REQUEST FOR PROPOSAL FOR ANNUAL AUDIT SERVICES

REQUEST FOR PROPOSAL FOR ANNUAL AUDIT SERVICES

1. Background:

PHASE Nepal is a non-governmental, non-profit, non-political and non-religious organization working across eight districts of Nepal – Bajura, Humla, Mugu, Jajarkot Gorkha, Kathmandu, Taplejung and Sindhupalchok. PHASE believes that poor health, low educational levels and poverty are aspects of the same problem and create a cycle that prevents people from taking control of their own futures.

Among several others, PHASE Nepal has been implementing different projects in the above eight different districts.

2. Purpose and objectives of the Audit: 

The overall purpose of this assignment is to give an independent and fair view of all income received and cost incurred during the fiscal year 2082-83(July 17, 2025 to July 16, 2026) are in accordance with the relevant policies of PHASE Nepal, rules and regulation of Government of Nepal. Financial Statements and reports of PHASE Nepal are prepared in accordance with the Generally Accepted Accounting Principles (GAAP) and Nepal Accounting Standards (NAS).

3. Scope of the Audit:

PHASE Nepal is seeking an independent chartered accounting firm to audit the financial statement and books of account for the period of July 17, 2025 to July 16 2026 for all its income, expenditures occurred during the projects implementation in Nepal.

4. Audit Methodology:

In order to present the true and fair view on the financial statement/reports the auditor shall conduct accuracy checks, observations, inspection of records and document, field verifications and interviewing the beneficiaries, inquiry and analysis, recommendation, comparison, including:

• Visit head office/ field office and review vouchers, invoices and all supporting documents for all the amount expensed and income receipt.
• Review staff, rental, and another relevant contract.
• Review of payroll and tax compliance.
• Review the beneficiary's policies and compliances.
• Review the inventory list in central and field offices.

5. Procedure:

After the completion of the selection process, the selected auditor/audit team will start the audit process passing through the following major phases:

A. Inception/planning phase: The auditor should propose the plan and share how the auditing will go on, how the audit will be started, in which time frame, the audit will be completed and share the detail plan of auditing.

B. Auditing: 

• The auditor must audit the financial transactions of PHASE Nepal for the fiscal year 2082-83 (July 17, 2025 to July 16, 2026).
• The total budget for this fiscal year 82/83 is around NPR 10 crore for the given period.
• Preliminary discussion on findings with PHASE Nepal and its Management.
• Preparation of draft report and issue the draft report for management comment on agreed timeline.
• Receipt of Final Management Comments from PHASE Nepal.
• Finalize the Management letters: PHASE Nepal and auditors. 
• Finalization of report and issue final audit report with certified statements and a management letter for the mentioned period.
• Submit signed final audit report.

C. Final Reporting: The tentative date for submission of the final report is September 15, 2026.

6. Auditor Independence and Qualification:

The auditor must be completely impartial and independent from all aspects of management or financial interests in the entity being audited. The auditor should not, during the period covered by the audit nor during the undertaking of the audit, be employed by, serve as director for, or have any financial or close business relationships with any senior participant in the management of PHASE Nepal. The auditor should disclose any relationship that might possibly compromise his/her independence.

The audit firm/engagement partner must be a Chartered Accountant and registered with the Institute of Chartered Accountant of Nepal (ICAN). The firm must have at least five years of relevant and diversified professional experience in auditing with sizeable portfolio and experience in the audit of donor funded project, development sector, NGOs and INGOs. The auditor must employ adequate staff with appropriate professional qualifications and suitable experience with International Standard of Auditing or National standards Chartered Accountants, including experience in auditing the accounts of entities comparable in size to PHASENepal. 

Curriculum vitae (CVs) should be provided to PHASE Nepal by the principal of the audit institution who would be responsible for signing the opinion and key personnel proposed as part of the audit team. CVs should include details on relevant audits carried out by the applicable staff, including ongoing assignments indicating capability and capacity to undertake the audit and experience in auditing financial statements compliant with the Chartered Accountants Standards.

7. Access to Facilities and Documents:

The financial systems are partly automated in FAMAS (Financial and Management Accounting System

• 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.) and all employees of the entity. The auditor will have a right of access to banks and depositories, consultants, contractors and other persons or firms engaged by the program management over the period under the audit review.

8. How to submit the Bid?

Interested and eligible Chartered Accounting Firms must submit their RFP in a sealed envelope or via email procurement@phasenepal.org, clearly marked "RFP for External Audit," by 17:00 hours on September 19, 2025, to:

Submission Address

Practical Help Achieving Self Empowerment (PHASE) Nepal

Suryabinayak-4, Bhaktapur, Nepal,

GPO: 12888, Kathmandu, Nepal,

01-6634038/89

Attachments required:

1.Firm Registration Certificate

2.Latest Tax Clearance Certificate

3.Organization Profile (maximum 3–4 pages)