TERMS OF REFERENCE

for

ICCO Cooperation country office Audit and Tax service support

1. Terms and Conditions

Following are the terms of reference (‘ToR’) on which ICCO agrees to engage -----------------(‘the Auditor’) to perform an Annual Audit of the financial statement and to report as per the requirement of the NGOAB.

The audit shall be conducted in accordance with the ToR, the auditing rule set by the NGO Affairs Bureau of Bangladesh, National board of Revenue (NBR) and the Bangladesh Standards on Auditing. The auditor will extend his/her scope of auditing to a certain level that will enable his/her to form an opinion referred to above and the audit must be conducted in such a manner as considered necessary to fulfill the responsibility.
The management responsibility is to the preparation of the financial statement for the financial year which gives a true and fair view of the state of affairs of the company and the income & expenditure report of the organization for that period.
The auditor shall obtain an understanding of the accounting system in order to assess its adequacy as basis for the preparation of the financial statements and to establish whether proper accounting records have been maintained.
The auditor shall expect to obtain such relevant and reliable evidence as considered sufficient to draw reasonable conclusions.

The nature and extent of the auditor's procedures will vary according to the auditor's assessment of the project's accounting system, and evaluation of the internal controls which are present during systems review.

2. Background Information

2.1 ICCO Cooperation

ICCO is an International donor organization. ICCO has been working in Bangladesh as donor organization since 1972 through partner national NGO in Bangladesh. Recent this organization has received its NGO Affairs Bureau registration which reg. no. 2834 dated 11/11/2013 as international NGO. Currently, ICCO works in 36 countries around the globe and in Bangladesh with a special focus on fair economic development, food and nutrition security, climate change, and emergency response for the hardcore poor and marginalized in rural area, especially women and children.

3. Period of the Audit

The period of each component is mention below:

• ICCO country office yearly audit (FD-6 audit) for the period from 01st January 2018- 31st December 2020 (03 consecutive year).
• ICCO country office consolidated audit for Tax return submission purpose for Tax return submission purpose for the income year from July 2018-30 June 2020 (02 consecutive year)
• Annual return submission or the country office for the the income year from July 2018- 30 June 2020 (02 consecutive year)
• Half yearly return submission for the country office for the income year from December 2018- 31st December 2020 (02 consecutive year)
• Expats return submission- 03 to 05 expats per year (per expats fees will be multiplied with the actual number) for the income year from July 2018-30 June 2020 (02 consecutive year)

• System reconciliation (balance sheet items) between SAGE ERP and all solution (Global software) from 01st January 2018- 31st December 2018.

4. Scope of Work

The auditor will carried out their examinations in accordance with Bangladesh standards on auditing(BSA) and accordingly it included test of such accounting records and such other auditing procedures as were consider necessary and found feasible under the circumstances. The audit will conducted at the PNGOs office where necessary books of accounts, vouchers etc. will be produced by the management of the organization. The auditor will have 100% liberty for accessing to the documents if feels necessary for the purpose of audit. Auditor shall have to fill in up NGO Bureau formats and NBR format (if any) which is mandatory in audit’s report properly. 

5. Deliverables

The auditor will provide auditor’s report on certification of audited financial statements and will share their visit observation for improvement of internal control system of the organizations. The auditor’s report should include the following parts:

1. Separate Audit report for ICCO Cooperation Country Office including Statement of Financial Position/Balance Sheet, Statement of income and expenditure, Statement of Receipts & Payments, FD-4 certificate and others particular as required by NGOAB.
2. Separate Audit report for ICCO country office consolidated audit for Annual Tax return submission purpose for the income year from July 2018-30 June 2020 (02 consecutive year)
3. Timely Annual return submission or the country office for the the income year from July 2018- 30 June 2020 (02 consecutive year).
4. Timely Half yearly TDS  return submission for the country office for the income year from December 2018- 31st December 2020 (02 consecutive year).
5. Timely Return submission to NBR regarding information of Employees return submission within 15 April of every year under section 108A (02 consecutive year).
6. Timely Expats return submission- 03 to 05 expats (per expats fees will be multiplied with the actual number) for the income year from July 2018-30 June 2020 (02 consecutive year).
7. Separate report on System reconciliation (balance sheet items) between SAGE ERP and all solution (Global software) from 01st January 2018- 31st December 2018.
8. Management report for improvement of internal control system of the organizations.

The auditor shall provide 06 nos. copies of the Auditor’s report for each category. Report to be submitted in both hard and soft copies.

6. Time schedule with Entrance and Closing meeting

The Audit will start from 01 November 2018 and be completed by 25 November  2018 for the deliverable 2,3 & 5 for the income year 2018. Other deliverables timelines will be agreed by email with Head of Finance (HOP) after selection of the Auditor. Convenient schedule will be prepared on practical arrangement agreed jointly between ICCO and the Auditor.
Before starting the Audit, ICCO will organize a start-up meeting with the Auditor. Auditor will share his/her draft detailed work plan to be reviewed and adjusted as per the requirements of ICCO. After the completion of the audit and before finalizing the report multiple iterative sessions will be planned for detailed review and responses.

Proposed timeline:

7. Payment details and other Terms

Total fees and expenses for the audit will be calculated in BDT, including- consultancy fee, Income Tax, VAT, overhead, transport (field, office), loading, food, stationery’s and other related expenses. The advance amount of 30% of the contract amount will be paid to the Auditor’s bank account upon signing of the contract. The remaining balance of 70% will be paid after submission of the deliverables and the final report approval by ICCO. The penalties of 1% per day will be deducted from the final payment in case of any delay in submission of the final report, starting from the first day after the deadline.

8. Offers

The offers, including technical and financial proposal, should be submitted by e-mail to Mr. Martin Mondol: hr.bd@icco.nl not later than on 25th October 2018, 5pm Dhaka time.