Conduct External Audit for Girls' Empowerment and Resilience Programme

REQUEST FOR EXPRESSIONS OF INTEREST

(CONSULTING SERVICES – FIRM SELECTION)

Country: Ethiopia

Name of Project: Eastern and Southern Africa Girls’ Empowerment and Resilience (EAGER) programme

Grant No: P179293

Assignment Title: Consulting Service to conduct Project Audit

Reference No. REF: ET-AUC-552838-CS-LCS

The African Union Commission has received financing from the World Bank toward the cost of Eastern and Southern Africa Girls’ Empowerment and Resilience (EAGER) programme and intends to apply part of the proceeds for consulting services.

The consulting services (“the Services”) include carrying out the audit of the project in accordance with the International Standards on Auditing (ISA), as promulgated by the International Federation of Accountants (IFAC).

The detailed Terms of Reference (TOR) for the assignment are attached to this Request for Expressions of Interest.

The African Union Commission now invites eligible consulting firms (“Consultants”) to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. The shortlisting criteria are:

The firm shall:

• Be a legally registered audit firm.
• Be subject to oversight by an independent audit regulator or professional accountancy organization that applies quality assurance reviews.
• Be in good standing with a recognized professional accounting body (e.g., ACCA, CA, CPA Institute, or equivalent).
• Demonstrate authorization to conduct audits in accordance with International Standards on Auditing (ISA).

i) Core Technical Experience

The firm must demonstrate:

a) General Audit Experience

• Minimum 10 years of experience in external auditing.
• Proven track record in auditing financial statements prepared under IFRS, and/or IPSAS.

b) Experience with Donor-Funded Projects

• Substantial experience in auditing World Bank–financed projects.

• Experience with audits financed under:

• • IDA / IBRD grants or credits.
• Investment Project Financing (IPF).

• Demonstrated familiarity with:

• • • World Bank Disbursement Guidelines.
• Designated Account (DA) audits.
• Interim Financial Reports (IFRs).
• Withdrawal application procedures
• Procurement compliance under the World Bank Procurement Regulations (2016, revised 2020).

Preference should be given to firms that have successfully completed at least three (3) similar assignments within the last five (5) years.

ii) Relevant Assignment Experience

The firm should demonstrate experience in assignments involving:

• Audit of:

Project Financial Statements (PFS)

• Designated Accounts
• Statements of Expenditure (SOE)
• Reconciliation of World Bank disbursements

• Review of:• Procurement compliance
• Internal controls
• Financial management systems

• Issuance of:

• Audit opinions in accordance with ISA
• Management Letters with actionable recommendations

Key Experts will not be evaluated at the shortlisting stage.

The attention of interested Consultants is drawn to Section III, paragraphs, 3.14, 3.16, and 3.17 of the World Bank’s “Procurement Regulations for IPF Borrowers” July 2016, revised November 2020 (“Procurement Regulations”), setting forth the World Bank’s policy on conflict of interest.

Consultants may associate with other firms to enhance their qualifications but should indicate clearly whether the association is in the form of a joint venture and/or a sub-consultancy. In the case of a joint venture, all the partners in the joint venture shall be jointly and severally liable for the entire contract, if selected.

A Consultant will be selected in accordance with the Consultants’ Quality and Cost-based Selection method set out in the Procurement Regulations.

Further information can be obtained at the address below during office hours 0900 to 1700 hours.

Expressions of interest must be delivered in a written form to the address below (in person, or by mail, or by e-mail) by 24 July 2026.

African Union Commission,

Head, Supply Chain Management Division

Building C, 3rd Floor,

P.O Box 3243, Roosevelt Street

Addis Ababa, Ethiopia

Tel: +251 (0) 11 551 7700 – Ext 4305

E-mail: [email protected]

TERMS OF REFERENCE FOR PROJECT AUDIT

REF: ET-AUC-552838-CS-LCS

• BACKGROUND

Reference is made to agreements signed between AUC and the World Bank on the IDA Grant where it requires an annual external audit on the programme financial statements and transactions. An audit firm performs the external audits annually for each grant, where the final audit report should be submitted to the World Bank by 30 June of the following fiscal year.

The audit will cover the World Bank P179293 IDA E2130- East Africa Girls' Empowerment and Resilience Project

• ACCOUNTING PERIOD TO BE COVERED BY THE AUDIT

The accounting period subject to audit shall be January 2025 to December 2025.

• OBJECTIVE OF THE PROJECT AUDIT

The objective of the audit of the Project Financial Statements (PFSs) is to enable the auditor to express a professional opinion(s) on the financial position of the project at the end of each fiscal year, and on funds received and expenditures incurred for the relevant accounting period.

The project books of accounts provide the basis for preparation of the PFSs by the Africa Union Commission (AUC) and are established to reflect the financial transactions in respect of the project. The AUC maintains adequate internal controls and supporting documentation for transactions.

• PREPARATION OF ANNUAL FINANCIAL STATEMENTS

The responsibility for the preparation of financial statements including adequate disclosure is that of the Africa Union Commission (AUC). It is also responsible for the selection and application of accounting policies. The AUC would prepare the PFSs in accordance with the International Financial Reporting Standards or International Public Sector Accounting Standards.

The auditor is responsible for forming and expressing opinions on the financial statements. The auditor would carry out the audit of the project in accordance with the International Standards on Auditing (ISA), as promulgated by the International Federation of Accountants (IFAC). As part of the audit process, the auditor may request from AUC written confirmation concerning representations made in connection with the audit.

• SCOPE OF THE AUDIT

As stated above, the audit of the project will be carried out in accordance with International Standards on Auditing (ISA) promulgated by the International Federation of Accountants (IFAC), and will include such tests and auditing procedures as the auditor will consider necessary under the circumstances. Special attention should be paid by the auditor as to whether the:

Goods, works and services financed have been procured in accordance with the relevant financing agreements including specific provisions of the World Bank Procurement Policies and Procedures[1]

All necessary supporting documents, records, and accounts have been maintained in respect of all project activities, including expenditures reported using Interim Unaudited Financial Report (IFR) methods of reporting. The auditor is expected to verify that respective reports, issued during the period, were in agreement with the underlying books of account;

Designated Accounts have been maintained in accordance with the provisions of the relevant financing agreements and funds disbursed out of the Accounts were used only for the purpose intended in the financing agreement;

Relevant laws and regulations have been complied with, and that the financial and accounting procedures approved for the project (e.g. operational manual, financial procedures manual, etc.) were followed and used;

• Financial performance of the project is satisfactory.

• Assets procured from project funds exist and there is verifiable ownership by the implementing agency or beneficiaries in line with the financing agreement.

• Ineligible expenditures included in withdrawal applications are identified and reimbursed to the Designated Accounts. These should be separately noted in the audit report.

In complying with International Standards on Auditing, the auditor is expected to pay particular attention to the following matters:

• Fraud and Corruption: Consider the risks of material misstatements in the financial statements due to fraud as required by ISA 240: The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements. The auditor is required to identify and assess these risks (of material misstatement of the financial statements) due to fraud, obtain sufficient appropriate audit evidence about the assessed risks; and respond appropriately to identified or suspected fraud;

• Laws and Regulations: In designing and performing audit procedures, evaluating and reporting the results, consider that noncompliance by the implementing agency with laws and regulations may materially affect the financial statements as required by ISA 250: Consideration of Laws and Regulations in an Audit of Financial Statements;

• Governance: Communicate audit matters of governance interest arising from the audit of financial statements with those charged with governance of an entity as required by International Standards on Auditing 260: Communication of Audit Matters with those Charged with Governance.

• Risks: In order to reduce audit risk to an acceptable low level, determine the overall responses to assessed risks at the financial statement level, and design and perform further audit procedures to respond to assessed risks at the assertion level as required by Internal Standard on Auditing 330: the Auditor’s Procedures in Response to Assessed Risks.

• PROJECT FINANCIAL STATEMENTS (PFSs)

The auditor should verify that the project PFSs have been prepared in accordance with the agreed accounting standards (see paragraph 3 abo