Expression of Interest (EOI) for Statutory Audit

dZi Foundation/ Nepal

Expression of Interest (EOI) for Statutory Audit FY 2023/24

dZi Foundation:

dZi Foundation is a US-based non-profit organization working with rural communities in Nepal to achieve prosperity by eliminating barriers to basic needs, fostering opportunities for sustainable livelihoods, and building their capacity to catalyze transformational change. dZi adopts a new five-year strategic objective (2024- 2029) guided by past learning, adaptation to the emerging policy and development contexts, and an improved focus on partnership, local ownership, and sustainability beyond external investment to realize the journey to shared prosperity.

1) Call for Consultancy:

dZi Foundation seeks the service of a Chartered Accountancy (CA) firm to conduct a statutory audit (SA) of the Nepal Country Office (NCO) in accordance with the standard/ procedure of audit. The appointment will be for one year, to cover the period from July 17, 2023, to July 15, 2024.

2) Specific objectives:

The overall objective is to provide the assurance of quality and compliance in terms of policy, spending, and reporting to maintain the overall financial integrity of the NCO. The following two components will specifically inform the overall objective of this SA:

i. Audit Scope: the audit of financial transactions of dZi, but is not necessarily limited to, the following:

• Financial accounting, monitoring, and reporting.
• Management systems for recording, documenting, and reporting on resource utilization.
• Equipment use and management; and
• Management structure, including the adequacy of appropriate internal control and record-keeping mechanisms.

ii. Audit Certification: the audit must review, confirm, and certify:

• The disbursements are made in accordance with the activities and budgets,
• The disbursements are supported by adequate documentation.
• The financial reports as fairly and accurately presented.
• An appropriate management structure, internal controls, and record-keeping systems are maintained.
• The procurement, use, control, and disposal of non-expendable equipment are in accordance with the guidelines.

3) Activities:

The SA will carry out the following, but not limited, activities under the assignment:

• Consult with relevant units and stakeholders as necessary.
• Obtain and analyze existing documentation.
• Review the procedures and systems currently in use and relate them to the Finance Manual.
• Perform test –checks on accounts and documents as necessary to obtain reasonable assurance that the financial report is fairly and accurately presented.
• Write the audit report with recommendations for action.

The audit will be conducted in accordance with the following, but not limited to, references in addition to professional judgment:

• Nepal Standards on Auditing (NSA) promulgated by the Institute of Chartered Accountants of Nepal (ICAN).
• The International Standards on Auditing (ISA), namely the standards on auditing promulgated by the International Federation of Accountants for transactions that are not covered/ addressed by local standards.

4) Deliverables:

1. A detailed Inception Report, outlining the methodology and timetable of specified deliverables.
2. Draft report consisting of the management comments.
3. Final report incorporating the feedback from senior management in the draft report.

5) Duration of the Consultancy:

The duration of the consultancy is approximately 60 days between July 17 and September 16, 2024. Preference shall be given to those with a proven track record of completing the assignment within tight deadlines and without compromising the quality of deliverables.

6) Minimum Qualification of the Firm:

• A Nepal-registered Chartered Accountancy Firm with at least 10 years of professional experience in auditing and related work in non-profit sectors. 
• Knowledge of relevant Government of Nepal (GON)’s latest policy, procedure, regulations, and requirements applicable to international non-profit organizations in Nepal, both in terms of technical and financial. 
• Proven experience of the Social Welfare Council (SWC)’s rules and regulations in terms of General Agreement (GA) and Project Agreement (PA) will be highly desirable. 
• Expert knowledge of GON’s anti-money laundering and combating the financing of terrorism (AML/CFT) policies and measures will be preferred.  
• Demonstrated experience in managing similar consultancy with at least 3 similar clients. 
• Excellent analytical, interpersonal, communication, and report-writing skills. 
• Able and willing to travel to the project districts and be flexible in terms of communicating with diverse people, and context.
• Others relevant to efficiently carry out the deliverables, listed above.

7) Evaluation Factors:

1. Technical approach (40 points) – understanding of the approach and proposed methodologies to carry out the assignment in line with the described activities and deliverables.
2. Professional experience of the team (20 points) – educational and professional credentials of the team to be engaged in the assignment.
3. Experience of the firm/organization (10 points) – proven experience of the firm/organization in carrying out similar assignments in the past, client’s satisfaction, and physical and human resources to ensure smooth delivery of the assignment.
4. Costing (30 points) – cost-effectiveness, relevancy, and alignment of the estimated cost with technical deliverables, as outlined in the EOI and in the proposal.

8) Submission of EOI

Interested Nepali citizens/firms meeting the above qualifications can submit their EOI with (1) a cover page, (2) a brief technical and financial proposal, not more than 5 pages, (3) an updated CV of the team leader and members with PAN/VAT certificate, (4) evidence of similar assignment, at least 3, and (5) company profile with tax clearance and certificate, as applicable. Please submit your EOI and required documents electronically to procurement.np@dzi.org by/before June 17, 2024, with EOI for Statutory Audit in the subject line. Please ensure that the attachment should not be larger than 10 MB. Telephone inquiries shall not be entertained. Canvassing will lead to automatic disqualification. Only shortlisted applicants will be invited for further process.

dZi reserves the right to accept or reject any or all proposals without assigning any reason whatsoever.