3_-_J.2__Forensic_Audit_RFTOP.docx

Sample RFTOP 2 Request for Task order Proposal Forensic Audit of the National Medical Stores in Somalia

Background and Need:

CDC works with several Host government agencies and Non – governmental organizations in Somalia to implement the President’s Emergency Plan for AIDS Relief (PEPFAR) activities. These efforts include interaction via acquisition and assistance funding mechanisms with international government agencies, small local recipients, academic institutions and private businesses at the CDC field office in Somalia. CDC must exercise proper oversight in the business services areas of acquisition, assistance, and management and sometimes additional resources are required to facilitate oversight and internal controls over grants and cooperative agreements in the international arena.

Foreign grant recipients are subject to the same audit requirements as for-profit organizations, which are specified in the Code of Federal Regulations (CFR) at 45 CFR 74.26(d). 45 CFR 74.26(d) requires an audit if the recipient expended a total of $500,000 or more under one or more HHS awards (either as a direct recipient or as a sub-recipient) during their fiscal year. The terms and conditions of the official Notice of Award (NoA) contain this requirement. These audits should assure that CDC-awarded funds are spent in accordance with the terms and conditions of the grant and that all charges made to the grant conform to US Government standards for cost allowability and allocability.

Tasks and Requirements:

The National Medical Stores (NMS) is one of Somalia’s government agencies which was awarded a cooperative agreement for the procurement, warehousing and distribution and Tracking of Cotrimoxazole, HIV/AIDS Related Laboratory Commodities and Supplies including HIV Test Kits in Somalia under the Presidents’ Emergency Plan for AIDS Relief (PEPFAR). Under the Current Cooperative Agreement, several complaints have been raised about NMS services including short and incomplete deliveries of laboratory commodities, delayed payment of outstanding bills. CDC requires a forensic audit to determine the extent of fraud, embezzlement or impropriety that would lead to the issues mentioned above. In light of all the foregoing concerns, the purpose of this contract is to obtain a forensic audit on the National Medical Stores activities as they relate to the CDC cooperative Agreement for the last three budget years, Budget Year one (9/30/2010 – 9/29/2011), Budget Year two (9/30/2011 – 9/29/2012) and Budget Year three (9/30/2012 – 9/29/2013). This audit should reveal whether there has been mismanagement of funds including theft of funds or commodities or incompetence. A copy of the financial audit previously performed will be provided to the successful offeror.

The resulting forensic audit should:

1. Conform to Generally Accepted United States Government Auditing Standards (GAGAS).

2. Provide sufficient information to assure that CDC funding is being used exclusively to support the purposes of the grant and is not being misapplied, misused, or unaccounted for.

3. Report on the status and reliability of the grantee’s:

a) Purchasing system, including the use of acquisition techniques that conform with standards outlined in 45 CFR 74, sections 40 through 48, including:

§74.41 Recipient responsibilities §74.42 Codes of conduct §74.43 Competition §74.44 Procurement procedures §74.45 Cost and price analysis §74.46 Procurement records §74.47 Contract administration

Special Considerations:

The contractor shall be a US based or an affiliate of a US based Audit firm and knowledgeable in generally accepted accounting principles, government accounting principles and the forensic audit function.

Geographic Location: Somalia. Travel and accommodations shall be in accordance with the Federal Travel Regulations.

Reporting Requirements and Deliverables:

The Contractor shall write and submit all reports and summaries for review and approval to the COR. The items specified for delivery are subject to the inspection and approval by the COR before final acceptance. The Contractor shall be required to make revisions deemed necessary by the COR.

The Contractor shall provide the following Deliverables:

Delivery or Performance-period Requirements:

The period of performance is twelve (12) months from the date of award.

Place of Performance:

Mogadishu, Somalia Performance-Based Matrix:

Surveillance "Incentives" Positive or Negative

Submission of the following CDC Somalia-

· Draft Specifiable Audit Report

· Final Specifiable Audit Report with recommendations for corrective actions

Negative: Performance evaluations will include any services that failed to meet acceptable standards and will be used in determining awards for future task orders for similar services.

FAR 52.246-4 – Inspection of Services – Fixed Price