Terms Of Reference Finance Audit of “Proyek Tiga Desa” (PROTIDES) Increase Capacity Kebonarum Parish and Community Capacity to Plan Preparedness and Recovery from Merapi Eruption” or known as Protides March 2013
The Project of “Increase Capacity Kebonarum Parish and Community Capacity to Plan Preparedness and Recovery from Merapi Eruption” or known as Protides is a continuation of the EA 19/2011 project. PROTIDES project is part of the activities implemented by KARINAKAS as an effort to assist survivors of the Merapi Eruption 2010. The focuses of this project are Disaster Risk Reduction issues, Livelihood recovery for vulnerable communities and clean water for the assisted areas.
Locations of the project are Talun, Tegalmulyo, and Sidorejo Villages of Kemalang Sub-district at Klaten Regency. Those villages are within Kebonarum Parish area. In this project, KARINAKAS works hand in hand with PWNU-DIY (Pengurus Wilayah Nahdatul Ulama – Daerah Istimewa Yogyakarta), and Kebonarum Parish. Meanwhile, in the community level, KARINAKAS encourages active participation from TSD (disaster preparedness team at village level) and local government in each area.
The methodology of this project was discussion and consultation with local government, TSD team, Leader of Community and Representative of Community. In Talun, Tegalmulyo and Sidorejo Villages the process of disseminating information was held on January 7, 11 and 12, 2012. The process of disseminating information was continued by Participatory Disaster Risk Assessment (PDRA) process. Community organizers from KARINAKAS conducted PDRA with TSD team from three villages, local government, community and local facilitators. Latter on, the result of PDRA was used as references to develop community action plans (CAPs). The CAPs will be verified by experts, such as from livelihood consultant and clean water engineer.
To increase the capacity at community level, KARINAKAS also provided Introduction to DRR and PDRA trainings for local facilitators, representatives of TSD in three villages, representatives of PWNU-DIY and the PROTIDES team. The trainings were held on 21-22 and 26-28 March 2012 at the meeting room of KARINAKAS.
Yayasan Karina KARINA (Caritas Indonesia) is the humanitarian arm of the Bishops’ Conference of Indonesia based in Central Jakarta and is officially considered as a member of the Caritas Internationalist confederation. Karina is established in 2006 with focus on disaster management issue which is translated into 4 programs, namely DRR, Diocesan Accompaniment, Promotion and Identity, and Capacity Building for Emergency Response designed for 2011-2013 period. KARINA (Caritas Indonesia) acts as a coordinating and facilitating body for all the 37 Dioceses incorporated under the Bishops’ Conference of Indonesia
Karitas Indonesia – Keuskupan Agung Semarang (KARINAKAS) KARINAKAS is a humanity service agency which had been established since the Yogyakarta’s earthquake in 2006. According to the Bishop’s Decree (Surat Keputusan Uskup) on June 12, 2006, KARINAKAS became the humanity service agency in the Diocese level. The presence of KARINAKAS got positive supports from KARINA KWI and Caritas Internationalis which is based on Rome and its member are 162 from around the world.
The objective of the assignment is to audit the accounts and evaluate the financial management practices of KARINAKAS Financial Statement of Increased Kebonarum Parish and Community Capacity to Plan Preparedness and Recovery from Merapi Eruption Project, period of 1 December 2011 up to 30 November 2012 extended to 1 December 2012 up to 28 February 2012. Total project budget is IDR 1.325.601.700 / EURO 115,269,71 purposed for effective support to the project above. The audit is also intended to provide a professional assessment on the financial management, the bookkeeping system and the procedures for internal controls and SCOPE
The selected auditor shall conduct the following tasks:
· Audit and review the accounts of Financial Statements for Increased Kebonarum Parish and Community Capacity to Plan Preparedness and Recovery from Merapi Eruption Project, period of 1 December 2011 up to 30 November 2012 extended to 1 December 2012 up to 28 February 2012. To examine a representative sample of payment transactions of the projects, including accuracy and completeness of records and evidence of exchange transactions from foreign into national currency of funds received for the programme.
- Certify that the funds were utilized for their intended purposes according to the terms in the project Memorandum of Understanding ( MOU );
- Produce a management report on the evaluation of the financial management practices of Increased Kebonarum Parish and Community Capacity to Plan Preparedness and Recovery from Merapi Eruption Project indicating the strengths and weaknesses, as well as corrective measures needed to ensure proper financial management.
- Review all significant contracts and audit all costs paid by Increased Kebonarum Parish and Community Capacity to Plan Preparedness and Recovery from Merapi Eruption Project;
- Assess the Financial and Administrative Manual in Yayasan Karina and also Karinakas as project implementer to ensure that the manual is complete and that it reflects the procedures of current fiscal and administrative management practices and procedures;
- Assess the internal controls of Increased Kebonarum Parish and Community Capacity to Plan Preparedness and Recovery from Merapi Eruption Project, including controls related to personnel management, procurement, invoicing for services rendered, inventories, safeguard of Increased Kebonarum Parish and Community Capacity to Plan Preparedness and Recovery from Merapi Eruption Project’s assets ( cash, bank, fixed assets, etc. ); and,
- Any other related financial and administrative matter that may arise during the course of the assignment.
- Public accounting firm, registered in Indonesia,
- Third independent party, with no secondary interest in the project or with the parties involved in this audit.
- Good knowledge and understanding of general accounting procedure,
- Minimum 5 years of experience in particularly auditing nonprofit organization is preferable,
- Good understanding of English in oral and written is preferable.
Bidding information All interested third parties should submit their proposal according to the ToR by .3 March 2013. The proposal should at least include:
- A letter of interest facilitating the audit,
- A work plan and proposed time schedule for the audit,
- A methodology overview used during the audit,
- A budget, including all professional, transportation, tax and other costs,
- CVs of the staff/consultants you are planning to use
Payment installment Upon agreement on audit fee between the auditor and Karina KWI, an invoice must be submitted to Karina KWI for payment purposes. The payment schedule is as follows:
- Contract signing by both parties, 25% of the payment will be installed.
- The second installment will be paid as the audit phase has finished as per time frame (25% of contract payment).
- The remaining payment will be installed after the final report submitted (50%).
The report shall describe the major findings arising from the work performed together with appropriate recommendations, both in English and in Bahasa Indonesia. The report shall also include an audit opinion and management letter of project of Increased Kebonarum Parish And Community Capacity To Plan Preparedness And Recovery From Merapi Eruption, KARINAKAS Indonesia Project. The report shall be on behalf or Yayasan Karina.
References The auditor shall consult the following documents in conducting this assignment:
- Karina’s Notary Deed and any subsequent amendments, as well as Karina’s statute;
- Contracts for all staff; Increased Kebonarum Parish and Community Capacity to Plan Preparedness and Recovery from Merapi Eruption Project.
- All MOUs and project agreements for all projects to be audited;
- Yayasan Karina’s and Karinakas financial and administrative guidelines.
The initial contract period is for 2 weeks. An extension of the contract period is subject to the common appraisal of the auditor and Yayasan Karina during the initial phase of the audit.
The final report would be expected to be submitted after the audit has been completed (not more than 2 weeks), and should be issued in English to Yayasan Karina and KARINAKAS.