EXPRESSION OF INTEREST (EOI) FOR EXTERNAL AUDIT ENGAGEMENT

EXPRESSION OF INTEREST (EOI) FOR EXTERNAL AUDIT ENGAGEMENT

ANNUAL AUDIT FOR THE YEAR 2023-2024

Rural Education and Environment Development Centre (REED Nepal) was established in 2000 AD as a Non-Governmental Organisation (NGO) with a motto "quality education is our commitment". It was established to consolidate the Teacher Training Programmes carried out by the Himalayan Trust New Zealand (also known as Hillary Himalayan Trust NZ). REED Nepal has been following the footsteps of Sir Edmund Hillary in the Mount Everest Region and the Himalayan region since its establishment. Currently, it has been working with 800 community schools, 4000 teachers, 88000 children and 80,000 community members across 23 districts of Nepal. 

REED Nepal has been working with a prime focus on education development and environmental sustainability. It adopts a holistic approach for ensuring quality and inclusive education in rural community schools in Nepal and contributes to environment development and sustainability with the principle of collaboration, coordination, and partnership at the local level. The organisation works to strengthen ECED, strengthen school management and governance, capacity enhancement of teachers, provides remedial teaching support and alternative education support, school infrastructural development, supports in mainstreaming Gender Equality, Disability and Social Inclusion (GEDSI), and intervenes in school based DRR. REED Nepal has its funding partnership with Department of Foreign Affairs and Trade (DFAT), Australian Himalayan Foundation (AHF), Himalayan Trust UK (HTUK), Karuna Trust UK, Karuna Deutschland Ev., and BMZ German, Japan Fund for Global Environment (JFGE), Nepal Australian Friendship Association (NAFA), Friends of Himalayan Sherpa People (FHSP), Asian Development Bank (ADB) and Cambridge Hong Kong Operation for International Children’s Education (CHOICE) Hongkong.

The objective of this EOI is to seek an audit firm to audit our financial statements for the year ended Mid July 2023 and express an independent opinion thereon. The audit will be conducted in accordance with applicable accounting standards. In addition, as per Donor requirement, the selected Audit Firm can be selected to do Project-based audit. The selected Audit firm may be applied as External Audit firm for maximum 3 consecutive years.

Scope of audit

The external audit will be conducted in such a manner as the auditors consider necessary to fulfill their responsibilities and will include such tests of transactions and as to the existence, ownership and acquisition of assets and liabilities as considered necessary. Auditors shall obtain an understanding of the control environment, accounting system in order to assess its adequacy as a basis for the preparation of the financial statements and to establish whether appropriate accounting records have been maintained. Auditors are expected to obtain such appropriate evidence as considered sufficient to enable them draw reasonable conclusion therefrom.

The nature and extent of tests will vary according to auditor’s assessment of REED Nepal’s accounting system and the system of internal controls where they wish to place reliance on it and may cover any aspect of the operations that they consider appropriate. As part of normal audit procedures, auditor may ask the management to confirm formally in writing certain matters affecting the financial statements, such as those which are significantly dependent on the judgment of the management. Auditor may also rely upon information or advice given by persons suitably professionally qualified (whether or not employed by us), Banks and other regulated entities.

In order to assist with the examination of financial statements, auditors shall request and sight all documents or statements, which are due to be issued with the financial statements and also visit the field offices.

The responsibility for safeguarding the assets of REED Nepal and for the prevention of fraud, error and non-compliance with law or regulations rests with the Management.

Auditors shall, nevertheless, endeavor to plan audit so that they have a reasonable expectation of detecting material misstatement in the financial statements or accounting records (including those resulting from fraud, error or non-compliance with law or Donor’s Compliances), but examination cannot be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance as may exist.

Once audit report has been issued, the auditors have no further direct responsibility in relation to the financial statements for that financial year.

Volume of Operations and Requirement

The expected expenditure for fiscal year ending Mid July will be about NPR 100 million. We expect the statutory audit to cover among other areas detailed expenditure verification of all the operations with an emphasis on supplier payments (procurement) HR, partner and staff advance management and test compliance with our policies and best practices in all areas of operations. The successful Auditor MUST have 3-5 years’ experience in the audit of Donor funded projects and reporting.

Time-period

Time period for the annual audit assignment will be 45 days from the end of the Fiscal Year, i.e., by August 31, 2023. The Auditors will be provided trial balance, General Ledgers, Bank reconciliations and other related financial documents. The Auditors will be required to provide periodic progress update meeting with REED Nepal Management staff during the audit period. The management also expects the management letter bifurcated for each half of the year.

Applicable law

This engagement shall be governed by and construed in accordance with Nepalese law. The competent court of law in Nepal shall have exclusive jurisdiction in relation to any claim, dispute, or difference with REED Nepal in the engagement and any matter arising from it.

Other Term & Condition

Please address your quotation and profile which must be both in technical and Financial to “Chief Executive Officer” in a sealed and officially stamped envelope marked “quotation for Annual Audit”. Submission will be made into a bidding box at the office of REED Nepal at Jwagal, Lalitpur. Ph: 01-5560108

All submissions must be received on or before close of business on February 10, 2023 (5:00 pm).

REED Nepal reserves the right to accept or reject any or all tenders not meeting the technical and financial proposals.