UNDP

Request for Proposal for the Provision of Audit Services Request for proposal

Reference: “RFP/UNDPKEN/015/2010: AUDIT SERVICES’

Beneficiary countries or territories: Kenya

Published on: 17-Sep-2010

Deadline on: 07-Oct-2010 00:00 0.00

Description

Request for Proposal (RFP)

Date: 17^th September 2010

Dear Sir/Madam,

Subject: Request for Proposal for the Provision of Audit Services

1. You are kindly requested to submit a proposal for the audit of one project that is directly implemented (DIM) by the UNDP office in Kenya as per enclosed Terms of Reference (TOR).

2. To enable you to submit a proposal, attached are:

i. Instructions to Proposers Attachment I

ii. Background Information on Project Attachment II

iii. Terms of Reference (TOR) of Audit Services Attachment III

iv. General Conditions of Contract Attachment IV

v. Proposal Submission Form Attachment V

vi. Acknowledgement Letter Attachment VI

vii. Price Schedule Attachment VII

viii. Model Contract Form

for Professional Services Contract Attachment VIII

3. Your proposal should reach the following address in hardcopy and softcopy in the form of

Compact Disk (CD) no later than 7^th October, 2010 on or before 12:00h. Email copies will not be accepted or considered. The submission should be marked

and titled “RFP/UNDPKEN/015/2010: AUDIT SERVICES’

UNDP Tender Box placed at the main entrance reception of UN Complex in

Gigiri before 12 noon on Thursday, 7^th October 2010 and must be

Marked “RFP/UNDPKEN/015/2010: AUDIT SERVICES’’

And sent to the following address:

The Deputy Country Director (Operations)

UNDP, Kenya

PO Box 30218

United Nations Complex

Gigiri

If you request for additional information, we would endeavour to provide information expeditiously, but any delay in providing such information will not be considered a reason for extending the submission date of your proposal. Kindly send your enquires in writing to Margaret Mbugua (Margaret.mbugua@undp.org)

A pre-bidding conference will be held on Thursday, 23^rd September 2010 at 10:30am at the following Venue:

UNDP Conference Room

3^RD FLOOR, BLOCK Q

United Nations Complex

Nairobi

Send your full names and company name to nelson.waswa@undp.org to enable him book you in the UN COMPLEX GIGIRI for the pre-bidding conference. This should be done latest by 22^ndSeptember at 2:00PM.

4. Your firm is kindly requested to return the attached acknowledgement letter (Attachment VI) no later than 23^rd September, 2010 to indicate whether or not your firm intends to submit a proposal. Thank you.

Yours sincerely,

Thomas Ole-Kuyan

Deputy Country Director (Operations)

Attachment I

Instructions to Proposers

A. Introduction

1. You are kindly requested to submit a proposal for the audit of one project that is directly implemented (DIM) by the UNDP Office in Kenya.

Background information in respect of each DIM project to be audited is provided in Attachment II. This information is intended to serve in your assessment of the time-effort and related fees. This information shall be kept confidential by your firm and used solely in response to the present Request for Proposal.

Your proposal could form the basis for a contract between your firm and the United Nations Development Programme (UNDP).

2. Cost of the proposal

The proposer shall bear all costs associated with the preparation and submission of the proposal, the UNDP will not be responsible or liable for those costs.

B. Preparation and Contents of Proposals

Your proposal should be presented in two separate parts, technical and financial.

3. Language of the proposal

The proposals and all correspondence and documents relating to this exercise shall be written in the English language.

4. Contents of the technical proposal

The proposal shall include, but not limited to, the following information:

4. 1 Proposal submission form (Attachment V)

4. 2 Profile of the audit firm:

The proposal should include a description of the audit firm’s profile and provide the following information:

a) total number of audit professionals employed which should be distinguished by designation - audit partners, audit managers, audit seniors and audit assistants;

b) a brief description of the firm’s recruitment standards; promotion policies and continuing professional education / training policy;

c) five major audit clients that are serviced by the firm, with a brief description of the nature and extent of the audit services rendered; and

d) a description of the firm’s experience in providing audit services to international development agencies or organizations, and the nature of the audit services rendered. A specific listing and description of engagements, current or prior, in UN or UNDP funded activities, if any.

e) Concise curriculum vitae of office personnel who are assigned to handle audit engagements

4. 3 Audit approach and methodology:

The proposal should describe the audit approach and methodology that will be applied by the audit firm to meet the objectives and scope of the audit services required by UNDP. This description should be accompanied with an indication of the level of personnel who will be involved in implementing each phase of the audit approach and, as applicable, a description of the statistical sampling techniques that will be used for that purpose.

This section should demonstrate the proposal’s responsiveness to the specification by identifying the specific components proposed, addressing the requirements, as specified, point by point; and demonstrating how the proposed methodology meets or exceed the specification.

4. 4 Proposed Audit Team and Time-Effort:

The technical proposal should include a description of the proposed audit team and a breakdown by team member of the corresponding time-effort to be allocated for the services, expressed in number of working days by designation of staff performing the audit, i.e. as applicable: audit partner, audit manager, audit senior and audit assistant; and their fees per working day. This information should be presented in accordance with the following table, and should not contain any pricing or cost information.

Name of staff	Designation/ Title	No of work days


Total work days

The information in the above table is critical, the absence of which will impede our evaluation of the technical proposal and will therefore lead to disqualification of the proposal.

A concise curriculum vitae of the audit team members who are assigned to handle the audit engagement should be included in the technical proposal.

4. 5 Schedule of the audit

a) The proposal should include a conceptualisation of how the audit firm, in the absence of constraints from UNDP, would schedule the execution of the audit.

b) The timing of the audit fieldwork is expected to begin not later than 18^th October, 2010. This date is subject to final determination by UNDP in consultation with the selected firm.

5. Contents of the financial proposal

Attachment II provides background information on the nature and volume of operations of the project, which would serve in the assessment of your time-effort and related fees. The financial proposal should satisfy the following:

a) The fees proposed must be a total “fixed price” quotation indicating the overall total amount in Ksh. The total fees as quoted by your firm to UNDP for the purpose of the present RFP shall be firm and final.

b) All prices quoted must be exclusive of all taxes, since the UNDP is exempt from taxes as detailed in clause 18 of the General Conditions of Contract (Attachment IV).

c) The calculation of fees should indicate the all-inclusive cost in Ksh associated with the time-effort that is proposed in your technical proposal. The calculation of the all-inclusive cost should be presented as follows:

Designation/Tile	No. of staff	No. of work days	Daily rate	Total fees (Ksh)


Incidental expenses (OPE): [itemise expenses]
Total fees proposed

d) Any incidental out of pocket expenses (OPE) must be included in the overall “fixed price” fees submitted to UNDP.

e) No amount other than the proposed total “fixed price” fees shall be paid by UNDP for the provision of the audit services which is the subject of the present RFP.

f) The costs of preparing a proposal and of negotiating a contract are not reimbursable by UNDP.

6. Period of validity of proposals

Proposals shall remain valid for a period of one hundred and twenty (120) days from the date fixed for opening of proposals in the RFP. A proposal valid for a shorter period may be rejected by UNDP on the grounds that it is non-responsive.

7. Comprehensive and concise proposals

Proposers must provide all requisite information under this RFP and clearly and concisely respond to all points set out in this RFP. Any proposal, which does not fully and comprehensively address this RFP, may be rejected. Proposers should also limit their proposals to the requirements of this RFP. Unnecessary elaborate brochures and other presentations beyond that sufficient to constitute a complete and effective proposal are not encouraged.

8. Confidentiality

This RFP is communicated to and received by each addressee thereof on the understanding and condition that it is confidential and proprietary to UNDP, and contains privileged information. No information contained in the RFP may be copied, exhibited or furnished to others without the prior written consent of UNDP. Proposers will be bound by the contents of this paragraph whether or not they submit a proposal or respond in any other way to this RFP.

UNDP will not return proposals received. These proposals shall be kept confidential for the sole and internal consideration of UNDP.

9. Modification of request for proposal

UNDP reserves the right to modify or exclude any consideration, information or requirement contained in this RFP and to add new considerations, information or requirements at any stage of the procurement process, including negotiations with proposers, at any time before any contract is awarded for the audit services detailed in this RFP.

C. Submission of Proposals

10. Format of proposals

The technical and financial proposals in response to the present request must be delivered in 3 (three) hard copies each, clearly marked “Original Proposal” and “Copy” as appropriate. The hard copy of the technical and financial proposals shall be accompanied by an electronic copy stored on a CD. In the event of any discrepancy between different copies of the proposals, the one stamped “Original Proposal” shall govern.

11. Sealing and marking of hard copies of proposals

The proposer shall seal the hard copies proposal in one outer and two inner envelopes, as detailed below:

a) The outer envelope shall show the address as stated in paragraph 12, and marked “Proposal for Audit Services for the project 00060369/” Consolidating Gains from the Kenya National Dialogue and Reconciliation Process. ”

b) Both inner envelopes shall indicate the name and address of the proposer, and clearly marked:

§ ”Technical Proposal” and shall contain the documents with the information stipulated in paragraph 4 above, and an electronic copy of the technical proposal on diskette or CD. The technical proposal shall not contain any pricing information.

§ “Financial Proposal” and shall contain the total fixed-price quotation with the information stipulated in paragraph 5 above, and an electronic copy of the financial proposal stored on a CD.

If the two inner envelopes are not sealed and marked as per the instructions in this clause, UNDP will not assume responsibility for the proposal’s misplacement, premature opening and/or consequent disqualification of your proposal.

12. Deadline for submission of proposals

The proposals stipulated in paragraph 10 shall be delivered in a sealed envelope or package marked “Proposal for Audit Services for the Project”. Proposals should reach the following address no later than 12:00H local time Nairobi, on 7^th October, 2010.

The Deputy Country Director (Operations)

UNDP, Kenya

PO Box 30218

United Nations Complex

Gigiri

It is the exclusive responsibility of the proposers to ensure that their proposal reaches the above address before the stipulated deadline. Proposals received after the deadline will be rejected.

13. Clarifications of request for proposal

Questions on any part of this RFP should be submitted, in writing, to Margaret Mbugua. Responses will be copied to all other firms invited to submit a proposal. Questions may be sent via email at Margaret.mbugua@undp.org

D. Opening and Evaluation of Proposals

14. Opening of proposals

Opening and registration of proposals will commence at 2:00H at UNDP Office in Gigiri, Nairobi, on 7^th October, 2010 at the address stated in paragraph 12. Each proposer may send one authorized representative to attend the opening and registration of proposals.

15. Evaluation criteria

The evaluation of the successful proposal shall be based upon most responsiveness to UNDP requirements and shall not be solely restricted to the lowest fees proposed.

The evaluation of the proposals received by UNDP will be based on a combination of the substantive presentation and the competitiveness of the fees. The criteria of evaluation will comprise these elements with a total of 100 points, as detailed in paragraphs 16 and 17.

A two-stage procedure is utilised in evaluating the proposals, with the technical evaluation being completed prior to any financial proposal being opened and compared. Only proposals that achieve above the minimum of 42 threshold points on the substantive presentation shall be reviewed for price.

16. Evaluation of substantive presentation (60 points)

The potential capacity to have quality services provided to UNDP will be considered on the basis of a mix of:

§ the qualifications and competence of the personnel, and the number of working days proposed for the audit (20 points);

§ the adequacy of the audit approach and methodology to meet the audit services required (20 points);

§ the profile of your firm (10 points); and

§ the schedule of the audit engagement, assessed in terms of its responsiveness to the schedule requirements of UNDP as specified above (10 points).

17. Evaluation of competitiveness of fees (40 points)

The total amount of points for the fees component is 40.

Only proposals that achieve above the minimum of 42 points (i.e. at least 70% of the total 60 points) on the substantive presentation shall be reviewed for competitiveness of fees, in the following manner:

§ 40 points shall be allotted to the lowest total fees proposed among those invited firms which obtain the threshold points in the evaluation of the substantive presentation. All other fees proposals shall receive points in inverse proportion to the lowest total fees; e.g.

[20 Points] x [KSh. lowest total fees]/[KSh. other] = points for other proposer’s fees.

E. Contracting Arrangements

18. Award of contract

UNDP reserves the right to accept or reject any proposal received in response to this RFP and to negotiate with any of the proposers or other firms in any manner deemed to be in the best interest of UNDP.

Before the expiration date of the proposals validity, UNDP will make its best efforts to select and award the contract to the qualified proposer whose proposal, after being evaluated, is considered to be the most responsive to the needs of the organisation.

19. Signing of the contract

Any contract awarded for the services described in this RFP will be signed between the selected firm and UNDP Office in Kenya on behalf of the UNDP Office of Audit and Investigations (OAI), Regional Audit Centre for Eastern and Southern Africa (RAC- ESA). The duration of the contract shall expire upon UNDP’s acceptance as satisfactory the audit reports that are submitted by the selected audit firm.

20. Confidentiality

The selected audit firm and their staff shall hold confidential the information obtained in connection with the audit services undertaken on behalf of UNDP.

21. Ownership of audit work papers

The audit work papers and related documentation shall be the property of UNDP and shall be kept in the custody of the selected firm. The eventual transfer, disposal or destruction of the work papers will be subject to the instructions of OAI, RAC- ESA.

The audit work papers and related documentation shall be subject to submission and review by OAI RAC-ESA solely and at its discretion.

22. Payment

The payment for the audit services shall be made against billings made by the selected firm as follows:

a) 60% of the all-inclusive “fixed price” proposed by the selected firm upon the submission of the draft audit reports to RAC-ESA with copy to the UNDP Office Kenya; and

b) the remaining 40% balance shall be paid by UNDP Office in Kenya following OAI,RAC-ESA’s acceptance as satisfactory of the final audit reports submitted by the selected firm.

The payments shall be effected by the UNDP Office in Kenya following the clearance of the audit reports and certification of satisfactory completion of service, by UNDP Office of Audit and Investigations (OAI), Regional Audit Centre for Eastern and Southern Africa (RAC- ESA.

23. General conditions of contract

The contract for the provision of the audit services shall be subject to the UNDP General Conditions of Contract for Professional Services that are provided in Attachment IV.

Please note that the terms set forth in this RFP and other terms of your proposal shall be included in any contract entered into between your firm and the UNDP, should UNDP accept your proposal and, that the contract will require compliance with all statements and representations made in your proposal as to the performance of the audit services.

Attachment II

Background Information on Consolidating Gains from the Kenya National Dialogue and Reconciliation Process Project

(Atlas Award and Project ID: <00060369>)

Note: One background sheet should be prepared for each of the DIM projects to be audited

General Background

I. Duration of the project: 20^th January 2008 – 30^th September, 2010.

The selected firm will need to visit the following locations:

· Coordination and Liaison Office (CLO), Panel of Eminent African Personalities African Union, Nairobi.

· UNDP Kenya Country Office, Block Q, 3rd floor, UNON Complex, Gigiri, Nairobi

· Committee of Experts on Constitutional Review, Delta House, Westlands, Nairobi

Project budget and expenditure by category

I. KNDR Process:

Budget:

ACTIVITY	BUDGET US $
CIPEV	2,044,490
IREC	2,652,746
Total Commissions	3,352,918
PEAP	2,920,350
TOTAL BUDGET	6,052,918

(a) Commissions: IREC and CIPEV

COST SHARING - DONOR CONTRIBUTION
INPUTS	IREC	CIPEV	TOTAL	% contribution
4. Communication Costs and reports	144,641	52,371	197,012
5. Equipment and Stationary Requirements	47,457	91,796	139,253
6. Commissioners, Commission Secretariat, Experts and DSA	982,370	1,389,833	2,372,203
7. International Travel and Lease of Vehicles	51,205	39,610	90,815
8. Total 4-7	1,225,673	1,573,609	2,799,282
9. GMS 7%	85,797	110,153	195,950
TOTAL DONOR CONTRIBUTION	1,311,470	1,662,764	2,974,234	77
GRAND TOTAL (GOVERNMENT + DONOR)	1,725,438	2,127,939	3,853,377	100

(b) Panel of African Eminent Personalities (PEAP)

INPUTS	EXPENDITURE US$
1. Office Space	805,500
2. Security Arrangements	0
3. Communication Costs	103,000
4. Working Retreats and Consultations	46,154
5. Secretariat Office Equipment and Stationary Requirements	103,162
6. Expert Facilitators, Negotiators and Consultants	1,161,358
7. Lease of Vehicles and Transport Arrangements	139,500
8. Travel for Panel Members and Aides	114,804
9. Project Audit (2% of Total)	49,412
TOTAL 1 - 9	2,522,890
10. 7% General Management Support	176,602
11. GRAND TOTAL	2,699,492

II. CLO

CLO
Category/ Activity	Budget USD $		Expenditure USD $
	Year 1	Year 2	Year 1	*Year 2
Political Dialogue maintained between the Coalition partners and the Panel. 70% of budget	2,065,765	1,071,820	1,071,820	368,364
Comprehensive and coordinated monitoring and evaluation of the KNDR agreements. 20% of budget	975,549	480,445	480,445	123,080
Preservation and proper archiving of the records and documents from the KNDR process. 10% of budget	3,705,555	1,864,177	1,864,177	611,806
7% GMS	236,140	119,575	119,575	38,614
GRAND TOTAL	3,609,575	1,827,797	1,827,797	590,239

III. CoE

Support to the CoE
Category/Activity	Budget USD $	*Expenditure USD $
Experts/Researchers	329,095.00	171,865.00
Research, Drafting and Distribution	2,687,185.00	1,051,212.00
Civic Education, Stakeholder Engagement and Consensus Building	3,121,638.00	735,185.00
Information, Education & Communication	2,701,760.00	1,186,489.00
Operations	32,936.00	28,313.00
Audit	177,452.00
Total	9,050,065.00	3,173,065.00
7% GMS	633,504.00	222,115.00
GRAND TOTAL	9,683,569.00	3,395,180.00

IV. IIEC

	TOTAL
Support to the IIEC	185,406

*NB: 2010 expenditure not yet completed.

Sources of funding (CLO):

Donor	Total Contribution In USD
Donor	Total Contribution In USD
Norway	1,436,121
DFID	2,170,810
SIDA	1,485,025
Denmark	750,000
Denmark for IREC	500,000
France	156,219
European Union	152,710
USAID	1,000,000
Finland	787,233
Netherlands	400,000
Australian AID	192,080
Belgium	190,000
Qatar	50,000
CANADA	399,361
TOTAL	9,669,559

Sources of Funding (CoE)

Donor	Total Contribution In USD
Donor	Total Contribution In USD
DFID	1,535,168
SIDA	1,468,097
Norway	1,003,673
Netherlands	1,580,000
Finland	1,493,357
Denmark	1,619,940
Canada	347,000
TOTAL	9,047,235

II. Project objectives and key expected results and status of project implementation:

The Coordination and Liaison Office (CLO) was established with the overall objective of supporting and facilitating the timely and effective implementation of the Kenya National Dialogue and Reconciliation (KNDR) agreements, with the following three outputs:

1. The maintenance of political dialogue between the coalition partners and the Panel of Eminent African Personalities (PEAP);

2. The processing and analysis of the findings of a comprehensive and coordinated monitoring and evaluation system for the implementation of the KNDR agreements; and

3. The preservation for historical and lessons-learned purposes of the records and documents of the KNDR process, including the commissions, in consultation with the Kenyan authorities and in accordance with international standards and practices.

The project was expanded in June 2009 to also include support to the activities of the Committee of Experts on Constitutional Review. Funding for the zero phase of the elections assistance project were also channeled through this project.

The CLO has provided political analysis, advice, drafting support and strategy options to the members of the AU Panel of Eminent African Personalities, facilitated meetings with civil society representatives, members of the Coalition Government, donors and other stakeholders to exchange views on the implementation process and on the way forward, including discussion on the Panel’s options for action in assisting implementation of the agreements. Under the archiving component of the project, the oral history, digitisation and development of the website are underway. The CLO has also successfully sourced international experts for the Coalition Government various needs including the Committee of Experts on the Constitutional Review Process (CoE), the Truth, Justice and Reconciliation Commission (TJRC), the Police Reform Task Force and the Constitutional Dispute Resolution Court. Technical assistance has also been provided to the new commissions in terms of financial and administrative planning. The greatest support has been extended to the CoE, which has included provision of experts and researchers, publication and distribution of the harmonised and proposed drafts of the constitution, information, education and communication, civic education, stakeholder engagement and consensus building, and finally support towards civic in preparation for the referendum, which was successfully held on 4^th August, 2010 at which the proposed constitution was endorsed by an overwhelming majority of voters.

This critical support provided through the project contributes towards addressing the long term issues, including: constitutional, legal and institutional reforms; land reforms; consolidating national unity and cohesion, and addressing impunity, transparency and accountability, which are essential components of consolidating peace and stability in Kenya.

III. Project management system

The CLO project was approved with a staffing complement of 12 staff, as represented in the original organogram, including a Coordinator, a political specialist, a research officer, an IT associate, an administration manager, a procurement/logistics officer, a finance/admin officer, a logistics assistant, a finance assistant and two drivers (see attached organogram).

The above staffing complement was planned on the assumption that the CLO would fully support the Constitutional Review process and the Truth, Justice and Reconciliation (TJRC) process. While the assumption held true for the Constitutional Review Process, the agreement reached between the Ministry of Justice and Constitutional Affairs was that UNDP would be approached by the government to mobilize and manage support for the TJRC as the Commission was expected to run for longer than the expected life of the CLO (see minutes of the meeting).

Current Staffing (8)

Coordination Office

Coordinator - Amb. Nana Effah-Apenteng

Liaison Associate Officer - Neha Sangrajka

Political Office

Political Specialist - Justin Jepson

Administration, Finance and Procurement Office

Finance/Admin Officer - Salome Gathu-M’Mbogori

Finance Assistant - John-Kennedy Omondi

IT Associate - Leonard Obonyo

Driver 1 - Kenneth Kimani

Driver 2 - Michael Ngobu

Others

Archivist consultant - Karen Benedict

Archivist - Peter Claver Mazikana

Technical Consultants (48 planned) - Hans Corell and Lamin Sise (providing

legal backup to the Panel)

IV. Project monitoring and evaluation system

The Implementing Partner for this project is the United Nations Development Programme (UNDP). The CLO will be responsible for reporting and accounting for all activities as undertaken in the project and ensuring strict adherence to UNDP financial rules and regulations. A CLO coordinator, based at the CLO, will be responsible for the overall management of the office assisted by an Administration Manager. The CLO will work very closely with collaborating partners.

Project management

CLO Coordinator

The overall Project Management will rest with the CLO Coordinator, while the day-to-day administrative management lies with the Administration Manager assisted by the CLO staff. The role of the CLO Coordinator, assisted by the Administration Manager, will be the following.

1. Engagement in political dialogue with the dialogue team

2. Day-to-day management of the Office

3. Identify and obtain any support and advice required for the management, planning, and control of the Office

4. Report progress through regular updates (e.g. meetings, briefings, etc.)

5. Responsible for Project monitoring

6. Ensure subcontracts are adhered to and ensure quality control

7. Ensure the delivery of the Project’s deliverables as outlined in the Project Document (PD).

8. Engage with development partners through monthly briefings.

A Project Executive Group (PEG) will be composed of the CLO, UNDP and the Coalition Government. The Coordinator will represent the CLO, the UNDP Country Director will represent UNDP, and the two liaison officers from the Dialogue Team (one from PNU and the other from ODM) will represent the Coalition Government. The Project Executive Group (PEG) will be responsible for the overall direction and guidance for the Project in so far as financial management and procurement of goods and services is concerned. The following will be the main activities of the PEG:

1. Overall direction and guidance for the Project

2. Monitor and control progress

3. Review of each completed stage

4. Commitment of Project resources (as required)

5. Delivery of Project results and objectives

According to PRINCE2 and UNDP programming for results requirements, UNDP will designate a project manager to the project to provide the assurance functions:

1. Ensures that project plans are being developed according to standards and that quality management procedures are properly followed;

2. Ensures that project outputs definitions and activity definition including description and quality criteria have been properly recorded in the Atlas Project Management module to facilitate monitoring and reporting;

3. Ensures that the final project document meets the standard requirements based on the status of the operational modalities of the programme;

4. Ensures that PEG recommendations are followed and revisions are managed in line with the required procedures.

The African Union will provide in-kind assistance to the CLO. It will be contributing office accommodation at no cost to the CLO. Utilities (Water and electricity), cleaning and security expenses would be covered together with the CLO on a cost-sharing basis.

Dialogue Team

With the conclusion of the mediation phase, the Negotiation Team has been transformed into the Dialogue Team referred to above. As during the mediation phase, the Dialogue Team would be composed of four representatives from the PNU and four representatives from the ODM. The CLO will work closely with the Dialogue Team for the accomplishment of its assigned tasks. To facilitate regular interaction and consultation with the Dialogue Team, liaison officers from the PNU and the ODM will continue to serve as the CLO’s first points of contact. The PNU liaison officer is based in the Ministry of Justice, National Cohesion and Constitutional Affairs, while the ODM liaison officer is based in the Office of the Prime Minister.

Ministry of Justice, National Cohesion and Constitutional Affairs

The Permanent Secretary in the Ministry of Justice, National Cohesion and Constitutional Affairs is a signatory to this Project Document as in terms of government organization, MoJNCCA is the ministry of government responsible for policy guidance and strategic direction with respect to the administration of justice, constitutional reform and development, the development and consolidation of democracy, the promotion and protection of human rights and the enhancement of social justice and legal reform.

Monitoring and Evaluation

Monitoring performance and progress of activities undertaken under this Project will be done at the level of the AWP against the established performance and outcome indicators. The performance of the activities in the AWP will be tracked by reviewing the benchmarks /indicators for each activity. Monitoring of specific AWP activities will be the responsibility of the CLO. The aim will be to provide timely information about the progress, or lack thereof, in the production of the outputs and achievement of the Project’s objectives. The mechanisms that will be used to monitor the AWP will be the following:

(i) Quarterly progress report, a technical and financial report prepared by CLO. The format of the report shall follow UNDP standards,

(ii) Annual progress report, a technical and financial report prepared by CLO at the end of the year,

Quality Management for Project Activity Results

OUTPUT 1): Political dialogue maintained between the coalition partners and the Panel.

Activity Result 2

(Atlas Activity ID)

CLO Political dialogue

Start Date: October 2008

End Date: September 2009

Purpose

To promote and facilitate the implementation of the KNDR agreements

Description

The CLO will ensure that the Panel is adequately equipped, staffed and serviced to enable it facilitate and promote the implementation of the KNDR agreements and to undertake the tasks assigned to the Panel in the various agreements.

Quality Criteria

how/with what indicators the quality of the activity result will be measured?

Quality Method

Means of verification. What method will be used to determine if quality criteria has been met?

Date of Assessment

When will the assessment of quality be performed?

Engagement of the Panel in the post-mediation implementation phase

-Number of personnel recruited to CLO.

-Extent to which office is equipped to allow proper functioning of the CLO

-Number of follow-up visits to Kenya by Panel members.

-Number of facilitators and consultants deployed to help resolve any disputes or contentious issues among the Kenyan parties.

-Extent of formal and informal contacts between the Panel/CLO and the Coalition Government

-Number of international experts nominated to the TJRC and the constitutional review process.

-Number and type of additional international experts sourced to assist the Coalition Government in the implementation of the reform agenda.

-Extent and quality of administrative support provided to the secretariats of the independent commissions.

-Number and quality of situation reports provided by the CLO to the Panel and the AU through the chair of the Panel.

-Minutes of Monthly briefings to development partners

Quarterly with Quarterly progress reports and Annually as per M&E Milestones

Monthly briefings with Development partners

Dialogue Team’s role in advancing implementation of the agreements.

-Number of consultations between the Dialogue Team and the CLO.

-Level of Dialogue Team’s participation in periodical meetings with the CLO to review progress in the implementation process.

-Level of collaboration between the Dialogue Team and the CLO in providing information to key stakeholders.

-Minutes of Monthly briefings to development partners

OUTPUT 2): Processing and analysis of the findings from the comprehensive and coordinated monitoring and evaluation mechanism
Activity Result 1 (Atlas Activity ID)	CLO Monitoring and Evaluation		Start Date: October 2008 End Date: September 2009
Purpose	To promote and facilitate the effective and timely implementation of the KNDR agreements
Description	The Panel/CLO will be the primary recipient of regular reports, produced by a private research firm, designed to monitor and evaluate progress in the implementation of the KNDR agreements and reform agenda. The reports will track progress and constraints in the follow-up to the agreements reached under all four agenda items, as well as to the recommendations of the independent commissions. The Panel/CLO may, at its discretion and in consultation with the Dialogue Team, make such reports public.
Quality Criteria how/with what indicators the quality of the activity result will be measured?		Quality Method Means of verification. What method will be used to determine if quality criteria has been met?	Date of Assessment When will the assessment of quality be performed?
Monitoring and evaluation mechanism established, with the assistance of private research firm		-MoU governing collaboration among the M&E partners signed. -Number and usefulness of indicators to measure progress developed.	Quarterly with Quarterly progress reports and Annually as per M&E Milestones. Shared with al stakeholders (Government and Development partners included)
Implementation of actions agreed under Agenda Item 1 of the KNDR (measures to end violence and restore rights) are tracked, reviewed and evaluated.		-Number and quality of reports produced on Agenda I (i.e. extent and locations of any violence; incidences of irresponsible and provocative statements and hate messages; demobilisation of illegal armed groups and militias; level of freedom of expression, freedom of assembly and press freedom; level of criminal activities). -Minutes of Monthly briefings to development partners
Implementation of actions agreed under Agenda Item Two of the KNDR (measures to address the humanitarian crisis and promote reconciliation) are tracked, reviewed and evaluated.		-Number and quality of reports produced on Agenda Item Two (i.e. level of protection and basic services provided to displaced persons; level of support for farming activities; rate of sustainable return of displaced persons to their homes; establishment of a TJRC; establishment of grassroots peace-building committees) -Minutes of Monthly briefings to development partners
Implementation of actions agreed under Agenda Item Three of the KNDR (measures to resolve the political crisis) are tracked, reviewed and evaluated.		-Number and quality of reports produced on Agenda Item Three (i.e. rate of progress in the electoral reform process; level of cohesiveness and effectiveness of the Coalition Government; extent of the coalition partners’ commitment to the principles of the National Accord) -Minutes of Monthly briefings to development partners
Implementation of actions agreed under Agenda Item Four of the KNDR (measures to address the long-term issues) are tracked, reviewed and evaluated.		-Number and quality of reports produced on Agenda Item Four (i.e. rate of progress in addressing constitutional reform, institutional reforms, land reform, poverty and regional development imbalances, youth unemployment, national cohesion and unity, and transparency and accountability) -Minutes of Monthly briefings to development partners
Implementation of the recommendations of the commissions emanating from the KNDR are tracked, reviewed and evaluated.		-Number and quality of reports produced on the follow-up to the recommendations of IREC and CIPEV. -Minutes of Monthly briefings to development partners

OUTPUT 3): Preservation and proper archiving of the records and documents from the KNDR process. (Information repository established)

Activity Result 3

(Atlas Activity ID)

KNDR archives

Start Date: October 2008

End Date: September 2009

Purpose

To ensure that the wealth of knowledge and information created by the KNDR is preserved and made available, where possible, to the public, for historical purposes and so that the lessons learned from the process can be used to improve capacity for mediation and early preventive diplomacy in Kenya and beyond.

Description

The records, documents and other materials from the KNDR process will, in compliance with Kenyan legal requirements, be preserved according to international archiving standards and made accessible, where possible, to the public.

Quality Criteria

how/with what indicators the quality of the activity result will be measured?

Quality Method

Means of verification. What method will be used to determine if quality criteria has been met?

Date of Assessment

When will the assessment of quality be performed?

Storage of documentation from the KNDR process, including of the commissions,

-Quality and timeliness of the expert assessment of archiving requirements.

-Report and recommendations from consultant on archiving components including training needs requirements

-Quality and timeliness of policies, procedures and agreements developed for the archiving of KNDR records, including on management, custody, and ownership.

-Extent to which KNDR archives, in compliance with Kenyan legal requirements, are preserved in accordance with international standards and practices.

-Minutes of Monthly briefings to development partners.

Quarterly with Quarterly progress reports and Annually as per M&E Milestones

Project Financial and Accounting System

I. Financial management system

Disbursement of Finances

UNDP disburses funds (Direct Payment) directly to contractors and other payees. Such payments are based on the approved expenditure of this Annual Work Plan (AWP) and in the Quarterly Work Plans. The project is implemented on a DEX (Direct Execution) modality with the United Nations Development Programme as the implementing partner. This project begins being implemented after completion of the initial mediation phase implemented through the initiation plan: Support to the African Union (AU) Panel of Eminent African Personalities’ facilitation efforts on peace building and reconciliation, whose activities ended with the agreement on the Agenda Item Four implementation matrix. Development partners have pledged and provided resources for implementation of mediation activities. Any balances of these resources, most of which were not earmarked for specific activities, would be rolled over to support the resultant Coordination and Liaison Office (CLO), in consultation with the respective development partners.

Payment Processes

Finance staff receive invoices or requests for payment. Before creating the [payment] voucher finance staff:

· Review the accuracy of the payment amount (e.g. review the calculation of the travel advance);

· Ensure that the payment modality is correct (i.e. EFT or cheque);

· Ensure the chartfield is correct;

· Confirm that the payment has not already been made;

· Verify vendor banking details (i.e. compare the banking details on the invoice to the vendor record);

· Ensure that credit notes received will be offset against the amount to be paid;

· Ensure payments are entered into the system with the correct due date, so that the payment can be scheduled in accordance with the agreed upon payment terms;

· Ensure proper supporting documentation is attached and/or available.

In addition, for PO payment vouchers finance staff:

· Ensure that the terms and conditions of payment are consistent with the PO or contract document;

· Verify that if the PO requires three way matching, that the Project Manager (or his/her designate) has recorded satisfactory receipt of goods/services in Atlas;

· Verify that if the PO requires only two way matching that satisfactory receipt of goods/services has been documented outside of Atlas;

· Bring any exceptions to the attention of the Approving Manager who approved the PO.

In addition, for non-PO payment vouchers finance staff:

· Verify that the request for non-PO payment is approved by the Project Manager (including, if applicable, verifying of satisfactory receipt of goods/services);

· Verify that the payment does not require a PO (i.e. that it is under $2,500);

· Verify that the payment is in compliance with UNDP procedures;

· Obtain explanations for any exceptions from the Project Manager and bring these to the attention of the Approving Manager, prior to his/her approval of the non-PO payment

Financial Accountability

UNDP in close consultation with the CLO has been responsible for ensuring that the allocated resources for the AWP have been utilized effectively in funding the envisaged activities. Unless otherwise mutually agreed by all parties to this Agreement, UNDP financial rules and regulations, and budget monitoring and reporting procedures have applied in the execution of this Project. UNDP in close collaboration with CLO has maintained records and controls for the purpose of ensuring the accuracy and reliability of financial information and to ensure that disbursements are within the approved budgets.

Financial Reporting

CLO in close collaboration with UNDP has within 20 days after the end of each quarter generated a detailed expenditure report. The CLO maintains a register of all details of the expenditure report into appropriate books for purposes of audit. CLO will be responsible to presentation of financial reports and corresponding technical reports.

Fiduciary Compliance

In managing the AWP resources, UNDP has fiduciary and compliance responsibilities and also compliance to reporting procedures.

Logistics and Working Arrangements

UNDP CO will facilitate entry into locations as necessary for this exercise, including ground passes for any auditors required to work at Gigiri

Previous Audits

The project is being audited for the first time during its life.

Attachment III

Terms of Reference (TOR) of Audit Services

1. AUDIT OBJECTIVES – Purpose of audit

The selected firm shall conduct an audit in accordance with International Standards of Auditing to determine the regularity of the receipt, custody, expenditure, and accounting for UNDP resources and assess the overall operational and internal control system for management of the project. Specifically the auditors shall:

1.1 Express an opinion on whether the Combined Delivery Report (statement of expenditure), including disbursements and encumbrances of the one Project for the period from20/01/2008 to 30/09/2010 presents fairly, in all material respects, expenditures incurred on the project; and whether these expenditures were incurred: (i) in conformity with the approved project budgets; (ii) for the approved purposes of the project; (iii) in compliance with the relevant regulations and rules, policies and procedures of UNDP; (iv) in accordance with donor grant terms; and (iv) supported by properly approved vouchers and other supporting documents.

1.2 Express an opinion on whether the project’s statement of assets as 30 September 2010 presents fairly, in all material respects, the balance of inventory of the project.

1.3 Express an opinion on whether the project’s Statement of Cash Position as at 30 September 2010 presents fairly, in all material respects, the cash and bank balances of the projects. (Statement of Cash Position is required only if there is separate bank account for each of the DIM project)

1.4 Provide an overall assessment of the operational and internal control systems that are in place for the management of the Project so that related transactions are processed in accordance with UNDP policies and procedures and for the achievement of the projects objectives.

2. SCOPE OF AUDIT

2.1 The audit shall:

(i) Cover all activities of the project during the period from 20 January 2008 to 30 September 2010.

(ii) Review all project reports and records located at the UNDP Kenya office at Gigiri Nairobi, Coordination and Liaison Office, African Union, and Committee of Experts on Constitutional Review, Delta House, Westlands, Nairobi. This includes:

a) The Combined Delivery Report (CDR)/ Statement of Expenditure of the 00060369 project for the period from 20 January 2008 to 30 September 2010, as reported by UNDP office in Kenya.

b) The Statement of Assets of the Project as at 30 September 2010.

c) The Statement of Cash Position of the Project as at 30 September 2010. (Statement of Cash Position is required only if there is separate bank account for each of the DIM project)

2.2 In order to achieve the audit objectives in paragraph 1.1 to 1.4 and the review of the operations mentioned in paragraph 2.1, the audit shall cover the following areas:

(i) Organization and Staffing: Assess the organization structure of the project in terms of its effectiveness and efficiency for the management of the projects, taking into account the framework of authorities, workflows, staffing levels and necessary internal controls including the different levels of delegated authority for different operational functions and distribution of project management responsibilities to achieve project goals while ensuring appropriate segregation of duties in general so as to minimize risks.

(ii) Programme and project management: Assess the management aspects in terms of project approvals *including incorporating Local Project Appraisal Committee recommendations into the project document), work plans, budget formulation, project resources, monitoring and evaluation of implementation towards achievement of project objectives including constitution and functioning of project Board, field visits, review meetings and the coordination and consultation mechanisms with the stakeholders, and periodic project progress reporting against planned objectives and work plans; In addition, the areas of coverage of such authorization; (ii) business unit capacity assessment for implementation of DIM projects; (iii) Exit strategy and national capacity building; (iv) identifying and recovering costs attributable to implementing the project.

(iii) Human Resources: Assess timeliness of recruitment of competent personnel for clearly defined tasks and responsibilities through a competitive and transparent process and the continued management of project personnel including review of their performance, and the payment of salaries and allowances in accordance with UNDP HR policies. In respect of casual or other staff not subject to UNDP HR policies and who are temporarily loaned or seconded from the local authorities for engagement at the field level, control of their assignments and the appropriateness of the salary, allowances and benefits paid;

(iv) Finance: Assess the adequacy of the accounting and reporting systems fused for the management of project resources; and the adequacy of internal controls for compliance with UNDP policies with respect to the safe custody and adequate management of cash, commitment of expenditures against approved budget, disbursement or payments against liabilities and cash advances to field offices, project staff, etc.

(v) Procurement: Assess whether goods (supplies, equipment) and services for the project are procured competitively and in a transparent manner in accordance with UNDP policies and procedures; and these are of a quality and quantity that are actually required for the projects. The review shall cover the integrity of the entire procurement process from the initial identification of needs, the formulation of specifications, solicitation of bids/tenders/proposals from vendors, evaluation of vendor offers in response to solicitations, the award of contracts, the appropriate assessment of goods or services delivered and the payment for received goods or services and monitoring performance of the contractors.

(vi) Assets Management: Assess whether project assets are adequately recorded, safeguarded, monitored, including periodic physical verification of their use and existence, and controlledto ensure that the asssets are adequately used and only for project purposes. Assets are defined as all items with an acquisition value exceeding $1,000 (such as vehicles and office equipment), or, for attractive items, exceeding $400[1], the costs of which are charged to the project expenditure or which are received in kind as donations from third parties.

(vii) Cash Management: Review the safeguarding of all cash (including bank accounts) held separately for the purposes of the project either in the UNDP country office or at the project field offices, including cash held as advances or imprest in any sub-office or field office.

(viii) Information Systems: Assess the efficiency and security of the information systems established and maintained from project funds and their adequacy to meet the management and reporting requirements of the projects.

(ix) General Administration: These include areas of operations not specifically covered above and for which expenditures are charged to the project covering such areas as: travel of project staff, use and maintenance of project vehicles, shipping services, lease and maintenance of office premises and facilities, communications, and records maintenance.

(x) Follow up on previous audits: Assess the status of implementation of the previous audits’ recommendations done within the last three years.

3. AUDIT PLANNING AND FIELDWORK

3.1 The auditors will conduct the audit on behalf of UNDP Office of Audit and Investigations (OAI) and will be under the general supervision of the Chief of OAI’s Regional Audit Centre for Eastern and Southern Africa (RAC- ESA). Any major changes in the terms of reference shall be cleared with the Chief, who will notify OAI Director/Deputy Director, as deemed necessary.

3.2 The timelines for fieldwork and reporting shall be agreed with the Chief of the RAC-ESA.

3.3 Any audit-related issue during fieldwork shall be reported to and resolved with the Chief of the RAC-ESA.

4. REPORTING

4. 1 As a result of the audit work performed, the audit reports and certifications for the DIM project that has been audited shall include:

(i) A certification of, and audit opinion on the Combined Delivery Report (CDR)/ statement of expenditure of the UNDP DIM project for the period from 20 January 2008 to 30 September 2010 that are listed in Attachment II and referred to in 1.1;

(ii) A certification of, and audit opinion on the Statement of Assets as at 30 September 2010, held each of the directly implemented project in accordance with paragraph 1.2.; and

(iii) A certification of, and audit opinion on the statement of Cash Position as at 30 September 2010 in accordance with paragraph 1.3. (Statement of Cash Position is required only if there is separate bank account for each of the DIM project)

The above certifications shall be substantially in the form required by UNDP, outlined in Appendix C to this Attachment. The certifications shall be attached to the related financial statements of each of the directly implemented UNDP projects which should include, as applicable, relevant notes to the statements being certified.

4. 2 A management letter that identifies, as a result of the financial audit, observations regarding areas of improvements in the overall operational and control systems of the DIM projects. It should cover all the areas specified in the objectives and scope mentioned in paragraphs 1 and 2 above. Where an area of audit specified in paragraph 2.2 is either not included in the work undertaken or not covered in the management letter, the reasons for not doing so must be clearly provided in an appropriate section.

The management letter shall contain:

(i) An Executive Summary that captures the important issues raised in the management letter.

(ii) Detailed assessment of each audit area that captures the audit issues and recommendations as follows:

§ Issue Title: A summarized version of the “audit condition” should be stated in a phrase, not a complete sentence.

§ Observation: This should present a brief background statement, then describe the criteria (The criteria could be any of the following: regulations, rules, policies, procedures, generally accepted standards, stated programme objectives, Office-defined expectations, best practices, or basically what measures the audit team used in making an evaluation and/or verification); the condition (= what is, or the situation that exists); the cause or the reason for the difference between the expected and actual conditions; and lastly describe the consequence or effect or impact/risk should the issue(s) remain unresolved.

§ Cause: Identify the root causes of the current condition, and classify them in accordance with the definition of causes in Appendix A to this Attachment;

§ Risk: Identify and classify the risks in accordance with the definition of risks in Appendix A to this Attachment;

§ Priority: State the priority of recommendation as High or Medium, in accordance with the definition of priority in Appendix A to this Attachment;

§ Recommendation: Spell out the next steps or actions in order to resolve the issue. The recommendation should address the root causes identified as causing the current condition

§ Management comments: Incorporate management’s response to the audit findings and recommendations

§ Responsible manager: the management should identify a staff member responsible for the implementation of the audit recommendations

§ Expected completion date: the management should indicate when the audit recommendation will be completed.

§ Auditors’ response: If management agrees with the recommendation, then there is no need for an Auditors response. When management does not agree with the recommendation and the auditor decides to retain the recommendation, a response should be stated here, elaborating on the reason why the recommendation is considered valid.

(iii) Provide an overall rating for each of the ten areas specified in paragraph 2.2 scope of audit. Each audit area should be rated in accordance with the definition of standard audit ratings contained in Appendix B to this Attachment.

4. 3 The draft audit report and certifications shall be prepared and submitted simultaneously to the UNDP Office in Kenya for comments and to OAI RAC-ESA for review within 20 working days after the completion of the audit fieldwork.

4. 4 The selected firm shall ensure that the comments of the management of the UNDP Office in Kenya on the audit observations and recommendations are obtained in writing prior to their inclusion in the final audit report and certifications.

4. 5 The final audit report shall focus on matters considered significant for the UNDP CO in Kenya and/or UNDP as a whole.

4. 6 The English language shall be used for all related reports and correspondence.

4. 7 In addition to the general supervision provided by the Chief RAC-ESA, OAI reserves the right to review the supporting audit working papers as part of the review of the draft audit report. The review may be done on-site or through remote access to the electronic working papers. Alternatively, the auditors may be required to submit working papers to the RAC-ESA for desk review. In addition, OAI may at its discretion seek feedback from concerned units on the quality of the audit services rendered by the selected firm.

5. AUDITORS’ PROFESSIONAL QUALIFICATIONS

The Principal of the audit firm should have at least 10 years of audit experience. The audit of the each project shall be led by a Professional Accountants such as Chartered Accountant (CA), Chartered Certified Accountant (CCA) or Certified Public Accountant (CPA) or Expert Comptable.

The auditor must be completely impartial and independent from all aspects of management or financial interests in the entity being audited. The auditor should not, during the period covered by the audit nor during the undertaking of the audit, be employed by, serve as director for, or have any financial or close business relationships with any senior participant in the management of the entity. It may be appropriate to remind an auditor of any existing statutory requirements relating to independence and to require an auditor to disclose any relationship that might possibly compromise his/her independence.

The auditor should be experienced in applying either ISA or INTOSAI audit standards, whichever is applicable for the audit. The auditor must employ adequate staff with appropriate professional qualifications and suitable experience with ISA or INTOSAI standards, including experience in auditing the accounts of entities comparable in size and complexity to the entity being audited.

Curriculum vitae (CVs) should be provided to the client by the principal of the firm of auditors who would be responsible for signing the opinion, together with the CVs of managers, supervisors and key personnel proposed as part of the audit team. The Principal of the audit firm should have at least 15 years of post-qualification audit experience.

6. FACILITIES PROVIDED BY UNDP

Office space including internet access and telephone facilities for official use and activities related to the assignment.

7. FACILITIES PROVIDED BY THE CONTRACTOR

All other facilities will be provided by the Contractor including transportation to and from the project site, stationary etc.

8. EXPECTED PROGRAMME AND DURATION OF THE ASSIGMENT

Expected duration of the assignment is 6 weeks to commence on 20^th September, 2010.

Appendix A to Attachment III

Priorities of Audit Recommendations, Causes and Categories of Risk

The audit observations are categorized according to the priority of the audit recommendations and the possible causes of the issues. The categorized audit observation provides a basis by which the UNDP country office management is to address the issues.

The following categories of priorities are used:

High Action is considered imperative to ensure that UNDP is not exposed to high risks. Failure to take action could result in major consequences and issues.

Medium Action is considered necessary to avoid exposure to significant risks. Failure to take action could result in significant consequences.

Low Action is considered desirable and should result in enhanced control or better value for money. Low priority recommendations, if any, are dealt with by the Auditors directly with the Country Office management, during the exit meeting and through a separate memo subsequent to the fieldwork. Therefore, low priority recommendations are not included in the management letter.

The following categories of causes are used (most are self-explanatory, hence no definition is necessary):

§ Lack of or inadequate corporate policies or procedures

§ Lack of or inadequate country office policies or procedures Lack of or inadequate guidance or supervision at country office level

§ Inadequate oversight by Headquarters bureaux

§ Lack of or insufficient resources (specify: financial, human, or technical resources)

§ Inadequate planning

§ Inadequate training

§ Human error

§ Intentional overriding of internal controls

§ Inadequate management structure

The audit issues, if not resolved, constitute a risk. The following categories are used to classify the risks:

§ Environmental This pertains to natural disasters, pollution incidents and social and cultural, security and safety, and economic risks.

§ Financial This pertains to external economic factors (such as interest rates, exchange rate fluctuation, inflation) and internal economic factors (such as co-financing difficulties, use of financing mechanisms, funding, reserve adequacy, currency, receivables, accounting/financial reporting, budget allocation and management, cash management/reconciliation, pricing/cost recovery).

§ Organizational This pertains to institutional arrangements; institutional/execution capacity; implementation arrangements; country office capacity; governance; culture, code of conduct and ethics; accountability and compensation; succession planning and talent management; human resources processes and procedures.

§ Operational This pertains to process efficiency, operations-related human error/incompetence, internal controls, internal and external fraud, compliance and legal, procurement, technology, physical assets, infrastructure failure, and safety being compromised.

§ Programmatic This pertains to risks relating to complex project design (size, larger/multi-country projects, technical complexity, innovativeness, multiple funding sources), project management, programme-/project-related human error/incompetence, poor monitoring and evaluation, delivery, and programme management.

§ Political This pertains to corruption, government commitment, political will, political instability, change in government, armed conflict and instability, adverse public opinion/media intervention.

§ Regulatory This pertains to new unexpected regulations and policies; critical policies or legislation fails to pass or progress in the legislative process.

§ Strategic This pertains to partnerships failing to deliver; strategic vision, planning and communication; leadership and management; programme alignment; competition; stakeholder relations; UNDP reputation; UN coordination; UN reform.

Appendix B to Attachment III

Definition of Standard Audit Ratings

Definition of Performance:

Within the operational audit context, performance refers to the economy, efficiency, and effectiveness of operations under management’s control. Operational audits assess the extent to which resources are acquired and utilized with due regard to economy and efficiency and whether management has put in place mechanisms to accurately monitor and assess whether programs are meeting planned objectives. Operational audits do not report on the achievement of results.

Performance also refers to the manner is which activities are conducted – i.e. whether they are conducted in accordance with UNDP values. UNDP values encompass the notions of prudence and probity, as well as the necessity of taking acceptable risks.

Standard Rating Definition

Satisfactory Internal controls and risk management practices were adequately established and functioning well. No high risk areas were identified. Overall, the office objectives are likely to be achieved.

Partially Satisfactory Internal controls and risk management practices were generally established and functioning, but needed improvement. One or more high and medium risk areas were identified that may impact on the achievement of office objectives

Unsatisfactory Internal controls and risk management practices were either not established or not functioning well. The majority of issues identified were high risk. Hence, the overall office objectives are not likely to be achieved.

Appendix C to Attachment III

Format for Financial Certifications

I. Sample Certification for Statement of Expenditure

We have audited the accompanying statement of expenditure (“the statement”) of the UNDP project [insert project number], [insert official title of project] for the period from dd/mm/yyyy to dd/mm/yyyy. The statement is the responsibility of the management of <name/title> project. Our responsibility is to express an opinion on the statement based on our audit.

We conducted our audit in accordance with International Standards of Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the statement. We believe that our audit provides a reasonable basis for our opinion.

Option 1: (Unqualified)

In our opinion, the attached statement of expenditure presents fairly, in all material respects, the expenditure of [insert amount in US$] incurred by the project [insert official title of project] for the period from dd/mm/yyyy to dd/mm/yyyy in accordance with the accounting policies set out in the note to the statement. The expenditures incurred were: (i) in conformity with the approved project budgets; (ii) for the approved purposes of the project; (iii) in compliance with the relevant regulations and rules, policies and procedures of UNDP; and (iv) supported by properly approved vouchers and other supporting documents.

Option 2: (Qualified - a negative audit opinion)

In our opinion, the attached statement of expenditure, except for the reasons indicated above in paragraphs (1), (2), (3), etc., presents fairly in all material respects the expenditure of [insert amount in US$] incurred by the project for the period from dd/mm/yyyy to dd/mm/yyyy in accordance with the accounting policies set out in the note to the statement.

Option 3: (Disclaimer - a negative audit opinion)

We were unable to obtain (explanation and reasons for disclaimer stated here) and accordingly are unable to express an opinion on the statement of expenditure of [insert amount in US$] incurred by the project and audited by us for the period from dd/mm/yyyy to dd/mm/yyyy.

Option 4: (Adverse - a negative audit opinion)

We noted (explanations for adverse opinion to be clearly stated). As such, we do not express an opinion on the statement of expenditure, of [insert amount in US$] incurred by the project and audited by us for the period from dd/mm/yyyy to dd/mm/yyyy.

II. Sample Certification for Statement of Assets

We have audited the accompanying schedule of assets (“the schedule”) of the UNDP project number [insert project number], [insert official title of project] as at dd/mm/yyyy. This schedule is the responsibility of the management of the project. Our responsibility is to express an opinion on the statement based on our audit.

We conducted our audit in accordance with International Standards of Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the schedule is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the schedule. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the schedule. We believe that our audit provides a reasonable basis for our opinion.

Option 1: (Qualified)

In our opinion, the attached statement of inventory presents fairly, in all material respects, the balance of inventory of the UNDP project number [insert project number], amounting to [insert amount in US$] as at dd/mm/yyyy in accordance with the accounting policies set out in the note to the schedule.

Option 2: (Qualified - a negative audit opinion)

In our opinion, the attached statement of inventory, except for the reasons indicated above in paragraphs (1), (2), (3), etc., presents fairly in all material respects the balance of inventory of [insert amount in US$] incurred by the project for the period as at dd/mm/yyyy in accordance with the accounting policies set out in the note to the schedule.

Option 3: (Disclaimer - a negative audit opinion)

We were unable to obtain (explanation and reasons for disclaimer stated here) and accordingly are unable to express an opinion on the statement of inventory of [insert amount in US$] incurred by the project and audited by us as at dd/mm/yyyy.

Option 4: (Adverse - a negative audit opinion)

We noted (explanation and reasons for adverse opinion stated here). As such, we do not express an opinion on the statement of inventory, of [insert amount in US$] incurred by the project and audited by us as at dd/mm/yyyy.

Auditor's Signature

Date

Address

III. Sample Certification of Statement of Cash Position (Statement of Cash Position is required only if there is separate bank account for each of the DIM project)

We have audited the accompanying schedule of cash (“the schedule”) of the UNDP project number [insert project number], [insert official title of project] as at dd/mm/yyyy. This schedule is the responsibility of the management of [insert the sub-recipient name]. Our responsibility is to express an opinion on the statement based on our audit.

We conducted our audit in accordance with International Standards of Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the schedule is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the schedule. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the schedule. We believe that our audit provides a reasonable basis for our opinion.

Option 1: (Unqualified)

In our opinion, the schedule of cash presents fairly, in all material respects, the cash and bank balance of [insert project number], amounting to [insert amount in US$], as at dd/mm/yyyy in accordance with the accounting policies set out in the note to the schedule.

Option 2: (Qualified - a negative audit opinion)

In our opinion, the schedule of cash, except for the reasons indicated above in paragraphs (1), (2), (3), etc., presents fairly in all material respects the cash and bank balance of [insert project number], amounting to [insert amount in US$], as at dd/mm/yyyy in accordance with the accounting policies set out in the note to the schedule.

Option 3: (Disclaimer - a negative audit opinion)

We were unable to obtain (explanation and reasons for disclaimer opinion stated here) and accordingly are unable to express an opinion on the schedule of cash of [insert amount in US$] held by the project and audited by us as at dd/mm/yyyy.

Option 4: (Adverse - a negative audit opinion)

We noted (explanation and reasons for adverse opinion stated here). As such, we do not express an opinion on the schedule of cash in the amount of [insert amount in US$], audited by us, as at dd/mm/yyyy.

Auditor's Signature

Date

Address

Attachment IV

General Conditions of Contract

For Professional Services

1. LEGAL STATUS

The Contractor shall be considered as having the legal status of an independent contractor vis-à-vis UNDP. The Contractor's personnel and sub-contractors shall not be considered in any respect as being the employees or agents of UNDP or the United Nations.

2. SOURCE OF INSTRUCTIONS

The Contractor shall neither seek nor accept instructions from any authority external to UNDP in connection with the performance of its services under this Contract. The Contractor shall refrain from any action which may adversely affect UNDP or the United Nations and shall fulfil its commitments with the fullest regard to the interests of UNDP.

3. CONTRACTOR'S RESPONSIBILITY FOR EMPLOYEES

The Contractor shall be responsible for the professional and technical competence of its employees and will select, for work under this Contract, reliable individuals who will perform effectively in the implementation of this Contract, respect the local customs, and conform to a high standard of moral and ethical conduct.

4. ASSIGNMENT

The Contractor shall not assign, transfer, pledge or make other disposition of this Contract or any part thereof, or any of the Contractor's rights, claims or obligations under this Contract except with the prior written consent of UNDP.

5. SUB-CONTRACTING

In the event the Contractor requires the services of sub-contractors, the Contractor shall obtain the prior written approval and clearance of UNDP for all sub-contractors. The approval of UNDP of a sub-contractor shall not relieve the Contractor of any of its obligations under this Contract. The terms of any sub-contract shall be subject to and conform to the provisions of this Contract.

6. OFFICIALS NOT TO BENEFIT

The Contractor warrants that no official of UNDP or the United Nations has received or will be offered by the Contractor any direct or indirect benefit arising from this Contract or the award thereof. The Contractor agrees that breach of this provision is a breach of an essential term of this Contract.

7. INDEMNIFICATION

The Contractor shall indemnify, hold and save harmless, and defend, at its own expense, UNDP, its officials, agents, servants and employees from and against all suits, claims, demands, and liability of any nature or kind, including their costs and expenses, arising out of acts or omissions of the Contractor, or the Contractor's employees, officers, agents or sub-contractors, in the performance of this Contract. This provision shall extend, inter alia, to claims and liability in the nature of workmen's compensation, products liability and liability arising out of the use of patented inventions or devices, copyrighted material or other intellectual property by the Contractor, its employees, officers, agents, servants or sub-contractors. The obligations under this Article do not lapse upon termination of this Contract.

8. INSURANCE AND LIABILITIES TO THIRD PARTIES

a) The Contractor shall provide and thereafter maintain insurance against all risks in respect of its property and any equipment used for the execution of this Contract.

b) The Contractor shall provide and thereafter maintain all appropriate workmen's compensation insurance, or its equivalent, with respect to its employees to cover claims for personal injury or death in connection with this Contract.

c) The Contractor shall also provide and thereafter maintain liability insurance in an adequate amount to cover third party claims for death or bodily injury, or loss of or damage to property, arising from or in connection with the provision of services under this Contract or the operation of any vehicles, boats, airplanes or other equipment owned or leased by the Contractor or its agents, servants, employees or sub-contractors performing work or services in connection with this Contract.

d) Except for the workmen's compensation insurance, the insurance policies under this Article shall:

i) Name UNDP as additional insured;

ii) Include a waiver of subrogation of the Contractor's rights to the insurance carrier against UNDP;

iii) Provide that UNDP shall receive thirty (30) days written notice from the insurers prior to any cancellation or change of coverage.

e) The Contractor shall, upon request, provide UNDP with satisfactory evidence of the insurance required under this Article.

9. ENCUMBRANCES/ LIENS

The Contractor shall not cause or permit any lien, attachment or other encumbrance by any person to be placed on file or to remain on file in any public office or on file with UNDP against any monies due or to become due for any work done or materials furnished under this Contract, or by reason of any other claim or demand against the Contractor.

10. TITLE TO EQUIPMENT

Title to any equipment and supplies that may be furnished by UNDP or UNFPA shall rest with UNDP or UNFPA and any such equipment shall be returned to UNDP or UNFPA at the conclusion of this Contract or when no longer needed by the Contractor. Such equipment, when returned to UNDP or UNFPA, shall be in the same condition as when delivered to the Contractor, subject to normal wear and tear. The Contractor shall be liable to compensate UNDP or UNFPA for equipment determined to be damaged or degraded beyond normal wear and tear.

11. COPYRIGHT, PATENTS AND OTHER PROPRIETARY RIGHTS

UNDP shall be entitled to all intellectual property and other proprietary rights including but not limited to patents, copyrights, and trademarks, with regard to products, or documents and other materials which bear a direct relation to or are produced or prepared or collected in consequence of or in the course of the execution of this Contract. At the UNDP's request, the Contractor shall take all necessary steps, execute all necessary documents and generally assist in securing such proprietary rights and transferring them to UNDP in compliance with the requirements of the applicable law.

12. USE OF NAME, EMBLEM OR OFFICIAL SEAL OF UNDP OR THE UNITED NATIONS

The Contractor shall not advertise or otherwise make public the fact that it is a Contractor with UNDP, nor shall the Contractor, in any manner whatsoever use the name, emblem or official seal of UNDP, UNFPA or the United Nations, or any abbreviation of the name of UNDP, UNFPA or the United Nations in connection with its business or otherwise.

13. CONFIDENTIAL NATURE OF DOCUMENTS AND INFORMATION

a) All maps, drawings, photographs, mosaics, plans, reports, recommendations, estimates, documents and all other data compiled by or received by the Contractor under this Contract shall be the property of UNDP, shall be treated as confidential and shall be delivered only to UNDP authorized officials on completion of work under this Contract.

b) The Contractor may not communicate at any time to any other person, Government or authority external to UNDP, any information known to it by reason of its association with UNDP which has not been made public except with the authorization of UNDP; nor shall the Contractor at any time use such information to private advantage. These obligations do not lapse upon termination of this Contract.

14. FORCE MAJEURE: OTHER CHANGES IN CONDITIONS

a) Force majeure, as used in this Article, means acts of God, war (whether declared or not), invasion, revolution, insurrection, or other acts of a similar nature or force which are beyond the control of the Parties.

b) In the event of and as soon as possible after the occurrence of any cause constituting force majeure, the Contractor shall give notice and full particulars in writing to UNDP, of such occurrence or change if the Contractor is thereby rendered unable, wholly or in part, to perform its obligations and meet its responsibilities under this Contract. The Contractor shall also notify UNDP of any other changes in conditions or the occurrence of any event which interferes or threatens to interfere with its performance of this Contract. The notice shall include steps proposed by the Contractor to be taken including any reasonable alternative means for performance that is not prevented by force majeure. On receipt of the notice required under this Article, UNDP shall take such action as, in its sole discretion, it considers to be appropriate or necessary in the circumstances, including the granting to the Contractor of a reasonable extension of time in which to perform its obligations under this Contract.

c) If the Contractor is rendered permanently unable, wholly, or in part, by reason of force majeure to perform its obligations and meet its responsibilities under this Contract, UNDP shall have the right to suspend or terminate this Contract on the same terms and conditions as are provided for in Article 15, "Termination", except that the period of notice shall be seven (7) days instead of thirty (30) days.

15. TERMINATION

a) Either party may terminate this Contract for cause, in whole or in part, upon thirty days notice, in writing, to the other party. The initiation of arbitral proceedings in accordance with Article 16 "Settlement of Disputes" below shall not be deemed a termination of this Contract.

b) UNDP reserves the right to terminate without cause this Contract at any time upon 15 days prior written notice to the Contractor, in which case UNDP shall reimburse the Contractor for all reasonable costs incurred by the Contractor prior to receipt of the notice of termination.

c) In the event of any termination by UNDP under this Article, no payment shall be due from UNDP to the Contractor except for work and services satisfactorily performed in conformity with the express terms of this Contract. The Contractor shall take immediate steps to terminate the work and services in a prompt and orderly manner and to minimize losses and further expenditures.

d) Should the Contractor be adjudged bankrupt, or be liquidated or become insolvent, or should the Contractor make an assignment for the benefit of its creditors, or should a Receiver be appointed on account of the insolvency of the Contractor, UNDP may, without prejudice to any other right or remedy it may have, terminate this Contract forthwith. The Contractor shall immediately inform UNDP of the occurrence of any of the above events.

16. SETTLEMENT OF DISPUTES

a) Amicable Settlement: The Parties shall use their best efforts to settle amicably any dispute, controversy or claim arising out of, or relating to this Contract or the breach, termination or invalidity thereof. Where the parties wish to seek such an amicable settlement through conciliation, the conciliation shall take place in accordance with the UNCITRAL Conciliation Rules then obtaining, or according to such other procedure as may be agreed between the parties.

b) Arbitration: Unless, any such dispute, controversy or claim between the Parties arising out of or relating to this Contract or the breach, termination or invalidity thereof is settled amicably under the preceding paragraph of this Article within sixty (60) days after receipt by one Party of the other Party's request for such amicable settlement, such dispute, controversy or claim shall be referred by either Party to arbitration in accordance with the UNCITRAL Arbitration Rules then obtaining, including its provisions on applicable law. The arbitration tribunal shall have no authority to award punitive damages. The Parties shall be bound by any arbitration award rendered as a result of such arbitration as the final adjudication of any such controversy, claim or dispute.

17. PRIVILEGES AND IMMUNITIES

Nothing in or relating to this Contract shall be deemed a waiver, express or implied, of any of the privileges and immunities of the United Nations, including its subsidiary organs.

18. TAX EXEMPTION

a) Section 7 of the Convention on the Privileges and Immunities of the United Nations provides inter-alia that the United Nations, including its subsidiary organs, is exempt from all direct taxes, except charges for public utility services, and is exempt from customs duties and charges of a similar nature in respect of articles imported or exported for its official use. In the event any governmental authority refuses to recognize the United Nations exemption from such taxes, duties or charges, the Contractor shall immediately consult with UNDP to determine a mutually acceptable procedure.

b) Accordingly, the Contractor authorizes UNDP to deduct from the Contractor's invoice any amount representing such taxes, duties or charges, unless the Contractor has consulted with UNDP before the payment thereof and UNDP has, in each instance, specifically authorized the Contractor to pay such taxes, duties or charges under protest. In that event, the Contractor shall provide UNDP with written evidence that payment of such taxes, duties or charges has been made and appropriately authorized.

19. CHILD LABOUR

a) The Contractor represents and warrants that neither it, nor any of its suppliers is engaged in any practice inconsistent with the rights set forth in the Convention on the Rights of the Child, including Article 32 thereof, which, inter alia, requires that a child shall be protected from performing any work that is likely to be hazardous or to interfere with the child's education, or to be harmful to the child's health or physical mental, spiritual, moral or social development.

b) Any breach of this representation and warranty shall entitled UNDP to terminate this Contract immediately upon notice to the Contractor, at no cost to UNDP.

20. MINES

a) The Contractor represents and warrants that neither it nor any of its suppliers is actively and directly engaged in patent activities, development, assembly, production, trade or manufacture of mines or in such activities in respect of components primarily utilized in the manufacture of Mines. The term "Mines" means those devices defined in Article 2, Paragraphs 1, 4 and 5 of Protocol II annexed to the Convention on Prohibitions and Restrictions on the Use of Certain Conventional Weapons Which May Be Deemed to Be Excessively Injurious or to Have Indiscriminate Effects of 1980.

b) Any breach of this representation and warranty shall entitle UNDP to terminate this Contract immediately upon notice to the Contractor, without any liability for termination charges or any other liability of any kind of UNDP.

21. OBSERVANCE OF THE LAW

The Contractor shall comply with all laws, ordinances, rules, and regulations bearing upon the performance of its obligations under the terms of this Contract.

22. AUTHORITY TO MODIFY

No modification or change in this Contract, no waiver of any of its provisions or any additional contractual relationship of any kind with the Contractor shall be valid and enforceable against UNDP unless provided by an amendment to this Contract signed by the authorized official of UNDP.

[Please insert company letter-head]

Attachment V

PROPOSAL SUBMISSION FORM

Dear Sir / Madam,

Having examined your Request for Proposal dated dd/mm/yyyy, we, the undersigned, offer to provide audit services to UNDP office in <country> for the audit of the <number> projects for the sum as quoted in the financial proposal.

We undertake, if our proposal is accepted, to commence and complete delivery of all services specified in the contract within the time frame stipulated.

We agree to abide by this proposal for a period of 60 days from the date fixed for opening of proposals in the Request for Proposal, and it shall remain binding upon us and may be accepted at any time before the expiration of that period.

We understand that you are not bound to accept any proposal you may receive.

Duly authorized to sign proposal for and on behalf of

__________________________

Signature & Stamp of entity

Dated this day/ month / year

Name of representative:

Address:

Telephone/ Fax:

Attachment VI

Acknowledgement Letter

Please type or print legibly & return by dd-mm-yyyy via fax No.: (xxx) fax number

Date: ……………………….

Dear Mr./ Ms. ……,

Subject: Request for a Proposal of Audit Services for the 20XX Audit of <number> Project

We the undersigned, acknowledge receipt of your Request for a Proposal dated dd/mm/yyyy for the audit of the above-mentioned projects and hereby confirm that:

a) ¨ we intend ¨ we do not intend

to submit a proposal to the United Nations Development Programme by the deadline of dd/mm/yyyy.

Names of our representative(s) designated for this engagement		1. ………………………..………….………; and 2. …………………………..………….……
Firm/Company’s name (Proposer):
Address:
City:	State:			Zip:
Signature of Authorized Representative:
Name:		Title:
Telephone No.:		Ext.:	Fax No.:
Email address:

Attachment VII: Price Schedule

The Contractor is required to submit the Price Schedule in a separate envelope from the rest of the RFP response ,as indicated in Section D paragraph 14 (b) of the Instruction to Offerors.

All prices/rates quoted must be exclusive of all taxes. The UNDP is exempt from taxes as

detailed in Section II, Clause 18.

The Price Schedule must provide a detailed cost breakdown, including separate figures for each functional grouping or category.

Estimates for cost-reimbursable items, if any, such as travel, and out of pocket expenses should be listed separately.

The format shown on the following pages is a SAMPLE that could be used in preparing the price schedule. The format includes specific expenditures, which may or may not be required or applicable but are indicated to serve as examples.

Price Schedule: Request for Proposals for Audit Services
PART – A : FEE
S. No.	Team Member’s Name	Man Days	Rate per Days	Total
1.
2.
3.
Sub Total :
PART – B : Out of Pocket Expenses
S. No.	Particulars of reimbursable expenses			Amount
1.
2.
3.
Sub Total :
GRAND TOTAL :

Attachment VIII: Model Contract Form for Professional Services

Contract

Dear Sir/Madam,

Ref.: ______/ _______/ ______ [INSERT PROJECT NUMBER AND TITLE OR OTHER REFERENCE]

The United Nations Development Programme (hereinafter referred to as "UNDP"), wishes to engage your [firm/organization], duly incorporated under the Laws of _____________ [INSERT NAME OF THE COUNTRY] (hereinafter referred to as the "Contractor") in order to perform services in respect of ___________ [INSERT SUMMARY DESCRIPTION OF THE SERVICES] (hereinafter referred to as the "Services"), in accordance with the following Contract:

1.Contract Documents

1.1 This Contract is subject to the UNDP General Conditions for Professional Services attached hereto as Annex I. The provisions of such Annex shall control the interpretation of this Contract and in no way shall be deemed to have been derogated by the contents of this letter and any other Annexes, unless otherwise expressly stated under section 4 of this letter, entitled "Special Conditions".

1.2 The Contractor and UNDP also agree to be bound by the provisions contained in the following documents, which shall take precedence over one another in case of conflict in the following order:

a) this letter;

b) the Terms of Reference [ref. ......dated........], attached hereto as Annex II;

c) the Contractor's technical proposal [ref......, dated ........], as clarified by the agreed minutes of the negotiation meeting[2][dated........], both documents not attached hereto but known to and in the possession of both parties.

1.3 All the above shall form the Contract between the Contractor and UNDP, superseding the contents of any other negotiations and/or agreements, whether oral or in writing, pertaining to the subject of this Contract.

2. Obligations of the Contractor

2.1 The Contractor shall perform and complete the Services described in Annex II with due diligence and efficiency and in accordance with the Contract.

2.2 The Contractor shall provide the services of the following key personnel:

Name Specialization Nationality Period of service

.... .............. ........... ..................

2.3 Any changes in the above key personnel shall require prior written approval of ____________________________________ [NAME and TITLE], UNDP.

2.4 The Contractor shall also provide all technical and administrative support needed in order to ensure the timely and satisfactory performance of the Services.

2.5 The Contractor shall submit to UNDP the deliverables specified hereunder according to the following schedule:

[LIST DELIVERABLES] [INDICATE DELIVERY DATES]

e.g.

Progress report ../../....

............... ../../....

Final report ../../....

2.6 All reports shall be written in the English language, and shall describe in detail the services rendered under the Contract during the period of time covered in such report. All reports shall be transmitted by the Contractor by _________ [MAIL, COURIER AND/OR FAX] to the address specified in 9.1 below.

2.7 The Contractor represents and warrants the accuracy of any information or data provided to UNDP for the purpose of entering into this Contract, as well as the quality of the deliverables and reports foreseen under this Contract in accordance with the highest industry and professional standards.

3. Price and Payment[3]

3.1 In full consideration for the complete and satisfactory performance of the Services under this Contract, UNDP shall pay the Contractor a fixed contract price of ________ [INSERT CURRENCY & AMOUNT IN FIGURES AND WORDS].

3.2 The price of this Contract is not subject to any adjustment or revision because of price or currency fluctuations or the actual costs incurred by the Contractor in the performance of the Contract.

3.3 Payments effected by UNDP to the Contractor shall be deemed neither to relieve the Contractor of its obligations under this Contract nor as acceptance by UNDP of the Contractor's performance of the Services.

3.4 UNDP shall effect payments to the Contractor after acceptance by UNDP of the invoices submitted by the Contractor to the address specified in 9.1 below, upon achievement of the corresponding milestones and for the following amounts:

MILESTONE[4] AMOUNT TARGET DATE

Upon..... ...... ./../....

......... ...... ../../....

Invoices shall indicate the milestones achieved and corresponding amount payable.

4. Special conditions[5]

4.1 The responsibility for the safety and security of the Contractor and its personnel and property, and of UNDP’s property in the Contractor’s custody, rests with the Contractor.

4.1.1. Security

The Contractor shall:

(a) put in place an appropriate security plan and maintain the security plan, taking into account the security situation in the country where the services are being provided;

(b) assume all risks and liabilities related to the Contractor’s security, and the full implementation of the security plan.

4.1.2 UNDP reserves the right to verify whether such a plan is in place, and to suggest modifications to the plan when necessary. Failure to maintain and implement an appropriate security plan as required hereunder shall be deemed a breach of this contract. Notwithstanding the foregoing, the Contractor shall remain solely responsible for the security of its personnel and for UNDP’s property in its custody as set forth in paragraph 4.1 above.

4.2 Audits and Investigations

Each invoice paid by UNDP shall be subject to a post-payment audit by auditors, whether internal or external, of UNDP or the authorized agents of the UNDP at any time during the term of the Contract and for a period of three (3) years following the expiration or prior termination of the Contract. The UNDP shall be entitled to a refund from the Contractor for any amounts shown by such audits to have been paid by the UNDP other than in accordance with the terms and conditions of the Contract. Should the audit determine that any funds paid by UNDP have not been used as per contract clauses, the company shall reimburse such funds forthwith. Where the company fails to reimburse such funds, UNDP reserves the right to seek recovery and/or to take any other action as it deems necessary.

4.2.1 The Contractor acknowledges and agrees that, at anytime, UNDP may conduct investigations relating to any aspect of the Contract, the obligations performed under the Contract, and the operations of the Contractor generally. The right of UNDP to conduct an investigation and the Contractor’s obligation to comply with such an investigation shall not lapse upon expiration or prior termination of the Contract. The Contractor shall provide its full and timely cooperation with any such inspections, post-payment audits or investigations. Such cooperation shall include, but shall not be limited to, the Contractor’s obligation to make available its personnel and any documentation for such purposes and to grant to UNDP access to the Contractor’s premises. The Contractor shall require its agents, including, but not limited to, the Contractor’s attorneys, accountants or other advisers, to reasonably cooperate with any inspections, post-payment audits or investigations carried out by UNDP hereunder.

4.3 Anti-terrorism

The Contractor agrees to undertake all reasonable efforts to ensure that none of the UNDP funds received under this Contract are used to provide support to individuals or entities associated with terrorism and that the recipients of any amounts provided by UNDP hereunder do not appear on the list maintained by the Security Council Committee established pursuant to resolution 1267 (1999). The list can be accessed via http://www.un.org/Docs/sc/committees/1267/1267ListEng.htm. This provision must be included in all sub-contracts or sub-agreements entered into under this Contract.

4.4 The advance payment to be made upon signature of the contract by both parties is contingent upon receipt and acceptance by UNDP of a bank guarantee for the full amount of the advance payment issued by a Bank and in a form acceptable to UNDP.[6]

5. Submission of invoices

5.1 An original invoice shall be submitted by mail by the Contractor for each payment under the Contract to the following address:

.................……………………………………………………………………………………………………………….

5.2 Invoices submitted by fax shall not be accepted by UNDP.

6. Time and manner of payment

6.1 Invoices shall be paid within thirty (30) days of the date of their acceptance by UNDP. UNDP shall make every effort to accept an invoice or so advise the Contractor of its non-acceptance within a reasonable time from receipt.

6.2 All payments shall be made by UNDP to the following Bank account of the Contractor:

______________________ [NAME OF THE BANK]

______________________ [ACCOUNT NUMBER]

______________________ [ADDRESS OF THE BANK]

7. Entry into force. Time limits.

7.1 The Contract shall enter into force upon its signature by both parties.

7.2 The Contractor shall commence the performance of the Services not later than ______ [INSERT DATE] and shall complete the Services within _____________ [INSERT NUMBER OF DAYS OR MONTHS] of such commencement.

7.3 All time limits contained in this Contract shall be deemed to be of the essence in respect of the performance of the Services.

8. Modifications

8.1 Any modification to this Contract shall require an amendment in writing between both parties duly signed by the authorized representative of the Contractor and __________ [NAME AND TITLE] UNDP.

9. Notifications

For the purpose of notifications under the Contract, the addresses of UNDP and the Contractor are as follows:

For the UNDP:

___________________ [INSERT CONTRACT REFERENCE & NUMBER]

Telex:

Fax:

Cable:

For the Contractor:

[INSERT NAME, ADDRESS AND TELEX, FAX AND CABLE NUMBERS]

Name:

Address:

Telex:
Fax:
Cable:

If the above terms and conditions meet with your agreement as they are typed in this letter and in the Contract Documents, please initial every page of this letter and its attachments and return to this office one original of this Contract, duly signed and dated.

Yours sincerely,

[INSERT NAME AND TITLE]

For [INSERT NAME OF THE COMPANY/ORGANIZATION]

Agreed and Accepted:

Signature ____________________________

Name: __________________________

Title: ____________________________

Date: _____________________________

[1] Refer to UNDP policies and procedures for more clarification and details

[2] If there are updates to the technical proposal or correspondence exchanged in clarification of certain aspects, reference them too, provided that they are fully acceptable to UNDP. Otherwise, aspects which resolution is pending should be dealt with in this letter itself or in the Terms of Reference, as appropriate.

[3] This version of section 3 is to be used for fixed price contracts. Fixed price contracts should normally be used when it is possible to estimate with reasonable accuracy the costs of the activities which are the subject of the Contract.

[4] If an advance payment is granted, define the first milestone as "upon signature of the contract by both parties". Please note that advance payments should be granted only in exceptional cases, and that they must comply with UNDP policies and procedures.

[5] Under this Section, you may propose special clauses in order to adapt the model contract to the specific situation. In this sample clause 4, several clauses of common use are given. If they are not required, they should be deleted. If there are no special conditions, please choose the alternative version of 4 in order to conform to clause 1.1.

[6] This clause must be used when an advance payment of $50,000 or more is granted to the Consultant and may be used for payments under $50,000 when appropriate. Please note that advance payments should be exceptional, whatever their amount and must comply with UNDP Financial Regulations and Rules.

RFP CLO Audit.doc

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