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TERMS OF REFERENCE

2024 Financial Audit of SEAOHUN Foundation

INTRODUCTION

Background

The spillover of infectious agents from animals to humans has profoundly affected the health of people, animals, and the environment. To combat future pandemic threats, the Southeast Asia One Health University Network (SEAOHUN) was founded in 2011 with support from the U.S. Agency for International Development. Its mission is to cultivate a resilient and skilled One Health workforce capable of preventing, detecting, and responding to infectious disease threats through exceptional education, research, and training provided by its member universities.

Since its inception, SEAOHUN has expanded from 10 founding universities in Indonesia, Malaysia, Thailand, and Vietnam to over 112 institutions across eight countries, including Cambodia, Lao PDR, Myanmar, and the Philippines. Our member universities encompass a diverse range of disciplines that connect the health of humans, animals, and ecosystems.  SEAOHUN's regional programs foster collaboration among member countries, with a strong focus on enhancing One Health education and research. Initiatives include developing core and technical competencies in One Health, implementing competency-based education, and building research capacity to support evidence-based advocacy. Additionally, we promote One Health student clubs and various experiential learning activities.

Based in Chiang Mai, Thailand, the SEAOHUN Secretariat serves as the coordinating body for all country networks. It manages subawards, facilitates governance structure and its operations, conduct regional activities, and strengthens One Health University Networks through capacity-building initiatives. The Secretariat also represents the interests of country networks at global and regional forums, including the Global Health Security Agenda (GHSA) and the Southeast Asian Ministers of Education Organization (SEAMEO). Collaborations with organizations like Zoetis and Pfizer focus on tackling the rising threat of antimicrobial resistance (AMR), while partnerships with Chevron aim to enhance One Health education in the region.

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, 2024 to December 31, 2024. 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, 2024 to December 31, 2024. 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 2023 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 (two 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 2023 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 3, 2025. The audit firm is expected to submit a draft report by March 10, 2025 and the final report no later than March 25, 2025.

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-team@seaohun.org by DECEMBER 9, 2024. Should there be any inquiries about the TOR, please email to finance-team@seaohun.org.