Call for Proposals – External Financial Audit for the AID Project

TERMS OF REFERENCE OF AN EXTERNAL AUDIT

NAME OF THE SPONSOR:  Caritas Espanola

PROGRAMME TITLE: AID- Acting for immediate and integrated support for conflict affected people in Moldova 

FROM: 01.05.2024 to 30.04.2025;             

TOTAL BUDGET: 250 000 Eur                        

AUDITED PERIOD: 01.05.2024- 30.04.2025

AMOUNT TO BE AUDITED: 250 000 Eur

BACKGROUND  

OBJECTIVE

The objectives of this audit are to enable the Auditor to express an opinion on whether:

1. the Financial information and reports (see annex 1) accurately present, in all material respects, the actual expenditure incurred and the revenue received by the Project Holder for the period 01/05/2024 – 30/04/2025, in conformity with the applicable Contractual Conditions set with donor;
2. the incomes and expenses, assets and liabilities are adequately supported by original documentation and have been properly accounted for, following the filing system procedure;
3. that documentation is clear and provides a fully justifiable audit trail to the external eye, particularly ensuring the link from purchase request, to payment, to distribution is transparent;
4. correct application of the segregation of duties principle in term of authorization, execution and control;
5. procurement procedures are applied correctly and procurement plan is up to date; procurement process for each procurement above 500 EUR should be checked;
6. there is compliance with local regulation regarding VAT, other taxes and salaries;
7. key documentation and figures are translated into English in order to maintain a fully traceable audit trail;
8. the shared cost policy is applied correctly and consistently including cost sharing between different donors;
9. mission documents are provided for travel items to ensure justifiable and traceable allocations;
10. exchange rates between different currencies are applied consistently and correctly and are justified by appropriate documentation;
11. the physical and accounting treatment of fixed assets is correct with the inventory systems showing proof of existence;
12. adequate and effective internal control system exist;
13. recommendations from previous audits are followed and their current status;
14. the risks of the project are adequately identified and mitigated.

AUDIT SCOPE

The audit work shall cover the adequacy of accounting and financial operations, reporting and management as well as accounting procedures (referring to the national law and the international accounting standards).

A verification of mathematical accuracy is expected, in order to ensure that the expenditures described in the financial statements are reconciled with the supporting documents and with the bank statements.

The auditor verifies the eligibility of direct costs with the terms and conditions of the grant contracts. The auditors verify that all allocated costs are clearly identifiable and traceable in the accounting as clearly separated from all other funding. 

The auditor selects expenditure items and verifies all expenditure.  

VERIFICATION PROCESS AND METHODOLOGY

The audit methodology and the audit techniques to be used are those in accordance with international auditing standards and following the ISA 800 norm.

REPORTING

The audit report should include the following:

1. Audit method used and the scope of the audit.
2. A statement declaring that all information and documentation needed to complete the audit has been made available as required.
3. Declaration that the required audit standards that have been applied.
4. Distribution and use of the audit report.
5. Formal Opinion.
6. The period covered by the report.
7. Cash flow statement covering the implementation period 01/05/2024 – 30/04/2025
8. Statement of receipts and expenditures covering the implementation period 01/05/2024 – 30/04/2025.
9. Income table by source of funding (donations).
10. The balance at the end of the implementation period.
11. Risk Analysis table showing all the risks inherent to the project, the opinion of Auditor and the Management responses.

The auditor should submit a letter to the management at the completion of the audit. The management letter should include recommendations to address any weaknesses identified with regards to financial regularity, the internal control system, adherence to contract conditions (if applicable) and the effective use of financial resources.  The audit report shall be written in English language. Issued in a soft copy and 3 hard copies will be produced and delivered to Caritas Moldova.

DEADLINES

First draft of the audit report, for comments, should be shared with Caritas Moldova at the latest by 29/07/2025 and the final report, should be submitted at the latest by 31/07/2025.

SELECTION CRITERIA 

• Experience of your company and/or management in relation to the scope of audits for non-profit organisation. Please list at least three references of similar audits. – 40 points
• Proposed fee for the audit and in addition to fee please include details of expenses expected to be incurred, i.e. mileage, per diem, telephone, etc. – 50 points
• Time Requirements. – 10 points

 ELIGIBILITY OF THE AUDITOR

By agreeing these ToR the Auditor confirms that they meet at least one of the following conditions: 

1. The Auditor and/or the firm is a member of a national accounting or auditing body or institution that in turn is member of the International Federation of Accountants (IFAC).
2. The Auditor and/or the firm is a member of a national accounting or auditing body or institution. Although this organisation is not member of the IFAC, the Auditor commits him/herself to undertake this engagement in accordance with the IFAC standards and ethics set out in these ToR.
3. The Auditor and/or the firm is registered as a statutory auditor in the public register of a public oversight body in a third country and this register is subject to principles of public oversight as set out in the legislation of the country concerned (this applies to auditors and audit firms based in a third country).

PROPOSAL SUBMISSION 

Audit Company meeting the above criteria is requested to submit proposal containing:

• A confirmation by the company that it understands of the Terms of Reference and its capacity and capability to deliver according to the TOR;
• The methodology, work-plan and timelines for undertaking and completing the audit and the deliverables;
• Proof of registration with relevant governing and/or regulatory institutes;
• Financial proposal indicating the proposed fees and additional expenses;
• Description of specific audit approach used in the audit to ensure that the auditors will cover all pertinent areas.
• The CVs of key staff proposed for the assignment.

CONDITIONS FOR PROPOSAL 

• Only electronic submission to the following e-mails: procurement@caritas.md, fininciar@caritas.md
• Deadline for submission of offers: 11 July 2025, 17:00.
• Proposals received after the set time will be disqualified.
• The company must include a cover letter clearly stating the name, the address and the registration number of the firm; the name, address, email and telephone number of the company representative.

Companies may ask for clarification on any aspect of this request for proposals. Enquiries must be referred to the key contact Pinzaru Olga with the key contact – olga.pinzaru@caritas.md.

 Financial information to be prepared by Caritas Moldova before the start of the audit: 

1. List of Income and expenses related to: AID- Acting for immediate and integrated support for conflict affected people in Moldova  project

Total income listed by donor

2. Table of transfers & currency conversions
3. Expenses/costs presented by date and by budget line
4. Scanned vouchers for each transaction with the supporting documentation
5. Consolidated financial report against the last budget approved
6. List of project staff working on the action and percentages dedicated to working on the action
7. List of equipment bought through the action
8. A consolidated table of stock procurement, distribution and closing balance
9. Bank accounts statements at the beginning (complete as appropriate) and at the end of the period
10. Cash flow statement
11. Any other document requested by the auditors