Terms of Reference
External audit for emergency response project in Lombok
External audit for emergency response project in Lombok
Introduction
Yayasan Plan International Indonesia (YPII), a national affiliated entity of Plan International Inc., has been working in Indonesia since 1969. Plan International is a child rights and humanitarian organisation that focuses on promoting equality for girls at all times including in times of crisis. In response to series of powerful earthquakes at magnitude of 5,9 M to 7,0 M that struck Lombok islands from July 29th to 19 August 2018, YPII quickly mobilised its resources to respond to humanitarian needs on the ground.
Following its Rapid Needs Assessment, YPII implemented an emergency response period for 6 months in North Lombok and West Lombok. With the support from The Government of the Hong Kong Special Administrative Region (HK SAR) and Plan International Hong Kong, YPII has enabled to complete a 9-week rapid emergency response started from 24 September 2018 to 14 December 2018.
The emergency project focused on delivering Non-Food Items (NFIs) comprising Shelter Kits (tarpaulin, ropes, blankets, and mats) and Hygiene Kits (standard household sanitary and personal hygiene kits) to 3,000 the most affected families in two affected sub-districts in North Lombok district. Yayasan Plan International Indonesia wishes to engage the services of an audit firm for the purpose of auditing the Emergency Response implemented specifically funded by HK SAR in Lombok Indonesia as stipulated in the agreement between YPII and Plan Hong Kong (Funding Approval Document/FAD YPI100009). YPII has for the audit period obtained a grant of 2,916,000 HKD (317,232 EUR) from the donors (HK SAR and Plan Hong Kong).
The audit shall be carried out in accordance with the Hong Kong Standards on Auditing 700 issued by the Hong Kong Institute of Certified Public Accountants[1] or equivalent. In addition to the audit of the financial statements, the assignment also includes an engagement to perform agreed-upon procedures regarding financial information in accordance with International Standard on Related Services, ISRS 4400 in accordance with the terms and review areas listed in section II. The audit shall be carried out by an external, independent and qualified auditor. The auditor shall be registered and have a license with the IFAC Member body in the country. Contractual agreement between YPII and the selected audit firm will need to be reviewed and approved by Plan Hong Kong before commencing the work and specific consideration will be given to the agreed method of payment that accommodates the nature of assignment and potential extra revisions upon request of donor beyond the contractual period.
Objectives and scope of the audit
The objective is to audit the financial report for the period 24 September 2018 to 20 January 2019 as submitted to Plan International Hong Kong and to express an audit opinion according to HKSA700 (Hong Kong Standards on Auditing 700) on whether the financial report of YPI100009 is in accordance with the relevant terms and Plan International Hong Kong's instruction for financial reporting as stipulated in the agreement, including annexes between Plan Hong Kong and YPII, with specific conditions to confirm are as follows. A note should be included in the financial statements to the effect that all payments of grant from the Disaster Relief Fund comply with the conditions of grant... For accounting done in the accrual basis, reference should be made to paragraph 10 of the Hong Kong Accounting Standard 1 for providing a complete set of financial statements. A detailed breakdown of the items of related overheads or itemised administrative costs has been provided in the financial statements. The administration cost is up to 5% of the grant or up to 5% of the total costs incurred in the relief programme, whichever is the lesser.. (5% of the total costs = relief service/items and related transportation costs ÷ 95% × 5%). The amount to be refunded to the Government is indicated, if any. If a currency other than Hong Kong Dollars (HKD) is adopted in the Audited Account, please include an income and expenditure table in HKD calculated with the actual exchange rate and attach relevant documentary evidence (e.g. bank slip).
The reporting shall be signed by the responsible auditor (not just the audit firm) and title.
The reporting from the auditor shall include an Independent Auditor’s Report in accordance with the format in standard HKSA700 and the auditor’s opinion shall be clearly stated. If a format other than HKSA700 is adopted, please specify the standard used and confirm its equivalency. The financial report that was subject to the audit shall be attached to the Independent Auditor’s Report. The reporting from the auditor shall also include a Management letter with audit findings and weaknesses identified during the audit process.
The auditor shall regardless of materiality, quantify the amount for costs lacking sufficient supporting documentation. The auditor shall make recommendations to address the weaknesses identified and the recommendations shall be presented in priority order. If the auditor assesses that no findings or weaknesses have been identified during the audit that would result in a Management letter, an explanation of this assessment must be disclosed in the audit reporting.. Measures taken by the organisation to address weaknesses identified in previous audits shall also be presented in the Management letter. The additional assignment according to agreed-upon procedures HKSA700 under paragraph II, shall be reported separately in a “Report of factual findings”.
If you want to know more the details about this please send email to ajun.khamdani@plan-international.org
All applications will be submit your letter of application by email not later than January 30, 2019 to: wieke.dita@plan-international.org and CC to ajun.khamdani@plan-international.org
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