Project External Audit

Scope of services:
The audit of the projects having contract with Trocaire grant implemented by partners in Lebanon. The audit should be conducted in accordance with the Generally Accepted Accounting Principles (GAAP).

The procedure shall include tests and controls as it may be deemed appropriate and in line with the established government and international auditing practices for all financial, procurement, quality, and assess the adequacy and effectiveness of supervisory control measures implemented by partner management to oversee the financial flow of funds, including authorization processes, budget monitoring, reporting oversight, internal control enforcement, and timely corrective actions.

• Assess supervisory control measures implemented by partner management over financial flows, focusing on authorization processes, budget monitoring, internal control enforcement, reporting oversight, and corrective action mechanisms.
• Review cash provision modalities, including controls for cash requests, approvals, disbursements, reconciliations, and identification of any gaps in approval or authorization procedures.
• Verify financial recordkeeping and transaction accuracy, ensuring proper accounting records are maintained and that expenditures are mathematically accurate and supported by adequate documentation.
• Evaluate compliance and integrity, report on adherence to acceptable accounting principles, organizational SOPs, and identify any indications of fraud, error, or irregularities that could impact the financial statements’ reliability.
• Ensuring compliance with agreement terms and applicable laws and regulations.

The audit is required in addition to the above, check the following:

• To verify and ensure that all payments have been made in accordance with agreement terms for projects running between 2023 and 2024.
• To verify and ensure that the project(s) funds have not been expended for any unauthorized purposes.
• To verify and ensure that there are no questionable costs among the expenses of the projects.
• To verify and ensure that all the commodities/assets of the project(s) are accounted or used for intended purposes.
• To verify and ensure that all the financial reports and reimbursement claims of the projects are supported by the proper books and records.
• Assess whether conflict of interest exists in the processes of partner organization.
• Ensure that agreed guidelines and SOPs are followed in all payment methods, suppliers, beneficiaries, and staff.
• To verify and ensure that proper procurement procedures and practices are in place, inventory functions are satisfactory.
• To cross-check the partner organizations’ financial reports submitted to Trocaire with the financial records (bills/invoices, receipts, payrolls, approvals etc.) of the projects’ main office and provincial office.

Deliverables and reporting requirements:
The consultant/audit firm shall produce a comprehensive report outlining findings from the review, including at a minimum:

• Fraud Risk Assessment: An opinion on the presence or absence of fraud, with details of any identified instances—including the estimated value—.
• Unallowable Expenditures: A documented list of any expenditures that are not chargeable to the relevant programmes, based on inconsistencies with allocated budget lines or donor/organizational guidelines.
• Control Weaknesses and Risks: An assessment of weaknesses or gaps in the organization’s financial, procurement, and operational policies and procedures, accompanied by actionable recommendations for strengthening internal controls and risk mitigation.

Report Timeline: The final report shall be submitted as soon as possible, and no later than 31 August 2025, subject to the availability of the consultants and timely access to necessary information.

Other Requirements:

The appointed consultant(s) must adhere to Trócaire’s safeguarding and ethical standards, including signing and complying with relevant policies prior to commencement of the engagement.

Expenditure of the project
Tentative expenditure of the project subject to audit shall be around EUR 150,000.

Place and timeline of the audit
The audit shall be conducted in the designated office of implementing partner of the project (Beirut & Beqaa).

Audit period

• The planned audit period is from the 13th of August 2025 to the 27th of August 2025. Final dates are to be confirmed during the inception meeting.

• Auditor submission of Management Letter and Audit Report to Trocaire
  8/29/2025

• Trocaire might call for interviews with the auditor applicants to discuss proposals.

An inception meeting will be organized with the selected auditor(s) to launch the process and go over and develop a specific scope of work within the review, in line with “Do No Harm” principles and survivor-based principles for investigations (where relevant)

Available Facilities and Right Access
The auditor will have full and complete access at any time to all records and documents (including account books, legal agreements, minutes of committee meetings, bank records, invoices and contracts etc.) and all employees of the entity. The auditor will have a right to access banks, consultants, contractors and other people or firms engaged by the project management.