Consultancy: Independent Audit of Oxfam GB in Nepal

Oxfam in Nepal

Oxfam has been working in Nepal since the early 1980s undertaking various development initiatives addressing the poverty and injustice faced by women and other socially and economically excluded groups. The level of Oxfam's engagement increased substantially after restoration of democracy in 1990 as it became easier for civil society to work in the new political environment. Over the years, Oxfam has worked in partnership with local civil society organisations and the government to promote rural livelihoods, and vulnerable communities' resilience to climatic shocks and disasters. It has also significantly contributed to empowering community people, especially women, to; negotiate with people in power, influence decision making processes, claim rights and essential services to which they are entitled, demand accountability on the part of duty bearers and engage larger masses in advocacy efforts. Oxfam also worked closely with UNHCR in providing assistance to Bhutanese refugees during the 1990s. Oxfam and its long term programme partners believe that the underlying structural causes and drivers of poverty must be addressed if improvements in peoples's lives are to be broad and lasting. Poverty is not one-dimensional; nor is it purely local in its causes and solutions. Therefore, Oxfam's work addresses not only material and technical change, but also the related economic, social, institutional and policy changes which are necessary to end poverty and achieve development and wellbeing. The Oxfam Nepal Vision is: The people of Nepal are empowered and work together to attain a life of dignity with justice and equal rights for all. The Overall Nepal Programme Goal is: to improve the well being of vulnerable people through strengthening their participation in development and governance processes and reducing poverty and suffering.

Details / requirements:

Terms of Reference for An Independent Audit of Oxfam GB Nepal Programme

1. Background:

Oxfam GB has been working in Nepal since early 1980. Oxfam works with local partners to build their capacity, to promote sustainable development and to alleviate poverty and suffering. Oxfam’s approach is rights-based and supportive on service delivery. The Nepal programme contributes to the South Asia Regional Programme and in turn each region contributes to the broader global programme. Oxfam GB Nepal has been implementing its programme in four thematic area i.e. Food and Economic Justice, Gender Justice, Humanitarian Programme and Disaster Risk Reduction.

Oxfam GB Nepal is planning to conduct an independent Audit of its financial statement, Tax Audit and project specific audits. This audit will cover the transactions of Oxfam GB Nepal Country Office and its selected programme-implementing partners. Partner NGOs will be selected in the audit planning meeting. Total spending for the Audit period is GBP 18.87 Million, covering 20 districts and 5 District offices.

Statutory Audits:

  • Oxfam in Nepal: Statutory Audit: Period Covered April 2015 to Mar 2016.
  • Oxfam in Nepal: Tax Audit: Period Covered July 2015 to June 2016.

Projects Specific Audits:

  • Project 1: URM-NPLB18-R04111 - Period covered April 2015 to Mar 2016.
  • Project 2: NPLB12- R06053- Period covered April 2015 to Mar 2016.
  • Project 3: NPLB28- R06052- Period covered April 2015 to Mar 2016.

2.  Purpose of this Independent Audit

  • Examine the evidence and supporting documents to assess the compliance position as required by Oxfam policies and local laws,
  • Assess the accounting principles used and evaluate the overall financial statements presentation,
  • Assess the risk on programme implementation through partners,
  • Produce an independent audit report.

3.  Specific Responsibilities:

Oxfam GB Nepal Management's Responsibilities:

  • Oxfam GB Nepal Management is responsible for the financial statement for the specified accounting
  • Management Letter to the consulting firm,
  • Establishing and maintaining the internal controls over financial reporting,
  • Complying with Oxfam policies, the Nepal Government’s taxation laws/regulations,
  • Provide full support and all relevant information and documents to the persons involved in the proposed audit process and
  • Provide Audit Checklist

Consulting Firm’s Responsibilities:

Information gathered during the audit process be treated as strictly confidential and should not be divulged to anybody without permission from competent authority of Oxfam GB.

Oxfam GB Nepal office time is 9 am to 5 pm and weekend days are Saturday and Sunday. The proposed audit process needs to be planned within this timetable.

The consulting firm shall be responsible to express an opinion on the audited financial statement based on their findings and is not limited to the following:

  • Planning, scheduling and staffing,
  • Provide client’s checklist,
  • Conduct audit in accordance with the international auditing standards and Nepal Audit Standards,
  • Perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement,
  • Submit a preliminary audit report to the Oxfam GB Nepal Management within the scheduled period,
  • Upon receiving the preliminary report along with management response, submit a final report.

4. Procedures to verify selected Expenditure

Verification Evidence

When performing the specific procedures the Auditor may apply techniques such as inquiry and analysis, (re)computation, comparison, other clerical accuracy checks, observation, inspection of records and documents, inspection of assets and obtaining confirmations.

The Auditor obtains verification evidence from these procedures to draw up his report as findings. Verification evidence is all information used by the Auditor in arriving at the findings and it includes the information contained in the accounting records underlying the Financial Report and other information (financial and non-financial).

The requirements that relate to verification evidence are:

  • Expenditure should be identifiable, verifiable and recorded in the accounting records of the Beneficiary.
  • Expenditure must be easily identifiable and verifiable and traced to and within the Beneficiary’s accounting and bookkeeping systems.
  • The Beneficiary will allow any external auditor to carry out verifications on the basis of supporting documents for the accounts, accounting documents and any other document relevant to the financing of the Action. The Beneficiary gives access to all documents and databases concerning the technical and financial management of the Action.
  • A list of the types and nature of evidence that the Auditor will often find in expenditure verifications.

Moreover, for the purpose of the procedures as evidence:

  • Must be available in documentary form, whether paper, electronic or other medium (e.g. a written record of a meeting is more reliable than an oral presentation of the matters discussed);
  • Must be available in the form of original documents rather than photocopies or facsimiles;
  • Should preferably be obtained from independent sources outside the entity (an original suppliers invoice or contract is more reliable than an internally approved receipt note);
  • Which is generated internally is more reliable if it has been subject to control and approval;
  • Obtained directly by the Auditor (e.g. inspection of assets) is more reliable than evidence obtained indirectly (e.g. inquiry about the asset).
  • If the Auditor finds that the above criteria for evidence are not sufficiently met, he/she should detail this in the finding

The Auditor verifies, for each expenditure item selected, the eligibility criteria set out below.

(I) Costs actually incurred

The Auditor verifies that the expenditure for a selected item was actually incurred by and pertains to the Beneficiary. For this purpose the Auditor examines supporting documents (e.g. invoices, contracts) and proof of payment. The Auditor also examines proof of work done, goods received or services rendered and he/she verifies the existence of assets if applicable.

(II)  Cut-off - Implementation period

The Auditor verifies that the expenditure for a selected item was incurred during the implementation period of the Action.

(III) Budget

The Auditor verifies that the expenditure for a selected item was indicated in the Action budget.

(IV)  Necessary

The Auditor verifies whether it is plausible that the expenditure for a selected item was necessary for the implementation of the Action and that it had to be incurred for the contracted activities of the Action by examining the nature of the expenditure with supporting documents.

(V) Records

The Auditor verifies that expenditure for a selected item is recorded in the Beneficiary's accounting system and was recorded in accordance with the applicable accounting standards of the country where the Beneficiary is established and the Beneficiary's usual cost accounting practices.

(VI)   Justified

The Auditor verifies that expenditure for a selected item is substantiated by evidence and notably the supporting documents as specified.

(VII)  Valuation

The Auditor verifies that the monetary value of a selected expenditure item agrees with underlying documents (e.g. invoices, salary statements) and that correct exchange rates are used where applicable.

(VIII)  Classification

The Auditor examines the nature of the expenditure for a selected item and verifies that the expenditure item has been classified under the correct (sub) heading of the Financial Report.

(IX)  Compliance with Procurement, Nationality and Origin Rules

Where applicable the Auditor examines which procurement, nationality and origin rules apply for a certain expenditure (sub) heading, a class of expenditure items or an expenditure item. The Auditor verifies whether the expenditure was incurred in accordance with such rules by examining the underlying documents of the procurement and purchase process. Where the Auditor finds issues of non-compliance with procurement rules, he/she reports the nature of such events as well as their financial impact in terms of ineligible expenditure. When examining procurement documentation the Auditor takes into account the risk indicators associated with procurement.

5. Expected Outputs:

The consulting firm will submit an independent audit report to Oxfam GB Nepal Management along with the management comments, if any.

6. Expertise Required:

The persons involved in this independent audit are required to have a membership in the Institute of Chartered Accountants of Nepal (ICAN) or in International Chartered Accountants Institution and at least 5 years of practicing experience in undertaking similar assurance service in international organizations,

7. Duration of the Contract:

Duration of the assignment will be   15 July 2016 to 31 Aug 2016.

8. Mode of Payment:

Payments for the assignment will be made on a single installment after completion of the assignment and upon receiving of an independent audit report to the satisfaction of Oxfam GB Nepal.

Interested firms are requested to send their proposal clearly mentioning the title of assignment in their email subject line by  July 10,  2016 via mail to recruitment_nepal@oxfam.org.uk

Overview

Category Consulting & Professional Services
Openings 1
Experience Please check details below.
Education Please check details below.
Posted Date 03 Jul, 2016
Apply Before 10 Jul, 2016
City Lalitpur