Consultancy for the Provision of Annual Statutory Financial Audit and Ad hoc Project Audits for Mnemonic 2021 (For Individual Consultants or Firms) At Mnemonic gUG

About us

Mnemonic is a non-profit organisation made up of human rights advocates, archivists, technologists, and open-source investigators dedicated to preserving, memorialising and adding value to publicly available information related to human rights violations. We use our unique position as a cross-sectorial, cross-disciplinary organisation to help human rights defenders hold power to account.

Mnemonic is uniquely suited to conduct investigative journalism work in the Middle East and North Africa and to understand the needs of emerging independent media, balanced with lack of resources and myriad challenges in their operating environments.

Objectives of consultancy

The objectives of the Statutory Audit are to enable the Auditor to express an opinion on whether the financial statements present fairly, in all material respects, the actual expenditure incurred in the Headquarter office in Berlin for the period from 01 January 2021 to 31 December 2021.

To confirm that the Financial Statements agree with the books of account which provide the basis for preparation of the Financial Statements and are established to reflect the financial transactions as maintained by Mnemonic and the partners.

Audit scope of work

The audit should be conducted in accordance with International Standards on Auditing and will include such tests and controls as the auditor considers necessary under the circumstances.

As part of the comprehensive audit report, the auditor must report on the following aspects: i. Compliance with applicable legislation: Verify that the transactions comply in all material respects with any applicable legislation;

ii. Reconciliation of General ledger: Review of the general and project ledgers to determine whether costs incurred were properly recorded ensuring that the costs charged to the grant reconcile to the projects and general ledgers.

iii. Grant expenditures: Funds received were spent in conformity with the approved budget and work plan existing at the time of the expenditure and in line with provisions of the Grant Agreement, including any applicable grant conditions (as amended by any Implementation Letters), and only for the purposes for which the funds were provided. The auditor should also pay attention to the shared costs especially on the allocation mechanism and review these costs for accuracy, completeness and reasonableness;

iv. Eligible costs: Review of the costs charged to the grant identifying and quantifying any ineligible costs as well as agreeing expenditure to supporting documents on a sample basis. Compare actual expenditure with the budget, and obtain explanations for variances obtained (unapproved material budget variations should be included in the ineligible expenditure schedule)

v. System of internal controls: Assess Mnemonic and key risky internal controls.

vi. Safeguarding of assets: Verify that Mnemonic and its partner have put in place mechanisms for the tracking and safeguarding of assets purchased with grant funds and that they are being used for the intended purposes. Verify that Program’s fixed assets register exists, is maintained in accordance with the Grant Agreement; that property rights or related beneficiaries’ rights are established in accordance with the Grant standard terms and conditions;

vii. Data retention and supporting documentation: Necessary supporting documents, records, and accounts have been retained in compliance with provisions of the Grant Agreement. Procedures exist for security and management of electronic data (backup systems and procedures, etc.);

viii. Goods and services – have been procured transparently, competitively and in accordance with the Grant Agreement and relevant procurement Guidelines approved by Mnemonic; ix. Human Resource costs – Review of direct salary charges to determine that salary rates are reasonable for that position.

x. Travel and related costs – Review of travel and transportation charges to determine whether they are adequately supported and approved.

Tasks and deliverables

The auditor will arrange for an opening meeting with Mnemonic to discuss and explain the planning, fieldwork and reporting. The auditor will explain the nature, objectives and scope of the audit. For each grant, the auditor should plan the audit so that it is performed in an effective and efficient manner. Adequate planning involves ensuring that appropriate attention is devoted to important areas of the audit, that potential problems are identified and resolved on a timely basis and that the audit is properly organised and managed within the due dates.

The auditor should have audit work programs that detail and document the audit tests and procedures. The auditor will draft a Debriefing Memo for the closing meeting which will provide the main findings for discussion. Mnemonic should provide justification to the findings.

The auditor should submit the Draft Report to Mnemonic by 15th of June 2022 . Mnemonic would provide comments on the auditor’s draft report within 10 calendar days from receipt of the draft report. The auditor should submit an updated draft report which takes into account the comments to Mnemonic within five calendar days from receipt of the comments.

Mnemonic would provide feedback to the auditor on the updated draft report within five calendar days. Once the Auditor receives the final comments from Mnemonic, the final report is expected to be issued within the next five calendar days.

The auditor should submit one original hard copy and one electronic copy of the final report to Mnemonic. The auditor should submit the Draft Annual Statutory Financial Audit to Mnemonic by 15th of July 2022. Mnemonic would provide comments on the auditor’s draft report within 10 calendar days from receipt of the draft report.

The auditor should submit an updated draft report which takes into account the comments to Mnemonic within five calendar days from receipt of the comments. Mnemonic would provide feedback to the auditor on the updated draft report within five calendar days.

Once the Auditor receives the final comments from Mnemonic, the final report is expected to be issued within the next five calendar days. The auditor should submit one original hard copy and one electronic copy of the final report to Mnemonic.

Level of effort and duration

The expert is expected to be committed to the project from May 2022 till July 2022, upon a schedule that will be agreed during the Opening Meeting.

Terms of payments

Payment will be made in 2 instalments: 1st instalment covering 30% of the total sum approved at the signature of the contract. 2nd instalment covering 70% of the total sum approved submission of approved Annual Statutory Financial Audit Report and Specific Projects’ Financial Audit Report.

Confidentiality and record of right

All materials, reports and other documents produced by the consultant under this consultancy will be the sole property of Mnemonic. The consultant will maintain a high level of confidentiality with external actors/stakeholders, with regards to all the materials and reports produced under the consultancy. For any use of the produced materials/reports/documents, other than for the purpose of the projects and Mnemonic program, the consultant must receive consent from Mnemonic in writing.

Consultant qualitifcations and evaluation criteria

A. Mandatory Requirements

• Provide a certified copy of business registration(company/organisation)
• Provide a certified copy of tax registration
• Provide information on ownership structure – name of directors/owners of the company(company/organisation)
• Must have a valid professional and legal registration certifying eligibility to practice as an external auditor and express audit opinions pursuant to the laws, rules and other requirements of the country.
• Must be included in the list of accredited auditors of a recognised donor (World Bank, EBRD, USAID, EC (Court of Auditors)
• Must be professionally competent with a minimum five years’ experience in planning and conducting audits of this nature

B. Qualifications The consultant must have proven expertise and experience in Auditing with special focus. Proof of these is to be provided by submitting, together with the application:

• An overview of relevant works
• Contact details for references
• The proposed team’s CVs

C. Proposal Contents Proposals from Consultants should include the following information (at a minimum)

• Technical Proposal with clear methodology on how to conduct the audit
• CVs of key consultant(s) attached to the technical proposal
• Proposed timeline/Work plan

D. Financial Evaluation A financial proposal with a detailed breakdown of costs quoted in EUR. Applicable tax amount must be clearly stipulated and separated from the base costs.