External Project Audit -HIVOS عودة إلى الفرص

Invitation to Bid: External Project Audit 

This Terms of Reference (ToR) serves as an invitation for qualified, independent audit firms to  submit proposals to conduct end of project external audit of the “Qudurat” project implemented  by Hivos. The audit must be carried out in accordance with International Accounting Standards  (IAS) and donor-specific terms and conditions. Only firms meeting the selection criteria outlined  below will be considered. 

1. Introduction 

This ToR outlines the requirements for an external audit of the Qudurat project, implemented by  Hivos in Tunisia. The audit aims to provide independent assurance regarding the accuracy,  allowability and eligibility of project expenditures and compliance with donor requirements and  accounting standards. 

The Qudurat project, implemented by Hivos in collaboration with two partners. Duration of the  project: 18/09/2023 – 31/01/2026, for a total project budget of $740,740. 

2. Purpose and Objectives 

The primary purpose of the audit is to provide donor, Hivos and other stakeholders with an  independent assessment of the financial management of the Qudurat project and its compliance  with applicable requirements and awards conditions. 

The audit objectives are to: 

– Express an independent auditor’s opinion on the project’s financial statements for the  period of 28 months, spanning from, September 18, 2023 to January 31, 2026 – Verify that costs charged to the project are accurate, allowable, reasonable, and in line  with donor requirements and awards terms and conditions 

– Assess compliance with donor cooperative agreement requirements including reporting,  procurement, and subaward management. 

– Evaluate internal control environment with relation to project implementation and financial  management. 

– Identify irregular costs, weaknesses or instances of non-compliance and provide  actionable recommendations.

3. Scope of Work 

The audit will cover all project related activities, transactions, and financials statements for the  lead awardee Hivos and its two implementing partners in Tunis for the implementation period  (September 18, 2023 – January 31, 2026). 

The audit’s scope includes but is not limited to: 

– Examination of project books, records, ledgers, bank accounts, contract and financial  statements 

– Verification of costs to ensure they are supported, allowable, allocable, reasonable and  directly related to the project activities. 

– Review of procurement, asset management and subaward processes for compliance with  donor requirements and award’s terms and conditions 

– Review of internal controls over financial management, procurement, cash handling,  payroll, travel and reporting 

– Verification that reporting to donor was accurate, complete and supported.

– Assessment of compliance with Tunisian tax, labor and financial regulations applicable to  NGOs 

– Review of sub-recipient financial management and monitoring procedures. 

The audit must be conducted in accordance with applicable International Auditing Standards (IAS). 

4. Audit Procedures 

The auditor is expected to apply procedures including but not limited to: 

– Detailed transactions testing and analysis of expenditure  

– Review of supporting documentation such as invoices, timesheets, contracts,  procurement records and payroll data 

– Reconciliation of reported expenditures to accounting records and bank statements.

– Testing of internal controls, segregation of duties, and authorization procedures.

– Site visits or verification of physical assets and activities, as deemed necessary. – Interviews with key finance and program staff. 

5. Deliverables 

The external auditor is expected to provide the following deliverables, broken-down in two phases: 

➔ Phase 1: 18 September 2023 until 31 December 2024, and 

➔ Phase 2: 1 January 2025 until 31 January 2026 

1. Audit Work Plan: Outlining the audit approach, scope, and timeline 
2. Individual audit report for each of Hivos and its two implementing partners, and one  consolidated report including:

– Auditor’s opinion on the project financial statement. 

– Statement on the allowability, allocability, and reasonableness of costs. – Assessment of compliance with donor requirements. 

– Statement on the adequacy of internal controls 

3. Schedule of findings and questioned costs: listing any identified non-compliance, ineligible  expenditures, or internal control weaknesses 
4. Management Letter: with recommendations for strengthening financial controls and  compliance. 

Report Deadlines: 

• Phase 1 audit report by December 27, 2025 
• Phase 2 and Consolidated Audit reports by February 28, 2026 

Audit reports must be submitted in English. 

6. Audit Team 

The audit firm must: 

– Be legally registered and authorized to practice in Tunisia. 

– Have at least 5 years of experience auditing a range of donor-funded programs.

– Demonstrate knowledge of international grants management requirements 

– Include at least once certified public accountant (CPA), ACCA or equivalent 

7. Duration and Timeline 

The audit engagement is expected to commence on November 27, 2025 and conclude no later  than February 28, 2026. The auditor should propose a detailed schedule of key milestones  including planning, fieldwork, draft report submission and final report delivery. 

8. Eligibility Criteria 

To be eligible, the audit firm must: 

– Be independent of Hivos, its implementing partners with no conflict of interest.

– Be a licensed and registered audit firm in Tunisia and capable of operating legally.

– Have documented experience with various donor project audits. 

– Provide 3 references from previous project audits. 

9. Submission of Proposals 

Firms interested in this engagement should submit: 

– A technical proposal, detailing the audit methodology, understanding of DRL requirements,  and work plan.

– A financial proposal with a detailed fee structure and applicable taxes

– CVs of the proposed audit team members 

– Evidence of prior experience with project audits . 

– Three references on similar work 

Proposals must be submitted by Tues, November 18, 2025 to menaprocurement@hivos.org ,  subject “External Project Audit – Qudurat project ”. Late submissions will not be considered. 

10. Evaluation Criteria 

Proposals will be evaluated based on the following criteria: 

– Ability to deliver within the specified deadline. 

– Relevant experience and qualifications of the audit team. 

– Proposed methodology and understanding of the assignment. 

– Cost-effectiveness of the proposal. 

– References from similar assignments.