فرصة عمل: مطلوب مُدقِق خارجي – External Auditor للعمل لدى Arab NGO Network

Terms of Reference for the Selection of an External Auditor

Interested auditing firms or individuals are invited to submit their proposals, which should include the following:

1. A cover letter expressing interest in conducting the audit.

2. A detailed description of the firm's profile, including relevant experience and qualifications of the auditing team.

3. A proposed timeline for the audit process, including key milestones.

4. A breakdown of the audit fees and expenses.

5. Proof of a valid certification.

Background and Context:

ANND is an independent, democratic and civil network, established in 1997, aimed at strengthening and empowering civil society and promoting the values of democracy, respect for human rights and sustainable development in Arab countries. Which is all consistent with the International Bill of Human Rights and the freedom and dignity of the individual, respect for pluralism, equitable distribution of wealth, preservation of the cultural heritage of the region, and to achieve the development priorities of local communities.

ANND consists of 9 national networks and 23 NGOs operating in 12 Arab countries.

ANND’s work is organized according to three main areas:

Strengthening the capacity and the role of CSOs in advocacy and lobbying in the field of economic and social policy- making in the Arab region;

Strengthening the spaces available for CSOs' participation in economic and social policy-making at the national, regional, and international levels;

Promoting and developing the knowledge materials available in the Arab region related to the role of civil society.

As part of ANND commitment to transparency and accountability, we are seeking the services of a qualified external auditor to perform an independent audit for the fiscal year 2023 (January 1, 2023, to December 31, 2023).

Objectives:

The primary objectives of this audit are as follows:

To ensure the accuracy and reliability of ANND financial statements.

To evaluate the effectiveness of ANND internal controls and financial management procedures.

To provide recommendations for improvement in financial practices, if necessary.

To comply with relevant legal and regulatory requirements.

To assess compliance with donor requirements and funding agreements.

To identify and address any financial issues or concerns that may impact ANND's financial stability and overall operations.

Scope of Work:

The external auditor's scope of work will include, but is not limited to, the following:

1. Examination of Financial Statements:

The external auditor will conduct a thorough examination of ANND's financial statements. This will involve verifying the accuracy and completeness of financial data, ensuring compliance with accounting principles, and identifying any material misstatements.

2. Review of Financial Transactions:

The auditor will review individual financial transactions to assess their validity, authorization, and proper recording. This examination will encompass payments, receipts, and other financial activities to ascertain adherence to established financial procedures.

3. Assessment of Internal Controls:

The auditor will be evaluating the effectiveness of ANND's internal control systems. identifying potential weaknesses or deficiencies in internal controls that could pose risks to the ANND's financial integrity and recommend improvements for risk mitigation.

4. Compliance with Donor Agreements:

For projects funded by external donors, the auditor will verify the proper utilization of funds in accordance with donor agreements and funding guidelines. This includes evaluating the allocation of resources to specific project activities and ensuring compliance with reporting requirements.

5. Examination of Project Expenditures:

In case of project-specific audits, the auditor will examine the expenditures related to each project. This examination will involve verifying the legitimacy of project expenses, their alignment with project objectives, and ensuring that funds have been utilized as intended.

6. CNSS Declarations:

The auditor will conduct a thorough review to ensure that ANND is in compliance with the required contributions to the Caisse Nationale de Sécurité Sociale (CNSS). This examination will involve verifying that all employee-related contributions, such as social security and other statutory deductions, have been accurately calculated, recorded, and promptly remitted to the CNSS.

7. MoF Declarations:

The auditor will examine all relevant legal declarations that ANND is required to submit as civil company to the Ministry of Finance (including tax filings and declarations), and ensure that ANND fulfills its legal obligations, maintains financial transparency, and operates in accordance with all relevant regulatory requirements.

8. Evaluation of Financial Risks:

The audit will entail assessing financial risks that could impact ANND's financial stability. This includes Assessing potential risks related to currency fluctuations, dependency on external funding sources, and other financial factors.

9. Review of Governance and Legal Compliance:

The external auditor will assess the ANND's adherence to governance principles and legal requirements. This involves examining compliance with relevant laws, regulations, and ANND's policies and procedures.

10. Examination of Financial Procedures:

The auditor will review financial procedures, policies, and manuals to ensure they are up-to-date, relevant, and in line with best practices. Recommendations for enhancing financial procedures may be provided where necessary.

11. Confirmation of Bank Balances and Liabilities:

The auditor will seek confirmation from banks and financial institutions to verify the accuracy of bank balances and any outstanding liabilities.

Deliverables and Time Frame:

The institutional audit process is expected to commence by September 1st, 2023.

1. Comprehensive Institutional Audit Report: The selected external auditor shall deliver a comprehensive audit report covering all financial activities and transactions of ANND for the fiscal year 2023 covering the period January 1, 2023, to December 31, 2023. This report will provide an in-depth analysis of ANND financial statements, internal controls, compliance with regulatory requirements, and overall financial performance.

The selected auditor shall submit the institutional audit report to ANND no later than February 5th,2024.

2. Project-Specific Audit Report: In addition to the institutional audit, the auditor shall also conduct project-specific audits when required. These reports will focus on the financial transactions, expenses, and outcomes of individual projects undertaken by ANND and according to the donor requirements.

Project-specific audits will be scheduled based on the timelines and requirements of each individual projects.

3. Management Letter: Alongside the audit reports, the auditor shall provide a separate management letter for both the institutional audit and project-specific audits. The management letter will include constructive feedback, recommendations, and best practices to improve financial management, internal controls, and project performance. The management letters for both the institutional audit and project-specific audits should accompany the respective reports.

The final documents shall be written in English and Arabic and professionally proofread.

Logistical support:

The auditor is expected to maintain effective communication with ANND financial department team throughout the audit process, ensuring clarity on audit procedures, addressing any queries, and fostering a collaborative environment to facilitate a smooth and efficient audit.

Qualifications and Experience:

The selected external auditor should possess the following qualifications and experience:

1. Accreditation as a Certified Public Accountant (CPA) or an equivalent auditing certification.

2. Proven experience in conducting financial audits for non-profit organizations and civil companies.

3. Demonstrated knowledge of relevant accounting standards and best practices. This includes Generally Accepted Accounting Principles (GAAP) for non-profits and any other local or international accounting standards that may be applicable.

4. Familiarity with the regulatory environment for NGOs. This includes compliance with tax laws, reporting requirements, and any other regulations specific to the civil companies.

5. Knowledge of Grant Funding and Donor Reporting.

Proposal Submission:

Interested auditing firms or individuals are invited to submit their proposals, which should include the following:

1. A cover letter expressing interest in conducting the audit.

2. A detailed description of the firm's profile, including relevant experience and qualifications of the auditing team.

3. A proposed timeline for the audit process, including key milestones.

4. A breakdown of the audit fees and expenses.

5. Proof of a valid certification.

Proposal Deadline:

All proposals should be submitted electronically to [email protected] no later than 15th of august 2023. Late submissions will not be considered.

Selection Process:

The process of selecting the external auditor will involve three essential steps:

1. Evaluation of the submitted proposals based on qualifications, experience, and proposed methodology.

2. Shortlisting of potential candidates for interviews.

3. The final selection of the external auditor will be completed by August 30th, 2023. The successful auditor will be notified immediately after the selection process.

Confidentiality:

All information provided during the proposal submission and evaluation process will be treated with strict confidentiality.

Terms of Payment:

Payment will be made and received in USD via bank transfer.

Yearly fees:

5000-6000 US$

Contract Type: 

The selected auditor shall enter into a formal contractual agreement with ANND to finalize the terms and conditions of the audit engagement.