Scope of Work:

External Audit Services

1. Background & Context

ANECCA LTD is an NGO established in 2001, legally incorporated in Uganda since 2007. It delivers innovative RMNCAHN, paediatric/adolescent HIV, TB/HIV and TB services via donor-funded projects (PEPFAR, USAID, Global Fund, UNICEF, WHO, UNAIDS, etc.). Anecca  maintains strong internal controls, financial, procurement, HR management systems, and uses Microsoft dynamics with project tracking and disaster recovery infrastructure.

As part of our commitment to financial transparency and compliance with donor and regulatory requirements, we seek the services of an independent and qualified external auditor to conduct a financial audit for the fiscal year  – July 2024 to June 2025.

2. Audit Objectives

Evaluate and issue an independent opinion on:

• Whether financial statements present fairly, in all material respects, Anecca’ financial position and results under IFRS or IFRS, IPSAS and GAAP for SMEs (Per Companies Act and ICPAU guidance).
• Compliance with:
  • Ugandan laws (Companies Act Cap 486, NGO Act).
  • Donor agreements.
  • Anecca’s internal policies (financial, procurement, HR, risk management).
• Adequacy and effectiveness of internal controls, including fraud risk and asset safeguarding.
• Fund utilization efficiency, economy, and effectiveness inline with organizational policies and procedures.

3. Scope of Services

3.1 Financial Statement Audit

• Audit core financial statements: Statement of Financial Position, statement of Financial Performance, Cash Flow, statement in accumulated fund and accompanying Notes.
• Review accounting records, ledgers, bank reconciliations, payroll, fixed assets.
• Sample transaction testing, ensuring full audit trail and accounts integrity.

3.2 Compliance Audit

• Review donor agreements and assess adherence to conditions per grant terms and conditions
• Verify procurements against organizational policies, donor, procurement, and regulatory guidelines.
• Document and flag any non-compliance or ineligible expenditure.

3.3 Internal Control & Governance

• Perform internal control review across finance, procurement, HR, data systems.
• Confirm existence and reliability of disaster recovery, data backup, and internal audit processes (especially post-NUPAS enhancements).
• Identify systemic weaknesses, control lapses, fraud risks, and governance issues.

4. Deliverables

1. Audited Financial Statements with audit opinion.
2. Audit Report covering scope, methodology, observations, regulatory frameworks followed (ISA, ICPAU, IFRS).
3. Management Letter summarizing:
   • Internal control deficiencies.
   • Non-compliance items.
   • Fraud or risk concerns.
   • Recommendations with risk ranking and management responses.
4. Project Audit Addenda for selected projects, noting efficiency, compliance, fund use.
5. Exit Presentation to Board/Audit & Finance Committee, summarizing findings and next steps.

5. Timeline

• Planning & Documentation Review: Weeks 1–2
• Fieldwork & Testing: Weeks 3
• Draft Reports: By Week 8
• Management Response & Finalization: Weeks 9–10
• Exit Presentation: By Week 11

6. Auditor Qualifications

• Firm registered with ICPAU with valid practicing certificate.
• Over 10 years’ experience auditing NGOs and international donor-funded projects.
• Knowledge of Uganda NGO Act, donor compliance frameworks, IFRS/ISA.
• Audit team with at least one lead partner and two qualified auditors, all with NGO/donor audit experience and no disciplinary issues
• Familiarity with Microsoft dynamics accounting soft ware and cloud accounting systems.

7. Reporting Lines

Audit firm reports directly to:

• ANECCA Board of Directors
• Finance & Audit Committee
• Executive Director

8. Confidentiality & Standards

• Maintain confidentiality; only share externally with written consent or by law.
• Execute engagement per ISA, ICPAU, and applicable Ugandan laws

9. Fee & Payment

Fees to be quoted inclusive of professional costs, travel in Kampala and any out-of-pocket expenses. Payment terms aligned with deliverable acceptance. All documents are stored at ANECCA HQ Office in Kampala

10. Acceptance

Signed by authorized representatives of Anecca and audit firm, confirming acceptance of scope, timeline, deliverables and fees.