Terms of Reference (ToR) for Hiring an independent audit of Oxfam in Nepal
Terms of Reference (ToR)
Hiring an independent audit of Oxfam in Nepal for FY 2021/22 (Apr-Mar’22) and FY 2078/79 (Shrawan- Ashad’79)
Oxfam is an international confederation of 19 organizations network together in more than 65 countries, as part of a global movement for change, to build a future free from the injustice of poverty. Oxfam has been working in Nepal for 40 years to support the Government of Nepal with the vision to create a just society without poverty; a society in which all women and men live a life of dignity, enjoy their rights and assume their responsibilities as active citizens of Nepal. Through its different program, it aims to provide people with livelihood opportunities, ensuring that development-related activities are demand driven and sustainable and that the most vulnerable are empowered to claim their rights.
Oxfam works with local partners to build their capacity, to promote sustainable development and to alleviate poverty and suffering. Oxfam’s approach is right-based and supportive on service delivery. The Nepal programme contributes to the South Asia Regional Programme and in turn each region contributes to the broader global programme. Oxfam in Nepal has been implementing its programme in three thematic areas:
- Gender Justice Programme
- Resilience and Climate Justice Including humanitarian response
- WASH and Water Governance
Oxfam in Nepal is planning to conduct an independent Audit of its financial statement and financial transactions, Tax Audit. This audit will cover the transactions of Oxfam in Nepal Country Office and its selected programme-implementing partners. Partner NGOs will be selected in the audit planning meeting.
Statutory Audit: Period Covered April 2021 to March 2022
Tax Audit as required by Income Tax Act: Period Covered 15 July 2021 to 16 July 2022
Purpose of the Independent Audit
The broad objective is to obtain reasonable assurance by reviewing the existing policies relating to its Accounting and Internal Control System and to identify issues and areas for improvement. Specific purpose of the assignment are as follows:
- Examine the evidence and supporting documents to assess the compliance position as required by Oxfam policies and local laws,
- Assess the accounting principles used and evaluate the overall financial statements presentation,
- Assess the risk on programme implementation through partners,
- Assess the adequacy and implementation of internal control system.
- Examine the follow up action for the earlier audit recommendation.
- Produce an independent audit report.
- Complete specific audits and provide audit reports within deadlines provided to enable Oxfam in Nepal meet external deadlines
Audit procedures will be completed in Oxfam in Nepal country office Jawalakhel. Some of the partners site will be visited as per the samples. locations of partners organization are as bellow:
The audit location will be finalized after discussion with the auditor considering the risk assessment.
A. Oxfam in Nepal Management’s Responsibilities:
- Oxfam in Nepal Management is responsible for the financial statement.
- Provide Management Letter to the consulting firm,
- Establishing and maintaining the internal controls over financial reporting,
- Complying with Oxfam policies, all applicable laws/regulations, accounting standards
- Provide full support and all relevant information and documents to the persons involved in the proposed audit process and
B. Consultant/consulting firm’s Responsibilities:
Information gathered during the audit process be treated as strictly confidential and should not be divulged to anybody without permission from competent authority of Oxfam unless required legally.
Oxfam in Nepal office time is 9 am to 5 pm and weekend days are Saturday and Sunday. The proposed audit process needs to be planned within this timetable.
The consulting firm shall be responsible to express an opinion on the audited financial statement based on their findings and is not limited to the following:
- Planning, scheduling, and staffing,
- Provide client’s checklist,
- Conduct audit in accordance with the international auditing standards and Nepal Audit Standards,
- Perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement,
- Submit a preliminary audit report to the Oxfam in Nepal Management within the scheduled period,
- Upon receiving the preliminary report along with management response, submit a final Audit report.
- Assist the management team in filing the income tax return as required by Income Tax Act 2058.
- Verify that expenses incurred below mentioned criteria of eligibility:
- Costs are actually incurred, identifiable and verifiable
- Expense incurred in compliance with the applicable laws, donor requirements, accounting standards, organization policies
- Cost incurred withinthe fiscal year respective to statutory and tax audit
- Expense incurred is within permissible limit by the budget and in line with program objectives
- Expense incurred appropriately recorded in books of accounts of Oxfam and its implementing partners
- Expenses are charged to correct account codes and budget lines
The consulting firm will submit an independent audit report and management report containing audit findings for the period ended 31 March 2021 to Oxfam in Nepal along with the management comments, if any.
An independent audit report for the tax period audited July 2021- July 2022 along with the management comments
Income tax return for fiscal year 2078-79 filed timely as required by the Income Tax Act
The partner involved in this independent audit are required to have a membership and certificate of practice issued by Institute of Chartered Accountants of Nepal (ICAN)
At least 5 years of practicing experience in undertaking similar assurance service in international non-government organizations.
Audit Team Leader having membership with recognized accounting institution.
Audit firm with capacity to deploy adequate and competent staff for timely completion of assignment.
Duration: Start date and completion date
Duration of the assignment will be tentatively from the 1st week of June to 30 September 2022.
Depending on the situation, it can be extending another two months.
Budget and terms/mode of payment
Budget Segregation/ Breakdown
Payments for the assignment will be made on:
- 50% of consultancy fee along with out-of-pocket expenses after submission of audit report for period ending 31 March 2022 (Statutory Audit).
- Remaining 50% of consultancy fee along with out-of-pocket expenses after submission of audit report for period ending 16 July 2022(Tax Audit).
Profile of firm/consultant
The Audit firm involved in these tasks are required to have a membership in the Institute of Chartered Accountants of Nepal (ICAN), certificate of practice and at least 5 years of practicing experience undertaking similar assurance services of INGOs. The firm should have experience of audit in INGOs/ Development sector and other with capacity to deploy adequate staff for timely completion of assignment.
Documents for submission
Interested consulting firm can apply by submitting the following:
- A technical proposal including
- Description of how your skills and experience match the TOR requirements,
- Proposed methodology and work plan
- A financial proposal: should include a detailed budget sheet with breakdowns
- CV of lead consultant auditors
- Profile of the consultancy firm
- FIRM Registration Certificate in ICAN
- VAT registration certificate
- Company Registration Certificate
- Tax clearance certificate 2077/78
- Contact detail (Name, designation, organization, email ID and phone no.) of 2 referees
Proposal Review/Scoring criteria
The proposals will be scored on the following criteria:
|1||Cost-effectiveness and realistic budget plan as revealed by financial proposal—— (60 points)|
|2||Relevant work experiences of the firm in conducting audit of INGOs and development projects ——- (10 points)|
|3||Audit firm with capacity to deploy adequate and competent staff for timely completion of assignment ——–(20 points)|
|4||The partners involved in this independent audit are required to have a membership and certificate of practice issued by Institute of Chartered Accountants of Nepal as revealed by submitted CVs ———- (10 points)|
The Consulting VAT Registered Firm should submit the technical and financial proposal to Oxfam by 31 MAY 2022 before 5 pm via mail to email@example.com, clearly mentioning the title of assignment in the email subject line “Independent Audit” and not exceeding 15 MB
The Consultant will be required to take all the necessary actions to handle the collected data responsibly (see Oxfam Responsible Data Policy) to ensure data privacy, anonymity, and confidentiality.
Our Commitment to Safeguarding
Oxfam is committed to safeguarding and promoting the welfare of children, young people and adults and expects all staff, consultants, volunteers to share this commitment. We will do everything possible to ensure that only those who are suitable to work within our values are selected to work for us.
All material issued in connection with this ToR shall remain the property of Oxfam and shall be used only for the purpose of this procurement exercise. All information provided shall be either returned to Oxfam or securely destroyed by unsuccessful applicants at the conclusion of the procurement exercise.
During the performance of the assignment or at any time after expiry or termination of the Agreement, the Consultant shall not disclose to any person or otherwise make use of any confidential information which s/he has obtained or may in the course of this agreement relating to partner organization/Oxfam, the respondents or otherwise.
The consultant will be required to sign a non-disclosure/confidentiality agreement as part of their undertaking of this work.
Intellectual Property, Copyright and Ownership
Oxfam shall retain all reference materials provided as background used by the Consultant in the delivery of this assignment. All arising intellectual property, ideas, materials, processes, or processes formed in contemplation, course of, or as result of this work shall be passed to Oxfam without restriction. Copyright of all arising documents, data, information, or reports produced by the Consultant under this agreement shall belong to Oxfam and will be passed to Oxfam without restriction. Such documents, data, information, and reports shall not be used by the Consultant for any other purpose other than in conjunction with this assignment, without the express written permission of Oxfam