Independent Auditor

Background

The Government of Timor-Leste, through its National Directorate for Biodiversity under the State Secretary for Environment, is implementing a medium-size project funded by the Global Environment Facility (GEF). The project is entitled "Establishing the National Framework and Operational Capacity for Implementing the Nagoya Protocol in Timor-Leste." The objective of this project is to establish the national ABS framework and the operational capacity for implementing the Nagoya Protocol in Timor-Leste. This aims to deliver fair and equitable benefits from the utilization of genetic resources to its people and, ultimately, to advance conservation and sustainable use of globally significant biodiversity in the country. The project's objective is to establish the conditions enabling sustainable access to the genetic resources of Timor-Leste, which will deliver fair and equitable benefits to its people, while protecting legal and customary ownership and traditional knowledge.

The country became a party to the United Nations Convention to Combat Desertification (UNCCD) in 2003, the United Nations Framework Convention on Climate Change (UNFCCC) in 2006, and the United Nations Convention on Biological Diversity (CBD) in 2007. In 2011, it published its National Biodiversity Strategy and Action Plan (NBSAP) and its Fourth National Report to the CBD. In 2015, it published its Fifth National Report to the CBD, as well as a revised edition (2015) of the NBSAP 2011-2020. The government of Timor-Leste is, therefore, committed to addressing the environmental and conservational challenges facing the nation and to achieving global environmental benefits. Although Timor-Leste has not yet acceded to the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization (a supplementary agreement to the CBD), the country has taken important steps towards its implementation. In particular, the NBSAP includes Strategic Action 16 on Access and Benefit Sharing (ABS), and the recently approved Biodiversity Decree Law (2017), in its Chapter 7 on "Genetic resources and traditional knowledge," lays the legal foundation for the development of the national ABS framework.

Objective of the Audit

United Nations Environment Programme

To enable the auditors to express an independent professional opinion on the financial position of the ABS project for the fiscal year of 2023 and to ensure that the funds utilized for ABS project's activities have been used for their intended purposes.

Audit Scope and Reporting

1. The audit will be carried out in accordance with the International Auditing Standards and will include tests and verification procedures as the auditors deem necessary.
2. Verify all funds have been used in accordance with the established rules and regulations of the project.
3. Goods, works, and services financed have been procured in accordance with the project established rules and procedures.
4. Appropriate supporting documents, records, and books of accounts relating to all activities have been kept. Clear linkages should exist between the books of accounts and the financial statements presented.
5. Comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions.
6. Express an opinion as to the reasonableness of the financial statements in all material respects.
7. Include in their reports an opinion on compliance with procedures designed to provide reasonable assurance of detecting misstatements due to errors or fraud that are material in the financial statements.

Management Letter

A management letter providing the auditor's observations and findings on accounting records, systems, and internal controls that were examined during the audit, including:

• Weaknesses and issues in accounting and internal control systems, including irregularities in the use of grant funds, ineligibility of expenditures, and procurement-related weaknesses and issues.
• Identify specific deficiencies and areas of weakness in systems and controls and make recommendations for improvement.
• Communicate matters that have come to their attention during the audit which might have a significant impact on the sustainability of the organization.
• Any matters the auditor considers pertinent or significant as to impact implementation.
• Provide a closing meeting with the National Director of Biodiversity to obtain the Director's comments on the accuracy and completeness of facts and conclusions, including whether or not NDB concur with the audit findings. The closing meeting will be part of audit work papers.

The audit shall be for each of the following periods:

• 2023 financial expenditures

Auditor Qualifications

The auditor must satisfy the following minimum requirements:

• A legal entity professional body authorized in the country and an International Organization of Supreme Audit Institutions.
• Have adequate relevant professional and educational qualifications, or be able to provide audit staff with adequate qualifications, experience, and competence.
• Technically competent and able to conduct the audit in line with the auditing standards.
• Objective and independent from the project, its staff, and activities, and from all aspects of management or financial interests of the [DP/NDA/AE].
• Possesses a proven track record in the financial audit of public sector projects, or audits of similar nature, type, and complexity, or donor-funded projects.

The contract shall be started from July 15 - August 16, 2024.

More information & ful ToR: https://drive.google.com/file/d/1J4lyu9wNjdNpPAeQOVPe0cfFf2tz4YjF/view?usp=sharing