Procurement notices

Microfinance and Community Development Institute (MACDI) is seeking A National firm to external audit for project ID 30142 “To promote inclusive education Children with Disabilities (CWD) in 3 provinces in Vietnam with the participation of the Inclusive Education Support Group (IESG) ” as described in this TOR.

TERMS OF REFERENCE FOR EXTERNAL AUDIT

The project: “To promote Civil Society Organizations (CSOs) to participate in promoting transparency and accountability (TAA) in implementing inclusive education (IE) policies for Children with Disabilities (CWD) in Vietnam (Project ID 30142).

1. Introduction:

Microfinance and Community Development Institute (MACDI) is a local NGO established in 2007 in the fields of sustainable livelihood, education, health, gender, environment, and climate change.

The project ID 30142 is funded by Global Partnership for Education (GPE) through Oxfam Denmark and is approved by VUSTA.

MACDI provides management and technical expertise to the inclusive education project for children with disabilities. MACDI has been working with national, provincial and local partners, including the education department, CSOs and parents of children with disabilities to carry out the project as approved.

To ensure transparency and accountability, MACDI requires the services of external auditors to review the project’s financial management and operational effectiveness ò the Project. Competent auditors are invited to submit auditing proposal (technical, financial and schedule) for auditing the project activities implemented by the project team at MACDI in 2024.

2. Objectives of the audit

The objectives of the audit are:

Examination of the financial regularity, through the control and evaluation of the exactness, exhaustiveness and fairness of the various accounting transactions, either in full or by sampling, according to need and risk evaluation (before and during the course of the audit);
Examination of the conformity with project objectives and observance of the contract conditions, through the control and evaluation of transactions, expenditures and receipts compared with the basic project documents (project description, programs of activities, contracts, budgets, etc.);
Examination of the economical conduct of business and effective use of financial resources, through the control and evaluation of
minimization of the cost of the resources utilized for the activities, always ensuring an appropriate quality;
comparison of expenditures with corresponding budget positions and the control and evaluation of any explanations for divergences;
Brief analysis of the deviations between budgeted and effective expenses. For all budget deviations of more than 30%, explanations must be provided.
Examination of the appropriateness, the relevance and the functioning of the Internal Control System, through the control and evaluation of the:
internal organization (structures, functions, tasks, authority, responsibilities, methods, procedures, etc.);
Existence, respect and application of laws, regulations and instructions;
Protection of resources and assets;
Prevention of errors and fraud;
Quality and viability of the information system and the reporting.

3. Scope of the audit

The external audit should include the following auditing and control measures:

Verifying accounting records for correctness and completeness.
Verifying the financial report in which all project-related revenues and expenditure must be shown and for which it must be confirmed that receipts are provided for all revenues and expenditure.
Verifying how the project funds provided have been managed.
Verifying to what extent the funds have been used appropriately for the purpose of carrying out the planned project objectives and activities.
Verifying the cost-effectiveness of expenditure regarding financial resources (to be used economically and as effectively as possible).
Verifying the personnel costs and social security contributions to ensure that they are in line with local standards, legal in the respective project country and, above all, that they comply with contracts and that the contributions required by law are being withheld.
Verifying that the cost plan is being adhered to by means of a comparison of objectives and effects (based on the most recent valid budget).
Verifying the existence and respect of purchasing procedures
Verifying the economic use of project equipment.
Verifying the procured inventory, where it is being held and whether it has been/is being used appropriately for the purpose of carrying out the planned project objectives and activities.
Verifying and confirming that project-relevant documentation is complete and correct.

4. Documents of reference

The following documents are considered basic references for the execution of the audit:

Legislation: National legislation, particularly as concerns the field of finance and the control of accounts.
Project documents:

Project agreement including Annexes
Any other documents concerning the project;
The project approval documents
All bookkeeping and corresponding verifications, narrative and financial reports, MEL reports, Compliance and Audit reports and other documents of significance are safely kept.

Accounting:

Accounting documents subject to the audit.
The project activity reports.
Financial Reports for the project period.
Transaction lists and corresponding expenditure receipts.
Bank statements.
Any other information requested by the Auditor.

5. Duration and timeline

The auditor shall plan its program to ensure that an audit of high standards is accomplished in an economic and efficient manner and within the stipulated time.

The audit work shall be completed within two weeks from the date of commencement of the audit.

Proposed time for the audit: May 2025 for auditing the project activities implement from 1st January 2024 to 31/12/2024.

6. Place of audit

The audit must be carried out within the project environment (MACDI’s office and local sites if necessary).

7. Audit report

The report of the external audit must include all information as required in the Guide for an external, independent audit within the scope of the project donor (Oxfam Denmark)

8. Deliverables

The Auditors on completion of the audit work will submit 03 sets of original copies in English and Vietnamese of the Audit Report appended to the Financial Statements and along with the Management letter in accordance with the scope of work described above.

9. Key qualifications and competencies of the auditor

An independent and registered auditor, without ties to the project or MACDI, will conduct the audit.
At least 5 years of experience in auditing development projects.
Expertise and strong knowledge in relevant international and Vietnamese laws on tax, accounting and finance.

10. How to apply

MACDI is inviting qualified audit companies to submit the audit proposal for the project. MACDI will begin the recruitment process when receiving at least three applicant profiles. Only shortlisted candidates will be contacted.

The audit proposal should include the valid certificate of the company’s registration, the technical proposal, and financial proposal.

Interested companies are requested to submit the audit proposal by email: ketoanco2.macdi@gmail.com

The deadline for application is 17:00 on 05^th May 2025

To know more about MACDI’s vacancies, please contact Ms. Pham Huong at email: projectmacdi@gmail.com, and copy to the email: ketoanco2.macdi@gmail.com