Tender Description

Announcement for SOM 1053-22 BMZ-SEWOH Project Financial Audit

Reference Number: SOM1053-22

RFT ID: 358001 - SOM1053/2024/011

Description: SOM1053-22 Project Financial Audit

Posting Date: 17th February 2024

Deadline of Submission: 3rd March 2024

Bid opening date:  5th March, 2024

BMZ-SEWOH PROJECT FINANCIAL AUDIT

1. Introduction

Welthungerhilfe (WHH), hereafter referred to as the “Cooperation partner”: The Executing Agency wishes to engage the services of an audit firm for the purpose of auditing the “Women’s empowerment for improved nutrition of infants, young children and mothers in Maroodi-Jex and Togdheer Regions" as stipulated in the agreement between the cooperation partner and Implementing partner. The audit shall be carried out in accordance with international audit standard issued by IAASA. The audit shall be carried out by an external, independent and qualified auditor.

2. FINANCIAL AUDIT-

The Financial Information of the project/program shall be audited in accordance with International Standard on Auditing (ISA) and in particular by the paragraphs relating to “sufficient appropriate audit evidence” (ISA-500) and “internal control” (ISA-315). The Auditor exercises professional judgment as to what is sufficient and appropriate verification evidence where she/he believes that the guidance provided by ISA 500, the terms and conditions of the Partnership Agreement and the TOR are not sufficient. In complying with the ISA, the Auditor is expected to especially pay attention to “Fraud and Corruption” (ISA 240) as well as “Risk” (ISA 330).

3. Documents of reference

The following documents and matters are to be considered by the auditor as basic references for performing the financial audit:

• Legislation: National law
• Project/program: Cooperation agreements relative to the project or to the partner organization.
• Project Document / 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: Prior internal and external audit reports of the partner.
• Any other information requested from the partner by the auditor.

7. Planning the financial audit

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 as agreed upon in the respective mandate in the name of the partner and the auditor.

On the basis of the information received during the planning phase, including the auditor’s risk assessment, the auditor shall determine:

• The type of transactions to be audited and the audit methods (full audit or sample selections);

The auditor ensures 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 engagement team from the prior year.

8. Place of financial audit

The financial audit is to be carried out at the African Children’s Right Foundation office and WHH Office in Hargeisa, Somaliland.

7. Scope of the financial audit

The following projects will be subjected to the financial audit:

Project Name: "“Women’s empowerment for improved nutrition of infants, young children, and mothers in Maroodi-Jex and Togdheer Regions".

Co-financing number: BMZ; Chapter 2310, title 896 31, project no. 2022.0950.0

WHH Project Number: SOM 1053-22

Project Audit period: 01.12.2022 till 31.12.2023

Total Expenditure (EURO):98,980.89

8. Management representation of full disclosure

The auditor shall obtain a management representation letter signed by the management of the partner organization, certifying:

8.1 The acknowledgement of the organization's responsibility for the keeping of accounts and financial documents that are correct, complete, fair, representing the true facts, in conformity with the objectives of the project, the documents of reference (description of the project, contracts, budgets, etc.) and national legislation.

1. b) That all accounting records, supporting and other documents, minutes and any other pertinent information necessary for the audit be at the disposal of the auditor.
2. c) The completeness of information concerning property and goods.
3. d)The completeness of information concerning financing received or due and own financing concerning the audited period, for the project being examined; **
4. e) The availability of any information and explanations, either orally or by written confirmation, which might be required by the auditor in the execution of his mandate.
5. f) In the case of contributions to local NGOs, the declaration has to certify the completeness of information concerning financing received or due and own financing concerning the audit period, for the project being audited andfor the examination of the consolidated financial statements of the organization. The consolidated financial information, including balance sheets and profit and loss statements of the project, are to be attached to the declaration and form an integral part thereof. This declaration shall be provided together with the financial audit report.
6. Detailed financial audit procedures

Appropriate audit procedures are to be applied by the auditor in order to form a conclusion on the matters outlined below. These procedures applied, either on a full coverage or a sample selection basis may include controls, checking, evaluation, inspection, interview, analysis and other audit techniques. When selecting the audit procedures, the auditor shall consider the results of his risk assessment (during the planning stage and during the course of the audit work).

Accordingly, the auditor must define and carry out suitable audit procedures in order to obtain an overview of the aforementioned aspects before the auditor assesses the individual findings and reaches a final independent opinion on the audit.

The auditor is expected to select and apply any other audit procedures that the auditor may consider necessary in the professional execution of the financial audit engagement.

Upon receipt of the financial audit report, the BMZ or any third person designated by the BMZ reserves the right to request other audit procedures to cope with the change in circumstances in the project or of the organization of the partner.

9. Closing meeting

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 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).

10. Evaluation Criteria

10.1 Technical Evaluation Criteria

Bidder’s proposals will be evaluated against the seven categories listed below:

• Years of experience
• Previous experience in a fragile context
• Experience of the lead and technical staff
• Experience with NGO working in a consortium or other similar arrangements.
• Experience with similar assignments with INGOs
• Quality of the technical proposal
• Turn around period (Audit timeline)

10.2 Mandatory Requirements

• Provide a certified copy of a certificate of business registration, Certificate of incorporation, business license or similar document
• Provide a certified copy of tax registration, tax clearance certificates or similar documents
• Provide information on ownership structure (Name of directors of the company / Owner)
• Provide references from previous clients for similar works.

Note - Applicant who will not meet the above mandatory requirement will not be considered for Technical Evaluation

10.3 Financial Requirements

The Financial Proposal should include the following

1. Assignment cost in USD
2. Payment terms

Skills Required

Follow us on social media