External Financial Audit for Fiscal Year 2024

Issued by: INARA – International Network for Aid, Relief, and Assistance.

RFP Issue Date: April 22, 2025
Proposal Submission Deadline: April 30, 2025
Audit Start Date: May 1, 2025

1. INTRODUCTION
The International Network for Aid, Relief, and Assistance (INARA) is a U.S.-based 501(c)(3) nonprofit organization dedicated to providing access to life-altering medical and mental health care to children impacted by human-induced or natural disasters. Founded in 2015 by former CNN Senior International Correspondent Arwa Damon, INARA fills critical programmatic gaps by taking on cases that no other institution can handle.

INARA is seeking to engage a qualified external audit firm to conduct an independent financial audit for the fiscal year ending December 31, 2024. This audit will be conducted in accordance with Generally Accepted Auditing Standards (GAAS), with an emphasis on compliance with U.S. Generally Accepted Accounting Principles (GAAP) applicable to nonprofit organizations.

The objective of the audit is to assess the financial statements’ fairness, integrity, and compliance with statutory and regulatory requirements, as well as to evaluate internal controls, financial operations, and governance.

2. OBJECTIVES
The primary objectives of the financial audit are:

To express an independent auditor’s opinion on whether the financial statements present fairly, in all material respects, the financial position and activities of INARA in accordance with U.S. GAAP.

a) To ensure compliance with IRS Form 990 and other relevant tax and regulatory requirements for nonprofit organizations.
b) To evaluate the adequacy and effectiveness of internal financial controls, identifying any material weaknesses or deficiencies.
c) To provide a comprehensive assessment of donor restrictions, ensuring funds are utilized according to donor agreements and statutory requirements.
d) To identify any financial misstatements, errors, or fraudulent activity.
e) To assess the organization’s financial health, with particular focus on donor-restricted funds, unrestricted fund management, and grants compliance.

3. SCOPE OF WORK
The external audit firm will conduct a comprehensive review of the following areas:

3.1 Review of Financial Statements

i. Examine the year-end financial statements for INARA, ensuring they are in accordance with U.S. GAAP for nonprofit entities.
ii. Verify that all material transactions have been properly recorded and classified, ensuring proper fund allocation (restricted vs. unrestricted).
iii. Assess compliance with tax-exempt status and related IRS regulations.

3.2 Examination of Financial Records

Perform substantive testing and analytical procedures to evaluate accuracy and completeness of financial records, including:

i. General ledger and supporting transactions.
ii. Bank and cash reconciliation.
iii. Donor and grant management records.
iv. Procurement, payroll, and expense claims.

3.3 Evaluation of Internal Controls

i. Review internal controls over financial reporting, focusing on areas where material misstatements or mismanagement may occur.
ii. Document internal control deficiencies, if any, and assess the risk associated with these weaknesses.
iii. Perform a high-level review of procedures for procurement, expense authorization, and cash management.

3.4 Compliance with Regulatory and Donor Requirements

i. Review the organization’s compliance with donor agreements, ensuring proper reporting of donor-restricted and unrestricted funds.
ii. Assess INARA’s adherence to relevant local, federal, and international tax laws governing nonprofit organizations.
iii. Ensure compliance with GAAP and IRS Form 990 reporting requirements.

3.5 Audit of Financial Performance

i. Evaluate INARA’s financial performance by comparing actual results to the approved budget.
ii. Identify variances, and assess their causes, especially regarding donor expectations.

4. METHODOLOGY
The audit will be carried out using the following methodologies:

a) Risk-Based Audit Approach: The auditors will assess areas with the highest perceived risk of material misstatements.
b) Substantive and Analytical Testing: A combination of detailed testing and analytical reviews will be employed.
c) Interviews: Conduct discussions with senior management, financial staff, and board members to understand the internal controls and financial management processes.
d) Remote Audit Approach: The audit will be conducted remotely, with access to INARA’s financial records through QuickBooks Online Advanced and all supporting documents available within the system.
e) Data Analytics: The audit team will utilize data analytics to detect anomalies, inefficiencies, or compliance gaps across financial records.

5. DELIVERABLES
The audit firm will deliver the following:

a) Independent Auditor’s Report: An opinion on whether INARA’s financial statements are presented fairly in accordance with U.S. GAAP.
b) Management Letter: Identifying any significant deficiencies, material weaknesses, or recommendations for improvement in internal controls.
c) Audit Completion Memorandum: A comprehensive summary of audit procedures, findings, and matters requiring management’s attention.
d) Presentation of Findings: A formal presentation of audit results to INARA’s management. This will include a detailed discussion of key audit findings, recommendations, and next steps.

6. TIMELINE
a. Audit commencement: May 1, 2025
b. Draft report submission: June 15, 2025
c. Final report submission: June 30, 2025

7. QUALIFICATIONS AND EXPERIENCE
The audit firm must meet the following criteria:

– Legally registered and authorized to perform audits in any INARA operations countries (Turkey, Lebanon, Egypt, Afghanistan and Gaza).
– Demonstrated experience conducting financial audits for nonprofit organizations, particularly those operating under U.S. GAAP.
– Certified Public Accountants (CPAs) or professionals with equivalent credentials (e.g., ACCA, CA).
– Experience with auditing, including familiarity with cloud-based financial systems (e.g., QuickBooks Online Advanced).

8. CONFIDENTIALITY AND ETHICS
The audit firm shall adhere to the highest standards of confidentiality and ethics. All information obtained during the audit shall remain strictly confidential and shall only be used for the purpose of this engagement. The audit firm should be independent of INARA and disclose any conflict of interest if it has or arise during the audit process.

9. PROPOSAL SUBMISSION
Interested audit firms should submit proposals by April 30, 2025, which must include:

– Company Profile: Relevant experience with nonprofit audits and client portfolio.
– Team Composition: CVs and qualifications of audit team members, with emphasis on relevant experience.
– Timeline and Budget: Estimated cost for the audit, broken down by milestones and expected payment terms.

10. PAYMENT TERMS
The payment structure for this audit engagement will be as follows:

 50% upon the commencement of the audit.
 50% upon the final report submission and INARA’s management approval.

11. EVALUATION CRITERIA

Proposals will be evaluated based on:

– Experience with nonprofit audits and U.S. GAAP compliance.
– Team qualifications and relevant experience.
– Cost-effectiveness and budget proposals.