External Audit of USAID-Funded Projects (Consolidated Donor Audit)

**1. ORGANIZATIONAL BACKGROUND**

Gargaar Relief & Development Organization (GREDO) is a local Somali non-governmental organization based in Baidoa, Somalia but which has sub-offices and carries out humanitarian activities in the regions of South Central Somalia. GREDO is an indigenous non-profit, non-political and voluntary organization whose main objective is to reach grass-root communities affected by the prolonged conflict and recurrent cyclical natural disasters in Somalia. Established December 1992 out of a necessity and need for partnerships in relief programs and in response to the catastrophic humanitarian crises.

GREDO currently implements different projects in sectors and thematic areas of Health & Nutrition. Livelihood, Education, WASH; Resilience. Durable Solutions, Peace building, Protection and Advocacy.

To accomplish the above objectives in Somalia, the Association has established its Headquarter in Baidoa and branch offices in Mogadishu, WanleWein, Hudur, Wajid, Buurhakaba, Qoryooley, YEED, and Berdale to facilitate its program implementation upon the country. The purposes of the Branch are to enhance creation of collaborative community engagement environment, build trust with the community and facilitate the smooth running of programmatic interventions

**2. SCOPE OF WORK**

**Organization’s Objectives**

GREDO’s strategic objectives underscore the commitment to ensuring that all its programmes, services, resources, and networks are aligned with its mission to enhance sustainable development, community resilience, and humanitarian action.

**Objectives and Scope of the Audit**

GREDO seeks to engage a qualified independent external audit firm to conduct a consolidated donor audit of all USAID-funded projects implemented between 1 January 2025 and 31 December 2025.

The audit aims to provide independent assurance on the proper utilization of donor funds, compliance with USAID grant requirements, adequacy of internal controls, and the reliability of financial and operational reporting.

The objective of this assignment is to:

The selected audit firm shall:

- Express an independent opinion on whether expenditures incurred under USAID-funded projects were eligible, properly supported, and accurately recorded.
- Verify that project funds were utilized solely for approved activities and in accordance with grant agreements.
- Assess compliance with donor regulations, applicable laws, and GREDO internal policies.
- Review adequacy and effectiveness of internal controls and risk management systems.
- Identify unsupported, ineligible, irregular, duplicate, or potentially fraudulent expenditures.
- Assess procurement and vendor management compliance.
- Review sub-award and subrecipient monitoring processes where applicable.
- Evaluate financial reporting accuracy and completeness.

**3. APPLICABLE AUDIT STANDARDS**

**The audit shall be conducted in accordance with:**

- International Standards on Auditing (ISA)
- Generally Accepted Accounting Principles (GAAP), where applicable
- International Financial Reporting Standards (IFRS), where relevant
- USAID donor compliance requirements
- 2 CFR Part 200 Uniform Guidance
- Applicable Somali tax and statutory laws
- Professional ethical standards governing external auditors

**4. DELIVERABLES**

- Auditor report with consolidation of the funds
- Detailed notes of contributions of each partner and project income and expenses
- Management Letter

**5. TIMELINES**

The audit firm must provide a work plan demonstrating capacity to complete between 1st June and 30 June 2026.

**6. QUALIFICATION REQUIREMENTS FOR THE AUDIT FIRM**

The audit firm must demonstrate:

**Professional Requirements**

- Accredited to conduct USAID/BHA audits and listed on List of Acceptable Audit Firms provided by USAID
- Registered audit/accounting firm.
- Valid practicing license.
- Good standing with relevant regulatory authority.

**Experience**

- Minimum 10 years operational experience.
- Minimum 5 years auditing NGOs, humanitarian, or donor-funded projects.
- Strong experience with USAID-funded grants.
- Experience in East/Horn of Africa preferred.

**Team Competence**

- Qualified CPA/ACCA auditors.
- Lead audit partner with donor-funded audit experience.
- Risk and compliance expertise.

**7. MANDATORY DOCUMENTS FOR SUBMISSION**

**Bidders must submit:**

1. Certificate of Incorporation/Registration
2. Tax Compliance Certificate
3. Company profile
4. Practicing licenses
5. Certificate of Good Standing
6. CVs of key audit personnel
7. Evidence of similar assignments
8. References or recommendation letters
9. Technical proposal
10. Financial proposal

**Selection Criteria**

GREDO will do the evaluation after the proposal submission deadline, the selection criteria will include the following:

**I. ADMINISTRATIVE REQUIREMENTS (5 POINTS)**

**Requirement:** Submission of all mandatory requirements

**Points:** 5 Points

**Description:**

1. Copy of Certificate of Registration