TERMS OF REFERENCE (ToR) - Consultancy Service for Budget Analysis and Budget Audit on Mental Health and Psychosocial Disability in Nepal

TERMS OF REFERENCE (ToR)

Consultancy Service for Budget Analysis and Budget Audit on Mental Health and Psychosocial Disability in Nepal

1. Organizational Background

KOSHISH is a national-level organization established in 2008 to promote mental health and psychosocial wellbeing in Nepal. Registered with the District Administration Office, Kathmandu (Reg. No. 086/065) and affiliated with the Social Welfare Council, Nepal (Reg. No. 25676), KOSHISH is recognized as an Organization of Persons with Disabilities (OPD) focused on psychosocial disability. It has been a member organization of the National Federation of the Disabled-Nepal (NFDN) since 2066/07/19 B.S.= 

2. Background of the Assignment

Mental health and psychosocial disability remain critically under-prioritized in Nepal’s public financing despite their recognition as public health, development, and human rights priorities. The federal governance structure offers opportunities for tailored budgeting at federal, provincial, and local levels. However, there is limited systematic evidence on budget adequacy, allocation, utilization, efficiency, transparency, and accountability for mental health and psychosocial support services. 

KOSHISH seeks to generate robust evidence through a comprehensive budget analysis and audit covering the Federal Government, Bagmati Province, Koshi Province, Gandaki Province, and selected local governments over the last three fiscal years.

Selected Local Governments: Biratnagar Metropolitan City (Morang), Pokhara Metropolitan City (Kaski), Hetauda Sub-Metropolitan City (Makawanpur), Godawari Municipality (Lalitpur).

3. Purpose of the Assignment

To conduct a detailed budget analysis and audit of public financing for mental health and psychosocial disability at federal, provincial, and selected local levels. The study will map budget allocations, utilization rates, and the full budget utilization chain over the past three fiscal years and provide actionable recommendations to improve financing, accountability, and service delivery.

4. Objectives

4.1 General Objective

To assess the adequacy, allocation, utilization, efficiency, transparency, and accountability of budgets for mental health and psychosocial disability across government levels over FY 2080/81–2082/83 (or latest available).

4.2 Specific Objectives

• Track and analyze trends in budget allocations for mental health, psychosocial support, disability inclusion, rehabilitation, and related programs.
• Examine expenditure patterns, utilization rates, and variances between approved budgets and actual spending.
• Map the full budget utilization chain (allocation → fund release/transfers → actual expenditure → implementation outcomes).
• Identify financing gaps between policy commitments and actual budget performance.
• Assess efficiency, effectiveness, transparency, and accountability mechanisms.
• Evaluate budget responsiveness to the needs and rights of persons with mental health problems and psychosocial disabilities, especially marginalized groups.
• Provide practical, evidence-based recommendations for strengthening budgeting, execution, monitoring, and intergovernmental coordination.

5. Scope of Work

The consultant/firm will focus primarily on budget allocation, utilization, and the utilization chain over the last three fiscal years, covering:

5.1 Inception Phase

• Inception meeting with KOSHISH.
• Develop detailed methodology, work plan, data collection tools, analytical framework, and stakeholder list.
• Submit Inception Report (including budget codes/program heads to be tracked).

5.2 Document and Literature Review

Review key documents such as:

• National Mental Health Strategy and Action Plan
• Annual Budget Speeches, Red Books, Budget Books
• Provincial and Local Government budget statements, progress reports, financial statements, and Auditor General reports
• Medium-Term Expenditure Frameworks (MTEF)
• Relevant policies (Example; Disability, Disability Right Act, Convention on Rights of Person with Disability, Sustainable Development Goal, Public Health Service Act, health Policy, etc.)

5.3 Budget Analysis and Utilization Chain Tracking (Core Scope)

Federal Level:

• Identify specific budget lines/codes for mental health and psychosocial disability.
• Analyze allocations, revisions, releases, and actual expenditures.
• Track inter-ministerial and intergovernmental fund flows.

Provincial Level (Bagmati, Koshi, Gandaki):

• Provincial budget allocations and priorities.
• Utilization rates and chain (allocation to expenditure).

Local Government Level (4 selected):

• Local budget allocations within health, social protection, and disability sectors.
• Integration into local health plans.
• Detailed tracking of budget execution and service delivery outcomes.

Cross-cutting Analysis:

• Trends over three fiscal years.
• Variance analysis (approved vs. released vs. spent).
• Budget share relative to overall health/social sector spending.
• Bottlenecks in the utilization chain.
• Value for money and results achieved.

5.4 Budget Audit

• Approved budget vs. actual expenditure.
• Efficiency, effectiveness, transparency, and accountability assessment.
• Procurement, monitoring, and reporting issues.
• Community and disability-inclusive accountability mechanisms (especially at local level).

5.5 Stakeholder Consultations

Key informant interviews and consultations with relevant ministries (Health, Finance), planning commissions, local officials, OPDs, service users, and development partners.

5.6 Validation and Finalization

• Present preliminary findings.
• Conduct validation workshop.
• Incorporate feedback and finalize deliverables.

6. Methodology

Mixed-methods approach:

• Quantitative: Budget trend analysis, public expenditure tracking, utilization chain mapping, variance analysis, comparative analysis.
• Qualitative: Document review, key informant interviews, case studies from local governments.
• Analytical framework - based on Adequacy, Equity, Efficiency, Effectiveness, Transparency, Accountability, Participation, and Rights-based Responsiveness.

7. Deliverables

i. Inception Report (including detailed methodology and budget tracking framework) 

ii. Data Collection Tools and Budget Database 

iii. Preliminary Findings Presentation 

iv. Draft Report 

v. Validation Workshop Report 

vi. Final Budget Analysis and Audit Report (structured with executive summary, level-wise analysis, comparative findings, utilization chain maps/tables, recommendations) and Power Point Presentation

vii. Policy Brief (4–6 pages)

viii. Annexes: Raw data, budget tables, utilization chain diagrams

Note: The Final Report, Policy Brief, Executive Summary, and Presentations are required in both Nepali and English. Other deliverables, such as the database and technical annexes, should incorporate bilingual elements as deemed relevant for enhanced clarity and usability. All outputs are the sole property of KOSHISH and necessitate prior approval for usage.

8. Duration of Assignment and Reporting

The assignment shall be completed within 8 weeks from the date of contract signing. The consultant will work in close coordination with Executive Director of KOSHISH.

9. Required qualification and expertise for consultancy 

• Firm/Individuals with minimum 10 years’ experience in health system, public finance, budget analysis, and social sector studies in Nepal.
• Multidisciplinary team including:
  • Public Finance and Health System Expert: Master's + 10 years
  • Research/Data Expert: Master's + 5 years
  • Sector Specialist (Desirable): Mental Health/Disability 
• Proven track record of similar assignments (samples required).
• Proficiency in English and Nepali.

10. Payment

Payment Schedule: 30% on Inception Report, 30% on Draft Report, 40% on Final Report (upon approval).

11. Proposal Requirements

Interested consultants (individuals) or firms are requested to submit the following documents:

• Technical Proposal (Maximum 10-15 Pages) 
• Financial Proposal (submitted separately) 
• Updated CVs of proposed team members (maximum 3–4 pages per CV)
• Company registration documents (for firms) 
• PAN/VAT registration certificate 
• Evidence of similar work experience

The proposal should reach the address below either by courier or hand delivery by 24th July, 2026, before COB. Please enclose “Consultancy Service for Budget Analysis and Budget Audit on Mental Health and Psychosocial Disability in Nepal” in a sealed envelope and drop it at the following address: KOSHISH Central Office, Balkhu, Kathmandu

Note:

1. KOSHISH promotes equal opportunities and encourages applications from qualified women, persons with disabilities, and individuals from marginalized communities.
2. KOSHISH is committed to ensuring the safety, dignity, and well-being of all individuals and maintains zero tolerance for sexual exploitation, abuse, harassment, or any other form of harm. All shortlisted candidates should be required to comply with KOSHISH’s Safeguarding Policy and Code of Conduct and will undergo appropriate safeguarding checks.
3. KOSHISH reserves the right to accept or reject any or all proposals without assigning any reason.