Expression of Interest (EOI) for Independent Audit Services

Expression of Interest (EOI) for Independent Audit Services

External Audit for FY 2080/81

1. Background

RWUA is an emerging non-governmental organization working in the sector of poverty reduction, mainstreaming disability, sustainable agriculture, disaster preparedness, public health and Sanitation (Wash), social mobilization and women empowerment, gender skill development, child education, promotion of good governance, dissemination of information on health and education. Being a district oriented local community organization; RWUA is involved in the improvement of local service system and strengthen local governance. It is conducting seminar, group discussion and participatory discuss on various cross-cutting issues like HIV/AIDS, mainstreaming disability, gender & caste discrimination, peace building & conflict resolution and social inclusion of all region- religion, class, ethnic group, sex and profession. Few years RWUA worked in small scale utilizing its own local sources and only after registered in DAO in 2050 B.S. After that it has become able to join hands with donor agencies and partners. 

RWUA, Sarlahi, has been implementing various projects in the Madhesh Province since its inception. In accordance with regulatory requirements and best practices, RWUA is seeking EOI from qualified independent audit firms to conduct a statutory audit for FY 2080/81 BS (2023/24 AD). The following outlines the terms of reference and requirements for the audit services:

2. Objectives of the Audit

The objectives of the audit are to provide reasonable assurance that all transactions incurred in the current fiscal year are in accordance with the relevant policies of RWUA organization, comply with funding agencies' requirements, and conform to the Government of Nepal’s laws, rules, and regulations. The audit should produce a report as per Nepal Accounting Standards (NAS).

• Ensure compliance with Nepali Accounting Standards and legal requirements.
• Evaluate the accuracy and completeness of financial statements.
• Assess the effectiveness of internal controls.
• Provide an opinion on the financial statements.
• Identify areas of improvement and provide recommendations.

3. Scope of Services

• Conduct a statutory audit for FY 2080/81 BS (2023/24 AD) and individual project audits within the agreement period.
• Adhere to nationally accepted auditing standards and comply with directives from funding agencies.
• Audit all operations at RWUA, Haripur, Sarlahi.
• Verify adherence to relevant laws and regulations, examine quantitative and qualitative program reports, and assess compliance with external and internal requirements. Review management policies and directives to ensure regulatory standards are met and identify any compliance gaps.
• Assess internal controls and risk management systems.
• Submit a draft annual statutory audit report to RWUA office as soon as complete the given tasks of signing the contract and sharing the draft report to Board, ED, Admin. Finance, Logistic, all PCs and so on.
• Provide detailed observations on the draft audit report to management, followed by a presentation on each audit observation and its implications.
• The final statutory audit report package should include:
  • Certified financial statements
  • Cash positions and details of assets/equipment
  • Auditor's opinion
  • Management letter detailing internal control shortcomings, audit procedures, and relevant recommendations
  • Special reports if required
• Assist in income filing with the Tax Office.

4. Audit Methodology

To present a true and fair view of the financial statements/reports, the auditor shall conduct accuracy checks, observations, inspection of records and documents, interviews with beneficiaries, inquiries, analysis, recommendations, and comparisons, including:

• Visit the RWUA office to review vouchers, invoices, and all supporting documents for all expenses and income receipts.
• Follow up on previous audit reports and comments.
• Review staff, rental, and other relevant contracts.
• Assess payroll and tax adherence.
• Evaluate policies and compliance for beneficiaries.
• Inspect all inventory and asset lists of RWUA.

5. Criteria for Auditor Selection

Prospective audit firms/engagement partners must meet the following criteria:

• Must be a Chartered Accountant and registered member with the Institute of Chartered Accountants of Nepal.
• Be completely impartial and independent from RWUA, Haripur, Sarlahi’s management or financial interests.
• Should not have any employment, directorship, financial, or close business relationships with senior management during the audit period.
• Must be experienced in applying all relevant auditing standards.
• Should have an audit team with adequate professional qualifications and experience.
• Must have at least 5 years of experience auditing entities of similar size and complexity.
• Experience in auditing NGOs/INGOs or similar organizations is required.
• Provide resumes of key audit team members, including details of significant and relevant assignments and experiences.
• Preferably, the audit team should have extensive knowledge of current government requirements and SWC rules and regulations.
• Auditor will be selected as per lowest bidding cost.

6. Independent Auditors Qualification

Interested audit firms should submit the following:

• Profile of the consultancy firm, including relevant experience.
• Certificate of Practice (COP) with current renewal.
• Firm Registration Certificate with the Institute of Chartered Accountants of Nepal (ICAN).
• VAT registration certificate.
• Latest tax clearance certificate.
• Detailed information about the proposed audit team, including qualifications and work experience.
• Price proposal with validity, inclusive of VAT.

7. Tentative Time frame

The audit should cover locally incurred costs related to the time frame of July 17, 2023, to July 15, 2024. This audit assignment is scheduled to start on August 2, 2024, covering 49 actual working days. This time frame accounts for public holidays, weekends, waiting for management responses, and other contingencies. It also includes the preparation of the management letter, the debriefing meeting, and the final report submission.

8. Access to Facilities and Documents

The financial systems are partly automated in FAMAS (Financial and Management Accounting System).

• The auditor will have full and complete access at any time to all records and documents (including books of account, legal agreements, minutes of committee meetings, bank records, invoices, and contracts, etc.) and all employees of the entity.
• The auditor will have a right of access to banks and depositories, consultants, contractors, and other persons or firms engaged by the program management over the period under audit review.

9. EOI Submission Details

Interested and eligible audit firms must submit their technical and financial details in a sealed envelope within the deadline, along with the required documents mentioned above, to the address below or via email to vacancy@rwua.org by 5 PM on August 2, 2024. RWUA, Haripur, Sarlahi reserves the right to reject any submission without providing reasons. Any attempt to influence the decision will result in automatic disqualification.

Address: RWUA, Haripur -2, Sarlahi

Email: vacancy@rwua.org