Somaliland Non-State Actors (NSA ) Project Audit

Make a difference, where it really counts

Project Audit
Location: Hargeysa, Somaliland
Name of the project Non-State Actors (NSA)

1. Background

Oxfam is implementing a European Commission funded project of “Empowerment of Somali Non State Actors” in partnership with local partner HAVOYOCO (Horn of Africa Voluntary Youth Committee) and SOLPAF (Somaliland Pastoral Forum). The overall objective of the project is to contribute towards poverty reduction by empowering NSA (Non State Actors) to influence fair allocation of public resources, respect for rights and entitlements. Specifically the project will; (a) Improve Somali NSA coordination and linkages for participatory planning, decision making and efficient service delivery, (b) Improve the ability, capacity and knowledge of Somali NSA to address policy formulation, lobbying & advocacy, civic education, gender mainstreaming and respect for human rights and (c) increase community awareness on roles and obligations in policy formulation, implementation and consequences on public service delivery.

The project target groups are the duty bearers, civil society and rights holders. Specifically Local Government Authorities (LGAs) in three regions, Community Based Pastoral Organisations (CBPOs) in those three regions (Galbeed, Togdheer and Sahil). Religious leaders, Civil society organizations (CSOs), representatives of special interest groups such as elders, sultans, youths, disabled, IDPs, women and pastoralists. The estimated total population of direct beneficiaries are 73,315 people. The final beneficiaries are estimated at 1.5 million people of indirect beneficiaries. Project Duration was 36 months from January 2010 to December 2012. This means the 36 month period of the project are ending now and therefore calls that a project audit to be conducted as part of the project’s initial design

2. Purpose of the Audit exercise

The purpose of the consultancy is to conduct the final audit of the 36 months EC funded Somali Non Sate Actors project implemented by Oxfam in partnership with a local partner HAVOYOCO & SOLPAF in three regions of Somaliland (Galbeed, Togdheer and Sahil)

3. Audit Objectives

The objective of this audit is to provide Oxfam GB an assurance of the under-mentioned:
• Establish the state of accounts and the extent to which developed systems have been used
• Ensure control over the EC funds, specifically the extent of compliance with EC contract requirements.
• Undertake the control framework operating in Somaliland, particularly the extent to which risks are assessed and appropriate and effective controls are in place to manage the risks

4. Scope of the audit

• The audit will cover all activities implemented by the Oxfam GB through partners HAVOYOCO and SOLPAF. The emphasis will be on contracts and financial control over EC funds. Where use is made of project partners, sub-contractors, and suppliers, the audit will review all existing in-house monitoring mechanisms and controls.
• The audit will comment on the impact and effectiveness of the programme, and determine whether the programme implementation process is in accordance with the terms and conditions of the contract signed with EC funds.

5. Audit approach and reporting

• The audit will review the programme's overall control framework especially those relating to the wider management of the programme and control over the EC funds. The detailed audit programme will be discussed with the Oxfam in Somaliland and agreed prior to the commencement of the fieldwork.

6. Detailed terms of reference

In order to provide comment on the effectiveness of the control framework, financial management, the audit will specifically cover:
• The financial and administrative support systems and processes made available to the programme and their utilization.
• The purchasing and logistics process, including warehousing, vehicle hiring and use, and overall stock management.
• Programme management, specifically accounting and budgetary control, project monitoring and reporting to donors, and whether there are any outstanding funds, liabilities or contingencies.
• The adequacy of the control framework and effectiveness of management and monitoring of Project Partners.

7. Financial controls were designed to demonstrate over the following terms

• Movement of funds
• Cash control
• Authorizations
• Bank accounts and reconciliation
• Purchase ledger
• Income and expenditure records
• Salaries
• Expenses

8. Eligibility of Costs

The Auditor verifies, for each expenditure item selected, the eligibility criteria set out below.
• Costs actually incurred
The Auditor verifies that the expenditure for a selected item was actually incurred. For this purpose the Auditor examines supporting documents (e.g. invoices, contracts) and proof of payment. The Auditor also examines proof of work done, goods received or services rendered and he/she verifies the existence of assets if applicable.
• Cut-off - Implementation period
The Auditor verifies that the expenditure for a selected item was incurred during the implementation period of the Action.
• Budget
The Auditor verifies that the expenditure for a selected item was indicated in the Action budget.
• Necessary
The Auditor verifies whether it is plausible that the expenditure for a selected item was necessary for the implementation of the Action and that it had to be incurred for the contracted activities of the Action by examining the nature of the expenditure with supporting documents. • Records
The Auditor verifies that expenditure for a selected item is recorded in the accounting system and was recorded in accordance with the applicable accounting standards of the country where the Beneficiary is established and the Beneficiary's usual cost accounting practices.
• Valuation
The Auditor verifies that the monetary value of a selected expenditure item agrees with underlying documents (e.g. invoices, salary statements) and that correct exchange rates are used where applicable.
• Classification
The Auditor examines the nature of the expenditure for a selected item and verifies that the expenditure item has been classified under the correct (sub) heading of the Financial Report.
• Compliance with Procurement, Nationality and Origin Rules
Where applicable the Auditor examines which procurement, nationality and origin rules apply for a certain expenditure (sub) heading, a class of expenditure items or an expenditure item. The Auditor verifies whether the expenditure was incurred in accordance with such rules by examining the underlying documents of the procurement and purchase process. Where the Auditor finds issues of non-compliance with procurement rules, he/she reports the nature of such events as well as their financial impact in terms of ineligible expenditure. When examining procurement documentation the Auditor takes into account the risk indicators listed in Annex 1 and he/she reports, if applicable, which of these indicators were found.

9. Reporting

The findings, initial conclusions and recommendations will be formally discussed with the Associate Country Direct, Programme Director, Finance manager and Funding coordinator in 4 weeks time from the date of signing the contract and a draft report will be left with them for their information.

A final report, with Oxfam management response to agreed actions, will be issued to the Programme Director -Somaliland, and copied to Finance Manager and Funding coordinator and Associate Country Director.

10. Timeframe

The consultant should come up a work plan detailing: a preliminary schedule for the major activities (preparation, fieldwork, report writing, feedback, etc.) of the audit and its final completion. The consultancy should start as soon as feasible in Dec 2012. The time required will be agreed between the consultant and Oxfam programme management, but not exceed 4 weeks. The agreed fees will be paid on satisfactory completion of the contracted tasks.

11. Key project Documents to refer during the audit exercise

• Project Proposal
• Oxfam and Donor contract
• Oxfam and partners contracts
• Risk Indicators Procurement

The Person Specification

The expert should have a recognized professional auditing certificate from an internationally recognised body (IIA, CA, ACCA, CIMA or equivalent).

Knowledge and Experience:
• A proven track record in the field with at least 10 years international experience in similar assignments;
• Demonstrated strong analytical, oral and written communication skills and commitment to meeting tight deadlines;
• Fluency in writing and speaking English.

How to apply:

This is an opportunity for an experienced and highly motivated professional, with a strong commitment to Oxfam's values and beliefs. If you believe you are the ideal candidate, please submit your application and CV in English detailing your experience for the post and include daytime telephone contacts tosomalilandjobs@oxfam.org.uk