REQUEST FOR PROPOSALS

HIRING OF A FIRM FOR REVIEW OF GOVERANCE AND SYSTEMS OF PARTNER ORGANIZATION

I.         INTRODUCTION

Pakistan Poverty Alleviation Fund (PPAF) is the lead apex institution for community-driven development in the country.  Set up by the Government of Pakistan, as an autonomous not-for-profit organization, PPAF enjoys facilitation and support from the Government of Pakistan, The World Bank, International Fund for Agricultural Development (IFAD), KfW Entwicklungs bank (Development Bank of Germany) and other statutory and corporate donors.  PPAF aims to be the catalyst for improving the quality of life, broadening the range of opportunities and socio-economic mainstreaming of the poor and disadvantaged, especially women.

The core operating units of the PPAF deliver a range of development interventions at the grassroots/community level through a network of more than 130 Partner Organizations across the country.  These include social mobilization, livelihood support, access to credit, infrastructure and energy, health, education and disaster management. Externally commissioned independent studies have demonstrated positive outcomes and impact of PPAF interventions on the lives of benefiting communities related to their economic output, household incomes, assets, agricultural productivity skills and other quality of life indices.  For a complete profile, please visit our website at http://www.ppaf.org.pk/.

II.            BACKGROUND and OBJECTIVES OF THE ASSIGNMENT

We intend to get reviewed governance and systems of one of the Partner Organizations (POs), based in Quetta, registered under section 42 of the companies’ ordinance 1984. The need for the review arose due to a series of complaints and concerns raised against the PO under a project. These complaints suggested potential lapses in governance practices and system deficiencies within the organization. The complaints encompassed various aspects, including potential irregularities in financial management, lack of transparency in decision-making processes, inadequate risk management practices, weak internal controls, and potential breaches of relevant laws and regulations.

The objectives of the assignment is to evaluate the organization's governance structure, internal controls, risk management processes to ensure transparency and adherennce to policies and procedures.

III.         SCOPE OF WORK

The scope of the review should include, but not be limited to, the following areas:

1. Governance Structure:
   1. Assess the organization's governance structure, including the roles and responsibilities of the board of directors, management, and other key stakeholders.
   2. Evaluate the composition and effectiveness of the board of directors, its committees, and subcommittees, if any.
   3. Review the organization's governance policies, charters, bylaws, and other relevant documents.
2. Internal Controls:
   1. Evaluate the adequacy and effectiveness of the organization's internal control systems, including financial controls, operational controls, and compliance controls.
   2. Assess the design and implementation of control procedures, segregation of duties, and authorization processes.
   3. Identify any control weaknesses or deficiencies and provide recommendations for improvement.
3. Policies and Procedures:
   1. Review the organization's policies and procedures across various functional areas.
   2. Assess the adequacy and effectiveness of policies and procedures in ensuring compliance with applicable laws, regulations, and industry standards.
   3. Identify any gaps or areas of improvement and provide recommendations for policy enhancements or new policy development.
4. Information Systems:
   1. Evaluate the organization's information systems, including data integrity, security, and availability.
   2. Assess the effectiveness of IT controls and their alignment with organizational objectives.
   3. Identify any vulnerabilities or risks related to information systems and provide recommendations for improvement.
5. Risk Management:
   1. Review the organization's risk management framework and processes.
   2. Evaluate the effectiveness of risk reporting and monitoring mechanisms.

Methodology: The audit firm should outline and share the methodology and approach they will follow to conduct the review, including data collection methods, interviews with key personnel, document review, and any other relevant procedures.

IV.       QUALIFICATIONS AND EXPERIENCE 

i)       Minimum 10 year overall experience in Audit.

ii)     Relevant qualification and experience of staff involved in current assignment (attach CVs of relevant staff Partner/Director and team). CA, ACCA, Masters.  

iii)   Number of similar assignments conducted by the firm in previous 5 years for Financial Institutions, Development Financial Institutions, NGO’s and Telco’s (names of clients and nature of assignments).

V.           DELIVERABLE

The deliverable of this assignment shall be a Final Report.

(a)   An initial assessment report highlighting the scope, objectives, and methodology of the review.

(b)   A comprehensive Audit / review report detailing the findings, weaknesses, and areas of improvement identified during the review.

VI.         CLIENT'S RESPONSIBILITY

        PPAF will provide coordinator and ensure availability of company concern persons, who in turn shall provide to the consultant all reasonable access in order to perform current scope

VII.      CONFIDENTIALITY

All reports shall be confidential and delivered exclusively to the designated persons of the Client and companies. No information will be revealed under any circumstances to third parties.

VIII.    BUDGET

The audit firm should provide a proposed budget for the review, including a breakdown of costs associated with personnel, travel, and any other relevant expenses.

IX.         PAYMENTS

Payments will be lump sum, based on the following deliverables:

a)         After submission of an Initial Assessment Report - 10% of the lump sum price.

b)        After submission of Draft Final Report - 30% of the lump sum price.

c)         After submission and acceptance Final Report along with PowerPoint presentation to the management of PPAF- 60% of the lump sum price.

X.          DURATION OF THE CONTRACT

Contract duration will be 30 days. Timeline: The audit firm should provide a detailed timeline outlining key milestones, activities, and estimated completion dates for each phase of the review.

 XI.       DISCLAIMER

PPAF shall not pay any compensation in any form except for the amount agreed as consultancy fee. PPAF shall not be responsible for any damages caused to the consultant by any other party during the execution of the contract. PPAF does not accept any other communication or commitment made by the consultant to any other party during the course of the contract.

The interested organizations are requested to submit their Technical and Financial Proposals (in hard form) on or before 5:00 p.m. 19th June 2023 at the following address:

Procurement Unit

Pakistan Poverty Alleviation Fund
Plot # 14, Street 12, Mauve Area, G-8/1, Islamabad

In case of any query, please contact at [email protected]