TERMS OF REFERENCE FOR EXTERNAL AUDITOR/AUDITING COMPANY

I. About us

ACT for SOCIETY Center is an Albanian non-governmental organization established in 2012. The mission is to enhance healthy lifestyles and stimulate the sustainable development of society. Its work consists of promoting culture, advocating for democracy and human rights issues, connecting youth, stimulating active participation in social life as well as in decision-making processes.

II. Period covered by the assignment

The audit should cover the annual period of project implementation- Care from 1st of January, 2021 to 28 February 2022 for AfS in Albania.

III. Objectives and scope of the Audit

The objective is to audit the Financial Reports submitted to Donors and State for the Fist-year period, and for a starting from 1st of January, 2021 to 28 February 2022 for the Project and to express an audit opinion according to Albanian Law.

Additional assignment; according to agree upon procedures ISRS 4400, review the following areas in accordance with the Terms of Reference below

· Follow up whether salary costs debited to the project/programme are recorded throughout the duration of the year in a systemized way and examine whether the salary costs can be verified by sufficient supporting documentation.

· Follow up whether AfS has implemented the following recommendations from the Efficiency Audit. The examination includes reviewing whether AfS has implemented the action points as described in the most recent AfS management response that has been submitted to Donors.

· Examine whether foreign exchange gains and losses are disclosed in accordance with what is stipulated in the agreement including appendixes.

· Follow up whether AfS has adhered to the procurement guidelines annexed to the agreement.

· Review if outgoing balance for previous period is the same as incoming balance for the current period. · If AfS applies modified cash basis as accounting principle, the auditor shall motivate whether the applied accounting principle is acceptable for this type of financial report.

V. Follow up of funds that are channeled to implementing partners

· Does AfS have signed agreements with its partner organizations?

· Are the audit requirements in agreements with partner organisations in accordance with the audit requirements as stipulated in AfS agreement with Donors?

· The review shall include whether AfS makes documented assessments of the audited financial reports submitted to AfS and whether these reports are followed-up by AfS. The review shall include verifications of contributions supported. The number of contributions (projects) in relation to the total number of contributions and the % of funds in relation to the total disbursed funds that will be included in the review shall be based on the auditor’s risk analysis. The review shall also include any observations from auditors that Donors should be informed about.

· Are the same requirements for reporting exchange rate gains/exchange rate losses as stipulated in the agreement between AfS and Donors, included in the agreements between AfS and its implementing partners?

VI. The reporting

The scope of the audit shall be stated in the report and the methodology used shall be presented. The reporting shall be signed by the responsible auditor (not just the audit firm) and title. The reporting from the auditor shall include an independent auditor’s report in accordance with the format in standard ISA 800/805 and the auditor’s opinion shall be clearly stated, as well as a Management letter with audit findings and weaknesses identified during the audit process. The auditor shall regardless of materiality, quantify the amount for costs lacking sufficient supporting documentation. The auditor shall make recommendations to address the weaknesses identified and the recommendations shall be presented in priority order. If the auditor assesses that no findings or weaknesses have been identified during the audit that would result in a Management letter, an explanation of this assessment must be disclosed in the audit reporting. Measures taken by the organisation to address weaknesses identified in previous audits shall also be presented in the Management letter. The additional assignment according to agreed upon procedures ISRS 4400 under paragraph III, shall be reported separately in a “Report of factual findings”. If the auditor conducts an additional assignment according to ISRS 4400 and assesses that the observations presented in the “Report of factual findings”, include the information that would have been included in a Management letter, a Management letter does not need to be developed. In such a case, the “Report of factual findings” shall include an explanation of why a Management letter has not been developed.

VII. Timeline

The submission of the Final Audit Report for the financial auditing will be on 9 March, 2022.

The proposals should be submitted no later than 17:00 Tirana time on 24 February, 2022 to the following: Address: “Naim Frasheri” Vila 77, Tirana or Email: info@actforsocietycenter.org

Late or unresponsive applications will not be considered.

All applicants are invited to address potential questions until February 24, 2022.

Applicants will be notified by us on the results of the process.

The deadline for submission of applications is February 24th 2022