Consultancy for An Audit of The inclusive dairy enterprise project, Kampala, Uganda

SNV Netherlands Development Organization in Uganda wishes to procure the services of a duly registered auditing firm to perform an independent audit of the statement of financial condition for the period from January 1, 2023 to December 31, 2023 for the “The Inclusive Dairy Enterprise” project, activity number 4000003332, which is funded by Ministry of Foreign Affairs - Netherlands. TIDE Project has two components, which are TIDE SP1477 and ISDAP SP1757. The grant decision for TIDE was signed on November 4, 2019, the amendment for ISAP was signed on November 17, 2021.

Job Description

Subject of the Engagement

A. Engagement to ascertain that the financial statements have been prepared in accordance with a special purpose framework pursuant to International Standards on Auditing (ISA) 805;

B. Engagement to perform agreed-upon procedures pursuant to International Standard on Related Services (ISRS) 4400 regarding the subjects mentioned under 3.B.

The audit must be carried out in accordance with generally accepted auditing standards and in particular the International Standards on Auditing; ISAs, of the International Auditing and Assurance Standards Board (IAASB).

Audit of financial statements prepared in accordance with a special purpose framework pursuant to ISA 805. The aim of the audit of the financial statements is to establish whether they meet the requirements laid down in the standards framework referred to in section 2.2 of this protocol. The auditor must ascertain that:

if the accrual accounting system has been used, the explanatory notes mention which portion of the costs was paid within the period covered by the financial statements and which amount has been recognised for items that are payable;
expenditures (or costs) have been properly recognised and that expenditures (or costs) are related to the activities mentioned in the decision;
receipts or revenues have been recognised in full and that revenues have been received. The auditor will examine consistency with the revenue sources included in the approved budget and use their knowledge of the organisation, for example in relation to the auditing of annual financial statements;
the financial statements are structured with the same level of detail and with the same cost/expenditure categories as the submitted and approved budget. The budget must also be recorded in the financial statements;
expenditures/costs are evidenced by supporting documents. The auditor must determine on the basis of their professional judgement whether the supporting documents suffice as audit information/evidence and are appropriate to the nature of the activity and the accompanying approved budget;
discrepancies of more than 10% per budget line between the actual figure and approved budget are explained. Variances of EUR 5,000 or less do not need to be explained;
the accounting policies used are explained in the financial statements, and are consistent with the approved budget and the annual financial statements;
the system for allocating indirect costs/overheads to the activity is explained in the explanatory notes. The auditor must assesses whether the allocation system has been used in the financial statements in accordance with the explanatory notes to the financial statements and with the approved budget. The associated audit activities are carried out in conjunction with those described at 9, namely ascertaining that expenditures/costs are recharged on the basis of actual expenditures/costs;
expenditures/costs are recharged to the funded activities on the basis of actual costs. This means that the applicant for the funds adopts a consistent approach in allocating indirect expenditures/costs and that retrospective costing takes place each year. If not yet available at the time of the audit, the retrospective costing for the year under review T-1 may be used. In the event of departure from this consistent approach in the allocation system, the applicant must have included an explanatory note in the financial statements;
the selected external invoices are compliant with the organisation’s procurement policy and that suppliers are selected objectively by inviting multiple bids from a threshold amount of EUR 33,000 upwards. [1] Any departures must be explained by the organisation in the financial statements;
the number of hours and hourly rates claimed for internal and external staff where the hourly rate exceeds a threshold of EUR 225 per hour (excl. VAT) has been explained by the applicant in the financial statements. The total amount concerned must be included in the financial statements.
Engagement to perform agreed-upon procedures pursuant to standard ISRS 4400

The objective of this part B is for the Auditor to carry out the specific procedures listed in the annex to this ToR and to submit to the Beneficiary a report of factual findings about the specific procedures performed.

The Auditor shall examine the factual information in the Financial Report of the Beneficiary and compare it with the terms and conditions of the Contribution Agreement and provides an audit opinion.

The Contracting Authority assesses for itself the factual findings reported by the Auditor and draws its own conclusions from these factual findings.

Responsibilities of the Auditor to the Engagement

Examination of the correctness of the related expenditure practices.
The annual accounts should show for each activity funded by EKN what commitments relating to the activity have been assumed with other parties, and how much of these commitments has so far been paid.
Any interest accrued on the funds made available by the minister has been used to finance the activities to be carried out pursuant to this decision.
Any income received by the project
Audit on the basis of receipts