Terms of References
General Audit of ICBRR – Integrated Water Supply Sanitation, and Hygiene Promotion Project
In Papua Province
2012 - 2015
Netherlands Red Cross Indonesia Delegation
First assessment for a WASH programme in Papua was conducted in August 2010. The idea for the first assessment was to look at the possibility of working in Papua. One year after submitting the report on the feasibility of the Papua project, green light on proposal development for Papua project was given by NLRC HQ to the Indonesian Red Cross (PMI). A second assessment was conducted in October 2011 to look at the feasibility of the recommendations, as well as a workshop for proposal development.
The situation and challenges of Papua and PMI were communicated to NLRC HQ even before the programme proposal was developed. Therefore, NLRC decided to have two phases of programme implementation. The first implementation phase was focusing more on organizational development and pilot programmes, and included giving an experience to PMI resources in running a development programme. The second phase of the programme was planned to have other Watsan activities in Papua, whether in Keerom or even in other districts, however was not started due to the slow progress of the program.
The allocated budget for the project amounted up to € 294.663. The program was closed in March 2015 after which it was reviewed and evaluated. As the program could not be implemented as planned the total expenditures remained €104,000,-
Cash advance disbursements on quarterly base to PMI were the main system of support for the implementation of the project. PMI subsequently provided financial reports on a monthly basis.
The main objective of the audit is to request auditors to express an audit opinion to the statement of revenues and project fund and thereby to provide reasonable assurance that the financial statement gives a true and fair view of the financial results of activities in revenue collected and disbursement paid and cash flows in accordance with modified cash basis of accounting which is other comprehensive basis of accounting principles. The objective of the audit is the financial reports of the Integrated Water Supply, Sanitation and Hygiene Promotion Project for the period from January 1, 2012 to August 31, 2015.
- The audit should be carried out in accordance with generally accepted auditing standards (ISA).
- The audit should comprise as many observations as are considered necessary under the circumstances.
- The opinion of the auditor about the underneath mentioned specific objectives of the audit need to be reflected in the audit report and are as follows:
- To state an opinion on the financial statement, in particular whether it gives a true and fair view of revenue and expenditure in accordance with the conditions laid down in the decision and with generally accepted accounting principles.
- To evaluate the recipient’s internal control system, estimate the audit risk and identify any matters worth mentioning, including any material weaknesses in internal control.
- To make observations in order to determine whether the recipient has complied with all material aspects of the conditions laid down in the MoU. All material matters not meeting the afore mentioned conditions and all indications of illegal acts have to be identified. Such observations shall also include the requirements relating to any contribution to be made by the grant recipient.
- Check whether the reported activities and reported expenditures comply with: the signed MoU (including budget) and approved budget revisions.
- Check whether all eligible costs are charged to and paid within the eligible period.
- Check whether no assets (buildings, stock or land) have been bought and charged to this programme.
- Check whether no reserves have been made with money of this programme. Only a reserve for severance (termination benefits, only is case of national law) is allowed.
- Check whether the organisation complies with the following conditions:
- The applicable rules, regulations and laws were applied to the reported amounts;
- The quality of the process of internal control, validation of the expenditures, contracting and monitoring were performed well;
- Evaluate whether the administration gives a good and complete understanding of:
- The amounts received from the NLRC;
- Return payments to the NLRC;
The amounts justified by the PMI
III. Output and Deliverable
The audit report should cover all the financial statements of the Integrated Water Supply, Sanitation and Hygiene Project for the period January 1, 2012 to August 31, 2015 and include the following elements:
- The aim and scope of the financial audit, the audit criteria applied, where relevant, and any restrictions imposed on the scope of the audit.
- The financial statement with disclosures and the accounting principles applied.
- An auditor's report stating clearly
the auditor's opinion of the financial statement. In the case of an unqualified
auditor's report, the following text should be used:
"We have audited the financial statement of * at * for the period from * to *. The financial statement is the responsibility of the entity's management. Our responsibility is to express an opinion on the financial statement based on our audit.”
IV. Audit Activities and Schedule
The audit field work will be conducted at the Netherlands Red Cross Indonesia office in September – October 2015 since all documents are stored in the Netherlands Red Cross office. Following the field work, the auditor will submit draft report in early of November 2015 and the final report in late November 2015.
Each bidder is required to submit a cost proposal or fee in IDR, which is considered an all-inclusive fee.
VI. Timing of Audit
The draft audit report and opinion should be received 10 working days after completion of audit field work. They should be A4 formatted in English and copied 2 hard copies.
VII. Submission and Deadline of Offers
The closing date of proposal submission is 7 September 2015 at 05.00 pm.
The proposal should be submitted in sealed envelope to Netherlands Red Cross/Tini Sirait Wisma PMI Lt. 5 Jl. Wijaya 1 No. 63 Kebayoran Baru – Jakarta Selatan 12170 or email to TSirait@redcross.nl.
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