PROJECT AUDIT CONSULTANCY GREEN FINANCE FOR YOUTH EMPLOYMENT PROJECT

CORDAID TENDER MARCH 2026 

TERMS OF REFERENCE – PROJECT AUDIT CONSULTANCY: GREEN FINANCE FOR YOUTH EMPLOYMENT PROJECT

Closing date: 23 Mar 2026

ABOUT CORDAID

Stichting CORDAID Kenya (the Recipient) is an internationally operating value-based emergency relief and development organisation working in and on fragility. We stand with those who are hit hardest by poverty and conflict. We support them in their struggle to move beyond survival and fully participate in equitable resilient societies that enable them to get to their full potential. Our mission is to strengthen the capacities and resilience of vulnerable people and communities in fragile settings so that they are better prepared to face their future challenges.

For over 2 decades, Stichting CORDAID has spearheaded innovative programmes in arid and semi-arid areas in Kenya aimed at improving income and creating opportunities for livelihood diversification; strengthening the coping mechanism of local people to adapt to climate change, drought mitigation, preparedness, emergency and rehabilitation interventions. Stichting Cordaid in Kenya works closely with the Government of Kenya, local development partner organisations and communities through three thematic pillars namely sustainable agri-food systems and equitable access to humanitarian assistance and inclusive peace and reconciliation processes.

ABOUT GREEN FINANCE FOR YOUTH EMPLOYMENT (GFYE) PROJECT

The Recipient entered into a grant agreement with the International Fund for Agricultural Development (IFAD) to receive financial support amounting to EUR 1,874,000 for the implementation of the Green Finance for Youth Employment (GFYE) Project (2025–2027). The GFYE Project, funded by the Government of Finland and managed by IFAD, targets rural youth aged 18–35, with at least 50% women, engaged in on- and off-farm food system activities across seven counties in Kenya: Kakamega, Busia, Nandi, Kisii, Siaya, Trans-Nzoia, and Bungoma. The project integrates capacity building for both the demand and supply sides while leveraging incentive mechanisms to strengthen the green finance ecosystem. GFYE aims to directly benefit at least 4,000 youth and 250 youth-led or youth-employing MSMEs, with an estimated 5,000 additional indirect beneficiaries, including employees and suppliers. Youth with disabilities will also be supported, expanding access to sustainable entrepreneurship and employment opportunities through green investments. The initiative is implemented in partnership with the Government of Kenya (through the National Treasury), AGRA, and FSD-K, and is funded by IFAD as a supplementary program to RK-FINFA.

Component 2 of the project, in which Cordaid plays a key implementation role, focuses on strengthening the capacity of young entrepreneurs, youth-led and youth-employing MSMEs, and financial institutions to access and deliver green finance. The component has two main areas: Institutional Capacity Building, which trains at least two MFBs/MFIs and four DT-SACCOs to design and offer youth-tailored green finance products, covering risk assessment, product development, business planning, and the use of digital technologies; and Youth and MSME Capacity Building, which trains at least 4,000 rural youth entrepreneurs and 250 youth-led or youth-employing MSMEs on business planning, financial management, and climate-smart investments.

Training content emphasizes entrepreneurship, financial literacy, green investment practices, and climate adaptation. MSMEs also receive business development support, including supply chain management and linkages with youth producer groups. By involving financial institutions in training sessions, participants gain practical insights into loan requirements and application processes, reducing risks for first-time borrowers while strengthening lender confidence in youth financing. This integrated approach ensures that young people are not only skilled but also connected to the financial systems necessary to grow sustainable businesses and livelihoods.

2. Objectives and Standards

2.1 Audit Opinion on the Statement of Expenditure (SoE)

The objective of the audit is to enable the auditor to express an opinion on whether the Statement of Expenditures (including additional disclosures) is prepared, in all material respects, in accordance with the applicable accounting framework of Stichting CORDAID Kenya, and whether funds received and expenditures incurred for the reporting period comply with the IFAD Grant Agreement.

The audit shall be conducted in accordance with the International Standards on Auditing (ISA). The audit report shall provide an Audit Opinion on the SoE in line with ISA 700/705/800/805, as applicable.

2.2 Agreed-Upon Procedures Engagement

The auditor shall conduct the agreed-upon procedures engagement in accordance with International Standard on Related Services (ISRS) 4400 (Revised) issued by the International Federation of Accountants (IFAC).

The auditor is expected to:

• Perform the agreed-upon procedures listed in Section 3 of this TOR; and
• Issue a Report on Factual Findings to support IFAD’s assessment of the eligibility and proper use of project expenditures.
• The auditor shall comply with the IFAC Code of Ethics for Professional Accountants, issued by the International Ethics Standards Board for Accountants (IESBA)

3. List of Agreed-Upon Procedures Engagement

The auditor shall perform the following procedures related to the Statement of Expenditure:

1. a)Verify that the Statement of Expenditure (SoE) submitted to IFAD contains complete project identification details (recipient name, project title, grant number, currency, and reporting period) and that expenditures are presented in accordance with the approved budget and grant agreement.
2. b)Confirm that the total expenditure transaction listings for the reporting period reconcile with the cumulative expenditures reported in the SoE.
3. c)Verify that reported expenditures comply with eligibility criteria outlined in the IFAD Grant Agreement, including proper use of exchange rates, allowability of costs, and exclusion of ineligible expenditures.
4. d)Confirm that expenditures are accurately recorded in the accounting system of the Recipient and, where applicable, implementing partners, in accordance with applicable accounting standards and CORDAID’s internal financial policies.
5. e)Verify that expenditures are supported by adequate and appropriate documentation as required by IFAD and that records are properly maintained and accessible.
6. f)Select a representative sample of transactions based on professional judgement and risk assessment to verify eligibility, accuracy, and compliance. Where transactions involve implementing partners, a sub-sample shall be selected for each partner.
7. g)Perform any additional procedures considered necessary to meet the objectives of the engagement and report factual findings accordingly.
8. Requirements for the Auditor

4.1 General Principles

The auditor shall provide documents to show:

• A firm registered and licensed to practice public auditing in Kenya;
• A member of a national professional accounting body that is ICPAK.
• Independent from the Recipient and compliant with applicable ethical requirements.
• Tax compliant, with a valid tax compliance certificate;
• In good standing with all relevant regulatory and professional bodies; and
• Supported by a valid practicing certificate for the engagement partner

5. Reporting/Expected Deliverables

The auditor shall submit an audit package comprising:

1. a)The certified Statement of Expenditure (SoE);
2. b)An Audit Opinion on the SoE prepared in accordance with ISA;
3. c)A Report on Factual Findings including:

Background of the GFYE Project

• Overview of the transaction population and sample selection
• Description of audit and testing procedures
• Summary and detailed findings
• Identification of any ineligible expenditures and corrective actions
• Management responses to findings
• Names and roles of audit team members

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