Women University, Swabi

“QUEST FOR EXCELLENCE”

REQUEST FOR PROPOSAL HIRING OF EXTERNAL AUDITOR

WOMEN UNIVERSITY, SWABI URL: wus.edu.pk

Women University Swabi

Tender No. WUS/PD/2/19

Hiring of External Auditor

Sealed proposals are invited (Single-stage two envelopes method, Technical and Financial Proposals) from

reputed firms of Chartered Accountants. A firm of Chartered Accountants will be selected as External Auditor

to conducting the University Audit for the FY 2016-2017 and 2017-2018. Detailed terms and conditions are

given in the tender documents which can be downloaded from website: www.wus.edu.pk. Tender Fee (non-

refundable) for each tender is Rs.1,000 payable through Pay Order/Bank Draft in the name of Women

University, Swabi to be provided with the proposal separately. Sealed proposals (both Technical and Financial

in separate envelopes) along with earnest money of Rs.35,000 in shape of Bank Draft ((issued from the firm’s

accounts) in the name of Women University, Swabi should reach before at 11:00 am on 25th March 2019 to the

Procurement Department, Women University Swabi. Technical proposal will be opened in the presence of firms

or their nominated representatives at 11:30 am on the same day in the Meeting Room of Women University,

Swabi.

Procurement Officer, Women University Swabi, PH: 0938-224222. Swabi

Khyber Pakhtunkhwa

SECTION 2 – THE TERMS OF REFERENCE

ABOUT THE WOMEN UNIVERSITY, SWABI:

Women University, Swabi today is a full-fledged public sector University where female students are offered

quality higher education at their doorsteps. The University offers academic programs at the levels of

undergraduate and postgraduates in Arts & Design, Urdu, Islamite, Pak Study, Political Science ,Botany,

Economics, English, Statistics, Computer Science, Sociology, Chemistry, Business Administration, Physics

,Math’s & Zoology. The syllabi have been tailored to the market needs and are designed to equip the students with

the latest developments in their field of specialization. We believe that we have the best teaching, administrative

and supporting staff and we are committed to contribute in the making of Pakistan the best it can be.

The Women University, Swabi is one of the Pakistan’s newly established universities with excellent teaching and

a growing reputation for quality education. We are rapidly becoming one of the most desirable universities in the

region. Our mission is “to educate girls and redefined the world “and our vision is to become the Pakistan’s top

university and everything we do is directed towards this goal.

The Women University, Swabi, commenced activities in November, 2015. Today it has funds flow of over four

hundred million rupees and is designed and planned to spend the funds being funded by the Government of

Khyber Pakhtunkhwa/HEC, that comprises of funding both under Annual Development Programs and the

recurrent funding. The entire funds received so far, have been spent strictly in accordance with the financial rules

to achieve objectivity of the University. The University has maintained its books of accounts on double entry

system of accounting which will be offered to the firm of Chartered Accountants.

OBJECTTIVE OF THE ASSIGNMENT:

The Women University, Swabi (WUS) intends to appoint a reputed firm of Chartered Accountants well versed in

the auditing profession for conducting audit of the accounts of the University and prepare financial statements of

the accounts for the year 2016-2017 & 2017-2018. The selected firm shall be required to conduct the audit in

accordance with the International Standards on Auditing as applicable in Pakistan. The prime objective of the

financial audit assignment is to enable the auditor to express a professional opinion on the financial statements/

position of the University at the end of each fiscal year and on the funds received and expenditure incurred for

the relevant accounting period. The aforesaid opinion should have the objectivity to ascertain whether the

financial statements at the end of the reporting period, are presented fairly all material respects in accordance

with the applicable accounting framework and to identify discrepancies if any, in the said accounting framework

and application of existing framework.

SCOPE OF WORK:

The responsibility for the preparation of financial statements including adequate disclosure is that of the

University the Audit firm shall be responsible for forming and expressing opinions on the financial statements.

The firm, once appointed shall conduct audit of the accounts of the University for the period from July to June for

the each fiscal year(s) 2016-17 and 2017-18 . The audit shall be conducted in accordance with the International

Standards on Auditing (ISAs), as promulgated by the International Federation of Accountants (IFAC) and as

adopted by the Institute of Chartered Accountants of Pakistan.

AUDIT RPEORT & MANAGEMENT LETTER

The audit firm shall issue an opinion on the University’s financial statements. The annual audit report of the

University and its projects may include a separate paragraph or may include the same in the Management Letter

to be addressed to the Vice Chancellor of the University highlighting key internal control weaknesses and non-

compliance with the financial rules or agreements executed by the University

The format of the audit report should be in accordance with the International Auditing Standards (ISA) while the

Auditor is expected to prepare a Management Letter in which the auditor may include the following:

a. Give comments and observations on accounting records, systems and controls that were examined during the course of the audit. Auditor should give clear recommendations if the system of accounting requires any improvements including installation of accounting software and matter regarding capacity building thereto.

b. Identify specific deficiencies or areas of weaknesses in systems and controls and make

recommendations for improvements;

c. Report on the degree of compliance of financial rules and give comments if any on internal and external matters affecting such compliances;

d. Communicate matters that have come to their attention during the audit which might have a significant impact on the implementation of the project;

e. Give comments on the extent to which outstanding issues/ qualification issues have been addressed;

Ideally the management letter should also include responses from the University to the issues highlighted by the Auditors. SELECTION CRITERIA:

(A) Initial Screening:

The following documents/ certificates are the pre-requisite and may be used for initial

screening. The Audit Firm will go in the next stage if it fulfills all the requirement of initial

screening which are as under:

1. The firm must be “A” ranking as per State Bank of Pakistan

2. Declaration on stamp paper regarding non-black listing / delisting

3. Satisfactory QCR Rating of ICAP

4. Taxpayer Registration Certificate

5. Partnership Registration Certificate

(B) Technical Evaluation:

The Firm cleared from initial screening will be evaluated as per following criteria:

1. Number of Partners in the firm within Pakistan

2. Number of ICAP qualified Chartered Accountants employed by the firm in Pakistan

3. Current Internal Audit Client

4. Current Internal Audit Client within Universities

5. Years of existence in Pakistan

6. Membership with Global Audit Firm

7. Number of Offices within Pakistan

Minimum score for competing in the next stage is 70 %. The Financial Proposal of only that Audit

Firm will be opened which secured 70% or more in the Technical Evaluation.

1. Number of Partners Total Marks Range of

Partners Marks

At least 8

20

8 - 15 10 16 - 25 15

26 & above 20

2. Number of ICAP Qualified Chartered Accountants Employed by Firm in Pakistan

Total Marks

Range of Qualified Chartered

Accountants Employed

Marks

At least 40

20

40 - 80 8 81 - 100 12

101 & above 20

REQUEST FOR PROPOSAL – HIRING OF EXTERNAL AUDITORS

Topi Road Swabi, Phone No.(0938) 221131.Fax No. (0938) 221138 www.wus.edu.pk 6

3. Current External Audit Clients Total Marks No. of Clients Marks

At least 5

15

5 8 6 - 10 12

11 & above 15 4. Current External Audit Clients

within Universities Total Marks No. of Clients Marks

At least 2

10

2 5 3 - 6 7

7 & above 10 5. Years of Existence in Pakistan Total Marks No. of Years Marks

At least 15

15

15 8 15 – 30 12

31 & above 15 6. Membership with Global Audit Firm

having no. of Offices Worldwide Total Marks No. of Offices Marks

At least 50

10

50 3 51 – 100 6

101 & above 10 7. Number of Offices in Pakistan Total Marks No. of Offices Marks

At least 2 10 2 6

3 & above 10

(C) Financial Evaluation:

Financial Proposals of only Technically Qualified Audit Firm will be opened. The Audit

Firm getting maximum marks on 70-30 weight age (70% for Technical and 30% for

Financial) will be selected as Auditors.

Max 20 Points:

The formula for determining the Financial Score is the following:

Sf = 100 x Fm / F

Where, Sf is the Financial Score; Fm is the Lowest Price and F the Price of the Proposal

under consideration.

The weights given to the Technical (T) and Financial Proposals (F) are:

T = 0.70 and F = 0.30

CONTRACT PERIOD:

REQUEST FOR PROPOSAL – HIRING OF EXTERNAL AUDITORS

Topi Road Swabi, Phone No.(0938) 221131.Fax No. (0938) 221138 www.wus.edu.pk 7

The duration for conducting audit of Accounts/financial statements for a single year’s accounts is

presumed as 12-15 days from the date of acceptance of proposal or issuance of formal letter from the

University. The aforesaid time can be extended upon concurrence of the University.

ACCESS TO INFORMATION:

The auditors shall have access to all the legal and financial documents, correspondences and any other

information associated with the university/projects undertaken by the University and/or deemed

necessary by the Auditors including but not limited to information to or from the Provincial Government

of Khyber Pakhtunkhwa. The audit will also obtain confirmation of amounts disbursed and outstanding

at the Bank and creditors and debtors of all sort.

DELIVERABLES:

The deliverables of the audit assignment is the Auditors report along with financial statements of the

accounts and the Management Letter to be provided as per technical proposal finalized.

PROFORMA FOR FIANCIAL PROPOSAL

1. Name of the firm: _____________________________________________

2. Address of the firm _____________________________________________

3. NTN of the firm: _____________________________________________

4. Audit Fee :- ____________________________________________

5. Out of pocket expenses if any: _____________________________________________

6. Total fee consideration per year: _____________________________________________

7. Total fee consideration for all years: _____________________________________________