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Request For Caritas Germany is supporting Afghan NGOs since 1984 and established its own office in 1994, with pr

Request For Request for Quotation (RFQ) for Auditing Of CAFOD phase one of Project P.307.2021.010

This document defines the terms of reference for the audit of the project(s) listed below, by an independent auditor. In addition, the financial system and procedures of the implementing partner shall be analysed and recommendations given for its improvement.

 

1.  Project Information

Project Title(s):	Life- saving Winterization and cash for food assistance in the provinces of Daikundi, Samangan and Takhar Project ID: P.307.2021.010
Project Period:	15.01.2022- 15.06.2022
Contract Project Budget(s):	900,780.70 €
Financing Partner(s)/funding donor:	CAFOD
Implementing Project Partner:	APBHO, ASLO, OHW and RCDC
Location(s) of Projects:	Daikundi, Samangan and Takhar provinces – audit to be conducted in partner’s main offices.
Reporting Currency	AFN USD
Project bank accounts	Project grant received by partner through Finance Service provider (FSP)

2. Objective of verification

The objective of the audit is to ascertain that the funds provided by Caritas Germany (DCV) were used in accordance with the project agreement (including its stated objectives) and national regulations and to verify whether financial systems of the project partner respond to general accepted practices.

 

3. Scope of work

The audit services to be provided include the following aspects:

3. 1. The audit shall be carried out at the premises of the implementing project partner and where his bookkeeping is located and at places, where the above-mentioned project is carried out. It is held once a year for a period of 5.5 months.
   2. The audit shall contain the verification of all financial documents or a relevant sample, processes as well as other information pertaining to the project in accordance with international standards. The audit shall examine internal control systems related to the financial statements, compliance with national accounting laws and employment regulations, and compliance with all contractual conditions between the project partner and Caritas Germany (DCV).
   3. Besides the aspects mentioned above, the audit shall analyse the strengths and weaknesses of the project partner’s administrative management in general. The aim is to identify learning points for the partner to strengthen his structures and systems in a sustainable manner. This analysis shall result in a list of recommendations for the project partner which are to be included in the management letter.
   4. The audit shall verify that procured goods and/or provided services reached the targeted beneficiaries. This should be done via interviews with beneficiaries and field visits.
4. Methodology and Standards

In his work the auditor has to comply with the International Federation of Accountants (IFAC) “Code of Ethics for professional Accountants”. The verification shall be performed in accordance with national legislation and the relevant International Standards. In this regard the auditor is requested to

1. 1. express opinion regarding historical financial information (ISA 800).
   2. exercise certain agreed-upon procedures regarding financial information, this includes:
      1. completing the annexed checklist
      2. confirm statements under 6.2 Deliverables
      3. Physically verify a coverage ratio of expenditure vouchers with a relevant sample. The sample should include a representative coverage of all expenditures, including a fair amount of smaller expenses, at least 10% of the value of each main budget position and at least 75% of the total value (actual costs).

à The sampling procedure has to be documented in the final audit report.

5. Qualification of the auditor

To conduct the audit, the auditor shall fulfil one of the following criteria:

1. 1. The Auditor and/or the auditing firm is a member of a national association or organization of accountants or auditors, which in turn is member of the International Federation of Accountants (International Federation of Accountants, IFAC).
   2. The Auditor and/or the firm is a member of a national accounting or auditing body or institution. Although this organisation is not a member of the IFAC, the Auditor commits him/herself to undertake this engagement in accordance with the IFAC standards and ethics set out in these ToR.

It would be an additional benefit if the auditor can provide trackable experience in audit/ expenditure verification of projects in the non-profit sector financed by public funds/ international donors. We expect that the auditor will apply to the assignment adequate staff with appropriate professional qualifications and suitable experience, including experience in auditing the accounts of entities comparable in size and complexity to the entity being audited. We expect the same audit team will be maintained including the audit manager and Partner to sign off the opinion.

 

6. Deliverables

Audit report

The reporting language is English. The reporting currency is both local currency (AFN) and USD. The written report of the auditor has to be approved by all contracting parties.

The audit report shall consist of the following information:

1. 1. Details on the nature and scope of the audit, time period and place of the audit, standards applied and findings.
   2. Explicit confirmation of the following 5 points (if there are reasons for restricting this confirmation, the reasons shall be given):

1. 1. Duly accounting records have been made available
   2. The financial report includes all income and expenditure corroborated by supporting documents
   3. The income/expenditure plan has been complied with
   4. The purpose of the funds has been respected and the funds have been used economically and efficiently
   5. The partner contractual agreements between the funding donor and recipient have been respected.

1. 3. The following documents shall be included in the audit report:

1. 1. Audited financial report with variance analysis (in %) between budget and expenditure per budget position.
   2. Overview of receipts and expenditures following the approved budget structure (budget structure see project agreement).
   3. Completed and signed checklist (see annex), possibly with additional remarks.
   4. Updated inventory list of the assets procured in the course of the project.
   5. Project staff list of the implementing organization, including a confirmation of conformity of salaries with local standards.
   6. At the end of the project period, a consolidated audited financial report including a presentation of all income and expenditure, a variance analysis between the budget and the expenses per budget position and any remaining balance for the entire project period must be presented.
   7. Management letter:

The auditor shall issue a separate management letter, in which he draws attention to identified weaknesses, makes recommendations for their elimination and furthermore reports on the implementation of recommendations of previous audits, if any. In the audit report the following standard wording shall be included: "For additional information and recommendations, please refer to the management letter."

7. Timeframe for Deliverables

Time planning should consider the following dates:

 

8. Application Procedure

Interested candidates shall submit their offer including the following information:

1. Presentation of audit firm, mentioning qualifications and experience of auditors conducting the audit and experience of auditing project funds.
2. Proof of registration as certified public accountant/ chartered accountant (see also 5. Qualification of the auditor)
3. Membership in the IFAC or membership of national association which itself is registered with IFAC (registration and annual license)
4. Confirmation of TORs, audit methodology and standards
5. Quotation incl. tax and all expenses to be incurred (incl. travel expenses)
6. Currency of quotation/audit fee to be specified
7. Proposed time schedule
8. A scan of the signed official offer has to be delivered via email to CG-COA  jobs@caritas-germany.af the latest by 20.11.2022

7900039035.pdf
7417655031.pdf