Request for Proposal # 2021-052: Internal Audit Services

I. Objective of RFP
PATH invites certified public accounting and/or specialized professional services firms with
experience performing audits in a global context to submit proposals for internal audit services,
augmenting the services of its Internal Audit team, including but not limited to:
 Financial controls audits,
 Compliance audits,
 Follow-up audits and validation testing, and
 Special investigations.

Either wholly outsourced or under the direction of PATH’s internal audit lead, these services
primarily examine PATH offices (Country Program offices, or project offices), donor-funded
project audits and sub-contractor partner audits on a contractual basis as necessary.

In addition to conducting audits, PATH’s Internal is also seeking a thought partner to advise on
audit tools development as needed.

Firms responding to this Request for Proposal (RFP), herein after referred to as “Proposers” are
free to bid either globally or for one or more countries. The term of the contract awarded to the
successful firm(s) will be three (3) years, with the option for two additional years for a maximum
contract period of five years.
II. Summary of Deadlines
Release of Request for Proposal November 5, 2021
Confirmation of interest requested (optional) November 12, 2021

Fact-finding questions November 15, 2021

Proposals due November 29, 2021
Interviews with short-listed suppliers December 9, 2021
Bidders notified of decision December 31, 2021

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Note that PATH reserves the right to modify this schedule as needed. All parties who submit a
confirmation of interest will be notified simultaneously by email of any changes. PATH may
amend any term or requirement of this RFP at any time before award of a contract. If PATH
materially alters or amends the RFP after submission of proposals, Proposers will be given an
opportunity to amend their proposals as directed by PATH.

III. Glossary of Abbreviations

AMEE Africa, Middle East & Europe
GRC Governance, Risk & Compliance
RFP Request for Proposals
US$ United States Dollar

IV. PATH General Background

PATH is a leader in global health innovation. An international nonprofit organization, we save
lives and improve health, especially among women and children. We accelerate innovation
across five platforms—vaccines, drugs, diagnostics, devices, and system and service innovations
—that harness our entrepreneurial insight, scientific and public health expertise, and passion for
health equity. By mobilizing partners around the world, we take innovation to scale, working
alongside countries primarily in Africa and Asia to tackle their greatest health needs. Together,
we deliver measurable results that disrupt the cycle of poor health. Learn more at www.path.org.

Headquartered in Seattle, PATH has approximately 1,500 staff operates in more than 47
countries, with offices in 21 countries in three regions as shown in the table below:

No. Africa Region Asia, Middle East & Americas

Europe (AMEE) Region
1. Democratic Republic of Congo (DRC) 13. Belgium 20. United States of America
2. Ethiopia 14. China 21. Peru
3. Ghana 15. Myanmar
4. Kenya 16. Switzerland
5. Madagascar 17. Ukraine
6. Malawi 18. Vietnam
7. Mozambique 19. India
8. Senegal
9. South Africa
10. Tanzania
11. Uganda
12. Zambia

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PATH has over 300 active programs in the countries in which it operates as at September 2021.

V. PATH Funding and Financial Management

A broad and diverse group of funders support PATH’s programs including advocacy and policy,
malaria control and elimination, vaccine innovation, diagnostics, medical devices and health
technologies, and others. In 2020, approximately 52% of funding came from foundations; 21%
from the US government agencies; 18% from other governments, Non-Governmental
Organizations (NGOs), multinationals; and 9% from corporations, individuals, and investments.
Program-related expenses accounted for 86% of the organization’s total expenditure in 2020.
PATH’s funders include but are not limited to Bill and Melinda Gates Foundation (BMGF),
United States Aid Agency for Development (USAID), UNITAID, UK Foreign, Commonwealth
& Development Office (FCDO)/aka DFID, Centre for Disease Control and Prevention (CDC),
Global Alliance for Vaccines and Immunization (Gavi), UNDP, Conrad Hilton Foundation,
University of Washington, etc. The Annual Reports and Consolidated Financial Statements
(2018 – 2020) with background data is available on our website at www.path.org.

PATH uses Unit4 Business World, a cloud-based Enterprise Resource Planning (ERP) system to
manage its financial records and business processes across all the countries, as well as a variety
of other enterprise class cloud-based applications such as Salesforce and Tableau.

In addition to its regional geographic structure, PATH’s major divisions include EBusiness,
Finance & Operations, Essential Medicines, External Affairs, Human Resources and Legal &
Research Affairs. PATH’s global operations are supported by shared services, which include the
following key departments:
 Business Development
 Executive
 External Affairs
 Finance Planning and Analysis
 Global Accounting Services
 Global, Facilities, Travel and& Security
 Human Resources
 Legal Affairs
 Office of Grants and Contracts
 Procurement

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VI. PATH Audit Structure
PATH has an Internal Audit function governed by an Internal Audit Charter that prescribes the
mandate and responsibilities of the function. With staff located in Kenya and India, the function
provides internal audit assurance services to PATH offices, principally outside the US. The
function is under the broader Governance Risk and Compliance department at PATH. Audits are
conducted in accordance with the International Standards on Auditing.

Where branch or subsidiary financial reporting is required, individual countries’ financial

statements are either compiled internally or externally and if required audited by external audit
firms in compliance with the statutory requirements in each country. Internal Audit assignments
are conducted pursuant to an audit plan prepared annually and approved by the Audit Committee
of the Board of Directors. The audit plans are developed based on an assessment of activities
using a risk-based methodology, including input of key stakeholders. PATH’s internal audit
manager reports quarterly to the board on the results of audits, progress against the annual plan
and status of follow up on prior audit findings.

Based on firm location of practice, experience and needs as determined in PATH’s audit plans,
prequalified firms will be engaged to perform specified bodies of work.

VII. Scope of Work

The successful firm(s) will be expected to provide internal audit review of the identified PATH
offices’ internal control processes, risk management, governance, accuracy of accounting and
financial records, as well as compliance with the country-specific laws, statutory requirements,
and donor specific requirements. The internal audit review shall comprise the following key
phases:

Phase I: Risk Assessment

Hold meetings with key staff and perform a risk assessment on areas to prioritize for internal
audit work.

Phase II: Audit planning

 Identify the audit scope based on the risk areas identified in Phase 1 above.
 Meet the country leadership, relevant regional leaders, and internal audit team to discuss the
audit scope and agree on the timing.
 Design audit procedures to address the risk areas.

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Phase III: Performance of the Audit
 Review the internal control environment, governance, internal controls around business
processes, and assess the design, implementation, and operating effectiveness of such
controls. Such processes should include Human Resource management, procurement, awards
and subawards management, payroll, accounting, and finance.
 Review the financial records of the PATH country program for accuracy, completeness,
validity, and existence.
 Interview the relevant management staff, review of documentation and physical verification
as applicable. A review of policies, country-specific legislations, statutory and donor-specific
requirements will also be included.
 Provide periodic updates to the internal audit team on the audit progress, inclusion in the
entry and exit meetings and revision of the audit scope (if applicable) and final report
circulation

Phase IV: Reporting and Communication

 Prepare a written report on the results of the internal audit, signed by the Engagement
Partner.
 The report should include at a minimum: background, audit scope, audit methodology,
finding(s) raised, risks identified, recommendations on how to address the risks, as well as
management comments and action plans.
 Present the audit report findings to the Governance Risk & Compliance (GRC) department
and provide feedback on the audit process.

Note: PATH’s Internal Audit team prepares quarterly reporting to the Board Audit Committee.
Presentation directly to the audit committee would be requested on an engagement specific basis
from the Internal Auditor to the auditing firm.

Additional Services:
Internal Audit Team staff augmentation:
PATH may seek to augment internally performed audits with additional auditors or expertise
areas, under the specific direction of a PATH lead internal auditor

Internal Audit Advisory Services:

Consulting services related to delivery of internal audit services or specific technical services as
required. Please provide a list of advisory services provided.

VIII. Minimum Proposal Requirements

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The following are the minimum qualifications for this RFP. Proposals that do not meet these
requirements will be rejected.

 Proposers must be either a firm of Certified Public Accountants (CPA or professional

services firms that specialize in assurance and internal audit services in compliance with
International Standards of Auditing). The Lead Partner must be a licensed CPA.
 Proposer must be licensed and/or registered to conduct business in the country or
countries they are proposing to work (see Section IV).
 Proposer must be a firm with a minimum of 10 years’ experience in providing internal
audit services.
 Proposer must provide at least three (3) client references to whom your firm has provided
similar services as requested in this RFP, preferably international not-for-profit
organizations in the health sector. For each reference, provide the details of the
assignment, assignment dates, services provided to the clients, as well as contact
information (name, address, and telephone number) for a person at the client’s firm
familiar with the assignment done.
 Proposer must include a signed cover letter from a person who is authorized to bind the
Proposer, ideally the Lead Partner. Proposals submitted without a signed cover letter will
be rejected. The cover letter must contain a statement that no official or employee of the
Proposer has an interest, directly or indirectly, in this RFP financially or otherwise, unless
otherwise stated in the RFP.
 Proposal pages must be numbered, and the length must be limited to not more than
twelve (12) pages, excluding the cover letter and references. Each proposal will be
evaluated based on the contents and not the length.

IX. Technical Proposal

Each proposal must contain the following information about the firm and its professional
personnel.

A. EXECUTIVE SUMMARY
Proposer must include a high-level overview of the proposal.

B. FIRM BACKGROUND
Provide background information of your firm. This should include a brief history of firm,
affiliate businesses or organizations, ownership, areas of operation, number of employees and
years of experience in providing internal audit services.

C. STAFFING AND ORGANIZATION STRUCTURE

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Provide information on your firm’s organization structure and reporting lines, including the
key management team.

D. EXPERIENCE
For each country being proposed:
Provide an overview of the firm’s experience in conducting internal audits of international,
not-for-profit organizations, especially those in the health sector. Include specific experience
in conducting internal audits and donor-funded project audits in the countries where PATH
operates per Section IV of this RFP, and any of the 47 countries where PATH operates as
indicated on the PATH website www.path.org.

Describe any services offered by your firm that sets it apart from others, or any distinctive
qualifications your firm has for providing auditing services to PATH. Please include
information related to the following:
 Nature of Service
 Reference examples
 Size of the work
 Type of industry

E. ENGAGEMENT TEAM
Provide a brief description of the client engagement team that will conduct audits and other
services and detail their roles and responsibilities on the Engagement Team. Describe their
relevant experience and years of experience conducting internal audits of organizations and
donor-funded projects. Identify the Lead Partner of the engagement and/or persons identified
as primary point of contact for the engagement. Provide details of back-up or standby team
members. Resumes may be appended to the proposal as an appendix and not included in the
12-page limitation.

F. APPROACH AND METHODOLOGY

Describe your firm’s risk assessment approach and audit methodology to be used in
conducting the audit of PATH country programs and project-funded audits in countries
where PATH operates, in response to the Scope of Work, using the following hypothetical
scenarios:

Country Program Audit:

The Country Program (CP) has a total of 80 staff, located in the main office at the capital and
two (2) field offices across the country where the projects are implemented. There are 30
awards implemented in the country, funded by 7 main donors. The Income statement and
Balance sheet for 1 financial year under review are as shown below:

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 Income statement Balance sheet
Item Amount (US$ in M) Item Amount (US$ in M)
Revenue 19.5 Assets 3.9
Expenditure* 18.7 Liabilities 1.8
Fund balance 0.8 Net Assets 1.1
* The approximate number of expense transactions in the CP are 10,000.

The representative areas to be audited are as below:

 Compliance with regulatory requirements, PATH policies and donor requirements
 Procurement (includes all aspects of procure-to-pay)
 Sub-awards management
 Accounting and financial management (including cash handling, staff advances,
reconciliations)
 Human Resources and Payroll management

Project Audit:
A 5-year project funded by USAID with a total budget of US$ 20M. The project expenditure
for the one year under review is US$ 5M. There are 4 sub-recipients working under the
project with a cumulative expenditure of US$ 2M for the one year under review. The project
has approximately 290 expense transactions.

The representative audit areas for the project are as below:

 Compliance with the award terms (prime) and sub-award terms (sub-recipients)
 Budget monitoring
 Review project expenditures to determine if the costs are allowable, allocable and
reasonable.
 Internal control review of critical processes e.g. procurement, financial reporting

For each of the above scenarios, provide the following information on your firm’s risk
assessment and methodology:

1) Provide a representative audit plan and corresponding budget based on similar audits
conducted by your firm

2) Describe the audit system to be used by the firm (if any) in conducting the internal
audits, and how the audit programs will be tailored to meet PATH’s requirements.

3) Provide details on the method of documenting the audit work, including details on
where the audit working papers will be maintained and your firm’s policy on the period

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 of maintaining audit working papers. Also indicate whether there are any circumstances
where the documentation will not be shared with PATH upon request.

4) Describe how the firm will maintain quality of the audit work conducted.

5) Provide details of information to be included in the audit reports for internal audit
work completed, for both country program and donor-specific internal audits.

6) Describe your process for working with PATH’s internal audit team on assignment(s),
including any support you might need for audit success, economy and efficiency from the
internal audit team in performing the work

7) Provide details on how your firm will familiarize with PATH’s internal controls and
processes, highlighting how this will lead to an efficient audit process

G. SAMPLE DOCUMENTS

a. Sample Audit Report:

Provide a sample internal audit report for internal audit work completed for both country
program and donor-specific audit (agreed upon procedure), taking into consideration the
information included in Phase IV: Reporting and Communication of this proposal.

b. Sample Engagement Letter

Provide a sample Engagement Letter for the Country program and project-specific audit
based on the scenarios under Paragraph F above. The Engagement Letter should include
the scope of the engagement, timeline for the assignment, engagement team members,
deliverables, fees and key contractual clauses (terms of service). Proposers can add
additional information to the Engagement Letter as per their firm’s standard practice.

H. LOCATION OF FIRM
Specify whether the firm has physical offices in any of the countries proposed. Where the
Proposer has no offices, provide details of how the internal audit work will be done.

I. LOCATION OF AUDIT(S)
List the country or countries for which the firm is proposing to conduct internal audits. Give
reference to countries where PATH has offices (see Section III) or where PATH operates.
Include expertise and experience the firm has in country-specific legislations, statutory
requirements, local laws and specific donors in the countries identified, that would be
relevant to conducting the internal audits. Specify whether the firm has physical offices in
any of the countries proposed. Where the Proposer has no offices, provide details of how the

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 internal audit work will be done. The narrative should be no more than one (1) page per
country.

J. LANGUAGES
Provide a list of languages the firm is fluent in. Please note that all documents relating to the
audit assignments should be available in English, including the audit reports.

K. TIMELINE
Provide a representative timeline/schedule for the duration of the engagement to conduct
internal audit services for 1) a country program (for one financial year) and 2) a donor-
funded project audit (for one year) for similar work you may have performed. Include the
expected number of days for each phase identified in Section VII: Scope of Work. Where the
Proposer bids for multiple countries, specify whether the assignments will be conducted
concurrently, or if not, the duration of time between the two assignments.

L. FIRM’S MEMBERSHIP
Provide information about your firm’s membership to professional organizations, such as the
Institute of Internal Auditors (IIA), Institute of Chartered Certified Accountants, Certified
Public Accountants.

M. SAMPLE CONTRACT FOR THE SERVICES OF THIS RFP

Provide sample contract or Terms & Conditions from your firm for the services requested in
this RFP.

X. Financial Proposal
Specific engagements will be awarded based on the financial terms accepted through this
proposal process and as subject to any best and final offer. Each body of work will be agreed to
through specific engagement letter or task order, with final scope of work to be determined by
PATH Internal Audit.
Proposal must include the following:
 Hourly rate by staff level
 Proposed annual rate % increase maximum
 Estimated budget for the hypothetical scenario described in F and as described below.

Hypothetical Scenario Estimated Budget:

Provide itemized costs for the total scope of this project, based on the scope of work outlined in
Section VII. Estimated budgets should include itemized costs for key elements of the scope of
work, as follows:

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  Percent participation in total level of effort for each member of the Engagement Team.
 Hourly rates for each member of the Engagement Team presented in US$ and clearly
indicate the relevant taxes (including withholding taxes).
 Estimated total level of effort and associated costs.

Using the Excel spreadsheet template titled “2021-052 - Internal Audit Bid Template”, detail
the costs for both the hypothetical Country Program and the Project Audit commensurate with
your approach described in Section F. There is one worksheet each within the template (as well
as a worksheet to itemize the rates for all proposed staff levels, describe ODCs and maximum
% increase to hourly rates proposed). The costs should be presented in United States Dollars
(US$), clearly indicating the relevant taxes (including withholding taxes).

The proposal should clearly state all assumptions made in estimating the audit fees. Itemize all
costs, e.g., agency costs, agency fees, sub-contracted resources, administrative costs, supplies,
tax, other direct costs, etc. and provide a detailed breakdown of major cost components.

XI. Proposal Evaluation Criteria

Each Proposal submitted by the due date will be reviewed for compliance with the minimum
requirements of this RFP. Proposals that do not meet these requirements will be rejected. PATH will then
review and evaluate the responsive proposals according to the evaluation criteria outlined below. PATH
may request clarification and/or additional information from any or all proposers.

Evaluation Criteria for Selection

The following is a list of significant criteria against which proposals will be assessed. The criteria are
listed in order of priority; however they are not weighted. PATH reserves the right to include additional
criteria.

 Relevant experience in providing internal audit services to not-for-profit organizations

comparable to PATH.
 Responsiveness to the scope of work in the proposed approach and methodology, including
quality of audit report samples.
 Relevant experience auditing United States Government-funded projects, e.g., USAID, CDC,
etc.
 Responses to the Technical Proposal requirements.
 Professional qualifications and experience of the assigned personnel.
 Rates and scenario budgets as detailed in the Financial Proposal.
 Quality of responses received from the references provided.

Interviews
PATH reserves the right to invite any or all the Proposers for interviews during the evaluation
process. The interview(s) will facilitate PATH’s further assessment of the Proposer’s ability to

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perform the work or any other evaluation criteria. The Partner and Key staff proposed as part of
the Engagement Team must be available for the interview/presentation.

Negotiation and Contracting

Contract(s) will be awarded to the Proposer(s) based on PATH’s evaluation of strengths of
responses to the selection criteria, the location of work served, and global footprint, whose
Proposal is determined to be responsive and in PATH’s best interests, subject to a determination
that the Financial Proposal is fair and reasonable, and that PATH gets the best value given the
requirements of the RFP.

After awarding the contract by PATH, the successful firm will be expected to submit a proposed
contract for the services described in this RFP. Any final contract will be reviewed by PATH’s
legal counsel and be in compliance with pertinent laws before it is signed.

PATH will not expressly or implicitly enter into a contract or agreement with a selected Proposer
until acceptable contractual terms are met. The successful firm must draw up a contract with
PATH in order to be awarded the contract. In case of failure to reach a mutual agreement on
contract terms, PATH will initiate negotiations with another Proposer.

XII. Instructions and Deadlines for Responding

A. PATH CONTACTS

Imelda Aura
Internal Audit Lead
ACS Plaza, 4th Floor | Lenana Road
Nairobi, Kenya
Email: iaura@path.org

Ben Aliwa
Director, Governance Risk & Compliance
ACS Plaza, 4th Floor | Lenana Road
Nairobi, Kenya
Email: baliwa@path.org

Procurement Contact:
Teresa Gingras
Global Procurement Officer
Seattle, Washington
Email: tgingras@path.org

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 B. CONFIRMATION OF INTEREST (OPTIONAL)
Please send a statement acknowledging receipt of this solicitation and your intent to respond
or not respond no later than November 12, 2021. Send the confirmation to the contacts listed
above.

C. FACT-FINDING QUESTIONS
Questions on this solicitation will be accepted via email to the contacts listed above through
November 15, 2021. Please note that responses will not be confidential except in cases where
proprietary information is involved. Inquiries after this date cannot be accommodated.

D. PROPOSALS DUE: NOVEMBER 29, 2021

Completed proposals should be submitted by email to the contacts listed above. The subject
line of the email should read: RFP # 2021-052 Internal Audit <Your Company Name>.

E. SELECTION OF SHORT-LIST
PATH reserves the right to select a short list from the bids received. PATH has the option to
interview and discuss specific details with those candidates who are on the short-list.

F. CONCLUSION OF PROCESS
Applicants will be notified of PATH’s decision by December 31, 2021. Final award is
subject to the terms and conditions included in this solicitation, as well as successful final
negotiations of all applicable terms and conditions affecting this work.

XIII: Terms and Conditions of the Solicitation

A. NOTICE OF NON-BINDING SOLICITATION
PATH reserves the right to reject any and all bids received in response to this solicitation and
is in no way bound to accept any proposal. PATH may withdraw and/or cancel this RFP at
any time before award of the contract.

B. CONFIDENTIALITY
All information provided by PATH as part of this solicitation must be treated as confidential.
In the event that any information is inappropriately released, PATH will seek appropriate
remedies as allowed. Proposals, discussions, and all information received in response to this
solicitation will be held as strictly confidential, except as otherwise noted.

C. CONFLICT OF INTEREST DISCLOSURE

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Suppliers bidding on PATH business must disclose, to the procurement contact listed in the
RFP, any actual or potential conflicts of interest. Conflicts of interest could be present if
there is a personal relationship with a PATH staff member that constitutes a significant
financial interest, board memberships, other employment, and ownership or rights in
intellectual property that may be in conflict with the supplier’s obligations to PATH.
Suppliers and PATH are protected when actual or perceived conflicts of interest are
disclosed. When necessary, PATH will create a management plan that provides mitigation of
potential risks presented by the disclosed conflict of interest.

D. COMMUNICATION
All communications regarding this solicitation shall be directed to appropriate parties at
PATH indicated in Section XII. Contacting third parties involved in the project, the review
panel, or any other party may be considered a conflict of interest and could result in
disqualification of the proposal.

E. ACCEPTANCE
Acceptance of a proposal does not imply acceptance of its terms and conditions. PATH
reserves the option to negotiate on the final terms and conditions. We additionally reserve the
right to negotiate the substance of the finalists’ proposals, as well as the option of accepting
partial components of a proposal if appropriate. PATH reserves the right to award the
contract, in whole or in part, to one or more firms.

F. RIGHT TO FINAL NEGOTIATIONS

PATH reserves the option to negotiate on the final costs and final scope of work and reserves
the option to limit or include third parties at PATH’s sole and full discretion in such
negotiations.

G. THIRD-PARTY LIMITATIONS
PATH does not represent, warrant, or act as an agent for any third party as a result of this
solicitation. This solicitation does not authorize any third party to bind or commit PATH in
any way without our express written consent.

H. PROPOSAL VALIDITY
Proposals submitted under this request shall be valid for 120 days from the date the proposal
is due. The validity period shall be stated in the proposal submitted to PATH.

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