TERMS OF REFERENCE: ANNUAL AUDIT OF THE FINANCIAL STATEMENTS WITHIN THE ORGANISATION

Tuesday 12 July 2022

TERMS OF REFERENCE

ANNUAL AUDIT OF THE FINANCIAL STATEMENTS WITHIN THE ORGANISATION

 “Save the Children Kosova/o (SCiK)”

Duration of Assignment:
First draft report to be submitted by March 1st, 2023/2024 (respectively)

1.                   BACKGROUND

Save the Children has worked in Kosova/o since 1997, with a main office in Prishtina. The Save the Children Kosova/o program approach is based on direct interventions and the establishment of good practices, capacity building of civil society and local duty bearers to respond to the needs of children. SCiK also advocates for legislation and policies that will incorporate inclusive practices and have appropriate financial mechanisms to support systemic responses and therefore achieve long lasting positive changes for all children. The success at SCiK derives from its strong working relationships with ministries, institutions and the community in general, both at local and national level. Children themselves are active participants in the planning, implementation, monitoring and evaluation of the SCIK work.  

Information about Organization:

·         SCIK Annual Budget range:

  • 3.9M USD (approx.3.6M EUR) for year 2022
  • 3M USD (approx.: 3.6M EUR) for year 2023

 Registration Certificate Number: 5200573-6

Public Beneficiary Number: 6001338-1

VAT Number: n/a

Fiscal Number 602617823

2.                   PURPOSE

The purpose of this consultancy is to perform the audit of Annual Financial Statements.

Audit of Annual Financial Statements for the period, 1st January to 31st December 2022/2023 respectively as required by the Republic of Kosovo Government pursuant to Law No. 06/L- 043- On Freedom of Association in Non-Governmental Organizations, Article 38, “paragraph 8” The financial statements should be audited by an independent legal auditor in the Republic of Kosovo”.

3.                   OBJECTIVES AND SCOPES  

The audit conducted should be in accordance with International Standards on Auditing (ISAs).

The main objectives are to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, Misstatements should arise from fraud or error and are considered material if, individually or in the aggregate they could reasonably be expected to influence of decision making.

Auditor’s Responsibilities for the Audit of the Financial Statement 2022/2023:

-          Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or errors, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for the opinion.

-          Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.

-          Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

 

4.                   AUDIT DELIVERABLES

ANNUAL AUDIT OF THE FINANCIAL STATEMENTS WITHIN THE ORGANISATION

The qualified audit company shall issue an Audit Report in respect of reviewing the Financial Statements. The audit certificate shall contain the following:

a)       An Opinion to be issued that the Audit has been performed in accordance with International Standards on Auditing (ISAs).

b)      Financial statements have been prepared in accordance with the requirements of the Law No. 06/L- 043

c)       The auditor shall issue a management letter/audit memorandum containing the following:

·         the content and scope of the audit

·         significant observations on the activity covered by the report

The auditor’s report shall include also management letter. The organization might issue a written confirmation concerning representations made in connection with the Audit.

5.                   DATA, REQUIREMENTS, PERSONNEL AND FACILITIES TO BE PROVIDED

The audit company will be given access to all documents, including the relevant Agreements that SCiK signed, reports and any other information associated with the Financial Statements and deemed necessary by the auditor. The SCiK staff will also provide full support to the auditors in terms of background briefing, orientation, guidance and support to gain access to the necessary premises.

-          Data

·         The basic language of all documentation is English and Albanian.

·         All documents will be returned at the end of the Audit. Data of a confidential nature will be handled with all necessary prudence and will be disclosed only to duly authorised persons.

·         The audit shall be carried out by an external, independent and qualified auditor in accordance with international standards mentioned above and that is legally registered and licensed in Kosovo to perform such audit.

·         An auditing company which applies to carry out the audit will be immediately subject to disqualification if any potential conflict of interest towards or in relation to Save the Children is identified.

·         The Audit Report must be submitted at the end of the assignment and Management Letter in English and Albanian.

-          Personnel

·         The audit shall be performed under the overall responsibility of an Audit Project Manager and the operational responsibility of a Team Leader (Senior Auditor, at least 5 years’ professional audit experience), supported by the team considered convenient by the Contractor (with at least 2 years of professional audit experience).

·         The qualifications, the skills and the general and specific professional experience of the Project Manager and the Team of Auditors shall be considered during the technical evaluation of the offer.  No intern staff should be involved in the Team of Auditors in this specific action.

-          Office accommodation

·         The office space where the action of the assigned auditing experts should be ensured by a selected auditing company and it should not be responsibility of Save the Children Kosovo.  However, based on the agreement, an office space within the Save the Children Kosovo premises can be used only if clearly justified and priory accepted.

·         The auditors’ company shall ensure that auditors are adequately supported and equipped.  In particular, it shall ensure that there is sufficient administrative, secretarial and interpreting provision to enable auditors to concentrate on their primary responsibilities. 

-          Equipment

·         No equipment is to be purchased or provided to a selected Auditing Company on behalf of the Save the Children Kosovo as part of this service contract.

6. Timeframe

The expected timeframe will be for a period of 24 months,

7. Performance indicators for evaluation of Suppliers (BIDS)

Performance indicators for evaluation of bids will be based on the following criteria:

A)      ESSENTIAL CRITERIA: All bidders must meet the essential criteria to be considered for further evaluation

Criteria

Yes/No

Business certification registration in country; Be listed on ‘List of legal auditors' published by Ministry of Finance, Kosovo with the active license. 

 

Bidders’ prices offered are fixed under specification of requirement for the duration of the Agreement  free of V.A.T.

 

B)      CAPABILITY CRITERIA

Criteria

Maximum points

Completion time – First draft of reports to be submitted by March 1st, 2023/2024 (respectively)

20

Compliance with the technical specification, Objectives and scopes, deliverables.

20

Total points

40

C)      Sustainability  CRITERIA

Criteria

Maximum points

The bidder demonstrates activities OR has processes in place within their organisation, aimed at improving sustainability.  (e.g. paperless offices, green technology in offices, policies, training programmes, community outreach programmes etc).

10

Total points

10

D)     COMERCIAL CRITERIA

Criteria

Maximum points

Bidders’ prices demonstrate an economically advantageous position for Save the Children (please quote best possible price)

50

Total points

50

All bidders must meet the Essential criteria to be considered for further evaluation.

There will be a maximum of 100 points allocated, 40 in CAPABILITY criteria 10 SUSTAINIBILTY criteria and 50 in COMERCIAL criteria.

In case of unsatisfactory performance Save the Children will negotiate with offers chosen in order for work / materials to be amended. If the work fails to fulfill the expectations, the contract will be terminated through a notification letter one month prior to termination.  In the meantime, Save the Children will initiate another selection in order to identify appropriate candidate individuals/companies.