Monday, April 10, 2017

Vacancy: Consultant for Partner's Financial Audit

Terms of Reference for Partner Financial Audit
1)     Purpose:
These Terms of Reference (TOR) have been prepared with the aim of engaging a third party consultant or firm for the purposes of a financial audit of a Indonesian microfinance organization partners.
2)     Scope: plans to conduct a financial audit of one of its partners who receive financial assistance for water and sanitation financing activities. The program period to be audited varied from one to other partners and the audit should be comprehensive covering the first 12 months of the program that runs.
3)     Rationale for the Engaging External Consultant Firms:
As part of internal monitoring processes and requirements, and for transparent reporting to our stakeholders, engages third party consultants to review financial transactions of our partner organizations to confirm that funds granted by are being spent according to the funding agreement between and the partner organization.
4)     Background:
About is a U.S.‐based non‐profit organization working to increase access to water and sanitation through collaboration with a variety of local partners.’s WaterCredit initiative leverages the existing relationships, infrastructure and expertise of financial institutions to increase access to capital for water and sanitation, and to educate and empower low‐income households to invest in water and sanitation facilities. launched WaterCredit globally in 2003 to provide financial institutions with targeted subsidies and technical assistance to build their capacity to offer water and sanitation financial products to those living at the base of the economic pyramid (BOP). WaterCredit supports a range of financial institution activities related to the development of sustainable water and sanitation loan portfolios, including:
       Market research;
       Water and sanitation financial product development and marketing;
       Community mobilization;
       Water and sanitation education/training; and
       Institutional capacity building.
Under WaterCredit, financial institutions have flexibility to use their existing lending methodologies and develop products that finance locally appropriate water and sanitation facilities. Loan product design is based on market research analyzing key variables such as local needs and preferences, existing water and sanitation infrastructure and services, and product affordability. By program end, financial institutions should have sustainable water and sanitation microfinance products integrated into their on‐going product offerings.
About Microfinance Partner: has been implementing the WaterCredit program in collaboration with 11 partners/MFIs. However, this financial audit will be conducted only for 2 partners below:
        1.      Kopsyah Benteng Mikro Indonesia (KBMI) 
        2.      Koperasi Mitra Dhuafa (KOMIDA)
5)     Overview of Existing Financial Monitoring Activities: has a regular financial monitoring process for each partner that includes the submission of a monthly financial expenditure report. This report and access to staff, partner staff, and partner financial and accounting records will be available to the 3rd party consultant. Additional background materials such as a project narrative summary will be made available to the consultant if requested.
6)     Scope of Evaluation:
          a)       Audit Time Period: Kopsyah Benteng Mikro Indonesia/KBMI (January 2016-January 2017), and Koperasi Mitra Dhuafa (April 2016–March 2017) 
          b)      Inclusion: All funds spent should be accounted for by reviewing financial records and confirming that actual spending aligns with the amounts                        reported to in the most recent comprehensive financial expenditure report.
          c)      Geography: This project will be based in partners’ head offices: South Jakarta (KOMIDA) and Tanggerang, Banten (KBMI). The auditor will not need to visit                 the branch offices as part of the audit. 
          d)      Work Completion Time Period: The draft financial audit report should be submitted to within 45 days from the start of the contract, and the final                 report should be submitted within 10 days from receipt of feedback from
7)     Approach and Methodology:

         a.      Previous Experience: will engage an auditor with previous experience of working with retail financial institutions and preferably NGO‐funded                           grant programs.
      b.   Code of Conduct: Consultants will maintain independence and the highest professional ethical standards in collecting and reviewing information and                 presenting the assessment results. Consultants will not share audit findings with the audited parties without the permission of Consultants will                     sign a non‐disclosure agreement committing to keep private all information gathered during the audit process.
         c.      Methodological Framework: The consultant will familiarize themselves with the current partner grant budget including the main categories and                 line‐item activities. Using a cash basis (non‐accrual), the consultant will compare funds reported spent by the partner with actual accounting records within                  the partner organization. Consultant will have access to the most recent financial expenditure report, partner bank statements, accounting practices/guidelines,                 staff timesheets, meeting attendance lists, partner general ledger, purchase receipts, invoices and other sources as needed.
            d.      Data Collection and Analysis: General points to be covered will include, but are not limited to the following:
 i.  Audit 100% of partner expenses charged to grant Identification  of  any  discrepancies  in  actual  expenses  charged  to  from financial report sent to by partner.
 ii. Calculation of total amount of new investments into the financial institution by third parties (e.g. banks, concessionary lenders, etc.) to fund the water and sanitation loan portfolio, if any.
 iii. Review and assessment of partner program financial procedures related to the program including, but not limited to internal controls, asset control, record keeping, document signature requirements, and financial reporting.
  iv.  Recommendations for improving partner program internal controls, asset control, record keeping, document signature requirements, and financial reporting.
            e.      Deliverables: The consultant will develop an audit report which should include the items mentioned under the Data Collection and Analysis section.
A draft version of the report should be submitted to After which, will have two weeks to provide feedback, at which point the consultant will have an addition 10 days to submit a final version of the audit report.
All the documents/reports pertaining to the audit will be kept confidential and submitted to after the assignment is over.
8)     Fees and Other Expenses:
The consultant will be paid on fixed‐schedule basis and all indirect expenses such as travel expenses should be included in the proposed budget.
9)     Proposal Contents and Deadline:
Proposals must include at a minimum the following sections:
        1)      Discussion of tasks to be undertaken by auditor and proposed methodology for collecting information
        2)      Project staffing plan and brief staff bios
        3)      Firm qualifications and relevant work experience
        4)      Budget following the template below and estimated number of days (from start to finish) to complete work

Budget Template

Item #
Cost Category
Unit Cost
Unit Quantity (e.g. Persondays,
taxi fares, per diems)
Total Personnel Expense
Supplies / Other
Total NonPersonnel Expense
Proposals should be submitted to Ade Reno Sudiarno, WaterCredit Senior Program Manager and must be cc to no later than April 15th, 2017 with “Financial Audit Services ” in the subject line. Proposals submitted after this date will not be considered.

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