Ref. no.: 001
Call for Expression of Interest (CEI)
Independent Auditor for Baytna Syria
- Assignment. – Baytna Syria was launched in 2013 as a networking, training, and grant-making facility for Syrian civil society organizations, offering support to CSOs based inside Syria and neighbouring countries. The project is funded by DANIDA and based in Gaziantep, Turkey.
- Timeline and Contact. – The publishing date of this CEI is 25 November 2016. The closing date for the receipt of offers by interested contractors is 9 December 2016.
- Description of Requirements –The auditor shall express a professional and independent opinion on the Financial Statements of Baytna Syria for the project under review and on whether the statements present fairly the financial position and were prepared in accordance with the International Financial Reporting Standards
- Auditing Standards– The audit shall be carried out in accordance with International Standards on Auditing (ISA), the International Organization of Supreme Audit Institutions (INTOSAI) or national standards that comply with ISA or INTOSAI in all material respects and should include such tests and auditing procedures as the auditor considers necessary for the assignment
The responsibility for the preparation of Financial Statements lies with the Baytna Syria management and is also responsible for:
The auditors are responsible for the formulation of an opinion on the Financial Statements based on their audit conducted in accordance with ISAs (International Standards on Auditing). In accordance with these standards, the auditors will request the Baytna Syria for an Engagement/Confirmation Letter committing the Baytna Syria management to the preparation of the Financial Statements and maintenance of proper internal control systems as well as acceptable documentation for all financial transactions.
- Scope of Work – The auditor will:
(a) Carry out tests of transactions as necessary, and will obtain an understanding of Baytna Syria’s accounting system to assess its adequacy as a basis for the preparation of its financial statements to establish whether adequate records have been maintained
(b) Confirm that an appropriate internal control framework is in place to provide reasonable assurance on the operations of Baytna Syria efficient use of resources and reliability of financial reports
(c) Confirm that although the responsibility for preventing errors, irregularity or fraud, remains with Baytna Syria , the audit is planned so as to have a reasonable assurance that any material misstatements, irregularities and/or fraud in the entity financial statements is detected
(d) Confirm that funds have been used in accordance with the applicable rules of the concerned donors, board decisions with due attention to economy and efficiency, and that they have only been used for the purposes for which they were intended for and in accordance with the conditions under which the funding was provided
(e) Confirm that goods and services financed have been procured in accordance with sound procurement procedures spelled out in the Baytna Syria Procurement Manuals; Financial policies and procedures and applicable rules of the donors
(f) Confirm that all necessary supporting documents, records and accounts have been kept in respect of all activities. Clear linkages should exist between the books of accounts and the financial statements presented
(g) Confirm that the Financial Statements have been prepared in accordance with acceptable accounting practice and give a true and fair view of the financial position Accountant as at the end of the financial year. The above-defined scope does not in any way restrict the audit procedures or the techniques that the auditor may wish to use in forming an opinion on the Financial Statements being audited.
- Financial Statements – The Financial Statements among others, include:
(a) A Statement of Income and Expenditure
(b) A Balance Sheet
(c) A Statement of Cash Flow
(d) The Accounting Policies Adopted and Explanatory Notes
(e) Where applicable, a Financial Report compliant with the terms and conditions of agreements with the donors.
- Audit Report –
7.1 The auditor is expected to present two types of reports: An opinion on the Financial Statements prepared by the Accountant and a Management Letter.
7.2 The opinion on the Financial Statements shall contain:
(a) A professional opinion on the financial statements and supporting schedules as regard to their true and fair view
(b) The period covered by the opinion
(c) Accounting standards and Baytna Syria Financial Policies and procedures that have been applied indicating the effect of any deviations from them
(d) The International Audit standards that were applied
(e) Include all other requirements of donors and cooperating partners as stated in the various cooperating agreements.
7.3 The Management Letter, among others, shall contain:
(a) Comments and observations on the accounting records, systems and controls that were examined during the course of the audit
(b) Specific deficiencies and areas of weakness in systems and controls and make recommendations for improvement
(c) The degree of compliance of each of the donor funding agreement and give comments, if any, on internal and external matters affecting such compliance
(d) Matters that have come to their attention during the audit which might have a significant impact on the implementation and sustainability of the funding
(e) Report on the implementation status of recommendations pertaining to previous period audit reports
(f) Areas of risk that need to be flagged out to management
(g) Any other matters that the auditors consider pertinent to be brought to the attention of the Secretariat.
7.4 Ideally, the Management Letter will include reactions/comments from Baytna Syria Managements on the weaknesses noted by the auditors.
7.5 The audit report will be submitted as three hard copies and one PDF copy of the final audit report to the management.
- Audit of Projects –
8.1 The scope of the audit of projects depends on the agreement signed between the funder and the Management. The audit requirements are stated in the various agreements that govern the funding and for those projects that require separate audit reports. The scope of the audit will be similar to the institutional audit, however, some of the specific requirements are the following:
(a) That the External Auditors have obtained an understanding of the terms and conditions governing the grant agreement
(b) That the funds received have been used in accordance with the cooperation agreement
(c) That the accounts kept by Baytna Syria are accurate and up to date
(d) That the accounts and expenditure relating to the grant/cooperation agreement are easily identifiable and verifiable e. That it is possible to reconcile the information in the Financial Report to Baytna Syria accounting system and records
(f) That the correct exchange rates have been applied
(g) That any identified bank interests have been properly reflected in the books of account
(h) That the Accountant has maintained the necessary supporting documents, records and accounts in respect of the project activities and
(i) That the internal control systems of the organization are comprehensive, sufficient and adequate.
8.2 A separate audit report will in this case be prepared for the project audit
8.3 The financial records maintained for projects are usually the following:
i. Financial ledgers
ii. Payments vouchers substantiated by support documentation and
iii. Financial reports (wherever applicable)
- Minimum requirements for Audit Team – The Audit Manager must have at least 5 years of experience in auditing public sector and international institutions and donor funds, and must be a member of a recognized accountancy professional body.
The Audit Team Leader with at least 3 years of experience in auditing.
At least 2 Assistant Auditors with adequate audit experience and CPA (II) professional qualifications or equivalent.
Added advantage Audit firm staff stability history – assurance regarding the assignment of permanent personnel to the engagement.
Professional knowledge of both Arabic and English language as documents are in both
- Submission of Proposals – The potential consultants must submit the Technical and Financial proposals in two (2) separate electronic files to the Email address: email@example.com by COB on 9 December 2016 and clearly labelled as follows:
Technical Proposal (please refer to Annex 1 for what should be included in the technical proposal) Financial Proposal (please refer to Annex 2 for what should be included in the technical proposal)
Annex 1: Outline for Technical Proposal
(a) Approach, Methodology and Work Plan
(b) Work Schedule or Timeline
(c) Team Composition, Key Staff Qualifications and Competence
(d) Curriculum Vitae (CV) for Proposed Staff
(e) Consultant’s Experience
(f) Experience and Qualifications of Subcontractor (if applicable)
(g) Firm’s References
Annex 2: Outline for Financial Proposal
(a) Summary of Costs (Direct and Indirect)
(b) Breakdown of Daily Fees
(c) Breakdown of Reimbursable Costs
(d) Budget Narrative
NO:8/3 EFES BUSINESS CENTER