Call for Auditor of SIDA Funded Project Support At Plan International

Plan International Sweden’s

Terms of Reference for Annual Audit of Sida Funded Project Support

Introduction

Brief presentation of Plan International Asia and Pacific Regional Hub:

Founded in 1937, Plan International is a development and humanitarian organisation that advances children’s rights and equality for girls. We strive for a just world, working together with children, young people, our supporters and partners.

Plan International is a global federation that is active in over 70 countries around the world. The global organisation comprises 21 fundraising offices, which are separate legal entities known as National Organisations, and Plan International, Inc, which runs our field operations, only through branch offices. Plan International’s headquarters in the UK is run through Plan Limited, Plan International Inc’s subsidiary.

Engagement of the audit service

Plan International Asia and Pacific Regional Hub wishes to engage the services of an audit firm for the purpose of auditing the SIDA CIVSAM FY20-24: Core Support to CRC Asia Strategy 2019-2024, ARO100112 as stipulated in the agreement between Plan International Asia and Pacific Regional Hub and Plan International Sweden. Plan International Asia and Pacific Regional Hub has for the audit period 1st January 2021 – 31st December 2021 obtained a grant of 2,920,491 SEK from Plan International Sweden/Sida.

The audit shall be carried out by an external, independent and qualified auditor. The auditor or audit firm shall be registered and have a license with the Federation of Accounting Profession (FAP). Plan International Sweden shall approve the selection of auditor before the audit begins and a copy of the license shall be shared with Plan International Sweden. When contracting an audit firm Plan International Asia and Pacific Regional Hub shall fill in a format that shall be shared with SNO, see Appendix 1.

The signing auditor cannot be contracted for the assignment, of auditing Sida funded projects, for a longer period than seven years in a row. The same audit firm can however be contracted for longer than seven years. If Plan International Asia and Pacific Regional Hub wishes to engage the same signing auditor again, another audit firm needs to have had the audit assignment for at least a four year period. It is possible to procure an audit firm for the entire project period. The same auditor may conduct the audit in all subsequent links, but each link may also use different auditors.

Brief presentation of Child Rights Coalition Asia (CRC Asia) Inc.:

Plan International Asia and Pacific Regional Hub have engaged in a corporation for this project with the subsequent partner organisation Child Rights Coalition Asia (CRC Asia) Inc. and has a signed partner agreement 17th December 2019 amounting to 8,056,571 SEK/local currency.

Objectives and scope of the audit

The objective is to audit the financial report and to express an audit opinion according to ISA

800/805 on whether the financial report is in accordance with the relevant terms and Plan International Sweden’s instruction for financial reporting as stipulated in the agreement^[1] between Plan International Sweden and Plan International Asia and Pacific Regional Hub. The audit shall be carried out in accordance with the international audit standards issued by IAASB^[2].

In addition to the audit of the financial statements, the assignment also includes an engagement to perform agreed-upon procedures regarding financial information in accordance with International Standard on Related Services, ISRS^[3].

The following areas should be included:

• 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.^[4]

• 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 Plan International Sweden for the period.

• Based on materiality and risk, the auditor shall examine whether there is sufficient documentation supporting all reported costs. Regardless of materiality, quantify the amount for costs lacking sufficient supporting documentation.

• Examine whether foreign exchange rate losses / exchange rate gains are reported as a separate item in the financial report and are reported in accordance with what is stated in the agreement, including annexes and good accounting practice.

• Check whether Plan International Asia and Pacific Regional Hub complies with the applicable tax legislation in regard to taxes and social security fees.

• Follow up whether Plan International Asia and Pacific Regional Hub has adhered to the procurement guidelines annexed to the agreement.

• Review if closing balance for previous period is the same as starting balance for the current period.

• If Plan International Asia and Pacific Regional Hub applies modified cash basis as accounting principle, the auditor shall describe possible effects on accrual within the project.

• Verify the closing balance at the end of the financial year against the accounting and its documentation. For the last year of implementation, verify the outgoing balance to be repaid to Plan International Sweden.

• Verify that Plan International Asia and Pacific Regional Hub has signed agreements with its subsequent partner organisations.

• Verify that the audit requirements in the agreements with subsequent partner organisations are in accordance with the audit requirements as stipulated in Plan International Asia and Pacific Regional Hub agreement with Plan International Sweden.

Plan International Sweden wants to emphasise the importance that the Auditor, as a part of the assignment, reviews whether the subsequent partner organisations follow the requirements from Sida, see Appendix 6 “Plan International Sweden’s Audit instructions for Sida funded projects”.

The reporting shall be signed by the responsible auditor (not just the audit firm) and title.

The reports are to be written in English in one copy and submitted digitally to Plan International Sweden no later than 15^th June 2022. All reports may be submitted in English. Submission of draft reports to Plan International Sweden for review is due by 1^st June 2022.

The audit shall be reported according to the following two formats in Appendix 2-5 of this document.