II. 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.
III. 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 overall objectives of the audit
are:
·
To determine if the organisation’s
accounting system provides accurate and adequate details of its financial
position and fiscal operations in accordance with generally accepted accounting
principles and the approved organisation budget
·
An assessment of whether internal
controls are robust and are being adhered to, and a further description, in the
form of fact finding statement, of any specific weaknesses or other issues in
the organisation’s internal controls that may have been discovered during the
course of auditing
·
To determine if the organisation is
managing and using its resources in an effective manner
·
To determine if funds are being used
according to the currently approved budget
·
Whether or not the financial
statements are free of material errors and present fairly financial position
and transactions
·
Whether or not payments have been
approved in accordance with the organisation’s financial rules and regulations
·
Whether or not the bank balance as
of 31 December 2018 has been confirmed with the bank for each account and
agrees with the accounting system
·
Provide recommendations for
improvement to management
IV. Audit
Scope
The audit shall cover the adequacy of the
accounting and financial operations and reporting systems of the
organisation. These include budget
control, cash management, certification and approving authority, receipt of
funds, disbursement of funds, recording of all financial transactions in
expenditure reports, records maintenance and control.
Human
resources
The audit work shall cover the competitiveness,
transparency and effectiveness of the recruitment and hiring of personnel and
include performance appraisal, attendance control, calculation of salaries and
entitlement, payroll preparation and payment and management of personnel
records.
Procurement
The audit work shall cover the competitiveness,
transparency and effectiveness of the procurement activities of the
organisation in order to ensure the equipment and services purchased met the
requirement of the organisation’s financial rules and regulations.
Asset
management
The audit work shall cover equipment (typically
vehicles and office equipment) purchased for the use of the organisation. The
procedures for receipts, storage, and disposal shall also be reviewed.
Cash
management
The audit work shall cover all cash
funds held by the organisation and review procedure safeguarding of cash.
General
administration
The audit work shall cover travel activities,
vehicle management, office premises, office management and records management.
Information
system
The audit work shall cover the
information and communication systems and the control and security of equipment
and data.
V. 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
VI. 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:
·
That it is a standard purpose report and its
intended use
·
The audit standards that were applied
·
The period covered by the opinion
·
The scope limitation for those transactions
·
Whether the Statement of Assets and Equipment is fairly and
adequately presented as at 31 December 2018
·
Whether the Statement of Cash Position reported by the
organisation is fairly and adequately presented as 31 December 2018.
Management
Letter
The management letter should cover
the following topics/issues:
·
An assessment of the organisation’s internal control system with
equal emphasis on (i) the effectiveness of the system in providing management
with useful and timely information for the proper management of the organisation and (ii) the general effectiveness of the
internal control system in protecting the assets and resources of the organisation.
·
A description of any specific internal control weaknesses noted in
the financial management of the organisation and the audit procedures followed
to address or compensate for the weaknesses. Recommendations to
resolve/eliminate the internal control weaknesses noted should be
included.
The management letter should also
include the following:
·
The categorisation of audit findings by risk severity: High,
Medium, or Low
Definition
of these categories are given in Annex 1
·
The classification of possible causes of the audit findings
·
Comments as to whether recommendations made in the management
letter for the previous audit were implemented or, if not, the implementation
status
·
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.
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.
Please visit the procurement notice:
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.
|
No comments:
Post a Comment