TERMS OF REFERENCE OF AN EXTERNAL AUDIT
TERMS OF REFERENCE OF AN EXTERNAL AUDIT
NAME OF THE SPONSOR: FONDATION Caritas Luxembourg
PROGRAMME TITLE – Support of Tuberculosis Control in Prison (Phasing-out Operation) - 21242
DURATION: 6 months
BUDGET: 25,100 €
EXPENDITURES: 25,100 €
AUDIT PERIOD: January 2020 – June 2020
NAME OF THE IMPLEMENTING AGENCY: Caritas Tajikistan
Since 2005, the Fondation Caritas Luxembourg (FCL) has been present in Tajikistan in the field of TB-control in prisons.
In 2017, FCL decided to close its office in Dushanbe and hand over the project to its local partner, Caritas Internationalis in Tajikistan (hereinafter called Caritas Tajikistan). Starting 01/01/2020, Caritas Tajikistan is in charge of the project for a period of 6 months. The activities during this period are funded by FCL. From 01/07/2020, Caritas Germany will take over the funding of the project. In order to provide evidence of good financial management, it has been decided to perform an audit.
The objectives of this audit are to enable the Auditor to express an opinion on whether:
1. the Financial information and reports (see annex 1) accurately present, in all material respects, the actual expenditure incurred and the revenue received by the Project Holder for the period 01/01/2020 - 30/06/2020, in conformity with the applicable Contractual Conditions set with FCL and Caritas Tajikistan internal procedures;
2. the incomes and expenses, assets and liabilities are adequately supported by original documentation and have been properly accounted for;
3. that documentation is clear and provides a fully justifiable audit trail to the external eye, particularly ensuring the link from purchase request, to payment, to distribution is transparent;
4. procurement procedures applied correctly and procurement plan is up to date;
5. that key documentation and figures are translated into English in order to maintain a fully traceable audit trail;
6. shared cost policy is applied correctly and cost sharing between different donors;
7. that mission documents are provided for travel items to assure a justifiable and traceable allocation;
8. full cash/banks counts of all cash/banks accounts are performed on a monthly basis;
9. exchange rates between different currencies are applied correctly;
10. adequate and effective internal control system exist
The audit work shall cover the adequacy of accounting and financial operations, reporting and management as well as accounting procedures (referring to the national law and the international accounting standards).
A verification of mathematical accuracy is expected, in order to ensure that the expenditures described in the financial statements are reconciled with the supporting documents and with the bank statements.
The auditor verifies the eligibility of direct costs with the terms and conditions of the grant contracts. The auditors verify that all FCL allocated costs are clearly identifiable and traceable in the accounting as clearly separated from other funding(s).
The auditor verifies all expenditures.
The period covered by the audit is: period 01/01/2020 - 30/06/2020.
The audit will take place in the premises of Caritas Tajikistan in Dushanbe based on the documentation available in the office in Dushanbe.
VERIFICATION PROCESS AND METHODOLOGY
The audit methodology and the audit techniques to be used are those in accordance with international auditing standards and following the ISA 700 norm.
The audit report should include the following:
1. Audit method used and the scope of the audit.
2. A statement declaring that all information and documentation needed to complete the audit has been made available as required.
3. Declaration that the required audit standards have been applied.
4. Distribution and use of the audit report.
5. Formal Opinion.
6. The period covered by the report.
7. Cash flow statement covering the implementation period 01/01/2020 - 30/06/2020
8. Statement of receipts and expenditures covering the implementation period 01/01/2020 - 30/06/2020.
9. Income table by source of funding (donations)
10. The balance at the end of the implementation period.
The auditor should submit a letter to the management at the completion of the audit. The management letter should include recommendations to address any weaknesses identified with regards to financial regularity, the internal control system, adherence to contract conditions (if applicable) and the effective use of financial resources. The audit report shall be written in the English language.
First draft of the audit report, for comments, should be submitted to FCL latest until 10/07/2020 and the final report, including comments of FCL should be submitted latest until 21/07/2020.
ELIGIBILITY OF THE AUDITOR
By agreeing these ToR the Auditor confirms that he/she meets at least one of the following conditions:
1. The Auditor and/or the firm is a member of a national accounting or auditing body or institution which in turn is member of the 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 organization is not 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.
3. The Auditor and/or the firm is registered as a statutory auditor in the public register of a public oversight body in a third country and this register is subject to principles of public oversight as set out in the legislation of the country concerned (this applies to auditors and audit firms based in a third country).
Annex 1 to the ToR for the Auditors
Financial information to be prepared by Caritas Tajikistan before the start of the audit
1. List of Incomes and expenses related to Support of Tuberculosis Control in Prison (Phasing-out Operation) - 21242
• Total income listed by donor
• Table of transfers & currency conversions
• Expenses/costs presented by date and by budget line
2. Scanned vouchers for each transaction with the supporting documentation
3. Consolidated financial report against the last budget approved
4. List of project staff working on the action and percentages dedicated to working on the action
5. List of equipment bought through the action
6. A consolidated table of stock procurement, distribution and closing balance
7. Bank accounts statements at the beginning (complete as appropriate) and to the end of the period
8. Monthly bank reconciliations
9. Cash flow statement
Caritas Tajikistan welcomes your will contribute to our efforts make world better. International volunteers especially those who has will to share skilss knowledges to youth are very welcomed.For detailed duscussion please contact us via e-mail.
There are currently no vacancies