Hoffnungszeichen | Sign of Hope e.V. is a Christian motivated organisation for Human Rights, Humanitarian Aid and Development Cooperation. Based in Constance, Germany, Sign of Hope is dedicated to helping those in distress and exploited people worldwide.
An audit is commissioned under the German Federal Ministry of Economic Cooperation and Development (BMZ) funding guidelines for development projects run by private German executing agencies.
Hoffnungszeichen | Sign of Hope e.V. is the private German executing agency and the contracting party, while Ethiopian Catholic Church Social and Development Commission – S piritan C ommunity O utreach E thiopia ( SCORE ) is the local implementing agency.
The project, “I mproving food security and resilience to climate change impacts of small farmers in Mirab Abaya, Southern Peoples, Nations and Nationalities Region, Ethiopia- (IFSRC)” will be implemented between 1 st Jan 2019 to 31 st December 2023. The project will ensure that the food security of disadvantaged smallholder families in the Mirab Abaya district of Ethiopia has improved. More specifically, the project will ensure that 368 vulnerable smallholder households with a population of 2944 people have built up year-round resilience to recurrent famine by using drought-resistant crops, alternative sources of income, rehabilitating land and improving water supplies. The project is being implemented by SCORE in close collaboration with local government officials in four prioritized Kebeles (Yaykie, Kolla Barenna, Fetele Doronje and Morede). Among others, the project will implement activities that will; increase the area under cultivation of 300 small farmers by instituting appropriate soil erosion control measures and promotion of water availability for irrigation within the targeted areas; Improve access to clean drinking water by target group; and increase business skills and strengthening of traditional forms of self-organization for 140 young adults and 300 women from food insecure households.
The purpose of the in-depth audit is to provide Hoffnungszeichen | Sign of Hope e.V. with a sound basis for its accountability, transparency and accuracy in the financial disclosure towards the funding agency BMZ.
This in-depth audit will verify the compliance with standards of the funding agency BMZ, Hoffnungszeichen | Sign of Hope e.V., national regulations and the international accounting standards.
The auditor will review the project’s financial documents, receipts lists, records of transactions, all vouchers and receipts disbursed, and relevant project documents in order to come up with a professional, independent opinion on the financial accounting of the project IFSRC for all funds received and expended by SCORE from 1 st January 2020 – 31 st December 2020 .
Additionally, the audit shall give recommendations on strengths, weaknesses, and required improvement in the project-related financial and human resources management systems of SCORE.
The audit will support the project quality assurance measures implemented by Hoffnungszeichen | Sign of Hope e.V. and contribute to the decision-making process with regard to the project management and monitoring of finances by Hoffnungszeichen | Sign of Hope e.V. and SCORE.
The auditor is expected to produce an audit report, an audit certificate and a management letter), which will comprise the following:
- Presentation of the scope and mandate of the audit, as well as the list of documents that formed the evidence for the audit,
- An opinion whether financial statements (statement of accounts) are issued in accordance with the financial reporting framework of the project, BMZ requirements and an internationally recognized accounting standard,
- Recommendations on identified shortcomings, and, if applicable, comments on the follow-up of audit observations and recommendations from previous years.
Audit documents can be issued in English or German. In exceptional cases, the audit is accepted in French or Spanish. In this case, the core statements, including identified shortcomings and recommendations, as well as concluding audit opinion should be translated into German.
Scope of the Audit
The audit should focus on the following:
- The correctness and completeness of the accounting records,
- The financial report, showing all project related income and expenditure structured by budget lines,
- Deviations of expenditure by budget lines. The expenditure, which exceeds or falls below the budget appropriations by more than 30%, shall be explained separately, if the approval of the BMZ has not previously been obtained,
- That receipts and relevant supporting documents are available for all project related income and expenditures,
- The management of the funds made available, which includes the transfer of project funds, all interest earned from the project funds during the reporting period and further income generated by the project,
- Reviewing the appropriate use of funds according to the project objectives,
- Evaluation of the efficiency and cost-effectiveness of the usage of funds,
- Budget adherence through the comparison between budgeted and actual costs in the currency in which the expenditure was incurred. The audit report will not convert the examined amounts into the Euro amounts,
- Reviewing if personnel costs and social security contributions conform to the regulations in the project country and are locally comparable,
- The economical use of the project equipment and assets,
- The inventory and the use of capital items, their whereabouts and their purposive usage,
- Compliance with the legal framework of the project (project agreements and annexes, contracts, etc.) and the donor requirements,
- Compliance with the policies of the local implementing partner regarding procurement, financial administration, human resources management and travel.
Procedures and Communication
The auditor will be given access to all necessary documents in the project offices through the local implementing partner SCORE as well as relevant donor documents through Hoffnungszeichen | Sign of Hope e.V.
The auditor will be responsible to set up a schedule in agreement with the local implementing partner SCORE. Any expenses for field trips, postal and translation services and other expenses shall be included in the auditor’s proposed budget and audit fee. There should be clear separation of budget details between logistical support and consultant’s fee. SCORE will support the auditor with logistics and arrangements, however, all payments of the contract will be made directly by Hoffnungszeichen | Sign of Hope e.V.
Qualifications and Experience
- Necessary qualification to serve as a recognized independent auditing authority,
- Minimum of five (5) years of experience conducting external independent audits of projects funded by international institutional donors in Ethiopia.
How to Apply
Please submit the following documents with “Annual Audit in Mirab Abaya, Ethiopia” to ECC-SDCO-SCORE, in person at SCORE Addis Ababa Office in Amist Killo (call +2510111544242/0944740460 for direction) or send by post to P.O.BOX 23 Arba Minch-Ethiopia or email scanned documents as one pdf file to [email protected] no later than 18 th December 2020:
- A financial proposal,
- A qualification certificate of a recognized independent auditing authority as confirmed by a relevant institution in Ethiopia (for example, a chamber of commerce, national association of auditors or another relevant organisation),
- A reference list of three previous customers
The selection of the auditor will be conducted jointly by SCORE and Hoffnungszeichen | Sign of Hope e.V.
- The Audit activity shall start on 28th of December 2020 and shall be complted on 31st January 2021.
- The location of the audit is home-based in Arba Minch with field mission travel to Mirab Abaya
- The total project budget is 586,049.33 Euro
- Female candidates are strongly encouraged to apply.