Terms Of Reference For BMZ Project Financial Audit – Central African Republic

Terms Of Reference For BMZ Project Financial Audit – Central African Republic Introduction Tearfund (TF) is a Christian charity which partners with churches in more than 50 of the world’s poorest countries. We tackle poverty and injustice through sustainable development, by responding to disasters and challenging injustice. We believe an end to extreme poverty is possible. Tearfund wishes to engage the services of an audit firm for the purpose of auditing the project: “Project to consolidate peace in Lobaye through resilience-building interventions in WASH, social cohesion and livelihoods”, funded by the German Federal Ministry for Economic Co-operation and Development (BMZ): Structural transitional aid.

The project-based audit shall be carried out in accordance with international audit standards issued by ISA. The audit shall be carried out by an external, independent, local, and qualified auditor. 2 . Project information Project name : Project to consolidate peace in Lobaye through resilience-building interventions in WASH, social cohesion and livelihoods Project ref no . 2022.1807.1 / 502 E6050 CAF-0023/001 Project audit period : Year 1: 16.11.2022 – 31.12.2022 with spending period extended until 30.04.2023 Year 2: 01.01.2023 – 31.12.2023 Total expenditure(euro) : 1,225,000 (one-million-two-hundred-twenty-five thousand Euro), Location of the audit:  TF Central African Republic Country Office in Bangui 3.

Scope of the audit The auditor would carry out the audit of the project in accordance with the International Standards on Auditing (ISA), the International Standard on Assurance Engagements (ISAE) 3000 and the International Standard on Quality Control (ISQC), all in their most recent version. The Auditor designs and carries out the audit in accordance with the objective and scope of this set of rules and the procedures.

The Auditor may apply techniques such as inquiry and analysis, (re)computation, comparison, other clerical accuracy checks, observation, inspection of records and documents, inspection of assets, obtaining confirmations or any others deemed necessary in carrying out these procedures. The audit of the project(s) will include such tests and auditing procedures to the extent the auditor considers necessary under the circumstances.

The auditor obtains sufficient appropriate verification evidence from these procedures to be able to draw up a report of factual findings. The auditors are to be obliged to draw up their audit report in accordance with the model provided by BMZ. Special attention should be paid by the auditor as to whether: all applicable relevant BMZ rules and regulations and contractual engagements have been adhered to: Cooperative agreement Administrative Procedures; BMZ Standards for reporting; Approved budget (cost Plan); funds have been provided and used in accordance with the relevant financing agreements, with due attention to economy and efficiency, and only for the purposes for which they were provided; Project funds transferred to the project partner in the current budget year or during the project term; interest earned in the current budget year or during the project term from project funds transferred to the project partner goods, works and services financed have been procured in accordance with the relevant financing agreements, including specific provisions of Tearfund Central African Procurement Policies and Procedures; all necessary supporting documents, records, and accounts have been maintained in respect of all project activities.

Accounting records are correct and complete. The auditor is also expected to verify that respective reports issued during the period were in agreement with the underlying books of account; National laws and regulations have been complied with, and that the financial and accounting procedures approved for the project (e.g. financial procedures manual, etc.) were followed and used; this applies as well to personnel costs and social security contributions w