Terms of Reference (ToR) for Consultant for financial assessment & audit of the KAFCOL building construction

Terms of Reference (ToR)

for

Consultant for financial assessment & audit of the KAFCOL building construction

1. Background and Overview 

Kathmandu Forestry College Public Ltd (KAFCOL) is a vibrant and growing academic institution located in Matatirtha, Kathmandu, that has been running Diploma in Forestry, B.Sc. in Forestry, M.Sc. in NRM-RD and M.Sc. in UNIGIS programs since its establishment in 2006. KAFCOL has evolved into one of the best providers of forestry education in the country. 

KAFCOL constructed an educational building in Matatirtha, along with its associated infrastructure, through a contract. The company “Himdung & Thokar Construction Pvt. Ltd.” as the contractor for this project, and the contractor successfully completed the assigned tasks.

Additional incidental expenses related to this building.

2. Objectives 

The primary objective of the consultancy is to perform a financial assessment and audit of the building, which was constructed at a cost of NPR 11,36,94,084 (as per the agreement). The objective is to ensure that the work aligns with agreed-upon standards and cost. The assessment includes evaluating competitive and transparent processes and effective utilization of funds in accordance with KAFCOL’s requirements, applicable standards, and best practices, as well as ensuring the measurement of BOQ as provided by the building contractor.

3. Scope of Work 

The scope of work are as follows:

• Conduct a comprehensive review of all financial transactions related to the building construction.
• Assess the procurement process and ensure compliance with all tasks assigned to the contractor.
• Evaluating competitive and transparent process and effective utilization of fund.
• Ensuring that the completed work adheres to the agreed-upon standards and cost between KAFCOL and the contractor.
• Assess the decision-making process and ensure compliance with the resulting actions.
• Coordinate with technical engineers to accurately measure the bill of quantities (BOQ) and perform physical verifications as needed.
• Other as necessary during the assessment process.

4. Deliverables:

• Present preliminary draft report to the KAFCOL Audit Committee, and Board of Directors.
• Prepare a detailed financial assessment & audit report, including the findings, and submit it to the Board Chair.

5. Expected Methodology  

The consultant will conduct a desk review, consult with relevant staff, the Board of Directors, the Contractor, Bidders, stakeholders, and perform physical verification. The consultant is responsible for seeking technical assistance from a Technical Engineer to ensure accurate measurement of the Bill of Quantities (BOQ) and physical verification when necessary. Additionally, the proposed cost should include the expenses related to the technical engineer. The KAFCOL management is responsible for furnishing the consultant with invoices related to building constructions, along with the Bill of Quantities (BOQ) received from the contractor for further verification.

6. Timeframe

The timeframe for this assignment will be one month from date of signing the contract. However, the specific timeline will be mutually agreed upon, considering work volume and accessibility during the contract signing process.

7. Coordination

The consultant will liaise directly with the KAFCOL Principal and may also coordinate with the Finance Officer, Audit Committee, and Board Chair to carry out the assignment.

8. Consultancy Payment Modality

Payment of the fee will occur upon completion of the assignment and receipt of the final report by the company.

9. Consultant’s Profile

The consultant will be a qualified individual or firm, holding professional certifications such as CA or ACCA or CPA. Preferable additional master’s degree in management, and a minimum of 5 years of experience in the financial assessment and audit field.

10. Proposal Evaluation Criteria

Proposals will be evaluated based on consultant’s profile (expertise and experience) and proposed cost/fee. KAFCOL will establish detail selection criteria before start of the evaluation process.

11. Application Instructions and require documents

Interested individual consultant firms/ who meet the above requirement should send their updated resume/profile, cover letter justifying his/her eligibility for the stated consultancy service along with expected consultancy service charge/fee, a copy of registration certificates, PAN/VAT to the Principal by email (jhamak.karki@kafcol.edu.np) by 11th August 2024 midnight (12:00 PM).

Following the review of the proposal, only short-listed individuals or firms will be contacted. Please be aware that KAFCOL retains the right to reject any proposal. KAFCOL reserves the right to any intellectual property created or obtained during the consultancy assignment.