: Oxfam
: Nonprofits / องค์กรไม่แสวงหาผลกำไร
: 771
: 18 July 2023
31 July 2023
Oxfam GB wishes to engage the services of an audit firm for the purpose of auditing “the Gender Transformative & Responsible Agribusiness Investments in South East Asia - phase 2” (GRAISEA 2), as stipulated in the agreement between Oxfam GB and SIDA. The audit shall be carried out in accordance with international audit standards issued by IAASB
Background of programme
The Gender Transformative and Responsible Agribusiness Investment in South East Asia (GRAISEA) programme is a joint regional programme among Oxfam Great Britain, Oxfam Novib, Oxfam Sweden, and Oxfam America in South East Asia funded by the Embassy of Sweden in Bangkok and private sector companies involved in the relevant value chains. The project period is 1 Aug 2018 – 31 Jul 2023 (5 years).
Swedish International Development Cooperation Agency (Sida) is a government organization under the Swedish Foreign Ministry. Sida’s headquarters is based in Stockholm with regional and country offices in countries where Oxfam has ongoing activities. Since, August 2018 Sida has funded the GRAISEA 2 programme
Working in Cambodia, Indonesia, Pakistan, the Philippines, and Vietnam, GRAISEA utilises various partner models at multiple levels to tackle the root causes of poverty and support system-wide change. Currently in its second phase, GRAISEA supports the development of agricultural value chains that provide opportunities for women's economic empowerment, integrate human rights, and promote improved resilience to climate change.
Objectives and scope of the audit
The objective is to audit the Financial Report for the period 1st August 2022 to 31st July 2023 and to express an audit opinion according to ISA, applying ISA 800/ISA 805, on whether the financial report of GRAISEA 2 is in accordance with Oxfam GB´s accounting records and Sida’s requirements for financial reporting as stipulated in the agreement including appendices between Sida and Oxfam GB (Agreement).
The auditor will carry out annual financial audit and the additional assignment according to the agreed upon procedure (ISRS 4400) for Oxfam GB and GRAISEA 2’s implementing partners as follows.
The reporting shall be presented for each implementing partner. In total, 10 reports including a consolidated audit report for PMU will be produced. The consolidated report will present the audit review of PMU and substantial observations from implementing partner’s audit reports including Pakistan audit report which is not part of the 10 reports. Pakistan audit report has been performed by a local audit firm and will be part of consolidated audit report.
Additional assignment
According to agreed procedure ISRS 4400, review the following areas in accordance with the Terms of Reference below. Mandatory procedures that must be included:
Observe whether the financial report is structured in a way that allows for direct comparison with the latest approved budget
Choose a sample of three individuals for three different months and:
4. a) Inspect and confirm that the unspent fund balance (according to the financial report) at the end of the financial year is in line with information provided in the accounting system and/or bank account.
b) Applicable the final year: Inspect and confirm the unspent fund balance (including exchange gains) in the financial report and confirm the amount that shall be repaid to Sida.
Follow up of funds that are channeled to implementing partners
Mandatory assignments that must be included if Oxfam GB forward funds to implementing partners (IP’s) (referred to as “Third Parties” in the agreement):
Choose a sample of a minimum of 40 % of the total of disbursed funds as well as 40 % of the number of IP’s or a maximum of 10 IP’s.
2.1 Inspect and confirm whether Oxfam GB has signed agreements with the selected IP’s.
2.2 Inspect and confirm whether Oxfam GB, in all agreements entered with IP’s, included the requirement to carry out annual audits. The requirement shall specify that these audits shall be carried out with application of ISA (reporting according to ISA 800/805) and a separate assignment according to ISRS 4400 should be included for project/programme support. If agreements regarding core support are entered into with IP’s, the audit shall be conducted in accordance with ISA 700 or National standards on auditing.
2.3 Inquire and inspect whether Oxfam GB has received financial reports and reporting from auditors from all IP’s included in the selected sample:
a) Inquire and inspect whether Oxfam GB has verified if reports from IP’s are in line with the requirements in the Agreement.
b) Inquire and inspect whether Oxfam GB has documented its assessment of the submitted financial reports and reporting from auditors including management responses and action plans from selected IP’s.
c) Inquire and inspect whether Oxfam GB has documented its follow-up actions based on the information provided in the financial reports and the reporting from the auditor of the selected IP’s.
d) Inquire and inspect whether Oxfam GB has reported substantial observations from selected IP’s audit reports in its communication with Sida. List observations from IP’s audit reports which have been part of this sample.
III. The reporting
The reporting shall be signed by the responsible auditor (not just the audit firm and shall include the title of the responsible auditor.
Reporting from the ISA assignment
The reporting from the auditor shall include an independent auditor’s report in accordance with the format in standard ISA 800/805 and the auditor’s opinion shall be clearly stated. The financial report that has been the subject of the audit shall be attached to the audit report. The scope of the audit shall be stated in the report and the methodology used shall be presented.
The reporting shall also include a Management letter that discloses all audit findings, as well as weaknesses identified during the audit process. The auditor shall make recommendations to address the identified findings and weaknesses. The audit recommendations and the management response (including action plan) shall be presented in priority order and with a risk classification and provide a copy in excel.
Measures taken by Oxfam GB to address weaknesses identified in previous audits shall also be presented in the Management Letter. If the previous audit did not have any findings or weaknesses to be followed-up on, a clarification of this must be disclosed in the audit reporting.
If the auditor assesses that no findings or weaknesses have been identified during the audit that would result in a Management Letter, an explanation of this assessment must be disclosed in the audit reporting.
Reporting from the ISRS 4400 assignment
The additional assignment according to agree upon procedures ISRS 4400 under section II, shall be reported separately in an “Agreed-upon procedures report”. Performed procedures should be described and the findings should be reported in accordance with the requirements in the International Standard on Related Services 4400.
When applicable, the sample size shall be stated in the report.
IV. Timelines - tentative
|
Progress |
Date |
|
Transaction listing supplied to the appointed auditor |
4 September |
|
Selection of sample and advised to Oxfam GB |
8 September |
|
Appointed auditor to review documentation |
18 September |
|
Sharing of findings and recommendations to Oxfam GB |
9 October |
|
Submission of a draft audit report and management letter to Oxfam GB to respond/for comment and follow-up |
16 October |
|
Oxfam response on the management letter and feedback on the reports/Finalise audit report |
30 October |
|
Sharing the audit reports of IPs to the appointed auditor |
6 November |
|
Final reports, final management response, and the substantial observation report to be sent to Oxfam GB |
20 November |
