TOR for Project Audit

Welthungerhilfe

Welthungerhilfe is one of the largest private aid organisations in Germany. It is politically independent and non-denominational. Welthungerhilfe is fighting hunger around the world and is focusing its work around the Sustainable Development Goal 2: “Zero Hunger by 2030”. Since its establishment in 1962, more than 9,830 overseas projects in 70 countries have been supported with 3.95 billion euros. Welthungerhilfe works on…

TOR for Project Audit

Terms of Reference

for Project Audit of 

Project: Building livelihood resilience + nutrition security in Kamala River Basin, Siraha, Phase II(NPL 1070-19)

1. Background

Deutsche Welthungerhilfe e.V. (WHH) is one of the largest Non-Governmental Organizations in Germany operating in the field of Humanitarian Assistance and Development. It was established in 1962, as the German section of the “Freedom from Hunger Campaign”, one of the world’s first initiatives aimed at the eradication of hunger. Welthungerhilfe’s work is still dedicated to the following vision: all people have the right to a self-determined life in dignity and justice, free from hunger and poverty.

WHH) has been operational in Nepal since 2012, and currently managing different projects in nine districts under four thematic areas (sectors): food and nutrition security, WASH, Disaster Risk Reduction (DRR); and right to food and empowerment. WHH works hand in hand with civil society in Nepal to empower socially marginalized and economically poor citizens to reinforce their resilience and to ensure their right to adequate food and nutrition.

Building livelihood resilience + nutrition security in Kamala River Basin, Siraha, Phase II (NPL 1070-19) in Karjanha, Kalyanpur and SirahaMunicipalities of Siraha district. Above project is being funded by Federal Ministry of Economic Cooperation and Development of Germany (BMZ) and Deutsche Welthungerhilfe e.V. (WHH) and being implemented by Aasaman Nepal.

2. Purpose of the assignment

WHH in partnership with Aasaman Nepal has been mobilizing BMZ and German private fund for the betterment of people of different locations in Nepal. In order to obtain and provide reasonable assurance to WHH and its providers of the money that the fund is being utilized economically, efficiently and on the purpose they were provided for. Review and verification of the systems and processes of the partners that are mobilizing the donors’ fund by an independent and qualified audit is a process to obtain and provide this assurance. Below is additional information for audit of the project:

Additional Information of the project:

Total Budget (in EURO): 1,333,333.00

Project Period: 1 March 2021 to 30 April 2024

3. Scope of assignment

  • Testing of systems and procedures of project partner(s)
  • Verification/ Inspection of project financial transactions and related supporting documents 
  • Confirmation of partner’s financial statements on the project
  • Field visits of the partner offices and project locations
  • Meet and interview with partner’s management team, project staff and project stakeholders
  • Audit in accordance with the International Standards on Auditing (ISA) and Nepal Standards on Auditing (NSA)

4. Responsibilities of the auditor

  • To plan and conduct the audit in order to be able to submit the audit reports in time
  • To assign a qualified audit team for the audit
  • To organize and attend entry meeting with project partners to plan the actual audit
  • To obtain related information on the project, donor requirements and project partners

5. Output and deliverables

Auditors shall submit the audit reports as per below audit timetable based on verification of at least 75% of the transactions in number of vouchers and volume of the transactions:

a. Timetable of audit reports:

  • By 28 February 2022 for the period of 1 March 2021 to 31 December 2021
  • By 28 February 2023 for the period of 1 January 2022 to 31 December 2022
  • By 30 June2024 for the period of 1 January 2023 to 30 April 2024

b. Audit reports include:

  • Auditor’s opinion in WHH’s structure and layout of the audit report 
  • Certification of financial reports on the project up to the audit period including partner’s monthly financial reports
  • Management letter on the audit

c. Confirmation of record of project inventory

6. Application procedures

Qualified and interested individual Chartered Accountant or Chartered Accountancy Firm can submit their proposal (technical and financial) with (i) Certificate of Practice (CoP) with upto date renewal issued by ICAN, (ii) Value Added Tax (VAT) registration, and (iii) Tax clearance certificate for the latest fiscal year to procurement.nepal@welthungerhilfe.de by 31 December 2021 (COB).