TERMS OF REFERENCE OF THE ECCAS FINANCIAL AUDIT
November 4, 2020
THE ECCAS COMMISSION IS LOOKING FOR AN ACCOUNTING FIRM ACTING OFFICE OF AUDITOR FOR THE COMMUNITY BUDGETARY YEARS 2017, 2018, 2019 AND 8 MONTHS OF 2020
The auditor should:
- express an opinion on the sincerity and accuracy of the financial and management situation and of its accession under the terms of the Treaty establishing the Community, as well as the Financial Regulation;
- identify the weaknesses in the internal control of the financial and accounting system in place in order to issue relevant recommendations for their improvement.
- Scope of the audit
The audit will be carried out in accordance with international standards on auditing (ISA) and the rule of public accounting and will give rise to all the verifications and controls that the auditor may deem necessary in the circumstances. Among other things, the auditor will ensure the following:
- Review of financial statements; income statement, balance sheet, other financial statements. Determine that all resources have been used in accordance with the decision adopting the general budget of ECCAS for the year;
- The goods and services financed have been the subject of contracts awarded in accordance with the applicable provisions in force and have been properly recorded in the accounts of the Community;
- Verification of disbursement procedures, expenditure reserves, operations on accounts and supporting documents to certify that the Institution has followed the ECCAS procedure for the expenditure made;
- Physical inspection of purchased goods;
- Verification of the accuracy and eligibility of transactions made from the various accounts;
- Reconciliation of income and expenditure and the financing balance of Member States;
- Confirmation that funds from own sources from member states have not been merged with those from other donors;
- The accounts of ECCAS were prepared on the basis of the systematic application of international accounting standards and give a reliable picture of the financial situation of ECCAS carried out during the financial year ended on that date.
- ECCAS financial statements
The financial statements of ECCAS should include:
- A statement of resources (funds received from Member States) and uses (expenditure incurred during the year in question; the latter being presented by major headings and by major categories);
- A financial situation indicating the cumulative funds of ECCAS, bank balances, other ECCAS activities and commitments, if applicable;
- Notes to the financial statements showing the accounting principles used and presenting a detailed and explanatory analysis of the main accounts.
- Special accounts
The auditor is required to verify, in addition to the financial statements, the movements of funds on any related special accounts (of development partners) and to prepare the reconciliation statements. The special accounts cover:
- Deposits and replenishments operated by banks;
- The interest which the balance may yield and which accrues to the beneficiary;
- The balances at the end of each fiscal year.
The auditor must form an opinion on compliance with applicable procedures and on the balances of special accounts in exercise; It must seek to establish, whether the financial transactions carried out during the period considered as well as the balances at the end of this period were admissible and correct, to verify whether the special accounts have been managed and used in accordance with the agreement offinancing and whether the internal control applicable to this mode of disbursement is adequate.
- Internal control system
The auditor is required to carry out a thorough examination of the internal control system. The purpose of this examination is to obtain a sufficient understanding of the rules of procedure of the internal control system, including the procedure manuals (administrative, accounting, financial and budgetary management) and to verify that these rules and procedures are adequate and reliable, implemented, and function properly and meet generally accepted standards. The conclusions of this examination will be recorded in a separate report, for the attention of the ECCAS bodies in which it will report on all the weaknesses and other possible failures of the system, and will assess the risks linked to the failures of internal controls. The auditor will make practical and pertinent recommendations for its improvement.
The Direction letter will cover and not be limited to:
- Comments and observations on the accounting records, systems and controls examined during the audit;
- Specific weaknesses and weaknesses in systems and controls and present recommendations for their improvement;
- Degrees of compliance with each of the clauses of the financial regulations and the manual of procedures;
- Questions which will have drawn its attention during the audit because they could have a significant effect on the administrative and financial execution of ECCAS.
- Auditor’s Reports
The auditor is required to present a general audit report and a report on internal control:
- The general audit report will contain:
- The professional opinion of the auditors on the financial statements of ECCAS, the financial statements themselves, and the notes on the financial statements;
- The separate opinion on the expenditure financial statements relating to the accuracy and eligibility of the expenditure giving rise to the withdrawals in view of the expenditure statement, as well as the degree of reliability of the expenditure statements as the basis for disbursement of Community funds;
- Separate opinion on special accounts relating to their rational use.
- The reports on internal control must (Management letter) take account of all the weaknesses of the accounting system and internal control (if the funds have been managed in accordance with the provisions prescribed in the financial regulations, if the purchases have been made in accordance with the with procurement procedures); assess the risks associated with these failures and formulate relevant and practical recommendations with an implementation schedule. The audit report and the report on internal control should reach ECCAS no later than six (6) months following the end of the fiscal year to which the audit relates. The auditor should present the Report in multiple copies (10).
- General points
The auditor should have access to all legal documents, evaluation reports, supervision reports, correspondence and other information related to the management of ECCAS and deemed necessary by the auditor.
- Contract length
For a period of (02) non-renewable years
Curriculum Vitae (CV) as well as the firm’s references must be attached to the submission
Applications should be sent to the following address: firstname.lastname@example.org