December 2019

Terms of Reference for Financial Audit
About NFDHR. 2
Objective of the Audit. 2
Scope of the Audit. 2
Audit Duration. 3
Deliverables: 3
Qualification of the Audit Firm: 3
Audit Fees: 3



The National Foundation for Development and Humanitarian Response (NFDHR) is none-profit and none-governmental organization (NGO) that was established June 2012 in Yemen. Our vision is a peaceful and stable Yemen free of poverty, in which all people have equal access to basic needs and human rights, and our mission is to provide an integrated humanitarian and development response to aid Yemen and other conflict-affected countries through a professional, neutral, and transparent approach.
We aim to achieve our overall vision and mission by working to enhance local communities' development and stability through identifying structural causes of poverty, raising awareness, increasing access to basic services, and focusing on building citizens' capacities, especially women and youth, so as to enable their participation in the decision-making process that leads to sustainable development and a peaceful society within their developing and conflict-affected countries. NFDHR aims to accomplish these goals through its seven core programs: Food Security and Livelihoods (FSL); Water, Sanitation, and Hygiene (WASH); Health and Nutrition; Education; Gender and Protection; Shelter and Non-food items (NFIs); and Peace building and Governance.

Objective of the Audit

The objective of the audit of NFDHR’s financial statements is to enable the auditors to express an independent professional opinion on the financial position of NFDHR and to ensure that the funds utilized to NFDHR’s activities have been used for their intended purposes.
The books of accounts of NFDHR provide the basis for preparation of the NFDHR’s Financial Statements. Proper books of accounts as required by law have been maintained by NFDHR and also maintain adequate internal controls and supporting documentation for the transactions.

Scope of the Audit

  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. To verify that all funds have been used in accordance with the established rules and regulations of NFDHR and only for the purposes for which the funds were provided.
  3. To ensure the goods, works and services financed have been procured in accordance with the NFDHR established rules and procedures.
  4. To verify that 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 to.
  5. To make sure that the financial statements have been prepared by NFDHR management in accordance with applicable accounting standards and give a true and fair view of the financial position of NFDHR and of its receipts and expenditures for the period ended on that date.
  6. To provide a comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions.
  7. To express an opinion as to reasonableness of the financial statements in all material respects.
  8. The audit must include in their reports 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.
  9. Must conduct entry and exit meeting with the Chief Executive Officer of NFDHR.
  10. In addition to the audit report, the auditors will prepare a Management Letter on the following:
  1. Give comments and observations on the accounting records, procedures, systems and controls that were examined during the course of the audit.
  2. Identify specific deficiencies and areas of weakness in systems and controls and make recommendations for improvement.
  3. Report on the implementation status of recommendations pertaining to previous period audit reports.
  4. Communicate matters that have come to their attention during the audit which might have a significant impact on the sustainability of the organization.
  5. Bring to the Chief Executive Officer’s attention any other matters that the auditors consider pertinent.

Audit Duration

The audit work shall be completed between two to three months maximum from the date of commencement of the audit.


  1. The Auditors on completion of the audit work will submit 5 (five) original copies of the Audit Report appended to the Financial Statements along with the reports to the attention of the Chief Executive Officer.
  2. Management letter in accordance with the scope of work described here before.

Qualification of the Audit Firm:

  • The auditing firm should either be based in Yemen and/or have a branch office in Yemen, along with 5-8 years’ experience working in Yemen.
  • Should have an affiliation/membership with internationally reputed audit firms will be eligible to apply.
  • Experience auditing NGOs, specifically national NGOS
  • Provide a list of qualified staff (with attach CVs) that will work on the audit.

Audit Fees:

The audit fees will be fixed through a competitive bidding process.

Selection Criteria:

  1. 50% for the Financial Offer which will be calculated based on NFDHR estimated cost
  2. 50% for the Technical Offer which will be calculated based on the following:
  1. 20% For the previous experience in Auditing INGOs and NGOs
  2. 15% For providing Audit Plan and Timeline
  3. 15% For providing Qualified Audit Team (CVs should be provided)

How to apply:

  1. The TOR and RFQ template will be available along with the advertisement in NFDHR website, also will be available at NFDHR Office during the advertisement period
  2. Complete and submit RFQ template (the template should be signed and stamped)
  3. The Bidders should provide two separate offers (Technical Offer and Financial Offer)
  4. The basic items of the technical evaluation mentioned above should be taken in consideration in the Technical Offer
  5. The offers should be submitted to NFDHR Officer in sealed envelopes before end of 04:00 PM 22nd of December 2019.
For more information:  
Please send us your inquiries either by email to (info@nfdhr.org) or send us an official letter to our office directed to the Board of Trustees “Audit and Compliance Committee”

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