REQUEST FOR PROPOSAL
For the Financial Audit Services to the British Council (Grant Manager)
For the DFID Support to Climate Change in Indonesia (114437)
For the Financial Audit Services to the British Council (Grant Manager)
For the DFID Support to Climate Change in Indonesia (114437)
TERMS OF REFERENCE / STATEMENT OF SCOPE OF WORK
1. BACKGROUND
An Accountable Grant Arrangement, dated on 22 June 2009, was signed betweenthe British Council and the Department of International Development (DFID) regarding DFID Support to the Government of Indonesia in Climate Change Programming, where the British Council was agreed as the Grant Manager of the project.
The Beneficiaries of the grant include National Development Planning Agency (Bappenas), the Government Investment Unit (PIP) of the Ministry of Finance, and the National Council on Climate Change – Indonesia (DNPI). The British Council’s role as the Grant Manager in this project is to manage technical and procurement input for the implementation of Climate Change Programming conducted by the above mentioned beneficiaries.
Regarding the grant and project duration, initially, the DFID has been prepared to make a grant not exceeding £850,000 (Eight Hundred and Fifty Thousands Pound Sterling). Following discussion and agreement by both DFID and the British Council and due to increasing demand for support regarding the project, the end date of the agreement has been extended to 31 December 2010 and the initial amount of grant has also been replaced by the figures and words “1,507,000 GBP (One Million and Five Hundred Seven Thousand Pound Sterling). As per recent amendment of the agreement, the grant is for financing activities of Climate Change Programming of 3 (three) beneficiaries and is aimed at financing other DFID-supported activities and events as necessary.
These Terms of Reference describe the activities to be undertaken by an independent auditor in order to carry out the annual financial audit.
2. OBJECTIVES / PURPOSES OF THE AUDIT
The overall objectives of the Audit are:
· To enable the auditor to express an opinion on the effectiveness of the project’s financial statements / reports, the operation of the overall financial management system including internal control and compliance with financing agreement;
· To determine whether or not the claims made on DFID, as recorded in the financial statement, were in accordance with the British Council conditions/procedures, supported and approved by appropriate documentation;
· To determine whether or not the all necessary supporting documents, records, and accounts including but not limited to the Fixed Asset Register for all significant fixed asset procured using DFID funds have been kept in respect to all project ventures;
· To provide project management with timely information on financial aspects of the project;
· To produce Auditor’s certification confirming the total income and expenditure in respect of the DFID grant for this project.
The audit should cover the period of 1 April 2010 – 30 April 2011, i.e. covering all sources and application of funds by all implementing agencies. The auditor can visit the various implementation units and other agencies as
considered necessary for the audit.
3. SCOPE OF AUDIT PERIOD OF FINANCIAL REPORT
The Auditor shall provide review service of financial transactions from 1 April 2010 – 30 April 2011 and determine whether the statement of expenditure prepared by the British Council is fairly presented in all material respects in relation to the financial statements taken as a whole and is in conformity with GAAP.
4. AUDIT APPROACH
The auditors’ work should include sufficient tests to establish whether:
*An adequate budgetary control system is in place to monitor actual expenditure against budget lines on a regular basis and to take effective remedial action as necessary, with adequate segregation of duties in the maintenance and review of accounts and the performance of reconciliations;*
*Expenditure of DFID funds managed by the British Council has been disbursed and used in accordance with the DFID Accountable Grant and other relevant agreements, and only for the purposes for which the funds
were provided;*
*Goods and services financed by DFID funding have been procured in accordance with the relevant British Council procedures and with due regard to agreed procurement best practice;*
*Inventories and assets registers are complete and accurate and the existence and ownership of assets and stock is regularly verified by physical checks to ensure that they are being used for the intended purposes of the project;
· Records of transactions include accurate information regarding any variations in currency exchange rates, where relevant;
· Expenditure of project funds has been approved at the correct level of delegated authority. This includes initial approval to incur expenditure and the payment of claims, invoices, salaries, allowances and any other items of expenditure charged to the project budget.
5. PROJECT FINANCIAL STATEMENT
The project financial statement should include:
· A Summary of Sources & Uses of Funds showing the sources of DFID funds and the uses of funds by disbursement category, showing expenditures of the project under each of the main project component and sub-component
headings*, both for the current fiscal year and accumulated to date;
· A separate note of any ineligible expenditure identified during the review;
· As an annex to the Project Financial Statements, the auditor should prepare reconciliation between the amounts shown as received by the project from DFID and that confirmed as being disbursed by DFID. As part of that reconciliation, the auditor should indicate the mechanism for the disbursement e.g. direct/ indirect reimbursement, direct/indirect expenditures.
6. AUDIT REPORT
The audit report should be submitted by 23 May 2011; and should be prepared in English to the British Council.
7. MANAGEMENT LETTER
In addition to the audit reports, the auditor will prepare a “management letter,” in which the auditor will:
· Give comments and observations on the accounting records, systems, and controls that were examined during the course of the audit; and identify specific deficiencies and areas of weakness in systems and controls and make recommendation for their improvement;
· Communicate matters that have come to attention during the audit which might have a significant impact on the implementation of the project; and
· Any other matters that the auditors considers pertinent.
8. GENERAL
The auditor should be given access to all legal documents, correspondence, and any other information associated with the project and deemed necessary by the auditor.
9. LOCATION AND TIME LINE OF AUDIT
The Contractor shall conduct the audit at the British Council Indonesia at Indonesia Stock Exchange Building, Tower II, 16th Floor, Jl. Jenderal.Sudirman Kav.52-53, Jakarta Selatan 12190, Indonesia.
Time line for audit:
· Announcement of request for proposal : 21 April 2011
· Proposals received by British Council on not later than 2 May 2011, 10 AM ( West Indonesia Time)
· Contract Award on 6 May 2011
· Audit field work (started by kick off meeting on the first day) 10 - 16 May 2011
· Report received by British Council by 23 May 2011
· Report submitted to DFID on 26 May 2011
CONTRACT TYPE
The amount in the contract is all inclusive including VAT and all related expenses.
PROPOSAL SUBMISSION
Prospective bidders shall submit one hard copy of their proposal by mail and or one soft copy by email to British Council Indonesia to the following name and address:
Puti Medina Indasari
Programme Assistant
The British Council Indonesia
Indonesia Stock Exchange Building, Tower II, 16th Floor
Jl.Jenderal.Sudirman Kav 52-53
Jakarta 12190, Indonesia
Email: puti.medina@britishcouncil.or.id, and copy to:
1. Ari.Sutanti@britishcouncil.or.id;
2. *Mark.Crossey@britishcouncil.or.id
DEADLINE OF SUBMISSION
The proposal must be submitted not later than 2 May 2011, 10 AM (West Indonesia Time)
Prospective bidders shall ensure their proposals contain the following:
1. Proposed plan of audit procedures/activity to be delivered within 1 week
2. Estimated number of personnel involved
3. Proposed service fee/quotation for the service
4. Company Profile and Portfolio with references (incl. contact names and phone numbers)
5. Resume/CV’s of personnel to be involved in the service.
PROPOSAL REVIEW
Your proposal will be reviewed based on completeness of information we requested, the value for quality service offered, the audit work timeframe and the professional credentials of the personnel involved.
1. BACKGROUND
An Accountable Grant Arrangement, dated on 22 June 2009, was signed betweenthe British Council and the Department of International Development (DFID) regarding DFID Support to the Government of Indonesia in Climate Change Programming, where the British Council was agreed as the Grant Manager of the project.
The Beneficiaries of the grant include National Development Planning Agency (Bappenas), the Government Investment Unit (PIP) of the Ministry of Finance, and the National Council on Climate Change – Indonesia (DNPI). The British Council’s role as the Grant Manager in this project is to manage technical and procurement input for the implementation of Climate Change Programming conducted by the above mentioned beneficiaries.
Regarding the grant and project duration, initially, the DFID has been prepared to make a grant not exceeding £850,000 (Eight Hundred and Fifty Thousands Pound Sterling). Following discussion and agreement by both DFID and the British Council and due to increasing demand for support regarding the project, the end date of the agreement has been extended to 31 December 2010 and the initial amount of grant has also been replaced by the figures and words “1,507,000 GBP (One Million and Five Hundred Seven Thousand Pound Sterling). As per recent amendment of the agreement, the grant is for financing activities of Climate Change Programming of 3 (three) beneficiaries and is aimed at financing other DFID-supported activities and events as necessary.
These Terms of Reference describe the activities to be undertaken by an independent auditor in order to carry out the annual financial audit.
2. OBJECTIVES / PURPOSES OF THE AUDIT
The overall objectives of the Audit are:
· To enable the auditor to express an opinion on the effectiveness of the project’s financial statements / reports, the operation of the overall financial management system including internal control and compliance with financing agreement;
· To determine whether or not the claims made on DFID, as recorded in the financial statement, were in accordance with the British Council conditions/procedures, supported and approved by appropriate documentation;
· To determine whether or not the all necessary supporting documents, records, and accounts including but not limited to the Fixed Asset Register for all significant fixed asset procured using DFID funds have been kept in respect to all project ventures;
· To provide project management with timely information on financial aspects of the project;
· To produce Auditor’s certification confirming the total income and expenditure in respect of the DFID grant for this project.
The audit should cover the period of 1 April 2010 – 30 April 2011, i.e. covering all sources and application of funds by all implementing agencies. The auditor can visit the various implementation units and other agencies as
considered necessary for the audit.
3. SCOPE OF AUDIT PERIOD OF FINANCIAL REPORT
The Auditor shall provide review service of financial transactions from 1 April 2010 – 30 April 2011 and determine whether the statement of expenditure prepared by the British Council is fairly presented in all material respects in relation to the financial statements taken as a whole and is in conformity with GAAP.
4. AUDIT APPROACH
The auditors’ work should include sufficient tests to establish whether:
*An adequate budgetary control system is in place to monitor actual expenditure against budget lines on a regular basis and to take effective remedial action as necessary, with adequate segregation of duties in the maintenance and review of accounts and the performance of reconciliations;*
*Expenditure of DFID funds managed by the British Council has been disbursed and used in accordance with the DFID Accountable Grant and other relevant agreements, and only for the purposes for which the funds
were provided;*
*Goods and services financed by DFID funding have been procured in accordance with the relevant British Council procedures and with due regard to agreed procurement best practice;*
*Inventories and assets registers are complete and accurate and the existence and ownership of assets and stock is regularly verified by physical checks to ensure that they are being used for the intended purposes of the project;
· Records of transactions include accurate information regarding any variations in currency exchange rates, where relevant;
· Expenditure of project funds has been approved at the correct level of delegated authority. This includes initial approval to incur expenditure and the payment of claims, invoices, salaries, allowances and any other items of expenditure charged to the project budget.
5. PROJECT FINANCIAL STATEMENT
The project financial statement should include:
· A Summary of Sources & Uses of Funds showing the sources of DFID funds and the uses of funds by disbursement category, showing expenditures of the project under each of the main project component and sub-component
headings*, both for the current fiscal year and accumulated to date;
· A separate note of any ineligible expenditure identified during the review;
· As an annex to the Project Financial Statements, the auditor should prepare reconciliation between the amounts shown as received by the project from DFID and that confirmed as being disbursed by DFID. As part of that reconciliation, the auditor should indicate the mechanism for the disbursement e.g. direct/ indirect reimbursement, direct/indirect expenditures.
6. AUDIT REPORT
The audit report should be submitted by 23 May 2011; and should be prepared in English to the British Council.
7. MANAGEMENT LETTER
In addition to the audit reports, the auditor will prepare a “management letter,” in which the auditor will:
· Give comments and observations on the accounting records, systems, and controls that were examined during the course of the audit; and identify specific deficiencies and areas of weakness in systems and controls and make recommendation for their improvement;
· Communicate matters that have come to attention during the audit which might have a significant impact on the implementation of the project; and
· Any other matters that the auditors considers pertinent.
8. GENERAL
The auditor should be given access to all legal documents, correspondence, and any other information associated with the project and deemed necessary by the auditor.
9. LOCATION AND TIME LINE OF AUDIT
The Contractor shall conduct the audit at the British Council Indonesia at Indonesia Stock Exchange Building, Tower II, 16th Floor, Jl. Jenderal.Sudirman Kav.52-53, Jakarta Selatan 12190, Indonesia.
Time line for audit:
· Announcement of request for proposal : 21 April 2011
· Proposals received by British Council on not later than 2 May 2011, 10 AM ( West Indonesia Time)
· Contract Award on 6 May 2011
· Audit field work (started by kick off meeting on the first day) 10 - 16 May 2011
· Report received by British Council by 23 May 2011
· Report submitted to DFID on 26 May 2011
CONTRACT TYPE
The amount in the contract is all inclusive including VAT and all related expenses.
PROPOSAL SUBMISSION
Prospective bidders shall submit one hard copy of their proposal by mail and or one soft copy by email to British Council Indonesia to the following name and address:
Puti Medina Indasari
Programme Assistant
The British Council Indonesia
Indonesia Stock Exchange Building, Tower II, 16th Floor
Jl.Jenderal.Sudirman Kav 52-53
Jakarta 12190, Indonesia
Email: puti.medina@britishcouncil.or.id, and copy to:
1. Ari.Sutanti@britishcouncil.or.id;
2. *Mark.Crossey@britishcouncil.or.id
DEADLINE OF SUBMISSION
The proposal must be submitted not later than 2 May 2011, 10 AM (West Indonesia Time)
Prospective bidders shall ensure their proposals contain the following:
1. Proposed plan of audit procedures/activity to be delivered within 1 week
2. Estimated number of personnel involved
3. Proposed service fee/quotation for the service
4. Company Profile and Portfolio with references (incl. contact names and phone numbers)
5. Resume/CV’s of personnel to be involved in the service.
PROPOSAL REVIEW
Your proposal will be reviewed based on completeness of information we requested, the value for quality service offered, the audit work timeframe and the professional credentials of the personnel involved.
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