Position announcement

Expenditure Verifier/Auditor

Arusha, Tanzania

The World Vegetable Center (WorldVeg) is a nonprofit, autonomous international agricultural research center with headquarters in Taiwan and regional offices around the globe. WorldVeg conducts research and development programs that contribute to improved incomes and diets in the developing world through increased production and consumption of nutritious and health-promoting vegetables. For more information about World Vegetable Center, please visit our website: worldveg.org

Terms of reference (TOR)

Third-Party Expenditure Verification of the Final Financial Report under the Letter of Agreement (LoA) between FAO and Asian Vegetable Research and Development Center (AVRDC).

1. Background

Asian Vegetable Research and Development Center (AVRDC) entered into a Letter of Agreement (LoA) with FAO for the provision of Rescue, Conservation and Use of African Vegetable Biodiversity. In accordance with Article 9.03 of the LoA General Terms and Conditions, LoAs with a maximum financial liability of USD 200,000 and above are subject to an independent third-party expenditure verification of the final financial report submitted under the agreement.

The purpose of this Terms of Reference (TOR) is to engage an independent qualified Expenditure Verifier/Auditor to conduct an agreed-upon procedures engagement on the final financial report of the LoA.

The verification exercise shall be conducted in accordance with the principles of ISRS 4400 – Agreed-Upon Procedures Engagements.

2. Objective of the assignment

The objective of the assignment is to assess the accuracy, validity, and eligibility of expenditures reported in the final financial report submitted under the LoA and to confirm that:

• Expenditures are aligned with the approved LoA budget;
• Reported expenditures are supported by adequate documentation;
• Costs comply with the terms and conditions of the LoA;
• Expenditures are eligible, reasonable, and necessary for implementation of the agreed activities;
• Any budget overruns or deviations are justified and properly authorized.

3. Scope of work

The Expenditure Verifier/Auditor shall perform an expenditure verification exercise focused exclusively on the financial aspects of the LoA. The assignment shall not extend to expressing an audit opinion on the overall financial statements or financial position of the Service Provider (AVRDC).

The verification shall include, but not be limited to, the following activities:

3.1 Review of final financial report

The Verifier/Auditor shall:

1. Review the final financial report for completeness, consistency, and accuracy in line with the approved LoA budget structure.
2. Confirm that all expenditures reported were incurred during the LoA operational/implementation period, except costs related to the expenditure verification itself.
3. Verify that expenditures reported are supported by adequate and appropriate supporting documentation.
4. Compare reported expenditures against the approved budget and identify any variances or budget overruns.
5. Confirm that all expenditures are directly related to the implementation of the LoA activities and allocated to the correct budget lines.
6. Assess whether expenditures incurred were necessary, reasonable, and justified for implementation of the contractual activities.
7. Verify that the financial report excludes ineligible expenditures as defined under Article VII of the LoA General Terms and Conditions.
8. Identify and document any discrepancies, unsupported expenditures, or non-compliance with the LoA provisions.
9. Verify that duties, taxes, VAT, and similar charges included in the report are non-recoverable by the Service Provider.
10. Verify that indirect costs charged using a flat-rate methodology do not exceed the percentage specified in the approved budget.
11. Confirm that any in-kind contributions are excluded from the financial report unless otherwise expressly permitted in the LoA.

4. Documentation to be reviewed

The Service Provider shall make available all records and supporting documentation necessary for the assignment. The documentation may include, but is not limited to:

• Final financial report and approved LoA budget;
• LoA agreement and any amendments/modifications;
• General Terms and Conditions of the LoA;
• Invoices, receipts, vouchers, and supporting schedules;
• Payroll records, payslips, employment contracts, and timesheets;
• Purchase orders and procurement documentation;
• Subcontracting agreements and related documentation;
• Bank statements and proof of payments;
• Authorization records for expenditures and budget reallocations;
• Asset registers and inventory records where applicable;
• Any additional supporting evidence requested by the Verifier/Auditor.

5. Methodology

The assignment shall be conducted in accordance with ISRS 4400 – Agreed-Upon Procedures Engagements.

The Verifier/Auditor shall:

• Apply appropriate verification procedures to all material transactions;
• Use sampling techniques where applicable and justified;
• Maintain professional independence and confidentiality throughout the assignment;
• Document all procedures performed and evidence obtained;
• Report only factual findings without expressing an audit opinion or assurance conclusion.

6. Deliverables

The Expenditure Verifier/Auditor shall submit the following deliverables:

6.1 Draft report of factual findings

The draft report shall include:

• Description of the procedures performed;
• Summary of expenditures reviewed;
• Factual findings arising from the verification;
• Details of any discrepancies, unsupported expenditures, or non-compliance identified;
• Recommendations for corrective actions where applicable.

6.2 Final report of factual findings

Following the Service Provider’s review and comments, the Verifier/Auditor shall submit a final signed report incorporating agreed revisions.

The report shall clearly state that:

• The engagement was conducted under ISRS 4400;
• No audit opinion or assurance conclusion is provided;
• The report is restricted to factual findings based on agreed procedures.

7. Duration and timeline

The assignment is expected to commence on 6 July 2026.

Indicative timeline:

Contract signing

Timeline: 8 July 2026

Commencement of verification

Timeline: 8 July 2026

Submission of draft report

Timeline: 14 July 2026

Review of draft report

Timeline: 17 July 2026

Submission of final report

Timeline: 20 July 2026

The verification exercise shall be completed in a timely manner to facilitate settlement of the final financial status of the LoA and processing of the final payment.

8. Qualifications and experience of the Verifier/Auditor

The selected Expenditure Verifier/Auditor shall possess the following minimum qualifications:

• Legally registered and licensed audit/assurance firm or certified public accountant;
• Demonstrated experience in expenditure verification, financial audits, or agreed-upon procedures engagements;
• Knowledge of international auditing standards, particularly ISRS 4400;
• Experience working with donor-funded projects and grants;
• Strong understanding of financial management and compliance requirements;
• Proven independence and absence of conflict of interest;
• Ability to deliver reports within agreed timelines.

9. Reporting and supervision

The Expenditure Verifier/Auditor shall report to the Project Manager. The Service Provider shall facilitate access to all relevant documentation, records, and personnel required for successful completion of the assignment.

10. Confidentiality

The Expenditure Verifier/Auditor shall treat all documents, financial records, and information received during the assignment as confidential and shall not disclose such information to any third party without prior written authorization, except where required by law.

11. Payment terms

Payment terms shall be agreed upon in the contract and linked to satisfactory completion and submission of the agreed deliverables.

12. Annexes

The following documents shall form part of this TOR:

1. Letter of Agreement (LoA);
2. Guidance Note on Third-Party Expenditure Verification of the final financial report in Letters of Agreement (LoAs)
3. Approved LoA Budget;
4. LoA General Terms and Conditions;
5. Final Financial Report Template;
6. Any amendments or budget revisions.