Audit Consultant

Introduction 
The purpose of the Iraq Governance Performance and Accountability (IGPA) project is to advance effective, accountable, and transparent governance in Iraq. This USAID effort, implemented by DAI, supports the Government of Iraq (GOI) at all levels to better respond to citizen needs by supporting reform initiatives and Iraqi change agents on inclusive governance and public-sector transparency, accountability, and economy. Reform initiatives includes support to improve service delivery functions, public financial management, and open government initiatives. IGPA also supports the GOI and the citizens of Iraq in forming partnerships and collaborative efforts to solve problems jointly. IGPA has four (4) objectives: 

• Enhance GOI service delivery capacity 

• Improve public financial management 

• Strengthen monitoring and oversight of service delivery and public expenditure 

• Support Iraqi change agents (cross-cutting objective) 

IGPA also supports the fulfillment of the US Government’s commitment toward  decentralization as a means toward achieving the above objectives, particularly the  enhancement of the responsiveness of public services to citizens’ needs and the  improvement of transparency and accountability in the use of public resources. 
 

Background 
Auditing is an important government function to monitor its spending and to safeguard  government assets. The Federal Board of Supreme Audit (FBSA) is responsible for  conducting audits to enhance public sector and government accountability. The FBSA provides a critical link on financial and budget oversight between parliament and the  government, including government agencies, authorities, companies and controlled entities.  
The Administrative Financial Affairs Directorate (AFAD) was created to assume  responsibility for provincial public financial management as a result of decentralization  focusing particularly on the decentralized directorates. One of the key responsibilities of the  AFAD is audit and financial control. 
The FBSA and the Ministry of Finance should play a critical role in providing guidelines, rules  and regulations for AFADs and decentralized directorates to carrying out their internal audit  and control functions. 
The local audit consultant will work closely with the international audit consultant to review  the current system for internal audit and internal control based on the regulations issued by  MOF. The local audit consultant will provide recommendations on updating the FBSA and  MOF guidelines as needed and in developing a toolkit (manual, guidelines, templates,  worksheets) for the AFAD and decentralized directorates to use to effectively carry out  their internal audit and internal control responsibilities.

The local audit consultant will then support the international audit consultant to develop a  training and capacity building program in internal audit and control in accordance with FBSA  and MOF guidelines and procedures. This will be incorporated into the IGPA  comprehensive PFM training and capacity building program prepared for improving PFM  processes and procedures and building capacity at the provincial level in key Governorate  Office units and the decentralized directorates that provide services.  
Additionally, the local audit consultant will advise IGPA/Takamul on how to support the  AFAD to reinforce its role in the annual financial reporting process with MOF and FBSA. If  needed and decided, the local financial audit consultant can assist in drafting a directive to be  issued by the MOF on the role of the AFAD in the annual financial reporting process. 
 

Objective: 
The main objectives of the local Audit Consultant scope of work are to: 

1. Support the international audit consultant to review the current GOI laws,  MOF and Federal Board of Supreme Audit rules and regulations on internal  audit and control related to the AFAD and decentralized directorates.  

2. Work closely with the international audit consultant to review the current  system for internal audit and internal control implemented by the AFAD and  decentralized directorates and recommend improvements to address any  weaknesses or gaps in the system.  

3. Support the international audit consultant to develop a targeted training and  capacity building program based on the needs of the AFAD and decentralized  directorates to effectively carry out their internal audit and internal control  functions and responsibilities 

4. Support the IGPA PFM advisors to provide internal audit and internal control  training and follow up capacity building for staff of the AFAD and decentralized  directorates. 

5. Advise and support IGPA/Takamul to reinforce the AFAD role in the annual  financial reporting process in coordination with the MOF and FBSA 

6. Prepare a final progress report. 

II. Specific Tasks of the Consultant 
Under this Scope of Work, the Consultant shall contribute to performing, but not be limited  to, the specific tasks specified under the following categories: 

Task1: Review the current GOI laws, MOF and Federal Board of Supreme  Audit rules and regulations on internal audit and control related to the  AFAD and decentralized directorates. The consultant will work with the  international audit consultant to review the current GOI laws, MOF and FBSA rules and  regulations on internal audit and internal control. The consultant will support the  international consultant to prepare a compilation of all of the relevant current GOI  laws, MOF and FBSA rules and regulations as a basis for reviewing the current audit and  control system and making recommendations to improve the system in line with best  practices and adapted for local context. 
 

Task 2. Assess the current capacity of AFAD and decentralized directorates  in internal audit and internal control. The consultant will conduct an assessment  of the current state of the AFAD and decentralized directorates in audit and control.  The assessment will review the organizational structure and the staffing, roles and  responsibilities, process and procedures according to current GOI laws and regulations  for external auditing function and assess how well the AFAD and decentralized  directorates are executing the auditing and control function, identify gaps and weaknesses in the current system and recommendations for improving the audit and  control system. The local consultant will support the international consultant to  discuss the assessment findings with the AFAD and decentralized directorates officials  and staff for feedback and finalize the assessment report as needed. 
 

Task 3: Develop a targeted training and capacity building program based on  the needs of the AFAD and decentralized directorates to effectively carry  out their internal audit and internal control functions and responsibilities.  Based on the assessment findings, the local consultant will support the international  consultant to develop a targeted training and capacity building program for the AFAD  and decentralized directorates to build staff capacity in auditing and internal control and strengthen the institution.  
 

Task 4. Provide internal audit and internal control training and follow up  capacity building for staff of the AFAD and decentralized directorates in  collaboration with the PFM advisors. The consultant with the support of the PFM  advisors will conduct audit and control training sessions for AFAD and decentralized  directorates and follow up capacity building for the staff according to the training and  capacity building program developed under Task 3. 
 

Task 5. Advise and support IGPA/Takamul to reinforce the AFAD role in the  annual financial reporting process with MOF and FBSA. The local audit consultant  will work with the PFM advisors to assist AFAD directors to review and analyze the current  issue related to the AFAD role in annual financial reporting based on GOI laws and MOF  regulations. The local financial audit consultant will then support the PFM advisors to work  with the AFAD directors to develop recommendations for clarifying the role that AFAD can execute to prepare consolidated financial reports for MOF review and approval. The local  financial audit consultant will work with the AFAD directors to draft a working paper that  covers the analysis and recommendations for the specific role that AFAD should plan in the  annual financial reporting process. The local financial audit consultant can then facilitate a  meeting between AFAD, FBSA, MOF to discuss and reach agreement on the AFAD role in  line with GOI laws and MOF regulations and then follow up to ensure that AFAD directors  are implementing their roles as agreed by the AFAD, FBSA and MOF. If needed and  decided, the local financial audit consultant can assist in drafting a directive to be issued by  the MOF on the role of the AFAD in the annual financial reporting process. 
 

Task 6: Prepare a final progress report in line with IGPA’s guidance. The  consultant will prepare a final progress report that details the results of the audit training  and capacity building work implemented under this scope of work, recommendations for  next steps for the sustainability of the training and capacity building work, and any other  recommendations related to the work implemented under this scope of work. 
The consultant will also be required to provide weekly reports, success stories in  accordance with IGPA guidelines.