Call for External Audit Services 2021

21 Jan/ 2022

Location: Belgrade, Serbia

Posting Date: 21 January 2022

Closing Date for Applications: 4 February 2020 COB

In a bid to ensure sustainable achievement of our mission, Roma Education Foundation (REF) is seeking the provision of external audit services for the period from 1 January 2021 – 31 December 2021 by external independent and qualified auditor team in accordance with international audit standards.

Chosen candidate/company will have to conduct two separate reports.

Assurance report 1: General Roma Education Foundation local statutory audit financial statements 2021 (international audit standards, local legislations and internal control).

Assurance report 2: Project “Improved Education and Integration Opportunities for Roma in Serbia (Phase 2)” based on ISAE 3000 as defined by the KfW Development Bank (hereinafter KfW 2). TOR Assurance Engagement Funds disbursed under the “Disposition Fund Procedure”.

Organizational Background:

The Roma Education Foundation (REF) is an international foundation established in 2005 and dedicated to closing the gap in educational outcomes between Roma and non-Roma. With an active and growing network of representative offices across Central, Eastern, Southeastern Europe and Turkey, REF provides grants and scholarships to entities and individuals who share its belief in quality, inclusive education and desegregated schools and classrooms.

VISION

We aspire to live in a world in which the right to education is regarded as undeniable for every Roma child and youth, and educational opportunities and practices are equitable for all.

MISSION

REF’s mission and ultimate goal is to contribute to closing the gap in educational outcomes between Roma and non-Roma. In order to achieve this, the organization supports policies and programs that ensure quality education for Roma, including the desegregation of education systems.

VALUES

In order to develop and deliver our education programs that provide quality, inclusive education for Roma children and youth, we believe in five core values that join us together and that mirror the work, actions and ideals of our organization and its culture. The values we believe are Tenacity, Integrity, Inquisitiveness, Accountability and Justice.

Project Background

The project “Improved Education and Integration Opportunities for Roma in Serbia (Phase 2)” commenced in January 2019. The project seeks to continue, and intensify the efforts aimed at improving education and employment opportunities of young Roma in Serbia, set in the first phase of the project that has been implemented from 2016 until 2019.

The overall objective of the project “Improved Education and Integration Opportunities for Roma in Serbia (Phase 2)” is to support the social inclusion of Roma in Serbia by increasing the completion rate of secondary education Roma students and facilitating their transition into the labor market by increasing their professional competencies through a series of activities implemented within three project components: education, employment, and reintegration of Roma returnees.

Activities covered by the project include, but are not limited to, the provision of mentoring support to Roma secondary education students, providing support to Roma individuals in retraining, vocational training and attending in-demand skills and language courses, providing paid internships for successful Roma graduates, and facilitating employment through cooperation agreements with employers from the private, public, non-governmental and international sectors. Moreover, the project aims to provide specific support to young Roma returnees and their families through a grant scheme implemented in cooperation with local partners throughout Serbia.

The Project is supported by the German Financial Cooperation Program implemented by the German Development Bank KfW on behalf of the Government of the Republic of Germany – Ministry of Economic Cooperation and Development and implemented in Serbia.

Assurance report 1: General Roma Education Foundation local statutory audit financial statements 2021 (international audit standards, local legislations and internal control)

Objective of the Audit:

  1. The objective of the audit of REF’s financial statements is to enable the auditors to express an independent professional opinion on the financial position of REF and to ensure that the funds utilized to REF’s activities have been used for their intended purposes.
  2. The books of accounts of REF provide the basis for preparation of the REF’s Financial Statements. Proper books of accounts as required by law have been maintained by REF and also maintain adequate internal controls and supporting documentation for the transactions.

Scope of the Audit:

  1. The audit will be carried out in accordance with the International Auditing Standards and will include tests and verification procedures as the auditors deem necessary.
  2. Verify all funds have been used in accordance with the established rules and regulations of REF and only for the purposes for which the funds were provided.
  3. Goods, works and services financed have been procured in accordance with the REF established rules and procedures.
  4. Appropriate supporting documents, records and books of accounts relating to all activities have been kept. Clear linkages should exist between the books of accounts and the financial statements presented to.
  5. The financial statements have been prepared by REF management in accordance with applicable accounting standards and give a true and fair view of the financial position of REF and of its receipts and expenditures for the period ended on that date.
  6. Comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions.
  7. Express an opinion as to reasonableness of the financial statements in all material respects.
  8. Include in their reports opinion on compliance with procedures designed to provide reasonable assurance of detecting misstatements due to errors or fraud that are material in the financial statements.
  9. Auditor should check that the Annual report complies with the requirements of the law.
  10. Conduct entry and exit meeting with the Executive Director of REF.
  11. In addition to the audit report, the auditors will prepare a Management Letter on the following:
    1. Give comments and observations on the accounting records, procedures, systems and controls that were examined during the course of the audit.
    2. Identify specific deficiencies and areas of weakness in systems and controls and make recommendations for improvement.
    3. Communicate matters that have come to their attention during the audit which might have a significant impact on the sustainability of the organization.
    4. Bring to the Executive Director’s attention any other matters that the auditors consider pertinent.

Audit Duration: 

The audit work shall be completed latest by 15 March 2022, or within three weeks from the date when both contracting parties sign engagement letter.

Deliverables:

  1. The Auditors on completion of the audit work will submit 4 (four) original copies of the Audit Report appended to the Financial Statements along with the reports to the attention of the Executive Director.
  2. Management letter in accordance with the scope of work described here before.

Assurance report 2: Project “Improved Education and Integration Opportunities for Roma in Serbia (Phase 2)” based on ISAE 3000 as defined by KfW Development Bank (hereinafter KfW 2). TOR Assurance Engagement Funds disbursed under the “Disposition Fund Procedure”

Terms of Reference

Assurance Engagement Funds disbursed under the “Disposition Fund Procedure”

The Disposition Fund(s)

*Due to the sensitive BA information will be shared in full with choosen candidate.

Objective:

  1. The objective of the assurance engagement (“subject matter”) is to permit the auditor/practitioner
  • to express an opinion on the Project financial reports (“Financial Reports”), statement of expenditures and withdrawal applications as far as the Disposition Fund Procedure is concerned and
  • to assure that the proceeds of the KfW’s loan/grant have been utilized according to the contractual provisions.

2. The preparation of the Financial Reports and the statements of expenditures is the responsibility of [Name of Authorized/Authorized Third Party, Project Executing Agency and/or other Project Implementation Unit(s) involved] (the “Entity”).

3. The financial information has to be established in accordance with consistently applied accounting standards and the underlying Loan/Financing/Grant Agreement(s) and the corresponding Separate Agreement (or other Agreements if applicable).

4. The assurance engagement will be effected annually and the signed original(s) of the respective assurance engagement report(s) (“Report”) should be presented not later than 3 months after the end of the period covered.

5. The assurance engagement shall cover in one single Report all accounts opened in connection with this Disposition Fund as mentioned under section 1 above.

6. During the present Reporting Period from … to … total disbursements amounting to … [currency + amount] were/will presumably be transferred to the Disposition Fund.

Scope:

7. This assignment is a reasonable assurance engagement in accordance with International Standards on Assurance Engagements as published by the International Auditing and Assurance Standards Board of the International Federation of Accountants, with special reference to ISAE 3000 revised and will include such procedures as the auditor/practitioner considers necessary (including on-site visits).

8. In conducting the assurance engagement, the auditor/practitioner will express his conclusion on the following items (“criteria”) and other matters that the auditor/practitioner considers pertinent:

(a) Payments out of the Disposition Fund have been made in accordance with the conditions of the Loan/Financing/Grant Agreement(s) and the corresponding Separate Agreement (or other Agreements if applicable). Where ineligible expenditures are identified, these should be noted separately.

(b) The Disposition Fund(s) has (have) been maintained in accordance with the provisions of the Loan/Financing/Grant Agreement and Separate Agreement (or other Agreements if applicable). This also comprises interest earned from balances.

(c) The statements of expenditures can be relied upon to support the related withdrawal applications. Clear linkage should exist between the statements of expenditures, the withdrawal applications presented to KfW and accounting records.

(d) Expenditures are supported by relevant and reliable evidence.

(e) Goods and services financed have been procured in accordance with the Loan/Financing/Grant Agreement and Separate Agreement (or other Agreements if applicable)..

(f) There are no specific deficiencies and areas of weakness in the internal systems and controls of the Entity.

9. The auditor’s/practitioner’s conclusion will explicitly state whether the financial reports of the Entity, the statements of expenditures and the withdrawal applications presented to KfW for the Reporting Period are prepared, in all material respects, in accordance with the criteria mentioned above (section 9 a-f).

Reports

10. The Report(s) shall

(a) be issued by the auditor/practitioner in the English language.

(b) provide a schedule showing receipts and disbursements during the Reporting Period. Receipts from KfW-funds, from other donors – if any -, credit interest or other receipts should be shown separately.

(c) show separately for every account under this Disposition Fund the account balance at the beginning and the end of the Reporting Period.

(d) include at a minimum the following elements:

  • the subject matter
  • applied criteria to evaluate the subject matter
  • identification of the level of assurance obtained
  • description of significant limitations
  • informative summary of the work performed (extent, locations …)
  • auditor’s/practitioner’s conclusion expressed as required under the reasonable assurance engagement according to ISAE 3000 revised.

(e) comprise the auditor’s/practitioner’s statement on the seriousness of observations noted including the consequences of specific deficiencies, if any.

(f) state whether a separate Statement on Internal Control has been issued or not.

(g) contain these Terms of Reference as Annex.

11. If considered pertinent, the auditor/practitioner shall prepare a “Statement on Internal Control” in which he will;

(a) give comments and observations on the accounting records systems and controls examined during the course of the engagement (with special focus on the account(s) under this disposition fund).

(b) identify specific deficiencies and areas of weakness in systems and controls that have come to the auditor’s/practitioner’s attention, especially with regard to withdrawal, procurement, storage and payment transactions, and make recommendations for their improvement;

(c) report on actions taken by the management to make improvements with respect to deficiencies and areas of weakness reported in the past;

(d) bring to the management’s attention any other matters that the auditor/practitioner considers pertinent.

Liability

12. The auditor/practitioner will provide KfW with evidence of professional liability insurance. The amount of the insurance shall be based on local/regional standards for audit companies.

Review

13. The auditor/practitioner shall keep documentation supporting his conclusion until at least five years after completion of the assurance engagement and shall have them accessible at all times for review by KfW or any third party commissioned by KfW.

Audit Duration:

The audit work shall be completed within three weeks from the date when both contracting parties sign engagement letter.

Fees:

The audit fees will be agreed through a competitive bidding process. 

Selection criteria, documentation, and timeline for submitting offers 

The following selection criteria will be applied to the tenderers.

1.       Economic and financial capacity of the Tenderer

The reference period which will be considered will be the last three years for which accounts have been closed.

The average annual turnover of the Tenderer in the last three years must exceed the annualized maximum budget of the contract.

2.       Professional capacity of the Tenderer

The reference period which will be taken into account will be the last three years from submission deadline.

The Tenderer should have at least 3 (three) staff currently working for the Tenderer in areas related to this contract.

3. Technical capacity of Tenderer

The reference period which will be taken into account will be the last three years from submission deadline.

The Tenderer has provided services under at least 2 (two) contracts, each with a budget of at least that of this contract in field of Audit which were implemented at any moment during the following period:

01 April 2016 – 01 April 2021

In addition to the Offer, the Tenderer is required to provide the following supporting documentation:

  • Copy of legal registration;
  • Official annual financial reports and/or bank confirmation of turnover of the company for 2018, 2019 and 2020;
  •  Proof of technical capacity – at least three staff currently work in areas related to this contract;
  • Proof for delivered services under at least 2 contracts with a budget of at least 15000 EUR in the field of auditing which were implemented during the period of 5 years from the submission deadline of this contract.

Deadline:

Interested applicants who meet the requirements set out in the Call for Applications are invited to apply by sending electronically their offer as well as their required supporting documents (both in English) to jbojic@romaeducationfund.org no later than 4th February 2022 with the subject line: Call for External Audit Services 2021.

All received offers will be subject to a thorough administrative check. Applications submitted after the specified deadline, incomplete applications (missing supporting documents), as well as applications submitted in languages other than English will not be considered.

Only offers whose applications meet the above-listed administrative requirements and the criteria set out in the Call will be considered for the next step in the selection process.

All Donors