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Terms Of Reference (TOR) For Provision of Audit Services for The Year Ended 31 December2022

Muslim Aid Somalia Field Office

January -22-2023.

TERMS OF REFERENCE (TOR) FOR PROVISION OF AUDIT SERVICES FOR THE YEAR ENDED 31 December2022

Background

Muslim Aid is a UK based international relief and development agency established in 1985. The principal activities of the organisation are provision of humanitarian aid to victims of natural disasters, wars, and famine through long term development programmes. Muslim Aid’s work is guided by the following values and principles:

Serve humanity with dedication and enthusiasm by putting our beneficiaries first.

Be committed to alleviating poverty regardless of religion, ethnicity, nationality, gender or age.

Be adaptable and responsive to the changing needs of our beneficiaries.

Work in partnership with others.

Be accountable and transparent in our work.

Embody the universal principles of compassion, peace and justice.

Appointment of Auditors

The directors of Muslim Aid wish to recruit external financial auditors to carry out the audit of Muslim Aid Somalia Field Office for the financial year ended 31 December 2022. The directors have the overall responsibility for the selection of the external auditor.

Scope of Work

The audit will be carried out in accordance with International Standards on Auditing and will include such tests and controls as necessary in the circumstances. In conducting the audit, special attention should be paid to establish whether:

All external funds have been used in accordance with conditions of the relevant legal agreements, with due attention to economy and efficiency and only for the purposes for which the financing was provided;

Counterpart funds have been provided and used only for the purposes for which they are provided and in accordance with the relevant financing agreements, with due attention to economy and efficiency;

Construction, goods and services financed have been procured in accordance with relevant financing agreements;

All necessary supporting document, records and accounts have been kept in respect of all projects expenditure;

The financial statements have been prepared in accordance with consistently applied acceptable Accounting Standards;

Special Accounts have been maintained in accordance with the provisions of the relevant financing agreements; and

The PFSs have been prepared in accordance with Generally Accepted Accounting Principles and give a true and fair view of the resources and expenditure for the year and of the financial position as at the end of the year.

The auditors agree to cooperate with the instructions issued by the external auditors of MuslimAid UK (Sayer Vincent)

The Project Financial Statements (PFSs) should include:

A summary of sources and uses of funds, showing funds received from the Muslim Aid Somalia Field Office, and a summary of expenditure shown under the main project headings;

A schedule of expenditure detail by main categories of expenditures, for the fiscal year and accumulated to date; and follows the template of MA HQ standards.

A Balance Sheet showing accumulated funds of the project and bank balances

There should be a summary schedule showing expenditures using the Summary Sheet and Statement of Expenditure (SOE) procedures by specific reference number and amount. The total Summary Sheet and SOE withdrawals should be part of the overall reconciliation of monthly and quarterly report.

The notes to the PFSs should also include a schedule showing the fixed assets that belong to the projects. A fixed assets register should be maintained and regularly updated, and that the figures indicated in the schedule should be in agreement with the register.

Besides the PFSs, perform an audit to the Special Account (SA) which comprises:

Deposits and replenishments received from the Muslim Aid Somalia Filed Office

Payments substantiated by withdrawal applications for eligible expenditures in concurrence with legal documents.

Interest that may be earned from the balances and which belong to the project; and

The remaining balances at the end of each fiscal year

SA statements and audit’s report thereon will be submitted to Muslim Aid Field Office at the same time as the annual financial statements.

Confirmation should be obtained from MA UK on the 2022 intercompany balances and total transfers made from Muslim Aid HQ.

Audit Reports

Besides a primary opinion on the PFSs, this audit will include therein a separate opinion confirming on the accuracy and propriety of expenditure withdrawn under Statement of Expenditure (SOE) procedures, if appropriate, and the extent to which these can be relied upon as a basis for grant disbursements. The review of the SOEs should:

Determine that the project has maintained adequate supporting documentation to support claims for bank reimbursement of expenditures incurred;

Assess the adequacy of accounting and internal control systems to monitor expenditures and their validity

Verify that expenditures are eligible for financing under the Grant Agreement; and

Identify any ineligible expenditure, and where identified, these should be specifically noted by the auditor

The project Financial Statements, including attached to the audit report (opinion thereon), will be submitted to Muslim Aid Somalia Field office and other parties which are mentioned as interested parties on the date of the report.

 

Skills and Qualifications

Qualifications of the Auditor

The Auditor must be independent from all aspects of management or financial interests of the Muslim Aid. The Auditor shall not, during the period covered by the audit nor during the undertaking of the audit, be employed by, serve as director for, or have any financial or close business relationships with any staff member who person holds a senior management position in Muslim Aid.

The auditor shall be suitably experienced and engage adequately qualified staff in the provision of professional services to Muslim Aid Somalia Field Office. The auditor should provide Curriculum vitae(s) for the key personnel that would be responsible for the assignment. The CV(s) should include the years of professional experience and qualifications, including their capability and capacity to undertake the audit.

Deliverables:

Auditor’s Transmittal Letter

A Consolidated Balance Sheet for Core Accounts

A Consolidated Receipt & Payment Account/Cash Flow statement including all project accounts

Consolidated Income & Expenditure Statement including all project accounts

Consolidated Notes to the Financial Statement including all project accounts

Audited accounts and financial statements:

Auditor’s Report on the overall Financial Statements.

Management Letter on Internal Control Issues.

Analysis of funds received and funds disbursed.

Timing

The audit shall be conducted within the period of 15th of Feb 2023 to 28th of Feb 2023 and signed final audit report and management letter to be submitted to MA HQ by 28th of Feb 2023.

Reports

The audit reports shall be submitted in English language.

 

How to apply

Interested and qualified applicants can view the profile and apply for this position throughEmail: somaliarecruitment@muslimaid.org

Closing Date will be 10 February 2023. We will be initiating interviews on a rolling basis with the aim of identifying an appropriate candidate as quickly as possible. Once a suitable candidate is found, the position will be closed.

Only short-listed applicants will be contacted.

We are an equal opportunities employer and welcome all applications regardless of age, gender, ethnicity, faith, or disability

Only candidates can apply for this job.
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