Terms of Reference for External Auditor
Period covered by the audit: 1 January – 31 December 2018
Yayasan Bersama Lestarikan Nusantara (“Yayasan Belantara”) is an Indonesian grant-making institution formed in 2014 with the goal of delivering wide-ranging community and conservation results. It takes its name from the Indonesian word ‘Belantara’ which means wilderness or pristine forest.
We work to protect the Indonesian landscape by funding local projects in areas that are set aside for conservation, reforestation and sustainable community development.
Belantara’s primary focus is to allocate grants to support restoration, protection, conservation of endangered species (specifically Sumatran Tiger, Sumatran Elephant, as well as Sumatran and Bornean Orangutan), institutional development, and community development and empowerment initiatives in conservation areas, production forests, protection forests, and social forestry in the ten specified grant distribution areas across five provinces on the islands of Sumatra and Kalimantan (Indonesian Borneo).
Working with local communities, governments, the private sector and NGOs, Belantara relies on a multi-stakeholder approach to better inform decision-making when addressing resource management problems. With the Essential Ecosystem Areas (KEE) stretching across the grant distribution areas, a coordinated response between all stakeholders for the effective management and preservation of critical ecosystems is required.
As an independent foundation, Belantara aims to work with all parties that share its goals, coordinating and collaborating with partners within each of its ten specified grant distribution areas. Belantara aims to ensure that existing initiatives are aligned, minimizing the risk of projects overlapping while maximizing information and data sharing.
In 2016 – 2018 Belantara have had agreement with all grantees in Riau, West Borneo, South Sumatera and Jambi, Consistent to grant agreement, Belantara must ensure that all grant fund is well managed and implemented appropriately to SOP also consistently to program objective. Belantara wants selecting external audit independently to assure it. The audit scope is financial statement for implementing period 1 January – 31 December 2018, The total fund has been disbursed by Belantara to 19 Grantees, therefore the firm which is selected will conduct audit for 20 institutions.
- Objectives of the Audit
- The objective of the audit of the financial statements is to enable the auditor to express a professional opinion on the financial position of the Grant program for period of 1 January to 31 December 2018 and of the funds received and expenditures for the reporting period, as reported by the Belantara and Grantees and in particular to confirm that the reported expenditure has in all material respects been used in conformity with the provisions of the Grant Agreement, including any amendments and any applicable guidelines in force and applicable to the audit scope.
- To also confirm that the Financial statements agree with the program accounts (books of account) which provide the basis for preparation of the Financial statements and are established to reflect the financial transactions in respect of the Program, as maintained by the program implementing entities.
- To also confirm that the Financial statements agree or reconcile with any other information reported.
- Audit Scope of Work
- The audit will be carried out in accordance with Standards on Auditing
- In conducting the audit, special attention should be paid to the following:
- Compliance with applicable legislation
- Grant expenditures
- System of internal controls
- Designated bank accounts - Where Designated Accounts (including those been used under an approved pooled funding program implementation mechanism) have been used by Belantara and all grantees, they have been maintained in accordance with the provisions of the Grant agreement and in accordance with Belantara’s rules and procedures. The auditors should examine:
- The eligibility and correctness of financial transactions during the period under review and account balance at the end of the period;
- Operation and use of the account in accordance with the Grant Agreement, Implementation or Management Letters; and
- Adequacy of internal controls over the operation of the account.
- Safeguarding of assets
- Goods and services
- Disbursements to Grantees
- Data retention and supporting documentation - All necessary supporting documents, records, and accounts have been retained in compliance with provision of the Grant Agreement. Procedures exist for security and management of electronic data (backup systems and procedures, etc.)
- Auditor’s Report
- In preparing the audit report, the selected audit firm will issue an appropriate audit opinion in accordance with SAK
- Financial statement audited
- Management Letter.
- In addition to the audit report, the auditors will prepare a management letter
- It must clearly be noted on the face of the Management Letter that it is a confidential document and must be treated
- The Management Letter should state that the auditor acknowledges and agrees that the Management Letter shall be shared with Belantara on a confidential basis.
- Auditor’s Report
- Qualification of External Auditor
- Public Accountant Firm should be independent or not related from management or financial aspects of auditee. It’s stated on Integrity Pact signed both by Public Accountant Firm and Belantara.
- Public Accountant Firm should has valid operation permit as public accountant in Indonesia. This firm should hire staff with required educational background.
- Auditor should have experience in standar audit implementation and fully ackonowledged of auditee’s company background.
- All staffs should has bachelor degree in accounting or auditing, proved by Curriculum Vitae. Audit Team should has experience in audit non govermental organization will be an advantage.
- Auditor Team should consist of Manager Auditor (1 person), Senior auditor (1 person), and Junior auditor (3 persons).
- Auditor will conduct audit in Belantara office and also assessment visit to all grantees.
For those interested, please do apply by sending an offering quotation to email email@example.com with the subject of External Audit.
Close date: 17 January 2018