Yayasan Pusat Kajian dan Perlindungan Anak/PKPA (Center for Child Study and Protection) is a an NGO which concerns on the reality of the violations and ignorance of children’s and women’s rights in Indonesia, especially in North Sumatra and Aceh. PKPA mission is Advocacy for possible policy changes for child well-being and protection and implementation of the rights of the child (including the youth).

PKPA was established on 21 October 1996 and had been registered by Notarial Certificate No.  52 Dated 22 August 2008 and the Decree of Minister of Justice and Human Rights of the Republic of Indonesia No. AHU-4047.AH.01.02. Year 2008.

PKPA, Jln. Abdul Hakim No. 5-A Pasar I Setia Budi, Medan, Sumatera Utara, 20132, Phone: 061. 8211117, Fax: 061. 8213009. Email: pkpamdn@indosat.net.id and pkpamdn@gmail.com, is requesting proposals to perform the audit of  PKPAstatements and related compliance work for the project “Enhance Youth Entrepreneurship Empowerment in Simeuleu Island, Aceh” funded by LWR.

Executive summary:
Simeulue is a remote island with limited economic and educational opportunities. The majority of the population is unskilled subsistence farmers and fisherman. The province of Aceh (Nanggroe Aceh Darussalam) according to BPS 2009 has 21.80% of the population below the poverty line compared to the National poverty level of 14.15%. Anecdotal evidence collected by PKPA suggests in the targeted sub-districts of this project up to 50% of the population are below the poverty line with above normal school drop-out rates and teenage marriages.

The goal of the project is 320 youth in 3 sub districts of Simeulue Island have entrepreneurial skills and knowledge to succeed economically and socially through microenterprise, reproductive health,and government advocacy”.

Project objectives:
  1. To improve existing school entrepreneurship module and implement in 6 schools.
  2. To strengthen 3 existing school-based business and 2 youth based business units in Teupah Barat over 24 months
  3. To increase the business skills of 200 youth in Teupah Barat over 24 months
  4. Increase awareness of reproductive health and gender equality in 3 sub-districts in 24 months.
  5. To develop the capacity of the steering committee members to advocate to the district governmentfor the funding of youth programs on Simeulue Island in 24 months


Audit objectives:
The overall objective of the audit is to determine if the partner adhered to the terms of the cooperation agreement in relation to good financial management practices and give a detailed account on how the funds were use from 1 February 2011 until 31 December 2011.

The auditor will be expected to conduct an audit in accordance with the International Standards on Auditing, and in accordance to the Indonesia laws and requirements. Specifically,
  • Review project financial data for accuracy and reliability and make sure submitted financial reports are accurate and free of material misstatements
  • Examine projects’ financial transactions and accuracy and reliability of its supporting documentation
  • Assess  the accounting principles used;
  • Assess significant estimates made by the project leaders;
  • Assess the overall presentation of the financial statements/reports and make sure they are in accordance with the approved budget;
  • Review procedures and management and examine if these provide adequate internal control;
  • Conduct ‘Forensic Audit Testing’ to identify procurement practices, procedures, documentations, to verify existence, or lack of, of bids, approvals, invoices, receipts, goods received, etc, over the life of the project.
  • Conduct Interviews with key individuals involved in the procurement process.  This  include but is not limited to the interviews with vendors involved, individuals receiving goods or services (e.g., the members of the Cooperative or village group), members of the Cooperative or village group Leadership team,  LWR’s Indonesia staff and others involved in the procurement processes.
  • Document and report all the significant information provided during these interviews that support any indication of negligence or potential fraud.
  • During examination of the detail accounting records, make sure there is a system, which allows easy examination and sampling of transactions;
  • Advice LWR-Indonesia on improving its partner monitoring systems and processes

The overall output of the consultancy is an audit report expressing an independent opinion on the financial statements on the audit and include a report/schedule identifying any tested transactions (indicating transaction date, descriptions, amount, and other details) that did not comply with the terms of the agreement, partner policy, local law, or indicates the possibility of fraud or other illegal action.

THE PROPOSAL In responding to this request, following information shall be submitted:
  1. Details of firm’s experience in providing auditing services to companies in the not-for-profit sector, especially international organizations;
  2. Describe how your firm will approach the audit of the organization;
  3. Describe how and why your firm is different from other firms being considered, and why our selection of your firm as and independent auditor is the best decision we could make;
  4. Include fee proposal to complete the services outlined in this request, with whatever guarantees can be given regarding increases in future years.
  5. Include estimated on site time required to complete the services.
  6. Provide at list 3 references from not-for-profit organizations that you’ve conducted audit for in the recent years and are still your clients;
  7. Provide names and resumes of key personnel that will conduct the audit.

Proposals, which shall not be more than 3 pages in length (not including references and resumes) shall be submitted no later than  22 February 2012 to PKPA Office, Jl. Abdul Hakim No. 5A Pasar 1 Setia Budi Medan, Telp. 061-8200170, Fax 061-8213009, Email : pkpamdn@indosat.net.id and pkpamdn@gmail.com  Attention Sony Sucihati

SELECTION CRITERIA
PKPA will select the audit firm in consultation with Lutheran World Relief Indonesia based on a combination of criteria including: evidence of proficiency in the audit of domestic non-profit organizations, fees, and required time to complete the engagement.  The final decision will be made prior to 25 February 2012.  Selected audit firm shall aim to complete the audit no later than 31 March 2012 (by submitting the complete set of Audit Opinion, Audited Financial Statements, Notes to Financial Statements and the Management letter).