| PART I | ||
| Title of Assignment | Micro Assessment and Audit of UN Implementing Partners (IP) | |
| Section & Supervisor | Operations: Itumeleng Makumbi | |
| Location | Maseru, Lesotho | |
| Duration | Micro Assessment – Two (2) months: (01.07.2020 – 31.08.2020)Audit – (3) months: (01.07.2020 – 30.09.2020) | |
| Start date | From: 01/07/2020 | To: 30/09/2020 |
- MICRO ASSESSMENT: Scope of Work
The Micro Assessment will be performed by a third party service provider and will involve a site-visit to the IP. The Micro Assessment primarily consists of interviews with IP personnel and a review of relevant documentation sufficient to complete the Micro Assessment Questionnaire.
The Micro Assessment Questionnaire provides an overall risk rating based on responses provided on the IP’s financial management capacity in 9 sections (Implementing Partner, Funds Flow, Org Structure & Staffing, Accounting Policies and Procedures, Internal Audit, Financial Audit, Reporting and Monitoring, Information Systems, and Procurement). Partner’s risk rating includes:
- Micro Assessment Procedures/Deliverables:
The third party service provider will receive general information regarding the IPs and related programme from the HACT Focal Point in preparation for the assessment. The third party service provider will review this documentation in advance of performing a site-visit to the IP. The third party service provider should also provide the IPs with a document request listing in advance of the site visit detailing the documents and interviews they would like to have while on-site. This is viewed as a method for ensuring an efficient use of the IPs and third party service provider’s time while on-site.
The third party service provider will complete the Micro Assessment based on the procedures performed during the assessment period.
The third party service provider will discuss the results of the Micro Assessment Questionnaire with applicable agency personnel and the HACT Focal Point prior to finalization. Upon finalization, the third party service provider will deliver an executive summary, detailing the overall risk rating and specific identified risks, and the completed Micro Assessment Questionnaire.
The following deliverables are expected:
· An overall risk rating (S-significant risk; H-high risk; M-moderate risk; L- low risk) of the Implementing Partner’s financial management capacity.
· Risk ratings for funds flow, staffing, accounting policies and procedures, internal audit, external audit, reporting, and monitoring and information systems.
· A summary of the financial management assessment of the Implementing Partners.
· A description of the Implementing Partners including the physical address, phone numbers, fax numbers, web sites and general e-mail addresses.
· A description of the standards applied such as International Accounting Standards (IAS) published by the International Accounting Standards Board or the International Public Sector Accounting Standards (IPSAS) on Cash Accounting published by the Public Sector Committee (PSC) of the International Federation of Accountants may also be described.
· A description of any specific internal control weaknesses noted in financial management.
· Recommendations for monitoring and assurance activities to address or compensate for the weaknesses in the short term.
· Recommendations to resolve/eliminate the internal control weaknesses noted, including short and medium-term capacity development measures.
· Completed Checklist: Financial Management Questionnaire.
1.3 Qualification of the third party service provider:
United Nations Children’s Fund is seeking a reputable Audit firm that has the following requirements:
1) Experience in performing assessments similar to a Micro Assessment and assessing risks related to organization financial management capacity (i.e. accounting, reporting, procurement and internal controls).
2) Knowledge of the United Nations system and development sector.
3) Experienced in applying international standards for audit, using either ISA (International Standards of Audit) or INTOSAI (International Organization of Supreme Audit Institutions) standards.
4) Impartial and independent from all aspects of management or financial interests in the entity being reviewed or those of its implementing/supervising agency or directly related entities.
5) Not employed by, or have any financial or close business relationships with the implementing partner during the period covered by the assessment
6) Able to disclose any relationship that might possibly compromise independence.
7) Staffed with personnel with appropriate professional qualifications and suitable experience with ISA or INTOSAI standards.
8) Able to provide Curriculum vitae (CV) of staff who would be responsible for drafting the report, together with the CVs of members of the assessment team.
Curriculum vitae (CV) of all members of the assessment team should be provided. The CVs should include details on engagements carried out by the relevant staff, including ongoing assignments indicating responsibilities assumed by them, and their qualifications and experience in undertaking similar assessments
- AUDIT: Scope of Work
- The Auditor will obtain an understanding of the engagement context of the programme subject to this audit, based on the agreement, work plan or programme document signed by the agency and the Partner and the additional supplementary information
- The Auditor will notify the UN Agency of any attempt by the Partner to restrict the scope of the audit, or any lack of co-operation on the part of the Partner. If, after accepting the engagement, the Auditor becomes aware that the management of the Partner subject to audit has imposed a limitation on the scope of the audit that the Auditor considers likely to result in the need to express a qualified opinion or to disclaim an opinion, the Auditor shall request that management remove the limitation. The Auditor will notify UN Agency concerned as soon as possible of any limitations in the scope of work he/she may find prior to or during the audit. The Auditor will consult UN Agency on what action may be required, whether or how the audit can be continued, and whether changes in the audit scope or the timetable are acceptable
2.1 Expected Deliverables
- The Auditor will submit an audit report in accordance with the ISA by using the suggested audit report template included in Annex II. It is the expectation that the Auditor will use the same format for all audits global
- The audit report must include at a minimum:
a) Audit Opinion;
b) Period covered by the audit opinion;
c) Total amount of expenses audited;
d) Audit observations and recommendations;
e) Ineligible expenditures; f) Key internal controls weaknesses;
h) Statement of expenditure or CDR for the audit period;
i) FACE forms submitted for the audit period.
- The Auditor will clearly quantify the net financial impact in the audit opinion and clearly identify the reasons for qualification (if any). If financial findings are below the materiality level, the Auditor is still required to report them, even if the dollar amount is small as an emphasis of matter, so that the UNICEF can obtain the recoverable amounts from partners. This information will also be collected as part of the reporting process. Non-financial findings that have financial implications might also lead to a modified audit opinion.
- Any indication included in the Audit Report restricting its distribution and/or use will be deemed null and void.
Qualifications and Conditions (Important) Financial modalities
By agreeing to these ToR, the Auditor confirms that he/she meets at least one of the following terms:
a) The Auditor is a professional accountant (or a firm of professional accountants) that is a member of a national accounting or auditing body or institution, which in turn is a member or associate of the International Federation of Accountants (IFAC)
b) The Auditor is a member of a national accounting or auditing body or institution that is a recognized regulatory body of professional accountants and Auditors. The Auditor commits him/herself to undertake this engagement in accordance with the IFAC Handbook on International Standards on Auditing and Quality Control, including the Code of Ethics therein.
c) The Auditor is registered as a statutory Auditor in the public register of a public oversight body in a third country, and this register is subject to principles of public oversight as set out in the legislation of the country concerned (this applies to Auditors and audit firms based in a third country).
- The Auditor is subject to the relevant ethical requirements, including those pertaining to independence and conflict of interest relating to HACT audit engagements. Relevant ethical requirements ordinarily comprise of Parts A and B of the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) related to an audit of financial statements together with national requirements that may be more restrictive.
HOW TO APPLY
Interested qualified consulting firms / companies will acces the Request For Proposal (RFP) here: https://procurement-notices.undp.org/
Or collect the RFP from the UN House Reception, Ground Floor, 13 UN Road Maseru (Opposite Maseru Club). The RFP will be available from Monday 8 June 2020 both online and for collection from the UN House.
For queries, please send email to: [email protected]