Introduction and Background

1.1    We are writing on behalf of our client, EGERTON UNIVERSITY RETIREMENT BENEFIT SCHEME (Defined Contribution) Scheme (hereinafter referred to as the Scheme), We accordingly, on behalf of the Trustees of the Scheme, invite you to submit a proposal for the provision of audit services to the Scheme.  Below is information you may find useful in the preparation of your quotation.

1.2    Egerton University Retirement Benefit Scheme was established on 1^st July, 1966 and the financial year runs from 1^st July to 30^th June of every year. The key Information concerning the Scheme is as follows: -

Scope of the Audit Services

2.1    The scope of the appointment encompasses the audit services provided to a retirement benefits scheme and shall include but are not limited to inter alia:

2.2     The Auditors would be expected to: -

• Confirm that proper books of accounts are kept by the Scheme.

• Confirm that the statement of Net Assets and Statement of changes in Net Assets prepared by the Scheme at the end of the financial year are in agreement with the supporting books of account.

• Confirm that the financial statements prepared by the Scheme comply in all material aspects with International Financial Reporting Standards and the Retirement Benefits Act and are in line with best practices.

• Carry out the audit in accordance with International Standards of Auditing (ISA)

• Carry out the audit in such a manner as to have reasonable chances of detecting malpractices and irregularities where they exist and report same to the Board of Management.

• Identify and report internal control weaknesses where they exist.

• Identify and report to Board of Management areas that require improvement for effectiveness and efficiency and in this regard, to issue a detailed management letter that addresses financial, internal control and governance issue within the operations of the Scheme and present the same to the Board of Trustees.

• Express an opinion on the accounts and report the same to Board of Trustees.

• Interact regularly and freely with the Scheme’s internal auditors and report their findings to the Committee at the end of the final audit or as necessary.

• Offer advice to the client informally in fields within their purview in the course of their audit including tax guidance.

• Use qualified staff and have minimum staff changes during the contract period.

• Present an audit report of the scheme financial statements to the members at the Annual General Meeting

• Maintain strict confidentiality.

2.3     The Auditors would be on standby during the audit period for consultation as necessary.

2.4    The Audit engagement is for three years from 1^st July 2020 subject to confirmation by mutual consent at the start of each audit year.

2.5    The auditor shall indemnify the Scheme for any loss or damage that the Scheme may suffer as a direct or indirect result of dishonesty or gross negligence on the part of the auditor or any person engaged in carrying out audit duties in terms hereof.

Evaluation criteria

3.1    In enabling the Trustees to make a decision on which firm to appoint to provide audit services, we request that you provide the information as set out below. This information will be used to assess the suitability of your firm in providing the requested audit services:

Mandatory Requirements

• Registration certificate
• Tax compliance certificate
• Registration Certificate by Institute of Certified Public Accountants of Kenya (ICPAK)
• Practicing Certificate
• Serialization of all the pages of the proposal

Technical Requirements

• Over ten years of experience in accountancy and audit services

• Information of how many retirement benefit schemes of similar fund value your firm provides audit services to summarized in the format of the table shown below

• At least two 3 staff members who are qualified Certified Public Accountants (CPA K) with at least five years of experience (please provide CV’s of the staff members and copies of their certificates)
• Professional indemnity cover of at least Ksh.10 million;

FINANCIAL REQUIREMENTS

• Proposed fee for this audit assignment. Please note that your quotation should be inclusive of VAT and any other related costs.
• Duly filled confidential business questionnaire and declaration form (Appendix 1)

Please note that failure to provide the information requested may result in disqualification/rejection of a proposal.

We would be grateful if you would confirm receipt of this Request for Proposal via email and advise whether you will be forwarding your proposal.

We therefore request that you submit your proposal within fourteen (14) days but not later than 10 am on 9^th March 2021 to;  

Trust Secretary Egerton University Retirement Benefit Scheme.

P.O BOX 536-20115 EGERTON

 The submission should be clearly marked

“Attention: Proposal for the Provision of Audit Services “