Council-Audit of Verification of Financial Expenditures of a Project Financed by the Austrian Development Agency (ADA) At International Alert

The objective of this mission is to carry out an audit of the project expenditure according to the standards of the Austrian Development Agency (ADA), to ensure that the funds have been managed in accordance with the principles of economy, efficiency and compliance with the terms of the Grant contract. The report must attest to the reliability of the financial information reported, and validate that the funds have been used exclusively for purposes related to the project.

This audit mission aims to verify the expenditures of a project by ensuring their conformity, their accuracy and the good management of assets, while respecting local regulations. It will focus on the conformity and eligibility of expenses, in order to ensure that they comply with the contractual conditions and the regulations in force. The accuracy and completeness of the financial information will also be verified to guarantee the consistency and reliability of the data. In addition, the audit will include the verification of assets and capital goods to ensure their use and their adequate recordings. Finally, compliance with procurement standards will be examined in order to guarantee the correct application of purchasing and selection procedures. This assessment will ensure rigorous and transparent management of the project’s resources. The auditor will therefore have to produce:

• An expenditure audit report , presenting the results in detail, any exceptions and recommendations.
• A management letter : a complementary document highlighting areas for improvement identified in the organization’s financial practices, if applicable.

The auditor must comply with the following standards:

• Have proven experience in auditing development cooperation projects of similar size and complexity.
• Be independent from the organization, and comply with IFAC requirements regarding professional independence.

The Auditor must also meet at least one of the following conditions:

• Be a member of a national accounting or auditing body or institution, which is itself a member of the International Federation of Accountants (IFAC).
• Be a member of a national accounting or auditing body or institution that is not a member of IFAC, but is committed to carrying out the engagement in accordance with IFAC standards and ethics.
• Be registered as a statutory auditor in the public register of a public oversight body of 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 (applies to auditors and audit firms established in an EU Member State).
• Be registered as a statutory auditor in the public register of a public oversight body of a third country, where the register is subject to public oversight principles defined by the relevant national legislation (applies to auditors and audit firms established in a third country).

The Auditor shall employ staff with appropriate professional qualifications and adequate experience in IFAC Standards, as well as experience in the financial audit of projects of comparable size and complexity.

The Auditor must have sufficient knowledge of the relevant laws, regulations and rules in the countries concerned by the project, in particular corporate law, taxation, social security, labor regulations, and accounting standards.

Minimum requirements for auditors:

The auditor must comply with the following standards:

• Have proven experience in auditing development cooperation projects of similar size and complexity.
• Be independent from the organization, and comply with IFAC requirements regarding professional independence.

The Auditor must also meet at least one of the following conditions:

• Be a member of a national accounting or auditing body or institution, which is itself a member of the International Federation of Accountants (IFAC).
• Be a member of a national accounting or auditing body or institution that is not a member of IFAC, but is committed to carrying out the engagement in accordance with IFAC standards and ethics.
• Be registered as a statutory auditor in the public register of a public oversight body of 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 (applies to auditors and audit firms established in an EU Member State).
• Be registered as a statutory auditor in the public register of a public oversight body of a third country, where the register is subject to public oversight principles defined by the relevant national legislation (applies to auditors and audit firms established in a third country).

The Auditor shall employ staff with appropriate professional qualifications and adequate experience in IFAC Standards, as well as experience in the financial audit of projects of comparable size and complexity.

The Auditor must have sufficient knowledge of the relevant laws, regulations and rules in the countries concerned by the project, in particular corporate law, taxation, social security, labor regulations, and accounting standards.

The Auditor must provide CVs of staff members or experts involved in the verification of expenditure. These CVs must detail relevant experience and qualified work carried out in the past to enable an evaluation of the offer.

Auditing standards

The Auditor must carry out this mission in accordance with the following standards:

• International Standard on Related Services (ISRS) 4400 (Revised) “Engagements on Agreed-Upon Procedures”, as established by the International Federation of Accountants (IFAC).
• The IFAC Code of Ethics for Professional Accountants, developed and issued by the International Ethical Standards Board for Accountants (IESBA). This Code sets out fundamental ethical principles for auditors, including integrity, objectivity, independence, professional competence, due care, confidentiality, professional behavior and technical standards.

Although ISRS 4400 (revised) does not require independence for agreed-upon procedures engagements, the Austrian Development Agency (ADA) requires that the Auditor be independent of the grant recipient and comply with the independence requirements of the IFAC Code of Ethics for Professional Accountants.

Documents Provided to the Auditor:

International Alert Mali will provide the Auditor with all relevant documents, including but not limited to:

• The Grant Contract signed with ADA and its annexes,
• Any amendments to the Grant Contract,
• The financial report (detailing actual expenditure against the approved budget),
• The list of supporting documents, with the amounts classified by budget line,
• The organization’s policies regarding expenses, travel, and asset management.

The financial report provided by International Alert will respect in all respects the last approved budget and present at least the same level of detail.

Scope of the Verification

The expenditure audit will cover the following aspects:

Compliance and Eligibility of Expenses

1. The expenditure complies with the conditions defined in the Grant Contract.
2. Funds are spent exclusively for project activities.
3. Expenses are justified by original documents and linked to the project activities.
4. Expenditures comply with the tax, social and labor regulations in force in Mali.

Accuracy and Completeness of Financial Information

1. The financial report faithfully presents the project’s expenses and income.
2. The currency conversion was performed correctly, in accordance with the applicable exchange rates.
3. The expenditure coverage ratio (ECR) is calculated in accordance with the ADA requirements (at least 65% for the entire budget and 10% per budget line).

Verification of Assets and Capital Goods

1. Assets are properly inventoried and used exclusively for project activities.
2. Depreciation of assets is in accordance with national accounting standards.

Compliance with Procurement Regulations

1. The auditor will verify that the expenditure complies with the purchasing and contracting procedures provided for in the Grant Contract and local laws.

Report and Format

The auditor will have to provide:

Report

The Auditor shall produce an Expenditure Verification Report , which shall describe the objective, agreed procedures and results in sufficient detail. This report shall contain at least the following information:

1. Title
2. RECIPIENT
3. Brief description of the project and partners
4. Period covered by the report
5. Total budgeted and actual revenue amounts
6. Full list of project funds transferred, including donor names, dates and exchange rates
7. Total amount of actual expenditure verified
8. Expense Coverage Ratio
9. Objectives, scope and description of the procedures performed
10. Results of the expenditure audit
11. Recommendations, if applicable
12. Follow-up of previous recommendations, if applicable
13. Other relevant items
14. Report date
15. Auditor’s address and signature

The Expenditure Verification Report must also include the following annexes:

1. Financial report: overall calculation with comparison of actual expenses and the approved budget, certified by the official signature of the company (stamp and signature) and that of the auditor (stamp and signature).
2. Project Cash Flow Statement
3. Detailed list of supporting documents classified according to the corresponding budget lines
4. Bank account statements
5. List of bills to be paid, if applicable
6. In case of exception, list of supporting documents concerned accompanied by a description of the exceptions
7. List of assets
8. List of supply contracts awarded during the period covered by the report
9. List of grant contracts awarded during the period, if applicable.

The auditor will therefore have to produce:

• An expenditure audit report , presenting the results in detail, any exceptions and recommendations.
• A management letter : a complementary document highlighting areas for improvement identified in the organization’s financial practices, if applicable.

Verification Deadline and Period

The verification mission must be completed within 6 weeks of mission approval.

Please note that the above is only a portion of the job requirements. For the full job requirements, click here to view the job specifications