Organization Background 

Caritas Nepal was founded in 1990 to respond to the devastating floods and other natural disasters that occurred. Beginning as a 3 member team the agency has grown and expanded their range of services and today operates in 50 of the 77 districts in Nepal. Caritas Nepal aims to apply animation and sector specific participatory approaches to empower the poor, women, marginalized, and disadvantaged people to reduce poverty, secure humanitarian assistance to refugees and in times of emergency and conflict, and realize social justice and peace.

Objective

The objective is to:

• Undertake reviews of financial risk management, controls and governance system.
• Carry out a internal audit to financially review and follow-up on the utilization of funds disbursed to the projects
• Monitor and follow-up of the resources including human and other assets 
• Provide on-the-job capacity building among the people involved in the financial activities 

Scope of Work

The indicative task to be undertaken encompasses such tests and controls as the auditor considers necessary including any visits to the field office and implementing partners. Representative sampling may be used as the auditor considers necessary. Specific terms of reference will be developed and may vary from what is indicated below. 

Specific focus will be on: 

a) Provide Internal Audit reports that include: 

• Implementation of approved work plans 
• iReceipt and expenditure validation for project
• Internal control on management and financial systems 
• Management of human and other assets 
• Implementation of prior period audit recommendations if any 
• Recommendations to the management to address significant internal control weaknesses identified 

b) Operational auditing 

• Review the books of accounts maintained including supporting documents for the expenditure 
• Review financial and cash management systems 
• Review the procurement procedures/ systems in place 
• Conduct verification of tangible and intangible activities 

c) Compliance with Laws and Regulations: The internal audit should review adherence and compliance with the following: 

• Compliance with the project funding agreement 
• Compliance with the statutory obligations 
• Compliance with financial reporting requirements 
• Compliance with other relevant implementation guidelines, and manuals 
• Compliance with own financial guidelines/ procedures 

Roles and responsibilities

a. Consultant will be expected to cover the following areas: 

• Independent financial review of the projects implementing by Caritas Nepal; 
• Review the risk management, governance and internal control system; 
• Raise red flags on any deviation or non-compliance in relation to the project agreement 
• Raise red flags on incidence of fraud; 
• Flag any other potential financial problems up-front; 
• Conduct value for money reviews; 
• Assess and review the effectiveness and efficiency in the usage of the programme assets; 
• Impart financial management capacity and skills among the staffs involved in financial management of the programme. 

b. Caritas Nepal's specific roles and responsibilities 

• Provide access to finance and operation systems, process and policy documentation; 
• Take appropriate strategic decisions as required and in a timely manner to facilitate the delivery of the audit deliverables; 
• Take appropriate steps to ensure access to relevant decision makers; 
• Facilitate travel to field office and implementing partners.

Timeline

• Commencement date: Actual execution of individual assignments is expected to commence in July 2021 for duration of one year. This may be extended depending on the satisfactory performance of the assignments during the previous year and availability of funding. 
• Anticipated services: 15 full day input in a month and total of 180 days in a year 

Deliverables 

Key deliverable:

• Internal audit report on completion of each assignment, which should highlight observed weaknesses in the system of internal control and the recommendations for managing the identified issues over the life of the programme.
• A statement of compliance with donor's code of conduct and terms and conditions as contained in the Funding Agreements.

Qualification and Experience 

Education: 

• Chartered Accountant (additional Master degree in accounting, audit, business administration, commerce would be preferred)

Experience 

• Minimum of 10 years of experience, preferably in auditing and financial management
• At least 4 years of experience in financial management of not-for-profit organization/ Non-Governmental Organization (NGO) is essential.