Request for Proposal Audit Services

*Request for Proposal*

*Audit Services***

Yayasan Pusat Kajian dan Perlindungan Anak/PKPA (Center for Child Study and
Protection) is a an NGO which concerns on the reality of the violations and
ignorance of children’s and women’s rights in Indonesia, especially in
North Sumatra and Aceh. PKPA mission is Advocacy for possible policy
changes for child well-being and protection and implementation of the
rights of the child (including the youth).

PKPA was established on 21 October 1996 and had been registered by Notarial
Certificate No.  52 Dated 22 August 2008 and the Decree of Minister of
Justice and Human Rights of the Republic of Indonesia No.
AHU-4047.AH.01.02. Year 2008.

PKPA, Jln. Abdul Hakim No. 5-A Pasar I Setia Budi, Medan, Sumatera Utara,
20132, Phone: 061. 8211117, Fax: 061. 8213009. Email: pkpamdn@indosat.net.idand
pkpamdn@gmail.com, is requesting proposals to perform the audit of  PKPA
statements and related compliance work for the project “*Enhance Youth
Entrepreneurship Empowerment in Simeuleu Island, Aceh”* funded by LWR.

*Executive summary: *

Simeulue is a remote island with limited economic and educational
opportunities. The majority of the population is unskilled subsistence
farmers and fisherman. The province of Aceh (Nanggroe Aceh Darussalam)
according to BPS 2009 has 21.80% of the population below the poverty line
compared to the National poverty level of 14.15%. Anecdotal evidence
collected by PKPA suggests in the targeted sub-districts of this project up
to 50% of the population are below the poverty line with above normal
school drop-out rates and teenage marriages.



The goal of the project is “*320 youth in 3 sub districts of Simeulue
Island have entrepreneurial skills* *and knowledge to succeed economically
and socially through microenterprise, reproductive health,and government
advocacy”.*



*Project objectives:*

1.      To improve existing school entrepreneurship module and implement in
6 schools.

2.      To strengthen 3 existing school-based business and 2 youth based
business units in Teupah Barat over 24 months

3.      To increase the business skills of 200 youth in Teupah Barat over
24 months

4.      Increase awareness of reproductive health and gender equality in 3
sub-districts in 24 months.

5.      To develop the capacity of the steering committee members to
advocate to the district governmentfor the funding of youth programs on
Simeulue Island in 24 months


*Audit objectives: *

The overall objective of the audit is to determine if the partner adhered
to the terms of the cooperation agreement in relation to good financial
management practices and give a detailed account on how the funds were use
from 1”January 2012 until 31” March 2013.

The auditor will be expected to conduct an audit in accordance with the
International Standards on Auditing, and in accordance to the
Indonesia lawsand requirements. Specifically,

   1. Review project financial data for accuracy and reliability and make
   sure submitted financial reports are accurate and free of material
   misstatements
   2. Examine projects’ financial transactions and accuracy and reliability
   of its supporting documentation
   3. Assess  the accounting principles used;
   4. Assess significant estimates made by the project leaders;
   5. Assess the overall presentation of the financial statements/reports
   and make sure they are in accordance with the approved budget;
   6. Review procedures and management and examine if these provide
   adequate internal control;
   7. Conduct ‘Forensic Audit Testing’ to identify procurement practices,
   procedures, documentations, to verify existence, or lack of, of bids,
   approvals, invoices, receipts, goods received, etc, over the life of the
   project.
   8. Conduct Interviews with key individuals involved in the procurement
   process.  This  include but is not limited to the interviews with vendors
   involved, individuals receiving goods or services (e.g., the members of the
   Cooperative or village group), members of the Cooperative or village group
   Leadership team,  LWR’s Indonesia staff and others involved in the
   procurement processes.
   9. Document and report all the significant information provided during
   these interviews that support any indication of negligence or potential
   fraud.
   10. During examination of the detail accounting records, make sure there
   is a system, which allows easy examination and sampling of transactions;

   11. Advice LWR-Indonesia on improving its partner monitoring systems and
   processes


The overall output of the consultancy is an audit report expressing an
independent opinion on the financial statements on the audit and include a
report/schedule identifying any tested transactions (indicating transaction
date, descriptions, amount, and other details) that did not comply with the
terms of the agreement, partner policy, local law, or indicates the
possibility of fraud or other illegal action.

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*THE PROPOSAL*

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*

In responding to this request, following information shall be submitted:

   1. Details of firm’s experience in providing auditing services to
   companies in the not-for-profit sector, especially international
   organizations;
   2. Describe how your firm will approach the audit of the organization;
   3. Describe how and why your firm is different from other firms being
   considered, and why our selection of your firm as and independent auditor
   is the best decision we could make;
   4. Include fee proposal to complete the services outlined in this
   request, with whatever guarantees can be given regarding increases in
   future years.
   5. Include estimated on site time required to complete the services.
   6. Provide at list 3 references from not-for-profit organizations that
   you’ve conducted audit for in the recent years and are still your clients;
   7. Provide names and resumes of key personnel that will conduct the
   audit.


Proposals, which shall not be more than 3 pages in length (not including
references and resumes) shall be submitted no later than  15 March 2013 to
PKPA Office, Jl. Abdul Hakim No. 5A Pasar 1 Setia Budi Medan, Telp.
061-8200170, Fax 061-8213009, Email : pkpamdn@indosat.net.id and
pkpamdn@gmail.com  Attention *Sony Sucihati*

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*

*SELECTION CRITERIA*

PKPA will select the audit firm in consultation with Lutheran World Relief
Indonesia based on a combination of criteria including: evidence of
proficiency in the audit of domestic non-profit organizations, fees, and
required time to complete the engagement.  The final decision will be made
prior to *20 March 2013*.  Selected audit firm shall aim to complete the
audit no later than *30 April 2013* (by submitting the complete set of
Audit Opinion, Audited Financial Statements, Notes to Financial Statements
and the Management letter).