Founded in 1993, Groupe URD (Urgence Réhabilitation Développement) is an independent institute specializing in the analysis of practices and the development of humanitarian and post-crisis policies. Its role is to support stakeholders in the processes of improving the quality of programs by carrying out evaluation, research and training activities.

The project implemented by Groupe URD, 54% financed by AFD, must be subject to an external financial audit for expenses incurred within the project.

The project audit will be carried out in two stages: an interim audit covering tranche 1 from April 1, 2023 to September 30, 2024 and a final audit covering the period from October 1, 2024 to March 31, 2026.

The search for the external auditor is the objective of the terms of reference presented here.

The selected auditor must express a professional and independent opinion on the financial report prepared by Groupe URD for the expenses implemented as part of the project. The auditor must:

• Comply with the list of checks to be carried out, presented in appendix 1,
• Ensure compliance of the financial report with the model required by AFD,
• Ensure the eligibility of expenses incurred during the project and reported in the financial report
• Decide on compliance with the procedures listed in the Financing Agreement with the AFD and in the methodological guide of the AFD CSO support system ( https://www.afd.fr/fr/les-organisations- of-civil-society )
• Certify the financial report to be presented to the AFD

Organization of the audit
1. Audit methodology and approach
The consultant will propose a methodological note for carrying out this audit.
This must in particular specify the sampling methodology to
ensure the representativeness of the expenditure to be controlled at the overall level and for
each budget heading.
2. Location of Intervention
Interventions will mainly take place at the headquarters of Groupe URD, located La
Fontaine aux Marins, 26170 PLAISIANS, and/or remotely (in this case,
the auditor will be asked to specify the method of control at distance).

Progress and scope of the audit
The audit will take place in two stages:
1. Framework meeting with the auditor
This meeting must be held within the month following the signing of the contract. The main objective
of this meeting is a good understanding by the OSC of the scope and
control methods of the audit. It must enable it to strengthen the
internal procedures essential for compliance with its contractual obligations in order,
ultimately, to facilitate the auditor’s control work and to limit as much as possible the
rate of ineligible expenditure noted at the end of project execution. This meeting
can also allow the auditor to make recommendations to the OSC at the
start of the project.
2. Carrying out and reporting the financial audit
The examination will include as main tasks:
– Ensuring that all expenses have been incurred in accordance with the
provisions provided for in the Financing Agreement and in the
methodological guide of the financing system support for AFD CSOs, with
particular vigilance on commitments relating to procurement.
– Check the eligibility criteria for expenses reported in the
financial report
– Check the resources allocated to the project and the correct allocation of
expenses by donor.
The eligibility criteria for expenses are mainly as follows:
– The expenses were actually incurred during the period covered
by the Financing Agreement
– The expenses incurred were planned in the budget and are classified in the
correct budgetary category.
– The expenses incurred were necessary for the implementation of the project
– The expenses incurred and reported in the financial report were
recorded and allocated to the project in the accounting system of Groupe URD
or that of its partners in accordance with the accounting standards
applicable in the country of establishment of the latter and usual accounting practices
.
The auditor will carry out all the checks mentioned in the checklist
in Appendix 2. If certain points could not be verified, this should be
specified and the reason given in the management letter.

Reports to be provided
At the end of the scoping meeting described in part V1, the auditor will write, in complete
independence, a scoping note which will record his main recommendations for
the implementation of the financial audit.
The interim financial audit must take place after the end of
tranche 1 of the project (September 30, 2024).
The final financial audit described in part V2 must take place after
the end of the project (March 31, 2026). The audit report must be provided within six months
following the end of the project. It is imperative that he justify the verification of expenses and
provide comments on each of the controls. It must indicate the amount of
expenses declared ineligible (also commented for each expense
concerned). The competitive bidding procedures, retrocessions and
valuations must also be evaluated and commented on.
The checklist (see appendix 2) must be annexed to the audit report.
A management letter summarizing the main conclusions of the
expenditure audit report and formulating the main recommendations.

Technical and financial proposal
The consultant invited to tender must provide the following elements to Groupe
URD:
A technical proposal which must indicate:
– The methodology proposed for conducting the audit
– The references and experiences of the consultant (3 pages maximum);
– The CV of the participant(s) and the distribution of responsibilities;
– The estimated intervention schedule as well as an estimate of the costs
in man/days;
A financial proposal which must indicate:
– The total costs of the audit in EUR including tax
– The payment terms (schedule)
The profile of the consultant:

• The partner signing the report must be a qualified chartered accountant and
  member of the professional associations of Chartered Accountants
• The associated staff must have experience in project audits
  financed by French public donors.
• Application of recognized professional standards (IFAC, IDEAS, etc.)

Budget
The maximum budget for the audit is 9,000 euros all taxes included and all
field missions included.

See detailed terms of reference.