I. BACKGROUND:
Good Neighbors International (GNI) is an international humanitarian and development NGO established in South Korea in 1991 and has established operational offices in nearly 40 countries worldwide. Good Neighbors seeks to improve livelihoods, health conditions, education, hygiene, sanitation, access to clean water, promotion of children’s rights and establishment of social networks for the disadvantaged.
To ensure transparency, which is Good Neighbors’ number one priority, GNI follows procedures for executing funds for the public interest through a rational management system, clearly discloses the purpose, direction and content of institutions as well as accounting and auditing, and implements projects in accordance with ethical awareness.
To this end, GNI requires for each of its country offices, to hold at least one (01) internal control and one (01) external audit after each accounting period. This document therefore constitutes the Terms of Reference (« ToR ») according to which Good Neighbors Cameroon (GNCMR) wishes to engage an audit company to carry out an audit mission to review GNCMR accounts as of December 31, 2025.

Auditee: GOOD NEIGHBORS CAMEROON
Financial year: 01 January 2025 – 31 December 2025
Number of staff: 50
Total number of bank accounts and sub-accounts: 14
Number of offices: 03

II. Audit assignment

To produce an audit report similar to a long-form letter to the directors on the review of the accounts, identified internal control weaknesses and the auditor’s recommendations to remedy them.
The auditor is expected to make an overall assessment of internal controls based on established internal control standards.

The management letter should be attached to the audit report and should address the following topics or issues:
 An evaluation of GNCMR’s internal control system.
 A description of any specific internal control weaknesses identified in the practices within GNCMR, and the audit procedures followed to correct or remedy such weaknesses (recommendations to resolve/eliminate the noted internal control weaknesses should also be included).
 Audit observations and recommandations (see Appendix 2).
 Categorization of audit observations by risk severity: high, medium or low.
 Indication of the observations that affect the audit opinion.

In addition to the above general assessment, the following specific actions may be taken:
 Review the process followed in procurement/contracting activities and determine whether it is transparent, competitive, and in compliance with GNCMR procedures
 Review the process for hiring staff and consultants and determine whether it is transparent, competitive, and in compliance with GNCMR procedures.
 Review the accounting records and determine if they facilitate monthly financial reporting.

III. Objectives of the audit

The objective is to enable the auditor to:
a) Express a professional and independent opinion on the financial position of GNCMR as of December 31, 2025.
b) Examine the fairness, regularity and reliability of the accounting information provided in the financial statements of the year 2025.
c) Ensure that the resources made available to GNCMR are used for the purposes for which they were granted and verify the eligibility of all expenditures
d) Verify that the financial statements maintained by GNCMR have been prepared in a manner that accurately reflects financial transactions according to standards of traceability and transparency.
e) Verify the adequacy of the internal control system (examine the effectiveness of the internal control system structure, the organization’s ability to prepare reliable financial reports and to maintain complete accounting).
f) Examine the proper application of administrative, accounting and financial procedures (propose efficient measures for improving the maintenance of accounting and financial tools and/or amending procedures where necessary).
g) At the end of the mission, produce an audit report on the GNCMR accounts examined, produce an internal control letter and a compliance report.
h) Perform an analysis of weaknesses and risks in GNCMR’s current financial and accounting procedures.
i) Identify the risks associated with their findings and rank them as high, medium, or low.

IV. Standards and Guidance

The auditor is required to comply with:
1. International Standards on Auditing (ISA) regarding opinion audits.

2. The Code of Ethics for Professional Auditors, which establishes the fundamental ethical principles that apply to auditors, including the principles of integrity, objectivity independence, professional competence and care, confidentiality, professional conduct and adherence to technical standards.

V. Scope of the Audit

The audit will be conducted at the Good Neighbors Cameroon office in Yaoundé located in Bastos, behind the Alliance Pharmacy.
The auditor will have access to the necessary original supporting documents and key personnel during the audit opinion.
The audit is subject to OHADA GAAP accounting system, Cameroonian law and internal procedures of Good Neighbors Cameroon.

VI. Procedures, Documentation and Audit Evidence

The auditor shall perform the audit in accordance with international auditing procedures, which cover audit documentation and audit evidence, planning, fieldwork and reporting.
The auditor should perform the audit with professional diligence and judgment and determine the nature, timing and extent of audit procedures necessary to meet the engagement and audit objectives.
The auditor should prepare audit documentation and obtain sufficient appropriate audit evidence to support the findings and draw reasonable conclusions on which to base the opinion. The auditor exercises professional judgment in determining whether the audit evidence is sufficient and appropriate, considering the terms of this ToR (Terms of Reference).

VII. Auditor Profile

• The audit firm must be registered and regularly enrolled in a nationally or internationally recognized accounting body.
• The firm must have proven experience in accounting and financial auditing of institutions and organizations and have at least 5 years of experience in financial auditing.
• Have at least 3 years of experiences (or at least 3 different organizations) in auditing of NGO and/or non-profit organizations/institutions
• Mastery of IT tools, particularly accounting and project management software.
• Have a Good mastery of QuickBooks software (online).
• Have a highly qualified and experienced staff in audit and review work.

VIII. Submission of Application Package

The audit firm should submit a technical and financial proposal with the following components:

1) The technical proposal should indicate:
– Up-to-date administrative and tax documents.
– The key personnel involved and their CVs as well as references and letters of motivation.
– The schedule and timetable for the execution of the mission (minimum 15 days).
– The proposed methodology of conducting the audits.

2) The financial proposal should indicate:
– The total cost of the audit.
– The method of payment (check/bank transfer) and the payment terms.

NB: The Partner signing the report must be a Certified Public Accountant and member of the Professional Associations of Certified Public Accountants.

IX. Other provisions

1. Transcribe GNCMR’s internal financial report into the OHADA system (SYSCOHADA) for non-profit entities (SYCEBNL).
2. Complete the Statistical and Tax Declaration (DSF) for the 2024 financial year.
3. The Final Audit report must be submitted in hard copy (5 copies) and in electronic format no later than 5 calendar days after the end of the assignment.
4. The Submission files should be addressed in a sealed envelope to the Country Director of Good Neighbors Cameroon with the mention: « External Audit and Review of GNCMR’s Accounts – Financial Year 2025 ».
5. The sealed bid must be submitted no later than 19th of January 2025 at Good Neighbors Cameroon, Yaoundé office.

APPENDIX 1: Formulation of Audit Observations

Effective audit observations must include at least these four common elements:
1) Situation
2) Criteria
3) Effect, potential impact or risk
4) Recommendations.

APPENDIX 2 : Template for Reporting Audit Observations and Recommendations
Audit Area
Audit Element
Audit Observation
Risk Severity
Recommendation
Remarks to the Country Director/Top Management