Terms of reference for external audit for the project “make food - make sense” implemented by ao katalyst

Information for auditing:

Project Name: Make food, make sense! - Improving the nutritional situation for a healthy nutrition of 1000 children in rural areas of the Republic of Moldova.

Project Donor: The project is being financed by the German Federal Ministry of Economic Cooperation and Development (BMZ), co-financed by ChildFund Deutschland and AO Katalyst.

Auditing period: 01.12.2023 – 31.12.2024

Total Budget: 225.000,00 Euro

Objective of the audit: The primary objective of this external, independent audit is to assess and verify the financial management and use of project funds for the "Make Food - Make Sense" project, funded under the BMZ funding. The audit is to ensure compliance with BMZ regulations, verify the proper use of funds, and provide an attestation that certifies financial accuracy, compliance, and transparency.

Background: The project "Make Food - Make Sense" aims to implement sustainable food practices in Moldova, is implemented by AO Katalyst in cooperation with ChildFund Deutschland e.V. with financial support from BMZ. The project’s financial audit will be performed in line with the guidelines established in the BMZ’s funding title for Private Partner projects (esp. sections 6.2, special provision no. 1 to 6.2, Annex IV). The external audit is required to ensure that the project funds were managed according to BMZ standards and that all relevant project documents, expenditures, and income are accurately accounted for and reported.

Scope of the audit: The external audit will cover the following key areas:
• Verification of the project's financial transactions, ensuring regularity and completeness of the accounting records.
• Review of the financial report to confirm that all income and expenditures related to the project have supporting documents.
• Assessment of the management of project funds, including funds transferred to AO Katalyst, interest earned, and other income generated.
• Verification of compliance with the cost plan, comparing planned versus actual expenditure.
• Examination of personnel costs and compliance with local laws and regulations regarding employment contracts, wages, and benefits.
• Assessment of the use and maintenance of project equipment and inventory.
• Verification of adherence to BMZ funding guidelines and AO Katalyst’s compliance with all contractual obligations.
• Examination of project procurement and contracts to ensure adherence to BMZ procurement guidelines.
Selection criteria for external auditor: The audit firm or individual auditor must meet the following criteria:
• Independence from AO Katalyst and any affiliated German partner organizations to avoid conflicts of interest.
• Compliance with internationally recognized auditing standards.
• Confirmation of auditor qualification by the German Embassy or a competent institution in Moldova (e.g., national association of auditors).
• Adherence to competitive selection processes, as stipulated in BMZ regulations.
• Limited cooperation period with AO Katalyst, capped at five to six years to support anti-corruption measures.
Detailed audit requirements: The audit should include, but not be limited to, the following activities:
• Verification of all financial transactions, ensuring they are properly documented.
• Reconciliation of project income and expenditure with supporting documentation.
• Review of project funds usage, including any interest accrued or additional income generated by the project.
• Verification of the alignment of expenditures with planned activities and budget allocations.
• Review of the project inventory and verification of the appropriate usage of assets.
• Examination of personnel costs to ensure compliance with local regulations and contracts.
• Confirmation of adherence to all BMZ and AO Katalyst requirements, including procurement procedures and funding guidelines.

Required audit report: The external auditor must deliver a detailed audit report, which should contain:
• A description of the audit mandate, scope, and key findings.
• Documentation of any non-compliance with funding or contractual requirements.
• Analysis of planned versus actual expenditure, with explanations for any variances exceeding 30%.
• Detailed recommendations if discrepancies or issues were identified.
• Final audit opinion, confirming the audit findings and specifying any limitations or qualifications. The opinion must include:
1. Confirmation that income and expenditure are duly substantiated by supporting documents.
2. Confirmation that expenditure complies with approved budgets and aligns with project objectives.
3. Verification of income sources and proper documentation of any contributions or income generated.
4. Statements regarding adherence to the funding agreement.
5. Notable features or issues encountered during the audit.
Submission of report and language requirements: The audit report, including all findings and recommendations, may be provided in English. If a different language is used, core audit findings and the final audit opinion should be translated into English or German to ensure accessibility for client review.
Compliance and documentation retention: AO Katalyst reserve the right to conduct additional inspections if necessary. All project records, including financial documents, contracts, and audit reports, must be securely retained by AO Katalyst for a minimum of five years after project completion, or as required by national regulations.
Responsibilities of AO Katalyst: AO Katalyst must ensure that all necessary documentation is readily available for the auditor and provide comprehensive support to facilitate a thorough audit. Any delays or lack of compliance with audit requirements could result in delayed funding or other consequences.


Deliverables and timeline
Sign the contract - until end of December December 24
Send the reports with supporting documents - mid-January 2025
The audit should take place - mid of February 2025
Final audit report - march 2025

How to apply:
• All interested bidders must submit the offer to the email address procurements@katalyst.md , with the e-mail subject line: "External audit for the project Make Food - Make Sense” until 10/12/2024. 10:00 am (Chisinau time)