BMZ KOCHOGO FINAL PROJECT AUDIT

1. Background Habitat for Humanity Kenya (HFHK) was registered in 1982 as a Non-Governmental Organization, with the goal of enabling low-income families access decent and affordable shelter. In the last 40 years, HFHK has supported more than 56,000 families across 9 counties in Kenya through housing micro-finance and direct construction. Habitat for Humanity considers housing as a long-term, incremental process which builds on cross-sectorial interventions such as construction, water, sanitation, energy, land tenure, and policy change at different levels of governance, actors and regions. Our Business Plan (2020-2025) has outlined four Programmatic Areas namely: Financing for owner-led construction; Settlement-Based Practice; Secure Land Tenure; Disaster Risk Reduction & Response (DR3). Habitat for Humanity Kenya is currently operating in Laikipia, Homabay, Kisumu, Tana River, Machakos, Kajiado and Nairobi Counties. Habitat for Humanity Kenya is currently implementing the project “Increasing the capacity of poor rural communities in Kochogo South Sub Location in effective water management for increased climate resilience” funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and Habitat for Humanity Germany. The project period is from 1 December 2021 to 30 September 2025, with a total in-country budget of 551,734.77 Euros . As part of project financial reporting, HFHK is in the process of identifying and selecting independent Auditors to conduct project financial audit. The financial audit will take place in Nairobi (HFHK Office) for a period of one month scheduled to commence on the last week of August 2025. 2. Objective of the Assignment The Chartered Accountant/Auditor shall have the following objectives in this audit assignment: Examine if the project was implemented according to the Project Agreement: inspect infrastructure built, review related documentation, and review documentation of trainings and events. The auditor is not required to make an opinion on the quality of delivery beyond his or her professional competency. They are only required to review outputs and documentation to ascertain the fact of delivery and to form a general opinion on quality and appropriateness within the limits of their ability and competence. Examine the project finances, ascertain that all provisions of the Project Agreement were followed, the funds had been used as intended, in the project timeline agreed, financial documentation complies with international accounting standards, the Project Holder has appropriate financial controls in place, the exchange rate used for reporting corresponds to standard accounting practices, and the financial reporting prepared by the Project Holder is fair and accurate. In drawing up their certificate, the recognized, independent firm of chartered accountants shall follow the numerically listed structure used in the project budget (Project Agreement, Annex III). The accountants shall explain the auditing mandate they were given and shall give an account of the documents used for the audit of proper use of funds and compliance with the terms of funding. The chartered accountants shall submit their report in English. If the difference between budgeted figures and actual figures is more than 20 per cent, this must be justified separately, unless prior authorization was obtained from HFHD and/or BMZ. The final audit certificate shall state the following (minimum requirement): We ([Name of auditing firm]) hereby certify that we have conducted an audit relating to the statement of accounts of [name of Project Holder] regarding the financing of the project “[Project title]” that took place between [project start date] and [project end date]. Our audit was carried out on the basis of the following requirements pertaining to the use of funding: [list of relevant contracts and documents]. We have looked at all the books and receipts/vouchers as well as the bank statements for the relevant period. We also visited the project area for physical inspection of the infrastructure built during the project as well as reviewed documents pertaining to construction, handover, training, events and other activities. Based on our audit, we confirm that: All income and expenditure have been properly documented by means of receipts or vouchers. [In case of any exceptions, list exceptions individually]. The expenditure documented has been made in accordance with the requirements of the project agreement and grant approval, occurred within the project timeline and are in accordance with the purpose outlined in the approved proposal and in the financial plan. Any deviations from the financial plan are explicitly explained. [In case of any exceptions, list exceptions individually]. The project income documented, which is entered in the accounts as the contribution made by the Project Holder, the target group and/or other entities in the country where the project is being implemented, is correctly rendered in the accounts, with the source being explained as required. [In case of any exceptions, list exceptions individually]. Our inspection of outputs and review of documents demonstrated that the outputs defined by the project agreement have (not) been delivered (with regard to the following aspects). [In case of non-delivery or under-delivery, list exceptions individually]. The donor's conditions specified in the project agreement have been fully met (with regard to the following aspects, including the inventorization of physical assets worth more than 410 EUR) … (Or: The donor's conditions specified in the project agreement have not been met with regard to the following aspects: … [In case of any exceptions, list exceptions individually] ) The Project Holder has sufficient controls in place to ensure appropriate use of funds. [In case of any exceptions, list exceptions individually]. Special remarks. Furthermore, the auditor’s certificate shall be structured according to the quantitative documentary proof of the statement of application of funds (appendix 1). 3. Time Frame The audit is expected to take a maximum of 30 days from the date of signing the contract/engagement letter to submission of the final report to the donor. 4. Eligible Audit Firms The Chartered Accountant /Audit firm shall provide below minimum requirements (qualifications and experience) to carry out the assignment: The Firms Profile The auditor must be completely impartial and independent from all aspects of management or financial interests in the entity being audited. The auditor should not, during the period covered by the audit nor during the undertaking of the audit, be employed by, serve as director for, or have any financial or close business relationships with any senior participant in the management of the entity. Provide the Know your Client (KYC) required document e.g. company profile, registration documents, tax compliance certificate, valid Business/Trade license, PIN certificate, VAT certificate and other statutory documents. Membership in relevant and well-regarded professional bodies e.g. Chartered Accountant, ICPAACCA or equivalent Experience in application of International Standards on Auditing (ISA) and International Financial Reporting Standards (IFRS) Valid Practicing Certificate issued by ICPAK. Provide references and evidence of previous assignment demonstrating substantial experience in auditing international NGO projects funded by donors such as BMZ, ADH etc Detailed Audit Fee to be charged, showing the breakdown and clearly indicating the applicable taxes like VAT with an audit plan specifying the audit timetable and estimated completion time. HFHK is a tax agent, hence 2% VAT and 5% Withholding tax for professional services will be applicable. 5. Evaluation Criteria HFHK will use the following to evaluate every proposal submitted. The responsive proposals will be subjected to three stages of evaluation, namely: Stage 1: Preliminary/Mandatory Requirements Evaluation, Stage 2: Technical Evaluation (Scored Technical), Stage 3: Financial evaluation. Stage 1: Preliminary/Mandatory Requirements Evaluation These are mandatory documents and MUST be attached to the technical proposal. The absence of any of these documents will lead to the firm being disqualified and will not be considered to proceed to the next stage of evaluation. Stage 2: Technical Evaluation Criteria The technical evaluation will be out of 100 with a pass mark of 70 points. Any bidder scoring 70 points and above in the technical evaluation will be considered for financial evaluation stage. Any bidder scoring below 70 Points in the Technical Evaluation will be disqualified from further evaluation. The technical % score will carry a weight of 70% in evaluation Stage 3: Financial Evaluation Stages Financial proposal score will carry a weight of 30% in evaluation The formula for determining the financial scores is the following: Sf = 100 x Fm / F, in which Sf is the financial score, Fm is the lowest price and F the price of the proposal under consideration. 6. Preparation and Submission of Proposal The proposal consists of two parts: Technical and Financial Proposal. Each part shall be placed in a separate sealed package marked with the name of the offer or and labeled “Audit Services– Technical” or “Audit Services – Financial,” as appropriate. (If desired, both sealed packages can be enclosed within a larger single package.) Both the Technical Proposal and the Financial Proposal shall contain a letter of offer signed by an authorized individual that also indicates the names and contact information for individuals authorized to negotiate on behalf of the firm. 7. Bid Opening There will not be a public bid opening Eligible and interested audit firms to submit their proposal fulfilling the requirements of this Terms of Reference (TOR) to HFH Kenya Head Office at CVS during working hours (9:00 AM to 5:00 PM) on 27th August 2025 addressed to the below:

Detailed Request for Proposal / Terms of Reference The detailed Request for Proposal (RFP) / Terms of Reference (ToR) can be downloaded through the following link: [Request for Proposals - BMZ Kochogo Final Project Audit](https://habitatforhumanityke-my.sharepoint.com/:f:/g/personal/modix_wanyanga_hfhkenya_org/EniqOuNPL7RBvQ781GUo1AUBCF5fuhivQYJQURuL1eSF_Q?e=SH4o7l) Any questions regarding this Request for Proposal should be sent to [email protected] no later than 20th August 2025. Responses will be published via the following link [VIEW RESPONSES](https://habitatforhumanityke-my.sharepoint.com/:f:/g/personal/modix_wanyanga_hfhkenya_org/EhSVxT6NpDNHg_49_edM1vsB1RXoqlNHTaqsVnONr2GbDw?e=sNKVN2) by 22nd August 2025. Eligibility Please note that the application is open to consultancy firms only. Submission Instructions Completed applications should be submitted in a sealed envelope clearly marked with the tender reference and addressed to: The National Director Habitat for Humanity Kenya CVS Plaza, 3rd Floor 197 Lenana Place, Lenana Road Nairobi, Kenya Tender Box Location: CVS Plaza, 3rd Floor Reception Telephone: +254 717 454 380 / 020 2572812 Deadline: 5:00 PM on 25th August 2025