ტექნიკური დავალება გარე აუდიტზე საქართველოს მწვანეთა მოძრაობა/დედამიწის მეგობრები საქართველოს კომპონენტზე პროექტის დავიცვათ საქართველოს სისუფთავე 2019-2020;2020-2021 წლებზე2020.06.27
The Greens Movement of Georgia/Friends of the Earth - Georgia (GMG/FoE-Georgia) is an organization aiming to protect the environment, human and ethno-cultural surroundings according to the principles of sustainable development. According to statues, GMG/FoE-Geogria’s main mission is to control rational consumption of natural resources and stop degradation of nature, to protect human and society right protection and their involvement in decision making, to protect and sustain cultural heritage and to participate in humanity's efforts against negative changes in the world.
GMG/FoE-Georgia is a democratic, non-profit grassroots organization established in 1989, that deals with a broad range of environmental issues. The organization implements its mission through campaigns and practical activities, public information and involvement, policy making and lobbying.
The Greens Movement of Georgia/Friends of the Earth - Georgia (GMG/FoE-G) has received the grant from “Keep Georgia Tidy” towards the project “Keep Georgia Tidy”(SIDA Contribution No:13312). Since 1 July 2019 (GMG/FoE-G implements the component of the project Keep Georgia Tidy). Duration of the project is 47 months (2019-2023), Contribution No: 13312-GMG/FoE-G.
The Greens Movement of Georgia/Friends of the Earth Georgia (GMG/FoE-G) wishes to engage the services of an audit firm for the purpose of auditing the programme Keep Georgia Tidy (Sida Contribution No:13312), as stipulated in the agreement between Greens Movement of Georgia/Friends of the Earth Georgia (GMG/FoE-G) and Keep Georgia Tidy. The audit shall be carried out in accordance with international audit standards issued by IAASB. The audit shall be carried out by an external, independent and qualified auditor.
I. Objectives and scope of the audit
The objective is to audit the Financial report for the period July 1, 2019 to June 30, 2020; July 1, 2020 to June 30, 2021, as submitted to Keep Georgia Tidy and to express an audit opinion according to ISA 800/805 on whether the financial report of GMG/FoE-G is in accordance with “Keep Georgia Tidy ”instruction for financial reporting as stipulated in the agreement including Annex D between “Keep Georgia Tidy ” and GMG/FoE-G.
II. Additional assignment; according to agreed upon procedures ISRS 4400, review the following areas in accordance with the Terms of Reference below
· Follow up whether salary costs debited to the project/programme are recorded throughout the duration of the year in a systemized way and examine whether the salary costs can be verified by sufficient supporting documentation.
· Examine whether the financial report includes a comparison, for every budget item, between the actual costs/expenditures of activities and the budgeted costs/expenditures as approved by Keep Georgia Tidy for the period.
· Based on materiality and risk the auditor shall examine whether there is supporting documentation related to incurred costs. Regardless of materiality of the findings the auditor shall quantify the amount for costs lacking sufficient supporting documentation.
· Examine whether foreign exchange gains/losses are disclosed as a separate item in the financial report as well as disclosed in accordance with what is stipulated in the agreement including appendices and generally accepted accounting principles.
· GMG/FoE-G is in compliance with the applicable tax legislation in regard to taxes (e.g.PAYE) and social security fees.
· Follow up whether GMG/FoE-G has adhered to the procurement guidelines annexed or referred to in the agreement.
· Review if outgoing balance for previous period is the same as incoming balance for the current period.
· If GMG/FoE-G applies modified cash basis as accounting principle, the auditor shall describe used method and motivate whether the applied accounting principle is acceptable for this type of financial report.
· Verify the unspent balance at the end of the financial year against accounting records and its supporting documentation.
· Verify the unspent balance that shall be repaid to Keep Georgia Tidy in the final report of the last agreement year. (Only applicable in the final report of the last agreement year)
III. The Reporting
The reporting shall be signed by the responsible auditor (not just the audit firm) and shall include the title of the responsible auditor. The reporting from the auditor shall include an independent auditor’s report in accordance with the format in standard ISA 800/805 and the auditor’s opinion shall be clearly stated. The independent auditor’s report shall clearly stipulate that the audit has been conducted in accordance with ISA 800/805. The reporting shall also include a Management letter that discloses all audit findings (significant and other findings), as well as weaknesses identified during the audit process. The financial report that has been subject of the audit shall be attached to the audit reporting. The auditor shall make recommendations to address the identified findings and weaknesses. The recommendations shall be presented in priority order.
If the auditor assesses that no findings or weaknesses have been identified during the audit that would result in a Management Letter, an explanation of this assessment must be disclosed in the audit reporting.
Measures taken by the organization to address weaknesses identified in previous audits shall also be presented in the Management Letter.
The additional assignment according to agreed upon procedures ISRS 4400 under section II, shall be reported separately in a “Report of factual findings”. The size of the sample of reviewed audit reporting shall be stated in the report.
If the auditor conducts an additional assignment according to ISRS 4400 and assesses that the observations presented in the “Report of factual findings” include the information that would have been included in a Management Letter, a separate Management Letter does not need to be issued for the ISRS 4400 assignment. Instead it is sufficient if the “Report of factual findings” include an explanation as to why a Management Letter has not been issued.
The Audit reporting should be provided to The Greens Movement of Georgia/Friends of the Earth Georgia (GMG/FoE-Georgia) no later than 25 July 2020, 2021 in English.
The Greens Movement of Georgia/Friends of the Earth Georgia (GMG/FoE-Georgia) shall submit the auditor´s reporting, Management letter and Management Response, including an Action plan regarding any findings to Keep Georgia Tidy by August 1, 2020, 2021.