REQUEST FOR PROPOSAL
REFERENCE NO.: 001/Audit/Dec/2011
SUBJECT: EXTERNAL AUDIT FOR CHILDFUND INDONESIA’S AFFILIATED ENTITIES
FOR THE YEAR ENDED JUNE 30, 2012
The audit proposal should be submitted in hard copy and soft copy and should reach the address below on or before 15 of December 2011 before 5pm (Jakarta Local Time).
Address : Jl. Taman Margasatwa No. 26 Blok E
Pasar Minggu - Jakarta Selatan 12550
Attn : Procurement Committee
Email : office@indonesia.childfund.org
a. The hard copy should be submitted in: one outer and two inner envelopes comprising of a technical proposal and a financial proposal clearly marked and Please mark each envelope with the RFP number.
b. The soft copy should comprise of 2 different files: Technical Offer and Price Offer. The Price Offer should be protected by a password to open which will be asked to the Bidder if the Technical Offer pass the technical evaluation.
Any Proposal received by ChildFund Indonesia after the deadline for submission of proposals, will be rejected.
----------------------------------------------------------
TERMS OF REFERENCE
EXTERNAL AUDIT FOR CHILDFUND INDONESIA ’S AFFILIATED ENTITIES
1. Background
ChildFund is a non-sectarian, non-profit and non-political International Non-Governmental Organization founded in 1938 that exists to help deprived, excluded, and vulnerable children have the capacity to improve their lives and the opportunity to become young adults, parents and leaders who bring lasting and positive change in their communities.
Today, ChildFund International reaches more than 15 million children and family members in more than 30 countries and, as a founding member of ChildFund Alliance, works with 11 other organizations around the globe to create supportive environments in which children can flourish.
ChildFund had been working in Indonesia since 1958. In 1973, ChildFund became officially registered in Indonesia and opened an office in Jakarta with charity based program. Currently, ChildFund works in partnership with 16 partners and provides capacity building, financial and networking support to 509 community-based organizations (CBOs) covering 158 villages in the provinces of South Sumatera, Lampung, DKI Jakarta, Banten, West Java, Yogyakarta, Central Java, East Nusa Tenggara and is expanding operations to the Eastern part of Indonesia. We also had emergency response project in Aceh and Padang which helped more than hundred thousands of lives. Currently, ChildFund Indonesia is direct supporting more than 35.000 children per year in Indonesia . More than 400.000 lives are benefited from our work in Indonesia .
ChildFund Indonesia works together with local partners / NGOs (Affiliated Entities – AE) in implementing its activities. Currently there are 12 Clusters, 2 Projects, and 1 dedicated Project. Details of the Local Partners are attached in Appendix I-1 of this ToR.
As required in the agreement between the AE and ChildFund, the annual financial statements of the AE has to be audited regularly and we are inviting your Firm to submit an audit proposal for auditing the financial statements of those AE listed in the Appendix I-1 for the year ended June 30, 2012.
2. Objective
The overall objectives of the audit are:
1. The auditor will perform work in accordance with the ChildFund International Audit Program, which encompasses financial controls, safeguarding of assets, compliance with ChildFund International policies and procedures, compliance with national laws and regulations, reviewing administrative controls in the areas of program and sponsor services, and assuring that appropriate controls are in place and functioning effectively;
2. The auditor will provide a complete audit report in accordance with local statutory requirements, as applicable, and in accordance with reporting standards expressed in ChildFund International’s Project Audit Report Package;
3. The auditor must express an opinion on the accuracy of the financial statements in all material respects and provide recommendation for any weaknesses noted
3. Audit Scope
The AE audit will focus on financial controls, safeguarding of assets and compliance with established policies, procedures, reporting practices, laws and regulations. The AE audit will enable the auditors to express an opinion on the accuracy of the financial statements and adherence to the AE own/or reasonable policies, procedures, laws and regulations. In addition, administration controls are reviewed in the areas of program and sponsor services to assure appropriate controls and verification of records, files and data.
4. Methodology, Deliverables and Time Table
a. Methodology
In conducting the audit, the auditor must use the ChildFund provided audit program in the Assurance Management System (HQMS).
HQMS is a web-based system that provides integrated modules for performing audits and assigning and tracking corrective actions. HQMS is installed as a web site on a central server at the International Headquarters Office in Richmond , Virginia and is accessible anywhere in the world through the internet. Users access the website using Microsoft’s Internet Explorer and login and navigate the system the same way they would access any other web page. HQMS is an English based system. This will allow consistency in the input of information and provide the greatest overall benefit to the organization. Audit Firms must be capable of reading, writing and understanding English.
The HQMS system allows the National Offices and audit firms to closely monitor the progress of the field work throughout the audit. Issues can be addressed as they arise.
Upon completion of the Affiliated Entities audit, the audit firm will meet with and report the findings to the senior management of the Affiliated Entity and National Office for discussion, review, clarification and conclusions. This meeting will also serve to establish corrective action recommendations and timelines for implementation.
Any supporting documentation or other work papers resulting from the audit should be retained by the independent auditor and be available should questions arise. Supporting documents that the audit firm feels should be included with the audit should be attached as references in the HQMS system were possible.
b. Deliverables
HQMS eliminates the need for any hard copy reports being submitted. All audits, findings and corrective action are tracked by the system. NO, RO and IO Assurance will have access to the data and be able to run management reports as needed.
There are specific reports that need to be attached to the audit record within the HQMS system as part of the ‘Audited Financials’ checklist.
Independent Auditor’s Report (Required)
The report is referred to as item 1 on the Audited Financials checklist.
The auditor’s report should state the purpose, scope, auditing standards, and results of the audit. An overall opinion on the financial statements is required. Scope limitations must be included. A sample Independent Auditors Report is reflected as Appendix I–2 of this ToR.
Financial Statements (Required)
These reports are referred to as items 2 – 6 on the Audited Financials checklist.
Financial Statements are primarily statutory requirements and should include revenue and expense statement and a balance sheet at a minimum. The remainder of this section should include any notes, assumptions, or background necessary to explain the results of the auditor’s review. This additional information is at the professional discretion of the auditor.
Management Letter (Optional)
The report is referred to as item 7 on the Audited Financials checklist.
The Management Letter is listed on the checklist in case the auditors need a place to attach issues or findings they encounter that are not already addressed somewhere else in the audit program.
Findings Requiring Immediate Attention
In the course of the review the auditor may encounter significant issues or situations requiring immediate disclosure and action. They are defined in the paragraph, Reporting the Results of the AE Audit, in the Section, AE Audit and Procedures, and may include: fraud and illegal acts, misappropriation of funds and/or misdirection of funds, audit scope limitations, unusual transactions, conflict of interest, and non-compliance with legal and statutory requirements. These should have been communicated during the course of the audit via a management alert in the HQMS system, but should also be identified and summarized in this section.
Other Comments
The auditor should state any comments that would disclose potential risk areas or opportunities to improve the effectiveness of the control environment and CO operations.
Before finalizing the audit report, the auditor must discuss the finding(s) with the respective AE and Senior Management Team (SMT) of ChildFund Indonesia in 2 (two) copies
c. Time table
The draft report (the audited financial statements, the management letter and the audit checklist) should be submitted (select only 1 from the 2 choices below to be put in the proposed time table):
1. One by one within 7 working days after the end of the audit field work of each respective AE; or
2. Together for all the AEs within 5 working days after the end of the audit field work of all the respective AEs.
The audit ‘Due Date’ is September 30, 2012 which is the date the audit should be ‘closed’ by. All audit work should be completed which includes: audit work in the field, corrective action recommendations, generating the findings record and creating all required corrective action plans.
5. Other Documents
The following documents have to be submitted by the auditor before performing the audit:
a. Certification of Professional Standing
Documentation certifying the professional standing of the selected auditor must be obtained and reviewed every year prior to the engagement. Auditors must be accounting professionals who meet national and/or local government standards and possess the necessary educational background and professional certification or registration (CPA, Chartered Accountant, etc.) to assure acceptance of the audit by any legal, governmental, or professional body.
b. Conflict of Interest Statement (COI)
There are no conflicting businesses or personal relationships existing between the national office, the Affiliated Entity to be audited and the independent audit firm. Further the conflict of interest statement should indicate that the independent audit firm assures that the auditors used will likewise, have no personal or business conflict of interest. The COI Statement attached in Appendix I-3 should be signed by and on the audit firm’s stationary.
----------------------------------------------------------
For additional information, please send it to address/e-mail below in writing on or before December 12, 2011
Procurement Committee
Address : Jl. Taman Margasatwa No. 26 Blok E
Pasar Minggu - Jakarta Selatan 12550
Fax No. : +62 7884 2269
Email : office@indonesia.childfund.org and cc to: esetheono@indonesia.childfund.org
No comments:
Post a Comment