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TERMENI DE REFERINTA

By Clifford Grant,2014-05-18 13:52
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TERMENI DE REFERINTA

    TERMS OF REFERENCE

    AUDIT SERVICES

    I. Programme Summary Beneficiary: Romanian Angel Appeal Foundation

Romanian Angel Appeal Foundation is the Principal Recipient of two Round 6 (HIV/AIDS and

    TB) grants from the Global Fund to Fight AIDS, Tuberculosis and Malaria. Specifically, the

    Round 6 HIV/AIDS grant funding is to support the implementation of the Programme entitled

    “Towards Universal Access to HIV/AIDS Prevention, Treatment, Care and Social Support for

    Vulnerable and Underserved Populations”.

    The overall goal1 of the programme is to maintain the incidence of HIV/AIDS in Romania at the low level of 2005 by targeting vulnerable populations and young people living with HIV/AIDS

    with effective interventions.

The objectives of the programme are: to increase the access of vulnerable and poor populations

    to prevention and treatment services, and to ensure the adequate combination of services and

    support for young people living with HIV/AIDS (YPLWHA) in order to avoid a second wave of

    the epidemic in Romania.

The programme is focused on keep building, at local level, the implementing capacity and

    supporting the efficient prevention efforts with the active involvement of all the interested parties.

    The program is based on the commitment of the government of Romania to continue funding

    prevention efforts among young people and the treatment and care of people infected and

    affected with HIV.

The programme is also based on the government's commitment to begin as soon as possible to

    gradually take over the costs of prevention intervention efforts targeting vulnerable populations.

    Goal and Objectives: The overall goal of the Program is to maintain the incidence of HIV in Romania at the low levels of 2005 by targeting vulnerable groups and YPLWHA with effective

    interventions.

The achievement of the Program goal will be pursued through three main objectives:

    ? The first objective is concentrated on further expanding the prevention interventions

    targeting vulnerable groups and enhancing services that may reduce their

    vulnerability to HIV/AIDS.

    ? The second objective is focused on YPLWHA and aims to diversify the range of

    services to be provided to them.

    ? The third objective focuses on the efficient and effective implementation of the grant.

     1 For more information please access the link http://www.fondulglobal.ro/stadiul-implementarii/hiv-sida/

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In order to achieve the objectives and the indicators set up together with the Global Fund, the

    Principal Recipient has signed within Phase 1, 26 Sub-Grant Agreements with 26 Sub-Recipients

    for the HIV Component.

II. Principal Recipient

The Principal Recipient of the grant is the Romanian Angel Appeal Foundation with

    responsibilities under the grant outlined in the Program Grant Agreement #ROM-607-G03-H.

Under the terms of the Program Grant Agreement, the Principal Recipient may provide Grant

    funds to other entities to carry out Program activities (i.e. Sub-recipients)

For details on the organizational chart of the Principal Recipient, please see the RAA’s

    Organigrama attached to the end of page.

Address of the Principal Recipient

    Romanian Angel Appeal Foundation

    116A, Agricultori Street, Sector 2

    021495, Bucharest Romania

    Phone: +40 21 323 68 68

    Fax: +40 21 323 24 90

    E-mail: office@raa.ro

List of Senior Officers and Contact Details

    Silvia Asandi General Manager Phone: +40 21 323 68 68

    Fax: +40 21 323 24 90

    E-mail: office@raa.ro

    Dana Marin Financial Manager Phone: +40 21 323 68 68

    Fax: +40 21 323 24 90

    E-mail: dana.marin@raa.ro

List of Contact Persons responsible for Accounting, Financial Management and Internal Audit

    Mihaela Nacu Financial Officer Phone: +40 21 323 68 68

    Fax: +40 21 323 24 90

    Mobile: +40 0731 137 522

    E-mail: mihaela.nacu@raa.ro

    Mihaela Rosca Accountant Phone: +40 21 323 68 68

    Fax: +40 21 323 24 90

    Mobile: +40 0721 151 187

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    E-mail: mihaela.rosca@raa.ro

    Ana Maria Duca Procurement Officer

    Phone: +40 21 323 68 68

    Fax: +40 21 323 24 90

    Mobile: +40 0731 137 523

    E-mail: ana.duca@raa.ro

    III. Financial Statements

    1. According to the Grant Agreement for the budget for the first year of Program implementation

    is EUR 3,629,879.

    The budget for the audit period (1 July 31 December 2007) is EUR 2,099,333.

    2. Funds Received and Disbursed by 31 December 2007. Principal Recipient and 138,577 Euros 105,621 Euros 127,310 Euros Entities Funds received from Funds disbursed Funds spent Romanian Country Global Fund Coordination Mechanism

    Sub-Recipients 1,906,756 Euros 1,713,805 Euros 938,243 Euros

3. Accounting standards

    The Principal Recipient and the Sub-recipients prepare their accounts in accordance with the

    Accounting Law no. 82/ 1991, as amended and with the regulations issued by the Ministry of

    Finance applicable to not-for-profit legal entities and to public institutions.

The Program Financial Statements are prepared on the cash receipts and payments method and

    Global Fund Guidelines. On this cash basis, cash receipts are recognized when received and cash

    expenditures are recognised when paid rather than when incurred.

The Program Financial Statements are prepared in EURO. The Romanian Lei (RON) equivalent

    of expenditures is calculated according to the exchanges rate provided by the Principal

    Recipient’s bank on the day of disbursement.

The Principal Recipient and the Sub-recipients must to use different bank accounts for each

    activity covered by the Program. The bank accounts must be opened in RON, to an agreed bank

    that offers competitive interest rates. The Principal Recipient and the Sub-recipients can use

    the funds granted only for the implementation of the activities covered by the Program. The

    Principal Recipient and the Sub-recipients must keep the funds received in the current accounts.

Similar to the special bank accounts, the Principal Recipient and the Sub-recipients must open

    special cash registers, different for each activity covered by the Program, for the expenses made

    through the cash register.

The expense reports must be made on a quarterly basis

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Segregation of duties must be enforced for activities such as: approve payments, verify the

    eligibility of expenses, make payments and register payments in the accounting records.

    IV. Objective of the services/Audit Scope The purpose of the audit of the Program Financial Statements and the account of the Program

    Towards Universal Access to HIV/AIDS Prevention, Treatment, Care and Social Support for

    Vulnerable and Underserved Populations”, Grant ROM-607-G03-H, implemented by the

    Romanian Angel Appeal Foundation as a Principal Recipient, is to enable the auditor to express

    a professional opinion on the financial position of the Program and that the Program Financial

    Statements give a true and fair view of the financial position of the Program as of 31 December

    2007, and of the resources and expenditures for the period 1 July 31 December 2007.

    The objective of the audit services is to allow the auditor/audit firm (“Auditor”) to express an

    expert opinion on the financial statements of the projects developed by the Principal Recipient

    and the Sub-Recipients and financed by the Global Fund starting with the date of Grant

    Agreement signing. The purpose of the audit is to verify the projects’ financial statements, the accounting documents and registrations, the projects’ accounts statements and the financial

    transactions run through these.

    Following this process, the Auditor will envisage the strengths and vulnerabilities of the

    management procedures and will make recommendations.

In order to perform the audit, the auditor would have full and complete access at any time to all

    records and documents related to the project (including books of account, legal agreements,

    minutes of committee meetings, bank records, invoices and contracts etc) and all employees of

    the entity.

V. Description of the Auditor’s activities and responsibilities (Principal Recipient and Sub-

    recipients)

    The Auditor and its team have to be independent and not to be involved in any relation with the

    Beneficiary (the Principal Recipient and the Sub-Recipients) or with any members of the

    Beneficiary’s staff.

    In order to achieve the above mentioned objectives, the Auditor will perform the following

    activities:

    a. The audit will be performed in accordance with the International Standards on Auditing

    (ISA) issued by IFAC International Federation of Accountants, with a special attention

    to ISA 701 “Modifications to the independent auditor’s report” applicable starting with

    31 December 2006, and to ISA 800 “The Independent Auditor’s Report on Special

    Purpose Audit Engagements”, and by following the Ethics Code for professional

    accountants.

    b. Special attention will be paid whether the Program Financial Statements have been

    prepared in accordance with the Grant Agreement and the accounting principles stated

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above and whether grant funds have been spent in accordance with the conditions of the

    relevant financing agreements.

    c. The Auditor will verify during his mission the contractual documents of the Principal

    Recipient and those of the Sub-Recipients, with special attention on the Sub-Recipients

    Annex 2. Budget of the Project and Annex 3. Procurement Plan of the Project. The

    Auditor will verify the financial reports and statements of the Principal Recipient and of

    the Sub-Recipients and their correspondence with the Grant Agreement and Annexes 2

    and 3 of the Sub-Grant Agreements, separately for the Principal Recipient and for the

    Sub-Recipients.

    d. The period which will be audited is between the signing date of the Grant Agreement and

    Sub-Grant Agreement (1 July 2007) and 31 December 2007.

    e. The audit process will envisage particularly the following aspects:

    - If the funds received have been used in accordance with the conditions of the Grant

    Agreement and the Sub-Grant Agreements and served the purpose of the project; - If the goods, services and works have been procured in accordance with the Grant

    and Sub-Grant Agreements, the Operational Manual and the Procurement Supply

    Management Plan applicable for Romania;

    - To verify if the expenditures for a transaction or an operation have been accurately

    registered in the Beneficiary’s accounting system and Financial Report and if they

    are backed up by supporting documents. Furthermore, the Auditor verifies if the

    expenditures for a transaction or operation have been reported to the proper chapter

    and sub-chapter.

    - To verify if the budget from the Financial Report corresponds with Annex 2.

    Budget of the Project (the accuracy and authorisation of the initial Budget) and if

    the expenditures incurred have been included in the budget of the project; - To verify if the Requests for Funds of the Sub-recipient is correct and in accordance

    with the provisions of the Sub-Grant Agreement and the Operational Manual; - To verify if the budgetary reallocations are applied in the preparing of the financial

    reports and if these are in accordance with the standard models described in the

    Operational Manual;

    - To verify the expenditures and to report all the exceptions that result from this

    verification. The verification’s exceptions represent all the exceptions found in

    applying the procedures specified in the Operational Manual. In all cases the

    Auditor will evaluate the financial impact (the estimated impact) of the exceptions

    as related to non-eligible expenditures. For example: if the Auditor should find an

    exception regarding the procurement rules, he will evaluate how this has led to non-

    eligible expenditures. The Auditor will report all the exceptions found, including

    the ones where he cannot measure the financial impact.

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f. The Auditor will verify if all the information from the Financial Reports are in

    accordance with the Beneficiary’s accounting and registration system (i.e. balance sheet,

    general ledger, various accounting registers, etc.).

    g. The Auditor shall submit to the Beneficiary the accurate planning for the activities that

    will be performed during his mission, no later than two weeks since the date of contract

    signing.

    h. The Auditor is responsible for the confidentiality of the information and documents that

    he has been given access during his mission.

    i. The period of time in which the Auditor will perform the audit and submit an audit report,

    separately for each entity (Principal Recipient and Sub-Recipients) both in Romanian and

    English language, is of no more than one quarter (3 months) from the date of contract

    signing, but no later than 15 June 2008.

    The audit report will state if the audit was not in conformity with any of the above and indicate

    the alternative standards or procedures followed.

VI. A. Audit Report: the following results should be produced:

    1. The Auditor will submit one draft audit report separately for each Sub-Recipient and Principal

    Recipient. Within two weeks in which the Beneficiary (Principal Recipient and Sub-

    Recipients) will have time to comment on the report, the Auditor will submit the final audit

    report. The audit report shall include the following information:

    - Accounting standards that have been applied and that indicate the effect of any

    deviations from these standards

    - The audit standards applied ISA

    - The period covered by the audit

    - Whether the Program Financial Statements present fairly the cash receipts and

    disbursements made under the Program and whether the funds were utilized for the

    purposes defined in the Program Grant Agreement

    - Whether the reports of the Sub-recipients present fairly the cash receipts and

    disbursements under the Program and whether the funds were utilized for the

    purposes defined in the signed agreements between the Romanian Angel Appeal

    Foundation and the sub-recipients;

    - A summary of the funds received;

    - A summary of the expenditures on each budgetary chapter and on each main budget

    caption per each reporting quarter separately and cumulative up to the end of the

    fiscal year (31 December 2007);

    - A statement on the special project accounts.

    2. The final audit report will be both in Romanian and English language separately for each Sub-

    Recipient and Principal Recipient. Each report will be written and signed in 6 copies: three

    copies in English and three copies in Romanian; one copy in English and one copy in

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Romanian for the Global Fund and LFA, one copy in English and one copy in Romanian for

    Sub-Recipient and one copy in English and one copy in Romanian for the Principal Recipient.

    In case of any translation/different interpretation issues occur, the English version will prevail

    VI.B. Management Letter 1. In addition to the audit reports, the auditor will prepare a "management letter,"(English and

    Romanian language), separately for each Sub-Recipient and Principal Recipient, in which the

    auditor will:

    a) give comments and observations on the accounting records, systems, and controls

    that were examined during the course of the audit;

    b) assessment of the internal control system of the PR and the sub-recipients

    c) identify specific deficiencies and areas of weakness in the internal control system

    and the financial management of the Program and make recommendation for their

    improvement;

    d) report on the compliance of each financial covenant in the relevant financing

    agreement;

    e) communicate matters that have come to attention during the audit which might

    have a significant impact on the implementation of the project;

    f) bring to the PR’s attention any other matters that the auditor considers pertinent;

    and

    g) include management's comments in the final management letter. 2. The management letter will be both in Romanian and English language separately for each

    Sub-Recipient and Principal Recipient. Each letter will be written and signed in 6 copies: three

    copies in English and three copies in Romanian; one copy in English and one copy in Romanian

    for the Global Fund and LFA, one copy in English and one copy in Romanian for Sub-Recipient

    and one copy in English and one copy in Romanian for the Principal Recipient. In case of any

    translation/different interpretation issues occur, the English version will prevail

VII. Necessary qualifications:

    The Auditor shall have the following qualifications:

    - the Auditor and the members of the audit team must have graduated from a University with

    major in the area of financial audit;

    - the Auditor has to be an active member of the Chamber of Financial Auditors of Romania;

    and to submit copies of the CFAR member certificate and of the CFAR member book

    stamped for the current year;

    - The auditor must be experienced in applying ISA audit standards

    - The auditor must employ adequate staff with appropriate professional qualifications, and

    suitable experience with ISA standards, including experience in auditing accounts of entities

    comparable in size and complexity to the entity being audited;

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- The Senior Auditor should have at least 7 years of experience as Certified Public Accountant

    or of membership of a professional accounting/auditing body;

    - the Auditor should have at least 3 (three) years experience in the field of financial

    accounting audit;

    - The Auditor should have strong knowledge on the fiscal and labour legislation applicable in

    Romania, and to become familiar with the procedures of the Operational Manual and of the

    Global Fund Guidelines for Audit of Programme Financial Statements.

    - The audit company should have experience in auditing donor-funded programs

    - Fluency in reading and writing in English

    - CVs should be provided to the Principal Recipient by the principal of the firm of auditors

    who would be responsible for signing the opinion, together with the CVs of managers,

    supervisors, and key personnel proposed as part of the audit team.

VIII. Evaluation criteria

     MAXIMUM CRITERIA POSSIBLE SCORE General Qualifications (general education and training, experience, 1. 30 points position, etc.)

    Specific Qualifications and Abilities (education, trainings and experience 2. 50 points in the field, relevant for the task allocated)

    3. Most advantageous financial offer 20 points

     Total maximum score 100 points Selection of the Auditor:

    The applicant who scores highest on the evaluation criteria will be invited for the negotiation of

    the contract.

IX. Location and reporting

    The Auditor will prepare audit reports for the following Sub-Recipients, in accordance with the

    Terms of Reference:

    - Alianta Pentru Lupta Impotriva Alcoolismului si Toxicomanilor - ALIAT, audit report

    for 1 project deadline for submission 15 June 2008;

    - ARAS Asociatia Romana Anti-SIDA, audit report for 9 projects deadline for

    submission 15 June 2008;

    - Association INTEGRATION, audit report for 2 projects deadline for submission 15

    June 2008;

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- Foundation Population Services International Romanian Branch (PSI Romania), audit

    report for 2 projects deadline for submission 15 June 2008;

    - Association ACCEPT, audit report for 2 projects deadline for submission 15 June 2008;

    - Fundatia Alaturi de Voi (ADV), audit report for 2 projects deadline for submission 15

    June 2008;

    - Asociaţia AntiSIDA Noua Speranta Petrila, audit report for 3 projects deadline for

    submission 15 June 2008;

    - Asociatia Lizuca Bacau, audit report for 2 projects deadline for submission 15 June

    2008;

    - Asociatia Speranta Constanta, audit report for 1 projects deadline for submission 15

    June 2008;

    - Fundatia Baylor Marea Neagra, audit report for 2 projects deadline for submission 15

    June 2008;

    - Fundatia Dezvoltarea Popoarelor - FDP, audit report for 5 projects deadline for

    submission 15 June 2008;

    - Fundatia I Nostri Bambini, audit report for 3 projects deadline for submission 15 June

    2008;

    - Fundatia Health Aid Romania - HAR, audit report for 3 projects deadline for

    submission 15 June 2008;

    - Fundatia Inima de Copil, audit report for 3 projects deadline for submission 15 June

    2008;

    - Fundatia Romanian Children's Appeal - RCA, audit report for 2 projects deadline for

    submission 15 June 2008;

    - Fundatia Salvati Copiii Romania, audit report for 1 project deadline for submission 15

    June 2008;

    - Asociatia / Fundatia Societatea pentru Copii si Parinti (SCOP), audit report for 2 projects

     deadline for submission 15 June 2008;

    - Asociatia - Societatea de Educatie Contraceptiva si Sexuala (SECS), audit report for 2

    projects deadline for submission 15 June 2008;

    - Asociatia / Fundatia Tineri pentru Tineri (TNT), audit report for 1 project deadline for

    submission 15 June 2008;

    - Uniunea Nationala a Organizatiilor Persoanelor Afectate de HIV/SIDA (UNOPA), audit

    report for 3 projects deadline for submission 15 June 2008;

    - Asociatia Zambete de Copii, audit report for 1 project deadline for submission 15 June

    2008;

    - Asociatia Ecumenica a Bisericilor din Romania-AIDRom, audit report for 1 project

    deadline for submission 15 June 2008;

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    - Asociatia Red Ribbon - Falticeni, audit report for 3 projects deadline for submission 15

    June 2008.

    - Romanian Angel Appeal Foundation Bucharest, audit report for 1 project deadline for

    submission 15 June 2008.

    General

Because of the test nature and other inherent limitations of an audit, together with the inherent

    limitations of any accounting and internal control system, there is an unavoidable risk that even

    some material misstatements may remain undiscovered. The responsibility for the preparation of

    financial statements including adequate disclosure is that of the management of the Principal

    Recipients and the Sub-Recipients. This includes the maintenance of adequate accounting

    records and internal controls, the selection and application of accounting policies, and the

    safeguarding of the assets of the entity. As part of the audit process, the auditor will request

    from management written confirmation concerning representations made to the auditor in

    connection with the audit.

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