Terms of reference – Financial audit of partners implementing The Irish Aid joint transitional programme for gender based Violence (GBV) in busoga

 

TERMS OF REFERENCE

FINANCIAL AUDIT OF PARTNERS IMPLEMENTING

THE IRISH AID JOINT TRANSITIONAL PROGRAMME FOR GENDER BASED

 

VIOLENCE (GBV) IN BUSOGA.

FUNDED BY IRISH AID

INSTRUCTIONS

The following are the terms of reference (ToR) on which the Financial Management Agent agrees to engage the Auditor to perform both financial and procurement audits and to report in connection with the project.

DEFINITIONS

In these ToR the following terms shall apply:

  • “Audit” refers to this assurance engagement which comprises one annual expenditure and income verification.
  • Project” refers to the project subject to audit as described in Section 3 of these ToR.
  • Financial Management Agent” refers to grant managers of the grant.
  • Agreement” refers to the Agreement signed between the Irish AID and the Uganda Women’s Network (UWONET).
  • Contractual Conditions” refers to the conditions, rules, criteria, which are set out in the agreements for the Project.
  • “Financial Report” refers to the Financial Report of the Project prepared by ADA. The Financial Report presents the actual expenditure incurred and revenue received for the Project for a specified period. The expenditure and revenue are the subject of this audit.
  • Auditor” refers to the audit firm to be contracted for performing this audit and for submitting a report to the Financial Management Agent.
  • Contracting Authority” refers to UWONET contracting this audit.
  • Service Contract” refers to the contractual document for this Audit signed between the Auditor and the Financial Management Agent.

BACKGROUND

The GOU- Irish Aid joint programme which focuses on Busoga region was based on the UBOS, 2006 UDHS findings which registered the highest incidence of sexual violence in the country. The programme is a collaborative effort of the Government of Uganda (GoU) through the Ministry of Gender, Labour and Social Development (MoGLSD) in partnership with Uganda Women’s Network (UWONET), Centre for Domestic Violence Prevention (CEDOVIP),Uganda Episcopal Conference (UEC),) and the Inter-religious Council Uganda (IRCU). The project is financed with support from Irish Aid. A Memorandum of Understanding was signed between Irish AID and the Uganda Women’s Network (UWONET) to manage the grant, UWONET subsequently signed MOUs with the other partners as the Financial Management Agent.

OBJECTIVES AND SCOPE OF THE AUDIT

The objective is to audit the Fund Accountability Statement for the Gender-based Violence Prevention and Response programme for Busoga Sub- Region for the period 1st December 2016 to 31st July 2017 and to express an opinion according to the international Standards on Auditing. The Partners to be audited are the Uganda Women’s Network (UWONET), CEDOVIP, Uganda Episcopal Conference (UEC),) and the Inter-religious Council Uganda (IRCU).

Specifically, the auditor will perform the following:

  • Audit the Fund Accountability Statement for the period in question.
  • Ascertain the effectiveness of internal controls over the management of the grant for each sub grantee.
  • Ascertain whether Irish Aid funds were utilized for the purposes intended and in accordance with the provisions of the memorandum of understanding signed between the Irish Embassy and UWONET as well as the memorandums of understanding between UWONET and the other implementing partners.
  • Ascertain whether personnel costs debited to the project/programme are recorded throughout the year in a systematic way and examine whether the salary costs can be verified by sufficient supporting documenta
  • Ascertain that there is compliance with the local regulatory system with regard to payroll taxes, NSSF and VAT.
  • Ascertain that accounts have been prepared in accordance with the items specified in the budget taking into account approved budget amendments, if any.
  • Ascertain that the Financial Statements are prepared, in all material respects, in accordance with UWONET’s and partners financial procedures as stated in the Financial Policy and Procedures Manual and the Procurement Procedures.
  • Verify the Bank balances held by UWONET and the implementing partners ensuring that Bank accounts maintained for the Irish Aid funds received have not become overdrawn during the accounting period.
  • Support documentation for any fixed asset is adequate and that the fixed asset register has been adequately maintained and updated
  • Check that the system of internal controls is operating effectively, with particular attention to organization structure, authority levels, staff competence, accounting records and supporting documentation, segregation of duties, and program monitoring arrangements;
  • Ensure that UWOMET’s system of management of funds is operating effectively
  • Proof of expenditures through genuine and original vouchers bearing all the necessary information;
  • The procurements conducted by the partners are in compliance to the partners’ procurement policies and procedures, furthermore the eligibility of projects expenditures related to procurements shall be audited. The eligibility of expenditures refers to the following:
  • Goods, services and works are procured solely for the purpose of the projects and their costs comply with the principles of sound financial management;
  • All procurements are properly record and backed by originals of supporting evidence, and verifiable.

 

More specifically, the audit should cover:- Fraud, International Standard on Auditing (ISA) 240 includes some detailed requirements in relation to the consideration of fraud which you will need to comply with in your audit work. Perform analytical procedures, examine journal entries, any adjustments and review accounting estimates and judgments.

The items tested should be selected from a complete sample of journals for the entire period.  Consider the accounting for unusual transactions, or for   items requiring high levels of subjective judgment, to ensure these are fairly stated. Incorporate an element of unpredictability.

Please notify us immediately if any frauds came to your attention during the audit. Ensure that all uncorrected misstatements which come to your attention are reported.

AUDIT STANDARDS AND GUIDANCE

The Auditor who performs this financial audit shall be governed by:

  • International Standards on Auditing (ISAs) for audits of historical financial information insofar as these can be applied in the specific context of a contractual compliance audit;
  • IAASBs Engagements Standards (ISAS, ISREs, ISAEs and ISRs) as set out in the “Guidelines for Auditors”. The IFAC Code of Ethics for Professional Accountants (issued by IFAC’s International Ethics Standards Board for accountants (IESBA), which establishes fundamental ethical principles for auditors with regard to integrity, objectivity, independence, professional competence and due care, confidentiality, professional behavior and technical standards;
  • The IFAC international standards on quality control (ISQCs), which establish standards and provide guidance on an auditor’s system of quality control.

REQUIREMENTS FOR THE AUDITOR

Qualification and Experience

  • Eligibility criteria ( to be fulfilled obligatorily)
  • The Auditor must be legally authorized to provide the audit services in question.
  • The Auditor is a member of a national accounting or auditing body or institution, which in turn is a member of the international federation of accountants (IFAC) or
  • For Auditors based in the republic of Uganda: the Auditor and/or the firm is registered as a statutory Auditor in the public register of a public oversight as set out in the legislation of Uganda (Institute of Certified Public Accountants)

The Auditor must have:

  • At least 10 years of consistent audit experience with similar projects;
  • Experience with IFAC standards, in particular international standards in auditing;
  • Experience with auditing donor funded projects comparable in size and complexity to the project being audited.
  • Experience with audit of procurement procedures

 

AUDIT PROCEDURES

Audit Documentation and Evidence

The  Auditor  shall  in  accordance  with  ISAs  prepare  the  audit  documentation  as  well  as  obtain appropriate audit evidence to support audit findings and to draw reasonable conclusions on which to base the audit opinion. The Auditor uses professional judgment to determine whether audit evidence is sufficient and appropriate taking into account the Contractual Conditions.

Start and Period of the Audit

The audit shall commence on 4th September 2017 and will end on 15th September 2017, the draft financial statements shall be expected on 22nd September 2017 and final report on 23rd September 2017.The service contract for the Audit will be signed after the selected Auditor is approved by the Financial Management Agent.

The Audit shall start with an opening meeting together with the Financial Management Agent. In this meeting the Audit shall be discussed and the Auditor will explain the planning and conduct. The Financial Management Agent will grant the Auditor access to all information and all documentation required to perform the audit.

Planning and Conduct

The Auditor shall plan the Audit so that it will be performed in an effective and efficient manner. Adequate planning involves ensuring that appropriate attention  is devoted to important  areas of the audit, that  potential  problems are identified  and resolved on a timely  basis and that  the  audit  is properly organized and managed in order to be performed in an effective and efficient manner.

AUDIT REPORT

The Auditor shall prepare a financial audit report covering the period of the project as defined in the partnership agreement.

The draft report and final report shall be submitted to the CA for review as per the time schedule. The CA will review the report any comments and changes to the draft report requested by the CA shall be incorporated in the final report. Additionally, the final report shall be submitted in three (3) hard copies the Financial Management Agent.

The report shall be structured as follows;

  1. Management letter (audit opinion) of the project
  2. Executive summary of findings
  3. Audit (Objectives, Scope and Procedures). The Following should be included here;
  4. Confirmation of all money received (transfers, interests and others, if any)
  5. A financial statement for each cost summarizing the expenditure as approved by the auditors and structured according to the  approved budgets as per  the  financing agreement
  6. List of procurement contracts awarded during the reporting period.
  7. Findings and Recommendations
  8. Findings from the evaluation of the project’s internal control systems
  9. Specific Matters, if any
  10. Annexes

The fund accountability statement must be signed by the authorized officials.

Technical and Financial proposals should be submitted not later than 18/08/2017

Uganda Women’s Network
Plot 710, Block 216, Mirembe Close
Bbuye- Kigowa, Ntinda, Kampala
P.O. Box 27991- Kampala, Uganda
Tel: 0414 28 65 39 Mob. 0759330000
Email: info@uwonet.or.ug

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