Hoffnungszeichen | Sign of Hope e.V.
Type of Contract
Type of Audit
Home-based with field mission travel to Jinka and Wolita Soddo, Ethiopia.
English and Amharic
December 15, 2023
January 15, 2023
From 01.01.2023 to 31.12.2023
Strengthening resiliency of Bena and Tsemay communities in southwestern Ethiopia to adapt to climate challenges and enhance their food security through climate adaptive agriculture and sustainable water management (SRBC)
Total Project Budget
Annual Project Budget
Hoffnungszeichen | Sign of Hope e.V. (SoH) is announcing an open tender procedure for external independent financial audit services in Ethiopia.
Background and Organisational Setting
SoH is a Christian motivated organization for Human Rights, Humanitarian Assistance and Development Cooperation. Based in Constance, Germany, SoH is dedicated to helping those in distress and exploited people worldwide.
An audit is commissioned under the German Federal Ministry of Economic Cooperation and Development (BMZ) funding guidelines for development projects run by private German executing agencies.
SoH will be the private German executing agency and the contracting party, with Ethiopian Catholic Church – Social and Development Commission Soddo Branch Office (ECC-SDCO/s) being the local implementing agency.
Ethiopian Catholic Church – Social and Development Commission Soddo Branch Office (ECC-SDCO/s) is a local implement partner and Sign of Hope, the private German executing agency and the contracting party, are currently carrying out the project “Strengthening resiliency of Bane and Tsemay communities in southwestern Ethiopia to adapt to climate challenges and enhance their food security through climate adaptive agriculture and sustainable water management (SRBC)” since October 2021.
The project will contribute to strengthening climate change adaptive capacity and resilience building of agro-pastoralists and pastoralist communities and ecosystem regeneration by Bena Tsemay Woreda. It will do by supporting 285HHs to utilize climate change adaptation approaches and strategies, apply appropriate household farming methods and make efficient use of the rehabilitated rangeland to reduce the negative effects of climate change. Through the results areas and activities, 285 households (on average 5 people per household) with 1,425 people (709 male and 716 female) who are in IPC 4 (emergency) food insecurity will be reached. Additionally, 4,480 households (22,400 people) will be reached by this project indirectly.
The purpose of the in-depth audit is to provide SoH with a sound basis for its accountability, transparency and accuracy in the financial disclosure towards the funding agency BMZ. The tasks of this recruitment relate to:
- An annual audit, with a detailed examination of all the supporting documents for the period of 01.01.2023 – 31.12.2023;
This in-depth audit will verify the compliance with standards of the funding agency BMZ, SoH, national regulations and the international accounting standards (ISA).
The auditor will review the project’s financial documents, receipts lists, records of transactions, all vouchers and receipts disbursed, and relevant project documents in order to come up with a professional, independent opinion on the financial accounting of the project Strengthening resiliency of Bane and Tsemay communities in southwestern Ethiopia to adapt to climate challenges and enhance their food security through climate adaptive agriculture and sustainable water management (SRBC) for all funds received and expended by Ethiopian Catholic Church – Social and Development Commission Soddo Branch Office (ECC-SDCO/s)) from 01.01.2023 to 31.12.2023.
Additionally, the audit shall give recommendations on strengths, weaknesses, and required improvement in the project-related financial and human resources management systems of Ethiopian Catholic Church – Social and Development Commission Soddo Branch Office (ECC-SDCO/s).
The audit will support the project quality assurance measures implemented by SoH and contribute to the decision-making process with regard to the project management and monitoring of finances by SoH and Ethiopian Catholic Church – Social and Development Commission Soddo Branch Office (ECC-SDCO/s).
The auditor is expected to produce an audit report, an audit certificate and a management letter, which will comprise the following:
- Presentation of the scope and mandate of the audit, as well as the list of documents that formed the evidence for the audit,
- An opinion whether financial statements (statement of accounts broken down for each year being audited) are issued in accordance with the financial reporting framework of the project, BMZ requirements and an internationally recognized accounting standard,
- Recommendations on identified shortcomings, and, if applicable, comments on the follow-up of audit observations and recommendations from previous years.
- A checked, signed and stamped list of all project costs receipts, sorted by BMZ budget lines (list is provided by the local implementing partner).
Audit documents can be issued in English.
Scope of the Audit
The audit should focus on the following:
- The correctness and completeness of the accounting records,
- The financial report, showing all project related income and expenditure structured by budget lines,
- Deviations of expenditure by budget lines. The expenditure, which exceeds or falls below the budget appropriations by more than 30 %, shall be explained separately, if the approval of the BMZ has not previously been obtained,
- That receipts and relevant supporting documents are available for all project related income and expenditures,
- The management of the funds made available, which includes the transfer of project funds, all interest earned from the project funds during the reporting period and further income generated by the project,
- Reviewing the appropriate use of funds according to the project objectives,
- Evaluation of the efficiency and cost-effectiveness of the usage of funds,
- Budget adherence through the comparison between budgeted and actual costs in the currency in which the expenditure was incurred. The audit report will not convert the examined amounts into the Euro amounts,
- Reviewing if personnel costs and social security contributions conform to the regulations in the project country and are locally comparable,
- The economical use of the project equipment and assets,
- The inventory and the use of capital items, their whereabouts and their purposive usage,
- Compliance with the legal framework of the project (project agreements and annexes, contracts, etc.) and the donor requirements,
- Compliance with the policies of the local implementing partner regarding procurement, financial administration, human resources management and travel.
Procedures and Communication
The auditor will be given access to all necessary documents in the project offices through the local implementing partner Ethiopian Catholic Church – Social and Development Commission Soddo Branch Office (ECC-SDCO/s) as well as relevant donor documents through SoH.
The auditor will be responsible to set up a schedule in agreement with the local implementing partner Ethiopian Catholic Church – Social and Development Commission Soddo Branch Office (ECC-SDCO/s). Any expenses for field trips, postal and translation services and other expenses shall be included in the auditor’s proposed budget. Ethiopian Catholic Church – Social and Development Commission Soddo Branch Office (ECC-SDCO/s) will support the auditor with logistics and arrangements, however, all payments of the contract will be made directly by SoH.
Qualifications and Experience
- Necessary qualification to serve as a recognized independent auditing authority,
- Minimum of five (5) years of experience conducting external independent audits of projects funded by international institutional donors in Ethiopia.
- Experience in conducting audits for BMZ-funded projects is beneficial.
How to apply
Please submit the following documents as PDF files with the subject line “Audit in Jinka, Southern Region of Ethiopia” to email@example.com no later than December 15, 2023 23:59 CEST/CET/EAT:
- Technical Proposal (as per Terms of Reference above), including approach and methodology to be used,
- A financial proposal (EUR),
- A qualification certificate of a recognized independent auditing authority as confirmed by a relevant institution in the project country (for example, a chamber of commerce, national association of auditors or another relevant organisation),
- A reference list of three previous customers.
Companies as well as independent auditors are invited for this tender. Female and differently abled candidates are strongly encouraged to apply.
Please note that due to a large number of applications we may limit establishing contact to shortlisted applicants.
Bids received after deadline will not be considered. If offers are incomplete, bidders may be able to hand in missing documents within a deadline upon request by SoH.
The selection of the auditor will be conducted jointly by Ethiopian Catholic Church – Social and Development Commission Soddo Branch Office (ECC-SDCO/s) and SoH.
Interviews with shortlisted candidates will be held online in the week of December 20th and/or 21st ,2023.
The audit agreement will be set up by SoH and Ethiopian Catholic Church – Social and Development Commission Soddo Branch Office (ECC-SDCO/s). Audit agreements set up by auditors won’t be accepted.
Criteria and weighting for the evaluation of the submitted proposals:
- Essential and desirable competencies, proposed methodology: 40 %
- Financial proposal (fee): 30 %
- Performance during interview: 20 %
- Minimum amount of years of relevant experience: 5 %
- Language skills: 5 %