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 Financial Audit Service for NAP Mongolia project

27 February 2023

Background

Mongolia has accessed support under the Green Climate Fund (GCF) readiness and preparatory support, and a Project Document was developed called: “Building Capacity to Advance National Adaptation Plan Process in Mongolia (NAP Mongolia Project henceforth)”. The Project was approved and started in June 2018 and is executed by the Ministry of Environment and Tourism (MET) with support from the United Nations Environment Programme (UNEP).

Subject of the Engagement

The audit is limited to the financial report strictly in connection to GCF funds received and executed by MET for the period 01 January 2023 to 30 June 2024 as per the Project Cooperation Agreement (PCA) between the MET and UNEP dated 14 February 2019. The information (financial and non-financial) that is subject to verification by the auditors: GCF funds covered by the scope of the audit; Proper books of accounts have been maintained; All project expenditures are supported by vouchers and adequate documentation; Expenditures have been incurred in accordance with the objectives outlined in the project document and contracts issued in line with procurement rules and regulations of the GCF; The expenditure reports provide a true and fair view of the financial condition and performance of the project.

The audit Firm shall submit to the MET-NAP Mongolia project, the audited financial statements in English and Mongolian languages, management letter with factual audit findings and recommendations including the opinion.

Scope of Work

The Auditor shall undertake this engagement in accordance with the ToR and in compliance with the Code of Ethics for Professional Accountants issued by the IFAC. Link: http://ifac.org/

• The audit will be carried out in accordance with the International Auditing Standard and will include tests and verification procedures as the auditors deem necessary.
• Verify all funds have been used in accordance with the established rules and regulations of United Nations Environment Programme (UNEP) and only for the purposes for which the funds were provided.
• Goods, works and services financed have been procured in accordance with the UNEP established rules and procedures in Project Cooperation Agreement and the Project Document.
• Appropriate supporting documents, records and books of accounts relating to all activities have been kept and that clear linkages should exist between the books of accounts and the financial statements presented to UNEP.
• The financial statements have been prepared by NAP Mongolia project in accordance with applicable accounting standards and give a true and fair view of the financial position of the project within the Ministry of Environment and Tourism and of its receipts and expenditures for the period ended on that date.
• Carry out a physical verification of any significant assets purchased and confirm their existence and use for project purposes.
• Assess the adequacy and effectiveness of the Project Management Unit and the Ministry of Environment and Tourism governance, risk management and control processes.
• Whether the expenditure claimed through expenditures reported to UNEP are properly approved, classified and supported by adequate documentation.
• Comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions.
• Express an opinion as to reasonableness of the financial statements in all material respects.
• Include in their reports opinions on compliance with procedures designed to provide reasonable assurance of detecting misstatements due to errors or fraud that are material in the financial statements.
• Conduct entry and exit meeting with the Senior Management of Ministry of Environment and Tourism and obtain clearance from the Finance Management Officer at UNEP.

Required expertise and qualification

1. The Audit Firm must be registered in Mongolia and should be authorized to practice external audits in Mongolia.
2. The Audit Firm must be run by Certified Accountants i.e (CPA, ACCA or their equivalents).
3. The Audit Firm should, at least, have 3 years’ previous experience in auditing United Nations’ Agencies or/and World Bank supported projects.
4. Proficient English to deliver a Letter of Management and Independent Auditor’s Report to UNEP ad MET in both languages- English and Mongolian.

Application procedure

Qualified and interested Audit Firms are hereby requested to apply. The application should contain the following:

1. A notarized evidence of the Audit Firm registration in Mongolia and its authorization to practice external audits in Mongolia;
2. A notarized evidence of the Audit Firm is run by Certified Accountants;
3. A brief technical proposal (max. 7 pages) outlining how the expert intend to undertake the work in order to achieve the objectives as stated in the TOR; the technical proposal should at least outline the proposed methodology, tools, work plan including the timeframe for submitting the deliverables of the assignment;
4. The Audit Firm must provide a profile of the entities it has previously audited including a list of UN funded projects and the qualifications of staff who will participate on auditing this project.
5. The Audit Manager / Chair Person’s and Personnel CV (max. 2 pages) of the expert indicating his/her education background, professional qualifications, all past experience on auditing similar projects, as well as the contact details including certified copies of diploma and certificates (incl English language proficiency evidence);
6. A Financial Offer that indicates the all-inclusive fixed total contract price including professional fees, taxes and any other associated costs.

Applications must be in English with 1. the Firm’s complete profile with experiences, 2. Technical proposal, and 3. The Audit Manager / Chair Person’s Personal and Personnel’ CV; and 4. the financial offer.

The document should be clearly marked-up on top/ subject line “Application for the Audit Services for NAP Mongolia Project” and submitted to the following addresses of NAP Mongolia project

E-mail: nap.mongolia19@gmail.com and tacoordinator@napmongolia.mn