1. Background
In 2016, eight prominent companies in Indonesia formed the Indonesia Business Coalition for Women Empowerment (IBCWE) with the support of the Australian Government, through the Investing in Women program (https://www.investinginwomen.asia), a multi- country initiative within four countries, Myanmar, Indonesia, Philippines and Vietnam.
IBCWE is a not-for-profit organisation aiming to bring together leading private sector companies across Indonesia to commit to and advance Workplace Gender Equality (WGE) within their organisations and across the community.
Since early 2017, IBCWE has been in receipt of multi-year grants funding from Abt Associates [Abt](through Investing in Women program) for Phase 1 (1 January 2017 – 01 September 2019) and Phase 2 (2 September 2019 – 30 June 2023).
2. Objective
The objectives of the audit of the grant financial statements is to enable the auditor to express opinions on:
(i) whether the grant financial statements (including supplementary statements) present fairly, in all material respects, (or give a true and fair view of) the grant financial position as at each accounting year-end, and its cash flows for the years then ended, in conformity with the accounting standards acceptable to Abt Associates,
(ii) whether the proceeds of the grant were used for the intended purpose, and
(iii) whether the project has complied with the expectations and requirements stated in the grant agreement.
3. Description of the assignment
This audit will cover the Abt grants to the company during the period 1 January 2022 to 31 March 2023, in conformity with generally accepted accounting principles relevant in Indonesia.
4. Scope of Work
In the conduct of the audit, the auditor is expected to:
1. Perform the audit in accordance with the International Financial Reporting Standards, Abt's financial reporting standards or equivalent national accounting standard.
2. Plan and perform the audit to reduce risk to an acceptably low level, including risks of material misstatements in the financial statements whether due to fraud or error,
3. Design and perform audit procedures, and evaluate and report the results including any non-compliance with laws and regulations,
4. Communicate matters of governance arising from the audit,
5. Audit specific to the grant funds and confirm compliance with the grant agreement, such as analysis of the following:
a) Expenditure against approved budget, with emphasis on any allocated salaries, wages and allowances, international travel and any consultant fees.
b) Expenditure in compliance with the organisation's approved finance and accounting procedure manual.
c) Expenditure record keeping and the acquittal processes.
d) Recording and maintenance of fixed assets in line with the grant agreement requirements (if any);
e) Specific reporting on any payments or receivables to/from related parties (revenue received); and
f) Grant cash position and uncommitted grant fund balance (if any).
g) Grant funds have been used in accordance with the conditions of the grant agreement, and only for the purposes for which the financing was provided,
h) Goods, works, and services financed have been procured and grant expenditures have been incurred in line with the grant agreement,
i) All necessary supporting documents, records, and accounts have been maintained in respect of all grant activities,
6. Review the activities of the grants designated account including deposits received, payments made, interest earned, exchange rates used, and reconciliation of period-end balances, and
7. Review all financial reports submitted to Abt Associates and assess the methods used to compile the reports, ascertain that the information given in the reports accurately reflect the underlying records, documents and books of accounts, and verify that the information in the reports reconcile with the annual financial statements.
5. Auditors Responsibilities and Qualifications
The auditor is responsible for forming and expressing an opinion on the grant financial statements in accordance with the auditing standards. As part of the audit process, the auditor may request from Abt Associates written confirmation concerning representations made in connection with the audit.
The auditor must satisfy the following minimum requirements:
· Have adequate relevant professional and educational qualifications, or able to provide audit staff with adequate qualifications, experience, and competence.
· Objective and independent from the grant, its staff, and activities, and from all aspects of management or financial interests of the Indonesia Business Coalition for Women Empowerment (IBCWE)
6. Reporting requirements
1. The auditor is required to deliver an audit report in the English language comprising:
a) An independent audit opinion expressed on the financial component of the Final Acquittal Report and verification of the grant fund balance.
Provide reasonable assurance that the proceeds of the grant were used only for the purpose of the grant, and in compliance with the terms and conditions of the grant agreement.
b) Financial Break-down of the financial statements/figures audited.
A financial breakdown of the figures audited. Either a separately prepared table by the auditors or a copy provided to the auditors by the organisations and/or implementing partner. The auditors must include this in the report. An audit report will NOT be accepted if no financial table detailing the total revenue, expenses and balance for the period is not included by the auditors.
The Financial break- down shall include financial statements with comparative presentation not limited to the following;
· Statement of Cash Receipts and Payments
· Statement of financial position
· Statement of financial performance
· Statement of Comparison of Budget and Actual Amounts
· Supplementary Schedules
o Statement of Bank Account Reconciliation / Certificate of Cash Position
o Summary Statement of Expenditures
· Notes to the Financial Statements
c) Management Letter/report
A management Letter/report outlining any concerns or issues raised, including comments made by the grant recipient in respect of those matters including the following but not limited to:
· Weaknesses and issues in accounting and internal control systems, including irregularities in the use of grant funds, ineligibility of expenditures, and procurement-related weaknesses and issues.
· Auditor's assessment of the causes, and recommendations to improve or rectify the identified weaknesses and issues.
IBCWE's responses to the weaknesses and issues including explanations of the causes, proposed action plan to address the concerns, and the timeline for completion.
· Status of weaknesses and issues identified and reported in prior periods.
· Any continuing or persistent issues and weaknesses, and follow-up actions taken.
· Any matters the auditor considers significant that will impact implementation of the grant activities
7. Management Responsibility
1. The Indonesia Business Coalition for Women Empowerment (IBCWE) is responsible for preparing and fairly presenting the grants financial statements including;
a) bank and cash transaction listing for the grant period thus ensuring the report is to be generated from the organisations finance system
b) A six-monthly cash plan for the next period and
c) An asset register, with clear identification of assets purchased by grant funds (if applicable)
While providing the source documents, the organisation must ensure adequacy of disclosure, and for maintaining sufficient internal controls to ensure that the financial statements are free from material misstatement, whether due to fraud or error. The Indonesia Business Coalition for Women Empowerment (IBCWE) is also responsible for ensuring that the funds were used only for the purposes of the grant, for compliance with financial requirements, and for ensuring that effective internal controls are established and maintained including the procurement process
2. The grant partner's books of accounts provide the basis for preparation of the financial statements and are established to reflect the financial transactions in respect of the activities. This includes maintenance of adequate accounting records and supporting documentation for transactions, selection, and application of accounting policies, and safeguarding of grant assets.
3. (Provide specific information on systems and processes for the accounting, recording and preparation of grant financial statements that are relevant for the audit).
8. Work plan and timetable
The period of the service is expected to be starting from 1 April – 25 May 2023. The auditor will provide a detailed work plan before the start of the engagement and this work plan shall be approved by the IBCWE.
|
ACTION |
DEADLINE |
| Financial and control environment audit commences | 01 Apr 2023 |
| Financial & control environment audit concluded | 17 Apr 2023 |
| Auditor sends audit reports and management Letters to IBCWE | 30 Apr 2023
|
9. Other Matters
1. The auditor is entitled to unlimited access to all legal documents, correspondences, grant preparation and supervision reports, reports of reviews and investigations, financial management assessment reports, and any other information and explanations associated with the grant and considered necessary to facilitate the audit. The auditor may also obtain written confirmation of amounts disbursed from Abt Associates.
2. The auditor is encouraged to meet with the Indonesia Business Coalition for Women Empowerment (IBCWE) and if needed Abt Associates to discuss audit-related matters including inputs to the audit plan. If requested, Abt Associates will also provide necessary information.
3. At conclusion of audit, the auditor will hold a closing meeting with IBCWE to discuss and concur with the preliminary audit findings. The closing meeting will be part of audit workpapers.
4. The audit report will be reviewed by Abt Associates who will confirm in writing acceptance or otherwise of the report. In the event that the audit report is not accepted, Abt Associates will provide in writing the remedial actions that the organisation must undertake and the date by which they must be completed.
5. Abt Associates may conduct a Special Purposes Finance Audit of the Grant Funds annually or more frequently if deemed necessary. The audit scope will be provided to the organisation within two (2) weeks of the commencement of the audit, and the draft audit report and findings will be presented for acceptance or otherwise by the organisation.
10. Financial Audit Fees
The fees will be fixed through a competitive bidding process.
11. Submission and Deadline
0 Comments:
Posting Komentar