Invitation for auditing firms to offer tenders for the external auditing of the project “Save- Social Protection and Poverty Reduction for Vulnerable Adults in Moldova and Serbia in the Context of Multiple Crises“ (Moldovan part)

Letter of invitation incl. Terms of Reference

The organisations Diakonie ACT Austria gem. GmbH (Garnisongasse 14-16, 1090 Vienna, Austria, email: iha@diakonie.at,) and Association for Education Neoumanist (str. Ion Creanga 31, Straseni, MD3701, +(373)-69595631, email: v.timbalari@gmail.com) herewith invite auditing firms to offer tenders for the external auditing of the project “SAVE - Social Protection and Poverty Reduction for Vulnerable Adults in Moldova and Serbia in the Context of Multiple Crises“ (Moldovan part).

1. INTRODUCTION

The project is being implemented from 1 September 2024 to 31 August 2026 in Serbia and Moldova with a total overall budget amounting to EUR 925,000 (of which EUR 892,500 are total direct costs). The Austrian Federal Ministry of Social Affairs, Health, Care and Consumer Protection (BMSGPK) is funding the project with EUR 650,000 (in words: six hundred fifty thousand Euros) and Brot für die Welt (Diakonie ACT Austria) with EUR 275,000 (in words: two hundred seventy five Euros).

In Moldova, the project is carried out in the district of Straseni by Neoumanist Association for Education (see address above). The project direct costs in Moldova amount to EUR 455,379 (in words: four hundred fifty-five thousand three hundred seventy-nine Euros).

Diakonie ACT Austria gem. GmbH, in the following referred to as Diakonie, and the Neoumanist Association for Education, in the following referred to as Neoumanist, have signed a cooperation agreement for implementing the project "SAVE - Social Protection and Poverty Reduction for Vulnerable Adults in Moldova and Serbia in the Context of Multiple Crises”, Diakonie ACT Austria project number: MDA 3423068.

2. BACKGROUND OF THE PROJECT

The project aims to reduce poverty among older people in the Republic of Moldova and Serbia through access to quality social and health services.

The project foresees the following results:

Result 1 - Older people living in poverty in rural areas in Moldova and Serbia can meet their immediate needs through access to health and social services

Result 2 – Promotion of good practice in active ageing and quality social services for older people in Moldova and Serbia

Result 3 - The capacities of social service providers in Moldova and Serbia are strengthened to provide relevant social services to older people

3. GENERAL INFORMATION AND REQUIRED EXPERTISE

The external audit firm provides two audit reports covering the period from 1 September 2024 to 31 August 2026 and the total direct costs in Moldova of EUR 455,379. The first interim audit report covers the period from 1 September 2024 to 31 August 2025, and the second audit report covers the entire period from 1 September 2024 to 31 August 2026.

The audit report shall be submitted in English.

Note: The period to be covered by the final audit and the dates for submission may be amended in case of an extension of the project duration.

The Auditor shall undertake this engagement in accordance with:

- the International Standard on Related Services (‘ISRS’) 4400 Engagements to perform agreed-upon procedures regarding financial information as promulgated by the International Federation of Accountants (IFAC);

- the IFAC Code of Ethics for Professional Accountants (developed and issued by IFAC's International Ethics Standards Board for Accountants (IESBA), which establishes fundamental ethical principles for Auditors regarding integrity, objectivity, independence, professional competence and due care, confidentiality, professional behaviour and technical standards. Although ISRS 4400 provides that independence is not a requirement for Agreed-upon procedures engagements, the Contracting Authority requires that the Auditor is independent from the Beneficiary and complies with the independence requirements of the IFAC Code of Ethics for Professional Accountants.

Required expertise: The Auditor is required to be a member of a national accounting or auditing body or institution which in turn is member of the International Federation of Accountants (IFAC) or member of a national accounting or auditing body or institution.

The Auditor will employ staff with appropriate professional qualifications and suitable experience with IFAC standards and with experience in verifying financial information of entities comparable in size and complexity to the grant recipient.

The Auditor has sufficient knowledge of relevant laws, regulations and rules in the country. This includes but is not limited to taxation, social security and labour regulations, accounting and reporting.

The Auditor will provide CVs of the staff/experts involved in the expenditure verification. The CVs will include appropriate details for the purpose of the evaluation, of the offer on the relevant specific experience for this expenditure verification and the qualifying work carried out in the past.

The Auditor must not have been involved in the operation’s accounting and must not be personally connected in any way with the organisation being audited.

The expert audit company must be legally registered in Moldova.

4. OBJECTIVES OF THE AUDIT

The audit reports must show the total project costs and follow the following principles:

The objectives of the external audit in accordance with § 4 of the project contract with the BMSGPK are:

• Examination of the correct accounting on the basis of original documents (including contracts, reports on the services provided, invoices, auxiliary materials);
• Devaluation of the original documents with the notation "Funded by the Austrian Federal Ministry of Social Affairs, Health, Care and Consumer Protection" on all invoices and payment receipts;
• Examination of the efficiency, the reasonableness, and appropriateness of project expenditures;
• Examination of the activity and time sheets of the participating experts;
• Examination of the classification of expenses within the budget lines of the planned budget: personnel, travel costs and other expenses (g. rent, supplies, operating costs, etc.);
• Examination of the expenditures and income and whether any duplication of funding has occurred;
• Examination of the overall financial management of the project;
• Review of financial flows (project-related cash flows Diakonie ACT Austria- Neoumanist, original invoices, payment receipts, bank statements, etc.);
• Confirmation of the correct accounting of expenses at the bank accounts of Neoumanist on the basis of original documents;
• Examination of the plausibility of the exchange rates € / RSD
• Confirmation of all income in foreign currencies to the bank accounts of Neoumanist on the basis of receipts of payment and statements of accounting and confirming the proper play in accordance with statutory accounting rules in Moldova.
• The audit encompasses the total expenditures in Moldova occurred under the project.
• The audit report shall be submitted in English and The procedures regarding the audit are conducted on the premises of Neoumanist and include the examination of all the original documents/vouchers. Neoumanist is obliged to provide to the auditor all information and all documents necessary for conducting the audit.

5. WORK PLAN

The procedures regarding the audit reports are conducted on the premises of Neoumanist and include the examination of all the original documents/vouchers. Neoumanist is obliged to provide the auditor with all information and all documents necessary to conduct the audit.

The audit shall take place in October 2025 and 2026 respectively. The maximum period for the fulfilment of the contract (performance period) for the auditing is 30 calendar days for the final report:

• The auditing for the audit reports (interim and final) should be started on 01 October 2025 and 2026 respectively and be completed within 10 calendar days at the latest.
• A draft of the audited interim and final report should be delivered to Neoumanist and Diakonie not later than 10 October 2025 and 2026 respectively electronically per e-mail.
• Any open questions can be addressed to the auditor within 10 calendar days after sending the draft of the audited reports. On 31 October 2025 and 2026 respectively, a final version of the audited reports has to be sent to Neoumanist and Diakonie electronically per email and triplicates of the hard copy reports and a management letter (both documents in English) to Neoumanist.

6. STRUCTURE OF THE AUDITED REPORT

The Auditor shall produce an Expenditure Verification Report which contains at least:

• Title
• Addressee
• Brief description of the project and partner(s)
• Period covered by the report
• 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
• Description of the procedures performed
• Factual findings
• Recommendations, if applicable
• Follow up of previous recommendations, if applicable
• Other relevant matters
• Date of the report
• Auditor’s address and signature

The Report shall also comprise the following annexes:

• Financial Statement
• Bank account statements
• List of payable invoices, if any
• In case ineligible costs are detected, a list of respective vouchers
• Asset list, if applicable
• If expenses contain Value Added Tax (VAT), the Auditor shall certify that Grant Recipient is not exempt from VAT and cannot reclaim it either.

7. Criteria for determining the best offer (criteria for acceptance of a tender):

The offer must be submitted in English.

• The price concerning provision of services:
  Total price (fixed price) for all services according to the contract including all taxes and duties (a possible value added tax should be shown separately);
• A clear timetable for the duration of the implementation of auditing:

indication of the time of the start, duration and conclusion of the examination as well as duration of preparation and sending a draft report and interim/final report with the respective number of days;

• Experiences in the field of auditing:

• Brief description of the auditor (including a confirmation on the application of internationally accepted auditing standards in Moldova as well as national auditing standards - ISA, IAASB) and general references (a brief description of at least five reference services within the period of the last three years - figuring to the date of posting of this call for tenders – with naming the client and the contract value);
• References from non-governmental organisations ("NGO") or non-profit associations respectively non-profit organisations (“NPO”): a brief description of the order-giving organisation, the specific subject of the contract for auditing as well as the contract value.
• Information regarding the qualifications and experiences of those employees who will conduct the auditing (including CVs).

Missing, incomplete or untrue information to one of the above-described criteria will lead to a withdrawal from the concerning tender.

The above criteria regarding the decision of acceptance of tender are ranked and weighted as followed:

The price (item 1) will be determined through calculation. The items (2) und (3) will be evaluated by a commission.

The labour and social laws in Moldova have to be followed, the offer must contain an appropriate note regarding this issue; otherwise, this offer may not be considered in the evaluation of the tenders.

The parties agree on the exclusive jurisdiction of the competent court in Vienna for any claims or disputes arising from or in connection with the contract.

The jurisdiction for any disputes arising from the stand is Vienna.

The deadline for submission of quotations ends 10 calendar days after the date of sending/posting this invitation. The period of acceptance, to which the suppliers are tied to in their bids, ends one month after the end of the offer period.

The offer must be legally signed and either sent in a sealed envelope bearing the words “Audit tender SAVE project – Moldovan part” handed in at the office of Association for Education Neoumanist str. Ion Creanga 31, Straseni, MD3701 or in electronic form to the e-mail v.timbalari@gmail.com

Deadline for submission is the 30^th of March Offers that arrive too late cannot be considered and will therefore be eliminated.