External auditor

 Terms of Reference (ToR)

1. Introduction and Overview

 Habitat for Humanity, founded in 1976, is a global, Christian-based nonprofit organization working in local communities across more than 70 countries worldwide. Seeking to put God’s love into action, we bring together people of all backgrounds to build homes, communities and hope. We work alongside partners, families, and communities to build and improve the places they call home, helping them achieve the strength, stability, and self-reliance needed to create better lives for themselves.

Habitat for Humanity Tanzania (HFHT) is among the 70 country affiliates of Habitat for Humanity International (HFHI). Since 1986, we have supported over 100,000 families in Tanzania access decent and adequate shelter through housing improvements, micro-finance and direct construction among other services that improve habitability. We are currently operating in Dar es salaam, Pwani, Dodoma, and Arusha.  We look forward to continued success in realizing our vision of a Tanzania where every family has access to safe and decent home.

Habitat for Humanity Tanzania (HFHT) is inviting proposals from qualified external audit firms to conduct an audit of its financial statements for the fiscal year 2024/2025. 

1. Scope of Work

The selected audit firm will be responsible for:

• Conducting an audit of HFHT’s financial statements in accordance with International Standards on Auditing (ISAs)
• Evaluating the effectiveness of HFHT’s internal controls and risk management systems.
• Providing recommendations for improving financial and operational processes.
• Ensuring compliance with all relevant laws and regulations.
• Providing an audit opinion on whether the financial statements are fairly presented in all material respects, as per ISA 700 (Revised).
• Issuing a management letter identifying any weaknesses in HFHT’s systems and providing recommendations for improvement. 

1. Eligibility Criteria

Eligible Audit firms’ consultants should meet the following criteria:

• The firm must have experience in auditing non-profit organizations under the International Standards on Auditing (ISA) and reporting under International Public Sector Accounting Standards (IPSAS) and the Non-Governmental Organizations Act, and its Regulations.
• The firm must provide proof of professional indemnity insurance.
• Compliance with legal requirements of registration.
• The audit firm/individual must have a practicing certificate and be in good standing with NBAA.
• References for similar audits performed within the last five years (From 2020 and above).
• Provide Audit Methodology, Proposed Work-plan, Curriculum Vitae for the partner, manager and key staff proposed for the audit team.
• Audit firm and staff must be independent of HFHT and affirm their independence in the engagement letter.
• Any actual or potential conflict of interest in taking up this role should be highlighted.

 Submission Requirements

• A detailed proposal outlining the firm’s qualifications, experience, and approach to the audit.
• A breakdown of the proposed fees and any additional costs.
• CVs of key audit personnel, including certificates of practice, valid business licenses, and experience with auditing NGOs, along with references. 

1. Evaluation Criteria

Proposals will be evaluated based on:

• The firm’s experience and qualifications.
• The proposed approach and methodology.
• The completeness and clarity of the proposal.
• The proposed fees and value for money. 

1. Expected Output

The expected output for the audit includes:

• Audit Opinion: An opinion on whether the financial statements are fairly presented in all material respects, as per ISA 700 (Revised).
• Management Letter: A letter identifying any weaknesses in HFHT’s systems, with recommendations for improvement. 

1. Conditions

• Confidentially

The auditor will be permitted to access HFHT files and reports that relate to this RFP.      Information pertaining to HFHT obtained by the firm because of this work is confidential and must not be disclosed without written permission of HFHT.

• Applicable laws

The agreement resulting from this RFP will be governed by and will be interpreted in accordance with the laws of Tanzania.

• Professional Ethics and Conduct

The auditor will be expected to conduct himself with integrity, objectivity and professional behavior at all times.

1. Submission Deadline

Proposals must be submitted by 14th March 2025 to the email address info@hfhtanzania.or.tz 

1. Contact Information For any questions or clarifications, please contact:

Magdalena George

Mgeorge@hfhtanzaania.or.tz