Independent Auditor Service for MEMBACA Project

1. Background

Save the Children in Indonesia is changing for the better.  We have
begun to build a national organization that aims to be a strong, local,
and self-sustaining voice for children in Indonesia namely Yayasan
Sayangi Tunas Cilik.  To this end, Yayasan has been designated as a
“Prospect Member of Save the Children” which focuses on strengthening
and localizing our voice for children in strategic middle income
countries. Currently Save the Children’s programs in Indonesia is
implemented by Yayasan Sayangi Tunas Cilik and we have been working in
eleven provinces focusing on Child Protection, Education, Health and
Nutrition, Disaster Risk Reduction, and Humanitarian Response.

Making Early Education Matter through Books and Community Action
(MEMBACA, which means ‘read’ in Indonesian) is one of our projects which
focusing on Literacy Boost for early grade students. The main purpose
of MEMBACA project is to attain 2,250 children right in Kupang District,
Nusa Tenggara Timur in order to get high-quality education and boost
their literacy skills. The target groups of MEMBACA project are Primary
school students, primary school teachers, primary school principals, and
volunteers from communities  in Kupang district, Nusa Tenggara Timur.
During the project implementation, MEMBACA project team working closely
with district education office, the district planning office, schools,
communities, and children; no sub-grants or direct relationships with
local NGO. The total funding project is DKK 3,900,000 for three years
for project activities, personnel, equipment, other direct costs, and
programs costs, starting from 01 January 2014 to 31 December 2016.

2. Objectives

The objectives of the audit are to enable the Auditor to express an opinion on whether

1. The financial statements for the project give a true and fair view
   of the state of the project’s financial affairs from 01 January 2014 to
   31 December 2016 in accordance with internationally recognized audit
   principles.
2. The internal control system designed   and operated for the purposes
   of managing risks to the achievement of the objectives of the Program
   was suitably designed and operated effectively in the period of 01
   January 2014 to 31 December 2016
3. Letter to the management as recommendation period of 01 January 2014 to 31 December 2016
4. The grant fund provided by Save the Children Denmark and Hempel
   Foundation has been used in conformity with the applicable agreement
   conditions

3. Scope of Audit

The subject of this engagement is the Audit Financial Report in
connection with the Grant Contract for the period covering 01 January
2014 – 31 December 2016 under the action entitled Making Early Education

Matter through Books and Community Action (MEMBACA, which means ‘read’
in Indonesian). Auditor will perform audit works in Jakarta.  There will
be possibility of travel to Kupang area including several districts as
for checking documents.

 The following should be included in the audit scope:

• Assessment of the adequacy of internal controls over funds received.
• Assessment of the adequacy of the systems of control over
  procurement of supplies, equipment and services. Any procurement
  exceeding USD 500 (five hundred US dollar) under the co-operation
  agreement has been conducted in accordance to procurement guidelines
• Verification of income and expenditure and the control of fixed assets, as specified hereunder (but not limited to):

a)     Check and or verify the vouchers and other relevant documents.

b)    Evaluate the evidence i.e.  vouchers and receipts to determine reliability and authenticity of them.

c)    Review indirect cost charged to the Projects and check that
such costs are in accordance with the Projects plans and budgets, and
that they are reasonable.

d)    The Financial report is made against the approved budget and contains explanation for deviations exceeding 10%

Yayasan Sayangi Tunas Cilik will prepare the financial report Period
of 01 January 2014 – 31 December 2016, will be present 24 February 2017

The External auditor might be starting the audit process on 24
February 2017 for the expenditures period of 01 January 2014 to 31
December 2016

For funds transferred to other organizations as implementer:

The Auditor verifies all the documents (e.g. supplier invoice or
contract, Purchase Order, Payment voucher, etc) refer to the procedure.

4. Independence and Qualification Auditor

In conducting the audit, auditor should refer to International
Standard of Auditing (ISA).  Special attention shall be drawn to the
following paragraph of ISA:

1. Paragraph 240: ” The Auditor’s Responsibility to Consider Fraud and Error in an Audit of Financial Statements”
2. Paragraph 800: “The Auditor’s Report on Special Purpose Audit Engagements”

The audit shall be conducted in accordance with internationally
recognized audit principles and based on Save the Children
Denmark/Hempel Foundation guidelines for spending and reporting.For more information please visit : https://indonesia.savethechildren.net/jobs/job-details/522

5. Submission of Proposal

 Audit firm must submit proposal to us by Friday, February 10^th 2017, before 4 pm Jakarta time, to below address:

 Yayasan Sayangi Tunas Cilik – partner of Save the Children

Jl. Pedurenan Buntu No. 2A.  RT 003 RW 04, Kel. Cilandak Timur,

 Kec. Pasar Minggu, Jakarta Selatan 12560

Phone : +62 (21) – 782 4415

 Or via email: procurement.indonesia@savethechildren.org  Recommended maximum size: 2MB. Write the subject: MEMBACA Audit Service – <your company name>