REQUEST FOR Financial Audit

          DATE: 5/02/2025

         REQUEST FOR Financial Audit 

                  QUOTATION TO BE RECEIVED BY: 18/02/2025 @3:00 PM

Background:

Development for People and Nature Association (DPNA):

Development for People and Nature Association (DPNA) is a non-governmental independent, grassroots-led organization based in Lebanon that promotes sustainable development for people and nature.

Established in 2003, DPNA has a team of 52 committed full- and part-time staff members, along with 780 volunteers across Lebanon, who actively contribute to achieving DPNA's vision and mission.

Objectives of the audit  

The objective is to audit the financial report for the period March 1st, 2024, to Feb 28th 2025 as submitted to Crisis Centre of the French Ministry of Europe and Foreign Affairs and to express an audit opinion

And report whether the financial report of project is in accordance with the partner´s accounting records and CDCS’s requirements for financial reporting as stipulated in the agreement including appendices between CDCS and DPNA.

Mandatory procedures that must be included:

1. Observe whether the financial report is structured in a way that allows for direct comparison with the latest approved budget
2. Observe and inspect whether the financial report provides information regarding:

• Financial outcome per budget line (both incomes and costs) for the reporting period and columns for cumulative information regarding earlier periods under current agreement.
• Compare if the fund opening balance for the reporting period matches with what was stated as closing fund balance in the previous reporting period.
• A disclosure of exchange gains/loses. Inquire and confirm whether the disclosure includes the entire chain of currency exchange from CDCS’s disbursement to the handling of the project/program within the organization in local currency
• Amount of funds that has been forwarded to implementing partners
• Inquire and inspect what frequency salary costs during the reporting period are debited to the project
• Inquire and inspect whether the actual time worked is documented and verified by a manager. Inquire and inspect within which frequency reconciliations between debited time and actual worked time is performed.
• Inquire and inspect whether there are supporting documentation for debited expenses
• Inspect whether the Cooperation partner complies with applicable tax legislation about personal income taxes (PAYE) and social security fees.
• Inspect and confirm that the unspent fund balance (according to the financial report) at the end of the financial year is in line with information provided in the accounting system and/or bank account.

The Audit Report and Management Letter

• The audit report should clearly indicate the auditor’s opinion. This would include at least the following:
• The title, addresses, and an opening or introductory paragraph containing
• identification of the financial information audited including the period covered; and
• statement of the responsibility of the entity’s management and the responsibility of the auditor.

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A scope and methodology paragraph describing the nature of the audit referencing

• the accounting standards that have been applied and indicate the effect of any deviations from those standards.
•  the audit standards that were applied;
• the work the auditor performed.​​​​​​​

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 DPNA. The auditor should disclose any relationship that might possibly compromise his/her independence.