TERMS OF REFERENCE AND REQUEST FOR PROPOSALS FOR AN AUDIT OF CUTTINGTON UNIVERSITY

1. Introduction

Cuttington University, a tertiary institution of the Episcopal Church of Liberia, maintains three campuses: Suakoko, Bong County (undergraduate), Kakata (junior college), and Monrovia (graduate & professional school). Despite its reputation for producing highquality students, the institution faces challenges from rising costs and a constrained national economic environment, impacting enrolment growth and financial sustainability.

To address these challenges, the Board of Trustees invites proposals for an independent audit of the University’s financial management practices, covering the period 2020–2024. This audit aims to assess financial accountability, transparency, and internal control effectiveness, ensuring alignment with modern best practices in higher education institutions of similar size and complexity.

2. Scope of the Engagement

The appointed auditor shall provide an independent assessment of the financial health, internal controls, and business model of Cuttington University. The audit shall focus on the following areas:

2.1 Financial Statement Examination

1. Review the university’s financial records for accuracy, completeness, and compliance with International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (US GAAP).
2. Assess whether financial statements present a true and fair view of the university’s financial position and cash flow.

2.2 Internal Control Evaluation

1. Examine the robustness of the university’s financial and management information system, including registration, payroll, and other human resource functions.
2. Assess the reliability and efficiency of financial reporting, including:
   1. Recording and invoicing of all goods and services provided by the institution.
   2. Recording and reporting of all goods and services delivered to the institution.
   3. Fixed Assets Management, including depreciation calculations.
   4. Accounts Payable and Receivable.
   5. Annual Balance Sheet and Income Statements.
   6. Compliance with regulatory and tax obligations.

2.3 Risk Management & Fraud Prevention

1. Identify financial risks, including potential mismanagement of funds, fraud, and inefficiencies in resource allocation. II. Evaluate the sufficiency of internal controls in mitigating risks.

2.4 Revenue & Expenditure Assessment

1. Assess revenue generation strategies, including tuition, grants, and other sources. ii. Evaluate the sustainability of operational expenditures in relation to revenue trends.

2.5 Governance & Compliance

1. Review governance structures and financial policies in place for compliance with national and international standards. II. Assess procurement processes for transparency and cost-effectiveness.

3. Audit Methodology

The audit shall be conducted in accordance with International Standards on Auditing (ISA) and best practices in financial auditing for higher education institutions. The methodology shall include:

1. Planning and Risk Assessment: Understanding the financial operations and identifying key risk areas.
2. Testing and Evaluation: Performing substantive and analytical procedures, including sampling of transactions and document verification.
3. Reporting: Providing draft and final audit reports, including a Management Letter highlighting key findings and recommendations.

4. Reporting & Deliverables
   • Draft Report A draft audit report shall be submitted for management review, allowing for discussions and clarifications before finalization.

• Final Report The final audit report shall include:

o Audited financial statements with the auditor’s opinion. o Management Letter addressing key financial weaknesses and recommendations. o Compliance assessment with applicable accounting and regulatory standards. o Observations on internal controls and risk mitigation strategies.

5. Qualifications of the Auditor

Proposals should outline the qualifications of the firm and assigned personnel, including:

• Demonstrated experience in auditing higher education institutions or similar organizations.
• Membership with a recognized professional accounting body (e.g., ACCA, CPA, CA).
• Understanding of IFRS, US GAAP, and ISA.
• Experience with financial risk assessment and internal control evaluations.

6. Timeline & Duration

The audit is expected to be completed within 120 days from the commencement date. The specific start date and reporting deadlines will be agreed upon with the selected firm.

7. Fees & Payment Terms

The audit firm shall provide a clear breakdown of fees, including:

• Professional service fees.
• Out-of-pocket expenses (travel, accommodations, documentation costs, etc.).

8. Submission of Proposals Sealed proposals should be sent to the:

Chairman of the Board of Trustees, Cuttington University

Trinity Cathedral, 99 Broad Street

Monrovia, Liberia,

Attn: Audit Committee by 4:30 p.m. on February 28, 2025.

Proposals should include:

1. Technical proposal (audit approach and methodology).
2. Financial proposal (breakdown of fees and costs).
3. Team composition and qualifications. 4. References from similar assignments.

For inquiries, please contact:

Chairman, Board of Trustees

Cuttington University

Trinity Cathedral, 99 Broad Street

Monrovia, Liberia

Attn: Audit Committee