Request for Proposal (RFP): Statutory Audit Service

Terms of Reference (ToR) for statutory audit service

Background

Child Development Society (CDS-1991) is a Nepalese NGO founded by a group of child and women rights activists, educationists, medical professionals, social workers, and senior civil servants. Since its establishment, CDS has been dedicated to promoting child rights and well-being through initiatives in different thematic areas; education, health, child protection, family empowerment and child centric disaster risk reduction. With a focus on creating a child-friendly and climate-resilient environment, CDS adopts both preventive and curative approaches to support children and families who belongs to vulnerable community. It works closely with parents; especially mothers through community-based programs and strategic partnerships with donors, well-wishers, banks, corporate sectors, I/NGOs, and government agencies. During this fiscal year CDS has implemented the following programs under the various funding agencies.

Objective of the Audit

1. The objective of the audit is to enable the auditors to express an independent professional opinion on the financial position of CDS and to ensure that the funds utilized to CDS’s activities have been used for their intended purposes.
2. To verify that the books of accounts of CDS provide the basis for preparation of the financial statements, that proper records as required by law have been maintained, and that adequate internal controls and supporting documentation for transactions exist.

Scope of the Audit:

• The audit will be carried out in accordance with the Nepal Auditing Standards and will include tests and verification procedures as the auditors think necessary.
• Verify all funds have been used in accordance with the established rules and regulations of CDS and only for the purposes for which the funds were provided.
• Verify that goods, works, and services financed have been procured in line with CDS’s established policies and procedures. 
• Ensure that appropriate supporting documents, records, and books of accounts relating to all activities have been maintained, and that clear linkages exist between accounting records and the financial statements presented.
• Confirm that the financial statements have been prepared in accordance with applicable accounting standards and give a true and fair view of CDS’s financial position.
• Provide a comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions.
• Include in the audit report an opinion on compliance with procedures designed to provide reasonable assurance of detecting misstatements, whether due to error or fraud, that are material to the financial statements.
• Conduct entry and exit meeting.

Audit Duration:

The audit work shall be completed within one and half month from the date of commencement.

Tentative timeline:

16th, July 2025 - 30th August, 2025

Deliverables:

1. Two (2) original copies of the audit report upon completion.
2. A management Letter in accordance with the scope described above.

Qualification of the Audit Firm:

• The auditor must be completely impartial and independent from all aspects of management or financial interests in CDS.
• During the period covered by the audit and the undertaking of the audit, the auditor must not be employed by, serve as a director for, or have any financial or close business relationships with any senior participant in CDS management.
• The auditor must disclose any relationship that might compromise independence.
• The firm/engagement partner must be a Chartered Accountant, registered with the Institute of Chartered Accountants of Nepal (ICAN)
• The firm must have relevant and diversified professional experience in auditing, with a sizeable portfolio and experience in audits of donor-funded projects, development sectors, NGOs, and INGOs.
• Availability of adequately qualified staff and appropriate professional standards of auditing or experience with national-level Chartered Accountants will be highly preferred
• The audit firm must provide CVs of the engagement partner (responsible for signing the opinion) and key personnel proposed for the audit team. CVs should include details of relevant audits conducted by the applicable staff, including current assignments, demonstrating capability and experience in auditing financial statements compliant with Chartered Accountants Standards

Access to Facilities and Documents:

The auditor will have full and complete access at any time to all records and documents (including books of account, legal agreements, minutes of committee meetings, bank records, invoices and contracts etc.)

Submission of Document

Interested and eligible audit firm must submit the RFP (Technical and financial proposal) in a sealed envelope clearly marked with "RFP for External Audit" by 5 pm, 10th July, 2025 to: Child Development Society (CDS), Budhanilkantha 12, Kapan- Kathmandu.

Website: cds.org.np, Ph no: 014820938