TERMS OF REFERENCE – PROJECT AUDIT CONSULTANCY: GREEN FINANCE FOR YOUTH EMPLOYMENT PROJECT

1. Title of Consultancy : Request for proposals (RFP) for Project Audit 2. Type of Audit : Project Audit (In-depth) 3. Audit Period : 6th May 2025- 31st December 2025 4. Location : Nairobi, Kenya 5. Implementing Organization : Stichting CORDAID Kenya, 6. Implementation Areas : Kakamega, Busia, Kisii, Bungoma, Trans-Nzoia, Nandi and Siaya 7. Project Title : The Green Finance For Youth Employment Project 8. Total Project Budget : EUR 1,874,000 9. Expenditure under Audit : EUR 56,000 10. Issuing Office & Address : Catholic Organization for Relief and Development Aid (Stichting CORDAID, Kenya) P.O. Box 40278 - 00100 Nairobi, Kenya www.Cordaid.org 11. Point of contact for clarifications and questions : STICHTING CORDAID, Kenya Email: [email protected] 12. Bid Submission : Electronically via the official email: [email protected] 13. Request for EoI Issue Date : 10th March 2026 14. Deadline for submission of questions and clarifications : 13th March 2026 15. Deadline for answering questions and clarifications : 16th March 2026 16. Deadline for Submission of Proposals : 23rd March 2026 5:00 PM EAT 17. Selection method : Technical – 70%; Financial – 30%ABOUT CORDAIDStichting CORDAID Kenya (the Recipient) is an internationally operating value-based emergency relief and development organisation working in and on fragility. We stand with those who are hit hardest by poverty and conflict. We support them in their struggle to move beyond survival and fully participate in equitable resilient societies that enable them to get to their full potential. Our mission is to strengthen the capacities and resilience of vulnerable people and communities in fragile settings so that they are better prepared to face their future challenges.For over 2 decades, Stichting CORDAID has spearheaded innovative programmes in arid and semi-arid areas in Kenya aimed at improving income and creating opportunities for livelihood diversification; strengthening the coping mechanism of local people to adapt to climate change, drought mitigation, preparedness, emergency and rehabilitation interventions. Stichting Cordaid in Kenya works closely with the Government of Kenya, local development partner organisations and communities through three thematic pillars namely sustainable agri-food systems and equitable access to humanitarian assistance and inclusive peace and reconciliation processes.ABOUT GREEN FINANCE FOR YOUTH EMPLOYMENT (GFYE) PROJECTThe Recipient entered into a grant agreement with the International Fund for Agricultural Development (IFAD) to receive financial support amounting to EUR 1,874,000 for the implementation of the Green Finance for Youth Employment (GFYE) Project (2025–2027). The GFYE Project, funded by the Government of Finland and managed by IFAD, targets rural youth aged 18–35, with at least 50% women, engaged in on- and off-farm food system activities across seven counties in Kenya: Kakamega, Busia, Nandi, Kisii, Siaya, Trans-Nzoia, and Bungoma. The project integrates capacity building for both the demand and supply sides while leveraging incentive mechanisms to strengthen the green finance ecosystem. GFYE aims to directly benefit at least 4,000 youth and 250 youth-led or youth-employing MSMEs, with an estimated 5,000 additional indirect beneficiaries, including employees and suppliers. Youth with disabilities will also be supported, expanding access to sustainable entrepreneurship and employment opportunities through green investments. The initiative is implemented in partnership with the Government of Kenya (through the National Treasury), AGRA, and FSD-K, and is funded by IFAD as a supplementary program to RK-FINFA.Component 2 of the project, in which Cordaid plays a key implementation role, focuses on strengthening the capacity of young entrepreneurs, youth-led and youth-employing MSMEs, and financial institutions to access and deliver green finance. The component has two main areas: Institutional Capacity Building, which trains at least two MFBs/MFIs and four DT-SACCOs to design and offer youth-tailored green finance products, covering risk assessment, product development, business planning, and the use of digital technologies; and Youth and MSME Capacity Building, which trains at least 4,000 rural youth entrepreneurs and 250 youth-led or youth-employing MSMEs on business planning, financial management, and climate-smart investments.Training content emphasizes entrepreneurship, financial literacy, green investment practices, and climate adaptation. MSMEs also receive business development support, including supply chain management and linkages with youth producer groups. By involving financial institutions in training sessions, participants gain practical insights into loan requirements and application processes, reducing risks for first-time borrowers while strengthening lender confidence in youth financing. This integrated approach ensures that young people are not only skilled but also connected to the financial systems necessary to grow sustainable businesses and livelihoods.The Recipient hereby requests:1. An Audit Opinion on the Statement of Expenditures (SoE); and 2. An Agreed-Upon Procedures (AUP) engagementfor the reporting period from 6 May 2025 to 31 December 2025. The total expenditure reported for the period under audit amounts to approximately EUR 56,000.In performing the engagement, the auditor shall familiarize themselves with:* IFAD Handbook on Financial Reporting and Auditing of IFAD-Financed Projects * The signed IFAD Grant Agreement and its schedules * IFAD financial management, procurement, and disbursement guidelines * List of required supporting documents available at www.ifad.org/grantforms2. Objectives and Standards2.1 Audit Opinion on the Statement of Expenditure (SoE)The objective of the audit is to enable the auditor to express an opinion on whether the Statement of Expenditures (including additional disclosures) is prepared, in all material respects, in accordance with the applicable accounting framework of Stichting CORDAID Kenya, and whether funds received and expenditures incurred for the reporting period comply with the IFAD Grant Agreement.The audit shall be conducted in accordance with the International Standards on Auditing (ISA). The audit report shall provide an Audit Opinion on the SoE in line with ISA 700/705/800/805, as applicable.2.2 Agreed-Upon Procedures EngagementThe auditor shall conduct the agreed-upon procedures engagement in accordance with International Standard on Related Services (ISRS) 4400 (Revised) issued by the International Federation of Accountants (IFAC).The auditor is expected to:* Perform the agreed-upon procedures listed in Section 3 of this TOR; and * Issue a Report on Factual Findings to support IFAD’s assessment of the eligibility and proper use of project expenditures.The auditor shall comply with the IFAC Code of Ethics for Professional Accountants, issued by the International Ethics Standards Board for Accountants (IESBA)3. List of Agreed-Upon Procedures EngagementThe auditor shall perform the following procedures related to the Statement of Expenditure:a) Verify that the Statement of Expenditure (SoE) submitted to IFAD contains complete project identification details (recipient name, project title, grant number, currency, and reporting period) and that expenditures are presented in accordance with the approved budget and grant agreement.b) Confirm that the total expenditure transaction listings for the reporting period reconcile with the cumulative expenditures reported in the SoE.c) Verify that reported expenditures comply with eligibility criteria outlined in the IFAD Grant Agreement, including proper use of exchange rates, allowability of costs, and exclusion of ineligible expenditures.d) Confirm that expenditures are accurately recorded in the accounting system of the Recipient and, where applicable, implementing partners, in accordance with applicable accounting standards and CORDAID’s internal financial policies.e) Verify that expenditures are supported by adequate and appropriate documentation as required by IFAD and that records are properly maintained and accessible.f) Select a representative sample of transactions based on professional judgement and risk assessment to verify eligibility, accuracy, and compliance. Where transactions involve implementing partners, a sub-sample shall be selected for each partner.g) Perform any additional procedures considered necessary to meet the objectives of the engagement and report factual findings accordingly.4. Requirements for the Auditor4.1 General PrinciplesThe auditor shall provide documents to show:* A firm registered and licensed to practice public auditing in Kenya; * A member of a national professional accounting body that is ICPAK. * Independent from the Recipient and compliant with applicable ethical requirements. * Tax compliant, with a valid tax compliance certificate; * In good standing with all relevant regulatory and professional bodies; and * Supported by a valid practicing certificate for the engagement partner4.2 Qualifications, Experience, and Team Composition4.2.1 Qualifications and ExperienceThe audit team shall demonstrate:* Proven experience in auditing IFAD-funded and other donor-funded projects; * Experience conducting audits in Kenya; * Knowledge of Kenyan statutory requirements, taxation, and financial reporting standards; * Familiarity with IFAD financial reporting and audit requirements;4.2.2 Team CompositionThe audit team shall consist of an Audit Partner with overall responsibility for the engagement, supported by appropriately qualified audit managers, senior auditors, and assistants.4.2.3 Categories of Staff* Audit Partner: At least 12 years of professional audit experience; ICPAK-licensed and authorized to sign audit reports in Kenya. * Audit Manager: At least 6 years of professional audit experience, including supervisory roles. * Senior Auditor: At least 3 years of professional audit experience. * Assistant Auditor: Relevant university degree with at least 6 months of audit experience.Curriculum Vitae (CVs) of all key staff shall be provided as part of the audit firm’s technical proposal.5. Reporting/Expected DeliverablesThe auditor shall submit an audit package comprising:a) The certified Statement of Expenditure (SoE);b) An Audit Opinion on the SoE prepared in accordance with ISA;c) A Report on Factual Findings including:* Background of the GFYE Project * Overview of the transaction population and sample selection * Description of audit and testing procedures * Summary and detailed findings * Identification of any ineligible expenditures and corrective actions * Management responses to findings * Names and roles of audit team members6. TimelineTimeline will be discussed and agreed during the entry meeting with the selected firm.7. Budget and Payment TermsThe total budget for this assignment should be clearly stated in the Certified Public Accountant Firm’s financial proposal (please note no visit to the field is expected). Payment will be made in two instalments upon satisfactory delivery of outputs as follows:* 40% upon signing the engagement letter. * 60% upon finalization of the audit and receipt of the duly signed report. * An E-TIMS invoice will be required for payment processing.10. SupervisionThe Certified Public Accountant Firm will report directly to the Stichting Cordaid, Kenya through the Project Controller.11. ConfidentialityAll data, reports, and materials collected or produced during this assignment will remain the property of Stichting Cordaid. The Certified Public Accountant Firm is required to maintain strict confidentiality regarding all information obtained during the evaluation and may not use it for any purpose other than the delivery of this assignment without prior written consent from Stichting Cordaid Kenya.HOW TO APPLY12. Application processInterested Certified Public Accountant Firms should submit:* A Financial Proposal (which includes professional fees (KES) plus any additional costs anticipated during the execution of the audit) & Technical Proposal in relation to the Terms of Reference providing the following key information and documents as outlined above * Applications should be sent via email to Stichting Cordaid Kenya at [email protected] with the subject line “GREEN FINANCE FOR YOUTH EMPLOYMENT- PROJECT AUDIT” by 5PM East Africa Time on 23rd March 2026. Only shortlisted firms will be contacted. Late or incomplete applications will not be considered.13. Evaluation CriteriaThe Certified Public Accountant Firm will be rejected if its proposal does not clearly demonstrate that it meets the following minimum mandatory criteria:RefItemMandatory Criterion 1No.RequirementsBidder’s ResponseYES/NO1. Provide copy of certificate of Incorporation or Certificate of Registration2. Provide copy of valid Tax Compliance Certificate3. A Practising License for the Certified Public Accountant Firm1. A Practising Certificate for the Partner 2. Proof of ICPAK membership in good standing for the Partner 3. Proof of independence to Cordaid (recipient) and compliant to ethical standards 4. Submit Technical and Financial Proposal in PDF format 5. Duly signed and stamped technical and financial proposalAT THIS STAGE, THE CERTIFIED PUBLIC ACCOUNTANT FIRM SUBMISSION WILL EITHER BE RESPONSIVE OR NON-RESPONSIVE. THE NON-RESPONSIVE SUBMISSIONS WILL BE ELIMINATED FROM THE ENTIRE EVALUATION PROCESS AND WILL NOT BE CONSIDERED FURTHER.The client shall use the following criteria in scoring the technical proposal of each Certified Public Accountant FirmNoDescriptionMaximum scoreA: Relevant Experience (25 Marks)Evidence of maximum of three similar audits conducted within the last 5 years, supported by recommendation letters. Evaluation considers similarity, complexity, and relevance to the assignment.B: Understanding of ToR & Methodology (15 Marks)Demonstrated understanding of the assignment, clarity of work plan, proposed audit approach, timelines, and risk management strategy.C : Firm’s Capacity (10 Marks)Overall institutional capacity including size, resources, methodology for conducting audits, and internal quality assurance mechanisms.D: Key Staff Competence (20 Marks)CVs of 4 key staff (maximised to 3 pages). Assessment will focus on academic qualifications, professional certifications (e.g., CPA, ACCA), years of audit experience, sector expertise, and role fit.Total70 MarksThe Stichting Cordaid, Kenya shall use the following criteria in scoring the financial proposal:NoDescriptionMaximum score1. Price Competitiveness (20 marks )Comparison of total bid price with other offers and market rates. The scores will be proportioned as per the formula below:Bidder’s Price Score=(Lowest Evaluated Price/ Bidder’s Evaluated Price ) ×202. Completeness & Compliance (5 marks)The bidder has cost all elements (including taxes)3. Costs Realism (5 marks)The c…