Call for Bid: External Audit of 2017 Financial Statements of ANH-CHI-EM Program

CALL FOR BID

EXTERNAL AUDIT OF 2017 FINANCIAL STATEMENTS OF ANH-CHI-EM PROGRAM

ANH CHI EM ACTIVITIES

Entrepreneurs du Monde (EDM), a French NGO, launched late 2007 the Anh-Chi-Em microfinance program in the province of Dien Bien, North West of Vietnam. The main objectives are to provide loans and non-financial services to ethnic minorities living in remote mountainous areas. Anh-Chi-Em works in close collaboration with
the local Women’s Union and People’s committee.

The strategic guidance is defined at 2 levels:

• The first level involves Entrepreneurs du Monde, through Steering Committees, who define the strategy of the program and monitor the program’s operations;
• The second one involves the Program Manager of Anh-Chi-Em, Operations Manager and a representative of the District People’s committee where program open its district branch. They mainly negotiate areas of operations and collaboration with district representatives of the Women’s Union.

The Operations Manager supervises 3 Branch Managers who are located in Dien Bien and Muong Ang District. Each Branch Manager supervises 5 commune credit officers (CCOs) who supervises one commune with 10 to 20 villages. At the village level, Cluster Head or Group Leader are selected to support the CCO and serve the end clients (referred to as “partners”).

Program operations include Financial Services (FS) and Non-Financial Services (NFS). The Financial Service Unit provides small loans adapted to local family-scale income generated activities The majority of program’s partners include animal husbandry, rice cultivation, coffee, trade and improvement of equipment for agriculture
activities. Program offer its partners 2 types of loan:

Program is not authorized to collect voluntary savings but, in order to promote savings habits among its partners collects compulsory savings where borrowers deposit, at each monthly interest repayment, an amount of more or less than VND 10’000. After complete repayment of the loan, the partner can withdraw their savings.

The Socio-economic team provides a wide range of trainings to help partners effectively implement their investment and therefore safeguard the program’s loans. The socio-economic services include trainings, client individual monitoring and various pilot projects (farmer interest groups …).

ANH CHI EM KEY INDICATORS

Anh Chi Em use Loan Performer (LPF) software to manage the microfinance activities and the accounting.

AUDIT REQUIREMENTS

1. OVERALL PURPOSE OF THE ASSIGNMENT

The overall purpose of the external audit is to give audit opinion on Program’s 2017 financial statements, audit work include a review the effectiveness of the operations of the program) and of the accounting process of the  Program, as well as the correct use of funds received from donors and the transparency of the disclosed accounting and financial information.

2. SCOPE OF THE ASSIGNMENT

The audit is expected to cover all aspects related to finance and accounting, including – but not limited to – the following aspects:

• Cash and Bank accounts management and reconciliations; cash management procedures and their validity in terms of control
• Client loans and savings accounting processes, monthly reconciliation procedures;
• Control over late payments, loan loss provisioning, loan write offs
• Staff payroll preparation, accounting and control
• Travel expenditures
• Procurement of assets and services
• Fixed assets management and control
• Booking of funds received from donors, and compliance of fund use with the terms agreed by the donors
• The accounting ledgers, vouchers and other supporting documents
• The financial statements (balance sheet, profit and loss statement)
• Budget control

And more generally speaking, the audit will aim at controlling the compliance of the Program’s practices with the procedure manuals, as well as the quality of these manuals.

3. EXPECTED OUTPUT

A comprehensive financial audit report comprising of detailed financial statements, all notes to the statements and a proper management letter, has to be submitted to Entrepreneurs du Monde in English and in Vietnamese.

The report has to be well-structured, including an in-depth analysis on all the aspects of accounting and financial management as listed above and evidence-based recommendations for consolidation and improvement of Program’s financial management and internal control. The final version of the management letter will include the Program’s management’s response to the listed findings and to the recommendations.

4. METHODOLOGY

Desk study and field visits in Dien Bien and in Muong Ang are best. The audit is expected to take a risk-based approach.

5. TIMING

The mission is expected to be carried out in April 2018, and completed within one month after signature of the contract.

6. PROPOSALS

The proposals must include a description of the scope of work, methodology and timing of the assignment, as well as detailed composition of the team, breakdown of the fees and charges.

Please send full proposals (technical and financial offers) before Mar 10th 2018 via email to:

- Anh Chi Em administrative and financial manager Tam Luong Thi:
[email protected] [1]

CC to:

- EdM head of social performance Eugenie Constancias:
[email protected] [2]