RhoPa Group Incorporated Limited

PROVISION OF CONSULTANCY SERVICE OF OUTSOURCED

INTERNAL AUDIT SERVICES AT SAVE THE CHILDREN (SC)

TECHNICAL PROPOSAL

Submitted by:

Dr. Aniceth Kato Mpanju

P.O.Box 65237, Dar es Salaam
Telephone: +255-767-278040/ +316-16626004
Email: anmpanju@hotmail.com

March, 2024

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TABLE OF CONTENTS
TECHNICAL PROPOSAL TRANSMITTAL LETTER...........................................................iii
1 INTRODUCTION......................................................................................................................1
1.1 An Overview...........................................................................................................................1
1.2 Our Company Profile.............................................................................................................1
2 OUR UNDERSTANDING OF YOUR REQUIREMENTS....................................................3
2.1 Objectives and deliverables...................................................................................................3
2.1.1 Objectives..............................................................................................................................3
2.1.2 Outputs and Delivarables...................................................................................................3
2.2 Scope of Services.....................................................................................................................4
2.3 About Save the Children........................................................................................................5
2.4 Approach and Methodology.................................................................................................5
2.4.1 The Audit Approach...........................................................................................................5
2.4.1.1 Audit Planning..................................................................................................................6
2.4.1.2 Risk Assessment................................................................................................................6
2.4.1.3 Control Environment.......................................................................................................6
2.4.1.4 Substantive Procedures....................................................................................................7
2.4.1.5 Audit Sampling.................................................................................................................7
2.4.1.6 Preparation of Audit Report and Review.....................................................................8
2.4.1.7 Technological Advantages..............................................................................................8
2.4.1.6 Work Paper Retention......................................................................................................9
2.4.2 Work Plan.............................................................................................................................9
2.4.3 The Engagement Team......................................................................................................12

TECHNICAL PROPOSAL TRANSMITTAL LETTER

March 12, 2024
Save the Children
P.O.Box 10414, Plot 257, Kiko Avenue,

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Mikochen A, Mwai Kibaki Road,
Dar es Salaam.

Dear Sir/Madam,

The partners and staff of RhoPa Group Inc., are pleased to present our proposal to
provide professional services to Save the Children. Our Firm has experienced
continuous growth and success as we meet and exceed client expectations. Our overall
goal is to provide responsive, innovative services of the highest quality to our clients.

We understand we add value to the audit by providing specialized resources and

technical proficiency. Our expertise in governmental auditing and accounting combined
with our vast access to resources empowers us to solve challenges encountered during
the audit. Our highly trained engagement team will maintain a knowledgeable, yet,
non-intrusive, approach to the audit, and in this way, deliver an audit of exceptional
quality requiring few disruptions in the conduct of Save the Children’s on-going
operations.

I can attest that our firm is a legal entity in the United Republic of Tanzania and has
performed continuous CPA services for over twenty years. We are members in good
standing of both the National Board of Accountants and Auditors (NBAA) and the
Association of Chartered Certified Accountants (ACCA).

As a Group Director listed on this proposal, I am authorized to make representations

for and to bind our firm. Should you have any questions, I encourage you to contact me
via telephone at (+255) 767278040 or email at aniceth.mpanju@rhopa.com.

I am confident that our proposal addresses your needs and look forward to discussing
and reviewing its content with you. We would welcome this opportunity to
differentiate our Firm from our competition and further discuss our approach in
providing quality service. This proposal is a firm and irrevocable offer for a period of 60
days.

Yours sincerely,

Dr. Aniceth K. Mpanju

Group Director.

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1 INTRODUCTION
1.1 An Overview
Save the Children International Tanzania (SC) stated in its Request for Proposals
(RFP) that this project is to “conduct internal audits of its internal controls, processes,
and systems, in accordance with the International Standards for the Professional Practice
of Internal Auditing promulgated by the Institute of Internal Auditors. The services will be
carried over an initial period of one year – during which time two audits will be carried out
and reported upon. However, this may be extended by mutual consent of both parties”. We
see ourselves having a competent team provide an independent assessment of
your internal controls over your financial statements and compliance matters. A
particular task here is to provide statutory audit as to respond to changing
organisational needs over an extending time period.
There are critical connections between current and projected workload and
organisational performance, and between line managers and the RhoPa Group
audit specialists in creating and sustaining its internal controls, processes, and
systems, in accordance with the International Standards for SC. These connections will
be explored to inform and guide the developing Internal Audit strategy for SC.
RhoPa Group has an established Audit Services (AS) practice with specialist
consultants providing the full range of services expected to be required to conduct
the essential assessment, and to assist SC in the broader internal audit
requirements of the project. Our proposed assignment team draws particularly on
the specific experience of key members of our East African Community (EAC)
region internal and external audit practice. The team experience extends through
from initial assessments to solution design and development, and on to
consideration of the options and requirements for successful implementation and
adoption of agreed recommendations. We will also be able to draw on experiences
from other RhoPa Group practices, for example professional expertise in the field
of Information Technology (IT) provided by RhoPa Group experts whose training,
experiences and daily work focus on this topic. In addition, there are other local
RhoPa Group professionals within Tanzania with strong internal audit experience
and understanding to provide an optimum, cost-effective blend of experiences for
this project.

1.2 Our Company Profile

RhoPa Group Incorporation Limited was founded twenty years ago and is a locally
and internationally established and respected full service accounting and auditing firm
offering audit, tax, consulting, litigation support, business valuations, and forensic
accounting services. Our commitment to our clients has enabled the firm continued
growth and success at developing and maintaining strong professional relationships.
We separate ourselves from our competition by:

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 ◊ Extensive Partner involvement on each engagement
◊ Manager and/or Partner always on site during fieldwork
◊ Consistent and experienced staff
◊ Timeliness of communications
◊ Proactive approach in addressing complex issues early in the engagement
◊ Availability to clients as a specialized resource
◊ Professionalism with understanding
Our industry specialization includes governmental, not-for-profit, for-profit, and
retirement plans. Our clients range from small organizations to organizations with over
TZS1.2 trillion in assets. As voluntary members of the public and private entities as well
as professional bodies, we have access to the latest developments in accounting,
auditing, and the various rules and regulations that affect the different industries.
Membership in these centers provides our firm with additional resources designed to
enhance our audit quality and apply best audit practices to our engagements.
Our firm consists of 10 well trained professionals; we have five (5) full time Non-
Governmental Organizations (NGOs) audit staff members, of which two (2) will be
dedicated to Save the Children should services be awarded to our firm. We have office
locations in Dar es Salaam, Arusha, Mwanza, and Mbeya. While the majority of audit
engagements are performed out of the Dar es Salaam office, our various office locations
allow us to expand our services throughout Tanzania. If awarded, work will be
performed out of our Dar es Salaam office.
Our firm undergoes a peer review every three years as established by the National
Board of Accountants and Auditors (NBAA) and Institute of Internal Auditors (IIA).
Our last peer review was completed in May 2022 and resulted in a pass rating (the
highest rating possible) on our system of quality control for accounting and auditing.
This quality control review included a review of specific government engagements. A
copy of this peer review report is included in this proposal for your review.
We have NOT had any Field Reviews, Desk Reviews or Disciplinary actions taken
against, or pending against, the Firm. We believe our unique combination of technical
expertise, combined with our philosophy of total client commitment throughout all
phases of the engagement provides our clients the highest quality service and products
available.

2 OUR UNDERSTANDING OF YOUR REQUIREMENTS

2.1 Objectives and deliverables

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2.1.1 Objectives
The SC RfP documentation provides clarity regarding the objectives of the study.
The main purpose is to align SC’s internal audits of its internal controls, processes,
and systems with the International Standards for the Professional Practice of
Internal Auditing promulgated by the Institute of Internal Auditors. However, the
RfP did not set out specific objectives.

2.1.2 Outputs and Delivarables

Throughout the work a consultant will be required to submit the output report in each
step of the work process. The expected deliverables to be submitted to Save the
Children are as follows:
1) Initial risk assessment report and a risk-based annual audit plan.
2) Internal Audit Reports highlighting noted issues and practical
recommendations.
3) Report of status of implementation of previously raised findings and
recommendations.

2.2 Scope of Services

We understand that Save the Children International Tanzania requires timely audit
services and we are committed to meeting all terms, conditions, and requirements as
addressed in the request for proposal. With our experience and expertise, we fully
understand the audit requirements, as well as your expectations. The period covered
will be for the one year with the option to extend the contract for two (2) additional
years. It is our understanding the scope of services will be the following:
 Undertake risk assessment process including Fraud risk assessment and develop
a risk-based annual internal audit plan.
 Conduct scoping of the annual audits as per the risk assessment results and align
with management.
 Agree timelines of scoped audit activities with management and follow up the
approval of the internal audit plan by the Senior Management Team (SMT).
 Undertake audit fieldwork in line with the approved annual audit plan.
 Prepare and submit an internal audit report with issues and recommendations to
SMT in line with the approved internal audit plan.
 Communicate planned audit work on a timely basis to ensure availability of key
management personnel and timely completion of audits.
 Timely communicate the work plan, including meetings to allow relevant contact
persons to schedule any such meetings and attend process discussions.
 Follow up of implementation status of open findings and recommendations and
ensure continuous improvement.

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  Communicate with the external auditors and other assurance providers when
required.

2.3 About Save the Children

Save the Children (SC) is a global leader in development and humanitarian
programming worldwide, working as the preeminent voice for children with
governments, civil society and private sector partners for over a century. In 1986,
Save the Children began its work in the United Republic of Tanzania in Pemba and
later in Unguja, focusing on maternal and newborn health interventions. Since then,
SC has expanded its programming to thirteen (13) regions in the Mainland Tanzania
(Dar es Salaam, Kigoma, Dodoma, Iringa, Morogoro, Rukwa, Songwe, Arusha,
Tanga, Mwanza, Shinyanga, Mtwara, and Lindi) as well as Zanzibar (Unguja and
Pemba) with eight (8) field offices.

Save the Children supports children with health and nutrition, child protection,
education and child rights governance programming, using a system strengthening
approach, collaborating with the Government of Tanzania and civil society
organizations, national and international NGOs. Save the Children, works to ensure
children are Surviving: No child dies from preventable causes before their fifth
birthday; Learning: All children learn from a quality basic education; and Protected:
Violence against children is no longer tolerated.

2.4 Approach and Methodology

2.4.1 The Audit Approach
Our audit process begins with the assignment of staff to the engagement. Our
engagement team has the expertise to provide a level of service desired and deserved
by your organization. Our engagements are supervised by the engagement partner and
the manager. As high-level involvement is vital to a quality audit, the partner and
manager’s time will account for approximately 30% of total hours spent on the
engagement. Our team’s approach is to be efficient yet non-intrusive.
We believe on-going communication throughout the entire audit will ensure that all
aspects of the audit are thoroughly addressed. We encourage regular communications
throughout the year, not just during fieldwork. As such, we do not anticipate any
potential audit problems to arise during our engagement.

2.4.1.1 Audit Planning

Our audit planning process includes a risk assessment of the Organization and review
of the control environment. We begin with a pre-planning meeting to ensure that
management’s expectations and our expectations are communicated prior to
commencing the audit. We will confirm our understanding of the engagement
deadlines and ensure these are met timely. In addition, we will provide a list and

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samples of schedules specifically tailored to Save the Children International Tanzania to
aid the staff in preparing schedules and providing audit documentation.

2.4.1.2 Risk Assessment

As part of our extensive planning phase, the engagement team will discuss with
management and the Save the Children International Tanzania Board issues
surrounding the applicable industry, the organization’s internal & external
environment, significant events, as well as economic, political, and social factors to
determine and document areas of risk. Once areas of risk have been identified, the next
process will be to review the control environment.

2.4.1.3 Control Environment

We will document and test the following control processes to evaluate their
effectiveness in preparing reliable financial statements:
◊ Disbursements
◊ Receipts
◊ Payroll
◊ Financial reporting
◊ Journal entry process
◊ IT and general computer controls
◊ Grant compliance and reporting.
Based on our understanding of the Organization’s risks and control environment, we
will design our substantive procedures and communicate our audit approach to
management. As part of our review and documentation of the control environment, we
may have recommendations for enhancing controls and/or efficiencies. These
recommendations will be discussed with management prior to any comments included
in a formal management letter.

2.4.1.4 Substantive Procedures

Substantive audit procedures are designed based on our risk assessment process.
Complex and high risk accounts will be identified early in the audit process and these
accounts will be assigned to the manager and/or partner for actual testing. Our
substantive audit procedures will include the following:
◊ Tests of account details
◊ Analytical procedures
◊ Use of data analysis software
◊ Unpredictability tests
◊ Review of management’s estimates

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 ◊ Review of subsequent events and contingencies.

2.4.1.5 Audit Sampling

Audit sampling provides the auditor an appropriate basis on which to conclude on an
audit area by examining evidence from a sample of a population. We utilize both
statistical and non-statistical sampling techniques as described in the AICPA’s Audit
Sampling Guide (2019), depending on the type of testing being performed. Internal
control, substantive and compliance testing samples are generally selected using non-
statistical techniques. Sample sizes are determined by risk assessment and nature of the
population. We may use statistical sampling to assist with forensic testing in areas
which have a higher risk of misstatement due to fraud.

2.4.1.6 Preparation of Audit Report and Review

Audit work-papers are reviewed throughout the audit by the manager and engagement
partner. Before we leave your offices, the file will be substantially reviewed and any
issues will be discussed and resolved. The financial statements are prepared by the
audit manager. All reports are reviewed by the engagement partner and concurring
partner. Upon approval, we will issue drafts of all reports based on a predetermined
schedule allowing adequate time for review and distribution of reports.

2.4.1.7 Technological Advantages

We utilize the latest technology, including virtual servers, smart devices and online
libraries to provide us with the most up-to-date information to better serve our clients.
First, our online client portal ShareFile gives us the capability of sending and receiving
information to and from our clients faster and more securely. As portals are encrypted
and use password protection to ensure that data can only be viewed by the appropriate
client, we are dedicated to protecting the Organization’s confidential information.
Furthermore, we streamline our audit process and organize support documents
through use of the program CaseWare Working Papers. By effectively reviewing large
volumes of data through these programs, we are able to develop a better understanding
and gain a broader view of Save the Children. These technologies enable us to increase
both the scope of our engagement and the reliability of our audit opinion more
efficiently, as a larger amount of information can be processed, analyzed and
interpreted in a short time frame.

2.4.1.6 Work Paper Retention

Audit programs, workpapers and reports will be retained for a period of seven (7) years
after the completion of the audit and made available for inspection by Save the
Children, oversight or cognizant agencies, parties designated by the governments,
auditors of entities of which Save the Children is a sub recipient of grant funds or
component unit, and additional auditors if requested by them.

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2.4.2 Work Plan
The consultant will undertake the work in an initial period of 12 months as from April
2024- December 2024; and January – March 2025 upon commencement of the study. The
table below clearly describes the timeline and deliverables of the work.

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S/N Activity April May June July Augu Sept Oct Nov Dec Jan Feb March
2024 2024 2024 2024 st 2024 2024 2024 2024 2025 2025 2025
2024

1 Undertake risk assessment process

including Fraud risk assessment
and develop a risk-based annual
internal audit plan.
2 Conduct scoping of the annual
audits as per the risk assessment
results and align with management.
3 Setting timelines of scoped audit
activities with management and
follow up the approval of the
internal audit plan by the Senior
Management Team (SMT).
4 Undertake audit fieldwork in line
with the approved annual audit
plan.
5 Communicate planned audit work
on a timely basis to ensure
availability of key management
personnel and timely completion of
audits.
6 Communicate the work plan,
including meetings to allow
relevant contact persons to schedule
any such meetings and attend
process discussions.
7 Follow up of implementation status
of open findings and
recommendations and ensure
continuous improvement.
8 Prepare and submit an internal
audit report with issues and
recommendations to SMT in line

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with the approved internal audit
plan

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2.4.3 The Engagement Team
The team assigned to perform the audit of the Save the Children is composed of highly
trained professionals with extensive experience in audit engagements. Our small,
efficient working group will maintain a knowledgeable, yet non-intrusive, approach to
the audit, and in this way, deliver an audit of exceptional quality requiring few
disruptions in the conduct of the Organization’s on-going operations. The technical
qualifications of RhoPa Group Inc., personnel selected for this audit ensures service of
the highest quality. Engagements at Save the Children, CPAs and Associates, are
conducted under the supervision of an engagement partner and manager, which
assures that quality standards are maintained and all client requirements are met.

NB: Attach CVs for each consultant

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