GENERAL ASSISTANCE AND VOLUNTEERS ORGANIZATION

TERMS OF REFERENCES – PRE-QUALIFICATION OF EXTERNAL AUDITING SERVICE FY 22

Background:

GAVO in partnership with PSR for implementation of human right based approach on mental health and the target location of the project was in Somaliland for four years in 2019-2022. Despite, the high prevalence of mental health disorders in Somaliland, public mental healthcare service provision in Hargeisa and in the whole region remains sparse, with a limited amount of trained mental health care professionals, low public capacity and lacking community mental health care services. Gender equality and human rights issues in mental health services require a special focus due to the especially limited access to mental health care services by women and girls, the high occurrence of SGBV, and the weak human rights situation of people suffering from mental health disorders. Mental health issues carry a strong stigma in Somaliland, with people suffering from mental health disorders often discriminated against and being marginalized.

GAVO is looking for an experienced auditing firm/company who has worked with international NGOs and UN agencies and who has an adequate experience and skills for auditing services.

PURPOSE:

The aim of this audit is to check the income and expenditure of the annual financial report of the project as well as financial and accounting processes, collect and analyze data to detect deficient controls, duplicated effort, extravagance, fraud, or non-compliance with Financial Management policy.

SCOPE

• Evaluating system of internal controls- the auditor will be required to test key controls of the program ( relating to entity process and transaction levels) for each of the main operational processes and test them for the effectiveness (design and operation)
• Checking that funds were spent in conventionality with the approved budget and work plan existing at the time of the expenditure and in line with provisions of the budget.
• Conforming that transactions comply within all materials respects with all applicable legislation and review of the costs charged to the budget.
• Identify and quantifying any ineligible costs as well as agreeing expenditure to supporting documents on a sample basis.
• Match actual expenditure with the budget, and obtain explanations for variances obtained (un approved material budget variations should be included in the in eligible expenditure schedule)
• Confirm that organization has put in place internal control mechanism for the trucking and safeguarding of assets purchased with donor funds and that they are being used for the intended purposes.
• Analyze of the procedure used to control the funds as well as the bank accounts of the project and the controls on those bank accounts. Perform positive confirmation of balances, as necessary.
• Identify that necessary supporting documents, records, and accounts have been retained in compliance with provisions of the budget. Procedure exist for security and management of electronic data (backup systems, and procedures, etc.)