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MaR2R Audit Annex 1

Annex 1

Sections 1 and 2 below should be reviewed in accordance with the terms and conditions of the Terms of Reference including compliance with donor regulations and cost share requirements as applicable. All costs must be acceptable and reasonable.

1. Agreed-Upon Procedures Report including the following procedures:
   • Examining all cash receipts under the agreement dated March 2021 until May 6, 2023, and tracing them into the bank statement.
   • Agreeing with the total of the cash receipt under agreement March 2021 until May 6, 2023, equal to the amount listed on the Schedule of Revenues Received and expenses Incurred, (the Schedule).
   • Examining a minimum of 30%of the total expenses incurred under the agreement to ensure:
     1. The expense was supported by proper documentation.
     2. The expense amount was accurate.
     3. The expenses were properly classified.
     4. The expense was properly authorized.
     5. The expense was incurred during the project period.
     6. The expense appears to be a reasonable expense in conjunction with carrying out the agreement’s intended purpose (acceptable) and
     7. The expense was for intended purposes only.

Note: The procedure should state what percentage and dollar amount of expenses were examined. For salary expense, each payment to an employee (weekly. bi-weekly, or monthly payroll payment) should be considered a single expense transaction and verified by a timekeeping system.

• If the agreement calls for the purchase of or transfer of equipment more than $5,000 in conjunction with the agreement, then a list of equipment purchased should be prepared based on the general ledger and the equipment should be observed for physical existence.

All exceptions to the above procedures should be noted in the body of the text after each of the lettered procedures.

2. A “Schedule of Revenues Received and Expenses Incurred". The title should include the name of the organization, the project name and number, and the audit period covered. The
   schedule should contain three sections: revenue, expenses and net amount due.

• The revenue section should include all cash receipts by the organization for the audit period that were received within the audit period.
• The expense section should contain an agreement budget and actual amount for each of the expense categories listed in the agreement/grant.
• The net amount due should equal (1) - (2).

All deviations or questions on the above procedures should be discussed with the appropriate Finance & Administration Manager.

3. The auditor's report shall state that the audit was conducted in accordance with International Financial Reporting Standards (IFRS), Generally Accepted Auditing Standards
   (GAAS) or International Standard on Accounting (ISA) and include the following:
   • An opinion (or disclaimer of opinion) as to whether the financial statements) of the donor program is presented fairly in all material respects. Conformity with the stated accounting policies:
   • A report on internal control related to the donor program. which shall describe the scope of testing of internal control and the results of the tests.
   • A report on compliance which includes an opinion (or disclaimer of opinion) as to whether the auditee complied with laws and regulations, and the provisions of contracts or grant agreements which could have a direct and material effect on the donor program: and
   • A schedule of findings and questioned costs for the donor program that includes a summary of the auditor’s results relative to the donor program.