| Project title: | Mobile diagnostics COVID-19 (the Republic of Tajikistan) (further – Project). | |||
| Client: | Foundation for prevention and control of HIV and other infectious diseases AIDS Infoshare (Russia Federation) (further – Fund). | |||
| Financing institution: | Grant from Eurasian Fund for Stabilization and Development (further – EFSD). | |||
| Audit type: | Financial statement and expenses audit of non-profit organization Foundation for prevention and control of HIV and other infectious diseases AIDS Infoshare (Russian Federation) for the mentioned periods. | |||
| Duration of services: | March 20, 2023 – April 30, 2024 | |||
| Place of providing services | The services will be provided in Moscow (Russia Federation) at the address: Office 350, ul.Yuzhnobutovskaya 77, Moscow, Russian Federation 117042. | |||
| Scope of work: | The audit will be carried out in respect of the Fund’s operating expenses (salaries, deductions from the pay roll (for 3 stuff units) and administrative expenses) and procurement of goods and services according to the approved procurement plan. | |||
| Audit stages: | The assignment has 2 stages:
Stage 1 – Financial statement audit for the period December 28, 2021- December 31, 2022 Stage 2 – Financial statement audit for the period January 01, 2023- December 31, 2023 Audit of each stage must start no earlier than March 20 following the reporting year and end (submission Audit report) no later than April 30 following the reporting year. |
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| Basic requirements to audit:
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Audit must be conducted in accordance with the requirements of International audit standards (ISA), published by the International Federation of Accountants (IFAC). In accordance with International audit standards, (ISA) the Consultant must plan and conduct audit with special attention to the following:
a) In accordance with ISA requirement 240 «Responsibilities of auditor in relation to unjust acts during financial statement audit», to reduce the audit risk the auditor when planning and conducting audit must take into account the significant distortion in financial statement as the result of unjust acts.b) In accordance with ISA requirement 250 «Reviewing the laws and legal acts in the course of financial statement audit» when working out, audit, evaluation and submission of final statement the auditor must take into consideration the violation of laws and legal acts that may significantly influence the financial statement.c) In accordance with ISA requirement 260 «Informational cooperation with corporative managers», in the course of audit related to management issues the auditor must cooperate with corporative managers.d) In accordance with ISA requirement 265 «Informing corporative managers and management of organization on internal control disadvantages», the auditor must inform management of organization and corporative managers on internal control disadvantages, revealed by auditor.e) In accordance with ISA requirement 330 «Аudit procedures on counteracting the revealed risks», the auditor must work out and perform a system aimed at eliminating the risks of significant distortion in financial statement as well as work out and conduct audit procedures, the nature, timing and scope of which are based on evaluated risks and aimed at its elimination. f) In accordance with ISA requirement 402 «Features of the enterprise audit, using the services of the service organization», when the certain enterprise activities are implemented by third party (the supplier), auditor must evaluate the internal control management of the supplier. g) In accordance with ISA requirement 580 «The written statements», during financial statement audit is expected that auditor must receive the written confirmation from management and in relevant situations from corporative managers. |
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| Basic responsibilities and tasks of the auditor: | a) Conducting of independent audit, preparation and submission to the Client an expert statement on legality and validity of using grant funds, received according to the Grant agreement from EFSD as October 08, 2021 (further – Financial agreement);b) review and evaluation of financial statements, submitted to Eurasian Development Bank (EFSD’s fund manager) (further – the Bank) for the reviewed period;c) review the compliance of financial restrictions according to the Financial agreement;d) review and evaluation of financial statements preparation procedures;e) review of complete documentation availability in relation to all expenses within the Project;f) evaluation the compliance of financial statements to the contracts expenses from December 28, 2021 until December 31, 2022 and January 01, 2023- December 30, 2023;g) evaluation the accounting system (including for compliance with the requirements of the Russian Accounting Standards (RAS)), internal financial control and related systems;h) review the compliance of financial statements and financial statements preparation methods on the Project to International accounting standards in the government sector, Financial agreement provisions, requirements of applicable guidelines, policies and procedures, and submission the compliance report to the Client;i) review of legality and validity of funds movements on special accounts (special accounts of the Project: special account in rubles 40703810900000003736, in US dollars 40703840000000000544, transit account for dollars payments 40703840300000000545. Financial statements on special accounts are part of the Project financial statements; j) making the statement on special accounts maintenance related to the Project. Financial statement on special accounts include:
k) drawing up an opinion on compliance with the applicable procedures in relation to the process of maintaining special accounts, as well as on the balance of funds on them as of the end of the reporting period; l) investigation the correctness of financial transactions during the evaluated period, balances in special accounts at the end of the evaluated period, using of special accounts in accordance with Financial agreement, as well as internal control system adequacy, applied in case of using such spending mechanism; m) random check of expense statements based on which the withdrawal requests were submitted. Such expenses must be thoroughly analyzed for conformity to the requirements of corresponding Financial agreement. If the expenses not eligible for funding but included in withdrawal requests and paid are revealed the auditor should mention this. The total amount of withdrawn expenses must be checked with the amounts paid by the Bank and corresponds to financial statements;n) include in the Audit report tables or other forms showing the calculation, confirming or refuting legality and validity of funds movement. |
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| Financial reports subject to audit review: | The Project financial documentation must be prepared by Client and submitted to the Consultant and should include:
a) Interim financial statements, including:· Statement of Sources and Uses of Funds;· A report on the use of funds by Project activities;· Statements of Special Accounts;· Statement of Financial Position;· Balanced special accounts balances;· Statements of Expenditures;b) Primary accounting documents;c) and other financial statements as required by the Financing agreement. |
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| Reporting: | At the end of each stage the auditor must submit the following documents:
1. Audit report; 2. «Letter to the management», which includes: a) disadvantages, weak points, comments and remarks to the accounting, systems and instruments of internal financial control, investigated during the audit; b) submit information of noncompliance with Financial agreement;c) information on expenses which are considered to be unreasonable and illegal; d) information on important problems during the audit which may significantly influence the Project efficiency; e) other questions which the auditor considers necessary to draw the Client`s attention;f) the Client`s comments regarding the auditor observations, included in the Letter to the management.If nothing of the above is found the auditor submits the letter in which mentions that nothing was found during the audit review that may draw the Client`s attention. Before the assignment is completed the auditor must submit to the Client drafts of Audit report and Letter to the management for the review. Drafts should be submitted in Russian. After reviewing the report, the Client will provide comments to the auditor, which should be addressed in the final versions of the above documents. After including the comments, auditor submits to Client the final Audit report and Letter to the management in 2 (two) copies in Russian in printed and electronic forms. |
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| Requirements to the Consultant and key personnel qualification: | ||||
| № | Requirements | Minimum value | ||
| 1 | Experience of the Consultant in providing audit services in the government (public) sector. Government (public) sector audit experience refers not only to the auditing of government entities, but also to government-funded projects. | 5 years | ||
| 2 | Number of completed assignments with a similar nature and scope within audit reviews of financial statements of the projects, financed by international financial organizations during the last 5 years. | 3 | ||
| 3 | Key personnel qualification: | |||
| Head of the group | 10 years of audit experience conforming to international standards, including no less than 5 years of audit experience and implementation the programs financed by International financial organizations (IFIs), no less than 4 years of audit experience as head of the unit in audit organization, good command of the English language. | |||
| Аuditor 1 | 5 years of audit experience conforming to international standards, including no less than 3 years of audit experience and implementation the programs financed by International financial organizations (IFIs), no less than 2 years of audit experience in audit organization, good knowledge on international accounting standards and tax legislation, good command of the English language. | |||
| Аuditor 2 | 5 years of audit experience conforming to international standards, including no less than 3 years of audit experience and implementation the programs financed by International financial organizations (IFIs), no less than 2 years of audit experience in audit organization, good knowledge on international accounting standards and tax legislation, good command of the English language. | |||
