Sunrise Children’s Association Inc. (SCAI) Australia
Terms of Reference
Statutory Audit-Fiscal Year 2021/22
Sunrise Children’s Association Inc. (SCAI) Australia invites proposals with a quotation for remuneration for the statutory audit of financial expenditure and reports of SCAI Australia (Nepal office) for the year of FY2021-22 (July-June). Interested audit firms agreeing to the following Terms of Reference may submit their sealed proposal and quotation within the deadline stated.
Audit firm must be registered and shall have valid renewal document with the concerned government departments/offices of Nepal.
2. Description of audit work
Total budget to be audited for FY2021-22 is expected to be around NPR 23,573,477 (tentative as per April 2022 financial reports). This includes INGO expenditure and transfers to its implementing NGO partners. The audit team is required to conduct its audit work at SCAI’s office located at Bhatbhateni, Kathmandu, its NGO partner contact offices in Kathmandu, Samakhusi for SO Nepal, Golfutar for CSN and Samundratar, Nuwakot field office for RUDEC Nepal as per the decision made by SCAI Australia.
The audit work is to be completed and final report should be submitted to SCAI Australia by 15th August 2022.
3. Scope of audit work
The audit work will include both financial and program compliance matters and review the procedural safeguard on the MOU entered in between NGO and INGOs, policies adopted and Project Agreement agreed by INGO with SWC and entrusted implementation with funding to respective NGOs. Matter related to project structure, human and other resources are beyond the scope of this audit work.
4.Method of audit/verification
The audit will be conducted on random sampling basis followed by review of voucher, bills, documents, reports, personal files, ledger, physical verification, polices and all project related documents of NGO partner for the scrutiny of program and financial compliance. Audit firm needs to propose details of audit process in proposal.
The Auditor is responsible for forming and expressing an opinion on the project financial and programmatic reports/statements in accordance with Nepal Standards on Auditing. Those standards should fully comply with ethical requirements, plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
Quoted amount should be inclusive of all applicable taxes and logistic costs. SCAI will not pay anything in addition to audit fee quoted in quotation, unless scope of work is changed and logistics arrangement is affected. If scope of work is changed then SCAI will pay additional expenses on mutual agreement.
7.Management meeting and reporting
After the completion of preliminary audit work, the audit firm needs to present management issues and queries to SCAI, then to the management team of implementing NGOs in the presence of INGO representatives. The NGO’s will be given up to 7 days to respond. The auditor will then compile the final report based on NGO’s response within 7 days of the NGO’s deadline, regardless of whether the NGO has responded in full or not.
SCAI will make final payment of audit work upon the submission of completed report with management recommendation along with valid bill within the stipulated deadline as mentioned above for audit works. If the audit report and management report are submitted late, the following penalties will apply: 2% deduction of fees for first 7 days (5pm 22nd August), 5% from 8 to 15 days (5pm 29th August) and 50% beyond 15 days.
9.The interested audit firm shall submit their proposal with quotation to SCAI Australia country office, Kathmandu by 5pm 10th June 2022(or can send via mail to firstname.lastname@example.org by the same time.
10.The selected firm will be asked to submit an e-copy of proposal and quotation form that has been submitted as hardcopy.
11.The interested audit firm shall submit their proposal and quotation in line with below template with cover letter duly signed and stamp. The audit firm can add extra specific information if relevant.
SCAI reserves the right to accept or reject proposal of any firms at its own discretion. For any queries please email email@example.com, firstname.lastname@example.org