General Audit of ICBRR – Integrated Water Supply
Sanitation, and Hygiene Promotion Project
In Papua Province
2012 - 2015
Netherlands Red Cross Indonesia Delegation
I.
Background
First assessment for a WASH programme in Papua was conducted in
August 2010. The idea for the first assessment was to look at the possibility
of working in Papua. One year after submitting the report on the feasibility of
the Papua project, green light on proposal development for Papua project was
given by NLRC HQ to the Indonesian Red Cross (PMI). A second assessment was
conducted in October 2011 to look at the feasibility of the recommendations, as
well as a workshop for proposal development.
The situation and challenges of Papua and PMI were communicated to
NLRC HQ even before the programme proposal was developed. Therefore, NLRC
decided to have two phases of programme implementation. The first
implementation phase was focusing more on organizational development and pilot
programmes, and included giving an experience to PMI resources in running a development
programme. The second phase of the programme was planned to have other Watsan
activities in Papua, whether in Keerom or even in other districts, however was
not started due to the slow progress of the program.
The allocated budget for the project amounted up to € 294.663. The program
was closed in March 2015 after which it was reviewed and evaluated. As the
program could not be implemented as planned the total expenditures remained €104,000,-
Cash advance
disbursements on quarterly base to PMI were the main system of support for the
implementation of the project. PMI subsequently provided financial reports on a
monthly basis.
II.
Objective
The main objective of
the audit is to request auditors to express an audit opinion to the statement
of revenues and project fund and thereby to provide reasonable assurance that
the financial statement gives a true and fair view of the financial results of
activities in revenue collected and disbursement paid and cash flows in
accordance with modified cash basis of accounting which is other comprehensive
basis of accounting principles. The
objective of the audit is the financial reports of the Integrated Water Supply,
Sanitation and Hygiene Promotion Project for the period from January 1, 2012 to
August 31, 2015.
1.
The
audit should be carried out in accordance with generally accepted auditing
standards (ISA).
2.
The
audit should comprise as many observations as are considered necessary under
the circumstances.
3.
The
opinion of the auditor about the underneath mentioned specific objectives of
the audit need to be reflected in the audit report and are as follows:
3.1
To
state an opinion on the financial statement, in particular whether it gives a
true and fair view of revenue and expenditure in accordance with the conditions
laid down in the decision and with generally accepted accounting principles.
3.2
To
evaluate the recipient’s internal control system, estimate the audit risk and
identify any matters worth mentioning, including any material weaknesses in
internal control.
3.3
To
make observations in order to determine whether the recipient has complied with
all material aspects of the conditions laid down in the MoU. All material
matters not meeting the afore mentioned conditions and all indications of
illegal acts have to be identified. Such observations shall also include the
requirements relating to any contribution to be made by the grant recipient.
3.4
Check
whether the reported activities and reported expenditures comply with: the
signed MoU (including budget) and approved budget revisions.
3.5
Check
whether all eligible costs are charged to and paid within the eligible period.
3.6
Check
whether no assets (buildings, stock or land) have been bought and charged to
this programme.
3.7
Check
whether no reserves have been made with money of this programme. Only a reserve
for severance (termination benefits, only is case of national law) is allowed.
3.8
Check whether the organisation complies
with the following conditions:
a)
The applicable rules, regulations
and laws were applied to the reported amounts;
b)
The quality of the process of
internal control, validation of the expenditures, contracting and monitoring
were performed well;
3.9
Evaluate whether the administration
gives a good and complete understanding of:
a) The amounts received from the
NLRC;
b)
Return payments to the NLRC;
The amounts justified by the PMI
III.
Output and Deliverable
The audit report should cover all the financial statements of the Integrated Water Supply, Sanitation
and Hygiene Project for the period January 1, 2012 to August 31, 2015 and include the following elements:
The aim and scope of the financial
audit, the audit criteria applied, where relevant, and any restrictions imposed
on the scope of the audit.
The financial statement with disclosures and
the accounting principles applied.
An auditor's report stating clearly
the auditor's opinion of the financial statement. In the case of an unqualified
auditor's report, the following text should be used:
"We have audited the financial statement of * at * for the period from * to *. The financial statement is the responsibility of the entity's management. Our responsibility is to express an opinion on the financial statement based on our audit.”
"We have audited the financial statement of * at * for the period from * to *. The financial statement is the responsibility of the entity's management. Our responsibility is to express an opinion on the financial statement based on our audit.”
IV.
Audit Activities and Schedule
The audit field work will be conducted at the
Netherlands Red Cross Indonesia office in September – October 2015 since all
documents are stored in the Netherlands Red Cross office. Following the field
work, the auditor will submit draft report in early of November 2015 and the
final report in late November 2015.
V. Fees
Each
bidder is required to submit a cost proposal or fee in IDR, which is considered
an all-inclusive fee.
VI. Timing of Audit
The
draft audit report and opinion should be received 10 working days after
completion of audit field work. They should be A4 formatted in English and
copied 2 hard copies.
VII. Submission and Deadline of Offers
The
closing date of proposal submission is 7 September 2015 at 05.00 pm. The proposal should be submitted in sealed
envelope to Netherlands Red Cross/Tini Sirait Wisma PMI Lt. 5 Jl. Wijaya 1 No.
63 Kebayoran Baru – Jakarta Selatan 12170 or email to TSirait@redcross.nl.
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