ETHIOPIA: REDD+ INVESTMENT PROGRAM PHASE II (RIP-II) EXTERNAL AUDIT CONSULTANT

Tags: finance Environment
  • Added Date: Tuesday, 06 May 2025
  • Deadline Date: Tuesday, 20 May 2025
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ETHIOPIA: REDD+ INVESTMENT PROGRAM PHASE II (RIP-II) EXTERNAL AUDIT CONSULTANT

Please note that the deadline is based on Korean Standard Time Zone (KST, UTC+9)

INTRODUCTION TO GGGI

The Global Green Growth Institute (GGGI) is a treaty-based international, inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. To learn more please visit about GGGI web page.

PROJECT BACKGROUND

REDD+ Investment Program Phase Two (RIP-II)

RIP II is a three-year program, building on good practices and lessons learned in phase I. The second phase will scale the successes of RIP-I and promote innovation and transformational practices to further accelerate action. The following actions will be instrumental for delivering results: a) scaling up good practices to maximize conservation gains at landscape level and livelihood gains for communities; b) bringing relevant international practices and lesson learned from forestry research to inform program planning and implementation, and building the capacity of national partners to engage in development-oriented forestry action research to help bridge the forestry-development gap in forestry; c) strengthening value addition and processing of forest products.

The overall objective of RIP II is to contribute to NDC targets of emission reduction, increased forest cover, and to increased GDP. In order to achieve this overall objective, RIP II is designed to deliver the following four outcomes.

Outcome 1: Forest sector transformation strengthened, and private sector engagement enhanced Outcome 2: Conservation of biodiversity and carbon rich natural forests scaled up Outcome 3: Degraded forest landscapes restored and commercial and species diverse plantations established Outcome 4: REDD+ MRV strengthened, and Results Based Payment piloted

A total of 16 outputs and 61 activities will contribute to achieve the outcomes. Key activities include certification of forest land, establishing buffer zones around natural forests, planting diverse indigenous tree species, strengthening knowledge management systems, undertaking need-based capacity building, identifying and addressing cross sectoral gaps in policies and plans, and improving policy alignment and sectoral coordination. RIP II is also designed to help reduce poverty and support the livelihoods of communities living in and around natural forests and rehabilitated landscapes.

RIP-II External Audit

In accordance with Article 10.4 of the agreement, the Ministry of Finance is obligated to conduct an additional external audit for RIP-II to ensure transparency, accountability, and adherence to international standards. To fulfil this requirement, the Global Green Growth Institute (GGGI), as one of the Technical Advisory Partners (TAPs), has been entrusted with the responsibility of procuring a qualified external auditor. The selected auditor will perform the audit in compliance with international auditing standards and GGGIโ€™s established audit protocols.

This Terms of Reference (TOR) has been developed to recruit a highly qualified and experienced external auditor who can provide robust auditing services and support both GGGI and the Ministry of Finance in delivering on their commitments under the existing agreement. The external audit will serve as a key assurance mechanism, ensuring that the resources allocated to RIP-II are managed effectively and contribute to the intended outcomes of the program.

GGGI, as one of the TAPs of RIP-II, has been tasked to coordinate and facilitate the joint monitoring and supervision missions of the program including preparing mission reports as well facilitating related events to monitoring missions. Accordingly, GGGI, in close collaboration with the CRGE Facility in MOF, EFD and the Royal Norwegian Embassy Team, has prepared the Joint Monitoring and Supervision Mission Plan. Overall, a joint monitoring and supervision mission plays a crucial role in ensuring the successful implementation and achievement of outcomes in development programs by providing oversight, support, and guidance throughout the program lifecycle.

OBJECTIVES

The objective of the external audit is to provide an independent professional opinion on whether the financial statements of the REDD+ Investment Program Phase II (RIP-II) fairly present the financial position of the program and whether they have been prepared, in all material respects, in accordance with the applicable financial reporting framework and the terms of the Grant Agreement. Additionally, the audit will assess the overall financial management, use of funds, internal control mechanisms, and compliance with international standards.

SCOPE OF THE WORK

The external audit will cover all financial activities of the REDD+ Investment Program Phase II (RIP-II) for the relevant financial year(s). The auditor will:

Audit Financial Statements: Review the program's annual financial statements, assessing whether they fairly present the financial position in compliance with International Standards on Auditing (ISA) and International Organization of Supreme Audit Institutions (INTOSAI) standards. Verification of Expenditures: Verify that all program expenditures were made in accordance with the approved budget, work plan, and program objectives, and ensure that the funds were used for the intended purposes. Internal Controls Review: Evaluate the internal control systems and provide recommendations for strengthening controls where necessary, identifying any potential risks and mitigation strategies. Fund Utilization Compliance: Assess the programโ€™s compliance with the financial management policies and procedures stipulated in the Grant Agreement and relevant national and international financial regulations. Expenditure Reporting: Ensure that the program's expenditures are properly documented and accurately reflected in the program's financial reports, including the reconciliation of project bank accounts and the proper handling of foreign exchange transactions. Risk Management Assessment: Identify any financial irregularities, fraud, or mismanagement and recommend corrective actions. The auditor should particularly focus on the management of risks related to financial irregularities, corruption, and misuse of funds. Follow-up Audits (if applicable): Conduct follow-up audits to ensure that any identified issues are addressed and corrected.

DELIVERABLES

The external auditor will provide the following deliverables:

a) Preliminary Audit Plan and Inception Report: A detailed audit plan outlining the methodology, timelines, and resources required for the audit. This should be submitted within two weeks of contract signing.

๐Ÿ“š ๐——๐—ถ๐˜€๐—ฐ๐—ผ๐˜ƒ๐—ฒ๐—ฟ ๐—›๐—ผ๐˜„ ๐˜๐—ผ ๐—š๐—ฒ๐˜ ๐—ฎ ๐—๐—ผ๐—ฏ ๐—ถ๐—ป ๐˜๐—ต๐—ฒ ๐—จ๐—ก ๐—ถ๐—ป ๐Ÿฎ๐Ÿฌ๐Ÿฎ๐Ÿฏ! ๐ŸŒ๐Ÿค ๐—ฅ๐—ฒ๐—ฎ๐—ฑ ๐—ผ๐˜‚๐—ฟ ๐—ก๐—˜๐—ช ๐—ฅ๐—ฒ๐—ฐ๐—ฟ๐˜‚๐—ถ๐˜๐—บ๐—ฒ๐—ป๐˜ ๐—š๐˜‚๐—ถ๐—ฑ๐—ฒ ๐˜๐—ผ ๐˜๐—ต๐—ฒ ๐—จ๐—ก ๐Ÿฎ๐Ÿฌ๐Ÿฎ๐Ÿฏ ๐˜„๐—ถ๐˜๐—ต ๐˜๐—ฒ๐˜€๐˜ ๐˜€๐—ฎ๐—บ๐—ฝ๐—น๐—ฒ๐˜€ ๐—ณ๐—ผ๐—ฟ ๐—จ๐—ก๐—›๐—–๐—ฅ, ๐—ช๐—™๐—ฃ, ๐—จ๐—ก๐—œ๐—–๐—˜๐—™, ๐—จ๐—ก๐——๐—ฆ๐—ฆ, ๐—จ๐—ก๐—™๐—ฃ๐—”, ๐—œ๐—ข๐—  ๐—ฎ๐—ป๐—ฑ ๐—ผ๐˜๐—ต๐—ฒ๐—ฟ๐˜€! ๐ŸŒ

โš ๏ธ ๐‚๐ก๐š๐ง๐ ๐ž ๐˜๐จ๐ฎ๐ซ ๐‹๐ข๐Ÿ๐ž ๐๐จ๐ฐ: ๐๐จ๐ฐ๐ž๐ซ๐Ÿ๐ฎ๐ฅ ๐“๐ž๐œ๐ก๐ง๐ข๐ช๐ฎ๐ž๐ฌ ๐ก๐จ๐ฐ ๐ญ๐จ ๐ ๐ž๐ญ ๐š ๐ฃ๐จ๐› ๐ข๐ง ๐ญ๐ก๐ž ๐”๐ง๐ข๐ญ๐ž๐ ๐๐š๐ญ๐ข๐จ๐ง๐ฌ ๐๐Ž๐–!

b) Draft Audit Report: A draft report detailing the findings, any discrepancies identified, and initial recommendations for corrective actions. This should be submitted within six weeks of the audit start date.

c) Final Audit Report: A comprehensive audit report including the auditorโ€™s opinion on the financial statements, an evaluation of the internal control environment, and recommendations for future financial management improvements. The final report should be submitted within ten weeks of the audit start date.

d) Management Letter: A separate management letter outlining any deficiencies in internal controls, financial management practices, or compliance issues, along with recommendations for corrective actions.

Duration of the assessment

The total duration of the external audit is expected to be 8 weeks starting from the date of the contract. The allocation of time for key deliverables is as follows:

Inception Phase: Review of documents, meetings with key stakeholders, and submission of the Inception Report. Audit Execution Phase: On-site auditing, financial records verification, interviews with key personnel, and assessment of internal controls. Report Writing and Submission: Drafting of the audit report, submission to MoF and GGGI for review, incorporation of feedback, and submission of the final report.

PAYMENT SCHEDULE

The consultant's fee will be disbursed in installments linked to the successful completion of key deliverables:

The payment schedule for the external audit will be performance-based, structured as follows:

15% upon submission of the Inception Report and Audit Plan. 40% upon submission of the Draft Audit Report. 45% upon submission and acceptance of the Final Audit Report and Management Letter.

Payments will be made upon the satisfactory completion of each deliverable and following approval by GGGI and the Ministry of Finance.

QUALIFICATIONS AND EXPERIENCE

The external auditor must meet the following qualifications:

Certification: Must be a recognized certified public accountant (CPA) or state-authorized public accountant, registered with the appropriate regulatory bodies. Experience: Minimum of 10 years of experience in conducting audits for large-scale international development programs, preferably related to climate finance or REDD+ projects. Standards Knowledge: Extensive knowledge and practical experience in applying International Standards on Auditing (ISA), INTOSAI standards, and familiarity with international donor-funded projects. Sector Experience: Experience auditing climate-related projects, environmental sustainability programs, or forest conservation projects will be an asset. Analytical and Communication Skills: Strong analytical and communication skills, with the ability to provide practical and actionable recommendations.

REPORTING

The external auditor will report directly to GGGI. Regular check-in meetings will be held to ensure the audit is proceeding on schedule and to address any challenges that arise during the process. The final audit report will be shared with all relevant stakeholders, including the Ministry of Finance, GGGI, and the Royal Norwegian Embassy.

CONFIDENTIALITY

The auditor will be required to maintain the highest level of confidentiality in regard to the information and data accessed during the audit. Any dissemination of the audit findings must be pre-approved by the Ministry of Finance and GGGI.

SUBMISSION OF PROPOSAL

Qualified individuals are requested to submit their technical and financial proposals, including:

Detailed methodology and work plan. Professional qualifications and experience of the audit team. References from similar assignments. A financial proposal, detailing costs associated with the audit assignment.

ETHICAL CONSIDERATIONS
The consultant shall adhere to ethical standards in all aspects of their work, including respect for local customs, traditions, and community rights. Confidentiality of sensitive information obtained during the consultancy shall be maintained at all times. Child protection โ€“ GGGI is committed to child protection, irrespective of whether any specific area of work involves direct contact with children. GGGIโ€™s Child Protection Policy is written in accordance with the Convention on the Rights of the Child.

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