1. BACKGROUND
The Berbak Green Prosperity Partnership (BGPP) - program - Jambi is funded by
MCA-Indonesia and five co-financers (Euroconsult Mott MacDonald, Prosympac,
Akvo, ISCC and Financial Access. The BGPP is implemented by a consortium, led
by Euroconsult Mott MacDonald. BGPP is a collaborative effort of local,
regional and (inter) national organizations who work in Berbak Landscape,
and/or who have experience and expertise and sustainable palm oil production in
Indonesia.
The project is implementing in two districts;
Muara Jambi and Tanjung Jabung Timur, and includes all of part of the sub-districts
Kumpeh and Sungei Gelam in Muaro Jambi and Sadu, Nipah Panjang, Rantau Rasau
and Berbak in Tanjung Jabung Timur.
The duration of the project is from 04 December
2016 to 31 March 2018. The total MCA-Indonesia budget is $ 12,348,786 (twelve
million three hundred forty-eight thousand seven hundred eighty-six us dollar),
and the total amount of co-financing is $ 2,253,735 (two million two hundred
fifty three thousand seven hundred and thirty five us dollar).
2. OBJECTIVE
To have independent audit report and independent audit opinion of
program’s financial statement, compliance with donor’s regulation and letter to
the management for the period of 04 December to 30 June 2017.
3. AUDIT SCOPE
The audit of the project will be carried out in accordance with Indonesia
Accounting standard, and will include such test and auditing procedure as the
auditor will consider necessary under the circumstances. Special attention be
paid by the auditor as to whether the:
a)
MCA-Indonesia
financing and all co-financing has been used in accordance with the conditions
of the relevant financing agreement, with due attention to economy and
efficiency, and only for the purposes for which the financing was provided.
b)
Proponent
contribution funds have been provided and used in accordance with the relevant
financing agreements, with due attention to economy and efficiency, and only
for the purposes for which they were provided;
c)
Goods,
works and services financed have been procured in accordance with the relevant
grant agreement and MCA-Indonesia Procurement Guideline.
d)
All
necessary supporting documents, records, and accounts have been maintained in
respect of all project activities, including in Financial reports. The auditor
is expected to verify that respective reports issued during the period
e)
Designated
Accounts (if used) have been maintained in accordance with the provisions of
the relevant financing agreements and funds disbursed out of the Accounts were
used only for the purpose intended in the financing agreement;
f)
Ineligible
expenditures included in withdrawal applications are identified and reimbursed
to the Designated Accounts. These should be separately noted in the audit
report.
In complying with
International Standards on Auditing, the auditor is expected to pay attention
to the following matters:
a)
Fraud and Corruption:
b)
Laws and
Regulations:
c)
Governance:
d)
Risks:
4. METHODOLOGY
The auditor should conduct its verification based
on inquiry and analysis, (re)computation, comparison, other accuracy checks,
observation, inspection of records and documents and other methods considered
necessary by auditor
A. PROJECT FINANCIAL REPORTS
The auditor should verify
that the project MCA -Indonesia's have been prepared in accordance with the
agreed accounting standards and give a true and fair view of the financial
position of the project at the relevant date and of resources and expenditures
for the financial year ended on that date
The
Project Financial Reports that need to be verified should include the following
components:
(a)
Bank Activity (USD and
IDR)
(b) Budget vs Actual
(c) Expenditure Detail
(d) Expenditure Proponent
(e) Financial Report
(f)
Asset Management Plan
B.
DESIGNATED ACCOUNT (DA)
In conjunction with the
audit of the Project MCA-Indonesia’s, the auditor is also required to review
the activities of the Designated Account (DA) associated with the project.
The auditor should
examine the eligibility of financial transactions during the period under
examination and fund balances at the end of such a period, the operation and
use of the DAs in accordance with the relevant general conditions, relevant
MCA-Indonesia Financial Management Guideline, and the adequacy of internal
controls for this type of disbursement mechanism. The auditor should also
examine eligibility and correctness of:
•
Financial transactions
during the period under review;
•
Account balances at the
end of such a period;
•
The
operation and use of the Designated Account in accordance with the financing
agreement; and
•
The adequacy of internal
controls for the type of disbursement mechanism.
5. AUDIT REPORT
The auditor will issue an opinion on the project
Financial Reports. The audit report of the project accounts should include a
separate paragraph highlighting key internal control, weaknesses,
non-compliance with the grant agreement terms including the Proponent
Contribution commitment.
The
financial reports should consist the following:
1)
A statement of financial
position;
2) A Statement of Financial Performance (Income and
Expenditure Statement (IES)) showing MCA-Indonesia funds received, any other
grant related income received and MCA-Indonesia fund expenditures. Grant
expenditures should be reported against the budget as defined in the grant
agreement for the period;
3) A listing of assets purchased with grant funds.
4)
A Statement of
Expenditure from Proponent Contribution
6. MANAGEMENT LETTER
In addition to the audit report, the auditor will
prepare a management letter, in which the auditor will:
(a) Give comments and observations on the accounting
records, systems and controls that were examined during the audit;
(b) Identify specific deficiencies or areas of weakness in
systems and controls, and make recommendations for their improvement;
(c)
Report on the degree of
compliance of each of the financial covenants in the financing agreement and
give comments, if any, on internal and external matters affecting such
compliance;
(c) Communicate matters that have come to his/her
attention during the audit which might have a significant impact on the
implementation of the project;
(d) Give comments on the extent to which outstanding
issues/qualifications issues have been addressed;
(e) Give comments on previous audits’ recommendations that
have not been satisfactorily implemented; and
(e) Bring to the grantee/implementer’s attention any other
matters that the auditor considers pertinent, including ineligible
expenditures.
The management letter should also include responses
from the implementing agency to the issues highlighted by the auditor.
7. TIME TABLE
|
Activities
|
Date
|
|
Audit Field Work
|
16 October 2017 – 17 November 2017
|
|
Draft Audit Report
|
20 November 2017 - 1 December 2017
|
|
Final Audit Report
|
4 - 15 December 2017
|
8. PROPOSAL
SUBMISSION
The proposal expected to be submitting to Kehijau Berbak office by email or
postage no later than September 25, 2017, to email address: wicher.boissevain@mottmac.com
The following
information must be included in the proposal submission:
a. Evidence
of the firm’s qualifications to provide the above services;
b. Background
and experience in auditing non-profit clients;
c. The
size and organizational structure of the auditor’s firm;
d. Statement of the firm’s understanding of work to be performed,
including tax and non-audit services;
e. A
proposed timeline for fieldwork and final reporting;
f. Proposed fee structure for each of the
three years of the proposal period, including whatever guarantees can be given
regarding increases in future years, and the maximum fee that would be charged;
g. Describe your billing rates and procedures for
technical questions that may come up during the year, or whether these
occasional services are covered in the proposed fee structure;
h. Names of the partner, audit manager, and field
staff who will be assigned to our audit and provide biographies.
i. References and contact information from at
least one comparable non-profit audit client
9. PROPOSAL EVALUATION
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
|
30
|
|
2
|
Technical Approach and Execution Plan
·
Proposals must contain the details of the proposed
approach to be adopted to deliver the service in accordance with the TOR
|
20
|
|
3
|
Project management
·
The proposal should contain a work plan, showing
tasks, timelines
|
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 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.
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