Annual Audit of Lebanon Country Office

Search seeks proposals from audit firms for its annual statutory audit for the period 2023 for its country office of [Lebanon].

OBJECTIVE OF THE AUDIT

The overall purpose of this audit is to give the reasonable assurance of

All income received and cost incurred in the current fiscal year are in accordance with the relevant policies of Search for Common Ground, and are in compliance with Local laws and Regulations.

Financial statements are prepared in accordance with Applicable legal and accounting framework

There is no material error

Financial statements are free from material misrepresentation due to fraud or error

Project expenses are incurred in compliance with Donor agreements and rules and regulations

PREPARATION OF ANNUAL FINANCIAL STATEMENTS

The responsibility for the preparation of financial statements including adequate disclosure is that of the SFCG. SFCG is also responsible for the selection and application of accounting policies. SFCG would prepare the financial statements in accordance with International Financial Reporting Standards (IFRS).

The auditor is responsible for forming and expressing opinions on the financial statements. The auditor would carry out the audit in accordance with the International Standards on Auditing (ISA), as promulgated by the International Federation of Accountants (IFAC) As part of the audit process, the auditor may request from the SFCG written confirmation concerning representations made in connection with the audit.

SCOPE OF THE AUDIT

As stated above, the audit of the project will be carried out in accordance with International Standards on Auditing (ISA) promulgated by the International Federation of Accountants (IFAC) and will include such tests and auditing procedures as the auditor will consider necessary under the circumstances. Special attention should be paid by the auditor as to whether the:

Funds are used in accordance with the conditions of the relevant donor agreement (s), with due attention to economy and efficiency, and only for the purposes for which the funding was provided.

Cofounding and subaward management are in compliance with SFCG Policies and Procedures

Goods, works and services have been procured in accordance with the relevant policies and donor regulations.

All necessary supporting documents, records, and accounts have been maintained properly.

National laws and regulations have been complied with, especially tax and other Government liabilities are paid off accurately and timely.

Personnel Liabilities are properly recorded as per local labor laws or SFCG policies and are accurate.

Assets are properly recorded, tagged and listing are prepared in accordance and are verified for existence on a sample basis.

 

In complying with International Standards on Auditing, the auditor is expected to pay particular attention to the following matters:

 

Fraud and Corruption: Consider the risks of material misstatements in the financial statements due to fraud as required by ISA 240: The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements. The auditor is required to identify and assess these risks (of material misstatement of the financial statements) due to fraud, obtain sufficient appropriate audit evidence about the assessed risks; and respond appropriately to identified or suspected fraud;

 

Laws and Regulations: In designing and performing audit procedures, evaluating and reporting the results, consider that noncompliance with laws and regulations may materially affect the financial statements as required by ISA 250: Consideration of Laws and Regulations in an Audit of Financial Statements;

 

Governance: Communicate audit matters of governance interest arising from the audit of financial statements with those charged with governance of an entity as required by International Standards on Auditing 260: Communication of Audit Matters with those Charged with Governance.

 

Risks: In order to reduce audit risk to an acceptable low level, determine the overall responses to assessed risks at the financial statement level, and design and perform further audit procedures to respond to assessed risks at the assertion level as required by Internal Standard on Auditing 330: the Auditor’s Procedures in Response to Assessed Risks.

 

FINANCIAL STATEMENTS

The auditor should verify that the Financial Statements have been prepared in accordance with the agreed accounting standards and give a true and fair view of the financial position of the project at the relevant date and of resources and expenditures for the financial year ended on that date

Complete set of Financial Statements should include:

A statement of financial position;

A Statement of Activity (Income and Expenditure) explaining them by donor agencies in the notes;

A reconciliation of Net Assets; A Cash Flow Statement);

A Summary of the principal accounting policies that have been adopted, and other explanatory notes.

 

AUDIT REPORT

The auditor will issue an opinion on the financial statements in accordance with International Standards on Auditing and the local legal and accounting framework.

Auditors should include a separate Management report highlighting key internal control weaknesses and non-compliance with the financing agreement terms.

ADDITIONAL OPINIONS

 

Special Opinion

Details

Compliance with Taxation requirements and other Government Liabilities

Auditor will share a report on accuracy, timeliness and proper recording of all taxation liabilities and other government liabilities specifying by name. This report should have instances of non-compliance, Impact thereof and recommendations for corrective actions.

Personnel Liabilities

Auditors will share a separate report on the adequacy of personnel liabilities by specifically reviewing the

Completeness Accuracy and Timely disposition

Of Personnel liabilities in accordance with Labor Laws and Human resource manuals. This includes reviewing the fact that all minimum labor law liabilities are provided for or not.

Asset Listings and

related processes

A report on the accuracy of Asset listings (Inventory listings) for existence

and related internal controls on review and monitoring.

 

MANAGEMENT LETTER

In addition to the audit report, the auditor will prepare a management letter, in which the auditor will:

Give comments and observations on the accounting records, systems and controls that were examined during the course of the audit;

Identify specific deficiencies or areas of weakness in systems and controls, and make recommendations for their improvement;

Report on compliance with donor agreements;

(c) Communicate matters that have come to their attention during the audit which might have a significant impact on the implementation of the projects;

Comments on Cofounding and subaward management is in compliance with SFCG Policies and Procedures

Comments on whether Goods, works and services have been procured in accordance with the relevant policies and donor regulations or not.

(e) Bring to the recipient’s attention any other matters that the auditor considers pertinent, including ineligible expenditures.

Ideally, the management letter should also include responses from SFCG to the issues highlighted by the auditor.

AVAILABLE INFORMATION

The auditor shall have access to all legal documents, correspondences, and any other information deemed necessary by the auditor.

The auditor shall obtain a written declaration, signed by the management of the country organization, attesting:

recognition of the responsibility of the organization in the establishment of correct, complete, impartial accounts and financial statements, faithful to reality, in accordance with the objectives of the organization and the reference documents (project description, contracts, budgets, etc.), and national legislation;

making available to the auditor all books of accounts, supporting documents and other documents, minutes and relevant information necessary for the audit;

all information concerning assets and property;

all information concerning funding received or to be received, own funding relating to the period under review;

willingness to provide all information and explanations requested by the auditor within the framework of his mandate, either orally or in writing.

GENERAL

The financial statements, including the audit report, management letter and management response should be received by SFCG no later than 15 May 2024.

The audit report and all other documents resulting from the audit shall be written in the official language(s) and in English.

The auditor should submit the report electronically to designated individuals. In exceptional cases an original paper copy might be required.

 

III. Submission Requirements:

To be considered the company has to meet at least one of the following conditions:

The auditor is a member of a national accounting or auditing body or institution which in turn is a member of the International Federation of Accountants (IFAC).

The auditor is a member of a national accounting or auditing body or institution. Although this organization is not a member of the IFAC, the auditor commits to undertake this assignment in accordance with the IFAC standards and ethics.

How to apply

Interested candidates and entities are expected to submit their proposals to the email: [email protected]

 

Further, please provide us with following information:

Proposal: Overall Approach and Methodology: Based on the information provided, describe your specific expertise, overall approach and proposed auditing procedures as well as proposed annual audit schedule. Include phases of the audit and timing.

Cost Proposal: The cost proposal should include a budget summary and a detailed

budget. Provide a fee schedule, including the estimated number of hours to be spent by each person and the expected rate per hour of each. Be sure to include travel costs/ out-of-pocket expenses in your fee structure and indicate how these are calculated, including whatever guarantees can be given regarding increases in future years, and the maximum fee that would be charged.

State how you manage to perform the audit against a fixed fee in case of overruns.

Describe your billing rates and procedures for technical questions that may come up during the year, or whether these occasional services are covered in the proposed fee structure

 

Past Experience and References:

Describe your firm’s experience to provide evidence of the firm’s qualifications to deliver the above services.

Summarize your firm’s qualifications regarding international nonprofit organizations with similar structure and revenue.

Describe at least two audits of similar scope and complexity you have worked on previously. Provide a point of contact with telephone number and email address at the client of each of described projects.

Disclose any Conflict of Interest with Search for Common Ground, its staff or Governance bodies

Key Personnel and Staffing: Describe the key personnel as well as information on the overall staffing plan for the project, including bios for those key personnel.

Describe your local audit staff turnover experience within the past three years and how you would provide continuity of assigned personnel, including the partner, on this engagement.

Capabilities to perform audits for non-profit organizations: Provide summary of capabilities to conduct statutory audits for nonprofits.

Your firm ‘s added value, and why our selection of your firm as our external auditors is the best decision we could make.

List of References of prior or current clients.

Proof of Affiliation

Registration papers: Soft copy of all the registration documents of the firm, along with the relevant IDs.

Timeline

proposals are to be received by 3 May 2024

Any questions concerning these Terms should be directed to:
([email protected]) or ([email protected]) no later than 2 May 2024.

Expired
Deadline
Friday, 03. May 2024
Type of Call
Call for Consultancies
Intervention Sector(s):
Trade & Finance
Remuneration range:
4000 to 5000 (USD)
Duration of Contract:
2 Months