LENEPWHA
FINANCIAL AUDIT
SCOPE OF WORK (SOW)
Background
The Lesotho Network of People Living with HIV and AIDS (LENEPWHA) is an umbrella body of community-based organizations of People Living with HIV in Lesotho.
LENEPWHA’s focus areas include HIV prevention, advocacy, and impact mitigation, targeting People Living with HIV both as beneficiaries and as peer service providers.
LENEPWHA is sub-granted by the AIDS Health Care Foundation (AHF), BAYLOR Lesotho, and EGPAF, through funding from USAID and CDC.
The organization attaches great importance to effective utilization of its resources and conducts annual financial audits to guide the overall management of resources.
LENEPWHA therefore invites proposals from External Auditors and Auditing Firms listed in the register of the Lesotho Institute of Accountants (LIA) to undertake the financial audit for FY2024 (January–December).
Grant funds to be audited for all projects total LSL 52,227,030 (Fifty-two million, two hundred twenty-seven thousand and thirty maloti).
Scope of Work
1. Financial Statement Audit
- Review the organization’s financial statements.
- Ensure the financial statements are prepared in accordance with applicable accounting standards and accurately reflect the organization’s financial position and performance.
2. Audit Planning and Risk Assessment
- Conduct risk assessment procedures to identify potential material misstatements.
- Develop an audit plan based on assessed risks, determining the nature, timing, and extent of audit procedures.
3. Testing Internal Controls
- Evaluate the design and effectiveness of internal controls over financial reporting.
- Perform tests of controls to assess their effectiveness in preventing or detecting material misstatements.
4. Substantive Testing
- Conduct substantive procedures, including analytical procedures and detailed testing of account balances, transactions, and disclosures.
- Gather sufficient and appropriate audit evidence to support conclusions regarding the fairness of the financial statements.
5. Communication with Management and Governance Bodies
- Communicate with management to obtain explanations regarding financial transactions and accounting practices.
- Report identified deficiencies in internal controls to management and the Board of Directors.
6. Fraud Detection and Prevention
- Assess the risk of fraud and design audit procedures to detect and deter fraudulent activities.
- Investigate any indications of fraud or irregularities discovered during the audit.
7. Compliance Audit
- Evaluate compliance with applicable laws, regulations, and contractual agreements.
- Assess timeliness in addressing previous audit findings.
- Report any non-compliance issues to management and the Board of Directors.
8. Audit Reporting
- Issue an audit report providing an opinion on the fairness of the financial statements and compliance with accounting standards.
- Disclose significant audit findings, including material weaknesses in internal controls and non-compliance instances.
9. Follow-up Procedures
- Address outstanding matters or unresolved issues from the audit process.
- Provide recommendations for improving internal controls and financial reporting.
Deliverables
- Final Audit Report with management letter.
- Summary of key findings and recommendations.
- Presentation of audit results to the Board of Directors.
Timeline
- The audit is expected to commence on or before January 2026.
- The final report must be submitted no later than mid-March 2026.
Auditor Requirements
The selected firm must:
- Be registered and licensed to practice in Lesotho for a minimum of 10 years.
- Have at least 10 years of experience auditing non-profit organizations and donor-funded projects.
- Demonstrate sound knowledge of international accounting and auditing standards.
Required for Submission
- Cost statement detailing all costs involved in the assignment.
- Company profile with a list of previous related assignments completed with reputable organizations.
- Valid Tax Clearance Certificate.
- Technical proposal detailing background, scope, methodology, review approach, experience and qualifications of lead auditors, and proposed action plan.
- Proof of registration.
Deadline for Submission of Applications
All tenders must be addressed to:
The Finance and Administration Manager
Lesotho Network of People Living with HIV and AIDS (LENEPWHA)
Email: [email protected]
Submission Deadline: 21st November 2025 at 12:00 noon
Note: All documents must be submitted in PDF format.