TERMS OF REFERENCE
- PROGRAM DESCRIPTION
Caritas Australia is the Catholic agency for International Aid and Development. Caritas Australia works with international partners in addressing the causes of poverty in order to bring about long-term change. Caritas Australia supports programs for human development and self-reliance. These include improving health, overcoming illiteracy, reducing environmental damage, conserving cultural identity and providing training for better agricultural practices. Caritas Australia belongs to the international network Caritas Internationalis which is one of the largest aids and development agencies in the world and comprises a network of 165 Catholic relief aid, development and social service organisations working to build a better world, especially for the poor and oppressed, in over 200 countries and territories.
Caritas Australia supports Integrated Community Development projects in Malawi through the A+ Integrated Community Development Program. A+ is coordinated through CADECOM (Catholic Development Commission in Malawi – Caritas Malawi) with activities implemented in the Dioceses of Karonga, Mzuzu, Lilongwe and Blantyre. This program has completed its 6th year of implementation on 30 June 2022 – and will continue for one more year before closure. This program is jointly funded by the Australian Government’s Department of Foreign Affairs and Trade (DFAT) through its Australian NGO Cooperation Program (ANCP) and Caritas Australia’s own institution funds. These projects are aimed at improving the livelihoods of marginalised rural communities.
Caritas Australia has also assisted Malawi for Malawi Innovating Optimizing Farm Incomes Project (July 2021-30/06/2022) and Cyclone ANA Disaster Response Project (February – April 2022).
These Terms of Reference may be revised or amended during the audit with the agreement of Caritas Australia and the contracted auditor.
- SCOPE OF SERVICES
- The Audit Firm ‘The Auditor’ will provide Financial Assurance and Audit Services based on Agreed Upon Procedures for and on behalf of Caritas Australia by reviewing the financial transactions undertaken through CADECOM for all operational and program related activities, and a review of the underlying systems, key policies and processes of This audit should provide assurance of the information included in the performance and funding acquittal reports submitted to Caritas Australia by CADECOM. The Auditor will provide Caritas Australia with a Special Purpose Financial Statement and a Management Letter outlining the audit findings and recommendations to address any issues identified.
- The Financial Period to be completed shall be 1st July 2021 – 30th June 2022.
- The budget for this program is as follows:
- A+ Malawi (Year 6 Project): 576,764.32 AUD
- Cyclone ANA Disaster Response Project: 58,419.57 AUD.
- Malawi Innovating Optimizing Farm Incomes Project: 100,000.00 AUD
- The Auditor will be required to work to the standards and guidelines set out by the Government of Malawi. In addition, the work of the Auditor must fully adhere to the standards and guidelines of the professional practice of financial audit as set out by the International Federation of Accountants (IFAC), and International Financial Reporting Standards.
- The audit requires the examination and report on the compliance to sound financial management practices, with regard to the following but not limited to:
- whether the partner has applied sound financial management practises including accounting systems with associated internal controls;
- whether the financial transactions reflected in the reports are inaccordance with financial regulations and procedures, budgetary provisions and other applicable directives
- whether the partner has substantials funds to manage during the pandemic, in lieu, of the funding from Caritas Australia
- whether the financial transactions recorded have supporting documentation
- whether the finance system is maintained accurately and is adequate for the operational purpose or the organisation
- whether program reports submitted to Caritas Australia represent adequate and accurate disclosure of income and expenditure information to enable monitoring and final determination
- whether bank reconciliation including accounting for tranche payments is complete and accurate, and completed on a monthly basis with proper authorisation and verification
- whether internal policies exist and compliance to policy is evident in the application of the operational transactions
- whether internal controls support a sound financial management framework
- whether the balance sheet accounts are reconciled monthly and provide a true representation of the financial health of the partner
- whether any taxes that are due and statutory payments are made in a timely manner in accordance with the local regulations
- whether the assets register is accurately maintained and reflects the fair value of all assets
- Any other tasks that the Auditor deems necessary to complete the assurance process.
- Period of Contract
The period is to be no more than agreed number of days as per the engagement letter – from the start of the audit to the final report compilation and submission to management.
- Location of Audit
The audit will be conducted at the offices of CADECOM (however depending on Covid-19 lockdown requirements it could be done remotely). For the purpose of the audit, the Auditor will consult with the Caritas Australia Program Coordinator, Finance Officer and other staff members of CADECOM.
- REPORTING
All audit reports (including management letters) will be submitted to Caritas Australia and signed by the Auditor. The Auditor will also submit to Caritas Australia copies of the audit reports (including management letters) signed by the Auditor.
The Auditor will submit financial reports for the financial year to Caritas Australia upon completion of the audit and will include comments on the quality of financial management of the program and any implications including recommendations for improvement;
The draft report will be submitted to Caritas Australia within ten working days of completion of the audit.
An authorised officer of Caritas Australia will review the draft and provide any comments within 10 days of receiving the draft report.
On receipt of the response from Caritas Australia, the Auditor will finalise and submit the final report to Caritas Australia within ten working days. The final report will include comments on the quality of financial management of the program, any implications and clear recommendations for improvement in the financial management of the program. In addition to the audit report the Auditor shall provide, directly to the Caritas Australia representative based in Australia, a confidential letter that highlights any issues that may have arisen from the audit and recommendations.
All reports or documentations produced both electronically or printed during the course of or as a consequence of the contract will remain the property of Caritas Australia.
- WRITTEN SUBMISSIONS
Expression of Interest detailing the Scope of Services and a fee quotation must be submitted to Caritas Australia by close of business Friday, 8 July, 2022.
Expressions of interest should be sent by email to: praphulla@caritas.org.au or richardf@caritas.org.au