DEADLINE: 15TH FEBRUARY, 2025
TEARFUND
REQUEST FOR QUOTATION FOR EXTERNAL AUDIT SERVICES
Any contract formed with a consultant/freelancer will be based on Tearfund’s standard terms and conditions.
OVERVIEW
Project title: FROM TRASH TO CASH: TURNING PLASTIC INTO ECONOMIC OPPORTUNITY.
1. Background of the project and rationale for the auditing
Tearfund is a Christian Charity working globally to see people freed from poverty, living transformed lives and reaching their potential. We tackle poverty and injustice through sustainable development, by responding to disasters and challenging injustice.
Tearfund has four main focuses:
a. Meeting emergency needs:
We respond quickly to meet immediate needs when crises and disasters hit vulnerable communities.
b. Mobilizing churches:
We envision, empower and equip churches to play their part in the development and transformation of their communities.
c. Transforming communities:
We support communities to become resilient to shocks and stresses and work towards a better future for themselves and others.
d. Changing society:
We seek to Influence and change social, political, and economic systems and policies so that the poorest communities can get the services and opportunities they need to thrive.
Since January 2020, Tearfund has been implementing the project ‘From Trash to Cash: turning plastic pollution into economic opportunity’. It was designed to reduce the amount of plastic waste from land-based activities entering the ocean, whilst at the same time improving livelihoods and creating green job opportunities for vulnerable communities, thereby contributing to the achievement of SDG 14.1.
The project is doing this at a global level by strengthening partnerships between the private sector and the informal waste sector and at a grassroots level in Yola, Adamawa state, Nigeria by establishing a sustainable social enterprise that will collect and recycle plastic waste in vulnerable riverside communities, working through a local youth-led organization, Yola Renewal Foundation (YRF).
The expected project impact is that Plastic waste from land-based activities entering the ocean is prevented and reduced, and livelihoods are improved. (Contributing to the achievement of SDG 14.1). There are 4 project outcomes:
- Outcome 1: Increased management of plastic waste/plastic collection and recycling and improved livelihood in Yola, Nigeria, through a social enterprise.
- Outcome 2: Communities in five vulnerable riverbank communities in Yola, Nigeria have awareness of negative consequences of dumping plastic waste and are recycling their plastic waste.
- Outcome 3: Principles for partnerships formally adopted and implemented globally between the informal waste sector and the private sector.
- Outcome 4: Guiding principles incorporated for partnership between the informal waste sector and the private sector globally and as part of mandatory EPR in Adamawa State, Nigeria.
- Outcome 1, 2 and elements of outcome 4 are relevant for the aspects of the project being implemented in Nigeria. Outcome 3, and the remaining elements of outcome 4, relate to the Global Advocacy elements of the project.
The project has been primarily funded by the Norwegian Agency for Development Cooperation (Norad), supplemented by Tearfund co-funding. The project was originally set to be implemented over 3 years for October 2020, ending in December 2023, however, it has continued into a fourth year (Jan – Dec 2024) for two main reasons:
a. The Global advocacy elements of the project were granted an 13-month cost extension from Jan-24-June 25 (with an additional budget of NOK 7,569,410)
b. The Nigeria aspect of the project had significant underspends at the end of Dec 2023 due to significant delays in the social enterprise becoming operational. Norad allowed the team in Nigeria to continue operations using the underspend available.
2. Purpose of the Audit
The purpose of the external audit is to provide an independent and objective assessment of the financial records and management practices of the Tearfund Trash to Cash project for the accounting period ending on the 31st Dec 2024. It aims to ensure that funds have been utilized in accordance with the donor agreement and applicable financial regulations while identifying any areas of risk or non-compliance. The audit will support transparency, accountability, and good governance by verifying financial accuracy and providing recommendations strengthening financial controls where necessary.
3. Goal and objectives
The primary objectives of the audit are to:
a. Verify if the financial statements present a true and fair view of the project’s financial position.
b. Assess if the financial statements have been prepared, in all materials respect, in accordance with the accounting principles followed by Tearfund and the requirements of Article 3 clause 2 of the General Conditions of the Norad Grant Agreement for project QZA-20/0114, ‘Form trash to Cash’ project.
c. Ensure that project finds have been used in accordance with the terms of the Norad grant funding agreement.
d. Assess compliance with relevant financial and procurement policies, donor regulations, and local laws.
e. Identify any irregularities, weakness, or risks in financial management and provide recommendations for improvement.
4. Responsibilities of the auditor
The auditor of the Project’s consolidated financial statement is responsible for the direction, supervision and performance of the audit of any part of the Grant that has been transferred to a cooperating partner. The auditor shall assure itself that those performing the audit for cooperating partners have the appropriate qualifications, that the audit is in compliance with professional standards, and that the audit report is appropriate under the circumstances.
The auditor shall express an opinion on whether the statement is prepared, in all material respects, in accordance with the requirements of the Norad and Tearfund Grant Agreement QZA-20/0114. To this end, the auditor shall obtain sufficient appropriate audit evidence regarding the financial statements of the cooperating partner and the consolidation process.
5. Scope of work
The audit will cover the period from 1st January 2024 to 31st December 2024 and will include but not limited to:
a. Reviewing financial statements, including income and expenditure records.
b. Examining supporting documentation for transactions (invoices, receipts, bank statements, contracts, payroll, etc.).
c. Verifying the accuracy of transactions, asset registers, supporting documents and account balances.
d. Assessing internal controls and financial management systems. This includes assessing the risk of material misstatement in the financial statements and management of resources.
e. Reviewing compliance with procurement procedures and expenditure eligibility.
f. Identifying and reporting any ineligible expenditures or misstatements.
g. Evaluating compliance with tax obligations relevant statutory requirements.
The audit review transactions from across the whole project i.e. including both the Global and Nigeria aspects of the project. It should also include any funds that have been transferred to the local partner in Nigeria, YRF, and the social enterprise, and co-funding from the region. Please note that the expenditure in 2024 was split 67% on the Global advocacy work and 33% on the Nigeria aspects of the project and the audit should reflect this split.
6. Location
The consultant of the audit will spend a significant portion of the audit in Abuja and Field visit to Yola (the hub).
7. Audit Standards
The audit will be conducted in accordance with internationally accepted auditing standards such as:
a. International Standards on Auditing (ISA). The auditor shall comply with all ISAs relevant to the audit, ref.ISA200 (Overall objectives of the independent auditor and the conduct of an audit in accordance with international standards on auditing), paragraphs 18 and 20. Of particular relevant is ISA240 (The Auditor’s responsibility to consider Fraud and Error in an Audit of Financial Statements), and ISA800 (“Special Considerations audits of single financial statements and specific elements, accounts or items of a financial statement”).
b. International Public Sector Accounting Standards (IPSAS) (if applicable).
c. [Any other donor-specific or national auditing standards].
8. Deliverables
The auditor will be expected to deliver the following:
1. A draft audit report for review and discussion.
2. A final audit report detailing findings, conclusions, and recommendations. The audit report shall include:
a. The project name and agreement number;
b. Identification of the Project’s total expenses and total income;
c. The subject of the audit;
d. The financial reporting framework applied;
e. The auditing standards applied;
f. A statement that the auditor has obtained reasonable assurance about whether the financial statements as a whole are free from material misstatement;
g. The auditor’s opinion
3. A management letter (matters for governance attention) which shall contain any findings made during the audit of the project. It shall highlight internal control weaknesses and corrective actions required as well as list any measures that have been taken as a result of previous audits and whether such measures have been adequate to deal with reported shortcomings.
4. Any other relevant documentation required by the donor or organization.
9. Auditor Qualifications
The audit shall be carried out by an independent chartered/certified accountant (auditor) and the firm must:
a. Be a registered, licensed, and reputable audit firm with experience in auditing donor-funded projects.
b. Have expertise in international financial reporting and auditing standards.
c. Demonstrate knowledge of financial regulations in the UK and Nigeria and donor compliance requirements.
d. Assign a qualified lead auditor with a minimum of 7 years of relevant experience.
10. Reporting and communication
The auditor will report to the Tearfund West Africa Senior Business Finance Partner (WA SFBP) and provide periodic updates. Meetings may be scheduled to discuss preliminary findings before the final report is issued.
11. Submission of Proposals
Interested audit firms should submit a proposal including:
a. A company profile detailing experience with similar audits.
b. CV of key personnel to be assigned to the audit.
c. A detailed financial proposal including fees and estimated costs.
d. References from recent similar assignments.
Quotations should be submitted on or before the 15th February, 2025 to: nigeria.quotations@tearfund.org and copy levi.ezekiel@tearfund.org
