TERMS OF REFERENCE FOR ANNUAL AUDIT SIDA FUNDED PROJECT
East Europe Foundation (EEF) is an international charitable organization established as a foundation, in accordance with the Law on Charitable Activities and other Ukraine laws.
EEF was registered on May 24, 2007. EEF goal is to build democratic systems in Ukraine, empower citizens and foster sustainable development through education, technical assistance and grant programs that promote civil society development, strengthen media, enhance good governance and build economic prosperity.
EEF wishes to engage the services of an audit firm for the purpose of auditing the Project “Partnership for Better Energy Use in Ukraine”, as stipulated in the agreement between EEF and Sida. The audit shall be carried out in accordance with international audit standards issued by IAASB . The audit shall be carried out by an external, independent and qualified auditor (Approved Public Accountant/Authorized Public Accountant or equivalent).
II. Objectives and scope of the audit
The objective is to audit the Financial report for the period ended December 31, 2015 as submitted to Sida and to express an audit opinion according to ISA 800/805 on whether the financial report of the Project is in accordance with Sida´s conditions for financial reporting as stipulated in the agreement between Sida and EEF; annex IV to the agreement between EEF and Sida.
III. Additional assignment according to agreed upon procedures 4400
1. Review all costs billed to Sida award. Based on materiality and risk the auditor shall examine whether there is supporting documentation related to incurred costs;
2. Sida accounts have been prepared in accordance with good financial practice and give a true and fair view of the financial situation of the Sida funds for the fiscal year ending on December 31, 2015;
3. Assess whether the procurements were in accordance with the EEF Policies and Procedures, as well as procurement guidelines annexed to the agreement between EEF and Sida. Review procurements to determine whether sound commercial practices including competition were used, reasonable prices were obtained, and adequate controls were in place over the qualities and quantities received;
4. The staff costs and related remuneration as well as reimbursable and project costs have been applied in accordance with EEF Policies and Procedures;
5. Review technical assistance and sub-grants. The Auditors must determine whether technical assistance and sub-grants were used for their intended purposes in accordance with the terms of the contracts with the subgrantees and contractors, Sida agreements and EEF policies and procedures;
6. Project and office costs have been applied in accordance with EEF Policies and Procedures and Sida requirements.
7. EEF compliance with rules and regulations in regard to taxes and social security fees.
IV The reporting
The scope of the audit shall be stated in the report and the methodology used shall be presented.
The reporting shall be signed by the responsible auditor (not just the audit firm) and title.
The reporting from the auditor shall include an audit report report/management letter with audit findings and weaknesses identified during the audit process. The auditor shall regardless of materiality quantify the amount for costs missing sufficient supporting documentation. The auditor shall make recommendations to address any weaknesses identified. The recommendations should be presented in priority.
Measures taken by EEF to address weaknesses identified in previous audits shall also be presented in the audit report/management letter.
The additional assignment according to agreed upon procedures under paragraph III shall be reported in a separate part in accordance with the terms of reference.
The deadline for submission of cost proposals is March 09, 2016. The anticipated start date of the audit is March 17, 2016. Please submit your proposals to firstname.lastname@example.org and email@example.com.