Call for Expression of Interest (CEI)
Independent Auditor for Baytna
March 20, 2024
1. Assignment – Baytna was launched in 2013 as a networking, training, and grant-making facility for Syrian civil society organizations, offering support to CSOs based inside Syria and neighboring countries.
2. Timeline and Contact – The publishing date of this CEI is Mar 20, 2024. The closing date for the receipt of offers by interested contractors is Apr 05, 2024.
3. Description of Requirements – The auditor shall express a professional and independent opinion on the Financial Statements and compliance elements of Baytna and the projects under review and on whether the statements present fairly the financial position and were prepared in accordance with the International Financial Reporting Standards and Standards and Controls of the Organization.
4. Auditing Standards – The financial audit shall be carried out in accordance with International Audit Standards issued by IAASB. The elements of compliance and performance audit, which are carried out should be in accordance with the international standards for supreme audit institutions (ISSAIs 4000 and 3000). The audit shall be carried out by an external, independent and qualified auditor.
The responsibility for the preparation of Financial Statements lies with the Baytna management and is also responsible for:
(a) The selection and application of accounting policies. Baytna Accountant will prepare the Financial Statements in accordance with applicable accounting standards that comply with appropriate international standards in all material respects.
(b)Implementing accounting, administrative and financial procedures documented in manuals.
The objective of the audit of the financial report is to express an audit opinion according to International Standards on Auditing (ISA) 800/805 on whether the financial report of Baytna and its projects are in accordance with the instruction for financial reporting, financial procedures and accounting policies.
The auditors are responsible for the formulation of an opinion on the Financial Statements based on their audit conducted in accordance with ISA. In accordance with these standards, the auditors will request Baytna for an Engagement/Confirmation Letter committing the Baytna management to the preparation of the Financial Statements and maintenance of proper internal control systems as well as acceptable documentation for all financial transactions.
5. Services to be performed –
Your proposal is expected to cover the following services:
v Statutory audit of Baytna financial statements for the years ended 31 December 2023/2024.
v Projects’ audit implemented by Baytna and funded by donors (DANIDA, SIDA, FRENCH, Olof Palme, DRL and any other donor during the period); separate report to be issued for each donor according to the donors’ TORs.
Audit of Baytna grants (value EUR 1,000,000) to local Syrian civil society organizations (12 Contracts); separate report to be issued for each CSO, all the CSOs are located inside Syria and for that no travel needed (the audit work will be conducted remotely).
6. Scope of Work – The auditor will:
a) Carry out tests of transactions as necessary, and will obtain an understanding of Baytna’s accounting system to assess its adequacy as a basis for the preparation of its financial statements to establish whether adequate records have been maintained.
b) Confirm that an appropriate internal control framework is in place to provide reasonable assurance on the operations of Baytna efficient use of resources and reliability of financial reports.
c) Confirm that although the responsibility for preventing errors, irregularity or fraud, remains with Baytna , the audit is planned so as to have a reasonable assurance that any material misstatements, irregularities and/or fraud in the entity financial statements is detected.
d) Confirm that funds have been used in accordance with the applicable rules of the concerned donors, board decisions with due attention to economy and efficiency, and that they have only been used for the purposes for which they were intended for and in accordance with the conditions under which the funding was provided.
e) Confirm that goods and services financed have been procured in accordance with sound procurement procedures spelled out in the Baytna Procurement Manuals, Financial policies and procedures and applicable rules of the donors.
f) Confirm that all necessary supporting documents, records, and accounts have been kept in respect of all activities. Clear linkages should exist between the books of accounts and the financial statements presented.
g) Confirm that the Financial Statements have been prepared in accordance with adopted accounting principles and give a true and fair view of the financial position Accountant as at the end of the financial year. Baytna adopts the modified cash basis accounting principle. The above-defined scope does not in any way restrict the audit procedures or the techniques that the auditor may wish to use in forming an opinion on the Financial Statements being audited.
h) Examine and evaluate the functioning of management systems and business processes with special consideration to compliance and the principle of economy.
i) Consider the necessity and relevance to perform test of details regarding compliance and the principle of economy, effectiveness, efficiency.
7. Financial Statements – The Financial Statements among others, include:
(a) A Statement of Income and Expenditure.
(b) A Balance Sheet.
(c) A Statement on Cash Flow.
(d) Accounting Policies Adopted and Explanatory Notes.
(e) Where applicable, a Financial Report compliant with the terms and conditions of agreements with the donors.
8. Audit Report –
8.1 The auditor is expected to present two types of reports: An opinion on the Financial Statements prepared by the Accountant and a Management Letter.
8.2 The opinion on the Financial Statements shall contain:
(a) A professional opinion on the financial statements and supporting schedules as regard to their true and fair view
(b) The period covered by the opinion
(c) Accounting standards and Baytna Financial Policies and procedures that have been applied indicating the effect of any deviations from them
(d) The International Audit standards that were applied
(e) Include all other requirements of donors and cooperating partners as stated in the various cooperating agreements.
8.3 The Management Letter, among others, shall contain:
a. Comments and observations on the accounting records, systems and controls that were examined during the course of the audit.
b. Specific deficiencies and areas of weakness in systems and controls and make recommendations for improvement.
c. The degree of compliance of each of the donor funding agreement and give comments, if any, on internal and external matters affecting such compliance
d. Matters that have come to their attention during the audit which might have a significant impact on the implementation and sustainability of the funding.
e. Report on the implementation status of recommendations pertaining to previous period audit reports.
f. Areas of risk that need to be flagged out to management.
g. Any other matters that the auditors consider pertinent to be brought to the attention of the Secretariat.
8.4 Ideally, the Management Letter will include reactions/comments from Baytna Management on the weaknesses noted by the auditors.
8.5 The audit report will be submitted as three hard copies and one PDF copy of the final audit report to the management.
9. Audit of Projects –
9.1 The scope of the audit of projects depends on the agreement signed between the funder and the Management. The scope of the audit will be similar to the institutional audit, however, some of the specific requirements are the following:
a. That the External Auditors have obtained an understanding of the terms and conditions governing the grant agreement.
b. That the funds received have been used in accordance with the cooperation agreement.
c. That the accounts kept by Baytna are accurate and up to date.
d. That the accounts and expenditure relating to the grant/cooperation agreement are easily identifiable and verifiable e. That it is possible to reconcile the information in the Financial Report to Baytna accounting system and records.
f. That the correct exchange rates have been applied.
g. That any identified bank interests have been properly reflected in the books of account.
h. That the Accountant has maintained the necessary supporting documents, records, and accounts in respect of the project activities and
i. That the internal control systems of the organization are comprehensive, sufficient, and adequate.
9.2 A separate audit report will in this case be prepared for the project audit.
9.3 The financial records maintained for projects are usually the following:
i. Financial ledgers.
ii. Payments vouchers substantiated by support documentation and
iii. Financial reports (wherever applicable).
10. Minimum Requirement for Audit Team – The Audit Manager must have at least 5 years of experience in auditing public sector and international institutions and donor funds and must be a member of a recognized accountancy professional body.
The Audit Team with at least 3 years of experience in auditing and CPA (II) professional qualifications or equivalent.
Added advantage Audit firm staff stability history – assurance regarding the assignment of permanent personnel to the engagement.
Professional knowledge of both Arabic and English language as documents are in both.
11. Submission of Proposals – The potential consultants must submit the Technical and Financial proposals in two (2) separate electronic files after requesting the data needed via the same email of submission: Email address: procurement@baytna.org by COB and clearly labelled as follows:
· Technical Proposal
· Financial Proposal
Annexes
Annex 1: Outline for Technical Proposal
a. Approach, Methodology and Work Plan
b. Work Schedule or Timeline
c. Team Composition, Key Staff Qualifications and Competence
d. Curriculum Vitae (CV) for Proposed Staff
e. Consultant’s Experience
f. Experience and Qualifications of Subcontractor (if applicable)
g. Firm’s References
Annex 2: Outline for Financial Proposal
a. Summary of Costs (Direct and Indirect)
b. Breakdown of Daily Fees
c. Breakdown of Reimbursable Costs
d. Budget Narrative
CONTACT INFORMATION:
BAYTNA
Rue des Colonies 11 Brussels 1000
BELGIUM
Email address: procurement@baytna.org