Terms of Reference (ToR) for INSTITUTIONAL AUDIT OF KAALO AID AND DEVELOPMENT

Terms of Reference (ToR)

INSTITUTIONAL AUDIT OF KAALO AID AND DEVELOPMENT

• ABOUT KAALO

KAALO Aid and Development (KAAL)) is a non-profit, humanitarian and development organization, headquartered in Garowe, Puntland in Somalia. The organization was established in October 1991 just after the collapse of the Somali central government. KAALO is one of the humanitarians and development NGO in Somalia. The organization has been in existence for 34 years with a successful record in implementing more than 300 programs and projects in both the emergency and the development sector in 9 regions of Somalia. Considering the need and the prevailing development issues in other parts of Somalia, KAALO has expanded the geographic areas of its operation and now includes other states of Somalia. KAALO has more than 20 donors and partners, including UN agencies and international humanitarian agencies.

• ABOUT THE ASSIGNMENT

KAALO Aid and Development wishes to engage in the services of an audit firm for the purpose of auditing the programs and systems of the organization as stipulated in policies of the organization. The audit shall be carried out in accordance with international audit standards issued by IAASB1. The audit shall be carried out by an external, independent and qualified auditor (Approved Public Accountant/Authorized Public Accountant or equivalent)

• Purpose and Objectives of Assignment

The objective is to audit the annual financial report for the period January 2025 to 31st December 2025 as submitted to our policies and procedure and to express an audit opinion according to ISA on whether the financial report of “KAALO is in accordance with donor’s instruction for financial reporting as stipulated in the organizations and donor’s requirement

• Scope of the Institutionel Audit

1. The auditor should verify that the project’s financial statement has been prepared in accordance with the agreed accounting standards.
2. Verify sound financial management and accuracy of bookkeeping based on original vouchers
3. Verify that the use of funds is in accordance with the objectives and results as outlined in the project proposal.
4. verify compliance of expenses with budget items.
5. Verify that the relevant procedures have been applied following the agreement with the donor.
6. Reviewing systems and operations and appraising the adequacy of controls including their ability to detect and prevent fraud.
7. Recommending improvements to systems and procedures and providing Audit opinion.

• Audit Methodology Requirements

The audit methodology should include:

1. Planning phase — risk assessment, review of background documents, mapping systems.
2. Sampling procedures — selection based on materiality, risk, and donor requirements.
3. Data collection — document review, interviews, field visits, analytical procedures.
4. Testing and validation — compliance testing, substantive testing, and reconciliations.
5. Draft reporting — preliminary findings and discussion with KAALO management.
6. Final reporting — submission of the audit opinion and management letter.

• Timeline

The audit is expected to be completed within:

• Total duration: 20–30 working days
• Draft report: Within 10 days after fieldwork
• Final report: Within 5 days after receiving KAALO feedback
• Exact dates will be agreed upon at contract signing.

• Confidentiality and Ethical Standards

• All findings and documents reviewed must be treated confidentially.
• The audit firm must adhere to the IFAC Code of Ethics.
• Auditors shall not disclose information to third parties without KAALO’s written consent.

• REQUIRED EXPERTISE

The auditor should represent the following:

• The Auditor is a member of a national accounting or auditing body or institution, which in turn is a member of the International Federation of Accountants (IFAC).
• The Auditor is a member of a national accounting or auditing body or institution. If this organization is not a member of the international federation of accounting, the Auditor commits him/herself to undertake this Audit in accordance with the IFAC standards and ethics set out in these TOR.
• The auditor must be completely impartial and independent from all aspects of management or financial interests in the entity being audited
• Deliverables

1. An audit report with Opinion
2. Management letter.

• Submission Guidelines

Interested firms should submit:

1. Technical Proposal
2. Financial Proposal
3. Company Profile
4. Valid Registration Certificates
5. CVs of key audit personnel
6. Evidence of similar assignments
7. Tax Compliance Certificate (if applicable)

Proposals must be submitted to procurement@Kaalo.org  before 14^th of December 2025