TERM OF REFERENCE
For External Financial Audit
|Cost Center Title: Vietnam
|Location of Project: Vietnam Country Office – Hanoi
|Cost Center Code: 63
|Project Code: All UNR costs + project costs incurred in 2022 (except for WDF funding source in 2022)
|Funding Source Code: 9999
|Audit period: 1 January 2022 to 31 December 2022
|Estimated expenditure for final audit: US$ 751,000
This Terms of Reference (TOR) outlines relevant details for Orbis Vietnam to hire an external auditor to carry out the independent audit of Orbis Vietnam expenditures in 2022.
Orbis International is a non-aligned, non-profit, global development organization on a mission to transform lives through access to quality eye health. To achieve its mission, it builds the capabilities of its partners through education and training, eye care management systems development, technical and financial support, and research. Orbis International manages four global programs – a Flying Eye Hospital, Hospital Based Programs, Fellowships, and Cybersight – and has country programs in Asia, Africa, Latin America, and the Caribbean.
Orbis International has been working in Vietnam since 1996 to support the country in its efforts to prevent and treat avoidable blindness, a permanent office was established in Hanoi since 2003.
Orbis has helped to build Vietnam’s capacity to prevent and manage childhood blindness through setting up tertiary pediatric eye centers in provinces. Orbis has also been successful in developing the country’s capacity to manage retinopathy of prematurity – a major cause of blindness in children. The organization has played a leading role in advocating for eye-care policy changes and in conducting public education programs to promote the knowledge and best practices needed for effective eye-care prevention and treatment. We also emphasized the demonstration of models which can be replicated and maintained by the government, as well as provided support in increasing the scale of projects.
2. AUDIT PURPOSE & SCOPES
The purpose of the audit is to form an opinion on the financial reports of Country Office (CO) costs incurred in 2022 (including unrestricted and restricted funding sources) to express an opinion on management’s assertions that they comply with laws, regulations of Vietnam and that resources are managed in accordance with Orbis ’s financial rules, procedures and accounting standards.
The auditor will carry out the audit, following International Accounting Standards, best practices, Orbis policies and procedures.
Areas and scopes of audit included:
- Review compliance with Orbis standard cost norms, internal policies and local regulations.
- Review supporting documents and determine accuracy and completeness of supporting documents as per Orbis policy.
- Identify limitations in the system and internal control and provide recommendations for improvement.
a. Travel Management
- Review policies and procedures regarding expense management.
- Review management of travel, conference, and meeting expenses.
b. Procurement Management
- Review policies and procedures over procurements of office equipment and project equipment, including conflict of interest.
- Review sole sourcing practices regarding to regular office operating costs.
- Review documentation requesting procurement of goods or services.
- Review evidence of receipt of goods or services.
c. Contract Management
- Review contract review and approval procedures within each respective operation, as well as standard terms and conditions.
- Review contract monitoring and tracking procedures.
- Review contract closeout procedures.
d. Cash Handling and Management
- Review policies and procedures regarding cash handling.
- Review disbursement and receipting of cash advances.
- Review disbursement and receipting of per diem allowances.
e. Project Management
- Review documents related to project's activities.
- Review the financial statements submitted by the Partners and determine the accuracy and correctness of the reports.
2. AUDIT PERIOD
The auditor will conduct the examination of CO office cost and projects expenditure for the period from 1 January 2022 to 31 December 2022.
3. PERFORMING AUDIT ASSIGNMENT
Audit assignment should at least consist of the following:
- A pre-audit meeting;
- Audit planning and desk review of Project’s reports, transaction listing, ledgers;
- Sampling methodology and audit sample listing;
- Audit field work at Orbis Vietnam Country Office where original supporting documents are maintained and filed.
- Draft reports and wrap-up meeting with Orbis Vietnam
- Draft report shared to Orbis International for review and sign off
- Finalization of audit reports
4. AUDIT TIMELINE
The audit will start in early April 2023 and final audit reports need be submitted to Orbis by 30 April 2023.
5. EXPECTED OUTCOMES AND DELIVARABLES
Final audit reports including:
- Audited expenditure report of Orbis CO cost and project expenses in USD
- Audit findings and recommendations
- The draft audit report should be submitted by 20 April 2023 and a final signed audit report with certified statements by 30 April 2023 with a management letter (if any).
6. LOCATION AND SERVICES
The required service of external audit will be rendered at Orbis International, Vietnam Office as situated in Room 201-202, Building B3, Van Phuc Diplomatic Compound, #298 Kim Ma Str, Ba Dinh district, Hanoi, Vietnam.
7. AUDIT PROPOSAL SUBMISION
Applications/submission should be addressed to Ms. Bui Thi Van Anh- Senior Finance & Operations Manager at email@example.com and firstname.lastname@example.org or posted to Orbis International, Vietnam Country Office at Room 201-202, Building B3, Van Phuc Diplomatic Compound, #298 Kim Ma Str, Ba Dinh district, Hanoi, Vietnam.
The audit proposal, consisting of technical and financial proposal, need to be submitted to Orbis by 17 March 2023.