Background of the organization
Johanniter Accident Assistance eV
Johanniter-Unfall-Hilfe eV ( www.thejohanniter.org ) is a German non-governmental organization providing first aid, ambulance services, social service programs, and other medical and social projects. Its headquarters are in Berlin. Johanniter International Assistance (JIA) is the operational unit for humanitarian aid, development cooperation, and emergency relief, implementing and supporting projects in health, livelihoods, and emergency preparedness and response. JUH has projects in 20 countries in Africa, Asia, and Latin America.
Project subject to audit
Project name: “Roots and Seeds: Mothers, Adolescents, and Young People Accessing SRH and GBV Services in Ecuador and Colombia”
Donante: Action Germany Helps (ADH)
Project Partners: Federation of Women of Sucumbíos (FMS) – Ecuador
Profamilia Association – Colombia
Project period:
Federation of Women of Sucumbíos: 15.05.2024 to 14.08.2025
Profamilia Association: May 15, 2024 to July 31, 2025
Project duration:
Federation of Women of Sucumbíos: 15 months
Profamilia Association: 14 months
Total project budget: FMS: EUR 149,352.94
Profamilia: EUR 134.620,95
SOUTH: EUR 110,300.46
TOTAL EUR 394,274.35
Description of the financial reports to be audited
The report to be audited is called the Budget vs. Actual Expenditure Utilization Report, Income and Expenditure Statement with narratives. These reports are prepared by the partner organization using MS Excel or any other appropriate accounting software.
Audit services required
- An auditing firm will be requested to conduct an audit at the Partner Organization
- The audit will be conducted in accordance with International Standards on Auditing
- The audit period covers:
- Federation of Women of Sucumbíos: 15.05.2024 to 14.08.2025
- Profamilia Association: 05/15/2024 to 07/31/2024
- The sample of controlled receipts must cover a minimum of 30% of the total value of the transaction.
- The audit should ensure that all cost categories are included in the sample, such as a) procurement, b) personnel costs, c) travel costs, training costs, etc.
- The scope of the audit will be as follows:
- Determine whether donor funds can be identified separately from funding from other donors and whether income and expenditure records are maintained separately.
- Confirm whether the financial reports submitted by FMS and Profamilia partners, as well as those of JUH, are accurate.
- Determine whether the financial management capacity and financial systems and internal control mechanisms within the organization are adequate to manage the funds provided for in the program.
- Ensure that financial procedures comply with the donor’s financial policy ADH .
- If applicable, please indicate whether the partner has spent any of the project’s own funds to implement or monitor the status of management measures agreed upon in previous audits.
- Audit approach
The auditors’ work should include sufficient evidence to establish whether:
- An adequate budget control system is in place to regularly monitor (preferably monthly and quarterly) actual expenditure against budget lines and take effective corrective action where necessary, with appropriate segregation of duties in the maintenance and review of accounts and the performance of reconciliations.
- Expenditures of donor funds managed by the partner have been disbursed and used in accordance with donor guidelines and other relevant agreements, and only for the purpose for which the funds were provided (the donor must directly provide the auditors with confirmation of the amount of funds disbursed and any outstanding balances).
- Goods and services financed with donor funds have been procured in accordance with the relevant financing agreements and taking due account of the procurement guidelines agreed by the donor or the
- Inventories and asset records are complete and accurate, and the existence and ownership of assets and stock are periodically verified through physical controls to ensure they are being used for the project’s intended purposes.
- All necessary supporting documents, records, and accounts have been maintained for all project operations, including expenses reported to the donor. There must be clear links between the accounting records and the reports submitted to donors.
- Transaction records include accurate information on exchange rate fluctuations, where applicable.
- The expenditure of project funds has been approved at the appropriate level of delegated authority. This includes initial approval for expenditures and payment of claims, invoices, salaries, subsistence allowances, and any other expenses charged to the project budget.
- An on-site visit to the project site to verify whether the funds have been used effectively and whether the expenses reported justify the work carried out on the ground.Audit report and management letter.Audit reportThe audit report must clearly state the auditor’s opinion. It should include at least the following:
- A clear opinion on project management and compliance with the funding agreement with donor ADH and JUH.
- That this is a report for special purposes for the ADH donor.
- The auditing standards applied
- Period covered by the opinion
- Whether the statement of expenditures for this project is presented fairly and accurately. Disbursements are consistent with the purpose for which funds were allocated to the project;
- A statement about the total population of vouchers and how the audited sample was chosen.
- In addition to an opinion on the project’s financial status, the report should include a separate paragraph discussing the accuracy and propriety of the ADH donor’s expenditure of funding and the extent to which the ADH donor can rely on the partner’s financial reports as a basis for funding disbursements.
The draft audit report must be submitted to Johanniter International Assistance by September 5, 2025, and the signed audit report must be submitted to Johanniter International Assistance by August 12, 2025.
Management letter
The management letter should cover the following topics/issues:
- A general review of the project’s progress and timeliness in relation to milestones and the expected completion date, which should be reflected in the project document or Annual Work Plan (AWP). This review is not intended to determine whether specific agreements regarding performance criteria or specific deliverables have been met.
- An evaluation of the project’s internal control system with equal emphasis on (i) the effectiveness of the system in providing project management with useful and timely information for the proper management of the project and (ii) the overall effectiveness of the internal control system in protecting project assets (if any) and resources.
- Provide comments and observations on the accounting records, systems and controls examined during the audit
- Identify specific deficiencies and areas of weakness in systems and controls and make recommendations for improvement.
- Report on the degree of compliance with the financing agreement and, where appropriate, make observations on internal and external issues affecting such compliance.
- Provide an opinion on the potential for fraud and corruption in the execution of the project, and provide details of any actual incidents of fraud or corruption during the period under review and the value of any potential losses.
Project financial statements
- The project financial statements must include:
- A Summary of Sources and Uses of Funds showing the sources of ADH/JUH donor and matching funds separately and the uses of funds by disbursement category.
- A Statement of Funds Utilization by Project Activity showing project expenditures under each of the headings of the major components and subcomponents of the project
- A separate note of any ineligible expenditure identified during the review
- As an annex to the project’s financial statements, the auditor must prepare a reconciliation between the amounts the project has received from the ADH/JUH donor and the amounts JUH has confirmed it has disbursed. As part of this reconciliation, the auditor must indicate the disbursement mechanism, e.g., direct/indirect reimbursement, direct/indirect expenses, etc.
Audit certificate
- A copy of the audit certificate from the auditing firm appointed to ensure professional accreditation.
PERIODS AND PLACES OF EXECUTION OF THE AUDIT
Annual external audits will be carried out as follows:
Audit No.: 1
Period to be covered: 15.05.2024 – 14.08.2025 (FMS), 15.05.2024 to 31.07.2025 (Association of Family Members)
Location: Rural and urban communities in the province of Sucumbíos (ECU) and Profamilia headquarters in Bogotá (COL).
Planned for: 18.08.2025 to 05.09.2025
Final consolidated report covering the entire project period: 15.05.2024 – 14.08.2025
In addition, at least one field visit is expected in the intervention area (Sucumbíos Province and Profamilia Bogotá headquarters).
REPORTS TO BE SUBMITTED
The auditing firm must submit a final consolidated report to the JUH, according to the requirements established in these terms of reference.
How to apply
SUBMISSION AND RECEIPT OF OFFERS
A technical and financial proposal must be submitted. The technical proposal must include information on the auditing firm’s experience and track record, indicating whether it is located in both Ecuador and Colombia, as well as examples of relevant clients (private/public sector). The financial proposal must include a budget itemized by: (1) fees, (2) transportation expenses (transportation, lodging, food), (3) materials and other supplies (if applicable), (4) taxes and other applicable deductions.
The deadline for receiving the offer (technical and economic proposal) will be July 15, 2025. The proposal must be accompanied by:
- Technical and economic proposal
- RUC of the Auditing Company
- Curriculum vitae of the main auditor (and collaborators, if applicable),
- Invitation letter sent with signature and date of receipt of the document.
Interested auditing firms should send their bids to the following email address by July 31, 2025:
francisco.jacome@thejohanniter.org; deyssy.tovar@thejohanniter.org
SELECTION CRITERIA
The JUH technical team and its local partners will evaluate the bids, taking into account the following criteria:
- Documentation requested: 10%
- Technical proposal: 30%
- Experience and track record: 20%
- Economic offer presented: 40%