Tender for External Financial Audit Services

Caritas Czech Republic (CCR) is a non-governmental organization that provides development and humanitarian assistance in developing countries in Asia, Africa, the Middle East and Eastern Europe. CCR has been working in Georgia since 2008. It has dedicated its work to healthcare, social inclusion, rural development and agriculture and environment protection. To run its operations, CCR is supported by funds from different donors, giving it a significant obligation to make accountability and transparency its main priorities. For more information about the organization and its initiatives, please visit the following websites: Facebook page and Caritas Georgia website.

CCR announces the procurement of external financial audit services. The audit will be performed for the project with code name GE63 (“Upskilling digital competences and career management skills of disadvantaged youth in Georgia, Armenia and Moldova”), which is an EU-funded initiative aimed at improving the employability and entrepreneurship opportunities of vulnerable young people, including those with disabilities and NEETs (Not in Education, Employment, or Training), in these three countries. To achieve its objectives, the project implemented targeted measures to enhance digital and entrepreneurial skills among young people and strengthen career guidance services. The project focused on three key areas of action:

1. Strengthening existing employment support services by incorporating digital career guidance.
2. Building the capacity of civil society organizations working with vulnerable youth, including youth with disabilities, to support their continued efforts in improving young people’s digital competencies.
3. Promoting the participation of vulnerable youth in democratic and socio-economic life through awareness-raising activities, including addressing the risks of digitalization, cyberbullying, and disinformation.

The project activities were implemented across various regions in the target countries, including:

• Georgia: Adjara, Imereti, Samegrelo-Zemo Svaneti
• Armenia: Shirak, Lori, Tavush
• Moldova: Chisinau, Cahul, Ungheni

Terms of Reference:

Timeframe, place, maximum cost:

• External financial audit will be performed at CCR’s office in Prague;
• The audit must be performed between 17 March 2025 – 11 April 2025
• The report with the auditor’s statement should be finalized and sent to CCR by 18 April 2025 at the latest;
• The maximum cost of procured services is EUR 3 335.

Responsibilities:

• ‘The Auditor’ is responsible for performing the agreed-upon procedures specified in this instruction. ‘Auditor’ refers to the audit firm contracted to perform this engagement and submit a report of factual findings to CCR. ‘Auditor’ can refer to the person or persons conducting the verification, usually the engagement partner or other engagement team members. The engagement partner is the partner or other person in the audit firm responsible for the engagement and the report issued on behalf of the firm and who has the appropriate authority from a professional, legal or regulatory body.
• CCRis responsible for providing a financial report on the activities funded through the grant contract and ensuring proper accounting.
• CCR agrees to take all necessary steps to facilitate the auditor’s ability to perform the procedures required by this commitment and to give the auditors full and unconditional access to its staff, accounting records and other relevant documents**.**

By agreeing to this, the Auditor confirms that he/she meets at least one of the following conditions:

• The Auditor and/or the firm is a member of a national accounting or auditing body or institution which in turn is member of the International Federation of Accountants (IFAC).
• The Auditor and/or the firm is a member of a national accounting or auditing body or institution. Although this organisation is not member of the IFAC, the Auditor commits him/herself to undertake this engagement in accordance with the IFAC standards and ethics set out in these ToR.
• The Auditor and/or the firm 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 Auditor and/or the firm 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).

Purpose and scope of the audit:

• This audit mission relates to the whole project GE63 (EUR 315 537.39 in expenses).
• The subject of this engagement is the final Financial Report in connection with the Grant Contract covering the period from July 22, 2023 to January 22, 2025 and the action entitled Expenditure verification. The expenditure verification is an engagement to perform specific agreed-upon procedures concerning the Financial Report for the Grant Contract. The objective of this expenditure verification is for the Auditor to carry out the exact procedures listed in the annexesto the contract and to submit to CCR a report of factual findings about the specific verification procedures performed. Verification means that the Auditor examines the factual information in the Financial Report and compares it to the terms and conditions of the Grant Contract. As this engagement is not an assurance engagement, the Auditor does not provide an audit opinion and expresses no assurance.
• The Auditor verifies that the Financial Report complies with the following conditions of the Grant Contract:

1. The Financial Report conforms to the model in the annexe to the Grant Contract;
2. The Financial Report covers the eligible costs of the Action as a whole, regardless of which part of it is financed by the EU;
3. The accounts kept by CCR for the implementation of the Action are accurate and up to date;
4. The accounts and expenditures relating to the Action are easily identifiable and verifiable;
5. The budget in the Financial Report corresponds to the budget of the Grant Contract (authenticity and authorisation of the initial budget), and the expenditure incurred is indicated in the budget of the Grant Contract;
6. All goods and services purchased under the Project have been acquired in accordance with generally applied procurement and tenders’ procedures.

Standards and ethics:

The Auditor shall undertake this engagement in accordance with:

• the International Standard on Related Services (‘ISRS’) 4400 Engagements to perform Agreed-upon Procedures regarding Financial Information as promulgated by the IFAC;
• the IFAC Code of Ethics for Professional Accountants, developed and issued by IFAC’s International Ethics Standards Board for Accountants (IESBA), which establishes fundamental ethical principles for Auditors with regard to integrity, objectivity, independence, professional competence and due care, confidentiality, professional behaviour and technical standards. Although ISRS 4400 provides that independence is not a requirement for agreed-upon procedures engagements, the EC requires that the Auditor is independent from the Beneficiary and complies with the independence requirements of the IFAC Code of Ethics for Professional Accountants;
• strict ethical and professional rules, codes of conduct and principles. CCR applies a zero-tolerance to inaction policy regarding all forms of misconduct, including Sexual Exploitation, Abuse and Harassment.

The Auditor plans the work to perform an effective expenditure verification. The Auditor conducts the procedures listed in the annexes to the contract (‘Listing of specific procedures to be performed’) and applies the Guidelines for specific procedures to be performed. The evidence for performing the audit procedures is all financial and non-financial information, which makes it possible to examine the expenditure claimed by CCR in the Financial Report. The Auditor uses the evidence obtained from these procedures as the basis for the report of factual findings. The Auditor documents issues, which are essential in providing evidence to support the report of the factual conclusions and evidence that the work was carried out following ISRS 4400 and the contract. The report on the expenditure verification should describe the purpose, the agreed-upon procedures and the factual findings of the engagement in sufficient detail to enable CCR and EC to understand the nature and extent of

the procedures performed by the Auditor and the factual findings reported by the Auditor.

Both parties acknowledge and agree to comply with all applicable data protection laws, including but not limited to the General Data Protection Regulation (GDPR) (EU) 2016/679. The Auditor shall take all necessary steps to ensure the security and confidentiality of any personal data accessed, processed, or stored during the course of the audit. This includes implementing appropriate technical and organizational measures to prevent unauthorized access, loss, or disclosure of personal data. The Client shall ensure that any personal data provided to the Auditor is done so in compliance with relevant data protection laws and that appropriate consent, where required, has been obtained. Both parties shall cooperate fully in responding to any data subject requests or investigations by relevant authorities.

The Model Report for an Expenditure Verification of an EU Grant Contract must be included in the contract’s annexes. The auditor should provide this report to CCR.

The auditor should start the task according to the agreement signed.

A draft report should be presented to CCR HQ in Prague to give additional information or comments on the audit findings no later than 18 April 2025.

Important Note:

• Please note all scores will be calculated as following: qualification and previous experience – 50% and costs – 50%) proportionally;
• Bidders must pay specific attention to the calculation of the total cost;
• Advance payment is not recommended in the financial offer.

How to apply:

Potential service providers can submit the bid online at e-mail address [email protected]

• Please, send all documents in a zip or rar file, marked “GE63 audit bid” to ensure that all bids can be opened and assessed at the same time, the subject of the e-mail should be GE63 audit – submission of bid

CCR will evaluate the offers based on the fulfilment of all the requirements set out above and the cost of the procured services.

Tender package (Envelope or e-mail) should include:

• Application form, signed and stamped;
• Quotation Form;
• List of of similar assignments completed, with indication of the requestor, amount, description and duration of the assignment;
• CV(s) of Auditing Company/Auditor;
• Proof of registration with relevant professional authority, membership in relevant professional institutions;
• Bank account information.

[1] Directive 2006/43 of the European Parliament and of the Council of 147 May 2006 on statutory audits of annual accounts and consolidated, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253 EEC.