External Audit Services

Job description

EXTERNAL AUDIT SERVICES FOR THE PERIOD JULY 2024 TO JUNE 2025

Living Water International (LWI) is a global Non-Governmental Organization that exists to demonstrate the love of God by helping communities acquire desperately needed clean water and experience “living water” (the Gospel of Jesus Christ), which alone satisfies the deepest thirst.

TERMS OF REFERENCE FOR THE EXTERNAL AUDIT
Background

Living Water International Zambia mobilizes churches and communities in partnership with the Government toward physical and spiritual transformation through increasing access to sustainable water, sanitation, and hygiene (WASH) services and the gospel of Jesus Christ that alone quenches the deepest thirst. Currently, we operate in the province of Lusaka. In 2013, the program launched the country’s first WASH Program Area (WPA) in Chirundu. Despite Living Water Zambia’s size in comparison to other players in the sector, we have positioned ourselves well to deliver WASH services in Jesus’ name. Our program has a growing, dedicated, and multi-skilled team that is increasingly grounded in the values of Living Water, committed to integral mission, and works well with communities, churches, and the government.

A major strength of Living Water Zambia is its ability to engage and work with the local church and build long-term relationships with churches, communities, and other bodies at all levels in the delivery of its services. The program collaborates with local authorities, churches, and like-minded institutions such as the Evangelical Fellowship of Zambia. Our work has become more geographically focused, and we concentrate on achieving high levels of coverage through long-term, impactful relationships before moving to new geographical areas.

Objectives and Scope of the Audit

The objective of the audit is for the auditors to conduct audit reviews as follows:

1.     The auditors shall express an independent professional opinion as to whether the financial statements present fairly, in all material respects, the financial position of Living Water International Zambia in accordance with the International Financial Reporting Standards (IFRS).

2.     The audit shall be carried out in accordance with the International Standards on Auditing (ISAs) as issued by the International Federation of Accountants (IFAC).

3.     Letter of Recommendations (formerly management letter)-The Auditors should submit a letter of recommendations after the completion of the audit, in which the auditors will:

a)     Identify specific deficiencies or areas of weakness in systems and controls, and make recommendations for their improvement.

b)     Examine on a test basis the appropriateness of supporting documents, records, and books of accounts relating to all project activities.

c)     Include management responses to audit findings and recommendations.

d)     Any matters that come to the auditor’s attention during the audit that might have a significant impact on the implementation of the programme.

e)     Examine, assess, and report on compliance with the terms and conditions of the agreement between funding partners and LIVING WATER INTERNATIONAL ZAMBIA and applicable laws and regulations within accounting and taxes.

f)      The auditor shall report the identified amount in case there are any missing supporting documents.

g)     Any matters that come to the auditor’s attention during the audit that might have a significant impact on the implementation of the programme.

Responsibility for the preparation of Financial Statements

The responsibility for the preparation of the annual financial statements lies with the LIVING WATER INTERNATIONAL ZAMBIA directors and management.

1.     Directors will prepare the annual financial statements on an accrual basis and in accordance with International Financial Reporting Standards (IFRSs).

2.     Management is responsible for the implementation of accounting, administrative, and financial procedures documented in the LIVING WATER INTERNATIONAL ZAMBIA manuals.

3.     LIVING WATER INTERNATIONAL ZAMBIA financial year end runs from 1 July to 30 June.

4.     LIVING WATER INTERNATIONAL ZAMBIA reserves the right to terminate the engagement should it deem it necessary, in accordance with the Agreement.

Selection Criteria

LIVING WATER INTERNATIONAL ZAMBIA will do the adjudication after the proposal submission deadline. The selection criteria will include the following:

1.     Eligibility – authorization by the Zambia Institute of Chartered Accountants (ZICA) to conduct audits.

2.     Experience of the audit firm in relation to the scope of audits for non-profit organizations.

3.     A list of similar non-profit organizations served by the firm.

4.     Staff assignments and availability to complete the audit on a timely basis.

a)     Participation of senior audit personnel assigned to the engagement.

b)     Depth of Technical Resources (CV of the assigned team leader).

c)     Availability of staff to respond to questions within the scope of the engagement and the hourly charge, if any, for services outside the scope of the audit.

5.     Audit firm staff stability history – assurances can be provided regarding the assignment of permanent personnel to the engagement.

6.     Proposed fee for the engagement, including a schedule for additional services that may be necessary beyond the scope of the audit engagement.

7.     Detailed audit plan/methodology including the approach to risk and fraud detection.

8.     Estimated number of hours to complete the audit by classification of employees, i.e., partners, senior, junior.

The expressions of interest should be made to:

The Country Director

Living Water International

Plot # 19, Warthog Road

Kabulonga

LUSAKA

Contact numbers 0966964302 or 0978318142

Bidders are encouraged to witness the bid opening at 16:00 hrs Zambian time on the 17th June, 2025.