Consultancy for Statutory Audit and Tax Audit

Title: Consultancy for Statutory Audit and Tax Audit

 Proposal Submission Deadline: 08 April 2019

 Send Proposal to: consultancy_nepal@oxfam.org.uk 

1. Background:

Oxfam GB has been working in Nepal since early 1980. Oxfam works with local partners to build their capacity, to promote sustainable development and to alleviate poverty and suffering. Oxfam’s approach is right-based and supportive on service delivery. The Nepal programme contributes to the South Asia Regional Programme and in turn each region contributes to the broader global programme. Oxfam in Nepal has been implementing its programme in three thematic areas:

•  Gender Justice Programme (GEJ)
• Food and Economic Justice Programme (FEJ)
• Humanitarian and Disaster Risk Reduction and Climate Change Adaptation (HTN DRR/CCA)
• WASH and Water Governance

Oxfam in Nepal is planning to conduct an independent Audit of its financial statement, Tax Audit, certain donor audits and project specific audits. This audit will cover the transactions of Oxfam in Nepal Country Office and its selected programme-implementing partners. Partner NGOs will be selected in the audit planning meeting.

The selected Auditor can be extended for following two year based on the evaluation and mutual agreement.

Statutory Audits:

Statutory Audit for consolidation with HQ: Period Covered April 2018 to March 2019

Tax Audit as required by Income Tax Act: Period Covered July 2018 to June 2019

Location:

Audit procedures will be completed in Oxfam in Nepal country office Jawalakhel. Some of the partners site will be visited as per the samples. Proposed locations of partners: 1 Baitadi, 1 Surkhet, 1 Arghakhachi, 6 Kathmandu, 2 Gorkha, 1 Dhading, 3 Nuwakot, 3 Sindhupalchowk, 1 Makawanpur, 1 Sarlahi, 1 Rautahat. The audit location might vary after discussion with the auditor considering the risk assessment.

2.  Purpose of this Independent Audit

1. Examine the evidence and supporting documents to assess the compliance position as required by Oxfam policies and local laws,

2.    Assess the accounting principles used and evaluate the overall financial   statements presentation,

3.    Assess the risk on programme implementation through partners,

4.    Assess the adequacy and implementation of internal control system.

5.    Examine the follow up action for the earlier audit recommendation.

6.    Produce an independent audit report.

7.    Complete specific audits and provide audit reports within deadlines provided to enable Oxfam in Nepal meet external deadlines

3.         Specific Responsibilities:

 Oxfam in Nepal Management's Responsibilities:

• Oxfam in Nepal Management is responsible for the financial statement.
• Provide Management Letter to the consulting firm,
• Establishing and maintaining the internal controls over financial reporting,
• Complying with Oxfam policies, all applicable laws/regulations, accounting standards
• Provide full support and all relevant information and documents to the persons involved in the proposed audit process and

Consulting Firm’s Responsibilities: 

Information gathered during the audit process be treated as strictly confidential and should not be divulged to anybody without permission from competent authority of Oxfam unless required legally. 

Oxfam in Nepal office time is 9 am to 5 pm and weekend days are Saturday and Sunday. The proposed audit process needs to be planned within this timetable. 

The consulting firm shall be responsible to express an opinion on the audited financial statement based on their findings and is not limited to the following:

• Planning, scheduling and staffing,
• Provide client’s checklist,
• Conduct audit in accordance with the international auditing standards and Nepal Audit Standards,
• Perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement,
• Submit a preliminary audit report to the Oxfam in Nepal Management within the scheduled period,
• Upon receiving the preliminary report along with management response, submit a final
• Audit report.
• Assist the management team in filing the income tax return as required by Income Tax Act 2058.
• Verify that expenses incurred below mentioned criteria of eligibility: 

1. Costs are actually incurred, identifiable and verifiable
2. Expense incurred in compliance with the applicable laws, donor requirements, accounting standards, organization policies
3.  Cost incurred within       the fiscal year respective to statutory and tax audit
4. Expense incurred is within permissible limit by the budget and in line with program objectives
5. Expense incurred appropriately recorded in books of accounts of Oxfam and its implementing partners
6. Expenses are charged to correct account codes and budget lines

5.         Expected Outputs:

       i      The consulting firm will submit an independent audit report and management report containing audit findings for the period ended 31 March 2019 to Oxfam in Nepal along with the management comments, if any.

    ii     An independent audit report for the tax period audited July 2018- July 2019 along with the management comments

     iii        Income tax return for fiscal year 2075-76 filed timely as required by the Income Tax Act

     iv    Audit report to separately include statement of expenditures of OHK BER, CS(NPLB80/NPLB40)- R08233 – Period : 1 April 2018 to 31 March 2019

·   The partner involved in this independent audit are required to have a membership and certificate of practice issued by Institute of Chartered Accountants of Nepal (ICAN)  

·     At least 5 years of practicing experience in undertaking similar assurance service in international organizations.

·  Audit Team Leader having membership with recognized accounting institution.

·      Audit firm with capacity to deploy adequate staff for timely completion of assignment.

7.         Duration of the Contract:

Duration of the assignment will be tentatively from 14 May 2019 to 31 August 2019.

8.         Mode of Payment:

Payments for the assignment will be made on:

50% of consultancy fee along with out of pocket expenses after submission of audit report for period ending 31 March 2019 (Statutory Audit).

Remaining 50% of consultancy fee along with out of pocket expenses after submission of audit report for period ending July 2019 (Tax Audit).

9. Budget:

The tentative figure for the budget with details budget break down is as follow: