Terms of Reference (ToR) for Statutory Audit – FY 2081/082

Everest Club, Dailekh

Terms of Reference (ToR) for Statutory Audit – FY 2081/082

Introduction

Everest Club (EC), Dailekh, is a non-profit, non-governmental organization established in 1993 A.D. and registered with the District Administration Office (DAO), Dailekh. It is affiliated with the Social Welfare Council (SWC) and associated with several national and provincial networks focused on integrated and sustainable development. EC is committed to improving the lives of marginalized communities in Karnali Province through programs in:

• Food Security and Livelihoods: 
• Gender Equality, Disability and Social Inclusion (GEDSI)
• Environment and Climate Resilience
• Education, Health and Nutrition
• Safeguarding and Protection

Everest Club maintains partnerships with national and international development agencies such as Save the Children, CBM Global Nepal, CARE Nepal, iDE Nepal, SNV Nepal, NCE Nepal and local governments.

To ensure transparency, accountability, and compliance with applicable laws and donor requirements, EC intends to conduct a Statutory Audit of its financial statements and internal controls for the fiscal year 2081/082 (15 July 2024 – 16 July 2025).

Objectives of the Audit

The overall objective is to conduct an independent statutory audit of Everest Club’s financial statements and internal control systems, in compliance with:

• International Standards on Auditing (ISA), especially ISA 700, ISA 800, and ISA 805
• Nepal Accounting Standards (NAS) / Nepal Financial Reporting Standards (NFRS)
• Rules of the Institute of Chartered Accountants of Nepal (ICAN)
• Income Tax Act 2058, Company Act 2063, and relevant non-profit regulations
• Donor compliance and project-based accounting standards

Specific objectives include:

• To express an audit opinion on the financial statements of Everest Club
• To review the internal control and accounting system in place
• To examine whether the financial statements are prepared fairly in accordance with the applicable financial reporting frameworks
• To assess compliance with donor requirements, EC policies, procurement procedures, labor laws, and SWC provisions
• To verify if previous audit recommendations have been implemented

Scope of Work

The audit shall cover:

• All financial transactions recorded at the EC Head Office, Narayan Municipality–1, Dailekh
• All bank accounts, cash books, ledgers, receipts, and disbursement records
• Assets and liabilities verification, including fixed assets and inventory
• Compliance testing of key financial and procurement processes
• Review of partner/donor reporting, fund utilization, and budget compliance
• Review of statutory tax obligations, including TDS, VAT, SSF, etc.
• Assessment of risk in financial and program implementation

Methodology

The audit will be carried out in accordance with:

• International Standards on Auditing (ISA)
• Nepal Auditing Standards (NAS) issued by ICAN
• Audit Manual and templates aligned with donor reporting standards (where applicable)

The audit shall include:

• Risk-based audit planning
• Testing of internal control systems
• Transaction-level sampling and testing
• Review of relevant policies and procedures
• Discussions with EC staff, and management representation
• Field visit or project visit (if needed and agreed)

Responsibilities

A. Responsibilities of Everest Club:

• Prepare and submit complete financial statements
• Provide trial balance, ledgers, bank statements, receipts, invoices, payroll data, and all relevant documentation
• Provide previous audit reports and management responses
• Cooperate with auditors and facilitate interviews and site access
• Issue Management Representation Letter

B. Responsibilities of the Auditor:

• Conduct the audit professionally, independently, and ethically
• Maintain confidentiality of information
• Present a draft report for management response before finalization
• Submit a final signed audit report and management letter
• Ensure reporting is in both Nepali and English (if requested)

Expected Deliverables

• Independent Statutory Audit Report expressing an opinion on the financial statements as per ISA/NFRS
• Management Letter summarizing key audit findings, risks, and recommendations
• Compliance Review Report (if required by donors or EC)
• Audit Checklist covering financial compliance, procurement, HR, and tax
• Verification of corrective actions from the previous audit
• Final report must be submitted in hard and soft copies within the stipulated timeframe

Auditor Qualifications

The selected audit firm must:

• Be registered with the Institute of Chartered Accountants of Nepal (ICAN)
• Hold a valid Certificate of Practice (COP)
• Have a minimum of 3 years of experience conducting audits of NGOs/INGOs
• Have qualified team members, including a Team Leader who is a Chartered Accountant
• Demonstrate experience in donor-funded projects, with understanding of , EU, UN, and other compliance frameworks

Audit Timeline

• Audit Start Date: 15 August 2025
• Completion Date: 10 September 2025
• Extension: Up to 15 days, subject to written approval

Payment Terms

• 100% of the consultancy/audit fee will be paid upon submission and acceptance of the final audit report and management letter.

Proposal Submission Requirements

Interested and qualified audit firms are invited to submit:

A. Technical Proposal:

• Audit methodology, approach, and work plan
• Understanding of the assignment
• CVs of proposed team members
• Experience in similar assignments

B. Financial Proposal:

• Detailed budget including professional fees, taxes, and out-of-pocket expenses

C. Legal & Administrative Documents:

• Firm Registration Certificate (ICAN)
• Certificate of Practice
• PAN/VAT registration certificate
• Company Registration Certificate
• Tax Clearance Certificate (FY 2080/081)
• Firm profile highlighting experience in the development sector

Click on the link below Annexure Consultancy Proposal Form:

Annexure _Consultancy Proposal Form

Submission Deadline and Address

Proposals must be submitted by: 07 August 2025

Via email to: supplychain@everestclubnepal.org.np

Or in hard copy at:

Everest Club Dailekh

District Office, Narayan Municipality–1, Naya Bazar, Dailekh, Nepal

Contact for Further Information

For queries, please contact:

Tel: +977-089420257 / +977-97858021005 /+977- 9848180234/+977-9848041632

Email: supplychain@everestclubnepal.org.np