, and professionally certified staff (ACCA, CPA, etc.).
• Independence from UPA (no prior business/financial relationship with UPA management, staff, or Board).
• Ability to deliver within agreed timelines.
• Good reputation and strong references from at least three (3) previous NGO clients.

8. Submission of Proposals

Interested and eligible audit firms are invited to submit both technical and financial proposals including:

• Profile of the firm, including legal registration and professional affiliation certificates.
• Evidence of relevant experience with NGOs and donor-funded audits.
• Proposed audit methodology, work plan, and timelines.
• CVs of key audit staff to be assigned to the engagement.
• At least three (3) references from previous clients.
• Financial proposal, clearly stating professional fees, taxes, and any reimbursable expenses.

9. Evaluation Criteria

Proposals will be evaluated based on:

• Firm’s relevant experience and track record (30%).
• Qualifications and competence of key personnel (25%).
• Proposed methodology and audit approach (20%).
• Understanding of NGO/donor compliance requirements (15%).
• Financial proposal (10%).

10. Duration of Engagement

The engagement shall cover the audit of the financial year 1 January 2024 to 31 December 2024. Subject to performance and Board approval, the engagement may be renewed annually for up to 5 years.

11. Application Deadline

All proposals must be submitted by 16:00hrs on 14^th November, 2025 in sealed envelopes or via email to:

The Executive Director
Ujamaa Pamodzi Africa (UPA)
Area 47, Sector 2, Plot No. 68
Email: ujamaapamodzivacancies@gmail.com, cc: procurement.ujamaapamodzi@gmail.com,

Late submissions will not be considered.

Selection and Notification

Only shortlisted firms will be contacted. Ujamaa Pamodzi Africa reserves the right to accept or reject any proposal without assigning a reason.

Safeguarding Statement

Ujamaa is an equal opportunity employer and is committed to creating a safe and respectful work environment for all employees. We have a zero-tolerance policy for Sexual exploitation and abuse.

All personnel working with Ujamaa are required to adhere to Ujamaa Pamodzi Africa’s safeguarding and PSEA Policies and procedures. Note that for successful candidates there will be background checks to ensure the aforementioned is in order.