FINANCIAL AUDIT PAPUAN WOMEN'S EMPOWERMENT

Term of Reference

SHORT TERM CONSULTANT

FINANCIAL AUDIT PAPUAN WOMEN'S EMPOWERMENT

PREFACE

Papuan Women's Empowerment project (PAWE) aims to empower poor Papuan Women by increasing their participation in the implementation and decision making processes in the community driven development program Rencana Strategis Pengembangan Kampung (RESPEK) so that they are better able to benefit from the program and address their needs and priorities by :

1. Strengthening existing Women's organizations and networks to provide leadership, training and advocacy to women at village level.

2. Building the capacity of women by providing capacity building and training opportunities.

3. Building awareness and capacity of RESPEK project staff, village leaders and government officials to pro mote gender equality.

PAWE project funded by Japan Social and Development fund and supervised by the World Bank, project implemented by Oxfam GB in Papua and West Papua province. The category of PAWE project activity that has been approved consists of 6 category as written below :

GRANT ALLOCATED

GRANT NO. TF093439 - PAPUAN WOMEN'S EMPOWERMENT

Category Code GRANT CATEGORY Total Grant in (USD)

Grant Allocated until May 2011 Current Grant Allocated

I CONSULTANT SERVICE 445,360 465,360

II GOODS 88,600 88,600

III TRAINING AND WORKSHOP 414,250 394,250

IV SUB GRANTS 600,000 600,000

V OPERATING COST 52,200 52,200

VI MANAGEMENT FEES 128,033 128,033

TOTAL AMOUNT 1,728,443 1,728,443

Oxfam GB as project implementer has an obligation in accountable the use of project fund, as an organization that really upholds the transparency and accountability in Financial Management, Oxfam GB will conduct Financial Audit of PAWE project fund since project launched in July 2009 until June 2011.

Objective of Audit

The overall objectives of the audit is to enable the auditor to express a professional opinion on the project financial statements, the operation of the overall financial management system including internal controls, and compliance with financing agreements

The audit should cover the entire project, i.e. covering all sources and application of funds by the implementing agency. The auditor should visit the various implementation units and other agencies as considered necessary for the audit.

Scope of Audit

The audit will be carried out in accordance with International Standards of Auditing. It will include such tests and controls as the auditor considers necessary under the circumstances. Specific areas of coverage of the audit will include the following:

(1) An assessment of whether the project financial statements have been prepared in accordance with consistently applied generally accepted accounting principles and give a true and fair view of the operations of the project during the year and the financial position of the project at the close of the fiscal year. Any material deviations from the accounting principle, and the impact of such departures on the project financial statements as presented would be stated;

(2) An assessment of the adequacy of the project financial management systems, including internal controls. This would include aspects such as adequacy and effectiveness of accounting, financial and operational controls, and any needs for revision; level of compliance with established policies, plans and procedures; reliability of accounting systems, data and financial reports; methods of remedying weak controls or creating them where there are none; verification of assets and liabilities; and integrity, controls, security and effectiveness of the operation of the computerized system (if any); and

(3) An assessment of compliance with provisions of financing agreements, especially those relating to accounting and financial matters. This would inter alia include verification that:

a. all external funds have been used in accordance with the conditions of the relevant financing agreements, with due attention to economy and efficiency, and only for the purposes for which the financing was provided.

b. counterpart funds have been provided and used in accordance with the relevant financing agreements, with due attention to economy and efficiency, and only for the purposes for which they were provided;

c. expenditures charged to the project are eligible expenditures and have been correctly classified in accordance with the relevant financing agreement;

d. goods and services financed have been procured in accordance with the relevant financing agreement;

e. all necessary supporting documents, records, and accounts have been kept in respect of all project activities;

f. clear linkages exist between the accounting records including accounts books and the Project Financial Statements;

g. where Special Account has been used, it has been maintained in accordance with the provisions of the relevant financing agreement;

h. FMR used as the basis for the submission of withdrawal applications accurately reflect expenditures and activities during the project period; and

i. project expenditures as reported by the project implementation agencies are reconciled with the amounts withdrawn from the Special Account and the amounts deposited to the special account are reconciled with the amounts disbursed from the Grants.

4) An assessment of procurement management whether procurement performance has met procurement plan agreed at negotiations or subsequently updated and highlight key procurement issue (if any).

(5) An assessment of project implementation and whether financial and physical progress are consistent during the project period. The monitoring of expenditures in relation to physical progress is ensuring that the project is under proper financial control.

Project Financial Statements.

Project Financial Statement prepared by the project executing agency would be based on the project's compilation Financial Monitoring Reports (FMR) and should include: (i) Annual Project Sources and Uses of Funds; and (ii) Cumulative Project Sources and Uses of Funds. (iii) deposits and replenishments received from the Bank; (iv) withdrawals from the special accounts. Sources of funds would show the Grants and counterpart funds separately (if any). Project expenditures would be summarized by main project categories

The auditor should asses the FMR as a basis for the submission of withdrawal applications, accurately reflect expenditures and activities during the project period. The auditor should (i) ascertain that the financial management system is reliable to produce the FMR and has met Bank's requirement during the year; and (ii) asses the possible risks of continuing to use the method of disbursement in the future. The auditor should apply such review and tests of controls as the auditor considers necessary. These expenditures should be carefully checked eligibility against relevant financing agreements, and by reference to the project documents. Ineligible expenditures should be identified.

Audit Implementation and Audit Report

Audit will be conducted at Oxfam GB Papua office in Jayapura for one month effective, started from November 1, 2011.

The audit report shall contain the auditor's opinion on the fairness of the project financial statements. The report should refer to the auditor's TOR. The auditor should submit the report to the project executing agency who should then promptly forward one copy of the audited accounts and report to the Bank.

Management Letter

In addition to the audit reports, the auditor will prepare a "management letter," in which the auditor will:

a. 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;

b. give comments on economy, efficiency, and effectiveness in the use of resources;

c. report on the achievement of the planned results of the project;

d. report on the degree of compliance of each of the financial covenants on the financing agreement and give comments, if any, on internal and external matters affecting such compliance;

e. communicate matters that have come to the auditor attention during the audit which might have a significant impact on the implementation of the project; and

f. any other matters that the auditors considers pertinent.

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. Confirmation should also be obtained of amounts disbursed and outstanding at the Bank.

PROPOSAL SUBMISSION

For organizations who are interested please submit

the audit proposal & budget to

OXFAM GB Papua:

* BTampubolon@oxfam.org.uk

With the proposal submission deadline: 20 October 2011.