Terms of Reference (TORs) for Project Audit

Scope of Work

Project: Community Led; Environment-Friendly Actions for Nature Conservation (Clean-C)

Value of Project: EURO 506,249 /-

Project Duration: December 2021 – July 2025

Project Location Chakshahzad – Islamabad

Head office Location H-333, Street # 29, G 14/4

The selected audit firm shall:

• Review all financial transactions, including income, expenses, assets, and liabilities, for the project duration.
• Verify any interest income earned in the designated bank account.
• Conduct physical verification of activities at the field level.
• Examine accounting records, ledgers, bank statements, and supporting documentation.
• Assess the adequacy of internal controls and compliance with financial policies and procedures.
• Verify the accuracy and reliability of financial statements and reports.
• Identify any instances of non-compliance, fraud, or financial irregularities.
• Perform sampling and testing of financial data to ensure completeness and accuracy.
• Review budget allocations and actual expenditures against approved project plans and donor funding agreements.
• Assess the reliability of financial systems and software used for accounting and reporting.
• Provide a comprehensive audit report detailing findings, observations, and actionable recommendations.
• Provide explanations for all budget line deviations exceeding 30%.

Deliverables

The audit firm shall submit:

• Inception Report outlining the audit approach, methodology, and timeline.
• Draft Audit Report presenting findings and observations for management review and feedback.
• Final Audit Report incorporating responses, feedback, and final recommendations.

Evaluation and Selection

• Proposals will be evaluated by a Selection Committee based on the criteria specified in the solicitation document.
• PMS reserves the right to accept or reject any proposal, and to negotiate terms with the selected firm.

Budget

• The proposal must include a detailed cost breakdown (professional fees, travel, accommodation, and any other applicable charges).

Confidentiality

• The audit firm shall maintain strict confidentiality of all information obtained during the audit.
• No findings, reports, or related information may be disclosed without prior written authorization from PMS.

Quotation Requirements

Quotations must:

• State all prices in PKR , inclusive of all applicable taxes.
• Provide an all-inclusive fee (no additional charges for travel, food, or incidentals will be accepted).
• Include costs for field verification (if required).
• Be written in English, duly signed, and provide a contact person for clarification.

Important Notes

• Payment will be made via cross cheque after donor approval of the final audit report.
• The audit will be conducted based on the Voucher List document provided by the donor (containing all transactions). Audit activities shall commence once the Voucher List is approved by the donor.
• All audit documents are available at the PMS Country Office, Islamabad. Field verification will be conducted at the project site.
• Taxes will be deducted as per Government regulations.
• Please mentioned the price which included all taxes, out of pocket expenses and any other associated cost related to execution of audit.
• The final draft audit report must be submitted to PMS no later than 15 Jan, 2025. before 3pm for donor review via email for quick execution and sealed envelope.

Submission of Proposals

Interested firms should submit their sealed proposals addressed to the Procurement Department at the following address:

H-333, Street #29, G-14/4, Islamabad

d verification can be done in the project area.

• Tax will be deducted as per Gov Laws.

• Report has to be completed on or before 20^th Jan, 2025 for first review from the donor.

How To Apply:

Please share sealed envelope at H-333. Street # 29 G 14/4 addressing procurement department on or before 26^th Dec, 2025.