CALL FOR PROPOSAL ALREADY CLOSED.
TERMS OF REFERENCE: Enhancing Urban Community Resilience through Community – Based Disability – Inclusive Disaster Risk Reduction and Management (December 1, 2016 to December 31, 2017)
PROJECTAUDIT for 1 year, from December 1, 2016 till December 31,2017
1.1 The financial audit of projects (“financial audit”) is to be carried out by an independent auditor (“the auditor”), having the required professional competence and experience, and in accordance with generally accepted international auditing standards.
1.2 These Terms of Reference (“TOR”) define the mandate of the auditor in connection with the financial audit of projects/programs financed by Arbeiter-Samariter-Bund. The financial audit is based on the professional requirements and guidelines governing the professional work to be undertaken by an auditor in relation to an agreed-upon procedures engagement.
1.3 In planning, conducting and reporting on the financial audit, the auditor shall be given due considerations to the following auditing and other standards promulgated by international professional bodies:
ISA – International Standards on Auditing, 800/805 as well as 920
IFAC – International Federation of Accountants
In addition, the relevant standards of the local accounting profession as well as the local legislation on accounting and reporting in force in the country in which the financial audit is carried out need to be taken into consideration by the auditor.
The auditor is required to plan, execute and report on the financial audit engagement in order to form a professional judgment on the following matters relating to the activities and the organisation of the partner:
The following documents and matters are to be considered by the auditor as basic references for performing the financial audit:
Legislation: National legislation
Project/program: Cooperation agreement relative to the project or to the partner organisation; Project Document / Terms of Reference (TOR), Budgets, financing plans, programs of project activities; Project management procedures;
Any other documents concerning the project/program.
Accounting: Accounting documents subject to the financial audit; Financial and operational reports concerning the project/program.
Auditor: The present terms of reference and the related mandate for financial audit; Prior internal and external audit reports of the partner; Any other information requested from the partner by the auditor.
The auditor shall adequately plan the financial audit engagement well in advance of the work and ensure the execution of the financial audit of highest professional quality in an economical and efficient manner and within the agreed timetable.
On the basis of the information received during the planning phase, including his audit risk assessment, the auditor shall determine:
The auditor undertakes to ensure continuity in the audit approach of the financial audit engagement and the audit team, even if there is a change in the leader of the audit team from the prior year.
The financial audit is to be carried out within the project environment (administrative offices and/or decentralised sites, if applicable).
The auditor shall obtain a management representation letter signed by the management of the audited organization, certifying:
Appropriate audit procedures are to be applied by the auditor in order to form a professional judgement on the matters outlined below. These procedures applied, either on a full scope or random basis, may include: controls, checking, evaluation, inspection, interview, analysis and other audit techniques. When selecting the audit procedures, the auditor shall give consideration to the results of his audit risk assessment (during planning stage and during the course of the audit work).
Accordingly, he must define and carry out suitable audit tasks in order to obtain an overview of the aforementioned aspects before he assesses the individual findings and reaches a final independent decision on the audit.
The auditor is expected to select and apply any other audit procedures that he may consider necessary in the professional execution of the financial audit engagement.
Upon receipt of the financial audit report, Arbeiter-Samariter-Bund or any third persons designated by Arbeiter-Samariter-Bund reserve the right to request other audit procedures to cope with the change in circumstances in the project or of the organisation of the partner.
Examples of possible audit procedures are:
7.1 Principles of orderliness (financial regularity) – Principle 2.1
Project related matters:
Accounting related matters:
7.2 Existence, adequacy and effectiveness of the Internal Control System (ICS) – Principle 2.2
7.3 Conformity with the project objectives and adherence to the contract conditions – Principle 2.3
7.4 Economical conduct of business and effective use of financial resources – Principle 2.4
7.5Findings and recommendations
In his financial audit report, the auditor is expected to
After the completion of the financial audit engagement, but before leaving the project or the premises of the partner, the auditor shall hold a closing meeting with the persons responsible for the project/program (directors) and the staff responsible for accounting and reporting. The meeting shall address the results of the project audit, discuss major weaknesses in the project, administrative and financial management (including the deficiencies of individual staff members) and propose recommendations to improve the project management, the accounting procedures and the internal control system (ICS).
The content of the closing meeting is to be summarized in writing and signed both by the representative of the implementing partner and the leader of the audit team. These minutes shall be annexed to the financial audit report (see 9.1.13).
The Auditor is expected to express an independent opinion on the financial statements and related footnote information whether these financial statements present fairly, in all material aspects, the financial position as of the balance sheet date, and the results of its projects for the period/year then ended in accordance with the accounting policies determined and/or the relevant national legislation and in the adherence to the Finance & Accounting Principles (specifically addressing the four overall principles stated under 2. above).
In reporting on the results of the financial audit, the auditor shall address the following matters and follow the following structure in the audit report:
9.1 Content and structure of auditor’s financial audit report
9.1.1 Auditor’s opinion
9.1.2 Name of project and partner, incl. subcontractor(s)
9.1.3 Brief description of relevant information on the partner (history, management, accounting system, internal control system, activities unrelated to the project sponsored by Arbeiter-Samariter-Bundetc.)
9.1.4 Period covered by the financial audit
9.1.5 Date and place of audit, name of audit firm, deviations from original auditprogramme
9.1.6 Description of audit procedures applied and findings on financial information subject to the audit
9.1.7 Analysis of the statement of funds received from Arbeiter-Samariter-Bund
9.1.8 Analysis of the statement of funds received from other donors, if applicable
9.1.9 Recommendations on project management, accounting procedures and internal control system (ICS)
9.1.10 Comments with regard to adherence to project agreement/contract and terms of reference
9.1.11 Budget comparison of the project, including comments on major variations
9.1.12 List of inventories and fixed assets acquired by the project during the accounting period under audit
9.1.13 Minutes of the closing meeting, as discussed under 8. above.
9.1.14 Management’s general representation letter in relation to the financial audit, as discussed under 6. above.
9.2. Currency and language of the financial audit report
The financial information contained in the financial audit report of the auditor is to be expressed in the currency provided for in the contract, in Php. The financial audit report of the auditor and all other documents resulting from the financial audit engagement must be in English.
9.3 Time Frame
This service shall carry out in a period that not exceeding 30 working days a day after the date the contract is signed. The audit final report shall bepresented not later than March 5, 2018.
The fees for this audit shall be inclusive of withholding tax. This amount will be paid by check or bank transfer.
The payment will be:
Send electronic submissions to firstname.lastname@example.org or before January 18,2018.
The technical and economic offer shall contain:
January 8-10, 2018 : Call for Audit Service Proposal
On or before January 19, 2018: Deadline to send the technical and economic offer
January 26, 2018 : Notice of award
February 2, 2018 : Signing of the contract between FORGE and Audit firm
February 5, 2018 : Start the conduct of audit
The financial audit report is to be signed by a representative of the auditor as well as by the leader of the audit team.
Place and date: _____________________________________
For the auditor: