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Tenders are invited for Selection of Audit Firm for Financial Audit of Youth for Cambodia (YFC) and Church-Based Community Development (CBCD) Projects project financial audit of Youth for Cambodia (YFC), and Church-Based Community Development (CBCD) projects (Project Codes: 52422 & 52460) (For the financial year 2025/2026, covering the period from 1 July 2025 to 30 June 2026) OBJECTIVE OF THE PROJECT AUDIT The objective of the audit: a) To enable the auditor to express a professional opinion(s) on the project financial statement (PFS) at the end of each fiscal year. b) To enable the auditor to express a professional opinion(s) on whether funds received and expenditures incurred were 100% utilized for the purpose of the project per Project Agreement(s) (PA) and Project Activity Budget(s) (PAB) during the relevant accounting period(s). c) Perform compliance and performance audit per the PA and PAB. d) To assess the adequacy of the implementing partners internal controls and supporting documentation for all project transactions. The project books of account provide the basis for preparation of the PFSs by the implementing partner and are established to reflect the financial transactions in respect of the project and have been prepared in accordance with International Accounting Standards (IAS). 3. SCOPE OF THE AUDIT The auditor shall carry out the audit in accordance with International Standards on Auditing (ISA). In the context of a 5-year CBCD project and a 3 Year YFC project, the auditor must pay specific attention to: a. Cumulative Expenditure & Continuity: As this is an annual audit within a 5-year and 3-year cycle, the auditor must verify that opening balances match the previous years audited closing balances. A "Cumulative Statement of Sources and Uses of Funds" must be reviewed to ensure long-term budget adherence. b. Currency & Forex Compliance: Verify that all funds received in foreign currency were converted to USD through authorized channels in compliance with National Banking regulations. The auditor must test the exchange rates applied to ensure no "hidden" losses or gains occurred outside the projects benefit. Any gains or losses on foreign exchange must be clearly disclosed." c. Project Acquittal: The auditor must perform a project acquittal review to verify that funds reported as spent have been used for approved project purposes, in accordance with the Project Agreement, Project Activity Budget, approved activity plans, donor requirements, and applicable laws and regulations. d. The "Last Mile" Beneficiary Test: Beyond checking receipts, the auditor must perform Physical Verification. The auditor shall conduct direct field visits to a sample of project sites to interview beneficiaries and verify the actual receipt of goods/services. This should include a review of beneficiary distribution lists against physical IDs or thumbprints. The last mile verification sample for spot checks on beneficiary lists (verifying that the people listed as receiving items/funds actually exist and received the support) must cover a minimum of 70% of the top expenditure activities selected for field verification, while also including, where practicable, a spread across different types of project activities and interventions. Mandatory for projects in "High-Risk" jurisdictions because paper receipts are easily forged. Direct Distributions: If you are giving away cash, seeds, or tools, the auditor must prove the item reached the human hand it was intended for. Large Infrastructure: For community wells or clinics, the auditor must physically stand at the site to prove the asset exists. o Optional for Low-Risk projects. Capacity Building: If a grant is for "Training" physical verification is harder and often replaced by sign-in sheets and photos. o Small Grants: For small amounts (e.g., <$20,000), the cost of sending an auditor to a remote village often exceeds the risk, stick to "Desktop Audits." e. Verify compliance with (80/20) operational vs. administrative costs as per BWA guidelines. f. Asset Life-Cycle: For assets procured in earlier years of the 5-year term, the auditor should verify they are still in the possession of the project, properly tagged, and havent been diverted to the partners general operations. g. Procurement Integrity: Ensure that the "Value for Money" (VfM) principle was applied. The auditor should look for "split-invoicing" (breaking large purchases into small ones to avoid competitive bidding) and ensure all local vendors bona-fide, registered and tax-compliant. h. Project funds (including counterpart funding where BWAA is not the only funding partner) has been used in accordance with the funding conditions of the PA, with due attention to economy and efficiency, and only for the purposes for which the funds were provided. i. Goods, works and services financed have been procured according to appropriate procedures including any specific provision in PA. j. All necessary supporting documents, records, and accounts have been maintained in respect of all project activities, including expenditures reported using Statements of Expenditure (SOE) or Interim Unaudited Financial Statements (IFS) methods of reporting. The auditor is expected to verify that quarterly or other regular finance reports issued to BWAA during the period were in agreement with the underlying books of account; k. Designated and restricted Accounts or (designated bank accounts if used) have been maintained in accordance with the provisions of the relevant financing agreements, and funds disbursed out of the Accounts were used only for the purpose intended in the PA, and funds have not been moved around (temporarily or permanently) to other accounts or for other purposes. l. Assurance on the whole Procurement to payment process and procedures identifying lapses and non-compliance, value for money principles applied on costs, identifying questionable costs. m. Project Sustainability & Statutory Compliance: Verify that the partner has maintained a valid Charities and Societies Agency or relevant registration throughout the audit period. n. National (including local provincial, state, and other relevant regional) laws and regulations have been complied with, including relevant business or tax registrations, certificates to operate, with particular attention to Payroll related compliances (withholding taxes, insurances, social security, retirement fund, gratuity and other labor law related compliances) Payroll related liabilities owed to the Internal Revenue Service or Tax Office. We expect to see these liabilities schedules of owings and payments, highlighting due and outstanding payments for each financial year under audit. o. All payments to staff are verified to be approved for the purpose of the project per PAB and PA, with sufficient evidence of receipts and expenditure, and these payments include: Staff salaries Travel Advances in Cash of in-kind Other Advances to staf Tender Link : https://www.bongthom.com/job_list.html?category_id=55&order_by=start_date&order_dir=desc
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