Vacancy for Project Audit

Project Audit

Addressing the imbalance – Conflict Prevention and Peace Building in Fragile Contexts  (020_002708_04)

 

1.    Introduction

Islamic Relief (IR) is an international relief and development charity, Non-Governmental Organization (NGO) founded in the UK in 1984. As well as responding to disasters and emergencies, Islamic Relief promotes sustainable economic and social development by working with local communities - regardless of race, religion or gender.  Islamic Relief commenced operations in Indonesia in 2003, secured a MoU with Ministry of Home Affair in 2003 as a   INGO.

2.    Project Background

Islamic Relief Indonesia (IRID) launched a Twenty Four months programme titled “Peace Building in Sumbawa” with following briefs:

a.    Project is funded by “Swedish International Development Cooperation Agency (SIDA)” through Islamic Relief Sweden.

b.    Time duration of the project is from 1^st June, 2018 to 31^st May, 2020.

c.    Total project Budget is 4,069,947/- SEK

d.    Project implementation area is “Sumbawa”

Islamic Relief Indonesia will work with the local NGO partners: LP2DEM (Bima district), LENSA (Dompu district), and LP2DER (Bima City) to promote peacebuilding and conflict prevention through:

-     Civic Education in the form of community discussions to promote civic virtues and democratic values to transform the mindset and behavior of individuals to adopt peaceful behavior when dealing with differences and conflict;

-     Dialogues and joint works among conflicting communities to break down the isolation, prejudice, polarization, stereotype so that win-win solution will be the choices for their problem they are facing instead of taking violence and conflict action;

-     Activating strategic role of the youths, women and the faith leaders in promoting conflict sensitivity and peacebuilding process within their communities

  

The project will be implemented in Indonesia, NTB province, Bima District-Bima City-and Dompu District from 1 June 2018 to 31^st May 2020.

The communities in targeted areas face serious problem due to repeated conflict. The conflict happens nearly every time in nearly all of the places.  It involves between communities and the other communities that very often causes fatal consequences: losing lives, damaging public and community infrastructure, hindering economic activities, keeping the children away from school, food shortage of the families who cannot move due to road blockade, etc.

In order to make the comprehensive and thorough conflict prevention and peacebuilding program, the project will implement the project in the whole villages in the three district/city by making division of role between Islamic Relief and the government.  Here, Islamic Relief will implement the project in 50% of the total village, and the rest of the 50% will be handled by the government.  Therefore, Islamic Relief will do comprehensive advocacy to the government in term of sharing programming and budgeting.  It is expected that in the second year or the third year, the government have already allocated the budget and program.     

3.    Objectives and Scope the audit

• The objective of the Project audit is to express an opinion according to ISA 800/805 whether the project report is prepared in all material respect, in accordance with Sida’s instruction for financial reporting as stipulated in agreement and annexes to agreement between the Islamic Relief Sweden and Islamic Relief Worldwide. Assessment of compliance with SIDA’s guideline applicable for the grant and the grant agreement for this project.
• The audit shall be carried out in accordance with international audit standards issued by IAASB. This audit will cover the implementing partner.

Additional Assignments; according to agreed upon procedures ISRS 4400

The purpose of these Terms of Reference is set out the basis on which you have to act as auditors to clarify your expected responsibilities.

a)    It is expected that the audit is undertaken in accordance with International Standards on Auditing (ISA’s) as prescribed by International Federation of Accountants (IFAC). The auditors are expected to undertake the audit in accordance with the highest professional standards which will include tests of transactions, and of the existence, ownership and valuation of assets and liabilities (if any).

b)    Follow up whether salary costs debited to the project/programme are recorded throughout the duration of the year in a systemized way and examine whether the salary costs can be verified by sufficient supporting documentation.[1]

c)    Examine whether the financial report includes a comparison, for every budget item, between the actual costs/expenditures of activities and the budgeted costs/expenditures as approved by Sida for the period.

d)    Based on materiality and risk the auditor shall examine whether there is supporting documentation related to incurred costs.

e)    Follow up whether IR Indonesia has implemented the following recommendations from the assessment of internal control conducted by IRW internal auditors (see the internal audit report issued on 5^th march, 2018). The examination includes reviewing whether IR Indonesia has implemented the action points as described in the recommendation matrix of the internal audit report that has been submitted to IRW and IR Sweden.

f)     Examine whether foreign exchange gains and losses are disclosed in accordance with what is stipulated in the agreement including appendixes.

g)   IR Indonesia’s compliance with the applicable tax legislation in regard to taxes (e.g.PAYE)[2] and social security fees.

h)  Follow up whether Indonesia has adhered to the procurement guidelines annexed to the agreement.

i)  If Indonesia applies modified cash basis as accounting principle, the auditor shall motivate whether the applied accounting principle is acceptable for this type of financial report.

j)      Ascertain the accounting system in order to assess its adequacy as a basis for the preparation of financial reports.

k)    Report on any significant weaknesses in, or observations on, the field office’s systems.

l)      The audit should include the verification of the income received and expenditure incurred for the project.

m)  The audit should include site visits to project areas for verification of financial and non financial record.

n)    Undertake an appropriate risk assessment of the field office.

o)    A sample size calculator will be used to determine the sample size, based on a materiality threshold of 2% and a confidence level of 95%

p)    Does IR Indonesia have signed agreements with its partner organisations?

The basic fundamentals for prospective auditors are:

·         Credibility

·         Professionalism

·         Independence

·         Quality of service

·         Confidence 

4.    The audit duration

Since inception of project to its end, 1^st June, 2018 to 31^st May, 2020

	Islamic Relief
Project End date	May 31, 2020
Draft accounts available for audit	Jan 15 , 2019
Timing of the audit	15th Jan, 2019 to 30th Jan, 2019
Sign off to draft accounts required from auditors	15th Feb, 2019
Approval from IR Sweden	17th Feb 2019

5.    Audit report to the Management of Islamic Relief Indonesia

Independent auditor’s report

The independent auditor’s report shall be in accordance with the format in standard ISA 800/805 and the auditor’s opinion shall be clearly stated. Audit Opinion on the Financial Statements shall state whether the financial statements of the project give a true and fair view of its income and expenses for the project period. Audit findings and weaknesses identified during the audit process shall be clear. The auditor shall regardless of materiality, quantify the amount for costs lacking sufficient supporting documentation.

Report of factual findings

The additional assignment according to agreed upon procedures ISRS 4400 shall be presented in the “Report of factual findings”

Management letter

A management letter with audit findings and weaknesses identified during the audit process shall be provided. The auditor shall make recommendations to address the weaknesses identified and the recommendations shall be presented in priority order. If the auditor assesses that no findings or weaknesses have been identified during the audit that would result in a Management Letter, an explanation of this assessment must be disclosed in the audit reporting.

Note: Report should be as per Format given in Annex.1

6.    The tender proposal

Please provide the following information in the proposal, in the order identified in this section of the tender pack.

i)             Profile details of your firm

Your proposal should:

·         Outline your structure, size and capabilities as relevant to us

·         Identify your firm’s major NGO clients

·         Describe your audit philosophy and methods

·         Provide two references of other NGO’s that are your audit clients that can be taken up as required

·         Certification Auditor License

·         Affiliation with International Auditor

·         Audit experiences with NGO or  other Non Profit Agency

ii)            Staffing            

Your proposal should identify:

·         The partner and manager who will be assigned to the audit, including details of their relevant experience and qualifications

·         The time which the partner and manager (engaged on this assignment) will devote to this audit

·         How you manage succession planning and staff continuity

iii)           Audit approach

Your proposal should identify how you:

·         Determine audit strategy and undertake audit planning

·         Address matters of audit scope and materiality

·         Identify and respond to critical audit issues

·         Control and co-ordinate the audit process

·         Ensure appropriate responsibility for decisions on the audit

·         Conduct the reporting arrangements

iv)           Fees

·         Your proposal should include estimate of your audit fee for the project;

·         In addition, your proposal must provide:

·         An analysis of hours by grade of staff that will be involved on the audit together with details of your hourly charge out rates

·         The basis of charging expenses

·         Your proposed billing schedule

v)            Time line

·         When you can start the Audit Process

Please send only your application letter and CV to the email address: hrislamic@islamic-relief.or.id

Applications submit directly to Islamic Relief Indonesia Office will not be considered..

The deadline for submitting applications is: 31 December 2018