INSTRUCTION TO BIDDERS
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- Adela Megan Ray
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1 INSTRUCTION TO BIDDERS Dear Sir/Madam, World Wide Fund for Nature (WWF) is one of the leading International Organizations working on environment in the world. In Greater Mekong sub-region, WWF has its offices and field activities in Cambodia, Laos, Myanmar, Thailand and Vietnam under a programme named WWF-Greater Mekong (WWF- GM). We would like to invite you to provide your professional service in auditing a project managed by WWF-GM. You are kindly requested to send a proposal with quotation following required information and instruction below: I. INFORMATION FOR AUDITING Project Name Greater Mekong, Civil Society 2017 Primary Donor: The Swedish Agency for International Project Donor Development Cooperation, Sida Network Donor: WWF Sweden Primary Donor Funding Source Agreement Number: 9S Project Location Project Duration Vietnam, Cambodia, Laos, Thai Lan and Myanmar (one year) Total expenditure Myanmar SEK 227,988 Thailand SEK 341,982 Cambodia SEK 733,431 Laos SEK 1,287,635 Vietnam SEK 654,387 Regional SEK 1,154,577 Total SEK 4,400,000 1
2 Expected time for receiving audit proposal Expected time needed for the audit Friday, 8 December 2017 COB Late January or early February 2018 (included audit field work) First draft 12 th Feb 2018 Expected time to receive audit report Final draft: 27 th Feb 2018 Final report: No later than March 05, 2018 Total Audit for Greater Mekong, Civil Society 2017 in Vietnam, Laos, Cambodia, Thai Lan and Myanmar Project 1 time Independent Auditor s Report (audit certificate) Audit Memorandum Audit Deliverables The auditor shall also carry out an additional examine according to aggreed upon procedures ISRS 4400 and review the areas in accordance with the Terms of reference, Attachment 4, Article 2. (follow Attachment 4: Audit instruction) WWF-Cambodia: 21, Street 322 Boeng KengKang I, Supporting documents are available at Chamkarmorn, Phnom Penh, Cambodia; Tel: / Fax: WWF-Laos: P.O. Box House No.39, Unit 05, Saylom 2
3 WWF Vietnam and WWF Greatermekong: D13, International Thang Long, Cau Giay District, HaNoi, VietNam WWF Thailan: 92/2 Soi Paholyothin 5,Paholyothin Road, Samsen nai, Phyathai, Bangkok 10400, Thailand WWF Myanmar: 15/C Than Taman Rd, Yangon 11191, Myanmar (Burma) Language of the Proposal: The Proposals prepared by the bidders and all correspondence and documents relating to the Proposal exchanged by the bidders and WWF-GM shall be written in the English language. Any printed literature furnished by the bidders may be written in another language so long as accompanied by an English translation of its pertinent passages in which case, for purposes of interpretation of the Proposal, the English translation shall govern. Proposal Currencies: All prices shall be quoted in Vietnam dongs. Period of Validity of Proposals: Proposals shall remain valid for 60 days after the date of Proposal submission indicated in the table above. Proposal: The proposal to be submitted shall include but not limited to the below information: A - TECHNICAL PROPOSAL - The audit firm is familiar with International Auditing Standards (ISA 800/805), ISRS Experience in auditing ODA projects/public funds - Understanding of the audit requirements - Understanding the deliverable of the requirements - Approach and methodology to be used - Initiatives (if any) for improving audit implementation plan - Implementation plan (starting time and total time needed) - Human resources arrangement: Team leader should be qualified independent auditors. B - FINANCIAL PROPOSAL Financial proposal are prepared based on the technical proposal in accordance with the requirements and provisions in the request for proposal, including summary of cost and out of pocket expenses. Submission of Proposals The proposals shall be submitted in sealed envelope, containing the Technical Proposal(s) and the Financial Proposal(s). The outer envelope shall be clearly marked Proposal for Audit of the Greater Mekong, Civil 3
4 Society 2017 in Vietnam, Cambodia, Laos, Thai Lan and Myanmar - DO NOT OPEN BEFORE SUBMISSION DEADLINE. The sealed envelope shall be addressed to WWF-Greater Mekong at the following address: D13 Thang Long International Village Cau Giay District - Hanoi Alternatively, bidders are allowed to submit their proposal by . Bidders who intend to submit electronic proposals must follow the following submission instructions: - Bidders can submit a proposal by . The proposal shall be separated in two files: one for technical proposal and one for financial proposal. - The file shall be in the form of MS word or MS excel (MS Office 2007 at least) or PDF version 7. - Please send the electronic proposal to lien.caoquynh@wwfgreatermekong.org - Please be aware that bids or proposals ed to WWF-GM will be rejected if they are received after the deadline for bid submission. As an may take some time to arrive after it is sent, especially if it contains a lot of information, we advise all bidders to send submissions well before the deadline. - Maximum size for electronic submission: The maximum size per that WWF-GM can receive is 8MB. Bidders may need to split proposals into parts to fit this limit. Please note that the proposal must be arrive in the aforementioned mail box before the submission deadline Criteria for Selection: a) Evaluation of Technical Proposal: The evaluation panel will fully evaluate the Technical Proposals. The panel will determine which of the Technical Proposals pass the minimum agreed technical score specified below. After the evaluation of Technical Proposals has been completed, WWF-GM will notify those Consultants whose proposals did not pass the minimum technical score or were considered to be non-responsive to the TOR. b) Evaluation of Financial Proposal: The financial evaluation shall be based on the lowest price of those bidding firms which submitted responsive Technical Proposals. The formula for determining the financial scores is the following: Sf = 100 x Fm / F, in which Sf is the financial score, Fm is the lowest price and F the price of the proposal under consideration. c) Final evaluation and negotiations: The final ranking of the proposals will be based on the quality of technical proposals and lowest cost. The total score will be calculated as the weighted sum of the technical and financial scores, with the weights given to the technical and financial scores being: 70/30 where the technical proposal = 70 and the financial proposal = 30. With regard to contract negotiations WWF-GM reserves the right to invite the next-ranked firm to negotiate, if negotiations with the first-ranked firm do not result in a contract. 4
5 Bidders who pass the minimum score, but are unsuccessful based on the calculation of the technical and financial scores, will be notified after the contract with the winner has become effective. Technical Evaluation Criteria: Criteria Score Technical 100 The auditor must be a chartered or registered public accountant. 15 Experience in auditing SIDA funded project 15 Experience in auditing ODA projects/public funds 10 Understanding of the audit requirements 10 Understanding the deliverable of the requirements 10 Approach and Methodology to be used 10 Implementation plan (starting time and total time needed) 10 HR arrangement; Team leader and team member hold CPA or ACCA, CFA or MBA qualification experience with audit of ODA funded projects 15 Initiatives (if any) for improving audit implementation plan 5 Note: The acceptable threshold for technical proposals is set at a minimum score of 70 points out of 100 points. Technical proposals which do not reach this minimum score will not be considered for financial evaluation. C - TERMS OF REFERENCE I. Introduction: 1.The general information of the project: 5
6 Swedish International Development Cooperation Agency (Sida) has funded WWF Greater Mekong (WWF-GM) for a bridging year project 2017, titled SIDA GM Civil Society Project. The project aims to further support and strenghthen five ongoing WWF GM CSO project initiatives: 1. CarBi: Carbon & Biodiversity Project (Laos component of larger CarBi Project) 2. Sustainable Rattan Project (Laos, Cambodia and Vietnam) 3. Voluntary Partnership Agreement (VPA) and Forest Law Enforcement, Governance and Trade (FLEGT) Negotiation Capacity Project (Laos and Vietnam) 4. Eastern Plains Landscape (EPL) programme 5. Dawei Road Project (Thailand and Myanmar). 2. The objective of the programme in Greater Mekong: The key interventions of this project are structured around meeting two specific outcomes using resources and capabilities of on-going projects of WWF-GM that have successfully demonstrated results in civil society strengthening: (1) Develop the role of civil society to become key actors to influencing planning, decision-making, and good governance of natural resources; and (2) Support communities for improved rights and to manage natural resources whilst optimizing the benefits they derive from these resources in a sustainable way. The design of this Sida funding support spans five countries that include Laos, Vietnam, Myanmar, Thailand and Cambodia. 3. The Reporting: The reporting shall contain details regarding used audit methodology and the scope of the audit. The reporting shall contain an assurance that the audit was performed in accordance with international standards and by a qualified auditor. The reporting shall contain the responsible auditor s signature (not just the audit firm) and title. The auditor shall submit an audit memorandum, which shall contain the audit findings made during the audit process. It shall state which measures that have been taken as a result of previous audits and whether measures taken have been adequate to deal with reported shortcomings. The auditor shall make recommendations to address any weaknesses identified (Management letter). The recommendations should be presented in priority. The reporting shall not exceed 20 pages, be written in English and be presented to WWF Donor as an original document and one digital for onward transmission to WWF Sweden. II.GUIDELINE FOR SCOPE OF AUDIT: (Refer to Annex IV - WWF Sweden s Standard Terms of Reference for Annual Audit of Project/Programme Support.) WWF Greater Mekong, hereafter cooperation partner, wishes to engage the services of an audit firm for the purpose of auditing the project Greater Mekong, Civil Society 2017, as stipulated in the agreement between cooperation partner and WWF Sweden. The audit shall be carried out in accordance with international audit standards issued by IAASB. The audit shall be carried out by an external, independent and qualified auditor. 6
7 1. Objectives and scope of the audit The objective is to audit the financial report for the period as submitted to WWF Sweden and to express an audit opinion according to ISA 800/805 on whether the financial report of Greater Mekong, Civil Society 2017 is in accordance with WWF Sweden s instruction for financial reporting as stipulated in the agreement including appendix between WWF and cooperation partner. 2. Additional assignment; according to agreed upon procedures ISRS 4400, review the following areas in accordance with the Terms of reference below Follow up whether salary costs debited to the project/programme are recorded throughout the duration of the year in a systemized way and examine whether the salary costs can be verified by sufficient supporting documentation. Examine whether the financial report includes a comparison, for every budget item, between the actual costs/expenditures of activities and the budgeted costs/expenditures as approved by WWF Sweden for the period. Based on materiality and risk the auditor shall examine whether there is supporting documentation related to incurred costs Examine whether foreign exchange gains and losses are disclosed in accordance with what is stipulated in the agreement including appendixes. Cooperation partner s compliance with the applicable tax legislation in regard to taxes (e.g.paye) and social security fees. Follow up whether cooperation partner has adhered to the procurement guidelines annexed to the agreement. If cooperation partner applies modified cash basis as accounting principle, the auditor shall motivate whether the applied accounting principle is acceptable for this type of financial report. Follow up of funds that are channeled to implementing partners The sample test s size of the review of agreements and audit reporting from implementing partners must be specified. Does cooperation partner have signed agreements with its partner organisations? Are the audit requirements in agreements with partner organisations in accordance with the audit requirements as stipulated in cooperation partner s agreement with WWF Sweden? Review whether there is an unbroken chain of audited financial reports according to the requirements as stipulated in the agreement between cooperation partner and WWF Sweden, for funds disbursed the previous year. The review shall include whether cooperation partner makes documented assessments of the audited financial reports submitted to cooperation partner and whether these reports are followed-up by cooperation partner. The review shall include verification of contributions equivalent of a 7
8 minimum of 60 % of the total of disbursed funds as well as 60 % of the number of contributions. The review shall also include any observations from auditors that WWF Sweden should be informed about. Are the same requirements for reporting exchange rate gains/exchange rate losses as stipulated in the agreement between cooperation partner and WWF Sweden, included in the agreements between cooperation partner and its implementing partners? 3. The reporting The scope of the audit shall be stated in the report and the methodology used shall be presented. The reporting shall be signed by the responsible auditor (not just the audit firm) and title. The reporting from the auditor shall include an independent auditor s report in accordance with the format in standard ISA 800/805 and the auditor s opinion shall be clearly stated, as well as a Management letter with audit findings and weaknesses identified during the audit process. The auditor shall regardless of materiality, quantify the amount for costs lacking sufficient supporting documentation. The auditor shall make recommendations to address the weaknesses identified and the recommendations shall be presented in priority order. If the auditor assesses that no findings or weaknesses have been identified during the audit that would result in a Management Letter, an explanation of this assessment must be disclosed in the audit reporting. Measures taken by the organisation to address weaknesses identified in previous audits shall also be presented in the Management Letter. The additional assignment according to agreed upon procedures ISRS 4400 under paragraph III, shall be reported separately in a Report of factual findings. If the auditor conducts an additional assignment according to ISRS 4400 and assesses that the observations presented in the Report of factual findings, include the information that would have been included in a Management Letter, a Management Letter does not need to be developed. In such a case, the Report of factual findings shall include an explanation of why a Management Letter has not been developed. 8
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