EOI for Statutory Audit 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 Consultancy:

dZi Foundation/ Nepal invites technical and financial proposals from qualified, legally registered Chartered Accountancy (CA) firms in Nepal to conduct the Statutory Audit (SA) of its Nepal Country Office (NCO) for the fiscal period July 17, 2025- July 16, 2026 (FY 2082/83).

2) Specific objectives:

The primary objective is to provide an independent professional opinion on the financial position of dZi Foundation Nepal and to ensure strict adherence to regulatory, contractual, and internal control frameworks. The audit scope includes, but is not limited to:

A. Financial & Operational Compliance

• System Integrity: Assess the effectiveness of financial accounting, monitoring, internal controls, and reporting systems against dZi’s Global and National Finance Manuals.
• Resource Utilization: Verify that disbursements match approved budgets, Project Agreements (PA), and General Agreements (GA) signed with the Social Welfare Council (SWC).
• Asset Management: Review procurement, tracking, utilization, and disposal processes of non-expendable equipment/assets.
• Tax Compliance: Verify compliance with the Income Tax Act, 2058 (including accurate TDS deduction, VAT/Reverse VAT management, and timely filing).

B. AML/CFT & Regulatory Compliance

• Asset Laundering Prevention: Review institutional compliance with Nepal’s Asset Laundering Prevention Act, 2064 and prevailing SWC AML/CFT directives.
• Partner Due Diligence: Assess the "Know Your Customer" (KYC) policies and vetting procedures applied to local NGO implementing partners, vendors, and consultants.
• Fund Flow Verification: Trace banking channels to ensure that cross-border and local fund transfers strictly comply with Nepal Rastra Bank (NRB) and SWC guidelines, ensuring no exposure to terrorist financing or restricted entities.

3) Activities:

The selected audit firm will perform the following tasks:

• Engage with relevant units and stakeholders to collect necessary financial and operational data.
• Conduct risk-based transaction testing on accounts, ledgers, and supporting documentation.
• Review implementing partners' audited financial reports and financial management capacities.
• Evaluate internal control mechanisms and provide actionable mitigation strategies for identified financial risks.
• Standards: The audit must be conducted in accordance with Nepal Standards on Auditing (NSA) issued by the Institute of Chartered Accountants of Nepal (ICAN) and International Standards on Auditing (ISA) where local standards require supplementary guidance.

4) Deliverables

1. Inception Report: Outlining the detailed audit methodology, risk assessment framework, and work plan.
2. Draft Audit Report & Management Letter: Highlighting preliminary financial findings, internal control gaps (including AML/CFT observations), and management responses.
3. Final Audited Financial Statements & Management Letter: Three (3) hard copies and a digital copy of the final report, complete with the auditor's formal opinion and actionable recommendations.

5) Duration of the Consultancy:

The assignment is expected to be completed within 30 working days between August 1, 2026, and September 10, 2026. The final report must be submitted no later than September 15, 2026.

6) Minimum Qualification 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 10 years of professional auditing experience in Nepal, with a proven track record of auditing international non-governmental organizations (INGOs).
• Regulatory Knowledge: Strong working knowledge of GoN policies, SWC compliance guidelines (GA/PA processes), and the Labor Act, 2074.
• AML/CFT Expertise: Demonstrated experience evaluating Anti-Money Laundering and Countering Financing of Terrorism frameworks within the non-profit sector.
• Track Record: Successfully completed at least ten (10) similar INGO statutory audit assignments in the last 5 years.
• Logistical Readiness: Adequate professional staff capacity and willingness to travel to project districts if field verification is required.

7) Evaluation Factors:

Proposals will be evaluated based on a cumulative scoring matrix:

8) Submission of EOI

Interested Nepali CA firms must submit their Expression of Interest (EOI) including:

• Cover Letter signed by an authorized principal.
• Technical & Financial Proposal (Combined, maximum of 10 pages, excluding annexes).
• Firm Registration Documents: Firm registration certificate, ICAN renewal certificate, VAT registration, and Tax Clearance Certificate for FY 2081/82.
• Team Profiles: Updated CVs of the proposed engagement partner, audit manager, and field seniors.
• Proof of Experience: Reference letters or completion certificates for 3 similar INGO assignments.

Submission Details:

Email: procurement.np@dzi.org

Subject Line: EOI for Statutory Audit 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 of the process will lead to automatic disqualification. dZi Foundation reserves the right to accept or reject any or all proposals without assigning any reason whatsoever.