I. Background
The
ASEAN Foundation (AF) is an organisation from and for the people of ASEAN. As one of the ASEAN’s bodies, we are mandated
to support ASEAN mainly in promoting awareness, identity, interaction and
development of the people of ASEAN. Our
vision is to build a cohesive and prosperous ASEAN Community. Our mission is to commit to promoting ASEAN
awareness through people-to-people interaction and collaboration with ASEAN
stakeholders to build a caring, cohesive and equitable ASEAN Community.
AF
manages several funds, which are categorised as Endowment Fund, Operational
Fund and Project Funds.
II.
Objective
The
ASEAN Foundation is seeking a registered qualified audit firm, preferably with
relevant not-for-profit sector expertise, to conduct audit services for the
fiscal year 2018 covering the period of 1 January to 31 December 2018. A yearly
external audit is required as stipulated in the organisation’s financial rules
and regulation.
The
objective of the audit is to enable the external auditors to express an independent
professional financial position of the ASEAN Foundation and to ensure that the funds
utilised for ASEAN Foundation’s activities have been used for their intended
purposes.
The
books of account of the ASEAN Foundation provide the basis for preparation of
the financial statements. Proper books of accounts as required by law have been
maintained by the ASEAN Foundation also maintain adequate internal controls and
supporting documents for the transactions.
III. Audit
Scope
The audit will be carried out in accordance
with the International Auditing Standards and will include tests and verification
procedures as the auditors deem necessary.
The auditors will:
a)
Verify all funds have
been used in accordance with established rules and regulations of the ASEAN Foundation
and only for the purposes for which the funds were provided
b)
Undertake a detailed financial audit, specifically in the areas of
ü Procurement of goods, services (hotel bookings, ticketing, consultancy, computers etc.) and works (including renovation/construction)
ü Human resource management, including
recruitment, payroll
management,
leave management,
performance appraisal, calculation of salaries
and entitlement and management of personnel records
ü Recording of assets,
goods and inventories
as well as procedures for receipts, storage and disposal
ü Conduct of workshop/trainings/events, etc.
ü Travel related
expenditure
ü Recognition & recording of income
ü Recording of expenses with valid
supporting documents
ü Any other
area identified important to
include during the audit.
c)
Verify supporting documents,
records and books of accounts relating to all activities have been kept and
that clear linkages should exist between the books of accounts and the financial
statements presented to.
d)
Verify whether financial statements
have been prepared by the ASEAN Foundation management in accordance with
applicable accounting standards and give a true and fair view of the financial
position of the ASEAN Foundation and of its receipts and expenditures for the period
ended on that date.
e)
Assess comprehensive assessment
of the adequacy and effectiveness of the accounting and overall internal control
system to monitor expenditures and other financial transactions.
f)
Express an opinion as to
reasonableness of the financial statements in all material respects
g)
Identify instances and
quantum of
✓ material mis-statements, if any, in the financial reports (both statutory and
project)
✓ material financial mismanagement/ misappropriation/ fraud, if
any.
h)
Recommend actions/ corrective steps to be
undertaken
i)
Conduct entry and exit
meeting with the Executive Director
IV. Methodology
The audit must cover the financial operations, the use and control of
non-expendable equipment; as well as provide detailed observations and comments
on the management structure and the monitoring, evaluation and reporting
mechanisms. The following aspects are to
be considered:
·
The rate of
delivery
·
Financial
accounting, monitoring and reporting
·
Systems for
recording and reporting on resources utilisation
·
Equipment use
and management
·
Management
structure, including the adequacy of internal control and record-keeping
mechanisms
·
List of asset
bought
The scope of the audit services required should be sufficiently clear to
properly define what is expected of the auditor but not in any way restricts
the audit procedures or techniques the auditor may wish to use to form an
opinion. It should specify at least the following:
·
That the
audit will be carried out in accordance with generally accepted accounting
standards
·
That the
period of activities to be audited is from 1 January 2018 to 31 December 2018.
·
That the auditor
will state in the audit report if the audit was not in conformity with any of
the above and indicate the alternative standards or procedures followed
·
That the
auditor will provide an opinion as to the overall financial situation of the
organisation for the period from 1 January 2018 to 31 December 2018 and will
certify:
-
The Summary
of Expenditure for the period from 1 January 2018 to 31 December 2018
-
The cash
position reported by the organisation as at 31 December 2018 and
-
The status of
assets and equipment held by the organisation as at 31 December 2018
V. The
Auditor Report and Management Letter
The expected contents of the audit report and management letter and the
topics/areas to be covered by the auditors should include the following:
Audit Report
The audit report should clearly indicate the auditor’s opinion. This
would include at least the following:
·
The purpose of the report and its intended use
·
Which/whose
generally accepted accounting standards have been applied and indicate the
effect of any deviations from these standards
·
The audit was
conducted in accordance with International and Indonesian standards on Audit
·
The audit opinion will cover the current period
·
Information
on whether or not the financial statements present fairly in accordance with
the adopted accounting policies for the organisation
Management Letter
The management letter should cover the following topics/issues:
·
Give comments
and observations on the accounting records, procedures, systems and controls
that were examined during the course of the audit.
·
Identify
specific deficiencies and areas of weakness in the systems and controls and
make recommendations for improvement
·
Report on the
implementation status of recommendations pertaining to previous audit reports
·
Communicate
matters that have come to the auditors’ attention during the audit which might
have a significant impact on the sustainability of the organisation
·
Bring to the
attention of the Executive Director’s attention on any other matters that auditors
consider pertinent
·
The
management letter should also include the following:
ü The categorisation of audit findings by risk severity:
High, Medium, or Low
Definition of these categories are given in Annex 1
ü The classification of possible causes of the audit
findings
ü Management comments/response, as applicable
The audit report should be in English formatted in A4 size and the
number of copies submitted are four (4) hard copies and one (1) electronic
copy/pdf version.
VI.. Deliverables
1)
The Auditors
on completion of the audit work will submit four (4) original copies of the
audit report in English formatted in A4 size and one (1) electronic copy/pdf
version
2)
Management
letter in accordance with the scope of the work described.
VII. Qualifications
of the auditor
·
The
Auditors/Audit Team members should have a sound track record in conducting an
audit review of international organisations or public entities with not for
profit experience.
·
The
Auditors/Audit Team members should have working knowledge in Indonesia
language, as some vouchers, receipts/additional reports may not be available in
English
·
The Auditor/Audit
Team members must be completely impartial and independent from all aspects of
management or financial interests in the entity being audited. The
auditors/audit team members 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.
·
The
Auditors/Audit Team members should be experienced in applying audit standards
whichever is applicable for the audit. The auditor must employ adequate staff
with appropriate professional qualifications and suitable experience with
including experience in auditing the accounts of entities comparable in size
and complexity to the entity being audited.
·
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
managers, supervisors and key personnel proposed as part of the audit team. CVs
should include details on audits carried out by the applicable staff, including
ongoing assignments indicating capability and capacity to undertake the audit.
·
The Audit
Firm should state its legal nature, the total number of auditors who are owners
and/or employees of the firm as well as auditing services provided by the firm
and state whether the firm has any associations or affiliation with any other
professional firm as auditors in the Indonesia or abroad.
VIII. Proposal
Requirements
·
Firm
Background and Experience: The proposal should describe your firm’s expertise
and any relevant not-for-profit industry experience. Also, include the size of your firm, other
areas, in which the firm specializes, and significant professional memberships
and affiliations.
·
Identify Key
Personnel in the Engagement Team: Please explain your approach to staffing and
provide information on the professionals who will be engaged in the audit
activities, including related experience of the primary contact.
·
Approach/Methodology
to Conducting the Review: Please describe your firm’s auditing philosophy and
methodology. Please detail the steps of
the engagements, noting stages that would directly involve our personnel,
including your overall expectations of client involvement.
·
References: Please
list contact information for at least three organisations similar to the AF..
IX. Fees
Please outline your fee structure for the audit in United States Dollar
(USD) or if it is in Indonesia Rupiah (IDR), please convert it into USD by
mentioning the conversion rate..
The
cost of preparing a proposal and conducting the pre-proposal survey or any meetings
for verbal presentations shall be borne by your company, regardless of the
conduct or outcome of the solicitation process.
Proposals must offer services for the total requirements. All proposals must remain valid and open for
acceptance for a period of 100 (one hundred) days after the date specified for
receipt of proposals.
X. Proposal
Scoring
Proposals will be evaluated in two parts. The technical proposal shall
bear 70% of the total marks while the financial
proposal shall bear 30% of the total marks.
Functionality evaluation criteria
|
No
|
Description
|
Weight
|
|
1
|
Experience, Skills and Ability
of Service Provider
·
Past experience
in similar work of this nature
·
Team member
experience( accompanied by brief CV's)
·
Bidders
'track record
·
Ability of
the bidder to fulfill the AF's requirements
|
30
|
|
2
|
Technical Approach and Execution
Plan
·
Proposals
must contain the details of the proposed approach to be adopted in order to
deliver the service in accordance with the TOR
|
20
|
|
3
|
Project management
·
Bidder must
allocate a project manager for this project
·
The
proposal should contain a work plan, showing tasks, timelines
·
Did the bidder give, submit clear
proposed project timelines for
the project
·
Does the project plan cater for risk management associated with this
project and mitigation strategy?
·
Project
management and turn around management (Ability to Deliver on Time).
|
15
|
|
4
|
References
·
Did the
bidder submit at
least three relevant
and contactable clients that
were serviced in the past
12 months
|
10
|
|
5
|
Capacity
·
Proposals should
clearly indicate whether
or not bid participants have the capacity to meet the requirements of the
TOR
|
25
|
Bidders are required to score a minimum of 65% points on functionality
to qualify to be evaluated in the next level (price). Bidders who do not score
the minimum of 65% points on functionality will be disqualified and not be
evaluated on price.
XI. Timing
of the Audit
|
Activities
|
Date
|
|
Audit Field Work
|
15 February – 08 March 2019
|
|
Draft Audit Report
|
08 April 2019
|
|
Final Audit Report
|
08 May – 15 May 2019
|
XII. Deadline
and Submission of Offers:
Deadline:
Submission of offers is Thursday,
17 January 2018
Submission:
Offers are to be submitted in hardcopy or electronically to
The Procurement Committee, ASEAN Foundation
Jl Sam Ratulangi No 2, Menteng, Jakarta
Phone: +62 21 3192 4833
Or email to: procurement@aseanfoundation.
ANNEX 1: CATEGORISATION OF AUDIT FINDINGS BY RISK SEVERITY
|
High
|
Action that is considered imperative to ensure that the Foundation is
not exposed to high risks (i.e. failure to take action could result in major
consequences and issues).
|
|
Medium
|
Action that is considered necessary to avoid exposure to significant
risks (i.e. failure to take action could result in significant consequences).
|
|
Low
|
Action that is considered desirable and should result in enhanced
control or better value for money.
|
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