TERMS OF REFERENCE

Introduction

WWF Zambia: WWF Zambia is a non-profit, non-governmental organization under Zambian law and has been in existence since 1961. As a branch office of WWF-International, the WWF Zambia country office was founded in 1991 as part of the global WWF network.

WWF Zambia with financial support from Stichting DOB Ecology through WWF Netherlands is currently implementing a ten-year project in a three-phase manner and is now in the third and final phase.

Phase I was from 1^st January 2017 – 31^st December 2020 which aimed at documenting and quantifying major threats and drivers to ecosystem change as well as investigating ecosystem functional dynamics and quantifying the provision of ecosystem goods and services to local communities.

Phase II was from 1^st January 2021 to 31^st December 2023 which entailed the translation of research results from phase I into conservation, management, and policy action. In addition, the phase aimed to strengthen and consolidate partnerships following the period of identifying and aligning with a suite of partners to deliver on the program.

Phase III, which is the final phase, running from 1^st January 2024 to 31^st December 2027 is the consolidation phase that amalgamates the scoping and conservation efforts in the last six years of the program and will address existential threats and drivers to biodiversity loss in and around Protected Areas poised by large scale infrastructure mining and hydropower projects in the Upper Zambezi Landscape.

Background

The Project is funded by Stichting DOB Ecology through WWF Netherlands and implemented by WWF Zambia. The Project Budget for Phase II was EUR 2,748,667 for a period of 3-years while the Project Budget for Phase III is EUR 2,507,556 and is being implemented for a period of 4-years.

WWF Zambia wishes to engage services of a Chartered Accountant officially registered by the Zambia Institute of Chartered Accountants (ZICA) to conduct Audit of Accounts of the Upper Zambezi Project Phase II and the first six months of Phase III.

Worldwide Fund for Nature Zambia (WWF Zambia) is requiring the services of a qualified external auditor to review the period ended 1st January 2021 to 31st December 2023 and the first six months of Phase III running from 1^st January to 30^th June 2024.

Objective

1. The objective of the audit is to allow the auditor to express an opinion on the financial reports and statements of expenditures based on the invoices paid under the Grants Upper Zambezi Phase II and Phase III.
2. This audit will cover the period 1^st January 2021 to 31^st December 2023 and 1^st January – 30^th June 2024.

Scope

The audit will be conducted in accordance with International Standards on Auditing (ISA) as published by the International Auditing and Assurance Standards Board of the International Federation of Accountants and will include such tests and controls as the auditor considers necessary as well as on-site visits if also deemed necessary.

Sample or coverage

The sample or Expenditure coverage ratio is the total amount of expenditure verified by the Auditor, expressed as a percentage of the total amount of expenditure reported by the project in the financial report.

The Auditor assures that the Expenditure Coverage Ratio is at least 65%. If he/she finds an exception rate of 10% of the total amount of expenditure verified (i.e. 6.5%) the Auditor finalizes the verification procedures and continues with reporting.

If the exception rate found is higher than 10%, the Auditor extends verification procedures until the Expenditure Coverage Ratio is at least 85%. The Auditor then finalizes verification procedures and continues with reporting regardless of the total exception rate found.

The external audit should include the following auditing and control measures:

1. Verifying accounting records for correctness and completeness.
2. Verifying the financial report in which all project-related revenues and expenditure must be shown and for which it must be confirmed that receipts are provided for all revenues and expenditure.
3. Verifying the personnel costs and social security contributions to ensure that they are in line with local standards, legal in the respective project country and, above all, that they comply with contracts and that the contributions required by law are being withheld.
4. Verifying that the cost plan is being adhered to by means of a comparison of objectives and effects (based on the most recent valid budget).
5. Verifying and confirming that project-relevant documentation is complete and correct.
6. Verifying that all expenditure has adhered to WWF network standards/policies and procedures.
7. The Audit report will be expected within Four to Five Weeks from the date of signing of the contract.

The final audit certificate must state the following (minimum requirement):

“We hereby certify that we have audited the statement of accounts of Worldwide Fund for Nature Zambia (WWF Zambia)] regarding the financing of the project Upper Zambezi phase II and III. Our audit was carried out based on the following requirements pertaining to the use of funding: List of relevant contracts and documents. To this end, we have inspected the books and receipts. Based on our audit, we confirm that:

1. All income and expenditure have been properly documented by means of receipts
2. The documented expenditure complied with its application and project approval and was in keeping with the appointed purpose and the most recent budget. Any deviations from the budget have been explained separately.
3. The donor’s conditions that were specified in the project agreement were met (were not met in the following points).”

Reports

The audit report(s) will:

1. be issued by the auditor in English language
2. include all aspects specified in the preceding paragraph (“Scope”)
3. contain these Terms of Reference as integral part
4. provide a schedule showing receipts and disbursements during the Audit Period

If considered pertinent, the auditor will also prepare a “management letter” in which the auditor will:

1. Give comments and observations on the accounting records, systems and controls examined during the course of the audit (as far as necessary for the understanding of the financial reports and the statements of expenditures);
2. Identify specific deficiencies and areas of weakness in systems and controls of the project that have come to the auditor’s attention, especially with regard to withdrawal, procurement, storage and payment transactions, and make recommendations for their improvement.
3. Report on actions taken by the management of the project to make improvements with respect to deficiencies and areas of weakness reported in the past.
4. Bring to the Management attention any other matters that the auditor considers pertinent.

Interested audit firms must submit, their:

• Financial Proposal
• Technical Proposals inclusive of Methodologies applicable for the undertaking
• Trade references related to the assignment at hand
• ZICA accreditations
• Valid Tax clearance certificate

All the above mentioned should be shared via email to: zcoprocurement@wwfzam.org  clearly specified as below:

1. Email subject must Cleary state – “Upper Zambezi Project”.
2. Proposal cover letter should be clearly titled – “Upper Zambezi Project”.

All submissions should be received by WWF Zambia Via the specified email address no later than 6^th November 2024