Terms of Reference (TOR)

Procurement of External Audit Services

1. Background

WaterAid is an international non-governmental organization dedicated to improving access to safe water, sanitation and hygiene (WASH) for the world’s poorest and most marginalised communities. Founded in 1981, WaterAid works in multiple countries through partnerships with governments, communities, and local organizations to deliver sustainable WASH solutions and influence policy, with the overarching goal of ensuring everyone, everywhere has access to these essential services.

In line with statutory requirements, donor regulations, and good governance practices, WaterAid Rwanda seeks to engage a qualified and independent external audit firm to conduct its annual financial audit.

2. Objective of the Assignment

The objective of this assignment is to provide an independent professional opinion on whether the organization’s financial statements present fairly, in all material respects, its financial position and results of operations in accordance with the applicable accounting framework and donor requirements.

The audit will also provide assurance over the management and use of funds implemented through partner organizations, including verification at partner level.

3. Scope of Work

The external auditor shall perform the following tasks:

3.1 Financial Audit

Conduct an audit of the organization’s annual financial statements in accordance with:

• International Standards on Auditing (ISA) or other applicable auditing standards
• Applicable accounting standards (e.g. IFRS, and local Standards, as applicable)
• Express an audit opinion on the financial statements.

3.2 Implementing Partner Review

Perform audit procedures related to implementing partners receiving funds from the organization, including:

• Review of partner financial records related to the organization-funded activities
• Verification of expenditures, supporting documentation, and compliance with partnership agreements
• On-site visits to selected implementing partners, based on a risk-based and materiality
  approach
• Assessment of partners’ internal controls relevant to financial management and project
  implementation. 

Confirm that funds transferred to implementing partners have been used for their intended purposes and in compliance with donor and organizational requirements.

3.3 Donor and Compliance Review

• Review compliance with key donor agreements, including provisions related to sub-granting and partner oversight.
• Verify the appropriate use of restricted and unrestricted funds.
• Assess compliance with applicable laws, regulations, and internal policies.

3.4 Internal Controls

• Review and assess the adequacy and effectiveness of internal financial control systems at both organizational and partner levels.
• Identify significant control weaknesses and financial risks.

3.5 Reporting

Issue the following reports:

• Independent Audit Report
• Audited financial statements
• Management Letter outlining findings, risks, and practical recommendations
• Donor-specific audit reports, where applicable

Present key audit findings to senior management and/or the Board/Audit Committee, if requested.

4. Audit Period

The audit will cover the financial year ending 31st March 2026 including comparative figures for the prior year where applicable.

5. Deliverables

• Signed Independent Audit Report
• Final audited financial statements
• Management Letter
• All final deliverables to be submitted by 30th May 2026.

6. Duration of the Assignment

The initial engagement will be for one year, with the possibility of renewal for up to 3 additional years, subject to satisfactory performance and funding availability.

7. Audit Firm Qualifications

The audit firm must meet the following minimum requirements:

• Legally registered and licensed audit firm to provide audit services in Rwanda 
• Member of a recognized professional accounting body
• Minimum 10 years of experience conducting audits for NGOs/INGOs
• Demonstrated experience with donor-funded projects
• Proven experience auditing implementing partners, sub-grantees, or field-level operations
• No conflict of interest with the organization

8. Audit Team Requirements

• Engagement Partner with relevant professional qualification (CPA, ACCA, CA, or equivalent)
• Audit team members with NGO and donor audit experience
• Continuity of key audit personnel throughout the assignment

9. Confidentiality

The auditor shall treat all information obtained during the assignment as confidential and shall not disclose such information without prior written consent from the organization.

10. Proposal Submission Requirements

Interested firms should submit:

Technical Proposal

• Understanding of the TOR
• Proposed audit methodology and approach
• Team composition and CVs
• Relevant experience and references

Financial Proposal

• Audit fees (including applicable taxes)
• Any additional or incidental costs
• Proposed terms of payment

Supporting Documents

• Company profile
• Legal registration and licensing documents
• Recommendation letters or certificates of service.

11. Evaluation Criteria

Proposals will be evaluated based on:

• Technical quality and audit approach
• Relevant experience with INGOs and donor-funded programs
• Qualifications and experience of proposed audit team
• Cost-effectiveness, breakdown with clear details
• References and past performance

12. Submission Details

Proposals should be submitted to WARwanda@wateraid.org

no later than 31st March 2026. Late submissions will not be considered.

13. Disclaimer

WaterAid Rwanda will contact only shortlisted applicants for further negotiation; If not required, only the selected candidate will be notified.