: Project Auditor

INTRODUCTION

Lutheran World Relief- East African Regional Office (LWR-EARO) is working with Neema and Makindu River Self Help groups to implement a 24 month-long project in Makindu District. The project, Rapid Response to Hunger and Lack of Resiliency in Eastern Kenya, was started November 25th 2009, and is scheduled to end on November 30th 2011. The main goal of this project is to bring vulnerable populations back from the brink of starvation by providing immediate access to food and water, and to avoid further expansion of the crisis by increasing resiliency and effective agricultural production in drought affected areas of Eastern Kenya. The partners, in collaboration with the LWR-EARO, are in the process of identifying a competent auditor to carry out an external audit of the project.

THE PROJECT

The Rapid Response to Hunger and Lack of Resiliency in Eastern Kenya project is a US$647,628 project whose implementation period is November 25, 2009 through November 30, 2011 and is taking place in the Kiu and Mulili locations of Makindu District, Makueni county. The project applies a multi-faceted approach, which includes a cash-for-work component, activities to boost local food and cash crop production and marketing, and an organizational strengthening component. The key objectives are as follows:

Objective 1: Immediately increase food, non-food and water accessibility for 7,500 community members (and indirectly their 37,500 household members) through the provision of cash for work on the rehabilitation of Neema and Makindu river irrigation networks

Objective 2: Increase resiliency for climate and price shocks by boosting sustainable local production and farmer income through the acquisition of needed management and technical skills and access to financial services for more than 1,000 farmers in Makindu district

Objective 3: Build the capacity of Neema and Makindu SHGs to implement effective emergency response and agricultural resiliency programming

THE PARTNERS

LWR is working with two local partners in the Makindu District: NEEMA SHG is an umbrella CBO formed by 5 Self Help Groups (SHGs) representing 5 farms using water from Makindu River to irrigate their farms. The five groups are based in Kiu Sub location, Makindu Division of Makindu District. NEEMA Self Help Group (SHG) was formed in 2006 and was registered with the department of culture and social services in April 2009 with a membership of 480. The group started with an objective of improving household incomes through irrigation farming and collective marketing. The SHG management committee is composed of a 13 members and is tasked with scheduling and rationing of water among the 5 irrigation farms that use the same water source to irrigate their farms. Makindu River SHG Makindu River Irrigation Farms Self Help Group (SHG) was formed in 2006 under the name of Mtakuja Irrigation farm. The name was changed from Mtakuja to Makindu River Irrigation Farms SHG in July 2009 when the group had to comply with new Government regulations for users of river water for irrigation to register with Water Resources Management Authority (WARMA) as a River Water Users Association. Registration with WARMA was done in July 2009. The group was established with an aim of harnessing water from Makindu River and channeling it to irrigation canals for group members to grow crops for both consumption and income generation. The group is based in Kiboko Location, Mulili sub-location of Makindu District and serves 180 members out of a total membership of 300. The group has been undertaking irrigation farming using water from Makindu River and although the river is dry, the group members have dug shallow wells along the river and use motorized water pumps to pump water to the canals.

PURPOSE AND SCOPE OF WORK

The overall output of the consultancy is an audit report expressing an independent opinion on the financial statements on audit

Specifically:

Conduct an audit of partners’ financial records in accordance with International Standards on Auditing

Plan and perform an audit to obtain reasonable assurance that the partners’ financial statements are free of material misstatements

Examine partner projects’ financial transactions and accuracy and reliability of its supporting documentation

Assess the overall presentation of partners’ financial statements and make sure they are in accordance with the approved budget

Review procedures and management and examine if these provide adequate internal control;

Determine if there has been any significant effort to address issues raised in previous audits

Provide an opinion on the audit findings

SELECTION CRITERIA

Lutheran World Relief will select the audit firm based on a combination of criteria including: evidence of proficiency in the audit of domestic non-profit organizations, fees, and required time to complete the engagement. Selected audit firm shall aim to complete the audit no later than 31st Dec 2011. Please note that only successful bidders will be notified.

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