Terms of Reference for conducting an Expense Verification for the AKDN Eastern Africa COVID-19 Response Project.

1. About Aga Khan Foundation (AKF)

For nearly 50 years, the Aga Khan Foundation has been partnering with communities, governments, and the private sector to harness the best from people from all backgrounds to improve the quality of life. The Foundation’s work is rooted in core values of self-reliance, pluralism, and respect for human dignity. AKF is a member of the Aga Khan Development Network (AKDN), one of the world’s leading poverty solutions networks. AKDN makes long-term investments, builds permanent institutions, and cultivates an active civil society, impacting tens of millions of people annually in 30 countries. Alongside its sister AKDN agencies, the Foundation implements innovative, community-driven solutions that are based on decades of experience, learning, and evaluation.

2. Background to the Project

COVID-19 will have a devastating long-term social and economic effect on the poorest, vulnerable, and most marginalized communities in Eastern Africa over the months and years to come. Eastern African countries face significant vulnerabilities linked to underlying socio-economic fragilities, including high levels of economic insecurity for large sections of the population and weak social protection systems which prevent access to treatment. Both formal and informal economies are being hit hard by the crisis. In addition, the economic downturn has caused substantial implications for gender equality, and the closing of businesses, mostly micro-enterprises, with a significant impact on those with high female employment.

Other emerging concerns are the sensational media reporting, creating fear and panic, and hastily implemented public health measures to achieve social distancing that cause stigmatization, and greatly reduce access to essential health services and basic food necessities for the poorest and most vulnerable populations. Loss of household income will complicate already fragile livelihoods among the poor, and vulnerable communities, particularly in remote, rural areas and informal settlements in urban areas, and the financial capacity of parents and caregivers to access basic services.

Persons with disabilities may be at heightened risk due to inaccessible information about prevention, barriers to accessing health services, and difficulties accessing and using preventive measures such as handwashing. Across all contexts, there is an urgent need to rapidly expand in-country preparedness and containment capacity to support under-resourced health systems and slow the spread of the disease, while also minimizing the socio-economic impact of the crisis, particularly for vulnerable communities and young people.

3. About the Project

AKF and partners with funding from the European Commission are implementing the AKDN Eastern Africa COVID-19 Response Program in selected geographies in four countries: Kenya, Mozambique, Tanzania, and Uganda. The project will run for two and half years from 18^th December 2020 to 17^th June 2023.

3.1 Overall goal and objectives

The project aims at improving systemic, gender-sensitive responses to overcome health, economic and social vulnerabilities caused by the COVID-19 pandemic in Eastern Africa. This overall objective will be achieved through the following intermediate outcomes:

1. Coping strategies to the COVID-19 pandemic for vulnerable men, women, and youth strengthened.
2. Health care delivery system for effective management of COVID-19 pandemic in target communities strengthened; and
3. Access to adolescent and youth-friendly health services, life skills, and livelihood opportunities increased.

3.2 Interventions

a) Strengthening coping strategies to the COVID-19 pandemic for vulnerable men, women, and youth

AKDN and partners will support the deployment of relevant digital platforms to support local CSOs in identifying community priority needs, co-design appropriate response strategies, and allocate resources through local CSOs and community groups, who are at the center of community interventions. This will involve setting up response mechanisms including rapid response funds, and community-based savings through digital platforms to meet the emerging needs of vulnerable members of the community. Local CSOs will be supported in gathering and disseminating accurate information about COVID-19 that promotes preventive measures, minimizes falsehoods, myths, and beliefs that could escalate infections or perpetuate abuses particularly against women, girls, and children. Accurate, reliable, and updated information on emerging needs within vulnerable communities provide an opportunity to identify the most pressing needs, have a better understanding of community perceptions and experiences of the pandemic, and mount context-specific, and appropriately resourced community-led responses. The project will complement government messaging through the production of high-quality, contextualized, and culturally relevant multi-media content addressing COVID-19 mitigation and prevention measures, reaching vulnerable and misinformed communities, enhancing coping strategies post-crisis recovery, while reducing infection rates at the community level. Across a range of platforms and networks, at national and local levels, AKF has invested in supporting partner CSOs, including Village Development Organizations (VDOs), Farmers Organizations (FOs), and a myriad of other civic groups working on a vast array of issues. Among these are Community Based Savings Groups (CBSGs) in Tanzania, membership organizations under a disability platform in Uganda, CSOs under the Yetu initiative in Kenya, and CSOs under the Juntos program in Mozambique. CSOs are frontline actors and the last mile of the COVID-19 response, a role they are well placed to play given they: i) understand the different needs that are emerging in communities across the region; ii) have a high level of trust among community members, and; iii) have a track record of mobilizing community members in response to diverse issues. As a result, CSOs and their networks will play a critical role across the COVID-19 pandemic response. This approach will minimize COVID-19 infections, social and economic vulnerabilities, and enhance resilience among vulnerable communities in coping with the COVID-19 pandemic. In doing so, AKDN and partners aim to nurture partnerships that will strengthen an ecosystem of actors with an interest in supporting sustainable community resilience to the COVID-19 pandemic.

b) Strengthening health care delivery systems

The project will strengthen the structural and technical capacity of the public health delivery system’s response to the COVID-19 pandemic. AKDN will complement and strengthen the regional government’s strategic response to COVID-19 by leveraging our existing networks of not-for-profit private health facilities, and capacity-building partnerships, to increase testing capacity, surveillance, and treatment capability across Kenya and Tanzania. The focus on Kenya and Tanzania in this pillar is informed by the fact that the AKDN’s health systems footprint is concentrated in these countries, providing us with a unique advantage in collaborating effectively with the Ministry of Health and strengthening the COVID-19 response efforts across the country. The interventions under this pillar will include the procurement of additional equipment and medical supplies, including personal protective equipment (PPE) for target health facilities, to ensure required equipment and supplies are available for testing, surveillance, and critical care of vulnerable members of the community, who cannot afford the high cost of health care-associated with COVID-19. The project will also improve the capacity of health workers to manage COVID-19 cases including testing, diagnosis, and critical care management, including through online eHealth systems. AKDN will establish e-Health infrastructure including a digital platform to strengthen the management of COVID-19 cases in AKDN health facilities. These strategies will improve the management of the COVID-19 pandemic, further minimizing transmissions, infections, and mortalities among the target communities. Through these approaches, the AKDN response will result in a substantial and sustainable contribution to the resilience of the health system in the two countries in the face of the COVID-19 pandemic.

c) Strengthening mechanisms for delivery of adolescents and youth-friendly SHR services, life skills, and livelihood opportunities

AKDN and partners will deploy digital platforms in building an enabling environment for adolescents and youth to access SRH services, life skills, and livelihood opportunities. This will minimize barriers confronting adolescents and youth in their efforts to make responsible decisions over their lives. Given the reported increase in SGBV occasioned by the COVID-19 pandemic, the SRH services, and life skills support will enable target adolescents and youth to take responsible actions to minimize incidences of early pregnancies and marriages that are likely to further entrench vulnerabilities in this category of the population at a critical stage in their life. Extending SRHR services and life skills to adolescents and youth across the geographical areas of focus will enable them to make better life decisions, for instance, about when to start a family and how many children they should have. Through the provision of information and resources, it is expected that STD and HIV/AIDS infections will also be reduced among adolescents and youth. Furthermore, the livelihood support will enable adolescents and youth to have opportunities to improve their employability skills for a dignified life and work, avoid abusive relationships, and become productive members of society. This approach will not only support youth who may have lost their livelihoods due to the COVID-19 pandemic, but many other unemployed youths will acquire valuable skills for micro-entrepreneurship, further enhancing resilience during and post the COVID-19 pandemic.

3.3 Geographic scope

The project is being implemented in four countries; Kenya, Uganda, Tanzania, and Mozambique. In Kenya, the project will be implemented in Mombasa, Kilifi, Kwale, Lamu, Kisii, Nakuru, Nairobi, Kisumu, Busia, Migori, Bungoma counties; in Tanzania – Dar es Salaam, Mtwara, Lindi, and Mwanza regions; in Uganda – Central region (Kampala) and West Nile (Arua), while in Mozambique, it will focus on Cabo Delgado and Nampula provinces. The project has adopted a three-pronged, systemic approach to overcome vulnerabilities among target communities, enhancing their capacity to cope with the impact of COVID-19, while improving health delivery systems. AKDN and its partners will support mechanisms – including digital platforms – for improving access to SRH services and livelihood opportunities for adolescents and youth, who have unique vulnerabilities that deny them responsible decision-making about their life and dignified work opportunities. By the end of the program, 140,000 individuals (60% female) will be reached directly in vulnerable communities and 604,000 indirectly: a total of 739,000 people reached.

3.4 Target groups

The project will primarily target the following people and institutions to ensure those most in need of support are targeted while nurturing a strong network of system actors for sustainable COVID-19 response in the target geographies. The following are the key target groups and beneficiaries:

a) Individuals and households: The project will directly reach 140,000 (60% female and 30% youth) individuals or 30,000 households. The indirect impact of the project, taking into consideration the modalities used, will lead to an expected overall reach of 130,000 indirect households or 604,000 individuals, of which 60% are women and 30% youth. Target communities will be those most vulnerable who face daily harsh socio-economic realities and the spread of COVID-19 might not necessarily rank highest among their priorities as they have other more pressing needs for daily sustenance. Special emphasis will be placed on reaching PWDs, orphans, widows, and other at-risk groups, for instance, survivors of SGBV.

b) Civil society organizations (CSOs) with a particular focus on women-focused CSOs: The Action will support 558 CSOs across four countries, among them 500 CBSGs, 20 VDOs, and five network CSOs. The target local CSOs and community groups are local community-rooted institutional and structures who are at the center of community interventions and putting them at the forefront ensures relevant, context-specific, and sustainable COVID-19 responses.

c) Health facilities: The Action will support both AKDN private not-for-profit facilities and public health facilities in Kenya and Tanzania. The health care delivery system in these countries is weak and could quickly be overwhelmed with spikes in COVID-19 caseloads. In Kenya, the health system strengthening response will focus on Nairobi and counties in Coastal and Western Kenya. In Tanzania, the response will focus on Dar-es-Salaam and Mwanza. The targeted public health facilities include three in Kenya at Mombasa General Hospital, Mbagathi District Hospital in Nairobi, and Oginga Odinga Hospital in Kisumu; one in Tanzania at Amana Hospital in Dar es Salaam.

d) Government departments: Over the 2.5 years, in the four countries, the Action will collaborate with 19 government departments including the departments in-charge of health, gender, youth, education, and social services. Working with government departments is a strategy for nurturing ownership of the interventions, thereby ensuring the sustainability of the Action given that the government is a key stakeholder in the COVID-19 response.

3.5 Implementing partners

• The Aga Khan Foundation (AKF) in Kenya, Uganda, Tanzania, and Mozambique
• Aga Khan University (AKU)
• The Aga Khan Health Services (AKHS), in Kisumu, Mombasa, Nairobi and Dar Es Salaam, and Mwanza
• Triggerise Stichting

4. Objectives of the Expense Verification

The Expenditure Verifier is expected

• To carry out the agreed-upon procedures listed in Annex 2, and
• To issue reports based on the template in Annex 3 which will support the Contracting Authority’s conclusions on the eligibility of the reported expenditure and the related follow-up.

The expenditure verification will be performed as desk review or/and fieldwork at the location indicated under 3.5 above.

The Expenditure Verifier is not expected to provide an audit opinion.

4.1 Standards and Ethics

The Expenditure Verifier shall undertake this engagement in accordance with:

• the International Standard on Related Services (‘ISRS’) 4400 Engagements to perform Agreed-upon Procedures regarding Financial Information as promulgated by the IFAC;
• the IFAC Code of Ethics for Professional Accountants was developed and issued by IFAC’s International Ethics Standards Board for Accountants (IESBA), which establishes fundamental ethical principles for Auditors with regard to integrity, objectivity, independence, professional competence and due care, confidentiality, professional behavior, and technical standards.

Although ISRS 4400 provides that independence is not a requirement for agreed-upon procedures engagements, the Coordinator requires that the Expenditure Verifier is independent of the Coordinator and complies with the independence requirements of the IFAC Code of Ethics for Professional Accountants.

Requirements for the Expenditure Verifier

By agreeing this ToR, the Expenditure Verifier confirms meeting at least one of the following conditions:

• The Expenditure Verifier is a member of a national accounting or auditing body or institution which in turn is a member of the International Federation of Accountants (IFAC).
• The Expenditure Verifier is a member of a national accounting or auditing body or institution. Although this organization is not a member of the IFAC, the Expenditure Verifier commits to undertake this expenditure verification in accordance with the IFAC standards and ethics set out in this ToR.
• The Expenditure Verifier is registered as a statutory auditor in the public register of a public oversight body in an EU member state in accordance with the principles of public oversight set out in Directive 2006/43/EC of the European Parliament and of the Council (this applies to auditors and audit firms based in an EU member state)^[1].
• The Expenditure Verifier is registered as a statutory auditor in the public register of a public oversight body in a third country and this register is subject to principles of public oversight as set out in the legislation of the country concerned (this applies to auditors and audit firms based in a third country).

4.2 Scope

Contracts and Financial Reports covered by this ToR

The Contract(s) and Financial Reports subject to this expenditure verification are indicated on the cover sheet and in Annex 1.

Conditions for Eligibility of Expenditure

The conditions for eligibility are stipulated in the Contracts which are provided in Annex 1 (including riders).

4.3 Verification Process and Methodology

a) Preparation of the Verification

The Expenditure Verifier shall prepare the verification and agree on the timing for carrying out the expenditure verification, notably with regard to fieldwork (if any). The Expenditure Verifier will then also confirm with the Coordinator the location(s) indicated in Annex 1 and ensure that relevant supporting documents, as well as key staff, will be available during the verification.

b) Preparatory Meeting, Fieldwork, Desk Review

The fieldwork or desk review shall commence as soon as possible and not later than 14 days calendar days after the signature of the verification contract or the date of availability of the Financial Report (i.e. financial report, supporting documents, and other relevant information).

c) Engagement Context, Materiality, Risk Analysis, Sampling

The Expenditure Verifier’s procedures should include:

• Obtaining a sufficient understanding of the engagement context including the contractual conditions, the Coordinator, and the applicable EC laws and regulations which are set out in Section 5 above (Scope). The Expenditure Verifier should pay specific attention to the contractual provisions relevant for the following aspects:
• Documentation, filing, and record-keeping for expenditure and income.
• Eligibility of expenditure and income.
• Procurement and origin rules insofar as these conditions are relevant to determine the eligibility of expenditure.
• Asset management (management and control of fixed assets; e.g. equipment).
• Cash and bank management (treasury).
• Payroll and time management.
• Accounting (including the use of exchange rates) and financial reporting of expenditure and income; and
• Internal controls and notably financial internal controls.

The understanding should be sufficient to identify and assess the risks of material errors or misstatements in the expenditure and revenue stated in the Financial Report in order to determine the size and structure of the expenditure sample to be tested, whether caused by error or fraud and sufficient to design and perform further verification procedures.

Performing a risk analysis (Annex 2).

The outcome of the risk analysis has to be clearly described in the Verification Report (Annex 3, Section 2.1);

• Determining the sample size;

For the purpose of determining what the overall material misstatement or error is, the Expenditure Verifier will apply a materiality threshold of 2% of the total amount of the gross reported expenditure with a confidence level of 95%.

Establishing the sample and selecting the individual items for testing (Annex 2).

The link between the risk assessment and the size and composition of the sample, as well as the sampling method (statistical/non-statistical), must be clearly described in the Verification Report (Annex 3, Section 2.2);

Fieldwork / Desk Review

The main task during the fieldwork or desk review will be to perform the substantive tests (Annex 2, Section 2). Key information about the testing process must be provided in the Verification Report (Annex 3, Section 4).

Debriefing Memo and Closing Meeting

At the end of the fieldwork or desk review, the Expenditure Verifier should prepare a debriefing memo, organize a closing meeting with the Coordinator in order to discuss the findings, obtain its initial comments and agree on additional information to be provided at a later date.

Documentation and Verification Evidence

The evidence to be used for performing the procedures in Annex 2 is all financial and non-financial information which makes it possible to examine the expenditure declared in the Financial Report.

The Expenditure Verifier documents matters which are important in providing evidence to support the report of factual findings, and evidence that the work was carried out in accordance with ISRS 4400 and this ToR.

4.4 Reporting

( a) Structure and Content of the Report

The use of the Expenditure Verification Report template in Annex 3 of this ToR, including the annexed tables, is compulsory.

The report should provide basic information about the Contract and should describe the outcome of the risk analysis and its implications on the sampling. The report should also give an overview of the substantive testing and fully disclose the information regarding the items included in the expenditure population and in the sample. The report should finally detail the findings identified through the performance of the agreed-upon procedures.

The report should be presented in English language.

The Expenditure Verifier will submit within 7 working days of the conclusion of the fieldwork a draft report to the Coordinator for comments to be received within 5 working days. This delay expired, the Expenditure Verifier will provide the final report to the Coordinator within 5 working days from the receipt of the comments (if any).

(b) Expenditure Verification Findings and Recommendations

The factual findings shall be reported in accordance with the formats and criteria specified in the Expenditure Verification Report template (Annex 3). The description of findings will include the standard applied, the facts, and the analysis of the Expenditure Verifier.

The verification report should include all financial findings made by the Expenditure Verifier, regardless of the amount involved. Changes in the financial findings occurring between the draft and final report as a result of the consultation procedure should be clearly and sequentially reported.

5. Other Matters

Subcontracting

The Expenditure Verifier will not subcontract without prior written authorization from the Coordinator.

6. AKF Safeguarding Policy and Code of Conduct

AKF has a Code of Conduct that aims to ensure that no individuals associated with our organization in any capacity (staff, volunteers, governance bodies, consultants / external service providers, beneficiaries, or community members) are subjected to any practices that infringe upon human dignity and that activities are conducted in accordance with the highest standards of honesty, integrity, and professionalism. The purpose of the AKF Code of Conduct is to define the values which must underlie the activities of every individual associated with AKF, irrespective of their status or position. The key areas of focus in the Code of Conduct include:

1. Professional relationships
2. Compliance with laws and regulations
3. Compliance with customs and traditions
4. Speak up policy and procedure
5. Disciplinary procedures and actions

The code establishes a reporting and protection mechanism designed to ensure the strict application of the described principles. Although the code applies mainly to conduct in the professional sphere, it must be recognized that misconduct beyond AKF in the private domain may also need to be addressed where this comes to light. Criminal or unethical acts committed outside AKF could result in disciplinary action. The successful applicant will be expected to sign a commitment statement for adherence to the AKF Safeguarding Policy and Code of Conduct

7. Criteria for evaluation of the consultant

The following criteria will be used to evaluate the bids submitted by consultants.

Criteria and Score

Technical capacity (Qualifications, experience)- 40 points

Budget- 20 points

Workplan/Timelines- 30 points

Total- 100 points

8. Duration of the consultancy

The consultancy will be for a duration of 30 days spread across January 2022 and February a final report is expected on or before 6^th February 2022.

[1] Directive 2006/43 of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253 EEC.