1. BACKGROUND

The Branch of the Aga Khan Agency for Habitat in the Republic of Tajikistan, works to ensure that people live in physical settings that are as safe as possible from the effects of natural disasters, that residents who do live in such high risk areas are able to cope with disasters in terms of preparedness and response, and that these settings provide access to social and financial services that lead to greater opportunities and a better quality of life. AKAH merges the activities of the Aga Khan Planning and Building Services (AKPBS), with its prize-winning water and sanitation programmes and low-cost habitat products, such as smoke-free stoves; the humanitarian arm of AKDN, FOCUS, which promotes disaster mitigation and resiliency and intervenes after disasters; the AKDN’s Disaster Risk Management Initiative (DRMI), which focuses on disaster preparedness in remote areas; and the environment- and habitat-related activities of the Aga Khan Foundation, including the Prince Sadruddin Fund for the Environment.

2. AUDIT OBJECTIVES

The overall audit objective is to provide the AKAH Tajikistan with reasonable assurances that the funds provided have been used for the intended purposes and in accordance with the generally accepted accounting policies and requirements set out by the Donors and AKAH Tajikistan.

The auditors shall express an independent professional opinion as to whether the financial statements present fairly, in all material respects and in accordance with the International Financial Reporting Standards (IFRS) and UK GAAP.

The audit shall be carried out in accordance with the International Standards on Auditing (ISAs) as issued by the International Federation of Accountants (IFAC) and UK GAAP.

Audit Scope

The audit will cover the financial year ending 31st December 2021 and will be engaged for a period of three years.

Services will be provided in compliance with the International Standards on Auditing (hereinafter “ISA”). According to these standards Audit has to be planned and performed to obtain reasonable assurance about whether the financial statements are free of material misstatements. However, because of the characteristics of irregularities, particularly those involving forgery and collusion, a properly designed and executed audit may not detect such items. Therefore, an audit conducted in accordance with the ISA is designed to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatements.

The Audit Opinion on the financial statements will be based on the results and conclusions obtained by the completion of Audit and will contain an opinion whether Company’s financial statements in all material respects, prepared in accordance with IFRS and UK GAAP. The exact wording in Audit opinion will be dependent on the results of testing and audit procedures, which the Auditor performs, and the facts and circumstances at the date of the Audit opinion. Volume of such testing and procedures to be solely determined as the Auditor deems appropriate in the circumstances.

The scope shall include on a test basis with a reasonable sample size the following of each:

• Examination of financial statements for accuracy, correctness, and comprehensiveness, prepared based on the accounting records maintained by respective agencies;
• Check and verify whether the appropriate supporting documents, records and books of accounts relating to respective agencies activities have been kept and whether these documents clearly relate to the activities they were assigned for;
• Evaluation if the adequate and strong internal control system is in place;
• Check and verify if the compliance with laws, regulations and other external requirements, management policies and directives and other internal requirements are followed;
• System review;
• Review the fixed assets register to ensure it includes all entries of assets up to the date of audit for the year ended.

While the test is carried out, the vigilance for possibilities for any fraud or doubt should be reviewed too.

Recommendations for the area where improvement is required shall be issued.

Expected Output

The Branch of Aga Khan Agency for Habitat in Tajikistan expects the auditors to issue an opinion on whether:

• The Assets of the respective agencies are well safeguarded;
• Income and Expenditures are accounted for;
• Expenditure was incurred in accordance with the funding terms and conditions;
• The status of audits reflects the correct position as of 31 December 2021;
• The transactions were in accordance with the relevant legislative authority including the organization’s financial regulations and rules in all material aspects;
• Internal control system efficiency and effectiveness report, with recommendations, if any;
• Systems review report with recommendations, if any;
• A confidential report to the respective agencies CEO/GM on any possible irregularities or frauds.

In addition, the auditors should issue a management letter containing significant audit observations and recommendations, if any. The management letter shall include the following key elements:

·       The overall assessment of the internal control system and the financial operations in line with the audit objective and scope;

·       Detailed observation and related recommendations;

·       Management comments provided by the management of the findings and recommendations.

Quality of Audit staff

The Branch of Aga Khan Agency for Habitat are very particular about the quality of staff sent for its audits and therefore would prefer staff with appropriate qualifications and or experience.

• The most senior member should have at least seven years of experience with NGOs and/or developing agencies and should hold at least a CAP certificate;
• The support staff should have at least two to three years’ experience and preferably with NGOs and/or developing agencies;
• Field teams should include at least one senior staff.

Audit Timing

• The audit is normally expected to take place around the first week of February; all fieldwork must be completed by the field audit staff before leaving our office;
• The first draft will be expected within 15 days from departing our office;
• The final draft is expected in by 15th of March and the finalized signed audit statements are expected latest by the end of March 2022;

Audit Fee

• The offer should reflect the fee with VAT cost outlined;
• The audit team travel cost and other out of pocket expenses must be reflected in the final cost offered;
• Discount offers, if any, should be indicated separately.

Other terms

Interested Audit companies should be officially recognized by International Donors and have all documents required by Local Law (license). The offers, with the details of the staff assigned, should be sent in the sealed envelopes to Chief Finance Officer, the Branch of Aga Khan Agency for Habitat in Tajikistan on the following address:

34 Rudaki Avenue, 734003

Tcell Building 10^th floor

The Branch of Aga Khan Agency for Habitat in Tajikistan

e-mail to [email protected]; [email protected]

The deadline for submission of the proposals is 30 November 2021.