Terms of Reference for an external audit of Rutgers – Indonesia financial statements
for the years 2021 to 2022
A. Background
Rutgers is a non-governmental organization that has been working for several decades to improve Sexual and Reproductive Health and Rights. The organization founded and based in the Netherlands implements programmes both nationally and internationally in more than 15 countries in Western Africa, Eastern Africa, Southern Asia and South-East Asia. In Indonesia, Rutgers has a country office in Indonesia which operates within the corporate strategy but applies context-specific sets of programme implementation, research.
In Indonesia, Rutgers WPF began to work in 1997 under the name of World Population Foundation (WPF). Since then, Rutgers WPF Indonesia has continued to work by sharing its expertise, ranging from comprehensive sexuality education, developing modules, addressing issues of violence against women and children, providing access to sexual and reproductive health (SRH) services, as well as promoting diversity and tolerance. Rutgers is a member of the International Planned Parenthood Federation.
Nowadays, Rutgers WPF Indonesia combines the strengths of the organizations by focusing on three interlinked pillars in its work: program implementation, research and advocacy. Program implementation focuses on the access to and quality of comprehensive sexuality education, the access to and quality of SRH services provision and creating acceptance and understanding for young people’s sexuality. In doing so, Rutgers WPF Indonesia collaborates intensively with and provides support to professionals and local partner organizations. Research, carried out by Rutgers WPF Indonesia and its collaborating partners, is aimed at strengthening the evidence base of interventions, and development and measurement of sexual health indicators. Through its advocacy, Rutgers aims at policy development, adaptation and enforcement in all levels related to SRHR issue. The work carried out by Rutgers WPF Indonesia is characterized by a positive and rights-based approach.
As a grant manager, Rutgers Indonesia has been working with 14 implementing partners in 7 provinces across Indonesia. The role of Rutgers is to ensure the quality of programs implemented at national and sub national level, increase the capacity of local partners and provide technical assistance, measurement, evidence-based documents, and guarantee the program not only meet the quality but also accountability and transparency at management and financial aspect.
B. Audit Scope
These terms of reference ‘ToR’ address the requirement for external audit of financial statements of Rutgers WPF Indonesia for the calendar years 2021 to 2022, each lasting from 1 January to 31 December.
Accounting and financial management practices of Rutgers are governed by the Country Office Manual. Financial Statements of Rutgers are prepared in accordance with the Guidelines for annual reporting of the Dutch Accounting Standards Board, especially Guideline 650 “Fundraising Institutions”.
The audits should be carried out in accordance with the international auditing standards while complying with the guidelines of the Raad voor de Jaarverslaggeving, including the Richtlijn Verslaggeving Fondsenwervende Instellingen (RJ 650).
Sufficient audit evidence should be gathered to substantiate in all material respects for the accuracy of financial statements.
The audit report of the auditors should state if the audit was not in conformity with any of the above and indicate the alternative standards or procedures followed.
C. The Audit Report and Management Letter
Audit Report
The audit report should clearly indicate the auditor’s opinion. The report should include but not limited to the following:
· The title, addressees, and an opening or introductory paragraph containing:
a) identification of the financial information audited including the period covered; and
b) statement of the responsibility of the entity’s management and the responsibility of the auditor.
· A scope and methodology paragraph describing the nature of the audit referencing:
a) the accounting standards that have been applied and indicate the effect of any deviations from those standards;
b) the audit standards that were applied (IFRS standards, or national standards that comply with one of these in all material respects); and
c) the work the auditor performed.
· An opinion paragraph disclosing:
a) whether the financial statements and supporting schedules fairly present the income, cash receipts and expenditure in all material respects and that the funds were used for the purposes defined by the work programme;
b) whether the financial transactions reflected in the statements are in accordance with financial regulations and procedures, budgetary provisions and other applicable directives; and
c) summary assessment of the efficiency of the management and internal control system.
The auditor may expand the report to include other information and explanations not intended as a reservation. Audit reports will be provided in English.
Management Letter
The auditor should submit a letter to the management at the interim audit and completion of the audit. The topics/issues to be covered in the letter should include:
· An assessment of the efficiency of the administration, management and internal control system of Rutgers.
· A description of any specific internal control weaknesses noted in the financial management. Recommendations to resolve/eliminate the internal control weaknesses noted should be included.
· Management comments/response to audit findings and recommendations.
D. Auditor Independence and Qualification
The auditor must also be a member of a national body of accountants, which is in turn affiliated with the International Federation of Accountants (IFAC). The auditor must be completely impartial and independent from all aspects of management or financial interests in the entity being audited. The auditor should neither, during the period covered by the audit nor during the commissioning of the audit, be employed by, serve as director for, or have any financial or close business relationships with any senior participant in the management of Rutgers. The auditor should, prior to engagement, disclose any relationship that might possibly compromise his/her independence.
The auditor should be experienced in applying IFRS audit standards. The auditor must employ adequate staff with appropriate professional qualifications and suitable experience with IFRS standards, including experience in auditing the accounts of entities comparable in size and complexity to Rutgers.
Curriculum vitae (CVs) should be provided to Rutgers by the principal of the audit institution who would be responsible for signing the opinion, together with the CVs of managers, supervisors and key personnel proposed as part of the audit team. CVs should include details on audits carried out by the applicable staff, including ongoing assignments indicating capability and capacity to undertake the audit and experience in auditing financial statements compliant with the International Public Sector Accounting Standards.
E. Access to Facilities and Documents
The financial systems are partly automated in the Exact Globe system and partly manual. All financial records are kept at the financial department of Rutgers Indonesia.
The auditor will have full and complete access during the audit period to all records and documents (including books of account, legal agreements, minutes of committee meetings, bank records, invoices and contracts etc.) and all employees of the entity. The auditor will have a right of access to banks and consultants, contractors and other persons or firms engaged by the program management over the period under the year of 2022.
F. Costs
Auditor to provide a transparent overview of hours spent per function (classified into per partner, auditor, assistant auditor and other functions within the team) including the rate per function information. Auditor should also mention the detailed work plan that will be spent in Rutgers office and its partners. Information regarding the possibility of less or more hours and its consequences will be appreciated.
G. Experience/references
Auditor to provide information on experience working with similar organization, the Guidelines for annual reporting of the Dutch Accounting Standards Board, especially Guideline 650 “Fundraising Institutions”, references that will be contacted by Rutgers, and CV of the team that will work with during the audit process including its role and function.
H. Timeframe
The following is the anticipated timeframe for the services to be provided:
Interested Auditors can submit their proposal by e-mail to recruitment@rutgers.id, indicating the title of this assignment. The closing date for receipt of proposals is July 23, 2021.
Rutgers WPF Indonesia gives equal opportunity employment regardless of gender, sexual orientation, different ability, and religion.
Terms of Reference for an external audit of Rutgers – Indonesia financial statements
for the years 2021 to 2022
A. Background
Rutgers is a non-governmental organization that has been working for several decades to improve Sexual and Reproductive Health and Rights. The organization founded and based in the Netherlands implements programmes both nationally and internationally in more than 15 countries in Western Africa, Eastern Africa, Southern Asia and South-East Asia. In Indonesia, Rutgers has a country office in Indonesia which operates within the corporate strategy but applies context-specific sets of programme implementation, research.
In Indonesia, Rutgers WPF began to work in 1997 under the name of World Population Foundation (WPF). Since then, Rutgers WPF Indonesia has continued to work by sharing its expertise, ranging from comprehensive sexuality education, developing modules, addressing issues of violence against women and children, providing access to sexual and reproductive health (SRH) services, as well as promoting diversity and tolerance. Rutgers is a member of the International Planned Parenthood Federation.
Nowadays, Rutgers WPF Indonesia combines the strengths of the organizations by focusing on three interlinked pillars in its work: program implementation, research and advocacy. Program implementation focuses on the access to and quality of comprehensive sexuality education, the access to and quality of SRH services provision and creating acceptance and understanding for young people’s sexuality. In doing so, Rutgers WPF Indonesia collaborates intensively with and provides support to professionals and local partner organizations. Research, carried out by Rutgers WPF Indonesia and its collaborating partners, is aimed at strengthening the evidence base of interventions, and development and measurement of sexual health indicators. Through its advocacy, Rutgers aims at policy development, adaptation and enforcement in all levels related to SRHR issue. The work carried out by Rutgers WPF Indonesia is characterized by a positive and rights-based approach.
As a grant manager, Rutgers Indonesia has been working with 14 implementing partners in 7 provinces across Indonesia. The role of Rutgers is to ensure the quality of programs implemented at national and sub national level, increase the capacity of local partners and provide technical assistance, measurement, evidence-based documents, and guarantee the program not only meet the quality but also accountability and transparency at management and financial aspect.
B. Audit Scope
These terms of reference ‘ToR’ address the requirement for external audit of financial statements of Rutgers WPF Indonesia for the calendar years 2021 to 2022, each lasting from 1 January to 31 December.
Accounting and financial management practices of Rutgers are governed by the Country Office Manual. Financial Statements of Rutgers are prepared in accordance with the Guidelines for annual reporting of the Dutch Accounting Standards Board, especially Guideline 650 “Fundraising Institutions”.
The audits should be carried out in accordance with the international auditing standards while complying with the guidelines of the Raad voor de Jaarverslaggeving, including the Richtlijn Verslaggeving Fondsenwervende Instellingen (RJ 650).
Sufficient audit evidence should be gathered to substantiate in all material respects for the accuracy of financial statements.
The audit report of the auditors should state if the audit was not in conformity with any of the above and indicate the alternative standards or procedures followed.
C. The Audit Report and Management Letter
Audit Report
The audit report should clearly indicate the auditor’s opinion. The report should include but not limited to the following:
· The title, addressees, and an opening or introductory paragraph containing:
a) identification of the financial information audited including the period covered; and
b) statement of the responsibility of the entity’s management and the responsibility of the auditor.
· A scope and methodology paragraph describing the nature of the audit referencing:
a) the accounting standards that have been applied and indicate the effect of any deviations from those standards;
b) the audit standards that were applied (IFRS standards, or national standards that comply with one of these in all material respects); and
c) the work the auditor performed.
· An opinion paragraph disclosing:
a) whether the financial statements and supporting schedules fairly present the income, cash receipts and expenditure in all material respects and that the funds were used for the purposes defined by the work programme;
b) whether the financial transactions reflected in the statements are in accordance with financial regulations and procedures, budgetary provisions and other applicable directives; and
c) summary assessment of the efficiency of the management and internal control system.
The auditor may expand the report to include other information and explanations not intended as a reservation. Audit reports will be provided in English.
Management Letter
The auditor should submit a letter to the management at the interim audit and completion of the audit. The topics/issues to be covered in the letter should include:
· An assessment of the efficiency of the administration, management and internal control system of Rutgers.
· A description of any specific internal control weaknesses noted in the financial management. Recommendations to resolve/eliminate the internal control weaknesses noted should be included.
· Management comments/response to audit findings and recommendations.
D. Auditor Independence and Qualification
The auditor must also be a member of a national body of accountants, which is in turn affiliated with the International Federation of Accountants (IFAC). The auditor must be completely impartial and independent from all aspects of management or financial interests in the entity being audited. The auditor should neither, during the period covered by the audit nor during the commissioning of the audit, be employed by, serve as director for, or have any financial or close business relationships with any senior participant in the management of Rutgers. The auditor should, prior to engagement, disclose any relationship that might possibly compromise his/her independence.
The auditor should be experienced in applying IFRS audit standards. The auditor must employ adequate staff with appropriate professional qualifications and suitable experience with IFRS standards, including experience in auditing the accounts of entities comparable in size and complexity to Rutgers.
Curriculum vitae (CVs) should be provided to Rutgers by the principal of the audit institution who would be responsible for signing the opinion, together with the CVs of managers, supervisors and key personnel proposed as part of the audit team. CVs should include details on audits carried out by the applicable staff, including ongoing assignments indicating capability and capacity to undertake the audit and experience in auditing financial statements compliant with the International Public Sector Accounting Standards.
E. Access to Facilities and Documents
The financial systems are partly automated in the Exact Globe system and partly manual. All financial records are kept at the financial department of Rutgers Indonesia.
The auditor will have full and complete access during the audit period to all records and documents (including books of account, legal agreements, minutes of committee meetings, bank records, invoices and contracts etc.) and all employees of the entity. The auditor will have a right of access to banks and consultants, contractors and other persons or firms engaged by the program management over the period under the year of 2022.
F. Costs
Auditor to provide a transparent overview of hours spent per function (classified into per partner, auditor, assistant auditor and other functions within the team) including the rate per function information. Auditor should also mention the detailed work plan that will be spent in Rutgers office and its partners. Information regarding the possibility of less or more hours and its consequences will be appreciated.
G. Experience/references
Auditor to provide information on experience working with similar organization, the Guidelines for annual reporting of the Dutch Accounting Standards Board, especially Guideline 650 “Fundraising Institutions”, references that will be contacted by Rutgers, and CV of the team that will work with during the audit process including its role and function.
H. Timeframe
The following is the anticipated timeframe for the services to be provided:
Interested Auditors can submit their proposal by e-mail to recruitment@rutgers.id, indicating the title of this assignment. The closing date for receipt of proposals is July 23, 2021.
Rutgers WPF Indonesia gives equal opportunity employment regardless of gender, sexual orientation, different ability, and religion.
