EOI for Internal Audit Services FY 2025/26

dZi Foundation:

dZi Foundation is a US-based non-profit organization that partners with rural communities in Nepal to achieve lasting prosperity by addressing barriers to basic needs, creating sustainable livelihood opportunities, and strengthening local capacity for transformational change. Guided by our strategic plan, we continuously adapt to evolving development and policy environments, with a sharpened focus on partnerships, local ownership, and long-term sustainability beyond external investments.

1. Call for Proposals

dZi Foundation/Nepal invites technical and financial proposals from qualified, legally registered Chartered Accountancy (CA) firms in Nepal to conduct a comprehensive Internal Audit (IA) of its Nepal Country Office (NCO) and selected field-level partner programs for the fiscal period July 17, 2025 – July 16, 2026 (FY 2082/83).

2. Specific Objectives & Scope

The primary objective of the internal audit is to provide independent, objective assurance and risk-consulting insights designed to add value, improve operations, and safeguard institutional assets. The internal audit will evaluate whether dZi’s risk management, internal governance, and control processes are operating effectively. The scope includes, but is not limited to:

A. Operational, Administrative & Financial Controls

• Policy Alignment: Assess adherence to dZi’s Global and National Finance, Procurement, Human Resources, and Administrative Manuals. 
• Value for Money (VFM): Review procurement cycles, vendor selection, price justifications, and asset management processes to ensure economy, efficiency, and effectiveness. 
• Human Resources & Payroll: Review time-sheet allocations, payroll processing, benefit administration, and compliance with the Labor Act, 2074.
• Partner Risk Management: Evaluate the financial management capacities, monitoring frameworks, and reporting accuracy of local NGO implementing partners in rural project locations.

B. AML/CFT & Preventive Compliance

• Vetting Effectiveness: Audit the continuous execution of "Know Your Customer" (KYC) protocols and mandatory sanction/blacklist screening for all local partners, vendors, consultants, and high-value transactions. 
• Transaction Monitoring: Evaluate internal tracking mechanisms to detect, flag, and report any unusual, high-volume cash transactions or suspicious fund routing in project districts. 
• Capacity Assessment: Review whether local implementing partners have been oriented on and comply with basic AML/CFT risk-mitigation measures.

3. Key Activities & Standards

The selected internal audit firm will perform the following tasks:

• Conduct an initial institutional risk assessment to map out high-exposure financial and operational areas.
• Perform transaction testing, field-level voucher verifications, and physical verification of fixed assets. 
• Field Visits: Conduct mandatory on-site monitoring and field audits of selected partner NGOs in dZi’s five project districts (in Sunsari, Saptari, Udaypur, Sindhuli and Khotang) to verify community-level delivery and asset placement. 
• Identify control gaps, systemic bottlenecks, or non-compliance trends, and co-create pragmatic remediation plans with management. 
• Standards: The assignment must be executed in accordance with the Nepal Standards on Internal Auditing (NSIA) issued by ICAN and the International Professional Practices Framework (IPPF) promulgated by the Institute of Internal Auditors (IIA).

4. Deliverables

1. Internal Audit Inception Report: Outlining the risk-based audit universe, sampling methodology, field-visit schedules, and tailored toolsets. 
2. Draft Internal Audit Report & Risk Matrix: Highlighting detailed findings, graded risk levels (High/Medium/Low), root-cause analysis, and preliminary management responses. 
3. Final Internal Audit Report: A comprehensive final report incorporating management’s action plans, implementation timelines, and designated focal points for tracking future compliance.

5. Timeline and Duration

The internal audit is expected to be conducted within 25 working days between August 5, 2026, and September 5, 2026, running in close coordination with management to ensure findings can inform and streamline the upcoming year-end statutory processes. The final report must be submitted by September 12, 2026.

6. Minimum Qualifications of the Firm

Mandatory Requirement: The firm must possess a valid Certificate of Practice (COP) from the Institute of Chartered Accountants of Nepal (ICAN). 

• Experience: Minimum of 7 years of professional experience in internal auditing, risk advisory, or systems review within the INGO/NGO sector in Nepal.
• Regulatory & Operational Insight: Deep familiarity with Social Welfare Council (SWC) directives, GoN tax laws, and risk-management principles specific to remote-area community development operations. 
• AML/CFT Capability: Proven track record of evaluating internal control components against Asset Laundering Prevention guidelines. 
• Track Record: Successfully completed at least 10 (10) internal audit assignments or comprehensive risk-assessment consultancies for INGOs within the last 5 years.
• Field Mobilization: Demonstrated capacity, logistics, and willingness of the core field team to travel to and work in remote rural communities. 

7. Evaluation Criteria

Proposals will be evaluated based on a cumulative scoring matrix:

8. Submission Guidelines

Interested and eligible CA firms should submit their Expression of Interest (EOI) pack containing:

• Cover Letter signed by an authorized partner/principal. 
• Technical & Financial Proposal (Combined, maximum of 10 pages). 
• Firm Registration Documents: Firm registration certificate, valid ICAN renewal certificate, VAT registration, and Tax Clearance Certificate for FY 2081/82. 
• CVs of the Audit Team: Detailed profiles of the Engagement Partner, Lead Team Leader, and Field Seniors assigned to this exercise. 
• References: Minimum of 3 reference/completion certificates for similar internal audit engagements.

Submission Details:

• Email: procurement.np@dzi.org
• Subject Line: EOI for Internal Audit Services FY 2082/83
• Deadline: On or before July 19, 2026
• File Size Limit: Submissions must not exceed 10 MB. 

Note: Telephone inquiries will not be entertained. Canvassing at any stage will result in automatic disqualification. dZi Foundation reserves the right to accept or reject any or all proposals without assigning any reason whatsoever.