7 Sep 2022

Consultancy at Solidaridad

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Job Description


BACKGROUND

Solidaridad Eastern and Central Africa was contracted by The National Authorizing Officer of the European Development Fund (EDF), at the Ministry of Finance and Planning, on behalf of the Government of the United Republic of Tanzania to support the development of the coffee In Tanzania in the project titled “Passport to Coffee Export (PACE)’’.

The implementation locations are Songwe, Mbeya, and Ruvuma. The implementation period is04/08/2020-03/02/2024

The General Objective of the action is to promote a sustainable and inclusive sector development through a robust export-oriented coffee value chain by 2023 through;

  1. enhancing food and nutrition security of smallholder coffee farmers;
  2. increasing incomes through job creation;
  3. improving the export-oriented coffee sector; and
  4. Enhancing sectorial value addition and marketing.
  5. OBJECTIVE

The Expenditure verifier is expected

  • To carry out the agreed-upon procedures listed in Annex 2
  • To issue reports based on the template in Annex 3 which will support the Contracting Authority’s conclusions on the eligibility of the reported expenditure and the related follow-up.

The expenditure verification will be performed as either one or both a desk review or/and fieldwork at the location indicated in Annex 1

The Expenditure Verifier is not expected to provide an audit opinion.

  1. STANDARD AND ETHICS

The Expenditure verifier shall undertake this engagement in accordance with:

  • the International Standard on Related Services (‘ISRS’) 4400 Engagements to perform Agreed-upon Procedures regarding Financial Information as promulgated by the IFAC;
  • The IFAC Code of Ethics for Professional Accountants, developed and issued by IFAC’s International Ethics Standards Board for Accountants (IESBA), establishes fundamental ethical principles for Auditors with regard to integrity, objectivity, independence, professional competence and due care, confidentiality, professional behavior, and technical standards.

Although ISRS 4400 provides that independence is not a requirement for agreed-upon procedures engagements, the Contracting Authority requires that the Expenditure Verifier is independent of the Reporting Entity and complies with the independence requirements of the IFAC Code of Ethics for Professional Accountants.

  1. REQUIREMENT FOR THE EXPENDITURE VERIFIER.
  • General principle

By agreeing on this ToR, the Expenditure Verifier confirms meeting at least one of the following conditions:

  • The Expenditure Verifier 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).
  • The Expenditure Verifier is a member of a national accounting or auditing body or institution. Although this organization is not a member of the IFAC, the Expenditure Verifier commits to undertake this expenditure verification in accordance with the IFAC standards and ethics set out in this ToR.
  • The Expenditure Verifier is registered as a statutory auditor in the public register of a public oversight body in an EU member state in accordance with the principles of public oversight set out in Directive 2006/43/EC of the European Parliament and of the Council (this applies to auditors and audit firms based in an EU member state)[1].
  • The Expenditure Verifier 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).
  1. QUALIFICATIONS EXPERIENCE AND TEAM COMPOSITION.
  • Qualifications Experience.

The Expenditure Verifier will employ staff with appropriate professional qualifications and suitable experience with IFAC standards and with experience in verifying financial information of entities comparable in size and complexity to the Reporting Entity. In addition, the verification team as a whole should have:

Experience with programs and projects related to External Relations funded by national and/or international donors and institutions. It is desirable that the team leader and, where applicable, the fieldwork team, i.e. either the audit manager (category 2) or the senior auditor (category 3) has experience with audits of EU-funded External Relations actions

  • Experience with audits/verifications in Tanzania
  • Experience with audits/verifications of NGO sector
  • Sufficient knowledge of relevant laws, regulations, and rules in the country concerned. This includes but is not limited to taxation, social security, labour regulations, accounting, and reporting.
  • The leader of the fieldwork team shall be at least a category 2 expert who has:
  • Experience with audits or audit-related engagements (e.g. review or agreed-upon procedures engagements) of development aid programs and Actions funded by national and/or international donors and institutions; and
  • A sufficient knowledge of the IO’s accounting, finance, reporting, and regulatory procedures
  • TEAM COMPOSITION

The team of auditors required for this engagement will be composed of a category 1 auditor who has the ultimate responsibility for the expenditure verification and a team that is composed of an appropriate mix of category 2 – 4 auditors.

  • CATEGORIEIS OFSTAFF/EXPERTS

Category 1 – (Audit Partner)

A Category 1 expert (audit partner) should be a partner or another person in a position similar to that of a partner and be a highly qualified expert with relevant professional qualifications who assumes or has assumed senior and managerial responsibilities in the public audit practice.

He/she should be a member of a national or international accounting or auditing body or institution. He/she must have at least 12 years of professional experience as a professional auditor or accountant in the public audit practice. Experience with audit-related services in beneficiary countries of EU External Action Programs will particularly be taken into account for the evaluation at the level of specific contracts.

The audit partner will be the person who will be responsible for the specific contract and its performance as well as for the report that is issued on behalf of the firm. He/she has the appropriate authority from a professional, legal or regulatory body and is authorized to certify accounts by the laws of the country in which the audit firm is registered.

Category 2 – (e.g. Audit Manager)

Audit managers should be qualified experts with a relevant university degree or professional qualification. They should have at least 6 years of experience as a professional auditor or accountant in public audit practice including relevant managerial experience of leading audit teams.

He/she should be a member of a national or international accounting or auditing body or institution.

Category 3 – (e.g. Senior Auditor)

Senior auditors should be qualified experts with a relevant university degree or professional qualification and at least 3 years of professional experience as a professional auditor or accountant in the public audit practice.

Category 4 – (e.g. Assistant Auditor)

Assistant auditors should have a relevant university degree or professional qualification and at least 6months of professional experience as a professional auditor or accountant in the public audit practice.

  • CURRICULA VITAE (CV)

The Expenditure Verifier will provide the Solidaridad East and Central Africa with CVs of the staff/experts involved in the expenditure verification. The CVs will include appropriate details for the purpose of the evaluation of the offer on the relevant specific experience for this expenditure verification and the qualifying work carried out in the past.

  1. SCOPE
  • Contract and Financial Reports Covered by There TOR

The Contract(s) and Financial Reports subject to this expenditure verification are indicated on the cover sheet and in Annex 1.

  • Conditions for Eligibility of Expenditure

The conditions for eligibility are stipulated in the Contracts which are provided in Annex 1.

Further documents (e.g. Financing Decisions, Financing Agreements, and Framework Agreements) that the Expenditure Verifier might deem to be required for the purposes of this expenditure verification will be provided by Contracting Authority on request.

Expenditure Verifiers will inform the Contracting Authority as soon as possible about any limitations in the scope of work they may find prior to or during the verification.

The Expenditure Verifier will report any attempt by the Reporting Entity or its staff to restrict the scope of the verification or any lack of co-operation on the part of the Reporting Entity or its staff. The Expenditure Verifier will consult the Contracting Authority on what action may be required, whether or how the expenditure verification can be continued, and whether changes in the verification scope or the timetable are necessary.

  1. VERIFICATION PROCESS AND METHODOLOGY
  • Engagement Context, Materiality, Risk Analysis, and sampling

The Expenditure Verifier’s procedures should include:

  • Obtaining a sufficient understanding of the engagement context including the contractual conditions, the Reporting Entity, and the applicable EC laws and regulations which are set out in Section 5 above (Scope). The Expenditure Verifier should pay specific attention to the contractual provisions relevant for the following aspects:
    • documentation, filing, and record-keeping for expenditure and income;
    • eligibility of expenditure and income;
    • procurement and origin rules insofar as these conditions are relevant to determine the eligibility of expenditure;
    • Asset management (management and control of fixed assets; e.g. equipment).
    • cash and bank management (treasury);
    • payroll and time management;
    • accounting (including the use of exchange rates) and financial reporting of expenditure and income; and
    • Internal controls and notably financial internal controls.

The understanding should be sufficient to identify and assess the risks of material errors or misstatements in the expenditure and revenue stated in the Financial Report in order to determine the size and structure of the expenditure sample to be tested, whether caused by error or fraud and sufficient to design and perform further verification procedures.

  • Performing a risk analysis (Annex 2).

The outcome of the risk analysis has to be clearly described in the Verification Report (Annex 3, Section 2.1);

  • Determining the sample size;

For the purpose of determining what the overall material misstatement or error is, the Expenditure Verifier will apply a materiality threshold of 2% of the total amount of the gross reported expenditure with a confidence level of 95%.

  • Establishing the sample and selecting the individual items for testing (Annex 2).

The link between the risk assessment and the size and composition of the sample, as well as the sampling method (statistical/non-statistical/underlying calculations/professional judgment applied), must be clearly described in the Verification Report (Annex 3, Section 2.2).

  • Fieldwork / Desk ReviewFieldwork/Desk review

The main task during the fieldwork or desk review will be to perform the substantive tests (Annex 2, Section 2). Key information about the testing process must be provided in the Verification Report (Annex 3, Section 4.1).

  • Debriefing Memo and closing meeting

At the end of the fieldwork or desk review, the Expenditure Verifier should prepare a debriefing memo, organize a closing meeting with the Reporting Entity in order to discuss the findings, obtain its initial comments and agree on additional information to be provided at a later date. The representative of the Commission in charge of the audit will be invited to attend the closing meeting.

  • Complimentary Letter

The Expenditure Verifier may at any time during the expenditure verification process draw up a complimentary letter to inform the Commission about facts and issues that are considered of particular interest and importance. Suspicions of fraud or irregularity should be reported immediately.

  • Documentation and Verification Evidence

The evidence to be used for performing the procedures in Annex 2 is all financial and non-financial information which makes it possible to examine the expenditure declared in the Financial Report.

The Expenditure Verifier documents matters which are important in providing evidence to support the report of factual findings, and evidence that the work was carried out in accordance with ISR Reporting

  • REPORT

Structure and Content of the report

The use of the Expenditure Verification Report template in Annex 3 of these ToR, including the annexed tables, is compulsory.

If the verification scope covers Financial Reports related to different Contracts, a separate and specific report should be issued for each Contract.

The report should provide basic information about the Contract and should describe the outcome of the risk analysis and its implications on the sampling. The report should also give an overview of the substantive testing and fully disclose the information regarding the items included in the expenditure population and in the sample. The report should finally detail the findings identified through the performance of the agreed-upon procedures.

The report should be presented in English

Expenditure Verification Findings and Recommendation.

The factual findings shall be reported in accordance with the formats and criteria specified in the Expenditure Verification Report template (Annex 3). The description of findings will include the standard applied (e.g. art. xx of the General Conditions of the Contract), the facts, and the analysis of the Expenditure Verifier.

The verification report should include all financial findings made by the Expenditure Verifier, regardless of the amount involved. Changes in the financial findings occurring between the draft and the pre-final or final report as a result of the consultation procedure should be clearly and sequentially reported.

The report shall also include in the relevant section systemic findings the Expenditure Verifiers identified detailing the nature of the finding and why the Expenditure Verifiers consider the finding as systemic.

  1. EXPENDITURE VERIFICATION DURATION.

The expenditure verification work shall be completed within 21 days from the date of commencement of expenditure verification.

  1. EXPENDITURE VERIFICATION FEES.

The expenditure verification fees will be fixed through a competitive bidding process and will be payable in TZS.

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Method of Application

The applicant are required to submit an EOI and financial proposal and work plan by 15/09/2022

Submissions are by email to [email protected] while addressed to:

Attn: Managing Director

Solidaridad Eastern and Central Africa Expertise Centre

Kilimani Business Centre, Kirichwa Road,

P.O. Box 42234 – 00100 GPO

Nairobi

Note: Canvassing will lead to automatic disqualification and only successful candidate will be contacted.







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