Assignment Description

TERMS OF REFERENCE (TOR)

Social Audit Consultant / Consulting Firm

Nepal Development Initiative (NEDI)

1. About Nepal Development Initiative (NEDI)

Nepal Development Initiative (NEDI) is a non-profit, non-political, non-governmental organization that has been working in Nepal since 2003. Over the years, we've built our work around research, policy advocacy, capacity building and hands-on implementation of development initiatives, all aimed at making development more inclusive and sustainable.

Our focus spans several interconnected areas: social entrepreneurship and the social and solidarity economy, climate justice, the green and circular economy, responsible business and CSR, inclusive economic transformation, financing for development, SDGs and inequality, and capacity building, mentoring and incubation.

2. About the Project

This Social Audit covers Promotion of Social Entrepreneurship (Project No. NEDI/SE/2025-28/06), the sub-project through which NEDI implements its wider initiative, “Acting Against Sexual Exploitation, Trafficking of Humans and Atrocity in Nepal,” supported by Good Shepherd International Foundation Nepal (GSIF Nepal). It runs from 17 July 2025 to 16 July 2028 and works to reduce vulnerability to trafficking, abuse and exploitation by promoting social entrepreneurship.

Its main thrust is to promote and advocate for social entrepreneurship through research, wider stakeholder engagement, and policy advocacy. This includes a draft bill on social entrepreneurship, an online directory of 200–300 social enterprises, and sustained engagement with at least 30 stakeholders across government, business associations, donors and financial institutions.

A Social Audit is built into the project's own monitoring and evaluation plan and budget, alongside quarterly review meetings and LPAC sessions, as part of GSIF Nepal's transparency and accountability requirements for the project.

This Social Audit is separate from the project's independent financial/donor audit, which the MOU requires to be carried out annually by a qualified chartered or certified public accountant appointed in consultation with GSIF Nepal. This assignment is about social accountability, participation and stakeholder engagement, not a financial statement audit, so a CA/CPA license isn't required.

3. Background to the Assignment

As part of good governance and donor accountability under this project, NEDI is looking for a qualified Social Audit Consultant or Consulting Firm to carry out an annual Social Audit of project implementation.

The audit gives us and GSIF Nepal a chance to check that project activities are being delivered as planned and that resources are being used transparently. It also helps confirm that the people the project is meant to serve, social entrepreneurs, right holders, and duty-bearers, are genuinely being reached and heard.

We want this to be a participatory exercise, grounded in honest conversations and feedback from project stakeholders rather than a desk-only review.

4. Objective of the Consultancy

The core objective is to conduct an annual Social Audit of the Promotion of Social Entrepreneurship project, assessing how transparent, accountable, participatory and responsive its implementation has been.

More specifically, we're asking the consultant to:

• Review progress against the project's stated goal, objectives and indicators.
• Assess the participation and engagement of stakeholders (social entrepreneurs, government agencies, financial institutions, and parliamentarians) in project activities.
• Review the relevance and responsiveness of project activities to the communities and right holders they are meant to reach.
• Assess feedback, complaint and grievance mechanisms in place for project participants.
• Review the inclusion of women, youth and marginalized groups across project activities.
• Review how project results and achievements are documented and supported by evidence.
• Identify good practices, gaps and areas for improvement, with an eye to GSIF Nepal's reporting requirements.
• Provide practical, actionable recommendations for the remainder of the project cycle.

5. Scope of Work

Here's what we expect from the selected consultant or firm:

A. Reviewing Project Documents

Going through relevant project and organizational documents, including:

• The project MOU, cost plan and detailed budget breakdown.
• Quarterly review and LPAC meeting records.
• Project progress and narrative reports submitted to GSIF Nepal.
• Monitoring and evaluation records.
• Feedback and complaint records, where available.
• Any previous audit, assessment or evaluation reports for this project.

B. Talking to Project Stakeholders

Holding consultations with the people closest to this project, which may include:

• NEDI project staff, including the Project Coordinator and Finance Assistant.
• NEDI's Board/Executive Committee.
• Social entrepreneurs engaged through the project.
• Government counterparts (e.g. Inland Revenue Department, Company Registrar's Office, Ministry of Industry).
• Banking and financial institutions consulted on funding instruments.
• Parliamentarians or provincial stakeholders engaged in advocacy activities.
• GSIF Nepal, as the funding partner.

The consultant is free to use whatever mix of interviews, focus group discussions, questionnaires, surveys or other methods works best to get honest, useful input.

C. What We Want Assessed

The Social Audit should look at, where relevant:

• Governance and accountability in project implementation.
• Transparency and information-sharing with stakeholders and GSIF Nepal.
• Stakeholder participation and engagement across project activities.
• Inclusion and accessibility, particularly for women, youth and marginalized groups.
• Relevance and responsiveness of activities to social entrepreneurs and right holders.
• Feedback and grievance mechanisms.
• Progress against project indicators (e.g. draft bill status, enterprises enlisted, stakeholders engaged).
• Use of project resources against the approved budget.
• Sustainability, learning and areas for improvement.

D. Making Sense of It All

• Analyze everything gathered through the document review and stakeholder conversations.
• Pull out the key findings, the good practices as well as the gaps.
• Share preliminary findings with NEDI so we can discuss and validate them together.
• Fold that feedback into the final report.

6. Expected Deliverables

By the end of each round, we'd expect the following from the consultant or firm:

1. A brief Inception Note outlining the proposed methodology, tools and schedule.
2. Social Audit tools used (questionnaires, interview guides, checklists).
3. A summary of stakeholder consultation findings.
4. Preliminary findings shared with NEDI for validation.
5. A Final Social Audit Report, including:
   • Executive Summary
   • Background and objectives
   • Methodology
   • Scope and limitations
   • Stakeholder consultation process
   • Key findings
   • Good practices
   • Gaps and challenges
   • Conclusions
   • Recommendations and a suggested action plan, suitable for sharing with GSIF Nepal

7. Proposed Methodology

We're not prescribing a rigid methodology. The consultant or firm should propose an approach that fits the project's scale and this year's activities. It could draw on:

• Desk review of project and financial documents.
• Key informant interviews with project staff and government/financial-sector counterparts.
• Focus group discussions with social entrepreneurs and other right holders.
• Short questionnaires or surveys where a broader reach is useful.
• Cross-verification of activities and expenditure against the approved budget.
• Validation of key findings with NEDI.

Above all, this process should be participatory, proportionate to the project's modest audit budget, and respectful of the confidentiality of everyone involved.

8. Duration and Recurrence

Each round of the Social Audit is expected to take about 10 working days, reflecting the scale of the annual audit budget set aside in the project's cost plan (NPR 60,000 per year).

This is envisaged as a recurring annual assignment across the project's three fiscal years (2025/26, 2026/27 and 2027/28), subject to satisfactory performance and continued budget availability each year. This posting is for the current round.

Findings should be finalized in time to feed into NEDI's annual narrative report to GSIF Nepal, which follows a January–December reporting calendar.

9. Budget

The total consultancy fee for each round shall not exceed NPR 60,000, inclusive of all costs, logistics and applicable taxes, in line with the Social Audit line item approved in the project's detailed cost plan.

Applicants should submit a financial proposal within this ceiling. Payment terms will be agreed with the selected consultant or firm and set out in the consultancy agreement; applicable taxes will be deducted at source as required by Nepali law.

10. Required Qualification and Experience

For Individual Consultant

• Master's degree in Development Studies, Social Sciences, Sociology, Public Administration, Management, Governance, Monitoring and Evaluation or a related field.
• At least 5 years of relevant professional experience in Social Audit, social accountability, organizational assessment, governance, monitoring and evaluation or related areas.
• Demonstrated experience in conducting Social Audits or similar organizational assessments.
• Experience in stakeholder consultation and participatory assessment.
• Familiarity with social entrepreneurship, business and human rights, or anti-trafficking programming is an advantage.
• Strong analytical, report writing, communication and facilitation skills.
• Good understanding of Nepal's development and institutional context.

For Consulting Firm

• Legally registered consulting firm in Nepal.
• Demonstrated experience in Social Audit, organizational assessment, social accountability, governance or related assignments.
• Qualified and experienced professional team.
• Proven experience in successfully completing similar assignments.
• Relevant experience with NGOs, INGOs, CSOs or development organizations will be an advantage.

11. Application Requirements

Individual Consultant

• Updated CV.
• Technical proposal.
• Proposed methodology and work plan.
• Financial proposal, within the NPR 50,000 budget ceiling.
• Details/evidence of similar assignments completed.
• At least two professional references.

Consulting Firm

• Company profile.
• Company registration certificate.
• PAN/VAT certificate, as applicable.
• Technical proposal.
• Proposed methodology and work plan.
• Financial proposal, within the NPR 60,000 budget ceiling.
• CVs of proposed team members.
• Evidence of similar assignments.
• At least two professional references.

12. Selection Process

We'll be looking at applications through the following lens:

• Relevant qualification and professional experience.
• Experience in Social Audit or similar assignments.
• Understanding of the assignment and the project context.
• Quality and practicality of the proposed methodology and work plan.
• Experience with NGOs/development organizations.
• Financial proposal, within the approved budget ceiling.
• Availability to complete the assignment within the required timeframe.

We may invite shortlisted applicants for an interview or a short presentation, if needed.

NEDI reserves the right to accept or reject any application in line with its own policies and procedures.

13. Confidentiality and Professional Conduct

We ask the selected consultant or firm to:

• Maintain confidentiality of all information and documents received during the assignment.
• Use information collected only for the purpose of the Social Audit.
• Maintain professional and respectful conduct while engaging with stakeholders
• Ensure appropriate handling of sensitive stakeholder information.
• Comply with NEDI's Safeguarding Policy at all times, given the project's core focus on preventing trafficking, abuse and exploitation. This includes appropriate conduct around any children or at-risk adults encountered during the assignment.
• Not offer, solicit or accept any undue advantages, favours or gifts in connection with the assignment, in line with the project's transparency and anti-bribery commitments to GSIF Nepal.
• Flag any potential conflict of interest to NEDI upfront.

14. Submission of Application

If this sounds like a good fit, we'd love to hear from you. Please send your application with the subject line:

"Application for Social Audit Consultant - Promotion of Social Entrepreneurship Project "

Nepal Development Initiative (NEDI)

Kathmandu, Nepal

Email: [email protected]

Application Deadline: 2026.09.25

Only shortlisted candidates/consulting firms will be contacted.

NEDI reserves the right to accept or reject any application without assigning any reason.