The Greens Movement of Georgia/Friends of the Earth - Georgia (GMG/FoE-G) wishes to engage the services of an international audit firm for the purpose of auditing the project Keep Georgia Tidy (Sida Contribution No: 13312-GMG/FoE-G) as stipulated in the agreement between The Greens Movement of Georgia/Friends of the Earth - Georgia (GMG/FoE-G) and Keep Georgia Tidy, for the period: 2022 July 1 to 2023 May 31, as submitted to Keep Georgia Tidy and to express an audit opinion according to ISA 800/ISA 805. The audit shall be carried out by an external, independent, and qualified auditor. The audit shall be carried out in accordance with international audit standards issued by IAASB . In addition, an assignment according to International Standards on Related Services (ISRS) 4400 shall be carried out. See the ToR for more details. The proposal shall present a detailed breakdown of fees, dates of providing services, and other relevant conditions. Please indicate prices in EUR (Excluding VAT). The proposal shall be in English. Interested applicants should present proposals before May 20, 2023, from 10:00 a.m. – 6:00 p.m. local time to Mr. Nikoloz Inashvili, Office Manager of GMG/FoE – Georgia. Mob (+995 599) 260 695, E-mail: nukri_ina@yahoo.com; info@greens.ge TERMS OF REFERENCE FOR THE ANNUAL AUDIT OF THE PROJECT “KEEP GEORGIA TIDY”, SUPPORT TO THE GREENS MOVEMENT OF GEORGIA/FRIENDS OF THE EARTH-GEORGIA (GMG/FOE-G) Introduction The Greens Movement of Georgia/Friends of the Earth - Georgia (GMG/FoE-Georgia) is an organization aiming to protect the environment, human and ethnocultural surroundings according to the principles of sustainable development. According to statutes, GMG/FoE-Geogria’s main mission is to control rational consumption of natural resources and stop the degradation of nature, to protect human and societal rights protection and their involvement in decision-making, to protect and sustain the 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 a 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. In addition, an assignment according to International Standards on Related Services (ISRS) 4400 shall be carried out. The audit and the additional assignment shall be carried out by an external, independent, and qualified auditor. Objectives and Scope of the Audit The objective is to audit the financial report for the period July 1, 2022, to May 31, 2023, as submitted to Keep Georgia Tidy and to express an audit opinion according to ISA, applying ISA 800/ISA 805, on whether the financial report of the Keep Georgia Tidy project is in accordance with the GMG/FoE-G accounting records and Keep Georgia Tidy’s (KGT) requirements for financial reporting as stipulated in the agreement including appendices between Keep Georgia Tidy (KGT) and GMG/FoE-G (Sida Contribution No:13312). I. Additional assignment; according to agreed-upon procedures ISRS 4400, review the following areas in accordance with the Terms of Reference below Mandatory procedures that must be included: 1. Observe whether the financial report is structured in a way that allows for direct comparison with the latest approved budget . 2. Observe and inspect whether the financial report provides information regarding: a) Financial outcome per budget line (both incomes and costs) for the reporting period and columns for cumulative information regarding earlier periods under the current agreement. b) When applicable, compare if the opening fund balance for the reporting period matches with what was stated as the closing fund balance in the previous reporting period. c) A disclosure of exchange gains/losses. Inquire and confirm whether the disclosure includes the entire chain of currency exchange from Sida’s disbursement to the handling of the project/programme within the organization in local currency/ies, if applicable. d) Explanatory notes (such as, for instance, accounting principles applied for the financial report). e) Amount of funds that has been forwarded to implementing partners, when applicable. 3. a) Inquire and inspect with what frequency salary costs during the reporting period are debited to the project/programme. Choose a sample of three individuals for three different months and: b) Inquire and inspect whether there is supporting documentation for debited salary costs. c) Inquire and inspect whether actual time worked is documented and verified by a manager. Inquire and inspect within which frequency reconciliations between debited time and actual worked time are performed. d) Inspect whether GMG/FoE-G complies with applicable tax legislation with regard to personal income taxes (PAYE) and social security fees. 4. a) Inspect and confirm that the unspent fund balance (according to the financial report) at the end of the financial year is in line with information provided in the accounting system and/or bank account. b) Applicable the final year: Inspect and confirm the unspent fund balance (including exchange gains) in the financial report and confirm the amount that shall be repaid to Sida. II. 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 Audit reporting should be provided to The Greens Movement of Georgia/Friends of the Earth Georgia (GMG/FoE-Georgia) no later than 11 July 2023 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, 2023. Reporting from the ISA assignment 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 financial report that has been the subject of the audit shall be attached to the audit report. The reporting shall also include a Management letter that discloses all audit findings, as well as weaknesses identified during the audit process. The auditor shall make recommendations to address the identified findings and weaknesses. The recommendations shall be presented in priority order and with a risk classification. Measures taken by The Greens Movement of Georgia/Friends of the Earth Georgia (GMG/FoE-Georgia) to address weaknesses identified in previous audits shall also be presented in the Management Letter. If the previous audit did not have any findings or weaknesses to be followed up on, a clarification of this must be disclosed in the audit reporting. 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. Reporting from the ISRS 4400 assignment The additional assignment according to agreed-upon procedures ISRS 4400 under section II, shall be reported separately in an “Agreed-upon procedures report”. Performed procedures should be described and the findings should be reported in accordance with the requirements in the International Standard on Related Services 4400. When applicable, the sample size of 75% shall be stated in the report.