Healing Hands of Joy
Terms of Reference
External audit service for the year ended December 31,2020
Type of Organization
Healing Hands of Joy (HHoJ) is an international NGO working in Ethiopia since 2010 and is reregistered under Civil Society Organization Agency (CSOA). HHoJ’s aim is to help the rehabilitation and reintegration of Obstetric Fistula survivors through Safe Motherhood Ambassador Program, their rehabilitation, Prevention of obstetric fistula through community engagement and awareness creation and promotion of safe delivery, Identification of new fistula cases through trained Safe Motherhood ambassadors. Healing Hands of Joy works in three regions Mekele, Bahir Dar and Hawassa centres.
Our vision is to see new cases of obstetric fistula radically reduced with the goal of its elimination and to see fistula survivors empowered to successfully reintegrate as self-contributors to their communities and educators in safe delivery.
Our mission is to prevent fistula by training survivors as Safe Motherhood Ambassadors who provide education and access to safe delivery options for pregnant mothers. Rehabilitate fistula survivors with education, economic empowerment and counselling to transform their lives and support their social reintegration and Identify existing cases of obstetric fistula for treatment.
2. Audit objective
The purpose of the audit is to show that the procedures in the internal policies have been followed and that financial reports show, in the auditor’s opinion, a true and fair view and whether they are in agreement with the prime accounting records.
It is also intended to check and verify HHoJ expenditures and financial records are in line with the Charities and Societies Proclamation no. 1119/2019, related regulation and guidelines.
3. Year of audit – financial year to be audited
Our books of accounts are audited for the year ended December 31/2020. We therefore expect the upcoming auditors to conduct the audit for the period running from 01st January to 31st December 2020.To comply with Civil Society Organization Agency requirement, we also expect consolidated comprehensive final audit report for the same period.
The total expenditure of HHoJ’s operations for the financial year is around Ethiopian
Birr 18, 300.000 (Birr Eighteen million three hundred thousand) with total of 23 box files.
4. Roles and responsibilities of all parties concerned
It is the responsibility of the management of HHoJ to prepare and provide all documents for the purpose of the external audit.
The following are among documents that shall be provided for the Auditors to effectively carry out their assignment:
- Schedules e.g. Trial balance, Balance Sheet statements, Income and expenditure statement, fixed assets inventory etc.
- Bank statements and reconciliation documents
- Contract Agreements, Policies
- Civil Society Organization Agency and relevant guidelines and directives
- Any other relevant documents
It is the responsibility of the Auditors to report on HHoJ’s Program, whether in their opinion, the financial statements prepared give a true and fair view of the state of the program’s financial affairs at the balance sheet date and its income and expenditure account for the year ended in accordance with HHoJ financial reporting guidelines and the CSOA and relevant guidelines and directives. In arriving at the opinion, they shall also consider the following matters, and report:
- Whether proper books of accounts have been kept by the organization, from their examination of those books;
- Whether HHoJ’s financial statements are in agreement with the books of accounts and returns;
- Whether the financial statements, have been prepared in accordance with HHoJ’s Financial manual and
- Whether they have obtained all the information and explanations, to the best of their knowledge and belief, they consider necessary for the purpose of the audit
5.1 Statutory audit to meet country specific requirements
The audit will be conducted in accordance with international standards on Auditing and will include IPSAS such tests of transactions and of the existence. Auditors shall obtain an understanding of the accounting and internal control systems to the extent necessary in order to assess their examination adequately as a basis for the preparation of the financial statements and to establish whether HHoJ has maintained proper accounting records. The auditors are expected to obtain such appropriate evidence as considered sufficient to enable them to draw reasonable conclusions thereto. The audit shall include assessing the significant estimates and judgements made by HHoJ in the preparation of the financial statements and whether the accounting policies are appropriate to HHoJ’s circumstances, consistently applied and adequately disclosed. In forming their opinion they should also evaluate the overall presentation of information in the financial statements.
6. Contents of the Audit report
The audit report should be addressed to The Country Director and it should include:
- An opinion on truth and fairness of the financial statements and whether they are in agreement with the prime accounting records.
- An opinion on compliance on the Charities and Societies Agency proclamation and 30/70 expenditure and audit report guidelines as per their reporting requirements.
- A management letter including the risk matrix stating the impact as low, medium and high including comprehensive comments on the systems and controls in use with recommendations, in particular the following.
1. Maintenance of a fixed assets register.
2. Performance of monthly bank and cash reconciliations.
3. Authorization procedures for all expenses and payments.
4. Maintenance of the accounting system including all receipts and payments.
5. Appropriately detailed supporting documentation for payments, including allowances.
6. Controls over accounting for outstanding staff advances if any.
7. Budget monitoring procedures.
8. Over all compliance with HHoJ’s Finance Procedures Manual.
7. Tenure Conditionality
The appointment of the Auditor shall be for three years to be renewed every year based on performance.
For audit period that covers 01st of January to 31st of December 2017:
The commencement of the external audit will be 13th February 2021 is expected to span until 28th February 2021. The presentation of draft External Audit report by the Auditor and response by HHoJ management is to be finalized by 05th March 2021. Final Audit report incorporating HHoJ’s feedback should be received latest by 10th March 2021. The detailed time table will be attached as part of the contract.
Audit firms who have renewed license, work permit and registered in AABE and CSOA can send their document through our Po.Box.11272 A.A within five days after the date of advertisement on this newspaper attaching the necessary documents.
Only short listed applicants will be conducted.
HHoJ has the right to cancel this notice if necessarily without any precondition.