Contract for External Audit of Grants of the Madrid City Council At SOS Children’s Villages International

one. Project Description

SOS Children’s Villages in El Salvador and SOS Children’s Villages in Spain implement the project called “ Starting towards success ” with the sponsorship of the Madrid City Council which aims to: Contribute to the empowerment of young people for their economic development, with an emphasis on women, to overcome the crisis and recover the impacts caused by the COVID-19 pandemic in the departments of Sonsonate, San Miguel and La Unión. For this 3 strategies will be used:

• Empower on issues of human rights, gender equity and equality to promote economic and social inclusion,

• Improve citizen participation and,

• Strengthen economic autonomy and self-determination.

As part of the requirements of the project financing partner, an external audit must be carried out, that is why the ASSOCIATION ALDEAS INFANTILES SOS DE EL SALVADOR wishes to contract the services of an auditing firm, with the aim of reviewing and guaranteeing compliance with the procedures, local regulations and the achievement of the objectives set forth in the award by the Madrid City Council, under the modality of Fair Account with Auditor’s Report.

2. Object of the audit

2.1. Preparation of a report of the complete supporting account for the Madrid City Council grant

General objective: The objective of the report is to verify and rule by issuing a final report ( opinion ) from an external and independent auditor, certify the operations carried out and the investment of the funds allocated according to the subsidy agreement established for the project.

Specific objective: Review of the documents or cost supports of the project and the preparation of the final report of the supporting account for the Spanish public subsidy, to carry out the verification of the requirements established in the applicable regulations.

The auditor must verify and reflect in the report the result, regarding:

• The technical report, with special attention to the results obtained and their sources of verification.
• The documentation that integrates the complete supporting account: the existence of the documentation that must compose the complete supporting account will be verified*.
• The classified list of expenses: it will be verified that it reaches the total expense that has been incurred, whatever the origin of its financing
• Regarding individual supporting documents, pursuant to the provisions of article 37.4. a ) of Royal Decree 794/2010, of June 16, which regulates subsidies and aid in the field of international cooperation, a sampling check will be carried out, in accordance with the usual audit practices in this matter. Sampling may reach supporting documents financed by other funders, especially if it is other Administrations and their certificate of conformity is not available.
• For each type of expense: compliance with the requirements and existence of the documentation that for each type of expense is applicable will be verified. The verification of the documentation – different from the individual supporting documents – will be exhaustive and that of the individual supporting documents can be done by sampling.

3. Place of realization

The review and verification of documents by the auditing company will be carried out at the offices of SOS Children’s Villages in El Salvador ( local counterpart ) in San Salvador ( El Salvador ).

4. Commitments and deliverables

The team selected for this consultancy must present the following products:

• Output 1: Monitoring and compliance report ( Year 1 )

A Compliance Letter will be required for a follow-up report:

Period to audit: January 16, 2023 to December 31, 2023.

Ayto grant amount. Madrid executed in the period: 214,465.60 €, this amount includes reviewing the expenses financed by the Madrid City Council in both Spain and El Salvador.

Other funds executed in the period: 20,000 € ( Sagardoy )

• Product 2: Final Report of Justifying Account according to ANNEX 1 ( Total Project )

The existence of an external audit report allows the entity to present a type of reduced economic justification account. To do this, you must hire an audit entity from the executing country, El Salvador, to carry out an exhaustive review of the complete supporting account of the grant corresponding to the first year of implementation and of the entire project, and to issue a report in this regard, as established by the implementing regulations on audits of public subsidies in Spain.

5. Consulting Team Profile

5.1. Consultant Company Profile

• It should be an Audit firm based in El Salvador and with experience of at least five years in the development of fund audits based on generally accepted Audit Standards ( NAGA ) o International Auditing Standards ( NIAs ).
• Have experience of at least two project audit processes executed by international development cooperation organizations, preferably in the audit of Spanish cooperation projects such as the Madrid City Council and / or the Spanish Agency for Development Cooperation ( AECID ).

5.2. Professional Profile of the Team Coordinator

• You must have professional experience in auditing for five years or more and continuing education for the past 5 years.
• With field work experience ( coordinating auditors and assistants ) and with professional audit experience of at least 5 years or more.