Hsrc external audit services for u.S. Federal awards — single audit, 80/20 preference, 70% functionality threshold

Audit period: 1 April 2025 – 31 March 2026 (Year 6 of Grant 2302 Cooperative Agreement).

Final audit report due: 10 December 2026.

Returnable documents — all must be completed, signed and submitted with the quotation:

• Company profile with CIPC registration certificate and evidence of authorisation to audit federally funded cooperative agreements such as CDC, including relevant certification.
• Audit methodology, with resources dedicated to completing the audit within one month (final report by 10 December 2026).
• List of staff assigned to the engagement, with roles, professional qualifications, years of relevant experience, technical abilities, and a one-page profile per staff member.
• Breakdown of hourly tariffs, inclusive of VAT, for each staff level.
• Comprehensive budget, inclusive of VAT, covering audit fees and incidental costs (travel and subsistence).
• Written reference letters on company letterhead, signed, not older than 2 years, from previous clients for CDC, federally funded or similar audit projects.
• Proof of audit status with the Independent Regulatory Board for Auditors (IRBA) or the Office of the Regional Inspector General per 45 CFR 75.509.

Disqualification risks:

• Failure to submit any of the compulsory information listed above results in the proposal not being evaluated and being disqualified.

Evaluation stages:

1. Functionality (minimum threshold 70% to proceed).
2. Price (80 points) and Specific Goals (20 points) under the 80/20 preference point system.

Functionality scoring (total 100 points):

• Reference letters (20 points): No relevant letter = 0; one = 10; two = 15; three or more = 20.
• Capacity (20 points):
• Collective years of auditing experience of proposed team (20 points): Less than 20 years = 5; 20–40 years = 10; 41–50 years = 15; above 50 years = 20.
• Team lead expertise (10 points): Average = 1–5; Good = 6–10.
• Experience in internal control and financial systems evaluation, and institutional/organisational development assessment (10 points): Less than 3 years = 0; 3–6 years = 5; 7 years and above = 10.
• Methodology (40 points):
• Approach (20 points): No approach = 0; Poor = 1–5; Fair = 6–10; Good = 11–15; Excellent = 16–20.
• Project plan with clear timelines (20 points): No plan = 0; Poor = 1–5; Fair = 6–10; Good = 11–15; Excellent = 16–20.

Price (80 points) and Specific Goals (20 points) total 100 points.

The HSRC requires an audit service provider to conduct the annual audit of the CDC grant for the period 1 April 2025 – 31 March 2026.

Grant details: Year 6 of Grant 2302 Cooperative Agreement: NU2GGH002302-05-09, with a budget for the full period of $2,105,000.00 (2025–2026 NCE period).

Audit location: HSRC Pretoria office; most audit activities may be done hybrid.

The audit must be conducted in accordance with GAGAS.

Scope includes:

• Financial statements presented fairly in accordance with GAAP.
• Schedule of expenditures of Federal awards.
• Internal control over Federal programs (low assessed control risk for major programs).
• Compliance with Federal statutes, regulations, and terms of Federal awards.
• Follow-up on prior audit findings.
• Completion and signing of the data collection form.

The auditor must report functionally and administratively to the Divisional Executive via the HSRC Finance Department.

Key stakeholders: Chief Financial Officer, Project Principal Investigators, Project Directors, Finance Staff, and administrative staff involved in the projects.

Quoted fee must be based on hourly charge-out rates to complete the audit, attend agreed meetings, and provide electronic and hard copies of the final audit report.

Estimates of likely incidental costs (travel and subsistence) must be included, noting HSRC centres across South Africa; accounting records are retained centrally at the Pretoria office.

The budget must be inclusive of VAT.

Bidder must be one of the following:

• A U.S.-based Certified Public Accountant firm,
• A foreign government's Supreme Audit Institution or equivalent, or
• An audit firm endorsed by the U.S. Agency for International Development's Office of Inspector General.

Proof of audit status with the Independent Regulatory Board for Auditors (IRBA) or the Office of the Regional Inspector General per 45 CFR 75.509 is required.

Company registration (CIPC) certificate required.

Evidence of authorisation to conduct audits on federally funded cooperative agreements such as CDC, and compliance with professional standards (relevant certification).