TERMS OF REFERENCE
2021 Financial Audit of SEAOHUN Foundation
INTRODUCTION
Background
Southeast Asia One Health University Network (SEAOHUN), established in late 2011 with support from the United States Agency for International Development (USAID), is the regional network of universities in Southeast Asia working together to develop a resilient and competent One Health workforce by leveraging education, research, and training provided by university networks in Southeast Asia. In 2013, the SEAOHUN agreed to establish a foundation to support and assure the long-term sustainability of the Network and its secretariat office is located Chiang Mai.
SEAOHUN members comprise subject matter experts of multiple disciplines connected to the health of humans, animals, and their shared environment. In 2021, SEAOHUN comprises 92 universities in eight (8) Southeast Asian countries – Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Thailand, and Vietnam – collaborating to improve One Health workforce capacity and build the next generation of One Health professionals with cross-sectoral competencies to effectively prevent, detect and respond to infectious disease threats. Our vision is to be a regional network of universities in Southeast Asia generating social and intellectual excellence on One Health.
A core function of SEAOHUN Foundation is to promote and facilitate collaborative activities and projects among network members, with an emphasis on trans-disciplinary and trans-boundary partnerships. Programming includes but is not limited to support for student and staff exchanges, curriculum development, strengthening and developing teaching methodologies, and support for research capacity building and innovative projects that provide an evidence-base for One Health advocacy with governments and other collaborating partner agencies.
SEAOHUN Foundation is seeking an external audit firm to perform a financial audit per the U.S. Government requirements and provide guidance to SEAOHUN with regards to financial performance covering the period of January 1, 2021 to December 31, 2021. For more information about SEAOHUN, please visit our website: www.seaohun.org
Audit Objective
The objective of the financial audit is to enable the auditor to express a professional opinion on the financial position of the project at the end of the calendar year and of the funds received and expenditures for the calendar year, as reported by the SEAOHUN and the subawardees/contractors and in particular to confirm that the reported expenditure has, in all material respects, been used in conformity with the provisions of the USAID, and Thai regulations, including any amendments in terms of agreements, and any applicable guidelines in force and applicable to the audit scope, and with due attention to economy and efficiency.
To also confirm that the financial statements agree with the project 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 projects, as maintained by the Foundation and the subawardees/contractors.
To also confirm that the Financial Statements agree or reconcile with any other information reported to the USAID.
SCOPE OF WORK
The audit will be carried out in accordance with U.S. Government Auditing Standards (GAGAS) or International Standards of Supreme Audit Institutions (ISSAIs) in conjunction with GAGAS. The auditor and audit firm should have experience with USAID-funded audits and approved under USAID List of Acceptable Audit Firms.
It will include such tests and controls as the auditor considers necessary including any visits to the office. Representative sampling may be used as the auditor considers necessary. This exercise is required to give full and satisfactory audit discharge to the project expenditure from January 1, 2021 to December 31, 2021. Specific focus will be:
1) The audit work shall cover the adequacy of the accounting and financial operations and reporting systems for both the statutory audit and the USAID Yellow Book audit.
2) The statutory audit shall evaluate and determine internal control established for:
2.1) Procurement
The audit work shall cover the competitiveness, transparency and effectiveness of the procurement activities of the projects in order to ensure that the equipment and services purchased meet the requirement of the donors and include the following:
• As applicable, delegations of authorities, procurement thresholds, call for bids and proposals, evaluation of bids and proposals and approval/signature of contracts and purchase orders;
• Receiving and inspection procedures to determine the conformity of equipment with the agreed specifications and, when applicable, the use of independent experts to inspect the delivery of highly technical and expensive equipment;
• Evaluation of the procedures established to mitigate the risk of purchasing equipment that do not meet specifications or is later proven to be defective;
• Management and control over the variation orders. The audit work in the area of procurement shall also cover the use of consulting firms and the adequacy of procedures to obtain fully qualified and experienced personnel and assessment of their work before final payment is made.
2.2) Asset Management
The audit work shall cover equipment purchased for use of the projects. The procedures for receipt, storage, and disposal shall also be reviewed.
2.3) Cash Management
The audit work shall cover all cash funds held by the project and review procedures for safeguarding cash.
2.4) General Administration
The audit work shall cover travel activities, shipping services, office premises and lease management, office communications, and records maintenance.
3) The USAID Yellow Book audit shall include Schedule of Expenditures on Federal Awards (SEFA), report on internal controls, and report on compliance to terms and conditions.
4) Prior Audit Report Recommendation
The audit work shall include the review of the 2020 audit and determine if adequate corrective actions has been completed.
5) Compliance with Agreement Terms and Applicable Laws and Regulations
The audit work shall comply with ADS 591 maa and cover evaluation and determine on the Foundation compliance with terms and applicable laws and regulations.
DELIVERABLES
• An audit report providing opinion on the financial statement and the fund accountability statements attached to the financial report and notes to financial statement for the period mentioned in Thai (four hard copies and soft copy) and English (one hard copy and soft copy).
• A management letter in English which highlights observed weaknesses in the system of internal control, un-resolved audit recommendation from 2020 management letter, non- compliance with agreement terms and applicable laws and regulation and recommends approaches to address the identified issues.
• A verification report in English on assets.
TIMING AND PAYMENT
The work is expected to commence no later than February 7, 2022. The audit firm is expected to submit a draft report by March 7, 2022 and the final report no later than March 21, 2022.
The payment terms are 40% on the day commencing the audit, 40% after delivering the draft reports and management letter, and the remaining 20% after delivering the final reports, management letter, and the verified report of assets.
SUBMISSION
Interested audit firm must submit technical and financial proposals, which include and will be evaluated based on the following criteria:
1. Past performance. Please list up 3 recent projects including the summary, where your company provided the audit services for the USAID or similar projects funded by aid agencies.
2. Company profile and qualifications of the audit team members. Please provide the organization chart of the team members and where they fit with the organization chart of the company, and the CV of the lead auditor with his/her CPA Registration No.
3. Proposed schedule and a lumpsum cost including travel with detailed breakdown.
Proposals must be submitted to secretariat+audit@seaohun.org and copy to finance@seaohun.org by December 20, 2021. Should there be any inquiries about the TOR, please contact Mr. Thapat Maneerat, Senior Finance and Administrative Officer, at thapat@seaohun.org, and copy to Ms. Ratsuda Poolsuk, Operations Manager at ratsuda@seaohun.org.
Contact : secretariat+audit@seaohun.org
