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RFP 2021-052 Internal Audit Services
RFP 2021-052 Internal Audit Services
I. Objective of RFP
PATH invites certified public accounting and/or specialized professional services firms with
experience performing audits in a global context to submit proposals for internal audit services,
augmenting the services of its Internal Audit team, including but not limited to:
Financial controls audits,
Compliance audits,
Follow-up audits and validation testing, and
Special investigations.
Either wholly outsourced or under the direction of PATH’s internal audit lead, these services
primarily examine PATH offices (Country Program offices, or project offices), donor-funded
project audits and sub-contractor partner audits on a contractual basis as necessary.
In addition to conducting audits, PATH’s Internal is also seeking a thought partner to advise on
audit tools development as needed.
Firms responding to this Request for Proposal (RFP), herein after referred to as “Proposers” are
free to bid either globally or for one or more countries. The term of the contract awarded to the
successful firm(s) will be three (3) years, with the option for two additional years for a maximum
contract period of five years.
II. Summary of Deadlines
Release of Request for Proposal November 5, 2021
Confirmation of interest requested (optional) November 12, 2021
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Note that PATH reserves the right to modify this schedule as needed. All parties who submit a
confirmation of interest will be notified simultaneously by email of any changes. PATH may
amend any term or requirement of this RFP at any time before award of a contract. If PATH
materially alters or amends the RFP after submission of proposals, Proposers will be given an
opportunity to amend their proposals as directed by PATH.
Headquartered in Seattle, PATH has approximately 1,500 staff operates in more than 47
countries, with offices in 21 countries in three regions as shown in the table below:
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PATH has over 300 active programs in the countries in which it operates as at September 2021.
PATH uses Unit4 Business World, a cloud-based Enterprise Resource Planning (ERP) system to
manage its financial records and business processes across all the countries, as well as a variety
of other enterprise class cloud-based applications such as Salesforce and Tableau.
In addition to its regional geographic structure, PATH’s major divisions include EBusiness,
Finance & Operations, Essential Medicines, External Affairs, Human Resources and Legal &
Research Affairs. PATH’s global operations are supported by shared services, which include the
following key departments:
Business Development
Executive
External Affairs
Finance Planning and Analysis
Global Accounting Services
Global, Facilities, Travel and& Security
Human Resources
Legal Affairs
Office of Grants and Contracts
Procurement
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VI. PATH Audit Structure
PATH has an Internal Audit function governed by an Internal Audit Charter that prescribes the
mandate and responsibilities of the function. With staff located in Kenya and India, the function
provides internal audit assurance services to PATH offices, principally outside the US. The
function is under the broader Governance Risk and Compliance department at PATH. Audits are
conducted in accordance with the International Standards on Auditing.
Based on firm location of practice, experience and needs as determined in PATH’s audit plans,
prequalified firms will be engaged to perform specified bodies of work.
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Phase III: Performance of the Audit
Review the internal control environment, governance, internal controls around business
processes, and assess the design, implementation, and operating effectiveness of such
controls. Such processes should include Human Resource management, procurement, awards
and subawards management, payroll, accounting, and finance.
Review the financial records of the PATH country program for accuracy, completeness,
validity, and existence.
Interview the relevant management staff, review of documentation and physical verification
as applicable. A review of policies, country-specific legislations, statutory and donor-specific
requirements will also be included.
Provide periodic updates to the internal audit team on the audit progress, inclusion in the
entry and exit meetings and revision of the audit scope (if applicable) and final report
circulation
Note: PATH’s Internal Audit team prepares quarterly reporting to the Board Audit Committee.
Presentation directly to the audit committee would be requested on an engagement specific basis
from the Internal Auditor to the auditing firm.
Additional Services:
Internal Audit Team staff augmentation:
PATH may seek to augment internally performed audits with additional auditors or expertise
areas, under the specific direction of a PATH lead internal auditor
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The following are the minimum qualifications for this RFP. Proposals that do not meet these
requirements will be rejected.
A. EXECUTIVE SUMMARY
Proposer must include a high-level overview of the proposal.
B. FIRM BACKGROUND
Provide background information of your firm. This should include a brief history of firm,
affiliate businesses or organizations, ownership, areas of operation, number of employees and
years of experience in providing internal audit services.
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Provide information on your firm’s organization structure and reporting lines, including the
key management team.
D. EXPERIENCE
For each country being proposed:
Provide an overview of the firm’s experience in conducting internal audits of international,
not-for-profit organizations, especially those in the health sector. Include specific experience
in conducting internal audits and donor-funded project audits in the countries where PATH
operates per Section IV of this RFP, and any of the 47 countries where PATH operates as
indicated on the PATH website www.path.org.
Describe any services offered by your firm that sets it apart from others, or any distinctive
qualifications your firm has for providing auditing services to PATH. Please include
information related to the following:
Nature of Service
Reference examples
Size of the work
Type of industry
E. ENGAGEMENT TEAM
Provide a brief description of the client engagement team that will conduct audits and other
services and detail their roles and responsibilities on the Engagement Team. Describe their
relevant experience and years of experience conducting internal audits of organizations and
donor-funded projects. Identify the Lead Partner of the engagement and/or persons identified
as primary point of contact for the engagement. Provide details of back-up or standby team
members. Resumes may be appended to the proposal as an appendix and not included in the
12-page limitation.
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Income statement Balance sheet
Item Amount (US$ in M) Item Amount (US$ in M)
Revenue 19.5 Assets 3.9
Expenditure* 18.7 Liabilities 1.8
Fund balance 0.8 Net Assets 1.1
* The approximate number of expense transactions in the CP are 10,000.
Project Audit:
A 5-year project funded by USAID with a total budget of US$ 20M. The project expenditure
for the one year under review is US$ 5M. There are 4 sub-recipients working under the
project with a cumulative expenditure of US$ 2M for the one year under review. The project
has approximately 290 expense transactions.
For each of the above scenarios, provide the following information on your firm’s risk
assessment and methodology:
1) Provide a representative audit plan and corresponding budget based on similar audits
conducted by your firm
2) Describe the audit system to be used by the firm (if any) in conducting the internal
audits, and how the audit programs will be tailored to meet PATH’s requirements.
3) Provide details on the method of documenting the audit work, including details on
where the audit working papers will be maintained and your firm’s policy on the period
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of maintaining audit working papers. Also indicate whether there are any circumstances
where the documentation will not be shared with PATH upon request.
4) Describe how the firm will maintain quality of the audit work conducted.
5) Provide details of information to be included in the audit reports for internal audit
work completed, for both country program and donor-specific internal audits.
6) Describe your process for working with PATH’s internal audit team on assignment(s),
including any support you might need for audit success, economy and efficiency from the
internal audit team in performing the work
7) Provide details on how your firm will familiarize with PATH’s internal controls and
processes, highlighting how this will lead to an efficient audit process
G. SAMPLE DOCUMENTS
H. LOCATION OF FIRM
Specify whether the firm has physical offices in any of the countries proposed. Where the
Proposer has no offices, provide details of how the internal audit work will be done.
I. LOCATION OF AUDIT(S)
List the country or countries for which the firm is proposing to conduct internal audits. Give
reference to countries where PATH has offices (see Section III) or where PATH operates.
Include expertise and experience the firm has in country-specific legislations, statutory
requirements, local laws and specific donors in the countries identified, that would be
relevant to conducting the internal audits. Specify whether the firm has physical offices in
any of the countries proposed. Where the Proposer has no offices, provide details of how the
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internal audit work will be done. The narrative should be no more than one (1) page per
country.
J. LANGUAGES
Provide a list of languages the firm is fluent in. Please note that all documents relating to the
audit assignments should be available in English, including the audit reports.
K. TIMELINE
Provide a representative timeline/schedule for the duration of the engagement to conduct
internal audit services for 1) a country program (for one financial year) and 2) a donor-
funded project audit (for one year) for similar work you may have performed. Include the
expected number of days for each phase identified in Section VII: Scope of Work. Where the
Proposer bids for multiple countries, specify whether the assignments will be conducted
concurrently, or if not, the duration of time between the two assignments.
L. FIRM’S MEMBERSHIP
Provide information about your firm’s membership to professional organizations, such as the
Institute of Internal Auditors (IIA), Institute of Chartered Certified Accountants, Certified
Public Accountants.
X. Financial Proposal
Specific engagements will be awarded based on the financial terms accepted through this
proposal process and as subject to any best and final offer. Each body of work will be agreed to
through specific engagement letter or task order, with final scope of work to be determined by
PATH Internal Audit.
Proposal must include the following:
Hourly rate by staff level
Proposed annual rate % increase maximum
Estimated budget for the hypothetical scenario described in F and as described below.
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Percent participation in total level of effort for each member of the Engagement Team.
Hourly rates for each member of the Engagement Team presented in US$ and clearly
indicate the relevant taxes (including withholding taxes).
Estimated total level of effort and associated costs.
Using the Excel spreadsheet template titled “2021-052 - Internal Audit Bid Template”, detail
the costs for both the hypothetical Country Program and the Project Audit commensurate with
your approach described in Section F. There is one worksheet each within the template (as well
as a worksheet to itemize the rates for all proposed staff levels, describe ODCs and maximum
% increase to hourly rates proposed). The costs should be presented in United States Dollars
(US$), clearly indicating the relevant taxes (including withholding taxes).
The proposal should clearly state all assumptions made in estimating the audit fees. Itemize all
costs, e.g., agency costs, agency fees, sub-contracted resources, administrative costs, supplies,
tax, other direct costs, etc. and provide a detailed breakdown of major cost components.
Interviews
PATH reserves the right to invite any or all the Proposers for interviews during the evaluation
process. The interview(s) will facilitate PATH’s further assessment of the Proposer’s ability to
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perform the work or any other evaluation criteria. The Partner and Key staff proposed as part of
the Engagement Team must be available for the interview/presentation.
After awarding the contract by PATH, the successful firm will be expected to submit a proposed
contract for the services described in this RFP. Any final contract will be reviewed by PATH’s
legal counsel and be in compliance with pertinent laws before it is signed.
PATH will not expressly or implicitly enter into a contract or agreement with a selected Proposer
until acceptable contractual terms are met. The successful firm must draw up a contract with
PATH in order to be awarded the contract. In case of failure to reach a mutual agreement on
contract terms, PATH will initiate negotiations with another Proposer.
Imelda Aura
Internal Audit Lead
ACS Plaza, 4th Floor | Lenana Road
Nairobi, Kenya
Email: iaura@path.org
Ben Aliwa
Director, Governance Risk & Compliance
ACS Plaza, 4th Floor | Lenana Road
Nairobi, Kenya
Email: baliwa@path.org
Procurement Contact:
Teresa Gingras
Global Procurement Officer
Seattle, Washington
Email: tgingras@path.org
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B. CONFIRMATION OF INTEREST (OPTIONAL)
Please send a statement acknowledging receipt of this solicitation and your intent to respond
or not respond no later than November 12, 2021. Send the confirmation to the contacts listed
above.
C. FACT-FINDING QUESTIONS
Questions on this solicitation will be accepted via email to the contacts listed above through
November 15, 2021. Please note that responses will not be confidential except in cases where
proprietary information is involved. Inquiries after this date cannot be accommodated.
E. SELECTION OF SHORT-LIST
PATH reserves the right to select a short list from the bids received. PATH has the option to
interview and discuss specific details with those candidates who are on the short-list.
F. CONCLUSION OF PROCESS
Applicants will be notified of PATH’s decision by December 31, 2021. Final award is
subject to the terms and conditions included in this solicitation, as well as successful final
negotiations of all applicable terms and conditions affecting this work.
B. CONFIDENTIALITY
All information provided by PATH as part of this solicitation must be treated as confidential.
In the event that any information is inappropriately released, PATH will seek appropriate
remedies as allowed. Proposals, discussions, and all information received in response to this
solicitation will be held as strictly confidential, except as otherwise noted.
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Suppliers bidding on PATH business must disclose, to the procurement contact listed in the
RFP, any actual or potential conflicts of interest. Conflicts of interest could be present if
there is a personal relationship with a PATH staff member that constitutes a significant
financial interest, board memberships, other employment, and ownership or rights in
intellectual property that may be in conflict with the supplier’s obligations to PATH.
Suppliers and PATH are protected when actual or perceived conflicts of interest are
disclosed. When necessary, PATH will create a management plan that provides mitigation of
potential risks presented by the disclosed conflict of interest.
D. COMMUNICATION
All communications regarding this solicitation shall be directed to appropriate parties at
PATH indicated in Section XII. Contacting third parties involved in the project, the review
panel, or any other party may be considered a conflict of interest and could result in
disqualification of the proposal.
E. ACCEPTANCE
Acceptance of a proposal does not imply acceptance of its terms and conditions. PATH
reserves the option to negotiate on the final terms and conditions. We additionally reserve the
right to negotiate the substance of the finalists’ proposals, as well as the option of accepting
partial components of a proposal if appropriate. PATH reserves the right to award the
contract, in whole or in part, to one or more firms.
G. THIRD-PARTY LIMITATIONS
PATH does not represent, warrant, or act as an agent for any third party as a result of this
solicitation. This solicitation does not authorize any third party to bind or commit PATH in
any way without our express written consent.
H. PROPOSAL VALIDITY
Proposals submitted under this request shall be valid for 120 days from the date the proposal
is due. The validity period shall be stated in the proposal submitted to PATH.
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