Invitation For an Independent Financial Project Audit at SAfa

Invitation For an Independent Financial Project Audit at SAfa

Invitation For an Independent Financial Project Audit at SAfa

Terms of Reference (TOR) for an external, independent financial audit of an BMZ-funded project

 Background of SAfA Tanzania project and description 

The Foundation Alliance for Africa (SAfA) is an initiative founded by the Max and Ingeburg Herz Stiftung, the Kühne Stiftung, the Rossmann Stiftung and the Hanns R. Neumann Stiftung. SAfA aims to make an effective contribution to improving African communities, mainly in rural but also in urban areas, by creating attractive livelihood prospects for the rapidly growing young population.  This contributes to reducing poverty, to relieving main challenges that push youth into migration and to the attainment of sustainable Development Goals of the United Nations. 

The SAfA Tanzania project aims to support over 50,000 young men and women aged 15-30 in Arusha, Kilimanjaro, Mbeya and Songwe regions, who are currently facing uncertain futures, to enhance their life prospects through improvements in education, income, and health, and by creating a more youth friendly and youth inclusive environment. The project combines activities on three thematic components: Agriculture with a focus on employment in the agricultural sector, Logistics, education and supply chain management, and sexual and reproductive health through facilitating a youth friendly environment. This is accomplished through a multisectoral project approach where three implementers combine their expertise and approaches to foster skills development for remunerative employment, enhance efficiencies of agricultural and improve knowledge and access to sexual and reproductive health services and strengthen youth acceptance and recognition as productive members in communities. The higher level of impact and sustainability expected from this integrated and holistic approach will be closely monitored through rigorous evaluation assessments. Experiences and learnings will enable ongoing local capacity development and improvements of these approaches for further scaling and replication in Tanzania and in other countries.

Audit Scope

These terms of reference address the requirement for an independent audit for funded projects and programs, and documentation of funding expenditures of the SAFA projects funded through BMZ for the full calendar period from May 01, 2023, to April 31, 2024. This audit aims to verify that the accounts provide a true and fair picture of the project fund and that the use of funds is in accordance with the aims and objectives outlined in the Cooperation Agreement established between SAFA and BMZ. We expect the audit to cover the approximated total spending of €2,200,00 for the project. 

The audits should be carried out in consideration of the following auditing and control measures: 

• Verifying accounting records for correctness and completeness.
• Verifying the financial report in which all project-related revenues and expenditures 
• Verifying how the provided project funds have been managed. This includes: –
• Project funds transferred to the project partner in the current budget year.
• Interest earned in the current budget year from project funds transferred. 
• Other revenues from the project activity. 
• Verifying to what extent funds have been used appropriately for planned objective.
• Verifying the cost-effectiveness of expenditures of financial resources (to be used as economically and as effectively as possible). 
• Verifying the personnel costs and social security contributions to ensure that they are in line with local standards, and rules/regulations and, comply with contracts.
• Verifying the economic use of project equipment and the procured inventory.
• Verifying and confirming that project documentation is complete and correct.
• Verifying that all agreements fundamental to the project are being adhered to BMZ funding requirements and BMZ contract award guidelines.

Place of audit and time of audit 

The audit will be carried out at Project coordinating Unit (PCU)-Tanzania in USA River/Arusha and involves three implementing partner NGOs Khune Tanzania head office Dare salaam, DSW Tanzania head office Tengeru-Arusha and HRNS Tanzania USA River /Arusha . 

This audit will take place during July 2024.

Qualification of Auditors

The audit firm is expected to meet the following minimum criteria: – 

1. Audit firms must have a valid professional certification from the relevant national audit institute/association.
2. Audit firms must have completed at least 5 project audit assignments for firms and/or international NGOs with a list of the NGOs served by your firm.
3. Staff involved in the audit must hold ACCA/CPA qualifications.
4. Profile of the firm or company track record.
5. CVs of the key staff in your firm.
6. Renewed business license 
7. Tax identification number (TIN) number. 
8. VAT registration certificate 
9. The Audit Firm needs to state their previous experience on BMZ funded project Audit.

Cost of auditing service

The interested audit firms should submit Technical and Financial proposals and the auditing firm should send a comprehensive budget for undertaking this task. 

Proposal Submission and deadline

Proposals should be submitted via email to: [email protected]

Deadline for submission of proposals: 8th April,2024.