Audit of Financial Statement Report 2023

TERMS OF REFERENCE (TOR)
Audit of Financial Statement Report 2023
Anh Chi Em program

ABOUT ANH CHI EM PROGRAM (ACE)

Overview about ACE

ACE is a microfinance program created by a French non-governmental organization - Entrepreneurs du Monde (EdM) in 2007 to operate microfinance activities in Dien Bien province based on the following legal basis:

1. Operational Registration issued by Department of Foreign Affairs belonging to Ministry of Foreign Affairs
2. Microfinance Program Registration issued by State bank of Vietnam
3. MOU with the People’s Committee of Dien Bien Province.

ACE’s capacity building services and pro-poor financial services have been designed and intrinsically combined to promote a social and sustainable approach of microfinance adapted to the needs of the most vulnerable, mainly Black Thai women living of farming activities.

ACE vision

A green world, a community with happiness, sustainable development and equal opportunities.

ACE mission

To empower the poor and vulnerable people in remote areas through the provision of responsible financial and capacity building services in a sustainable way.

Main activities :

• Microcredits and microsavings services
• Basic trainings on agriculture, financial literacy, and social topics
• Individualized counseling and connection of beneficiaries with specialized social organizations, employers, and any other identified economic opportunities.

OBJECTIVES

The objective of the audit is to enable the auditor to express opinions on:

• Whether the ACE financial statements (including the notes thereto and supplementary statements) present fairly, in all material respects,
• Whether the ACE financial statements give a true and fair view of the financial position as at accounting year-end, and its cash flows for the years then ended, in conformity with international accounting standards (IAS) and Viet Nam accounting standards (VAS).
• Whether the proceeds of the finance was used for the intended purpose, and
• Whether the project has complied with the covenants stated in its license and legal framework.

SCOPE OF WORK AND DELIVERABLES

The auditor is required to deliver an audit report in the English and Vietnamese language comprising:
a.    Auditor’s opinion on the financial statements

An auditor’s opinion providing reasonable assurance over the audited financial statements, including the notes thereto and supplementary statements.
b.    Auditor’s opinion on compliance with license and relevant legal framework

An auditor’s opinion providing reasonable assurance that the (i) proceeds of the finance were used only for the purpose of the ACE activities, and (ii) ACE was in compliance with the covenants stated in its license and relevant legal framework.
c.    Audited Statements

Consolidated financial statements

d.    Management Letter

A management letter providing the auditor’s observations and findings on accounting records, systems and internal controls that were examined during audit, including:

• Weaknesses and issues in accounting and internal control systems, including irregularities in the use of funds, non-compliance with tax regulation, ineligibility of expenditures, and procurement-related weaknesses and issues.
• Auditor’s assessment of the causes, and recommendations to improve or rectify the identified weaknesses and issues.
• ACE’s management’s responses to the weaknesses and issues including explanations of the causes, proposed action plan to address the concerns, and the timeline for completion.
• Status of weaknesses and issues identified and reported in prior periods.
• Any continuing or persistent issues and weaknesses, and follow-up actions taken.
• Any matters the auditor considers pertinent or significant as to impact implementation

AUDITOR QUALIFICATIONS AND EXPERIENCE

The external auditor must satisfy the following minimum requirements:

• A legal entity in Vietnam with business license granted by appropriate authority
• Have adequate relevant professional and educational qualifications, or able to provide audit staff with adequate qualifications, experience, and competence
• Technically competent and able to conduct audit in line with the Internal Standards on Auditing (ISAs)
• Experience in auditing microfinance projects and non-profit organizations.
• Objective and independent from ACE, its staff, and activities, and from all aspects of management or financial interests of the ACE program
• Possesses proven track record in financial audit of microfinance projects and non-profit organizations

OTHER MATTERS

Desk study and field visits must be done at ACE’s operations area. The audit is expected to take a risk-based approach.

TIMEFRAME

The mission is expected to be carried out from 22/04/2024, and completed within 4 weeks.

CONTACT

Address: No. 56, Hoang Van Thai street, group 2, Nam Thanh ward, Dien Bien Phu city, Dien Bien province.             
Tel: 0215 3 826 828; or 0981 053 863 (Ms.Tam)              
E-mail: [email protected],  [email protected]
Deadline for receiving application: 07/04/2024