Extended deadline - Invitation to Tender (Audit)

Terms of reference for Financial Audit

PROGRAMME TITLE : EA 16/2023 Multisectoral support for conflict affected people in Moldova

DURATION : 01.05.2023-31.05.2024 (+ 1 month for closing)

BUDGET : €  1 038 921

AUDIT PERIOD: 24.06.2024-05.07.2024, the draft of the audit report by 15.07.2024

BACKGROUND  

  The EA 16/2023 was launched as an occurrent need to offer support to vulnerable living in Moldova: Ukrainian refugees and local people, affected economically by the war in Ukraine and as a result forced to face enormous financial challenges.

The project targets extremely vulnerable people (50% Ukrainians and 50% Moldovan): persons with disabilities, persons with chronic illness, terminally ill person, single carer family with at least one infant (up to 2 years), single carer family with 2+ children, family with 3+ children, elderly person (65+ years), pregnant or lactating woman.

Through this project Caritas Moldova has provided dignified housing in three locations: Chisinau, Ungheni, and Orhei.  The refugees residing in centers managed by Caritas Moldova were provided with food, clean, safe housing, child-friendly areas, and WASH NFIs.

Through the activity of 5 mobile teams Caritas Moldova provided basic goods and services to conflict affected people on national level. Thus, the beneficiaries of this project received access to food (in kind or vouchers), tailored hygiene kits (according to age and gender), vouchers for medicines and medical services, and NFIs.

The project stakeholders: Caritas Internationalis Member Organizations, local authorities and parishes.

OBJECTIVE

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 (01.05.2023-31.05.2024), in conformity with the applicable Contractual Conditions set with donors (if applicable);

2.   The incomes and expenses, assets and liabilities are adequately supported by original documentation and have been properly accounted for; for assets declared as used, the inventory systems show proofs of existence at the date of the agreement; the method applied for the conversion of local and foreign currencies into Euro is consistent with standard accounting practices.

3.   Adequate and effective internal control system exist.  

4.  To provide a professional opinion on the quality of the audited organisation’s financial reporting and its suitability for the requirements of the donors.

5. Verification of the correctness of the accounting on the basis of original documents (including contracts, reports on the services provided, invoices, auxiliary materials)

6. Verification of the efficiency, the reasonableness, and appropriateness of project expenditures

7. Verification of the classification of expenses within the budget lines of planned budget: personnel, travel costs and other expenses (e.g. rent, supplies, operating costs, etc.);

8. Review of financial flows (project-related cash flows, original invoices, payment receipts, bank statements, etc.)

9. Confirmation of the correct accounting of expenses at the bank accounts of the association on the basis of original documents

AUDIT SCOPE

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 period covered by the audit is: 01.05.2023 to 31.05.2024 date.

The audit will take place in Republic of Moldova, Caritas Moldova premises.  

Note: audits normally take place in the project holder’s premises (National Caritas Offices). In exceptional cases, auditors might be required to carry out a part of the audit in the Dioceses offices.

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 805 norm.

REPORTING

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 that 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 EA implementation period (01.05.2023-31.05.2024).
8. Statement of receipts and expenditures covering the EA implementation period (01.05.2023-31.05.2024).
9. Income table by source of funding
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 and Romanian languages.

DEADLINES

The auditors shall provide a draft final report of their findings including an opinion, a management letter and a set of conclusions and recommendations not later than 1 week (15.07.2024) after the end of their field work and (complete as appropriate) at the latest.

These findings are to be reviewed by the National Caritas Director/Secretary General before the audit report is finalised and submitted.

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 organisation 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).

LETTER OF INTEREST, SELECTION PROCESS AND CONTRACTING

Interested auditors are requested to send a “Letter of Interest” (offer) no later than EXTENDED DEADLINE: JUNE 20, 2024 (JUNE 13, 2024) to Caritas Moldova.

It should include:

-Description of planned audit implementation

-Schedule of activities

-Auditor’s fees

-Auditor’s CV and/or company profile

-Confirmation that the auditor will carry out the audit in accordance with the Terms of Reference.

Selection of best offer

Selection committee with qualified members will select the best offer regarding price and quality. Price and quality will be weighted with 70% (price) and 30 % (quality).  The successful bidder will be informed within 20 working days after the deadline for submission of offers.

Contract/ Letter of Engagement

The audit contract shall be drafted by the auditor and shall:

-Be written in English and Romanian.

-Include these ToR as an annex and integral part of the contract.

-Contain a time schedule for the auditing process.

CONTACTS

Implementing partner organization – Caritas Moldova

Office: 30/1 Gheorghe Asachi Street, Chisinau, MD-2004, Moldova

Offer should be sent to by e-mail at the address: procurement@caritas.md ,  tel.+373 78800597