EXTERNAL FINANCIAL AUDIT

Deadline: 2016-09-09

TERMS OF REFERENCE


EXTERNAL FINANCIAL AUDIT FOR PROMOTING WORK LIFE BALANCE FOR WOMEN’S ECONOMIC EMPOWERMENT IN THE CONTEXT OF ASEAN INTEGRATION PROJECT

  1. INTRODUCTION

The ASEAN Foundation is seeking a qualified registered audit firm, preferably with relevant not-for-profit sector expertise, to conduct a comprehensive financial, performance, compliance and risks based audit.

  1. BACKGROUND

The ASEAN Foundation (AF) was established in December 1997 by ASEAN Foreign Ministers in fulfilment of the decision of the ASEAN Leaders. It is a non-profit ASEAN body under the ASEAN Charter and is mandated to promote greater awareness of ASEAN and greater interaction among the peoples of ASEAN, as well as their wider participation in ASEAN activities.

The ASEAN Foundation through Japan ASEAN Solidarity Fund supported a project of Promoting Work Life Balance for Women’s Economic Empowerment in the Context of ASEAN Integration. The project was implemented from June 2015 to March 2016. The ASEAN Work Life Balance consists of following activities:

  1. Regional Conference: A 3-day ASEAN Conference on Work Life Balance was held in Kuala Lumpur from 23-25 February 2016 attended by 300 participants.
  2. Cyber Evolution: A number of videos had been showcased at the Regional Conference to facilitate the promotion of a social media campaign for ‘1 million ASEAN Voices for WLB’ through Facebook, Twitter and other web-based platforms.
  3. Multimedia Push to Regional Advocacy.

Specific objectives of the project included:

  • To promote Work Life Balance programme among government institutions, private sector and workforce in the ASEAN region;
  • To promote the potential role of women to enhance economy through better opportunities for working in the workforce;
  • To encourage more women to realise their potentials and productivity in supporting the ASEAN Community building.
  • To involve the national and regional media to promote WLB awareness through their media news, information and features.

  1. OBJECTIVE OF THE PROJECT AUDIT

The overall objectives of the audit are:

  • To determine if the project financial statements provide accurate and adequate details of their financial position in accordance with the Project Contract and its approved budget as well as the ASEAN Foundation Financial Rules and Regulations;
  • To assess whether internal controls were robust and were adhered to, and provide 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 be discovered during the course of auditing;
  • To provide recommendations for improvement to management.

  1. AUDIT SCOPE
  • The audit shall cover the adequacy of the financial operations and reporting systems of the project. These include budget control, cash management, procurement of goods and services, asset management, certification and approving authority, receipt of funds, disbursement of funds, and recording of all financial transactions in expenditure reports;
  • The audit shall examine, that there is appropriateness of supporting documents and records relating to all project activities;
  • The audit shall report the identified amount of any missing supporting documents.

  1. METHODOLOGY

The audit shall perform examination on the reliability of the accounts, as well as the legality and regularity of the transactions. The audit shall be designed and performed in a way that can obtain reasonable assurance that the financial reports are free of material misstatements caused by either errors or frauds. It will include any tests and controls as the auditor considers necessary under the circumstances. Audit fieldwork shall be performed both in Jakarta and Kuala Lumpur to facilitate communication with the ASEAN Foundation and the implementing partner.

Minimum issues to be investigated are:

  • Whether the statement gives a correct view on actual expenses and costs;
  • Whether goods and services were procured in accordance with the guidelines stipulated within the Project Contract and the AF Financial Rules and Regulation ;
  • The availability of all necessary documents, records and accounts;
  • The adequacy of internal control and authorization processes;

Upon completion of the audit, the audit firm will meet with and report the findings to the senior management of the ASEAN Foundation for discussion, review, clarification and conclusions. This meeting will also serve to establish corrective action recommendations for the future projects managed by the ASEAN Foundation.

  1. AUDIT REPORT AND MANAGEMENT LETTER

The audit report should clearly indicate the auditor’s opinion. This would include a separate paragraph highlighting key internal control weaknesses and non-compliance with the financing agreement terms.

A Management Letter should cover a list of comments and observations on the financial records and controls as examined during the course of the audit; identification of specific deficiencies and areas of weakness in systems and controls and recommendations/suggestions on improvement for partner; comments on the degree of compliances; and any matters that come to the attention during the audit and review which might have a significant impact on the project implementation.

  1. QUALIFICATIONS OF AUDITOR
  • The Auditors/Audit Team members should have a sound and proven track record in conducting an audit review of international organisations or public entities including those of not-for-profit;
  • The Auditors/Audit Team members should have working knowledge in English language, as all vouchers, receipts/additional reports are only available in English;
  • The Auditor/Audit Team members must be completely impartial and independent of 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 experiences including 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 the Audit Firm’s expertise and any relevant not-for-profit industry experience. Also include the size of the firm and other areas in which the firm specializes in, as well as any significant professional memberships and affiliations;
  • Identify Key Personnel in the Engagement Team: Please explain approaches to staffing and provide information on the professionals who will be engaged in the audit activities, including related experiences of the key personnel;
  • Approach/Methodology to Conducting the Review: Please describe the firm’s auditing philosophy and methodology. Please detail the steps of the engagements, noting stages that would directly involve the personnel, including the firm’s overall expectations of client’s involvement;
  • References: Please list the contacts information on at least three organisations similar to the ASEAN Foundation.

IX. FEES

The Audit Firm is to outline the fee structure for the audit in the United States of America Dollar (USD). Please include an estimate of any expenses necessary to adequately perform the work required and related activities needed to maintain a quality client relationship.

The cost of preparing a proposal and conducting the pre-proposal survey or any meetings for verbal presentations shall be borne by the Audit Firm, 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.

The travel cost to visit the implementing partner in Kuala Lumpur (if needed) shall be borne by the ASEAN Foundation. The cost will cover travel expenses (airfare, local transportation), daily allowances and accommodation costs. The cost shall be submitted together with the fee.

X. PROPOSAL SCORING

Proposals will be evaluated in two parts: the technical proposal shall bear 60% of the total marks while the financial proposal shall bear 40% 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 members’ experience (accompanied by brief CVs)
  • Bidder’s track record
  • Ability of the bidder to fulfill the ASEAN Foundation's requirements

30

2

Technical Approach and Execution Plan

  • Proposals must contain the details of the proposed approaches to be adopted in order to deliver the service in accordance with the Terms of Reference (ToR)

20

3

Project management

  • Bidder must allocate a Project Manager for this project
  • The proposal should contain a work plan, show tasks and timelines
  • Submit clear proposed project timelines
  • The Project Plan caters to risks management associated with the Project and mitigation strategies
  • Project management and the ability to deliver within the agreed timelines).

15

4

References

  • Bidder submits at least three relevant and contactable clients that were serviced in the past 12 months

10

5

Capacity

  • Proposals should clearly indicate the bidder’s 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 that do not meet the minimum of 65% points on functionality will be disqualified and not be evaluated on pricing.

XI. TIMING OF AUDIT

ACTIVITIES

DATE

Audit Field Work

19 September - 30 September 2016

Draft Audit Report

24 October 2016

Final Audit Report

31 October 2016

XII. SUBSMISSION AND DEADLINE OF OFFER

Submission:

The technical and price proposals shall be submitted to our office address:

The ASEAN Foundation. Jl Sam Ratulangi No 2, Menteng, Jakarta Pusat.

Or sent to the following email address: procurement@aseanfoundation.org by 9 September 2016, mentioning clearly “External Financial Audit” on the subject matter.

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