Request For Proposals – Provision Of Services For External Audit Of Financial Statements For Habitat for Humanity Malawi (HFHM)

AUDIT TENDER

 PROVISION OF SERVICES FOR THE EXTERNAL AUDIT OF THE FINANCIAL STATEMENTS FOR HABITAT FOR HUMANITY MALAWI (HFHM) 

  1. Organization background

Habitat for Humanity Malawi (HFHM), established in 1986, is a national affiliate of Habitat for Humanity International and one of the country’s leading housing organizations. Anchored in the conviction that safe and affordable housing is a path out of poverty, HFHM has helped over 41,000 families access decent housing and has directly reached more than 133,600 individuals through construction, repair, and upgrading of housing units across rural and urban communities in Malawi.

In response to Malawi’s significant housing deficit, projected to reach approximately 3.9 million units by 2030 due to rapid population growth, urbanization, poverty, and increasing climate-related disasters, HFHM’s 2025-2030 Strategic Plan delivers its work across three major pillars: building more and better homes, transforming housing systems, and inspiring action for housing through partnerships, innovation, and volunteerism. By 2030, HFHM aims to improve housing conditions for 12,000 people, expand access to clean water for 22,500 people, and contribute to policy changes benefiting 2 million Malawians.

As the organization advances this agenda, it is seeking the services of a qualified firm to conduct its institutional audit.

  1. Audit Scope 

HFHM wishes to engage the services of an external auditor to audit its financial statements for the period 1 July 2025 to 30 June 2026, with a possible extension for a further two (2) years. HFHM’s financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and applicable laws and reporting frameworks in the Republic of Malawi. The audit itself must be conducted in accordance with the relevant International Standards on Auditing (ISA). The Auditor is expected to meet the following reporting milestones:

  • Draft audited financial statements to be submitted within Three (3) weeks from the date of commencement of the audit including the day for audit briefing.
  • The final and signed audited financial statements should be submitted within Ten (10) working days after approval of the draft audited financial statements.
  • The signed audited financial statements and management letter for the financial year end should be made available not later than 30 September 2026.
  • Sufficient audit evidence should be gathered to substantiate in all material respects the accuracy of financial statements. The audit report of the auditors should state whether the financial statements of HFHM were or were not in conformity with any of the above standards including the policies of HFHM and Habitat for Humanity International (HFHI). The final audited financial statements must be reflective of the following:
  1. Statement of financial position
  2. Statement of income and expenditure

iii. Statement of Cash Flows

  1. Statement of Changes in accumulated funds, and
  2. Comprehensive notes disclosures
  1. Audit reporting

The audited financial statements must be submitted with an auditor’s opinion and shall contain the methodology applied and the scope of the audit.

  • The report shall also contain an assurance that the audit was performed in accordance with international standards and by a qualified auditor.
  • The report shall contain the audit approach which will describe the audit procedures employed
  • The report shall contain the responsible auditor’s signature and title.
  • The auditor shall submit an audit management letter, which shall contain the findings made during the audit process. It shall state the recommendations implemented from the previous audits and whether measures taken have been adequate to deal with reported shortcomings.
  • The auditor shall make recommendations to address any weaknesses identified. The recommendations should be presented as a priority.
  • The auditor shall report by stating whether the audited financial statements are true and fair in all material respects.
  • Report on the degree of compliance with each of the financial principles on the grants agreements and give comments, if any, on internal and external matters affecting such compliance.
  • Communicate matters that have come to their attention during the audit that might have a significant impact on the implementation and sustainability of existing projects.
  • The audit exercise shall be performed in a period of Three (3) weeks, and the auditor will be given 2 more weeks to compile and submit the Final report.
  1. Management Letter

The Auditors should submit a letter to management at the completion of the audit. The issues to be covered in the letter should include:

  • The assessment of the efficiency of the administration, management, and internal control systems of HFHM.
  • A description of any specific internal control weakness noted in financial management. Recommendations to resolve/eliminate the internal control weaknesses noted should be included.
  • Management comments/responses to audit findings and recommendations.
  1. Auditor Independence and Qualifications

To perform the audit of Habitat for Humanity Malawi, the following requirements must be met:

  • The Auditors must be impartial and independent from all aspects of management or financial interests in the entity being audited. The Auditors must not, during the period covered by the audit nor during the undertaking of the audit, be employed by, serve as director for, or have any financial or close business relationship with any senior member of HFHM’s management.
  • The Auditors should disclose any relationship that might possibly compromise their independence.
  • The Auditors must be experienced in applying auditing standards.
  • The Audit Firm must deploy adequate staff with appropriate professional qualifications and suitable experience in auditing the accounts of Non-Governmental Organisations.
  • The audit firm must be registered and hold a valid license from the Institute of Chartered Accountants in Malawi (ICAM) and other applicable regulatory bodies (Malawi Accountants Board etc.).
  • The key audit team will comprise, at least: an audit manager with at least 10 years’ experience in auditing and with sound knowledge of donor-financed projects.
  1. Access to Facilities and Documents

Financial recordings are automated in Sun Systems accounting package, the supporting documents in the form of payment vouchers are filed manually. The Auditors will have full and complete access at any time to all records and documents (including books of accounts, Donor agreements, minutes of the Board meetings, bank records, invoices, contracts etc.) and all employees’ files of HFHM.

Further, the Auditors will have a right to access banks and depositories, consultants, contractors and other people or firms engaged by HFHM over the period under the audit review.

  1. Required

Interested firms should submit Technical and Financial proposals in sealed envelope as closed bids. The Technical Proposal should clearly define the proposed approach to the assignment and the implementation period, while the Financial Proposal should detail the cost implications.

The sealed envelope should be delivered by hand to: Habitat for Humanity Malawi, Area 14, Plot # 206, Next to Pacific Villas no later than 7th August 2026. Late submissions will not be accepted.

Eligible bidders must submit the following documents together with their bids; –

  • A company profile with details of physical address and contact details
  • A Tax Registration Certificate – with TPIN
  • Valid Relevant Professional Certificates

For any clarifications, please reach the organization on the following email: inquiries@habitat.mw

Post expires at 4:00pm on Friday August 7th, 2026