TERMS OF REFFERENCE FOR THE AUDIT OF
The Regional Environmental Centre for the Caucasus (REC Caucasus)
Starting Date: 01August 2018
Duration: 01/08/2018 – 31/08/2018
Duty Station: Georgia, Tbilisi
The Regional Environmental Centre for the Caucasus (REC Caucasus) is an independent, not-for-profit organisation, established in 1999 within the framework of the “Environment for Europe Process” by the governments of Azerbaijan, Armenia, Georgia and the European Union. RECC’s main aim is to assist in solving environmental problems as well as in developing the civil society in the countries of the South Caucasus. To achieve its mission REC Caucasus facilitates cooperation among environmental stakeholders by supporting exchange of information, offering advice and technical expertise, and promoting public participation in environmental decision-making.
The RECC has a proven success in supporting the harmonization to EU policies on water, waste, the urban environment, biodiversity and sustainable transport in Armenia, Azerbaijan and Georgia. The work of REC Caucasus has been supported by a broad range of donors, inter alia: European Commission, Government of Germany (BMZ, BMU), Government of the Netherlands, Government of Norway, Global Environment Facility (GEF), Eurasian Partnership Foundation, Organization for Security and Co-operation in Europe (OSCE), United States Agency for International Development (USAID), the Principality of Liechtenstein, and many more.
Headquarter of REC Caucasus is located in Tbilisi, Georgia. The organisation has branch offices in Armenia and Azerbaijan.
The turnover of RECC at fiscal year 2017 was approximately EUR580,000.00
- OBJECTIVE OF THE PROJECT AUDIT
The objective of the audit of the RECC Financial Statements (RFSs) is to enable the auditor to express a professional and independent opinion(s) on the financial position of the REC at fiscal year of 2017, and on funds received and expenditures incurred for the relevant accounting period.
The books of accounts for implemented projects by RECC provide the basis for preparation of the RFSs and, are established to reflect the financial transactions in respect of the RECC.
The auditor is responsible for forming and expressing opinions on the financial statements. The auditor would carry out the audit of the projects in accordance with the International Standards on Auditing (ISA), as promulgated by the International Federation of Accountants (IFAC).
- SCOPE OF THE AUDIT
As stated above, the audit of the project will be carried out in accordance with International Standards on Auditing (ISA) promulgated by the International Federation of Accountants (IFAC), and will include such tests and auditing procedures as the auditor will consider necessary under the circumstances.
Special attention should be paid by the auditor as to whether the:
a) Donor financing has been used in accordance with the conditions of the relevant financing agreement, with due attention to economy and efficiency, and only for the purposes for which the financing was provided;
b) Goods, works and services financed have been procured in accordance with the relevant financing agreements;
c) Designated Accounts for the projects have been maintained in accordance with the provisions of the relevant financing agreements;
d) Georgian laws and regulations have been complied with, and that the financial and accounting procedures approved for the RECC (e.g. operational manual, financial procedures manual, etc.) were followed and used;
e) Assets procured from projects funds exist and there is verifiable ownership by the RECC or beneficiaries in line with the financing agreement.
- AUDIT REPORT
The financial statements, including the audit report, management letter and management response should be received by RECC not later than 31August, 2018.
In addition to the audit report, the auditor will prepare a management letter, 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) Identify specific deficiencies or areas of weakness in systems and cntrols, and make recommendations for their improvement;
(c) Report on the degree of compliance of each of the financial covenants in the financing agreement and give comments, if any, on internal and external matters affecting such compliance;
The reporting currency is EURO and the reports should be submitted in English. The Audit will include a comment on exchange rate principle applied by the National Executing Agency.
- AVAILABLE INFORMATION
The auditor will have access to all legal documents, correspondences, and any other information associated with the RECC and deemed necessary by the auditor. Available information should include copies of the relevant: project appraisal document; financing agreement; financial management assessment reports; supervision mission reports and implementation status reports.
- QUALIFICATIONS, EXPERIENCE AND TEAM COMPOSITION
The Auditor should employ staff with appropriate professional qualifications and suitable experience with requested standards, in particular International Standards on Auditing and with experience in financial information audit of entities comparable in size and complexity to the Entity.
The audit company should have a qualified expert /experts with the following:
– The consultant must have at least completed CPA or ACCA.
– Must have at least 5 years of professional experience working with an audit firm.
– Must have successfully performed similar services.
– Fluent in English.