EDA Project Mid Term - Audit Services

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                                                                                               TERMS OF REFERENCE

GENERAL OBJECTIVE: The objective is to conduct an independent, risk-based mid-term financial audit of the EDA-PACT Project for the period 1 October 2023 to 30 September 2026, in accordance with International Standards on Auditing (ISA), and to express an opinion on the project financial statements prepared under the financial reporting framework adopted by PACT and applicable donor reporting requirements.  

DURATION: 25-30 days

BUDGET: BZD $30,000

1. Background

The Building Community Resilience via Transformative Adaptation Project, implemented by PACT with US$5 million in funding from the Adaptation Fund under the Enhanced Direct Access modality, aims to strengthen Belize’s resilience to climate change over five years (February 2024–February 2029). The project focuses on forest and water resource protection, wildfire management, alternative livelihoods, access to adaptation finance, and community disaster risk management. PACT disburses funds to Executing Entities, including NGOs, community-based organizations, and government agencies, through calls for proposals. This engagement is for a mid-term financial audit of the project, not a project performance evaluation.

2. Objectives of the Audit Services

The primary objectives of this mid-term audit are: 

1. Audit the EDA-PACT Project financial statements for 1 October 2023 to 30 September 2026 in accordance with International Standards on Auditing (ISA). 
2. Assess compliance, through procedures appropriate to the financial audit and any specifically agreed compliance reporting, with the applicable financing agreement, Adaptation Fund fiduciary requirements, approved budgets, grant agreements and PACT financial and procurement policies. 
3. Express an independent opinion on the project financial statements for the stated audit period, including the financial position on 30 September 2026, under the applicable financial reporting framework. 
4. Issue an independent auditor’s report and a management letter describing significant findings, associated risks, recommendations and management responses. 

3. Scope of Work

The services will include, but not be limited to, the following activities:

1. Audit the project’s financial statements to ensure they are free from material misstatement.

2. Examine the project’s financial position as of September 30, 2026, including opening balances where necessary.

3. Review financial statements and supporting schedules for October 1, 2023, to September 30, 2026, including receipts, payments, cash flows, and budget expenditures.

4. Verify financial transactions and supporting documentation, including those of Executing Entities and sub-grantees.

5. Assess accounting practices, significant financial estimates, and the overall presentation of the financial statements.

6. Review internal controls, financial management systems, and compliance with PACT’s procurement policies and Adaptation Fund requirements.

7. Evaluate Executing Entities’ and sub-grantees’ grant agreements, disbursements, expenditure eligibility, advance liquidations, financial records, and procurement compliance using a risk-based approach.

8. Identify and assess key financial, operational, compliance, and governance risks.

9. Evaluate the adequacy and effectiveness of internal controls and risk management systems.

10. Provide prioritized recommendations to strengthen internal controls, improve compliance, and mitigate identified risks.

4. Tasks of the Auditor

The audit firm shall conduct the engagement independently in accordance with ISA. PACT’s Accounting & Administration Manager or designated representative will coordinate access to records, personnel, and administrative arrangements without influencing audit procedures, judgments, or conclusions.

5.1 Audit Procedures and Specific Coverage

Conduct risk-based testing of financial records, transactions, procurement, grants, assets, and internal controls, identifying and quantifying significant exceptions where possible.

5.2 Deliverables and Timetable

1. Within 5 working days: Submit the inception report.
2. Within 20 working days: Complete fieldwork and submit draft reports.
3. Within 5 working days of PACT’s comments: Submit final audit deliverables.
4. Overall duration: 25–30 working days.

5.3 Management Responsibilities and Access

PACT shall prepare financial statements, maintain records and controls, and provide the auditor with relevant documentation, personnel, and access.

5.4 Confidentiality, Independence and Reporting

The auditor shall maintain confidentiality, uphold independence and professional ethics, disclose conflicts of interest, report suspected fraud or significant non-compliance, and retain working papers in accordance with applicable standards and laws.

5. Qualifications and Experience Requirements

PACT is seeking a firm with the following qualifications: 

1. At least five (5) years of professional experience in conducting financial audits of internationally funded projects, or audits of similar nature, type, and complexity, particularly donor-funded projects. 
2. Have adequate relevant professional and educational qualifications or be able to provide audit staff with adequate qualifications, experience, and competence. 
3. Demonstrated experience in auditing projects with on granting or sub-granting mechanisms. 

Desirable: 

• Prior experience conducting technical reviews for climate finance entities, conservation trust funds, or international donors; 

• Knowledge of Belize's National Protected Areas System, specifically the forest landscape; 

• Familiarity with PACT's operational context and portfolio. 

6. Application Procedures

Interested parties are asked to submit a signed letter of interest and a detailed proposal for the deliverables. The proposal should include methodology, work schedule, team composition with qualifications and relevant years of experience, and a quality control and quality assurance plan. A financial proposal shall also be submitted. 

The proposal will be evaluated based on the following criteria: 

1. Demonstration of the ability to provide high-quality service to PACT. 
2. Demonstrated experience in undertaking the scope of work. 
3. Conformity to economy and efficiency requirements of PACT. 

                                                                       **Application deadline is 13 November 2026. **