Terms of Reference for statutory Audit of the project implemented by the
Programme For Helpless And Lagged Societies (PHALS)

Background:

PHALS (Program for Helpless and Lagged Society) is a Local Non-Governmental Organization (NGO) started its journey in Cox’s Bazar district since 1992, latter got registration from Ministry of Social Welfare, Bangladesh in 1996, from NGO Affairs Bureau of Bangladesh in 1999. PHALS jointly working with GO/NGO and INGO to empower and protect the less privileged, marginalized vulnerable communities and surrounding environment through multidimensional development interventions. The organization addresses a wide range of critical issues, including localization humanitarian aid, livelihood and economic development, gender equality and People with disability inclusion, education, community empowerment, WASH, Health, disaster risk reduction (DRR), and climate change resilience.

With the support of Malteser International, PHALS has been implementing a localization project titled "ToGETHER! - Towards Greater Effectiveness and Timeliness in Humanitarian Emergency Response" in Bangladesh since 2021. The project aims to transcend organizational boundaries, enabling local and international partners to develop approaches to humanitarian responses and create synergies during crisis response collaboratively. It also supports local actors in enhancing their capabilities in humanitarian response, preparedness, coordination, and advocacy. Additionally, the program aims to create opportunities for establishing complementary partnerships and promoting the roles of local partners. Capacity-strengthening and exchange measures are based on LHPs' self-defined needs and priorities, as well as the broader humanitarian context within their countries and contexts.
           
Objective:

The aim of the audit is to review the operational and financial performance of the project in order to provide the PHALS Management with reasonable assurance the financial statements of the project “ToGETHER! - Towards Greater Effectiveness and Timeliness in Humanitarian Emergency Response " of whether proper books of account have maintained and that the accompanying financial statements are true and fair and free from material misstatement for the year under review and whether systems and controls are working effectively.

Scope of Audit:

1. Project name: “ToGETHER! - Towards Greater Effectiveness and Timeliness in Humanitarian Emergency Response.”

Project Numbers: Malteser International: 2565-59-BD. The annual financial reports and financial statements for the period 1st April 2023 to 31st Dec 2023 are fairly and accurately presented. The internal control system and management structure of PHALS (legal status, staff management, accounting system, control of assets and expenditures in financial transactions). (Project volume for 1st Year)

1. The compliance with the respective Government Acts as applicable such as, e.g. Income Tax Act, and registration reporting requirements (NGOAB), Bangladesh Bank.

General and Financial Requirements:

1. The Audit Reports should consist of Income and Expenditure statements, Receipts & Payments statements/cash flow statements, and Balance Sheet. The auditor is also required to submit Management Reports;
2. Audit will be conducted based on the Financial Reports and documents provided by the organization;
3. Physical verification of Assets.
4. Verify and confirm that Goods, works and services financed have been procured in accordance with established rules and procedures.
5. Terms of reference of NGO Affairs Bureau.
6. Verifying bank reconciliation with the bank statement and bank book.
7. That personnel costs agree with paid salaries, cashbook, staff salaries ledger, and timesheet.
8. The disbursements are made in accordance with the activities and budgets of the Project(s)
9. That agreement with contractors is verified, and confirm the agreed payments.

The auditor will provide a management letter on the audit of the financial statements of the project. The management letter will include the following things-

1. Give comments and observations on the accounting records, procedures, systems, and controls that were examined during the course of the audit;
2. Identify specific deficiencies and areas of weakness in systems and controls and make recommendations for improvement.
3. Report on the degree of compliance with all governing laws or statutory Requirements
4. Communicate matters that have come to their attention during the audit, which might have a significant impact on the management and sustainability of the PHALS Office.
5. Verify the shared cost in accordance with standard or organization policy.

Timeliness:

The audit shall be implemented, and reports shall be provided by Auditors as per the timelines given in the table below:

 Reporting and Deliverables:

The Audit Report will be written in English language and will comprise:

1. The audit standards that were applied (In accordance with Bangladesh Auditing Standards and applicable regulations specially NGOAB)
2. The auditors’ opinion on the financial statements on the period covered.
3. The Audit Report and Management Letter shall be submitted in 3 copies; each addressed to the Executive Director of PHALS. A complete set of the financial statements.
4. Please quote conducting statutory Audit of the project implemented by the Programme For Helpless And Lagged Societies (PHALS) on the subject line. Applications should be emailed to phalsadm@gmail.com, CC to among.phals23@gmail.com reach not later than 25 January 2024 at 5.00 PM Bangladesh time

Abu Murshed Chowdhury
Executive Director
PHALS (Programme for Helpless And Lagged Societies)
Head Office: Bypass Road, Jhilongja, Cox’sbazar-4700, Bangladesh
Sub Office: Abu Center, 3rd Floor, East Bazarghata, Cox’sbazar Main Road, Cox’sbazar.
Phone: 01824538386
Email: phalsadm@gmail.com
Website: www.phalscox.org