Ukraine DBS Audit and Assurance Sources Sought Notice.pdf

Release Date: February 24, 2023 Response Due Date: March 7, 2023, 17:00 (Kyiv time)

I. Summary

This Sources Sought Notice (SSN) seeks sources capable of providing audit and assurance services related to budget support provided by USAID to the Government of Ukraine.

II. Background

Direct Budget Support (DBS) is financial support provided by the United States Government (USG) through the US Agency for International Development (USAID) to the Government of Ukraine (GOU), either directly or through intermediaries such as the World Bank (WB), to help finance non-military budget expenditures for critical public services, such as education, pensions, health care, social subsidies, emergency, and rescue services. To date, since April 2022, USAID, acting on behalf of the USG, has obligated $15.5 billion (B) in DBS for the GOU through three WB mechanisms:

● $1B obligated to the Financing of Recovery from Economic Emergency in Ukraine Multi Donor Trust Fund (FREE Ukraine MDTF) in Tranche 1.

● $1.7B obligated to the Special Transfer to Ukraine Single-Donor Trust Fund in Tranche 3.

● $12.8B obligated to the Public Expenditures for Administrative Capacity Endurance Multi

Donor Trust Fund (PEACE MDTF) in Tranches 2, 4, 5 and 6.

In addition, USAID intends to provide an additional $7.4B of DBS funds to the GOU in the coming months, through mechanisms still to be determined. All of the funds appropriated by the U.S.

Congress to USAID for DBS come with rigorous oversight, accountability and reporting requirements.

III. Request for Sources and Qualifications

To verify that DBS funds provided to the GOU have been used for their intended purposes and as agreed to by the GOU, USAID seeks information from audit and assurance firms who have experience and expertise in the following and related areas:

● Conducting audit and non-audit procedures of public sector entities using internationally accepted auditing and assurance methods;

● Assessing the accuracy and completeness of financial records for multiple categories and layers of institutional and individual recipients through multiple funding sources;

● Assessing audits and procedures performed by others, such as the WB and GOU, on use of DBS funds to inform the audits and procedures to be performed hereunder;

● Testing and assessing the adequacy and effectiveness of relevant internal controls;

● Identifying potential areas of risk or misuse of the funds;

● Recommending necessary improvements to financial management systems and internal controls.

*Local entity means an individual, a corporation, a nonprofit organization, or another body of persons that-- (1) is legally organized under the laws of; (2) has as its principal place of business or operations in; (3) is majority owned by individuals who are citizens or lawful permanent residents of; and (4) managed by a governing body the majority of who are citizens or lawful permanent residents of; a country receiving assistance from funds appropriated under title III of this Act. (c) For purposes of this section, ‘majority owned’ and ‘managed by’ include, without limitation, beneficiary interests and the power, either directly or indirectly, whether exercised or exercisable, to control the election, appointment, or tenure of the organization's managers or a majority of the organization's governing body by any means.

Interested parties wishing to participate should submit an expression of interest outlining their qualifications and experience, including references. Qualifications and experience should include the following, at a minimum:

1. If you or an affiliate are legally registered to perform assurance activities in Ukraine and are able to obtain necessary access to systems, data, and documentation from the concerned host government institutions. Include also if the firm is part of a larger international network;

2. Description of relevant prior audit and assurance engagements including scope and engagement objective, level of assurance, budget, client, period of performance, place of performance, and location of the client. Please include a reference;

3. Overview of firm staffing, including number of partners, directors, etc., with years of experience, areas of technical expertise, certifications, and Ukrainian language capability;

4. Firm-level quality control processes and capabilities, including peer review;

5. Identification if your firm is “local”*;

6. Contact information, address, and Managing Partner point of contact.

Expressions of interest are requested to be limited to 10 pages, and use standard font size, line spacing, and margins. There is no required format and Excel, PDF, and/or Word may be used.

Responses should be clearly organized to address the requested information.

HOW TO SUBMIT A RESPONSE

Interested parties wishing to participate should submit their capabilities statements electronically to Carter Saunders, Contracting and Agreements Officer, at casaunders@usaid.gov with a copy to Elena Parinova, A&A Specialist, at eparinova@usaid.gov. Responses to this SSN will be accepted as stated above in response to the due date. You will receive only an electronic confirmation acknowledging receipt of your response, but will not receive individualized feedback or suggestions.

Per Federal Acquisition Regulation (FAR) 52.215-3: This SSN must not be construed as a commitment by the U.S. Government to issue any solicitation, award any grant, or pay for any information submitted as a result of this notice. Responders are responsible for adequately marking proprietary or restricted information contained in their response. No basis for claims against the U.S.

Government shall arise as a result of a response to this SSN or from the U.S. Government’s use of such information. Specific questions about this SSN should be directed only to the email addresses identified above.

Regards, Carter Saunders, CPA Contracting and Agreements Officer USAID/Ukraine