PROGRAMME TITLE – EA 04/2021/Armenia; “Shelter and Livelihood Support to Conflict-Affected Population in Armenia”

DURATION: 01.04.2021-31.05.2022

BUDGET: requested: 793,889 EUR; Fundraised: 838,666 EUR

AUDIT PERIOD: 01.04.2021-20.07.2022

BACKGROUND  

In March 2021, Armenian Caritas (AC) in partnership with Catholic Relief Services (CRS), led an assessment in Gegharkunik and Shirak regions to deepen the understanding of the updated needs of families impacted by the war, including displaced, host and local families. The analysis of the results of the assessment showed that families expressed a distinct need for longer-term, sustainable support—specifically, shelter and livelihoods. AC found that there were no actors providing longer-term shelter or livelihood support to individuals or families who had been impacted by the conflict.

Thus, based on conflict-affected families’ expressed needs and the persistent gaps in shelter and livelihoods, as well as organizational capacity, AC launched the project “Shelter and Livleihood Support to Conflict-Affected Population in Armenia” and made a decision to target Shirak and Gegharkunik regions.

Within the frames of the project Armenian Caritas provided:

  1. Shelter assistance in the form of minor repairs to 500 vulnerable conflict-affected households living in substandard shelters (including displaced, host and local families)
  2. Light livelihoods support 400 displaced families in the form of productive assets so they may begin to resume their previous livelihoods and earn income.
  3. Mapping and referral activities to 600 families to create linkages and ensure coordination among actors in the field providing services/resources (iNGOs, NGOs, CSOs, local/regional government etc.)

Shelter: Across all subgroups and regions, displaced, host and local families all expressed shelter needs and all interviewed families in Gegharkunik and Shirak said minor repairs would make the greatest impact for improving their living environment. For example, upgraded bathroom conditions in host families would result in improved hygiene/sanitation for the large number of people living in the household. Moreover, roof and wall repairs and/or window replacement would enhance thermal insulation and decrease costly heating bills during winter months. For families with household members recently injured in the conflict, upgrades or adaptations such as ramps and/or handrails would greatly improve accessibility.

The estimated average for shelter repairs is 385,000 AMD (644 Euro) per household.

The actual cost per household is based on individual households’ needs and corresponding repair plans.

Livelihood: Contributing to income security amongst the displaced population is a critical entry point for survival and recovery as well as a precondition for stability, reintegration, and socio-economic development in the post-conflict context. Moreover, AC’s experience shows that livelihoods support, especially when paired with shelter support, can provide maximum impact for sustainable recovery. Yet, the project also recognizes that some displaced households may only need livelihoods support, and those who qualify, will be able to access that distinct support. As such, the project included a light rural and urban livelihoods component with a targeted focus on replacing displaced families’ lost productive assets.

The estimated cost per household to restore livelihoods assets is 250,000 AMD (418 Euro).

  • For displaced families in rural contexts, the cost would cover the purchase of a small livestock, and key inputs (e.g., chickens, rabbits, pigs, fencing, feed, crop seed, tools and/or equipment rental for land preparation.)
  • For displaced families in urban contexts, the cost would cover the purchase of small assets such as a sewing machine and materials, hairdressing tools, baking equipment, tools and inputs etc.

This support would enable displaced families to resume previous livelihoods and generate enough income (or produce enough sustenance) to meet their most basic needs and avoid using negative coping mechanisms.

AC used a cash-based modality for the livelihoods component to give beneficiaries maximum flexibility to purchase inputs (as per their plans) that meet their distinct livelihood needs, as per the IA-RP recommended approach.

Mapping and Referrals: To ensure displaced, host and local community members are aware of the resources/services available to them in their respective regions, the project developed a detailed mapping and referral system. Additionally, with the recent launch of several new government cash programs, project staff monitored the extent to which eligible households were aware of the programs and their ability to apply and access funds.

LOGICAL FRAMEWORK

Goal: Displaced and other conflict-affected families rebuild their lives

 

Strategic Objective 1 (SO1): Conflict-affected families live in dignified shelters

 

Intermediate Result 1.1 (IR1.1): Conflict-affected families make critical improvements to their shelter according to their repair plans

Output 1.1.1.: Conflict-affected families attend orientation sessions on the shelter repair process

Output 1.1.2: Conflict-affected families work with Caritas staff/engineers to develop shelter repair plans tailored to their needs

Output 1.1.3: Conflict-affected families receive shelter assistance

 

Strategic Objective 2 (SO2): Displaced families use livelihoods assets to meet their basic needs

 

Intermediate Result 2.1 (IR2.1): Displaced families use livelihoods assets to restart their livelihoods

 

Output 2.1.1: Displaced families develop livelihood plans, consistent with their previous livelihoods prior to displacement

Output 2.1.2: Displaced households receive livelihoods assistance

 

Cross-Cutting Intermediate Result (IR): Conflict affected families are referred to available services

Cross-Cutting Output 1: Mapping of services and programs

Cross-Cutting Output 2: Referrals provided to targeted displaced families and other conflict-affected families

 

 

OBJECTIVE

(additional relevant objectives may be included)

The objectives of this audit are to enable the Auditor to express an opinion on whether:

  1. the Financial information and reports (see annex 1) accurately present, in all material respects, the actual expenditure incurred and the revenue received by the Project Holder for the period (insert EA implementation period), in conformity with the applicable Contractual Conditions set with donors (if applicable);
  2. the incomes and expenses, assets and liabilities are adequately supported by original documentation and have been properly accounted for; for assets declared as used, the inventory systems show proofs of existence at the date of the agreement; the method applied for the conversion of local and foreign currencies into Euro is consistent with standard accounting practices.
  3. adequate and effective internal control system exist.

AUDIT SCOPE

The audit work shall cover the adequacy of accounting and financial operations, reporting and management as well as accounting procedures (referring to the national law and the international accounting standards).

A verification of mathematical accuracy is expected, in order to ensure that the expenditures described in the financial statements are reconciled with the supporting documents and with the bank statements.

The period covered by the audit is: 01.04.2021 to 20.07.2022.

The audit will take place in the headquarters of Armenian Caritas in Gyumri.

VERIFICATION PROCESS AND METHODOLOGY

The audit methodology and the audit techniques to be used are those in accordance with international auditing standards and following the ISA 805 norm.

REPORTING

The audit report should include the following:

  1. Audit method used and the scope of the audit.
  2. A statement declaring that all information and documentation needed to complete the audit has been made available as required.
  3. Declaration that the required audit standards that have been applied.
  4. Distribution and use of the audit report.
  5. Formal Opinion.
  6. The period covered by the report.
  7. Cash flow statement covering the EA implementation period (01.04.2021-20.07.2022).
  8. Statement of receipts and expenditures covering the EA implementation period (01.04.2021-20.07.2022).
  9. Income table by source of funding
  10. The balance at the end of the implementation period.

 

The auditor should submit a letter to the management at the completion of the audit. The management letter should include recommendations to address any weaknesses identified with regards to financial regularity, the internal control system, adherence to contract conditions (if applicable) and the effective use of financial resources.

 

The audit report shall be written in the Confederation language used for the Emergency Appeal in question.

DEADLINES

The auditors shall provide a draft final report of their findings including an opinion, a management letter and a set of conclusions and recommendations not later than 1 week after the end of their field work.

These findings are to be reviewed by the National Caritas Director/Secretary General before the audit report is finalised and submitted.

ELIGIBILITY OF THE AUDITOR

By agreeing these ToR the Auditor confirms that he/she meets at least one of the following conditions:

 

  1. The Auditor and/or the firm is a member of a national accounting or auditing body or institution which in turn is member of the International Federation of Accountants (IFAC).
  2. The Auditor and/or the firm is a member of a national accounting or auditing body or institution. Although this organisation is not member of the IFAC, the Auditor commits him/herself to undertake this engagement in accordance with the IFAC standards and ethics set out in these ToR.
  3. The Auditor and/or the firm is registered as a statutory auditor in the public register of a public oversight body in a third country and this register is subject to principles of public oversight as set out in the legislation of the country concerned (this applies to auditors and audit firms based in a third country).

 

 

Please submit your proposal with supporting documentation and financial proposal to info@caritas.am and ch.mkhitaryan@caritas.am by June 26th, 2022.