Request for ProposalS

for the ANNUAL AUDIT OF

Bakhter development NETWORK (bdn)

Issue date:05-March-2018

Delivery of Proposals:

Electronic proposals must be sent by email to:

Email: /+93799274100

CC TO:

Nematullah Yousifi

Ph.: +93796655346

(Electronic proposals must be a single PDF document)

Closing date and time:

22-March -2017at2:00PM Local Time

BACKGROUND

1.Purpose of the Request for Proposals

2.Period of Service Agreement

3.Type and Scope of Audit

3.1.Timing of the Auditor’s Reports

3.2.Other Reporting Requirements

3.3.Key Audit Dates

3.4.Management Letter

4.Determination and Payment of Fees

5.Information about Bakhter Development Network(BDN)

5.1.Description

5.2.Key Information Systems

5.3.Audit Responsibility

5.4.Work Done by BDN Staff

5.5.Finance Finance Department

5.6.Internal Audit/Control

REQUEST FOR PROPOSALS ADMINISTRATION

6.Definitions

7.Request for Proposals Process

7.1.Enquiries

7.2.Information Meeting

7.3.Closing Date and Time

7.4.Late Proposals

8.Proposal Format

9.Additional Terms

9.1.Eligibility

9.2.Irrevocability of Proposal

9.3.Definition of a Contract

9.4.Negotiation Delay

9.5.Changes to Proposal

9.6.Companys’ Expenses

9.7.Acceptance of Proposal

9.8.Liability for Errors

9.9.Modification of Terms

9.10.Ownership of Proposals

9.11.Confidentiality of Information

9.12.Collection and Use of Personal Information

9.13.No Lobbying

10.Evaluation

10.1.Unsuccessful Proposals

10.2.Timetable

10.3.Basis for Selection

APPENDICES

  1. Receipt Confirmation Form
  2. Proposal Transmittal Form
  3. Audit Team Composition and Budgeted Audit Hours
  4. Draft Service Agreement

Attachments to the Draft Service Agreement:

  1. Request for Proposals
  2. Auditor’s Proposal

BACKGROUND

1.Purpose of the Request for Proposals

This Request for Proposals (RFP) invitesaudit firms and Consultancy Company to submit proposals for the performance of audit service with respect to the financial statements of Bakhter Development Network (BDN) for the fiscalyear 2017.

Period of Service Agreement

The selected Companywill perform the audit services as described abovefor one year, commencing with the 22-Dec-2016 till 21-Dec-2017reporting year of the organization.

Type and Scope of Audit

The audit of the Financial Statements of Bakhter Development Network (BDN) must be conducted in accordance with General accepted accounting principle GAAP.

The audit report should express an opinion as to whether the financial statements present fairly, in all material respects, the financial position of the entity, and the results of its operations, change in its net liabilities, and its cash flows for the year in accordance with Generally Accepted Accounting Principles (GAAP) and project contract requirement with respected to the organization operational policy.

1.1.Timing of the Auditor’s Reports

The Auditor and The Consultancy Company will:

  1. The auditors will assess BDN finance in preparation of financial statement for the year 2017
  2. Provide the financial statement auditor’s report, addressed to Bakhter Development Network (BDN) management board and finance department with respect to the project contract compliance and organization operational procedures.
  1. Providethe Country finance manager of Bakhter Development Network(BDN) with the auditor’sreports in sufficient time to enableBakhter Development Network(BDN) to meet any statutory reporting requirements such as timing and distribution where the report is needed
  1. The assessment is the part of Audit and separate report should provide
  1. The assessment should be tell the exact position of the organization based on the standard tools going to be applied.
  1. The assessment should be conduct after the organization annual auditcomplete and should focus on the risky areas and provide proper recommendation for the management to take preventive action.

1.2.Key Audit Dates and Assessment:

Event / Key Audit Date for each Fiscal Year
Presentation of Audit Planning Report to the management Board
First draft of financial statements sent to Auditor
 Final draft of financial statements sent to Auditor
Presentation of Final audit report to the management
Final ledgers of financial transaction for verification sent to audit team
Selection of sampling of the vouchers share by auditor for verification for all projects which are under audit.
Finding and observation presentation by auditor to the management
Management letter provide by auditor
Submission of Requisition for Assessment
Submission of requested documents by BDN for verification
Submission of finding by the company for the management response
Final report submission with the management including proper recommendation on risky areas found during verification.

1.3.Management Letter

The Auditor will prepare a management letter for the financial audit that highlights observations and recommendations related to internal control, accounting issues, or other matters identified during the audit.

While performing the audit, The Auditorshould remain alert while carrying out the audit for significant instances or patterns of behaviour that give rise to concerns about:

  1. accountability in the use and management of employers’monies;
  2. waste or misuse of BDN resources;
  3. probity in behaviour; or
  4. Compliance with financial and other legislation.

2.Determination and Payment of Fees

The companywill invoice Bakhter Development Network (BDN) for the fees for services completed as contemplated under this Request for Proposals. Amounts billed will be according to the tendered amounts set out in the Service Agreement with the Auditor.

After completion of the oneyear audit which under theService Agreement, either the Auditor or BDNmay call for a meeting to determine whether the audit fees for the remaining ONE years should be revised. Such a meeting may only be convened if:

  1. There has been or will be a significant change in the size and scope ofBDN’s operations that has resulted, or will result, in changes to the nature and extent of the audit work and that could not have been anticipated at the closing date of the RFP;
  2. There have been significant changes to professional standards for carrying out an audit in accordance withGAAP, where such changes were not known and could not have been anticipated at the closing date of the RFP;
  3. There have been significant changes to accounting standards or the accounting framework adopted by BDN that has resulted, or will result, in changes to the nature and extent of the audit work and that could not have been anticipated at the closing date of the RFP; or

In the event that additional workneeds to be performed in any particular year to meet Auditing Standards due to issues outside of the control of the Auditor, the Auditor will discuss with BDNwhether an additional fee may be charged for such work. The Auditor will provide BDN with full details of such additional audit work and the reasons for it.

3.Information about Bakhter Development Network (BDN)Projects:

3.1.Description of Project

Name of Project / Audit Period
SEHAT/BPHS Balkh / 22-Dec-2016 till 21-Dec-2017
SEHAT/BPHS Sur-e-Pul / 22-Dec-2016 till 21-Dec-2017
SEHAT/BPHS Baghlan / 22-Dec-2016 till 21-Dec-2017
SEHAT/BPHS Hirat / 22-Dec-2016 till 21-Dec-2017
SEHAT/EPHS Ghazni / 22-Dec-2016 till 21-Dec-2017
SEHAT Daikondi / 01-Jan-2017 till 30-Jun-2017
Malaria Grant/UNDP / 22-Dec-2016 till 21-Dec-2017
TSFP Baghlan,Hirat / 22-Dec-2016 till 21-Dec-2017
CB-Dots / 22-Dec-2016 till 21-Dec-2017
The total amount for this assignment is approximately 15,000,000 USD

3.2.Key Information Systems

The key financial statement components or processes are tabulated below.

Financial Statement Component orKey Business Process / Key Application Name
Financial transaction ,financial reporting / Quick book accounting software

The overall responsibility for the audit rests with Ahmad Shokran Osmani,Country Finance Manager .

3.3.Work Done by Bakhter Development Network (BDN)Staff

A major objective of BDN is to ensure quality audits and services at a reasonable cost. Accordingly, BDN staff are prepared to assist the Auditor by providing information, documentation and explanations as required. Assistance would include the following:

  1. Preparation of financial statements,
  2. Preparation of year-end working papers and lead sheets;
  3. Preparation of accounting schedules and reconciliations;
  4. Comparative analysis of current and prior results;
  5. Location of documentation supporting transactions selected for testing;
  6. Other reasonable assistance as required by the Auditor.

The above would include meetings with audit staff during the planning and field work stage of the audit. BDN responsible staff involved with the audit process is located at ICC and Finance department.

3.4.Internal control department.

BDN has an Internal Control department which carries out both financial and value for money primary checking to make prepare the documents for external audit.

REQUEST FOR PROPOSALS ADMINISTRATION

The following terms and conditions apply to this RFP and to the subsequent Service Agreement. Submission of a proposal in response to this RFP indicates acceptance of all the terms and conditions that follow and that are included in any addenda issued by BDN.

Provisions in proposals that contradict any of the terms of this RFP will be as if not written and do not exist.

4.Definitions

Throughout this Request for Proposals, the following definitions apply:

  • “Contract” or “Service Agreement” means the written agreement resulting from this Request for Proposals executed by BDN and the Auditor;
  • “Auditor” means the successful Company to this Request for Proposals who enters into a written Contract withBDN.
  • “BDN” means Bakhter Development Network ;
  • “must”, or “mandatory” means a requirement that must be met in order for a proposal to receive consideration;
  • “Company” means an individual or a company that submits, or intends to submit, a proposal in response to this Request for Proposals;
  • “Request for Proposals” or “RFP” means the process described in this document; and
  • “Should” or “desirable” means a requirement having a significant degree of importance to the objectives of the Request for Proposals.

5.Request for Proposals Process

Companies are advised to fill out and return the Receipt Confirmation Form (Appendix A)

5.1.Enquiries

All enquiries related to this Request for Proposals are to be directed, in writing by letter or email, to the contact persons identified on the front page of this Request for Proposals.

Information obtained from any other source is not official and should not be relied upon. Responses to enquiries concerning clarification of the terms of this Request for Proposals or information included in it will be provided to those Companieswho have returned the Receipt Confirmation Form. Enquiries must be communicated to the contact personsat least five days prior to the RFP closing date

Information Meeting

An information meeting will be held at the time and in the location specified on the front page of this RFP.

Any question will be responded through mail . However, questions of a highly complex nature, or questions where the questioner requires anonymity, should be forwarded in writing by letter or email.

5.2.Closing Date and Time

Proposals must be received by the date and time specified in the front page of this RFP.

Electronic proposals must besent by email to the address specified in the front page on RFP.

Late Proposals

Proposals will be marked with their receipt time at the closing location. Only complete proposals received and marked before closing time will be considered to have been received on time. Hard copies of late proposals will not be accepted and will be returned unopened to the Company. Electronic proposals that are received late will be marked late and will not be considered or evaluated. In the event of a dispute, the proposal receipt time as recorded at the closing location shall prevail whether accurate or not.

6.Proposal Format

The following format and sequence must be followed in order to provide consistency in Company's’ responses and to ensure each proposal receives fair consideration. All pages should be consecutively numbered.

  1. Proposal Transmittal Form (see Appendix B) - the Proposal Transmittal Form must be signed by a person authorized to sign on behalf of the Company and to bind the Company to statements made in response to the RFP.
  2. Table of Contents for proposal, including page numbers.
  3. The body of the proposal, including pricing. The proposal should address all factors identified as the assessment criteria in the same order as they are described in the criteria. Failure to address all criteria will impair the proposal. The BDNwill not seek clarification of vague or incomplete information.
  4. The price for proposal for each year must be in AFN, be all-inclusive, includingapplicable taxes, and be firm for the entire period covered by the Service Agreement, subject to Section 4 of thisRFP.
  5. The Companymust include statements:
  6. confirming that the Company’s proposed audit teams are independent[1] from BDN and any non-audit services performed by the Company for Bakhter development network (BDN)will neither prejudice that independence nor be in conflict with any governing code of professional ethics; and
  7. Providingdetails of any non-audit services rendered to BDN in the past three years and the fees relating thereto.

7.Additional Terms

7.1.Eligibility

Proposals will not be evaluated if the Company’s current or past corporate or other interests may, in the Bakhter Development network (BDN)’s opinion, give rise to a conflict of interest in connection with the project described in this RFP. This includes but is not limited to, involvement by a Company in the preparation of this RFP. If a Company is in doubt as to whether there might be a conflict or interest, the Company should consult with the contact persons prior to submitting a proposal.

7.2.Irrevocability of Proposal

Proposals must be open for acceptance for at least 90 days after the closing date.

By submission of a proposal, a Company agrees that should its proposal be successful the Company will enter into a Service Agreement with the Bakhter development network (BDN)with format and content consistent with Appendix D and only the winner company will inform for negotiation and the rest of the company cannot claims on the procedure which BDN applied for selection of the winner company and the winter company supposed to deposit amount of 250,000 AFN for bid and performance security till end of the service and the amount will returned back to the company once the service satisfactory complete by the company .

7.3.Definition of a Contract

Notice in writing to a Company that it has been identified as the successful Company and the subsequent full execution of a written Contract will constitute a Contract for services, and no Company will acquire any legal or equitable rights or privileges relative to the services until the occurrence of both such events.

7.4.Negotiation Delay

If a written Contract cannot be negotiated within thirty days of notification of the successful Company, the Bakhter development network (BDN)may, at its sole discretion at any time thereafter, terminate negotiations with that Company and either negotiate a Contract with the next qualified Company or choose to terminate the RFP process and not enter into a Contract with any of the Company's.

7.5.Changes to Proposal

By submission of a clear and detailed written notice, a Company may amend, or withdraw, its proposal prior to the closing date and time. At closing time, all proposals become irrevocable.

A Company will not change the wording of its proposal after closing, and no words or comments will be added to the proposal unless requested by Bakhter development network (BDN)for purposes of clarification.

7.6.Company’s’ Expenses

Companies are solely responsible for their own expenses in preparing a proposal and in subsequent negotiations with Bakhter development network (BDN) if any. If Bakhter development network (BDN)elects to reject all proposals, Bakhter development network (BDN)will not be liable to any Company for any claims, whether for costs or damages incurred by the Company in preparing the proposal, loss of anticipated profit in connection with any final agreement, or any other matter whatsoever.

Furthermore, a Company, by submitting a proposal, agrees that it will not claim damages, for whatever reason, relating to the Contractor in respect of the competitive process, in excess of an amount equivalent to the reasonable costs incurred by the Company in preparing its proposal and the Company, by submitting a proposal, waives any claim for loss of profits if no Contractis made with the Company.

7.7.Acceptance of Proposal

This Request for Proposals should not be construed as an agreement to purchase services. The Bakhter development network (BDN)is not bound to enter into an agreement with the Company that submits the lowest priced tender or with any Company. Proposals will be assessed in light of the evaluation criteria. The Bakhter development network (BDN)will be under no obligation to receive further information, whether written or oral, from any Company.

Neither acceptance of a proposal nor execution of a Contract will constitute approval of any activity or development contemplated in any proposal that requires any approval, permit or license pursuant to any federal, provincial, regional district or municipal statute, regulation or by-law.

7.8.Liability for Errors

While the Bakhter development network (BDN)has used considerable effort to ensure an accurate representation of information in this RFP, the information contained in this RFP is supplied solely as a guideline for Company's. The information is not guaranteed or warranted to be accurate by Bakhter development network (BDN)nor is it necessarily comprehensive or exhaustive. Nothing in this RFP is intended to relieve Company's from forming their own opinions and conclusions with respect to the matters addressed in this RFP.

7.9.Modification of Terms

The Bakhter development network (BDN)reserves the right to modify the terms of this RFP at any time at the Bakhter development network (BDN)’ssole discretion. This includes the right to cancel this Request for Proposals at any time prior to entering into an agreement with a successfulCompany.

7.10.Ownership of Proposals

All documents, including proposals, submitted to Bakhter development network (BDN) become the property of Bakhter development network (BDN)Documents will be received and held in confidence by Bakhter development network (BDN).