Terms of Reference for Project Audit

Ⅰ. Objectives of the Audit

The objective of the audit is to provide independent and objective assurance that the project funds were used for the purposes intended and in accordance with the project objectives and the Funding Contract.

Ⅱ. Project Summary

Project Location
Zavala District, Inhambane Province, Mozambique
Project Duration
1st April 2019 –   31st December 2019

Total Budget

(USD/Local Currency)
38,615,380KRW/33,837 USD/2,048,842MZN

Ⅲ. Scope of the Audit

1. The auditors shall express an independent professional opinion as to whether the financial statements present fairly, in all material respects, the financial position of the project in accordance with agreed-upon procedures;
2. The audit shall be carried out in accordance with the International Standards on Auditing (ISAs) as issued by the International Federation of Accountants (IFAC). The auditors in their duties shall comply with the duties imposed upon them by the Audits Professions Act and local legislation.

The agreed-upon procedures are below

• All ChildFund Korea funds have been used in accordance with the terms and conditions of the relevant Funding Contract and the Financial Guideline for ChildFund Korea Grant Project, with due attention to economy and efficiency, and only for the purposes for which the financing was provided;
• Goods and services financed have been procured in accordance with the ChildFund Mozambique procurement policy and all expenditures have been properly accounted for (supported by genuine accounting records such as vouchers, receipts, invoices, attendance list and beneficiary list etc.). Appropriate supporting documents, records and books of account relating to all project activities have been kept;
• Verify the personnel costs by examining employment agreements, staff payrolls and vouchers;
• Verify whether the administration costs are consistent with Project budget agreed by ChildFund Korea;
• Examine whether fund transfers and payments are supported by appropriate documents, in particular by examining the complete documentation of transactions from KRW into local or any other currency, and the foreign exchange gain and loss is counted in accordance with Financial Guideline of ChildFund Korea  Grants project;
• Verify comprehensive assessment of the adequacy and effectiveness of the accounting to monitor expenditures;
• Ineligible expenditures identified during the audit will be identified and reported on and should be taken into account in the Auditor’s opinion.

Ⅳ. Auditor independence

The Auditor must be completely impartial and independent from all aspects of management or financial interest or any other interest that may potentially affect or be seen to affect the auditor’s opinion prior and during the execution of the audit assignment.

Ⅴ. Auditor’s qualification

To apply the partner project audit, the Auditor requires to meet at least one of the following conditions:

• The audit firm is a member of a national accounting or auditing body or institution which in turn is member of the International Federation of Accountants (IFA);
• The audit firm is a member of a national accounting or auditing body or institution and commits itself to undertake this engagement in accordance with the IFAC standards and ethics;
• The audit firm is registered as a statutory audit firm in the public register of a public oversight authority in the country and holds good records in performing credible financial audits among international non‐governmental organizations in the project country.

Ⅵ. Auditors Report

The audit report shall contain the responsible Auditor’s signature (not just the audit firm) and title and shall be written in English. The auditor is supposed to report directly to the Country Director of ChildFund Mozambique and Child Fund Korea by 30/01/2020.

Ⅶ. General

• The responsibility for preparation of the annual financial statements lies with Head of Finance of ChildFund Mozambique;
• The audit shall be carried out in the ChildFund Mozambique office where the project’s accounting documents are kept;
• The Auditor should become familiar with the Project, and with the relevant policies of ChildFund International and Financial Guidelines of ChildFund Korea Grants project (including those relating to disbursements, procurement and financial management and reporting);
• The Auditor would be given access to all legal documents, correspondence, and any other information associated with the Project and deemed necessary by the Auditor;
• The Auditor will need to travel to Zavala District in order to also perform the other part of the audit, as financial documents can be viewed in Maputo.

Please submit your Financial proposal up to 09.12.2019 to [email protected] with cc to [email protected]