INVITATION TO TENDER FOR THE PROVISION OF EXTERNAL AUDIT

Management would like to invite tenders for the provision of external audit services for Kasinthula Cane Growers Limited (KCGL) for the period of three years ending 31st March 2021 to 31st March 2023.

1.0. BACKGROUND

Kasinthula Cane Growers Ltd (KCGL) is a limited company registered in 1998 with support of local leaders in the Chikhwawa District and the Government of Malawi to alleviate poverty in T/A Katanga’s area (Chikhwawa District). The main business of KCGL is to grow sugar cane for resale to Illovo Sugar Malawi Plc. KCGL was formed by the Shire Valley Cane Growers Trust (SVCGT) after wide consultation with all the interested stakeholders in the area. SVCGT has appointed Trustees drawn from respected members of the local community and relevant specialists. KCGL is 95% owned by the SVCGT and 5% by Illovo, Nchalo Estate.

The cane estate was developed in phases from phase one to four and to date has developed four phases comprising 1435 hectares which is under cane. A total of 762 rural households drawn from villages within a radius of eight kilometers are now participants and beneficiaries of the scheme.

It is against this background that KCGL is seeking to engage an external auditor to audit its financial statements in order to meet both regulatory and the financial requirements. The audit engagement will initially be for a three year term and subject to extension depending on performance assessment. The first assignment will be audit of financial statements for the year ending 31st March 2021.

2.0 APPOINTMENT

The external auditors of KCGL will be appointed by KCGL ’s Board, following recommendations from Management Procurement Committee and the Finance and Audit Committee. The appointment shall initially be for three years and in addition, at the end of each financial year, KCGL will carry out a review of the audit in terms of quality, cost and independence.

3.0 ROLE AND RESPONSIBILITIES OF EXTERNAL AUDITORS
3.1 The external auditor will be responsible for forming an independent opinion on the financial statements and the financial position of Kasinthula Cane Growers Limited and its cash flows in accordance with International Financial Reporting Standards and in the manner required by the Companies Act.
3.2 The external auditor shall have direct access, as necessary, to the General Manager and Board Chairperson for KCGL.
3.3 The External Auditor may report on external audit progress to General Manager of KCGL and Board Chairperson including attendance of Board meetings to provide updates where appropriate.
3.4 Provision of advice to KCGL’s Board of Directors on technical accounting and financial matters including corporation tax matters.

4.0 LIAISON AND REPORTING
4.1 The main contact within KCGL will be the Finance Manager through whom all arrangements will be made for the conduct of the audit and with whom issues arising from the audit will be cleared. The external auditors will have a right of access to the General Manager for any further information and assistance.
4.2 A draft version of the accounts must be forwarded to the General Manager within 30 days of commencement of the work. The financial statements and management letter will be presented to the Board for approval.
4.3 The external auditors will be required to provide a Management Letter. In addition to any other comments, the Management Letter should make specific comments on:

a)
The effectiveness of internal control system throughout the year, including control procedures to ensure adherence to the framework for financial regulation;
b) Significant weaknesses in internal control and possible improvements to the control environment.
c) Specific areas the external auditors believe should be studied in more detail or closely monitored in order to achieve the best value for money; and
d) Progress with matters identified in previous years’ management letters.
e) The external auditors may be required to attend meetings of KCGL’s Board to which annual reports and financial statements are presented.
5.0 ACCESS TO DOCUMENTATION
5.1 The external auditors will have right of access during normal working hours to the accounting books, computerized systems, electronic records, accounts and supporting documentation of KCGL and to such information and explanations as thought necessary for the performance of their duties, including internal files and working papers.

6.0 SELECTION CRITERIA
6.1 The Board will have regard to the following criteria in the selection process:
a) The firm’s track record of audits of a similar scale.
b) The cost of the external audit service.
c) The firm must be able to demonstrate a high quality service to meet the specific needs of KCGL.
d) The firm must be able to demonstrate the efficiency, quality and integrity of the audit approach proposed, together with the quality control procedures adopted.
e) The ability of the firm to perform the work in a timely fashion.

f) The suitability of the audit approach.
7.0 DELIVERABLES
a) An audit report giving an opinion on the financial statements for the period assigned.
b) Management letter highlighting all issues requiring attention of the KCGL’s management.
8.0 SUBMISSION
8.1 The deadline for receipt of submissions is Tuesday, 26th October, 2021. Late proposals will NOT be accepted. The successful bidder will be advised in writing.
8.2 Submissions should be marked ‘Private and confidential’ and ‘External Audit Services’ and hand delivered or through email to [email protected] and copy [email protected] and addressed to:
The General Manager
Kasinthula Cane Growers Ltd
P. O. Box 138
CHIKWAWA.