Auditor for financial audit of Oxfam in Vietnam

1. Objectives

The objectives of the audit are to enable the Auditor to express an opinion on whether the financial statements, in all material respects, presents a fairly view of the actual expenditure incurred and the revenue recognized for the Country Office for the period from 01 April 2021 to 31 March 2022.

2. Scope

The audit will be carried out in accordance with ISA[1] auditing standards. The audit period is 01 April 2021 to 31 March 2022.

Responsibilities of the parties to the engagement are reflected in Annex A.

3. Audit Procedures

Compliant to the ISA2002, the Auditor should exercise due professional care and judgment and determine the nature, timing and extent of audit procedures to fit the objectives, scope and context of the audit.

In conducting the audit, the auditor should:

  • Express an opinion on the financial statements produced;
  • Verify the presentation of financial statements in compliance with accepted accounting and reporting principles and with the Manual Supporting and Accounting processes of the Country Office and statuary requirements.
  • Verify the Country Office is compliant with local laws and regulation including Country Office registration;
  • Analyze and evaluate the financial management, risk management and internal controls are in place and effective.
  • Certify that the funds were utilized for their intended purposes according to the terms in the annual budget, specific project budgets, annual work plans, etc;

Special attention should be paid to:

  • Budgetary: The budgetary procedures (establishing forecasts by activity/task or Output, conformity with the Annual Work plan forecasts, budgetary approvals and work plans by the responsible agent, budgetary amendments during the audit period, etc.);
  • Bank Accounts: The management procedures of the funds (bank account, advances supported by forecasts and in conformity with Oxfam Novib’s policy, petty cash safekeeping, bank reconciliation, control of receipts, etc.);
  • Verify the status of CO bank accounts signatories, including reviewing the list of designated signatories, appointment process and authorizations of the said signatories by the BoDs.”
  • HR/Personnel: The financial aspects of personnel management (employee contracts, remuneration of salaries, allowances and other benefits, deductions at source according to regulations currently in force, remittances made to the proper authorities including Income Tax including expat tax, annual personnel evaluations/appraisals, etc.) (NOTE: Verify that allowances have been paid in conformity to regulations and/or Oxfam Novib policy);
  • HR/Consultant: The procedures for the hiring and payment of consultants (approval of selection and contracts by the proper authorities, contracts properly written with appropriate financial control over payments of fees and expenses including appropriate certification that the work was performed satisfactorily before a payment is made);
  • Supply & Logistics: The financial aspects of procurement (purchase orders, appropriate certification that the goods have been delivered in satisfactory condition before a payment is made);
  • Supply & Logistics: The procedures on the control of expenses (complete documentation, certification that the goods have been received or services rendered, issuance of check in the name of the supplier stipulated in the contracts/purchase orders, proper signatories, bank accounts, etc.);
  • The procedures on inventory control of non-renewable stock (replacement parts, etc.) and assets (catalogued/inventoried on a regular basis, identification by serial number or other means, condition of the inventory, location, etc.);
  • The policy for, and control of, the use of vehicles and fuel as implemented by the Country office;
  • Receivables: The mechanism for the recovery of costs (method of invoicing, control of invoices issued but unpaid), control of receipts generated by these revenues;
  • The procedure and recovery mechanism for staff advances;
  • Reporting: The reporting mechanisms (financial and quarterly progress reports, explanation of variances, etc.).

4. Deliverables

The auditor is responsible for conducting the audit procedures as specified in the ToR.

In addition to the audit report, the auditor will also provide a management letter summarizing the observations on the accountability and internal controls. These would include the following:

· Comments and observations on the accounting records, systems and controls that were examined during the course of audit.

· Specific deficiencies and areas of weakness in systems and controls and recommendation for improvement.

Any other matter that the auditor considers significant to report to the management.

Audit findings should be categorized by risk severity/impact: High, Medium, or Low.

The observations in the “Management letter” must be accompanied by the implications, suggested recommendations from the auditors and the management comments on the observations/ recommendations.

5. Role of the auditor

  • Meet with the country office Associate /Country Director (A/CD) to gain an appreciation of any specific concerns or risks with the financial management;
  • Perform the audit at the premises of the Country Offices and visit field offices when/where organisation security allowed.
  • Get management’s feedback/response to the draft management letter;
  • At the end of the audit, debrief the D/CD at the Country Office.

6. Timeframe

The annual audit exercise can start as soon as possible after an external and independent chartered accountant is selected through the appropriate procurement procedure as mentioned in the Supply and Logistics Manual.

Please send your proposal to san.nguyenngoc@oxfam.org by 17 November 2022.