EXTERNAL AUDIT TERMS OF REFERENCE

1.     INTRODUCTION

Diakonie ACT Austria gem. GmbH, and Neoumanist Association for Education (NAfE) as local implementing partners, signed a cooperative agreement for implementing the project “Count Us In - Social protection and inclusion of older people through accessible social services in the the day care centre ”Rasarit” in Straseni”.                                                                                                                            The project is carried out in in Moldova by Neoumanist Association for Education (NAfE), and will be implemented from 01.01.2025 to 31.12.2025.

The project is supported with funding from Otto per Mille of the Valdensian Church and Bread for the World Austria.

2.     BACKGROUND OF THE PROJECT

The key problem this project will address is the poverty and social exclusion of older people in Moldova. Living conditions for older people in rural areas of central Moldova, where the project is located, are particularly difficult: Only two thirds of households have a water supply, just over half have a sewage system, 43.5% have a bath or shower and 90.5% heat their homes with wood or coal stoves. More than a third of the over 3,000 pensioners living in the town of Straseni officially require social assistance.  With the absolute poverty rate of 39,3% and extreme poverty rate of 17,9% poverty in central Moldova is higher than the national average. Most of the older people receive a farmers’ pension of only EUR 120, which is below the average pension of EUR 165. Some receive no pension at all and only a social allowance of about 68 EUR. These amounts are insufficient to cover basic needs such as food, electricity or heating.

With this project, Neoumanist aims to offer basic care services and socialization activities to older people of the town of Straseni in the organization’s day care centre “Rasarit” as well as promote positive changes in social norms, local planning and social policy, that will impact on all older people in Straseni district and ultimately across the country. The aim of the project is to provide 173 older men and women living in poverty (126f and 47m) with the basic needs and socialization activities offered by the day care centre. In addition, the sustainability of the project is improved through constant training in organisational development, as well as lobbying and advocacy activities directed at state authorities.

General objective:

The general objective of the project is to reduce poverty among older people in the Republic of Moldova and ensure their access to social protection.

Specific objective:

The specific objective is that older people living in Straseni have improved their quality of life and social inclusion through access to social protection, active engagement and aware and responsive authorities.

Results:

Result 1: Older people in Straseni town enjoy social protection through basic care services and socialisation activities offered by the day care centre

Result 2: Neoumanist’s capacity is strengthened through continuous trainings and workshops.

Result 3: Promotion of good practices for active ageing and quality services for older people in Moldova

3.     GENERAL INFORMATION AND REQUIRED EXPERTISE

The audit should be conducted for the entire project period 01.01.2025 to 31.12.2025. The project amount to be audited is EUR 65.000 (including audit costs). The audited report must show the total project costs. 

The auditing firm is asked to:

• Check that all expenses are recorded in the NGO’s accounts and are backed by original documents;
• Check if financial transfers (bank, cash) are understandable and in line with reported expenditures (including usage of confirmed exchange rate EUR/MDL.

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 auditor company must be legally registered in Moldova.

The Auditor is a member of a national accounting or auditing body or institution which in turn is member of the International Federation of Accountants (IFAC)

or

The Auditor is a member of a national accounting or auditing body or institution. Although this organisation is not member of the IFAC, the Auditor commits himself/herself to undertake this Engagement in accordance with the IFAC standards and ethics.

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 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 behavior 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.

4.     OBJECTIVES OF THE AUDIT

• Examination of the correct accounting on the basis of original documents (including contracts, reports on the services provided, invoices, auxiliary materials);

• Audition of the overall financial management and verification of the compliance with the respective social and labour laws, as well as its proper application of procurement laws and policies.

• Devaluation of the original documents with the notation "Funded by Otto per Mille” on all invoices and payment receipts (stamping of original vouchers);

• Examination of the efficiency, the reasonableness, and appropriateness of project expenditures;

• Examination 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.);

• Examination of the expenditures and income, any duplication of funding and the overall financial management of the project;

• Review of financial flows (project -related cash flows Diakonie ACT Austria- Neoumanist Association for Education (NAfE), original invoices, payment receipts, bank statements, etc.);

• Confirmation of the correct accounting of expenses at the bank accounts of Neoumanist Association for Education (NAfE) on the basis of original documents;

• Confirmation of all income in foreign currencies to the bank accounts of Neoumanist Association for Education (NAfE) on the basis of bank statements of accounting (including statements of exchange rates EUR/MDL and confirming the proper usage in accordance with statutory accounting rules on bookkeeping in Moldova;

• Examination of the usage of the exchange rates EUR/MDL from the bank confirmations for all project related expenses.

5.     WORK PLAN

The procedures regarding the audit report are conducted on the premises of Neoumanist Association for Education (NAfE) and include the examination of all the original documents/vouchers. Neoumanist Association for Education (NAfE) are obliged to provide the auditor with all information and all documents necessary to conduct the audit.

The audit report shall be submitted to Diakonie ACT Austria within two months, at the latest, after the end of each project year. A draft of the audited report should be delivered to Diakonie ACT Austria and the project partner Neoumanist Association for Education (NAfE) electronically per e-mail on 14.02.2026 at the latest.

Any open questions can be addressed to the auditor within 15 calendar days after sending the draft of the final report. After a period of clarification of 10 days, a final version of the audited report must be completed and forwarded to Neoumanist Association for Education (NAfE) and Diakonie ACT Austria electronically per e-mail on 28.02.2026. Furthermore, Diakonie ACT Austria needs two hard copies of the audit report.

The audited report shall be submitted in English.

6.     STRUCTURE OF THE AUDITED REPORT

The auditor shall produce an audited report that clearly states:

• Project name;
• Implementing organisation;
• Reporting period and local currency (in case of reporting in another currency than EUR);
• Exchange rates EUR/MDL used in the Financial Project Report;
• Comments on efficiency, reasonableness, and appropriateness of project expenditures;
• Total amount of budgeted income and expenditures;
• Total amount of actual income and expenditures;
• Comments on not-accepted vouchers;
• Confirmation of the correct accounting of expenses;
• Closing balance (including cash, bank and other assets, e.g. advance payments and outstanding checks);
• Auditor's name, position, address, phone, fax and e-mail; and
• Date, auditor's signature and authorisation.

The Auditor's Report should offer an opinion on the following areas:

• Is the Financial Project Report in accordance with bookkeeping?
• Do the received funds match the bookkeeping?
• Does the bookkeeping match the vouchers?
• Are there proper vouchers for all transactions?
• Does the bookkeeping match the Official Bank Account Statements and Cash Book?

7.     MANDATE

The NGO and sources will provide the external auditor with the following material:

• contract between Diakonie ACT Austria and Neoumanist Association for Education (NAfE)
• Final project reports with financial reports (including financial statements and list of bills)

The project managers, the accountants and the staff working on the project will be open to collaboration with the expert auditor.

Auditing firm: (please fill in)

Name/s of Auditor/s: (please fill in)

We hereby confirm that we will carry out the audited report of the project mentioned above according to the guidelines laid down in this documents (ToRs).

…………………………………………………..                       …………………………………………………

Place and Date                                                                                                            Signature

Files scaned and sighned will be send to v. timbalari@gmail.com with the subject  „Audit Rasarit ”, till 24 of October  2025, 17 PM.