Providing financial assurance activities for UNICEF Azerbaijan office

Terms of Reference

Title of Assignment Providing financial assurance activities for UNICEF Azerbaijan office
Purpose To conduct Micro Assessment and Spot checks of Implementing partners
Type Institutional contract (local)
Section Operations
Location Baku, Azerbaijan
Duration 10 months with possible extension
From:   25 May 2020 To: 31 March 2021

 

UNICEF Office in Azerbaijan seeks for an Auditing company to provide micro assessment and spot checks of the Implementing Partners

 

Objective and scope of the micro assessment

The micro assessment is performed by a third party service provider and includes a site visit to the Implementing Partner (IP). The assessment primarily consists of interviews with IP personnel and a review of relevant documentation sufficient to complete the micro assessment questionnaire (Annex 2). The questionnaire provides an overall risk rating based on responses provided:

  • Low risk – Indicates a well-developed financial management system and functioning control framework with a low likelihood of negative impact on the IP’s ability to execute the programme in accordance with the work plan.
  • Medium Risk – Indicates a developed financial management system and control framework with moderate likelihood of potential negative impact on the IP’s ability to execute the programme in accordance with the work plan.
  • Significant Risk – Indicates an underdeveloped financial management system or control framework with a significant likelihood of potential negative impact on the IP’s ability to execute the programme in accordance with the work plan.
  • High Risk – Indicates an underdeveloped financial management system and control framework with a significant likelihood of potential negative impact on the IP’s ability to execute the programme in accordance with the work plan.

The agencies use the overall risk rating provided by the questionnaire to determine the appropriate cash transfer modality for the IP. Three modalities are available under the HACT framework and are detailed below in order of association with overall risk rating of IPs from low to high:

  • Direct cash transfers – Funds are transferred by the agency to the IP before the IP incurs obligations and expenditures to support activities agreed in the work plan;
  • Direct Payments – Funds are paid by the agency directly to vendors and other third parties for obligations and expenditures incurred by the IP to support activities agreed in the work plan; and
  • Reimbursements – Funds are provided by the agency to the IP for obligations made and expenditures incurred in support of activities agreed in the work plan.

 

 

Timing

The assessment should be completed (including the site visit) within four weeks for micro assessment and within two weeks for spot checks of engaging the service provider. The Harmonized Approach to Cash Transfer (HACT) focal point and/or inter-agency coordinator will introduce the service provider and the IP to aid coordination of the site visit.

Micro Assessment Procedures/Deliverables

The third-party service provider receives general information regarding the IP and the programme from the HACT focal point and/or the inter-agency coordinator in preparation for the assessment (see Annex I for details). The service provider reviews this documentation in advance of performing a site visit to the IP. The service provider should also provide the IP with an advance request of the documents and interviews they would like to have while on site, to ensure efficient use of time while on-site.

The third-party service provider also completes the micro assessment questionnaire (Annex 2, with instructions) based on the procedures performed during the assessment period. The service provider discusses the results of the questionnaire with relevant agency personnel and the HACT focal point before finalizing it. Upon finalization, the service provider delivers an executive summary, detailing the overall risk rating and specific identified risks, and the completed questionnaire.

 

Spot check procedures/deliverables

The third-party service provider receives general information regarding the IP and the programme from the HACT focal point and/or the inter-agency coordinator in preparation for the spot check(s). The service provider reviews this documentation in advance of performing a site visit to the IP. The service provider should also provide the IP with an advance request of the documents and interviews they would like to have while on site, to ensure efficient use of time while on-site.

The third-party service provider completes the spot check template (Annex 3) based on the procedures performed during the assessment period. The service provider discusses the results of the spot check with relevant agency personnel and the HACT focal point before finalizing it. Upon finalization, the service provider delivers an executive summary, detailing the overall situation and specific identified risks, and the completed questionnaire.

The third-party service provider will check the records of the Implementing Partner to obtain reasonable assurance that amounts reported by implementation partners on the Funding Authorization and Certificate of Expenditures (FACE) and Actual Expenditures forms are accurate. Spot checks are performed in the office of implementing partners where financial records are kept.

Qualifications of the Third-Party Service Provider

The third-party service provider should be experienced in performing assessments similar to a micro assessment and assessing risks related to organizational financial management capacity (i.e. accounting, reporting, procurement and internal controls). The service provider should also have knowledge of the United Nations system and the development sector.

CVs of all members of the assessment team should be provided and should include details on engagements carried out by relevant staff, including ongoing assignments indicating responsibilities assumed by them and their qualifications and experience in undertaking similar assessments.

Application:

Interested institutions should send:

 

Institution’s profile;

Proposed separate budgets for a) Micro assessment b) Spot check

Reference of previous relevant work

 

Via email to:

baku_tenders@unicef.org (subject of the email must be: “Providing financial assurance activities for UNICEF Azerbaijan office”)

or in a sealed envelope to:

Human Resources

United Nations Children’s Fund (UNICEF)

Dalgha Plaza, III floor

24 Neftchilar Ave,

Baku AZ1095, Azerbaijan

 

Deadline: 29 May 2020, 18:00.

All applications will be treated with strict confidentiality.

UNICEF is an equal opportunity employer.

UNICEF is mandated by the United Nations General Assembly to advocate for the protection of children’s rights, to help meet their basic needs and to expand their opportunities to reach their full potential.

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