1. Introduction
NESsT (Nonprofit Enterprise Self-Sustainability Team), hereinafter referred to as the “Cooperation Partner,” seeks to engage the services of an external audit firm to audit the program “Strengthening the Connections Between Green & Equitable Suppliers and Global Corporations in Brazil, Colombia, and Peru,” in accordance with the agreement between the Cooperation Partner and SIDA.
The audit shall be conducted in accordance with the International Standards on Auditing (ISA) issued by the IAASB. Additionally, a review shall be carried out in accordance with the International Standard on Related Services ISRS 4400 (Revised). Both assignments must be performed by an external, independent, and qualified auditor.
2. Objectives and Scope of the Audit
The main objective is to audit the financial report for the relevant period submitted to SIDA and to express an audit opinion in accordance with ISA, applying ISA 800/805. The audit must verify that the financial report: -
Aligns with the accounting records of the Cooperation Partner. -
Complies with SIDA’s financial reporting requirements as stipulated in the agreement.
3. To be considered
Before proceeding with the audit engagement, the following aspects should be taken into account to ensure full alignment with the project's scope and expectations:
- Multiyear Project: The audit relates to a multi-annual program:
* Y1: From June 2024 to May 2025.
* Y2: From June 2025 to May 2026.
* Y3: From June 2026 to May 2027.
- The reporting will be conducted in English. -
- Budget Breakdown: It includes both bilateral and regional programs. This is the budget for the first year:
Bilateral:
USD 329.103
SEK 3.427.436
Regional:
USD 436.838
SEK 4.527.753
Total:
USD 765.941
SEK 7.955.189
- Implementing Partners: The audit will cover financial support provided to portfolio companies.
- Companies to be Audited: 13 organizations are part of the project. For Year 1, only one is active. 1.
* Colombia: 5 organizations 2.
* Peru: 3 organizations 3.
* Brazil: 5 organizations (only 1 currently active)
- Maximum Funds per enterprise: Up to USD 35,000.
- Reporting Timeline: The audited report must be submitted by August 31st.
- Audit Firm Eligibility: Firms must have a presence in LATAM and demonstrate international experience.
4. Additional Assignment: Agreed-Upon Procedures (ISRS 4400 Revised)
The auditor shall perform the following mandatory procedures:
4.1 Financial Report Structure
Verify whether the report allows for direct comparison with the latest approved budget.
Confirm that it includes financial outcomes per budget line (income and expenses) and cumulative data.
4.2 Reconciliations and Currency Exchange
Compare the opening fund balance with the closing balance of the previous period.
Verify disclosure of exchange gains/losses, including the full currency exchange chain from SIDA’s disbursement to local currency handling.
4.3 Explanatory Notes and Transfers
Confirm inclusion of explanatory notes and accounting principles.
Verify amounts forwarded to implementing partners, if applicable.
4.4 Salary Costs
Select a sample of three individuals across three different months.
Verify supporting documentation, time records approved by a manager, and frequency of reconciliations.
Confirm compliance with tax and social security obligations.
4.5 Sanctions Screening
Confirm that implementing partners and suppliers are screened against the EU Sanctions List.
Report any findings from the screening process.
4.6 Unspent Funds
Verify that the unspent fund balance matches accounting records and/or bank statements.
In the final year, confirm the amount (including exchange gains) to be returned to SIDA.
5 Follow-Up of Funds Transferred to Implementing Partners (IPs)
If funds are transferred to IPs, the following procedures must be performed:
- Select a minimum sample of % of total disbursed funds and % of the number of IPs (maximum 10).
- Verify that agreements are signed with selected IPs.
- Confirm that agreements require annual audits under ISA 800/805 and ISRS 4400 (Revised) for project/program support. For core support, audits must follow ISA 700 or national standards.
- Verify receipt of financial and audit reports from selected IPs.
- Confirm that the Cooperation Partner has assessed and documented the reports, including management responses and action plans.
- Verify that follow-up actions are documented.
- Confirm that significant observations from IP audit reports have been communicated to SIDA.
6 Audit Reporting
6.1 ISA Audit Report
Must include an independent auditor’s report in accordance with ISA 800/805.
The audited financial report must be attached.
Include a Management Letter disclosing all findings, weaknesses, and prioritized recommendations with risk classification.
Include follow-up on previous audit findings or a statement if there were none.
6.2 ISRS 4400 (Revised) Report
Must be presented separately.
Describe procedures performed and findings.
Indicate sample size, where applicable.
7 Documents that the Auditor Must Submit
Independent audit report (with the attached financial report).
Management Letter.
Report of factual findings (ISRS 4400).
8 Report Signature
All reports must be signed by the responsible auditor (not just the audit firm) and include the auditor’s professional title.
Proposals must be submitted through NESsT Bamboo system by July 18th.