TERMS OF REFERENCE AUDIT OF THE PROJECT EXPENDITURES WITHIN THE PROJECT
Preferred start date Jan 30, 2020, the final report to be submitted by February 15, 2020
Down Syndrome Kosova Association is a partner of Save the Children International office in Kosova/o, which is implementing a project of SIDA and has a strong commitment to support the capacity strengthening of local civil society organizations. Part of Save the Children’s key requirements is to indicate a clear plan on how a financial support was used and focuses on improving the overall identified needs of the Down Syndrome Kosova Association, including access to finance, organizational financial management capacity and capacity in monitoring activities and financial reporting to the donor.
Down Syndrome Kosova Association is a nongovernmental organization established in 2007 with the aim to serve mainly to citizens of Kosovo, but also wider. Since the very beginning, organization’s motto was “Think globally, act locally,” to which it stood loyal until at present. Organization’s mission is “Promotion, respect and protection of the rights for persons with Down Syndrome in Kosovo and their families” and we aim to continue to remain “an organization that accomplishes local actions based on best practices.”
Information about Partner Agreement:
- Agreement No: 10702
- Agreement Amount: 32,652.80
- Agreement Timeframe: 01-01-2019 – 31-12-2019
- Actual spend for period ending Dec 31, 2019: EUR 32,533.21
2. OBJECTIVE AND SCOPE
The objective of the audit is to enable the auditor to express a professional opinion whether the implementation of the project/s disbursed through the Save the Children financing contributions complied with the rules and conditions governing the use of funds as expressed or referred to in the relevant Project Implementation Agreement, including it’s annexes signed between SCIK and Down Syndrome Kosova Association.
- Verify that the total of the funds was credited to the project by the Down Syndrome Kosova Association as per project implementation agreement
- Verify that the expenditures claimed in the Financial Report have occurred, and are accurate and eligible;
- Accounts have been prepared in accordance with good financial practice and give a true and fair view of the financial situation of the project for the January – December 2019;
- Review procurements to determine whether sound procurement practices were used. Assess whether the procurements were in accordance with the SCI Policies and Procedures;
- Perform tests to determine whether the Down Syndrome Kosova Association complied, in all material respects, with agreement terms and applicable KOS TAX laws and regulations. The cost of equipment and services not properly used in accordance with the agreements must be questioned in the fund accountability statement;
- Ensure that administration of project resources is adequately carried out by the Down Syndrome Kosova Association and is in accordance with SCI policies and procedures and the terms of conditions of the Agreement;
- Perform financial assessment related to, and providing data on future aspects for organizational and financial improvement.
- Follow up whether salary costs debited to the project/programme are recorded throughout the duration of the year in a systemized way and examine whether the salary costs can be verified by sufficient supporting documentation.
- Examine whether the financial report includes a comparison, for every budget item, between the actual costs/expenditures of activities and the budgeted costs/expenditures as approved by Sida for the period.
- Based on materiality and risk the auditor shall examine whether there is supporting documentation related to incurred costs.
- Follow up whether the cooperation partner complies with the applicable tax legislation with regard to taxes (e.g. Pay As You Earn (PAYE)) and social security fees.
- Follow up whether the cooperation partner has adhered to the procurement guidelines annexed or referred to in the agreement.
- Review if outgoing balance for previous period is the same as incoming balance for the current period.
- If the cooperation partner applies modified cash basis as accounting principle, the auditor shall describe whether the chosen accounting principle is acceptable for the established financial report.
- Verify the unspent balance at the end of the financial year.
- Regardless of materiality of the findings, the auditor shall quantify the amount for costs lacking sufficient supporting documentation.
The audit shall be carried out in accordance with international standards issued by International Standards on Auditing (ISA).
3. AUDIT DELIVERABLES
The qualified audit company shall issue an audit report in respect of reviewing the implementation of the agreement. The audit report shall contain the following:
- an opinion according to ISA 805/800 whether the submitted financial report is in accordance with the accounting records
- a reference to the reports that the audit certificate refers to (copies of which is to be included in deliverables)
- a statement that the audit has been performed in accordance with International Standards on Auditing (ISA) and in accordance with these special instructions
- a statement whether the report has been drawn up in accordance with the agreement
- The qualified auditor shall issue a management letter/audit memorandum containing the following:
- the content and scope of the audit
- significant observations on the activity covered by the report
- measures taken as a result of previous audits and whether the measures have been adequate to deal with the reported shortcomings
The auditor’s report shall include also management letter, Partner’s Management Response including an Action Plan.
4. DURATION AND TIMEFRAME
Preferred start Jan 30, 2020, the final report to be submitted by February 15, 2020
5. DATA, REQUIREMENTS, PERSONNEL AND FACILITIES TO BE PROVIDED
The audit company will be given access to all documents, including the relevant Agreements between the Down Syndrome Kosova Association and SCiK, Description of the Action, Reports and any other information associated with the Project and deemed necessary by the auditor. The Down Syndrome Kosova Association project staff will also provide full support to the auditors in terms of background briefing, orientation, guidance and support to gain access to the necessary premises.
- The basic language of all documentation is English. By exception however, some documents may be only available in Albanian or Serbian.
- All documents will be returned at the end of the Audit. Data of a confidential nature will be handled with all necessary prudence and will be disclosed only to duly authorised persons.
- The audit shall be carried out by an external, independent and qualified auditor in accordance with international standards mentioned above.
- An auditing company which applies to carry out the audit will be immediately subject to disqualification if any potential conflict of interest towards or in relation to Down Syndrome Kosova Association is identified.
- The audit reports must be submitted at the end of the assignment, and with a Final Audit Report and Management Letter in English.
- The audit shall be performed under the overall responsibility of an Audit Project Manager and the operational responsibility of a Team Leader (Senior Auditor, at least 5 years’ professional audit experience), supported by the team considered convenient by the Contractor (with at least 2 years of professional audit experience).
- The qualifications, the skills and the general and specific professional experience of the Project Manager and the Team of Auditors shall be considered during the technical evaluation of the offer. No intern staff should be involved in the Team of Auditors in this specific action.
- Office accommodation
- The office space where the action of the assigned auditing experts should be ensured by a selected auditing company and it should not be responsibility of Down Syndrome Kosova Association. However, in exceptional cases, an office space within the Down Syndrome Kosova Association premises can be used only if clearly justified and priory accepted.
- The auditors’ company shall ensure that auditors are adequately supported and equipped. In particular, it shall ensure that there is sufficient administrative, secretarial and interpreting provision to enable auditors to concentrate on their primary responsibilities.
- No equipment is to be purchased or provided to a selected Auditing Company on behalf of the Down Syndrome Kosova Association as part of this service contract.
6. APPLICATION PROCEDURE
Applications must be sent in English and entail the following:
- Expression of Interest and availability;
- CV/Organisation Profile should be presented;
- Two references from similar assignments; and copies of the reports they prepared
Expression of Interest clearly marked Audit of the project expenditures within the project “Fuqizimi i sistemeve mbështetëse drejt realizimit të të drejtave të personave me sindromë Down” can be submitted as hard copies at the address St. “Nazmi Mustafa” Lagja Pejton, Nr.1, Prishtine 30 -01-2020, local time on 16:00.
The application should be sent to: firstname.lastname@example.org .