Request for Proposal for Consultancy in Conducting an Expense Verification for the AKDN Eastern Africa at Aga Khan Foundation

Engagement Context, Materiality, Risk Analysis, Sampling

The Expenditure Verifier's procedures should include:

• Obtaining a sufficient understanding of the engagement context including the contractual conditions, the coordinator and the applicable EC laws and regulations which are set out in Section 5 above (Scope). The Expenditure Verifier should pay specific attention to the contractual provisions relevant for the following aspects:
  • Documentation, filing and record keeping for expenditure and income.
  • Eligibility of expenditure and income.
  • Procurement and origin rules insofar as these conditions are relevant to determine the eligibility of expenditure.
  • Asset management (management and control of fixed assets, e.g. equipment).
  • Cash and bank management (treasury).
  • Payroll and time management.
  • Accounting (including the use of exchange rates) and financial reporting of expenditure and income; and
  • Internal controls and notably financial internal controls.

Requirements for the Expenditure Verifier

By agreeing these ToR, the Expenditure Verifier confirms meeting at least one of the following conditions:

• The Expenditure Verifier is a member of a national accounting or auditing body or institution which in turn is a member of the International Federation of Accountants (IFAC).
• The Expenditure Verifier is a member of a national accounting or auditing body or institution. Although this organization is not member of the IFAC, the Expenditure Verifier commits to undertake this expenditure verification in accordance with the IFAC standards and ethics set out in these ToR.
• The Expenditure Verifier is registered as a statutory auditor in the public register of a public oversight body in an EU member state in accordance with the principles of public oversight set out in Directive 2006/43/EC of the European Parliament and of the Council (this applies to auditors and audit firms based in an EU member state)[1].
• The Expenditure Verifier is registered as a statutory auditor in the public register of a public oversight body in a third country and this register is subject to principles of public oversight as set out in the legislation of the country concerned (this applies to auditors and audit firms based in a third country).