Terms of Reference (TOR) for P8003 - NEPCON Project Audit

Integrated Community Development Campaign (ICDC) Nepal

Terms of Reference (TOR) for P8003 - NEPCON Project Audit

Background

Karl Kübel Stiftung für Kind und Familie (KKS), Integrated Community Development Campaign (ICDC) and National Environment and Equity Development Society Nepal are implementing a consortium project "Improving the living conditions of disadvantaged Dalit, Janajati and Tharu households in the districts of Dhading and Kanchapur, Nepal. (P8003 - NEPCON)".

The project aims to strengthen 803 families - especially women and children from 27 communities/villages in the districts-of Kanchanpur and Dhading - socio-economically through inclusive and gender-equitable integration, prevention and employment measures, to be more effectively protected against poverty and marginalization and to be better prepared for natural disasters through inclusive disaster risk reduction management. The project peruses a gender-inclusive approach in the components of women's business start-ups, employment and labour market integration, capacity building at village, school and farmers association level by means of equal self-empowerment and networking, as well as water - sanitation and hygiene (WASH), child protection/ education, disaster risk reduction and advocacy.

Scope of Work

1. The Project Audit is to be done for Karl Kuebel Stiftung (KKS) Germany, for its consortium project ‘’Promoting gender-equitable and inclusive socio-economic living conditions for disadvantaged families in the districts of Dhading and Kanchanpur, Nepal project’’, (NEPCON - P8003) being implemented by the Nepal partners Integrated Community Development Campaign (ICDC) Nepal, Dhading & National Environment and Equity Development Society (NEEDS) Nepal, Kanchanpur. The project duration is 42 months, starting from July 2024 to till the December of 2027
2. The Project Audit should be performed in accordance with this Terms of Reference (ToR) following the standards and practices applicable to Project Audit
3. Project audit shall cover the areas of financial management, systems and processes and transactions which includes inter alia:
   1. Incomes, expenditures, assets and liabilities
   2. Expenditure authorization and procurement system and procedure
   3. Compliance of prevailing laws, agreement terms, Project partners Rules and Regulations, and procedures 
   4. Compliance of applicable Financial Reporting Standards
   5. Bank reconciliation
   6. Review of Project Control System and practices including safeguarding of assets
   7. Review of budget and plans vs actual results
   8. Any other relevant matter as determined by the project
4. The Project audit should cover the checking system, process and procedures, transactions are also to be checked on sample basis.
5. Project sites in both of the project districts are to be visited and audited for financial control and compliances.
6. An Audit Plan on how the above will be carried out shall be prepared and submitted to ICDC Nepal and NEEDS Nepal for approval before starting Project audit. The audit plan should be based on the assessment of the risks in all the areas of the project to be covered by the project audit. Such a plan should state, among others, audit areas to be covered, time frame, audit team members involved to carry out specific activities.
7. Yearly Project Audit is required to be performed after the end of every English calendar covering period of January to December.
8. The Project audit of ICDC Nepal project accounts, NEEDS Nepal project accounts as well as the entire P8003 – NEPCON project audit are to be done and prepare separate audit reports accordingly. 
9. The Project audit’s first draft report shall be shared with the project holders (ICDC & NEEDS) for comments and responses which then shall be shared with the KKS for comments & finalization. 
10. The Project audit will attempt to resolve any audit related issues immediately and mention in notes to management as part of the report.
11. The Project audit must ensure all observed audit related issues are addressed and/or resolved by the Management/s with a time-bound action plan.
12. The scope of activities can be altered or changed as felt necessary by the KKS and project partners (ICDC & NEEDS) in consultation with the Project Auditor.
13. On behalf of the consortium project P8003 – NEPCON, ICDC Nepal will facilitate the audit process and communicate representing ICDC Nepal and NEEDS Nepal.
14. Total budget of the project for entire project period is EURO 8,48000.00. And a tentative of EURO 2,15,242, EURO 2,62,681, EURO 2,24,866 and EURO 1,45,211 is allocated for the 4 years respectively from 2024 onwards. The current base exchange rate is set to €1 = NPR 144
15. The maximum total budget available for entire project audit (4 years) is EURO 4800 (four thousand eight hundred Euro) only.
16. The selected Audit firm is responsible to send hard copies of the final audit report to the headquarters of Karl Kuebel Stifting, Germany, and therefore requires covering required currier charge for the same.
17. The project sites are located at Ward – 1, Galchhi Rural Municipality of Dhading District, Bagmati Province Nepal and Ward – 5 & 9 of Belauri Municipality of Kanchanpur District, Sudurpaschim Province of Nepal
18. Detailed specifications will be provided with the contract paper.

Please submit financial and technical proposal separately including the following documents:

• A technical proposal including
  • Description of how your skills and experience match the TOR requirements,
  • Proposed methodology
• A financial proposal: should include a detailed budget sheet with breakdowns
• CV of principal auditor who would be responsible for signing the report along with Managers, Supervisors and key personnel proposed as part of the audit team

Other mandatory documents (if not provided earlier)

• Profile of the consultancy firm
• Certificate of Practice (COP) with renewal
• FIRM Registration Certificate in ICAN
• Company Registration Certificate and VAT registration certificate
• Latest Tax clearance certificate

Interested audit firms may submit an application/letter of interest, technical and financial proposal with detail cost breakdown including all legal documents and certificates. The application can be send to icdc.vacancy@gmail.com on or before 17:00 hrs. 27 January 2025. All received proposals shall be reviewed based on the understanding of the assignment, methodology, experience of the firm and team, composition of the team including budget planning.

Note:

Please submit a signed and stamped self-declaration form that company doesn't have any conflict of interest and independent with any other firms/company/group and employee of ICDC & NEEDS Nepal.