External Audit

Terms of Reference (ToR)

Financial External Audit Consultancy

For The National Association for Family Empowerment (NAFE-Jordan)

1.Background:

Established in 2011, (NAFE) is a national non-profit civil society organization dedicated to promote human rights and gender equality and women and youth empowerment, and facilitate their inclusion in economic, social and political arenas. NAFE provides a range of programs and services aimed at improving the well-being of families, with a focus on education, counselling, and resource provision.

In view of the women Economic Growth towards Sustainable Economic Resilience and Protection project which will run until 31 December 2026 with the support of the European Regional Development and Protection Program (RDPP) for Lebanon, Jordan Phase III.

NAFE is planning to conduct an independent evaluation of the organization’s financial statements and reporting practices to ensure accuracy, compliance with applicable regulations, and alignment with the strategic approach, vision of the organization and donor requirements. This consultancy aims to identify potential financial discrepancies, assess the effectiveness of internal controls, and provide actionable recommendations that enhance financial accountability and transparency, ultimately fostering trust among stakeholders and supporting the organization’s mission in development efforts.

2. Objective of the consultancy:

1. The objective of the audit of NAFE financial statements is to enable the auditors to express an independent professional opinion on the financial position of NAFE and to ensure that the funds utilized to NAFE activities have been used for their intended purposes.

2. The books of accounts of NAFE provide the basis for preparation of the NAFE Financial Statements. Proper books of accounts as required by law have been maintained by NAFE and also maintain adequate internal controls and supporting documentation for the transactions.

3. Scope of the consultancy:

The consultancy will focus on evaluating both the financial capacities and operations of NAFE, ensuring that the findings feed into future financial capacity strengthening that align with NAFE’s financial by-laws, policies and regulations and contribute to its overall growth in capacities and donor base.

1. The audit will be carried out in accordance with the International Auditing Standards and will include tests and verification procedures as the auditors deem necessary.

2. Verify all funds have been used in accordance with the established rules and regulations of NAFI and only for the purposes for which the funds were provided.

1. Goods, works and services financed have been procured in accordance with the NAFI established rules and procedures.

4. Appropriate supporting documents, records and books of accounts relating to all activities have been kept. Clear linkages should exist between the books of accounts and the financial statements presented to.

5. The financial statements have been prepared by NAFI management in accordance with applicable accounting standards and give a true and fair view of the financial position of NAFI and of its receipts and expenditures for the period ended on that date.

6. Comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions.

7. Express an opinion as to reasonableness of the financial statements in all material respects.

8. Include in their reports opinion on compliance with procedures designed to provide reasonable assurance of detecting misstatements due to errors or fraud that are material in the financial statements.

9. Conduct entry and exit meeting with the Executive Director of NAFI.

10. In addition to the audit report, the auditors will prepare a Management Letter on the following:

a. Give comments and observations on the accounting records, procedures, systems and controls that were examined during the course of the audit.

b. Identify specific deficiencies and areas of weakness in systems and controls and make recommendations for improvement.

c. Report on the implementation status of recommendations pertaining to previous period audit reports.

d. Communicate matters that have come to their attention during the audit which might have a significant impact on the sustainability of the organization.

e. Bring to the Executive Director’s attention any other matters that the auditors consider pertinent.

4. Deliverables:

The consultant(s) will be expected to deliver the following:

A. Inception Report:

A report outlining the proposed methodology, work plan, and tools for assessment, submitted within the first week of the consultancy.

B. A comprehensive financial Audit report

– Breakdown of recommended financial statements aligned and compliance procedures, derived from the areas for improvement and recommendations appended to the Financial Statements along with the reports to the attention of the Executive Director in both Arabic and English.

– Each proposed initiative must carry a realistic and reasonable estimated cost with a clear timeline for implementation.

– Proposed financial statements and reports must contain knowledge management tools/systems that ensures knowledge transfer and avoids loss of learnings.

5. Duration and Timeline: The consultancy will be conducted over a period of two weeks (14 days). Below is the proposed timeline:

– Week 1: Inception phase (initial meetings, desk review, submission of inception report) – 2 days

– Week 1: Data collection (interviews, focus groups, document review) – 2 days

– Week 1: Interim report submission and feedback – 3 days

– Week 2: Data analysis and drafting of the final report includes the plan– 3 days

– Week 2: Submission of the final report and presentation of findings – 4 days

6. Presentation of Findings:

A formal presentation to NAFE leadership and stakeholders summarizing the key findings and recommendations, with actionable next steps.

7. Required Qualifications:

The applicant / (s) based in Jordan having affiliation/membership with an internationally reputed audit firms will be eligible to apply. The ideal consultant(s) should have:

-Proven experience in conducting similar audit and assessments, particularly for NGOs and local actors.

-Experience in collecting data, writing such kind of analytical reports and preparing the recommendations

-10 years’ Experience working with local partners on financial auditing for the NGOs financial regulations and systems.

-Knowledge of financial Software and programs.

-Strong analytical, communication, and report writing skills.

-Fluency in Arabic, and very good English is preferred;

8. Application Process:

Interested applicants are requested to submit their technical and financial proposals and the following documents in a sealed envelope, signed and stamped, to (Amman, Al-Webdeh Mountain, Qadri Touqan Street, building No.4, Office No.1) from Wednesday 6th November to Thursday 21st November between 8:30 AM and 4:00 PM.

• CV(s) of the consultant(s)
• A technical proposal outlining the methodology, approach, and timeline
• A financial proposal detailing the cost (daily rate) of the consultancy.
• Examples of similar previous work and references from relevant assignments.

9.evaluation Criteria:

-40 % for consultant relevant experience

-30% Similar previous work for the consultant

-30% financial offer

10. Reporting and Supervision:

The consultant(s) will report directly to NAFE’s Project Manager and work closely with key NAFE staff and partners, when and if necessary, to ensure the successful completion of the assignment.

11.Language:

-The languages of the resulted documents should be English whereas some documents would be requested in Arabic.

-The expected date to start this mission is 1st December, 2024

12. Candidates Selection Timeline:

• Deadline for receiving complete (technical and financial) proposals is 21st November 2024. Late submissions will not be considered.
• 10 days to evaluation of proposals, candidates’ interviews, and contracting from the date of losing the application process.

13. payment Terms:

The consultancy fees will be disbursed as per the following schedule:

-50% upon signing the contract (1st disbursement)

– 50% upon submitting and approve all required documents by NAFE.