Chartered Accountant

Terms of Reference

Auditing and financial management support services for partner cooperation
in the framework of the Civil Peace Service Program of KURVE Wustrow in Nepal

KURVE Wustrow is an international NGO registered in Germany with a country office in Nepal, and conducts trainings, workshops and events in the field of civil, non-violent conflict transformation at its home country in Germany and abroad. In the context of the Civil Peace Service Program (CPS) funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), KURVE Wustrow is closely cooperating with partner organizations in the Balkans, Ukraine, Sudan, the Middle East, and in South and Southeast Asia.

Since 2009 KURVE Wustrow is supporting partner organizations in Nepal. The organization currently holds a General Agreement and a three-year Project Agreement with the Social Welfare Council (SWC). Funding support for the period of three years between 2025 to 2027 is approved by the BMZ. Within this framework, the KURVE Wustrow project is required to be audited by an independent Chartered Accountancy Firm registered and renewed with the Institute of Chartered Accountants of Nepal and recognized by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)  to provide assurance on  transparency, accountability, governance and zero tolerance against  potential fraud and irregularities during the implementation of project, and to comply with the rules and regulations of KURVE Wustrow HQ, SWC and BMZ.

Objectives

    To conduct the audits of the financial statements of the three-years project of the partner organizations and the office of KURVE Wustrow in Nepal and to express an independent opinion on the project financial statements. The opinion includes whether the financial statements reflect true and fair view and have been prepared in accordance with International Accounting Standards, Nepal Accounting Standards for Non-Profit Organizations (NAS for NPOs) as well as relevant Standards on Auditing as applicable in Nepal.

   To support the partner organizations and KURVE Wustrow office in Nepal in strengthening their financial management systems and procedures in accordance with the requirements of CPS program,  SWC and other relevant authorities of the Government of Nepal.

Responsibilities of the partner organizations and KURVE Wustrow

       Preparation of the financial statements which give true and fair view and are in accordance with the Nepal accounting and financial reporting standards applicable for

   the bi-monthly financial reports to be submitted to KURVE Wustrow in Germany, and

   the financial report for the SWC.

       Be responsible for necessary internal control and financial management system that enables the financial statements free from material misstatement whether due to fraud or error.

       Be responsible for compliance with BMZ financial management rules and regulations such as procurement of goods, services and construction works, reimbursement of travel costs (both domestic and international travel), documentation of shared program costs, payments and accounting etc.

       Provide unrestricted access to auditors on all necessary information, vouchers, documents that are relevant to the preparation of the financial statements such as records, approvals, documentation and other matters.

       Provide additional information that the auditors may request from for the purpose of the audit.

       Checking of project accounts of eight partner organizations in Nepal every two months confirming the correctness of the costs and documentation in correspondence to the financial regulations of the KURVE-CPS program in Nepal; short notice on this type of expenditure verification to be submitted second week of the following month (reporting format will be provided by KURVE Wustrow).

       Conduct bi-monthly expenditure verifications for the KURVE Wustrow Nepal office and for two international employees, confirming the correctness of the documentation in correspondence to the financial regulations of the KURVE-CPS program in Nepal; short notice on this type of expenditure verification to be submitted second week of the following month (reporting format will be provided by KURVE Wustrow). Review monthly payroll, income and costs transactions, and account reconciliations of the three accounts. Verify internal control systems and financial management procedures and report on their adequacy, documenting any weaknesses or recommended improvements.

       Examine payroll records for KURVE Wustrow Nepal staff and verify deductions for income taxes, social security, and other legal withholdings, ensuring full remittance according to local regulations.

       The original vouchers shall be checked out against the given format (Spread sheet) as proof towards the BMZ paying special attention to the following matters:

Correct numbering of original vouchers and accordance with entered data in the given format

Clear description of expenditure in given format

Proper translation of relevant income and expenditure information/narration

Check correct attribution of expenditures to type of cost and budget code

Check on correct balance transfer between the accounting months in the given format.

Check the application of exchange rate for income and expenditure correctly

       Certified annual auditing for BMZ of the eight partner organizations, the KURVE Wustrow Nepal Accounts and the two international employees’ accounts at the beginning of the new year 2025 and 2026 for the past year and at December 31, 2027. The certified annual audit should only be made after the final check of accounts at the office of KURVE Wustrow in Germany.

       The auditors have the responsibility to report whether, in their opinion, the financial statements give a true and fair view of the state of affairs of the project implementation of partner organizations and of incoming resources and application of the resources of KURVE Wustrow. In arriving at their opinion, they are required to consider the following matters (not limited to this), and to report on any which have not been complied with:

whether proper accounting records have been kept,

whether the exchange rate for income and expenditure have been correctly applied,

whether the financial reports agree with the accounting records,

whether fund balances are correctly shown in the books of accounts of the partner organizations,

whether all the information and explanations necessary for the purposes of the audit have been obtained.

       The auditors have a professional responsibility to report if the financial statements do not comply in any material respect with applicable accounting standards, unless in their opinion the non-compliance is justified in the circumstances.

       Monitor the project expenses four times (Trimester basis) a year to ensure they are in line with SWC project agreements.

       Prepare financial reports and the final Audit Report for SWC.

       Strengthen the staff responsible for project financial reporting in the partner organizations and assess their professional qualifications; if necessary, advise the management of the partner organizations and KURVE Wustrow on systematic improvements.

       Conduct on-the-job capacity development including follow-up for partner organizations

Volume of Operations

The volume of the three-years project amounts up to 1.4 million Euro.

It is expected that the collaboration can start no later than February 1, 2025. In case of unexpected delays, the timing would be discussed between the Chartered Accountancy Firm and KURVE Wustrow and agreed jointly. The contract ends on December 31, 2027.

         expenditure verification of the project accounts of eight partner organizations, KURVE Wustrow office in Nepall and for two international employees

         Certified audit report for BMZ of the project accounts of eight partner organizations along with Management Letter.

         Certified consolidated audit report for SWC of the project accounts of the eight partner organizations and of KURVE Wustrow office in Nepal for the project period.

         Partner wise Management Letter to be issued and shared to KURVE Wustrow in Nepal, in case of partner field visit.

The audit team must be qualified, ensure transparency, accountability and zero tolerance against fraud, and having adequate audit experience of the like-minded organizations under BMZ-funding. Team Leader must be qualified senior auditor having at least five years audit experience with BMZ funding projects/program or GIZ experience with best composition of highly experienced audit team members.

Application procedure and requirement

         Expression of Interest (EOI)

         One recent reference of cooperation with INGO having high quality financial management standards

         Firm/company registration certificate

         PAN/VAT registration certificate

         ICAN Renewal

         Latest Tax Clearance Certificate

Decision criteria

The decision will be made based on following criteria:

         Experiences with the fiscal conditions under which INGOs operate in Nepal, in particular with requirements of SWC (10%).

         Experience and familiarity with BMZ and/or GIZ financial management rules and regulations as outlined above (10%).

         Determination and stringency to ensure transparency and zero tolerance of fraud, as well as compliance with and reporting on the criterion Value for Money based on recommendations of the references (20%).

         Overall price (60%).

Any form of attempt to influence the selection process will result in the immediate disqualification of the applicant.

         The submission closed date is 10.12.2024

         Submission of documents should be addressed to

Clemens Rossmanith, Country Coordinator Nepal, crossmanith@kurvewustrow.org