TENDER DOSSIER – CONSULTANCY SERVICES FOR PROJECT (EAF0101) AUDIT

ORGANIZATION BACKGROUND

Johanniter Unfall-Hilfe e.V. (Johanniter International Assistance) in German Non-Governmental Organization, dedicated to excellence in the field of First Aid, Ambulance Service, Social Service Programmes and other projects in the Medial and Social fields. The Federal Headquarters are based in Berlin, Germany. Johanniter International Assistance (JIA) is the Department for Development, Cooperation and Emergency Aid, implementing and supporting projects worldwide. Our aim is to ensure the survival of people affected by disasters and to strengthen and secure the health, resilience and livelihoods of communities in the regions where we work. We develop our international programmes together with local communities in a culturally and gender sensitive way, based on the community needs. We recognize the importance of addressing climate change challenges and gender equality and include them as core topics in all programmes.

In South Sudan JIA has been implementing directly.

In Kenya, JIA has been working with AICHM. AICHM is a National local actor as defined through the work steam 2 (localization) of the grand bargain and responds to the detained definition worked by the IASC financing taskforce where national actors are defined as CSO operating in the aid recipient Country in which they are headquartered, working in multiple subnational regions and not affiliated to an international NGO, AIC is registered under the Society Act of Kenya (The Societies rules, 1952 registration under section 5 ( 2) of the societies ordinance in 1961.

In Uganda JIA has been working with CEFORD, a National NGO that operates in the whole of west Nile region of Uganda. The organization has been in this region since 2000 implementing both humanitarian and development projects. CEFORD in a non-profit and an indigenous NGO registered in November 2000 with Uganda Non- Governmental Organizations Board asS.5914/3432 according to the NGOs statutes of 1989; registered with the NGO bureau No. 3259: NGO permit No: 4265, CEFORD operates in all the districts of west nile region with its head office in Arua and unit offices in Nebbi, Zombo, Koboko, Moyo and Adjumani districts.

PROJECT TO BE COVERED BY AUDIT

Project Name: “Enhance access to health, nutrition and WASH services for people affected by the South Sudan crisis in South Sudan, Kenya and Uganda”.

• Donor: German Federal Foreign Office & ADH (ACTION DEUTSCHLAND HILFT)
• Project Period : August 1st 2020 to June 30th 2024
• Audit Timelines: 5th August 2024- 20th September 2024
  • Field work 5th August 2024 to 23rd August 2024
  • Draft audit report 6th September 2024
  • Final Audit Report 20th September 2024
• Audit location: Johanniter International Assistance country office Kenya (Nairobi) – Travel required to Country Office South Sudan, Uganda (Kampala & Arua) and project partner office in Nairobi Kenya.
• Audit Fee: Audit fee should include all expenses, including professional fees, travel, and accommodation.

DESCRIPTION OF FINANCIAL REPORTS TO BE AUDITED

The report to be audited is referred to as the Expenditure Utilization Report of Budget vs. Actual, Income and Expenditure Statement with narratives. These reports are prepared by the partner organization using MS Excel or any other appropriate accounting software.

AUDIT SERVICES REQUIRED

• An audit firm will be engaged to conduct an audit of the project that Johanniter has self-implemented in South Sudan, as well as the project being implemented through partner AICHM in Kenya and CEFORD in Uganda.
• The audit will be carried out in accordance with either International Auditing Standards.
• The audit period is from 1st August 2020 to 30th June 2024.
• The sample of vouchers checked should cover a minimum of 30% of the total transaction value.
• The audit should ensure that all categories of costs are included in the sample such as a) Procurements, b) Staffing costs, c) travel costs, training costs etc.
• The Scope of the audit is to be covered as follows:
  • To determine whether Donor funds can be separately identified from other donors’ funding and the records of income and expenditure are maintained separately.
  • To confirm whether financial reports submitted by partner are accurate.
  • To determine whether the financial management capacity and financial systems and internal control mechanisms within the organization are adequate to manage the funds provided on the program.
  • To ensure financial procedures are in line with German Foreign Office and ADH (ACTION DEUTSCHLAND HILFT) financial policy.
  • Where appropriate identify if Partner has spent own project funds in furtherance of the project.
  • To follow-up on the status of the agreed management action of previous audits.
• Audit Approach

The auditor’s work should include sufficient tests to establish whether:

1. An adequate budgetary control system is in place to monitor actual expenditure against budget lines on a periodical basis (preferably monthly and quarterly) basis and to take effective remedial action as necessary, with adequate segregation of duties in the maintenance and review of accounts and the performance of reconciliations.
2. Expenditure of donor funds managed by Partner has been disbursed and used in accordance with donor guidelines and other relevant agreements, and only for the purpose for which the funds were provided (confirmation of the amount of funds disbursed and outstanding balances should be provided directly to the auditors by the donor).
3. Goods and services financed by donor funding have been procured in accordance with the relevant financing agreements and with due regard to agreed procurement guidelines by either donor or Johanniter.
4. Inventories and assets registers are complete and accurate and the existence and ownership of assets and stock is regularly verified by physical checks to ensure that they are being used for the intended purposes of the project.
5. All necessary supporting documents, records, and accounts have been kept in respect of all project ventures including expenditures reported to donor. Clear linkages should exist between the books of account and reports presented to donor.
6. Records of transactions include accurate information regarding any variations in currency exchange rates, where relevant.
7. Expenditure of project funds has been approved at the correct level of delegated authority. This includes initial approval to incur expenditure and the payment of claims, invoices, salaries, allowances and any other items of expenditure charges to the project budget.
8. A field visit to project site in order to verify if the fund has been utilized effectively and whether the stated expenditure in the report justifies the work that has taken place in the field.

AUDIT REPORT AND MANAGEMENT LETTER

Audit Report

The audit report should clearly indicate the auditor’s opinion. This should include at least the following:

• A clear expression of opinion on the management of the project and on compliance with the funding agreement with German Foreign Office and ADH (ACTION DEUTSCHLAND HILFT).
• That it is a special purpose report for the German Foreign Office and ADH (ACTION DEUTSCHLAND HILFT).
• The audit standards that were applied.
• The period covered by the opinion.
• Whether the Statement of Expenditure for this project is adequately and fairly presented. The disbursements made are in accordance with the purpose for which funds have been allocated to the project.
• A statement on the total population of vouchers and how the audited sample was chosen.
• Besides an opinion on the project financial statement, the report should include a separate paragraph commenting on the accuracy and propriety of expenditure of German Foreign Office and ADH (ACTION DEUTSCHLAND HILFT) funding and the extent to which German Foreign Office and ADH (ACTION DEUTSCHLAND HILFT) can rely on partner financial reports as a basis for funding disbursements.

The draft audit report should be submitted to Johanniter International Assistance by 6th September 2024 and the signed audit report will be submitted to Johanniter International Assistance by 20th September 2024.

Management Letter

The management letter should cover the following topics/issues:

• A general review of project progress and timeliness in relation to progress milestones and the planned completion date, both of which should be stated in the project document or Annual Work Plan (AWP). This is not intended to address whether there has been compliance with specific covenants relating to specific performance criteria or outputs.
• An assessment of the project’s internal control system with equal emphasis on (i) the effectiveness of the system in providing the project management with useful and timely information for the proper management of the project and (ii) the general effectiveness of the internal control system in protecting the assets (if any) and resources of the project.
• Give comments and observations on the accounting records, systems and controls that were examined during the course of the audit.
• Identify specific deficiencies and areas of weakness in systems and controls and make recommendations for their improvement.
• Report on the degree of compliance with the financing agreement and give comments, if any, on the internal and external matters affecting such compliance.
• Give an opinion on the potential for fraud and corruption in implementation of the project, and provide details of any actual fraud or corruption incidents during the period under review and the value of possible losses.

Project Financial Statements

• The Project Financial Statements should include: –
  • A Summary of Sources & Uses of Funds showing the sources of German Foreign Office and ADH (ACTION DEUTSCHLAND HILFT) and counterpart funds separately and the uses of funds by disbursement category.
  • A Statement of Uses of Funds by Project Activity showing expenditures of the project under each of the main project component and sub-component headings.
  • A separate note of any ineligible expenditure identified during the review.
• As an annex to the Project Financial Statements, the auditor should prepare reconciliation between the amounts shown as received by the project from German Foreign Office and ADH (ACTION DEUTSCHLAND HILFT) and that confirmed as being disbursed by German Foreign Office and ADH (ACTION DEUTSCHLAND HILFT). As part of that reconciliation, the auditor should indicate the mechanism for the disbursement e.g. direct/indirect reimbursement, direct/indirect expenditures.

Audit Certificate

• A copy of Audit Certificate of the audit firm appointed as to ensure professional accreditation.

Safeguarding and protection

The consultant/Agency will be expected to sign a Johanniter safeguarding and protection policy ensuring adherence to high standards of safeguarding protection of its staff, enumerators and people we work with during the course of this exercise.

For a detailed Tender Dossier and TOR, please refer to the link below:

https://www.4juh.de/web/public-link/27912fea-da8f-4194-97db-6a1e6d6f2558/download