External Financial Audit

Description

• POTENCIAR is the Pillar 1 of TAcID (Transparency and Accountability for Inclusive Development), an FCDO-funded programme that aims to address accountability and governance issues that are undermining the delivery of basic services in Mozambique. Collaborating with various actors including citizens, civil society, communities, service users, providers, and local, provincial and national government authorities, the programme supports pro-accountability initiatives aimed at strengthening civic engagement and supporting multi-stakeholder coalitions to contribute to improvements on the provision of key basic services. The programme started on 9 November 2020 and is currently expected to end on 31 March 2024. The contract value is £6,907,829
• POTENCIAR is implemented by a consortium of organisations led by Chemonics, partners include Centro de Aprendizagem e Capacitação da Sociedade Civil (CESC), COWI, the Institute of Development Studies (IDS), and FHI 360 UK who contribute expertise and technical inputs into various programmatic areas. POTENCIAR is managed by the Programme Management Unit (PMU) in Mozambique, and the Programme Support Unit (PSU) in the United Kingdom. The PMU is responsible for the planning, implementation, and monitoring of programme activities in-line with contractual requirements. The PSU is responsible for providing support and quality assurance to the PMU to ensure that activities and deliverables are aligned with the client and Chemonics requirements. The PSU is also the primary focal point with the FCDO on contractual management, financial and safeguarding areas
• Chemonics is seeking an external financial audit expert to carry out an audit of the programme (Pillar 1 of TAcID only). This engagement will cover the period 9 November 2020 to 28 February 2023
• In these ToR the following terms apply:
• Audit or  engagement refers to this assurance engagement which is a financial audit
• Programme refers to the programme subject to audit as per the scope, the Programme is named POTENCIAR
• Head Contract refers to the Contract for Supplier Services signed between FCDO and Chemonics Group UK Ltd and its relevant annexes
• Contractual Conditions  refers to the conditions, rules, criteria which are set out in a FCDO funded contract
• Financial Report refers to the Financial Report which presents the actual expenditures incurred for the Programme for a specified period. These expenditures are the subject of this audit
• ITT No.PO10058/01/2023/001
• Auditor refers to the audit firm contracted for performing this audit and for submitting a report to Chemonics Group UK Ltd. Auditor can refer to the person or persons conducting the audit, usually the engagement partner or other members of the engagement team. The engagement partner is the partner or other person in the firm who is responsible for the engagement and its performance, and for the report that is issued on behalf of the firm, and who has the appropriate authority from a professional, legal, or regulatory body
• Entity refers to the entity subject to audit, being Chemonics Group UK Ltd. It is the organisation responsible for implementing the Programme, which is using the funds for the Programme, and which is required to report on the Programme and the use of funds
• Chemonics Group UK Ltd has offices in 1 Benjamin Street, EC1M 5QL

Audit Objective

• The objective of the audit is to enable the auditor to express a professional opinion on the financial position of the Programme and of the funds received and expenditures for the reporting period, as reported by Chemonics Group UK Ltd and in particular to confirm that the reported expenditure has, in all material respects, been used in conformity with the provisions of the Head Contract, including any amendments thereto as contained in implementation letters, and any applicable guidelines in force and applicable to the audit scope, and with due attention to economy and efficiency
• The audit will take place in POTENCIAR’s office(s) in Mozambique
• The audit will be carried out in accordance with international standards of auditing. It will include such tests and controls as the auditor considers necessary, including a review of files and other relevant documents. Representative sampling may be used as the auditor considers necessary
• This exercise is required to give full and satisfactory audit discharge to the Programme expenditure from 9 November 2020 to 28 February 2023. The auditor will be tasked with providing an independent opinion on the following:
• Items and services have been procured in accordance with the guidelines included in the head contract and Chemonics procurement policies
• Necessary supporting documents, records and accounts have been kept in respect of Programme expenditure
• Establish whether the funds in the POTENCIAR programme account were deposited, transferred, and expensed properly in compliance with FCDO guidelines and other relevant financial policies and procedures as stipulated under the head contract
• Establish whether the entity was compliant with procedures designed to provide assurance of detecting misstatements due to errors or fraud
• Examine the invoices submitted and verify these have been prepared in accordance with the purposes defined
• Establish the physical existence of FCDO-funded Programme assets per the asset register, their conditions, and locations
• Establish whether the systems, procedures, and controls, contractual or otherwise, adopted by the POTENCIAR programme are efficient, effective, and transparent
• Establish whether improvements to the POTENCIAR programme systems, procedures and controls can be made as a result of the findings of this audit

Requisites

• The Auditor and/or the firm is a member of a recognized national, and/or international, accounting body or institution
• The Auditor and/or the firm will employ a staff with appropriate auditing qualifications and professional experience with international standards on auditing
• The Auditor and/or the firm will employ staff with experience of auditing international development programmes funded by the FCDO or other donors

Desirable

• The Auditor and/or the firm is located in Mozambique
• The Auditor and/or the firm will employ staff with a working knowledge of Portuguese

Methodology

• The approach should include but not be limited to:
• Hold separate pre-engagement meetings with the Entity to present an outline of the planned approach for conducting the exercise
• Request and hold formal interviews with the POTENCIAR’s Programme Management unit (PMU) and Programme Support Unit (PSU) with a view to forming an understanding on the effectiveness of the internal control system in the management of the Programme
• Examine the financial transactions and of the Programme and supporting documents for the above period
• Review the procurement process and procedures
• Express an opinion on the cost effectiveness, accuracy, and completeness (i.e., value for money) of the financial transactions for the period under review
• Prepare audit documentation and obtain sufficient appropriate audit evidence to support audit findings and draw reasonable conclusions
• Bring to the attention of Chemonics any suspected fraud or irregularity that arises during the audit and communicate matters that have come to attention during the audit which might have a significant impact on the implementation of the Programme

Reporting

• The financial audit report should be presented in English
• The financial audit report must include an audit opinion, statement of compliance with FCDO terms and conditions as contained in the prime contract, a verification report on programme funded assets and a detailed management letter with comments, observations and recommendations

Deliverables

• Task/Deliverable Timing
• Draft audited financial report 24th March 2023
• Final audited financial report 31st March 2023

Budget

• The indicative budget for the evaluation is £34,980.00 in total inclusive of all costs (fees, all expenses including travel expenses and taxes)

Timing

• The work is expected to commence no later than 6th March 2023. The auditor is expected to submit first draft of report by 24th March 2023 and the final report not later than 31st March 2023.

Notes

• Only shortlisted applicants will be contacted
• Indicate the source of this job post: emprego.co.mz
• A commercial proposal including fees and expenses for the work incurred, with a detailed breakdown of team members LOE
• Selection and contracting will take place between 27th February and 3rd March

How to Apply

1. Documentation

• A technical proposal including:
• Presentation of the Auditor and/or the firm including auditing accreditation
• Relevant prior experiences of auditing donor-funded programmes
• Approach to the financial audit
• Delivery schedule
• Presentation of the team with curriculum vitae (no longer than 2 pages per team member)
• Work planning

2. Application

• Send your Documentation to psu-moz-potenciar@chemonics.com with the Subject line “External Financial Audit”