DanChurchAid supports the poorest in the world in their struggle for a dignified life and helps people in need. DanChurchAid is based in Denmark, has 20 Country Offices and is a member of the ACT Alliance together with 134 churches and faith-based organizations.
DCA is looking to establish a multiyear framework agreement for the annual audits of DCA held expenses funded by the US Government. For the year 2023 DanChurchAid implemented 13 projects financed by US Government agencies (USAID, BPRM, DRL, WRA) across 8 countries in Africa, Asia and the Middle East (DR Congo, South Sudan, Lebanon, Cambodia, Syria, Libya, Mali and Ethiopia). The total budgeted amount for the projects in question totals USD 50,581,727 across the respective contract periods, whereas the actual incurred expenditure for 2023 amounts to DKK 158,175,929 [of which DKK 31,534,313 was implemented by local partners via sub-grant agreements].
The objective of the contract is to conduct a financial audit of the US government resources managed by the recipient/subrecipient in accordance with:
● USAID Financial Audit Guide for Foreign Organizations (hereafter Guide);
● U.S. Generally Accepted Government Auditing Standards (GAGAS or the Yellow Book);
issued by the Comptroller. General of the United States Government Accountability Office; and, as applicable;
● International Standards on Auditing (ISA) issued by the International Auditing and Assurance
Standards Board (IAASB), in conjunction with GAGAS; and
● The International Standards of Supreme Audit Institutions (ISSAIs) issued by the International
Organization of Supreme Audit Institutions (INTOSAI) for public-sector audits, in conjunction
with GAGAS.
The financial audit must include a specific audit of all the recipient’s USAID-funded programs. The schedule of expenditures of USAID awards is the financial schedule to be audited in case of no indirect costs or de minimis 10% rate. When the recipient has a NICRA then the organization’s general purpose financial statement must be audited in addition to the SEFA. All amounts in the financial audit report must be stated in U.S. dollars. The auditors should indicate the exchange rate(s) used in the notes to the schedule of expenditures of USAID awards.
Specific Objectives of the Audit
Auditors must design steps and procedures in accordance with GAGAS. A financial audit of the funds provided by USAID must be performed in accordance with GAGAS*,* or other approved standards where applicable, and accordingly includes such tests of the accounting records as deemed necessary under the circumstances. The specific objectives of the audit of the USAID funds are to:
- Express an opinion on whether the schedule of expenditures of USAID awards presents fairly in all material respects in relation to the recipient’s financial statements as a whole, in accordance with the terms of the agreements and generally accepted accounting principles.
- Evaluate and obtain a sufficient understanding of the recipient’s internal controls related to the USAID-funded programs, assess control risk, and identify reportable conditions, including material weaknesses. This evaluation must include the internal controls related to required cost-sharing contributions.
- Perform tests to determine whether the recipient complied, in all material respects, with agreement terms (including cost-sharing/matching contributions, if applicable) and applicable laws and regulations related to USAID-funded programs. All material instances of noncompliance and all illegal acts that have occurred or are likely to have occurred must be identified. Such tests must include the compliance requirements related to any required cost-sharing contributions.
In addition, If applicable:
- Determine if the recipient has taken adequate corrective action on prior audit report recommendations.
- Review cost-sharing/matching contributions to determine whether cost sharing/matching contributions were provided and accounted for by the recipient in accordance with the terms of the agreements. The auditors will review the cost-sharing/matching table to determine if the computation is fairly presented in accordance with the basis of accounting used by the recipient to prepare the schedule. The auditors should question all cost-sharing/matching contributions that are either ineligible or unsupported costs.
- Perform an audit of the indirect cost rate(s) if the recipient has been authorized to charge indirect costs to USAID using provisional rates. If so, the schedule of expenditures of USAID awards should be reconciled to the USAID funds included in the general-purpose financial statements by a note to the schedule of expenditures of USAID awards. If the recipient does not have a USAID authorized indirect cost rate, this fact must be disclosed in the final audit report.
Qualifications and Experience
Essential:
- Proven experience and knowledge of conducting US annual audits and the reporting requirements according to US donors’ rules and regulations.
- Candidate’s experience in the selected areas of operation.
- Experience auditing international non-governmental organisation receiving USG funds.
- Fluency in written and spoken English.