Terms of Reference (TOR) for Financial Audit Services – Fiscal Year 2025

Terms of Reference (TOR) for Financial Audit Services – Fiscal Year 2025

I. Introduction
Right To Play (RTP) is a global non-governmental organization that empowers children to overcome
adversity through play-based programs. RTP operates in 16 countries, including Lebanon, where it is
registered under registration number 1587731.
To ensure full compliance with Lebanese financial regulations, donor requirements, and international
auditing standards, RTP Lebanon is seeking the services of a qualified and accredited audit firm to
conduct the annual statutory and donor financial audit of its operations for the fiscal year 2025.
The engagement will be for one year only, renewable based on satisfactory performance and mutual
agreement.

II. Objective
The objective of this TOR is to secure the services of a professional external auditor to:

• Audit RTP Lebanon’s financial statements for the fiscal year ending December 31, 2025.
• Verify that RTP’s financial statements present a true and fair view of its financial position.
• Assess compliance with statutory and donor-specific financial requirements.

III. Scope of Services
1. Audit of Financial Statements
 Conduct the audit of RTP Lebanon’s financial statements for the fiscal year January 1 –
December 31, 2025.
 Audit to be performed in accordance with International Standards on Auditing (ISA) and local
statutory requirements.
 Review and express an independent audit opinion on the financial statements prepared under the
modified cash basis of accounting.
 Cover all funds received and expended during the year, including both headquarters transfers
and donor-funded projects.
 Submit a management letter highlighting findings, internal control weaknesses, and
recommendations for improvement.
2. Internal Controls and Compliance
 Evaluate the adequacy and effectiveness of internal controls in financial management and
reporting.
 Review implementation of prior audit recommendations and report on progress.
 Verify compliance with applicable donor financial regulations and Lebanese laws.
3. Verification and Supporting Documentation
 Examine supporting documentation for expenses, revenues, and assets.
 Ensure consistency between accounting records, donor budgets, and reporting frameworks.
 Verify that expenditures are eligible, accurately recorded, and supported by valid documentation.

IV. Deliverables
Deliverable Description Deadline
1. Audited Financial
Statements
Complete audited financial statements (Balance Sheet,
Income Statement, Cash Flow Statement, Notes) with the
auditor’s opinion.
April 15, 2026
2. Management
Letter
Report outlining audit findings, internal control observations,
and recommendations.
April 15, 2026
3. Exit Meeting
Presentation
Presentation of audit results and discussion of key
recommendations with RTP’s management and finance
team.
Upon submission
of the report

V. Selection Criteria
1. Technical Expertise
o Certified and licensed auditing firm registered in Lebanon.
o Proven experience conducting financial audits for international NGOs or donor-funded
organizations.
o Familiarity with modified cash basis of accounting and donor compliance frameworks
(EU, UNICEF, NORAD, etc.).
2. Past Experience
o Demonstrated track record auditing entities with multi-donor and multi-project
financial structures.
3. Timeliness and Availability
o Ability to complete the audit within agreed timelines.
o Capacity for ongoing communication during the audit process.
4. Cost Proposal
o Competitive financial proposal clearly outlining professional fees and any applicable
taxes.
o Transparent fee breakdown by activity or deliverable.

VI. Requirements
 Licensed audit firm authorized to operate in Lebanon.
 Qualified professionals (CPA or equivalent).
 Experience with NGO audits and understanding of donor financial reporting.
 Proficiency in English and Arabic for communication and reporting.
 Submission of a signed and stamped financial proposal.

VII. Timeline
 Audit Period: January 1, 2025 – December 31, 2025
 Reporting Deadline: April 15, 2026
 The selected firm is expected to commence the audit immediately after year-end closing and
deliver the final reports by the specified deadline