Terms of Reference for Statutory Audit of the Financial Statements of Development Fund Programmes in Somaliland and Puntland (2026–2028)

Tender descriptionTERMS OF REFERENCE FOR STATUTORY AUDITOF THE FINANCIAL STATEMENTS OF PROGRAMS IN SOMALILAND AND PUNTLAND,Buy MapsSUPPORTED BY DEVELOPMENT FUND OF NORWAY (UTVIKLINGSFONDET STI)BACKGROUNDThe Development Fund/Utviklingsfondet STI(DF) is a Norwegian non-profit foundation registered in the Norwegian Register of Legal Entities with organisation number 928624471. For over 45 years, DF has worked in some of the poorest and most climate-vulnerable areas in the world. We collaborate with local communities for lasting changes and increased justice so that they can overcome hunger, handle crises, and create positive local development. We reach over a million people in rural areas of Africa, Asia, and Central America.DF have been working in Somaliland and Puntland since 2009, through our local partners, funded by Norwegian Agency for Development Cooperation (Norad) and Darwin Initiative. DF currently works with 3 partners under Norad project: Candlelight and NAFIS in Somaliland and KAALO in Puntland.While under the Darwin project DF works with two partners ADO in Somaliland and KAALO in Puntland.In accordance with the grant agreement with Norad and Darwin, we need to have an audit of partners’financialstatements for the projects supported by DF. Hence, we would like to invite authorised auditors to submit proposals to conduct a statutory audit of the accounts of the Norad programs and Darwin project for the financial years from January 1, 2026, to December 31, 2028. The details of the partners’ budget are annexed to this Term of Reference.Hire AccountantsOBJECTIVES OF THE AUDITThe overall objective of the audit is to provide the users of the financial statements with opinion whether the financial statements are presented fairly, in all material respects, in accordance with applicable financial reporting framework and in accordance with the instructions from our auditor in Norway, which will be shared with selected auditor. The audit shall be conducted in accordance with International Standards of Auditing. The specific objective of the audit is to check that DF’s contractual partner is complying with the contract between DF and the partner.3. SCOPE OF WORKThe statutory audit will cover the financial years 2026, 2027 and 2028.This will entail:Conducting risk assessment, controls testing and detailed verification work at the contractual partner within the scope of its own work.Conducting controls testing and risk-based verification work at the sub-partners contracted by DF’s contractual partner. The scope will be determined by work pertinent to the contract between DF and the contractual partner.To check compliance of the contractual partner with laws, regulations, and directives relevant to NGOs in Somaliland and Puntland.Buy MapsReport on findings at the contractual partner and on material findings at sub-partners that amount to non-compliance with the contract between DF and the contractual partner.4. TIME FRAMEFor 2027 the audit for Norad project work shall be started by January 11, 2027.5. REPORTINGReporting structureThe auditors shall report per partner that has a contract with DF, to the management of DF and management of partners.Contents of reportingThe reporting shall consist of:Financialstatements including audit report, in accordance with accounting and financial reporting standards of relevance in the contract between DF and partner and laws and regulations prevailing in Somaliland and Puntland.Management Letter (ML) containing findings from work specified under 3. Scope of work. The ML shall include a section on the status of issues reported in the previous year. TERMS OF REFERENCE FOR STATUTORY AUDITOF THE FINANCIAL STATEMENTS OF PROGRAMS IN SOMALILAND AND PUNTLAND,Buy MapsSUPPORTED BY DEVELOPMENT FUND OF NORWAY (UTVIKLINGSFONDET STI)BACKGROUNDThe Development Fund/Utviklingsfondet STI(DF) is a Norwegian non-profit foundation registered in the Norwegian Register of Legal Entities with organisation number 92