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BACKGROUND AND CONTEXT

ONL started to work in Cambodia at the beginning of the 1980s, initially focusing on humanitarian assistance and reconstruction through partner organisations. Oxfam Novib in Cambodia was registered with the Ministry of Foreign Affairs and International Cooperation on 31 July 2012. It currently supports approximately 57 local non-governmental organisation (“NGO”) partners in the field of Economic Justice, Right in Crisis, Gender Justice and Governance as an overarching strategy. Cambodia was one of the last Oxfam Novib countries to decentralise in May 2013. A new team was built up from scratch and systems and procedure put in place in line with global ONL policies.

ONL has led the Oxfam 2020 process in which there will be only one Oxfam working in the country by 2020. In 2018, the Management requested to include all Oxfam affiliate under Oxfam Novib Cambodia, which was approved by the Ministry of Foreign Affairs and International Cooperation on 9 April 2018. In 2019, the Oxfam programmes and resources were further streamlined and come under the single line management of the Country Director.

The Oxfam Cambodia, Laos, and Vietnam (CLV) Cluster was established in April 2022 as an internal management structure. Its purpose is to enhance impact and strategic delivery; strengthen connections between programs, people, resources, and knowledge; improve efficiency through shared systems; and maximize synergies among Oxfam in Cambodia, Laos, Vietnam, and the broader Oxfam Asia region.

OBJECTIVES

The objectives of the audit are to enable the Auditor to express an opinion on whether the financial statements, in all material respects, present a true and fair view of the actual expenditure incurred and the revenue recognized for the Cambodia Country Office for the period from 01st April 2025 to 31st March 2028 (3 Years).

SCOPE OF WORK

The audit will be carried out in accordance with ISA[1] auditing standards and CIFRS for SMEs. The audit period is 01 April 2025 to 31 March 2028 (3 Years). Oxfam will be signed for 3 years audit.

Year 1: will cover the period from 01 April 2025 to 31 March 2026.

Year 2: will cover the period from 01 April 2026 to 31 March 2027.

Year 3: will cover the period from 01 April 2027 to 31 March 2028.

The total estimated expenditure to be audited for year 1 is USD 5 million

AUDIT PROCEDURES

Compliant with ISA200, the Auditor should exercise due professional care and judgment and determine the nature, timing, and extent of audit procedures to fit the objectives, scope and context of the audit.

In conducting the audit, the Auditor should:

• Express an opinion on the financial statements prepared by the Country office.
• Verify the presentation of financial statements in compliance with accepted accounting and reporting principles, with Oxfam Novib International Finance Manual and all other relevant operating procedures in the Country office, and with statuary requirements;
• Verify the Country Office is appropriately registered and compliant with local laws and regulations;
• Analyse financial management and risk management processes and evaluate whether sufficient internal controls are in place and effective;
• Certify that the funds were utilized for their intended purposes according to the terms of the annual budget, specific project budgets, annual work plans, etc., and in agreement with Oxfam Novib and donor requirements.

Special attention should be paid to:

• Quality of management oversight and internal controls (such as segregation of duties), and policies, procedures, and practices related to costs allocations and classifications. 
• Budgetary procedures (establishing forecasts by activity/task or output, conformity with the annual work plan forecasts, budgetary approvals and work plans by the responsible agent, budgetary amendments during the audit period, etc.);
• Fund management procedures (bank account, advances supported by forecasts and in conformity with Oxfam Novib’s policies and procedures, petty cash safe keeping, bank reconciliations, control of receipts, etc.);
• Status of Country Office bank accounts signatories, including review of the list of designated signatories, and appointment process and authorizations of the said signatories by the BoD
• Financial aspects of personnel management (employee contracts, remuneration of salaries, allowances and other benefits, deductions at source according to regulations currently in force, remittances made to the proper authorities including Income Tax, expat income tax, annual personnel evaluations/appraisals, policies, procedures and recovery mechanisms for staff advances and verification that allowances have been paid in conformity with the said policies and procedures as well as local regulations);
• Procedures for the hiring and payment of consultants (approval of selection and contracts by the proper authorities, contracts properly written with appropriate financial control over payments of fees and expenses including appropriate certification that the work was performed satisfactorily before a payment is made);
• Financial aspects of procurement (purchase orders, appropriate certification that goods/services/works have been delivered in satisfactory condition before a payment is made);
• Procedures related to the control of expenses (complete documentation, certification that the goods have been received or services rendered, issuance of check in the name of the supplier stipulated in the contracts/purchase orders, proper signatories, bank accounts, etc.);
• Procedures related to inventory control of non-renewable stock (replacement parts, etc.) and assets (catalogued/inventoried on a regular basis, identification by serial number or other means, condition of the inventory, location, etc.);
• Policies and procedures for, and control of, the use of vehicles and fuel as implemented by the Country office;
• Mechanism for the recovery of costs (method of invoicing, control of invoices issued but unpaid), control of receipts generated by these revenues. 
• Reporting mechanisms (financial and quarterly progress reports, explanation of variances, etc.).

DELIVERABLES

The Auditor is responsible for conducting the audit procedures as specified in the ToR and the ISA auditing standards and following the ACAR Cambodia requirements.

In addition to the audit report, the Auditor shall provide a Management Letter summarizing the observations with regard to accountability and internal controls.  This would include the following:

• Comments and observations with regard to the accounting records, systems and controls that were examined during the course of the audit.
• Specific deficiencies and areas of weakness in systems and controls and recommendations for improvement.
• Any other matter that the Auditor considers significant to report to Management.
• Audit findings should be categorized by risk severity: High, Medium, or Low, measured on the basis of impact and likelihood;
• The observations in the Management Letter must be accompanied by the implications (risks), suggested recommendations from the Auditor and Management’s comments on observations/ recommendations including follow-up/progress from last year’s report. 

ROLE OF AUDITOR

• Meet with the country office Country/Cluster Director (CD) and Country/Cluster Business support Manager (BSM) or similar senior finance manager position, in order to gain an appreciation of any specific concerns or risks related to financial management;
• Perform the audit at the premises of the Country Offices and visit field offices, depending of the latest security situation and advice;
• Obtain Management’s feedback/response to the draft Management Letter and Audit Report;
• At the end of the audit, debrief the CD at the Country Office.

TIMEFRAME

The annual audit engagement can start as soon as possible after an external and independent chartered accountant is selected through the procurement procedure.

PAYMENT SCHEDULE

The applicant/s should propose a payment schedule in the proposal.

***The financial proposal must provide an estimated cost for 1 unit of each type of deliverable. It is highly recommended to structure the financial proposal according to deliverables.

APPLICATION PROCESS

Clarifications

Any questions, remarks or requests for clarification can be sent to Boren.Nou@oxfam.org

at least 5 days before the submission deadline in writing. The (anonymised) questions will be answered to all applicants.

Administrative compliance (list of documents to be submitted) as listed below.

Responses must be submitted and prepared in English and received by the deadline.

To be shortlisted for evaluation against award criteria, the following documents must be included in the application:

Link to access the full version ToR: https://oxfam.box.com/s/pxlhwse21a6rb5d5ipxcchknygjvd33r