The Fred Hollows Foundation (FHF) is a non-profit international development organization headquartered in Australia and founded in 1992 by Professor Fred Hollows, an internationally acclaimed eye surgeon and an activist for social justice who championed the right of all people to high-quality and affordable eye care and good health.

Working in 25 countries, FHF’s vision is for a world where no one is needlessly blind or vision impaired.

Our priority is to work with communities to improve their own eye health through life-changing surgeries and treatments, training doctors and health workers, generating new ideas, and pushing for change at all levels – from local to global.

Our Values

Our values of integrity, empowerment, collaboration, and action underpin every aspect of our work around the globe.

FHF Indonesia office:

In Indonesia, FHF has been collaborating with the Ministry of Health since 2012 for the prevention and control of cataract and refractive disorders in children. On March 22, 2022, a Memorandum of Understanding (MoU) for the period 2022-2025 was signed between FHF and the Ministry of Health of the Republic of Indonesia, represented by the Directorate of Non-Communicable Disease Prevention and Control.

FHF Indonesia has a total of 3 local staff and 1 expatriate. A management team composed of 1 Country Program Manager, 1 Operations Coordinator, 1 Project Manager and 1 Project Officer oversees the overall operations of the country office, with additional support from the Country support network (CSN) and Global Office.

FHF Indonesia has achieved significant accomplishments in service delivery and partner capacity building over the past 12 years, which has served as the basis for the country program to move from supporting service delivery to engaging more of a health system strengthening and advocacy approach.

Currently, FHF Indonesia implement the Comprehensive Community Eye Care (CCEC) Program which carried out in 10 districts/cities in the West Nusa Tenggara Province and the National Integrated Cicendo Eye Health (NICEH) Program in 3 districts/cities in the West Java Province

Objective

The objective of the annual audit is to seek independent assurance by external auditors in order for stakeholders to gain reasonable assurance that the financial statements and its accompanying disclosures are free from material misstatements; and can therefore be relied upon to present a true and fair view of the affairs of FHF Indonesia Office and to reassure that project funds have been used for their intended purposes.

Scope of the External Audit

The scope of the external audit will be:

1. Review compliance with local laws, rules and regulations governing the financial management.
2. Review compliance with policies and standards prescribed by The Foundation.
3. Evaluate robustness of Internal Control Systems.
4. Give an opinion and view on true and fair state of affairs of the financial statements at the end of the period.

1.                  Procedures

External Audit procedures are performed in accordance with generally accepted International Audit Standards (IAS) and the financial statements should be prepared in conformity with IPSAS. The below is the reports required with prior year comparison:

• Statement of Financial Position
• Financial program report
• Statement of Comprehensive Income
• Statement of CASH FLOWS

The independent external audit must cover the total annual budget of the Office, and not be limited to funds provided by The Foundation, the audit period is from 01 January to 31 December 2024 with an estimate annual budget of IDR 20,000,000,000 (twenty billion IDR) in which IDR 3,200,000,000 (Three billion two hundred IDR) will be used for Support and Management cost (Staff/Office/Operation). Estimate % actual spending would be around 70% of the budget.

Requirements from the auditor:

1. Auditors must provide an audit request list (a list of items an auditor will need in order to perform an audit for the client) four weeks prior to the commencement of the audit.
2. Auditor must provide FHF Indonesia adequate time to source samples required as part of the audit process
3. Auditors are required to share your audit procedure on expenses consisting of the payroll and operating expenses (including testing the allocation of expenses to the correct project codes/ cost centres) and other instructions of our global auditors, BDO Australia by February 15th. All requests should be uploaded to the BDO portal by this date.
4. The audit should be planned appropriately to ensure the audit report is finalised and submitted to Indonesia Office/Head Office Finance in Sydney no later than 15 March 2025

Here is the proposed schedule for Audit filed work and timeframe

2.                  External Audit Report

The external auditor will prepare an audit report that includes an audit opinion on the financial statements that should address the fairness of the financial statements for the period being reported and that they are prepared in accordance with IAS and IPSAS as mentioned above in Procedure.

If the auditor concludes that the financial statements are not prepared in conformity with these policies and standards, the limitation(s) should be described in the report.

The external auditor appointed must prepare a separate Management Report detailing:

1. Findings on compliance with local laws, rules and regulations affecting financial management, including but not limited to income tax laws, VAT laws, mandatory contributions to provident fund, pension etc.
2. Findings on weaknesses in internal financial controls and recommendations to correct such weaknesses. This includes departures from The Foundations prescribed financial, accounting policies, procedures, and other conditions considered by the auditor to represent significant risk.
3. Findings on opportunities and suggestions to improve operating efficiencies in financial management.

The audit report should be submitted to FHF Indonesia/Head Office Finance in Sydney no later than 15 March of the following year.

Qualifications and Experience

The Audit firm will assign staff with appropriate professional qualifications and suitable experience with Project and Donor Audits, in particular with experience in carrying out auditing of not-for-profit entities comparable in size and complexity. In addition, the engagement team as a whole should have:

1. Experience in conducting audits of development aid programs and projects funded by international donors and institutions;
2. Sufficient knowledge of relevant laws, regulations and rules in Indonesia. These include but not limited to the civil society proclamation, tax, social security and labor regulations, accounting, and reporting.

General Principles

By agreeing to these Terms of Reference, the Audit Firm confirms that it meets the following conditions:

1. The auditor(s) and/or the firm are duly registered and are compliant with regulations of Indonesia.

1. The audit firm is not prohibited to undertake audits of initiatives or institutions funded through DFAT and USAID (if applicable).

Interested Firms are requested to submit their proposal, which should contain (but not limited to):

• Date of incorporation
• Renewed License
• VAT (or other relevant local tax reporting) registration
• Key partners/senior managers
• List of clients and related experience
• Services offered
• Financial Proposal (provide the Package fee including VAT and Out of money pocket)
• Proof of registration
• Professional license

The proposal should advise the attention to:

The Fred Hollows Foundation

Voffice Suite I, The City Tower 12 Floor

Jl. MH Thamrin No.81 Dukuh Atas, Menteng

Jakarta Pusat 10310

Please submit your proposal via email to: [email protected]  cc: [email protected]

Shall you have any queries on TOR, please contact: [email protected]