18 Mar [URGENT]: External Auditor – Pansos
Term of Reference
Project Economic Empowerment and Community Health Services for the Poor People
Pansos Foundation finds that there are still many underdeveloped villages regarding the development of economy, human resources and public facilities in the Province of South Sumatra. Inhabitants who are living in isolated areas do not receive enough government’s assistance for economic empowerment.
South Sumatra is also vulnerable to forest fire hazards caused by activities of clearing land for plantation and agriculture done by plantation private companies and inhabitants. In addition, some areas of the province are also vulnerable to floods. Banyuasin District, for example, is a disaster area of forest fire and floods. Most areas are peat areas, so it is highly vulnerable to fire hazards. If the fire happens it is very difficult to distinguish it. The area is also vulnerable to floods, due to the area is the tidal land. The inhabitants in this area, including those who live in the riverbank of Musi, are facing problem with clean water access. They depend on rainwater to meet their clean water’s needs. Meanwhile, South OKU District is a highland area. The area is vulnerable to drought in the dry season. The inhabitants in the area rely on their livelihood on plantation and agriculture products. In the dry season, the inhabitants are vulnerable to a forest fire and access to water.
There are common problems faced by the people in the above 4 targeted villages, i.e. 1) ownership of farming land, 2) limited access to livelihood capital, 3) access to an irrigation canal, 4) poor infrastructure of transportation, 5) limited access to clean water and personal hygiene facilities, 6) limited access to public health service and 7) low of education and skill of the people.
Pansos analysis that the poor road infrastructure becomes the main obstacle for government public services to reach the people in the villages. If the infrastructure of transportation is not improved, the people cannot change their “better life”. The roles and responsibilities of governments in this field are unreliable.
In collaboration with Caritas Australia and KARINA, Pansos has implemented a project of services to the people in the above-mentioned villages, through 1) strengthening capacity of the people in DRR, gender perspective, building cooperative and its management, 2) strengthening their skills on developing home industry, training for raising a cow and making organic fertilizer, 3) increasing income through providing capital loans for livelihood activities with a low-interest rate, providing the corn threshing machine, renovation of infrastructures (irrigation canal, road and bridge), 4) promotion of healthy life behaviour through health promotion, building latrines and water storage cisterns, renovation of houses, providing seeds of fruit plants and 5) managing project sustainability of Pansos by managing micro-credit cooperative (selection of new beneficiaries, collecting repayment of capital loans, searching source of loans).
Yayasan KARINA (Caritas Indonesia)
Economic Empowerment and Community Health Services for the Poor People
Y1: July 2017 to June 2018; Y2: July 2018 to June 2019
Y1: IDR 1,107, 141,400; Y2 ; IDR 956, 322, 366
1 April 2020 to 8 May 2020
II. OBJECTIVES OF THE AUDITOR
The objectives of this external auditor are:
A. MAIN POINTS OF AUDIT
- The Financial information and reports accurately present, in all material respects, the actual expenditure incurred, and the revenue received by the Project Holder for the period July 1, 2017, to June 30, 2019, in conformity with the applicable Contractual Conditions set by donors (if applicable);
- The incomes and expenses, assets and liabilities are adequately supported by original documentation and have been properly accounted for; assets declared as used, the inventory systems show proofs of existence at the date of the agreement; the method applied for the conversion of local and foreign currencies into IDR is consistent with standard accounting practices.
- Adequate and effective internal control system exists.
B. AUDIT SCOPE
- The audit work shall cover the adequacy of accounting and financial operations, reporting and management as well as accounting procedures (referring to the national law and the international accounting standards).
- Verification of mathematical accuracy is expected, in order to ensure that the expenditures described in the financial statements are reconciled with the supporting documents and with the bank statements.
- The period covered by the audit is: 1 July 2017 to 30 June 2019
- The audit will take place in Jakarta.
C. VERIFICATION PROCESS AND METHODOLOGY
The audit methodology and the audit techniques to be used are those in accordance with international auditing standards and following the ISA 700 norm.
The audit report should include the following:
- Audit method used and the scope of the audit.
- The statement declares that all information and documentation needed to complete the audit has been made available as required.
- The declaration that the required audit standards that have been applied.
- Distribution and use of the audit report.
- Formal Opinion.
- The period covered by the report.
- Cash flow statement covering the project implementation period (please insert the exact period covered).
- Statement of receipts and expenditures covering the project implementation period (please insert the exact period covered).
- Income table by the source of funding.
- The balance at the end of the implementation period.
- The auditor should submit a letter to the management at the completion of the audit. The management letter should include recommendations to address any weaknesses identified with regards to financial regularity, the internal control system, adherence to contract conditions and the effective use of financial resources.
- The audit report shall be written in Bahasa & English
The draft audit report should be submitted to Caritas Indonesia (Yayasan KARINA) by April 30, 2020. The draft audit report will be reviewed by the Caritas Indonesia (Yayasan KARINA) before it is finalized and submitted. The final audit report should be released on May 8, 2020.
|Note: Audit opinions must be one of the following: (a) qualified (negative), (b), unqualified (favourable), (c) adverse (negative), or (d) disclaimer (negative). If the audit opinion is other than “unqualified” (favourable) the audit report must describe both the nature and amount of the possible effects on the financial statements. The report should also make a reference to the section of the management letter regarding the action taken or planned to be taken to address the issues underlying the qualification.
F. ELIGIBILITY OF THE AUDITOR
By agreeing on these ToR the Auditor confirms that he/she meets at least one of the following conditions:
- The Auditor and/or the firm is a member of a national accounting or auditing body institution which in turn is a member of the International Federation of Accountants (IFAC).
- The Auditor and/or the firm is a member of a national accounting or auditing body institution. Although this organization is not a member of the IFAC, the Auditor commits him/herself to undertake this engagement in accordance with the IFAC standards and ethics set out in this ToR.
- The Auditor and/or the firm is registered as a statutory auditor in the public register of a public oversight body in a third country and this register is subject to the principles of public oversight as set out in the legislation of the country concerned (this applies to auditors and audit firms based in a third country).