Audit Protocol for the Sustainable Sanitation and Hygiene in Eastern Indonesia (SEHATI) program.
The Sustainable Sanitation and Hygiene in Eastern Indonesia (SEHATI) programme is 3.5 years programme that expects the seven districts to be independently able to continue STBM 5-pillarsimplementation in all the remaining villages that have by then not yet been intervened.
The overall goal of programme is to achieve district-wide access to and utilisation of sustainable and improve sanitation and hygiene facilities, which contributes towards Indonesian Government’s target of providing universal access to water and sanitation for all population by 2019.
The specific objective is that by 2018, the local government authorities (at district, sub-district and village level) in seven districts in Eastern Indonesia are ensuring sustainable sanitation and hygiene through implementation of STBM 5-pillars.
A consortium of Simavi and five Indonesian NGOs as implementer will be responsible for implementing the programme. Simavi as the contract partner of EKN (Embassy of the Kingdom of the Netherlands) will manage this consortium and will be responsible for overall planning, coordination and capacity strengthening of the five Indonesian NGOs. The five implementing partners are:
1. Plan International Indonesia in North Lombok & Dompu
2. Yayasan Dian Desa (YDD) in Manggarai Barat
3. CD Bethesda in Southwest Sumba and Central Sumba
4. Rumsram in Biak, Papua
5. Yayasan Masyarakat Peduli in East Lombok
According to the programme planning, the implementing partners will be annually audited by an independent external auditor in Indonesia.
1. Ministry of Foreign Affairs (Grants) Framework Act;
2. Ministry of Foreign Affairs Grant Decree;
3. Ministry of Foreign Affairs 2006 Grant Regulations article 5.1;
4. Grant decision SEHATI 15th January 2016 with accompanied annex
Purpose of the Audit Protocol
This Audit Protocol sets out the applicable audit principle and requirements and explains how the audit findings must be reported.
The auditor will be engaged by the lead party (Simavi). The Minister may request that a review be conducted , in mutual consultation, to assess whether the house auditor has complied with the Audit Protocol.
Audit procedures concerning individual implementing partners
This paragraph describes the audit activities of auditor concerning the financial statement of each implementing partner.
Audit objective and scope
The auditor must establish that the transactions as accounted for in the financial statement comply the framework mentioned under paragraph legal framewok. The audit must be carried out in accordance with the requirements laid down in this Audit Protocol and with the relevant International Standards on Auditing (ISA).
The audit subject is implementing partner financial statement from 2016 for the year under review.
The activities described result in an audit opinion on the financial statement, drawn up in accordance with auditing standard 700.
Audit approach in respect of financial statement (Standard 100 till 900)
The audit must be performed in accordance with International Standards on Accounting (ISA).
The auditor must established compliance of the financial statement with the criteria of Audit
Protocol and that the below mentioned specific conditions have been met:
1. The auditor must establish the completeness and accuracy of all receipts and expenditures in the financial statement SEHATI including the own contribution of each implementation partner.
2. The expenditure and income are related to the activities mentioned in the first paragraph of this protocol
3. The expenditures are legitimate according to the criteria mentioned under a t/m e. The auditor establishes in this framework:
a) The expenses are substantiated with supporting documents
b) The organisation has a project administration and time writing system. The data from the project administration and time writing system match with data in financial administration.
c) Compliance with (European) tender procedure (Guideline 2004/17/EG and 2004/18/EG). If available local legislation.
d) Tax and social security payments have taken place in compliance with local legislation and on the period covered by the statement of assurance.
e) The declaration are paid on the basis of actual costs or lump sums as used in accordance with internal policies of the organisation.
Scope of Work
1. The report to be audited is SEHATI Project Financial Report from January 01, 2016 to December 31, 2016
2. Total of SEHATI Project Budget for the first year is EURO 1.086.570
3. The audit should be carried out in accordance with International Standards on Accounting (ISA)
4. An opinion as to the overall financial situation of the project.
Please Note that a detail TOR will be sent to the Auditor.
Qualification of an Auditor, Detail to Offer
1. Auditor should be a legal organization according to Indonesia Law.
2. The auditor must be completely impartial and independent from all aspects of management or financial interests in the entity being audited. The auditor should not, during the period covered by the audit nor during the undertaking of the audit, be employed by, serve as director for, or have any financial or close business relationships with any senior participant in the management of the entity.
3. The auditor must employ adequate staff with appropriate professional, including experience in auditing the accounts of entities comparable in size and complexity to the entity being audited.
4. Together with an offer, a Curriculum vitae (CVs) should be provided by the principal of the firm of auditors who would be responsible for signing the opinion, together with the CVs of field auditors. CVs should include years of professional experience of a principal signing the opinion as well as of auditors carrying the audit, together with details on major audits carried out by the applicable staff, indicating their capability and capacity to undertake the audit of the projects.
5. Offer budget should include all cost to undertake the audit with separated line item for each propose activity of audit.
6. The audits will be conducted within the period from June 1, 2017 to June 30, 2017.
7. The offer and the audit reports should be submitted in English.
1. A detail Term of Reference (TOR) can be requested by email to: Efendi.Siahaan@simavi.nl
2. Deadline for submission of offers is 26 May 2017, 5:00 p.m – Jakarta Time
3. Offers are to be submitted electronically to: Efendi.Siahaan@simavi.nl with External Auditor - SEHATI Project as subject of your email.