ThaiNGO

REQUEST FOR PROPOSAL

Financial Audit for ASEAN-Australia Political Security Partnership (APSP) 

The Asia Foundation (TAF) is a non-profit international development organization committed to promoting lives across a dynamic and developing Asia. Informed by six decades of experience and deep local expertise, our work across the region addresses five overarching goals – strengthen governance, empower women, expand economic opportunity, increase environmental resilience and promote regional cooperation.

ASEAN-Australia Political Security Partnership (APSP) is an AUD 10.5 million, six-year (2019-2025) investment of the Australian Government aimed at enhancing political and security cooperation between ASEAN and Australia. The program encompasses the outcomes and activities that contribute to strengthening regional stability, addressing shared challenges, and promoting cooperation among ASEAN Member States and between ASEAN and Australia in the political security landscape. Under overall management by Australia’s Department of Foreign Affairs and Trade (DFAT), APSP has been implemented by TAF since 1 May 2019 and is currently ongoing until 30 April 2025.

TAF Thailand Office is seeking a qualified audit firm to provide and conduct an independent audit of the Project Financial Statements and present a report of Statement of Expenditures under APSP. The audit will cover the period of 1 May 2019 to 30 June 2024.

Interested applicants must read the Request for Proposal (RFP) carefully to prepare the necessary documents. This RFP contains three parts:

• Part 1: Service Procured
• Part 2: Qualifications and Application Process
• Part 3: Evaluation Method and Criteria

PART 1: SERVICE PROCURE

I. Purpose of the Audit

The objective of the audit of the APSP’s Financial Statement is to enable the auditor to express an opinion whether (i) the Program’s Financial Statements (including notes thereto and supplementary statements) present fairly, in all material respects, the Program’s financial position as of 30 April 2024 in conformity with the cash basis of accounting and financial reporting standards of Thailand; (ii) the Program funds provided by DFAT were used for the intended purposes; and (iii) the Program has complied with the covenants stated in the grant agreement with DFAT.

In addition, the opinion should also state that the Program’s Financial Statements are based on proper accounts and records. In case of any qualifications or limitations on the audit, a letter to TAF Thailand, or a report providing an outline of the reasons for the qualifications or limitations and the remedial actions recommended should accompany the audit financial statements.

II. Audit Scope

The audit will include all transactions related to DFAT funding of the Program for the audit period from 1 May 2019 to 30 June 2024. This includes all payments or transfers to implementing partners as sub-grantees (paid through cost reimbursement contracts or fixed price grants); as well as all other transactions related to the direct program costs.

The auditor is required to deliver an audit report in the English language, comprising:

1. Auditor’s opinion on the financial statements of APSP
2. Auditor’s opinion on compliance with the Grant Agreement with DFAT
3. Audited financial statements (Cash Basis of Accounting):
   • Statement of Cash Receipts and Payments
   • Statement of Comparison of Budget and Actual Amounts
   • Notes to financial statements
4. A management letter providing the auditor’s observations and findings on accounting records, systems, and internal controls that were examined during the audit.

III. Reporting Timetable

The proposed start date of the audit should not be earlier than 24 June 2024.

A draft copy of the audited financial statements and draft management letter together with expressing an audit opinion on the “Financial Report” in English language will be submitted to TAF no later than two weeks after the completion of fieldwork.

A draft audit report shall be available for review on or before 9 August 2024.

Three original copies of the final audit report shall be delivered to TAF Thailand by 31 August 2024.

IV. Auditing Standards

The auditor will carry out the audit in accordance with the International Accepted Accounting, Financial Reporting and Standards of Auditing or applicable Thai Auditing Standards.

V. Auditor’s Responsibility

In the conduct of the audit, the auditor is expected to:

1. Plan and perform the audit to reduce risk to an acceptably low level, including risks of material misstatements in the financial statements whether due to fraud or error.
2. Design and perform audit procedures and evaluate and report the results thereof including any noncompliance with laws and regulations.
3. Communicate matters of governance arising from the audit of financial statements.
4. Carry out tests to confirm compliance with the Grant Agreement with DFAT, such as:
   • Program funds have been used in accordance with the conditions of the Grant Agreement with due attention to economy and efficiency, and only for the purposes for which the financing was provided.
   • Goods, works and services financed have been procured according to TAF’s policies and procedures, and project expenditures have been incurred in line with the Grant Agreement.
   • Assets and inventories procured from grant funds exist and there is verifiable ownership in accordance with the Grant Agreement.
   • All necessary supporting documents, records and accounts have been maintained in respect of all project activities.
   • Compliance with TAF’s Fraud control strategy and policies including Fraud prevention, reporting and investigation under the Grant Agreement.
5. Review the activities of the Program’s designated account including deposits received, payments made, interest earned, multiple funding sources allocation, exchange rates used, and reconciliation of period-end balances.
6. Review all applicable reports submitted to DFAT and assess the methods used to compile the reports, ascertain that the information given in the reports accurately reflects the underlying records, documents, and books of accounts, and verify that the information in the reports reconciles with the annual financial statements.

VI. Other Matters

The auditor is entitled to unlimited access to all legal documents, correspondences, program preparation and supervision reports, reports of reviews and investigations, financial management assessment reports and any other information and explanations associated with the Program and considered necessary to facilitate the audit. The auditor may also obtain written confirmation of amounts disbursed by the Program.

The auditor is encouraged to meet with TAF Thailand and DFAT to discuss audit-related matters including inputs to the audit plan. If requested, TAF Thailand will also provide necessary information.

At the conclusion of the audit, the auditor will hold a closing meeting (exit conference) with TAF Thailand (including the Finance Department) and DFAT to obtain comments on the accuracy and completeness of facts and conclusions.

The exit conference will be documented, and it could be included as part of the audit report where appropriate.

VII. Deliverables

*Delivery date is tentative and is adjustable as agreed by TAF and the awarded consultancy firm.

PART 2: QUALIFICATIONS AND APPLICATION PROCESS

Qualifications:

• A legal entity in Thailand with a business license granted by the appropriate authority.
• A member of the Federation of Accounting Professions of Thailand (TFAC)
• Have adequate relevant professional and educational qualifications, or able to provide audit staff with qualifications, experience and competence.
• Technically competent and able to conduct audits in line with auditing standards.
• Objective and independent of the Program, its staff and activities and from all aspects of management or financial interests of TAF Thailand and DFAT.
• Possess a proven track record in financial audits of public sector projects, international development projects, or audits of similar nature, type, scope, complexity or donor-funded projects.
• Experience in auditing DFAT-funded development projects is an advantage.

Limitations:

To be considered a qualified consultancy firm, applicants are required to adhere to the following criteria:

• Company registration shall not be from Prohibited Countries.
• All deliverables/outputs produced under this assignment will be subject to Marking and Branding Requirements as specified by TAF.

How to Apply:

• Prior to the proposal due date, consultancy firms may submit questions or request further information concerning this RFP to TAF at suchada.sakulteera@asiafoundation.org. In the email subject title, please write “Inquiry on RFP for Audit of APSP”.
• Qualified consultancy firms must submit proposals (including both technical and financial proposals) in electronic format only to suchada.sakulteera@asiafoundation.org by 21 June 2024. In the email subject title, please write “Submission of RFP for Audit of APSP.”

Proposals for submission (required):

1. Technical proposal consisting of the following:

• One page providing an organization chart and indicating key personnel and staff roles and any subcontract (if applicable)
• A Gantt chart showing the timeline of proposed tasks and deliverables
• One page describing past experiences with similar assignments
• Proof of experience in preferred qualifications
• CVs of staff proposed to work on the project, including any subcontract (if applicable)
• Company/organization profile

2. Financial proposal, including the following:

• Total proposed price
• Breakdown of cost

3. Additional documents to be included along with the submitted proposals, where applicable:

• Company/organization registration*
• List of shareholders*
• VAT certificate*
• Proof of good financial standing (in the form of company annual reports or similar documentation):
• Bank statements for the last three years (required).
• Balance sheets for the last three years (optional).

* Required for companies registered in Thailand. For international companies, similar documents are acceptable.

PART 3: EVALUATION METHOD AND CRITERIA

Award of the contract will be made to the qualified consultancy firm whose offer has been evaluated and determined as responsive/compliant/acceptable and represented the best value to TAF.

Issuance of this RFP does not constitute an award commitment, nor does it commit TAF or DFAT or any of its funding partners to pay for costs incurred in the preparation and submission of applications. Further, TAF reserves the right to reject any or all applications received. Applications are submitted at the risk of the Applicant. All preparation and submission costs are at the Applicant’s expense.

Award of the contract resulting from this RFP will be based upon the most responsive organization/ company whose offer will be the most advantageous for TAF as specified in this RFP. TAF will issue a Service Agreement/Contract following its internal policies and procedures and applicable donor regulations. Payments will be made as per the agreed schedule which will be negotiated and finalized before signing the agreement/contract.

TAF reserves the right to:

1. Reject any or all offers and discontinue this RFP process without obligation or liability to any potential bidder.
2. Accept other than the lowest priced offer.
3. Conduct discussions with the applicant for the purpose of obtaining “best and final offers.” To obtain best and final offers from bidders, TAF may do one or more of the following: Enter pre-selection negotiations, schedule oral presentations, and/or request revised proposals.