INTRODUCTION

CONCORDIA Moldova is seeking an audit company to carry out an expenditure verification reports on project financial administration and statements funded by donor grants. The reports should be carried out in accordance with International Standards on Auditing (ISAs) to ensure financial statements` accuracy and compliance with contractual conditions

BACKGROUND INFORMATION

The overall objective of the “PEARL - Post Emergency Response: Post Emergency Response Adaptation and Integration of Ukrainian Refugees in the Republic of Moldova” project is to address two main challenges that arise from the general context regarding the conflict in Ukraine:

1. Support refugees and vulnerable Moldovan families with basic goods ensuring that all basic needs are fulfilled, especially in face of the harsh winter;
2. Enabling the successful integration of Ukrainian refugees into the Moldovan society by offering support giving perspectives and better opportunities for all people living in the Republic of Moldova.

The project duration is 01/01/2024 – 31/12/2025.

Total project budget: EUR 1 006 158.15 (total budget incl. Austria and Moldova) EUR 986 332,55 (budget for Moldova).

Amount of the Project to be verified:  EUR 986 332.55, project transactions – appr 900, employees involved in the project - 42.

The audit company will have two audit periods:

1. Period 1: From January 1, 2024, to December 31, 2024, with a total of 526,915.20.
2. Period 2: From January 1, 2025, to December 31, 2025, with a total of 459,417.35. At the end of this period, a summary for both periods will be prepared.

SCOPE OF THE FINANCIAL AUDIT

The objectives of the audit are:

1. to provide a professional opinion on the quality of processes and accounting practices within the audited organization, especially those applied within the project concerned, based on the auditing procedures.
2. to independently verify that the project mentioned above has been implemented in compliance with the requirements of the following documents of reference:

Legislation: National legislation and applicable laws.

Project: Grant Agreement relative to the project, Project Documents, Terms of Reference (TOR), Budgets, plans of project activities.

Accounting: Accounting documents subject to the financial audit, financial and operational reports concerning the project.

Auditor is responsible to verify:

• the entity's compliance with the criteria and specifications set out in the Project Contract;
• proper book keeping, documentation, filing and record keeping for expenditure and income;
• the accounts on the basis of original vouchers;
• the plausibility of expenditures;
• assignment of expenditures to the respective budget items;
• overall financial management;
• the compliance with the respective social and labour law;
• compliance and proper application of the applicable procurement regulations and law;
• that according to the book keeping records and to the audit of accounts the expenditures are covered by the revenues;
• that there is no duplicate financing by external funding bodies;
• that each financial statement contains a clear description of cash flows, evidenced by
  currency exchange confirmations and bank statements;
• that the original vouchers are in an appropriate order to be presented for an external
  inspection at any time;

AUDIT PROCEDURES

The Auditor should exercise due professional care and judgment and determine the nature, timing and extent of audit procedures to fit the objectives, scope and context of the audit.

All national rules and regulations as well as the contractual agreements and the rules and regulations by the main donor, the Kindernothilfe e. V. (KNH), must be taken into account.

The Auditor shall validate the original receipts and produce an Expenditure Verification Reports, that should describe the purpose, the agreed-upon procedures and the findings in enough details.

The audit report must contain at least the following information:

• Title
• Addressee
• Brief description of the project and partner(s)
• An introduction including description of the audit engagement
• Period covered by the report
• Description of the audit method applied
• Total amount of budgeted and actual incomes
• Complete list of project funds transferred, including donors’ names, dates and exchange rates
• Total amount of actual expenditures verified
• Expenditure Coverage Ratio
• Objectives, Scope and Description of the procedures performed
• Findings from the expenditure verification
• Recommendations, if applicable
• Follow up of previous recommendations, if applicable
• Other relevant matters
• Date of the report
• Auditor’s address and signature
• A summary confirming that the project has been implemented properly and according to the economic and fiscal regulations of the project country.

The report must be submitted in English and Romanian (3 copies in English and 2 copies in Romanian).

REQUIREMENTS FOR THE AUDITOR

The Auditor must meet at least one of the following conditions:

• The Auditor is a member of a national accounting or auditing body or institution, which in turn is a member of the International Federation of Accountants (IFAC).
• The Auditor 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 himself/herself to undertake this Engagement in accordance with the IFAC standards and ethics.
• The Auditor is registered as a statutory auditor in the public register of a public oversight body in an EU member state in accordance with the principles of public oversight set out in Directive 2006/43/EC of the European Parliament and of the Council (this applies to auditors and audit firms based in an EU member state).
• The Auditor 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).

WORK PLAN

 DELIVERY PROPOSALS

1. Closing Date and Time: All proposals in response to this TOR must be received by no later than 04:00 pm, local time, December 23, 2024 (with the statement “Audit Company for PEARL Project”). Proposals are to be submitted in hard copy (signed and stamped), or electronically (electronically signed) to: moldova@concordia.md or: A.O. "Concordia. Social Projects”, Chisinau, str. A. Corobceanu 13/1, MD-2004.
2. Proposal Components:

Cover Letter

• Company profile, contact details;
• Company competencies and experience;
• References of two non-associated referees;
• Members of the audit team holding audit certificates;
• Risk insurance (insurance policy);
• Extract from the State Register of Legal Entities.

Technical Proposal

• Qualifications of audit team;
• Institutional experience (including auditing non-profit organizations in the Republic of Moldova) and past performance in projects;

Financial Proposal

• Financial offer indicating the price of audit services in MDL. The financial proposal must cover all the services described above and must be clear and complete.

A.O. "Concordia. Social Projects" is exempt from VAT, which is also confirmed by art. 103 paragraph (9²) - Fiscal Code - "Goods and services imported or purchased on the territory of the Republic of Moldova by non-commercial organizations meeting the requirements of art.52, for the purpose of building social assistance institutions, as well as goods and services imported or purchased on the territory of the Republic of Moldova by these non-commercial organizations for the needs of these institutions, are exempt from VAT without the right of deduction".

EVALUATION CRITERIA

 SELECTION OF APPLICANTS

Proposals submitted under this procurement will be evaluated by Recipient committee focusing on the criteria described above.

The Applicant that accumulates the highest score according to the evaluation criteria will be invited for the negotiation of the contract.

Important Note: In accordance with the internal procedures regarding the processing of information with limited accessibility, Concordia will provide access to the primary documents necessary to conduct the audit, on paper (in the original) and in electronic format (access to the accounting software), at the headquarters, using the means made available, to be examined without the possibility of copying them to external media.

Questions and Clarifications

If you have any questions or need clarification regarding this TOR, please submit them in writing via email to galina.bujor@concordia.md with the statement “Clarifications - Audit Company for PEARL Project”.

Assessment Disclosure and Cost Responsibility:

The Recipient is not obligated to disclose how proposals are assessed or provide information about the selection process to any offeror;

Offerors are responsible for their own expenses incurred in preparing and submitting an offer under the TOR. This includes costs for functional demonstrations, meetings, and negotiations.

Not a Contract:

This TOR is not a contract or commitment. Submitting a proposal does not obligate the Recipient to award a contract, and the Recipient is not committed to covering any costs incurred in preparing the proposal.

Right to Presentations and Proposal Validity:

The Recipient reserves the right to invite short-listed offerors to make oral presentations. These presentations will be evaluated based on the same criteria;

Proposals must remain valid for 30 days from the submission deadline.