ANNUAL FINANCIAL AUDIT OF LMFA and its member MFIs
The predecessor of the Lao Microfinance Association (LMFA), the Microfinance Working Group for the Lao PDR (MFWG), was founded inMay 2007 by a group of microfinance practitioners as an informal platform to exchange experience, represent microfinance sector interests and coordinate donor activities. In October 2013, the MFWG obtained its temporary license as a non-profit association (NPA) from the Ministry of Home Affairs (MoHA). As a consequence, its name changed to Lao Microfinance Association (LMFA). LMFA got its permanent license by middle of August 2018.
The LMFA is the national microfinance industry’s umbrella organization. It gathers microfinance practitioners and other relevant stakeholders that share the ultimate goal of the association which is to improve access to appropriate and affordable financial services for poor and unbanked people.
2. Objectives of the Audit
The objectives of this audit are to enable the Auditor to express an opinion on whether:
- the financial report prepared by the LMFA/its members presents fairly, in all material respects, the actual expenditure incurred and the revenue received for the period under review, in accordance with the contractual conditions agreed upon with the donors/funding agencies of the LMFA/its members;
- the Internal Control System set up and operated by the LMFA/its members for the purpose of managing risks was suitably designed and operated effectively in the period under review.
3. Specific tasks of the Auditor
The Auditor shall perform the audit in accordance with Lao & International Auditing Standards.
Specifically, the Auditor shall
- Review and, if applicable, prepare the following financial reports for the period 1st January – 31st December 2020: Statement of Income and Expenditure, Fund Balance, as well as List of Fixed Assets (Inventory) as of 31st December 2020;
- Express an opinion on the accounts/financial reports as well as the Internal Control System of the LMFA/ its members;
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimated made by the management, as well as evaluating the overall presentation of the financial statements;
- Formulate recommendations related to the accounting system and policies, Internal Control System and the overall presentation of the financial statements as well as follow up on the recommendations made in the previous year’s audit report (Management Letter).
4. Time frame
The audit needs to be conducted in the first quarter of 2021
5. Expected output (report / deliverables / products)
A complete audit report in English and Lao languages for the period 1st January – 31st December 2020, including a Management Letter.
Vientiane Capital, 28th December 2020
Closing date is 15th January 2021