Provision of Professional Audit Services for UN OCHA in Europe (Ukraine).

The Office for the Coordination of Humanitarian Affairs (OCHA) is looking to establish a Long Term Agreement (LTA) for professional audit services (project audits, partner audits and special audits/foresnsic audit) in the context of OCHA funding allocated to implementing partners, under OCHA managed Country-Based Pooled Funds (CBPFs) focusing on providing humanitarian assistance in the affected countries. Services are currently required in Europe (Ukraine) as well as on global basis where UNOCHA currently has Country Based Pool Funds (CBPFs) and may open a new Fund in the future. Funds are mainly split into geographical blocks of Asia, MENA, Africa, Europe and Americas presently. It will be required that succesful bidder/s are able to provide audit service in Europe (Ukraine) and potentially any new location added later on as and when a new Fund opens up. Purpose of the Audit Review Under the overall supervision of UNOCHA, and in close collaboration with partnering NGOs, the auditors will conduct project, partner and special audits as required. Audits will be coordinated by Funds based in the country of project location or their administrative location. Fund management units will provide all required and relevant information before the commencement of the audit. In selecting the partner or project to be audited, a risk-based model will be used. A partner/project risk level will be assigned following clearly laid down criteria by each Fund. This will be used in selecting the projects/partners to be included in audit list. In addition to the Grants or partners identified using risked based model, special audits (i.e. exceptional or forensic audits) can also be requested and initiated by UNOCHA, if required. Such audits will be done with specific clearly laid down objectives, in line with the reason of its launch. If required, a more specific ToR for such audit may be provided during the course of the contract. The overall objective of the audit report is to provide UNOCHA’s administrators with reasonable assurance that CBPFs resources are being managed in accordance with the global Operational Handbook for Country-based Pooled Funds, and the content of the specific grant agreement, along with any amendment. When required to do projects based audit, auditing company will be required to follow the methodology of auditing of the individual project implemented by the partner. However, for the purpose of partner based audit, the auditor may look at the overall compliance of the partner with the process, selecting some projects implemented by the partner for the CBPF for sampling. For special or forensic audit, auditor will be required to look into specific aspects of a project or partner with implications on the implementation of operational capacity of the partner. This may include looking deeper into any specific information at OCHA’s disposal for that project or partner. Audit Scope Prior to the start of audit work the auditor will be required to consult with the UNOCHA Country Office and project officials of the respective NGO, to understand how cooperation between the relevant organizations is managed and any issues of concern. Further, upon completion of the draft audit report and management letter, the auditor will be required to meet with the NGO to brief on its audit findings and recommendations, as well as to seek their feedback thereon. Finally, the auditor will meet the UNOCHA Country Office to discuss the draft audit report prior to its finalization. The auditors must certify, express an opinion, and quantify the net financial impact of the each of the following for each project or partner audited: (a) The final accounts of project expenditures for the entire project period. (b) The approved budget and details of variations, if variations between planned and actual expenditures have occurred. (c) Clear identification of deficits, if any. (d) Analysis of financial accounting, monitoring and reporting. (e) Analysis of management systems used for recording, documenting and reporting on resource utilization. (f) Analysis of equipment use and management. (g) Assessment of the project’s management structure, including the adequacy of appropriate internal controls and record-keeping. (h) All administrative set up and mechanisms with the partner, which will include, but not limited to, procurement policy and its implementation, human resource policies and its implementation, internal financial and audit structures and its effectiveness. Additional Scope for Partner Based Audit: 1. Review of the Implementing Partner’s programme management system 2. Assessment of the IP’s internal controls 3. Review of a sample of Final Financial Reports and transaction testing 4. Audit Certification Deliverables The Auditor will provide oral briefings and separate written reports to OCHA (Representation and Headquarters). The forensic audit report must be produced in the template provided by OCHA.