External Audit of the project “Yalla for employment and protection

The audit will be conducted in accordance with International Standards on Auditing (ISA).

In order to meet these different objectives, the auditor acquires sufficient knowledge of the terms and conditions of the grant contract by carefully examining the grant contract and its appendices and other relevant information by asking the beneficiary. The auditor shall ensure that a copy of the original signed grant agreement and any appendices, together with any amendment requests and signed amendments, are obtained. The auditor shall submit and review the mid-term report and the final report being prepared by the beneficiary.

The auditor will complete the checklist for conducting financial audits established by the French Development Agency to ensure that the audit covers all the provisions of the agreement (see annex I).

The auditor verifies that the financial report fulfills the following conditions:

• The financial report complies with the model imposed by FDA;
• The financial report covers the entire action independently of the financing share of FDA.

The auditor verifies that Asmae has complied with the following accounting rules:

• The accounts kept by the beneficiary for the implementation of the action are accurate and up-to-date;
• The beneficiary has a double-entry accounting system;
• The accounts and expenditures relating to the action are readily identifiable and verifiable;
• The accounts shall indicate, where applicable, the interest received on the funds paid.

The auditor compares the information contained in the financial report with the beneficiary's system and accounting records (eg. general balance of accounts, general ledger accounts, auxiliary logs, payroll, etc.).

The auditor performs an analytical check of the expenditure items of the financial report.

It verifies that the budget mentioned in the financial report corresponds to that of the grant contract (authenticity and authorization of the initial budget) and that the expenses incurred are included in the budget of the grant contract.

The auditor checks if changes have been made to the budget of the grant contract. If this is the case, the auditor checks that the beneficiary has requested a modification of the budget and obtained an amendment to the grant contract.

The auditor checks the eligibility criteria set out below for each selected expenditure item:

(1) Costs actually incurred

The auditor verifies that the expenditure relating to a selected position has actually been incurred by the beneficiary and is related to the specific expense. To this end, the auditor reviews vouchers (eg invoices, contracts) and proof of payment. The auditor also reviews evidence of work performed, goods received or services provided and verifies the existence of assets, if any.

(2) Cut-off - Implementation period

As part of the financial audit, the auditor verifies that the expenditure relating to a selected item has been incurred during the implementation period of the action: January 1st, 2022 to December 31st, 2024.

(3) Budget

The auditor verifies that the expenditure for a selected position has been indicated in the budget of the action.

(4) Necessary expenses

The auditor checks whether, in all likelihood, expenditure relating to a selected position was necessary for the implementation of the action and whether it should be incurred for the sub-contracted activities of the action, by examining the nature of the expenditures using vouchers.

(5) Account Statements

The auditor verifies that the expenditure for a selected item is recorded in the beneficiary's accounting system in accordance with the accounting standards applicable in the country of establishment of the beneficiary and its usual accounting practices.

(6) Justified expenses

The auditor verifies that the expenditure for a selected item is supported by evidence, supporting documents and accounts and / or bank accounts and any other document relating to the financing of the project.

(7) Determination of value

The auditor checks that the monetary value of a selected expense item complies with the receipts (eg. invoices, salary slips) and that the correct exchange rates are used, if applicable.

(8) Classification

The auditor reviews the nature of expenditures for a selected position and verifies that the item of expenditure has been classified in the appropriate sub-section of the financial report.

(9) Compliance with Asmae and the AFD’s procurement rules

The auditor examines the procurement, nationality and origin rules that apply to a sub-heading, a category of items or a specific item of expenditure. The auditor verifies that expenditures have been incurred in accordance with these rules by reviewing the supporting documentation for the procurement process and procedure. When the auditor identifies points of non-compliance with procurement rules, the auditor shall notify Asmae of the nature and their financial impact in terms of non-eligible expenditure.

The auditor shall verify that indirect costs representing general administrative costs do not exceed 14% of the total direct eligible costs of the action.